embraer 4 q14_results_final (8)

This information is property of Embraer and can not be used or reproduced without written permission.

4Q14 & FY 2014 EARNINGS RESULTS

MARCH 5th, 2015


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

FORWARD LOOKING STATEMENT


HIGHLIGHTS

CELEBRATION OF 45TH ANNIVERSARY ON AUGUST 19TH.

LISTED FOR THE 5TH CONSECUTIVE YEAR ON THE DJSI AND ALSO ON THE ISE.

WINNER OF THE NATIONAL BRAZILIAN QUALITY AWARD (PNQ), PRESENTED BY THE NATIONAL QUALITY FOUNDATION (FNQ).

AWARDED AND RECOGNIZED AS ONE OF THE BEST COMPANIES IN BRAZIL AND ABROAD IN SEVERAL CATEGORIES.

3


HIGHLIGHTS 4Q14

4

DELIVERY OF 30 E-JETS.

1,100TH E-JET PRODUCTION AIRCRAFT DELIVERED TO AEROMEXICO AIRLINES.

SKYWEST ORDER FOR SEVEN E175 JETS.

FIRST METAL CUT OF THE E-JETS E2.


HIGHLIGHTS

5

DELIVERY OF 92 E-JETS IN 2014.

258 E-JETS (E1&E2) SOLD AND COMMITMENTS IN 2014.

590 E-JETS E2 COMMITMENTS.

1,549 ORDERS WITH A CUSTOMER BASE OF 65 AIRLINES IN 45 COUNTRIES.

LEADERSHIP IN THE COMMERCIAL JETS SEGMENT FROM 70 TO 130 SEATS.


HIGHLIGHTS 4Q14

6

DELIVERY OF 52 EXECUTIVE JETS (38 LIGHT AND 14 LARGE JETS).

CONVERSION OF 10 PHENOM 300 OPTIONS INTO FIRM ORDERS FROM NETJETS.

DELIVERY OF THE FIRST THREE LEGACY 500s.


HIGHLIGHTS

7

DELIVERY OF 116 EXECUTIVE JETS (92 LIGHT AND 24 LARGE JETS) IN 2014.

LEGACY 500 CERTIFIED IN BRAZIL, US, EUROPE AND AUSTRALIA.

PHENOM 300 WAS THE MOST DELIVERED EXECUTIVE JET FOR THE SECOND CONSECUTIVE YEAR (73 UNITS).

FIRST PLACE IN CUSTOMER SUPPORT IN THE ANNUAL SURVEY BY AIN MAGAZINE.


HIGHLIGHTS 4Q14

8

28 KC-390 SOLD TO THE BRAZILIAN AIR FORCE.

MOU WITH SAAB FOR BRAZIL´S F-X2 PROJECT.

DELIVERY OF THE FIRST FOUR A-29 SUPER TUCANOs TO THE U.S. AIR FORCE.


HIGHLIGHTS

9

DEFENSE & SECURITY REVENUES OF US$ 1.5 BILLION.

FIRST FLIGHT OF EMBRAER KC-390.

SISFRON PROJECT’S OPERATIONS INAUGURATION.

CONTRACTS WITH THE BRAZILIAN GOVERNMENT TO SUPPLY RADARS AND OPERATION CENTER UNITS.

CRITICAL DESIGN REVIEW OF THE BRAZILIAN GEOSTATIONARY SATELLITE.

NEW ATM SYSTEMS FOR BRAZILIAN AND INDIAN GOVERNMENT.


