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Cargo do Apresentador EARNINGS RESULTS 4 th QUARTER & FY 2013 February 26, 2014.

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Presentation on theme: "Cargo do Apresentador EARNINGS RESULTS 4 th QUARTER & FY 2013 February 26, 2014."— Presentation transcript:

1 Cargo do Apresentador EARNINGS RESULTS 4 th QUARTER & FY 2013 February 26, 2014

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.

3 3 Financial Highlights The Company met its 2013 outlook for Net Revenues, Margins and Aircraft Deliveries. Total firm order backlog reached US$ 18.2 billion, its highest level in five years. Net Revenues reached US$ 6,235 million in 2013 and US$ 2,304 million in 4Q13, representing the highest ever quarterly revenues for the Company. 2013 EBIT and EBIT Margin were US$ 713 million and 11.4%. 2013 EBITDA and EBITDA Margin were US$ 1,004 million and 16.1%. Free Cash Flow was US$ 213 million and Net Cash reached US$ 429 million in 2013. As part of Embraer’s ongoing liability management, the Company completed an exchange offer of Notes extending their maturity until 2023.

4 4 Corporate Highlights Embraer listed for the 4th consecutive year on the Dow Jones Sustainability Index and also on the ISE in Brazil. Embraer was awarded and recognized by many renowned publications and institutions as one of the best companies in Brazil and abroad in several categories. Embraer joined the World Economic Forum Partnering Against Corruption Initiative (PACI), a global, multi-industry, multi-stakeholder anti-corruption initiative.

5 Delivery of 90 E-Jets in 2013 of which 32 were in 4Q13. 349 new E-Jets (E1&E2) were sold in 2013, reaching 1,427 aircraft and a customer base of 65 airlines in 45 countries. Highlights Embraer launched the E-Jets E2 Program which to date have reached 200 firm orders plus 200 options. 5

6 6 Highlights Delivery of the 1,000th E-Jet production aircraft to Republic Airlines, which is being operated on behalf of American Eagle. Embraer received American Airlines’ order for up to 150 E175 jets (60 firm plus 90 options). Saratov Airlines became the first Russian E-Jet operator with two E195. Air Costa (India) placed a firm order for 50 E-Jets E2 plus 50 options of the E190-E2 and E195-E2 models. (1Q14)

7 Delivery of 119 executive jets in 2013 (90 light jets and 29 large jets). 53 jets delivered in 4Q13. Phenom family surpassed 470 aircraft deliveries to 29 countries. 7 Highlights Legacy 450 first flight in December 2013. EIS expected in 2015. Legacy 500 reached more than 1,100 hours in flight test campaign. EIS is scheduled for first half of 2014. Phenom 300 was the most delivered executive jet in the industry in 2013.

8 Expansion of authorized service center network with six new facilities added in 2013, totaling six wholly-owned and 70 authorized service centers. 8 Highlights Embraer Executive Jets won the second place ranking for the second consecutive year in the product support survey from Aviation International News (AIN). Launch of the new Lineage 1000E. First China-assembled Legacy 650 was delivered to first client.

9 In 2013, Bradar delivered seven Saber M60 low altitude surveillance radars to the Brazilian Armed Forces which now has 22 in operation. It also signed a contract to supply one Sentir M20 radar to the Brazilian Army. In the air traffic segment, Atech signed a contract to implement the SAGITARIO system in several regions of Brazil. 9 Highlights Defense & Security revenues grew 15% in 2013 and reached US$ 1.2 billion. Visiona signed contract for the Geostationary Defense and Strategic Communication Satellite.

10 Embraer Defense & Security finished adapting the hangar of the Jacksonville, Florida plant to start production of the Super Tucano. First delivery for the USAF LAS Program scheduled for mid 2014. 10 Highlights Embraer Defense & Security delivered the second modernized A-1 (A-1M) fighter jet to the Brazilian Air Force and performed the first flight of the two-seater prototype. KC-390 development program ongoing with the beginning of production of parts for assembly of the first prototype, which will fly for the first time in late 2014. Delivery of the final three Super Tucano aircraft to the National Air Force of Angola.

