Q2 2024 Embraer SA Earnings Call

August 8, 2024

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Francisco Neto: Helped by defense and security, up more than 100 percent, but also by commercial aviation and service and support, up around 20%. In the first half of 2024, overall company revenues increased 19% compared to the same period in 2023. The highlight was defense and security, with an increase of about 50%, followed by executive aviation with 24%, service and support with 16%, and commercial aviation with 12%. Our efforts to improve efficiency and profitability led to a 1.6% gain to 9.3% in our operating margin during Q2. The gain in the first half of the year was even bigger, at 2.7% in total.

Speaker Change: But also by commercial aviation and servicing support.

Speaker Change: Around 20%.

Speaker Change: First half of 'twenty 'twenty four overall company revenues increased 19% on carriage.

Speaker Change: Same periods in 2023 to highlight towards niches executed with an increase of about 50% followed by executive Aviation, we had 24% savings from core with 16% and commercial aviation with 12%.

Speaker Change: Fourth to improve efficiency and profitability bed to a 1.6% again.

Speaker Change: Nine 3% in our operating margin during Q2 the gain in the first half of the year was even bigger and totaled two 7%.

Unknown Executive: The game in the first half of the year was even bigger and totaled 2.7%.

Unknown Executive: It is important to mention that we reiterate all lines of our 2024 operational and financial guidance after considering the opportunities and risks for the company in the second half of 2024. Our commercial activity in 2024 continues to be strong in all business reunities, and we see solid demand in the company's main markets. Our firm order backlog reaches to 1.1 billion, which is the highest level over the past 7 years and supported by a solid year-to-date book to be racial in excess of 2.2 to 1. In commercial aviation, executive aviation orders 10 UNI-2s and 10 UNI-5-2s, with deliveries scheduled to start in the second quarter 2025.

Francisco Neto: It is important to mention that we reiterate all lines of our 2024 operational and financial guidance after considering the opportunities and risks for the company in the second half of 2024. Our commercial activity in 2024 continues to be strong in all business units, and we see solid demand in the company's main market. Our firm order backlog reached $21.1 billion, which is the highest level over the past seven years and supported by a solid year-to-date book to be racial in excess of 2.2-1. In commercial aviation, the executive of the ASEON order it, 10 E-192s, and 10 E-195 E-2s, with deliveries scheduled to start in the second quarter 2025.

Unknown Executive: It is important to mention that we reiterate all lines of our 2024 operational and financial guidance after considering the opportunities and risks for the company in the second half of 2024. Our commercial activity in 2024 continues to be strong in all business units. Our firm order backlog reached $21.1 billion, which is the highest level in the past seven years and provides airlines with a viable option to increase their capacity quickly.

Speaker Change: It is important to mention that we reiterated all lines of our 'twenty to 'twenty four operational and financial guidance after considering the opportunities and risks for the company in the second half of 2024.

Speaker Change: Our commercial activity and created 24 continuous to be strong in all business units and we see solid demand in the company's main markets.

Francisco Neto: Our firm order backlog reaches to 1.1 billion, which is the highest level over the past 7 years and supported by a solid year-to-date book to be racial in excess of 2.2 to 1.

Speaker Change: Our firm order backlog, which at 21 point to $1 billion, which is the highest level over the past seven years.

Speaker Change: And supported by a solid year to date book to Bill ratio in excess of 2.2 to one.

Speaker Change: In commercial aviation Mexicana Visteon, whether it's 10 190 twos and then you have 95 items with deliveries scheduled to start in the second quarter 2025.

Francisco Neto: In commercial aviation, executive aviation orders 10 UNI-2s and 10 UNI-5-2s with deliveries scheduled to start in the second quarter 2025. This is another evidence of the strong ability of our E2JET family to operate in several markets and to provide the lines with a viable option to increase their capacity quickly. The recent signing of the contract for 969 million aircraft by the Netherlands in Austria at Feinburg-Louffer coupled with the order for 6 super-tukano aircraft by Paraguay underbings our positive perspective for the business unit.

Unknown Executive: This is another evidence of the strong ability of our E2JET family to operate in several markets and to provide the lines with a viable option to increase their capacity quickly. The recent signing of the contract for 969 million aircraft by the Netherlands in Austria at Feinburg-Louffer, coupled with the order for 6 super-tukano aircraft by Paraguay, underbings our positive perspective for the business unit. In his active aviation, we continue to capitalize on the good sales momentum in both fleet and retail markets, with solid demand across our product for you. In service and support, the division continued to be one of the main drivers of growth for the company, with higher revenues and profitability through a combination of operational and financial excellence, customer experience, and innovative solutions.

Francisco Neto: This is another evidence of the strong ability of our E2JET family to operate in several markets and to provide airlines with a viable option to increase their capacity quickly. In this sense, the recent signing of the contract for 60-90 Millennium Aircraft by the Netherlands and Austria at the Feinburgel Faire, coupled with the order for six Super Tucano aircraft by Paraguay, underpins our positive perspective for the business unit. In executive aviation, we continue to capitalize on the good sales momentum in fleet and retail markets, with solid demand across our product portfolio.

Speaker Change: This is another evidence of the strong ability of our E jet family, who operate in several markets and to provide airlines with a viable option to inquiries via capacity quickly.

Unknown Executive: In this sense, the recent signing of the contract for 60-90 Millennium Aircraft by the Netherlands and Austria at the Farnborough Fair, coupled with the order for six Super Tucano aircraft by Paraguay, underpins our positive perspective for the business unit. This year, we reinforced our supply chain organization by bringing more people closer to our most critical suppliers. In commercial aviation, the backlog in the first half of 2024 rose $3.3 billion, or plus 40% year-over-year, and reached $11.3 billion, with a book-to-bill ratio above 4 to 1 during the period. The adjusted EBIT margin for executives improved 2.5%. Embraer remains confident in its business outlook as its majority and controlling shareholder with an 83% equity stake.

Speaker Change: Since the recent signing of the contract for 90, Cte 90, millennial aircrafts by the Netherlands, and Austria at Farnborough fir, coupled with the order for six Super Tucano aircraft by Paraguay underpins, our positive GDP perspective for the business units.

Francisco Neto: In his active aviation, we continue to capitalize on the good sales momentum in both fleet and retail markets, with solid demand across our product for you. In service and support, the division continued to be one of the main drivers of growth for the company, with higher revenues and profitability through a combination of operational and financial excellence, customer experience and innovative solutions. We continue to face supply chain challenges. This year, we re-enforced our supply chain organization by localizing more people closer to our most critical suppliers. And we introduced digital tools and artificial intelligence to help us further improve the efficiency of our supply chain management.

Speaker Change: And as active aviation, we continue to capitalize on the good sales momentum in both.

Speaker Change: Tripped and retail markets with solid demand across our product portfolio.

Speaker Change: In services and support with Division continue it to be one of the main drivers of growth for the company with the higher revenues and profitability through a combination of operational and financial excellence customer X games and innovative solutions.

Francisco Neto: In services and support, the division continued to be one of the main drivers of growth for the company, with higher revenues and profitability through a combination of operational and financial excellence, customer experience, and innovative solutions. However, we continue to face the supply chain challenge. We continue to face the supply chain challenge. This year, we reinforced our supply chain organization by bringing more people closer to our most critical suppliers. And we introduced digital tools and artificial intelligence to help us further improve the efficiency of our supply chain management.

Unknown Executive: We continue to face supply chain challenges. This year, we re-enforced our supply chain organization by localizing more people closer to our most critical suppliers. And we introduced digital tools and artificial intelligence to help us further improve the efficiency of our supply chain management.

Speaker Change: We continue to face the supply chain challenges. This year, we reinforces our supply chain organization by localizing more people closer to our most critical suppliers and we introduce it digital boost and artificial intelligence to help us further improve.

Speaker Change: Efficiency of our supply chain management.

Unknown Executive: I will now move on to operational results by business units in the next few slides. In commercial aviation, the backlog in the first half 24 rows, 3.3 billion or plus 40% year over year, enriches 11.3 billion with a book to be ratio above 4 to 1 during the period. Deliveries and revenues are almost tripled, sequentially in Q2, enriches 19 aircraft and 554 million. The year-on-year growth rates were also solid in double-digit territory. Adjusted EBIT margin for commercial in Q2 declined 1% year-on-year from 5.3% to 4.3%. Mainly because of product mix. In as active aviation, we recorded the strongest first semester in terms of revenues and delivers for the division over the past 10 and 8 years with 575 million and 45 aircraft.

Antonio Garcia: I will now move on to operational results by business units in the next few slides. In commercial aviation, the backlog in the first half 24 rows, 3.3 billion or plus 40% year over year, enriches 11.3 billion with a book to be ratio above 4 to 1 during the period. Deliveries and revenues are almost tripled, sequentially in Q2, enriches 19 aircraft and 554 million. The year-on-year growth rates were also solid in double-digit territory.

Francisco Neto: I will now move on to operational results by business units in the next few slides. In commercial aviation, the backlog in the first half of 2024 rose $3.3 billion, or plus 40% year-over-year, and reached $11.3 billion, with a book-to-bill ratio above 4 to 1 during the period. Deliveries and revenues almost tripled sequentially in Q2, and reached 19 aircraft and 554 million. Here only were our growth rates also solid in double

Speaker Change: I will now move on to operational results by business units in the next few slides.

Speaker Change: Our commercial aviation the backlog in the first half 'twenty, four rose 313 billion or plus 40% year over year, and Richard 11, 3 billion with a book to bill ratio above four dwan during the periods.

Speaker Change: Livers and revenues almost tripled sequentially in Q2, and Richard 19, aircrafts and 554 million.

Speaker Change: Year on year growth rates were also solid in double digit territory.

Speaker Change: Adjusted EBIT margin for commercial in Q2 declined 1% year on year.

Unknown Executive: Adjusted EBIT margin for commercial in Q2, the climate, 1% year on year. [inaudible] from 5.3% to 4.3%, mainly because of product mix. In Executive Aviation, we recorded the strongest first semester in terms of revenues and deliveries for the division over the past 10 and 8 years with 575 million and 45 aircraft. The backlog for the division registered an increase of $300 million in Q2 and ended the period at $4.6 billion, or 80% higher year-over-year, supported by a strong 1.5 to 1 book-to-view ratio in the first half of 2024.

Antonio Garcia: Adjusted EBIT margin for commercial in Q2 declined 1% year-on-year from 5.3% to 4.3%. Mainly because of product mix. In as active aviation, we recorded the strongest first semester in terms of revenues and delivers for the division over the past 10 and 8 years with 575 million and 45 aircraft. The backlog for the division registered an increase of 300 million in Q2 and ended the period at 4.6 billion or 8% higher year over year supported by a strong 1.5 to 1 book to be ratio in the first half of 2024.

Speaker Change: <unk>, 5.3% four points, 3%.

Speaker Change: Mainly because of product mix.

Speaker Change: And as active aviation, we recorded the strongest first semester in terms of revenues and deliveries for the division over the best stent in eight years with 575 million and 45 aircrafts.

Unknown Executive: The backlog for the division registered an increase of 300 million in Q2 and ended the period at 4.6 billion or 8% higher year over year, supported by a strong 1.5 to 1 book to be ratio in the first half of 2024. Adjusted EBIT margin for executives improved 2.5% from 8.8% in the second part of 23 to 11.3% in the second part of 24. Helps by higher productivity and despite lower production volume. In defense and security revenues in Q2 increase 2.3 times year-on-year for more than 100 million. Adjusted EBIT margin also improved to minus 0.5% in the second quarter of 24, from minus 4.1% in the same period of 2023.

Speaker Change: The backlog for the division registered an increase of 300 million in Q2 and ended the period at 416 billion.

Speaker Change: Or 8% higher year over year supported by a strong one bunch fiber to one book to Bill ratio in the first half of 'twenty 'twenty four.

Speaker Change: The adjusted EBIT margin for executives improving two 5%.

Unknown Executive: The adjusted EBIT margin for executives improved 2.5%, from 8.8% in the second quarter of 2023 to 11.3% in the second quarter of 2024, helped by higher productivity and despite a lower production volume. In defense and security, revenues in Q2 increased 2.3 times year-on-year, or more than $100 million. The adjusted EBIT margin also improved to minus 0.5% in the second quarter of 2024 from minus 4.1% in the same period of 2023. The delivery of the second C-29 Millennium to the Portuguese Air Force was an important highlight for defense and security during the quarter.

Antonio Garcia: Adjusted EBIT margin for executives improved 2.5% from 8.8% in the second part of 23 to 11.3% in the second part of 24. Helps by higher productivity and despite lower production volume. In defense and security revenues in Q2 increase 2.3 times year-on-year for more than 100 million. Adjusted EBIT margin also improved to minus 0.5% in the second quarter of 24, from minus 4.1% in the same period of 2023. The delivery of the second 6-0 millionion to the Portuguese Air Force was an important highlight for the chance in security in the quarter.

Speaker Change: From eight 8% in the second quarter 'twenty three to 11, 3% in the second quarter 'twenty four helped by higher productivity and despite the lower production volumes.

Speaker Change: In defense and security revenues in Q2 increase it to quite three times year on year or more than 100 million.

Speaker Change: The adjusted EBIT margin of improvement to minus 0.5% in the second quarter 'twenty four from minus four 1% in the same period of 2023.

Unknown Executive: The delivery of the second 6-0 million to the Portuguese Air Force was an important highlight for the chance in security in the quarter. The first aircraft entered into service at Beijing, air-based in October 2023. In service and support, revenue grew 20% in Q2, compared to the same period of last year, with solid-mitted to high-tinks profitability and a gain of 1.3% in the adjusted EBIT margin. The business unit maintained its historical 3.1 billion record backlogs, which is in Q4-23.

Speaker Change: The delivery of the second shift in that millennial to the Portuguese Air Force was an important highlight for the financial security in the quarter.

Unknown Executive: The first aircraft will enter into service at Beja Air Base in October 2023. In service and support, revenue grew 20 percent in Q2, compared to the same period of last year, with solidly needed high-tech profitability and a gain of 1.3 percent in the adjusted EBIT margin.

Speaker Change: First aircraft enter it into service at <unk> airbase in October 2023.

Antonio Garcia: The first aircraft entered into service at Beijing, air-based in October 2023. In service and support, revenue grew 20% in Q2, compared to the same period of last year, with solid-mitted to high-tinks profitability and a gain of 1.3% in the adjusted EBIT margin. The business unit maintained its historical 3.1 billion record backlogs, which is in Q4-23.

Speaker Change: Service and support.

Speaker Change: Revenue grew 20% in Q2 compared to the same period of last year with solid immediate to high teens profitability in a gang of one 3% in the adjusted EBIT margin the business unit, maintaining its historical 3.1 billion record backlogs.

Unknown Executive: The business unit maintained its historical 3.1 billion record backlog, which is in Q4'23. Another important achievement for our service and support division was the first flight of the E-190 freighter, a passenger-to-full-cargo conversion, which received certification by the National Civil Aviation Agency of Brazil, ANAC, in July 2024. Last but not least, our E-VTOL business, which is another important part of my response in the second quarter, 24. The company has now already selected and contracted most of the component suppliers and completed its first full-scale eVTOL prototype assembly. We should celebrate it.

Speaker Change: Richard in Q4 of 23, another important achievement for our services for water Division was the first flight of the EUR 90 freighter a passengers to full cargo conversion issue received this certification by the National CBOE issue ages of Brazil <unk> in July 2024.

Unknown Executive: Another important achievement for our service and support division was the first flight of the E-19 freighter, the passengers to full cargo conversion, which received the certification by the National Civil Aviation Agency of Brazil, A-Nex.

Francisco Neto: Another important achievement for our service and support division was the first flight of the E-19 freighter, the passengers to full cargo conversion, which received the certification by the National Civil Aviation Agency of Brazil, A-Nex.

Unknown Executive: In July 2024, last but not least, Evie, our Evie top business, which is other important in my restaurant in the second quarter of 2024. The company has now already selected and contracted most of the components of the suppliers. Completed, its first full-scale Evie top prototypers thingy. In celebrating its rule out in our Guardian Peixote plan last month, Evie also completed a new equity financial round of 96 million from multiple investors. The money will help support the continued development and manufacturing of its Evie top.

Francisco Neto: In July 2024, last but not least, Evie, our Evie top business, which is other important in my restaurant in the second quarter of 2024. The company has now already selected and contracted most of the component of the suppliers. Completed, its first full-scale Evie top prototypers thingy. In celebrating its rule out in our Guadian Peixote plan last month, Evie also completed a new equity financial round of 96 million from multiple investors. The money will help support the continued development and manufacturing of its Evie top. Embraer remains confident in Evie's business outlook as its majority and controlling shareholders. With an 83% equity stake.

Speaker Change: Last one at least Ive, our EBITA business Richard Order Importantly, my was strongest in the second quarter 'twenty four.

Speaker Change: The company has now already selected and contracted most of the component suppliers completed its first full scale, we've had both prototypes singing.

Speaker Change: And celebrating its rollout in our gallery ambitious plan last month.

Francisco Neto: It's a rule out in the Urgavio Peixote Plan last month. It also completed a new equity financial round of 96 million from multiple investors. The money will help support the continued development and manufacturing of its eVTOL. Embraer remains confident in its business outlook as its majority and controlling shareholder with an 83% equity stake. I will now hand it over to Antonio to give you further details about the financial results, and then I'll be back with closing remarks.

Speaker Change: <unk> also completed a new equity financial round of $96 million from multiple investors.

Speaker Change: The monies, we will help support the continuous development.

Speaker Change: And manufacturing of its EBITA.

Unknown Executive: Embraer remains confident in Evie's business outlook as its majority and controlling shareholders. With an 83% equity stake.

Embraer: Embraer remains confident and aegis business outlook as its majority in controlling shareholder with an 83% equity stake.

Antonio Garcia: I will now hand it over to Antonio to give you further details about the financial results. And then I will be back with closing remarks. Thank you for the fiscal good morning and good afternoon to everyone. I'd like to highlight we had another solid quarter in Q2. Our financial results improved both quarter over quarter and year over year. For instance, revenues for the period that were 16% higher than the near goal. And our 8-bit margin was 160 basis points higher. Our firm was in Q2 continued to be on business and financial efficiencies. We are fully committed to reach our full-year guidance despite all the ongoing supply chain constraints we continue to deal with, which had also negative impact on our year-to-date cash flow.

