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3rd QUARTER 2013
EARNINGS RESULTS

Job Position

October 31, 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 forwardlooking 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
Corporate Highlights
Embraer listed for the 4th consecutive year
on the Dow Jones Sustainability Index.
As part of Embraer’s ongoing liability management, the company completed an
exchange offer in which principal value of Notes with maturity in 2017 and 2020
were exchanged for Notes with maturity in 2023.
Embraer elected for the 5th consecutive year as one of the best
companies to work for in Brazil and for 2nd consecutive year as
the best Brazilian company in people management.
Embraer elected as one of the best companies for shareholders in Brazil.

Embraer was chosen for the 15th consecutive year
as one of the most transparent companies in Brazil.
Embraer was awarded as the best company in its sector and the
best in social responsibility by two major Brazilian publications.

3
Highlights
Delivery of 19 E-Jets in 3Q13 reaching 966 total deliveries since EIS.

Delivery of the 1,000th E-Jet production aircraft to Republic
Airlines, which is being operated on behalf of American Eagle.

KLM Cityhopper added six E190 jets to its fleet.

Belavia Airways signed a firm contract for two E195s.

Aurigny Air Services signed a firm order for one E195 jet.

4
Highlights
Delivery of 25 executive jets in 3Q13 (21 light jets and 4 large jets).
First China-assembled Legacy 650 successfully completed its maiden flight.

For the 2nd consecutive year, Embraer Executive Jets earned high honors
in the Aviation International News (AIN) Product Support 2013 survey.
Legacy 500 flight test campaign advances as planned, with 3 prototypes
accomplishing more than 650 flight hours. Legacy 450 development is on
track with the beginning of the first prototype assembly. Enhancements in
range, cabin space and interior were also incorporated into the program.
Jackie Chan was announced as the launch
customer of the Legacy 500 in China.
Launching of the new Lineage 1000E at NBAA.

5
Highlights
Embraer Defense & Security delivered the first modernized
A-1 (A-1M) fighter jet to the Brazilian Air Force.
First flight of the Brazilian Navy´s AF-1 (A-4 Skyhawk).
The modernization program continues on track.

Embraer Defense & Security acquired remaining 50% of Atech´s shares.
Embraer on schedule with Jacksonville A-29 Super Tucano
assembly facility with first deliveries scheduled for mid-2014.

Visiona selected the suppliers for the satellite and the launcher for
the Geostationary Defense and Strategic Communication Satellite.

Orbisat Indústria e Aerolevantamento S/A changed to Bradar Indústria S/A and announced
contracts in the areas of radar and remote surveillance of approximately US$ 22 million.

6
Firm Order Backlog
US$ Billion

17.1
12.4

4Q12

1Q13

2Q13

3Q13

13.3

3Q12

7

12.5

17.8
Aircraft Deliveries
Commercial Jets

Executive Jets

37
27
23

22
17

19

23
11

8

16

4

2
3Q12

4Q12

1Q13

2Q13

3Q13

3Q12

4Q12

6

4

1Q13

2Q13

3Q13

Light Jets - Phenom
2013 deliveries estimates
• 90 - 95 commercial jets
• 25 - 30 executive large jets
• 80 - 90 executive light jets

8

21

Large Jets - Legacy & Lineage
Net Revenues by Segment – 2013 Outlook
EMBRAER: US$ 5.90 – 6.40 Billion

