4 th QUARTER & FY 2013 EARNINGS RESULTS

Transcription

1 4 th QUARTER & FY 2013 EARNINGS RESULTS Cargo do Apresentador February 26, 2014

2 Forward Looking Statement This presentation includes forward-looking statements or statements about events or circumstances which have not occurred. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: general economic, political and business conditions, both in Brazil and in our market. The words believes, may, will, estimates, continues, anticipates, intends, expects and similar words are intended to identify forward-looking statements. We undertake no obligations to update publicly or revise any forward-looking statements because of new information, future events or other factors. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation might not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements.

3 3 Financial Highlights The Company met its 2013 outlook for Net Revenues, Margins and Aircraft Deliveries. Net Revenues reached US$ 6,235 million in 2013 and US$ 2,304 million in 4Q13, representing the highest ever quarterly revenues for the Company EBIT and EBIT Margin were US$ 713 million and 11.4% EBITDA and EBITDA Margin were US$ 1,004 million and 16.1%. Free Cash Flow was US$ 213 million and Net Cash reached US$ 429 million in As part of Embraer s ongoing liability management, the Company completed an exchange offer of Notes extending their maturity until Total firm order backlog reached US$ 18.2 billion, its highest level in five years.

4 4 Corporate Highlights Embraer was awarded and recognized by many renowned publications and institutions as one of the best companies in Brazil and abroad in several categories. Embraer joined the World Economic Forum Partnering Against Corruption Initiative (PACI), a global, multi-industry, multi-stakeholder anti-corruption initiative. Embraer listed for the 4th consecutive year on the Dow Jones Sustainability Index and also on the ISE in Brazil.

5 5 Highlights Delivery of 90 E-Jets in 2013 of which 32 were in 4Q13. Embraer launched the E-Jets E2 Program which to date have reached 200 firm orders plus 200 options. 349 new E-Jets (E1&E2) were sold in 2013, reaching 1,427 aircraft and a customer base of 65 airlines in 45 countries.

6 6 Highlights Delivery of the 1,000th E-Jet production aircraft to Republic Airlines, which is being operated on behalf of American Eagle. Embraer received American Airlines order for up to 150 E175 jets (60 firm plus 90 options). Saratov Airlines became the first Russian E-Jet operator with two E195. Air Costa (India) placed a firm order for 50 E-Jets E2 plus 50 options of the E190-E2 and E195-E2 models. (1Q14)

7 7 Highlights Delivery of 119 executive jets in 2013 (90 light jets and 29 large jets). 53 jets delivered in 4Q13. Phenom family surpassed 470 aircraft deliveries to 29 countries. Phenom 300 was the most delivered executive jet in the industry in Legacy 500 reached more than 1,100 hours in flight test campaign. EIS is scheduled for first half of Legacy 450 first flight in December EIS expected in 2015.

8 8 Highlights First China-assembled Legacy 650 was delivered to first client. Launch of the new Lineage 1000E. Embraer Executive Jets won the second place ranking for the second consecutive year in the product support survey from Aviation International News (AIN). Expansion of authorized service center network with six new facilities added in 2013, totaling six wholly-owned and 70 authorized service centers.

9 9 Highlights Defense & Security revenues grew 15% in 2013 and reached US$ 1.2 billion. In the air traffic segment, Atech signed a contract to implement the SAGITARIO system in several regions of Brazil. Visiona signed contract for the Geostationary Defense and Strategic Communication Satellite. In 2013, Bradar delivered seven Saber M60 low altitude surveillance radars to the Brazilian Armed Forces which now has 22 in operation. It also signed a contract to supply one Sentir M20 radar to the Brazilian Army.

10 10 Highlights Embraer Defense & Security finished adapting the hangar of the Jacksonville, Florida plant to start production of the Super Tucano. First delivery for the USAF LAS Program scheduled for mid Delivery of the final three Super Tucano aircraft to the National Air Force of Angola. Embraer Defense & Security delivered the second modernized A-1 (A-1M) fighter jet to the Brazilian Air Force and performed the first flight of the two-seater prototype. KC-390 development program ongoing with the beginning of production of parts for assembly of the first prototype, which will fly for the first time in late 2014.

11 11 Aircraft Deliveries Commercial Jets Executive Jets deliveries estimates commercial jets executive large jets executive light jets Light Jets - Phenom Large Jets - Legacy & Lineage

12 12 Firm Order Backlog US$ Billion Defense & Security Executive 20% Aviation 13% Commercial Aviation 67% 4Q12 1Q13 2Q13 3Q13 4Q13

13 13 Net Revenues US$ Million 5,498 5,364 5,791 6,167 6, Outlook: US$ Billion

14 14 Revenues Breakdown Net Revenues by Segment Net Revenues by Region Revenues 1% 1% 1% 15% 17% 19% 19% 21% 27% Revenues US$ Billion US$ Billion % 9% 5% 9% 5% 9% 6% 11% 14% 8% 11% 3% 14% 21% 17% 65% 61% 53% 25% 31% 22% 20% 24% 29% Commercial Aviation Executive Aviation Defense & Security Others North America Europe Brazil China South & Central America Asia Pacific Africa & Middle East

