____________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
_______________________
FORM 6-K
__________________________________
Report of Foreign Private
Issuer
Pursuant to Rule 13a-16 or
15d-16
under the Securities Exchange Act of
1934
For the month of March 2020
Commission File Number: 001-15102
__________________________________
Embraer S.A.
__________________________________
Av. Brigadeiro Faria Lima, 2170
12227-901 São José dos Campos, São Paulo,
Brazil
(Address of principal executive
offices)
__________________________________
Indicate by check mark
whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F:
Form 20-F x Form 40-F
¨
Indicate by check mark if
the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if
the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): ¨

HIGHLIGHTS
·
Embraer delivered 35 commercial jets and 46
executive jets (20 light and 26 large) in 4Q19, and in 2019
delivered 89 commercial jets and 109 executive jets (62 light and
47 large), meeting guidance for 2019;
·
The Company’s firm order backlog at the end of
4Q19 was US$ 16.8 billion, an increase compared to the US$ 16.2
billion reported at the end of 3Q19 and US$ 16.3 billion reported
at the end of 4Q18;
·
Revenues in 4Q19 reached US$ 2,085.0 million and
for fiscal year 2019 were US$ 5,462.6 million, in line with the
Company’s stated 2019 guidance for revenues of US$ 5.3 – US$ 5.7
billion;
·
4Q19 Adjusted EBIT and Adjusted EBITDA were US$
4.0 million and US$ 65.8 million, respectively, yielding Adjusted
EBIT margin of 0.2% and Adjusted EBITDA margin of 3.2%;
·
For 2019, Adjusted EBIT and Adjusted EBITDA were
US$ (5.4) million and US$ 181.9 million, respectively. Adjusted
EBIT margin for the year was -0.1% and Adjusted EBITDA margin was
3.3%. Embraer’s Adjusted EBIT margin for 2019 reached the guidance
level of approximately breakeven;
·
4Q19 Net loss attributable to Embraer
shareholders and Loss per ADS were US$ (209.8) million and US$
(1.14) per share, respectively. Adjusted net loss (excluding
deferred income tax and social contribution and special items) for
4Q19 was US$ (93.4) million, with Adjusted loss per ADS of US$
(0.51). Embraer’s 2019 adjusted net loss was US$ (217.5) million,
and adjusted loss per ADS was US$ (1.18);
·
Embraer generated record free cash flow of US$
739.4 million in 4Q19, finishing 2019 with adjusted free cash flow
usage of US$ (181.8) million, within the guidance of US$ (300)
million to US$ (100) million.
·
The Company finished 2019 with strong liquidity
with a total cash position of US$ 2,779.9 million. Embraer’s 4Q19
total debt of US$ 3,392.3 million had an average maturity of almost
five years, yielding a net debt position of US$ 612.4 million vs.
US$ 1,347.2 million of net debt in 3Q19;
·
Due to the uncertainty related to the impact of
the spread of the COVID-19 virus, the Company is suspending its
2020 guidance. Please see page 2 for additional
information.
Main financial
indicators1
|
|
|
|
|
|
in millions of U.S dollars,
except % and earnings per share data |
IFRS |
(1) |
(1) |
(1) |
(2) |
(2) |
|
3Q19 |
4Q18* |
4Q19 |
2018 |
2019 |
Revenue |
1,175.6 |
1,697.6 |
2,085.0 |
5,071.1 |
5,462.6 |
EBIT |
(20.8) |
6.6 |
(67.6) |
35.3 |
(77.0) |
EBIT margin % |
-1.8% |
0.4% |
-3.2% |
0.7% |
-1.4% |
Adjusted EBIT |
(20.8) |
67.9 |
4.0 |
223.8 |
(5.4) |
Adjusted EBIT margin
% |
-1.8% |
4.0% |
0.2% |
4.4% |
-0.1% |
EBITDA |
18.2 |
72.2 |
(5.8) |
285.2 |
110.3 |
EBITDA margin
% |
1.5% |
4.3% |
-0.3% |
5.6% |
2.0% |
Adjusted
EBITDA |
18.2 |
133.5 |
65.8 |
473.7 |
181.9 |
Adjusted EBITDA margin
% |
1.5% |
7.9% |
3.2% |
9.3% |
3.3% |
Adjusted net income
(Loss) 2 |
(48.4) |
23.0 |
(93.4) |
(54.2) |
(217.5) |
Adjusted earnings (losses) per
share - ADS basic |
(0.2631) |
0.1253 |
(0.5077) |
(0.2953) |
(1.1822) |
Net income (loss) attributable
to Embraer Shareholders |
(77.2) |
2.6 |
(209.8) |
(178.2) |
(322.3) |
Earnings (losses) per share -
ADS basic (US$) |
(0.4197) |
0.0142 |
(1.1404) |
(0.9710) |
(1.7519) |
Adjusted free cash
flow |
(257.4) |
426.7 |
739.4 |
(127.5) |
(181.8) |
Net
debt |
(1,347.2) |
(439.9) |
(612.4) |
(439.9) |
(612.4) |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
1 Adjusted Net Income (loss) is a non-GAAP
measure, calculated by adding Net Income attributable to Embraer
Shareholders plus Deferred income tax and social contribution for
the period, in addition to adjusting for non-recurring items. Under
IFRS for Embraer’s Income Tax benefits (expenses) the Company is
required to record taxes resulting from unrealized gains or losses
due to the impact of changes in the Real to US Dollar
exchange rate over non-monetary assets (primarily Inventory,
Intangibles, and PP&E). The taxes resulting from gains or
losses over non-monetary assets are considered deferred taxes and
are presented in the consolidated Cash Flow statement, under
Deferred income tax and social contribution, which was US$ (40.9)
million in 4Q18, US$ 44.8 million in 4Q19 and US$ 28.8 million in
3Q19. Adjusted net income (loss) also excludes the net after-tax
special items of US$ (61.3) million in 4Q18 and US$ (71.6) million
in 4Q19.
 |
1
|

São Paulo, Brazil, March 26, 2020
- (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 quarters ended December 31, 2019 (4Q19), September 30, 2019
(3Q19) and December 31, 2018 (4Q18), are derived from the unaudited
financial statements, except annual financial data and where
otherwise stated.
Beginning on page 18, the Company’s assets and
liabilities related to the Commercial Aviation segment and related
services are being presented in the condensed interim financial
statements as assets and liabilities held for sale, and the
respective results have been presented as discontinued operations,
beginning February 26, 2019, the date of shareholder approval of
the strategic partnership between Embraer and Boeing, when the
transaction reached the “highly probable” criteria that requires
the presentation of discontinued operations.
It is important to note that the Company has
continued to present its financial results in this press release
with 100% of the assets, liabilities, and financial results of the
Commercial Aviation segment and its related services.
covid-19 and 2020 guidance update
Embraer has been monitoring the COVID-19
pandemic situation and its impacts on its employees, operations,
the global economy, the supply and the demand for its products and
services. The Company´s Crisis Committee monitors on a daily basis
the development of the pandemic situation and it has implemented
contingency plans to act as quickly as necessary as the current
situation continues to unfold.
Embraer has so far not suffered extensive delays
in its supply chain, production operations, or material impacts on
the demand for its products. Nevertheless, due to the uncertainty
related to the impact of the spread of the virus, the Company is
suspending its guidance updated on November 12, 2019, in relation
to Embraer’s expected results for 2020. Updated projections will be
disclosed as soon as Embraer has greater visibility into the impact
of the virus on the Company’s business.
In the Company’s Brazilian units, some essential
activities continue to occur normally, with employees working from
home, and those employees that cannot perform their job activities
remotely were placed on temporary paid leave until March 31, 2020.
Embraer is evaluating the adoption of similar measures for its
sites outside of Brazil. Such measures aim to preserve the health
and well-being of Embraer’s employees.
If the measures being taken around the world in
an attempt to slow down the spreading of the virus turn out to be
persistent, this will have significant negative impacts on the
global economy, which could adversely impact us. Governments
have already imposed severe measures, such as quarantines,
travel and flight restrictions, reduction in movement between
countries, all of which we expect to generate some disruptions in
the supply and demand side of our businesses.
While Embraer has weathered economic and
geopolitical crises in the past, and the Company’s management and
all of its employees remain committed to achieving its long-term
targets, we cannot at this point assure you to what extent this
virus and measures to attempt to contain it will affect us.
Embraer’s top priority remains the health and
safety of its employees, customers, and other
collaborators.
REVENUES and gross margin
During 4Q19, Embraer delivered 35 commercial and
46 executive aircraft (20 light jets and 26 large jets), for a
total of 89 commercial and 109 executive aircraft (62 light jets
and 47 large jets) delivered in 2019. Deliveries of commercial jets
were within the Company’s stated guidance range of 85 to 95
deliveries for 2019, and executive jet deliveries also finished
within the guidance range of 90 to 110 deliveries for the year. In
2018, commercial jet deliveries totaled 90 aircraft and executive
jet deliveries totaled 91 aircraft (64 light and 27
large).
Embraer reported 4Q19 revenues of US$ 2,085.0
million, representing year-over-year growth 22.8% compared to 4Q18,
with growth in all four of the Company’s major business units on
higher deliveries in Commercial Aviation and Executive Jets as well
as significant growth in Defense & Security revenues (+69.4%
YoY) and Services & Support revenues (+22.2%). Consolidated
revenues of US$ 5,462.6 million in 2019 represented a 7.7% increase
as compared to reported revenues in 2018, with growth in the
Defense & Security (+26.7%), Executive Jet (+26.5%), and
Services & Support (+6.7%) segments only partially offset by a
decline in the Commercial Aviation segment (-5.2%). The Company’s
total revenues finished the year within its previously stated
guidance range of 2019 revenues of between US$ 5.3 and US$ 5.7
billion.
 |
2
|