Commercial Aviation: US$ 3.20 – 3.35 Billion

2013 YTD: 3,931

2013 YTD: 2,187

1,898
1,557

1,402
1,086

3Q12

4Q12

1Q13

1,288
956

2Q13

3Q13

Executive Aviation: US$ 1.40 – 1.60 Billion

3Q12

864

4Q12

640
1Q13

860

2Q13

687
3Q13

Defense & Security: US$ 1.25 – 1.35 Billion

2013 YTD: 860

2013 YTD: 828

712
370

3Q12

9

315

257

297

252

309

267

2Q13

3Q13

3Q12

4Q12

1Q13

2Q13

3Q13

175

167
4Q12

1Q13
Net Revenues
US$ Million

R$ Million
2013 YTD: 3,931

2013 YTD: 8,340

3,913

1,898
1,557

1,402

1,288

1,086

3Q12

4Q12

1Q13

2Q13

3Q13

3,240

2,845
2,157

3Q12

4Q12

2013 Outlook: US$ 5.9 – 6.4 Billion
10

2,944

1Q13

2Q13

3Q13
SG&A Expenses
US$ Million

R$ Million
2013 YTD: 499

2013 YTD: 1,055
449

218

170

75

161

163

344

51

120

121

112

224

2Q13

3Q13

3Q12

54

59

53

143
111

3Q12

175

108

4Q12

1Q13

361

373

321
111

117

250

256

2Q13

3Q13

106

295

G&A Expenses

11

154

215

4Q12

Selling Expenses

1Q13
Income from Operations
US$ Million

R$ Million
2013 YTD: 251 / 6.4%

2013 YTD: 538 / 6.4%

12.0%

12.0%
8.8%

8.7%
7.2%

5.9%

7.2%

5.9%
3.7%

3.6%

469

228
135

285

205

101

173

76

79

40
3Q12

4Q12

1Q13

2Q13

3Q13

EBIT

2013 Outlook:
12

3Q12

4Q12

1Q13

EBIT Margin

EBIT: US$ 530 – 610 Million
EBIT Margin: 9.0% – 9.5%

2Q13

3Q13
EBITDA
US$ Million

R$ Million
2013 YTD: 460 / 11.7%

2013 YTD: 987 / 11.8%

16.3%

16.3%

13.1%

12.0%

12.1%

638

310

427

204

168

156

340

1Q13

2Q13

3Q13

EBITDA

3Q12

4Q12

1Q13

EBITDA Margin

EBITDA: US$ 770 – 900 Million
2013 Outlook:
EBITDA Margin: 13.0% – 14.0%
13

359

201

100

4Q12

12.2%

9.3%

9.2%

3Q12

13.2%

12.0%

2Q13

3Q13
Net Income
US$ Million
2013 YTD: 78 / 2.0%

2013 YTD: 170 / 2.0%

6.5%

6.5%

4.7%

4.1%

4.6%

4.0%

2.8%

2.9%

-0.3%

-0.3%
254

123
65

53

133

119
62

30
(5)
3Q12

4Q12

1Q13

2Q13

(10)
3Q13

Net Income

14

3Q12

4Q12

Net Margin

1Q13

2Q13

3Q13
Inventories
US$ Million

2,780
2,585

2,510

2,523

1Q13

2Q13

2,157

3Q12

15

4Q12

3Q13
Free Cash Flow
2013 YTD: (283)

US$ Million
439

202
186
102

2
(30)
(50)
(58)

(138)

(83)
(163)

(106)

(125)

(50)
(68)

(84)

(60)

(80)

2Q13

3Q13

(75)

(201)
3Q12

4Q12

1Q13
3Q12

Net cash generated (used) by operating activities*
Additions to property, plant and equipment
Additions to intangible assets

Free Cash Flow
* Net of Financial assets adjustment

16

(30)
(50)
(58)

(138)

4Q12
439
(163)
(75)

202

1Q13
(83)
(50)
(68)

(201)

2Q13
186
(125)
(60)

2

3Q13

YTD13

102
(106)
(80)

206
(281)
(208)

(84)

(283)
Investments
2013 YTD: 389
US$ Million

300

49

183

180
145

100
61
PESQUISA

DESENVOLVIMENTO

CAPEX

2013 YTD
2013 Outlook
Contracted CAPEX (mainly for Defense & Security Programs)

2013 Outlook: US$ 580 Million

17
Indebtedness Profile / Net Cash/Debt
Indebtedness Maturity

17%
6.0

83%

16%

15%
5.1

5.8

84%

85%

Net Cash/Debt – US$ Million

4%

6%

6.3
5.4

94%

309

96%

123

98
58
(20)

3Q12

4Q12

1Q13

2Q13

3Q13

3Q12

4Q12

1Q13

2Q13

3Q13

Long-term
Short-term
Loans Average Maturity (Years)

Total Debt 3Q13
18

US$ 2.19 Billion

Total Cash 3Q13

US$ 2.17 Billion
Conference Call 3Q13.