Embraer: I will now hand, it over to Antonio to give you further details of positive financial results and then I'll be back with closing remarks.

Antonio Garcia: I will now hand it over to Antonio to give you further details about the financial results.

Unknown Executive: And then I will be back with closing remarks. Thank you for the fiscal good morning and good afternoon to everyone.

Embraer: Great.

Antonio Garcia: Thank you, Francisco. Good morning and good afternoon to everyone.

Antonio: Thank you Francisco good morning, and good afternoon to everyone.

Antonio Garcia: I'd like to highlight we had another solid quarter in Q2. Our financial results improved both quarter over quarter and year over year. For instance, revenues for the period were 16 percent higher than a year ago, and our EBIT margin was 160 basis points higher. Our focus in Q2 continues to be on business and financial efficiency.

Antonio: I'd like to highlight we had another solid order in Q2.

Francisco Neto: I'd like to highlight we had another solid quarter in Q2. Our financial results improved both quarter over quarter and year over year. For instance, revenues for the period that were 16% higher than the near goal. And our 8-bit margin was 160 basis point higher. Our firm was in Q2 continued to be on business and financial efficiencies.

Unknown Executive: Our financial results improved both quarter over quarter and year over year. For instance, revenues for the period were 16% higher than a year ago, and our EBIT margin was 160 basis points higher. Our focus in Q2 continues to be on business and financial efficiency, which had a negative impact on our year-to-date cash flow. Glide 11, please.

Antonio: Our financial results improved both quarter over quarter and year over year for instance.

Antonio: Revenues for the period, they were 16% higher than a year ago, and our EBIT margin was and a 60 BP basis point higher.

Embraer: Our our formulas in Q2 continues to be on business and financial efficiencies.

Antonio Garcia: We are fully committed to reaching our full year guidance despite all the ongoing supply chain constraints we continue to deal with, which also had a negative impact on our year-to-date cash flow. It is important to mention that we still see double-digit growth for aircraft delivered through revenue and EBITDA in 2024 and 2025, notwithstanding the operational challenge, which is live to 10 deliveries. Commercial Aviation delivered 90 aircraft in Q2, for an increase of 12% versus a year ago and almost three times higher than in Q1.

Embraer: We are fully committed to reach our full year guidance. Despite all the ongoing supply chain constraints, we continue to deal with.

Francisco Neto: We are fully committed to reach our full-year guidance despite all the ongoing supply chain constraints we continue to deal with, which had also negative impact on our year-to-date cash flow. It is important to mention we still see double digital growth for aircraft delivers revenue and a bit in 2024 and 2025, notwithstanding the operational channels. It is light to 10 delivers commercial aviation delivered 90 aircrafts in Q2 for an increase of 12% versus a near goal and almost three times higher than in Q1.

Antonio: Which had also negative impact on our year to date cash flow.

Unknown Executive: It is important to mention we still see double digital growth for aircraft delivers revenue and a bit in 2024 and 2025, notwithstanding the operational channels. It is light to 10 delivers commercial aviation delivered 90 aircrafts in Q2 for an increase of 12% versus a near goal and almost three times higher than in Q1. Meanwhile, executive aviation delivered 27 yards in Q2, compared to 30 aircraft in the same quarter of 2023. However, if we look sequentially, the numbers of deliveries grew 50% from Q1 to Q2. In defense, we delivered 1.390 million to the Portuguese Air Force in Q2, compared to 1.390 to the Brazilian Air Force when the Air Bowl.

Speaker Change: It is important information, we still see double digit growth for aircraft silly with ceramic and neighborhoods.

Antonio: In 'twenty 'twenty, four and 'twenty to 'twenty five not withstanding the operational challenges.

Speaker Change: Is lighter than delivers.

Antonio: Commercial aviation delivered 19 aircrafts Youtube true for an increase of 12% versus a year ago and almost three times higher than in Q1.

Speaker Change: Meanwhile, executive aviation delivered tiny churn yet in Q2 compared to <unk> 30 aircrafts in the same quarter of 2023.

Antonio Garcia: Meanwhile, Executive Aviation delivered 27 jets in Q2, compared to 30 aircraft in the same quarter of 2023. However, if we look sequentially, the numbers of deliveries grew 50% from Q1 to Q2. In defense, we delivered one C-390 Millennium to the Portuguese Air Force in Q2, compared to one KC-390 to the Brazilian Air Force one year ago. It is important to mention that the aircraft... is not included in our delivery guidance for 2024. Thank you for it!

Francisco Neto: Meanwhile, executive aviation delivered 27 yards in Q2, compared to 30 aircraft in the same quarter of 2023. However, if we look sequentially, the numbers of deliveries grew 50% from Q1 to Q2. In defense, we delivered 1.390 million to the Portuguese Air Force in Q2, compared to 1.390 to the Brazilian Air Force when the Air Bowl.

Embraer: However, if we look sequentially the numbers of deliveries grew 50% from Q1 to Q2.

Embraer: In Defence, we delivered one C 390 million new to the Portuguese Air Force in Q2.

Embraer: Prior to one KC 392, New Brazilian Air Force when you travel.

Unknown Executive: It is important to mention, the aircraft is not included in our delivery guidance for 2024. We continue to work steadfastly to accomplish our production plan and to reach our 2020 for guidance of between 125 and 135 executive jets and 72 and 80 commercial aircrafts. We are also on track to deliver 4.390 million aircrafts scheduled for the year.

Embraer: It is important to mention the aircrafts.

Francisco Neto: It is important to mention, the aircraft is not included in our delivery guidance for 2024. We continue to work steadfastly to accomplish our production plan and to reach our 2020 for guidance of between 125 and 135 executive jets and 72 and 80 commercial aircrafts. We are also on track to deliver 4.390 million aircrafts scheduled for the year.

Embraer: Is not included in our delivery guidance for 'twenty to 'twenty four.

Embraer: We continue to work steadfastly to accomplish our production plan and to reach our 2024 guidance.

Antonio Garcia: We continue to work steadfastly to accomplish our production plan and to reach our 2024 guidance of between 125 and 135 executive jets and 72 and 80 commercial aircraft. We are also on track to deliver four C-390 Millennium Aircraft for the year. Glide 11, please. The company registered a seven-year-old total backlog of $21.1 billion in Q2, which was marginally higher, quarter to quarter, and 22% higher than a year ago. The backlog for commercial aviation continues to move higher.

Embraer: Between under 25, and 35 executive Jets, and 72 and 80 commercial aircrafts.

Speaker Change: We are also on track to deliver four seats, we have that Nike millennial aircrafts scandal.

Embraer: For the year.

Unknown Executive: Leda Alvin, please. The company registered a 7-year-high total backlog of 21.1 billion in Q2, which was marginally higher quarter to quarter and 22% higher than a year ago. The backlog for commercial aviation continued to move higher. It's totaled more than 300 AAH aircrafts in Q2, and it was valued at 11.3 billion, or 200 million higher than less quarter, and 3.3 billion are both second quarter 23. Meanwhile, the backlog for executive aviation was a solid and resilient 4.6 billion during the period, flat quarter but up 300 meter year on year. Less but not least, the backlog for service and support finished relatively stable at 3.1 billion in Q2.

Speaker Change: Slide 11 please.

Antonio Garcia: Leda Alvin, please. The company registered a 7-year-high total backlog of 21.1 billion in Q2, which was marginally higher, quarter to quarter and 22% higher than a year ago. The backlog for commercial aviation continued to move higher. It's totaled more than 300 AAH aircrafts in Q2, and it was valued at 11.3 billion or 200 million higher than less quarter and 3.3 billion are both second quarter 23. Meanwhile, the backlog for executive aviation was a solid and resilient 4.6 billion during the period, flat quarter but up 300 meter year on year. Less but not least, the backlog for service and support finished relatively stable at 3.1 billion in Q2.

Speaker Change: The company hedges through our <unk>.

Speaker Change: A seven year high total backlog of 281 point to 1 billion in Q2, which was marginally higher quarter over quarter, and 22% higher than a year ago.

Embraer: The backlog for Commission aviation continued to move higher.

Antonio Garcia: It had more than 300 aircraft in Q2, and it was valued at $11.3 billion, or $200 million higher than last quarter and $3.3 billion above second quarter, 2023. Meanwhile, the backlog for executive aviation was a solid and resilient $4.6 billion during the period. Flats, quarter and quarter, but up 300 meters year on year.

Speaker Change: It's total more than 300, a age aircrafts in Q2, and it was valued at 11.3 billion or 200 meter higher than last quarter and three pointed 3 billion are both set.

Speaker Change: Called acquire through 'twenty three.

Speaker Change: Meanwhile, the backlog for ASIC D aviation was a solid and resilient far by <unk> 6 billion during the period.

Speaker Change: Flat quarter on quarter, but up 300 meter year on year.

Speaker Change: Last but not least the backlog for service and support to finished relatively stable at 3.1 billion in Q2.

Antonio Garcia: Last but not least, the backlog for service and support finished relatively stable at $3.1 billion in Q2, while for Defense-Integrated, it decreased marginally by 10% to $2.1 billion. Looking forward, our backlog for defense should increase by more than 50% in Q3 with the new contracts if we factor in the export contracts recently announced for Citron 90 Millennium and Super Tucano. Moving on to revenues, our top line reached almost $1.5 billion in Q2, or $200 million higher year-over-year for a 16% growth rate.

Unknown Executive: Why are for defense instituted? It decreased marginally by 10% to 2.1 billion. Looking forward, our backlog for defense should increase by more than 50% in Q3 with the new contracts. If we factor in the export contracts, we say to announce for situational 90 million and super two counts.

Speaker Change: While for defense and security it decreased marginally by 10% to two point to 1 billion.

Antonio Garcia: Why are for defense instituted? It decreased marginally by 10% to 2.1 billion. Looking forward, our backlog for defense should increase by more than 50% in Q3 with the new contracts. If we factor in the export contracts, we say to announce for situational 90 million and super two counts.

Speaker Change: Looking forward, our backflow for DFAST should increase by more than 50% in Q3 with the new contracts. If we factor in the export quarter. Its recently announced for a CTO handler, IP millennial and secret to cans.

Unknown Executive: Moving on to revenues, our top line reached almost 1.5 billion in Q2, or 200 million higher year-over-year for a 16% growth rate. If you look at the pie chart on the right, we can see a more balanced revenue mix. For instance, commercial aviation represented around 37% of total revenue, followed by service and support, close to 27%. Executive aviation was 23% in defense at around 13%. For the first half of the year, we recorded 2.4 billion e-revenue, or almost 40% of the mid-point of the 2020-4 guidance. Next slide, 12 ABTJ, we generated 190 million in adjusted ABTDA in 2nd quarter of 24, with a 12.7% margin compared to 149 million 2nd quarter of 23.

Speaker Change: Moving onshore revenues our top line reached almost one point by the volume in Q2 or.

Antonio Garcia: Moving on to revenues, our top line reached almost 1.5 billion in Q2, or 200 million higher year-over-year for 16% growth rate. If you look at the pie chart on the right, we can see a more balanced revenue mix. For instance, commercial aviation represented around 37% of total revenue, followed by service and support, close to 27%. Executive aviation was 23% in defense at around 13%.

Unknown Executive: Moving on to revenues, our top line reached almost 1.5 billion in Q2, or 200 million higher year over year for a 16% growth rate. If you look at the pie chart on the right, followed by service and support, close to 27%, executive aviation with 23%, and defense at around 13%. For the first half of the year, we recorded $2.4 billion in revenue, or almost 40% of the mid-point of the 2024 guidance, with a 12.7% margin compared to 149 million in the second quarter.

Speaker Change: 200 million higher year over year for 16% growth rate.

Antonio Garcia: If you look at the pie chart on the right... You know, we can see a more balanced revenue. For instance, commercial aviation represented around 37% of total revenue, followed by service and support close to 27 percent, executive aviation with 23 percent, and defense with around 13 percent. For the first half of the year, we recorded $2.4 billion in revenue, or almost 40% of the mid-point of the 2024 guidance. Next slide. 12, a BTGA.

Speaker Change: If you look at the Pie chart on the right.

Speaker Change: We can see a more balanced revenue mix for instance, commercial aviation.

Speaker Change: Represented around 37% of total revenue.

Speaker Change: Followed by service and support gross or 27% is.

Speaker Change: Zig Dv aviation with 23% and defense at around 13%.

Speaker Change: For the first half of the year.

Antonio Garcia: For the first half of the year, we recorded 2.4 billion e-revenue, or almost 40% of the mid-point of the 2020-4 guidance. Next slide, 12 ABTJ, we generated 190 million in adjusted ABTDA in 2nd quarter of 24, with a 12.7% margin compared to 149 million 2nd quarter of 23. We reviewed by strong operating results when compared to the same period last year. When we related notes, the Brazilian foreign exchange rate has been very volatile in the first half of 24, and its recent depreciation should provide some tailwind in the second half of the year.

Speaker Change: We recorded $2 4 billion irrational or almost 40% of the mid point of the 'twenty 'twenty four guidance.

Speaker Change: Next slide.

Speaker Change: 12 EBITDA.

Antonio Garcia: We generated $190 million in adjusted EBITDA in Q2'24, with a 12.7% margin compared to 149 million in second quarter 23, driven by strong operating results when compared to the same period last year. On a related note, the Brazilian foreign exchange rate has been very volatile in the first half of 2014, and its recent depreciation should provide some tailwind in the second half of the year. We generated $237 million in adjusted EBITDA with a 9.9% margin in the first half of 2024 versus $159 million with a 7.9% margin in the prior year period, for a dollar amount almost 50% higher annually.

Speaker Change: We generated 190 million in adjusted EBITDA second quarter plant before.

Speaker Change: With a 12, 7% margin compared to 149 medium second acquired the plant between.

Unknown Executive: We reviewed by strong operating results when compared to the same period last year. When we related notes, the Brazilian foreign exchange rate has been very volatile in the first half of 24, and its recent depreciation should provide some tailwind in the second half of the year. We generated 237 million in adjusted ABTDA, with 9.9% margin in the first half of 2020-4, versus 159 million with a 7.9% margin in the prior year period, for $1 amount almost 50% higher annually. Meanwhile, adjusted ABT was 139 million, with a 9.3% adjusted margin. However, there were one-time items in the quarter which profit up the adjusted ABT margin by circa 250 basis points.

Speaker Change: Driven by strong operating results when compared to the same period last year.

Speaker Change: One related nodes the Brazilian foreign exchange rate has been very volatile in the first half 'twenty four.

Speaker Change: And at Cira centre depreciation should provide some tailwind in the second half of the year.

Speaker Change: We generated 237 million in adjusted EBITDA with 9.9% Marty and the first half of 'twenty two eight before.

Antonio Garcia: We generated 237 million in adjusted ABTDA, with 9.9% margin in the first half of 2020-4, versus 159 million with a 7.9% margin in the prior year period, for $1 amount almost 50% higher annually. Meanwhile, adjusted ABT was 139 million with a 9.3% adjusted margin. However, there were one-time items in the quarter which profit up the adjusted ABT margin by circa 250 base points. We reported ABT for the quarter was 128 million with an 8.6% margin.

Unknown Executive: We generated $237 million in adjusted EBITDA with a 9.9% margin in the first half of 2024 versus $159 million with a 7.9% margin in the prior year period. Both figures were materially better than their second quarter 23.

Speaker Change: The virus was 159 million with a seven 9% to Marty in their prior year periods for.

Speaker Change: For a dollar amount to almost 50% higher annually.

Speaker Change: Meanwhile, adjusted EBIT was $139 million with a nine 3% adjusted Marty.

Antonio Garcia: Meanwhile, Adjusted EBIT was $139 million with a 9.3% adjusted margin. However, there were one-time items in the quarter which propped up the adjusted EBIT margin by circa 250 basis points. Reported EBIT for the quarter was $128 million with an 8.6% margin. Both figures were materially better than their second quarter 23, comps supported by better efficiency, lower SG&A costs, especially in executive aviation and service and support. Looking at the right chart, we can see executive aviation and servicing support generated more than 75% of the company-wide EBIT during the quarter, while commercial aviation earned a balance 25% and defense practically broke even in accordance with the percentage of completion accounting method. On the slide is 13.

Speaker Change: However, they were one time items and the acquired <unk>, which brought adopt the adjusted EBIT margin by circa 250 basis points.

Unknown Executive: We reported ABT for the quarter was 128 million with an 8.6% margin. Both figures were materially better than their 2nd quarter of 23; comps supported by better efficiency, lower SDNA costs, especially in executive aviation and services support. In the right chart, we can see executive aviation and services support generated more than 75% of the company-wide ABTDA during the quarter.

Speaker Change: Reported EBITDA for the acquired plus 128 million with an eight 6% Mark.

Speaker Change: Most fever were materially better than they are.

Antonio Garcia: Both figures were materially better than their 2nd quarter of 23, comps supported by better efficiency, lower SDNA costs, especially in executive aviation and services support. In the right chart, we can see executive aviation and services support generated more than 75% of the company-wide ABTDA during the quarter. Why a commercial aviation burden balanced 25% and defense practically broke even in accordance with the percentage of completion accounting methods.

Speaker Change: Second quarter 'twenty three.

Speaker Change: Comps supported by better efficiency, lower SG&A costs, especially music deviation and serve self support.

Speaker Change: Broken derived sharp we can see is active aviation and servicing support generated more than 75% of the companywide David during the quarter.

Unknown Executive: Looking at the right chart, we can see executive aviation and servicing support generated more than 75% of the company-wide EBIT during the quarter. In Q2, if you exclude EVE, we had an adjusted free cash flow consumption of $215 million due to networking capital needs for higher aircraft delivered in the second half of the year. This cash should be recovered as much deliveries take place over the next couple of quarters. Moving to investments.

Unknown Executive: Why a commercial aviation burden balanced 25% and defense practically broke even in accordance with the percentage of completion accounting methods.

Speaker Change: While commercial aviation Darden balanced.

Speaker Change: <unk>, 5% and DFAST critically broke even in accordance with the percentage of completion accounting methods.

