Embraer S.A.
Created on August 19, 1969, by the initiative of the federal government, Embraer transformed science and technology in to engineering and industrial capacity. Upon completing 41 years, it strengthened its pursuit of excellence by making a change in its corporate name to Embraer S.A., and also expanded the business and market areas, which will allow the Company to promote or carry out technical activities linked to the development, production and support of aircraft, as well as carrying out other technological, industrial, commercial and related services of the defense and security areas. This expansion will provide opportunities for diversification and non-organic growth, via investments in other areas, and allow the Company to engage in anticyclical activities, in relation to the fluctuating demands of the aeronautics industry.
GRI 2.9
After it was privatized, in 1994, the Company experienced an expansion process, and today, it is involved in the airline and executive jet markets, along with the defense and security segments. It also provides after-sales support and services to customers in 95 countries, and has become the world's largest manufacturer of aircraft with up to 120 seats, and one of the largest Brazilian exporters. It has produced and delivered more than five thousand units in a highly competitive, cash-intensive market with high technological content.
The Company's stocks are traded on the São Paulo Stock Exchange (BM&FBOVESPA), and for ten years it has been listed with the New York Stock Exchange (NYSE). Furthermore, it is listed with the BM&FBOVESPA Corporate Sustainability Index (ISE) and the Dow Jones Sustainability Index (DJSI).
Embraer closed out 2010 with 17,149 direct employees1 – 16,133 in Brazil and 1,016 abroad – all of whom are committed to the goal of changing the way people and products are transported, always based on high technology, safety and customer satisfaction.
1. Number does not include employees of partially owned subsidiaries; OGMA – Indústria Aeronáutica de Portugal S.A. (1,512 employees); or HEAI – Harbin Embraer Aircraft Industry, a factory in Harbin, China, in a joint venture with the Chinese state-owned AVIC (223 employees), which has 1,735 direct employees.
Embraer's Worldwide Operations
GRI 2.5
"We don't want to change the
world, only the way the world flies."
Global Presence
Today, Embraer is one of the largest aerospace companies in the world, due to its constant and determined pursuit of fully satisfying its customers. Now holding a part of the global market and having important and internationally renowned partners, for more than 40 years Embraer has been contributing to the integration of the world through aviation, shortening distances between people and offering aircraft with the most modern technology, versatility and comfort.
Embraer invests in its global presence in order to offer products, services and attention that meet the needs of its customers and markets. Therefore, it maintains industrial and operational units in Brazil and in several other countries. The Company's headquarters are located in Brazil, in the city of São José dos Campos, in the state of São Paulo.
GRI 2.4
The Company maintains its engineering, development and manufacturing activities in Brazil, with five industrial units located in São José dos Campos, Eugênio de Melo, Botucatu and Gavião Peixoto, as well as two logistical centers in Taubaté and Campinas, all in the state of São Paulo.
In order to support its after-sales operations, Embraer has Company-owned service and spare parts sales centers in São José dos Campos (São Paulo – Brazil); Fort Lauderdale (Florida), Mesa (Arizona), Nashville (Tennessee), and Windsor Locks (Connecticut), in the U.S.; Villepinte (near Roissy – Charles de Gaulle Airport) in France; and in Singapore, as well as a specialized worldwide authorized network. Embraer also has distribution centers for spare parts and specialized technical staff in China, to give support to customers.
Support for sales, marketing and promotional activities is provided by the offices in São José dos Campos, Fort Lauderdale, Villepinte, Singapore and Beijing.
With a majority holding, in association with EADS, Embraer controls 65% of the capital of OGMA – Indústria Aeronáutica de Portugal S.A., which is an aeronautics maintenance and production company. It also holds 51% of HEAI – Harbin Embraer Aircraft Industry, which is a factory in Harbin, China, in a joint venture with the Chinese state-owned AVIC.