Reported 4Q19 gross margin of 13.4% declined
relative to the 15.4% reported in 4Q18 as year-over-year gross
margin declines in the Commercial Aviation, Executive Jet, and
Services & Support segments were only partially offset by an
improvement in the Defense & Security segment’s gross margin as
compared to 4Q18. For the full year, Embraer reported gross margin
of 14.6% in 2019 vs. the 15.1% gross margin reported in 2018 driven
largely by declines in the Commercial Aviation and Executive Jets
segments on a less favorable mix of deliveries in 2019 as compared
to 2018.
EBIT AND ADJUSTED EBIT
EBIT and EBIT margin as reported
in 4Q19 were US$ (67.6) million and -3.2%, respectively, down from
EBIT of US$ 6.6 million and EBIT margin of 0.4% in 4Q18. For the
full year, EBIT as reported in 2019 was US$ (77.0) million as
compared to US$ 35.3 million in 2018, yielding as-reported EBIT
margins of -1.4% in 2019 and 0.7% in 2018.
The quarterly and annual
operating results include the impact of special items in both the
current and prior year periods. In 4Q19, operating income included
a US$ 71.6 million impairment charge in the Executive Jets segment,
while in 4Q18 the Executive Jets segment recognized a US$ 61.3
million impairment charge in operating results. The 4Q19 special
item was the only one booked in Embraer results for fiscal year
2019. In fiscal year 2018, the Company had a total of US$ 188.5
million in special items that negatively impacted results, which
included the aforementioned Executive Jets segment impairment
charge as well as US$ 127.2 million related to cost base revisions
resulting from the incident involving prototype 001 of the KC-390
development program.
Excluding these special items,
4Q19 Adjusted EBIT and Adjusted EBIT margin were US$ 4.0 million
and 0.2%, respectively, compared to 4Q18 Adjusted EBIT of US$ 67.9
million and Adjusted EBIT margin of 4.0%. The Company’s Adjusted
EBIT for 2019 excluding these special items was US$ (5.4) million,
resulting in Adjusted EBIT margin of -0.1%. This compares to
Adjusted EBIT and Adjusted EBIT margin in 2018 of US$ 223.8 million
and 4.4%, respectively. Embraer’s Adjusted 2019 EBIT and Adjusted
EBIT margin were within the Company’s published 2019 guidance of
approximately breakeven EBIT.
Separation costs related to the
carve out of Embraer’s commercial aviation business negatively
impacted 4Q19 EBIT by US$ 54.2 million, though are not removed from
results in the Company’s Adjusted EBIT or Adjusted EBIT margin. For
the full year, 2019 EBIT included a total of US$ 120.8 million of
these separation costs. If these separation costs were excluded
from the adjusted results, the Company’s 2019 Adjusted EBIT and
Adjusted EBIT margin would have been US$ 115.4 million and 2.1%,
respectively.
|
|
|
|
|
|
|
|
in millions of
U.S.dollars |
ADJUSTED EBIT
RECONCILIATION |
(1) |
(2) |
(1) |
(1) |
(1) |
(1) |
(2) |
|
4Q18* |
2018 |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
2019 |
Operating profit (loss) before
financial income (EBIT) |
6.6 |
35.3 |
(15.2) |
26.6 |
(20.8) |
(67.6) |
(77.0) |
Expenses related to KC-390 cost
base revision |
- |
127.2 |
- |
- |
- |
- |
- |
Impairment loss Executive Jet
business |
61.3 |
61.3 |
- |
- |
- |
71.6 |
71.6 |
Adjusted
EBIT |
67.9 |
223.8 |
(15.2) |
26.6 |
(20.8) |
4.0 |
(5.4) |
Adjusted
EBIT margin % |
4.0% |
4.4% |
-1.8% |
1.9% |
-1.8% |
0.2% |
-0.1% |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
 |
3
|

Administrative expenses in 4Q19
were US$ 60.6 million, up from the US$ 52.5 million reported in
4Q18, and for fiscal year 2019 administrative expenses totaled US$
190.2 million as compared to 2018 administrative expenses of US$
182.6 million. Selling expenses declined from US$ 88.2 million in
4Q18 to US$ 71.9 million in 4Q19, and for the full year selling
expenses declined from US$ 304.2 million in 2018 to US$ 285.9
million in 2019, with efficiencies gained across all of Embraer’s
business units. Research expenses of US$ 16.8 million in 4Q19 were
relatively stable compared to the US$ 17.5 million reported in
4Q18, while for the full year were up slightly to US$ 49.4 million
in 2019 versus US$ 46.1 million reported in 2018.
Other operating income (expense),
net in 4Q19 was expense of US$ 196.8 million compared to an expense
of US$ 96.5 million in 4Q18. For 2019, other operating income
(expense), net, was an expense of US$ 346.8 million versus expense
of US$ 199.4 million in 2018.
Other operating income (expense)
included US$ 71.6 million in impairment charges for the Executive
Jets business in 4Q19 and included US$ 61.3 million of impairment
charges in this business in 4Q18 results. Excluding these impacts,
4Q19 adjusted other operating income (expense), net, was US$ 125.2
million of expense and 2019 adjusted other operating income
(expense), net was US$ 275.2 million of expense. This compares to
adjusted other operating income (expense), net, in 4Q18 of US$ 35.2
million of expense and 2018 adjusted other operating income
(expense), net, in 2018 of US$ 138.1 million of expense. The
increase in other operating expense in 4Q19 and 2019 as compared to
their respective prior year periods is principally due to the
aforementioned separation costs of US$ 54.2 million in 4Q19 and US$
120.8 million for 2019.
net income (LOSS)
Net income (loss) attributable to Embraer
shareholders and Earnings (Loss) per ADS for 4Q19 were US$ (209.8)
million and US$ (1.14) per share, respectively, bringing total Net
income (loss) attributable to Embraer shareholders and Earnings
(Loss) per ADS to US$ (322.3) million and US$ (1.75) per share,
respectively.
Adjusted net income (loss), excluding deferred
income tax and social contribution and excluding the total
after-tax impacts of any special items described above, was US$
(93.4) million in 4Q19 as compared to US$ 23.0 million in 4Q18. For
the full year, adjusted net income (loss) excluding deferred income
tax and social contribution and excluding the total after-tax
impact of special items was US$ (217.5) million in 2019 and US$
(54.2) million in 2018. Adjusted net income (loss) attributable to
Embraer shareholders was negatively impacted by lower operating
results in addition to higher taxes during the period. Adjusted
earnings (loss) per ADS excluding special items was US$ (0.51) in
4Q19 (versus US$ 0.13 in 4Q18) and US$ (1.18) in 2019 (versus US$
(0.30) in 2018).
 |
4
|

monetary balance sheet accounts and other
measures
Embraer finished fiscal year 2019 with a net
debt position of US$ 612.4 million, compared to the net debt
position of US$ 1,347.2 million at the end of 3Q19. The Company’s
lower net debt position is a result of Embraer’s significant free
cash flow generation of US$ 739.4 million during 4Q19. The total
loan position of US$ 3,392.3 million at the end of 2019 declined
from the US$ 3,522.6 million reported at the end of
3Q19.
|
|
|
|
in millions of
U.S.dollars |
FINANCIAL POSITION
DATA |
(2) |
(1) |
(2) |
|
2018 |
3Q19 |
2019 |
Cash and cash
equivalents |
1,280.9 |
1,156.4 |
2,307.7 |
Financial
investments |
1,926.9 |
1,019.0 |
472.2 |
Total cash
position |
3,207.8 |
2,175.4 |
2,779.9 |
Loans
short-term |
179.3 |
275.0 |
215.0 |
Loans
long-term |
3,468.4 |
3,247.6 |
3,177.3 |
Total loans
position |
3,647.7 |
3,522.6 |
3,392.3 |
Net
debt* |
(439.9) |
(1,347.2) |
(612.4) |
* Net debt = Cash and
cash equivalents + Financial investments short-term
and long term - Loans
short-term and long-term |
|
(1) Derived from
unaudited financial information. |
(2)Derived from audited
financial information. |
Adjusted net cash generated (used) by operating
activities net of adjustments for financial investments was US$
930.0 million in 4Q19 and adjusted free cash flow for the quarter
was US$ 739.4 million. This compares to adjusted net cash generated
(used) by operating activities net of financial investments of US$
573.5 million and adjusted free cash flow of US$ 426.7 million in
4Q18. The principal factors explaining the higher free cash flow in
4Q19 are a higher decline in inventories following the significant
number of jet deliveries during the quarter, and greater declines
in accounts receivable and contract assets balances as compared to
4Q18. In 2019, adjusted free cash flow was US$ (181.8) million,
compared to adjusted free cash flow of US$ (127.5) million in 2018,
with the increase in free cash usage due in large part to lower net
income in 2019, influenced by the separation costs of US$ 120.8
million as well as higher capex and net development spending during
the year. Adjusted free cash flow for 2019 finished within the
Company’s announced guidance range for free cash flow usage of
between US$ (300) million and US$ (100) million for the
year.
|
|
|
|
|
|
|
|
in millions of
U.S.dollars |
IFRS |
4Q18* |
2018 |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
YTD19 |
Adj. net cash generated
(used) by operating activities |
573.5 |
316.8 |
(557.5) |
140.5 |
(127.1) |
930.0 |
386.0 |
|
Net additions to property, plant
and equipment |
(56.6) |
(154.0) |
(42.6) |
(72.5) |
(70.2) |
(99.2) |
(284.5) |
Additions to intangible
assets |
(90.2) |
(290.3) |
(65.2) |
(66.5) |
(60.1) |
(91.4) |
(283.3) |
Adjusted free cash
flow |
426.7 |
(127.5) |
(665.3) |
1.5 |
(257.4) |
739.4 |
(181.8) |
(1) Net of financial
investments: 4Q18 (248.9), 2018 790.8, 1Q19 215.0, 2Q19 (113.8),
3Q19 327.2 and 4Q19 79.3 |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
Net additions to total PP&E
for 4Q19 were US$ 99.2 million, versus US$ 56.6 million in net
additions reported in 4Q18. Of the total 4Q19 additions to
PP&E, CAPEX amounted to US$ 64.0 million and additions of pool
program spare parts was US$ 35.2 million. For the full year, the
Company’s CAPEX amounted to US$ 161.0 million in 2019, compared to
US$ 97.8 million in 2018.
In 4Q19, Embraer invested a total
of US$ 91.4 million in product development, which was not offset by
any contributions from suppliers during the period. This investment
was principally related to the development of the E-Jets E2
commercial jet program, which continues to progress according to
schedule. For the full year, the Company’s net development
expenditures totaled US$ 278.8 million in 2019 versus the US$ 164.8
million in net development expenditures in 2018.
 |
5
|