FINANCIAL RESULTS


FIRM ORDER BACKLOG

US$ BILLION

18.2 19.2 18.1

22.1 20.9

4Q13 1Q14 2Q14 3Q14 4Q14

11

COMMERCIAL AVIATION

DEFENSE & SECURITY

EXECUTIVE AVIATION


AIRCRAFT DELIVERIES

LARGE JETS - LEGACY & LINEAGE LIGHT JETS - PHENOM

2014 DELIVERIES OUTLOOK • 92 - 97 E-JETS • 25 - 30 EXECUTIVE LARGE JETS • 80 - 90 EXECUTIVE LIGHT JETS

12

101 105 10690 92

2010 2011 2012 2013 2014

19 16 22 29 24

126

83 77 90 92

2010 2011 2012 2013 2014

This information is property of Embraer and can not be used or reproduced without written permission. 13

NET REVENUES

2014 OUTLOOK: US$ 6.0 – 6.5 BILLION

5,3645,791 6,167 6,235 6,289

2010 2011 2012 2013 2014

US$ MILLION


24% 29%

48%

31% 22%

14%

14% 21%

21%3%8%

3%14%

6%4%5% 9% 4%

9% 5% 6%

2012 2013 2014

61%53% 50%

21%27%

26%

17% 19% 23%

1% 1% 1%

2012 2013 2014

REVENUES BREAKDOWN

NET REVENUES BY SEGMENT NET REVENUES BY REGION

COMMERCIAL AVIATION

EXECUTIVE AVIATION OTHERS

DEFENSE & SECURITY

Revenues US$ Billion 6.17 6.24 6.29

Revenues US$ Billion 6.17 6.24 6.29

NORTH AMERICA BRAZIL

EUROPE

ASIA PACIFIC

SOUTH & CENTRAL

AMERICA AFRICA &

MIDDLE EAST

CHINA

14


US$ MILLION R$ MILLION

15

NET REVENUES

5,296

2,929

3,929

2,827

5,251

4Q13 1Q14 2Q14 3Q14 4Q14

2,304

1,242

1,761

1,240

2,046

4Q13 1Q14 2Q14 3Q14 4Q14

2014: 14,936 2014: 6,289


US$ MILLION

SG&A EXPENSES

SELLING EXPENSES G&A EXPENSES EXPENSES / NET REVENUES

374 419480 454 420

198

261

279211

208

11% 12% 12% 11% 10%

2010 2011 2012 2013 2014


258219

257226

289

120

113

118118

141

4Q13 1Q14 2Q14 3Q14 4Q14

344

430

378 375

332

SELLING EXPENSES G&A EXPENSES

17

SG&A EXPENSES


11392

11599

113

52

48

5352

55

4Q13 1Q14 2Q14 3Q14 4Q14

168 151

140

165 168

2014: 1,481 2014: 627


392318

612713

543

7.3%5.5%

9.9%11.4%

8.6%

2010 2011 2012 2013 2014

9.1%

2014 OUTLOOK: EBIT: US$ 540 – 620 MILLION EBIT MARGIN: 9.0% – 9.5%

18

INCOME FROM OPERATIONS (EBIT)

US$ MILLION

EBIT EBIT MARGIN

566

EXCLUDING AMR EFFECT

713


1,068

215417

157

515

20.2%

7.4%10.6%

5.6%

9.8%

4Q13 1Q14 2Q14 3Q14 4Q14

463

92 187

68

196

20.1%

7.4%10.6%

5.5%

9.6%

4Q13 1Q14 2Q14 3Q14 4Q14

19

INCOME FROM OPERATIONS (EBIT)


EBIT EBIT MARGIN

2014: 1,304 | 8.7% 2014: 543 | 8.6%

316 723

13.7%


13.7%


13.8%

2014 OUTLOOK: EBITDA: US$ 780 – 910 MILLION EBITDA MARGIN: 13.0% – 14.0%

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EBITDA

US$ MILLION

EBITDA EBITDA MARGIN

611 557

8911,004

830

11.4%9.6%

14.4%16.1%

13.2%

2010 2011 2012 2013 2014


1,004

857


544

151261

136

281

23.6%

12.2%14.8%

11.0%13.8%

4Q13 1Q14 2Q14 3Q14 4Q14

21

EBITDA


EBITDA EBITDA MARGIN

2014: 1,981 | 13.3% 2014: 830 | 13.2%

1,253

355583

311

732

23.7%

12.1%14.8%

11.0%13.9%

4Q13 1Q14 2Q14 3Q14 4Q14


17.3% 17.2%

397 909


NET INCOME

US$ MILLION

NET MARGIN NET INCOME

330

112

348 342 335

6.2%

1.9%

5.6% 5.5% 5.3%

2010 2011 2012 2013 2014


NET INCOME


NET MARGIN NET INCOME

2014: 796 | 5.3% 2014: 335 | 5.3%

607

259 320

(24)

