2008 - second quarter 2008 results
TRANSCRIPT
Second Quarter 2008 Second Quarter 2008
ResultsResults
August 1st, 2008
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 Forward LookingLooking StatementStatement
SummarySummary
• Embraer announced new Executive Jets, Legacy 500 e Legacy 450 which will enter service in the
second semester of 2012 and 2013, respectively.
• The Embraer Phenom 300 successfully took to the air on its maiden flight, starting its flight test
campaign two weeks after finishing its assembling. It is expected to enter service in the second
semester of 2009.
• Embraer announced a new facility in the United States dedicated to its executive jets business,
witch will house a final assembly line for the Phenom 100 and 300, as well as a paint shop and a
delivery and customer design center.
• Embraer’s ERJ 145 Family obtained final Russian Certification.
• EMBRAER 190 and EMBRAER 195 jets received certification in China.
• Embraer signed contract for the sale of five EMBRAER 175 jets, with Brazil’s Trip Linhas Aéreas.
• Embraer signed contract for the sale of two EMBRAER 190 jets to the Brazilian government for
transporting official personnel.
• Embraer has formally joined the Global Compact program developed by the United Nations (UN).
Results & Results &
PerformancePerformance
Jet DeliveriesJet Deliveries
36
47
61
4552
2Q07 3Q07 4Q07 1Q08 2Q08
Net Revenue by SegmentNet Revenue by Segment
2Q07 2Q08
Others
2.0%Aviation
Services
10.0%Executive
Aviation
15.1%
Defense and
Government
9.1%
Commercial
Aviation
63.8%
Others
1.1%Aviation
Services
9.4%Executive
Aviation
13.9%
Defense and
Government
6.4%
Commercial
Aviation
69.2%
Net RevenueNet Revenue
US$ Million
1,110
1,428
1,875
1,336
1,635
21.5% 21.2%
22.6%
20.4%
21.9%
2Q07 3Q07 4Q07 1Q08 2Q08
Net Revenue Gross Margin
Income from OperationsIncome from Operations
US$ Million
31
162 165
49
113
2.8%
11.4%
8.8%
3.6%
6.9%
2Q07 3Q07 4Q07 1Q08 2Q08
Income from Operations Margin
EBITDAEBITDA
US$ Million
40
181 182
65
129
3.6%
7.9%
4.9%
9.7%
12.7%
2Q07 3Q07 4Q07 1Q08 2Q08
EBITDA EBITDA Margin
Net IncomeNet Income
US$ Million
67
195 201
85
134
6.1%
13.6%
10.7%
6.4%
8.2%
2Q07 3Q07 4Q07 1Q08 2Q08
Net Income Net Margin
Accounts Receivable and Clients FinancingAccounts Receivable and Clients Financing
US$ Million
328 346 394 401
231 23637 34
330 329
378 373382
370
35
2Q07 3Q07 4Q07 1Q08 2Q08
Accounts Receivable CCF A/c Leasing/Remarketing
InventoriesInventories
US$ Million
2,621 2,681 2,491
2,688 2,838
2Q07 3Q07 4Q07 1Q08 2Q08
IndebtednessIndebtedness
• Average Cost in Brazilian Currency (R$): 8.29% p/a
• Average Cost in Foreign Currency (US$): Libor + 1.06% p/a
Total Debt: US$ 1,639 Million
Loans Average Maturity: 3 years and 6 months
Short
Term
50%
Long
Term
50%
Foreign
Currency
56%
Brazilian
Currency
44%
Net Cash (Debt)Net Cash (Debt)
US$ Million
128
450524
650740
2Q07 3Q07 4Q07 1Q08 2Q08
Backlog and Backlog and
Deliveries ForecastDeliveries Forecast
ERJ 145 Family Order Book ERJ 145 Family Order Book
41
41
-
-
Firm
Backlog
87499075915Total
69280875733ERJ 145
7474-74ERJ 140
108108-108ERJ 135
DeliveriesTotalOptionsFirm Orders
(as per 2nd Quarter, 2008)
EMBRAER 170/190 Family Order BookEMBRAER 170/190 Family Order Book
(as per 2nd Quarter, 2008)
75211737796EMBRAER 195
437
270
46
46
Firm
Backlog
4101674827847Total
161898467431EMBRAER 190
88307173134EMBRAER 175
140296110186EMBRAER 170
DeliveriesTotalOptionsFirm Orders
Order BacklogOrder Backlog
US$ Billion
20.7 20.3 18.8 17.2 15.6
22.9 24.3
26.1 26.5 25.9
2Q07 3Q07 4Q07 1Q08 2Q08
Firms Options
Aircraft Deliveries ForecastAircraft Deliveries Forecast
169 131
101148 141 130
195/200 E*
10/15 E*
120/150 E*
2002 2003 2004 2005 2006 2007 2008 2009
ERJ, E-Jets, Legacy 600 and Lineage 1000 Phenom 100 / 300
E* - Estimated
Investments ForecastInvestments Forecast
US$ MillionR&D
2008 2009Commercial Aviation 48 55
Executive Aviation 123 227*
Technology Development 72 70
TOTAL 243 352
Defense and Government 54 102
PP&E
2008 2009
TOTAL 330 270
* Includes additional US$ 100 MM investment for the
development of MSJ e MLJ Jets
Investor Relations Investor Relations
Phone: +55 12 3927 4404Phone: +55 12 3927 [email protected]@embraer.com.br
www.embraer.comwww.embraer.com