|
|
|
|
|
|
|
|
in
millions of U.S.dollars |
|
4Q18 |
2018 |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
YTD19 |
CAPEX |
40.0 |
97.8 |
28.1 |
24.3 |
44.6 |
64.0 |
161.0 |
Contracted CAPEX
(Included in CAPEX) |
0.4 |
4.1 |
0.5 |
0.9 |
1.3 |
0.6 |
3.3 |
Additions of aircraft available
for or under lease |
0.2 |
10.2 |
- |
31.7 |
- |
- |
31.7 |
Additions of Pool programs spare
parts |
16.5 |
46.3 |
14.5 |
16.5 |
25.6 |
35.2 |
91.8 |
PP&E |
56.7 |
154.3 |
42.6 |
72.5 |
70.2 |
99.2 |
284.5 |
Proceeds from sale of
PP&E |
(0.1) |
(0.3) |
- |
- |
- |
- |
- |
Net Additions to
PP&E |
56.6 |
154.0 |
42.6 |
72.5 |
70.2 |
99.2 |
284.5 |
|
in
millions of U.S.dollars |
|
4Q18 |
2018 |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
YTD19 |
Additions to
intangible |
90.2 |
290.3 |
65.2 |
66.5 |
60.2 |
91.4 |
283.3 |
Contributions from
suppliers |
- |
(125.5) |
- |
(4.5) |
- |
- |
(4.5) |
Development (Net of
contributions from suppliers) |
90.2 |
164.8 |
65.2 |
62.0 |
60.2 |
91.4 |
278.8 |
Research |
17.5 |
46.1 |
9.3 |
11.8 |
11.5 |
16.8 |
49.4 |
R&D |
107.7 |
210.9 |
74.5 |
73.8 |
71.7 |
108.2 |
328.2 |
 |
The Company’s total debt
decreased US$ 130.3 million to US$ 3,392.3 million at the end of
4Q19 compared to US$ 3,522.6 million at the end of 3Q19. Short-term
debt at the end of 4Q19 was US$ 215.0 million and long-term debt
was US$ 3,177.3 million. The average loan maturity of the Company’s
debt at the end of 4Q19 was 4.8 years. The cost of Dollar
denominated loans at the end of 4Q19 was stable at 5.27% p.a.,
while the cost of real denominated loans increased to
1.52% p.a. at the end of 4Q19 versus 1.42% at the end of
3Q19.
EBITDA over the last 12 months (unadjusted
EBITDA LTM) to financial expenses (gross) at the end of 4Q19
decreased to 0.6 vs. 0.9 at the end of 3Q19. At the end of 4Q19,
1.3% of total debt was denominated in Reais.
|
Embraer’s cash allocation management strategy
continues to be one of its most important tools to mitigate
exchange rate risks. By balancing cash allocation in Real and
Dollar assets, the Company attempts to neutralize its balance sheet
exchange rate exposure. Of total cash at the end of 4Q19, 93% was
denominated in US Dollars.
Complementing its strategy to mitigate exchange
rate risks, the Company entered into financial hedges in order to
reduce its cash flow exposure.
The Company’s cash flow exposure is due to the
fact that approximately 10% of its net revenues are denominated in
Reais while approximately 20% of total costs are denominated in
Reais. Having more Real denominated costs than revenues generates
this cash flow exposure. For 2020, a majority of the Company’s Real
cash flow exposure is hedged if the US Dollar depreciates below an
average rate floor of R$ 3.80. For exchange rates above this level,
the Company will benefit up to an average exchange rate cap of R$
4.40.
|
 |
 |
6
|

operational balance sheet
accounts
|
|
|
|
in millions of
U.S.dollars |
SELECT BALANCE SHEET
DATA |
(2) |
(1) |
(2) |
|
2018 |
3Q19 |
2019 |
Trade accounts receivable &
contract assets |
676.0 |
891.3 |
789.9 |
Customer and commercial
financing |
11.7 |
10.9 |
10.7 |
Inventories |
2,507.0 |
3,082.7 |
2,384.0 |
Property, plant and
equipment |
1,964.7 |
2,017.1 |
2,058.6 |
Intangible |
1,898.8 |
2,042.1 |
2,051.7 |
Trade accounts
payable |
892.1 |
856.6 |
832.7 |
Contract
liabilities** |
1,243.6 |
1,378.5 |
1,429.5 |
Total shareholders'
equity |
3,940.1 |
3,802.3 |
3,614.6 |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
** Formerly advances
from customers and unearned income |
During 4Q19, Embraer generated
cash via its working capital accounts, as is generally the case as
aircraft deliveries are historically weighted in the fourth
quarter. Inventories declined by US$ 698.7 million during the
fourth quarter to end the year at US$ 2,384.0 million, as the
Company delivered 39% of its total 2019 commercial jet deliveries
and 42% of its total executive jet deliveries during the fourth
quarter. Embraer’s inventory balance also finished 2019 at a lower
level than the US$ 2,507.0 million reported at the end of 2018.
Trade accounts receivable & contract assets declined US$ 101.4
million during 4Q19 to end the period at US$ 789.9 million, also
positively affecting cash flow generation during the quarter.
Contract liabilities (consisting of the former accounts advances
from customers and unearned income) increased US$ 51.0 million to
end 2019 at US$ 1,429.5 million. The cash generated from these
working capital accounts was only slightly offset by a US$ 23.9
million decline in trade accounts payable, which ended 2019 at US$
832.7 million. Property, plant and equipment increased US$ 41.5
million to US$ 2,058.6 million at the end of 4Q19, and intangibles
were up US$ 9.6 million to finish the period at US$ 2,051.7
million.
Total Backlog
Considering all deliveries as
well as firm orders obtained during the period, the Company’s firm
order backlog ended 4Q19 at US$ 16.8 billion, as compared to US$
16.2 billion at the end of 3Q19 and US$ 16.3 billion at the end of
4Q18.

