REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class: |
Trading Symbol |
Name of each exchange on which registered | ||
☒ | Accelerated Filer | ☐ | Non-accelerated filer | ☐ | ||||||
Emerging growth company |
U.S. GAAP ☐ | |
☒ | Other ☐ | |||||
by the International Accounting Standards Board |
• | some of the financial data reflects the effect of rounding; |
• | aircraft ranges are indicated in nautical miles; |
• | one nautical mile is equal to approximately 1.15 ordinary or “statute” miles, or approximately 1.85 kilometers; |
• | aircraft speeds are indicated in nautical miles per hour, or knots, or in Mach, which is a measure of the speed of sound; |
• | the term “regional jet” refers to commercial jet aircraft in the 35-120 seat-segment; |
• | the term “commercial aircraft” as it applies to Embraer, refers to our aircraft in the up to 150 seat-segment, which includes our regional jets; |
• | the terms “entry-level jet” and “light jet” refer to executive jets that usually carry from four to eight passengers and up to nine passengers, respectively, that are designed for short take-off distances; |
• | the term “medium cabin jet” refers to executive jets that usually carry up to 12 passengers and can cover distances ranging from 1,700 to 3,900 nautical miles; |
• | the term “large jet” refers to executive jets that usually carry up to 19 passengers and can cover distances greater than 4,000 nautical miles; |
• | the term “ultra-large jet” refers to executive jets that usually have longer ranges and over-sized cabin spaces and can carry up to 19 passengers; |
• | the term “executive jets,” as it applies to us, refers to our aircraft sold to companies, including fractional ownership companies, charter companies and air-taxi companies and high-net-worth |
• | the term “Boeing Transaction” refers to the Master Transaction Agreement (the “MTA” or “Master Transaction Agreement”) entered into by us on January 24, 2019, collectively with certain other transaction documents with Boeing and certain subsidiaries of Embraer or Boeing, which were wrongfully terminated by Boeing, pursuant to which a subsidiary of Boeing would acquire a controlling stake in Embraer’s Commercial Aviation business unit and Embraer, or a subsidiary of Embraer, and Boeing, or a subsidiary of Boeing, would form a joint venture for the promotion and development of new markets and applications for the C-390 Millennium multi-mission transport aircraft. |
• | general economic, political and business conditions in Brazil and in our other markets; |
• | changes in competitive conditions and in the general level of demand for our products; |
• | management’s expectations and estimates concerning our future financial performance, financing plans and programs, and the effects of competition; |
• | the effects of customers canceling, modifying or rescheduling orders; |
• | the effect on our revenues of changing priorities or reductions in the Brazilian government or international government defense budgets; |
• | our level of indebtedness; |
• | our capital expenditure plans; |
• | inflation and fluctuations in exchange rates; |
• | the impact of volatile fuel prices and the airline industry’s response; |
• | our ability to develop and deliver our products on a timely basis; |
• | availability of sales financing for our existing and potential customers; |
• | existing and future governmental regulations; |
• | our relationship with our workforce; |
• | the outbreak of communicable diseases in Brazil and other countries; and |
• | other risk factors, including those set forth under “Item 3. Key Information—D. Risk Factors.” |
Item 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
Item 2. |
OFFER STATISTICS AND EXPECTED TIMETABLE |
Item 3. |
KEY INFORMATION |
D. |
Risk Factors |
• | interest rates; |
• | currency fluctuations; |
• | monetary policies; |
• | inflation; |
• | liquidity of capital and lending markets; |
• | tax policies; |
• | labor regulations; |
• | energy and water shortages and rationing; and |
• | other political, social and economic developments in or affecting Brazil. |
• | Approximately 13.2% of our total costs are incurred and denominated in reais |
• | Because taxes on income are largely determined and paid in reais real real real |
• | Depreciation of the real against the U.S. dollar or other currencies would reduce our real-denominated revenues from our Defense and Security business unit, when converted to the U.S. dollar as our functional currency. |
• | Appreciation of the real |
Item 4. |
INFORMATION ON THE COMPANY |
(i) | carbon reduction: we expect to reach carbon neutrality by 2040, use 100% renewable energy by 2030 and produce products to support net zero emissions aviation by 2050; |
(ii) | social responsibility: we expect to reach 50% of diversity hiring in our entry level programs and 20% of women in senior leadership positions by 2025. We also aim to help more than 80% of Embraer schools’ students to be admitted to public universities; and |
(iii) | corporate governance standards: we aim to maintain the highest international governance standards and robust ethics and compliance programs. |
• | Performance |
• | Ground servicing |
• | Cabin and cargo space |
• | A220, former CSeries, 110 to 150-seat jets acquired by Airbus from Bombardier, which entered into service in 2016; |
• | ARJ21, a 90-seat regional jet produced by the Commercial Aircraft Corporation of China, or COMAC; |
• | SSJ100, a 103-seat regional jet produced by JSC Sukhoi Company; |
• | SpaceJet (former MRJ), a 76 to 88-seat jet under development by Mitsubishi Aircraft Corporation, which had its development suspended; |
• | CRJ-700, CRJ-900 and CRJ-1000, 70-seat, 86-seat and 98-seat regional jets, respectively, formerly produced by Bombardier, acquired by Mitsubishi Heavy Industries (MHI); |
• | Dash 8-400 (former Q-400) a 72-seat turboprop program from Bombardier acquired by Havilland Canada which belongs to Viking Air; |
• | ATR-72, a 68-seat turboprop produced by ATR Aircraft. |
• | field support, which provides convenient, accessible, on-site or remote assistance for all operational and technical issues in order to maximize customer performance; |
• | technical support, which serves technical needs through analytics, engineering expertise, and real-time fleet monitoring; |
• | flight operations, which supports the efficiency and safety of airline operations through tailored solutions, consulting, supervision and training resources; |
• | aircraft modification, which provides execution and coordination of system upgrades for improved fleet performance and cabin modifications for enhanced onboard amenities; |
• | materials, which ensures parts availability and materials management for both scheduled and unscheduled maintenance; |
• | maintenance, which provides optimized maintenance solutions based on best practices for efficiency and safety; |
• | training, which prepares flight crew, maintenance technicians and operations personnel for the highest levels of competence; and |
• | digital solutions, which deploys the internet as the core communication channel for 24 hours a day, seven days a week collaboration and information exchange. |
• | Fort Lauderdale, Florida, United States, which supports our customers in North America; |
• | Amsterdam, Netherlands, and Paris, France, which supports our customers in Europe, Africa, the Middle East and Central Asia; |
• | Singapore, which supports our customers in the Asia Pacific region; |
• | Beijing, China, which supports our customers in China; and |
• | São José dos Campos, Brazil, which supports our customers in Latin America. |
• | a spare parts distribution center; |
• | technical and material field support teams with field engineers and customer account managers; |
• | warranty and repair administration offices; and |
• | services sales managers. |
• | Customer Care Center, providing an integrated solution of technical and spare parts support available 24 hours a day, seven days a week; |
• | spare parts planning and material engineering; |
• | technical support; |
• | flight operations support; |
• | maintenance support engineering; |
• | maintenance Repair and Overhaul, or MRO, network management strategy and policy; |
• | business development support; |
• | technical publications development; and |
• | technical services, such as: maintenance training, Digital Solutions, engineering services, pilot services and aircraft modifications. |
• | Flight-Hour Pool Program; |
• | Parts Consignment Program; |
• | Embraer Collaborative Inventory Plan; |
• | Embraer Parts Exchange Program; and |
• | Customer Stock Optimization. |
• | STAECO, in Jinan, China; |
• | HNA Technik, in Tianjin, China; |
• | SIA Engineering Company, in Angeles City, Philippines; |
• | LOT AMS, Warszawa, Poland; |
• | Aspire in Lanseria, South Africa; and |
• | Kenya Airways, in Embakasi, Kenya. |
• | a customer support satisfaction survey performed annually in order to identify our competitive position; |
• | specific action plans and commitments with each customer, known as Customer Integrated Action Plans; |
• | teamwork and systematic identification and integrated action plans to solve problems affecting us, our suppliers and customers; |
• | periodic dedicated meetings at the customer’s headquarters; |
• | Embraer Operators’ Conferences, which are yearly events typically held in regions of the world where we have customer operators; |
• | Maintenance Cost Workshop, which is typically a yearly event where operators share best maintenance practices and discuss cost reduction initiatives; |
• | interactive forums for discussions in the web portal FlyEmbraer, fostering the exchange of experiences among customers and Embraer; |
• | participation in international fairs related to maintenance, technology, customer relationship management and others; and |
• | an internal program, Embraer Excellence in Customer Experience, which aims to address changes in the Services and Support area of the commercial aviation division, in order to elevate the performance of our Commercial Aviation business unit, covering current and future market needs, with the purpose of obtaining the highest levels of customer satisfaction based on their experience in the commercial aviation industry. |
• | Alverca, Portugal, which we refer to as OGMA, which became operational in March 2005 and provides services to our commercial aviation, executive aviation and defense and security customers; and |
• | Gavião Peixoto, in the State of São Paulo, Brazil, where we have a dedicated service center for defense and security customers. |
Year ended December 31, (1) |
||||||||||||||||||||
2021 |
2020 |
2019 |
2018 |
2017 |
||||||||||||||||
(in US$ millions) |
||||||||||||||||||||
Commercial Aviation |
||||||||||||||||||||
North America |
687.6 | 858.4 | 1,399.8 | 1,449.4 | 1,795.5 | |||||||||||||||
Latin America (except Brazil) |
0.4 | 17.0 | 11.9 | 0.5 | ||||||||||||||||
Asia Pacific |
3.3 | 4.8 | 256.9 | 324.1 | 670.3 | |||||||||||||||
Brazil |
1.8 | 3.0 | 0.7 | 0.2 | 0.9 | |||||||||||||||
Europe |
494.5 | 215.4 | 508.2 | 519.1 | 200.1 | |||||||||||||||
Others |
129.2 | 32.4 | 51.8 | 53.6 | 104.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
1,316.4 |
1,114.4 |
2,234.4 |
2,358.3 |
2,771.4 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Executive Aviation |
||||||||||||||||||||
North America |
807.2 | 1,054.4 | 1,181.6 | 936.7 | 1,006.8 | |||||||||||||||
Latin America (except Brazil) |
4.1 | — | 21.6 | 22.5 | 0.6 | |||||||||||||||
Asia Pacific |
27.6 | — | 20.3 | 1.6 | 94.1 | |||||||||||||||
Brazil |
62.1 | — | 54.7 | 16.1 | 17.1 | |||||||||||||||
Europe |
229.1 | 17. 1 | 118.8 | 127.4 | 161.7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
1,130.1 |
1,071.5 |
1,397.0 |
1,104.3 |
1,280.3 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Defense and Security |
||||||||||||||||||||
North America |
58.1 | 108.8 | 66.5 | 66.6 | 93.3 |
Year ended December 31, (1) |
||||||||||||||||||||
2021 |
2020 |
2019 |
2018 |
2017 |
||||||||||||||||
(in US$ millions) |
||||||||||||||||||||
Latin America (except Brazil) |
3.0 | 49.2 | 2.7 | 66.0 | 5.4 | |||||||||||||||
Asia Pacific |
80.8 | 81.6 | 1.8 | 1.0 | 13.7 | |||||||||||||||
Brazil |
285.8 | 297.6 | 431.8 | 259.5 | 587.1 | |||||||||||||||
Europe |
158.7 | 108.4 | 39.0 | 56.7 | 133.5 | |||||||||||||||
Others |
8.0 | 8.3 | 34.5 | 10.3 | 20.7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
594.4 |
653.9 |
576.3 |
460.1 |
853.7 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Services and Support |
||||||||||||||||||||
North America |
614.0 | 509.7 | 697.0 | 501.3 | 421.00 | |||||||||||||||
Latin America (except Brazil) |
30.7 | 26.4 | 35.1 | 50.1 | 45.1 | |||||||||||||||
Asia Pacific |
97.9 | 75.2 | 98.0 | 105.1 | 81.4 | |||||||||||||||
Brazil |
106.1 | 72.3 | 107.6 | 156.1 | 133.3 | |||||||||||||||
Europe |
234.4 | 203.1 | 257.7 | 262.9 | 196.3 | |||||||||||||||
Others |
49.1 | 33.3 | 50.3 | 57.3 | 45.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
1,132.2 |
920.0 |
1,245.7 |
1,132.8 |
922.2 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other Related businesses |
||||||||||||||||||||
North America |
1.3 | 1.2 | 0.7 | 5.0 | 21.3 | |||||||||||||||
Brazil |
22.8 | 10.1 | 8.5 | 10.6 | 10.5 | |||||||||||||||
Europe |
— | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
24.1 |
11.3 |
9.2 |
15.6 |
31.8 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
• | Limit net carbon emissions to 2021 levels, even as operations grow (“carbon neutral growth”); |
• | Achieve carbon neutrality in operations by 2040, through the acquisition of electricity 100% from renewable sources, the increasing use of sustainable aviation fuel (SAF) in operations from 2021 and the compensation of residual emissions that are not reduced through efficiency projects, alternative energy available or new technologies. |
• | Develop sustainable disruptive products, services and technologies, including electrification, hybrids, biofuels, including SAF and other innovative alternative energies; |
• | Launch “eVTOL” aircraft with zero emission by 2026; |
• | Leverage diversity in the hiring of gateway programs, in leadership positions and in the aeronautical specialization program maintained by the company. |
C. |
Organizational Structure |
D. |
Property, Plant and Equipment |
Item 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
Year ended December 31, |
||||||||||||
Other Data: Aircraft delivered: |
2021 |
2020 |
2019 |
|||||||||
To the Commercial Aviation Market |
48 |
44 |
89 |
|||||||||
EMBRAER 175 |
27 | 32 | 67 | |||||||||
EMBRAER 190 |
— | 1 | 5 | |||||||||
EMBRAER 195 |
— | — | 3 | |||||||||
EMBRAER 190-E2 |
2 | 4 | 7 | |||||||||
EMBRAER 195-E2 |
19 | 7 | 7 | |||||||||
To the Defense and Security Market (1) |
17 |
24 |
13 |
|||||||||
C-390 |
2 | 2 | ||||||||||
Super Tucano |
14 | 16 | 5 | |||||||||
Modernization Programs |
3 | 6 | 3 | |||||||||
Combat |
— | — | — | |||||||||
Special Mission |
— | — | 3 | |||||||||
To the Executive Aviation Market |
93 |
86 |
109 |
|||||||||
Legacy 600/650 |
— | 1 | 5 | |||||||||
Legacy 450/500 |
— | 1 | 26 | |||||||||
Praetor 500 |
14 | 10 | 3 | |||||||||
Praetor 600 |
17 | 18 | 13 | |||||||||
Phenom 100 |
6 | 6 | 11 | |||||||||
Phenom 300 |
56 | 50 | 51 | |||||||||
To the General Aviation Market |
42 |
22 |
15 |
|||||||||
Light Propeller Aircraft |
42 | 22 | 15 | |||||||||
|
|
|
|
|
|
|||||||
Total delivered (in aircraft) |
200 |
176 |
226 |
|||||||||
|
|
|
|
|
|
As of December 31, |
||||||||||||
Other Data: Aircraft in backlog |
2021 |
2020 |
2019 |
|||||||||
In the Commercial Aviation Market |
325 |
281 |
338 |
|||||||||
EMBRAER 175 |
147 | 132 | 181 | |||||||||
EMBRAER 190 |
3 | 3 | 4 | |||||||||
EMBRAER 190 – E2 |
5 | 7 | 16 |
As of December 31, |
||||||||||||
Other Data: Aircraft in backlog |
2021 |
2020 |
2019 |
|||||||||
EMBRAER 195 – E2 |
170 | 139 | 137 | |||||||||
In the Defense and Security Market (1) |
71 |
62 |
80 |
|||||||||
C-390 |
25 | 31 | 31 | |||||||||
Super Tucano |
— | 14 | 27 | |||||||||
Modernization |
2 | 5 | 11 | |||||||||
Combat |
15 | 15 | 15 | |||||||||
Special Mission (2) |
1 | — |
— | |||||||||
In the Executive Aviation Market |
221 |
84 |
94 |
|||||||||
Phenom 100/300, Legacy 650, Legacy 450/500, Praetor 500/600 |
221 | 84 | 94 | |||||||||
Total backlog (in aircraft) |
589 |
430 |
516 |
|||||||||
|
|
|
|
|
|
|||||||
Total backlog (in US$ millions) |
17,039.1 |
14,363.6 |
16,755.0 |
|||||||||
|
|
|
|
|
|
(1) | The amounts in backlog for C-390 aircraft reflects the modifications in accordance with the agreement reached with the Brazilian Air Force (FAB) for the order of the aircraft KC-390, as discussed under “Item 4. Information on the Company—A. Business Overview—Defense and Security Business Unit—Products—Military Transport – C-390 Millennium.” |
(2) | Special Mission category comprises aircraft of our Executive Aviation business unit portfolio, which we have sold to customers of our Defense and Security business unit. |
|
December 31, |
|||||||||||||||||||
2021 |
2020 |
2019 |
2018 |
2017 |
||||||||||||||||
Real growth in gross domestic product |
4.6 | % | (4.1 | )% | 1.1 | % | 1.3 | % | 1.3 | % | ||||||||||
Inflation (IGP-M) (1) |
17.8 | % | 23.1 | % | 7.3 | % | 7.6 | % | (0.5 | )% | ||||||||||
Inflation (IPCA) (2) |
10.1 | % | 4.5 | % | 4.3 | % | 3.8 | % | 3.0 | % | ||||||||||
CDI rate (3) |
4.4 | % | 2.8 | % | 5.9 | % | 6.4 | % | 9.9 | % | ||||||||||
LIBOR rate (4) |
0.21 | % | 0.24 | % | 1.9 | % | 2.8 | % | 1.7 | % | ||||||||||
Depreciation of the real vs. U.S. dollar |
7.4 | % | 28.9 | % | 4.0 | % | 17.1 | % | 1.5 | % | ||||||||||
Period-end exchange rate—US$1.00 |
R$ | 5.5805 | R$ | 5.1967 | R$ | 4.031 | R$ | 3.875 | R$ | 3.308 | ||||||||||
Average exchange rate—US$1.00 (5) |
R$ | 5.4071 | R$ | 5.2426 | R$ | 3.944 | R$ | 3.680 | R$ | 3.203 |
(1) | Inflation (IGP-M) is the general market price index measured by FGV. |
(2) | Inflation (IPCA) is a broad consumer price index measured by the Instituto Brasileiro de Geografia e Estatística |
(3) | The CDI rate is average of inter-bank overnight rates in Brazil (as of the last date of the respective period). |
(4) | Three-month U.S. dollar LIBOR rate as of the last date of the period. The LIBOR rate is the London inter-bank offer rate. |
(5) | Represents the average of the exchange rates on the last day of each month during the period. |
• | Raw materials |
• | Labor. reais |
• | Depreciation. |
• | Amortization. |
2021 |
2020 |
2019 |
||||||||||
|
||||||||||||
(in US$ millions) |
||||||||||||
Revenue |
||||||||||||
Commercial Aviation |
1,316.4 | 1,114.4 | 2,234.4 | |||||||||
Executive Aviation |
1,130.1 | 1,071.5 | 1,397.0 | |||||||||
Defense and Security |
594.4 | 653.9 | 576.3 | |||||||||
Services and Support |
1,132.2 | 920.0 | 1,245.7 | |||||||||
Other |
24.1 | 11.3 | 9.2 | |||||||||
|
|
|
|
|
|
|||||||
Total |
4,197.2 |
3,771.1 |
5,462.6 |
|||||||||
|
|
|
|
|
|
|||||||
Cost of sales and services |
||||||||||||
Commercial Aviation |
(1,263.9 | ) | (1,086.8 | ) | (1,971.1 | ) | ||||||
Executive Aviation |
(923.4 | ) | (886.1 | ) | (1,211.1 | ) | ||||||
Defense and Security |
(488.4 | ) | (549.1 | ) | (539.6 | ) | ||||||
Services and Support |
(827.6 | ) | (751.4 | ) | (927.4 | ) | ||||||
Other |
(34.3 | ) | (20.1 | ) | (17.9 | ) | ||||||
|
|
|
|
|
|
|||||||
Total |
(3,537.6 |
) |
(3,293.5 |
) |
(4.667.1 |
) | ||||||
|
|
|
|
|
|
|||||||
Gross profit |
||||||||||||
Commercial Aviation |
52.5 | 27.6 | 263.3 | |||||||||
Executive Aviation |
206.7 | 185.4 | 185.9 | |||||||||
Defense and Security |
106.0 | 104.8 | 36.7 | |||||||||
Services and Support |
304.6 | 168.6 | 318.3 | |||||||||
Other |
(10.2 | ) | (8.8 | ) | (8.7 | ) | ||||||
|
|
|
|
|
|
|||||||
Total |
659.6 |
477.6 |
795.5 |
|||||||||
|
|
|
|
|
|
|||||||
Operating income (expenses) |
||||||||||||
Commercial Aviation |
(57.1 | ) | (300.8 | ) | (332.2 | ) | ||||||
Executive Aviation |
(76.9 | ) | (95.5 | ) | (235.2 | ) | ||||||
Defense and Security |
(89.0 | ) | (72.2 | ) | (98.7 | ) | ||||||
Services and Support |
(143.2 | ) | (240.7 | ) | (188.3 | ) | ||||||
Other |
(23.1 | ) | (22.6 | ) | (18.1 | ) | ||||||
Unallocated operating expenses (1) |
(69.0 | ) | (69.2 | ) | — | |||||||
|
|
|
|
|
|
|||||||
Total |
(458.3 |
) |
(801.0 |
) |
(872.5 |
) | ||||||
|
|
|
|
|
|
|||||||
Operating income/(loss) before financial result |
201.3 |
(323.4 |
) |
(77.0 |
) | |||||||
|
|
|
|
|
|
(1) | Expenses not allocated in the total of refers to (i) expenses incurred in 2021 as part of the corporate restructuring of the Company and expenses with certain corporate demands not directly related to any operating segment, and (ii) expenses incurred by the Company as part of the voluntary dismissal plans for specific group of employees in Brazil and reduction in workforce in 2020. |
Consolidated Statements of Income |
2021 |
2020 |
2019 |
|||||||||||||||||||||
|
||||||||||||||||||||||||
( in US$ millions, except percentages presented in absolute values ) |
||||||||||||||||||||||||
Revenue |
4,197.2 |
100 |
% |
3,771.1 |
100 |
% |
5,462.6 |
100 |
% | |||||||||||||||
Cost of sales and services |
3,537.6 | 84.3 | % | (3,293.5 | ) | 87.3 | % | (4,667.1 | ) | 85.4 | % | |||||||||||||
Gross profit |
659.6 |
15.7 |
% |
477.6 |
12.7 |
% |
795.5 |
14.6 |
% | |||||||||||||||
Operating income (expense) |
(458.3 |
) |
10.9 |
% |
(801.00 |
) |
21.2 |
% |
(872.5 |
) |
16.0 |
% | ||||||||||||
Administrative |
(153.2 | ) | 3.7 | % | (143.4 | ) | 3.8 | % | (190.2 | ) | 3.5 | % | ||||||||||||
Expected credit losses (reversal) over financial assets and contract assets |
13.0 | 0.3 | % | (61.8 | ) | 1.6 | % | 0.6 | 0.0 | % | ||||||||||||||
Selling |
(226.4 | ) | 5.4 | % | (194.0 | ) | 5.1 | % | (286.5 | ) | 5.2 | % | ||||||||||||
Research |
(43.0 | ) | 1.0 | % | (29.8 | ) | 0.8 | % | (49.4 | ) | 0.9 | % | ||||||||||||
Other operating income (expense), net |
(49.8 | ) | 1.2 | % | (374.7 | ) | 9.9 | % | (346.8 | ) | 6.3 | % | ||||||||||||
Equity in income (losses) of associates |
1.1 | 0.0 | % | 2.7 | 0.1 | % | (0.2 | ) | 0.0 | % |
Consolidated Statements of Income |
2021 |
2020 |
2019 |
|||||||||||||||||||||
|
||||||||||||||||||||||||
( in US$ millions, except percentages presented in absolute values ) |
||||||||||||||||||||||||
Operating income/(loss) before financial result |
201.3 |
4.8 |
% |
(323.4 |
) |
8.6 |
% |
(77.0 |
) |
1.4 |
% | |||||||||||||
Financial income, net |
(199.4 | ) | 4.8 | % | (232.7 | ) | 6.2 | % | (116.1 | ) | 2.1 | % | ||||||||||||
Foreign exchange gain (loss), net |
25.5 | 0.6 | % | (79.1 | ) | 2.1 | % | 6.9 | 0.1 | % | ||||||||||||||
Profit/(loss) before income tax |
27.4 |
0.7 |
% |
(635.2 |
) |
16.8 |
% |
(186.2 |
) |
3.4 |
% | |||||||||||||
Income taxes expense |
