embraer 4 q14_results_final (8)
TRANSCRIPT
This information is property of Embraer and can not be used or reproduced without written permission.
4Q14 & FY 2014 EARNINGS RESULTS
MARCH 5th, 2015
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
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HIGHLIGHTS
CELEBRATION OF 45TH ANNIVERSARY ON AUGUST 19TH.
LISTED FOR THE 5TH CONSECUTIVE YEAR ON THE DJSI AND ALSO ON THE ISE.
WINNER OF THE NATIONAL BRAZILIAN QUALITY AWARD (PNQ), PRESENTED BY THE NATIONAL QUALITY FOUNDATION (FNQ).
AWARDED AND RECOGNIZED AS ONE OF THE BEST COMPANIES IN BRAZIL AND ABROAD IN SEVERAL CATEGORIES.
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HIGHLIGHTS 4Q14
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DELIVERY OF 30 E-JETS.
1,100TH E-JET PRODUCTION AIRCRAFT DELIVERED TO AEROMEXICO AIRLINES.
SKYWEST ORDER FOR SEVEN E175 JETS.
FIRST METAL CUT OF THE E-JETS E2.
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HIGHLIGHTS
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DELIVERY OF 92 E-JETS IN 2014.
258 E-JETS (E1&E2) SOLD AND COMMITMENTS IN 2014.
590 E-JETS E2 COMMITMENTS.
1,549 ORDERS WITH A CUSTOMER BASE OF 65 AIRLINES IN 45 COUNTRIES.
LEADERSHIP IN THE COMMERCIAL JETS SEGMENT FROM 70 TO 130 SEATS.
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HIGHLIGHTS 4Q14
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DELIVERY OF 52 EXECUTIVE JETS (38 LIGHT AND 14 LARGE JETS).
CONVERSION OF 10 PHENOM 300 OPTIONS INTO FIRM ORDERS FROM NETJETS.
DELIVERY OF THE FIRST THREE LEGACY 500s.
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HIGHLIGHTS
7
DELIVERY OF 116 EXECUTIVE JETS (92 LIGHT AND 24 LARGE JETS) IN 2014.
LEGACY 500 CERTIFIED IN BRAZIL, US, EUROPE AND AUSTRALIA.
PHENOM 300 WAS THE MOST DELIVERED EXECUTIVE JET FOR THE SECOND CONSECUTIVE YEAR (73 UNITS).
FIRST PLACE IN CUSTOMER SUPPORT IN THE ANNUAL SURVEY BY AIN MAGAZINE.
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HIGHLIGHTS 4Q14
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28 KC-390 SOLD TO THE BRAZILIAN AIR FORCE.
MOU WITH SAAB FOR BRAZIL´S F-X2 PROJECT.
DELIVERY OF THE FIRST FOUR A-29 SUPER TUCANOs TO THE U.S. AIR FORCE.
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HIGHLIGHTS
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DEFENSE & SECURITY REVENUES OF US$ 1.5 BILLION.
FIRST FLIGHT OF EMBRAER KC-390.
SISFRON PROJECT’S OPERATIONS INAUGURATION.
CONTRACTS WITH THE BRAZILIAN GOVERNMENT TO SUPPLY RADARS AND OPERATION CENTER UNITS.
CRITICAL DESIGN REVIEW OF THE BRAZILIAN GEOSTATIONARY SATELLITE.
NEW ATM SYSTEMS FOR BRAZILIAN AND INDIAN GOVERNMENT.
