May 2017 investor.relations@embraer.com.br ri.embraer.com.br Embraer RI +55 12 3927 1000 EMBRAER BUSINESS AREAS
2 This information is property of Embraer and can not be used or reproduced without written permission. FIRM ORDER BACKLOG US$ BILLION 1Q17: 19.2
EXECUTIVE JETS
22.5 20.9 COMMERCIAL DEFENSE 18.2 19.6 AVIATION & SECURITY 12.4
2012 2013 2014 2015 2016
3 This information is property of Embraer and can not be used or reproduced without written permission. AIRCRAFT DELIVERIES
1Q17: 18 1Q17: 11 | 4
119 116 120 117 99
82 73 90 92 77 106 101 108 90 92
38 44 22 29 24
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
70 - 80 35 - 45 2017 OUTLOOK: 97 - 102 2017 OUTLOOK: 105 - 125
4 This information is property of Embraer and can not be used or reproduced without written permission. NET REVENUES US$ MILLION 1Q17: 1,026
EXECUTIVE JETS 6,167 6,235 6,289 5,928 6,218 COMMERCIAL DEFENSE AVIATION & SECURITY
2012 2013 2014 2015 2016
2017 OUTLOOK: US$ 5.7 – 6.1 BILLION
5 This information is property of Embraer and can not be used or reproduced without written permission. NET REVENUES BREAKDOWN
SEGMENT REGION
6.29 5.93 6.22 6.29 5.93 6.22
1% 1% 2% 3% 6% 4% 14% 15% 4% 4% 5% 23% 4% 2% 6% 3% 12% 4% 11% 29% 28% 21% 11% 26% 8% 14%
56% 57% 65% 63% 50% 48%
2014 2015 2016 2014 2015 2016
NORTH AMERICA BRAZIL CHINA ASIA PACIFIC
EUROPE SOUTH & CENTRAL AFRICA & OTHERS AMERICA MIDDLE EAST
6 This information is property of Embraer and can not be used or reproduced without written permission. CORPORATE GOVERNANCE STRUCTURE
S H A R E H O L D E R S
FISCAL BOARD
BOARD OF DIRECTORS
BOARD OF EXECUTIVE OFFICERS
STRATEGY ETHICS COMMITTEE COMMITTEE PEOPLE AND FINANCIAL MANAGEMENT GOVERNANCE COMMITTEE COMMITTEE
SUSTAINABILITY AUDIT AND RISKS COMMITTEE COMMITTEE
ENVIRONMENTAL RISK INTERNAL AUDIT COMMITTEE
SECURITIES TRADING COMPLIANCE COMMITEE
7 This information is property of Embraer and can not be used or reproduced without written permission. OWNERSHIP STRUCTURE
734,558,924 VOTING SHARES
LOCAL SHAREHOLDERS 21%
47% 53%
79%
INTERNATIONAL SHAREHOLDERS
8 This information is property of Embraer and can not be used or reproduced without written permission. EMBRAER CREDIT RATINGS
BBB INVESTMENT GRADE SINCE JAN. 2006
BBB- INVESTMENT GRADE SINCE APR. 2016
Ba1
9 This information is property of Embraer and can not be used or reproduced without written permission. COST REDUCTION PLAN - DETAILS
REDUCTION OF ANNUAL RECURRING EXPENSES BY US$ 200 MILLION.
US$ 200 MM LAUNCHED IN SEPTEMBER 2016
LABOR ADJUSTMENT: ~ US$ 130 MILLION $130 – 140 $60 – 70 MM MM OTHER COSTS: ~ US$ 70 MILLION (FOCUSED ON TRAVEL EXPENSES, CONSULTING FEES, OTHER G&A EXPENSES)
10 This information is property of Embraer and can not be used or reproduced without written permission. SHORT & MID TERM OPPORTUNITIES
E-2 EIS (ACCESS TO E-JET BASE) SUPER TUCANO NEW SALES E-JET OPPORTUNITIES IN US/ASIA
KC-390 FROM DEVELOPMENT TO PRODUCTION PREMIUM POINT-TO-POINT BIZ TRAVELER
L450 AND L500 NEW CUSTOMERS GROWING SERVICES REVENUES
COST REDUCTION PLAN REVENUES
MARGIN GAINS L450/L500 RAMP UP
HIGHER DISCIPLINE ON HIGHER EBITDA PRICES & COSTS GENERATION
INDUSTRIAL OPTIMIZATION IN FLORIDA LOWER INVESTMENTS POST E-2
STREAMLINING OF SUBSIDIARIES & SERVICE WORKING CAPITAL GAINS (LOWER CENTERS INVENTORIES / ACCOUNTS RECEIVABLE)
