embraer 2 q12 results_final
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SECOND QUARTER 2012
RESULTS IN IFRS
July 31, 2012
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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.
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• Delivery of 35 E-Jets in 2Q12, reaching 858
total deliveries since EIS.
• Embraer sells five more E190s
to China’s Hebei Airlines.
Highlights
• E-Jet flight with renewable jet fuel during
Rio+20 Environment Conference in Brazil.
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• Delivery of 20 executive jets in 2Q12 (17 light jets and 3 large jets).
Highlights
• ICBC Leasing signs 10 aircraft order
for Legacy 650s to be made by HEAI.
• Agreement between Embraer and Avic to
build Legacy 600/650 in Harbin – China.
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• Defense and security 2Q12 revenues increased 33% compared to 2Q11.
Highlights
• Agreements with Boeing to collaborate in the KC-390
and A-29 Super Tucano programs.
• Sale of eight A-29 Super Tucano and a
flight simulator to Indonesian Air Force.
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Revenues by Segment – 2012 Outlook
Commercial aviation: US$ 3.70 – 3.85 Billion
Executive aviation: US$ 1.10 – 1.30 Billion Defense and security: US$ 900 – 950 Million
Embraer: US$ 5.8 – 6.2 Billion
1.176
888996
1.078
760
2Q11 3Q11 4Q11 1Q12 2Q12
261247
149
603
152
2Q11 3Q11 4Q11 1Q12 2Q12
266232
293
189201
2Q11 3Q11 4Q11 1Q12 2Q12
1.717
1.156
2.025
1.3641.359
2Q11 3Q11 4Q11 1Q12 2Q12
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69%61% 64% 67% 63%
17%23% 19% 15% 20%
12% 15% 15% 17% 15%
2% 1% 2% 1% 2%
2009 2010 2011 YTD2012 EST2012
Revenues by Segment
Commercial aviation Executive aviation Others Defense and security
Net Revenues
US$ Billion 5.36 5.80 – 6.20 5.50 5.80 2.87
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15.8 16.0 15.4 14.712.9
2Q11 3Q11 4Q11 1Q12 2Q12
Firm Backlog
US$ Billion
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Net Revenues and Gross Margin
US$ Million R$ Million
Net Revenues Gross Margin
1,359 1,364
2,025
1,156
1,717
22.4%21.2%
22.5% 23.2% 23.6%
2Q11 3Q11 4Q11 1Q12 2Q12
2,169 2,266
3,667
2,049
3,385
22.4%21.2%
22.5% 23.2% 23.6%
2Q11 3Q11 4Q11 1Q12 2Q12
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109 103 114 109
64 6972 71
75
119
2Q11 3Q11 4Q11 1Q12 2Q12
SG&A Expenses
280
334 172
186 194
173
382
277
Selling Expenses G&A Expenses
180 318
US$ Million R$ Million
174 167205 192
103 113
129126
148
234
2Q11 3Q11 4Q11 1Q12 2Q12
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Income from Operations
EBIT EBIT Margin
US$ Million R$ Million
212
(15)
153169
390
7.8%9.4%
-0.4%
7.5%
11.5%
2Q11 3Q11 4Q11 1Q12 2Q12
124
(6)
86106
197
7.8%9.1%
-0.3%
7.4%
11.5%
2Q11 3Q11 4Q11 1Q12 2Q12
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EBITDA
EBITDA EBITDA Margin
US$ Million R$ Million
153188
59
148
265
11.3%
13.8%
2.9%
12.8%
15.4%
2Q11 3Q11 4Q11 1Q12 2Q12
250311
101
264
524
11.5%
13.7%
2.8%
12.9%
15.5%
2Q11 3Q11 4Q11 1Q12 2Q12
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10.9%
369
Net Margin
Net Income
Net Income
US$ Million R$ Million
96
2
-92
63 54
7.1%
0.1%
-4.5%
5.4%
3.2%
2Q11 3Q11 4Q11 1Q12 2Q12
154
0
-172
111 115
7.1%
0.0%
-4.7%
5.4%
3.4%
2Q11 3Q11 4Q11 1Q12 2Q12
Adjusted Net Income, excluding deferred income taxes
10.9%
187
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Inventories / Free Cash Flow
Free Cash Flow Inventories
US$ Million US$ Million
Free cash flow
Additions to PP&E
Net cash generated (used) by operating activities*
Additions to Intangible
* Net of Financial assets adjustment
2,6972,872
2,288
2,6522,530
2Q11 3Q11 4Q11 1Q12 2Q12
105
(70)
155
(73) (77)
(40)
(76)
414
20
(93)
(55)(65)
(60)(60)(50)
25
(174)
277
(112)(38)
2Q11 3Q11 4Q11 1Q12 2Q12
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Investments
2012 Outlook YTD 2012
11984100
350
200
31
RESEARCH DEVELOPMENT CAPEX
US$ Million
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Indebtedness Profile / Net Cash
Long-term Short-term
Loans Average Maturity (Years)
Indebtedness Maturity
US$ 2.16 Billion Total Debt 2Q12 Total Cash 2Q12 US$ 2.45 Billion
85%74%
13%26%
87% 74%78%
15%26%
22%
5.0
4.54.8
4.2
6.1
2Q11 3Q11 4Q11 1Q12 2Q12
406
193
446
302 290
2Q11 3Q11 4Q11 1Q12 2Q12
Net Cash
US$ Million
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2012 Outlook
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EBIT
EBIT margin
2012 Outlook Revision
EBITDA
EBITDA margin
US$ 670 – 780 Million
11.5% – 12.5%
8.0% – 8.5%
US$ 460 – 530 Million
9.0% – 9.5%
US$ 520 – 590 Million
US$ 720 – 840 Million
12.5% – 13.5%
Current Outlook New Outlook
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Investor Relations
Phone: +55 12 3927 4404 [email protected]
www.embraer.com