GRI 2.5
New Factories – The Company inaugurated its first industrial unit in the United states in February 2011 at Melbourne International Airport, in the Florida city by the same name. The facility will be initially dedicated to assembling the Phenom jets and supporting the executive jets business. In addition, Embraer is adding two new industrial units in the city of Évora, in the Alentejo region of Portugal, which will be dedicated to manufacturing milled metallic structures and sets made of composite materials.
GRI 2.5
New Corporate Unit –In 2011, the Company's defense and security business began to be managed by a new corporate unit, whose creation was announced in December 2010. Embraer Defense and Security brings together not only the production and support of military aircraft and systems (patrol and surveillance), but also other types of military and civilian security projects.
This separation of the defense and security business from the rest constitutes a big opportunity for Embraer, because it will basically change the verticalization of functions. Such areas as human resources and the purchase of supplies for assembling aircraft will report directly to the new company, thus strengthening the interfaces and facilitating even more the decision-making processes.
Corporate Structure
GRI 2.3
In order to support its operational activities, Embraer has a corporate structure that has the objective of meeting the demands and particularities of each Country in which it is involved, besides improving and organizing the management of the group's companies, while providing the integration of all operations and customer satisfaction.
Participation in Associations and Commitments
Embraer adopts principles and commitments in association with a variety of organizations, so as to expand its social involvement and develop the continuous improvement processes for its management. The Company participates proactively and with solidarity in issues relevant to human, environmental and economic development for the aerospace industry.
Embraer has been one of the signers of the UN Global Compact since 2008. When it joined, it made a public commitment to develop policies and strategies and to implement and monitor actions that seek to promote human rights, labor relations and the environment and fight corruption by making every effort to perfect the interaction processes of the organization, whether internally or externally.
GRI 4.2
Table of Indexes and Highlights2
GRI 2.8| EC1
| Table of Indexes and Highlights [R$ Million] |
2010 |
Variation
2010 v 2009 (%) |
2009 |
2008 |
| Net Revenues |
9,381 |
 |
14 |
10,871 |
11,747 |
| Gross Margin (%) |
19.2 |
|
1 |
19.4 |
20.5 |
| Operating Income |
686 |
|
11 |
767 |
1,112 |
| Operating Margin (%) |
7.3 |
 |
3 |
7.1 |
9.5 |
| EBITDA |
1,069 |
|
12 |
1,219 |
1,500 |
| EBITDA Margin (%) |
11.4 |
|
2 |
11.2 |
12.8 |
| Net Profits |
574 |
|
37 |
912 |
429 |
| Net Margin (%) |
6.1 |
|
27 |
8.4 |
3.6 |
| Investments 3 |
573 |
|
30 |
824 |
962 |
| Net Indebtedness |
2,391 |
|
33 |
3,584 |
4,300 |
| ROE (%) |
11.0 |
|
40 |
18.2 |
8.1 |
| ROCE – US$ (%) |
16.1 |
|
2 |
15.8 |
17.1 |
| Dividends Distributed |
201 |
|
12 |
229 |
224 |
| Total Assets |
13,981 |
|
10 |
15,478 |
21,499 |
| Shareholders Equity |
5,218 |
|
4 |
5,020 |
5,971 |
| Firm Order Backlog (US$ Billion) |
15.6 |
|
6 |
16.6 |
20.9 |
| Revenue Backlog (Years) |
3.0 |
|
6 |
3.3 |
3.8 |
| Number of Employees |
17,149 |
|
2 |
16,853 |
23,509 |
| EBIT per Employee (R$ 1,000) |
40 |
|
7 |
43 |
47 |
2. The numbers calculated for 2009 and 2010 are in accordance with International Financial Reporting Standards (IFRS), and those for 2008 are in line with Law No. 11,638/07.
3. Values include investments in Development and Property, Plant and Equipment (PP&E).
Revenue by Segment
|
|
Revenue by Region
|
|
Aircraft Deliveries by Segment
|
|
* Legacy and Lineage ** Phenom
Jets delivered to the Defense and Security market are accounted for in the segment according to the model delivered. |
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years Embraer has worked to bring the planet together through aviation, with the most modern aircraft technology and comfort.
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