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FOURTH QUARTER & FY 2012 EARNINGS RESULTS March 13, 2013
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FOURTH QUARTER & FY 2012EARNINGS RESULTS
March 13, 2013
Forward-Looking Statements
This presentation may contain forward-looking statements, projections and estimates regarding circumstances or
events yet to take place, including, but not limited to, those statements relating to guidance. These forward-looking
statements are based largely on current expectations, forecasts of future events and industry and financial trends
that affect Embraer’s businesses. These statements are subject to risks, uncertainties and assumptions that include,
among others: general economic, political and trade conditions, both in Brazil and in those markets where Embraer
does business; management’s expectations and estimates concerning the company’s future financial performance;
plans and objectives of our management; financing plans and programs, and the effects of competition; industry
trends and growth opportunities; inflation and fluctuations in exchange rates; the company’s investment plans;
Embraer’s operating efficiencies and synergies and its capacity to develop and deliver products on the dates
previously agreed upon; results of operation; business strategies; benefits of new technologies and existing and
future governmental regulations. To obtain further information on factors that may lead to results different from
those forecast by Embraer, please consult the reports Embraer files with the U.S. Securities and Exchange Commission
(SEC) and the Brazilian Comissão de Valores Mobiliários (CVM) and in particular the factors discussed under
“Forward-Looking Statements” and “Risk Factors” in Embraer’s annual report on Form 20−F. The words “believe”,
“may”, “will”, “estimate”, “intend”, “continue”, “anticipate”, “expect” and other similar terms are intended to identify
forward-looking statements. Embraer does not undertake any obligation to publish updates or to revise any forward-
looking statements due to new information, future events or any other factors. In view of the inherent risks and
uncertainties, such estimates, events and circumstances may not occur. The actual results and performance of
Embraer could therefore differ substantially from those anticipated in Embraer's forward-looking statements.
2
• Embraer was elected for the 4th consecutive year as
one of the best companies to work for and the best
company in people management in Brazil.
• Operational performance surpassed 2012 outlook.
3
Corporate Highlights
• Embraer wins FINEP Innovation Award
for the 2nd consecutive year.
• Embraer was chosen again as one of the most
transparent companies in Brazil in 2012.
4
Corporate Highlights
• Embraer opened an Engineering Center in Belo Horizonte
and broke ground for another in Melbourne, Florida.
• Embraer opened two new Centers
of Excellence in Évora, Portugal.
• Embraer listed for the 3rd consecutive year on the
Dow Jones Sustainability Index.
• Embraer Education and Research Institute inaugurated in the
city of Botucatu, a new unit of the Embraer High School.
• Delivery of 106 E-Jets in 2012 (23 in 4Q12), reaching 908 total deliveries since EIS.
• 56 new E-Jets were sold in 2012, reaching 1,093 aircraft
and a customer base of 62 airlines in 42 countries.
5
Highlights
• Embraer welcomed seven new E-Jets operators in 2012: Bulgaria Air, Estonian,
Belavia, Conviasa, Myanma Airways, TUI Travel – Jetairfly and FLYNONSTOP.
• E-Jets Second Generation suppliers selection: Pratt &
Whitney’s PurePower engines and Honeywell avionics.
6
Highlights
• Delivery of the 900th E-Jet to Kenya Airways.
• Republic Airways signed a contract for 47 E175 Jets + 47 options.
Aldus Aviation also signed a contract for 20 E-Jets + 15 options.
• Legacy 500 first flight.
• Delivery of 99 executive jets in 2012 (77 light jets
and 22 large jets). 53 jets delivered in 4Q12.
• Phenom 300 program reached two milestones: 100th
delivery and first flight of U.S.A. manufactured aircraft.
7
Highlights
• Delivery of 200th Legacy600/650 jet to
China’s Minsheng Financial Leasing.
• Expansion of authorized service center
network with 12 new facilities added in 2012.
8
Highlights
• Embraer Executive Jets launched Legacy 450 fabrication.
• HEAI started the Legacy 600/650 production
in Harbin, China and ICBC Leasing ordered 10
aircraft to be made in this unit.
• Embraer Executive Jets wins acclaim for product support from
Aviation International News (AIN) and Professional Pilot magazines.
• KC-390 development program ongoing and on schedule.
• Brazilian Army signed contract for Sisfron, Phase I.
9
Highlights
• Defense & Security revenues grew 24% in 2012
and surpassed the historical level of US$ 1.0 billion.
• Visiona, a joint venture between Embraer and Telebras, was created
to participate in the Brazilian Geostationary Satellite program.
• Two of the three EMB 145 AEW&C were
delivered to the Indian Government.
10
Highlights
• Delivery of the first four A-29 Super Tucano to
Indonesian Air Force, the first one to Mauritania and
first three to the National Air Force of Angola.
• Contract signed for EMB 145 AEW&C surveillance
aircraft modernization for the Brazilian Air Force.
• The U.S. Air Force selected the Super Tucano for the LAS program.
