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Corporate and Business Strategy
• Product strategy.
• Diversification and expansion of customer base.
• Excellence in Customer Experience (ECE).
• Market share growth.
• Margins improvement.
• Product strategy and customer support focus.
• Organic growth.
• Margins enhancement through the P3E.
• Business and revenues diversification.
• Establish Embraer as the defense house of Brazil.
• Organic growth and acquisitions.
Aircraft Deliveries
Large Jets - Legacy & Lineage
Light Jets - Phenom
Commercial Jets Executive Jets
133
165
125101 106105
2007 2008 2009 2010 2011 2012
36 3721
126
83
19 16 22
2
98
77
2007 2008 2009 2010 2011 2012
Net Revenues
2012 Outlook: US$ 5.8 – 6.2 billion
2007-2008: USGAAP
2009-2012: IFRS
US$ Million
5,245
6,3355,498 5,364
5,803
4,278
2007 2008 2009 2010 2011 9M2012
Revenues by Segment – 2012 Outlook
1,4051,364
2,025
1,156
1,717
3Q11 4Q11 1Q12 2Q12 3Q12
259
189
293
232266
3Q11 4Q11 1Q12 2Q12 3Q12
167149
603
152
261
3Q11 4Q11 1Q12 2Q12 3Q12
9569961,078
760
1,176
3Q11 4Q11 1Q12 2Q12 3Q12
Commercial Aviation: US$ 3.70 – 3.85 Billion
Executive Aviation: US$ 1.10 – 1.30 Billion Defense and Security: US$ 900 – 950 Million
Embraer: US$ 5.8 – 6.2 Billion
69%61% 64%
17%23% 19%
12% 15% 15%
2% 1% 2%
2009 2010 2011
22%13%
20%
33%
33%25%
7%15% 11%
11% 13% 17%
21% 22% 23%
6% 4% 4%
2009 2010 2011
Revenues Breakdown
Revenues by Segment Revenues by Region
Commercial aviation
Executive aviation Others
Defense and security North America
Brazil
Europe
Asia Pacific
Latin AmericaOthers
Revenues
US$ Billion 5.805.49 5.365.805.49 5.36Revenues
US$ Billion
15.4 14.712.9 12.4 12.5
4Q11 1Q12 2Q12 3Q12 4Q12
Firm Order Backlog
US$ Billion
Embraer Commercial Aviation
OVER 80 AIRLINES IN MORE THAN 50 COUNTRIES
Product Portfolio
capacity: 70 to 80 seats
range: 2,100 nm (3,900 Km)
capacity: 78 to 88 seats
range: 2,000 nm (3,700 Km)
capacity: 98 to 114 seats
range: 2,400 nm (4,500 Km)
capacity: 108 to 122 seats
range: 2,200 nm (4,100 Km)
capacity: 37 seats
range: 1,750 nm (3,250 Km)
capacity: 50 seats
range: 1,550 nm (2,900 Km)
capacity: 50 seats
range: 2,000 nm (3,700 Km)
capacity: 44 seats
range: 1,650 nm (3,050 Km)
E-Jets Customer Base Evolution
E-Jets Family Order Book – 4Q12
E-JETS Firm orders Deliveries Firm Backlog
EMBRAER 170 193 183 10
EMBRAER 175 198 163 35
EMBRAER 190 560 451 109
EMBRAER 195 142 111 31
Total 1,093 908 185
0%
10%
20%
30%
40%
50%
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Worldwide Distribution
E-Jets Customer Base by Business Model
(% of E-Jets Fleet+Backlog)
Firm Orders
Commercial Jets – Net Orders Market Share
Considering Accumulated Net Orders
70-120 Seats Jets
19%
33%
48%
12%9%
27%17%
35%
16%
8%
30%13%
33%
Backlog
Europe & CIS
Middle East & Africa
Latin America
North America
Asia Pacific & China
43%
26%
1%
13%
4%
Low Cost Carriers
Regional Airlines
Network Airlines
9%
E-Jets Deploymenthelping airlines to be more efficient
Embraer Market Forecast (2012-2031)
North
America
84032%
North
America
2,19532%
Latin
America
31512%
Latin
America
67010%
Europe
58022%
Europe
1,46022%
Russia /
CIS
1556%
Russia /
CIS
4457%
Africa
803%
Africa
2103%
Middle
East
1054%
Middle
East
3054%
Asia
Pacific
2108%
Asia
Pacific
5057%
China
