Upload
embraer-ri
View
254
Download
2
Tags:
Embed Size (px)
Citation preview
EmbraerBusiness
Embraer Business
The aerospace businessis supported by 5 pillars High Technology
Qualified People
Global Business
Flexibility
Cash Intensiveness
HighTechnology
High Technology
The Virtual Reality Center
Provides visualization of the aircraft structure and systems during the project phase, using 3D electronic models.
Reduces the development cycle.
Digital Mock-Up EMBRAER 170
High Technology
High Technology
Digital Mock-Up ERJ 145
QualifiedPeople
High School64,5%
PhD0,2% Graduate
29,3%
Post Graduate4,7%
Master1,3%
Qualified People
Educational Levels
25% of the 11,048 employees, are engineers
Qualified People
More than US$ 60 millioninvested in training and qualificationin the last 3 years.
21 24,518
1999 2000 2001
GlobalBusiness
Global Business
Civil & Defense Aircraft flying in 58 countries in 5 continents.
Global Business
Current Fleet of Regional Aircraft
Latin America& Caribbean260 aircraft85 customers
Africa & Middle East55 aircraft10 customers
AsiaPacific60 aircraft20 customers
Europe285 aircraft40 customers
North America920 aircraft35 customers
Turboprop Operators
ERJ Operators
Global Business
Operations in Brazil, United States, Europe, Asia and Australia
BrazilGavião Peixoto
BotucatuSão José dos Campos
Eugênio de Melo
USADallas
NashvilleAtlanta
Palm Beach GardensFort Lauderdale
FranceLe Bourget
UKWeybridge
ChinaBeijing
AustraliaMelbourne
SingaporeSingapore
CashIntensiveness
Cash Intensiveness
In the last 5 years the Company invested almost US$ 1 billion in research & development and productivity.
10481
122147
213
296
1996 1997 1998 1999 2000 2001
US$ 1.3 Billion Investments in the Next 5 Years
Cash Intensiveness
1,283227224239262331TOTAL
34951505971118PP&E
36527
50141
272
1398
342
1308
612
1098
1056
728
1381551
9
ComercialCorporateDefenseOthers
934176174180191213Research &Development
2002-200620062005200420032002US$ millions
Cash intensiveness
Family launched in July 1999Roll out in October 2001First Flight in February 2002
31 months from launchto first flight
Risk Sharing concept with partners allows the decrease in development cycle and investment risk
Cash Intensiveness
In 2000 Embraer increased its global presence with a US$ 446 million Global Offering:
Funds of US$ 244 in a Primary offering for the EMBRAER 170/190 program
Company positioned in the international capital markets
Cash Intensiveness
Nearly two-thirds of the EMBRAER 170/190 program development costs borne by Risk-Sharing Partners
Development cost for the new EMBRAER 170 family program:
Cash Contribution from Risk Sharing Partners $ 260Net Proceeds from IPO $ 240Funds From Cash Flow $ 60
$ 560
Risk Sharing Partner Development Cost $ 290
Total Cost of the EMBRAER 170/190 Program $ 850
Cash Intensiveness
After Sept 11
Embraer supported some aircraft deliveries, which increased the accounts receivables to US$ 672 million.
Inventories increased to US$ 1,022 million.
Representing a change in the net cash position to a net debt position of US$ 23 million.
Cash Intensiveness
732 749696
129
(23)
574660
764842
1,022
198260
373
737672
4Q00 1Q01 2Q01 3Q01 4Q01
Net Cash (Debt) Inventories Accounts Receivable
Cash Intensiveness
Actions have been taken and the expectations for the accounts receivables and inventories are:
842
1,022 1,006879
535 495
636
20
202 177 130 100
3Q01 4Q01 1Q02 E 2Q02 E
Inventories Receivable (Aircraft) Receivable (Spare Parts & Others)
Flexibility
Flexibility
Embraer has the agility and flexibility to adjust its production in accordance with market demand.