11 This information is property of Embraer and can not be used or reproduced without written permission.
OVER 100 AIRLINES IN MORE THAN 60 COUNTRIES
13 This information is property of Embraer and can not be used or reproduced without written permission. PRODUCT PORTFOLIO
37 seats 70 - 80 seats 1,750nm (3,250Km) 2,100nm (3,900Km)
44 seats 78 - 88 seats 80-90 seats 1,650nm (3,050Km) 2,000nm (3,700Km) 2,060nm (3,820Km)
50 seats 98 - 114 seats 97-114 seats 1,550nm (2,900Km) 2,400nm (4,500Km) 2,850nm (5,280Km)
50 seats 2,000nm (3,700Km) 108 - 122 seats 120-146 seats 2,200nm (4,100Km) 2,450nm (4,540Km)
14 This information is property of Embraer and can not be used or reproduced without written permission. E-JETS – GLOBAL MARKET SUCCESS 1,749 ORDERS
1,317 DELIVERIES
432 AIRCRAFT IN BACKLOG
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: Embraer (March 2017)
15 This information is property of Embraer and can not be used or reproduced without written permission. E-JETS – ORDER BOOK 1Q17
FIRM ORDERS DELIVERIES FIRM BACKLOG
193 190 3 525 437 88 590 534 56 166 156 10 100 - 100 85 - 85 90 - 90 TOTAL 1,749 1,317 432
16 This information is property of Embraer and can not be used or reproduced without written permission. E-JETS – SHARE AND REGION BREAKDOWN
DELIVERIES SHARE DELIVERIES BY REGION 70-130 SEATS JETS MIDDLE EAST AFRICA OTHERS ASIA PACIFIC 6% 8% CHINA 13% NORTH E-JETS 42% AMERICA 61% LATIN AMERICA 17% BOMBARDIER 31% 22% EUROPE CIS NORTH AMERICA SHARE BACKLOG BY REGION 76 SEAT JETS - ORDERS SINCE 2013 OTHERS ASIA PACIFIC 1% CHINA 20%
CRJ900 E175 LATIN AMERICA 6% 17% NORTH 83% 56% AMERICA EUROPE 17% CIS
As of 2Q16
17 This information is property of Embraer and can not be used or reproduced without written permission. COMPETITIVE SCENARIO
CAPACITY (SINGLE CLASS) 180+
737-8MAX
160 A320neo
140 A319neo 737-7 MAX CS300
120 E195-E2 CS100 E195
100 E190 E190-E2 CRJ1000 SSJ95/100
CRJ900 ARJ21 MRJ90 E175-E2 80 E175 CRJ700 MRJ70 E170
18 This information is property of Embraer and can not be used or reproduced without written permission. EMBRAER MARKET FORECAST (2016-2035)
CIS EUROPE 380 JETS (6%) NORTH AMERICA 1,160 JETS 2,020 JETS (31%) (18%) MIDDLE EAST AFRICA 230 JETS (4%) ASIA PACIFIC 230 JETS (4%) 1,690 JETS (26%)
LATIN AMERICA 690 JETS (11%)
WORLDWIDE 6,400 JETS (70-130 SEATS) US$ 300 BILLION
19 This information is property of Embraer and can not be used or reproduced without written permission. MARKET OPPORTUNITIES
DIRECT REPLACEMENT
50/70-SEAT JET REPLACEMENT
TP REPLACEMENT
RIGHT-SIZING
SMALL NB IN US MAINLINES
LCCS IN ASIA AND EUROPE
REGIONAL AVIATION DEVELOPMENT (INDIA, BRAZIL, TURKEY, IRAN)