34013%
China
1,00515%
Projected Deliveries - Jets
Market Segment(Seats)
2010 –2019Deliveries
30-60 60
61-90 1,015
91-120 1,550
30-120 2,625
Market Segment
(Seats)2012 –2031
Deliveries
30-60 405
61-90 2,625
91-120 3,765
30 - 120 6,795
• Scope Clauses relaxation allowing 80-seater aircraft as a natural growth of RJ50s in the US
• Right-sizing of narrow-body operations
• Regional aviation development in Emerging Markets
• Acceleration of replacement of old & inefficient jets
Around 6,795 jet deliveries (30-120 seats) in the next 20 years (US$ 315 bi)
Competition 61-120 seats – New Scenario
Embraer Executive Jets
MORE THAN 600 AIRCRAFT DELIVERED IN OVER 40 COUNTRIES
Embraer Executive Jet
Delivered in Brazil
Product Portfolio
Large
Aircraft Model
Phenom 100
Phenom 300
Legacy 450
Legacy 500
Legacy 600
Lineage 1000
Seats / Range
up to 8 occupants/
1,178 nm
up to 11 occupants/
1,971 nm
7 to 9 passengers/
2,300 nm
8 to 12 passengers/
3,000 nm
13 to 14 passengers/
3,400 nm
13 to 19 passengers/
4,500 nm
Entry
Light
Mid-light
Mid-size
Ultra-large
Super Mid-Size
Certified: 2008
Certified: 2009
Under development
Certified: 2001
Certified: 2008
Ultra-Long Range
Competitors
• Cessna - Mustang CJ1+/M2
• HondaJet
• Cessna - CJ2+/CJ3/CJ4
• Hawker - PremierIA/400XP
• Bombardier - Learjet 40XR
• SyberJet - SJ30
• Bombardier - Learjet 45XR
• Cessna - XLS+/Latitude
• Hawker 750
• Bombardier - Learjet 60XR/85
• Cessna - Sovereign
• Hawker - H900XP
• Gulfstream – G150
• Bombardier - CL605/GL5000
• Dassault - Falcon 2000/900LX
• Gulfstream - G350/G450
• Airbus - ACJ 318/319/320
• Boeing – BBJ/BBJ2/BBJ3
• SSJ VIP/ ARJ21B / An-148VIP
Legacy 650 13 to 14 passengers/
3,900 nmCertified: 2010
• Bombardier - GL XRS
• Gulfstream – G500/G550/G650
• Dassault – Falcon 7X
• Bombardier - CL300/CL850
• Cessna - X/Ten
• Dassault - Falcon 2000S
• Gulfstream - G200/G280
• Hawker - H4000
26%24% 22% 21% 20%
26%35% 37% 40%
33%
9%7% 7% 6%
9%
15%13% 13% 14%11%
14%3% 3% 3%
14%
7%16% 16% 14% 11%
2%3% 2% 1% 2%
20112006 2007 2008 2009
% O
EM S
har
e –
Tota
l un
its
703 885 1,040 1,154 870
Market Share
OthersHawker-BeechEmbraer Gulfstream
DassaultCessnaBombardier
Deliveries share (units)Revenues share (US$ - based on B&CA list prices)
33%29% 28% 29% 28%
9%16% 17% 18%12%
15%11% 12% 12% 18%
27%23% 23% 24% 21%
4% 5% 4% 6%
4%9% 8% 8% 8%
7%8% 6% 5% 6%
20112006 2007 2008 2009
% O
EM S
har
e –
Tota
l Rev
en
ue
s U
S$
$18.1Bi$16.6Bi $19.3Bi $22.2Bi $17.2Bi
2010
763
7%
2010
$18.2Bi
19%
27%
7%
22%
21%
6%10%
20%
23%
12%
13%
10%
3%
6%
Market Revenues 2011: US$18.1 billion
Embraer Revenues: US$1.0 billion
Market Deliveries 2011: 703 units
Embraer Deliveries: 99 units
Economic Indicators
New record levels
2013-22 Market Forecast - World Deliveries
Previous forecast
2013-22 Market Forecast
Business Jets Used Market Inventory
Service Center Network
Over 60 service centers worldwide
12 new centers worldwide since August, 2011
4 more under authorization
On site stocks worldwide in 43 different locations
OVER 50 ARMED FORCES IN 48 COUNTRIES
Embraer Defense and Security
Embraer Defense and Security, partners and affiliated companies
Embraer Defense and Security
Embraer Defense and Security Results
Não contabiliza as receitas provenientes da OGMA nos anos de 2006 a 2010.