3721 19
83 77
2216
12698
2
2008 2009 2010 2011 2012
165
125101 105 106
2008 2009 2010 2011 2012
Aircraft Deliveries
Large Jets - Legacy & Lineage
Light Jets - Phenom
Commercial Jets Executive Jets
11
46%
26% 28%
15.4 14.712.9 12.4 12.5
4Q11 1Q12 2Q12 3Q12 4Q12
US$ Billion
12
Firm Order Backlog
Commercial Aviation
Defense & Security
Executive Aviation
6,3355,498 5,364
5,803 6,178
2008 2009 2010 2011 2012
Net Revenues
13
2012 Outlook: US$ 5.8 – 6.2 Billion
US$ Million
2008: USGAAP2009-2012: IFRS
61% 65% 61%
23% 19% 21%
15% 15% 17%
1% 1% 1%
2010 2011 2012
13%20% 24%
33%25%
31%
15% 11%3%
13% 17% 14%
22% 23% 22%
4% 4% 6%
2010 2011 2012
Net Revenues Breakdown
14
Net Revenues by Segment Net Revenues by Region
Commercial AviationExecutive Aviation Others
Defense and Security North AmericaBrazil
EuropeAsia Pacific
Latin AmericaOthers
Revenues US$ Billion 5.80 6.185.36
Revenues US$ Billion5.80 6.185.36
Net Revenues
15
2,025
1,156
1,717
1,405
1,900
4Q11 1Q12 2Q12 3Q12 4Q12
3,918
2,8503,385
2,049
3,667
4Q11 1Q12 2Q12 3Q12 4Q12
Total 2012: 6,178 Total 2012: 12,202
US$ Million R$ Million
393302
374 420
232
191
198
262
483
280
10% 9%11% 12% 12%
2008 2009 2010 2011 2012
16
2008: USGAAP2009-2012: IFRS
Expenses / Net Revenues
SG&A Expenses
US$ Million
Selling ExpensesG&A Expenses
Income from OperationsUS$ Million
EBIT EBIT Margin
17
EBIT: US$ 520 – 590 Million
EBIT Margin: 9.0% – 9.5%2012 Outlook:
379 392318
537612
8.5%
6.9% 7.3%
5.5%
9.9%
2008 2009 2010 2011 2012
2008: USGAAP2009-2012: IFRS
Income from Operations
EBIT EBIT Margin
18
86
197
101
(6)
228-0.3%
7.4%
11.5%
7.2%
12.0%
4Q11 1Q12 2Q12 3Q12 4Q12
153
390
205
469
(15)
12.0%
7.2%
11.5%
7.5%
-0.4%
4Q11 1Q12 2Q12 3Q12 4Q12
Total 2012: 612 / 9.9% Total 2012: 1,218 / 10.0%
US$ Million R$ Million
EBITDA
EBITDA EBITDA Margin
19
EBITDA: US$ 720 – 840 Million
EBITDA Margin: 12.5% – 13.5% 2012 Outlook:
609 611 557
891
608
14.4%
9.6%
11.4%11.1%9.6%
2008 2009 2010 2011 2012
US$ Million
2008: USGAAP2009-2012: IFRS
EBITDA
EBITDA EBITDA Margin
20
59
148
265
166
312
2.9%
12.8%
15.4%
11.8%
16.4%
4Q11 1Q12 2Q12 3Q12 4Q12
101
264
524
337
6412.8%
12.9%
15.5%
11.8%
16.4%
4Q11 1Q12 2Q12 3Q12 4Q12
US$ Million R$ Million
Total 2012: 891 / 14.4% Total 2012: 1,766 / 14.5%
US$ Million
Net Income
21
2008: USGAAP2009-2012: IFRS
465
330
112
348389
5.6%
1.9%
6.2%
8.5%
6.1%
2008 2009 2010 2011 2012
Net MarginNet Income
Net Margin
Net Income
Net Income
22
(92)
105
55 65
123
-4.5%
9.1%
3.2%4.6%
6.5%
4Q11 1Q12 2Q12 3Q12 4Q12
(172)
188124 133
254
-4.7%
9.2%
3.7%4.6%
6.5%
4Q11 1Q12 2Q12 3Q12 4Q12
Total 2012: 348 / 5.6% Total 2012: 698 / 5.7%
US$ Million R$ Million
2.142.57
1.83
0.62
1.92
52%
26%34%
116%
26%
2008 2009 2010 2011 2012
EPADS Pay Out
EPADS and Pay Out
23
2008: USGAAP2009-2012: IFRS
US$
2,837
2,4452,198 2,288
2,155
2008 2009 2010 2011 2012
Inventories
24
US$ Million
2008: USGAAP2009-2012: IFRS
Free Cash Flow
25
Free cash flow Additions to PP&E
Net cash generated (used) by operating activities* Additions to Intangible
* Net of Financial assets adjustment
Total 2012: (81)
US$ Million
(30)
(40)
(76) (50)(163)
444
155
(70)
414
(77)
(76)
(58)(55)(65)
(60)
206
(138)
25
(174)
277
4Q11 1Q12 2Q12 3Q12 4Q12
2012 Outlook: US$ 650 Million
Total Investment 2012: US$ 539 Million
251211
100
350
200
77
RESEARCH DEVELOPMENT CAPEX
Investments
2012 Outlook2012 Total
US$ Million
26
Indebtedness Profile / Net Cash
Long-term Short-termLoans Average Maturity (Years)
Indebtedness Maturity Net Cash – US$ Million
27
US$ 2.07 BillionTotal Debt 4Q12 Total Cash 4Q12 US$ 2.38 Billion
446
302 290
123
313
4Q11 1Q12 2Q12 3Q12 4Q12
78% 83%
15%26%
85%74%
84%
22% 17% 16%
4,8
4,2
6,1 6,0 5,8
4Q11 1Q12 2Q12 3Q12 4Q12