ERJ 135/145Deliveries
Flexibility
New Delivery Forecast
4
32
59
96
160 161
135145
1996 1997 1998 1999 2000 2001 2002 2003
Flexibility
To cope with the new scenario, Embraer adjusted its total labor force and laid off 14% (1,800) of its employees.
6,087
4,319 3,8494,494
6,7378,302
10,33411,048
1994 1995 1996 1997 1998 1999 2000 2001
Total of Employees
Flexibility
Flexibility incorporated into the production line allowed an increase in efficiency and decrease in production lead time
Lead Time in Months
8,0
6,0 6,05,5
4,9 5,0
1996 1997 1998 1999 2000 2001
Flexibility
Embraer presents one of the highest "revenue per employee" in the industry.
101
172
242 247
307
254
1996 1997 1998 1999 2000 2001
Revenue per employeeUS$ thousand
Airline MarketTrends and Outlook
Airline Market Evolution - USA
-5%
10%
25%
40%
81 83 85 87 89 91 93 95 97 99
RPM
Gro
wth
(Yr/Y
r % C
hang
e)
Domestic ATARegional RAA
Source: RAA, ATA
US Regional Enplanements Increasing
Source: RAA, FAA
U.S. Regional Airlines% of Domestic Traffic
PassengerEnplanements (Millions)
1970 1985 2000 2010F0
200
400
600
800
1,000
3% 7%12%
14%
RegionalMajor
5%
-3%-1% -1%
-3% -2%
0%3%
-33%
-21%-18%
-13%
17%
9%7%
2% 2% 1%
6%
13%
5%
14%
-23%
-2%
Jan/01 Feb Mar Apr May Jun/01 Jul Aug Sep Oct Nov Dec/01
RP
M G
row
th -
Yr/
Yr
% C
han
ge
Domestic ATARegional RAA
Airline Market - USA
Source: Top Regionals, ATA
American Airlines Traffic
-36%
-23%-22%
-15%
-10%-13%
-11%-10%
-4%
-27%
5% 4%5%
12%
8%10%
-3%
-7%
RPM
Gro
wth
(Yr/Y
r% C
hang
e)American DomesticAmerican Eagle
Source: American Airlines
Jan-Aug/2001
Sep2001
Oct2001
Nov2001
Dec2001
Year2001
Jan2002
Feb2002
Mar2002
Continental Airlines Traffic
-32%
-17%
-13%-10%
-3%
-11%-8%
-5%
4%
23%
-22%
6%
11%15% 14% 14% 14%
5%
RPM
Gro
wth
(Yr/Y
r%
Chan
ge)
Continental Domestic
ExpressJet
Source: Continental Airlines
Jan-Aug/2001
Sep2001
Oct2001
Nov2001
Dec2001
Year2001
Jan2002
Feb2002
Mar2002
Airline Market Evolution - Europe
0%
20%
40%
1995 1996 1997 1998 1999 2000
RPK
Gro
wth
(Yr/Y
r % C
hang
e)
Intra-European AEARegional ERAA
Source: ERAA, AEA
Airline Market - Europe
Source: ERAA, AEA
9%
-13%-15%
-14%
7%9%
7% 7%6%
6%4%4%
6%6%7%5%
-3%
1%
-7%
1%
4%
13%
5%
-3%
RPK
Gro
wth
- Yr
/Yr %
Cha
nge
Intra-European
Regional ERAA
Jan/01 Feb Mar Apr May Jun/01 Jul Aug Sep Oct Nov Dec/01
Source: Back OAG (ERJ 145/140/135, CRJ-100/200, 328Jet routes)
Jan 1995Jan 2002
