conference call 2q14
DESCRIPTION
Conference Call 2Q14TRANSCRIPT
This information is property of Embraer and can not be used or reproduced without written permission.
2nd QUARTER 2014 EARNINGS RESULTS
JULY 31, 2014
This information is property of Embraer and can not be used or reproduced without written permission.
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
This information is property of Embraer and can not be used or reproduced without written permission.
BUSINESS HIGHLIGHTS
AURIGNY AIR SERVICES FROM GUERNSEY, CHANNEL ISLANDS, STARTED OPERATION WITH THE E195.
DELIVERY OF 29 E-JETS IN 2Q14.
3
EMBRAER E-JETS TO BEGIN FLYING WITH TURKISH OPERATOR BORAJET.
AURIGNY AIR SERVICES ICBC LEASING TIANJIN AIRLINES
CHINA’S ICBC LEASING SIGNED PURCHASE AGREEMENT FOR UP TO 20 E190-E2.
CHINA'S HNA GROUP TIANJIN AIRLINES PURCHASED 20 E-JETS AND 20 E-JETS E2.
ROYAL AIR MAROC ADDED FOUR E190 AS PART OF ITS FLEET UPGRADE.
This information is property of Embraer and can not be used or reproduced without written permission.
BRAZIL'S AZUL SIGNED LOI FOR 30 E195-E2 JETS PLUS 20 OPTIONS.
FUJI DREAM AIRLINES PLACED AN ORDER FOR THREE E-JETS E175 PLUS THREE OPTIONS, ADDING TO ITS ALL-EMBRAER FLEET.
AZAL PLACED AN ORDER FOR TWO ADDITIONAL E190.
4
E-JETS E2 PROGRAM - 590 ORDERS ANNOUNCED TO DATE, INCLUDING 210 FIRM.
BUSINESS HIGHLIGHTS
EMBRAER AND TRANS STATES SIGNED A DEAL FOR UP TO 100 E175-E2.
AZUL LINHAS AÉREAS BRASILEIRAS FUJI DREAM AIRLINES AZERBAIJAN AIRLINES - AZAL
This information is property of Embraer and can not be used or reproduced without written permission.
BUSINESS HIGHLIGHTS
EMBRAER EXECUTIVE JETS DELIVERED THE 500TH PHENOM FAMILY JET.
5
DELIVERY OF 29 EXECUTIVE JETS IN 2Q14 (22 LIGHT JETS AND 7 LARGE JETS).
PHENOM 100E AND PHENOM 300 JETS WERE AGAIN ELECTED BY ROBB REPORT AS “BEST OF THE BEST” IN THEIR CATEGORIES.
PHENOM 300 RECEIVED CERTIFICATION FROM EASA FOR STEEP-APPROACH OPERATION.
STEEP-APPROACH IN LONDON CITY
This information is property of Embraer and can not be used or reproduced without written permission.
EMBRAER OPENED THE FINAL ASSEMBLY HANGAR FOR THE KC-390 AND SIGNED A CONTRACT FOR 28 AIRCRAFT WITH THE BRAZILIAN AIR FORCE.
BUSINESS HIGHLIGHTS
EMB-121 XINGU REACHED 30 YEARS OF OPERATIONS WITH THE FRENCH AIR FORCE AND FRENCH NAVY.
EMBRAER SIGNED A MOU WITH SAAB FOR BRAZIL´S F-X2 PROJECT.
6
ATECH WON TWO COMPETITIONS: SUPPLY OF C4I SYSTEMS TO THE FEDERAL POLICE AND ALSO FOR THE AIR-TRAFFIC MANAGEMENT SYSTEM IN INDIA.
VISIONA CONCLUDED PRELIMINARY DESIGN REVIEW IN THE SGDC PROJECT AND NEXT PHASE WAS APPROVED BY TELEBRAS AND THE MINISTRY OF DEFENSE.
EMB-121 XINGU GRIPEN NG – FX-2 KC-390 FINAL ASSEMBLY HANGAR
This information is property of Embraer and can not be used or reproduced without written permission.
BUSINESS HIGHLIGHTS
7
EMBRAER AND PETROBRAS SIGNED A MOU TO ASSESS THE
RELIABILITY OF CRITICAL SYSTEMS OF THE OIL AND GAS INDUSTRY.
EMBRAER AND BOEING SIGNED A MOU FOR IMPLEMENTING
A SUSTAINABLE BIOFUELS R&D CENTER IN BRAZIL.
This information is property of Embraer and can not be used or reproduced without written permission.
FINANCIAL RESULTS
This information is property of Embraer and can not be used or reproduced without written permission.
FIRM ORDER BACKLOG
US$ BILLION
17.1 17.8 18.2 19.2 18.1
2Q13 3Q13 4Q13 1Q14 2Q14
9
This information is property of Embraer and can not be used or reproduced without written permission.
6 415
3 7
2321
38
17
22
2Q13 3Q13 4Q13 1Q14 2Q14
2219
32
14
29
2Q13 3Q13 4Q13 1Q14 2Q14
AIRCRAFT DELIVERIES
LARGE JETS - LEGACY & LINEAGE
LIGHT JETS - PHENOM 2014 DELIVERIES ESTIMATES • 92 - 97 E-JETS • 25 - 30 EXECUTIVE LARGE JETS • 80 - 90 EXECUTIVE LIGHT JETS
10
This information is property of Embraer and can not be used or reproduced without written permission.
309 267369 394 357
2Q13 3Q13 4Q13 1Q14 2Q14
370 315
785
267421
2Q13 3Q13 4Q13 1Q14 2Q14
860687
1,120
555
972
2Q13 3Q13 4Q13 1Q14 2Q14
1,5571,288
2,304
1,242
1,761
2Q13 3Q13 4Q13 1Q14 2Q14
NET REVENUES BY SEGMENT – 2014 OUTLOOK
US$ 1.5 – 1.7 BILLION US$ 1.2 – 1.3 BILLION
US$ 3.2 – 3.4 BILLION US$ 6.0 – 6.5 BILLION
11
This information is property of Embraer and can not be used or reproduced without written permission.
US$ MILLION R$ MILLION
12
NET REVENUES
2014 OUTLOOK: US$ 6.0 – 6.5 BILLION
3,240 2,944
5,296
2,929
3,929
2Q13 3Q13 4Q13 1Q14 2Q14
1,5571,288
2,304
1,242
1,761
2Q13 3Q13 4Q13 1Q14 2Q14
YTD: 6,857 YTD: 3,004
This information is property of Embraer and can not be used or reproduced without written permission.
250 256 258219
257
111 117 120
113
118
2Q13 3Q13 4Q13 1Q14 2Q14
332
375 361 378 373
SELLING EXPENSES G&A EXPENSES
13
SG&A EXPENSES
US$ MILLION R$ MILLION
121 112 11392
115
5451 52
48
53
2Q13 3Q13 4Q13 1Q14 2Q14
165
140
163 175 168
YTD: 707 YTD: 308
This information is property of Embraer and can not be used or reproduced without written permission.
285 173
1,068
215417
8.8%
5.9%
20.2%
7.4%10.6%
2Q13 3Q13 4Q13 1Q14 2Q14
135 76
463
92 187
8.7%5.9%
20.1%
7.4%
10.6%
2Q13 3Q13 4Q13 1Q14 2Q14
14
INCOME FROM OPERATIONS (EBIT)
2014 OUTLOOK: EBIT: US$ 540 – 620 MILLION EBIT MARGIN: 9.0% – 9.5%
US$ MILLION R$ MILLION
EBIT EBIT MARGIN
YTD: 632 | 9.2% YTD: 279 | 9.3%
This information is property of Embraer and can not be used or reproduced without written permission.
204 156
544
151261
13.1% 12.1%
23.6%
12.2%14.8%
2Q13 3Q13 4Q13 1Q14 2Q14
15
EBITDA
2014 OUTLOOK: EBITDA: US$ 780 – 910 MILLION EBITDA MARGIN: 13.0% – 14.0%
US$ MILLION R$ MILLION
EBITDA EBITDA MARGIN
YTD: 938 | 13.7% YTD: 412 | 13.7%
427 359
1,253
355583
13.2% 12.2%
23.7%
12.1%14.8%
2Q13 3Q13 4Q13 1Q14 2Q14
This information is property of Embraer and can not be used or reproduced without written permission. 16
NET INCOME
US$ MILLION R$ MILLION
NET MARGIN NET INCOME
YTD: 579 | 8.4% YTD: 254 | 8.5%
(10)119
607
259 320
-0.3%
4.0%
11.5%
8.8% 8.1%
2Q13 3Q13 4Q13 1Q14 2Q14
(5)53
265
111 143
-0.3%
4.1%
11.5%
8.9% 8.1%
2Q13 3Q13 4Q13 1Q14 2Q14
This information is property of Embraer and can not be used or reproduced without written permission.
2,5232,780
2,2872,542 2,439
2Q13 3Q13 4Q13 1Q14 2Q14
17
INVENTORIES
US$ MILLION
This information is property of Embraer and can not be used or reproduced without written permission.
2Q13 3Q13 4Q13 1Q14 2Q14 2014 YTD
NET CASH GENERATED (USED) BY OPERATING ACTIVITIES* 186 102 761 (273) 13 (260)
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (125) (106) (156) (48) (60) (108)
ADDITIONS TO INTANGIBLE ASSETS (60) (80) (109) (83) (103) (186)
FREE CASH FLOW 2 (84) 496 (404) (150) (554)
186 102
761
(273)
13
(125) (106) (156)
(48)
(60)
(60) (80)(109)
(83)
(103)
2
(84)
496
(404)
(150)
2Q13 3Q13 4Q13 1Q14 2Q14
18
FREE CASH FLOW
* Net of Financial assets adjustment
US$ MILLION YTD: (554)
This information is property of Embraer and can not be used or reproduced without written permission.
2159 48
80
320
250
RESEARCH DEVELOPMENT CAPEX
2014 OUTLOOK: US$ 650 MILLION
2014 OUTLOOK 2014 YTD
19
INVESTMENTS
US$ MILLION YTD: 128
This information is property of Embraer and can not be used or reproduced without written permission.
94% 96% 96% 96% 96%
6% 4% 4% 4% 4%
5.4
6.3 6.25.9 5.7
2Q13 3Q13 4Q13 1Q14 2Q14
INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION
LONG-TERM SHORT-TERM LOANS AVERAGE MATURITY (YEARS)
20
INDEBTEDNESS PROFILE | NET CASH
TOTAL DEBT 2Q14: US$ 2.41 BILLION TOTAL CASH 2Q14: US$ 2.30 BILLION
58
(20)
429
53
(114)
2Q13 3Q13 4Q13 1Q14 2Q14
This information is property of Embraer and can not be used or reproduced without written permission.
INVESTOR RELATIONS
PHONE: +55 12 3927 4404 [email protected]
WWW.EMBRAER.COM