242

11.5%8.8% 8.1%

-0.9%

4.6%

4T13 1T14 2T14 3T14 4T14

265

111 143

(11)

91

11.5%8.9% 8.1%

-0.9%

4.5%

4Q13 1Q14 2Q14 3Q14 4Q14


EPADS & PAY OUT

US$

PAY OUT EPADS

1.83

0.62

1.92 1.88 1.82

34%

116%

26% 26% 27%

2010 2011 2012 2013 2014


INVENTORIES

US$ MILLION

2,1982,288

2,1572,287

2,405

2010 2011 2012 2013 2014


47

230

153

80

320

250

RESEARCH DEVELOPMENT CAPEX

2014 OUTLOOK: US$ 650 MILLION

2014 OUTLOOK 2014

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INVESTMENTS

US$ MILLION 2014: 430


4Q13 1Q14 2Q14 3Q14 4Q14 2014

NET CASH GENERATED (USED) BY OPERATING ACTIVITIES* 761 (273) 13 49 507 296

ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (156) (48) (60) (89) (87) (284)

ADDITIONS TO INTANGIBLE ASSETS (109) (83) (103) (97) (132) (415)

FREE CASH FLOW 496 (404) (150) (138) 288 (404)

761

(273)

13 49

507

(156)

(48)

(60) (89) (87)

(109)

(83)

(103) (97) (132)

496

(404)

(150) (138)

288

4Q13 1Q14 2Q14 3Q14 4Q14

27

FREE CASH FLOW

* Net of Financial assets adjustment

US$ MILLION 2014: (404)


96% 96% 96% 96% 96%

4% 4% 4% 4% 4%

6.25.9 5.7 5.6 5.4

4Q13 1Q14 2Q14 3Q14 4Q14

INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION

LONG-TERM SHORT-TERM LOANS AVERAGE MATURITY (YEARS)

28

INDEBTEDNESS PROFILE | NET CASH

TOTAL DEBT 4Q14: US$ 2.51 BILLION TOTAL CASH 4Q14: US$ 2.42 BILLION

429

53

(114)

(327)

(85)

4Q13 1Q14 2Q14 3Q14 4Q14


2015 OUTLOOK


EBITDA MARGIN 12.0% – 13.0%

NET REVENUES

EBITDA

US$ 6.1 – 6.6 BILLION

US$ 730 – 860 MILLION

EBIT MARGIN 8.0% – 8.5%

EBIT US$ 490 – 560 MILLION

FCF > (US$ 100) MILLION*

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2015 CONSOLIDATED OUTLOOK

* FCF USE OF LESS THAN US$ 100 MILLION.


2015 BUSINESS UNITS OUTLOOK

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18% OF NET REVENUES

2% OF NET REVENUES

28% OF NET REVENUES

52% OF NET REVENUES

DELIVERIES: 95 TO 100 E-JETS

US$ 100 MILLION

US$ 1.70 – 1.85 BILLION

US$ 1.10 – 1.25 BILLION

OTHER REVENUES

US$ 3.20 – 3.40 BILLION

DELIVERIES: 80 TO 90 LIGHT JETS 35 TO 40 LARGE JETS


TOTAL INVESTMENTS: US$ 650 MILLION

RESEARCH US$ 50 MILLION

DEVELOPMENT US$ 300 MILLION

CAPEX US$ 300 MILLION

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2015 INVESTMENT OUTLOOK


INVESTOR RELATIONS

PHONE: +55 12 3927 4404 [email protected]

WWW.EMBRAER.COM

embraer 4 q14_results_final (8)

Business

property of embraer

written permission

executive jets

forwardlooking statements

large jets

e175 jets

ejets e1e2

forwardlooking events