Unknown Executive: On the slide 13, in Q2 issue include ETH, we had an adjusted pre-cash flow consumption of 215 million, due to a network in capital needs for higher aircraft delivered in the second half of the year. This cash should be recovered as much deliveries take place over the next couple of quarters. Moving to investments, again, without ease, we spent 29 million in research and development during the quarter for the 7 million copies and net 11 million in the pool rooms for its spare parts, for a total of 107 million compared to 104 million and the airport.

Speaker Change: On slide 13.

Antonio Garcia: On the slide 13, in Q2 issue include ETH, we had an adjusted pre-cash flow consumption of 215 million, due to a network in capital needs for higher aircraft delivered in the second half of the year. This cash should be recovered as much deliveries take place over the next couple of quarters. Moving to investments, again, without ease, we spent 29 million in research and development during the quarter for the 7 million copies and net 11 million in the pool rooms for its spare parts for a total of 107 million compared to 104 million and the airport. Our capital location continues to be focused on segments with higher returns, with a project such as expansion of our production capacity in executive aviation and services support.

Antonio Garcia: In Q2, if we exclude EVE, we had an adjusted free cash flow consumption of $215 million due to networking capital needs for higher aircraft delivered in the second half of the year. This cash should be recovered as many deliveries take place over the next couple of quarters. Moving to investments. Again, without ease, we spent $29 million on research and development during the quarter, $47 million on CapEx, and net $11 million in the pool programs for spare parts, for a total of $107 million, compared to $104 million a year ago.

Speaker Change: In Q2, if you exclude <unk>, we had an adjusted pre cash flow consumption of 215 million Dewey true Nat toward net working capital needs for higher aircraft delivered in the second half of the year.

Speaker Change: This cash should be recovered as much deliveries to take place over the next couple of quarters.

Speaker Change: Moving to investments again without Eve, we spent $29 million in research and development during the quarter four to 7 million Capex and net 11 million the pool brooms for spare parts for a total of 107 million compared to 104 million.

Unknown Executive: Again, without ease, we spent $29 million in research and development during the quarter, $47 million in CapEx, and net $11 million in pool programs for spare parts, for a total of $107 million, compared to $104 million a year ago, on projects such as the expansion of our production capacity in executive aviation and service and support. To finalize, our adjusted net income was positive $80 million for the quarter, supported by a 5.4% adjusted margin, or $22 million higher than a year ago, but we still managed to reduce it by circa $880 million when compared to a year ago.

Speaker Change: On the ergo.

Unknown Executive: Our capital location continues to be focused on segments with higher returns, with a project such as expansion of our production capacity in executive aviation and services support.

Speaker Change: Our our capital location.

Antonio Garcia: Our capital location continues to be focused on segments with high returns, with projects such as the expansion of our production capacity in executive aviation and service and support. To finalize, our adjusted net income was positive $80 million for the quarter, supported by a 5.4% adjusted margin, or $22 million higher than a year ago. July 14th. Going to our liability management plan. In the 2nd quarter, 24th, our growth debt without Eiff was relatively stable at 2.6 billion during the period, but we still managed to reduce it by circa $880 million when compared to a year ago.

Speaker Change: Continues to be focused all segments with higher returns with a project such as expansion for our production capacity in executive aviation and service and support.

Unknown Executive: To finalize, our address net income was positive $80 million for the quarter, supported by a 5.4% address at Murray, or $82 million higher than a year ago. It was like $14, going to our liability management plan in 2nd quarter, $24, or growth debt to without each was relatively stable at $2.6 billion during the period. But we still managed to reduce it by circa $880 million when compared to a year ago. Meanwhile, our net debt declined by $152 million; we are on year and reached at $1.3 billion during the quarter. Our net debt to a BTDA leverage ratio increased 0.2 tons, sequentially, to 2 times as showing the proper right quarter.

Speaker Change: To finalize our adjusted net income was positive 80 million towards the quarter supported by a five point Farnborough, Saint Joseph Marty or to 82 million higher than in yellow.

Antonio Garcia: To finalize, our address net income was positive $80 million for the quarter supported by a 5.4% address at Murray, or $82 million higher than a year ago. It was like $14, going to our liability management plan in 2nd quarter, $24, or growth debt to without each was relatively stable at $2.6 billion during the period. But we still managed to reduce it by circa $880 million when compared to a year ago. Meanwhile, our net debt declined by $152 million, we are on year and reached at $1.3 billion during the quarter.

Speaker Change: Slide 14 going through our liability management plan in second quarter 24, our gross debt to without east was relatively stable at <unk> 6 billion during the period.

Speaker Change: But we still managed to reduce it by circa 80, Honda $18 million when compared to one year ago.

Unknown Executive: Meanwhile, our net debt declined by $152 million year-on-year and reached $1.3 billion during the quarter, as shown in the top right corner. This margin increase is explained by the seasonality of cash consumption in preparation for higher deliveries in the second half of the year. We also announced earlier this week an extension for the next five years of our revolving credit facility and an increase in its size from 650 million to a billion, which will be reflected in our Q3 liquidity position. With that, I conclude my presentation and hand it back to Francisco for his final remarks. Thanks for your attention. Thank you.

Antonio Garcia: Meanwhile, our net debt declined by $152 million year-on-year and reached $1.3 billion during the quarter, or a net debt to BTDA leverage ratio of 0.2 turns sequentially to two times, as shown in the top right corner. This margin increase is explained by the seasonality of cash consumption in preparation for higher deliveries in the second half of the year. We also announced earlier this week an extension for the next five years of our revolving credit facility and an increase in its size from 650 million to a billion, which will be reflected in our Q3 liquidity position. With that, I conclude my presentation and hand it back to Francisco for his final remarks. Thanks for your attention. Thank you.

Speaker Change: Meanwhile, our net debt declined by $152 million.

Speaker Change: Year on year, and they were each at $1 3 billion during the quarter.

Speaker Change: Our net debt to EBITDA leverage ratio increased 0.2 turns sequentially to two times as show in the upper right corner.

Antonio Garcia: Our net debt to a BTDA leverage ratio increased 0.2 tons, sequentially to 2 times as showing the proper right quarter. This measurement increase is explained by the seasonality of the cash consumption in preparation for higher deliveries in the 2nd half of the year.

Unknown Executive: This measurement increase is explained by the seasonality of the cash consumption in preparation for higher deliveries in the 2nd half of the year.

Speaker Change: He is measuring inquiries is explained by decision allendorf their cash consumption a preparation for higher deliveries in the second half of the year.

Unknown Executive: We also announced at this week a next station for the next 5 years of our revolving credit facilitated and an increase of each size from $650 million to a billion, which will be reflected in our Q3 liquidity position.

Speaker Change: We also announced earlier this week and next station for the next five years of our revolving credit facility and.

Antonio Garcia: We also announced at this week a next station for the next 5 years of our revolving credit facilitated and an increase of each size from $650 million to a billion, which will be reflected in our Q3 liquidity position.

Speaker Change: And an increase of each size from $650 million to 1 billion, we achieved will be reflected in our Q3 liquidity position.

Francisco Neto: With that, I conclude my presentation and hand it back to Francisco for his final remarks. Thanks for your attention. Thank you, Antonio. The progress recorded in the Q224 demonstrates we are on track to achieve all the results embedded in our 2024 guidance. More importantly, we will continue to work hard to deliver even better results in the coming quarter of the year, especially in Q3. Our company remains very well positioned for the future, with a 7-year high backlog of 21.1 billion, a strong 2.2 to 1 book to build in the first half of the year, a steady progress in our operational and financial indicators, as well as a solid strategic plan. It is important to mention that we, including in our Q3 backlog for the chance, the contracts for 9-19 billion, silence with the Netherlands and Austria, and 6 super-tukanos, ordered by Paraguay during the recent Fembro-Airshow in England.

Joe: With that I conclude my presentation and hand, it back to Joe for US useful for his final remarks, Thanks Ford irritation.

Francisco Neto: With that, I conclude my presentation and handed back to Francisco for his final remarks. Thanks for your attention. Thank you Antonio. The progress recorded in the Q224 demonstrates we are on track to achieve all the results embedded in our 2024 guidance. More importantly, we will continue to work hard to deliver even better results in the coming quarter of the year, especially in Q3. Our company remains very well positioned for the future, with a 7-year high backlog of 21.1 billion, a strong 2.2 to 1 book to build in the first half of the year, a steady progress in our operational and financial indicators, as well as a solid strategic plan, is important to mention that we, including in our Q3 backlog for the chance, the contracts for 9-19 billion, silence with the Netherlands and Austria, and 6 super-tukanos, ordered by Paraguay during the recent Fembro-Airshow in England.

Joe: You Antonio.

Joe: The progress recorded in Q2 'twenty four demonstrates we are on track to achieve all the results embedded in our 'twenty 'twenty four guidance.

Unknown Executive: The progress recorded in Q224 demonstrates we are on track to achieve all the results embedded in our 2024 guidance. And to finish, I'd like to thank you all again for your interest and confidence in our company. We see bright and clear skies ahead for our company, and we will continue to work hard and embrace the foundation of our culture that is safety first and quality only.

Francisco Neto: The progress recorded in Q224 demonstrates we are on track to achieve all the results embedded in our 2024 guidance. More importantly, we will continue to work hard to deliver even better results in the coming quarters of the year, especially in Q3. Our company remains very well positioned for the future, with a seven-year high backlog of $21.1 billion, a strong $2.221 book to build in the first half of the year, steady progress in our operational and financial indicators, as well as a solid strategic plan.

Joe: More importantly, we will continue to work hard to deliver even better results in the coming quarters of the year.

Joe: In Q3.

Speaker Change: Our company remains very well positioned for the future with a seven year high backlog of 21 point to 1 billion a strong two quite two to one book to Bill in the first half of the year, a steady progress in our operational and financial indicators as well as is.

Speaker Change: Solid strategic plan is important to mention that the we were included in our Q3 backlog for defense the contracts for nine COVID-19, millennium silence within Netherlands, and Austria, and six shop at Tucano is ordered by Paraguay during the recent Farnborough.

Francisco Neto: It is important to mention that we will include in our Q3 backlog for defense the contracts for nine C-319 Millenniums signed with the Netherlands and Austria and six Super Tucanos ordered by Paraguay during the recent Farnborough Air Show in England. I would also like to give a special welcome to Mexicana de Aviación as a new operator of our E2 family, expanding the E2 presence in North America. We believe our recognized global jet family will help the airline generate great operational and financial results, with a strong commitment to sustainability and aviation efficiency.

Speaker Change: Air show in England, I would also like to give a special welcome to Mexicana via via stealing a new operator of our <unk> two family expanding D to present in North America, We believe our recognize that global judge family, we will help the airline generate great opera.

Francisco Neto: I would also like to give a special welcome to Mexicana de Aviación, as a new operator of our E2 family, expanding the E2 presence in North America. We believe our recognized global judge family will help the airline generate great operational and financial results, with a strong commitment to sustainability and aviation efficiency. And to finish, I would like to thank you all again for your interest and confidence in our company. We see bright and clear skies ahead for our company, and we will continue to work hard and embrace the foundation of our coach on, that is, safety first and quality dollars.

Speaker Change: Additional and financial results with a strong commitment to sustainability and aviation efficiency and Prefinished I'd like to thank you all again for your interest and confidence in our company, we see bright and clear skies ahead for our company and we will continue to work.

Francisco Neto: And to finish, I'd like to thank you all again for your interest and confidence in our company. We see bright and clear skies ahead for our company, and we will continue to work hard and embrace the foundation of our culture that is safety first and quality only. Now, we move to the Q&A session of the call.

Francisco Neto: And to finish, I would like to thank you all again for your interest and confidence in our company. We see bright and clear skies ahead for our company, and we will continue to work hard and embrace the foundation of our coach on, that is, safety first and quality dollars.

Speaker Change: Your heart and embrace the foundation of our culture that is safety first in quality orders, let's now move to the Q&A session of the call.

Unknown Executive: Let's now move to the Q&A session of the call. Well, now I start the question and answer session.

Unknown Executive: Let's now move to the Q&A session of the call.

Speaker Change: Well now start the question and answer session.

Operator: We will now start the question and answer session. The first part of the Q&A session will be exclusively for equity research analysts and investors.

Unknown Executive: Well, now I start the question and answer session.

Unknown Executive: The first part of the Q&A session will be exclusively for equity research, analysts, and ambassadors.

Speaker Change: The first part of the Q&A session will be exclusively for equity research analysts and investors.

Unknown Executive: The first part of the Q&A session will be exclusively for equity research, analysts, and ambassadors.

Unknown Executive: The second part of the Q&A will be only for the press.

Unknown Executive: The second part of the Q&A will be only for the press. Please, let me say a short announcement in Portuguese. To give everyone a chance to participate, we request that you ask just one question per call. Please hold while we collect questions.

Unknown Executive: The second part of the Q&A will be only for the press. We highlight again this conference call is being conducted in English with translation to Portuguese.

Joe: Part of the Q&A will be only for the price.

Unknown Executive: We highlight again this conference call is being conducted in English with translation to Portuguese. Please, let me say a short announcement for Portuguese speakers. This conference is being carried out originally in English. To hear the translation in Portuguese, press the button, interpretation of the platform, and selection in the language Portuguese. We request participants and interested in asking questions to press star then nine in the phone at any time or press the raise a hand button on the platform. When your name is announced, please press star, then six on the phone, or make sure your microphone is on and start your question.

Operator: The second part of the Q&A will be only for the press. We would like to remind you again that this conference call is being conducted in English with translation into Portuguese. Please, allow me to make a short announcement for Portuguese. This conference is being held in English. To listen to the translation in Portuguese, press the button Interpretation of the Platform and select the Portuguese language.

Joe: We highlight again this conference call is being conducted in English with translation to Portuguese.

Joe: Please let me say assure announcements for our Portuguese speakers.

Unknown Executive: Please, let me say a short announcement for Portuguese speakers. This conference is being carried out originally in English, to hear the translation in Portuguese, press the button, interpretation of the platform, and selection in the language Portuguese. We request participants and interested in asking questions to press star then nine in the phone at any time or press the raise a hand button on the platform. When your name is announced, please press star then six on the phone or make sure your microphone is on and start your question.

Dustin Lasalle: Ethical thing Dustin Lasalle is all about what is your domenici, England.

Unknown Executive: We will also answer questions sent via the platform chat. If you need assistance, please use the Q&A button on the platform. To give everyone a chance to participate, we request to ask just one question per call. Please hold while we collect questions.

Speaker Change: I don't see that type of thing, but to gas Smithsonian bottom decile that latter farmer is citizenry genre Portuguese.

Joe: We request participants interested and asking questions.

Operator: We request participants interested in asking questions to press star, then nine on the phone at any time or press the raise a hand button on the platform. When your name is announced, please press star, then six on the phone or make sure your microphone is on and start your question; they will also answer questions sent via the platform chat. If you need assistance, please use the Q&A button on the platform. To give everyone a chance to participate, we request that you ask just one question per call. Please hold while we collect questions. The first question comes from Kristine Liwag with Morgan Stanley. Please go ahead. Hi, good morning, Francisco, Antonio, and

Speaker Change: Press Star then nine.

Speaker Change: The phone at any time, our press to raise a hand button on the platform. When your name is announced please press Star then six on the phone or make sure. Your microphone is on in part your question.

Speaker Change: Well also answer your question sent via the platform chat.

Speaker Change: If you need assistance. Please use the Q&A button on the platform.

Speaker Change: To give everyone a chance to participate.

Joe: To ask just one question per call.

Joe: Please hold while we collect a question.

Christine D. Wags: The first question comes from Christine D. Wags with Morgan Stanley. Please go ahead.

Kristine <unk>: The first question comes from Kristine <unk> with Morgan Stanley. Please go ahead.

Victor Mizusaki: The first question comes from Christine D. Wags with Morgan Stanley. Please go ahead. Hi, good morning, Francisco. I'm Tonya and Keith. And thank you for the results for today. I guess my question is on the supply chain. You know, you're maintaining your 2024 full-year delivery guide for commercial aerospace. We're seeing some of the other manufacturers like Airbus lower the outlook for the year because of supply chain. Can you give more color regarding your confidence that you're able to meet these deliveries, what you're seeing in the supply chain, and maybe a little more color also on your approach in providing guidance.

Christine D. Wags: Hi, good morning, Francisco. I'm Tonya and Keith. And thank you for the results for today.

Speaker Change: Hi, Good morning, Francisco Undrawn Yankee.

Operator: Hi, good morning, Francisco, Antonio, and Guy. And thank you for the results today.

Unknown Executive: Hi, good morning, Francisco, Antonio, and Guy. And thank you for the results today.

Kristine <unk>: And thank you for the results for today.

Francisco Neto: I guess my question is on the supply chain. You know, you're maintaining your 2024 full-year delivery guide for commercial aerospace. We're seeing some of the other manufacturers, like Airbus, lower the outlook for the year because of supply chain. Can you give more color regarding your confidence that you're able to meet these deliveries, what you're seeing in the supply chain, and maybe a little more color also on your approach in providing guidance. Like, how conservative is the range that you gave for delivery for 2024? Thank you.

Unknown Executive: I guess my question is about the supply chain. You know, you maintain your 2024 full-year delivery guide for commercial aerospace. We're seeing some of the other manufacturers, like Airbus, lower the outlook for the year because of the supply chain. Can you give more color regarding your confidence that you're able to meet these deliveries? What you're seeing in the supply chain and maybe a little more color also on your approach to providing guidance, like how conservative is the range that you gave for delivery in 2024? Thank you.

Francisco Neto: I guess my question is about the supply chain. You know, you maintain your 2024 full-year delivery guide for commercial aerospace. We're seeing some of the other manufacturers, like Airbus, lower their outlook for the year because of the supply chain. Can you give more color regarding your confidence that you're able to meet these deliveries? What you're seeing in the supply chain and maybe a little more color also on your approach to providing guidance, like how conservative is the range that you gave for delivery in 2024? Thank you.

Kristine <unk>: Yes. My question is on the supply chain you know you maintained your 2020 for full year delivery guide.

Victor Mizusaki: Like, how conservative is the range that you gave for delivery for 2024? Thank you. You have a question? Well, as I mentioned in the opening, we are this year reinforcing our supply chain team. We are locating more people closer to the most critical suppliers to support them. We are having more senior management meetings with our suppliers, the critical ones, to make sure that we follow up the delivery of the parts we need for a year.