(70.9 | ) | 1.7 | % | (93.1 | ) | 2.5 | % | (130.3 | ) | 2.4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss for the period |
(43.5 |
) |
1.0 |
% |
(728.3 |
) |
19.3 |
% |
(316.5 |
) |
5.8 |
% | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Attributable to: |
||||||||||||||||||||||||
Owners of Embraer |
(44.7 | ) | 1.1 | % | (731.9 | ) | 19.4 | % | (322.3 | ) | 5.9 | % | ||||||||||||
Non-Controlling Interest |
1.2 | 0.0 | % | 3.6 | 0.1 | % | 5.8 | 0.1 | % |
Contractual Obligations |
Total |
Less than 1 year |
1 – 3 years |
3 – 5 years |
More than 5 years |
|||||||||||||||
(in US$ millions) |
||||||||||||||||||||
Loans and financing |
4,842.0 | 712.5 | 683.4 | 1,602.4 | 1,843.7 | |||||||||||||||
Lease liability |
63.8 | 11.5 | 20.1 | 9.9 | 22.3 | |||||||||||||||
Financial Guarantees |
18.7 | 15.8 | 2.9 | — | — | |||||||||||||||
Suppliers |
495.2 | 495.2 | — | — | — | |||||||||||||||
Trade accounts payable—Supplier finance |
14.8 | 14.8 | — | — | — | |||||||||||||||
Other liabilities |
218.8 | 15.8 | 164.5 | 27.8 | 10.7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
7Total |
5,653.3 | 1,265.6 | 870.9 | 1,640.1 | 1,876.7 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Commercial Aviation |
Firm Orders |
Deliveries |
Firm Order Backlog |
|||||||||
EMB 120 Brasília |
352 | 352 | — | |||||||||
ERJ 135 |
108 | 108 | — | |||||||||
ERJ 140 |
74 | 74 | — | |||||||||
ERJ 145 |
708 | 708 | — | |||||||||
EMBRAER 170 |
191 | 191 | — | |||||||||
EMBRAER 175 |
840 | 693 | 147 | |||||||||
EMBRAER 190 |
568 | 565 | 3 | |||||||||
EMBRAER 195 |
172 | 172 | — | |||||||||
EMBRAER 190 – E2 |
22 | 17 | 5 | |||||||||
EMBRAER 195 – E2 |
203 | 33 | 170 |
Customer |
Firm Orders |
Delivered |
Firm Order Backlog |
|||||||||
Airnorth (Australia) |
1 | 1 | — | |||||||||
Alitalia (Italy) |
6 | 6 | — | |||||||||
BA CityFlyer (UK) |
6 | 6 | — | |||||||||
Cirrus (Germany) |
1 | 1 | — | |||||||||
ECC Leasing (Ireland) |
6 | 6 | — | |||||||||
EgyptAir (Egypt) |
12 | 12 | — | |||||||||
Finnair (Finland) |
10 | 10 | — | |||||||||
GECAS (United States) |
9 | 9 | — | |||||||||
JAL (Japan) |
18 | 18 | — | |||||||||
NAC / Jetscape (United States) |
6 | 6 | — | |||||||||
LOT Polish (Poland) |
1 | 1 | — | |||||||||
Petro Air (Libya) |
2 | 2 | — | |||||||||
Regional (France) |
10 | 10 | — | |||||||||
Republic Airlines (United States) |
48 | 48 | — | |||||||||
Satena (Colombia) |
1 | 1 | — | |||||||||
Saudi Arabian Airlines (Saudi Arabia) |
15 | 15 | — | |||||||||
Sirte Oil (Libya) |
1 | 1 | — | |||||||||
Suzuyo (Japan) |
2 | 2 | — | |||||||||
TAME (Equator) |
2 | 2 | — | |||||||||
US Airways (United States) |
28 | 28 | — | |||||||||
Virgin Australia (Australia) |
6 | 6 | — | |||||||||
|
|
|
|
|
|
|||||||
Total |
191 | 191 | — | |||||||||
|
|
|
|
|
|
Customer |
Firm Orders |
Delivered |
Firm Order Backlog |
|||||||||
Air Canada (Canada) |
15 | 15 | — | |||||||||
Air Lease (United States) |
8 | 8 | — | |||||||||
Alitalia (Italy) |
2 | 2 | — | |||||||||
American Airlines (United States) |
101 | 98 | 3 | |||||||||
Belavia (Belarus) |
1 | 1 | — | |||||||||
CIT (United States) |
4 | 4 | — | |||||||||
ECC Leasing (Ireland)(1) |
1 | 1 | — | |||||||||
Flybe (UK) |
11 | 11 | — | |||||||||
Fuji Dream (Japan) |
2 | 2 | — | |||||||||
GECAS (United States) |
5 | 5 | — | |||||||||
Horizon Air / Alaska (United States) |
37 | 30 | 7 | |||||||||
KLM (The Netherlands) |
17 | 17 | — | |||||||||
LOT Polish (Poland) |
12 | 12 | — | |||||||||
Mauritania Airlines (Mauritania) |
2 | 2 | — | |||||||||
Mesa (United States) |
7 | 7 | — | |||||||||
NAC / Aldus (Ireland) |
2 | 2 | — | |||||||||
NAC / Jetscape (United States) |
4 | 4 | — | |||||||||
Northwest (United States) |
36 | 36 | — | |||||||||
Oman Air (Oman) |
5 | 5 | — | |||||||||
Overland Airways (Nigeria) |
3 | — | 3 | |||||||||
Republic Airlines (United States) |
223 | 123 | 100 | |||||||||
Royal Jordanian (Jordan) |
2 | 2 | — | |||||||||
Skywest (United States) |
207 | 180 | 27 | |||||||||
Suzuyo (Japan) |
11 | 11 | — | |||||||||
TRIP (Brazil) |
5 | 5 | — | |||||||||
Undisclosed |
7 | — | 7 | |||||||||
United Airlines (United States) |
110 | 110 | — | |||||||||
|
|
|
|
|
|
|||||||
Total |
840 |
693 |
147 | |||||||||
|
|
|
|
|
|
(1) | Aircraft delivered by ECC Leasing to Air Caraibes. |
Customer |
Firm Orders |
Delivered |
Firm Order Backlog |
|||||||||
Aero Republica (Colombia) |
5 | 5 | — | |||||||||
Aeromexico (Mexico) |
12 | 12 | — | |||||||||
Air Astana (Kazakhstan) |
2 | 2 | — | |||||||||
Air Canada (Canada) |
45 | 45 | — | |||||||||
Air Caraibes (Guadalupe) |
1 | 1 | — | |||||||||
Air Lease (United States) |
23 | 23 | — | |||||||||
Air Moldova (Moldavia) |
1 | 1 | — | |||||||||
Augsburg (Germany) |
2 | 2 | — | |||||||||
Austral (Argentina) |
22 | 22 | — | |||||||||
AZAL (Azerbaijan) |
4 | 4 | — | |||||||||
Azul (Brazil) |
5 | 5 | — | |||||||||
BA CityFlyer (UK) |
9 | 9 | — | |||||||||
BOC Aviation (Singapore) |
14 | 14 | — | |||||||||
China Southern (China) |
20 | 20 | — | |||||||||
CIAF (Egypt) |
3 | — | 3 | |||||||||
CIT (United States) |
7 | 7 | — | |||||||||
Conviasa (Venezuela) |
16 | 16 | — | |||||||||
Copa (Panama) |
15 | 15 | — | |||||||||
Dniproavia (Ukraine) |
5 | 5 | — | |||||||||
ECC Leasing (Ireland) |
1 | 1 | — | |||||||||
Finnair (Finland) |
12 | 12 | — | |||||||||
GECAS (United States) |
27 | 27 | — | |||||||||
Guizhou / Colorful (China) |
9 | 9 | — | |||||||||
Hainan (China) |
50 | 50 | — | |||||||||
Hebei (China) |
6 | 6 | — | |||||||||
JAL (Japan) |
14 | 14 | — | |||||||||
JetBlue (United States) |
64 | 64 | — | |||||||||
Kenya Airways (Kenya) |
10 | 10 | — | |||||||||
KLM (The Netherlands) |
26 | 26 | — | |||||||||
KunPeng (China) |
5 | 5 | — | |||||||||
LAM (Mozambique) |
2 | 2 | — | |||||||||
Lufthansa (Germany) |
9 | 9 | — | |||||||||
M1 Travel (Lebanon) |
8 | 8 | — | |||||||||
NAC / Aldus (Ireland) |
21 | 21 | — | |||||||||
NAC / Jetscape (United States) |
9 | 9 | — | |||||||||
NAS Air (Saudi Arabia) |
3 | 3 | — | |||||||||
NIKI (Austria) |
7 | 7 | — | |||||||||
Regional (France) |
10 | 10 | — | |||||||||
Republic (United States) |
2 | 2 | — | |||||||||
Taca (El Salvador) |
11 | 11 | — | |||||||||
TAME (Ecuador) |
3 | 3 | — | |||||||||
TRIP (Brazil) |
3 | 3 | — | |||||||||
US Airways (United States) |
25 | 25 | — | |||||||||
Virgin Australia (Australia) |
18 | 18 | — | |||||||||
Virgin Nigeria (Nigeria) |
2 | 2 | — | |||||||||
|
|
|
|
|
|
|||||||
Total |
568 |
565 |
3 |
|||||||||
|
|
|
|
|
|
Customer |
Firm Orders |
Delivered |
Firm Order Backlog |
|||||||||
Arkia (Israel) |
1 | 1 | — | |||||||||
Aurigny (Guernsey) |
1 | 1 | — | |||||||||
Azul (Brazil) |
59 | 59 | — | |||||||||
Belavia (Belarus) |
4 | 4 | — | |||||||||
BOC Aviation (Singapore) |
1 | 1 | — | |||||||||
Flybe (UK) |
14 | 14 | — | |||||||||
GECAS (United States) |
12 | 12 | — | |||||||||
Globalia (Spanish) |
12 | 12 | — | |||||||||
Hainan (China) |
20 | 20 | — | |||||||||
LOT Polish (Poland) |
4 | 4 | — | |||||||||
Lufthansa (Germany) |
34 | 34 | — | |||||||||
Montenegro (Montenegro) |
1 | 1 | — | |||||||||
NAC / Aldus (Ireland) |
4 | 4 | — | |||||||||
NAC / Jetscape (United States) |
2 | 2 | — | |||||||||
Royal Jordanian (Jordan) |
2 | 2 | — | |||||||||
Trip (Brazil) |
1 | 1 | — | |||||||||
|
|
|
|
|
|
|||||||
Total |
172 |
172 |
— | |||||||||
|
|
|
|
|
|
Customer |
Firm Orders |
Delivered |
Firm Order Backlog |
|||||||||
Aercap (Ireland) |
5 | 5 | — | |||||||||
Air Kiribati (Kiribati) |
2 | 1 | 1 | |||||||||
Aircastle (United States) |
2 | — | 2 | |||||||||
Congo Airways (Congo) |
2 | — | 2 | |||||||||
Helvetic (Switzerland) |
8 | 8 | — | |||||||||
Widerøe (Norway) |
3 | 3 | — | |||||||||
|
|
|
|
|
|
|||||||
Total |
22 |
17 |
5 |
|||||||||
|
|
|
|
|
|
Customer |
Firm Orders |
Delivered |
Firm Order Backlog |
|||||||||
Aercap (Ireland) |
45 | 12 | 33 | |||||||||
Air Peace (Nigeria) |
13 | 5 | 8 | |||||||||
Aircastle (United States) |
23 | 4 | 19 | |||||||||
Azorra (USA) |
20 | — | 20 | |||||||||
Azul (Brazil) |
51 | — | 51 | |||||||||
Binter Canarias (Spain) |
5 | 5 | — | |||||||||
Congo Airways (Congo) |
2 | — | 2 | |||||||||
Helvetic (Switzerland) |
4 | 4 | — | |||||||||
ICBC (China) |
10 | 3 | 7 | |||||||||
Porter (Canada) |
30 | — | 30 | |||||||||
|
|
|
|
|
|
|||||||
Total |
203 |
33 |
170 |
|||||||||
|
|
|
|
|
|
Item 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
Name |
Age |
Position |
Year First Elected to Board | |||
Alexandre Gonçalves Silva | 77 | Chairman | 2011 | |||
Raul Calfat | 69 | Vice-President | 2017 (1) | |||
Alexandre Magalhães Filho | 69 | Member | 2015 | |||
Claudia Sender Ramirez | 47 | Member | 2021 | |||
Dan Ioschpe | 57 | Member | 2020 | |||
Dejair Losnak Filho | 58 | Member | 2017 (2) | |||
João Cox Neto | 58 | Member | 2011 | |||
Kevin G. McAllister | 58 | Member | 2021 | |||
Marcelo Kanitz Damasceno | 62 | Member | 2021 | |||
Maria Leticia de Freitas Costa | 62 | Member | 2017 | |||
Pedro Wongtschowski | 75 | Member | 2015 | |||
Sergio Guillinet Fajerman | 49 | Member | 2020 | |||
Todd Messer Freeman | 58 | Member | 2021 |
(1) | Appointed as the vice-president of our board of directors on May 18, 2020. |
(2) | Elected as member of the board of directors from 2017 to 2019 and re-elected in 2021. |
• | Strategy and Innovation Committee. |
• | Audit, Risk and Ethics Committee |
• | People and ESG Committee. |
• | Fiscal Council . |
Name |
Age |
Position |
Year First Elected | |||
Francisco Gomes Neto | 63 | President and Chief Executive Officer | 2019 | |||
Antonio Carlos Garcia | 56 | Executive Vice President – Chief Financial and Investor Relations Officer | 2020 | |||
Fabiana Klajner Leschziner | 50 | Executive Vice President – General Counsel & Chief Compliance Officer | 2016 | |||
Jackson Medeiros de F. Schneider | 57 | Executive Vice President – Defense and Security | 2014 |
Grants under the Phantom Shares Plan |
Year Granted |
Total Benefit Granted |
Amount of Virtual Shares Granted |
Fair Value of Shares on December 31, 2021 (1) |
Outstanding Virtual Shares as of December 31, 2021 (2) |
|||||||||||||||
(in R$ millions) |
(in R$ millions) |
|||||||||||||||||||
1st grant (3) |
February 25, 2014 | 30.3 | 1,570,678 | — | — | |||||||||||||||
2nd grant (4) |
March 3, 2015 | 30.2 | 1,237,090 | — | — | |||||||||||||||
3rd grant (5) |
March 10, 2016 | 31.1 | 1,095,720 | — | — | |||||||||||||||
4th grant (5) |
June 9, 2016 | 1.1 | 55,994 | — | — | |||||||||||||||
5th grant (5) |
August 25, 2016 | 1.1 | 70,978 | — | — | |||||||||||||||
6th grant |
August 24, 2017 | 30.5 | 1,930,350 | 5.0 | 230,750 | |||||||||||||||
7th grant |
April 12, 2018 | 35.2 | 1,622,986 | 6.8 | 314,552 | |||||||||||||||
8th grant |
March 12, 2019 | 22.4 | 1,160,552 | 19.3 | 885,237 | |||||||||||||||
9th grant |
March 24, 2020 | 23.8 | 1,401,293 | 15.5 | 710,127 | |||||||||||||||
10th grant |
November 13, 2020 | 43.6 | 6,530,000 | 52.2 | 2,399,444 | |||||||||||||||
11th grant |
March 18, 2021 | 24.6 | 2,181,442 | 12.9 | 591,938 |
(1) | Refers to the estimated fair value of total virtual shares granted in each grant date. |
(2) | Refers to outstanding virtual shares as of December 31, 2021 considering the respective vesting periods and less the virtual shares already paid to the beneficiaries. |
(3) | Virtual shares granted under the first grant were fully paid in February 2019. |
(4) | Virtual shares granted under the second grant were fully paid on March 2020. |
(5) | Virtual shares granted under the third, fourth and fifth grant were fully paid on March 2021, June 2021 and August 2021, respectively. |
Name |
Age |
Position |
Year First Elected | |||
João Cox Neto | 58 | Coordinator and Effective member | 2015 (1) | |||
Claudia Sender Ramirez | 47 | Effective member | 2021 | |||
Raul Calfat | 69 | Effective member | 2020 | |||
Sergio Eraldo de Salles Pinto | 57 | External member | 2011 (2) | |||
Vanessa Claro Lopes | 46 | External member | 2019 (3) |
(1) | Mr. João Cox Neto was also a member of this committee from April 2011 through April 2013. |
(2) | Mr. Sergio Eraldo de Salles Pinto was elected in May 2020 as an external member of the Audit, Risks and Ethics Committee, after resigning as an effective member of our board of directors. |
(3) | Ms. Vanessa Claro Lopes was elected in July 16, 2019 as an external member of the Audit, Risks and Ethics Committee. |
Name |
Age |
Position |
Year First Elected | |||
Maria Leticia de Freitas Costa | 62 | Coordinator and effective member | 2019 | |||
Claudia Sender Ramirez | 47 | Effective member | 2021 | |||
João Cox Neto | 58 | Effective member | 2011 | |||
Sergio Guillinet Fajerman | 49 | Effective member | 2020 | |||
Beatriz Botelho de Oliveira | 57 | External member | 2021 |
Name |
Age |
Position |
Year First Elected | |||
Raul Calfat | 69 | Coordinator | 2017 | |||
Dan Ioschpe | 57 | Effective member | 2020 | |||
Kevin G. McAllister | 58 | Effective member | 2021 | |||
Maria Leticia de Freitas Costa | 62 | Effective member | 2017 | |||
Pedro Wongtschowski | 75 | Effective member | 2015 | |||
Todd Messer Freeman | 58 | Effective member | 2021 |
Name |
Age |
Position |
Year First Elected | |||
Ivan Mendes do Carmo (1) |
59 | Effective member | 2008 | |||
Tarcísio Luiz Silva Fontenele | 59 | Alternate | 2001 | |||
José Mauro Laxe Vilela (2) |
74 | Effective member | 2011 | |||
Wanderley Fernandes da Silva | 48 | Alternate | 2011 | |||
Mauricio Rocha Alves de Carvalho | 60 | Effective member | 2016 | |||
Mario Ernesto Vampré Humberg | 58 | Alternate | 2020 | |||
João Manoel Pinho de Mello | 48 | Effective member | 2018 |
(1) | President of the fiscal council. |
(2) | Vice-President of the fiscal council. |
As of December 31, |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
Production Process |
7,882 | 7,874 | 6,537 | |||||||||
Research and Development |
3,562 | 3,590 | 5,371 | |||||||||
Customer Support |
2,847 | 2,599 | 2,348 | |||||||||
Administrative—Production Support |
253 | 262 | 1,632 | |||||||||
Administrative—Corporate |
1,447 | 1,333 | 2,846 | |||||||||
|
|
|
|
|
|
|||||||
Total (including only wholly owned subsidiaries of Embraer S.A) |
16,067 |
15,658 |
18,734 |
|||||||||
|
|
|
|
|
|
|||||||
Total Consolidated Employees |
18,320 |
18,125 |
21,271 |
|||||||||
|
|
|
|
|
|
Item 7. |
MAJOR SHAREHOLDERS AND RELATED-PARTY TRANSACTIONS |
Common Shares |
||||||||
Shares (1) |
(%) |
|||||||
Brandes Investment Partners, L.P. (2) |
112,071,399 | 15.14 | ||||||
BNDES Participações S.A.—BNDESPAR (3) |
39,762,489 | 5.37 | ||||||
União Federal/Brazilian government (4) |
1 | 0.0 | ||||||
Shares in company treasury |
5,832,238 | 0.79 | ||||||
Others |
582,798,918 | 78.71 | ||||||
|
|
|
|
|||||
Total |
740,465,044 |
100.0 |
||||||
|
|
|
|
(1) | The number of shares includes our ADS. |
(2) | Brandes Investment Partners, L.P. is a 100% employee-owned independent investment advisory firm founded and co-owned by Charles Howard Brandes. The firm manages the Brandes series of mutual funds in addition to other funds and caters to individuals and institutions. |
(3) | BNDESPAR is a wholly owned subsidiary of Banco Nacional de Desenvolvimento Econômico e Social |
(4) | The Brazilian government holds our “golden share.” |
• | a major customer of our defense products, through the Brazilian Air Force; |
• | a source for research debt financing through technology development institutions, including FINEP and BNDES; |
• | an export credit agency, through BNDES; and |
• | a source of short-term and long-term financing and a provider of asset management and commercial banking services, through Banco do Brasil. |
Item 8. |
FINANCIAL INFORMATION |
A. |
Consolidated Statements and Other Financial Information |
• | any amounts allocated from the net income after taxes to the legal reserve, and |
• | any amounts allocated from the net income after taxes to a contingency reserve for anticipated losses or the reversion of the reserve constituted on previous fiscal years. |
• | price-level restatement of statement of financial position accounts; |
• | the share of equity earnings of affiliated companies; and |
• | profits from installment sales to be received after the end of the next succeeding fiscal year. |
• | in the deduction of accumulated losses, whenever necessary; |
• | in the distribution of dividends, at any time; |
• | in the redemption, withdrawal, purchase or open market repurchase of shares, as authorized by law; and |
• | to increase our capital, including by means of an issuance of new shares. |
• | 50% of net income (after the deduction of social contribution on net profits, but before taking into account the provision for corporate income tax and the amounts attributable to shareholders as net interest on shareholders’ equity) for the period in respect of which the payment is made; or |
• | 50% of the sum of retained profits and profit reserves as of the beginning of the period in respect of which the payment is made. |
Date of Approval |
Period in which Profits were Generated |
Total Amount of Distribution | ||||
(in R$ millions) |
(in US$ millions) (1) | |||||
March 10, 2016 (2) |
First quarter of 2016 | 29.5 | 8.3 | |||
June 9, 2016 (2) |
Second quarter of 2016 | 29.4 | 9.2 | |||
September 15, 2016 (2) |
Third quarter of 2016 | 14.7 | 4.5 | |||
March 8, 2017 (2) |
First quarter of 2017 | 29.4 | 9.3 | |||
April 12, 2017 (3) |
Full year of 2016 | 75.0 | 23.4 | |||
June 2, 2017 (2) |
Second quarter of 2017 | 29.4 | 8.9 | |||
September 6, 2017 (2) |
Third quarter of 2017 | 29.3 | 9.2 | |||
December 14, 2017 (2)(4) |
Fourth quarter of 2017 | 66.0 | 19.9 | |||
March 5, 2018 (2) |
First quarter of 2018 | 14.7 | 4.4 | |||
June 14, 2018 (2) |
Second quarter of 2018 | 14.7 | 3.8 | |||
September 13, 2018 (3) |
Full year of 2018 | 7.3 | 1.8 | |||
December 14, 2018 (3)(5) |
Full year of 2018 | 7.4 | 1.9 |
(1) | Translated from nominal reais |
(2) | Represents interest on shareholders’ equity. |
(3) | Represents dividend payments. |
(4) | Amount declared in 2017 but paid in 2018. |
(5) | Amount declared in 2018 but paid in 2019. |
B. |
Significant Changes |
Item 9. |
THE OFFER AND LISTING |
• | establish the concept of a material fact that gives rise to reporting requirements. Material facts include decisions made by the controlling shareholders, resolutions of the general meeting of shareholders and of management of the company, or any other facts related to the company’s business (whether occurring within the company or otherwise somehow related thereto) that may influence the price of its publicly traded securities, or the decision of investors to trade those securities or to exercise any of those securities’ underlying rights; |
• | specify examples of facts that are considered to be material, which include, among others, the execution amendment or termination of a shareholders’ agreements providing for the transfer of control, the entry or withdrawal of shareholders that maintain any managing, financial, technological or administrative function with or contribution to the company, and any corporate restructuring undertaken among related companies; |
• | oblige the investor relations officer, controlling shareholders, other officers, directors, members of the audit committee and other advisory boards to disclose material facts; |
• | require simultaneous disclosure of material facts to all markets in which the corporation’s securities are admitted for trading; |
• | require the acquirer of a controlling stake in a corporation to publish material facts, including its intentions as to whether or not to de-list the corporation’s shares, within one year; |
• | establish rules regarding disclosure requirements in the acquisition and disposal of a material stockholding stake; |
• | restrict the use of insider information; and |
• | prohibits the company controlling shareholders, directors, members of the board of directors and the supervisory board to carry out any trading with the securities issued by the company, or related to them, during the period that comes before the date of disclosure of the information quarterly accounting and annual financial statements of the company. |
Item 10. |
ADDITIONAL INFORMATION |
• | the creation of a remote voting bulletin through which shareholders may exercise their right to vote prior to the date the shareholders’ meeting is held; |
• | the possibility of inclusion of candidates and proposals of deliberation of minority shareholders in that bulletin, with due observance of certain percentages of equity interest, in order to facilitate shareholders’ participation in shareholders’ meetings; and |
• | the deadlines, procedures and ways of sending this bulletin, which may be forwarded by the shareholder: (a) to the custodian (if the shares held by the shareholder are kept at a centralized deposit) or; (b) to the book-entry agent of the shares issued by the company (if such shares are not kept at a centralized deposit); or (c) directly to the company. |
• | the right to participate in the distribution of profits; |
• | the right to participate equally and proportionally in any remaining residual assets in the event of liquidation of the company; |
• | preemptive rights in the event of issuance of shares, convertible debentures or warrants, except in some specific circumstances under Brazilian law described in “—Preemptive Rights;” |
• | the right to supervise our management in accordance with Article 109 of the Brazilian Corporate Law; and |
• | the right to appraisal rights in the cases specified in the Brazilian Corporate Law, which are described in “—Redemption and Right of Withdrawal.” |
• | reducing the mandatory distribution of dividends; |
• | changing our corporate purpose; |
• | merging into or consolidating with another company, subject to the conditions set forth in the Brazilian Corporate Law; |
• | transferring all of our shares to another company or receiving shares of another company in order to make the company whose shares were transferred a wholly owned subsidiary of the other company, known as a merger of shares ( incorporação de ações |
• | participating in a centralized group of companies as defined under the Brazilian Corporate Law and subject to the conditions set forth therein; |
• | conducting a spin-off; |
• | dissolving or liquidating us; |
• | canceling any ongoing liquidation of us; or |
• | creating preferred shares with greater privileges than the existing shares or changing a priority, preference, privilege or condition of redemption or amortization of preferred shares. |
• | they are parties to a voting agreement; |
• | one of them is, directly or indirectly, a controlling shareholder or controlling parent company of the other, or the others; |
• | they are companies directly or indirectly controlled by the same person/entity, or group of persons/entities, which may or may not be shareholders; or |