Revenues Evolution (US$ Million)
EBIT Evolution (%) Backlog Evolution (US$ Billion)
227346
505 499670
852
6% 7% 8% 9%
13%15%
2006 2007 2008 2009 2010 2011
Reven
ue P
art
icip
ati
on
(%
)
GAGR 33%
6.3%
12.4% 12.2% 12.0%13.4%
9.6%
2006 2007 2008 2009 2010 2011
1.1 1.01.5
3.2 3.3 3.3
2006 2007 2008 2009 2010 2011
Super Tucano
Firm orders: 190 aircraft
Brazil: 99
Colombia: 25
Dominican Republic: 8
Chile: 12
Ecuador: 18
Indonesia: 16
Greystone (TACAir): 1
Undisclosed: 11
Deliveries: 172 aircraft
Total Market Forecast:
300 aircraft / US$ 3.5 billion
800
2,000
700Medium-term
Long-term
Short-term
Addressable Market Forecast 2020 (US$ million)
Partnership with Boeing to provide weapons integration, increasing capabilities of the aircraft.
EMBRAER KC-390
• A new tactical military transport and tanker aircraft
• First flight in 2014
• Six countries
• Letters of intent totalizing 60 aircraft
• Agreement with Boeing to share technical knowledge and
evaluate markets for joint sales efforts.
• The Brazilian Air Force (FAB) and Embraer concluded the
Preliminary Design Review.
Brazil
(28)
Colombia
(12)
Argentina
(6)
Chile
(6)
Portugal
(6)
Czech Rep.
(2)
Total Market Forecast 2025:
700 aircraft / US$ 50+ bi
A1-MF-5M A-4
Brazilian Navy A-4
12 aircraft
2 prototypes at GPX-CS
Brazilian Air Force A-1M
43 aircraft
14 received by Embraer for the modernization
Brazilian Air Force F-5M
46 a/c + 11 a/c (2nd batch)
45 already delivered
Brazilian Air Force E-99
5 a/c aircraft EMB 145 AEW&C* Considering the market for F-5 and Tucano modernization
Modernization Programs
Addressable Market Forecast 2025 (US$ million)
Total Market Forecast*:
234 aircraft / US$ 1.6 billion
527
505
567
Medium-term
Long-term
Short-term
New Portfolio
HARPIA
Command and Control Systems
Onboard Systems
Simulation Systems
Electronic Warfare Systems
Intelligence Systems
Air Traffic Management and Control Systems
JV with Elbit/AEL Sistemas where Embraer Defense and
Security has a major participation
UAS, simulators and modernization of avionics systems
Air, ground and sea surveillance radars
Remote sensing
Engine and Component Maintenance
Overhaul and Modernization
Aerostructure Manufacturing and Assembling
SatelliteVISIONA
Security of Critical
Infrastructure
Public Security (sporting events, cities, states)
Airport Management
Systems
SISFRON
SisGAAZ
SISFRONIntegrated Borders Monitoring System
First phase: US$ 400 Million
Total estimate: US$ 4 Billion
Comprising radars, communication networks, C4I,
unmanned air vehicles (UAV) and armored vehicles
Brazilian Army Priorities
Comm9% UAV
12%
SW20%
Sensors59%
SatelliteEstimate: US$ 400 Million