Regional Jet Presence - USA
Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
Jan 1995Jan 2002
Regional Jet Presence - Europe
Parked aircraft
Delivery schedules re-negotiated, except for regional jets (small unit of capacity)
Rightsizing capacity vs. demand: regional jets being used in the USA to maintain presence in markets with decreased demand
Focus on return to profitability in a low yield environment (Cash Management)
Capacity Management (After Sep 11th)
Industry in Transition after Sep 11th
Rightsizing capacity vs. demand: Routes transfered to RJs
Source: Back OAG (American, Continental, Delta,United, and US Airways)
Turboprop ReplacementJet Replacement
Source: Back OAG Air France, Alitalia and British Airways
Rightsizing capacity vs. demand: Routes transferred to RJs
Industry in Transition after Sep 11th
Jets 30-60 Seats3%
Jets 61-90 Seats16%
Jets 91-120 Seats19%
Jets 121-150 Seats17%
Jets > 151 Seats4%
Turboprop41%
1398 aircraft in storage5 ERJ 145/140/135
Parked Aircraft Worldwide
40
0
1990 1995 2000 2010F
30
20
10
50
Average Seating Capacity
Source: FAA, RAA, Embraer
US Regional Aircraft Size Increasing
Seats perAircraft
European Regional Aircraft Size Increasing
1990 1995 2000 2010F
Average Seating Capacity
Source: FAA, RAA, Embraer
Seats perAircraft
0
10
20
30
40
50
60
70
80
120
160
Seat Capacity
40
80
0
Filling the Seat Capacity Gap
Stage Length (nm)
200 400 600 800 1000 1200 1400
30 Seat Tprops
50 SeatERJ 145
Narrow Body Large Aircraft
37 - 44 Seat ERJ 135/140
EMBRAER 170/190
MarketForecast
World (30-120 seat segment): 8,695 jets (US$200 Billion)
4,6104,085TOTAL
1,5901,19091 - 1201,2851,08561 - 901,7351,81030 - 60
2012 - 20212002 - 2011Segment
World Deliveries by Segment - Jets
Market Forecast 2002 - 2021
Market Forecast 2002-2011
AsiaPacific245
6%
China275
7%Africa &
Middle East130
3%
USA, Canada& Caribbean
2,130
52%
30 – 120 Seats: 4,085 Jets
Europe960
24%
LatinAmerica345
8%
Industry Consolidation
BAE / Avro
Airbus Airbus
Boeing Boeing
McDonnell Douglas
ATR
Jetstream
Avro
AIR
ATR
CanadairBRAD BRAD
Fokker
SAAB
EMBRAER EMBRAER
De Havilland
FairchildFairchild-Dornier
Dornier
ERJ 135
ERJ 140
ERJ 145
30-60 Seat Segment Competitors (Jets)
CRJ 200
328 Jet
?
61-90 Seat Segment Competitors (Jets)
EMBRAER 175
EMBRAER 170
CRJ 700
CRJ 900
728 Jet
?
91-120 Seat Segment Competitors (Jets)
717
928
737-600
EMBRAER 190
EMBRAER 195
A 318
?