• | they are companies, associations, foundations, cooperatives and trusts, investment funds or portfolios, universalities of rights or any other forms of organization or undertaking (i) with the same administrators or managers, or further (ii) whose administrators or managers are companies that are directly or indirectly controlled by the same person/entity, or group of persons/entities, which may or may not be shareholders. |
Equity Interest of Shareholder or Group of Shareholders |
Voting Rights as a Percentage of our Capital Stock | |
1% |
1% | |
2% |
2% | |
3% |
3% | |
4% |
4% | |
5% |
5% | |
> 5% |
5% |
• | Brazilian individuals, whether native or naturalized, resident in Brazil or abroad; |
• | legal private entities organized under the laws of Brazil that have their administrative head offices in Brazil and (i) do not have a foreign controlling parent company, unless the parent company meets the requirements of clause (ii) of this item, and (ii) are controlled, directly or indirectly, by one or more Brazilian individuals, whether native or naturalized, resident in Brazil or abroad; and |
• | investment funds or clubs organized under the laws of Brazil that have their administrative head office in Brazil and whose managers and/or investors holding the majority of their equity interests are persons/entities referred to above. |
Brazilian Shareholder Participation |
Non-Brazilian Shareholder Participation |
Non-Brazilian Shareholder Participation (1) | ||
(% of capital stock) |
(% of capital stock) |
(%) | ||
90 |
10 | 10.00 | ||
80 |
20 | 20.00 | ||
70 |
30 | 30.00 | ||
60 |
40 | 40.00 | ||
59 |
41 | 39.33 | ||
50 |
50 | 33.33 | ||
40 |
60 | 26.67 | ||
30 |
70 | 20.00 | ||
20 |
80 | 13.33 | ||
10 |
90 | 6.67 |
(1) | Number of votes calculated based on two-thirds of the Brazilian shareholders’ votes. |
Shareholder |
% Shares Attending |
Effective % of Votes After 5% Vote Restriction |
Effective % of Votes After Non- Brazilian Restriction |
% of Valid Votes |
Vote Ratio (Votes/Share) |
|||||||||||||||
Brazilian A |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian B |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian C |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian D |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian E |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian F |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian G |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian H |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian I |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian J |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian K |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Brazilian L |
5 | 5 | 5 | 5 | 1.00 | |||||||||||||||
Total Brazilians |
60 | 60 | 60 | 60 | 1.00 | |||||||||||||||
Non-Brazilians (1) |
40 | 40 | 40 | 40 | (2) |
1.00 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 |
100 |
100 |
100 |
1.00 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Assumes that no individual non-Brazilian shareholder holds more than 5% of our capital. If a non-Brazilian shareholder holds more than 5% of our capital, this shareholder will also be subject to the 5% voting restriction on such holding. |
(2) | Two-thirds of 60 (total votes of the Brazilian shareholders after application of the 5% voting restriction) equals 40 votes. |
Shareholder |
% Shares Attending |
Effective % of Votes After 5% Vote Restriction |
Effective % of Votes After Non-Brazilian Restriction |
% of Valid Votes |
Vote Ratio (Votes/ Share) |
|||||||||||||||
Brazilian A |
20 | 5 | 5.0 | 8.57 | 0.25 | |||||||||||||||
Brazilian B |
5 | 5 | 5.0 | 8.57 | 1.00 | |||||||||||||||
Brazilian C |
5 | 5 | 5.0 | 8.57 | 1.00 | |||||||||||||||
Brazilian D |
5 | 5 | 5.0 | 8.57 | 1.00 | |||||||||||||||
Brazilian E |
5 | 5 | 5.0 | 8.57 | 1.00 | |||||||||||||||
Brazilian F |
5 | 5 | 5.0 | 8.57 | 1.00 | |||||||||||||||
Brazilian G |
5 | 5 | 5.0 | 8.57 | 1.00 | |||||||||||||||
Total Brazilians |
50 | 35 | 35.0 | 59.99 | 1.00 | |||||||||||||||
Non-Brazilians (1) |
50 | 50 | 23.3 | (2) |
40.00 | 0.47 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 |
85 |
58.3 |
(2) |
100.00 |
0.58 |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Assumes that no individual non-Brazilian shareholder holds more than 5% of our capital. If a non-Brazilian shareholder holds more than 5% of our capital, this shareholder will also be subject to the 5% voting restriction on the holding. |
(2) | Two-thirds of 35 (total votes of the Brazilian shareholders after application of the 5% voting restriction) equals 23 votes. |
Shareholder |
% Shares Attending |
Effective % of Votes After 5% Vote Restriction |
Effective % of Votes After Non-Brazilian Restriction |
% of Valid Votes |
Vote Ratio (Votes/ Share) |
|||||||||||||||
Brazilian A |
5 | 5 | 5.0 | 10.0 | 1.00 | |||||||||||||||
Brazilian B |
5 | 5 | 5.0 | 10.0 | 1.00 | |||||||||||||||
Brazilian C |
5 | 5 | 5.0 | 10.0 | 1.00 | |||||||||||||||
Brazilian D |
5 | 5 | 5.0 | 10.0 | 1.00 | |||||||||||||||
Brazilian E |
5 | 5 | 5.0 | 10.0 | 1.00 | |||||||||||||||
Brazilian F |
5 | 5 | 5.0 | 10.0 | 1.00 | |||||||||||||||
Total Brazilians |
30 | 30 | 30.0 | 60.0 | 1.00 | |||||||||||||||
Non-Brazilians A |
30 | 5 | 2.2 | (2) |
4.4 | 0.07 | ||||||||||||||
Non-Brazilians (1) |
40 | 40 | 17.8 | (2) |
35.6 | 0.44 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 |
75 |
50.0 |
100.0 |
0.50 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Assumes that no individual non-Brazilian shareholder (except Non-Brazilian A) holds more than 5% of our capital. If a non-Brazilian shareholder holds more than 5% of our capital, this shareholder will also be subject to the 5% voting restriction on the holding. |
(2) | Two-thirds of 30 (total votes of the Brazilian shareholders after application of the 5% voting restriction) equals 20 votes, proportionally divided between Non-Brazilian A and the other non-Brazilians. |
Shareholder |
% hares Attending |
Effective % of Votes After 5% Vote Restriction |
Effective % of Votes After Non- Brazilian Restriction |
% of Valid Votes |
Vote Ratio (Votes/ Share) |
|||||||||||||||
Brazilian A |
30 | 5 | 5.0 | 12 | 0.17 | |||||||||||||||
Brazilian B |
25 | 5 | 5.0 | 12 | 0.20 | |||||||||||||||
Brazilian C |
5 | 5 | 5.0 | 12 | 1.00 | |||||||||||||||
Brazilian D |
5 | 5 | 5.0 | 12 | 1.00 | |||||||||||||||
Brazilian E |
5 | 5 | 5.0 | 12 | 1.00 | |||||||||||||||
Total Brazilians |
70 | 25 | 25.0 | 60 | 1.00 | |||||||||||||||
Non-Brazilians (1) |
30 | 30 | 16.7 | (2) |
40 | 0.56 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
100 |
55 |
41.7 |
100 |
0.42 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Assumes that no individual non-Brazilian shareholder (except Non-Brazilian A) holds more than 5% of our capital. If a non-Brazilian shareholder holds more than 5% of our capital, this shareholder will also be subject to the 5% voting restriction on the holding. |
(2) | Two-thirds of 25 (total votes of the Brazilian shareholders after application of the 5% voting restriction) equals 16.7 votes. |
• | change of our name and corporate purpose; |
• | modification and/or application of our logo; |
• | creation and/or alteration of military programs (whether or not involving Brazil); |
• | development of third-party skills in technology for military programs; |
• | discontinuance of the supply of spare parts and replacement parts for military aircraft; |
• | transfer of our control; |
• | any amendments to the list of corporate actions over which the golden share carries veto rights, including the right of the Brazilian government to appoint one acting member to our board of directors and the right of our employees to appoint two acting members to our board of directors and to the rights conferred to the golden share; and |
• | changes to certain provisions of our bylaws pertaining to voting restrictions, rights of the golden share and the mandatory tender offer requirements applicable to holders of 35% or more of our outstanding shares. |
• | reduce the mandatory distribution of dividends; |
• | change our corporate purpose; |
• | merge into or consolidate with another company, subject to the conditions set forth in the Brazilian Corporate Law; |
• | transfer all of our shares to another company or receive shares of another company in order to make the company whose shares were transferred a wholly owned subsidiary of the other company, known as a merger of shares ( incorporação de ações |
• | acquire control of another company at a price which exceeds the limits set forth in the Brazilian Corporate Law; |
• | participate in a centralized group of companies as defined under the Brazilian Corporate Law and subject to the conditions set forth therein; or |
• | conduct a spin-off that results in (i) a change of our corporate purposes, except if the assets and liabilities of the spun-off company are contributed to a company that is engaged in substantially the same activities, (ii) a reduction in the mandatory dividend or (iii) any participation in a centralized group of companies, as defined under the Brazilian Corporate Law. |
• | Tender Offer Price = Value of the Share + Premium, |
• | “Tender Offer Price” corresponds to the acquisition price for each share issued by us in the public offering of shares provided hereunder. |
• | “Value of the Share” corresponds to the greater of: |
(i) | the highest unit quotation obtained for the shares issued by us during the 12-month period prior to the tender offer among values recorded on any stock exchange on which the shares were traded; |
(ii) | the highest price paid by the Acquiring Shareholder, during the 36-month period prior to the tender offer, for a share or tranche of shares issued by us; |
(iii) | the amount equivalent to 14.5 times our Consolidated Average EBITDA, as defined below, reduced by our net consolidated indebtedness, divided by the total number of shares issued by us; or |
(iv) | the amount equivalent to 0.6 times the amount of our firm backlog orders, according to the last information disclosed by the latter, reduced by our net consolidated indebtedness, divided by the total number of shares issued by us. |
• | “Premium” corresponds to 50% of the Value of the Share. |
• | “Consolidated EBITDA” is our consolidated operating profit before net financial expenses, income tax and social contribution, depreciation, depletion and amortization, as assessed based on the audited statements for our most recent complete fiscal year. |
• | “Average Consolidated EBITDA” is the arithmetic average of our consolidated EBITDA for the two most recent complete fiscal years. |
• | exempt from income tax when assessed by a Non-Brazilian Holder that (i) is a 4,373 Holder and (ii) is not resident in a Low or Nil Tax Jurisdiction (as defined below); or |
• | subject to income tax at a rate of up to 25% in any other case, including the gains assessed by a Non-Brazilian Holder that (i) is not a 4,373 Holder and/or or (ii) is a 4,373 Holder resident in a Low or Nil Tax Jurisdiction (as defined below). In these cases, a withholding income tax of 0.005% of the sale value shall be applicable and can be later offset with the eventual income tax due on the capital gain. Day trade transactions are subject to the rate of 1%. |
• | 50% of net profits (after the social contribution on net profits but before taking such distribution and the provision for corporate income tax into account) related to the period for which the payment is made; and |
• | 50% of the sum of retained profits and profit reserves as of the date of the beginning of the period for which the payment is made. |
• | partnerships and other entities classified as partnerships for U.S. federal income tax purposes; |
• | tax-exempt entities; |
• | dealers and traders in securities or foreign currencies; |
• | insurance companies; |
• | certain financial institutions; |
• | persons who own Embraer common shares or ADSs as part of an integrated investment, including a straddle, hedging or conversion transaction, comprising the Embraer common shares or ADSs and one or more other positions for tax purposes; |
• | U.S. Holders whose functional currency is not the U.S. dollar for U.S. federal income tax purposes; |
• | persons who actually or constructively own 10% or more of Embraer’s total combined vote or value of its outstanding common shares or ADSs; |
• | persons subject to special tax accounting rules under Section 451(b) of the Code; |
• | persons who acquired Embraer common shares or ADSs pursuant to the exercise of any employee stock option or otherwise as compensation; and |
• | persons holding Embraer common shares or ADSs in connection with a trade or business conducted outside the United States. |
Item 11. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Weighted Average Interest Rate 2021 (1) |
Total Amount Outstanding |
Total Fair Value |
||||||||||
|
||||||||||||
(%) |
(in US$ millions) |
|||||||||||
Short-Term Debt |
||||||||||||
U.S. dollars (Fixed indexed) |
5.5 | 532.2 | 538.1 | |||||||||
U.S. dollars (Floating indexed) |
2.1 | 29.7 | 37.6 | |||||||||
Euros (Fixed rate) |
0.0 | 2,9 | 2.9 | |||||||||
Euros (Floating indexed) |
1.3 | 1.2 | 1.3 | |||||||||
Reais (Fixed rate) |
3.5 | 7.9 | 8.0 | |||||||||
Reais (Floating indexed) |
11.2 | 0.3 | 0.6 | |||||||||
|
|
|
|
|
|
|||||||
Total short-term debt |
574.2 |
588.5 |
||||||||||
|
|
|
|
|
|
(1) | The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term). It does not represent the indexed rates as of December 31, 2021. |
Weighted Average Interest Rate 2021 (1) |
Total Amount Outstanding |
2023 |
2024 |
2025 |
2026 |
2027 and thereafter |
Total Fair value |
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
( % ) |
( in US$ millions ) |
|||||||||||||||||||||||||||||||
Long-Term Debt |
||||||||||||||||||||||||||||||||
U.S. dollars (Fixed rate) |
5.5 | 2,948.4 | 427.8 | 9.2 | 998.9 | — | 1,512.5 | 3,145.5 | ||||||||||||||||||||||||
U.S. dollars (Floating indexed) |
2.1 | 472.2 | 51.2 | 301.0 | 0.5 | 0.5 | 119.0 | 464.8 | ||||||||||||||||||||||||
Euros (Fixed rate) |
0.0 | 17.3 | 4.2 | 4.5 | 4.1 | 3.0 | 1.5 | 17.2 | ||||||||||||||||||||||||
Euros (Floating indexed) |
1.3 | 4.6 | 1.5 | 1.5 | 1.5 | 0.1 | — | 4.5 | ||||||||||||||||||||||||
Reais (Fixed rate) |
3.5 | 6.0 | 6.0 | — | — | — | — | 5.9 | ||||||||||||||||||||||||
Reais (Floating indexed) |
11.2 | 4.1 | 0.1 | 0.1 | 0.1 | 3.7 | 0.1 | 3.7 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total long-term debt |
3,452.7 |
490.8 |
316.3 |
1,005.1 |
7.3 |
1,633.1 |
3,641.6 |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term). It does not represent the indexed rates as of December 31, 2021. |
Weighted Average Interest Rate 2021 (1) |
Total Amount Outstanding |
Total Fair Value |
||||||||||
|
||||||||||||
( % ) |
( in US$ millions ) |
|||||||||||
Short-Term Debt |
||||||||||||
U.S. dollars (Fixed rate) |
5.2 | 545.8 | 556.8 | |||||||||
U.S. dollars (Floating indexed) |
2.0 | 16.0 | 18.9 | |||||||||
Euros (Fixed rate) |
0.0 | 2.9 | 2.9 | |||||||||
Euros (Floating indexed) |
1.3 | 1.2 | 1.3 | |||||||||
Reais (Floating indexed) |
5.0 | 8.3 | 8.6 | |||||||||
|
|
|
|
|||||||||
Total short-term debt |
574.2 |
588.5 |
||||||||||
|
|
|
|
(1) | The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term). It does not represent the indexed rates as of December 31, 2021. |
Weighted Average Interest Rate 2021 1) |
Total Amount Outstanding |
2023 |
2024 |
2025 |
2026 |
2027 and There- after |
Total Fair value |
|||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
(%) |
(in US$ millions) |
|||||||||||||||||||||||||||||||
Long-Term Debt |
||||||||||||||||||||||||||||||||
U.S. dollars (Fixed rate) |
5.2 | 3,249.5 | 428.4 | 309.7 | 998.9 | — | 1,512.5 | 3,440.7 | ||||||||||||||||||||||||
U.S. dollars (Floating indexed) |
2.0 | 171.2 | 50.8 | 0.5 | 0.5 | 0.5 | 119.0 | 169.6 | ||||||||||||||||||||||||
Euros (Fixed rate) |
0.0 | 17.23 | 4.2 | 4.5 | 4.1 | 3.0 | 1.5 | 17.2 | ||||||||||||||||||||||||
Euros (Floating indexed) |
1.3 | 4.6 | 1.5 | 1.5 | 1.5 | 0.1 | — | 4.5 | ||||||||||||||||||||||||
Reais (Floating indexed) |
5.0 | 10.0 | 6.0 | 0.1 | 0.1 | 3.7 | 0.1 | 9.6 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total long-term debt |
3,452.7 |
490.8 |
316.3 |
1,005.1 |
7.3 |
1,633.1 |
3,641.6 |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term). It does not represent the indexed rates as of December 31, 2021. |
Financial instruments indexed to currencies other than the U.S. dollar Outstanding Amount by Year of Maturity |
||||||||||||||||||||||||||||
Total Outstanding Amount |
2022 |
2023 |
2024 |
2025 |
There- after |
Total Fair Value |
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
(in US$ millions) |
||||||||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||
Cash and cash equivalents and financial investments |
||||||||||||||||||||||||||||
In Reais |
94.9 | 94.9 | — | — | — | — | 94.9 | |||||||||||||||||||||
In Euro |
42.4 | 42.4 | — | — | — | — | 42.4 | |||||||||||||||||||||
In other currencies |
3.8 | 3.8 | — | — | — | — | 3.8 | |||||||||||||||||||||
Trade accounts receivable |
||||||||||||||||||||||||||||
In Reais |
33.3 | 33.3 | — | — | — | — | 33.3 | |||||||||||||||||||||
In Euro |
20.8 | 20.8 | — | — | — | — | 20.8 | |||||||||||||||||||||
In other currencies |
0.1 | 0.1 | — | — | — | — | 0.1 | |||||||||||||||||||||
Deferred income tax assets |
||||||||||||||||||||||||||||
In Reais |
9.4 | 1.5 | 1.6 | 1.6 | 1.6 | 3.1 | 9.4 | |||||||||||||||||||||
In Euro |
(3.8 | ) | (0.6 | ) | (0.6 | ) | (0.6 | ) | (0.6 | ) | (1.4 | ) | (3.8 | ) | ||||||||||||||
In other currencies |
0.9 | 0.1 | 0.1 | 0.1 | 0.1 | 0.5 | 0.9 | |||||||||||||||||||||
Other assets |
||||||||||||||||||||||||||||
In Reais |
251.8 | 155.1 | 96.7 | — | — | — | 251.8 | |||||||||||||||||||||
In Euro |
15.8 | 14.5 | 1.3 | — | — | — | 15.8 | |||||||||||||||||||||
In other currencies |
0.7 | 0,7 | — | — | — | — | 0.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total assets in Reais |
398.4 | 284.8 | 98.3 | 1.6 | 1.6 | 3.1 | 398.4 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total assets in Euro |
75.2 | 77.1 | 0,7 | (0.6 | ) | (0.6 | ) | (1.4 | ) | 75.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total assets in other currencies |
5.5 | 4.7 | 0.1 | 0.1 | 0.1 | 0.5 | 5.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
LIABILITIES |
||||||||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||
In Reais |
18.3 | 8.3 | 6.1 | 0.1 | 0.1 | 3.7 | 18.3 | |||||||||||||||||||||
In Euro |
26.1 | 4.3 | 5.6 | 6.0 | 5.6 | 4.6 | 26.1 | |||||||||||||||||||||
Accounts payable to suppliers |
||||||||||||||||||||||||||||
In Reais |
77.6 | 77.6 | — | — | — | — | 77.6 | |||||||||||||||||||||
In Euro |
31.3 | 31.3 | — | — | — | — | 31.3 | |||||||||||||||||||||
In other currencies |
0.7 | 0.7 | — | — | — | — | 0.7 | |||||||||||||||||||||
Customer advances |
||||||||||||||||||||||||||||
In Reais |
678.6 | 534.0 | 144.6 | — | — | — | 678.6 | |||||||||||||||||||||
In Euro |
170.1 | 170.1 | — | — | — | — | 170.1 | |||||||||||||||||||||
In other currencies |
1.7 | 1.7 | — | — | — | — | 1.7 | |||||||||||||||||||||
Other accounts payable & accrued liabilities |
||||||||||||||||||||||||||||
In Reais |
348.5 | 226.2 | 122.3 | — | — | — | 348.5 | |||||||||||||||||||||
In Euro |
31.2 | 28.9 | 2.3 | — | — | — | 31.2 | |||||||||||||||||||||
In other currencies |
2.2 | 1.9 | 0.3 | — | — | — | 2.2 | |||||||||||||||||||||
Taxes and payroll charges payable |
||||||||||||||||||||||||||||
In Reais |
43.6 | 33.6 | 10.0 | — | — | — | 43.6 | |||||||||||||||||||||
In Euro |
4.6 | 4.6 | — | — | — | — | 4.6 | |||||||||||||||||||||
In other currencies |
— | — | — | — | — | — | — | |||||||||||||||||||||
Accrued taxes on income |
||||||||||||||||||||||||||||
In Reais |
1.2 | 1.2 | — | — | — | — | 1.2 | |||||||||||||||||||||
In Euro |
8.8 | 8.8 | — | — | — | — | 8.8 | |||||||||||||||||||||
In other currencies |
1.3 | 1.3 | — | — | — | — | 1.3 | |||||||||||||||||||||
Deferred income tax liabilities |
||||||||||||||||||||||||||||
In Reais |
364.6 | 56.8 | 61.5 | 61.5 | 61.5 | 123.3 | 364.6 | |||||||||||||||||||||
In Euro |
17.2 | 2.7 | 2.9 | 2.9 | 2.9 | 5.8 | 17.2 | |||||||||||||||||||||
In other currencies |
0.8 | 0.2 | 0.1 | 0.1 | 0.1 | 0.3 | 0.8 | |||||||||||||||||||||
Accrued dividends |
||||||||||||||||||||||||||||
In Reais |
— | — | — | — | — | — | — | |||||||||||||||||||||
Contingencies |
— | — | — | — | — | — | — | |||||||||||||||||||||
In Reais |
44.2 | 11.4 | 6.7 | 6.7 | 6.7 | 12.7 | 44.2 | |||||||||||||||||||||
In Euro |
2.2 | — | 0.4 | 0.4 | 0.4 | 1.0 | 2.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities in Reais |
1,558.3 | 940.8 | 345.1 | 68.2 | 68.2 | 136.0 | 1,558.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities in Euro |
95.3 | 76.3 | 5.6 | 3.3 | 3.3 | 6.8 | 95.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities in other currencies |
5.0 | 4.1 | 0.4 | 0.1 | 0.1 | 0.3 | 5.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total exposure in Reais |
(1,168.9 | ) | (656.0 | ) | (246.8 | ) | (66.6 | ) | (66.6 | ) | (132.9 | ) | (1,168.9 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total exposure in Euro |
(20.1 | ) | 0.8 | (4.9 | ) | (3.9 | ) | (3.9 | ) | (8.2 | ) | (20.1 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total exposure in other currencies |
0.5 | 0.6 | (0.3 | ) | — | — | (0.2 | ) | 0.5 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
• | a fee of US$0.05 or less per ADS for any cash distribution made pursuant to the deposit agreement; |
• | a fee of US$1.50 per ADS or ADSs or transfers made pursuant to section 3 of the deposit agreement; |
• | a fee for the distribution or sale of securities pursuant to section 10 of the deposit agreement, this fee being in an amount equal to the fee for the execution and delivery of ADSs, referred to above which would have been charged as a result of the deposit of the securities (for purposes of section 7 of the deposit agreement treating all such securities as if they were shares) but which securities or the net cash proceeds from the sale thereof are instead distributed by the depositary to ADS holders entitled thereto; |
• | an aggregate fee of US$0.05 per ADS per calendar year (or portion thereof) for the services performed by the depositary in administering the ADSs (which fee may be charged on a periodic basis during each calendar year and shall be assessed against holders as of the record date or record dates set by the depositary during each calendar year and shall be payable at the sole discretion of the depositary by billing such holders or by deducing such charge from one or more cash dividends or other cash distributions); and |
