Embraer S.A.

Good morning, ladies and gentlemen. Thank you for waiting. Welcome to Embraer's teleconference for the presentation of the financial results for the first quarter of 2023. At this moment, all participants are watching this teleconference as listeners. We will soon provide instructions for the participation of the Q&A session. If there is a need for assistance, please use the Q&A button on the platform. It is important to mention that the information related to the results of the IVE will be discussed at the IVE conference. We also inform that all numbers are presented in US dollar, because it is the company's functional currency. In addition, the numbers of this presentation contain financial information, not GAP, to make it easier for investors to reconcile IVE's financial information in GAP standards with Embraer's IFRS rules. We also remind you that this conference is being recorded and transmitted by the website ri.embraer.com.br. This teleconference includes prospective statements or statements about events or circumstances that did not occur. Embraer based these prospective statements largely on its expectations and current projections about future events and financial trends that affect businesses and their future financial performance. These prospective statements are subject to risks, uncertainties and assumptions, including, among other things, economic, political and business general conditions in Brazil and in other markets where the company is present. The words believe, can, will, estimate, continue, anticipate, intend, wait and similar terms are intended to identify expectations. Embraer does not assume any obligation to update publicly or review any estimates as a result of new information, future events or other factors. In view of the risks and uncertainties inherent, such estimates, events and predictions about the future may not occur. The real results and the performance of Embraer may differ substantially from those previously published as expectations of the company. Participate today in this teleconference Francisco Gomes Neto, President and CEO. Antônio Carlos Garcia, Vice-President of Finance, and Leonardo Shinohara, Director of Relations with Investors. At this moment, we pass the floor to Mr. Francisco, who will begin the presentation of the company's results. Please, Francisco, you may proceed.

Good morning and thank you all for participating today in our first quarter of 2023 results conference. We delivered the results of the first quarter according to our expectations. The liquid revenue increased 19% in relation to the first quarter of 2022, due to the best commercial mix, strong growth in defense, 56% year-on-year, and in services, 20% year-on-year. The restrictions in the supply chain are still present and we continue to act to mitigate these risks. We see improvements this year, but the scenario is still challenging. The portfolio of firm requests to be delivered ended the first quarter of 2023 with US$ 17.4 billion, stable from quarter to quarter, and driven by the evolution in business jets and support services. In the next few months, we see a better perspective in terms of deliveries, revenue growth and profitability. We are working on many active sales campaigns, with excellent chances of new orders for the coming years, in all business units, mainly commercial and defense. We continually focus on business efficiency in our operations and innovation through our subsidiary, IVE. In the next slide, we will see the ESG alignments and achievements and, next, we will show more details of each business unit in the quarter. Regarding ESG, our sustainability report was released last month and brings environmental, social and governance indicators aligned with international standards . Our actions are on the right track. This was reflected in the improvement of our performance in the CDP report and in the ESG MSCI rating agency. In the next slide, I confirm that IVE has the largest and most diversified order portfolio, with 2,770 purchase intention cards, valued at $ 8.3 billion, the highest in the sector. In the next slide, I will talk about the main highlights of the business units. In commercial aviation, we have more than 200 aircraft in discussion in several sales campaigns, in practically all regions of the world. We announced the expansion of our presence in the Asian market, with the Scud airlines, which added 9 E190E2 to its fleet, and also Bintar, which confirmed its order of 10 E195E2. Revenue growth of 17.5% year-on-year for US$199 million, due to an additional delivery in the first quarter, with more deliveries from the family 2, which has a higher price. The business market continues with a strong order portfolio, in a market returning to normal levels. The revenue was US$ 87 million, 3% less year-on-year, due to the mix in relation to the first quarter of 2022. Our portfolio continues with strong demand and very well positioned, with the backlog growing quarter by quarter and price discipline. In defense, we had the pleasure of announcing the memorandum of understanding with SAAB, to expand collaboration in various areas, including the C-390 Millenium. The C-390 Millenium received the Final Type Certificate, reflecting its total operational capacity , of which the aircraft is capable of carrying out all the missions for which it was designed. Finally, revenue of US$ 98 million, 56% higher year-on-year, due to the better revenue recognition of C390 in the first quarter of 2023. The margins show an improvement compared to last year. In Support Services, we announced an extension of the service and support contract with Porter Airlines to include 20 jets in 195E2 in the firm's request. With this extension, all 50 aircraft will be supported by the PULL program of heavy parts and checks. The highlights also include the service entry support for Salam Air and Endeavour. We announced a complete flight simulator of the FENO 300 in Las Vegas, in a joint venture with the CAE Group. During the first quarter, we received the first E190 to be converted to cargo, in a dedicated installation for all cargo conversions. Revenues of US$ 326 million represent an annual growth of 20%. I now pass the word to Antonio to give more details about the financial results and I will return with the final considerations.