ERJ 145 Family Orderbook
March/2002
334
160
142
32
FirmBacklog
5311,224359865Total
410837267570ERJ 145
3221945174ERJ 140
8916847121ERJ 135
DeliveriesTotalOptionsFirm
NewJet Family
EMBRAER 170/190 Family
70 Seats
78 Seats
98 Seats
108 Seats
Partnership Evolution
80’s: 500 + Suppliers
90’s:4 Risksharing Partners350 Suppliers
Partnership Evolution
GAMESA (SPAIN) C&D (USA)SONACA (BELGIUM) ENAER (CHILE)
Partnership Evolution
SYSTEMSHAMILTON SUNDSTRAND (USA)HONEYWELL (USA)PARKER (USA)C & D (USA)LIEBHERR (GERMANY)GEAE (USA)
EMBRAER
GAMESA(SPAIN)
LATECOERE(FRANCE)
EMBRAER (LEADER)KAWASAKI (JAPAN)SONACA (BELGIUM)
GEAE (USA)
LATECOERE(FRANCE)
EMBRAER (BRAZIL)
SAINT GOBAIN(USA)
HAMILTON SUNDSTRAND
(USA)WING, STUB, CONTROL SURFACES & PYLON, WINGLET
FORWARD FUSELAGE
WING TO FUSELAGE FAIRING
CENTRAL FUSELAGE I & DOORS
CENTRAL FUSELAGE II
ENGINE & NACELLES
CENTER FUSELAGE III
EMPENNAGES AND REAR FUSELAGE
TAIL CONE & APU
RADOME
00’s:16 Risksharing Partners22 Suppliers
1999 2000 2001 2002
13 months26 months28 months32 months
Go-ahead 1st metal cut
Wing and fuselage mating
Roll out
1st flight
EMBRAER 170/190 Program Progress
February 19th, 2002 1st Flight
T1T4T2 T3T1
1998
T4T2 T3T1 T4T2 T3T1 T4T2 T3T1
1999 2000 2001
T4T2 T3T1
2002
PlannedActual
Competitor
May 1998 August 2002
Cycle to First Flight
EMBRAER 170
June 1999 February 2002
All prototypes ready in the 1st Sem. 02
Jan 02 Feb 02 Mar 02 Apr 02 May 02 Jun 02 Jul 02 Aug 02 Sep 02 Oct 02 Nov 02 Dec 02Nov 01 Dec 01Oct 01
1st Flight19 FEB 2002
S/N 0001
Fatigue test set up
S/N 0006
S/N 0005
S/N 0003
S/N 0004
S/N 0002
Static test set up
Roll Out29 OCT 2001
Static tests conclusion
Fatigue tests conclusion
Aircraft S/N 0001 and S/N 0002
S/N 0002 First flight: April 9, 2002
Large BaggageCompartment Actual mockup picture
HighestVolume / Pax
Cross Section
Cross Section Comparison
EMBRAER 170/190
Excellent Field Performance
Same En Route Performance as Big Jets
Performance Commonality within Family
Performance
Maintenance Costs Comparison
Direct Maintenance Cost
Mature Aircraft
EMBR
AER 17
5CRJ 70
0
EMBR
AER 19
0
EMBR
AER 19
5CRJ 90
0
FD 72
8JET
FD 92
8JET
BAe RJX-10
0
FOKK
ER 10
0
A318 (P
W6122)
A318 (C
FM56
-5B8)
B 717
-200
DM
C (U
S$/
FH
)
EMBRAER 170/195 presents the lowest maintenance costs in its class
Assumptions:2900 FH/Year1.10 FH/FCLabor Rate: US$70/MH2001 economic conditionMature Aircraft
EMBR
AER 17
0
A family designed for excellent revenue generation
EMBRAER 170
EMBRAER 175
EMBRAER 190
EMBRAER 195
PROFITBREAK-EVEN*
28 PAX 42 PAX
30 PAX 48 PAX
34 PAX 64 PAX
36 PAX 72 PAX*Break-even to DOC
Profitable by Design
314202112Total
1027230EMBRAER 190
21213082EMBRAER 170
TotalOptionsFirm
EMBRAER 170/190 Family Orderbook
March/2002
79
FinancialResults
Units
Jet Deliveries
4
32
59
96
160 161
0
40
80
120
160
200
1996 1997 1998 1999 2000 2001
Jet Deliveries / Quarterly
Units
34
414442
1T01 2T01 3T01 4T01
US$ Million
US dollars amounts were obtained using the average rate of the
commercial dollar during each period
Net Sales & Gross Margin
1352
29292787
1844