• | a fee for the reimbursement of those fees, charges and expenses as are incurred by the depositary and/or any of its agents (including, without limitation, the custodian and expenses incurred on behalf of holders in connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment) in connection with the servicing of the shares or other deposited securities, the sale of securities (including, without limitation, deposited securities), the delivery of deposited securities or otherwise in connection with the depositary’s or its custodian’s compliance with applicable laws, rules or regulations (which fees and charges shall be assessed on a proportionate basis against holders as of the record date or dates set by the depositary and shall be payable at the sole discretion of the depositary by billing such holders or by deducting such charge from one or more cash dividends or other cash distributions), including, without limitation, any amounts charged by any governmental authorities or other institutions such as the Brazilian Clearing and Depository Corporation ( Companhia Brasileira de Liquidação e Custódia |
• | stock transfer or other taxes and other governmental charges (which are payable by holders or persons depositing shares); |
• | SWIFT, cable, telex and facsimile transmission and delivery charges incurred at the request of persons depositing, or holders delivering shares, ADSs or deposited securities (which are payable by such persons or holders); and |
• | transfer or registration fees for the registration or transfer of deposited securities on any applicable register in connection with the deposit or withdrawal of deposited securities (which are payable by persons depositing shares or holders withdrawing deposited securities.; |
Item 13. |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
Item 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
Item 15. |
CONTROLS AND PROCEDURES |
Item 16. |
Reserved |
Principal accountant fees and services |
Year ended December 31, |
|||||||
2021 |
2020 |
|||||||
(in US$ thousands) |
||||||||
Audit Fees |
3,611.6 | 3,783.4 | ||||||
Audit-Related Fees |
1,528.1 | 559.9 | ||||||
Tax Fees |
40.3 | 44.4 | ||||||
All Other Fees |
40.4 | 39.0 | ||||||
Total |
5,220.4 |
4,426.7 |
||||||
Item 17. |
FINANCIAL STATEMENTS |
Item 18. |
FINANCIAL STATEMENTS |
Item 19. |
EXHIBITS |
* | Filed herewith. |
EMBRAER S.A. | ||
By: | /s/ FRANCISCO GOMES NETO | |
Name: | Francisco Gomes Neto | |
Title: | President and Chief Executive Officer | |
By: | /s/ ANTONIO CARLOS GARCIA | |
Name: | Antonio Carlos Garcia | |
Title: | Executive Vice President, Financial and Investor Relations |
Page |
||||
F-2 | ||||
F-8 | ||||
F-9 | ||||
F-10 | ||||
F-11 | ||||
F-12 | ||||
F-13 |
ASSETS |
Note |
12.31.2021 |
12.31.2020 |
|||||||||
CURRENT |
||||||||||||
Cash and cash equivalents |
5 | |||||||||||
Financial investments |
6 | |||||||||||
Trade accounts receivable, net |
7 | |||||||||||
Derivative financial instruments |
8 | |||||||||||
Customer and commercial financing |
9 | |||||||||||
Contract assets |
31.b | |||||||||||
Inventories |
10 | |||||||||||
Guarantee deposits |
||||||||||||
Income tax and social contribution |
||||||||||||
Other assets |
11 | |||||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Assets held for sale |
16 | — | ||||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
NON-CURRENT |
||||||||||||
Financial investments |
6 | |||||||||||
Derivative financial instruments |
8 | — | ||||||||||
Customer and commercial financing |
9 | |||||||||||
Guarantee deposits |
||||||||||||
Deferred income tax and social contribution |
24.1 | |||||||||||
Other assets |
11 | |||||||||||
Investments |
||||||||||||
Property, plant and equipment, net |
15 | |||||||||||
Intangible assets, net |
17 | |||||||||||
Right of use |
||||||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
TOTAL ASSETS |
||||||||||||
|
|
|
|
LIABILITIES |
Note |
12.31.2021 |
12.31.2020 |
|||||||||
CURRENT |
||||||||||||
Trade accounts payable |
19 | |||||||||||
Trade accounts payable - Supplier finance |
20 | — | ||||||||||
Lease liability |
||||||||||||
Loans and financing |
21 | |||||||||||
Other payables |
22 | |||||||||||
Contract liabilities |
31.b | |||||||||||
Derivative financial instruments |
8 | |||||||||||
Taxes and payroll charges payable |
23 | |||||||||||
Income tax and social contribution |
||||||||||||
Financial guarantee and residual value |
25 | |||||||||||
Dividends payable |
— | |||||||||||
Unearned income |
||||||||||||
Provision |
26.1 | |||||||||||
|
|
|
|
|||||||||
Liabilities held for sale |
16 | — | ||||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
NON-CURRENT |
||||||||||||
Lease liability |
||||||||||||
Loans and financing |
21 | |||||||||||
Other payables |
22 | |||||||||||
Contract liabilities |
31.b | |||||||||||
Derivative financial instruments |
8 | |||||||||||
Taxes and payroll charges payable |
23 | |||||||||||
Deferred income tax and social contribution |
24.1 | |||||||||||
Financial guarantee and residual value guarantees |
25 | |||||||||||
Unearned income |
||||||||||||
Provision |
26.1 | |||||||||||
|
|
|
|
|||||||||
|
|
|
|
|||||||||
TOTAL LIABILITIES |
||||||||||||
|
|
|
|
|||||||||
SHAREHOLDERS’ EQUITY |
||||||||||||
Capital |
28.1 | |||||||||||
Treasury shares |
28.3 | ( |
) | ( |
) | |||||||
Revenue reserves |
||||||||||||
Share-based remuneration |
||||||||||||
O ther comprehensive loss |
( |
) | ( |
) | ||||||||
Retained losses |
— | ( |
) | |||||||||
|
|
|
|
|||||||||
Non-controlling interests |
||||||||||||
|
|
|
|
|||||||||
TOTAL SHAREHOLDERS’ EQUITY |
||||||||||||
|
|
|
|
|||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
|
|
|
|
Note |
12.31.2021 |
12.31.2020 |
12.31.2019 |
|||||||||||
REVENUE |
31.a |
|||||||||||||
Cost of sales and services |
( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||||
GROSS PROFIT |
||||||||||||||
OPERATING INCOME (EXPENSE) |
||||||||||||||
Administrative |
( |
) | ( |
) | ( |
) | ||||||||
Selling |
( |
) | ( |
) | ( |
) | ||||||||
Expected credit loss (reversal) over financial assets and contract assets |
( |
) | ||||||||||||
Research |
( |
) | ( |
) | ( |
) | ||||||||
Other operating expense, net |
33 | ( |
) | ( |
) | ( |
) | |||||||
Equity in income (losses) of associates |
32 | ( |
) | |||||||||||
|
|
|
|
|
|
|||||||||
OPERATING INCOME/ (LOSS) BEFORE FINANCIAL RESULT |
( |
) |
( |
) | ||||||||||
Financial expenses, net |
34 | ( |
) | ( |
) | ( |
) | |||||||
Foreign exchange gain (loss), net |
35 | ( |
) | |||||||||||
|
|
|
|
|
|
|||||||||
LOSS BEFORE INCOME TAX |
( |
) |
( |
) | ||||||||||
Income tax expense |
24. 3 |
( |
) | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||||
LOSS FOR THE YEAR |
( |
) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||||
Attributable to : |
||||||||||||||
Owners of Embraer |
( |
) | ( |
) | ( |
) | ||||||||
Non-controlling interests |
||||||||||||||
Earnings per share-basic in US$ |
30 | ( |
) | ( |
) | ( |
) | |||||||
Earnings per share-diluted in US$ |
30 | ( |
) | ( |
) | ( |
) |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
LOSS FOR THE YEAR |
( |
) |
( |
) |
( |
) | ||||||
ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS |
||||||||||||
Put options of non-controlling interest |
( |
) |
( |
) | — | |||||||
Remeasurement of post-employment benefit |
( |
) | — | — | ||||||||
ITEMS THAT MAY BE SUBSEQUENTLY RECLASSIFIED THROUGH PROFIT OR LOSS |
||||||||||||
Financial instruments - Cash flow hedge |
( |
) | ( |
) | ||||||||
Other comprehensive income |
— | — | ||||||||||
Translation adjustments |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX EFFECTS (i) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
TOTAL OF COMPREHENSIVE LOSS |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Attributable to: |
||||||||||||
Owners of Embraer |
( |
) | ( |
) | ( |
) | ||||||
Non-controlling interests |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
( |
) |
( |
) |
( |
) | |||||||
|
|
|
|
|
|
(i) | Items presented above are net of deferred income tax, if applicable, of US$ ( |
Revenue reserves |
O ther comprehensive (loss) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital |
Treasury shares |
Share-based remuneration |
Government grants |
Legal reserve |
For investment and working capital |
Retained earnings |
Result in transactions with non-controlling interest |
Post- employment benefit |
Cumulative translation adjustment |
Financial instruments |
Total shareholders’ equity |
Non-controlling interest |
Total shareholders’ equity |
|||||||||||||||||||||||||||||||||||||||||||
At December 31, 2018 |
( |
) |
— |
( |
) |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Adjustment related to accounting policy change |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
At January 01, 2019 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Loss for the year |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||
Translation adjustments |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||
Financial instruments - Cash flow hedge |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total of comprehensive loss |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||
Stock options grants exercised |
— | — | — | — | — | ( |
) | — | — | — | — | |
— | |||||||||||||||||||||||||||||||||||||||||||
Allocation of profits: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government grants |
— | — | — | — | — | ( |
) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Reserve for investments and working capital |
— | — | — | — | — | ( |
) | — | — | — | — | |
— | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
At December 31, 2019 |
( |
) |
— |
( |
) |
( |
) |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Correction of immaterial out-of-period adjustment |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
At January 01, 2020 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Loss for the year |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||
Translation adjustments |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||||||
PUT options of non-controlling interest |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||||||||||
Financial instruments - Cash flow hedge |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total of comprehensive loss |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||||||||||
Stock options grants exercised |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||||
Allocation of profits: |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Absorption of reserves by loss for the year |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
At December 31, 2020 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Loss for the year |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||
Actuarial loss on post employment benefit obligation |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||||||||||
Translation adjustments |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||
Put options of non-controlling interest |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||||||||||
Financial instruments - Cash flow hedge |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||||||||||
Total of comprehensive loss |
— |
— |
— |
— |
— |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
Repurchases of common shares |
— |
( |
) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||||||||||
Absorption of reserves by loss for the year |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
At December 31, 2021 |
( |
) |
— |
( |
) |
( |
) |
( |
) |
( |
) |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note |
12.31.2021 |
12.31.2020 |
12.31.2019 |
|||||||||||||
OPERATING ACTIVITIES |
||||||||||||||||
Loss for the year |
( |
) | ( |
) | ( |
) | ||||||||||
ADJUSTMENT TO NET INCOME FOR ITEMS NOT AFFECTING CASH |
||||||||||||||||
Depreciation of property plant and equipment |
||||||||||||||||
Realization of government grants |
( |
) | ( |
) | ( |
) | ||||||||||
Amortization of intangible assets |
17 | |||||||||||||||
Realization of contribution from suppliers |
17 | ( |
) | ( |
) | ( |
) | |||||||||
Loss for inventory obsolescence |
( |
) | ||||||||||||||
Adjustment to market value, inventory, property plant and equipment and intangible |
( |
) | ||||||||||||||
Adjustment to market value - Financial investments |
( |
) | — | |||||||||||||
Expect credit losses (reversal) and receivables written-off |
( |
) | ( |
) | ||||||||||||
Losses on fixed assets disposal |
||||||||||||||||
Deferred income tax and social contribution |
24. 2 |
|||||||||||||||
Accrued interest |
||||||||||||||||
Interest on marketable securities, net |
( |
) | ( |
) | ( |
) | ||||||||||
Equity in associates gains and losses |
( |
) | ( |
) | ||||||||||||
Foreign exchange gain (loss), net |
35 | ( |
) | ( |
) | |||||||||||
Mark to market of the residual value guarantees |
( |
) | ( |
) | ||||||||||||
Other provisions |
||||||||||||||||
Others |
( |
) | ( |
) | ( |
) | ||||||||||
CHANGES IN ASSETS |
||||||||||||||||
Financial investments |
( |
) | ( |
) | ||||||||||||
Derivative financial instruments |
( |
) | ||||||||||||||
Collateralized accounts receivable and accounts receivable |
||||||||||||||||
Contract assets |
( |
) | ( |
) | ||||||||||||
Customer and commercial financing |
( |
) | ||||||||||||||
Inventories |
( |
) | ||||||||||||||
Guarantee deposits |
( |
) | ( |
) | ||||||||||||
Other assets |
( |
) | ( |
) | ||||||||||||
CHANGES IN LIABILITIES |
||||||||||||||||
Trade accounts payable |
( |
) | ( |
) | ( |
) | ||||||||||
Trade accounts payable - Supplier finance |
— | — | ||||||||||||||
Non-recourse and recourse debt |
( |
) | ( |
) | ( |
) | ||||||||||
Other payables |
( |
) | ( |
) | ( |
) | ||||||||||
Contribution from suppliers |
— | |||||||||||||||
Contract liabilities |
( |
) | ||||||||||||||
Taxes and payroll charges payable |
( |
) | ||||||||||||||
Financial guarantees |
( |
) | ( |
) | ( |
) | ||||||||||
Unearned income |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||||
NET CASH GENERATED (USED) IN OPERATING ACTIVITIES |
( |
) |
||||||||||||||
|
|
|
|
|
|
|||||||||||
INVESTING ACTIVITIES |
||||||||||||||||
Acquisition of property, plant and equipment |
15 | ( |
) | ( |
) | ( |
) | |||||||||
Proceeds from sale of property, plant and equipment |
15 | |||||||||||||||
Additions to intangible assets |
17 | ( |
) | ( |
) | ( |
) | |||||||||
Additions investments in subsidiaries and affiliates |
( |
) | ( |
) | ( |
) | ||||||||||
Acquisition of subsidiary, net of cash acquired |
( |
) | — | |||||||||||||
Acquisition of non controlling interest |
( |
) | — | — | ||||||||||||
Financial investments |
||||||||||||||||
Dividends received |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
NET CASH GENERATED (USED) IN INVESTING ACTIVITIES |
( |
) |
( |
) |
||||||||||||
|
|
|
|
|
|
|||||||||||
FINANCING ACTIVITIES |
||||||||||||||||
Proceeds from borrowings |
||||||||||||||||
Repayment of borrowings |
( |
) | ( |
) | ( |
) | ||||||||||
Dividends and interest on own capital |
— | ( |
) | |||||||||||||
Proceeds from stock options exercised |
||||||||||||||||
Repurchases of common shares |
( |
) | — | — | ||||||||||||
Lease payments |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
NET CASH GENERATED (USED) IN FINANCING ACTIVITIES |
( |
) |
( |
) | ||||||||||||
|
|
|
|
|
|
|||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
( |
) |
( |
) |
||||||||||||
Effects of exchange rate changes on cash and cash equivalents |
( |
) | ( |
) | ||||||||||||
Cash and cash equivalents at the beginning of the period |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
Included in cash and cash equivalents per the statements of financial position* |
||||||||||||||||
Included in assets held for sale - Commercial Aviation business unit |
16 | — | — |
1. |
Operations |
(i) | To design, build and market aircraft and aerospace materials and related accessories, components and equipment, according to the highest standards of technology and quality. |
(ii) | To perform and carry out technical activities related to the manufacturing and servicing of aerospace materials. |
(iii) | To contribute to the training of technical personnel as necessary for the aerospace industry. |
(iv) | To engage in and provide services for other technological, manufacturing and business activities in connection with the aerospace industry. |
(v) | To design, build and trade in equipment, materials, systems, software, accessories and components for the defense, security and power industries, and to promote and carry out technical activities related to the manufacturing and servicing thereof, in accordance with the highest technological and quality standards. |
(vi) | To conduct other technological, manufacturing, trading and services activities related to the defense, security and power industries. |
• | Business segments that relies upon mostly on the economic activities of developed countries (such as the Commercial and Executive segments, both with its respective business activities more concentrated in the United States and Europe) are surpassing faster than previously expected the negative effects of the pandemic since these countries, by their own turn, presented the fastest vaccination rates for its populations in the global perspective, while other business segments (Defense, in particular) did not present significant changes in terms of business volumes reductions throughout the pandemic due to its intrinsic operating characteristics. |
• | Relevant trends for both the Commercial (operating activation of once parked or deactivated aircrafts, specially by leasing companies) and Executive (increase in market demand for aircrafts, highlighted by the used aircrafts market) segments also represented additional business opportunities for the products and services under the Services and Support business unit. |
• |
The adverse effects of the pandemic were reflected not only in the customer perspective regarding actual aircraft utilization but also in Embraer’s internal processes dedicated to supporting its clients, a trend highlighted by the increase in actual costs and operating challenges associated to materials transportation. |
• | Finally, as the vaccination campaigns against COVID-19 continues to move forward and, given the fact that at least until this moment no new variant of the virus has the potential of reinforcing for a longer term the adverse effects of the pandemic, it is expected that all segments associated to the Services & Support business unit continue on its tracks to either recover pre-pandemic business volumes (like the Commercial segment) or to continue its business activities without presenting significative losses associated to its volumes before the start of the COVID-19 pandemic (as it is the case with Defense and Executive segments). |
2. |
Presentation of the Financial Statements and Accounting Practices |
Entity |
Participation Embraer |
Country |
Core activities | |||||
Airholding S.A. |
% |
|||||||
OGMA -Indústria Aeronáutica de Portugal S.A. |
% | |||||||
Yaborã Indústria Aeronáutica S.A. |
% |
|||||||
ELEB – Equipamentos Ltda. |
% | |||||||
Embraer Overseas Ltd. |
% | |||||||
Embraer Netherlands Finance B.V. |
% | |||||||
Embraer Netherlands B.V. |
% | |||||||
Embraer Asia Pacific PTE. Ltd. |
% | |||||||
Embraer Portugal S.A. |
% | |||||||
Embraer - Portugal Estruturas Metálicas S.A |
% | |||||||
Embraer - Portugal Estruturas em Compósitos S.A. |
% | |||||||
Embraer (China) Aircraft Technical Services Co. Ltd. |
% | |||||||
EZ Air Interior Limited |
% | |||||||
Embraer Aircraft Holding Inc. |
% |
|||||||
Embraer Aircraft Customer Services, Inc. |
% | |||||||
Embraer Aircraft Maintenance Services Inc. |
% | |||||||
Embraer Business Innovation Center, Inc. |
% | |||||||
Embraer Executive Jet Services, LLC |
% | |||||||
Embraer Executive Aircraft, Inc. |
% | |||||||
Embraer Engineering & Technology Center USA, Inc. |
% | |||||||
Embraer Defense and Security Inc. |
% | |||||||
Embraer CAE Training Services LLC |
% | |||||||
Embraer Solutions, LLC |
% | |||||||
EVE UAM, LLC. |
% | and support and solutions for urban air traffic management, related to Urban Air Mobility (UAM) | ||||||
EVE Soluções De Mobilidade Aérea Urbana Ltda. |
% | |||||||
Embraer Aviation Europe - EAE |
% |
|||||||
Embraer Aviation International - EAI |
% | Africa and the Middle East | ||||||
Embraer Aviation France - EAF |
% | |||||||
Embraer Europe SARL |
% | Europe, Africa and the Middle East | ||||||
Embraer Defesa & Segurança Participações S.A. |
% |
Security segments | ||||||
Atech - Negócios em Tecnologias S.A. |
% | computer and intelligence services | ||||||
Visiona Tecnologia Espacial S.A. |
% | |||||||
Visiona Internacional B.V. |
% | |||||||
Tempest Serviços de Informática S.A. |
% | |||||||
Tempest Security Intelligence Limited |
% | |||||||
EZS Informática S.A. |
% | |||||||
ID IT Tecnologia da Informação Ltda. |
% | |||||||
Embraer GPX Ltda |
% |
|||||||
Embraer Spain Holding Co. SL |
% |
|||||||
ECC Investment Switzerland AG |
% | |||||||
ECC Insurance & Financial Company Limited. |
% | |||||||
Embraer Finance Ltd. |
% | |||||||
Fundo de Investimento em Participações |
% |
12.31.2020 |
||||||||||||
ASSETS |
Published |
Adjustment |
Recasted |
|||||||||
CURRENT |
||||||||||||
Inventories |
( |
) | ||||||||||
Other assets |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
( |
) |
||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES |
||||||||||||
|
|
|
|
|
|
|||||||
SHAREHOLDERS’ EQUITY |
||||||||||||
Capital |
||||||||||||
Treasury shares |
( |
) | ( |
) | ||||||||
Revenue reserves |
||||||||||||
Share-based remuneration |
||||||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||||||
Retained earning |
( |
) | ( |
) | ||||||||
Non-controlling interests |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL SHAREHOLDERS’ EQUITY |
( |
) |
||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
( |
) |
||||||||||
|
|
|
|
|
|
01.01.2020 |
||||||||||||
ASSETS |
Published |
Adjustment |
Recasted |
|||||||||
CURRENT |
||||||||||||
Inventories |
( |
) | ||||||||||
Other assets |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
( |
) |
||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES |
||||||||||||
|
|
|
|
|
|
|||||||
SHAREHOLDERS’ EQUITY |
||||||||||||
Capital |
||||||||||||
Treasury shares |
( |
) | ( |
) | ||||||||
Revenue reserves |
||||||||||||
Share-based remuneration |
||||||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||||||
Retained earning |
( |
) | ( |
) | ||||||||
Non-controlling interests |
||||||||||||
|
|
|
|
|
|
|||||||
TOTAL SHAREHOLDERS’ EQUITY |
( |
) |
||||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
( |
) |
||||||||||
|
|
|
|
|
|
• | Currency that most influences the prices of goods and services; this is the currency in which the sales price of its goods and services are expressed and settled. |
• | Currency of the country whose competitive forces and regulations most influence the Company’s business. |
• | Currency that most influences the costs of providing goods or services, i.e., the currency in which the Company’s costs are normally expressed and settled. |
