Slide 1: Highlights
[1] HIGHLIGHTS · Embraer delivered 75 jets in 4Q23 , of which 25 were commercial aircraft, 49 were executive jets (30 light and 19 medium) and 1 was a military C-390 . In 2023 , the company delivered a total of 181 jets , of which 64 were commercial aircraft, 115 were executive jets (74 light and 41
Slide 2: Adjusted Net Income (loss) definition
2 Adjusted Net Income (loss) is a non-GAAP measure, calculated by adding Net Income attributable to Embraer Shareholders plus Deferred income tax and social contribution for the period, in addition to adjusting for non-recurring items. Under IFRS for Embraer’s Income Tax benefits (expenses) the Comp
Slide 3: 2024 Guidance
São Paulo, Brazil, March 18, 2024 - (B3: EMBR3, NYSE: ERJ). The company's operating and financial information is presented, except where otherwise stated, on a consolidated basis in United States dollars (US$) in accordance with IFRS. The financial data presented in this document as of and for the q
Slide 4: Revenue and gross margin
REVENUE and gross margin Consolidated revenue of US$5,269 million in 2023 represented an increase of 16% yoy, and it was explained by Defense & Security (25%), Commercial Aviation (20%), Executive Aviation (13%) and Services & Support (12%). Total revenues were within the US$5.2 to US$5.7 billion gu
Slide 5: Revenues by business segment
Q Executive Aviation revenues reached US$1,408 million, 13% higher yoy mainly explained by an increase in volumes. The gross margin dropped from 23.4% to 19.4% yoy because of product mix (proportionally more medium rather than light jets) and one-time tax benefits. Q Defense & Security revenues were
Slide 6: Adjusted EBIT
ADJUSTED EBIT The company’s reported results for 2023 are summarized in the table below.
Slide 7: Adjusted Net Income (loss) note
¹ Adjusted Net Income (loss) is a non-GAAP measure, calculated by adding Net Income attributable to Embraer Shareholders plus Deferred income tax and social contribution for the period, in addition to adjusting for non-recurring items. Under IFRS for Embraer’s Income Tax benefits (expenses) the Comp
Slide 8: Debt & Liability Management
DEBT & LIABILITY MANAGEMENT Embraer net debt without EVE declined to US$781 million in 4Q23, compared to US$1,357 million qoq and US$1,033 million yoy. The significant positive free cash flow generated in the quarter helps explain the sequential improvement in the company’s net debt position, as exp
Slide 9: Deleveraging
DELEVERAGING -uss mition in milions of U.Sdcllars Q) 7) FINANCIAL POSITION DATA oe Age Cash and cash equivalents: 1816.9 7,030.5 3.9% Financial investments 64.4 721.7 ‘Total cash position 24st 4,752.2 23x Loans short-term 308.5 116 Loans long-term 2g97 2.7829 Total loans position 3203.2 2,864.5 is a
Slide 10: Free Cash Flow
FREE CASH FLOW Adjusted free cash flow totaled US$318 million during 2023, and it surpassed the guidance for the year because of strong sales pre-down payments (PDPs) in 4Q23.
Slide 11: CAPEX
CAPEX Net additions to total PP&E were US$87.3 million in 4Q23, versus US$47.8 million in 4Q22. Of the quarterly total, CAPEX amounted to US$59.6 million, while additions of pool program spare parts reached US$30.3 million, and were partially offset by US$2.6 million of PP&E sales proceeds. The sequ
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Slide 13: Working Capital
WORKING CAPITAL Work-in-progress inventory decreased US$417.1 million qoq because of the greater number of 4Q23 deliveries, which was partially mitigated by growing contract liabilities (PDPs and deferred revenue), and supported solid cash flow generation towards year-end.