CHINA: NEW CAAC POLICY ON AIRLINE LICENSE
20 This information is property of Embraer and can not be used or reproduced without written permission.
E-JETS EVOLUTION
130 +14 SEATS 120 120-146 seats 20% 2,450nm
110 SAME 100 20% 97-114 seats 2,850nm 90 +4 SEATS
80 80-90 seats 2,060nm 70
22 This information is property of Embraer and can not be used or reproduced without written permission. A NEW DESIGN ON A PROVEN PLATFORM
IMPROVED AVIONICS 45% more display area NEW INTERIOR Enhanced PAX experience and more overhead bin volume NEW WING More efficient, higher aspect ratio AIRCRAFT SYSTEMS Re-design to boost performance, reliability and maintenance costs FUSELAGE Extensive aerodynamic optimization to improve fuel efficiency NEW ENGINE High-By-Pass Ratio, Geared Fan Engines LANDING GEAR DOORS Up to 1% fuel burn reduction
4TH GEN FULL FLY-BY-WIRE Digital closed-loop control to improve flying qualities and fuel efficiency
23 This information is property of Embraer and can not be used or reproduced without written permission. SMARTER BY DESIGN NOT SIMPLY AN EXERCISE IN TECHNOLOGY
1.5% 4TH GENERATION FLY-BY-WIRE
3.5%
WING, LANDING GEAR DOORS AND AERODYNAMIC IMPROVEMENTS 11% PW GTF ENGINE
16% LOWER CONSUMPTION OVER CURRENT E190
24 This information is property of Embraer and can not be used or reproduced without written permission. SMARTER FOR BUSINESS FUEL COST
-10% CS100 PER TRIP
-10%
CS300
-10% PER SEATPER
25 This information is property of Embraer and can not be used or reproduced without written permission. COST PER SEAT IMPROVEMENTS
FUEL BURN DMC
E175-E2 (80 SEATS) E190-E2 (97 SEATS) E195-E2 (120 SEATS) vs E175 (76 SEATS) vs E190 (97 SEATS) vs E195 (106 SEATS) 0%
-5%
-10%
-16% -16% -15% -15% -20% -20% -25% -24% -25%
E175 CF34-8E5 baseline per 2011 conditions E190 CF34-10E6 baseline per 2011 conditions *2,600FH/Yr & 1.5FH/FC; 10 years DMC *2,600FH/Yr & 1.5FH/FC; 10 years DMC Target values for 600 nm sector; Dual Class configuration
26 This information is property of Embraer and can not be used or reproduced without written permission. UP TO 50% HIGHER PROFIT PER SEAT THAN 170-SEAT AIRCRAFT
100 SEATER 170 SEATER
REVENUE PER SEAT - COST PER SEAT = PROFIT PER SEAT +30% +20% +50%
TO KNOW MORE PLEASE VISIT www.newmetricsofsuccess.com
27 This information is property of Embraer and can not be used or reproduced without written permission. MASTER PHASE PLAN
ACCOMPLISHED PLANNED 2012 2013 2014 2015 2016 2017 2018 2019 2021
1ST FLIGHT DETAIL DESIGN, MANUFACTURING AND ADVANCED DESIGN CERTIFICATION H1 2018
11STST FLIGHTFLIGHT DETAIL DESIGN, MANUFACTURING AND ADVANCED DESIGN CERTIFICATION 2019
1ST FLIGHT DETAIL DESIGN, MANUFACTURING AND ADVANCED DESIGN CERTIFICATION 2020
28 This information is property of Embraer and can not be used or reproduced without written permission. E2 ONGOING FLIGHT TEST CAMPAIGN
4RD PROTOTYPE JOINED THE FLIGHT TEST CAMPAIGN 650+ FLIGHT-TEST HOURS 1,000+ GROUND-TEST HOURS
E195-E2 SUCCESSFUL ROLL OUT FIRST FLIGHT AHEAD OF SCHEDULE
29 This information is property of Embraer and can not be used or reproduced without written permission. COMMITMENTS E-JETS E2
AERCAP 50+50 x E190-E2 | E195-E2 AIRCASTLE 25 +25 x E190-E2 | E195-E2 AIR COSTA 50+50 x E190-E2 | E195-E2 AZUL 30+20 x E195-E2 HAINAN/TIANJIN AIRLINES 2+18 x E190-E2 ICBC LEASING 10+10 x E190-E2 SKYWEST, INC. 100+100 x E175-E2 TRANS STATES HOLDINGS 50+50 x E175-E2 KALSTAR AVIATION 5+5 x E190-E2 690 COMMITMENTS ARKIA ISRAELI AIRLINES 6+4 x E195-E2 (275 FIRM) UNDISCLOSED 0+10 x E190-E2