Speaker Change: For commercial aerospace.

Speaker Change: We're seeing some of the other manufacturers like Airbus lowered the outlook for the year because of supply chain can you give more color regarding your confidence that you are able to meet these deliveries what youre seeing in the supply chain and maybe a little more color also on your approach and provide.

Speaker Change: And guidance like how conservative is the range that you gave for delivery for 2024. Thank you.

Unknown Executive: You have a question?

Speaker Change: To your question.

Unknown Executive: Well, as I mentioned in the opening, we are, this year, reinforcing our supply chain team. We are locating more people closer to the most critical suppliers to support them. We are having more senior management meetings with our suppliers, the critical ones, to make sure that we follow up the delivery of the parts we need for a year. We are implementing new digital tools and also artificial intelligence to help us to be ahead of the problem. We have been, Kristine, very, very proactive with our suppliers in trying to be even closer to them, to help them, always in a very positive approach, as is the Embraer style. But again, we see challenges.

Francisco Neto: Well, as I mentioned in the opening, we are, this year, reinforcing our supply chain team. We are locating more people closer to the most critical suppliers to support them. We are having more senior management meetings with our suppliers, the critical ones, to make sure that we follow up the delivery of the parts we need for the year. We are implementing new digital tools and also artificial intelligence to help us, you know, to be ahead of the problem.

Francisco Neto: Well, as I mentioned in the opening, we are this year reinforcing our supply chain team. We are locating more people closer to the most critical suppliers to support them. We are having more senior management meetings with our suppliers, the critical ones, to make sure that we follow up the delivery of the parts we need for a year. We are implementing new digital tools, and also artificial intelligence to help us to be ahead of the problems. It has been very proactive with our suppliers, trying to be even closer to them to help them.

Speaker Change: Well as as I mentioned in the opening.

Speaker Change: This year I know reinforcing our supply chain team.

Speaker Change:

Speaker Change: Okay paying more people over here.

Speaker Change: The most critical suppliers, who support them.

Speaker Change: We are having more senior management meeting with our our supply of the critical ones.

Speaker Change: To make sure that we follow up the delivery of the parts we need for the year, we are implementing new digital tools.

Victor Mizusaki: We are implementing new digital tools, and also artificial intelligence to help us to be ahead of the problems. It has been very proactive with our suppliers, trying to be even closer to them to help them. I was in a very positive approach as there is no embroidery style. So, again, we see challenges, but at this point of time, we are confident that we will be able to deliver the guidance for the year. Great, thank you.

Speaker Change: And also artificial intelligence to help us to be ahead of the problems. It has being cassini very very proactive with our suppliers.

Francisco Neto: We have been, Kristine, very, very proactive with our suppliers in trying to be even closer to them, to help them, all within a very positive approach, the Embraer style. So again, we see challenges. But we, at this point in time, are confident that we'll be able to deliver the guidance for the year.

Speaker Change: Glad to be even closer to them to help them all within a very positive approach as the embraer.

Francisco Neto: I was in a very positive approach as there is no embroidery style. So, again, we see challenges, but at this point in time, we are confident that we will be able to deliver the guidance for the year.

Speaker Change: <unk> style, so again, we see challenges.

Speaker Change: But are we at this point of time, and we're confident that we will be able to deliver the guidance for the year.

Victor Mizusaki: Great, thank you. The next question comes from Victor Mizusaki with Pradezco D.B. Please go ahead.

Speaker Change: Great. Thank you.

Speaker Change: Christine.

Victor Mizusaki: The next question comes from Victor Mizusaki with Pradezco D.B. Please go ahead.

Speaker Change: The next question comes from Peter <unk> with Bradesco <unk>. Please go ahead.

Operator: The next question comes from Victor Mizusaki with Bradesco BBI. Please go ahead.

Operator: Hi, congrats on the quarter. I have two questions here. The first one, why don't we take a look at the margin of like 10% in the second quarter? I mean, this was something that these brown cotton margins were something that we were expecting for the second half. So my first question here is... Is there any chance that maybe Embraer will be providing guidance upward in the second half, or maybe we're talking about the high end of your guidance?

Speaker Change: Yes.

Speaker Change: Congrats for the quarter.

Speaker Change: Two questions here.

Speaker Change: First of all islands on a musical has gone up with no marginal blacktown for sales into solid all year long.

Speaker Change: I mean digital is something that will ramp up in margins all summing it up we are.

Speaker Change: <unk> for the second half.

Antonio Garcia: So, my first question here is, is there any chance that maybe Embraerview provides guidance up the works in the second half, or maybe we're talking about the high end of your guidance. And the second one, they have seen a lot of the news flowing Brazil about maybe Latin and global potentially place orders for the jets. So, my question is, can you give any of all around these negotiations and what sort of view for the regional additional markets? Thank you.

Speaker Change: So most of our sponsor here.

Speaker Change: Is there any chance that may be and Brian have you revised your guidance of works in the second half or maybe talk a ball <unk>.

Speaker Change: And also your guidance.

Operator: and uh, the second one, we have seen a lot of news flow in Brazil about maybe Latin America and ago potentially placing orders for the ejectors. So my question is, if you can give any comment on these negotiations and what your view is on the regional aviation market. Thank you.

Speaker Change: And the second one.

Speaker Change: We have seen a lot of southern Australia and Brazil.

Speaker Change: Walt maybe let Diana globe potentially place orders for the Jets. So my question is if you kind of give any color on these negotiations and whats your view for the original additional markets.

Unknown Executive: So my question is, if you can give any further updates on these negotiations and what your view is on the regional aviation market. Thank you.

Francisco Neto: Hi. Good day, Victor Antonio. I'm talking. Thank you for the comments and for the question. I will respond to the question.

Speaker Change: Alright.

Antonio Garcia: Good morning, Victor and Antonio speaking. Thank you for the comments and for the question. I will answer the question, and Francisco will answer the second question. About our margins...

Antonio Garcia: Good morning, Victor and Antonio speaking. Thank you for the comments and for the question.

Victor Anthony: Yeah Victor Anthony.

Antonio Garcia: Thank you. Hi. Good day Victor Antonio, I'm talking. Thank you for the comments and for the question. I will respond to the question. Francis will respond to the second question. Sorry, sorry for speaking Portuguese. About the B.T.D, margin for sure, the future. We have Santiago in that one time effect. We are confident in the our guidance. If it's in the mid or the high end of the guys, we need more one. One quarter to be more precise, but everything that we are seeing right now shows that today we are more closer to the high end of the guidance than the lower end.

Speaker Change: Regarding pellet comment that as we fill up our water it relies upon the FAA water Princess with him.

Francisco Neto: I will answer the question and Francisco will answer the second question. About our margins...uh, about the BTDA margin, for sure, in Q2, we have some tailwind that's a one-time effect. We are confident in our guidance, but if it's in the mid or the high end of the guidance, we need more one. One quarter to be more precise, but everything that we are seeing right now shows that today we are more closer to the high end of the guidance than the lower end. That's from the BTDA side, and I will hand over to Francisco for Latin issues. Thank you, Victor, for the questions.

Antonio Garcia: Francis will respond to the second question. Sorry, sorry for speaking Portuguese. About the B.T.D. margin for sure, the future. We have Santiago in that one time effect. We are confident in the our guidance. If it's in the mid or the high end of the guys, we need more one. One quarter to be more precise, but everything that we are seeing right now shows that today we are more closer to the high end of the guidance than the lower end. That's from the B.T.D.A.

Speaker Change: Ill say wound up at one of them.

Tobey: Tobey as Marcel Martin.

Speaker Change: Sorry, sorry speaking Barclays.

Speaker Change: Yeah.

Speaker Change: About the EBITDA margin for sure in the future.

Speaker Change: We have some tailwind this one time effect.

Speaker Change: We are.

Speaker Change: Confidence in the the our guidance is in the mid or the high end of the guidance, we need more of one one.

Speaker Change: One quarter to be more precise, but everything that we're seeing right now shows that.

Francis: Today, we are more closer to the high end of the guidance than the lower end that from the <unk> side, then I will hand over to Francis for Los Angeles.

Francisco Neto: That's from the B.T.D.A, side and you hand over to Francis for Latin issues. Thank you Victor for the questions. At this point, we are talking to a lot of customers about e2 opportunities. I don't have anything concrete about Brazilian customers to share with you. But what I can say is that we see a great opportunity to include the e2 presence in Brazil. As we are very confident that he's just our perfect fit for the Brazilian market. It can help the airlines not only Brazil, but everywhere to add the capacity quickly to the athletes. Thank you.

Francisco Neto: side, and you hand over to Francis for Latin issues. Thank you, Victor, for the questions. At this point, we are talking to a lot of customers about e2 opportunities. I don't have anything concrete about Brazilian customers to share with you. But what I can say is that we see a great opportunity to include the e2 presence in Brazil. As we are very confident that he's just our perfect fit for the Brazilian market. It can help the airlines not only Brazil, but everywhere, to add the capacity quickly to the athletes.

Francisco Neto: Thank you, Victor, for the questions. At this point, we are talking to a lot of customers about E2 opportunities. I don't have anything concrete about Brazilian customers to share with you, but what I can say is that we see a great opportunity to increase the E2 presence in Brazil, as we are very confident that E-Jets are a perfect fit for the Brazilian market and can help the airlines, not only in Brazil but everywhere, to add capacity quickly to the air fleet.

Operator: Thank you, Victor, for the questions. You know, at this point, we are talking to a lot of customers about E2 opportunities. I don't have anything concrete about Brazilian customers to share with you, but what I can say is that we see a great opportunity to increase the E2 presence in Brazil, as we are very confident that E jets are a perfect fit for the Brazilian market and can help, you know, the airlines, not only in Brazil but everywhere, to add capacity quickly to the air fleet.

Francis: Thank you for the questions.

Francis: At this point that we're talking to to a lot of our customers.

Speaker Change: <unk>.

Speaker Change: The two opportunities I don't have it.

Speaker Change: Anything concrete.

Speaker Change: Our Brazilian customers to share with you, but what I can say is that we see a great opportunity to increase data are presented and Brazil. As we are very confident that as yet.

Speaker Change: There are a perfect fit for the Brazilian market and can help and all of the airlines not only Brazil, but everywhere to add capacity quickly to their fleet.

Speaker Change: Yes.

Speaker Change: Yeah.

Marcelo Mata: Thank you. The next question comes from Marcelo Mata with JP Morgan. Please go ahead.

Speaker Change: Thank you.

Speaker Change: The next question comes from Marcelo Motta with Jpmorgan. Please go ahead.

Marcelo Motta: The next question comes from Marcelo Mata with JP Morgan. Please go ahead. Hi everyone. Thanks for taking the question. I'll keep to just one question.

Operator: The next question comes from Marcelo Motta with J.P. Morgan. Please go ahead.

Antonio Garcia: Hi everyone. Thanks for taking the question. I'll keep to just one question. Can you comment a little bit about the defense revenue outlook for the second half? I know it is a percentage of completion. You still have, if I'm not mistaken, another three cases to be delivered this year. And the revenue have a very good increase both on a quarter of a quarter and year over your basis. So can we expect the defense revenues to continue to accelerate throughout the second half? And I mean could the driver be also the super token of order, which probably could be delivering the short term since the production is a little bit more simple.

Marcelo Motta: Hi, everyone. Thanks for taking the question.

Unknown Executive: Hi, everyone. Thanks for taking the question. I'll keep to just one question.

Operator: Hi everyone, thanks for taking the question. I'll keep to just one question.

Marcelo Motta: I'll keep to just one question I mean can you comment a little bit about the the defense revenue results look for second half Pheno INO eight eight percentage of completion, you still have economic thinking in other <unk> to be delivered this year and the revenues have a very good increase both on a quarter over quarter in <unk>.

Unknown Executive: I mean, can you comment a little bit about the defense revenues outlook for the second half? You know, I know it is the percentage of completion, you still have, if I'm not mistaken, another three cases to be delivered this year, and the revenues have shown a very good increase both on a quarter over quarter and year over year basis. So can we expect the defense revenues to continue to accelerate throughout the second half? And, I mean, could the driver also be the Super Tucano order, which, you know, probably could be delivering in the short term since the production is a little bit more simple?

Antonio Garcia: I mean, can you comment a little bit about the defense revenues outlook for the second half? You know, I know it is the percentage of completion, you still have, if I'm not mistaken, another three cases to be delivered this year, and the revenues have shown a very good increase both on a quarter over quarter and year over year basis. So can we expect the defense revenues to continue to accelerate throughout the second half? And I mean, could the driver also be the Super Tucano order, which, you know, probably could be delivering in the short term since the production is a little bit more simple?

Antonio Garcia: Can you comment a little bit about the defense revenue outlook for second half? I know it is a percentage of completion. You still have, if I'm not mistaken, another three cases to be delivered this year. And the revenue have a very good increase both on a quarter of a quarter and year over your basis. So can we expect the defense revenues to continue to accelerate throughout the second half? And I mean could the driver be also the super token of order, which probably could be delivering the short term since the production is a little bit more simple.

Speaker Change: Year over year basis. So can we expect the defense revenues to continue to accelerate throughout the second half and I mean could the driver be also the super Tucano harder, which probably could be delivering the short term since the production a little bit more simple and what are the other components of the defense revenue in the quarter also.

Unknown Executive: And what are the other components of the defense revenues that could, you know, also increase and accelerate? So the full year revenues for defense could be, you know, maybe closer to 600, 700 million dollars. Thank you.

Antonio Garcia: And what are the other components of the defense revenues that could, you know, also increase and accelerate? So the full year revenues for defense could be, you know, maybe closer to 600, 700 million dollars. Thank you.

Antonio Garcia: And what are the other components of the defense revenues that could also increase and accelerate? So the two-year revenues for the defense could be maybe closer to $600, $700 million.

Antonio Garcia: And what are the other components of the defense revenues that could also increase and accelerate? So the two year revenues for the defense could be maybe closer to $600, $700 million. Thank you. Thanks, Marcelo. It's Antonio speaking here, and thanks for the answer. I'll read your question. We do see the fence around 600 minutes a year, with the delivers for the city, 390. We are confident to deliver for this year. I would say next week, we are going to deliver the second one.

Speaker Change: Inquiries and after the rates of the the full year revenues for defense could be maybe closer to 600 or $700 million. Thank you.

Unknown Executive: Thank you.

Speaker Change: Thanks, Marcella as Anthony speaking thanks for answer already on your question.

Unknown Executive: Thanks, Marcelo.

Antonio Garcia: Marcelo, this is Antonio speaking, and thanks for already answering your question. We do see the fence at around 600 million this year. With the deliveries for the C390, we are confident of delivering more this year. I would say next week we are going to deliver the second one. I would say we are confident in that. And the order for the super token is It's come at the right time, the right point, because a big portion of the aircraft are ready. Now, inventory means it's going to go on top for the second quarter of the Super Tournament for Paraguay. That's if put all together, we do see a decline here around 600 million for this year. Perfect.

Antonio Garcia: It's Antonio speaking here, and thanks for the answer. I'll read your question. We do see the fence around 600 minutes a year, with the delivers for the city, 390. We are confident to deliver for this year. I would say next week, we are going to deliver the second one. We are confident to bet, and the order for the Super Tukam has come at the right time and the right point, because a big portion of the aircraft is ready. No inventory means is going to go on top for the second quarter of the Super Tukam is for Paraguay.

Speaker Change: The we do see defense around 600 million this year.

Speaker Change: We did de lever for the C. 390, we are confident to deliver target here I would say.

Speaker Change: Next we're next week, Greg going to dilute the second one the I would say we are confident to met.

Antonio Garcia: We are confident to bet, and the order for the Super Tukam is come to the right time and the right point, because big portion of the aircraft, they are ready. No inventory means is going to go on top for the second quarter of the Super Tukam is for Paraguay. That's it. Put all together. We do see this fence here around 600 minutes. Paraguay here.

Speaker Change: The order for the Super Tucano is come to the right timing the right points because big portion for the aircraft. They already know inventory means is going to go on top for the second quarter the Super Tucano Paraguay.

Unknown Executive: It's come to the right time, the right point, because a big portion of the aircraft are ready now. Inventory means it's going to go on top for the second quarter of the Super Tournament for Paraguay. That's it put all together. We do see a decline here around 600 million for this year. Perfect.

Antonio Garcia: That's it. Put all together. We do see this fence here around 600 minutes. Paraguay here.

Speaker Change: Put all together, we do see defense here around $600 million sorry to here.

Speaker Change: Perfect. Thank you very much.

Unknown Executive: Perfect, thank you very much.

Speaker Change: Okay.

Lucas Barbosa: The next question comes from Lucas Barbosa with Santander. Please go ahead. Hi, good morning.

Speaker Change: The next question comes from Lucas Barbosa with Santander. Please go ahead.

Lucas Barbosa: The next question comes from Lucas Barbosa with Santander. Please go ahead. Hi. Good morning, Francisco, Antonio, Gui. Thank you very much for taking my question and congratulations on the result.

Operator: Perfect. Thank you very much. The next question comes from Lucas Barbosa with Santander. Please go ahead. Hi, good morning, Francisco, Antonio, Gui. Thank you very much for taking my question and congratulations on the results. I just wanted to know if you could provide more color on the one-time items that affected EBIT margin by around 250 basis points.

Lucas Barbosa: The next question comes from Lucas Barbosa with Santander. Please go ahead. Hi, good morning.

Lucas Barbosa: Hi, Good morning Francisco <unk>. Thank you very much for taking my question and congratulations for the results.

Unknown Executive: Perfect. Thank you very much. Hi, Francisco, Antonio, Gui. Thank you very much for taking my question and congratulations on the results. I just wanted to know if you could provide more color on the one-time items that affected the margin slightly by around 250 basis points.

Operator: The next question comes from Lucas Barbosa with Santander. Please go ahead. Hi, good morning, Francisco, Antonio, Gui. Thank you very much for taking my question and congratulations on the result. I just wanted to know if you could provide more color on the one-time items that affected the margin slightly by around 250 basis points. So if you can provide just some details, if it's just one item, if it's more than one item, what's the nature of it? That would be very helpful. Thank you very much. I look as good morning.

