Embraer 4 q10 results_final
-
Upload
embraer-ri -
Category
Documents
-
view
594 -
download
2
description
Transcript of Embraer 4 q10 results_final
March 25th, 2010
FY2010 Earnings Results and
2011 Outlook
3
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.
4
2010 Highlights
• Strong extension in executive jet market, reaching 19% market share.
• 145 jets delivered (19 large jets and 126 light jets).
• Landmark order from NetJets.
• Legacy 650 certified on time.
• Sustainable grow in defense and security.
• New dedicated corporate unit.
• LOIs for up to 60 KC-390 from Brazil, Chile, Colombia,
Portugal, Czech Republic and Argentina.
• Sale of 8 Super Tucano to Indonesia. First in Asia Pacific.
All 2010 guidance and projections achieved or surpassed.
EPS of R$ 0.7926 and EPADS of US$ 1.8252.
• Commercial aviation: Book to bill close to one.
97 orders and 101 deliveries.
• Continuous expansion of customers base: 58 in 39 countries.
• 700º E-Jet delivered (British Airways).
Guid
ance
Achie
ved
Guid
ance
Achie
ved
5
10th anniversaries: NYSE Euronext listing.
Presence in China, Singapore and GPX.
Embraer elected for the 2nd consecutive year, one of
the best companies to work for in Brazil.
2010 Highlights
Embraer selected as Gold Class on the DJSI and also on the ISE.
Company’s name changed to EMBRAER S.A. and business scope expanded.
6
Net Revenue
US$ Million
Guidance 2010: Net Revenue - US$ 5.25 billion
3,760
5,245
6,3355,498 5,364
2006 2007 2008 2009 2010* *
2008: US GAAP
2009-2010: IFRS*
103
133
165
125
27 36 3721 19
98
126101
2
2006 2007 2008 2009 2010
7
Executive Large Jets*
Aircraft Deliveries
Executive Light Jets**Commercial Jets
2010 deliveries estimates • 90 commercial jets
• 17 executive large jets*
• 120 executive light jets**
Legacy e Lineage
Phenom*
**
21%
30%
49%
8
Firm Order Backlog
Firm Order Backlog Backlog/Revenue (Years)
US$ Billion
14.818.8
20.916.6 15.6
2.8 3.03.8
3.2 3.0
2006 2007 2008 2009 2010Commercial aviation
Executive aviation
Defense and security
9
Revenue Breakdown
Revenue by Segment Revenue by Region
Commercial aviation
Executive aviation
Others
Aviation services
Defense and security North America
Brazil
Europe
Asia Pacific
Latin AmericaOthers
67% 62%53%
14%16%
21%
8% 9% 13%
9% 11% 11%2% 2%2%
2008 2009 2010
6.33 5.49 5.36
Net Revenue
US$ Billion*6.33 5.49 5.36
2008: US GAAP
2009-2010: IFRS*
43%
22%13%
18%
33%
33%
10%7%
15%
4%11% 13%
18% 21% 22%
7% 6% 4%
2008 2009 2010
Financial Results
1,967
1,0431,354
990
1,610
4Q09 1Q10 2Q10 3Q10 4Q10
11
Net Revenues and Gross Margin
IFRS - US$ Million US GAAP - US$ Million
Net Revenues Gross Margin
2009
2010
5,466
5,355
20.4%
20.4%
Guidance
Achieved
Guidance
Achieved
Net Revenues Gross Margin
2009
2010
5,498
5,364
19.5%
19.1%
