2007 - First Quarter 2007 Results

22
May 15, 2007 First Quarter 2007 Results

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Transcript of 2007 - First Quarter 2007 Results

Page 1: 2007 - First Quarter 2007 Results

May 15, 2007

First Quarter 2007 Results

Page 2: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

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.

Page 3: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

First Quarter 2007 - Summary

• Due to difficulties with the supply chain 25 jets were delivered in 1Q07 compared to 27 aircraft in 1Q06

• Revenues benefited by the product mix –Net revenues up 4.3%.

• Gross margin negatively affected by:- US$12.9 million non-recurrent adjustment in work-in-progress inventories;

- longer production lead time and

- higher labor costs including those related to overtime work

27

36

30

37

25

1Q06 2Q06 3Q06 4Q06 1Q07

843

1,084

8941,021

808

28.7%

25.7%27.5%

28.3%28.2%

1Q06 2Q06 3Q06 4Q06 1Q07

Jet Deliveries

Net revenues – Gross Margin

Page 4: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

• Backlog reached record high of US$15.0 billion

• 11 firm orders for E-Jets announced – M1 travel Ltd and AlpiEagles joined the customer base. Option confirmation from Virgin Blue

• Firm orders for the Phenom 100 and Phenom 300 are nearing 400 units

First Quarter 2007 - Summary

Firm Order Backlog (US$ Billion)

10.4 10.2

13.315.014.8

1Q06 2Q06 3Q06 4Q06 1Q07

Page 5: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Labor:

• 2,000 employees hired since January 2007;

• By June 2007 – a total of 3,500 new employees dedicated to the production;

• Third shift to be fully implemented by the 3Q07.

Industrial capabilities:

• Assembly jigs added to the wing assembly and fuselage sections;

• Intensified approach with sub-contracted suppliers;

First Quarter 2007 - Summary

Actions taken towards...

...increasing the production to deliver 165 / 170 jets

Page 6: 2007 - First Quarter 2007 Results

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Results & Performance

Page 7: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Jet Deliveries

27

36

30

37

25

1Q06 2Q06 3Q06 4Q06 1Q07

Page 8: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

US$ million

Net Revenues and Gross Margin

843

1,084

8941,021

808

28.7%

25.7%27.5%

28.3%28.2%

1Q06 2Q06 3Q06 4Q06 1Q07

Page 9: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Net Revenue by Segment

1Q06 1Q07

Defense and

Government 10%

Executive

Aviation 11%

Commercial

Aviation 62%

Customer

Services and Others 17%

Commercial

Aviation65%

Defense and

Government 5%

Executive

Aviation14%

Customer

Services and Others16%

Page 10: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

EBITDA

62

151

7585 23

14,8%

7,6%8,3%

7,8%

2,7%

1Q06 2Q06 3Q06 4Q06 1Q07

Ebitda Ebitda Margin

Page 11: 2007 - First Quarter 2007 Results

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Net Income

US$ Million

65

139

61

124

26

3.1%

11.5%

6.9%8.1%

13.6%

1Q06 2Q06 3Q06 4Q06 1Q07

Net Income Net Margin

Page 12: 2007 - First Quarter 2007 Results

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Aircraft Financing Support

US$ Million

215.9174.4 164

217.4 223.4

135.5139.6

32.4

1Q06 2Q06 3Q06 4Q06 1Q07

CCF Acc Rec

Page 13: 2007 - First Quarter 2007 Results

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US$ Million

Inventories

1,648 1,6391,882

2,0472,317

1Q06 2Q06 3Q06 4Q06 1Q07

Page 14: 2007 - First Quarter 2007 Results

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US$ Million

Net Cash (Debt) Position

302

527 507

416

217

1Q06 2Q06 3Q06 4Q06 1Q07

Page 15: 2007 - First Quarter 2007 Results

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Total Debt of US$ 1,224.3 Million

• Average cost in R$ = 7.1%p/a

• Average cost in US$ =Libor + 1.69% p/a

Loans

Long-Term Loan Average Maturity: 4 years and 9 months

Short Term 36%

Long Term 64%

Brazilian Currency

21%

Foreign Currency

79%

Page 16: 2007 - First Quarter 2007 Results

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Loans Maturity

US$ million

4 4 6

9 1

9 93 3

4 9 1

1, 2 2 4 6 4

Total Short-term

2008 2009 2010 2011 after2011

Page 17: 2007 - First Quarter 2007 Results

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Backlog and Delivery Forecast

Page 18: 2007 - First Quarter 2007 Results

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ERJ 145 Family Order Book

(1st Quarter 2007)

53

53

-

-

FirmBacklog

8611,046132914Total

679864132732ERJ 145

7474-74ERJ 140

108108-108ERJ 135

DeliveriesTotalOptionsFirm Orders

Page 19: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

EMBRAER 170/190 Family Order Book

395955144EMBRAER 195

401

262

70

30

Firm

Backlog

2291,188558630Total

65546241327EMBRAER 190

2923513699EMBRAER 175

130290130160EMBRAER 170

DeliveriesTotalOptionsFirm Orders

(1st Quarter 2007)

Page 20: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Backlog

US$ Billion

10.213.3 14.8 15.0

15.3 15.914.9

18.2 18.2

10.4

1Q06 2Q06 3Q06 4Q06 1Q07

Firm Options

Page 21: 2007 - First Quarter 2007 Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

Jet Deliveries Forecast

160 161

131

101

148 141130

195/205

165/170

2000 2001 2002 2003 2004 2005 2006 2007E 2008E*

Page 22: 2007 - First Quarter 2007 Results

Investor RelationsPhone: + 5512 [email protected]