Slide 14: Total Backlog
Total Backlog The company’s backlog rose by US$1.2 billion yoy and reached a US$18.7 billion total in 2023 - the highest number recorded over the past 6 years. Services & Support were the highlight with a US$3.1 billion backlog, or US$400 million higher yoy and the highest level ever recorded. Meanw
Slide 15: Backlog chart
USS billion 18.7 Ws 174 173 a, 4022 10232023 30234023 Services & Support Il Executive Aviation defense & Security If Commercial Aviation
Slide 16: Executive Jets
Executive Jets Executive Aviation delivered 30 light and 19 medium jets, totaling 49 aircraft in 4Q23 and 115 in 2023, an increase of 13% compared to the same period in 2022, when 102 jets were delivered.
Slide 17: Commercial Aviation orders and certifications
In North America, Porter Airlines exercised its purchase rights to place a firm order for 25 Embraer E195-E2 passenger jets, which added to its 50 existing firm orders. Porter will use the new aircraft to extend its award-winning service to destinations throughout the continent. The deal, valued at
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Slide 19: Consolidated Statements of Income
EMBRAER S.A. ‘CONSOLIDATED STATEMENTS OF NCOME {in milions of U.S dollars, except earnings per share} i B ‘Three months ended on Twelve Months Ended 31 Dec. 2022 31 Dac. 2023 31Dec. 2122 31 Deo. 2023 Revenue i018 4784 asiod 52085 ‘Cost of sles and services (18708) (16286) ea2 (4289) Gross profit 08
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Slide 21: Consolidated Statements of Cash Flows
ares ‘CONSOLIDATED STATEMENTS OF CASH FLOWS {inmilions of US. dors) Operating atts et ioare (05s) the prod Acjustnerttonet income for tems notaffetingeash Desresstonand aversion cence Regaanofgrerwnent gars Rasoaton ofconsbizen fom swore (Revers losses ae b ection n Rerecoeeraie eof mentors E\EK Tem
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Slide 23: Consolidated Statement of Financial Position (Assets)
EMBRAER S.A. CONSOLIDATED STATEMENT OF FINANCIAL POSITION {in millions of U.S. dollars) ASSETS Current Cash and cash equivalents 1816.9 1,629.2 Financial investments 494.4 5217 Trade accounts receivable 202.9 217.6 Derivative financial instruments 54 175 Customer and commercial financing 50.8 84 Con
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Slide 25: Consolidated Statement of Financial Position (Liabilities)
EMBRAER S.A. CONSOLIDATED STATEMENT OF FINANCIAL POSITION {in millions of U.S. dollars) (2) (2) ‘As of December 31, As of December 31 2022 2023 Current Trade accounts payable 739.5 787.0 Trade accounts payable - Supplier finance 275 37.6 Lease labilties 120 138 Loans and financing 308.5 1274 Other p
Slide 26: Reconciliation of IFRS and Non-GAAP information
Reconciliation OF IFRS and “NON-GAAP” information We define free cash flow as operating cash flow less Additions to property, plant and equipment, Additions to intangible assets, Financial investments and Other assets. Free cash flow is not an accounting measure under IFRS. Free cash flow is present
Slide 27: EBITDA LTM definition
EBITDA LTM represents earnings before interest, taxation, depreciation, and amortization accumulated over a period of the last 12 months. It is not a financial measure of the company’s financial performance under IFRS. EBIT, as mentioned in this press release, refers to earnings before interest and
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Slide 29: Ratios based on Non-GAAP information
Ratios based on “NON-GAAP” information
Slide 30: Ratio definitions and notes
(i) Total debt represents short and long-term loans and financing including EVE (USD billion). (ii) Net debt represents cash and cash equivalents, plus financial investments, minus short and long-term loans and financing. (iii) Net debt w/o EVE represents cash and cash equivalents, plus financial in
Slide 31: Investor Relations and conference call information
Investor Relations Guilherme Paiva, CFA, Patrícia Mc Knight, Viviane Pinheiro, Eliane Fanis and Marcelo Cuperman. +55 (11) 3040-6874 investor.relations@embraer.com.br ri.embraer.com.br CONFERENCE CALL INFORMATION Embraer will host a conference call to present its 4Q23 Results on: Monday, Mar 18, 202