2003* 4o. encontro anual de investidores da embraer estratégia corporativa (disponível apenas em...
TRANSCRIPT
EmbraerFourth Annual
Investor MeetingSão José dos Campos
Nov. 20-21, 2003
Maurício BotelhoPresident & CEO
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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.
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High Technology
Qualified People
Global Presence
Flexibility
Cash Intensiveness
FundamentalsAeronautical Industry Fundamentals
CUSTOMER SATISFACTION
Backbone of our entrepreneurial action
6
Business DiversificationExpected Sales Breakdown
In five years
CorporateJets
CustomerService
Defense
Commercial70%
30%
Customer Serviçes
10%
Corporate12%
Defense13%
Comercial65%
Current Sales Breakdown3Q03
7
Product Diversification
70’s 90’s 00’s80’s
BANDEIRANTE(EMB 110/111)
TUCANO(EMB 312)
BRASÍLIA(EMB 120)
ERJ 145
AEW&C/ RS/ MP
ERJ 135
EMB 326
EMB 321
EMB 121
AMX
BRASÍLIA(EMB 120)
ERJ 140
AL X(EMB 314)
LEGACY
ERJ 145
ERJ 135
ERJ 140
EMBRAER 170EMBRAER 175
EMBRAER 190EMBRAER 195
AMX-TAEW&C/ RS/ MP
AL X(EMB 314)
Mirage 2000 BR ?
AMX
ERJ 145 XR
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Global Presence
Operations in Brazil, United States, Europe, Asia and Australia
BrazilGavião Peixoto
BotucatuSão José dos Campos
USANashville
Palm Beach GardensFort Lauderdale France
Le Bourget
ChinaBeijingHarbin
AustraliaMelbourne
SingaporeSingapore
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Recent Geographic Diversification
Q Acquisition of the assets of Celsius Aerotech
Q JV in China
Q Plans for an assembly line in Jacksonville, FL -USA
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Number of Employees
April / 97: minimum of 3,200 people
12,227
6,087 4,319 4,4946,737
11,048
8,302
3,849
94 95 96 97 99 00 01 02
10,334
98
12,803
BRAZIL 11,976*
USA 482
CHINA 132
SINGAPORE 10EUROPE 194
AUSTRALIA 09
Oct 03
Employees
* ELEB employees included
16
30%
4%
1%65%
Qualified People
Educational Levels
25% of the employees are engineersCurrent as of 2002
College Undergraduates
High SchoolGraduates
Graduates
Masters or PhD
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Foccus on Trainnnig
More than US$ 81.5 million invested intraining and development in the last 4 years
21 1824.518
1999 2000 2001 2002
In–house courses:
• 18 - month graduate course in Aeronautical Engineering
• 2 - year MBA course focused on international trade
US$ million
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Comunity
Social & Comunity foccus on Education
Eng. Juarez Wanderley High School developed for 600students
Implementing severalprograms including the Action Plan concept in public schools benefiting more than 34,000 students
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Health & Environment
EnvironmentISO 14001 Certificate
(Mar/2002)
Health & SecurityCertification OHSAS 18001
(Mar/2002)
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Dow Jones Sustainabilly Index
Recognignition of its corporate policy sustainabilly through:
Creation of Shareholder Value -Medium & Long Term
Social & Environmentresponsability
Corporate Governance
Nominated for the third consecutive yearFor the DOW JONES SUSTAINABILITY WORLD INDEX
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Social Report
Employee Benefits 2001 US$ 72.4 Million
Profit Sharing
59%
Health Insurance
12%
Pharmacy
1%
Retirement7%
Others
6%
Meals9%
Transportation
5%
Life Insurance
1%Retirement
9%
Life Insurance1%
Transportation5%
Meals9%
Pharmacy1%
Health Insurance15%
Profit Sharing55%
Others3%
Dental Assistence1%
Schoolarship 1%
Employee Benefits 2002US$ 62.2 Million
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Corporate Governance
Board of Directors Composition:
Six representatives indicated by the Controlling Shareholders & CEO
Two representatives indicated by the Employees;
Two representatives of the minoritaries shareholders;
Two governament representatives.
Active Board of Directors & Permanent Fiscal Board :
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Corporate Governance
QImplemented:
Trading policyDisclosure PolicyRisk management
QTo be Implemented:Disclosure Comitee Audit ComiteeCode of Etics
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US$ million
PP&E and R&D
125.8
44.1
127.7
143.8
114.2
60.1
158.6
99.6
69.6
18.8
0
20
40
60
80
100
120
140
160
180
1999 2000 2001 2002 Sep. 03
PP&E
R&D
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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
3.7 3.5
1996 1997 1998 1999 2000 2001 2002 Sep. 03
Reduced Production Cycle
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ERJ DELIVERIES
7
400thMar 2001
300thAug 2000
200thDec 1999
1224
100thDec 1998
500thSep 2001
68
600thMay 2002
86
700thMay 2003
12
Family ERJ 145Deliveries
Flexibility
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91
185
242 247
307
254227
0
50
100
150
200
250
300
350
1996 1997 1998 1999 2000 2001 2002
Revenues per Employee
(US$ thousand)Brazilian GAAP
31
In 3Q03 - US$ 27.6billion in total orders, including US$ 10.4 billion in firm orders
Backlog
US$ billion
10.410.37.99.010.711.4
6.44.13.01.2
17.216.8
11.313.2
12.712.7
11.3
0
5
10
15
20
25
30
1996 1997 1998 1999 2000 2001 2002 1Q03 2Q03 3Q03
OptionsFirm Orders
1.23.0
4.1
17.7
24.1 23.422.2
19.2
27.1 27.6