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FINANCIAL RESULTS
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FIRM ORDER BACKLOG
US$ BILLION
18.2 19.2 18.1
22.1 20.9
4Q13 1Q14 2Q14 3Q14 4Q14
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COMMERCIAL AVIATION
DEFENSE & SECURITY
EXECUTIVE AVIATION
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AIRCRAFT DELIVERIES
LARGE JETS - LEGACY & LINEAGE LIGHT JETS - PHENOM
2014 DELIVERIES OUTLOOK • 92 - 97 E-JETS • 25 - 30 EXECUTIVE LARGE JETS • 80 - 90 EXECUTIVE LIGHT JETS
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101 105 10690 92
2010 2011 2012 2013 2014
19 16 22 29 24
126
83 77 90 92
2010 2011 2012 2013 2014
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NET REVENUES
2014 OUTLOOK: US$ 6.0 – 6.5 BILLION
5,3645,791 6,167 6,235 6,289
2010 2011 2012 2013 2014
US$ MILLION
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24% 29%
48%
31% 22%
14%
14% 21%
21%3%8%
3%14%
6%4%5% 9% 4%
9% 5% 6%
2012 2013 2014
61%53% 50%
21%27%
26%
17% 19% 23%
1% 1% 1%
2012 2013 2014
REVENUES BREAKDOWN
NET REVENUES BY SEGMENT NET REVENUES BY REGION
COMMERCIAL AVIATION
EXECUTIVE AVIATION OTHERS
DEFENSE & SECURITY
Revenues US$ Billion 6.17 6.24 6.29
Revenues US$ Billion 6.17 6.24 6.29
NORTH AMERICA BRAZIL
EUROPE
ASIA PACIFIC
SOUTH & CENTRAL
AMERICA AFRICA &
MIDDLE EAST
CHINA
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US$ MILLION R$ MILLION
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NET REVENUES
5,296
2,929
3,929
2,827
5,251
4Q13 1Q14 2Q14 3Q14 4Q14
2,304
1,242
1,761
1,240
2,046
4Q13 1Q14 2Q14 3Q14 4Q14
2014: 14,936 2014: 6,289
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US$ MILLION
SG&A EXPENSES
SELLING EXPENSES G&A EXPENSES EXPENSES / NET REVENUES
374 419480 454 420
198
261
279211
208
11% 12% 12% 11% 10%
2010 2011 2012 2013 2014
This information is property of Embraer and can not be used or reproduced without written permission.
258219
257226
289
120
113
118118
141
4Q13 1Q14 2Q14 3Q14 4Q14
344
430
378 375
332
SELLING EXPENSES G&A EXPENSES
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SG&A EXPENSES
US$ MILLION R$ MILLION
11392
11599
113
52
48
5352
55
4Q13 1Q14 2Q14 3Q14 4Q14
168 151
140
165 168
2014: 1,481 2014: 627
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392318
612713
543
7.3%5.5%
9.9%11.4%
8.6%
2010 2011 2012 2013 2014
9.1%
2014 OUTLOOK: EBIT: US$ 540 – 620 MILLION EBIT MARGIN: 9.0% – 9.5%
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INCOME FROM OPERATIONS (EBIT)
US$ MILLION
EBIT EBIT MARGIN
566
EXCLUDING AMR EFFECT
713
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1,068
215417
157
515
20.2%
7.4%10.6%
5.6%
9.8%
4Q13 1Q14 2Q14 3Q14 4Q14
463
92 187
68
196
20.1%
7.4%10.6%
5.5%
9.6%
4Q13 1Q14 2Q14 3Q14 4Q14
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INCOME FROM OPERATIONS (EBIT)
US$ MILLION R$ MILLION
EBIT EBIT MARGIN
2014: 1,304 | 8.7% 2014: 543 | 8.6%
316 723
13.7%
EXCLUDING AMR EFFECT
13.7%
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13.8%
2014 OUTLOOK: EBITDA: US$ 780 – 910 MILLION EBITDA MARGIN: 13.0% – 14.0%
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EBITDA
US$ MILLION
EBITDA EBITDA MARGIN
611 557
8911,004
830
11.4%9.6%
14.4%16.1%
13.2%
2010 2011 2012 2013 2014
EXCLUDING AMR EFFECT
1,004
857
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544
151261
136
281
23.6%
12.2%14.8%
11.0%13.8%
4Q13 1Q14 2Q14 3Q14 4Q14