30 This information is property of Embraer and can not be used or reproduced without written permission.
1,100+ JETS DELIVERED IN MORE THAN 70 COUNTRIES
32 This information is property of Embraer and can not be used or reproduced without written permission. PRODUCT PORTFOLIO
ENTRY LIGHT MIDLIGHT MIDSIZE Certified 2008 Certified 2009 Certified 2015 Certified 2014 Up to 8 occupants | 1,178 nm Up to 11 occupants | 1,971 nm 7 to 9 passengers | 2,900 nm 8 to 12 passengers | 3,125 nm • Cessna - Mustang/M2 • Cessna - CJ3+/CJ4 • Bombardier - Learjet 75 • Cessna - Sovereign+ • HondaJet • Bombardier - Learjet 75 • Cessna - XLS+/Latitude • Bombardier - CL350 • Pilatus - PC-24 • Gulfstream - G280
LARGE ULTRA-LARGE Under Certification Certified 2008 13 to 14 passengers | 3,900 nm 13 to 19 passengers | 4,600 nm • Cessna - Hemisphere • Airbus - ACJ 318/319/320 • Bombardier - CL650 • Boeing - BBJ/BBJ2/BBJ3 • Dassault - Falcon 2000LXS/900LX • Gulfstream - G450
33 This information is property of Embraer and can not be used or reproduced without written permission. MARKET SHARE
REVENUES SHARE (US$ BI | B&CA LIST PRICES) DELIVERIES SHARE (UNITS)
17.7 21.2 21.8 21.9 18.6 663 677 715 706 652
MARKET REVENUES 2016: US$ 18.6 BILLION MARKET DELIVERIES 2016: 652 UNITS EMBRAER REVENUES: US$ 1.7 BILLION EMBRAER DELIVERIES: 117 UNITS
OTHERS
34 This information is property of Embraer and can not be used or reproduced without written permission. EXECUTIVE JETS – DELIVERIES EVOLUTION
1,097
144 115 119 116 120 117 99 99
14 8 13 13 27 35 36 2 5 15 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017YTD
EMBRAER EXECUTIVE JETS DELIVERIES ACCUMULATED FLEET
35 This information is property of Embraer and can not be used or reproduced without written permission. BUSINESS JETS PRE-OWNED MARKET INVENTORY
11.0% 8.2% 2,323 JETS 653 JETS
Source: Jetnet and Embraer analysis, February 2017
36 This information is property of Embraer and can not be used or reproduced without written permission. MARKET FORECAST PER JET CLASS (2017-2026)
DELIVERIES FORECAST (N10Y) UNITS US$ ULTRA LARGE
U-LONG RANGE
LARGE
SUPERMID
MIDSIZE
MIDLIGHT
LIGHT
ENTRY
SMALL TO SUPERMID CLASSES REBOUND AND LARGE TO ULTRA-LONG RANGE STABILITY
37 This information is property of Embraer and can not be used or reproduced without written permission. EMBRAER MARKET FORECAST (2017-2026)
EUROPE & AFRICA 1,900 JETS (23%) NORTH AMERICA US$ 60 BI (25%) 4,700 JETS (56%) CHINA US$ 128 BI (52%) 570 JETS (7%) US$ 22 BI (9%)
ASIA PACIFIC & MIDDLE EAST 660 JETS (8%) US$ 21 BI (9%) LATIN AMERICA 570 JETS (7%) US$ 13 BI (5%)
WORLDWIDE 8,400 JETS US$ 244 BILLION
38 This information is property of Embraer and can not be used or reproduced without written permission. EXPANDING OPERATIONS IN FLORIDA 4 CUSTOMER CENTER
7 LEGACY 450/500 DELIVERY CENTER
6 LEGACY 450/500 PAINTING
2 LEGACY 450/500 FINAL ASSEMBLY PHENOM PAINTING 5
1 PHENOM FINAL ASSEMBLY ENGINEERING CENTER 3
39 This information is property of Embraer and can not be used or reproduced without written permission. SERVICE CENTERS – GLOBAL FOOTPRINT