Participation in the first Brazilian Geostationary Satellite
New Business
• Airport Management Systems
• SisGAAz (“Blue Amazon” Integrated Management System)
• Security of Critical Infrastructure
• Public Security (sporting events, cities, states)
Transport
4%
Light Attack and
Combat
9%
KC-390
34%
Radar, C4I, UAV,
MRO
18%
New Business
14%
Sisfron, Satellite
10%
Services
11%2020
Revenues Breakdown Evolution
2011Services
10%
Modernization25%
Radar, C4I, UAV, MRO27%
Light Attack9%
ISR10%
KC-39019%
Future Projects – Brazilian Government
2013 Federal Initial Budget (*)
2013 budget
(R$ million)
Air Force 4.600 KC-390 1.200
Air Traffic Control 1.300
5 midsize helicopters
(out of 50)443
Aqcuisition & modernization of aircraft 596
Aircraft Maintenance & Supplies 500
Fuel & oil 307
Combat Readiness 74
(*) Investment Budget – Budget sent to congress for discussion(available at Ministry of Planning website)
2013 budget
(R$ million)
Navy 3.700 PROSUB (submarine) 2.300
Combat Readiness 708
Aqcuisition & modernization of vessels 506
Patrol ship building 73
2013 budget
(R$ million)
Army 2.100 SISFRON 200
Combat Readiness 365
Logistic 353
Aqcuisition & modernization of equip. 212
Guarani Vehicles
(48 out of 2.044)90
ASTROS 2020 90
ProtegerStrategic Infrastructure Protection
44
Future Projects – Brazilian Government
2012 Outlook
EBIT
EBIT margin
2012 Outlook
EBITDA
EBITDA margin
US$ 670 – 780 Million
11.5% – 12.5%
8.0% – 8.5%
US$ 460 – 530 Million
9.0% – 9.5%
US$ 520 – 590 Million
US$ 720 – 840 Million
12.5% – 13.5%
Commercial aviation
Executive aviation
Others
Defense and securityNet Revenues US$ 5.8 – 6.2 billion
Outlook in 1Q12 Current Outlook (Revised in 2Q12)
CAPEX
R&D
Investment/Revenue
US$ Million
2012 Outlook
US$ 350 millionDevelopment
CAPEX US$ 200 million
Research US$ 100 million TOTAL
US$ 650
million
US$
2010 198 374
2011 262 420
Net Revenues / SG&A Expenses
Net Revenues - US$ Million SG&A Expenses - US$ Million
US$
2010 5,364 19.1%
2011 5,803 22.5%
Net Revenues Gross Margin Selling ExpensesG&A Expenses
103 114 109 119
6972 71
75
59
111
3Q11 4Q11 1Q12 2Q12 3Q12
172186
194
170180
1,405
1,717
1,156
2,025
1,364
3Q11 4Q11 1Q12 2Q12 3Q12
Income from Operations / EBITDA
Income from Operations - US$ Million EBITDA - US$ Million
US$
2010 392 7.3%
2011 318 5.5%
EBIT EBIT Margin US$
2010 611 11.4%
2011 557 9.6%
EBITDA EBITDA Margin
10.2%
42
(6)
86
197
124101
9.1%
-0.3%
7.4%
11.5%
7.2%
3Q11 4Q11 1Q12 2Q12 3Q12
14.9%
42
Without Chautauqua non-recurring event
188
59
148
265
166
13.8%
2.9%
12.8%
15.4%
11.8%
3Q11 4Q11 1Q12 2Q12 3Q12
US$
2010 330 6.2%
2011 112 1.9%
Net Income / Free Cash Flow
Net Income - US$ Million Free Cash Flow - US$ Million