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EBITDA
US$ MILLION R$ MILLION
EBITDA EBITDA MARGIN
2014: 1,981 | 13.3% 2014: 830 | 13.2%
1,253
355583
311
732
23.7%
12.1%14.8%
11.0%13.9%
4Q13 1Q14 2Q14 3Q14 4Q14
EXCLUDING AMR EFFECT
17.3% 17.2%
397 909
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NET INCOME
US$ MILLION
NET MARGIN NET INCOME
330
112
348 342 335
6.2%
1.9%
5.6% 5.5% 5.3%
2010 2011 2012 2013 2014
This information is property of Embraer and can not be used or reproduced without written permission. 23
NET INCOME
US$ MILLION R$ MILLION
NET MARGIN NET INCOME
2014: 796 | 5.3% 2014: 335 | 5.3%
607
259 320
(24)
242
11.5%8.8% 8.1%
-0.9%
4.6%
4T13 1T14 2T14 3T14 4T14
265
111 143
(11)
91
11.5%8.9% 8.1%
-0.9%
4.5%
4Q13 1Q14 2Q14 3Q14 4Q14
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EPADS & PAY OUT
US$
PAY OUT EPADS
1.83
0.62
1.92 1.88 1.82
34%
116%
26% 26% 27%
2010 2011 2012 2013 2014
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INVENTORIES
US$ MILLION
2,1982,288
2,1572,287
2,405
2010 2011 2012 2013 2014
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47
230
153
80
320
250
RESEARCH DEVELOPMENT CAPEX
2014 OUTLOOK: US$ 650 MILLION
2014 OUTLOOK 2014
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INVESTMENTS
US$ MILLION 2014: 430
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4Q13 1Q14 2Q14 3Q14 4Q14 2014
NET CASH GENERATED (USED) BY OPERATING ACTIVITIES* 761 (273) 13 49 507 296
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (156) (48) (60) (89) (87) (284)
ADDITIONS TO INTANGIBLE ASSETS (109) (83) (103) (97) (132) (415)
FREE CASH FLOW 496 (404) (150) (138) 288 (404)
761
(273)
13 49
507
(156)
(48)
(60) (89) (87)
(109)
(83)
(103) (97) (132)
496
(404)
(150) (138)
288
4Q13 1Q14 2Q14 3Q14 4Q14
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FREE CASH FLOW
* Net of Financial assets adjustment
US$ MILLION 2014: (404)
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96% 96% 96% 96% 96%
4% 4% 4% 4% 4%
6.25.9 5.7 5.6 5.4
4Q13 1Q14 2Q14 3Q14 4Q14
INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION
LONG-TERM SHORT-TERM LOANS AVERAGE MATURITY (YEARS)
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INDEBTEDNESS PROFILE | NET CASH
TOTAL DEBT 4Q14: US$ 2.51 BILLION TOTAL CASH 4Q14: US$ 2.42 BILLION
429
53
(114)
(327)
(85)
4Q13 1Q14 2Q14 3Q14 4Q14
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2015 OUTLOOK
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EBITDA MARGIN 12.0% – 13.0%
NET REVENUES
EBITDA
US$ 6.1 – 6.6 BILLION
US$ 730 – 860 MILLION
EBIT MARGIN 8.0% – 8.5%
EBIT US$ 490 – 560 MILLION
FCF > (US$ 100) MILLION*
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2015 CONSOLIDATED OUTLOOK
* FCF USE OF LESS THAN US$ 100 MILLION.
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2015 BUSINESS UNITS OUTLOOK
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18% OF NET REVENUES
2% OF NET REVENUES
28% OF NET REVENUES
52% OF NET REVENUES
DELIVERIES: 95 TO 100 E-JETS
US$ 100 MILLION
US$ 1.70 – 1.85 BILLION
US$ 1.10 – 1.25 BILLION
OTHER REVENUES
US$ 3.20 – 3.40 BILLION
DELIVERIES: 80 TO 90 LIGHT JETS 35 TO 40 LARGE JETS
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TOTAL INVESTMENTS: US$ 650 MILLION
RESEARCH US$ 50 MILLION
DEVELOPMENT US$ 300 MILLION
CAPEX US$ 300 MILLION
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2015 INVESTMENT OUTLOOK
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