Lucas Barbosa: I'm Francisco Antonio Gui. Thank you very much for taking my question, and congratulations for the results. I just wanted to know if you provide more color on the one-time items that affected a bit margin by around 250 basis points. So if you can provide just some details, if it's just one item, if it's more than one item, what's the nature of it that would be very helpful. Thank you very much.

Antonio Garcia: I'm Francisco Antonio Gui. Thank you very much for taking my question and congratulations for the results. I just wanted to know if you provide more color on the one-time items that affected a bit margin by around 250 basis points. So if you can provide just some details, if it's just one item, if it's more than one item, what's the nature of it that would be very helpful. Thank you very much. Hi, Lucas.

Lucas Barbosa: I just wanted to know if you can provide more color on the one time items.

Speaker Change: That affected the EBIT margin by around 250 basis points. So if you can provide.

Speaker Change: Just some details if it's just one item Mr. Martin one item whats the nature of it that would be very helpful. Thank you very much.

Antonio Garcia: Hi, Lucas. Good morning. Thanks for the question. There are a few items that impacted the order, but I would say by far the biggest one were tax credits that helped us improve the margins by about 250 basis points. So if you school that, the margin would be closer to 7% or slightly under than that. Perfect.

Mr. Martin: I look as good morning, and thanks for the question. There are a few items that impacted the order, but I would say by far the biggest one more tax credits.

Operator: Thanks for the question. There are a few items that impacted the order, but I would say by far the biggest one were tax credits that helped us improve the margin by about 250 basis points. So if you exclude that, the margin would be closer to 7% or slightly under that.

Antonio Garcia: Good morning. Thanks for the question. There are a few items that impacted the order, but I would say by far the biggest one were tax credits that helped us improve the margins by about 250 basis points. So if you school that, the margin would be closer to 7% or slightly under than that. Perfect. Thank you very much. Have a great day.

Speaker Change: Help us improve the margins by about 250 basis points. So if you exclude that.

Speaker Change: The margin will be closer to 7% of those might say other than that.

Speaker Change: Perfect. Thank you very much have a great day.

Operator: Perfect. Thank you very much. Have a great day. The next question comes from Ron Epstein with Bank of America. Please go ahead.

Unknown Executive: Thank you very much.

Unknown Executive: Have a great day.

Speaker Change: Sure.

Ron Epstein: The next question comes from Ron Epstein with Bank of America. Please go ahead.

Ron Epstein: The next question comes from Ron Epstein with Bank of America. Please go ahead. Hey, good morning, guys. Maybe if you could circle back on, we had a question about interest from airlines in Brazil, but maybe more broadly after FarmBrow stepping away from that. Can you maybe give more characterization a little color on what you're hearing from customers, how sales campaigns are going? To be honest, I was expecting to hear a little bit more in terms of orders for commercial airplanes at FarmBrow.

Speaker Change: The next question comes from Ron Epstein with Bank of America. Please go ahead.

Ron Epstein: Hey, good morning, guys. Maybe if you could circle back on, we had a question about interest from airlines in Brazil, but maybe more broadly after FarmBrow stepping away from that. Can you maybe give more characterization, a little color on what you're hearing from customers, how sales campaigns are going?

Ron Epstein: Hey, good morning, guys.

Ron Epstein: Maybe if you could circle back on.

Ron Epstein: Question about.

Speaker Change: Interest from airlines in Brazil, but maybe more broadly.

Speaker Change: After Farnborough stepping away from that can you maybe give more characterization a little color on what youre hearing from customers how sales campaigns are going.

Francisco Neto: To be honest, I was expecting to hear a little bit more in terms of orders for commercial airplanes at FarmBrow. Where do we stand on that, and what's the outlook for maybe the rest of the year and to next year?

Speaker Change: No to be honest I was expecting to hear a little bit more in terms of orders for commercial airplanes at Farnborough, but where do we stand on that.

Ron Epstein: Where do we stand on that and what's the outlook for maybe the rest of the year and to next year? Thank you, Ron. Thank you for speaking. Thanks for for the question. I mean, we had a good start this year. If you look at the glass, you have full. We had a good start this year with orders in commercialization with American lines and Mexican. And we are working in a lot of sales campaigns.

Speaker Change: Or what's your outlook for maybe the rest of the year into next year.

Rong fiscal: Hello, Thank you Rong fiscal speaking thanks for the question.

Francisco Neto: Hello. Thank you, Ram. Francisco speaking. Thanks for the question.

Unknown Executive: Thank you, Ron.

Francisco Neto: Thank you for speaking. Thanks for for the question. I mean, we had a good start this year. If you look at the glass, you have full. We had a good start this year with orders in commercialization with American lines and Mexican. And we are working in a lot of sales campaigns. Basically all the regions in the world. So we expect we are confident that we will bring a good news soon about the new orders and we have a good expectation for Q3 and the rest of the year as well. So again, we will be here for, we will be living here for a very good chance to fuel our production loads for the years ahead in line with our strategic plan.

Speaker Change: We had a good start to this year, if you look at the glass half full rather good start this.

Unknown Executive: I mean, we had a good start this year. If you look at the glass half full, we had a good start this year with orders for commercial aviation with American lines and Mexicana. And we are working on a lot of sales campaigns. I mean, in all, you know, basically all the regions in the world.

Francisco Neto: I mean, we had a good start this year. If you look at the glass half full, we had a good start this year with orders for commercial aviation with American Airlines and Mexicana. And we are working on a lot of sales campaigns. I mean, in all, you know, basically all the regions in the world.

Speaker Change: This year with the orders in commercial aviation with American lines and <unk> Mexicana.

Speaker Change: And we are we are working you know in a in a lot of sales campaigns.

Rong fiscal: Oh, you know basically all the regions in the world. So we we expected we are confident that we will we will bring the good news soon about the new orders and we have a good expectation for whether for Q3 and the rest of the year as well. So again, we have we believe we will have.

Ron Epstein: Basically all the regions in the world. So we expect we are confident that we will bring a good news soon about the new orders and we have a good expectation for Q3 and the rest of the year as well. So again, we will be here for, we will be living here for A very good chance to fuel our production loads for the years ahead in line with our strategic plan. Great.

Unknown Executive: So we expect, we are confident that we will bring good news soon about the new orders, and we have good expectations for Q3 and the rest of the year as well. So again, we have, we believe we have a very good chance to fill our production slots for the years ahead in line with our strategic plan.

Unknown Executive: Thank you.

Francisco Neto: So we expect, we are confident that we'll bring you good news soon about the new orders, and we have good expectations for Q3 and the rest of the year as well. So again, we have, we believe we have a very good chance to fill our production slots for the years ahead in line with our strategic plan.

Speaker Change: Uh huh.

Speaker Change: Very good chance to fill our production slots for them for the years ahead in line with our strategic plan.

Unknown Executive: Great. Thank you.

Speaker Change: Great. Thank you.

Stephen Trent: The next question comes from the view Q&A chat, and it's from Stephen Trent with City Bank. Many thanks, gentlemen. Can you provide some color on what you're seeing in the competitive environment for business chats?

Speaker Change: The next question will come from.

Stephen Trent: The next question comes from the view Q&A chat and it's from Stephen Trent with City Bank. Many thanks gentlemen. Can you provide some color on what you're seeing in the competitive environment for business chats?

Francisco Neto: The next question comes from the VIEW Q&A chat, and it's from Stephen Trent with Citibank. Many thanks, gentlemen. Can you provide some color on what you're seeing in the competitive environment for BusinessJet? Is it possible that lower interest rates could support small and mid-cabin sales?

Speaker Change: The few Q&A chat.

Speaker Change: And it's from Stephen Trent with Citi Bank.

Francisco Neto: Thank you.

Unknown Executive: Many thanks, gentlemen. Can you provide some color on what you're seeing in the competitive environment for BusinessJet?

Stephen Trent: Many thanks, gentlemen, can you provide some color on what youre seeing in the competitive environment for business Jets.

Unknown Executive: Is it possible that lower interest rates could support small and mid-cabin sales? Thank you.

Antonio Garcia: Is it possible that lower interest rates could support small and mid-cabin sales? Thank you. We see it for the question, actually, we still see a stronger interest in our business management project portfolio. So we are looking at all the four models very well in line with our expectations. And we are now over-challenged to be honest with you, and the business management is more to run path production levels and deliveries than the sales. I think the sales continue to be strong, as I said. We are very optimistic about the not only sales, but the delivery and growth of our business chat business in the next years. Thank you.

Stephen Trent: Is it possible that lower interest rates could support small and mid cabin sales. Thank you.

Stephen Trent: Yeah.

Unknown Executive: Yeah, thank you, Steve, for the question. Actually, we still see a strong interest in our business agenda. Product Portfolio. So we are selling all the four models very well, in line with our expectations. And we are now; our challenge, to be honest with you, in the business jet market, is more to ramp up production levels and deliveries than sales. I think the sales continue to be strong, as I said. We are very optimistic about not only sales but the deliveries and growth of our business jet business in the coming years.

Francisco Neto: Yeah, thank you, Steve, for the question. Actually, we still see a strong interest in our business agenda. Product Portfolio. So we are selling all the four models very well, in line with our expectations. And we are now; our challenge, to be honest with you, in the business jet is more to ramp up production levels and deliveries than sales. But I think the sales continue to be strong, as I said. We are very optimistic about not only sales but the deliveries and growth of our business jet business in the coming years.

Speaker Change: Thank you Steve for the question.

Unknown Executive: We see it for the question; actually, we still see a stronger interest in our business management project portfolio. So we are looking at all the four models very well in line with our expectations.

Speaker Change: We still see a strong interest in our business yet.

Robert: Robert portfolio.

Kelly: Kelly you know all the other four models.

Speaker Change: Well in line with our expectations and Oh, we are now our challenge to be honest with you in the business. Yet. This is north will ramp up production levels and deliveries then the sales.

Unknown Executive: And we are now over-challenged, to be honest with you, and the business management is more to run path production levels and deliveries than the sales. I think the sales continue to be strong, as I said.

Robert: I think this is continued to be strong as I said, we are very optimistic about the not only sales, but the deliveries and the growth of our business jet business in the next few years.

Unknown Executive: We are very optimistic about the not only sales, but the delivery and growth of our business chat business in the next years. Thank you.

Speaker Change: Thank you.

Noah Poponak: The next question comes from Noah Poponek with Goldman Sachs. Please go ahead. Hey, good morning, everyone. Can you hear me? Get it.

Operator: The next question comes from Noah Poponak with Goldman Sachs. Please go ahead.

Noah Poponak: The next question comes from Noah Poponak with Goldman Sachs. Please go ahead.

Noah Poponak: The next question comes from Noah Poponek with Goldman Sachs. Please go ahead. Hey, good morning, everyone. Can you hear me? Get it. Okay, great.

Noah <unk>: Next question comes from Noah <unk> with Goldman Sachs. Please go ahead.

Noah: Hey, good morning, everyone can you hear me.

Operator: Hey, good morning, everyone. Can you hear me? Okay, great.

Noah: Yes.

Noah Poponak: Okay, great.

Speaker Change: Okay great.

Speaker Change:

Operator: Um... On the margins, the reiteration of the six and a half to seven and a half percent for the full year adjusted operating margin. Just want to clarify if that's including or excluding the items you listed as kind of one-time for 2Q. And, you know, maybe put another way, I guess, you know, to be at the midpoint or the high end of that for the full year, the margins would have to be down year over year in the back half. Do you expect margins to be down year over year in the back half?

Noah Poponak: On the margins, the reiteration of the six and a half to seven and a half percent for the full-year adjusted operating margin, just want to clarify if that's including or excluding the items you listed as kind of one time for two queue. And maybe put a different way, I guess, you know, to be at the midpoint or the high end of that for the full year, the margins would have to be down year-over-year in the back half. Do you expect margins down year-over-year in the back half?

Speaker Change: On the margins be the reiteration of the six 5% to seven 5% for the full year adjusted operating margin.

Antonio Garcia: On the margins, the reiteration of the six and a half to seven and a half percent for the full-year adjusted operating margin, just want to clarify if that's including or excluding the items you listed as kind of one time for two queue. And maybe put a different way, I guess, you know, to be at the midpoint or the high end of that for the full year, the margins would have to be down year-over-year in the back half.

Speaker Change: Wanted to clarify effects, including or excluding the.

Speaker Change: The items you listed as kind of one time for <unk>.

Speaker Change: And.

Speaker Change: Maybe put a different way I guess to be at the midpoint or the high end of that for the full year. The margins would have to be down year over year in the back half.

Unknown Executive: Do you expect margins to be down year over year in the back half?

Antonio Garcia: Do you expect margins down year-over-year in the back half? Thanks, Noah, for the nice questions. I'm going to speak here for sure. If you take the one time and edit on top of the guy, the for sure we could be even higher, but assuming that we are in this volatile situation and supply chain, we prefer to not raise the guys today, but today we are at the high end and we are not planning to rate those margins for the coming quarters in the opposite.

Speaker Change: Do you expect margins down year over year in the back half.

Speaker Change: Thanks, Noah for the nice questions I'm trying to speak here for sure.

Antonio Garcia: Thanks, Noah, for the nice questions.

Antonio Garcia: Thanks, Noah, for the nice questions. Antonio will speak here, for sure. If you take this one time and add it on top of the guidance, for sure, we could be even higher. Assuming that we are in this volatile situation in the supply chain, we prefer not to raise the guidance today. But today we are at the high end, and we are not planning to reduce margins for the coming quarters, and the opposite. But what we try to avoid with the math we did is that you take the 9% margin from Q3, Q2, and move forward for the next quarter.

Antonio Garcia: I'm going to speak here for sure. If you take the one time and edit on top of the guy, the for sure we could be even higher, but assuming that we are in this volatile situation and supply chain, we prefer to not raise the guys today. But today we are at the high end and we are not planning to rate those margins for the coming quarters in the opposite. But what we try to avoid with the math we did is that you take the 9% margin from queue three, queue two, and move forward for the next quarter.

Speaker Change: If you take the one time in added on top of the guidance for sure which would be even higher but.

Speaker Change: I mean that we are in this volatile situations supply chain, we've referred to.

Speaker Change: Not raise the guidance.

Speaker Change: But today, we are in the eye and then we.

Speaker Change: We are not planning to reduce mired here for the coming quarters and the opposite but what we've tried to outline the way. The math. We did is that <unk> taken a 9% margin for them.

Antonio Garcia: But what we try to avoid with the math we did is that you take the 9% margin from queue three, queue two, and move forward for the next quarter. It's going to be a little bit higher lower, but not in the magnitude that we are going to be even below previous year, means in the nutshell, yes, we are closer to the high end and it should be able to get all aircrafts out of the door, probably have a chance for up side. Then we want to do this.

Antonio Garcia: It's going to be a little bit higher or lower, but not by the magnitude that we are going to be even below the previous year's means, in a nutshell. Yes, we are closer to the high end. And if you are able to get all aircraft out of the door, you probably have a chance for upside. Then we want to do this. Probably I'm going to review the guidance already in Q3, when you announce the closing for Q3. Well, let's see. It depends on several facts.

Speaker Change: In Q3, Q2 and move forward for the next quarter is going to be a little bit higher or lower but not in the magnitude of that.

Antonio Garcia: It's going to be a little bit higher lower, but not in the magnitude that we are going to be even below previous year, means in the nutshell, yes, we are closer to the high end and it should be able to get all aircrafts out of the door, probably have a chance for up side.

Speaker Change: We're going to be even below previous year means in a nutshell, yes, we are closer to the high end and if you are able to get all aircrafts out of the door probably have a chance for upside there.

Noah Poponak: Then we want to do this. I'm probably going to review the guy just already Q3, when you announce the quality for Q3. Well, let's see the pinch on several effects. Okay, that makes sense. That's helpful. And Antonio, I guess, you know, I feel like I have a sense for what the progression of the commercial margin could be from here. You know, Executive has been kind of just solid for a while now; services reasonably straightforward. I guess the defense margin, you know, has been pretty volatile. Well, through the quarters, used to be kind of high single digits on an annual basis.

Speaker Change: And we want to do this.

Speaker Change: Probably I'm going to review the guidance already in Q3, when you announced the quality for Q3.

Antonio Garcia: I'm probably going to review the guy just already Q3, when you announce the quality for Q3. Well, let's see, the pinch on several effects. Okay, that makes sense. That's helpful. And Antonio, I guess, you know, I feel like I have a sense for what the progression of the commercial margin could be from here, you know, Executive has been kind of just solid for a while now, services reasonably straightforward. I guess the defense margin, you know, has been pretty volatile.

Speaker Change: It depends on several effects.

Speaker Change: Okay that makes sense, that's helpful and Antonio I guess.

Operator: Okay, that makes sense. That's helpful.

Unknown Executive: Okay, that makes sense. That's helpful.

Antonio Garcia: And Antonio, I guess... You know, I feel like I have a sense for what the progression of the commercial margin could be from here, you know, executive has been kind of just solid for a while now, services reasonably straightforward. I guess the defense margin, you know, has been pretty volatile through the quarters, used to be kind of high single digits on an annual basis. It's now mid single digits. I guess as you ramp up Casey 390 with, you know, different customers. And the mix is changing, I guess. How should we be? Well, what should we be expecting for the kind of medium-term progression in that defense market?

Antonio: You know I feel like I have a sense for what the progression of the commercial margin could be from here and our executive has been kind of a solid for a while now services reasonably straightforward.

Unknown Executive: And Antonio, I guess... I guess the defense margin, you know, has been pretty volatile through the quarters. And the mix is changing, I guess.

Speaker Change: I guess the defense margin has been pretty volatile through the quarters used to be kind of high single digits on an annual basis, It's now mid single digits.

Antonio Garcia: Well, through the quarters, used to be kind of high single digits on an annual basis. It's now mid single digits. I guess as you ramped KC 390 with, you know, different customers and the mix is changing. I guess, how should we be, well, what should we be expecting for the kind of medium term progression in that defense margin. Thanks for the question. We are, I would say in an inflection point right now, when the defense margin means the magnitude of the local contracts is being, I would say, well, feel it right now with a new content for export.

