2007* Paris Air Show Corporativo E RelaçõEs Com Investidores
1. 2007 Air Show
Presentation
Results &
Performance
Antonio Luiz Pizarro Manso
Executive Vice President
Corporate & CFO
June 20, 2007
2. 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.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
3. Jet Deliveries
36 37
30
27
25
1Q06 2Q06 3Q06 4Q06 1Q07
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
4. Net Revenues and Gross Margin
US$ Million
39,4% 37,7%
34,1%
30,2%
28,1%
3.830 3.807
3.441
2.526
2.144
2002 2003 2004 2005 2006
Net Revenue Gross Margin
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
5. Net Revenues and Gross Margin
US$ million
28.7% 28.3%
28.2% 27.5%
25.7%
1,084
1,021
894
808 843
1Q06 2Q06 3Q06 4Q06 1Q07
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
6. Net Revenue by Segment
1Q06 1Q07
Customer
Customer Services and
Others
Services and
16%
Others 17%
Commercial
Aviation 62% Executive
Aviation
Executive 14%
Aviation 11%
Defense and Commercial
Government Aviation
Defense and 5% 65%
Government 10%
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
7. EBIT – EBIT Margin
US$ Million
18,6%
15,8%
13,3%
12,3%
544 508
470 8,1%
308
265
2002 2003 2004 2005 2006
Income f rom Operations Margin
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
8. EBIT – EBIT Margin
US$ Million
13,2%
7,0%
135 5,2%
4,5%
76
37 46 0,5%
5
1Q06 2Q06 3Q06 4Q06 1Q07
Income f rom Operations EBIT Margin
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
9. EBITDA
US$ Million
14,8%
151 8,3%
7,6% 7,8%
85 23
75
62
2,7%
1Q06 2Q06 3Q06 4Q06 1Q07
Ebitda Ebitda Margin
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
10. Net Income
US$ Million
11,6%
11,1%
10,20%
8,8%
446
380 3 90
6,3%
223
136
200 2 2003 2004 2005 2006
Net Inc ome Net Margin
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
11. Net Income
US$ Million
13.6%
11.5%
8.1% 139
6.9% 124
26
65 61 3.1%
1Q06 2Q06 3Q06 4Q06 1Q07
Net Income Net Margin
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
12. Aircraft Financing Support
US$ Million
135.5
139.6
32.4
215.9 217.4 223.4
174.4 164
1Q06 2Q06 3Q06 4Q06 1Q07
CCF Acc Rec
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
13. Inventories
US$ Million
2,317
2,047
1,882
1,648 1,639
1Q06 2Q06 3Q06 4Q06 1Q07
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
14. Net Cash (Debt) Position
US$ Million
527 507
416
302
217
1Q06 2Q06 3Q06 4Q06 1Q07
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
15. Loans
Total Debt of US$ 1,224.3 Million
Brazilian
Short Currency
Term 21%
36%
Foreign
Long
Currency
Term
79%
64%
• Average cost in R$ = 7.1%p/a Average Maturity: 4 years and 9 months
• Average cost in US$ =Libor + 1.69% p/a
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
16. Loans Maturity
US$ million
446
91
64
1,2 2 4
99
33
491
Total Short- 2008 2009 2010 2011 after
term 2011
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
18. R&D – PP&E
US$ Million
206
173
158 153
143 148
114 111
100
91
70 64 59
50
2000 2001 2002 2003 2004 2005 2006
PP&E R&D
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
19. Contributions from Risk Sharing Partners
US$ million
246 14
1
108
-
55
42
17
20
Total
2001
2002
2003
2004
2005
2006E
2007E
2008/2010E
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
20. Research & Development Forecast
US$ Million 2007 2008
Commercial Aviation 51 22
Executive Aviation 127 90
Technology Development 59 61
TOTAL 237 173
Defense & Government 32 48
Defense & Government R&D are funded by their contracts and are included as Cost of sales and services
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
21. PP&E
US$ Million 2007 2008
Productivity 77 52
Production Ramp Up 104 36
Customer Services 13 29
TOTAL 194 117
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
22. Backlog and
Delivery Forecast
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
23. ERJ 145 Family Order Book
Firm
Firm Orders Options Total Deliveries Backlog
ERJ 135 108 - 108 108 -
ERJ 140 74 - 74 74 -
ERJ 145 732 132 864 679 53
Total 914 132 1,046 861 53
(1st Quarter 2007)
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
24. EMBRAER 170/190 Family Order Book
Firm
Firm Orders Options Total Deliveries
Backlog
EMBRAER 170 160 130 290 130 30
EMBRAER 175 99 136 235 29 70
EMBRAER 190 327 241 546 65 262
EMBRAER 195 44 51 95 5 39
Total 630 558 1,188 229 401
(1st Quarter 2007)
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
25. Backlog
US$ Billion
18.2 18.2
14.9
15.3 15.9
13.3 14.8 15.0
10.4 10.2
1Q06 2Q06 3Q06 4Q06 1Q07
Firm Options
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
26. Jet Deliveries Forecast
195/205
160 161 165/170
148 141
131 130
101
2000 2001 2002 2003 2004 2005 2006 2007E 2008E*
* Includes 15/20 Phenom 100
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
