Embraer 4q15 Results Final v2

8/17/2019 Embraer 4q15 Results Final v2

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This information is property of Embraer and can not be used or reproduced without written permission.

4Q15 & FY 2015

EARNINGS RESULTSMARCH 3rd, 2016


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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 projectionsabout 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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FINANCIAL HIGHLIGHTS

3

BACKLOG OF US$ 22.5 BILLION.

FREE CASH FLOW GENERATION OF US$ 178 MILLION.NET CASH POSITION OF US$ 7.2 MILLION.

REVENUES OF US$ 5,928 MILLION.

PROVISION FOR REPUBLIC CHAPTER 11 OF US$ 101 MILLION.

EBIT OF US$ 332 MILLION AND 5.6% MARGIN (EX. REPUBLIC US$ 432 MILLION AND 7.3%).

NET INCOME AND EPADS OF US$ 69 MILLION AND US$ 0.38.


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HIGHLIGHTS

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DELIVERY OF 101 E-JETS AND NET FIRM ORDERS OF 155 IN 2015.

BOOK-TO-BILL OF 1.5 X IN 2015.

9 NEW E-JETS OPERATORS IN 2015.

ACCUMULATED NET FIRM ORDERS OF 1,704 E-JETS.

ROLLOUT OF THE FIRST E190-E2.


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HIGHLIGHTS 4Q15

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DELIVERY OF 33 E-JETS IN 4Q15.

DELIVERY OF THE 1,200TH E-JET TO AZUL.

SKYWEST ORDER FOR 19 E175s (FLY FOR DELTA AIRLINES).

KLM CITYHOPPER CONFIRMED OPTIONS FOR TWO E175s.

NEW E2 ENGINES STARTED FLIGHT TEST PROGRAM SUCCESSFULLY.


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HIGHLIGHTS

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DELIVERY OF 120 EXECUTIVE JETS (82 LIGHT AND 38 LARGE) IN 2015.

BOOK-TO-BILL OF 1.1 X IN 2015.

PHENOM 300: MOST DELIVERED EXECUTIVE JET FOR THE THIRD CONSECUTIVE YEAR.

CERTIFICATION AND ENTRY INTO SERVICE OF LEGACY 450 MID-LIGHT EXECUTIVE JET.


7/28This information is property of Embraer and can not be used or reproduced without written permission.7

HIGHLIGHTS 4Q15

DELIVERY OF 45 EXECUTIVE JETS (25 LIGHT AND 20 LARGE) IN 4Q15.

EMIRATES FLIGHT TRAINING ACADEMY ORDER FOR UP TO 10 PHENOM 100E.

DELIVERY OF 2 LINEAGE 1000 IN THE US MARKET.

LEGACY 450 ENTRY INTO SERVICE WITH FIRST THREE DELIVERIES.


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HIGHLIGHTS

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FIRST FLIGHT OF KC-390 IN FEBRUARY 2015.

KC-390 FIGHT TEST CAMPAIGN: 100+ HOURS (2ND PROTOTYPE TO FLY IN 1Q16).

DELIVERY OF 15 OUT OF 20 SUPER TUCANOS TO THE USAF (11 IN 2015).

F-39 GRIPEN PROGRAM BECAME EFFECTIVE (INITIAL WORKS IN SWEDEN/BRAZIL).

SISFRON PROJECT FINISHED 2015 WITH MORE THAN 50% EXECUTION.


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HIGHLIGHTS 4Q15

LEBANESE AIR FORCE ACQUIRED SIX A-29 SUPER TUCANO.

ATECH COMPLETED FIRST PHASE OF AIR TRAFFIC MANAGEMENT SYSTEM IN INDIA.

BRAZILIAN GEOSTATIONARY SATELLITE BEGAN INTEGRATION AND TESTING PHASE.

PHENOM 100 SELECTED TO TRAIN AIRCREW IN THE UK ARMED FORCES (FEB. 2016).