1,0441,358
1,630
992
1,970
4Q09 1Q10 2Q10 3Q10 4Q10
93 86 94 89
55
35
49 53
61
106
4Q09 1Q10 2Q10 3Q10 4Q10
92 86 94 91
55
35
49 53
61
103
4Q09 1Q10 2Q10 3Q10 4Q10
12
SG&A Expenses
Selling ExpensesG&A Expenses
144
164
142
167
121
143
121
143
IFRS - US$ Million US GAAP - US$ Million
2009
2010
2009
2010
Selling ExpensesG&A Expenses
191
198
305
374
192
198
305
375
148 147
13
Income from Operations
EBIT EBIT Margin
IFRS - US$ Million US GAAP - US$ Million
2009
2010
2009
2010
379
392
6.9%
7.3%
336
393
6.1%
7.3%
EBIT EBIT Margin
Guidance
Achieved
Guidance
Achieved
71
122
66
39
132
6.4% 6.7%9.0%7.2%
2.4%
4Q09 1Q10 2Q10 3Q10 4Q10
66 57
126
63
147
7.5%
6.0%9.3%
5.8%4.1%
4Q09 1Q10 2Q10 3Q10 4Q10
14
EBITDA
EBITDA EBITDA Margin
IFRS - US$ Million US GAAP - US$ Million
2009
2010
2009
2010
609
611
10.0%
11.4%
422
458
7.7%
8.6%
EBITDA EBITDA Margin
Achieved
Achieved
89 80
139
80
159
8.1%
10.2%7.7%
8.1%
5.6%
4Q09 1Q10 2Q10 3Q10 4Q10
105 117
166
131
197
6.4%
12.2%11.8%
12.5% 10.0%
4Q09 1Q10 2Q10 3Q10 4Q10
15
Net Margin
Net Income
Net Income
IFRS - US$ Million US GAAP - US$ Million
2009
2010
2009
2010
465
330
8.5%
6.2%
249
347
4.5%
6.5%
Net MarginNet Income
143
99
70
35
146
7.3%
9.4%
5.2%
3.6%
9.1%
4Q09 1Q10 2Q10 3Q10 4Q10
95
24
57
126 123
4.2% 6.2%5.8%
12.1%
2.4%
4Q09 1Q10 2Q10 3Q10 4Q10
16
EPADS and Dividend Yield
Dividend YieldEPADS
2006-2008: US GAAP
2009-2010: IFRS*
2.11
2.64
1.83
2.572.14
2.23%1.97%
2.91%4.34%
3.28%
2006 2007 2008 2009* 2010*
17
Free Cash Flow
IFRS and US GAAP - US$ Million
2009
2010
31
287
383
(60)
193
(66)
220
4Q09 1Q10 2Q10 3Q10 4Q10
18
Indebtedness Profile Net Cash
Total Debt 4Q10: US$ 1.43 Billion
Long-term Short-term
Loans Average Maturity (Years)
Indebtedness Maturity
Total Cash 4Q10: US$ 2.13 Billion
Net Cash
488 444
652 618692
4Q09 1Q10 2Q10 3Q10 4Q10
78%
94%
29% 26%
95%
71%74%
5%6%
22%
6.36.15.8
4.9 5.0
4Q09 1Q10 2Q10 3Q10 4Q10
2011 Outlook
0.05 0.15
0.10
0.40
0.7 14%
0.6 11%
1.2 20%
3.1 55%
20
Net Revenues US$ 5.36 billion US$ 5.60 billion~5%
Commercial aviation
Executive aviation Aviation services and others
Defense and security
US$ Billion
2011 Outlook - IFRS
2011 Outlook2010 Results
21
US$ 611 millionEBITDA
EBITDA Margin 11% 11%
US$ 610 million
7.5%
US$ 420 million~7%US$ 392 millionEBIT
EBIT Margin 7.3% ~3%
2011 Outlook - IFRS
2011 Outlook2010 Results
22
* Product development costs are differed and amortized upon aircraft delivery.
** 2010 result and 2011 estimate in IFRS.
2011 Outlook - IFRS
2011 Outlook2010 Results
US$ Million
CAPEX
R&D
Investment / Revenue197
144 151
30091
235
104 74
200
113
260
209
5%
7%
9%9%
4%5%
2006 2007 2008 2009 2010** 2011E**
Research
Development *
US$ 72 million
US$ 79 million US$ 210 million
US$ 90 million
CAPEX US$ 74 million US$ 200 million
23