• | Currency in which the Company largely obtains funds for financial operations and in which it normally receives for its sales and accumulates cash. |
• | Assets and liabilities for each statements of financial position presented are translated at the closing rate at the date of that statements of financial position. |
• | Income and expenses for each statement of income and statements of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions), and |
• | All resulting exchange differences are recognized in the statements of comprehensive income in the line of translation adjustments. |
• | The asset is held within a business model whose objective is to collect the contractual cash flows; and |
• | The contractual terms give rise to cash flows, at specific dates, which relate only to the payments of principal and interest. |
• |
The current financial policy and the objectives set for portfolio management, which includes assessing whether the strategy focuses on contractual interest income, maintaining a determined interest rate profile, the relationship between the duration of the financial assets and related liabilities, expected cash outflows, or the collection of cash flows through the sale of underlying financial assets. |
• |
How portfolio performance is assessed and reported to Management. |
• |
Risks that affect the performance of the business model and how they are managed. |
• |
The frequency, volume and timing of assets sales in prior periods, the reasons for such transactions and future expectations. |
a) |
Land - |
b) |
Buildings and land improvements - |
c) |
Facilities - |
d) |
Machinery and equipment - |
e) |
Furniture and fixtures |
f) |
Vehicles - |
g) |
Aircraft - |
h) |
Computers and peripherals - |
i) |
Tooling - |
j) |
Property, plant and equipment in progress - |
k) |
Exchange pool program - |
i) |
Discount rate - brings future benefit flows to present value and is defined based on the ratio of Brazilian government securities. |
ii) |
Increase of medical costs rate - represents the increase in the value of medical care and is not applied linearly, as the companies historically tend to take measures to reduce the cost, or even change health plan providers. |
iii) |
Morbidity rate (aging factor) - measures the increased use of health plans in light of the aging population. |
iv) |
Mortality rate - uses the RP-2000 generational table provided by Society of Actuaries (SOA), which shows the rate by age and sex. |
v) |
Probability of Retirement - estimates the probability of retirement by age group. |
vi) |
Churn rate - uses the T-3 Table Service available from the Society of Actuaries (SOA), which shows the average rate of termination of employees by age. |
a) |
Material - |
b) |
Labor - |
c) |
Depreciation - |
d) |
Amortization - |
e) |
Product warranties - |
f) |
Multiple-element arrangements |
3. |
Critical accounting estimates and significant judgements |
a) |
Gross expected cash flow - |
b) |
Growth rates - and the gro budgeted by the Company, consistent with the forecasts included in industry reports. ss margin |
c) |
Discount rates - |
d) |
Foreign exchange rate USD/BRL |
4. |
New accounting standards and interpretations |
• | Property, Plant and Equipment: Proceeds before intended use – Amendments to IAS 16 |
• | Onerous Contracts – Cost of Fulfilling a Contract Amendments to IAS 37 |
• | Classification of Liabilities as Current or Non-current – Amendments to IAS 1 |
• | Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 |
• | Definition of Accounting Estimates – Amendments to IAS 8 |
• | Annual Improvements to IFRS Standards 2018–2020 |
5. |
Cash and cash equivalents |
12.31.2021 |
12.31.2020 |
|||||||
Cash and banks |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Cash equivalents |
||||||||
Bank deposit certificate (i) |
||||||||
Fixed deposits (ii) |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
|
|
|
|
(i) | Applications in Bank Deposit Certificates (CDB’s), issued by financial institutions in Brazil, available for redemption in up to 90 days. |
(ii) | Fixed term deposits in US Dollars with original maturities of |
6. |
Financial investments |
12.31.2021 |
12.31.2020 |
|||||||||||||||||||||||||||||||
Amortized cost |
Fair value through other comprehensive income |
Fair value through profit or loss |
Total |
Amortized cost |
Fair value through other comprehensive income |
Fair value through profit or loss |
Total |
|||||||||||||||||||||||||
Financial instruments |
||||||||||||||||||||||||||||||||
Public securities |
— | — | — | — | ||||||||||||||||||||||||||||
Structured Notes (i) |
— | — | — | |||||||||||||||||||||||||||||
Investment funds |
— | — | — | — | ||||||||||||||||||||||||||||
Fixed-Term Deposits (ii) |
— | — | — | |||||||||||||||||||||||||||||
Others (iii) |
— | — | — | — | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Current portion |
||||||||||||||||||||||||||||||||
Non-current |
— | — | — | — |
(i) | Structured notes, the Company maintains financial investments in structured notes associated with the credit risk of financial institution issuer and the Brazilian government, in the amount of US$ |
(ii) |
Fixed term deposits in US Dollars issued by financial institutions, with original maturities of 90 days or higher from the date of hiring. |
(iii) |
It mainly relates to shares of the Republic Airways Holdings, arising from the request for the judicial reorganization of the former entity Republic Airways and received by the Company as part of the restructuring plan. Changes in the fair value of this financial investment is presented in Note 27. |
7. |
Trade accounts receivable, net |
12.31.2021 |
12.31.2020 |
|||||||
Foreign customers |
||||||||
Brazilian Air Force |
||||||||
Domestic customers |
||||||||
|
|
|
|
|||||
Allowance for doubtful accounts |
( |
) | ( |
) | ||||
|
|
|
|
|||||
|
|
|
|
12.31.2021 |
12.31.2020 |
|||||||
Current |
||||||||
Up to 90 days |
||||||||
From 91 to 180 days |
||||||||
More than 180 days |
||||||||
|
|
|
|
|||||
|
|
|
|
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Beginning balance |
( |
) |
( |
) |
( |
) | ||||||
Additions/Reversal |
( |
) | ( |
) | ( |
) | ||||||
Write-off |
||||||||||||
Reclassification* |
— | — | ||||||||||
Foreign exchange variation |
( |
) | ||||||||||
Assets held for sale |
— | ( |
) | |||||||||
|
|
|
|
|
|
|||||||
Ending balance |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
* | Reclassification refers to transfer of expected credit losses provision recognized over trade accounts receivable overdue balances that were renegotiated with certain customers during 2020 and reclassified to the customer and commercial financing account in the consolidated statements of financial position. |
8. |
Derivative financial instruments |
• | Swap operations, with the main objective of changing the debts index, from floating rates to fixed interest rates or vice versa, exchange of Real to US Dollars and vice versa. The fair values of these instruments are measured by the future flow, determined by applying contractual interest rates to maturity, and discounted to present value at the date of the financial statements by the prevailing market rates. |
• | Purchase of sell and by currency options, in order to protect cash flows for the parent company’s wage costs denominated in Reais, against the risk of currency fluctuations. The financial instrument used by the Company is a zero-cost collar, which consists of the purchasing of a put option and the sale of a call option, contracted with the same counterparty and with a zero-net premium. The fair value of this instrument is determined by the observable market pricing model (through market information providers) and widely used by market participants to measure similar instruments. |
• | Non-deliverable forward (NDF), with the purpose of protecting the Company against the risks of exchange rate fluctuations. The fair value is determined by the observable market pricing model. |
Purpose |
Risk |
Instrument |
Notional |
Settlement date |
12.31.2021 |
12.31.2020 |
||||||||||||||
Cash flow hedge designated as hedge accounting |
( |
) |
||||||||||||||||||
Payroll expenses settled in Brazilian Reais |
Exchange rate |
Zero-cost collar derivative financial instruments, with purchase of put options at the exercise price of R$ 5.20 and sale of call options at the weighted average exercise price of R$ 6.32. |
— | — | ||||||||||||||||
|
( |
) | — | |||||||||||||||||
|
|
|
|
|||||||||||||||||
Fair value hedge designated as hedge accounting |
||||||||||||||||||||
|
|
|
|
|||||||||||||||||
Project development |
Interest rate |
|
||||||||||||||||||
Export Financing |
Interest rate |
|
— | — | ( |
) | ||||||||||||||
Export Financing |
Exchange rate and interest rate |
|
— | — | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Others derivatives not designated as hedge accounting |
( |
) |
( |
) | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Acquisition of property, plant and equipment |
Interest rate |
|
( |
) | ( |
) | ||||||||||||||
Export |
Exchange rate |
Non-Deliverable Forwards to exchanges Euro currency debt to US Dollars currency. |
— | — | ||||||||||||||||
Export |
Interest rate |
|
( |
) | ( |
) | ||||||||||||||
|
|
|
|
|||||||||||||||||
( |
) |
( |
) | |||||||||||||||||
|
|
|
|
12.31.2021 |
12.31.2020 |
|||||||
Assets |
||||||||
Current portion |
||||||||
Non-current |
||||||||
Liabilities |
||||||||
Current portion |
( |
) | ( |
) | ||||
Non-current |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net derivative financial instruments |
( |
) |
( |
) | ||||
|
|
|
|
9. |
Customer and commercial financing |
12.31.2021 |
12.31.2020 |
|||||||
Aircraft (i) |
||||||||
Spare parts (ii) |
||||||||
|
|
|
|
|||||
Expected credit losses |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Current portion |
||||||||
Non-current portion |
(i) | Aircraft: financing provided to customers related to the acquisition of used aircraft. The fair value of used aircraft provided as collateral in the used aircraft customer financing structure, which could minimize the losses in case of default (collateral assets), were considered to reduce the expected credit losses (ECL) for such transaction. |
(ii) | Parts and services: financing provided to certain customers as a result of the COVID-19 impacts over the Commercial Aviation business related to the supply of parts and services mainly provided during the year of 2020. The terms negotiated within the renegotiation agreement establishes interest of |
12.31.2021 |
12.31.2020 |
|||||||
Beginning balance |
( |
) |
||||||
(Additions)/Reversal |
||||||||
Reclassifications |
( |
) | ||||||
|
|
|
|
|||||
Ending balance |
( |
) |
( |
) | ||||
|
|
|
|
Year |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter 2025 |
||||
|
|
|||
|
|
10. |
Inventories |
12.31.2021 |
12.31.2020 |
|||||||
Raw materials |
||||||||
Work in process |
||||||||
Spare parts |
||||||||
Finished goods (i) |
||||||||
Held by third parties |
||||||||
Advances to suppliers |
||||||||
Inventory in transit |
||||||||
Consumption materials |
||||||||
Used aircraft (ii) |
||||||||
Loss on adjustment to market value (iii) |
( |
) | ( |
) | ||||
Loss due to obsolescence (iv) |
( |
) | ( |
) | ||||
|
|
|
|
|||||
|
|
|
|
(i) | The following aircraft were held in the finished goods inventory: |
• | December 31, 2021: |
• | December 31, 2020: 195-E2, |
(ii) | The following used aircraft were held in inventory as available for sale: |
• | December 31, 2021: |
• | December 31, 2020: 190-E2. |
(iii) | Changes in the provision for adjustments to the realizable value of work in process, finished goods and used aircraft were as follows: |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Beginning balance |
( |
) |
( |
) |
( |
) | ||||||
Additions |
( |
) | ( |
) | ( |
) | ||||||
Disposals |
||||||||||||
Assets held for sale |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Ending balance |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
(iv) | Changes in the provision for obsolescence were as follows: |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Beginning balance |
( |
) |
( |
) |
( |
) | ||||||
Additions |
( |
) | ( |
) | ( |
) | ||||||
Disposals* |
||||||||||||
Reversals |
— | |||||||||||
Foreign exchange loss |
( |
) | ||||||||||
Assets held for sale |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Ending balance |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
* | Disposals relates to obsolete materials and parts sold by the Company during the year. |
11. |
Other assets |
12.31.2021 |
12.31.2020 |
|||||||
Taxes recoverable (i) |
||||||||
Other debtors (ii) |
||||||||
Prepaid expenses |
||||||||
Court-mandated escrow deposits (iii) |
||||||||
Loan with a joint operation |
||||||||
Advances to employees |
||||||||
Advances for services to be rendered |
||||||||
Collateralized accounts receivable |
||||||||
Others |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Current portion |
||||||||
Non-current portion |
(i) | Taxes recoverable |
12.31.2021 |
12.31.2020 |
|||||||
ICMS (State Value-added Tax) and IPI (Excise Tax) |
||||||||
PIS (Social Integration Program) and COFINS |
||||||||
Income tax and social security on net income |
||||||||
ISS (Service tax) |
||||||||
Others |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Current portion |
||||||||
Non-current portion |
(ii) | Corresponds mainly to rework done on materials and parts received from suppliers, which will be reimbursed in cash by the supplier or through credits granted that can be used to offset trade accounts payable when requested by the Company and approved by the supplier. |
(iii) | Refers to deposits arising from lawsuits, substantially to federal taxes and contributions, in which there is a liability recorded Note 26. |
12. |
Interest in entities |
• | Economic Risks: potential losses from fluctuations in market conditions (price of products, exchange rate and interest). |
• | Operational risk: potential losses resulting from the emergence of new technologies or failure of current processes. |
• | Credit risk: potential losses that might occur if a third party (customer) becomes unable to meet its obligations, and |
• | Liquidity risk: financial inability to meet financial obligations. |
12.31.2021 |
||||||||||||||||||||
Entity |
Country |
Participation Embraer Group |
Non-controlling interest |
Comprehensive income |
||||||||||||||||
|
|
|||||||||||||||||||
OGMA - Indústria Aeronáutica de Portugal S.A. |
|
|
% | % | ( |
) | ||||||||||||||
Visiona Tecnologia Espacial S.A. |
|
|
% | % | ( |
) | ||||||||||||||
Embraer CAE Training Services |
|
|
% | % | ||||||||||||||||
Tempest Serviços de Informática S.A. |
|
|
% | % | ( |
) | ||||||||||||||
|
|
|
|
|||||||||||||||||
|
|
|||||||||||||||||||
|
|
|
|
12.31.2020 |
||||||||||||||||||
Entity |
Country |
Participation Embraer Group |
Non-controlling interest |
Comprehensive income |
||||||||||||||
OGMA - Indústria Aeronáutica de Portugal S.A. |
% | % | ||||||||||||||||
Embraer CAE Training Services Ltd. |
% | % | — | — | ||||||||||||||
Visiona Tecnologia Espacial S.A. |
% | % | ( |
) | ||||||||||||||
Embraer CAE Training Services |
% | % | ||||||||||||||||
Tempest Serviços de Informática S.A. |
% | % | ||||||||||||||||
|
|
|||||||||||||||||
|
|
12.31.2019 |
||||||||||||||||||||
Entity |
Country |
Participation Embraer Group |
Non-controlling interest |
Comprehensive income |
||||||||||||||||
OGMA - Indústria Aeronática de Portugal S.A. |
|
|
% | % | ||||||||||||||||
Embraer CAE Training Services Ltd. |
|
|
% | % | — | — | ||||||||||||||
Visiona Tecnologia Espacial S.A. |
|
|
% | % | ( |
) | ||||||||||||||
Embraer CAE Training Services |
|
|
% | % | ||||||||||||||||
|
|
|
|
|||||||||||||||||
|
|
|||||||||||||||||||
|
|
|
|
12.31.2021 |
12.31.2020 |
|||||||
Cash and cash equivalents |
||||||||
Current assets |
||||||||
Non-current assets |
||||||||
Current liabilities |
||||||||
Non-current liabilities |
||||||||
Noncontrolling interest |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Revenue |
||||||||||||
Net income for the year |
( |
) |
13. |
Business combination |
14. |
Related parties |
(i) | Assets: (i) accounts receivable for spare parts, aircraft sales and product development, under conditions agreed between the parties, considering the volumes, risks involved and corporate policies (ii) balances of financial investments; and (iv) bank deposits. |
(ii) | Liabilities: (i) purchase of aircraft components and spare parts, under conditions agreed between the parties, considering the volumes, risks involved and corporate policies (ii) advances received on sales contracts, according to contractual agreements; (iii) commission for sale of aircraft and spare parts (iv) financing for research and product development at market rates for this kind of financing (v) loans and financing; and (vi) export financing, and |
(iii) | Amounts in the consolidated statements of income: (i) purchases and sales of aircraft, components and spare parts and development of products for the defense and security market; (ii) financial income from financial investments and expense from loans and financing, and (iii) supplementary pension plan. |
• | Major customer for Defense & Security products (through the Brazilian Air Force, Brazilian Army and Brazilian Navy). |
• | Source of research and development financing through technology development institutions (FINEP and BNDES). |
• | Export credit agency (through the BNDES), and |
• | Source of short-term and long-term financing and a provider of asset management and commercial banking services (through Banco do Brasil). |
12.31.2021 |
||||||||||||||||||||||||
Current |
Non-current |
Financial |
Operating |
|||||||||||||||||||||
Assets |
Liabilities |
Assets |
Liabilities |
Results |
Results |
|||||||||||||||||||
Banco do Brasil S.A. |
— | — | — | ( |
) | — | ||||||||||||||||||
Banco Nacional de Desenvolvimento Econômico e Social - BNDES |
— | — | ( |
) | — | |||||||||||||||||||
Brazilian Air Force |
— | — | — | ( |
) | |||||||||||||||||||
Brazilian Army |
— | — | — | |||||||||||||||||||||
Embraer Prev - Sociedade de Previdência Complementar |
— | — | — | — | ( |
) | ||||||||||||||||||
Ez Air Interior Limited |
— | — | ||||||||||||||||||||||
Financiadora de Estudo e Projetos - FINEP |
— | — | ( |
) | — | |||||||||||||||||||
FIP Aeroespacial |
— | — | — | — | — | |||||||||||||||||||
Marinha do Brasil |
— | — | — | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
( |
) |
( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
12.31.2020 |
||||||||||||||||||||||||
Current |
Non-current |
Financial |
Operating |
|||||||||||||||||||||
Assets |
Liabilities |
Assets |
Liabilities |
Results |
Results |
|||||||||||||||||||
Banco do Brasil S.A. |
— | ( |
) | — | ||||||||||||||||||||
Banco Nacional de Desenvolvimento Econômico e Social - BNDES |
— | — | ( |
) | — | |||||||||||||||||||
Brazilian Air Force |
— | — | — | ( |
) | |||||||||||||||||||
Brazilian Army |
— | — | — | |||||||||||||||||||||
Embraer Prev - Sociedade de Previdência Complementar |
— | — | — | — | ( |
) | ||||||||||||||||||
Ez Air Interior Limited |
— | — | ||||||||||||||||||||||
Financiadora de Estudo e Projetos - FINEP |
— | — | ( |
) | — | |||||||||||||||||||
Marinha do Brasil |
— | — | — | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
( |
) |
( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
12.31.2019 |
||||||||
Financial Results |
Operating Results |
|||||||
Banco do Brasil S.A. |
— | |||||||
Banco Nacional de Desenvolvimento Econômico e Social - BNDES |
( |
) | — | |||||
Brazilian Air Force |
— | ( |
) | |||||
Marinha do Brasil |
— | ( |
) | |||||
Embraer Prev - Sociedade de Previdência Complementar |
— | ( |
) | |||||
Brazilian Army |
— | |||||||
Financiadora de Estudo e Projetos - FINEP |
( |
) | — | |||||
|
|
|
|
|||||
( |
) |
( |
) | |||||
|
|
|
|
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Short-term benefits (i) |
||||||||||||
Share based payment (ii) |
( |
) | ||||||||||
Labor contract termination |
||||||||||||
|
|
|
|
|
|
|||||||
Total remuneration |
||||||||||||
|
|
|
|
|
|
(i) | Includes wages, salaries, profit sharing, bonuses and indemnities distributed to the key management personnel, which are settled in Brazilian Real, as well as the compensation of external members engaged in the statutory advisory committees. |
(ii) | Accounts payable were reduced in 2020 and increased in 2021 due to the Company’s shares price changes in these periods end, which is applied to measure the share-based payment plan settled in cash, as disclosed in Note 29. |
15 |
Property, plant and equipment |
Class of assets |
Estimated life | |
Buildings and improvements |
||
Installations |
||
Machinery and equipment |
||
Furniture and fixtures |
||
Vehicles |
||
Aircraft |
||
Computers and peripherals |
||
Tooling |
||
Exchange pool program assets |
12.31.2021 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Land |
Buildings and improvements |
Installations |
Machinery and equipment |
Furniture and fixtures |
Vehicles |
Aircraft |
Computers and peripherals |
Tooling |
Other assets |
Exchange pool program assets |
Construction in progress |
Total |
||||||||||||||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||||||
Disposals |
— |
( |
) |
— |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||
Impairment |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||
Reclassifications* |
— |
— |
— |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||||||||||||
Translation adjustments |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||
Assets held for sale |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
— |
( |
) |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
At December 31, 2021 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Accumulated depreciation |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2020 |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||
Depreciation |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||
Disposals |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications* |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||
Interest on capitalized assets |
— |
( |
) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) | |||||||||||||||||||||||||||||||||||||
Impairment |
— |
— |
— |
( |
) |
— |
— |
— |
— |
( |
) |
— |
— |
— |
( |
) | ||||||||||||||||||||||||||||||||||||
Translation adjustments |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Assets held for sale |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
At December 31, 2021 |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2020 |
— |
|||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2021 |
— |
12.31.2020 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Land |
Buildings and improvements |