Thank you, Francisco, and good morning everyone. Before we start with the slides, I would like to emphasize that the results of the first quarter were solid and within our expectations. Historically, this quarter is the smallest in terms of deliveries, as well as in most other indicators. We achieved or exceeded our planned goals for the first quarter in terms of deliveries, revenue and operating profit, and cash flow. The sales remained strong and our order portfolio remained solid. Slide 9. Embraer delivered 15 jets in the first quarter, 7 in the commercial and 8 in the executive. It is important to highlight that the deliveries of commercial aircraft are ahead of last year, with an improvement in the mix of aircraft. Last year, we delivered two E-2s in the first quarter, This year, we delivered five E-2s. The E-2 is a global aircraft, and both sales and deliveries continue to grow worldwide. In the executive, we delivered eight jets within the schedule, equal to last year. Slide 10. Our firm order portfolio ended the quarter with $17.4 billion. basically the same as at the end of last year, 2022, and at the end of the first quarter of last year. As we deliver aircraft, our sales teams continue to receive new aircraft orders and new service contracts in the same proportion. Therefore, our order portfolio remains practically the same. This stability is a sign of strength and guarantees us a stable cash flow to support and execute our strategic plan. Moving on to revenue, we ended the first quarter with $717 million in liquid revenue, 116 million or 19% above the same period of the previous year. The increase in revenue is in line with our growth projection for this year. Slide 11, the adjusted EBIT of the first quarter was $32 million negative, while the adjusted EBITDA was 10 million positive. Both are slightly below the first quarter of 2022, mainly due to the non-recurrence of several specific benefits that we had in the same period last year. We hope that our EBITDA and EBITDA margins will increase as there is a greater dilution of fixed costs according to the larger deliveries over the rest of the year. Slide 12. The free cash flow, excluding IVE, was $399 million negative in the first quarter. This includes revenues of more than $450 million for stock formation in order to meet our production and delivery commitments for the rest of the year. We will recover this cash out as we deliver the aircrafts and we are reaffirming our guidance for the entire year of 150 million dollars or more in cash flow. Moving on to investments. We made 40 million investments in product development and research and development and invested 17 million in CAPEX, adding a total investment of 57 million in the first quarter. Most of it was invested in the passenger plane conversion project for cargo and in the expansion of our service and support services. Our adjusted liquid results were 89 million negative. Despite being negative, the first quarter is historically our weakest period. And with our positive estimate of bids and bids, we will certainly have a recovery in the next three quarters. Slide 13. We finished the quarter with a liquid debt excluding the IVE of US$1.4 billion, as shown in the upper central part of the slide. The debt slightly increased in relation to the end of 2022, due to an increase in stock-related cash outputs, as mentioned above. Our leverage index, shown in the upper right corner, is 3.1 times, a slight increase in relation to the previous quarter, plus a drop facing 4.1 times in the same period of the previous year. In the lower half of the chart, it shows that we ended the quarter with 2.85 billion in liquidity. Our strong liquidity position, combined with the future cash flow, will allow us to cover all debt earnings until 2027. With this, I close my presentation and return the floor to Francisco for his final considerations. Thank you very much. Thank you, Antônio.