Net MarginNet Income
Free cash flow
Additions to PP&E
Net cash generated (used) by operating activities*
Additions to Intangible
* Net of Financial assets adjustment
US$
2010 287
2011 1
* Reflects re-calculation of Company’s income tax base
2
-92
105
55 650.1%
-4.5%
9.1%
3.2%4.6%
3Q11 4Q11 1Q12 2Q12 3Q12* *
20
155
(30)(77)
(40)
(76) (50)
414
(70)(73)
(60) (60)
(65)(55) (58)
(112)
277
(174)
25
(138)
3Q11 4Q11 1Q12 2Q12 3Q12
Indebtedness Profile / Net Cash
Indebtedness Maturity Net Cash - US$ Million
Long-term Short-term
Loans Average Maturity (Years)
US$ 2.08 BillionTotal Debt 3Q12 Total Cash 3Q12 US$ 2.21 Billion
193
446
302 290
123
3Q11 4Q11 1Q12 2Q12 3Q12
74% 78%
26%15%
74%85% 83%
26% 22% 17%
4.54.8
4.2
6.1 6.0
3Q11 4Q11 1Q12 2Q12 3Q12
Investments
2012 Outlook9M2012
US$ Million
176132
100
350
200
52
RESEARCH DEVELOPMENT CAPEX
Investors’ Return
Pay OutEPADS
2006-2008: US GAAP
2009-2011: IFRS*
EPADS and Pay Out Dividend Yield (%)
1.83
2.572.14
2.64
2.11
0.62
34%26%
52%
68%53%
115%
2006 2007 2008 2009* 2010* 2011*
35%
1.68
2.132.01
2.91
4.34
3.28
2.23
2006 2007 2008 2009 2010 2011
724,040,044 Voting Shares
Ownership Structure
Sustainability Initiatives
Brazilian Alliance for Bio-fuel
Reforestation Projects
ISO 14001 and OHSAS
18001 Certifications
1st ethanol powered
aircraft in the World
IpanemaRecycling
Corporate ValuesGreener Technology
Social Activities
Lean Results
E-Jets Final Assembly Line Transformation
“Dock” layout - 2008 Assembly Line – 2009 Assembly Line – 2011
0
0
68
8
4
Mar/11
(10ac/month)
00,21,51,510Over time (% of work
hours)
001,7732Number of non-conformity
per a/c
688995106212Work in process (US$mi)
78101218Cycle time (days)
445612Number of positions
Out/11
(12ac/month)
June/2010
(8ac/month)
Sep/2009
(10ac/month)
July/2009
(10ac/month)
May/2008
(15ac/month)
Performance indicators
0
0
68
8
4
Mar/11
(10ac/month)
00,21,51,510Over time (% of work
hours)
001,7732Number of non-conformity
per a/c
688995106212Work in process (US$mi)
78101218Cycle time (days)
445612Number of positions
Out/11
(12ac/month)
June/2010
(8ac/month)
Sep/2009
(10ac/month)
July/2009
(10ac/month)
May/2008
(15ac/month)
Performance indicators
Lead Time (E-Jets)
2005 2006 2007 2008 2009 2010 2011
40% reduction on the production cycle
40%
P3E Results
Kaizen - E-Jets Cycle Reduction Cost of Non Quality Reduction
44% reduction on CNQ
Cost of Non Quality
2008 2009 2010
44%
2,52,2
0,40,9 1,2 0,5 0,8
1,6 1,3 1,6 2,53,1
24,022,7
3,5
9,110,7
7,28,4
10,612,7
14,5
22,7
28,3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Cost: US$ 18.9 mi
Benefit: US$ 175.5 mi
“Boa Idéia” Program Evolution
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.