40 This information is property of Embraer and can not be used or reproduced without written permission.
PRODUCTS AND SOLUTIONS IN MORE THAN 60 COUNTRIES
42 This information is property of Embraer and can not be used or reproduced without written permission. INTEGRATED PORTFOLIO
ISR SOLUTIONS LIGHT ATTACK AND MODERNIZATION TACTICAL MILITARY TRANSPORT ADVANCED TRAINING PROGRAMS TRANSPORT AIRCRAFT
PARTNERSHIPS
C4I RADAR SATELLITE LAND SYSTEMS SERVICES • C2 & C4I SYSTEMS • REMOTE SENSING • SATELLITE GEOSTATIONARY • LAND DEFENSE SYSTEMS • MRO • AIRBORNE SYSTEMS OF DEFENSE AND INTEGRATION • AERIAL SURVEILLANCE COMMUNICATIONS (SGDC) • AEROSTRUCTURES • SIMULATION RADAR • SISFRON IMPLEMENTATION • CONTROL SYSTEMS • AIR TRAFFIC SYSTEM 100% 100% 51% 100% 65%
43 This information is property of Embraer and can not be used or reproduced without written permission. EMBRAER DEFENSE & SECURITY RESULTS
REVENUES EVOLUTION (US$ MILLION) BACKLOG EVOLUTION (US$ BILLION)
23% 19% 17% 15% 15% 14% 13% 9% 8% 6% 7% 5.5 1,456 4.7 4.5 1,197 1,056 3.3 3.3 3.4 3.6 933 3.2 852 811 670 505 499 1.5 346 1.1 1.0 227
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
REVENUES PARTICIPATION (%)
44 This information is property of Embraer and can not be used or reproduced without written permission. REVENUE BREAKDOWN BY PRODUCT
2016 2017 ESTIMATE
SPECIAL MODERNIZATION MISSION SPECIAL MODERNIZATION MISSION SERVICES, PARTS, MRO C4I, SATELLITE, SERVICES, LAND SYSTEMS* PARTS, MRO C4I, SATELLITE, LAND SYSTEMS*
LIGHT ATTACK LIGHT ATTACK COMBAT COMBAT
KC-390 KC-390
* Atech, Bradar, Savis, Visiona Ref.: Dec, 2016
45 This information is property of Embraer and can not be used or reproduced without written permission. KC-390
BRAZIL: 28
COLOMBIA: 12
ARGENTINA: 6
CHILE: 6
PORTUGAL: 6
CZECH REP.: 2 ADDRESSABLE MARKET: ~2,700 AIRCRAFT
• NEW TACTICAL MILITARY TRANSPORT AND TANKER AIRCRAFT • BRAZILIAN GOVERNMENT AND EMBRAER SIGNED CONTRACT FOR 28 KC-390 • OTHER FIVE LOIs (32 AIRCRAFT) • CERTIFICATION EXPECTED BY 2H2017 • FIRST DELIVERY TO BRAZILIAN AIR FORCE IN 1H2018 • NEARLY 90% OF PROGRAM DEVELOPMENT COMPLETED • TWO PROTOTYPES PERFORMING FLIGHT TEST CAMPAIGN (600+ FLIGHT HOURS) • PARTNERSHIP WITH BOEING TO MARKET AND SUPPORT THE KC-390
46 This information is property of Embraer and can not be used or reproduced without written permission. KC-390 – MARKET OVERVIEW (10 TO 30 TONS)
18% 34 YEARS 34% 25 YEARS 9% 36 YEARS 20% 32 YEARS 7%* 12% 35 YEARS** 37 YEARS
CURRENT FLEET ~ 2,700 AIRCRAFT * Fleet distribution ** Fleet average age WORLD’S AIRLIFT AVERAGE AGE IS AT 31.5 MOST SHALL BE REPLACED OVER THE NEXT 20 YEARS
47 This information is property of Embraer and can not be used or reproduced without written permission. SUPER TUCANO