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Conference Call 3Q13.

  • 1. 3rd QUARTER 2013 EARNINGS RESULTS Job Position October 31, 2013
  • 2. 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 forwardlooking 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
  • 3. Corporate Highlights Embraer listed for the 4th consecutive year on the Dow Jones Sustainability Index. As part of Embraer’s ongoing liability management, the company completed an exchange offer in which principal value of Notes with maturity in 2017 and 2020 were exchanged for Notes with maturity in 2023. Embraer elected for the 5th consecutive year as one of the best companies to work for in Brazil and for 2nd consecutive year as the best Brazilian company in people management. Embraer elected as one of the best companies for shareholders in Brazil. Embraer was chosen for the 15th consecutive year as one of the most transparent companies in Brazil. Embraer was awarded as the best company in its sector and the best in social responsibility by two major Brazilian publications. 3
  • 4. Highlights Delivery of 19 E-Jets in 3Q13 reaching 966 total deliveries since EIS. Delivery of the 1,000th E-Jet production aircraft to Republic Airlines, which is being operated on behalf of American Eagle. KLM Cityhopper added six E190 jets to its fleet. Belavia Airways signed a firm contract for two E195s. Aurigny Air Services signed a firm order for one E195 jet. 4
  • 5. Highlights Delivery of 25 executive jets in 3Q13 (21 light jets and 4 large jets). First China-assembled Legacy 650 successfully completed its maiden flight. For the 2nd consecutive year, Embraer Executive Jets earned high honors in the Aviation International News (AIN) Product Support 2013 survey. Legacy 500 flight test campaign advances as planned, with 3 prototypes accomplishing more than 650 flight hours. Legacy 450 development is on track with the beginning of the first prototype assembly. Enhancements in range, cabin space and interior were also incorporated into the program. Jackie Chan was announced as the launch customer of the Legacy 500 in China. Launching of the new Lineage 1000E at NBAA. 5
  • 6. Highlights Embraer Defense & Security delivered the first modernized A-1 (A-1M) fighter jet to the Brazilian Air Force. First flight of the Brazilian Navy´s AF-1 (A-4 Skyhawk). The modernization program continues on track. Embraer Defense & Security acquired remaining 50% of Atech´s shares. Embraer on schedule with Jacksonville A-29 Super Tucano assembly facility with first deliveries scheduled for mid-2014. Visiona selected the suppliers for the satellite and the launcher for the Geostationary Defense and Strategic Communication Satellite. Orbisat Indústria e Aerolevantamento S/A changed to Bradar Indústria S/A and announced contracts in the areas of radar and remote surveillance of approximately US$ 22 million. 6
  • 7. Firm Order Backlog US$ Billion 17.1 12.4 4Q12 1Q13 2Q13 3Q13 13.3 3Q12 7 12.5 17.8