 |
7
|

Segment Results
The Commercial Aviation segment represented
44.0% of consolidated revenues in 4Q19 versus 49.5% in 4Q18,
declining despite an increase in deliveries on a year-over-year
basis, as Embraer’s other business units grew revenues faster
during the period than the Commercial Aviation segment. The portion
of Executive Jet revenues increased from 26.9% in 4Q18 to 29.7% in
4Q19, on year-over-year revenue growth of 35.5% due to a
combination of higher deliveries (46 in 4Q19 vs. 36 in 4Q18) and a
more favorable mix of deliveries (57% of deliveries were large jets
in 4Q19 vs. 33% of deliveries in 4Q18). The Defense & Security
segment reported a 69.4% increase in revenues in 4Q19 as compared
to 4Q18 on lower negative cost base revisions, and its portion of
total Company revenues increased from 8.2% in 4Q18 to 11.3% in
4Q19. Revenues for Services & Support grew 22.2% year-over-year
to US$ 309.2 million in the quarter, representing 14.8% of the
Company’s consolidated revenues in 4Q19, stable as compared to
4Q18. For fiscal year 2019, Commercial Aviation revenues
represented 40.8% of the Company’s total, Executive Jet revenues
were 25.6%, Defense & Security segment revenues comprised
14.2%, Services & Support segment revenues represented 19.2%,
and Other segment revenues were 0.2% of the total.
|
|
|
|
|
|
|
|
|
|
|
in millions of
U.S.dollars |
NET
REVENUES |
(1) |
|
(1) |
|
(1) |
|
(2) |
|
(2) |
|
BY
SEGMENT |
3Q19 |
% |
4Q18* |
% |
4Q19 |
% |
2018 |
% |
2019 |
% |
Commercial
Aviation |
407.8 |
34.7 |
839.5 |
49.5 |
915.1 |
44.0 |
2,358.3 |
46.5 |
2,234.5 |
40.8 |
Executive Jets |
363.0 |
30.9 |
457.2 |
26.9 |
619.7 |
29.7 |
1,104.3 |
21.8 |
1,397.0 |
25.6 |
Defense &
Security |
164.1 |
14.0 |
139.4 |
8.2 |
236.1 |
11.3 |
612.1 |
12.1 |
775.3 |
14.2 |
Services &
Support |
238.4 |
20.3 |
253.0 |
14.9 |
309.2 |
14.8 |
980.8 |
19.3 |
1,046.7 |
19.2 |
Others |
2.3 |
0.1 |
8.5 |
0.5 |
4.9 |
0.2 |
15.6 |
0.3 |
9.1 |
0.2 |
Total |
1,175.6 |
100.0 |
1,697.6 |
100.0 |
2,085.0 |
100.0 |
5,071.1 |
100.0 |
5,462.6 |
100.0 |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
Commercial Aviation
In 4Q19, Embraer delivered 35 commercial jets,
as shown in the table below:
|
|
|
|
|
|
DELIVERIES |
3Q19 |
4Q18 |
4Q19 |
2018 |
YTD19 |
Commercial
Aviation |
17 |
33 |
35 |
90 |
89 |
EMBRAER 170 |
- |
- |
- |
1 |
- |
EMBRAER 175 |
13 |
23 |
22 |
67 |
67 |
EMBRAER 190 |
2 |
6 |
2 |
13 |
5 |
EMBRAER 195 |
- |
3 |
1 |
5 |
3 |
EMBRAER 190-E2 |
1 |
1 |
4 |
4 |
7 |
EMBRAER 195-E2 |
1 |
- |
6 |
- |
7 |
In October, in a ceremony held at its
headquarters in Zurich, Switzerland, Helvetic Airways officially
received its first E190-E2 jet from Embraer. The airline has a
contract for a firm order of 12 jets of this model, and purchase
rights for further 12 E190-E2s, with conversion rights to the
E195-E2, bringing the total potential order up to 24 E-Jet
E2s.
Embraer and KLM Cityhopper signed, in November,
a firm order for 21 E195-E2 aircraft, plus 14 purchase rights. The
company acquired the 21 firm positions via operating lease from
Embraer lessor partners Aircastle and ICBC Aviation Leasing. With
all purchase rights exercised, the deal could have a value of US$
2.48 billion. The aircraft for this order will come from the
existing backlogs of Aircastle and ICBC Aviation Leasing, each
providing KLM with 11 and 10 E195-E2s, respectively.
During the Dubai Airshow, which took place in
November, Embraer announced that Air Peace, West Africa’s largest
airline, signed a contract for three additional E195-E2s,
confirming purchase rights from the original contract signed in April. These new E195-E2s
have a value of US$ 212.6 million, based on Embraer’s 2019 list
prices. Set to be the first E-Jets E2 operator in Africa, Air
Peace’s firm order is now for 13 E195-E2s with 17 purchase rights
for the same model.
 |
8
|

Also, during the Dubai Airshow, Embraer and
Cairo-based CIAF Leasing signed a firm order for three E190
aircraft. The deal has a value of US$ 161.4 million at 2019 list
prices. The three new aircraft will join CIAF’s existing fleet of
three E170s, two of which are on lease with Jasmin Airways, the
other with Air Cairo.
Closing the month of November, Binter of Spain
celebrated the incorporation of the first E195-E2 jet into its
fleet with a ceremony held at Embraer’s main facility in São José
dos Campos. The airline is the first European customer to receive
the largest of the three members of the E-Jets E2 family of
commercial aircraft. Binter has placed firm orders for five
E195-E2s.
In December, Embraer and Congo Airways signed a
firm order for two E175 aircraft, with purchase rights for a
further two. The deal has a total value of US$ 194.4 million at
2019 list prices with all purchase rights exercised.
Embraer achieved yet another milestone for the
E2 program in December, as the Embraer E175-E2 made its inaugural
flight from the company’s facility in São José dos Campos. The
E175-E2 is the third member of the E-Jets E2 family.
Approaching the end of 2019, Air Kiribati, the
flag carrier of the Republic of Kiribati, received its first
E190-E2 jet. The airline has a firm order contract for two E190-E2s
and purchase rights for two more. With a maximum range of up to
2,850 nautical miles, the E190-E2 can serve destinations throughout
the vast expanse of Kiribati, which spans four time zones and
comprises more than 30 islands.
At the end of 4Q19, the backlog and cumulative
deliveries for Commercial Aviation were as follows:
|
|
|
|
|
|
COMMERCIAL
AVIATION |
Firm
Orders |
Options |
Total |
Deliveries |
Firm
Backlog |
BACKLOG |
|
|
|
|
|
E170 |
191 |
- |
191 |
191 |
- |
E175 |
815 |
308 |
1123 |
634 |
181 |
E190 |
568 |
- |
568 |
564 |
4 |
E195 |
172 |
- |
172 |
172 |
- |
E190-E2 |
27 |
61 |
88 |
11 |
16 |
E195-E2 |
144 |
47 |
191 |
7 |
137 |
TOTAL
E-JETS |
1,917 |
416 |
2,333 |
1,579 |
338 |
The Company’s Commercial Aviation
segment represented roughly 53% of the total value of backlog
reported at the end of 4Q19, with a value of US$ 9.0 billion in
firm orders.
Executive JETS
The Executive Jets segment delivered 20 light
and 26 large jets, totaling 46 aircraft in 4Q19.
|
|
|
|
|
|
DELIVERIES |
3Q19 |
4Q18 |
4Q19 |
2018 |
2019 |
Executive
Aviation |
27 |
36 |
46 |
91 |
109 |
Light Jets |
15 |
24 |
20 |
64 |
62 |
Large Jets |
12 |
12 |
26 |
27 |
47 |
In the fourth quarter, Embraer announced an
aircraft purchase agreement with Flexjet, one of the global leaders
in private jet travel. The deal, valued at up to US$ 1.4 billion at
current list prices, comprises a fleet of Embraer business jets,
which includes the recently certified Praetor and the Phenom 300E
models. The announcement was made
during a press conference at the 2019 edition of National Business
Aviation Association’s Convention and Exhibition (NBAA-BACE).
Flexjet is the first fractional operator of the Praetor jets, and
in December, the company took delivery of its first Praetor
500.
 |
9
|

The Praetor 500 and the Praetor 600, both of
which have received FAA, EASA and ANAC certifications just over one
year after they were first announced at NBAA-BACE 2018, have
exceeded their performance design targets, and are the most
technologically advanced aircraft in their categories.
Additionally, in the fourth quarter, the Phenom
jet series achieved the milestone of 900 total deliveries since
entry into service. The Phenom 100 and Phenom 300 series’ fleet
operates in more than 30 countries and has surpassed 1.5 million
flight hours.
According to GAMA - General Aviation
Manufacturers Association – the Phenom 300E was the world’s most
delivered light jet in 2019, repeating this achievement for the
eighth consecutive year.
The Phenom 100EV, Phenom 300E, and the newly
certified Praetor 500 and Praetor 600 provide the ultimate
experience for customers in executive aviation.
The Executive Jets segment backlog ended 4Q19 at
a value of US$ 1.4 billion, or roughly 9% of Embraer’s total
backlog.
Defense & security
During 4Q19, at the Dubai Airshow in November,
Embraer announced the new name and designation of its multi-mission
medium aircraft, the C-390 Millennium. The new designation reflects
increased flexibility and value for operators that look for a
transport/cargo aircraft to perform airlift and air mobility
missions, among others. The designation KC-390 will be maintained
for the customers that have opted for the aerial refueling
capability.
The second KC-390 Millennium aircraft was
delivered to the Brazilian Air Force (FAB), and together with the
first aircraft in operation, it is being used to train technicians
and pilots who will operate and maintain the FAB fleet. The flight
test campaign, focused on military features, has made great
progress, accumulating more than 2,500 flight hours. The highlight
of 4Q19 was the Heavy Cargo in Flight Launch test, held at the US
Army's facilities in Yuma, Arizona, in the United States. This test
campaign successfully demonstrated that the KC-390 is the most
capable tactical military freighter with the most modern cargo
launch system on the market. The first export contract of five
KC-390s and a flight simulator to the Portuguese government became
effective during the fourth quarter. Embraer started the necessary
developments to meet the requirements of Portugal, as well as the
production of the first aircraft, which will be delivered in
2023.
Regarding the Super Tucano light attack
aircraft, two new contracts were signed with undisclosed customers,
adding another nine Super Tucano aircraft to the backlog during
4Q19. The pre-acceptance event for the six Super Tucano aircraft
for the Philippines was held in December. These aircraft will be
delivered in early 2020.
With respect to Special Mission Programs, two
Phenom 100EV (U-100) aircraft were delivered, which will be
operated by the Brazilian Sixth Air Transport Squadron (6th ETA).
Regarding Modernization Programs, the first flight of the second
E-99M aircraft took place in December. The E-99M aircraft is the
modernized version of the FAB's strategic aerial early surveillance
aircraft. With respect to the Gripen Program, a development
simulator (S-RIG) was inaugurated in November at Embraer’s Gavião
Peixoto facility. This simulator will be used for development
testing and system verification, increasing local autonomy to
conduct more projects.
In December, the 7th modernized A1-M aircraft
was delivered to the Brazilian Air Force, and the first two of a
total of 14 M60 radars were delivered to the Brazilian
Army.
The Defense & Security segment backlog ended
4Q19 at a value of US$ 4.1 billion, or roughly 25% of the Company’s
total.
 |
10
|