BRAZIL: 99 COLOMBIA: 25 DOMINICAN REPUBLIC: 8 CHILE: 12 ECUADOR: 18 INDONESIA: 16 MAURITANIA: 2 BURKINA FASO: 3 ANGOLA: 6 USA: 21 FIRM ORDERS: ~230 AIRCRAFT MALI: 6 DELIVERIES: ~ 200 AIRCRAFT GHANA: 5 LEBANON: 6 ADDRESSABLE MARKET: ~400 AIRCRAFT UNDISCLOSED: 2 CURRENT LEADER WITH MORE THAN 50% MARKET-SHARE
48 This information is property of Embraer and can not be used or reproduced without written permission. BRAZILIAN ARMY PRIORITIES
SISFRON SATELLITE
INTEGRATED BORDERS MONITORING SYSTEM BRAZILIAN GEOSTATIONARY DEFENSE AND COMMUNICATION SATELLITE PROGRAM (SGDC)
FIRST PHASE: US$ 420 MILLION TOTAL ESTIMATE: US$ 4 BILLION TOTAL ESTIMATE: US$ 400 MILLION
COMPRISING RADARS, COMMUNICATION NETWORKS, C4I, PARTICIPATION IN THE FIRST BRAZILIAN GEOSTATIONARY SATELLITE UNMANNED AIR VEHICLES (UAV) AND ARMORED VEHICLES SUCCESSFUL LAUNCH ON MAY 2017
49 This information is property of Embraer and can not be used or reproduced without written permission. NEW BRAZILIAN FIGHTER (F-39 GRIPEN)
BRAZILIAN GOVERNMENT CONTRACTED SAAB TO SUPPLY 36 GRIPEN NG FIGHTER JET
CONTRACT BETWEEN EMBRAER AND SAAB FINALIZED (EFFECTIVE AND RUNNING)
GROUP OF 80+ BRAZILIAN ENGINEERS IN SWEDEN FOR TECHNOLOGY TRANSFERING
GRIPEN DESIGN AND DEVELOPMENT NETWORK INAUGURATED IN GPX SITE IN BRAZIL
50 This information is property of Embraer and can not be used or reproduced without written permission. FINANCIAL RESULTS NET REVENUES US$ MILLION
2,028 1,514 1,309 1,366 1,032 1,026 857 927 711 636
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2017 OUTLOOK: US$ 5.7 – 6.1 BILLION 2017 OUTLOOK: US$ 3.25 – 3.40 BILLION
670 319 402 367 189 210 216 293 226 156
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 2017 OUTLOOK: US$ 1.60 – 1.75 BILLION 2017 OUTLOOK: US$ 0.80 – 0.90 BILLION
52 This information is property of Embraer and can not be used or reproduced without written permission. SG&A EXPENSES US$ MILLION
140 147 120 125 39 48 114 33 44 43
101 99 87 81 71
1Q16 2Q16 3Q16 4Q16 1Q17
G&A EXPENSES SELLING EXPENSES
53 This information is property of Embraer and can not be used or reproduced without written permission. ADJUSTED EBIT US$ MILLION
12.1%
6.5% 6.3% INCLUDES NON 5.3% RECURRING ITEMS: 3.0% FCPA SETTLEMENT VOLUNTARY DISMISSAL REPUBLIC AIRWAYS 246 1Q17: US$ (8) MI 4Q16: US$ 30 MI 3Q16: US$ (124) MI 95 86 73 2Q16: US$ (200) MI -9.3% -1.9% 13.6% 31 2.3% (127) (29) 277 23 1Q16 2Q16 3Q16 4Q16 1Q17
EBIT EBIT MARGIN
2017 OUTLOOK: US$ 450 – 550 MILLION | 8.0% – 9.0%
54 This information is property of Embraer and can not be used or reproduced without written permission. ADJUSTED EBITDA US$ MILLION
17.2%