Antonio Garcia: It's now mid single digits. I guess as you ramped KC 390 with, you know, different customers and the mix is changing. I guess, how should we be, well, what should we be expecting for the kind of medium-term progression in that defense margin.

Speaker Change: I guess as you ramp the KC 390 with.

Speaker Change: Different customers and the mix is changing I guess.

Speaker Change: How should we be well what should we be expecting for the kind of medium term progression in that defense margin.

Antonio Garcia: Thanks for the question.

Speaker Change: Thanks for the question.

Antonio Garcia: Thanks for the question. We are, I would say, in an inflection point right now, and the defense margin means the magnitude of the local contract is being, I would say, Well, right now we have a new contract for export, and we do see this year something like a mid-year me to do it smartly for this year, but moving, I would say, very fast for higher or even lower teams for the next year.

Antonio Garcia: We are, I would say, in an inflection point right now, when the defense margin means the magnitude of the local contracts is being, I would say, well, feel it right now with a new content for export. And we do see this year, something like needs, needs to be smarty for this year, but moving, I would say, very fast for higher on even lower teams for the next year. That's more or less the progression. You see, based on the new contract that we are just signing right now today, if you see here today, it has been very highly impacted by still the Brazilian contract here.

Antonio Garcia: And we do see this year, something like needs, needs to be smarty for this year, but moving, I would say, very fast for higher on even lower teams for the next year. That's more or less the progression. You see, based on the new contract that we are just signing right now today, if you see here today, it has been very highly impacted by still the Brazilian contract here. With this move from local corners to export, we, we do see this projection from the single digital rules, higher single digital routines. That's more or less, how do you see the fence right now with on top of it with revenue growth both together.

Speaker Change: I would say nine inflection point direct in Ireland.

Margie: Defense Margie means.

Margie: The magnitude of the local contracts.

Speaker Change: Is being I would say.

Speaker Change: Well, Phil it's not right now with the new quarter for export and we do see easier.

Antonio Garcia: Okay, great. Thank you.

Speaker Change: Something like meat.

Unknown Executive: Media Day, it's Marley for this year, but moving, I would say, very fast for higher or even lower teams. For the next year, that's more or less the production. Let's see, based on the new contract that we are just signing.

Speaker Change: It's Marty for easier, but moving I would say very fast for a higher or even lower teens. Further next year, that's more or less the protection and fee based on the new contract that we are just.

Antonio Garcia: That's more or less the projection you see based on the new contract that we are just signing right now. Today, if you look here to date, it has been very highly impacted by the Brazilian contract here. With this move from local contracts to export, we do see this projection from mid-single-digit lower to higher single-digit lower things. That's more or less how we see defense right now, on top of it with revenue growth, both together.

Speaker Change: Signing right now today, if you see year to date it has been very highly impacted by.

Speaker Change: The Brazilian contract here with this move around local contents to export we do see this projection from mid single to Aurora are higher single D Star Lorde Kings, that's more or less how do you see defense retina with.

Antonio Garcia: With this move from local corners to export, we do see this projection from the single digital rules, higher single digital routines. That's more or less, how do you see the fence right now with on top of it with revenue growth both together. Okay, great.

Speaker Change: On top of it with revenue growth whilst together.

Speaker Change: Okay, great. Thank you.

Speaker Change: Thank you.

Gabriel Rezende: The next question comes from Gabriel, who is angry with it all DBA; please go ahead. Hi, good morning, Francisco Antonio and Guy, and congrats on the results. I would like to make touch on one point regarding the commercial division and whether do you think that will be fair for us to assume that, given the ongoing supply chain crisis across the globe in the industry. Prices in this industry could benefit the commercial division. What should maybe translate into even higher margins for the commercial division in the future. Thanks.

<unk>, Zhang: The next question comes from <unk>, Zhang with E Town DPA.

Operator: Okay, great. Thank you. Thank you. The next question comes from Gabriel Rezende with Ita BPA. Please go ahead. Hi, good morning, Francisco, Antonio, Yngwie, and congratulations on.

Gabriel Rezende: The next question comes from Gabriel has angry with it all DBA, please go ahead. Hi, good morning, Francisco Antonio and Guy and congrats on the results. I would like to make touch on one point regarding the commercial division and whether do you think that will be fair for us to assume that given the ongoing supply chain crisis across the globe in the industry. Prices in this industry could benefit the commercial division. What should maybe translate into even higher margins for the commercial division in the future.

Speaker Change: Please go ahead.

Speaker Change: Okay.

Speaker Change: Hi, Good morning, Francisco Antonio <unk> and congrats on the results.

Operator: The next question comes from Gabriel Rezende with Ita BPA. Please go ahead. Hi, good.

Speaker Change: I would like to make.

Speaker Change: One point regarding the commercial division and whether do you think that will be fair for us to assume that given the ongoing supply chain crisis across the globe in the industry.

Speaker Change: Prices in this industry could benefit the commercial division.

Speaker Change: What should maybe translate into even higher margins for the commercial division in the future. Thanks.

Francisco Neto: Hello, Gabriel. Thanks, Francisco speaking. Thanks for for the question. I mean, our commercial division has been, despite the low volumes in the past year, profitable. And you see that even the results of this Q2 was very positive for the commercial commercial division. And we see opportunities to improve, improve even further with the, you know, the volume volumes growing. And we are also working internally in, you know, in the other piano drivers, like, you know, the prices and especially, you know, in cost reduction programs. So again, we do believe that the margins of the commercial division.

Speaker Change: Hello, Gabriel Thank expresses speaking thanks for the question.

Francisco Neto: Well, Gabriel, thank you, Francisco speaking. Thanks for the question. We will continue to be positive, right, and... for this year and the next year as well. That's very clear, thank you.

Francisco Neto: Well, Gabriel, thank you, Francisco speaking. Thanks for the question.

Francisco Neto: Thanks. Hello, Gabriel. Thanks Francisco speaking. Thanks for for the question. I mean, our commercial division has been despite the low volumes in the past year has been profitable. And you see the even the results of this Q2 was was very positive for the commercial commercial division. And we see opportunities to improve, improve even further with the, you know, the volume volumes growing. And we are also working internally in, you know, in the other piano drivers, like, you know, the prices and especially, you know, in cost reduction programs. So again, we do believe that the margins of the commercial division. We will continue to be positive, right? And let's say, middle, single, single digits. And for this year and next year as well.

Unknown Executive: That's very clear.

Unknown Executive: Thank you.

Francisco Neto: I mean, our commercial division has been profitable despite the low volumes in the past year, and you see that even the results of this Q2 were very positive for the commercial division. And we see opportunities to improve even further with the volume growing, and we are also working internally on the other P&L drivers, like prices and especially cost reduction programs. So again, we do believe that the margins of the commercial division will continue to be positive, right, and... Let's say middle, single, or single digits for this year and the next year as well. That's very clear. Thank you.

Speaker Change: Our commercial division has been.

Speaker Change: Despite the lower volumes in the past year has been profitable.

Speaker Change: You'll see the even the results of this Q2 was a was very.

Speaker Change: Other positives for the commercial commercial division.

Speaker Change: The opportunities to improve even further.

Speaker Change: The volume volume is growing and we are also working internally.

Speaker Change: And the other P&L drivers like.

Speaker Change: Prices and.

Speaker Change: Especially when the cost reduction programs. So again, we do believe that the margins of the commercial division.

Francisco Neto: We will continue to be positive, right? And let's say, middle, single, single digits. And for this year and next year as well.

Speaker Change: We will continue to be positive right.

Speaker Change: Let's say mid single low single digits and therefore for this year, then next year as well.

Unknown Executive: That's very clear. Thank you.

Speaker Change: That's very clear thank you.

Speaker Change: Thank you.

Lucas Laghi: The next question comes from Lucas Laghi with Chispeh in the cement. Please go ahead. Hi everyone. Can you hear me now? Yes, we can.

Speaker Change: The next question comes from Lucas <unk> with <unk>. Please go ahead.

Operator: The next question comes from Lucas Laghi with Xispe Investimentos. Please go ahead. The next question comes from Lucas Laghi with Shispe Investments. Please go ahead.

Lucas Laghi: The next question comes from Lucas Laghi with Chispeh in the cement. Please go ahead. Hi everyone. Can you hear me now? Yes, we can. Thank you.

Speaker Change: The next question comes from Lucas Lackey with shifting with Shantha. Please go ahead.

Unknown Executive: Please go ahead.

Speaker Change: Okay.

Lucas Lackey: Hi, everyone can you hear me now.

Unknown Executive: Hi everyone, can you hear me now?

Operator: Hi everyone, can you hear me now?

Operator: Yes, we can.

Speaker Change: Yes.

Speaker Change: Okay. Thank you and good morning, Francisco <unk> Mike.

Operator: Thank you. Good morning, Francisco and Antonio.

Lucas Laghi: Thank you.

Unknown Executive: Good morning, Francisco Antonio. My question is a follow-up on the commercial division, profitability standpoint. But I mean, we know to this slide decline over a year on margins due to the higher mix of each use. I mean, my question is, I mean, aside from the effects of operating leverage as deliveries should accelerate in this upcoming years, I mean, are we already seeing the orders that you added to your backlog in the past year, implying room for gross margins to improve or a further contribution margin improvement should come as a result from incremental new orders in this in this next year.

Antonio Garcia: Good morning, Francisco Antonio. My question is a follow-up on the commercial division, profitability standpoint. But I mean, we know to this slide decline over a year on margins due to the higher mix of each use. I mean, my question is, I mean, aside from the effects of operating leverage as deliveries should accelerate in this upcoming years, I mean, are we already seeing the orders that you added to your backlog in the past year, implying room for gross margins to improve or a further contribution margin improvement should come as a result from incremental new orders in this in this next year.

Speaker Change: My question is a follow up on the commercial division.

Operator: My question is a follow-up on the commercial division profitability standpoint. But I mean, we noted this slight decline over a year in margins due to the higher mix of each use. My question is, aside from the effects of operating leverage as deliveries should accelerate in these upcoming years, are we already seeing the orders that you added to your backlog in the past year implying room for gross margins to improve, or should a further contribution margin improvement come as a result from incremental new orders this year?

Speaker Change: Profitability standpoint, but I mean, we noted this slight decline year over year on margins due to the higher mix of each juice.

Speaker Change: My question is I mean, aside from the effects of operating leverage as the leverage should accelerate in this upcoming years.

Speaker Change: We will already see in the orders that you added to your backlog in the past year imply them room for gross margins to improve or a further contribution margin improvements should comes as a result from incremental new orders in this in this next year. So basically are a matter of mix.

Unknown Executive: So basically, a matter of weeks, and how should we think of the e2 margin is going forward, taking into consideration what you already have added to your backlog and what you expect to add in this upcoming years.

Antonio Garcia: So basically, a matter of weeks and how should we think of the e2 margin is going forward, taking into consideration what you already have added to your backlog and what you expect to add in this upcoming years. Thank you very much.

Speaker Change: And how should we think of the E choose margins going forward.

Operator: So basically, a matter of mix and how we should think of the individual use margins going forward, taking into consideration what you already have added to your backlog and what you expect to add in these upcoming years.

Speaker Change: Taken into consideration what you already had added to your backlog and what you expect to add in this upcoming years. Thank you very much.

Antonio Garcia: Thank you very much.

Unknown Executive: Thank you very much.

Antonio Garcia: Thanks, Lucas, for the nice question. The margin that you have generated today is based on the backlog that the first sales campaign for the e2. We should take four or two, with more or less the margin that we are delivering today, for sure. The future backlog is accurate in for a mid single digits at least today, and please do not forget to have also a boost in D1 for the future.

Speaker Change: Thanks, Luca for the nice question.

Unknown Executive: Thanks, Lucas, for the nice question. The margin that we are generating today is based on the backlog for the first sales campaign for D2, which would take a quarter of us, which is more or less the margin that we are generating.

Antonio Garcia: Thanks, Luca, for the nice question. The margin that we have generated today is based on the backlog that the first sales campaign for D2. We should take a quarter or more or less the margin that we are delivering today. For sure, the future backlog is accurate for a mid-single digit, at least today. And please do not forget to have a boost in D1 for the future.

Antonio Garcia: Thanks, Lucas, for the nice question. The margin that you have generated today is based on the backlog that the first sales campaign for the e2. We should take four or two with more or less the margin that we are delivering today for sure. The future backlog is accurate in for a mid single digits at least today and please do not forget to have also a boost in D1 for the future. But we need to exercise the new contracts.

Speaker Change: Uh huh.

Speaker Change: The margin that you had you know reached two days based on their backlog a bit.

Antonio Garcia: If you take the mix today, there are more or less the first contract for the e2. That's why the margin is more tough, more tight. But if you take Mexico is much better margin than we are exercising with the customer this year, but we need to wait the coming years in order to say re-green interaction. Nevertheless, you know you follow your number. We are able to report positive margin even with not the full capacity occupied.

Speaker Change: The first sales campaign for detour, fitbit or thorough awesome, it's more or less the margin debt.

Speaker Change: We are delivering today for sure the future backlog.

Speaker Change: Is that creating for a mid single digit at least today and please do not forget to have also a boost in day, one for the future, but we needed to exercise the new contract.

Antonio Garcia: But we need to exercise the new contracts. If you take the mix today, there are more or less the first contract for the e2. That's why the margin is more tough, more tight. But if you take Mexico, it is a much better margin than we are exercising with the customer this year, but we need to wait the coming years in order to say re-green interaction. Nevertheless, you know you follow your number. We are able to report a positive margin even with not the full capacity occupied. That's why we see between operational levers and new contracts a good way to improve the margin, but not this year.

Antonio Garcia: But we needed to exercise the new contracts. If you take the mix today, it's more or less the First contract for D2, that's why the margin is more tough, more tight. But if you take Mexico, it's a much better margin than we are exercising with the customer this year. But we need to wait for the coming years in order to, I would say, regain traction. Nevertheless, you know, you follow our numbers.

Speaker Change: Should take the mix today, there are more or less.

Speaker Change: Yeah.

Mark Duff: First contract for the <unk>, that's why the margins Mark Duff more tight.

Speaker Change: If you take Mexico is much better margin than we are exercising that go through this year, but we needed to wait they're coming here in order to I would say regain interaction.

Speaker Change: Nevertheless, you Youll know youll follow yard our numbers, we are able to report positive margin even with not therefore.

Antonio Garcia: We are able to report positive margins, even with not the full capacity occupied. That's why we see between operational levers and new contracts a good way to improve the margin, but not this year. This year is highly dependent on D2, which is the main customer that has at least a lower margin, but we are confident for the future. Perfect.

Speaker Change: Capacity occupied that's why we did see between operational lever the new Congress a good way to improve the margin, but not this year. This year is highly dependent on the tool.

Antonio Garcia: That's why we see between operational levers and new contracts a good way to improve the margin, but not this year. This year is highly dependent on the e2. We should be the main customer that has at least a lower margin, but we are confident for the future. Perfect. That's clear. Thank you Antonio.

Antonio Garcia: This year is highly dependent on the e2. We should be the main customer that has at least a lower margin, but we are confident for the future.

Unknown Executive: Thank you.

Speaker Change: Their main customer that has at least a lower margin, but we are confident for the future.

Unknown Executive: Perfect. That's clear.

Speaker Change: Perfect.

Operator: Perfect. That's clear. Thank you, Antonio. Thank you.

Unknown Executive: Perfect. That's clear. Thank you, Antonio.

Unknown Executive: That's clear thank you Antonio.

Unknown Executive: Thank you, Antonio. Thank you.

Speaker Change: Thank you.

Speaker Change: The next question comes from Alberto Valerio with UBS. Please go ahead.

Operator: The next question comes from Alberto Valerio with UBS. Please go ahead.

Alberto Valério: The next question comes from Alberto Valerio with UBS. Please go ahead. Hi. Good morning, Antonio and Francisco. Thank you for thanking my questions. I have two here on our side. First one about the price in the commercial aviation. We heard from competitors that there is some low price aircraft going out of the inventory and sooner we should have a higher price aircraft going out from the inventory. I would like to see if in Embraer we have the same situation.

Speaker Change: Hi, Good morning, Don Juan Francisco. Thank you for taking my questions I have two here on our site.

Operator: Hi, good morning, Antonio and Francisco. Thank you for taking my questions. I have two here on our side.

Operator: First one about pricing in commercial aviation. We heard from competitors that there are some low-priced aircraft going out of the inventory, and sooner we should have higher-priced aircraft going out of the inventory. I would like to see if, in Embraer, we have the same situation. And secondly, in executive aviation, that margin comes great year over year. Despite what we see, a worse mix with less practice on the delivery side. If you could provide more color on this one also, it would be very helpful, and congrats on the results.

Antonio Garcia: First one about the price in the commercial aviation. We heard from competitors that there is some low price aircraft going out of the inventory, and sooner we should have a higher price aircraft going out from the inventory. I would like to see if in Embraer we have the same situation.

Speaker Change: The first one about the pricing in the commercial aviation and we heard from competitors that there is some low price aircrafts going out of the inventory and sooner we should have a higher price.

Speaker Change: Aircraft going out from them, they thought that I would like to see.

Brad: Brad we have the same situation and secondly on the ZIP chips are aviation that a.

Antonio Garcia: And secondly, on the zeptives aviation that margin come great over here. Despite what we see, our worst mix with less predators on the delivery side, if you could provide more color on this one also, it would be very helpful, and congrats on the results. Thank you.

Alberto Valério: And secondly, on the zeptives aviation that margin come great over here. Despite what we see our worst mix with less predators on the delivery side, if you could provide more color on this one also it would be very helpful and congrats on the results. Thank you.

Speaker Change: Margin come great.

Speaker Change: Our year over year. Despite a why do we see a worse mix with less breadth are still on their delivery sites.

Speaker Change: If you could provide more color on just one also it would be very helpful and congrats on the results.

Alberto Contreras: Alberto Contreras speaking here. First, I hope you revise your numbers because we do believe that you're not growing too much this year, but I'm sure you are going to do it. So in regards to the percentage-wise, it's a little bit different when you see Finos against Praetors, but dollar-wise, we do see a nice boost.

Operator: Hello Alberto. Guilherme is speaking here. Good morning. First, I hope you revise your numbers because we do believe that you're not growing very much this year, but I'm sure you will do it. So in regards to the, the Marvie site.