services & support
In 4Q19, during MRO Europe, a leading
aeronautical maintenance event, Embraer announced the signing of
new maintenance contracts and the extension of agreements with
African and European carriers. Among European customers,
Switzerland’s Helvetic Airways expanded its pool contract adding
seven E190s to the current agreement that already supports four
aircraft. France’s Pan Européenne Air Service has been a pool
customer for more than ten years and renewed their support contract
for their ERJ 135 and ERJ 145 jets. UK’s Flybe, a long-standing
pool customer, renewed the pool contract and will continue to
benefit from the Original Equipment Manufacturer (OEM) component
support to their entire E175 and E195 fleet.
During the same event, Embraer announced that
all E-Jet operators in Asia Pacific have enrolled in Embraer’s Pool
Program. This followed a Pool Program deal signed by Myanmar
National Airlines for their E190 fleet. There are currently a total
of 60 E-Jets operated by six airlines in four countries spread
across the sub-region of Asia Pacific (excluding China).
Also, in the fourth quarter, Embraer Services
& Support announced the expansion of its Executive Jets Service
Center at Fort Lauderdale-Hollywood International Airport (KFLL).
Embraer’s presence in Florida is strategic to its Executive Jets
customers throughout the Southern United States, the Caribbean and
Central America as well as to those who frequently travel through
the region. This service center is also the base for the Embraer
Airworthiness Management program, which offers advanced maintenance
and airworthiness planning throughout the aircraft's life cycle,
ensuring customer tranquility and promoting the aircraft's residual
value.
The Services & Support firm order backlog
ended the year at US$ 2.2 billion, representing 13% of the
Company’s total backlog.
Reconciliation OF IFRS and “non gaap”
information
|
|
|
|
in millions of
U.S.dollars |
EBITDA
RECONCILIATION |
(1) |
(2) |
(2) |
LTM*
(IFRS) |
3Q19 |
2018 |
2019 |
Loss attributable to
Embraer |
(109.9) |
(178.2) |
(322.3) |
Noncontrolling
interest |
6.4 |
7.0 |
5.8 |
Income tax income
(expense) |
(0.9) |
35.0 |
130.3 |
Financial income (expense),
net |
117.1 |
171.5 |
116.1 |
Foreign exchange gain (loss),
net |
(15.6) |
0.0 |
(6.9) |
Depreciation and
amortization |
191.1 |
249.9 |
187.3 |
EBITDA
LTM |
188.2 |
285.2 |
110.3 |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
* Last Twelve
Months |
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 presented because it is used internally as a measure for
evaluating certain aspects of our business. The Company also
believes that some investors find it to be a useful tool for
measuring Embraer's cash position. Free cash flow should not be
considered as a measure of the Company's liquidity or as a measure
of its cash flow as reported under IFRS. In addition, Free cash
flow should not be interpreted as a measure of residual cash flow
available to the Company for discretionary expenditures, since the
Company may have mandatory debt service requirements or other
nondiscretionary expenditures that are not deducted from this
measure. Other companies in the industry may calculate Free
cash flow differently from Embraer for purposes of their earnings
releases, thus limiting its usefulness for comparing Embraer to
other companies in the industry.
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 taxes,
and for purposes of reporting is the same as that reported on the
Income Statement as Operating Profit before Financial
Income.
 |
11
|

EBIT and EBITDA are presented because they are
used internally as measures to evaluate certain aspects of the
business. The Company also believes that some investors find them
to be useful tools for measuring a Company’s financial performance.
EBIT and EBITDA should not be considered as alternatives to, in
isolation from, or as substitutes for, analysis of the Company’s
financial condition or results of operations, as reported under
IFRS. Other companies in the industry may calculate EBIT and EBITDA
differently from Embraer for the purposes of their earnings
releases, limiting EBIT and EBITDA’s usefulness as comparative
measures.
|
|
|
|
|
|
in millions of
U.S.dollars |
EBITDA
RECONCILIATION |
(1) |
(1) |
(1) |
(2) |
(2) |
|
3Q19 |
4Q18* |
4Q19 |
2018 |
2019 |
Net income (loss) attributable
to Embraer |
(77.2) |
2.6 |
(209.8) |
(178.2) |
(322.3) |
Noncontrolling
interest |
1.9 |
1.2 |
0.6 |
7.0 |
5.8 |
Income tax (expense)
income |
39.4 |
(18.7) |
112.5 |
35.0 |
130.3 |
Financial income,
net |
18.1 |
28.0 |
26.9 |
171.5 |
116.1 |
Foreign exchange gain (loss),
net |
(3.0) |
(6.5) |
2.2 |
- |
(6.9) |
Depreciation and
amortization |
39.0 |
65.6 |
61.8 |
249.9 |
187.3 |
EBITDA |
18.2 |
72.2 |
(5.8) |
285.2 |
110.3 |
EBITDA
margin |
1.5% |
4.3% |
-0.3% |
5.6% |
2.0% |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
Adjusted EBIT and Adjusted EBITDA are non-GAAP
measures, and both exclude the impact of several non-recurring
items, as described in the tables bellow.
|
|
|
|
|
|
|
|
in millions of
U.S.dollars |
ADJUSTED EBIT
RECONCILIATION |
(1) |
(2) |
(1) |
(1) |
(1) |
(1) |
(2) |
|
4Q18* |
2018 |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
2019 |
Operating profit (loss) before
financial income (EBIT) |
6.6 |
35.3 |
(15.2) |
26.6 |
(20.8) |
(67.6) |
(77.0) |
Expenses related to KC-390 cost
base revision |
- |
127.2 |
- |
- |
- |
- |
- |
Impairment loss Executive Jet
business |
61.3 |
61.3 |
- |
- |
- |
71.6 |
71.6 |
Adjusted
EBIT |
67.9 |
223.8 |
(15.2) |
26.6 |
(20.8) |
4.0 |
(5.4) |
Adjusted
EBIT margin % |
4.0% |
4.4% |
-1.8% |
1.9% |
-1.8% |
0.2% |
-0.1% |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
|
|
|
|
|
|
|
|
in millions of
U.S.dollars |
ADJUSTED EBITDA
RECONCILIATION |
(1) |
(2) |
(1) |
(1) |
(1) |
(1) |
(2) |
|
4Q18* |
2018 |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
2019 |
EBITDA |
72.2 |
285.2 |
30.9 |
67.0 |
18.2 |
(5.8) |
110.3 |
Expenses related to KC-390 cost
base revision |
- |
127.2 |
- |
- |
- |
- |
- |
Impairment loss Executive Jet
business |
61.3 |
61.3 |
- |
- |
- |
71.6 |
71.6 |
Adjusted
EBITDA |
133.5 |
473.7 |
30.9 |
67.0 |
18.2 |
65.8 |
181.9 |
Adjusted
EBITDA margin % |
7.9% |
9.3% |
3.8% |
4.9% |
1.5% |
3.2% |
3.3% |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
Adjusted Net Income is a non-GAAP measure,
calculated by adding Net Income attributable to Embraer
Shareholders plus Deferred Income tax and social contribution for
the period, as well as removing the impact of non-recurring items.
Furthermore, under IFRS for purposes of calculating Embraer’s
Income Tax benefits (expenses), the Company is required to record
taxes resulting from gains or losses due to the impact of the
changes in the Real to the US Dollar exchange rate over
non-monetary assets (primarily Inventories, Intangibles, and
PP&E). It is important to note that taxes resulting from gains
or losses over non-monetary assets are considered deferred taxes
and are accounted for in the Company’s consolidated Cash Flow
statement, under Deferred income tax and social
contribution.
 |
12
|