Installations |
Machinery and equipment |
Furniture and fixtures |
Vehicles |
Aircraft |
Computers and peripherals |
Tooling |
Other assets |
Exchange pool program assets |
Construction in progress |
Total |
||||||||||||||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||||||||
Additions - business combination |
— |
— |
— |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||||
Disposals |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||||||
Impairment |
— |
— |
— |
— |
— |
( |
) |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||
Reclassifications* |
— |
— |
— |
( |
) |
— |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||
Translation adjustments |
— |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||||
Assets held for sale |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
At December 31, 2020 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Accumulated depreciation |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2019 |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||
Depreciation |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||
Depreciation - business combination |
— |
( |
) |
— |
( |
) |
( |
) |
— |
— |
( |
) |
— |
— |
— |
— |
( |
) | ||||||||||||||||||||||||||||||||||
Disposals |
— |
— |
— |
— |
||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications* |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) |
— |
||||||||||||||||||||||||||||||||||||||||
Interest on capitalized assets |
— |
( |
) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) | |||||||||||||||||||||||||||||||||||||
Translation adjustments |
— |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||||||
Assets held for sale |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
At December 31, 2020 |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2020 |
— |
12.31.2019 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Land |
Buildings and improvements |
Installations |
Machinery and equipment |
Furniture and fixtures |
Vehicles |
Aircraft |
Computers and peripherals |
Tooling |
Other assets |
Exchange pool program assets |
Construction in progress |
Total |
||||||||||||||||||||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2018 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions |
— |
|||||||||||||||||||||||||||||||||||||||||||||||||||
Disposals |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Impairment |
— |
— |
— |
( |
) |
— |
— |
( |
) |
— |
( |
) |
— |
— |
— |
( |
) | |||||||||||||||||||||||||||||||||||
Reclassifications* |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||||||||||||||||||||||||||
Translation adjustments |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
— |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||
Assets held for sale |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
At December 31, 2019 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Accumulated depreciation |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2018 |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||
Depreciation |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
— |
( |
) | |||||||||||||||||||||||||||||
Disposals |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications* |
— |
( |
) |
— |
— |
— |
( |
) |
— |
|||||||||||||||||||||||||||||||||||||||||||
Interest on capitalized assets |
— |
( |
) |
— |
— |
— |
— |
— |
— |
— |
— |
— |
— |
( |
) | |||||||||||||||||||||||||||||||||||||
Translation adjustments |
— |
( |
) |
— |
( |
) |
— |
( |
) |
— |
— |
|||||||||||||||||||||||||||||||||||||||||
Assets held for sale |
— |
— |
— |
|||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
At December 31, 2019 |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Net |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2018 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
At December 31, 2019 |
* | Non-cash transactions (reclassification between accounts within property, plant and equipment and inventories). |
16 |
Assets held for sale |
ASSETS HELD FOR SALE |
Note |
12.31.2021 |
LIABILITIES HELD FOR SALE |
12.31.2021 |
||||||||||
Cash and cash equivalents |
Trade accounts payable | |||||||||||||
Trade accounts receivable, net |
Other payables | |||||||||||||
Inventories |
Taxes and payroll charges payable | |||||||||||||
Income tax and social contribution |
Unearned income | |||||||||||||
|
|
|||||||||||||
Other assets |
TOTAL |
|||||||||||||
Guarantee deposits |
||||||||||||||
Deferred income tax and social contribution |
24 | |||||||||||||
Property, plant and equipment, net* |
15 | |||||||||||||
Intangible assets |
17 | Net assets to be disposed | ||||||||||||
|
|
|
|
|||||||||||
TOTAL |
TOTAL |
|||||||||||||
|
|
|
|
* |
Property, plant and equipment included in the assets held for sale (US$ |
17 |
Intangible assets |
12.31.2021 |
||||||||||||||||||||||||||||||||||||
Internally developed |
Acquired from third party |
|||||||||||||||||||||||||||||||||||
Commercial |
Executive |
Defense and Security |
Others |
Development |
Software |
Goodwill |
Others |
Total |
||||||||||||||||||||||||||||
Intangible cost |
||||||||||||||||||||||||||||||||||||
At December 31, 2020 |
||||||||||||||||||||||||||||||||||||
Additions |
— | |||||||||||||||||||||||||||||||||||
Disposals |
— | — | — | — | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||||
Impairment |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Interest on capitalized assets |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Translation adjustments |
— | — | — | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Assets held for sale |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
At December 31, 2021 |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Accumulated amortization |
||||||||||||||||||||||||||||||||||||
At December 31, 2020 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Amortization |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||||
Amortization of contribution from supplier |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Disposals |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Impairment |
— | ( |
) | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||
Interest on capitalized assets |
— | ( |
) | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||
Translation adjustments |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Assets held for sale |
— | — | — | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
At December 31, 2021 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Intangible, net |
||||||||||||||||||||||||||||||||||||
At December 31, 2020 |
||||||||||||||||||||||||||||||||||||
At December 31, 2021 |
12.31.2020 |
||||||||||||||||||||||||||||||||||||
Internally developed |
Acquired from third party |
|||||||||||||||||||||||||||||||||||
Commercial |
Executive |
Defense and Security |
Others |
Development |
Software |
Goodwill |
Others |
Total |
||||||||||||||||||||||||||||
Intangible cost |
||||||||||||||||||||||||||||||||||||
At December 31, 2019 |
||||||||||||||||||||||||||||||||||||
Additions |
— | |||||||||||||||||||||||||||||||||||
Additions - business combination |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Disposals |
— | — | — | — | ( |
) | ( |
) | — | — | ( |
) | ||||||||||||||||||||||||
Impairment |
— | — | — | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||||||||
Interest on capitalized assets |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Translation adjustments |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Assets held for sale |
— | — | — | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
At December 31, 2020 |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Accumulated amortization |
||||||||||||||||||||||||||||||||||||
At December 31, 2019 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||||||||
Amortization |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||||
Amortization - business combination |
— | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||
Amortization of contribution from supplier |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Disposals |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Interest on capitalized assets |
( |
) | — | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||
Translation adjustments |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||
Assets held for sale |
( |
) | ( |
) | — | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
At December 31, 2020 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Intangible, net |
||||||||||||||||||||||||||||||||||||
At December 31, 2019 |
||||||||||||||||||||||||||||||||||||
At December 31, 2020 |
12.31.2019 |
||||||||||||||||||||||||||||||||||||
Internally developed |
Acquired from third party |
|||||||||||||||||||||||||||||||||||
Commercial |
Executive |
Defense and Security |
Others |
Development |
Software |
Goodwill |
Others |
Total |
||||||||||||||||||||||||||||
At December 31, 2018 |
||||||||||||||||||||||||||||||||||||
Additions |
— | |||||||||||||||||||||||||||||||||||
Contributions from suppliers |
( |
) | — | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||
Disposals |
— | — | — | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||||||||
Impairment |
— | ( |
) | — | — | — | — | — | — | ( |
) | |||||||||||||||||||||||||
Interest on capitalized assets |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Translation adjustments |
— | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||
Assets held for sale |
( |
) | ( |
) | — | — | — | ( |
) | — | ( |
) | ( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
At December 31, 2019 |
— |
|||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Accumulated amortization |
||||||||||||||||||||||||||||||||||||
At December 31, 2018 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||||||
Amortization |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | |||||||||||||||||||
Amortization of contribution from supplier |
— | — | — | — | — | — | ||||||||||||||||||||||||||||||
Disposals |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Interest on capitalized assets |
( |
) | — | — | — | — | — | — | ( |
) | ||||||||||||||||||||||||||
Assets held for sale |
— | — | — | — | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
At December 31, 2019 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) |
( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Intangible, net |
||||||||||||||||||||||||||||||||||||
At December 31, 2018 |
||||||||||||||||||||||||||||||||||||
At December 31, 2019 |
— |
18 |
Impairment of assets |
12.31.2020 |
Additions |
Reversal |
Amortization |
12.31.2021 |
||||||||||||||||
Cash-generating units |
||||||||||||||||||||
Mid-Size / Super Mid-Size Platform |
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
||||||
Satellites |
|
3 .8 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allocation of impairment losses |
||||||||||||||||||||
Fixed assets - Machinery and equipment |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed assets - Tooling |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Intangibles - Internally developed |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|||||||||||||||||
Operating segments (Note 38) |
||||||||||||||||||||
Executive Aviation |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Defense & Security |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
Key assumption |
Factor |
Sensitivity |
Impact in impairment test | |||
— | ||||||
Discount rate |
bps | |||||
Foreign exchange rate (US$/R$) – rate applied to translate cash flows generated in foreign currency (R$) to the functional currency (US$) |
R$ |
Key assumption |
Factor |
Sensitivity |
Impact in impairment test | |||
— | % |
|||||
Discount rate |
% |
bps | ||||
Foreign exchange rate (US$/R$) – rate applied to translate cash flows generated in foreign currency (R$) to the functional currency (US$) |
R$ |
% |
Key assumption |
Factor |
Sensitivity |
Impact in impairment test | |||
|
— | % |
| |||
Discount rate |
% |
bps | ||||
Foreign exchange rate (US$/R$) – rate applied to translate cash flows generated in foreign currency (R$) to the functional currency (US$) |
R$ |
% |
• |
Impairment tests as of December 31, 2021 were prepared based on value-in-use value-in-use |
• |
The Company revised the identification of its CGUs for the fiscal year ended on December 31, 2021 and did not identified changes as compared to the structure observed on December 31, 2020, The reclassification of certain assets to held for sale in 2021 did not impact the identification and current structure of CGUs. |
• |
Estimated future cash flows were discounted using the weighted average capital cost rate, which is reconciled to an estimate discount pre-tax rate of |
• |
Part of the estimated future cash flows were budgeted in Brazilian Reais and converted into Company’s functional currency (US$) based on observable conversion rates on December 31, 2021 of R$ |
19 |
Trade accounts payable |
12.31.2021 |
12.31.2020 |
|||||||
Foreign suppliers |
||||||||
Domestic suppliers |
||||||||
Risk partners (i) |
||||||||
|
|
|
|
|||||
|
|
|
|
(i) | The Company’s risk-sharing suppliers/partners develop and produce significant aircraft components, including engines, hydraulic components, avionics, wings, tail sections, interior components, and fuselage parts. Certain contracts between the Company and these risk-sharing suppliers/partners are long-term and include deferral of payments for components and systems for a negotiated term after delivery. Once the risk-sharing suppliers/partners have been selected and the aircraft development and production program has commenced, changing suppliers is more challenging. For example, in the case of engines, the aircraft is specially designed to accommodate a given component, which cannot be easily replaced by another supplier without incurring delays and significant additional expense. This dependence makes the Company vulnerable to the performance, quality and financial position of its risk-sharing suppliers/partners. |
20 |
Trade accounts payable – Supplier finance arrangements |
21 |
Loans and financing |
Contractual |
Effective |
|||||||||||||||||
Currency |
interest rate - % |
interest rate - % |
Maturity |
12.31.2021 |
12.31.2020 |
|||||||||||||
Other currencies: |
|
|||||||||||||||||
Guaranteed Notes |
US$ | to p.a. |
to p.a. |
|
(i) | |||||||||||||
|
to p.a. |
to p.a. |
|
|||||||||||||||
Working capital |
Libor 1M + p.a. |
p.a. |
|
(ii) | ||||||||||||||
US$ | Libor 3M + p.a. |
p.a. |
|
— | ||||||||||||||
|
— | |||||||||||||||||
Libor 6M + p.a. |
p.a. |
|
||||||||||||||||
Euro | Euribor 12 M + p.a. to p.a. |
Euribor 12 M + p.a. to p.a. |
|
|||||||||||||||
Export financing |
US$ | Libor 3 M and 6 M + p.a. to p.a. |
Libor 3 M and 6 M + p.a. |
|
(ii) | |||||||||||||
Property. plant and equipment |
US$ | SIFMA Libor 1M + % p.a. |
2.44% p.a. |
|
||||||||||||||
|
|
|
|
|
||||||||||||||
|
||||||||||||||||||
|
|
|
|
|||||||||||||||
In local currency: |
|
|||||||||||||||||
Working capital |
CDI + p.a. |
p.a. |
|
— | ||||||||||||||
R$ | p.a. |
|
— | |||||||||||||||
IPCA + p.a. p.a. |
IPCA + p.a. p.a. |
|
— | |||||||||||||||
R$ | CDI + % p.a. |
p.a. |
|
— | ||||||||||||||
Project development |
% p.a. |
p.a. |
|
|||||||||||||||
R$ | IPCA + % p.a. |
p.a. |
|
|||||||||||||||
Guaranteed Notes |
IPCA + % p.a. |
p.a. |
|
|||||||||||||||
Export financing |
CDI + % p.a. |
p.a. |
|
— | ||||||||||||||
|
|
|
|
|
||||||||||||||
|
||||||||||||||||||
|
|
|
|
|
||||||||||||||
Total |
|
|||||||||||||||||
|
|
|
|
|
||||||||||||||
Current portion |
|
|||||||||||||||||
Non-current portion |
|
(i) | Issuance of Bonds: |
(ii) | In 2020, the Company finalized the terms of working capital and export financing agreements in an aggregate principal amount of up to US$ Development ( Banco Nacional de Desenvolvimento Econômico e Social |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Opening balance |
||||||||||||
Principal addition |
||||||||||||
Interest addition |
||||||||||||
Principal payment |
( |
) | ( |
) | ( |
) | ||||||
Interest payment |
( |
) | ( |
) | ( |
) | ||||||
Foreign exchange |
( |
) | ( |
) | ||||||||
Liabilities held for sale |
( |
) | ||||||||||
Business Combination |
— | |||||||||||
Transfer |
( |
) | — | |||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Opening balance |
||||||||||||
|
|
|
|
|
|
|||||||
Additions |
||||||||||||
Additions - business combination |
— | — | ||||||||||
Disposals |
( |
) | ( |
) | ( |
) | ||||||
Interest expense |
||||||||||||
Payments |
( |
) | ( |
) | ( |
) | ||||||
Assets and liabilities held for sale |
— | ( |
) | |||||||||
Translation adjustments |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Current portion |
||||||||||||
Non-current portion |
Year |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter 2025 |
||||
|
|
|||
|
|
22 |
Other payables |
12.31.2021 |
12.31.2020 |
|||||||
Provisions related to payroll (i) |
||||||||
Other accounts payable (ii) |
||||||||
Provision for employee profit sharing | ||||||||
Mutual with jointly controlled operation |
||||||||
Long-term incentive (iii) |
||||||||
Commission payable |
||||||||
Non-controlling purchase options (iv) |
||||||||
Contractual obligations (v) |
||||||||
Recourse and non-recourse debt |
||||||||
Insurance |
||||||||
Brazilian air force |
||||||||
Accounts payable of acquisitions (deferred consideration) |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Current portion |
||||||||
Non-current portion |
(i) |
Refers to personnel obligations and their respective charges recorded in the financial statements. |
(ii) | Represents a provision for expenses already incurred as of the date of the consolidated financial statements and for which payments are made during the following month. |
(iii) | Refers to the share-based payment program granted to certain employees of the Company in the form of phantom shares as described in Note 29. |
(iv) | As part of the acquisition of control of Tempest Serviços de Informática S.A. and its subsidiaries, which was concluded in 2020, the Company received call options and granted put options to non-controlling shareholders in symmetrical and exercisable terms after the lock-up period at fair value for the purposes of the purchase and sale of non-controlling interest by Embraer or other Embraer subsidiaries at this time. The Company recorded this derivative financial instrument as a reduction of shareholders’ equity held by controlling shareholders, taking the risks and benefits of minority interests that continue to be held by non-controlling shareholders. |
(v) | Represents amounts recorded regarding contractual obligations assumed by the Company in contracts with customers mainly related to commercial concessions and costs to obtain contracts. |
23 |
Taxes and payroll charges payable |
12.31.2021 |
12.31.2020 |
|||||||
INSS (social security contribution) (i) |
||||||||
IRRF (withholding tax) |
||||||||
PIS and COFINS (ii) |
||||||||
IPI (manufacturing tax) |
||||||||
FGTS (government employee severance indemnity fund) |
||||||||
Others |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Current portion |
||||||||
Non-current portion |
(i) | Corresponds substantially to: |
• | Since February 2009, the Company filed a suit contesting the payment of social security on paid notice of dismissal and other indemnity payments. In October 2015 the Company obtained partial success in the dispute in relation to the employer’s portion of the Social Security on the paid notice, and therefore reduced the amount of the provision by US$ |
• | As highlight of 2021, the Company received favorable outcome in the discussion to guarantee the right to not collect social security contributions according to the system established by Law 13,670 / 2018 in 2018 (maintenance of the Social Security Contribution on Gross Revenue - CPRB until 12/31/2018). The amount involved in the discussion until March 2021 was US$ on May 2021 , reducing the exposure in the amount of US$ |
(ii) | Refers to: |
• | Contributions to the PIS/PASEP fund (Social Integration Program / Public Servant Fund). The dispute, involving the calculation base for the non-cumulative system, was included under the terms of Law 11,941/09, and the suit was withdrawn. The Company continues to contest criteria for application of the benefits of refinancing in the ambit of the legal dispute. |
24 |
Income taxes |
12.31.2021 |
12.31.2020 |
|||||||
Temporarily non-deductible provisions (i) |
||||||||
Tax loss carryforwards |
||||||||
Functional currency effect of the non-monetary assets |
( |
) | ( |
) | ||||
Gains not realized from sales of the Company to subsidiaries |
||||||||
Effect of differences by fixed asset |
( |
) | ||||||
Differences between basis: account x tax |
( |
) | ( |
) | ||||
Assets and liabilities held for sale |
( |
) | ||||||
|
|
|
|
|||||
Deferred tax assets (liabilities), net |
( |
) |
( |
) | ||||
|
|
|
|
|||||
Total deferred tax asset |
||||||||
Total deferred tax liability |
( |
) | ( |
) |
(i) | Temporary differences include accounting provisions, foreign exchange rate gains or losses included in income tax calculation when cash settled and other differences which will be included or excluded in income tax calculation when realized for fiscal purposes. |
From the statement of income |
Other comprehensive income |
Total |
||||||||||
At December 31, 2018 |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Temporarily non-deductible provisions |
— | |||||||||||
Tax loss carryforwards |
— | |||||||||||
Functional currency effect of the non-monetary assets |
— | |||||||||||
Provision Gain not realized at sales from Controlling company to subsidiaries |
— | |||||||||||
Effect of differences by fixed asset |
( |
) | — | ( |
) | |||||||
Differences between basis: account x tax |
( |
) | ( |
) | ( |
) | ||||||
Discontinued operation |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
At December 31, 2019 |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Temporarily non-deductible provisions |
— | |||||||||||
Tax loss carryforwards |
— | |||||||||||
Functional currency effect of the non-monetary assets |
( |
) | — | ( |
) | |||||||
Gains not realized from sales of Parent Company to subsidiaries |
( |
) | — | ( |
) | |||||||
Effect of differences by fixed asset |
— | |||||||||||
Differences between basis: account x tax |
||||||||||||
|
|
|
|
|
|
|||||||
At December 31, 2020 |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Temporarily non-deductible provisions |
— | |||||||||||
Tax loss carryforwards |
— | |||||||||||
Functional currency effect of the non-monetary assets |
( |
) | — | ( |
) | |||||||
Gains not realized from sales of Parent Company to subsidiaries |
— | |||||||||||
Effect of differences by fixed asset |
( |
) | — | ( |
) | |||||||
Differences between basis: account x tax |
( |
) | ( |