Antonio Garcia: Antonio speaking here. Good morning. First, I hope you will revise your numbers because you do believe that you are not growing too much this year, but I'm sure you are going to good. He got to the margin side. Again, it is a combination of facts for commercial aviation.

Speaker Change: Speaking of good morning, Chris.

Antonio Garcia: Antonio speaking here good morning. First, I hope you will revise your numbers because you do believe that you are not growing too much this year but I'm sure you are going to good. He got to the margin side. Again, it is a combination of facts for commercial aviation. I would say the under-mix for executive aviation, growing prey to bring a lot of dollars, but I would say increment or margin should lead to the unit to be above 2d to be 80 margin is 0.

Alberto Contreras: Chris I hope, you'll we'll revise our numbers because we do believe that we are not throwing at you might be this year, but I'm sure you are going to have good.

Speaker Change: Got it.

Alberto Contreras: <unk>.

Speaker Change: Two the MRV sites.

Unknown Executive: Again, it's a combination of facts about commercial aviation. Okay. I would say the under-mix for executive aviation. I would say that I would say that I would say that I would say that I would say that I would say that I would say that I would say that I would say that Growing the pretro brings a lot of dollars, but let's say incremental margin should lead to unity, to be above two digits of BAT margins this year. We are already more or less close to that. Let's say the Prater brings in much more money.

Speaker Change: Again, it was a combination of effects for commercial aviation okay.

Speaker Change: I'd say.

Antonio Garcia: I would say the under-mix for executive aviation, growing prey to bring a lot of dollars, but I would say increment or margin should lead to the unit to be above 2d to be 80 margin is 0. We are a red more or less close to that. I would say the predator brings much more dollars. That is why increment or margin should help. Sometimes the percentage wise is a little bit different when you see females against predators, but dollar wise we do see a nice boost for the margin for this year for the years to come.

Speaker Change: The in the mix for us equity the aviation.

Speaker Change: Growing greater brings a lot of dollars, but let's say incremental margins should lead the business unit to be able to see at <unk>, we are read more or less close to that I.

Antonio Garcia: We are a red more or less close to that. I would say the predator brings much more dollars. That is why increment or margin should help. Sometimes the percentage wise is a little bit different when you see females against predators but dollar wise we do see a nice boost for the margin for this year for the years to come. Okay, I will revise for sure our numbers. Antonio, thank you very much. Thank you. We love to listen to that over time. Thank you.

Speaker Change: I would say in the greater brings much more dollars, that's why <unk> tomo you should.

Unknown Executive: That's why cremation margin should help. Sometimes the percentage wise is a little bit different when you see females against predators. But dollar wise, we do see a nice boost for the margin this year and for the years to come.

Alberto Contreras: Hello.

Alberto Contreras: Sometimes the percentage wise, it's a little bit different when you see females against breakthrough, but dollar wise, we do see a nice boost.

Alberto Contreras: Are the part of the market for this year for the years to come.

Alberto Contreras: Okay.

Unknown Executive: Okay, I will revise for sure our numbers.

Antonio Garcia: Okay, I will definitely revise our numbers, Antonio. Thank you very much. Thank you. We love to listen to that, Alberto.

Operator: Okay, I will definitely revise all the numbers, Antonio. Thank you very much. Thank you. We love to listen to that, Alberto.

Speaker Change: We will revise it for sure all the numbers, sometimes thank you very much.

Unknown Executive: Antonio, thank you very much. Thank you. We love to listen to that over time. Thank you.

Operator: I think we'd love to listen to that, Humberto. Thank you. The next question comes from a phone number ending in 5135. Please go ahead. Okay.

Speaker Change: We love <unk>.

Antonio Garcia: Yes.

Antonio Garcia: Thank you.

Unknown Executive: The next question comes from the phone number ending 5135. Please, go ahead. Okay.

Operator: The next question comes from a phone number ending in 5135. Please go ahead. Okay.

Unknown Executive: The next question comes from a phone number ending in 5135. Please go ahead. Okay.

Louis Fettel: The next question comes from the phone number ending 5135. Please, go ahead. Okay. Hey, good morning, guys. I have Louis Fettel from Wolf Research. Hello. Maybe I just on services had a good quarter on the top line, good quarter on margin. How should we think about that business? It's a remainder of the year. It grows stepped up pretty nicely in the quarter. We have a sustainable level here around 400 billion. Same on the margin, 17%.

Speaker Change: Our next question comes from the phone number ending 5135.

Speaker Change: Please go ahead.

Unknown Executive: Okay.

Speaker Change: Does that.

Louis Fettel: Hey, good morning, guys. I have Louis Fettel from Wolf Research. Hello.

Wolfe Research: Hey, Good morning, guys, you have lower federal from Wolfe research.

Unknown Executive: Hello.

Unknown Executive: Maybe I just on services had a good quarter on the top line, good quarter on margin.

Speaker Change: Maybe just on services had a good quarter on the top line good quarter on margins just how should we think about that business serves.

Unknown Executive: How should we think about that business? It's a remainder of the year. It grows stepped up pretty nicely in the quarter. We have a sustainable level here around 400 billion. Same on the margin, 17%.

Speaker Change: Sure. So the remainder of the year growth stepped up pretty nicely in the quarter are we at sort of a sustainable level here around $400 million.

Speaker Change: And same on the margin, 17% you would think about that as sort of a run rate or what did did any one time benefits helped the quarter there.

Unknown Executive: We think about that as a run rate, or did any one-time benefits help the quarter there.

Antonio Garcia: We think about that as a run rate or did any one-time benefits help the quarter there. Thanks for the nice questions. I want to speak here. I would say we are ready to end the range of mid-teens margin for the service and support with expansion activities right now. I would say I would continues to see for this year at the mid-teens because we are putting more revenue and margin for the engine in Marol.

Unknown Executive: Thanks for the nice questions.

Speaker Change: Thanks for the Nice places unpunished speaking here I would say we are at in the in the range of a mid teens, Marty part of the service and support with expansion activities right now.

Operator: Thanks for the nice questions. Antonio speaking here. I would say we are already in the range of mid-teens margin for service and support with expansion activity right now.

Antonio Garcia: I want to speak here. I would say we are ready to end the range of mid-teens margin for the service and support with expansion activities right now. I would say I would continues to see for this year at the mid-teens because we are putting more revenue and margin for the engine in Marol.

Unknown Executive: expansion activity right now. I would say, I would..., continue to see for this year at the mid-teens because we are putting more revenue and margin on the engineering role we have in Portugal. That's why the ramp-up of this production does not help or contribute too much to the margin. That's why I would say we are confident in the mid-teens and on-time effect on us for services, not a big contributor, to be honest.

Speaker Change: I wish.

Antonio Garcia: Continuous to see for this year at the mid-teens because we are putting more revenue and margin for the engineering morale we have in Portugal. That's why and the ramp up of this production does not help or contribute too much to the margin. That's why I would say we are confident in the mid-teens and on time effect was for service, not a big contributor to be honest. Great.

Unknown Executive: Continues to see for this year and then mid teens because we are.

Unknown Executive: Baltimore.

Speaker Change: Revenue and margin for the engine MRO, we have important of all that's why and the ramp up of this provision does not help our country, which too much for their margin. That's right I would say we are confident in the mid teens and one time effect to us for services not a big contributor to be honest.

Antonio Garcia: We have an important goal. That's why the ramp-up of this production does not help or contribute too much for the margin. That's why I would say we are confident in the mid-teens and on-time effect to us for servicemen not a big contributor, to be honest.

Antonio Garcia: We have important goal. That's why the ramp up of this production does not help or contribute too much for the margin. That's why I would say we are confident in the mid-teens and on-time effect to us for servicemen not a big contributor to be honest.

Speaker Change: Great. Thank you very much.

Speaker Change: Thank you.

Noah Poponak: The next question comes from Noah Poponak with Goldman Sachs. Please go ahead.

Unknown Executive: Okay.

Operator: The next question comes from Noah Poponak of Goldman Sachs.

Noah <unk>: The next question comes from Noah <unk> with Goldman Sachs.

Unknown Executive:

Speaker Change: Please go ahead.

Unknown Executive: Antonio could you just spend another minute on the cash flow.

Antonio Garcia: Antonio, can you just spend another minute on the cash flow? I know that your cash flow is always seasonally weighted to the back half. You've had a working capital build in the first half before. It looks pretty sizable in the first half of 24, even though the deliveries are up a little bit year-over-year, revenues up year-over-year.

Operator: Antonio, can you just spend another minute on the cash flow? You know, I know that your cash flow is always seasonally weighted to the back half, and you've had this working capital build up in the first half before it looks pretty sizable in the first half of 24, even though the deliveries are up a little bit year over year and revenues are up year over year. So, maybe if you could just walk us through that, how confident are you in hitting the 220 for the year? And can you grow free cash flow next year versus this year?

Speaker Change: Now that your cash flows.

Unknown Executive: Always seasonally weighted to the back half.

Speaker Change: You've had this you've had a working capital build in the first half.

Unknown Executive: Before.

Speaker Change: It looks pretty sizable in the first half of 'twenty four even though the deliveries.

Speaker Change: <unk> are up a little bit year over year revenues up year over year. So maybe if you could just walk us through that how confident are you in hitting the $2 20 for the year.

Antonio Garcia: So maybe if you could just walk us through that, how confident are you in hitting the 220 for the year, and can you grow free cash flow next year versus this year? Thanks to Noah for the nice question. By the way, cash is the one thing that we discussed every single day in this company here. That's why we launched the production leveling in order to be more, I would say, not suffered too much from Q1 to Q3 during the year. It's going to, I would say, help more next year than this year. I'd say the trend for the cash flow, we are today confident in the 220 or better, but unfortunately it's going to happen just in Q4.

Antonio Garcia: So maybe if you could just walk us through that, how confident are you in hitting the 220 for the year and can you grow free cash flow next year versus this year? Thanks for Noah for the nice question. By the way, cash is the one thing that we discussed every single day in this company here. That's why we launched the production leveling in order to be more, I would say, not suffered too much from Q1 to Q3 during the year.

Speaker Change: When you grow free cash flow next year versus this year.

Speaker Change: Thanks for and offered a nice question by the way caching lumping that we discuss every single day. This company here with this that's why we launched the production level in order to.

Antonio Garcia: For Noah, for the nice question. By the way, cash is one thing that we discuss every single day in this company here, which is, that's why we launched production leveling in order to. Be more, I would say, not suffered too much from Q1 to Q3 during the year. It's going to, I would say, help more next year than this year. I'd say the trend for cash flow is, we are confident in 220 or better. But unfortunately, it's going to happen just in Q4.

Unknown Executive: Be more, I would say. This week, very, very strong. How to, I would say, be nicer or cash.

Unknown Executive: The more I would say.

Unknown Executive: Suffolk Geomapping from Q1 to Q3 during the year is going to I would say help more next year than Ethiopia.

Antonio Garcia: It's going to, I would say, help more next year than this year. I'd say the trend for the cash flow, we are today confident in the 220 or better, but unfortunately it's going to happen just in Q4. It's pushing, putting a lot of pressure on the cash flow, and also the progress payment for the new contracts is going to happen, especially in the second half of the year. I would say, combine those effects, lead us for this type situation, Q1, Q2, and Q3, and hopefully to become positive as we did last year in Q4.

Speaker Change: The trend for the cash flow. We are today, coincidentally 200 planted are better, but oh for Atlanta is going to happen in Q4.

Antonio Garcia: The disjointed between negative and positive for several reasons, the more or less 20% growth on the top line this year, and also for next year is more or less also double digit growth that we are first seeing. And if you go to our factories today, you see new people and parts for 2025 already. We have already produced 25 parts, several parts of our company.

Speaker Change: The disjoint between negative which are positive for several reasons.

Speaker Change: More or less 20% growth or top line. This year and also for next year is more or less also double digit growth that we are foreseeing and if you go to our effective yesterday youll see new people in part FERC 2000 fiber and we are ready for this three to five part to several parts of our company.

Antonio Garcia: It's pushing, putting a lot of pressure on the cash flow, and also the progress payment for the new contracts is going to happen, especially in the second half of the year. I would say combine those effects, lead us into this tight situation in Q1, Q2 and Q3 and hopefully, to become positive as we did last year in Q4. However, we are not happy with the situation, and we do have, and we are discussing.

Antonio Garcia: It's pushing, putting a lot of pressure on the cash flow, and also the progress payment for the new contracts is going to happen, especially in the second half of the year. I would say, combine those effects, lead us for this type situation, Q1, Q2, and Q3, and hopefully to become positive as we did last year in Q4.

Speaker Change: It's pushing putting a lot of pressure on the on.

Speaker Change: On the cash flow and also the progress payment for the new contract is going to happen, especially in the second half of the year I would say combine those effects Linda as far this type of situation Q1, Q2, and Q3 as hopefully to become positive as we did last year in Q4.

Antonio Garcia: However, we are not happy with this situation, and we do have, and we are discussing this week, very strong how to, I would say, harmonize our cash generation. And then he gets to generate more cash in next year, you know, you know, our time here minimum turn a BTDA 50% into cash, I would say. We are a little bit behind this year because of the higher growth that you continue to face for the company, which is nice, but puts a lot of pressure on the cash flow. I would say, in the next show, we are still confident with the cash this year, and for sure a lot of chances to improve cash flow.

Antonio Garcia: However, we are not happy with this situation, and we do have, and we are discussing this week, very strong, how to, I would say, harmonize our cash generation. And then he gets to generate more cash in next year, you know, you know, our time here minimum turn a BTDA 50% into cash, I would say. We are a little bit behind this year because of the higher growth that you continue to face for the company, which is nice, but puts a lot of pressure on the cash flow.

Speaker Change: However, we are not happy with this.

Unknown Executive: Situation, then we do have and we are discussing these weak very very strong.

Operator: This week, very, very strong. How to, I would say, are more nice or cash generation, and in regards to generate more cash next year, you know our tariff year minimum turns a BTDA 50% into cash. I would say we are a little bit behind this year because of the higher growth that you continue to face for the company, which is nice but puts a lot of pressure on the cash flow. I'd say, in a nutshell, we are still confident with the cash this year and for sure have a lot of chances to improve cash flows next year. If you are able to level out production, then it's going to be even better, and you I hope that's more or less what we are looking for. Okay.

Unknown Executive: I would say our modernize our our cash generation and.

Noah Poponak: Got you generate more cash next year, Noah you know our guy fieri minimal.

Unknown Executive: A bit today, 50% into cash I would say, we are a little bit behind this year because of the higher growth that still continued to face for the company, which is life, but good sell out of breath on that cash flow I'd say in a nutshell, we are still confident that with the cash easier and for sure.

Antonio Garcia: I would say, in the next show, we are still confident with the cash this year, and for sure a lot of chances to improve cash flow. Next year, if you are able to level in the production, then it's going to be even better, and you guys are not getting scared to see negative cash consumption. Q3, Q4, and then a very strong positive in Q4. I will, that's more or less what we are looking for. Okay, that's helpful. Thank you so much. Thank you.

Unknown Executive: Chances to improve cash flow.

Antonio Garcia: Next year, if you are able to level in the production, then it's going to be even better, and you guys are not getting scared to see negative cash consumption. Q3, Q4, and then a very strong positive in Q4. I will, that's more or less what we are looking for. Okay, that's helpful.

Unknown Executive: Next year.

Speaker Change: If you are able to level and the promotion then there's going to be even better and you guys are not giving yet these characters see negative cash consumptions three quieter than a very strong positive in Q4, a wheel that's more or less what we are looking for.

Speaker Change: Okay. That's helpful. Thank you so much.

Operator: Okay, that's helpful. Thank you so much. Thank you.

Unknown Executive: Thank you so much.

Unknown Executive: Thank you. Thank you all very much.

Speaker Change: Thank you.

Speaker Change: Thank you all very much. This concludes the question and answer session.

Operator: Thank you all very much. This concludes the question and answer session for Equity Research Analysts and Investors. Now, we will start the Q&A session dedicated to the press. First, we will answer questions in English, and then we will answer questions in Portuguese, who will also answer questions sent via the platform ShipChat. Please let me see a short announcement in Portuguese. This conference is being held in English. To listen to the translation in Portuguese, press the Interpretation button on the platform and select the Portuguese language.

Unknown Executive: Thank you all very much.

Unknown Executive: This concludes the question-and-answer session for equity research analysts and investors. Now we will start the Q&A session dedicated to the press. First, we will answer questions in English, and then we will answer questions in Portuguese. We will also answer questions sent via the platform chat.

Speaker Change: Research analysts and investors.

Speaker Change: Now we'll start the Q&A session dedicated to the press.

Unknown Executive: This concludes the question and answer session for equity research analysts and investors.

Unknown Executive: First, we will answer questions in English, and then we will answer questions in Portuguese. Question. This conference is being held in English. To listen to the translation in Portuguese, press the Interpretation button on the platform and select the Portuguese language. To give everyone a chance to participate, we request that you ask just one question.

Speaker Change: First we will answer your questions in English and then we'll answer questions in Portuguese.

Unknown Executive: Now we will start the Q&A session dedicated to the press. First, we will answer questions in English, and then we will answer questions in Portuguese. We will also answer questions sent via the platform chat.

Unknown Executive: We'll also answer.

Unknown Executive: Questions.

Szymczak: Via the platform Szymczak. Please.

Unknown Executive: Please let me see a short announcement for Portuguese speakers. This conference is being carried out originally in English. We asked participants interested in asking questions to press the raise the hand button on the platform. When your name is announced, please make sure your microphone is on and start your question. If you need assistance, please use the Q&A button on the platform. To give everyone a chance to participate, we request to ask just one question. Please hold while we collect the questions.

Unknown Executive: Please let me see a short announcement of Portuguese speakers.

Speaker Change: Ethical today since September had is our ability to domenici Inglis.

Speaker Change: I don't see that type of phone put together, that's only portal the progesterone that butterfly inland silicon image Llama Portuguese.

Speaker Change: We ask participants consisted in asking questions suppressed the Fraser hand, but on the platform. When your name is announced please make sure. Your microphone is on and start your question.