12.2% 11.7% INCLUDES NON 10.5% 10.1% RECURRING ITEMS: FCPA SETTLEMENT VOLUNTARY DISMISSAL REPUBLIC AIRWAYS 348 1Q17: US$ (8) MI 4Q16: US$ 30 MI 178 3Q16: US$ (124) MI 160 144 103 2Q16: US$ (200) MI -4.1% 3.6% 18.7% 9.3% (56) 54 379 96 1Q16 2Q16 3Q16 4Q16 1Q17
EBITDA EBITDA MARGIN
2017 OUTLOOK: US$ 770 – 890 MILLION | 13.5% – 14.5%
55 This information is property of Embraer and can not be used or reproduced without written permission. ADJUSTED NET INCOME (EX. EXTRAORDINARY ITEMS) US$ MILLION
10.3%
3.2% 2.6% 2.3%
-0.1%
209
44 (2) 7.9% -7.3% 39 -2.2% 9.6% 23 4.1% 104 (99) (34) 195 43 1Q16 2Q16 3Q16 4Q16 1Q17
NET INCOME NET MARGIN INCLUDES PROVISIONS
56 This information is property of Embraer and can not be used or reproduced without written permission. INVESTMENTS US$ MILLION YTD: 72
400
200
8 50 31 33 RESEARCH DEVELOPMENT CAPEX
2017 YTD 2017 OUTLOOK
2017 OUTLOOK: US$ 650 MILLION
57 This information is property of Embraer and can not be used or reproduced without written permission. ADJUSTED FREE CASH FLOW US$ MILLION
285
(21) (202) (199)
(422)
1Q16 2Q16 3Q16 4Q16 1Q17
1Q16 2Q16 3Q16 4Q16 1Q17 NET CASH GENERATED (USED) BY OPERATING ACTIVITIES (14) (183) 235 498 * (48) * NET ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (76) (112) (126) (75) (35) ADDITIONS TO INTANGIBLE ASSETS (111) (127) (130) (137) (117) FREE CASH FLOW (202) (422) (21) 285 (199) * INCLUDES ADJUSTMENT FOR NON-RECURRING CASH IMPACTS OF US$ 248 MILLION IN 4Q16 AND US$ 17 MILLION IN 1Q17
2017 OUTLOOK: > US$(150) MILLION
58 This information is property of Embraer and can not be used or reproduced without written permission. INDEBTEDNESS PROFILE | NET CASH
INDEBTEDNESS MATURITY NET CASH (DEBT) US$ MILLION
5.9 6.3 5.7 5.5 5.3 (220)
14% 13% 13% 14% 8% (575) (613) (653) (806)
86% 87% 87% 86% 92%
1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17
LONG-TERM SHORT-TERM LOANS AVERAGE MATURITY (YEARS)
TOTAL DEBT: US$ 4.29 BILLION TOTAL CASH: US$ 3.48 BILLION
JAN 2017: ISSUANCE OF US$ 750 MILLION IN NOTES DUE IN 2027 (COUPON 5.4%)
59 This information is property of Embraer and can not be used or reproduced without written permission. 2017 OUTLOOK 2017 OUTLOOK
70 - 80 US$ 0.80 – 0.90 BI 97 - 102 35 - 45 105 - 125 OTHER US$ 3.25 – 3.40 BI US$ 1.60 – 1.75 BI US$ 50 MI
US$ 5.7 – 6.1 BI NET REVENUES
61 This information is property of Embraer and can not be used or reproduced without written permission. 2017 OUTLOOK
EBIT EBITDA FCF
US$ 450 – 550 MI US$ 770 – 890 MI > US$(150) MI
MARGIN MARGIN 8.0% – 9.0% 13.5% – 14.5%
RESEARCH US$ 50 MI NVESTMENTS I DEVELOPMENT US$ 400 MI US$ 650 MI CAPEX US$ 200 MI
62 This information is property of Embraer and can not be used or reproduced without written permission. [email protected] ri.embraer.com.br Embraer RI +55 12 3927 1000 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.