fourth quarter results us gaap
TRANSCRIPT
![Page 1: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/1.jpg)
FY2008 Earnings
ResultsMarch 27th, 2009
![Page 2: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/2.jpg)
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.
![Page 3: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/3.jpg)
Firm Order Backlog - US$ 20.9 Billion
Increased 11% in 2008
Historical Year End Record
Firm Order Backlog
20.918.8
14.8
2006 2007 2008
US$ Billion
![Page 4: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/4.jpg)
Aircraft Deliveries
• Delivery of 202 jets + two Phenom 100,
meeting the guidance (195-200 jets +
10 Phenom).
• Growth of 21% compared to 2007.
• Record of yearly aircraft deliveries in
Company’s history.
Deliveries
130
169
202 + 2
2006 2007 2008
![Page 5: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/5.jpg)
Net CashNet Revenues
Net Revenues and Net Cash
US$ Million US$ Million
3,760
5,245
6,335
2006 2007 2008
416
740
376
2006 2007 2008
![Page 6: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/6.jpg)
Net IncomeEBIT Margin
EBIT Margin and Net Income
9.1%
7.1%8.5%
2006 2007 2008
390
489
389
2006 2007 2008
US$ Million
![Page 7: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/7.jpg)
Highlights
• Embraer overcame 500 E-Jets deliveries.
• Ten new customers and nine new operators of E-Jets
• Azul Linhas Aereas Brasileiras became the first Brazilian operator
of E-Jets and Trip Linhas Aéreas signs for five jets
• Phenom 100 and Lineage 1000 certification
• Defense and Government business relevance increases
• Embraer signs for the Global Compact
• Maintenance of Investment Grade given by rating agencies
Moody’s (Baa3) and Standard & Poors (BBB-).
![Page 8: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/8.jpg)
2008 Guidance X Effective
• Deliveries: 195 to 200 aircraft + 10 Phenom
We delivered: 202 aircraft + 2 Phenom
• Revenue: US$ 6.5 bi.
We delivered: US$ 6.4 bi.
• EBIT Margin: 8% to 9%
We delivered: 8.5%
• Investments: R&D: US$ 230 mi. / PP&E: US$ 270 mi.
We delivered: US$ 197 mi. / US$ 234 mi.
![Page 9: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/9.jpg)
Scenario
![Page 10: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/10.jpg)
Forecast Revisions
up to Oct/08 Nov/08 Feb/09
Deliveries 350 a/c 270 a/c 242 a/c
Revenues 7,1 bi 6,3 bi 5,5 bi
Ebit Margin 10-12% 10% 10%
Investments 442 mi 450 mi 350 mi
![Page 11: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/11.jpg)
Strong Expenses Control
• G&A expenses reduction
• Interest expenses reduction
• Suppliers expenses reduction
• 20% payroll reduction
• Capex investments postponements
![Page 12: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/12.jpg)
Employment – 2000 a 2009
Embraer
-
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
22.000
Efetivo
Embraer 10.334 12.745 11.046 12.227 12.789 14.493 15.192 17.503 21.843 21.550 17.058
dez/00 set/01 out/01 dez/02 dez/03 dez/04 dez/05 dez/06 dez/07 dez/08 fev/09
9/11 Events
6.000 Jobs
DEC / 03
Recovery of Sep / 01
employment levels
SEP / 08
Economic Downturn
![Page 13: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/13.jpg)
Qualified People
Educational Level
High School
68%
Phd
2%
Postgraduate
4%
Graduate
26%
![Page 14: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/14.jpg)
Qualified People
US$ 165 million invested on training and qualification in the past five years
2025
30
4545
2004 2005 2006 2007 2008
US$ Million
![Page 15: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/15.jpg)
Employee Benefits
Salaries.................................R$ 1,717 million
Variable Remuneration........R$ 131 million*
Benefits.................................R$ 212 million
Benefits
Meals17%
Health Insurance
45%Transportation
15%
Retirement16%
Others5%
Life Insurance2%
*data base reference 2007
![Page 16: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/16.jpg)
Financial Results & Performance
![Page 17: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/17.jpg)
Jet Deliveries
130
169
202 + 2
2006 2007 2008
![Page 18: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/18.jpg)
Net Revenue by Segment
2007 2008
Others
3%Aviation
Services
10%
Executive
Aviation
16%
Defense and
Government
7%
Commercial
Aviation
64%
Executive
Aviation
14%
Aviation
Services
9%
Others
2%
Commercial
Aviation
67%Defense and
Government
8%
![Page 19: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/19.jpg)
Net Revenue by Market
2007 2008
Others
8%Asia
Pacific
6%
Europe
24%
Latin
America
12%
Brazil
4%
North
America
46%
Europe
18%
Latin
America
10%
Brazil
4%
North
America
43%
Asia Pacific
18%
Others
7%
![Page 20: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/20.jpg)
Net Revenue
6,3355,245
3,760
25.3% 22.0% 21.2%
2006 2007 2008
Net Revenues Gross Margin
US$ Million
![Page 21: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/21.jpg)
Income from Operations
537
374343
7.1%9.1% 8.5%
2006 2007 2008
Income from Operations Margin
US$ Million
![Page 22: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/22.jpg)
Net Income
389
489
390
10.4%6.1%
9.3%
2006 2007 2008
Net Income Net Margin
US$ Million
![Page 23: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/23.jpg)
Accounts Receivable and Clients Financing
300394 444
569 415
519
2006 2007 2008
Accounts Receivable Costumer Commercial Financing
US$ Million
![Page 24: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/24.jpg)
Inventories
US$ Million
2,047
2,4912,837
2006 2007 2008
![Page 25: Fourth Quarter Results US GAAP](https://reader034.vdocuments.us/reader034/viewer/2022042521/5585b323d8b42a49548b471a/html5/thumbnails/25.jpg)
Net Cash (Debt)
416
740
376
1,765
2,4932,202
2006 2007 2008
Net Cash (Debt) Total Cash*
*Total cash do not include a US$ 500 MM credit facility available for the Company.
US$ Million