) | ||||||||
Discontinued operation |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
At December 31, 2021 |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Loss before income tax |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Income tax and social contribution at the nominal Brazilian enacted tax rate - |
( |
) |
||||||||||
|
|
|
|
|
|
|||||||
Tax on profits of overseas subsidiaries |
( |
) | ( |
) | ( |
) | ||||||
Transfer Pricing and Thin Capitalization |
( |
) | ( |
) | ||||||||
Functional currency effect of the non-monetary assets |
( |
) | ( |
) | ||||||||
Research and development tax incentives |
||||||||||||
Equity in the earnings of subsidiaries |
||||||||||||
Fiscal credits (recognized and non recognized) |
( |
) | ( |
) | ( |
) | ||||||
Tax rate difference |
||||||||||||
Other differences between accounting and fiscal basis (i) |
( |
) | ||||||||||
Effects of Dropdown (ii) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
( |
) |
( |
) |
( |
) | |||||||
|
|
|
|
|
|
|||||||
Income tax and social contribution income (expense) benefit as reported |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Current income tax and social contribution expense as reported |
( |
) | ( |
) | ||||||||
Deferred income tax and social contribution income (expense) benefit as reported |
( |
) | ( |
) | ( |
) |
(i) | Other differences between accounting and fiscal basis mainly refer to: permanent additions and exclusions, realization of foreign exchange gain or loss and differences between accounting basis and fiscal treatments in the income tax calculation (depreciation of fixed assets, provision for inventory losses, among others). |
(ii) | Effects of Dropdown include tax impacts of the internal carve-out process concluded as of January 1, 2020, in relation to provisions transferred as part of the capital contribution by Embraer to Yaborã and added in the taxable income for the period according to the Brazilian tax rules. |
25 |
Financial guarantees and residual value guarantees |
|
12.31.2021 |
12.31.2020 |
|||||||
Financial guarantee of residual value |
||||||||
Accounts payable (i) |
||||||||
Financial guarantee |
||||||||
Additional provision (ii) |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Current portion |
||||||||
Non-current portion |
(i) | Accounts payable of residual value guarantees negotiated and settled with certain counterparties. |
(ii) | Additional provision recorded as a result of losses incurred by the Company with claims of financial guarantees by creditors of certain customers that defaulted in 2020, which was settled by the Company during 2021, as disclosed on the changes schedule below. |
Financial guarantee |
Financial guarantee of residual value |
Accounts payable |
Additional provision |
Total |
||||||||||||||||
At December 31, 2018 |
— |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest Additions |
— | — | — | |||||||||||||||||
Cash settlements |
— | — | ( |
) | — | ( |
) | |||||||||||||
Market value |
— | — | — | |||||||||||||||||
Guarantee amortization |
( |
) | — | — | — | ( |
) | |||||||||||||
Liabilities held for sale |
( |
) | ( |
) | — | — | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
At December 31, 2019 |
— |
— |
— |
— |
— |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest Additions |
— | — | ||||||||||||||||||
Cash settlements |
— | — | — | ( |
) | ( |
) | |||||||||||||
Reclassifications |
— | ( |
) | — | — | |||||||||||||||
Market value |
— | ( |
) | — | — | ( |
) | |||||||||||||
Guarantee amortization |
( |
) | — | — | — | ( |
) | |||||||||||||
Liabilities held for sale |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
At December 31, 2020 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Additions |
— | — | — | |||||||||||||||||
Cash settlements |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||
Reversals |
( |
) | ( |
) | — | — | ( |
) | ||||||||||||
Reclassifications |
— | ( |
) | — | — | |||||||||||||||
Market value |
— | ( |
) | — | ( |
) | ||||||||||||||
Guarantee amortization |
( |
) | — | — | — | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
At December 31, 2021 |
— |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
26 |
Provisions and contingent liabilities |
12.31.2021 |
12.31.2020 |
|||||||
Product warranties (i) |
||||||||
Provisions for labor, taxes and civil (ii) |
||||||||
Taxes (iii) |
||||||||
Post retirement benefits |
||||||||
Environmental provision |
||||||||
Others |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Current portion |
||||||||
Non-current portion |
(i) | Recorded to cover product-related expenditure, including warranties and contractual obligations to implement improvements to aircraft delivered in order to meet performance targets. |
(ii) | Provisions for labor, tax or civil contingencies, as shown in the table below Note 26.1.1. |
(iii) | Accrual of tax provisions mainly relates to indirect taxes recognized in relation to revenue recognition of long-term contracts. |
Product warranties |
Provisions labor, taxes and civil |
Post retirement benefits |
Taxes |
Environment provision |
Others |
Total |
||||||||||||||||||||||
At December 31, 2018 |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Additions |
||||||||||||||||||||||||||||
Interest |
||||||||||||||||||||||||||||
Used/payments |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Reversals |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Translation adjustments |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Reclassification - Liabilities held for sale |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At December 31, 2019 |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Additions |
||||||||||||||||||||||||||||
Interest |
||||||||||||||||||||||||||||
Used/payments |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Reversals |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Translation adjustments |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Reclassification - Liabilities held for sale |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At December 31, 2020 |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Additions |
||||||||||||||||||||||||||||
Interest |
||||||||||||||||||||||||||||
Used/payments |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Reversals |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Translation adjustments |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At December 31, 2021 |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.2021 |
12.31.2020 |
|||||||
Tax related |
||||||||
IRPJ (i) |
||||||||
PIS and COFINS |
||||||||
Social security contributions (ii) |
||||||||
Import taxes (iii) |
||||||||
Others |
||||||||
|
|
|
|
|||||
Labor related |
||||||||
Plurimas 461/1379 (iv) |
||||||||
Reintegration (v) |
||||||||
Overtime (vi) |
||||||||
Dangerousness (vii) |
||||||||
Indemnity (viii) |
||||||||
Third parties |
||||||||
Others |
||||||||
|
|
|
|
|||||
Civil related |
||||||||
Indemnity (ix) |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
|
|
|
|
|||||
Current portion |
||||||||
Non-current portion |
(i) | The Company has obtained an injunction to suspend collection of withholding tax related to values transferred overseas. The related legal demand is pending completion. |
(ii) | During 2002, the Company was notified by the authorities for failing to withhold social security contributions from service providers, being two notifications already closed and the remaining pending completion. In 2021, there was an addition of provision related to a process of social security related to one of the Company’s subsidiaries in the amount of US$ |
(iii) | Deficiency and Penalty Notices issued against the Company involving the drawback regime, disputing possible differences in relation to the tax classification of certain products and is at the analysis stage in the Federal Supreme Court - STJ ( Supremo Tribunal de Justiça |
(iv) | Refers to claims for backdated salary increases and productivity payments, brought by former employees. |
(v) | Suits brought by former employees claiming reinstatement with the Company for various reasons. |
(vi) | Requests for payment of alleged differences in relation to overtime. |
(vii) | Requests that seek recognition of hazardous activity. |
(viii) | Indemnity claims in connection with alleged work-related accidents, pain and suffering, etc. |
(ix) | Other indemnity claims brought by parties that had some type of legal relationship with the Company. |
(i) | The Company has a legal dispute over AIIM on SAT / Agentes Nocivos |
(ii) | The Company has a dispute about the transfer price calculation from the year 2009 in the amount of US$ |
(iii) | The Company is involved in a legal dispute related to tax credits paid by its subsidiaries abroad amounting to US$ |
(iv) | The Company has a dispute on the 2007 Tax Assessment Notice regarding the validity of the provisions contained in the Normative Instruction No. 213/02, which determined the taxation of profits from abroad through the application of Brazilian rules. The dispute involves transfer pricing in loans between associates, equity method, among others. On September 1, 2010, decadence had been accepted to exclude the requirements of the first three quarters of 2002, and it was determined to carry out diligence to collect information requested by the National Treasury Attorney ( Procuradoria da Fazenda Nacional |
(v) | The Company has a discussion on the disallowance of credits launched in several PERDCOMPs (electronic request for reimbursement or refund and tax offset statement program in Brazil) in the amount of US$ |
(vi) | Other tax lawsuits in the amount of US$ Supremo Tribunal Federal |
(vii) | The Company has contingent liabilities amounting to US$ |
27 |
Financial instruments |
12.31.2021 |
||||||||||||||||||||
Note |
Amortized cost |
Fair value through other comprehensive income |
Fair value through profit or loss |
Total |
||||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
5 | — | ||||||||||||||||||
Financial investments |
6 | |||||||||||||||||||
Guarantee Deposits |
— | — | ||||||||||||||||||
Contract assets |
31 | — | — | |||||||||||||||||
Trade accounts receivable, net |
7 | — | — | |||||||||||||||||
Customer and commercial financing |
9 | — | — | |||||||||||||||||
Derivative financial instruments |
8 | — | — | |||||||||||||||||
Other Assets |
11 | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Liabilities |
||||||||||||||||||||
Loans and financing |
21 | — | — | |||||||||||||||||
Trade accounts payable and other liabilities |
— | |||||||||||||||||||
Lease Liability |
— | — | ||||||||||||||||||
Financial guarantee and r e sidual value |
25 | — | — | |||||||||||||||||
Derivative financial instruments |
8 | — | — | |||||||||||||||||
Other liabilities |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
12.31.2020 |
||||||||||||||||||||
Note |
Amortized cost |
Fair value through other comprehensive income |
Fair value through profit or loss |
Total |
||||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
5 | — | — | |||||||||||||||||
Financial investments |
6 | |||||||||||||||||||
Guarantee Deposits |
— | — | ||||||||||||||||||
Collateralized accounts receivable |
— | — | ||||||||||||||||||
Contract assets |
31 | — | — | |||||||||||||||||
Trade accounts receivable, net |
7 | — | — | |||||||||||||||||
Customer and commercial financing |
9 | — | — | |||||||||||||||||
Derivative financial instruments |
8 | — | — | |||||||||||||||||
Other Assets |
11 | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Liabilities |
||||||||||||||||||||
Loans and financing |
21 | — | — | |||||||||||||||||
Trade accounts payable and other liabilities |
— | |||||||||||||||||||
Lease liability |
— | — | ||||||||||||||||||
Financial guarantee and of residual value |
25 | — | ||||||||||||||||||
Derivative financial instruments |
8 | — | — | |||||||||||||||||
Other liabilities |
— | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
• | Level 1 |
• | Level 2 non-exchange traded derivatives such as swaps or over-the-counter |
• | Level 3 |
12.31.2021 |
||||||||||||||||||||||||||||
Note | Level 2 |
Level 3 |
Total |
Fair value of the other financial instruments |
Fair value |
Book value |
||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Cash and cash equivalents |
5 | — | ||||||||||||||||||||||||||
Financial investments |
6 | |||||||||||||||||||||||||||
Guarantee Deposits |
— | — | — | |||||||||||||||||||||||||
Contract assets |
31 | — | — | — | ||||||||||||||||||||||||
Trade accounts receivable, net |
7 | — | — | — | ||||||||||||||||||||||||
Customer and commercial financing |
9 | — | — | — | ||||||||||||||||||||||||
Derivative financial instruments |
8 | — | — | |||||||||||||||||||||||||
Other Assets |
11 | — | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Loans and financing |
21 | — | — | — | ||||||||||||||||||||||||
Trade accounts payable and other liabilities |
— | |||||||||||||||||||||||||||
Lease Liability |
— | — | — | |||||||||||||||||||||||||
Financial guarantee and of residual value |
25 | — | — | — | ||||||||||||||||||||||||
Derivative financial instruments |
8 | — | — | |||||||||||||||||||||||||
Other liabilities |
— | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
12.31.2020 |
||||||||||||||||||||||||||||
Note | Level 2 |
Level 3 |
Total |
Fair value of the other financial instruments |
Fair value |
Book value |
||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Cash and cash equivalents |
5 | — | — | — | ||||||||||||||||||||||||
Financial investments |
6 | |||||||||||||||||||||||||||
Guarantee Deposits |
— | — | — | |||||||||||||||||||||||||
Collateralized accounts receivable |
— | — | — | |||||||||||||||||||||||||
Contract assets |
31 | — | — | — | ||||||||||||||||||||||||
Trade accounts receivable, net |
7 | — | — | — | ||||||||||||||||||||||||
Customer and commercial financing |
9 | — | — | — | ||||||||||||||||||||||||
Derivative financial instruments |
8 | — | — | |||||||||||||||||||||||||
Other assets |
11 | — | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||
Loans and financing |
21 | — | — | — | ||||||||||||||||||||||||
Trade accounts payable and other liabilities |
— | |||||||||||||||||||||||||||
Lease Liability |
— | — | — | |||||||||||||||||||||||||
Financial guarantee and of residual value |
25 | — | ||||||||||||||||||||||||||
Derivative financial instruments |
8 | — | — | |||||||||||||||||||||||||
Other liabilities |
— | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of financial instruments using significant unobservable inputs (level 3) |
||||||||
Assets |
Liabilities |
|||||||
At 12.31.2019 |
||||||||
|
|
|
|
|||||
Adding Shares |
— |
|||||||
Changes in fair value |
( |
) | ( |
) | ||||
Exchange variation |
( |
) | — | |||||
Reclassification |
— | ( |
) | |||||
Reclassification from held for sale |
— | |||||||
|
|
|
|
|||||
At 12.31.2020 |
||||||||
|
|
|
|
|||||
Reversal |
— | ( |
) | |||||
Transfer |
— | ( |
) | |||||
Changes in fair value |
( |
) | ||||||
Exchange variation |
( |
) | ||||||
|
|
|
|
|||||
At 12.31.2021 |
||||||||
|
|
|
|
• |
Cash and cash equivalents and financial investments |
• |
Trade accounts receivable, contract assets with customers and customer and commercial financing |
• | Other financial assets |
Cash Flow |
Less than one year |
One to three years |
Three to five years |
More than five years |
||||||||||||||||
At December 31, 2021 |
||||||||||||||||||||
Loans and financing |
||||||||||||||||||||
Trade accounts payable |
— | — | — | |||||||||||||||||
Trade accounts payable - Supplier finance |
— | — | — | |||||||||||||||||
Financial guarantees |
— | — | ||||||||||||||||||
Lease Liability |
||||||||||||||||||||
Other liabilities |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
At December 31, 2020 |
||||||||||||||||||||
Loans and financing |
||||||||||||||||||||
Trade accounts payable |
— | — | — | |||||||||||||||||
Financial guarantees |
||||||||||||||||||||
Lease Liability |
||||||||||||||||||||
Other liabilities |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
• | Cash, cash equivalents and financial investments – the Company’s policy for managing the risk of fluctuations in interest rates on financial investments is to maintain a system to measure market risk, which consists of an aggregate analysis of variety of risk factors that might affect the return of those investments. |
• | Loans and financing – the Company monitors financial markets with the purpose of evaluate hedge structures (derivative transactions) in compliance with the financial and risk management policy to protect its exposure risks of volatility in foreign currency and interest rates. |
Without derivative effect |
Fixed interest rate |
Variable interest rate |
Total |
|||||||||||||||||||||
Amount |
% |
Amount |
% |
Amount |
% |
|||||||||||||||||||
Cash, cash equivalents and financial investments |
% | % | % | |||||||||||||||||||||
Loans and financing |
% | % | % | |||||||||||||||||||||
With derivative effect |
Fixed interest rate |
Variable interest rate |
Total |
|||||||||||||||||||||
Amount |
% |
Amount |
% |
Amount |
% |
|||||||||||||||||||
Cash, cash equivalents and financial investments |
% | % | % | |||||||||||||||||||||
Loans and financing |
% | % | % |
Without derivative effect |
With derivative effect |
|||||||||||||||
Amount |
% |
Amount |
% |
|||||||||||||
Cash equivalents and financial investments |
% | % | ||||||||||||||
CDI |
% | % | ||||||||||||||
Loans and financing |
% | % | ||||||||||||||
TJLP |
% | % | ||||||||||||||
Libor |
% | % | ||||||||||||||
CDI |
% | % | ||||||||||||||
SIFMA |
% | % | ||||||||||||||
IPCA |
% | % | ||||||||||||||
EURIBOR |
% | % |
12.31.2021 |
12.31.2020 |
|||||||
Loans and financing |
||||||||
Brazilian reais |
||||||||
U.S. dollars |
||||||||
Euro |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Trade accounts payable |
||||||||
Brazilian reais |
||||||||
U.S. dollars |
||||||||
Euro |
||||||||
Other currencies |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Trade accounts payable - Supplier finance |
||||||||
Brazilian reais |
— | |||||||
U.S. dollars |
— | |||||||
|
|
|
|
|||||
— | ||||||||
|
|
|
|
|||||
Total (1) | ||||||||
|
|
|
|
|||||
Cash and cash equivalents and financial investments |
||||||||
Brazilian reais |
||||||||
U.S. dollars |
||||||||
Euro |
||||||||
Other currencies |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
Trade accounts receivable: |
||||||||
Brazilian reais |
||||||||
U.S. dollars |
||||||||
Euro |
||||||||
Other currencies |
— | |||||||
|
|
|
|
|||||
|
|
|
|
|||||
Total (2) |
||||||||
|
|
|
|
|||||
Net exposure (1 - 2): |
||||||||
Brazilian reais |
( |
) | ||||||
U.S. dollars |
||||||||
Euro |
( |
) | ||||||
Other currencies |
( |
) | ( |
) |
Additional variations in book balances (*) |
||||||||||||||||||||||||||
Risk factor |
Amounts exposed at 12.31.2021 |
-50% |
-25% |
Probable scenario |
+25% |
+50% |
||||||||||||||||||||
Cash equivalents and financial investments |
CDI | ( |
) | ( |
) | |||||||||||||||||||||
Loans and financing |
CDI | ( |
) | ( |
) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net impact |
CDI | ( |
) |
( |
) |
|||||||||||||||||||||
Loans and financing |
LIBOR | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net impact |
LIBOR | ( |
) |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||||
Loans and financing |
TJLP | ( |
) | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net impact |
TJLP | ( |
) |
— |
— |
— |
— |
— |
||||||||||||||||||
Loans and financing |
IPCA | ( |
) | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net impact |
IPCA | ( |
) |
— |
— |
— |
— |
— |
||||||||||||||||||
Rates considered |
CDI | % | % | % | % | % | % | |||||||||||||||||||
Rates considered |
LIBOR 6M | % | % | % | % | % | % | |||||||||||||||||||
Rates considered |
TJLP | % | % | % | % | % | % | |||||||||||||||||||
Rates considered |
IPCA | % | % | % | % | % | % | |||||||||||||||||||
(*) The positive and negative variations of |
|
Additional variations in book balances (*) |
||||||||||||||||||||||||||||
Risk factor |
Amounts exposed at 12.31.2021 |
-50% |
-25% |
Probable scenario |
+25% |
+50% |
||||||||||||||||||||||
Assets |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash, cash equivalents and financial investments |
R$ | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||
Other assets |
R$ | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||
Liabilities |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans and financing |
R$ | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||
Other liabilities |
R$ | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net impact |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||
Exchange rate considered |
||||||||||||||||||||||||||||
(*) The positive and negative variations of |
|
Additional variations in book balances (*) |
||||||||||||||||||||||||||
Risk factor |
Amounts exposed at 12.31.2021 |
-50% |
-25% |
Probable scenario |
+25% |
+50% |
||||||||||||||||||||
Derivative Designated as Hedge Accounting |
||||||||||||||||||||||||||
Interest swap - fair value hedge |
CDI | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||
Other derivatives |
||||||||||||||||||||||||||
Interest swap |
LIBOR | ( |
) | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Rate considered |
LIBOR | % | % | % | % | % | % | |||||||||||||||||||
Rate considered |
CDI | % | % | % | % | % | % |
(*) | The positive and negative variations of |
28 |
Shareholders’ equity |
USD |
Quantity |
Share value (USD) |
Net income of uses |
|||||||||||||
At the beginning of the year |
||||||||||||||||
Repurchase of shares in the period |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2021 |
||||||||||||||||
|
|
|
|
|
|
|
|
• | Cumulative translation adjustment: foreign exchange gains/losses resulting from translation of the foreign subsidiaries’ financial statements measured in other functional currencies to the Company’s functional currency (dollar); and |
• | Other comprehensive income: unrealized actuarial gains (losses) resulting from the healthcare plans sponsored by the Company, changes in fair value of financial instruments measured at FVOCI and changes in the fair value of the cash flows hedges structures (Note 8). |
29 |
Share-based compensation |
• |
restricted virtual shares: (i) |
• |
A change in the virtual performance share calculation was approved in August 2017. Virtual performance shares granted in 2015, 2016 and 2017 was paid in 2020, while those granted in 2018 was paid in 2021. The amounts payable will now be based on the internal cost reduction target and not on the Economic Value-Added indicator. |
Amount of virtual stock |
Grant value (i) |
Amount of virtual stock (ii) |
Fair value of shares (R$) (iii) |
Fair value of shares (US$) (iii) |
||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