|
|
|
|
|
|
|
|
in millions of
U.S.dollars |
ADJUSTED NET
INCOME (LOSS) RECONCILIATION |
(1) |
(2) |
(1) |
(1) |
(1) |
(1) |
(2) |
|
4Q18* |
2018 |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
2019 |
Net Income (loss) attributable
to Embraer |
2.6 |
(178.2) |
(42.5) |
7.2 |
(77.2) |
(209.8) |
(322.3) |
Net change in deferred income
tax & social contribution |
(40.9) |
(21.3) |
(19.3) |
(21.1) |
28.8 |
44.8 |
33.2 |
Expenses related to KC-390 cost
base revision |
- |
84.0 |
- |
- |
- |
- |
- |
After-tax Executive Jet business
impairment loss |
61.3 |
61.3 |
- |
- |
- |
71.6 |
71.6 |
Adjusted net income
(Loss) |
23.0 |
(54.2) |
(61.8) |
(13.9) |
(48.4) |
(93.4) |
(217.5) |
Adjusted net
margin |
1.4% |
-1.1% |
-7.5% |
-1.0% |
-4.1% |
-4.5% |
-4.0% |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
Some Financial Ratios based on “non GAAP”
information
|
|
|
|
CERTAIN FINANCIAL
RATIOS - IFRS |
(2) |
(1) |
(2) |
|
2018 |
3Q19 |
2019 |
Total debt to EBITDA
(i) |
12.8 |
18.7 |
30.8 |
Net debt to EBITDA
(ii) |
1.5 |
7.2 |
5.6 |
Total debt to capitalization
(iii) |
0.5 |
0.5 |
0.5 |
LTM EBITDA to financial expense
(gross) (iv) |
1.3 |
0.9 |
0.6 |
LTM EBITDA (v) |
285.2 |
188.2 |
110.3 |
LTM Interest and commissions on
loans (vi) |
224.2 |
202.5 |
194.1 |
(1) Derived from
unaudited financial information. |
(2) Derived from
audited financial information. |
(i) Total
debt represents short and long-term loans and financing.
(ii) Net cash represents cash and cash
equivalents, plus financial investments, minus short and long-term
loans and financing.
(iii) Total capitalization represents short and
long-term loans and financing, plus shareholders equity.
(iv) Financial expense (gross) includes only
interest and commissions on loans.
(v) The table at the end of this release sets
forth the reconciliation of Net income to adjusted EBITDA,
calculated on the basis of financial information prepared with IFRS
data, for the indicated periods.
(vi) Interest expense (gross)
includes only interest and commissions on loans, which are included
in Interest income (expense), net presented in the Company’s
consolidated Income Statement.
 |
13
|

FINANCial statements
In the following financial
statements, the Company has continued to present its results with
100% of the assets, liabilities, and financial results of Embraer
including the Commercial Aviation segment and its related
services.
|
|
|
|
|
EMBRAER
S.A. |
CONSOLIDATED STATEMENTS
OF INCOME |
(in millions of
U.S.dollars, except earnings per share) |
|
(1) |
(2) |
|
Three months ended
on |
Twelve months ended
on |
|
31 Dec,
2018* |
31 Dec,
2019 |
31 Dec,
2018 |
31 Dec,
2019 |
Revenue |
1,697.6 |
2,085.0 |
5,071.1 |
5,462.6 |
Cost of
sales and services |
(1,436.2) |
(1,806.4) |
(4,303.1) |
(4,667.1) |
|
Gross
profit |
261.4 |
278.6 |
768.0 |
795.5 |
Operating Income
(expense) |
|
|
|
|
Administrative |
(52.5) |
(60.6) |
(182.6) |
(190.2) |
Selling |
(88.2) |
(71.9) |
(304.2) |
(285.9) |
Research |
(17.5) |
(16.8) |
(46.1) |
(49.4) |
Other
operating income (expense), net |
(96.5) |
(196.8) |
(199.4) |
(346.8) |
Equity in
income (losses) of associates |
(0.1) |
(0.1) |
(0.4) |
(0.2) |
|
Operating profit (loss)
before financial income |
6.6 |
(67.6) |
35.3 |
(77.0) |
Financial
income (expenses), net |
(28.0) |
(26.9) |
(171.5) |
(116.1) |
Foreign
exchange gain (loss), net |
6.5 |
(2.2) |
- |
6.9 |
|
Profit (loss) before
taxes on income |
(14.9) |
(96.7) |
(136.2) |
(186.2) |
Income tax
expense |
18.7 |
(112.5) |
(35.0) |
(130.3) |
|
Losses for the
period |
3.8 |
(209.2) |
(171.2) |
(316.5) |
Attributable
to: |
|
|
|
|
Owners of
Embraer |
2.6 |
(209.8) |
(178.2) |
(322.3) |
Non-controlling
interests |
1.2 |
0.6 |
7.0 |
5.8 |
|
Weighted average number
of shares (in thousands) |
|
|
|
|
Basic |
734.1 |
735.9 |
734.1 |
735.9 |
Diluted |
734.1 |
735.9 |
734.1 |
735.9 |
|
Earnings (losses) per
share |
|
|
|
|
Basic |
0.0035 |
(0.2851) |
(0.2428) |
(0.4380) |
Diluted |
0.0035 |
(0.2851) |
(0.2428) |
(0.4380) |
|
Earnings (losses) per
share - ADS basic (US$) |
0.0142 |
(1.1404) |
(0.9710) |
(1.7519) |
Earnings (losses) per
share - ADS diluted (US$) |
0.0142 |
(1.1404) |
(0.9710) |
(1.7519) |
(1) Derived from
unaudited financial statements. |
(2) Derived from
audited financial statements. |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
 |
14
|

|
|
|
|
|
EMBRAER
S.A. |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
(in millions of
U.S.dollars) |
|
(1) |
(2) |
|
Three Months
Ended |
Twelve Months
Ended |
|
31 Dec,
2018* |
31 Dec,
2019 |
31 Dec,
2018 |
31 Dec,
2019 |
Operating
activities |
|
|
|
|
Net income
(loss) for the period |
3.8 |
(209.2) |
(171.2) |
(316.5) |
Adjustment to net income
for items not affecting cash |
|
|
|
|
Depreciation
of property plant and equipment |
36.0 |
35.8 |
159.2 |
113.9 |
Realization
of government grants |
(1.2) |
(0.5) |
(3.6) |
(2.1) |
Amortization
of intangible assets |
37.4 |
35.5 |
112.7 |
95.9 |
Realization
of contribution from suppliers |
(7.8) |
(9.5) |
(22.0) |
(22.4) |
Loss
(reversal) for inventory obsolescence |
(0.7) |
7.1 |
18.3 |
20.5 |
Adjustment
to market value, inventory, property plant and equipment and
intangible |
73.0 |
64.6 |
99.5 |
102.3 |
Losses on
fixed assets disposal |
7.6 |
17.4 |
19.8 |
28.6 |
Allowance
for doubtful accounts |
(0.4) |
(4.3) |
(7.8) |
(3.1) |
Deferred
income tax and social contribution |
(40.9) |
44.8 |
(21.3) |
33.2 |
Accrued
interest |
(7.9) |
(2.7) |
(6.4) |
1.5 |
Interest on
marketable securities, net |
(8.7) |
(3.3) |
(33.6) |
(30.9) |
Equity in
associates gains and losses |
0.2 |
0.1 |
0.5 |
0.2 |
Share-based
remuneration |
- |
- |
0.1 |
- |
Foreign
exchange gain (loss), net |
(2.5) |
6.3 |
20.7 |
(10.3) |
Mark to
market of the residual value guarantees |
5.2 |
(7.6) |
16.5 |
4.1 |
Other |
(1.0) |
0.3 |
(7.0) |
(4.0) |
Changes in
assets |
|
|
|
|
Financial
investments |
(248.9) |
79.3 |
790.8 |
507.8 |
Derivative
financial instruments |
(12.4) |
(15.8) |
23.9 |
4.0 |
Collateralized accounts
receivable and accounts receivable |
41.1 |
115.5 |
(16.0) |
205.3 |
Contract
assets |
203.6 |
60.5 |
104.1 |
(152.3) |
Customer and
commercial financing |
3.0 |
0.2 |
4.6 |
1.1 |
Inventories |
311.0 |
696.7 |
(281.9) |
147.3 |
Guarantee
deposits |
- |
348.6 |
- |
348.6 |
Other
assets |
45.8 |
(67.4) |
43.5 |
13.2 |
Changes in
liabilities |
|
|
|
|
Trade
accounts payable |
(68.9) |
(9.2) |
70.1 |
(44.6) |
Non-recourse
and recourse debt |
(12.0) |
(253.3) |
(22.6) |
(323.7) |
Other
payables |
(15.2) |
(14.4) |
(16.3) |
(28.7) |
Contract
liabilities |
122.7 |
51.1 |
101.2 |
200.6 |
Taxes and
payroll charges payable |
36.4 |
53.4 |
30.7 |
2.6 |
Contribution
from suppliers |
- |
- |
125.5 |
4.5 |
Financial
guarantees |
(3.7) |
(3.1) |
(21.3) |
(15.9) |
Other
provisions |
(5.1) |
(6.6) |
9.8 |
20.4 |
Unearned
income |
(164.9) |
(1.0) |
(12.9) |
(7.3) |
Net cash generated
(used) by operating activities |
324.6 |
1,009.3 |
1,107.6 |
893.8 |
|
Investing
activities |
|
|
|
|
Proceeds
from sale of property, plant and equipment |
0.1 |
- |
0.3 |
0.1 |
Acquisition
of property, plant and equipment |
(56.7) |
(99.2) |
(154.3) |
(284.5) |
Additions to
intangible assets |
(90.2) |
(91.4) |
(290.3) |
(283.3) |
Additions
investments in subsidiaries and affiliates |
(0.2) |
(0.2) |
(2.4) |
(2.5) |
Financial
investments |
(179.2) |
470.8 |
(76.5) |
977.8 |
Dividends
Received |
- |
- |
0.1 |
0.1 |
Net cash generated
(used) in investing activities |
(326.2) |
280.0 |
(523.1) |
407.7 |
|
Financing
activities |
|
|
|
|
Repayment of
borrowings |
(389.6) |
(145.6) |
(596.3) |
(645.9) |
Proceeds
from borrowings |
7.1 |
17.0 |
124.0 |
400.5 |
Dividends
and interest on own capital |
- |
- |
(40.6) |
(2.0) |
Proceeds
from stock options exercised |
4.4 |
0.6 |
9.5 |
2.2 |
Lease
Payments |
- |
(5.7) |
- |
(11.8) |
Net cash used by
financing activities |
(378.1) |
(133.7) |
(503.4) |
(257.0) |
Increase (Decrease) in
cash and cash equivalents |
(379.7) |
1,155.6 |
81.1 |
1,044.5 |
Effects of exchange rate
changes on cash and cash equivalents |
11.8 |
(4.2) |
(71.0) |
(17.7) |
Cash and cash equivalents
at the beginning of the period |
1,648.8 |
1,156.3 |
1,270.8 |
1,280.9 |
Cash and cash equivalents
at the end of the period ** |
1,280.9 |
2,307.7 |
1,280.9 |
2,307.7 |
(1) Derived from
unaudited financial statements. |
(2) Derived from
audited financial statements |
* Restated 2018 results
for new accounting rules (IFRS 15 and IFRS 9) |
 |
15
|