28,3% 28,6% 31,0% 41,6%
0
500
1000
1500
2000
2500
3000
3500
1998 1999 2000 20010%
10%
20%
30%
40%
50%
US$ Million
US dollars amounts were obtained using the average rate of the
commercial dollar during each period
Net Sales & Gross Margin/Quarterly
7 7 2 775
577
756 838 35 ,1%
44,3%45,3%39,5%
31,3%
0
3 0 0
6 0 0
9 0 0
1 2 0 0
1 5 0 0
4T00 1 T 0 1 2 T 0 1 3T01 4 T 0 1
0%
1 0 %
2 0 %
3 0 %
4 0 %
5 0 %
Brazilian Market
2%
Exports 98%
Parts and Services
6%Corporate
3%Defense
4%
Commercial87%
Sales per Segment Sales per Market
Revenue Breakdown
US$ Million
Includes Profit Sharing
US dollars amounts were obtained using the average rate of the
commercial dollar during each period
EBIT
199324
8 2 0
517
14,7%17,6%
18,6%
28,0%
0
250
500
750
1000
1250
1500
1998 1999 2000 20010%
10%
20%
30%
US$ Million
EBIT/Quarterly
Includes Profit Sharing
US dollars amounts were obtained using the average rate of the
commercial dollar during each period
137
242
115
261
20917,8%
27,6%31,1% 31,2%
20,0%
0
100
200
300
400
4 T 0 0 1T01 2 T 0 1 3 T 0 1 4T010 %
10%
20%
30%
40%
50%
285394
891
599
21,1% 21,4% 21,5%
30,4%
0
200
400
600
800
1000
1200
1998 1999 2000 20010%
5%
10%
15%
20%
25%
30%
35%
US$ Million
EBITDA
Includes Profit Sharing
US dollars amounts were obtained using the average rate of the
commercial dollar during each period
EBITDA/Quarterly
159
259
128
231
28222,2%
33,4%33,6%30,5%
20,6%
0
100
200
300
400
4T00 1 T 0 1 2T01 3 T 0 1 4T010 %
10%
20%
30%
40%
50%
Includes Profit Sharing
US dollars amounts were obtained using the average rate of the
commercial dollar during each period
US$ Million
US$ Million
Net Income
Includes Profit Sharing
US dollars amounts were obtained using the average rate of the
commercial dollar during each period
227114
468
353
8,4%
12,3%
12,7%16,0%
0
200
400
600
1998 1999 2000 20010%
5%
10%
15%
20%
25%
30%
35%
US dollars amounts were obtained using the average rate of the
commercial dollar during each period
Net Income/Quarterly
12899 114
148108
16,6% 14,3%17,6%
12,8%
19,7%
0
100
200
300
400
4 T 0 0 1T01 2 T 0 1 3 T 0 1 4T010 %
10%
20%
30%
40%
50%
US$ Million
Total Debt US$ 772.3 million
Brazilian currency5%
Foreign currency95%
Long Term32%
Short Term68%
Debt Breakdown
US dollars amounts were obtained using the final rate of the commercial dollar during each period
Net Cash (Debt)
US$ Million
$ 732
($ 329)($ 415)
($ 23)
($1.000)
($500)
$0
$500
$1.000
1998 1999 2000 2001
US$ Million
US dollars amounts were obtained using the final rate of the commercial dollar during each period
Accounts Receivables
672
198
326
145
0
200
400
600
800
1998 1999 2000 2001
US dollars amounts were obtained using the final rate of the commercial dollar during each period
US$ Million
Inventories
$ 5 6 4
$ 7 1 6
$574
$1 .022
$0
$400
$800
$1.200
1 9 9 8 1 9 9 9 2000 2 0 0 1
US$23.4 billion in total orders,
including US$ 10.7 billion in firm orders
150% 36,7%Annual Growth
56,1% 78,1% (6,1)%
Backlog
$3,0$6,4
$11,4 $10,7
$11,3
$12,7 $12,7
$1,2 $4,1$0,0
$5,0
$10,0
$15,0
$20,0
$25,0
$30,0
1996 2000199919981997 2001