Embraer Releases Second Quarter 2016 Results

SÃO PAULO, July 29, 2016 -- EMBRAER S.A. releases its second quarter 2016 results.

HIGHLIGHTS

In 2Q16, Embraer delivered 26 commercial and 26 executive (23 light and 3 large) jets;
The Company's firm order backlog ended the quarter at US$ 21.9 billion, compared to US$ 22.9 billion at the end of 2Q15 and $21.9 billion in backlog at the end of 1Q16;
Revenues in 2Q16 were US$ 1,366.4 million, representing a decline of 9.7% from the same period last year, principally due to lower deliveries in the Executive Jets segment;
Consolidated gross margin in 2Q16 reached 20.8%, up from the 18.9% registered in 2Q15;
In 2Q16, the Company booked a US$ 200 million loss contingency in Other operating income (expense), net related to the allegations of non-compliance with the U.S. Foreign Corrupt Practices Act (FCPA);
Adjusted EBIT and Adjusted EBIT margin in 2Q16, excluding the impact of the loss contingency, was US$ 72.6 million and 5.3%, respectively. Adjusted EBITDA and Adjusted EBITDA margin in the quarter, excluding this impact, was US$ 152.3 million and 11.1%, respectively;
2Q16 Net income (loss) attributable to Embraer Shareholders and Earnings per basic ADS totaled US$ (99.4) million and US$ (0.5448), respectively;
2Q16 Adjusted Net Income, which excludes non-cash deferred income taxes and social contribution largely related to foreign exchange variation on non-monetary assets, as well as the aforementioned loss contingency, was US$ 44.1 million. Adjusted earnings per basic ADS totaled US$ 0.2417 in 2Q16;
Embraer is revising its 2016 guidance to incorporate lower estimates for the Executive Jets segment. Please see pages 2 and 3 of this release for additional details.

Main financial indicators

in millions of U.S dollars, except % and earnings per share data
IFRS	(1)	(1)	(1)	(1)
IFRS	1Q16	2Q15	2Q16	YTD16
Revenue	1,309.0	1,513.2	1,366.4	2,675.4
EBIT	85.7	102.2	(127.4)	(41.7)
EBIT Margin %	6.5%	6.8%	-9.3%	-1.6%
Adjusted EBIT	85.7	102.2	72.6	158.3
Adjusted EBIT Margin	6.5%	6.8%	5.3%	5.9%
EBITDA	167.6	177.6	(47.7)	119.9
EBITDA Margin %	12.8%	11.7%	-3.5%	4.5%
Adjusted EBTIDA	167.6	177.6	152.3	319.9
Adjusted EBTIDA Margin	12.8%	11.7%	11.1%	12.0%
Adjusted Net Income (loss)	(1.7)	122.5	44.1	42.4
Net income (loss) attributable to Embraer Shareholders	103.9	129.3	(99.4)	4.5
Earnings (loss) per share - ADS basic (US$)	0.5690	0.7096	(0.5448)	0.0247
Net Cash (Debt)	(219.9)	(464.5)	(613.3)	(613.3)

For additional information, please check the full document in our website: http://ri.embraer.com.br

CONFERENCE CALL INFORMATION
Embraer will host a conference call to present its 2Q16 Results on Friday, July 29, 2016 at 10:30AM (SP) / 9:30AM (NY). The conference call will also be broadcast live over the web at http://ri.embraer.com.br

Telephones:
Operator Assisted (US/ Canada) Toll-Free Dial-In Number: (877) 846-1574
Operator Assisted International Dial-In Number: (708) 290-0687
Your own International Toll-Free number for Brazil: 0800 047 4803 (land line) and 0800 047 4801 (cell phone)
Code: 38288857

Headquarters (Brazil)
Saulo Passos
press@embraer.com.br
Cell: +55 11 94254 4017
Tel.: +55 11 3040 1799

North America
Alyssa Ten Eyck
aeyck@embraer.com
Cell: +1 954 383 0460
Tel.: +1 954 359 3847

Europe, Middle East and Africa
pressEMEA@embraer.fr
Cell: +55 11 94254 4017
Tel.: +55 11 3040 1799

China
Mirage Zhong
mirage.zhong@bjs.embraer.com
Cell: +86 185 1378 5180
Tel.: +86 10 6598 9988

Asia Pacific
Nilma Missir-Boissac
nilma.boissac@sin.embraer.com
Cell: +65 9012 8428
Tel.: +65 6305 9955

SOURCE EMBRAER S.A.

CONTACT: Investor Relations: Eduardo Couto, Caio Pinez, Christopher Thornsberry, Nádia Santos, Paulo Ferreira and Viviane Pinheiro.; (+55 12) 3927 1000; investor.relations@embraer.com.br; http://ri.embraer.com.br; Follow Embraer's IR Department on twitter: @IREmbraer