|
|
|
EMBRAER
S.A. |
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION |
(in millions of U.S.
dollars) |
|
(2) |
(2) |
A S S E T
S |
As of December
31, |
As of December
31, |
|
2018 |
2019 |
Current |
|
|
Cash and
cash equivalents |
1,280.9 |
2,307.7 |
Financial
investments |
1,743.4 |
410.9 |
Trade
accounts receivable, net |
318.0 |
294.2 |
Derivative
financial instruments |
5.4 |
1.4 |
Customer and
commercial financing |
1.2 |
1.5 |
Collateralized accounts
receivable |
218.5 |
4.0 |
Contract
assets |
358.0 |
495.7 |
Inventories |
2,507.0 |
2,384.0 |
Guarantee
deposits |
339.9 |
0.2 |
Income tax
and social contribution |
95.3 |
92.6 |
Other
assets |
203.4 |
199.4 |
|
7,071.0 |
6,191.6 |
Non-Current |
|
|
Financial
investments |
183.5 |
61.3 |
Derivative
financial instruments |
4.1 |
0.7 |
Customer and
commercial financing |
10.5 |
9.2 |
Collateralized accounts
receivable |
17.4 |
13.6 |
Guarantee
deposits |
9.8 |
0.8 |
Deferred
income tax and social contribution |
21.6 |
35.0 |
Other
assets |
105.6 |
93.9 |
|
352.5 |
214.5 |
|
Investments |
6.3 |
8.1 |
Property,
plant and equipment, net |
1,964.7 |
2,058.6 |
Intangible
assets, net |
1,898.8 |
2,051.7 |
Right of use
assets, net |
- |
48.0 |
|
3,869.8 |
4,166.4 |
|
TOTAL
ASSETS |
11,293.3 |
10,572.5 |
(2)Derived from audited
financial information. |
 |
16
|

|
|
|
EMBRAER
S.A. |
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION |
(in millions of U.S.
dollars) |
|
(2) |
(2) |
LIABILITIES |
As of December
31, |
As of December
31, |
|
2018 |
2019 |
Current |
|
|
Trade accounts
payable |
892.1 |
832.7 |
Lease
liabilities |
- |
8.0 |
Loans and
financing |
179.3 |
215.0 |
Recourse and non-recourse
debt |
324.0 |
4.0 |
Other payables |
288.4 |
289.8 |
Contract
liabilities |
1,045.4 |
1,171.7 |
Derivative financial
instruments |
8.1 |
4.5 |
Taxes and payroll charges
payable |
68.4 |
63.8 |
Income tax and social
contribution |
48.0 |
97.5 |
Financial guarantee and residual
value |
51.0 |
30.7 |
Dividends
payable |
5.0 |
1.4 |
Unearned
income |
2.0 |
2.0 |
Provision |
116.9 |
117.3 |
|
3,028.6 |
2,838.4 |
Non-current |
|
|
Lease
liabilities |
- |
39.9 |
Loans and
financing |
3,468.4 |
3,177.3 |
Recourse and non-recourse
debt |
17.4 |
13.6 |
Other payables |
28.6 |
18.0 |
Contract
liabilities |
198.2 |
257.8 |
Taxes and payroll charges
payable |
58.2 |
13.4 |
Deferred income tax and social
contribution |
254.0 |
301.0 |
Financial guarantee and residual
value guarantees |
101.1 |
109.6 |
Unearned
income |
73.2 |
63.7 |
Provision |
125.5 |
125.2 |
|
4,324.6 |
4,119.5 |
|
TOTAL
LIABILITIES |
7,353.2 |
6,957.9 |
|
Shareholders'
equity |
|
|
Capital |
1,551.6 |
1,551.6 |
Treasury
shares |
(31.4) |
(26.5) |
Revenue
reserves |
2,433.7 |
2,110.1 |
Share-based
remuneration |
37.4 |
37.4 |
Accumulated other comprehensive
loss |
(145.6) |
(154.9) |
Non-controlling
interests |
94.4 |
96.9 |
Total Shareholders'
equity |
3,940.1 |
3,614.6 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
11,293.3 |
10,572.5 |
(2)Derived from audited
financial information. |
 |
17
|

DISCONTINUED OPERATIONS
The terms and conditions approved
on December 17, 2018 defined the creation of a joint venture
(Boeing-Brazil Commercial) contemplating assets from Embraer’s
Commercial Aviation segment and related services (Services &
Support segment) with an 80% interest to be held by Boeing and 20%
by Embraer. On January 10, 2019 the Brazilian Federal Government
informed that it would not exercise its veto right on the strategic
partnership between Boeing and Embraer, and on February 26, 2019
the shareholders of the Company approved the creation of the joint
venture under the strategic partnership.
The Company’s assets and
liabilities related to the Commercial Aviation segment and related
services were measured and are being presented in the condensed
interim financial statements as assets and liabilities held for
sale, and the respective results have been presented as
discontinued operations, beginning February 26, 2019, the date of
shareholder approval of the transaction when the “highly probable”
criteria for presentation of discontinued operations was
reached.
The assets and liabilities held
for sale as of December 31, 2019 related to the Commercial Aviation
segment and related services are presented below. The segregation
of these assets and liabilities considered their use in the
manufacturing of products and services and
administrative/operational support of the Commercial Aviation
segment and related services, as well as the terms defined between
Embraer and Boeing in the Master Transaction Agreement (MTA) of the
strategic partnership.
|
|
|
|
|
in millions
of U.S.dollars |
|
in millions of
U.S.dollars |
|
(2) |
|
|
(2) |
A S S E T
S |
As of December
31, |
|
L
I A B I L I T I E S |
As of December
31, |
|
2019 |
|
|
2019 |
|
|
|
|
|
Cash and
cash equivalents |
1,452.5 |
|
Trade
accounts payable |
474.7 |
Financial
investments |
47.5 |
|
Lease
liability |
9.3 |
Trade
accounts receivable, net |
144.8 |
|
Loans and
financing |
3,301.3 |
Inventories |
1,079.6 |
|
Other
payables |
132.6 |
Customer and
commercial financing |
10.7 |
|
Contract
liabilities |
746.1 |
Contract
assets |
33.8 |
|
Taxes and
payroll charges payable |
8.9 |
Guarantee
deposits |
0.4 |
|
Income tax
and social contribution |
54.9 |
Income tax
and social contribution |
2.1 |
|
Financial
guarantee and residual value guarantee |
140.3 |
Other
assets |
111.4 |
|
Unearned
income |
47.6 |
Deferred
income tax and social contribution |
34.3 |
|
Provisions |
39.6 |
Property,
plant and equipment |
1,089.7 |
|
Deferred
income tax and social contribution |
28.7 |
Intangible
assets |
1,157.6 |
|
|
|
Right of
use |
10.2 |
|
|
|
|
|
|
|
|
4,984.0 |
|
|
|
Net assets
to be contributed by Embraer S.A. |
190.6 |
|
TOTAL |
5,174.6 |
|
TOTAL |
5,174.6 |
(2)Derived from audited
financial information. |
Depreciation and amortization of
non-current assets held for sale, including property, plant, and
equipment and intangible assets were ceased as of February 26, 2019
due to the expectation of realization of value of these assets by
sale instead of continued use as of this date.
Embraer’s cumulative results for
fiscal year 2019 ended December 31, 2019 considering the
segregation of continuing and discontinued operations are presented
below. The following components are excluded from results from
continuing operations:
·
Net revenues, cost of products
and services sold, and general expenses directly associated with
the Commercial Aviation segment and related services;
·
G&A expenses of certain
corporate areas that will be shared among Embraer’s and
Boeing-Brazil Commercial’s operations;
 |
18
|