At December 31, 2021 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Amount of virtual stock |
Grant value (i) |
Amount of virtual stock (ii) |
Fair value of shares (R$) (iii) |
Fair value of shares (US$) (iii) |
||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
Grants on |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
At December 31, 2020 |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(i) |
Refers to the estimated fair value of total virtual shares to be granted in each grant date. |
(ii) |
Outstanding virtual shares until December 31, 2021 and December 31, 2020 considering the plan’s vesting period and less the virtual shares already paid to the beneficiaries. |
(iii) |
Fair value of virtual shares as of December 31, 2021 and December 31, 2020 considering the plan’s vesting period and fair value of Embraer’s shares in the market on each date based on the plan’s requirements. |
30 |
Earnings per share |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Losses attributable to owners of Embraer |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
( |
) |
( |
) |
( |
) | |||||||
|
|
|
|
|
|
|||||||
Weighted average number of shares (in thousands) |
||||||||||||
Basic and diluted earnings per share - U.S. dollars |
( |
) | ( |
) | ( |
) |
31 |
Revenue from contracts with customers |
• |
Revenue by category at December 31, 2021: |
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Others |
Total |
|||||||||||||||||||
Aircraft |
||||||||||||||||||||||||
Long-term contracts |
||||||||||||||||||||||||
Others |
||||||||||||||||||||||||
Service |
||||||||||||||||||||||||
Spare Parts |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
North America |
Latin America |
Asia Pacific |
Brazil |
Europe |
Others |
Total |
||||||||||||||||||||||
Aircraft |
||||||||||||||||||||||||||||
Long-term contracts |
||||||||||||||||||||||||||||
Others |
||||||||||||||||||||||||||||
Service |
||||||||||||||||||||||||||||
Spare Parts |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
• | Revenue by category at December 31, 2020: |
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Other |
Total |
|||||||||||||||||||
Aircraft |
||||||||||||||||||||||||
Long-term contracts |
||||||||||||||||||||||||
Others |
||||||||||||||||||||||||
Service |
||||||||||||||||||||||||
Spare Parts |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
North America |
Latin America |
Asia Pacific |
Brazil |
Europe |
Other |
Total |
||||||||||||||||||||||
Aircraft |
||||||||||||||||||||||||||||
Long-term contracts |
||||||||||||||||||||||||||||
Others |
||||||||||||||||||||||||||||
Service |
||||||||||||||||||||||||||||
Spare Parts |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
• | Revenue by category at December 31, 2019: |
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Other |
Total |
|||||||||||||||||||
Aircraft |
||||||||||||||||||||||||
Long-term contracts |
||||||||||||||||||||||||
Others |
||||||||||||||||||||||||
Service |
||||||||||||||||||||||||
Spare Parts |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
North America |
Latin America |
Asia Pacific |
Brazil |
Europe |
Other |
Total |
||||||||||||||||||||||
Aircraft |
||||||||||||||||||||||||||||
Long-term contracts |
||||||||||||||||||||||||||||
Others |
||||||||||||||||||||||||||||
Service |
||||||||||||||||||||||||||||
Spare Parts |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.31.2021 |
12.31.2020 |
|||||||
Contract assets |
||||||||
Contract liabilities |
||||||||
|
|
|
|
|||||
Advances from customers - Aircraft and Defense long-term contracts |
||||||||
Deferred revenue - Parts and services |
32 |
Revenue (expenses) by type |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
As presented in the statements of income: |
||||||||||||
Revenue |
||||||||||||
Cost of sales and services |
( |
) | ( |
) | ( |
) | ||||||
Administrative |
( |
) | ( |
) | ( |
) | ||||||
Selling |
( |
) | ( |
) | ( |
) | ||||||
Expected credit loss (reversal) over financial assets and contract assets |
( |
) | ||||||||||
Research |
( |
) | ( |
) | ( |
) | ||||||
Other operating expense, net |
( |
) | ( |
) | ( |
) | ||||||
Equity in income of associates |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Operating profit before financial income |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Revenue (expenses) by nature: |
||||||||||||
Revenue from sales of goods |
||||||||||||
Revenue from sales of services |
||||||||||||
Sales deductions and tax on revenue (i) |
( |
) | ( |
) | ( |
) | ||||||
General manufacturing costs (ii) |
( |
) | ( |
) | ( |
) | ||||||
Depreciation |
( |
) | ( |
) | ( |
) | ||||||
Amortization |
( |
) | ( |
) | ( |
) | ||||||
Personnel expenses |
( |
) | ( |
) | ( |
) | ||||||
Selling expenses |
( |
) | ( |
) | ( |
) | ||||||
Equity in losses on associates |
( |
) | ||||||||||
Research |
( |
) | ( |
) | ( |
) | ||||||
Expected credit losses over financial assets and contract assets |
( |
) | ||||||||||
Services provided |
( |
) | ( |
) | ( |
) | ||||||
Other operating expenses, net (Note 33) |
( |
) | ( |
) | ( |
) | ||||||
Miscellaneous (iii) |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Operating profit before financial income |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
(i) | Refers to sales taxes and other deductions. |
(ii) | Refers to costs of materials and general manufacturing expenses. |
(iii) | Refers mainly to expenses with insurance, taxes and fees. |
33 |
Other operating expenses, net |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Corporate projects (i) |
( |
) | ( |
) | ( |
) | ||||||
Restructuring expenses (ii) |
( |
) | ( |
) | ||||||||
Taxes on other sales |
( |
) | ( |
) | ( |
) | ||||||
Expenses system project |
( |
) | ( |
) | ( |
) | ||||||
Residual value of fixed assets disposed |
( |
) | ||||||||||
Aircraft maintenance and flights costs -fleet |
( |
) | ( |
) | ( |
) | ||||||
Flight safety standards |
( |
) | ( |
) | ( |
) | ||||||
Product modification |
( |
) | ( |
) | ( |
) | ||||||
Training and development |
( |
) | ( |
) | ( |
) | ||||||
Depreciation and amortization -Commercial Aviation |
( |
) | ||||||||||
Costs with personnel (iii) |
( |
) | ||||||||||
Carve-Out Expenses (iv) |
( |
) | ( |
) | ||||||||
Additional losses with financial guarantees exercised |
( |
) | ||||||||||
Contractual fines |
( |
) | ( |
) | ( |
) | ||||||
Reversal of tax provisions |
||||||||||||
Recovery of expenses |
||||||||||||
Contractual fines revenue |
||||||||||||
Other sales |
||||||||||||
Impairment of assets (v) |
( |
) | ||||||||||
Royalties |
||||||||||||
Reversal (Provision) for contingencies (iv) |
( |
) | ( |
) | ||||||||
Fair value changes -Republic Airways shares |
( |
) | ||||||||||
Others |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
( |
) |
( |
) |
( |
) | |||||||
|
|
|
|
|
|
(i) | Corporate projects expenses mainly relate to disbursements with demands approved by Management associated with efficiency and restructuring of processes, IT, cyber security and legal demands. |
(ii) | Restructuring refers to (i) expenses incurred by the Company as part of the corporate restructuring project started in the current year (2021) and (ii) expenses incurred in 2020 by the Company as a result of the pandemic crisis, including the voluntary dismissal plans for specific group of employees in Brazil and reduction of work force. |
(iii) | Refer to costs with personnel incurred as a result of the impacts caused by the COVID-19 pandemic in 2020, including paid leave and expenses with temporary furloughs (lay-off). |
(iv) | Refer to separation costs incurred in the internal carve-out of assets and liabilities related to the Commercial Aviation and related services business units as part of the now terminated transaction with Boeing (as disclosed on Note 1.1.1 of the annual consolidated financial statements as of December 31, 2020). |
(v) | Impairment of assets mainly relates to (i) impairment loss of US$ Mid-Size / Super Mid-Size Platform (Note 18). |
(vi) | It mainly refers to reversal of previously booked tax obligation which the Company received favorable outcome during 2021 (Note 23(i)). |
34 |
Financial expenses, net |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Financial income: |
||||||||||||
Interest on cash and cash equivalents and financial investments |
||||||||||||
Interest on receivables |
||||||||||||
Residual value guarantee |
||||||||||||
Taxes over financial revenue |
( |
) | ( |
) | ( |
) | ||||||
Phantom shares (LTI) |
||||||||||||
Others |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total financial income |
||||||||||||
Financial expenses: |
||||||||||||
Interest on loans and financing |
( |
) | ( |
) | ( |
) | ||||||
IOF -(tax on financial transactions) |
( |
) | ( |
) | ( |
) | ||||||
Interest on taxes, social charges and contributions |
( |
) | ( |
) | ( |
) | ||||||
Residual value guarantee |
( |
) | ||||||||||
Financial restructuring costs |
( |
) | ||||||||||
Phantom shares (LTI) |
( |
) | ||||||||||
Others |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total financial expenses |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Derivative financial instruments |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Financial expenses, net |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
35 |
Foreign exchange gain (loss), net |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Monetary and foreign exchange variations |
||||||||||||
Assets: |
||||||||||||
Tax credits |
( |
) | ( |
) | ( |
) | ||||||
Trade accounts receivable and contract assets |
( |
) | ( |
) | ( |
) | ||||||
Cash and cash equivalents and financial investments |
( |
) | ( |
) | ||||||||
Other |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
( |
) |
( |
) |
( |
) | |||||||
|
|
|
|
|
|
|||||||
Liabilities: |
||||||||||||
Loans and financing |
||||||||||||
Advances from customers |
( |
) | ( |
) | ||||||||
Provisions |
||||||||||||
Taxes and charges payable |
||||||||||||
Deferred income tax and social contribution |
||||||||||||
Other payables |
( |
) | ( |
) | ||||||||
Suppliers |
( |
) | ||||||||||
Provisions for contingencies |
||||||||||||
Other |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Net monetary and foreign exchange variations |
( |
) |
||||||||||
|
|
|
|
|
|
|||||||
Derivative financial instruments |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Foreign exchange gain (loss), net |
( |
) |
||||||||||
|
|
|
|
|
|
36 |
Responsibilities and commitments |
37 |
Supplemental cash flow information |
12.31.2021 |
12.31.2020 |
12.31.2019 |
||||||||||
Payments made during the period: |
||||||||||||
Income tax and social contribution |
||||||||||||
Interest |
||||||||||||
Non-cash financing and investing transactions |
— |
|||||||||||
Acquisition of inventories through assumption of financing |
— | — | ||||||||||
Write off on Property, plant and equipment by transfer to pool parts inventory |
( |
) | ( |
) | ( |
) | ||||||
Property, plant and equipment, transfer for providing for the sale of inventory |
— | ( |
) | ( |
) | |||||||
Non-controlling purchase options |
— | — |
38 |
Segment information |
• |
ERJ 145 family, comprising the ERJ 135, ERJ 140 and ERJ 145 jets, certified to operate with 37, 44 and 50 seats, respectively. |
• |
EMBRAER 170/190 family, comprising the EMBRAER 170, a 70-seat jet, EMBRAER 175, a 76-seat jet, EMBRAER 190, a 100-seat jet and the EMBRAER 195, a 108-seat jet. The EMBRAER 170 model has been operating commercially since 2004, the EMBRAER 175 and EMBRAER 190 models started commercial operations in 2006, and the EMBRAER 195 model in 2007. |
• |
E-Jets E2, the second generation of the E-Jets family of commercial aircraft, consists of three new aircraft - E175-E2 with capacity of up to 88 seats, E190-E2 with up to 106 seats and E195-E2, with up to 132 seats in a typical single-class configuration. The E190-E2 started commercial operations in the first half of 2018. First production E195-E2 was delivered in September 2019 and the E175-E2 will entry into service between 2027 and 2028. |
• |
Light Attack and Advanced Training Aircraft (Super Tucano) - the Super Tucano is a military turboprop that combines training and operational capacities with low acquisition and operating costs. The Super Tucano has the operational capacities for frontier surveillance, proximity aerial support and counter insurgence missions (COIN). |
• | Aircraft Modernization - The Company offers aircraft upgrade services and currently operates four contracted programs. The first, known as F-5BR, is focused on the structural and electronic upgrading of the Brazilian Air Force’s F-5 jet. The second, A-1M, concerns upgrading of the AMX, an advanced ground attack jet, for the Brazilian Air Force. The third program, contracted by the Brazilian Navy, is for the revitalization and incorporation of new technologies to the A-4 Skyhawk aircraft (denominated AF-1 by the customer). In the fourth program, with the Brazilian Air Force, the Company was contracted to upgrade the EMB 145 AEW&C aircraft. |
• | The ISR family (Intelligence, Surveillance and Reconnaissance) - Originally developed to serve the SIVAM program, based on the ERJ 145 platform, versions have been ordered by the Greek, Mexican and Indian governments. A new solution is currently being studied based on the Praetor 600 platform for missions AEW&C – Anticipated Aerial Alert and Control. |
• | C-390 Millennium is a joint project between the Brazilian Air Force and Embraer to develop and produce tactical military transportation and aerial refueling and represents a significant advance in terms of technology and innovation for the airspace industry. The aircraft is designed to establish new standards in its category, with lower operating costs and the flexibility to execute a variety of missions, including troop carriage and transportation, air delivery, aerial refueling, search and rescue and aerial firefighting and combat. |
• | Transportation of Authorities and Special Missions - Derived from the commercial and executive aircraft platforms, these are aircraft used to transport government authorities or to carry out special missions. |
• | Radars - solutions offered through Bradar, a technology-based industry specialized in developing and producing radars for Remote Sensing and Defense, include radar for anti-aircraft artillery, surveillance of terrestrial activity, military and civil air traffic control, a communications intelligence system and synthetic aperture radar for cartography and precision monitoring services. |
• | Software and Systems Development - combining the expertise of Atech - Negócios em Tecnologia S.A. and investments by Embraer in system development and integration, provides specialized engineering services for the development, installation, revitalization and maintenance of critical control, defense and monitoring systems, as well as the machinery and equipment required for the services. |
• | Frontier monitoring and protection of strategic structures - Based on its experience in systems integration, Embraer is dedicated to developing, designing, certifying, producing, integrating and implementing systems and services in the field of frontier monitoring and control and protection of critical infra-structures. |
• | Satellites - Visiona Tecnologia Espacial, a joint venture between Embraer and Telebrás, was hired by Telebrás to provide and integrate the Brazilian Geostationary Defense and Communications Satellite system (SGDC). Currently the Nano Satellite (VCUB) is being developed which will apply the software developed by Visiona for the satellites of the Brazilian Space Program and perform missions of observation of earth and data collect. Visiona also act as service provider of remote sensing through satellite images or airborne radars. |
• | Legacy 600 and Legacy 650 - executive jets in the super midsize and large categories, deliveries of which started in 2002 and 2010, respectively. |
• | Legacy 450 and Legacy 500- executive jets in the Midlight and Midsize categories, deliveries of which started in 2014 and 2015, respectively. |
• | Phenom family - executive jets in the Entry Jet and Light Jet categories, respectively. The first deliveries of the Phenom 100 were made in 2008, and deliveries of the Phenom 300 started in 2009. |
• | Lineage 1000 - an ultra-large executive jet. Deliveries of this model started in 2009. |
• | Praetor 500 and Praetor 600 - most disruptive executive jets in the Midsize and Super Midsize categories, introduced in Q4 2018 with deliveries starting in 2nd half 2019. |
• | Capture customer needs and develop integrated support and services solutions: To develop integrated and competitive support solutions, technical services, materials, or MRO activities that meet the needs and expectations of Embraer customers. |
• | Sell and administrate support and services solution: To sell integrated and competitive technical support, service solutions, materials, or MRO activities, and administer support and service contracts. |
• | Deliver Material Solutions: To provide parts to customers, by direct sale or availability through special programs, manage component repair, provide inventory management services and advice on inventory formation. |
• | Deliver Technical Solutions: To provide technical, operational and maintenance support to customers fleets with services such as providing training for pilots and commissioners, aircraft modification and enhancement projects, review of technical, operational and maintenance publications, and sustaining digital solutions. |
• | Deliver MRO Solutions: To provide maintenance services for aircraft, engines and landing gear (scheduled and unscheduled), aircraft modernization and component repair. |
• | Monitor and ensure operational excellence and customer relationship excellence: |
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Others |
Total reportable Segments |
Unallocated |
Total |
|||||||||||||||||||||||||
Revenue |
— | |||||||||||||||||||||||||||||||
Cost of sales and services |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||
Gross profit |
( |
) |
— |
|||||||||||||||||||||||||||||
Gross profit % |
% | % | % | % | - |
% | % | % | ||||||||||||||||||||||||
Operating income (expense) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Operating profit before financial income (expense) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Financial income (expense), net |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Foreign exchange loss, net |
||||||||||||||||||||||||||||||||
Loss before taxes on income |
||||||||||||||||||||||||||||||||
Income tax expense |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Loss for the period |
( |
) | ||||||||||||||||||||||||||||||
|
|
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Others |
Total |
|||||||||||||||||||
North America |
||||||||||||||||||||||||
Europe |
— | |||||||||||||||||||||||
Asia Pacific |
— | |||||||||||||||||||||||
Latin America, except Brazil |
— | |||||||||||||||||||||||
Brazil |
||||||||||||||||||||||||
Other |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Others |
Total reportable Segments |
Unallocated |
Total |
|||||||||||||||||||||||||
Trade accounts receivable |
— | — | ||||||||||||||||||||||||||||||
Property, plant and equipment |
— | |||||||||||||||||||||||||||||||
Intangible assets |
— | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
Europe |
Asia Pacific |
Brazil |
Total |
||||||||||||||||
Trade accounts receivable |
||||||||||||||||||||
Property, plant and equipment |
||||||||||||||||||||
Intangible assets |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Others |
Total reportable Segments |
Unallocated |
Total |
|||||||||||||||||||||||||
Revenue |
— | |||||||||||||||||||||||||||||||
Cost of sales and services |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||
Gross profit |
( |
) |
— |
|||||||||||||||||||||||||||||
Gross profit % |
% | % | % | % | - |
% | % | % | ||||||||||||||||||||||||
Operating income (expense) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Operating profit before financial income (expense) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||
Financial income (expense), net |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Foreign exchange gain (loss), net |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Loss before taxes on income |
( |
) | ||||||||||||||||||||||||||||||
Income tax benefit (expense) |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Loss for the period |
( |
) | ||||||||||||||||||||||||||||||
|
|
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Others |
Total |
|||||||||||||||||||
North America |
||||||||||||||||||||||||
Europe |
— | |||||||||||||||||||||||
Asia Pacific |
— | |||||||||||||||||||||||
Latin America, except Brazil |
— | |||||||||||||||||||||||
Brazil |
||||||||||||||||||||||||
Other |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Others |
Total reportable Segments |
Unallocated |
Total |
|||||||||||||||||||||||||
Trade accounts receivable |
— | |||||||||||||||||||||||||||||||
Property, plant and equipment |
— | — | ||||||||||||||||||||||||||||||
Intangible assets |
— | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
Europe |
Asia Pacific |
Brazil |
Total |
||||||||||||||||
Trade accounts receivable |
||||||||||||||||||||
Property, plant and equipment |
||||||||||||||||||||
Intangible assets |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Others |
Total reportable Segments |
Unallocated |
Total |
|||||||||||||||||||||||||
Revenue |
— | |||||||||||||||||||||||||||||||
Cost of sales and services |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||
Gross profit |
( |
) |
— |
|||||||||||||||||||||||||||||
Gross profit % |
% | % | % | % | - |
% | % | % | % | |||||||||||||||||||||||
Operating income (expense) |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||
Operating profit before financial income (expense) |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) |
— |
( |
) | |||||||||||||||||||
Financial income (expense), net |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Foreign exchange gain (loss), net |
||||||||||||||||||||||||||||||||
Profit before taxes on income |
( |
) | ||||||||||||||||||||||||||||||
Income tax expense |
( |
) | ( |
) | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Net income |
( |
) | ||||||||||||||||||||||||||||||
|
|
Commercial Aviation |
Defense and Security |
Executive Jets |
Service and Support |
Others |
Total |
|||||||||||||||||||
North America |
||||||||||||||||||||||||
Europe |
— | |||||||||||||||||||||||
Asia Pacific |
— | |||||||||||||||||||||||
Latin America, except Brazil |
— | |||||||||||||||||||||||
Brazil |
||||||||||||||||||||||||
Other |
— | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
39 |
Subsequent events |