  • 8. Aircraft Deliveries Commercial Jets Executive Jets 37 27 23 22 17 19 23 11 8 16 4 2 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 6 4 1Q13 2Q13 3Q13 Light Jets - Phenom 2013 deliveries estimates • 90 - 95 commercial jets • 25 - 30 executive large jets • 80 - 90 executive light jets 8 21 Large Jets - Legacy & Lineage
  • 9. Net Revenues by Segment – 2013 Outlook EMBRAER: US$ 5.90 – 6.40 Billion Commercial Aviation: US$ 3.20 – 3.35 Billion 2013 YTD: 3,931 2013 YTD: 2,187 1,898 1,557 1,402 1,086 3Q12 4Q12 1Q13 1,288 956 2Q13 3Q13 Executive Aviation: US$ 1.40 – 1.60 Billion 3Q12 864 4Q12 640 1Q13 860 2Q13 687 3Q13 Defense & Security: US$ 1.25 – 1.35 Billion 2013 YTD: 860 2013 YTD: 828 712 370 3Q12 9 315 257 297 252 309 267 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 175 167 4Q12 1Q13
  • 10. Net Revenues US$ Million R$ Million 2013 YTD: 3,931 2013 YTD: 8,340 3,913 1,898 1,557 1,402 1,288 1,086 3Q12 4Q12 1Q13 2Q13 3Q13 3,240 2,845 2,157 3Q12 4Q12 2013 Outlook: US$ 5.9 – 6.4 Billion 10 2,944 1Q13 2Q13 3Q13
  • 11. SG&A Expenses US$ Million R$ Million 2013 YTD: 499 2013 YTD: 1,055 449 218 170 75 161 163 344 51 120 121 112 224 2Q13 3Q13 3Q12 54 59 53 143 111 3Q12 175 108 4Q12 1Q13 361 373 321 111 117 250 256 2Q13 3Q13 106 295 G&A Expenses 11 154 215 4Q12 Selling Expenses 1Q13
  • 12. Income from Operations US$ Million R$ Million 2013 YTD: 251 / 6.4% 2013 YTD: 538 / 6.4% 12.0% 12.0% 8.8% 8.7% 7.2% 5.9% 7.2% 5.9% 3.7% 3.6% 469 228 135 285 205 101 173 76 79 40 3Q12 4Q12 1Q13 2Q13 3Q13 EBIT 2013 Outlook: 12 3Q12 4Q12 1Q13 EBIT Margin EBIT: US$ 530 – 610 Million EBIT Margin: 9.0% – 9.5% 2Q13 3Q13
  • 13. EBITDA US$ Million R$ Million 2013 YTD: 460 / 11.7% 2013 YTD: 987 / 11.8% 16.3% 16.3% 13.1% 12.0% 12.1% 638 310 427 204 168 156 340 1Q13 2Q13 3Q13 EBITDA 3Q12 4Q12 1Q13 EBITDA Margin EBITDA: US$ 770 – 900 Million 2013 Outlook: EBITDA Margin: 13.0% – 14.0% 13 359 201 100 4Q12 12.2% 9.3% 9.2% 3Q12 13.2% 12.0% 2Q13 3Q13
  • 14. Net Income US$ Million 2013 YTD: 78 / 2.0% 2013 YTD: 170 / 2.0% 6.5% 6.5% 4.7% 4.1% 4.6% 4.0% 2.8% 2.9% -0.3% -0.3% 254 123 65 53 133 119 62 30 (5) 3Q12 4Q12 1Q13 2Q13 (10) 3Q13 Net Income 14 3Q12 4Q12 Net Margin 1Q13 2Q13 3Q13
  • 16. Free Cash Flow 2013 YTD: (283) US$ Million 439 202 186 102 2 (30) (50) (58) (138) (83) (163) (106) (125) (50) (68) (84) (60) (80) 2Q13 3Q13 (75) (201) 3Q12 4Q12 1Q13 3Q12 Net cash generated (used) by operating activities* Additions to property, plant and equipment Additions to intangible assets Free Cash Flow * Net of Financial assets adjustment 16 (30) (50) (58) (138) 4Q12 439 (163) (75) 202 1Q13 (83) (50) (68) (201) 2Q13 186 (125) (60) 2 3Q13 YTD13 102 (106) (80) 206 (281) (208) (84) (283)
  • 17. Investments 2013 YTD: 389 US$ Million 300 49 183 180 145 100 61 PESQUISA DESENVOLVIMENTO CAPEX 2013 YTD 2013 Outlook Contracted CAPEX (mainly for Defense & Security Programs) 2013 Outlook: US$ 580 Million 17
  • 18. Indebtedness Profile / Net Cash/Debt Indebtedness Maturity 17% 6.0 83% 16% 15% 5.1 5.8 84% 85% Net Cash/Debt – US$ Million 4% 6% 6.3 5.4 94% 309 96% 123 98 58 (20) 3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13 Long-term Short-term Loans Average Maturity (Years) Total Debt 3Q13 18 US$ 2.19 Billion Total Cash 3Q13 US$ 2.17 Billion