11 Aircraft Deliveries Large Jets - Legacy & Lineage Light Jets - Phenom Commercial JetsExecutive Jets 11 2013 deliveries estimates 90 - 95 commercial jets 25 - 30 executive large jets 80 - 90 executive light jets

12 Firm Order Backlog 12 US$ Billion Commercial Aviation Defense & Security Executive Aviation

13 Net Revenues 13 2013 Outlook: US$ 5.9 – 6.4 Billion US$ Million

14 Revenues Breakdown 14 Net Revenues by SegmentNet Revenues by Region Commercial Aviation Executive Aviation Others Defense & Security Revenues US$ Billion 5.79 6.18 6.24 Revenues US$ Billion 5.79 6.18 6.24 North America Brazil Europe Asia Pacific South & Central America Africa & Middle East China

15 15 Net Revenues Net Revenues - US$ Million Net Revenues - R$ Million 2013: 6,235 2013: 13,636

16 16 Expenses / Net Revenues US$ Million Selling Expenses G&A Expenses SG&A Expenses

17 17 SG&A Expenses SG&A Expenses - US$ Million SG&A Expenses - R$ Million 378 449 321 373 361 2013: 1,433 Selling Expenses G&A Expenses 2013: 664 165 218 161 163 175

18 18 EBIT: US$ 530 – 610 Million EBIT Margin: 9.0% – 9.5% 2013 Outlook: Income from Operations US$ Million 9.1% 566 EBIT EBIT Margin Excluding AMR effect

19 19 Income from Operations Income from Operations - US$ MillionIncome from Operations - R$ Million 2013: 713 / 11.4% 2013: 1,606 / 11.8% 316 723 13.7% EBIT EBIT Margin Excluding AMR effect

20 13.8% 20 EBITDA: US$ 770 – 900 Million EBITDA Margin: 13.0% – 14.0% 2013 Outlook: US$ Million EBITDA 857 EBITDA EBITDA Margin Excluding AMR effect

21 17.3% 17.2% 21 EBITDA EBITDA - US$ MillionEBITDA - R$ Million 2013: 1,004 / 16.1% 2013: 2,239 / 16.4% 397 909 EBITDA EBITDA Margin Excluding AMR effect

22 22 Net Margin Net Income US$ Million

23 23 Net Income Net Income - US$ MillionNet Income - R$ Million 2013: 342 / 5.5% 2013: 778 / 5.7% Net Margin Net Income

24 24 EPADS and Pay Out EPADS Pay Out US$

25 25 Inventories US$ Million

26 Free Cash Flow 26 2013: 213 * Net of Financial assets adjustment US$ Million

27 Investments 27 2013 Outlook: US$ 580 Million 2013 Outlook 2013 US$ Million Total Investments

28 28 Indebtedness Profile / Net Cash Indebtedness Maturity Net Cash/Debt - US$ Million Long-term Short-term Loans Average Maturity (Years) US$ 2.19 Billion Total Debt 4Q13 Total Cash 4Q13 US$ 2.62 Billion

29 2014 OUTLOOK

30 EBITDA Margin 13.0% – 14.0% 2014 Consolidated Outlook Net Revenues EBITDA US$ 6.0 – 6.5 Billion US$ 780 – 910 Million EBIT Margin 9.0% – 9.5% EBIT US$ 540 – 620 Million 30 Free Cash Flow Positive Low Double Digits

31 31 Net Revenues US$ 3.20 – 3.40 Billion Deliveries: 92 to 97 E-jets Other Revenues US$ 100 Million US$ 1.50 – 1.70 Billion Net Revenues US$ 1.20 – 1.30 Billion 2014 Business Units Outlook 80 to 90 light jets 25 to 30 large jets Deliveries:

32 2014 Investment Outlook TOTAL INVESTMENTS: US$ 650 Million Research US$ 80 Million Development US$ 320 Million CAPEX US$ 250 Million 32

33 Investor Relations Phone: +55 12 3927 4404 investor.relations@embraer.com.br www.embraer.com


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