EMBRAER S.A. - Antonio Garcia, CFO
- Guilherme Paiva, CFA, Head IR and M&A
- Patrícia Mc Knight, IR manager
- Viviane Pinheiro, IR senior associate
- Eliane Fanis, IR senior associate
- Marilia Saback, IR senior associate
- Marcelo Cuperman, IR analyst
- investor.relations@embraer.com.br
EMBRAER AT-A-GLANCE
World Leading Manufacturer
of jets up to 150-seats
1,780+ Executive Jets
delivered in more than 70 countries
170+ Airlines Customers
in more than 90 countries
60+ Armed Forces
as clients in Defense & Security
18,000+ Employees
across the globe
Ratings | BB+ | |
BBB- | Ba1 | |
Positive outlook | ||
Source: Company | Note: (1) 2023FY - does not include BU Others ; (2) 4Q23
Embraer's Business Segments
Executive | Defense | Commercial | Services | |
& | EVE | |||
Aviation | Security | Aviation | & Support | |
Revenue | EBIT | Firm Backlog by | ||||||||
by Segment¹ | ||||||||||
Segment² | ||||||||||
by Region¹ | ||||||||||
2% 2% | ||||||||||
4% | 17% | |||||||||
9% | 23% | |||||||||
33% | ||||||||||
22% US$5.3bn | 55% US$350m | US$18.7bn | ||||||||
62% | 13% | |||||||||
7% | 47% | |||||||||
5% | ||||||||||
EBIT Margins | ||||||||||
North America | 5% | 10% | 15% | |||||||
Europe | Executive | |||||||||
Brazil | ||||||||||
Asia Pacific | D&S | |||||||||
Latin America | Commercial | |||||||||
Others | S&S | |||||||||
2
RIGHT TO WIN - HARVEST SEASON
Financial turnaround completed & enterprise efficiency
+
Modern and competitive portfolio of products
=
Revenue and profitability growth
3
WORLD-CLASS ENGINEERING | ||||||
in the last decade | ||||||
Best inclasssproductsdeveloped in the last decade | ||||||
eVTOL | ||||||
Phenom 100EX | ||||||
Praetor Jets | ||||||
C-390 | ||||||
Millennium | ||||||
E-Jets E2 | ||||||
E-Jets | Phenom 300E | Next | ||||
generation | ||||||
UAM | ||||||
2005 | 2017 | 2018 | 2019 | 2019 | 2023 | 2026 |
4 |
TURNAROUND COMPLETED | US$m | ||||||||||
Net Revenue | Adjusted EBITDA | ||||||||||
6,000 - 6,400 | |||||||||||
5,463 | 5,268 | Adj. EBITDA Margin | 10.1% | 10.7% | |||||||
Adj. EBITDA | 8.6% | ||||||||||
4,540 | |||||||||||
4,197 | |||||||||||
3,771 | |||||||||||
2.0% | 2.2% | ||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2024E | 2019 | 2020 | 2021 | 2022 | 2023 | |
Adjusted EBIT | Adjusted Free Cash Flow | ||||||||||
Adj. EBIT Margin | 6.0% | 6.6% | 6.5% - 7.5% | ||||||||
Adj. EBIT | 4.0% | ||||||||||
-0.1% | 540 | 220 or better | |||||||||
307 | 318 | ||||||||||
2024E | -182 | -990 | 2024E | ||||||||
-2.7% | |||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
Note: Revenue, adjusted EBIT, adjusted EBITDA and FCF do not consider EVE | 5 | ||||||||||
RETURN ON INVESTED CAPITAL | |||||||||||
ROIC above WACC supported by improved operational and financial metrics | |||||||||||
9.8% | ~10% | ||||||||||
Embraer avg. | |||||||||||
cost of capital | 8.7% | 8.8% | |||||||||
7.0% | 6.8% | ||||||||||
6.0% | |||||||||||
4.9% | |||||||||||
3.9% | |||||||||||
2.5% | |||||||||||
-0.2% | |||||||||||
-1.5% | |||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024E |
6 |
IMPROVED | -914 | DELEVERAGING - US$ million | ||||||
LIQUIDITY | -1,562 | 20.7x | ||||||
Liquidity reinforced by | 4,448 | 4,027 | 3.9x | 2.3x | 1.4x | |||
better FCF & EBIT | ||||||||
3,203 | 2,886 | 562 | ||||||
363 | 459 | |||||||
1,695 | 1,407 | |||||||
1,033 | ||||||||
781 | 82 | |||||||
2020 | 2021 | 2022 | 2023 | 2020 | 2021 | 2022 | 2023 | |
Maturities 2023 | Gross Debt | Net Debt w/o Eve | Net Debt w/o Eve / Adj. EBITDA | |||||
US$m | Adj. EBITDA |
2,971
RCF | 650 | Reprofiling | Eve Loan | |||||||||
EVE¹ | 241 | |||||||||||
Maturities 2 | ||||||||||||
1,036 | 864 | 796 | ||||||||||
Cash 2,080 | 3 | |||||||||||
3 | 16 | |||||||||||
1,033 | 861 | |||||||||||
66 | 29 | 47 | 10 | 780 | ||||||||
1 | ||||||||||||
46 | 7 | 3 | ||||||||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029 | >2030 |
¹EVE's Cash = Cash and cash equivalents plus financial investments and intercompany loan receivable 2Maturities = Do not consider accrued interest and deferred costs
*All numbers from EVE are IFRS
7
ESG COMMITMENTS - PROGRESS IN 2023
Environmental
Product Use (Scope 3)
- Net-zeroAviation by 2050:
"Energia" aircraft concepts focused on hybrid electric and hydrogen electric
Praetor 600 and Phenom 300E 100% SAF flight tests
Operations (Scope 1+2)
- Carbon neutrality by 2040:
MoU with Raízen to produce SAF
100% of electricity from renewable sources in Brazil (starting in 2024)
Social
52% diverse hires in all entry level programs (target 50% by 2025)
11% of women in senior leadership positions (target 20% by 2025)
55 participants enrolled in the 3rd edition of the "Social Tech" training program - dedicated to women
Governance
Maintain the highest international standards of governance
8
SUSTAINABILITY - TECHNOLOGY APPLICABILITY | ||||||
The mission defines the architecture | ||||||
1-9 Pax | 10-19 | 20-49 | 50-99 | 100-149 | 150+ Pax | Wide- |
Pax | Pax | Pax | Pax | bodies | ||
Fully electric | ||||||
Hybrid-electric | ||||||
H2 fuel cell | ||||||
Dual fuel (LH2 + SAF) | ||||||
combustion | ||||||
100% SAF | ||||||
9 |
EXECUTIVE AVIATION
10
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Disclaimer
Embraer SA published this content on 18 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2024 22:28:01 UTC.