FINANCIAL RESULTS



15.412.4

18.220.9 22.5

2011 2012 2013 2014 2015

FIRM ORDER BACKLOG

11

COMMERCIALAVIATION DEFENSE& SECURITY

EXECUTIVEJETS

US$ BILLION



16 22 29 24

38

83 7790 92

82

2011 2012 2013 2014 2015

105 10690 92

101

2011 2012 2013 2014 2015

LARGE JETS - LEGACY & LINEAGELIGHT JETS - PHENOM

AIRCRAFT DELIVERIES

95 - 100 E-JETS

35 - 40 EXECUTIVE LARGE JETS

80 - 90 EXECUTIVE LIGHT JETS

12

99 99

120116119

2015 OUTLOOK:



NET REVENUES

2015 OUTLOOK: US$ 5.8 – 6.3 BILLION

13

5,791 6,167 6,235 6,289 5,928

2011 2012 2013 2014 2015

US$ MILLION



29%

48%

65%

22%

14%

11%21%

21%

12%8%

3%2%

6%4%

4%9% 4% 4%5% 6% 2%

2013 2014 2015

53% 50% 56%

27%26%

30%

19% 23%13%

1% 1% 1%

2013 2014 2015

NET REVENUES BREAKDOWN

SEGMENT REGION

OTHERS

Net Revenues

US$ Billion6.24 6.29 5.93

Net Revenues

US$ Billion6.24 6.29 5.93

NORTH AMERICA BRAZIL

EUROPE

ASIA PACIFIC

SOUTH & CENTRAL

AMERICA AFRICA &

MIDDLE EAST

CHINA

14



975

662

883688

1,115

4Q14 1Q15 2Q15 3Q15 4Q15

359

213 216 182 200

4Q14 1Q15 2Q15 3Q15 4Q15

690

167

404 402

746

4Q14 1Q15 2Q15 3Q15 4Q15

2,045

1,056

1,5131,285

2,074

4Q14 1Q15 2Q15 3Q15 4Q15

NET REVENUES BY SEGMENT

OUTLOOK: US$ 1.70 – 1.85 BILLION OUTLOOK: US$ 0.80 – 0.95 BILLION

OUTLOOK: US$ 3.20 – 3.40 BILLIONOUTLOOK: US$ 5.80 – 6.30 BILLION

2015: 5.93 BILLION 2015: 3.35 BILLION

2015: 1.72 BILLION 2015: 0.81 BILLION

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SELLING EXPENSESG&A EXPENSES EXPENSES / NET REVENUES

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SG&A EXPENSES

419 480 454 420

362

261

279211

208

182

12% 12% 11% 10% 9%

2011 2012 2013 2014 2015

US$ MILLION

544

628665

759

680


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289248

308 278373

141 124

143

152

191

4Q14 1Q15 2Q15 3Q15 4Q15

11386

10078

97

55

43

47

43

50

4Q14 1Q15 2Q15 3Q15 4Q15

430

564

430 451

372

SELLING EXPENSESG&A EXPENSES

147

121129

168

147

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SG&A EXPENSES

US$ MILLION R$ MILLION 2015: 1,8162015: 544


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432

2015 OUTLOOK: US$ 490 – 560 MILLION | 8.5% – 9.0%

EBIT EBIT MARGIN EXCLUDING AMR EFFECT

18

318

612

713

543

332

5.5%

9.9% 11.4%8.6%

5.6%

2011 2012 2013 2014 2015

9.1%

566

INCOME FROM OPERATIONS (EBIT)US$ MILLION

7.3%

EXCLUDING REPUBLIC EFFECT


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749

557

891

1,004

830648

9.6%

14.4%16.1%

13.2%

10.9%

2011 2012 2013 2014 2015

13.8%

EBITDA EBITDA MARGIN

857

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EBITDAUS$ MILLION

2015 OUTLOOK: US$ 730 – 860 MILLION | 12.6% – 13.6%

EXCLUDING AMR EFFECT EXCLUDING REPUBLIC EFFECT

12.8%


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112

348 342 335

69

1.9%

5.6% 5.5% 5.3%

1.2%

2011 2012 2013 2014 2015

NET MARGINNET INCOME

20

NET INCOMEUS$ MILLION

4.6%

272

ADJUSTED NET INCOME

67

REPUBLIC EFFECT


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EPADS AND PAY OUT

EPADS PAY OUT

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US$

1.49

ADJUSTED EPADS

0.62

1.92 1.88 1.82

0.38

116%

26% 26% 27%49%

2011 2012 2013 2014 2015


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INVESTMENTS

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US$ MILLION

2015 OUTLOOK: US$ 650 MILLION

42

288

188

50

300 300

RESEARCH DEVELOPMENT CAPEX

2015: 518


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4Q14 1Q15 2Q15 3Q15 4Q15 2015NET CASH GENERATED (USED) BY OPERATING ACTIVITIES* 507 (291) 245 70 872 895

NET ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (87) (57) (74) (76) (83) (290)

ADDITIONS TO INTANGIBLE ASSETS (132) (91) (98) (110) (129) (428)

FREE CASH FLOW 288 (440) 73 (115) 660 178

2015: 178

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FREE CASH FLOWUS$ MILLION

2015 OUTLOOK: FCF > (US$ 100) MILLION

FREE CASH FLOW ACCUMULATED 2015

288

(440)

73(115)

660

(440)(367)

(482)

178

4Q14 1Q15 2Q15 3Q15 4Q15


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(39)

(535) (465)

(644)

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4Q14 1Q15 2Q15 3Q15 4Q15

96%89% 90% 91% 94%

4% 11% 10% 9% 6%

5.4 5.3

6.5 6.56.2

4Q14 1Q15 2Q15 3Q15 4Q15

INDEBTEDNESS PROFILE | NET CASH

INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION

LONG-TERM SHORT-TERM

LOANS AVERAGE MATURITY (YEARS)

TOTAL DEBT 4Q15: US$ 3.530 BILLION TOTAL CASH 4Q15: US$ 3.538 BILLION

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2016 OUTLOOK


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NET REVENUES US$ 6.00 –

6.40 BILLION

2016 CONSOLIDATED OUTLOOK

12% OF NET REVENUES US$ 0.70 – 0.75 BILLION

1% OF NET REVENUES US$ 100 MILLION

30% OF NET REVENUES US$ 1.75 – 1.90 BILLION

57% OF NET REVENUES US$ 3.45 –

3.65 BILLION

DELIVERIES 105 TO 110 E-JETS

OTHER REVENUES

75 TO 85 LIGHT JETS40 TO 50 LARGE JETS

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DELIVERIES


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EBITDA MARGIN 13.3% – 13.7%

EBITDA US$ 800 – 870 MILLION

EBIT MARGIN 8.0% – 8.5%

EBIT US$ 480 – 545 MILLION

FCF > (US$ 100) MILLION

2016 CONSOLIDATED OUTLOOK

RESEARCH US$ 50 MILLION

DEVELOPMENT US$ 325 MILLION

CAPEX US$ 275 MILLION

INVESTMENTS US$ 650 MILLION

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FCF USE OF LESS THAN US$ 100 MILLION


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+55 12 3927 4404 | [email protected] | www.embraer.com

Embraer 4q15 Results Final v2

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