·
Other operating income and
expenses directly associated with the discontinued operations.
Corporate projects of the Company are fully maintained as a part of
continuing operations;
·
Financial expenses on loans and
financing interest that will be contributed, including FX
gains/losses on financial assets and liabilities held for
sale;
·
Separation costs related to the
carve out of the commercial aviation and related services business.
These costs are mainly allocated to discontinued
operations;
·
Corporate and other operating
expenses previously shared among all business units and allocated
to each reporting segment are fully consolidated as expenses of
Embraer Continuing Operations. In 2019, US$ 81.5 million of
corporate expenses that were previously allocated to the
discontinued operations businesses are fully recognized in the
Company’s consolidated results of continuing operations. This
amount was US$ 77.3 million in 2018;
·
Excluding the US$ 81.5 million in
the aforementioned corporate expenses as well as US$ 71.6 million
in impairment charges in the Executive Jets segment, the adjusted
operating loss of continuing operations would have been US$ (9.3)
million, representing a margin of -0.4% in 2019. For 2018 under the
same premise, adjusted operating loss of continuing operations
would have been US$ (16.8) million, representing a margin of
-0.8%.
|
|
|
in millions of
U.S.dollars |
|
(2) |
|
Twelve months ended
on |
|
31 Dec,
2018
|
31 Dec,
2019
|
CONTINUING
OPERATIONS |
|
|
Revenue |
2,127.7
|
2,618.1 |
Cost of
sales and services |
(1,929.6)
|
(2,259.9) |
|
Gross
profit |
198.1
|
358.2 |
Operating Income
(Expense) |
|
|
Administrative |
(136.1) |
(136.7) |
Selling |
(151.4) |
(148.2) |
Research |
(19.5) |
(19.7) |
Other
operating income (expense), net |
(173.8) |
(215.8) |
Equity in
gain or losses of associates |
(0.4) |
(0.2) |
|
Operating profit (loss)
before financial income |
(283.1) |
(162.4) |
Financial
expenses, net |
6.1 |
61.5 |
Foreign
exchange gain, net |
(5.0) |
(0.3) |
|
Loss before taxes on
income |
(282.0) |
(101.2) |
Income tax
expense |
20.7 |
(103.5) |
|
Loss of the continuing
operations |
(261.3) |
(204.7) |
|
Net Income
(loss) of the discontinued operation |
90.1 |
(111.8) |
|
Loss for the
period |
(171.2) |
(316.5) |
(2) Derived from
audited financial statements. |
 |
19
|

The Company’s balance sheet with
the segregation of assets and liabilities of the Commercial
Aviation segment and related services as Assets Held for Sale and
Liabilities Held for Sale is presented below.
|
|
|
EMBRAER
S.A. |
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION |
(in millions of U.S.
dollars) |
|
(2) |
(2) |
A S S E T
S |
As of December
31, |
As of December
31, |
|
2018 |
2019 |
Current |
|
|
Cash and
cash equivalents |
1,280.9 |
855.2 |
Financial
investments |
1,743.4 |
409.8 |
Trade
accounts receivable, net |
318.0 |
149.4 |
Derivative
financial instruments |
5.4 |
1.4 |
Customer and
commercial financing |
1.2 |
0.0 |
Collateralized accounts
receivable |
218.5 |
4.0 |
Contract
assets |
358.0 |
461.9 |
Inventories |
2,507.0 |
1,304.4 |
Guarantee
deposits |
339.9 |
0.1 |
Income tax
and social contribution |
95.3 |
90.5 |
Other
assets |
203.4 |
120.1 |
|
7,071.0 |
3,396.8 |
|
Assets held
for sale |
0.0 |
5,174.6 |
|
7,071.0 |
8,571.4 |
Non-Current |
|
|
Financial
investments |
183.5 |
14.9 |
Derivative
financial instruments |
4.1 |
0.7 |
Customer and
commercial financing |
10.5 |
0.0 |
Collateralized accounts
receivable |
17.4 |
13.6 |
Guarantee
deposits |
9.8 |
0.5 |
Deferred
income tax and social contribution |
21.6 |
0.7 |
Other
assets |
105.6 |
61.8 |
|
352.5 |
92.2 |
|
Investments |
6.3 |
8.1 |
Property,
plant and equipment, net |
1,964.7 |
968.9 |
Intangible
assets, net |
1,898.8 |
894.1 |
Right of use
assets, net |
0.0 |
37.8 |
|
3,869.8 |
1,908.9 |
|
TOTAL
ASSETS |
11,293.3 |
10,572.5 |
(2)Derived from audited
financial information. |
 |
20
|

|
|
|
EMBRAER
S.A. |
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION |
(in millions of U.S.
dollars) |
|
(2) |
(2) |
LIABILITIES |
As of December
31, |
As of December
31, |
|
2018 |
2019 |
Current |
|
|
Trade accounts
payable |
892.1 |
358.0 |
Lease
liabilities |
0.0 |
5.0 |
Loans and
financing |
179.3 |
14.9 |
Recourse and non-recourse
debt |
324.0 |
4.0 |
Other payables |
288.4 |
162.5 |
Contract
liabilities |
1,045.4 |
649.1 |
Derivative financial
instruments |
8.1 |
4.5 |
Taxes and payroll charges
payable |
68.4 |
54.9 |
Income tax and social
contribution |
48.0 |
42.6 |
Financial guarantee and residual
value |
51.0 |
0.0 |
Dividends
payable |
5.0 |
1.4 |
Unearned
income |
2.0 |
2.0 |
Provision |
116.9 |
103.1 |
|
3,028.6 |
1,402.0 |
|
Liabilities held for
sale |
0.0 |
4,984.0 |
|
3,028.6 |
6,386.0 |
Non-current |
|
|
Lease
liabilities |
- |
33.6 |
Loans and
financing |
3,468.4 |
76.1 |
Recourse and non-recourse
debt |
17.4 |
13.6 |
Other payables |
28.6 |
12.7 |
Contract
liabilities |
198.2 |
34.3 |
Taxes and payroll charges
payable |
58.2 |
13.4 |
Deferred income tax and social
contribution |
254.0 |
272.3 |
Financial guarantee and residual
value guarantees |
101.1 |
- |
Unearned
income |
73.2 |
16.1 |
Provision |
125.5 |
99.8 |
|
4,324.6 |
571.9 |
|
TOTAL
LIABILITIES |
7,353.2 |
6,957.9 |
|
Shareholders'
equity |
|
|
Capital |
1,551.6 |
1,551.6 |
Treasury
shares |
(31.4) |
(26.5) |
Revenue
reserves |
2,433.7 |
2,110.1 |
Share-based
remuneration |
37.4 |
37.4 |
Accumulated other comprehensive
loss |
(145.6) |
(154.9) |
Non-controlling
interests |
94.4 |
96.9 |
Total Shareholders'
equity |
3,940.1 |
3,614.6 |
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY |
11,293.3 |
10,572.5 |
(2)Derived from audited
financial information. |
 |
21
|

Investor Relations
Eduardo Couto, Chris Thornsberry, Caio Pinez,
Nádia Santos and Viviane Pinheiro.
(+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 4Q19 Results on Thursday,
March 26, 2020 at 10:30 AM (SP) / 9:30 AM (NY).
The conference call will also be broadcast live
over the web at ri.embraer.com.br
Conference ID:
EMBRAER
Telephones USA / Canada: +1
(412) 717-9627 / +1 (844) 204-8942
Telephones U.K.: +44 20
3795-9972
Telephones Brazil: +55 (11)
4210-1803 / +55 (11) 3181-8565
ABOUT EMBRAER
A global aerospace company headquartered in
Brazil, Embraer celebrates its 50th anniversary with businesses in
Commercial and Executive aviation, Defense & Security and
Agricultural Aviation. The company designs, develops, manufactures
and markets aircraft and systems, providing Services & Support
to customer after-sales.
Since it was founded in 1969, Embraer has
delivered more than 8,000 aircraft. On average, about every 10
seconds an aircraft manufactured by Embraer takes off somewhere in
the world, transporting over 145 million passengers a
year.
Embraer is the leading manufacturer of
commercial jets up to 150 seats and the main exporter of high
value-added goods in Brazil. The company maintains industrial
units, offices, service and parts distribution centers, among other
activities, across the Americas, Africa, Asia and
Europe.
For more information, please visit embraer.com
This document may contain projections,
statements and estimates regarding circumstances or events yet to
take place. Those projections and estimates are based largely on
current expectations, forecasts of future events and financial
trends that affect Embraer’s businesses. Those estimates are
subject to risks, uncertainties and suppositions that include,
among others: general economic, political and trade conditions in
Brazil and in those markets where Embraer does business;
expectations of industry trends; the Company’s investment plans;
its capacity to develop and deliver products on the dates
previously agreed upon, and existing and future governmental
regulations. The words “believe”, “may”, “is able”, “will be able”,
“intend”, “continue”, “anticipate”, “expect” and other similar
terms are intended to identify potentialities. Embraer does not
undertake any obligation to publish updates nor to revise any
estimates due to new information, future events or any other facts.
In view of the inherent risks and uncertainties, such estimates,
events and circumstances may not take place. The actual results may
therefore differ substantially from those previously published as
Embraer expectations.
 |
22
|
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Date: March 26, 2020
|
|
|
|
|
Embraer S.A.
|
|
|
By:
|
|
/s/ Antonio Carlos Garcia
|
|
|
Name:
|
|
Antonio Carlos Garcia
|
|
|
Title:
|
|
Executive Vice President, Financial and Investor
Relations
|
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