15 15 Net Revenues Net Revenues - US$ Million Net Revenues - R$ Million 2013: 6, : 13,636 1,898 1,086 1,557 1,288 2,304 3,913 2,157 3,240 2,944 5,296 4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 1Q13 2Q13 3Q13 4Q13

16 SG&A Expenses US$ Million 9% 11% 12% 12% 11% G&A Expenses Selling Expenses Expenses / Net Revenues 16

17 17 SG&A Expenses SG&A Expenses - US$ Million SG&A Expenses - R$ Million 2013: : 1, Q12 1Q13 2Q13 3Q13 4Q13 4Q12 1Q13 2Q13 3Q13 4Q13 G&A Expenses Selling Expenses

18 18 Income from Operations US$ Million 6.9% 7.3% 5.5% 9.9% 11.4% % EBIT EBIT Margin Excluding AMR effect 2013 Outlook: EBIT: US$ Million EBIT Margin: 9.0% 9.5%

19 19 Income from Operations Income from Operations - US$ Million Income from Operations - R$ Million 2013: 713 / 11.4% 2013: 1,606 / 11.8% 12.0% 3.6% 8.7% 5.9% 20.1% 20.2% 13.7% 13.7% 12.0% 8.8% % 3.7% 1, Q12 1Q13 2Q13 3Q13 4Q13 4Q12 1Q13 2Q13 3Q13 4Q13 EBIT EBIT Margin Excluding AMR effect

20 20 EBITDA US$ Million 11.1% 11.4% 9.6% 14.4% 16.1% 1, % EBITDA EBITDA Margin Excluding AMR effect 2013 Outlook: EBITDA: US$ Million EBITDA Margin: 13.0% 14.0%

21 21 EBITDA EBITDA - US$ Million EBITDA - R$ Million 2013: 1,004 / 16.1% 2013: 2,239 / 16.4% 16.3% 9.2% 13.1% 12.1% 23.6% 17.3% % 9.3% 13.2% 12.2% 23.7% 17.2% 1, Q12 1Q13 2Q13 3Q13 4Q13 4Q12 1Q13 2Q13 3Q13 4Q13 EBITDA EBITDA Margin Excluding AMR effect

22 22 Net Income US$ Million 8.5% 6.2% 5.6% 5.5% 1.9% Net Income Net Margin

23 23 Net Income Net Income - US$ Million Net Income - R$ Million 2013: 342 / 5.5% 2013: 778 / 5.7% 11.5% 11.5% 6.5% 2.8% -0.3% 4.1% 6.5% 2.9% -0.3% 4.0% (5) 4Q12 1Q13 2Q13 3Q13 4Q13 (10) 4Q12 1Q13 2Q13 3Q13 4Q13 Net Income Net Margin

24 24 EPADS and Pay Out US$ 116% 26% 34% 26% 26% EPADS Pay Out

25 25 Inventories US$ Million 2,445 2,198 2,288 2,157 2,

26 26 Free Cash Flow US$ Million 2013: (83) (163) (125) (106) (50) (84) (156) (68) (60) (80) (75) (109) (201) 4Q12 1Q13 2Q13 3Q13 4Q13 4Q12 1Q13 2Q13 3Q13 4Q Net cash generated (used) by operating activities* 438 (83) Additions to property, plant and equipment (163) (50) (125) (106) (156) (438) Additions to intangible assets (75) (68) (60) (80) (109) (317) Free Cash Flow 201 (201) 2 (84) * Net of Financial assets adjustment

27 27 Investments US$ Million Total Investments RESEARCH DEVELOPMENT CAPEX Outlook 2013 Outlook: US$ 580 Million

28 28 Indebtedness Profile / Net Cash Indebtedness Maturity Net Cash/Debt - US$ Million 16% 15% % 4% 4% % 85% 94% 96% 96% Q12 1Q13 2Q13 3Q13 4Q13 Long-term Short-term Loans Average Maturity (Years) (20) 4Q12 1Q13 2Q13 3Q13 4Q13 Total Debt 4Q13 US$ 2.19 Billion Total Cash 4Q13 US$ 2.62 Billion

29 2014 OUTLOOK

30 Consolidated Outlook Net Revenues US$ Billion EBIT US$ Million EBITDA US$ Million EBIT Margin 9.0% 9.5% EBITDA Margin 13.0% 14.0% Free Cash Flow Positive Low Double Digits

31 Business Units Outlook Net Revenues Deliveries: 92 to 97 E-jets US$ Billion Deliveries: 80 to 90 light jets 25 to 30 large jets Net Revenues US$ Billion Net Revenues US$ Billion Other Revenues US$ 100 Million

32 Investment Outlook Research Development CAPEX US$ 80 Million US$ 320 Million US$ 250 Million TOTAL INVESTMENTS: US$ 650 Million

33 Investor Relations Phone: