embraer 2 q10 results_final
TRANSCRIPT
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Forward Looking StatementForward 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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HighlightsHighlights
Net revenues of US$ 1.35 billion and gross margin of 21.4%.
Phenom 300 certified by EASA / first delivery in Brazil.
Continuous expansion of Embraer Customer Support network.
Signs of improvement on Commercial Aviation with orders at Farnborough.
Brazilian Air Force announced its intention to buy 28 KC 390.
All program developments on track.
EBIT of US$ 126 million and EBIT margin of 9.3%.
FCF generation of US$ 220 million. Solid net cash of US$ 659 million.
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RevenueRevenue
Commercial aviation Executive aviation Aviation services and othersDefense
67% 66%
44%53% 61%
14% 16%
26% 12%14%
7% 6%16% 19%
13%
12% 12% 14% 16% 12%
2Q09 3Q09 4Q09 1Q10 2Q10
1.46Net Revenue US$ Billion 1.25 1.61 1.00 1.35
6750
21
56
8 4
1H09 1H10
3530 28
2115
22
55
17
39
6 5 8 3 1
29
2Q09 3Q09 4Q09 1Q10 2Q10
DeliveriesDeliveries
2010 projected deliveries • 90 commercial jets• 17 Legacy / Lineage• 120 Phenom
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PhenomCommercial Jets Legacy and Lineage
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Firm Order BacklogFirm Order Backlog
US$ Billion
4.16.4
11.4 10.7 9.0 10.6 10.1 10.4
14.8
18.816.6 15.2
20.9
2.2 2.3
3.94.2 4.2
3.12.6 2.8 2.8 3.0
3.83.3
3.0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2Q10
Firm Order Backlog Backlog/Revenue (Years)
*
* As of June 30, Farnborough sales are not included
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Net Revenues and Net Revenues and Gross MarginGross Margin
US Gaap - US$ Million
Net Revenues Gross Margin
IFRS - US$ Million
1,4571,246
1,610
990
1,354
23.1%
18.8%
20.8% 21.7% 21.4%
2Q09 3Q09 4Q09 1Q10 2Q10
992
1,6141,461
1,250 1,358
20.2%19.7% 20.8%22.3%
17.9%
2Q09 3Q09 4Q09 1Q10 2Q10
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SG&A ExpensesSG&A Expenses
Selling Expenses General and Adm. Expenses
US Gaap - US$ Million
121
143
121
143
121 125
147
123
147
121
IFRS - US$ Million
74 7392 86
47 52
55
35
49
94
2Q09 3Q09 4Q09 1Q10 2Q10
74 7292 86
47 51
55
35
49
94
2Q09 3Q09 4Q09 1Q10 2Q10
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Income from OperationsIncome from Operations
US Gaap - US$ Million
Income from Operations Operating Margin
IFRS - US$ Million
175
68 66 57
126
9.3%
5.8%
4.1%5.5%
12.0%
2Q09 3Q09 4Q09 1Q10 2Q10
91
3971
198
122
7.2%
9.0%
2.4%
7.3%
13.5%
2Q09 3Q09 4Q09 1Q10 2Q10
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EBITDAEBITDA
US Gaap - US$ Million
EBITDA EBITDA Margin
IFRS - US$ Million
257
151105 117
166
17.6%
6.5%
12.1% 11.8% 12.2%
2Q09 3Q09 4Q09 1Q10 2Q10
196
90 89 80
139
7.2%5.6%
8.1%
10.2%
13.5%
2Q09 3Q09 4Q09 1Q10 2Q10
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Income Before TaxesIncome Before Taxes
Income Before Taxes Margin
US Gaap - US$ Million IFRS - US$ Million
134
4873 66
131
9.2%
3.8%4.6%
6.7%
9.7%
2Q09 3Q09 4Q09 1Q10 2Q10
156
76
41
77
128
2.5%
9.4%10.7%7.8%
6.1%
2Q09 3Q09 4Q09 1Q10 2Q10
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Net IncomeNet Income
Net Income Net Margin
US Gaap - US$ Million IFRS - US$ Million
70
35
146
58
68
5.2%
3.6%
9.1%
4.6%4.7%
2Q09 3Q09 4Q09 1Q10 2Q10
229
12295
24 57
5.9%4.2%
15.7%
2.4%
9.8%
2Q09 3Q09 4Q09 1Q10 2Q10
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Free Cash FlowFree Cash Flow
US Gaap - US$ Million IFRS - US$ Million
(81)6
220
(60)
383
2Q09 3Q09 4Q09 1Q10 2Q10
(47)23
253
(42)
364
2Q09 3Q09 4Q09 1Q10 2Q10
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Indebtedness Profile Indebtedness Profile Net Cash Net Cash (USGAAP)(USGAAP)
Total Debt 2Q10: US$ 1.5 Billion
Long-term Short-term
Loans Average Maturity (Years)
Indebtedness Maturity
71% 75%
49% 47%
53%51%
78%
29% 25% 22%
2.62.1
4.9 5.0
5.8
2Q09 3Q09 4Q09 1Q10 2Q10
Total Cash 2Q10: US$ 2.2 Billion
52 71
503 459
659
2Q09 3Q09 4Q09 1Q10 2Q10
Net Cash
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InventoriesInventories
US Gaap - US$ Million
2,8752,723
2,340 2,359 2,246
2Q09 3Q09 4Q09 1Q10 2Q10
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2010 Guidance
Revision
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2010 Guidance and 2010 Guidance and OutlookOutlook
US$ 300 million
Net Revenues
EBIT
EBIT margin
US$ 5.0 billion
6.0%
R&D US$ 160 million
PP&E US$ 140 million
6.5%
US$ 300 million
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2010 Guidance and 2010 Guidance and OutlookOutlook
Net Revenues
EBIT
EBIT margin
Current Guidance New Guidance
US$ 5.25 billion
US$ 340 million
US$ 5.0 billion
6.0%
R&D US$ 160 million
PP&E US$ 140 million
+ 5%
+ 13%
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