Operator: We ask participants interested in asking questions to press the raise a hand button on the platform. When your name is announced, please make sure your microphone is on and start your question. If you need assistance, please use the Q&A button on the platform. To give everyone a chance to participate, we request that you ask just one question. Please hold while we collect the questions. The first question is from a few Q&A chat and is from Joanna Badey. Do you expect the seat? 390 program to be profitable by the end of 2024, and how have you managed to increase the EBITDA so much on executives?

Unknown Executive: If you need assistance. Please use the Q&A button on the platform.

Unknown Executive: To give everyone a chance to participate we request to ask just one question.

Unknown Executive: Please hold while we collect the questions.

Unknown Executive: Yes.

Unknown Executive: The first question is from the few Q&A chat and is from Joanna Bayzi. Do you expect the C390 program to be profitable by the end of 2024? And how have you managed to increase the EBITDA so much on executive?

Speaker Change: The first question.

Francisco Neto: The first question is from the few Q&A chat and is from Joanna Bayzi. Do you expect the C390 program to be profitable by the end of 2024? And how have you managed to increase the EBITDA so much on executive?

Unknown Executive: Yes.

Joanna baby: Q&A chat and is from Joanna baby.

Speaker Change: Do you expect the seat.

Speaker Change: 390 program to be profitable by the end of 'twenty 'twenty four and how have you managed to increase the EBITDA so much on executive.

Antonio Garcia: Well, Joanna, thanks for the question. I think it depends. Yes, for our difference in security to be profitable this year already, including the C390 and other products. I mean, we are seeing a very good performance in terms of margin and results, and this should continue with the sales production deliveries growing in the next years. And for as active as the aviation, we do have a nice mix of products, I would say Fino and operators, where we were able to keep the price-discipline with the showing also in the financial results. That's more or less without services. By the way, that's the combination of facts we do see as active aviation.

Francisco Neto: Well, Johanna, thanks for the question. I think, you know, the plan is, yes, for our defense and security business to be profitable this year already, including the C390 and other products and Executive. I mean, we are seeing a very good performance in terms of margin and results, and this should continue with sales, production, and deliveries growing in the next years for Executive Aviation.

Francisco Neto: Well, Joanna, thanks for the question. I think it depends. Yes, for our difference in security to be profitable this year already, including the C390 and other products. I mean, we are seeing a very good performance in terms of margin and results, and this should continue with the sales production deliveries growing in the next years. And for as active as the aviation, we do have a nice mix of products, I would say Fino and operators, where we were able to keep the price-discipline with the showing also in the financial results. That's more or less without services, by the way, that's the combination of facts we do see as active aviation.

Unknown Executive: Johanna Thanks for the question.

Unknown Executive: Thank you.

Speaker Change: I think you know the panacea, yes for the our defense and security to be profitable this year already including the 60 and 90 and other products.

Speaker Change: And there is active I mean, we are seeing a very good performance in terms of monitoring our results and this should be continuing.

Speaker Change: The sales production deliveries growing India into next years.

Unknown Executive: For executive deviation, we do have a nice mix of products, I'd say Pheno and Praetors, where we were able to keep the price discipline with this showing also in the financial results, which are more or less without services, by the way. That's the combination of facts we see in executive aviation.

Unknown Executive: for Executive Aviation

Speaker Change: Four four is active as the aviation we do have a nice mix of products I'd say funeral breakers, where we we were able to keep the price discipline annuities showing also in the financial results, that's more or less without services by the way that's the combination of effect through indices.

Unknown Executive: The active aviation.

Unknown Executive: Okay.

Unknown Executive: Thank you.

Unknown Executive: The next question is written as well from the few Q&A chat and is from Richard Sherman.

Operator: The next question is written as well from the VIEW Q&A chat, and it's from Richard Shroom. Hello, I have already asked many questions in Spanish, but I have one follow-up from that.

Speaker Change: The next question is Britain as well from the Q&A chat.

Unknown Executive: The next question is written as well from the few Q&A chat and is from Richard Sherman. Hello, I have already asked many questions in foreign forum, but I have one follow up from that. You will know the E2FT or E2ft in health takeoff system. It isn't clear if the system has already been certified. If not, when do you expect this to be available? Richard, this is a very good question, and thank you for your interest. And all could this feature the certification is expected to happen by the Q4 next year, mid-25. Thank you.

Richard Sherman: Richard Sherman.

Unknown Executive: Hello, I have already asked many questions in foreign forum, but I have one follow up from that. You will know the E2FT or E2ft in health takeoff system. It isn't clear if the system has already been certified. If not, when do you expect this to be available?

Speaker Change: Hello, I have already asked many questions in Farnborough, but I have one follow up from that.

Unknown Executive: Please hold while we collect questions.

Operator: He will announce the E2, FT, or E2 Feet Enhanced, Takeoff System. It isn't clear if this system has already been certified. If not, when do you expect this to be available? Obrigada. I reach this out of

Unknown Executive: You will know the EQ.

Unknown Executive: F T or <unk>.

Unknown Executive: Enhanced.

Speaker Change: Takeoff system.

Speaker Change: It isn't clear if this system has already been certified if not when do you expect this to be a favorable.

Unknown Executive: Got it.

Unknown Executive: Richard, this is a very good question, and thank you for your interest. And all could this feature the certification is expected to happen by the Q4 next year, mid-25.

Unknown Executive: Richard This is a very.

Unknown Executive: I reach out at this hour.

Unknown Executive: Richard, this is a very good question and thank you for your interest in and about this feature. The certification is expected to happen by the Q4 next year, 2025.

Operator: Richard, this is a very good question and thank you for your interest in and about this feature. The certification is expected to happen by the Q4 next year, 2025.

Speaker Change: Good question and thank you for your interest.

Speaker Change: The bulk of this feature this certification and we expect it to happen by Q4 next year, we had a 25.

Unknown Executive: Thank you. Please hold while we collect questions.

Speaker Change: Thank you please hold while we collect question.

Francisco Neto: Thank you. Please hold while we collect questions. The next question is written as well from Woodrow Bellamy. One of the technologies that Airbus, Boeing, and other OEMs highlighted at Farnborough was their use of new digital design tools to improve time to market for new aircraft technologies and components. Is Embraer using any new digital design tools to improve its manufacturing and production efficiency, and could you give some examples? We are...

Unknown Executive: The next question is written as well from Woodrow Bellamy. One of the technologies that Airbus, Boeing, and other OEMs highlighted at Farnborough was their use of new digital design tools to improve time to market for new aircraft technologies and components.

Speaker Change: The next question is Britain as well.

Francisco Neto: The next question is written as well from Woodrow Bellamy. One of the technologies that Airbus, Boeing, and other OEMs highlighted at Farnborough was their use of new digital design tools to improve time to market for new aircraft technologies and components. Is Embraer using any new digital design tools to improve its manufacturing and production efficiency and could you give some examples? We have been using the one example I can give to you is the MES, the manufacturing excellent system that we use in our manufacturing process that is a digital 3D tool and that help us a lot, you know, to improve our efficiency productivity and quality in our manufacturing process. And we are developing all the systems as well that we expect to be implemented in the next years.

Speaker Change: From what drove Bellamy.

Speaker Change: One of the technologies that Airbus Boeing and other Oems highlighted at Farnborough, Mr use of new digital design tools to improve time to market for new aircraft technologies and competence.

Unknown Executive: Is Embraer using any new digital design tools to improve its manufacturing and production efficiency, and could you give some examples? We have been using the one example I can give to you is the MES, the manufacturing excellent system that we use in our manufacturing process that is a digital 3D tool and that helps us a lot, you know, to improve our efficiency, productivity, and quality in our manufacturing process. And we are developing all the systems as well that we expect to be implemented in the next years.

Unknown Executive: Is Embraer using any new digital design tools to improve its manufacturing and production efficiency?

Speaker Change: And Brian using any new digital design tools to improve its manufacturing and production efficiency and could you keep some examples.

Francisco Neto: We have been using the One example I can give it to you is the MES, the Manufacturing Excellence System that we use in our manufacturing process. That is a digital 3D tool, and that helps us a lot. You know, I mean, to improve our efficiency, productivity, and quality in our manufacturing process. And we are developing other systems as well that we expect to be implemented in the next years. Thank you very much.

Speaker Change: We have been.

Speaker Change: We're going to be using the one example, I can give it to you is the mes manufacturing excellence system.

Speaker Change: We use in our manufacturing process that is a digital three D.

Speaker Change: And are there.

Unknown Executive: To help us a lot.

Speaker Change: Me too.

Speaker Change: To improve our efficiency productivity and quality in our manufacturing process and we are developing other systems as well.

Unknown Executive: <unk> to be implemented.

Unknown Executive: And the next few years.

Unknown Executive: Thank you very much.

Speaker Change: Thank you very much please hold while we collect question.

Unknown Executive: Thank you very much. Please hold while we collect questions. Thank you all very much. This concludes the question and answer session in English for the press. Now, we are going to start the Q&A session in Portuguese. If you need assistance, please press the Q&A button on the platform so that everyone has the chance to participate. We ask that you ask only one question at a time.

Operator: Thank you very much. Please hold while we collect questions. Thank you all very much.

Unknown Executive: Thank you very much. Please hold while we collect questions. Thank you all very much.

Unknown Executive: Please hold while we collect questions. Thank you all very much.

Unknown Executive: Thank you all very much. This concludes the question and answer session.

Operator: This concludes the question and answer session in English for the press. This Q&A section is now being conducted in Portuguese. To switch to English, please press the interpretation button on the platform and then select English.

Unknown Executive: This concludes the question and answer session in English for the press.

Unknown Executive: In English for the press.

Unknown Executive: This Q&A section is now being conducted in Portuguese. To switch to English, please press the button on the platform and then select English.

Unknown Executive: This Q&A Q&A section is now being conducted in Portuguese to switch to English. Please press the interpretation button on the platform and then select English.

Unknown Executive: This Q&A section is now being conducted in Portuguese. To switch to English, please press the button on the platform and then select English. If there is any need for assistance please choose the button that the Q&A in the platform so that everyone has a chance to participate, we ask you to do just one question for you.

Operator: Now, we are going to start the Q&A session in Portuguese. We ask journalists interested in asking questions to press the raise hand button at any time and, when their name is announced, activate their microphones and ask their question. We will also answer written questions sent through the platform chat. If you need assistance, please press the Q&A button on the platform. So that everyone has the chance to participate, we ask that you ask only one question at a time. The first question comes from Cristian Favaro, from Valor Econômico. Please, you may proceed.

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Unknown Executive: If there is any need for assistance, please choose the button that the Q&A in the platform, so that everyone has a chance to participate. We ask you to do just one question for you.

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Christian Favaro: The first question comes from Christian Favaro from the Economic Value. Please, please. Did you hear all the comments? Very well. The question comes from Christian Favaro from the Economic Value. John Cardier confirmed the result of the fact that he is studying a minor environment for his operation between them. Embraer is two, but they also said that Embraer is competing with ADR 120.

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Christian Favaro: The first question comes from Christian Favaro from the economic value. Please, please. Did you hear all the comments? Very well. The question comes from Christian Favaro from the economic value. John Cardier confirmed the result of the fact that he is studying a minor environment for his operation between them. Embraer is two, but they also said that Embraer is competing with ADR 120.

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Operator: Jean-Gishtel, Dennis.

Unknown Executive: Thank you John with a bang.

Operator: Yes, Cristian. Very well. You can continue. Well, thank you for your time. Congratulations on the results.

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Operator: I have a question, but I'm just going to do a follow-up with you, Antonio, to see if I understand correctly. You said that the perspective is a 15% increase in the backlog in the defense segment in the third quarter. I think I understand it well. It's just to see if I understand this correct percentage, 15%.

Antonio Garcia: Then I wanted to ask my question regarding this issue of Latam. Yesterday, Jerome Cardiello confirmed in a LATAM results conference that LATAM is studying a smaller aircraft for its operation. Among them, Embraer, the E2, but they also said that Embraer is competing with the A220 because they also study and can bring, in short, the plane as a smaller plane. I wanted to understand your vision in relation to this competition with the A220, if you believe that you have space to win this competition, in this dispute, to get into LATAM, and understand a little how this conversation is evolving.

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Unknown Executive: Yesterday, Jerome Cardiello confirmed in a LATAM results conference that LATAM is studying a smaller aircraft for its operation. Among them is Embraer's E2, but they also said that Embraer is competing with the A220, and that they also study and can bring, in short, the plane as a smaller plane. I wanted to understand your vision in relation to this competition with A220, if you believe you have space to win this competition, this dispute to enter LATAM, and understand a little how this conversation is evolving.

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Unknown Executive: It's been a while since you said that LATAM, as well as Gol, are also in talks to buy planes with you, but how has this conversation evolved since then, and if you are optimistic that something will actually come out of it?

Antonio Garcia: It's been a while since you said, before that, that LATAM, as well as Gol, are also in talks to buy planes with you, but how has this conversation evolved since then, and if you are optimistic that something will actually come out of it.

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Francisco Neto: Let me answer the first of the backlog. In fact, 50% more than 3% that we are going to be here in the backlog of the defense. Thank you very much. In our opinion, the E2 is one of the most efficient, the less cost of operation, and the less cost of maintenance. And the E2 is a perfect fit. It is measured in the markets like Brazil. For example, you can see the operations in Brazil, you can see the operations of the Escutia Bora in Asia, you can see the fall in Europe, but we think that the E2 is a very competitive option and once again a measure for the best of connectivity between cities in the middle and small port.

Speaker Change: Hey, guys.

Francisco Neto: Thank you. Well, let me answer first about the backlog. Actually, it's 50% more in Q3, which will reflect on the defense backlog, the contracts from Holland, Austria for C390 and Paraguay Super Tucano. So, only with this will increase the backlog of the defense by more than 50%.

Unknown Executive: Thank you. Well, let me answer first about the backlog. Actually, it's 50% more in Q3. If we think about the defense's backlog, the contracts from Holland, Austria... for C390 and Paraguay Super Tucano. So, only with this will increase the backlog of the defense by more than 50%.

Unknown Executive: Let me answer the first of the backlog. In fact, 50% more than 3% that we are going to be here in the backlog of the defense. Thank you very much. In our opinion, the E2 is one of the most efficient, the less cost of operation and the less cost of maintenance. And the E2 is a perfect fit. It is measured in the markets like Brazil. For example, you can see the operations in Brazil, you can see the operations of the Escutia Bora in Asia, you can see the fall in Europe, but we think that the E2 is a very competitive option and once again a measure for the best of connectivity between cities in the middle and small port.

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Antonio Garcia: Now, I'll pass to Francisco here. Thank you, Antônio. Thank you, Cristian, for the question. Well, as I said before...

Francisco Neto: Now, I'll pass to Francisco here. Thank you, Antônio. Thank you, Cristian, for the question. Well, as I said before, we...

Francisco Neto: Thank you, Antônio. Thank you, Kristine, for the question.

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Francisco Neto: Well, as I said before, we have talked to several clients about the E2's business opportunity, and we compete in all markets with the A220. But, in our opinion, the E-2 is a plane... is the most efficient, with the lowest operating costs and maintenance costs, and the E2 is a perfect fit. It is tailored to markets like Brazil, for example. You can see the operations of Azul itself, you can see the operations of Scute now in Asia, and you can see the operations of KLM in Europe.

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Unknown Executive: But in our opinion, the E-12 is a plane... is the most efficient, with the lowest operating costs and maintenance costs, and the E2 is a perfect fit; it is tailored to markets like Brazil, for example. You can see the operations of Azul itself, you can see the operations of Scute now in Asia, you can see the operations of KLM in Europe. So, we think that the E2 is a very competitive aircraft and, once again, the measure for the improvement of connectivity between cities, of Média e Pequeno Porte, and what Brazil is looking for. Brazil and other countries, but more specifically Brazil. We are excited about the possibilities; there is nothing concrete yet, but we will wait for the evolution of the processes.

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Francisco Neto: We think that the E2 is a very competitive aircraft and, once again, the measure for the improvement of connectivity between cities, of Média e Pequeno Porte and what Brazil is looking for. Brazil and other countries, but more specifically Brazil. We are excited about the possibilities; there is nothing concrete yet, but we will wait for the evolution of the processes.

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Francisco Neto: And Brazil is looking for it. Brazil is your country, but especially Brazil.

Unknown Executive: And Brazil is looking for it. Brazil is your country, but especially Brazil. So, we are animated with the possibilities, there is nothing specific yet, but we are going to save the evolution of the processes. Thank you very much. All right, guys, you are welcome.

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Francisco Neto: So, we are animated with the possibilities. There is nothing specific yet, but we are going to save the evolution of the processes.

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Unknown Executive: Thank you very much. All right, guys, you are welcome. Good morning.

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Unknown Executive: Muito obrigada.

Operator: Muito obrigada! Please wait while we collect the questions. The next question comes from Jesse Nascimento from the portal Vale360news. Please, por favor, excuse me, por favor, pode continuar.

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Operator: All right, people. You can hear me.

Unknown Executive: Tudo bem, gente? Vocês me ouvem? Yes, perfect.

Operator: Good morning, Francisco. Congratulations on your results. We are here in Vale do Paraba, closely following Embraer's evolution. I have a question for Antônio first, if he can answer it, and then another for you, Francisco. Antônio, we realize, seeing yesterday the numbers here from the financial market, Embraer's stock reached R$ 38.13 at the closing, but hit R$ 43.81 at the end of July, and we saw there on October 30, 2020, this stock was worth R$ 6.03.

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Unknown Executive: Good morning. Good morning, Francisco. Congratulations to the results. We are here in the Vale do Paraíba, accompanying Orde Perto, the evolution of Embraer.

Unknown Executive: Good morning, Francisco. Congratulations on the results. We are here in the Vale do Paraíba, accompanying Orde Perto, the evolution of Embraer.

Unknown Executive: Good morning. Good morning, Francisco. Congratulations on the results. We are here in Vale do Paraba, closely following Embraer's evolution. I have a question for Antônio, first, if he can answer, and then another for you, Francisco. I would like to understand where this is going and if this can still happen this year, in the next announcements, please.

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Unknown Executive: I have a question for Antón, primarily if he can answer, and then another one for Mr. Francisco. Antón, we know, seeing the numbers here in the financial market, the action of Embraer arrived at 38 and 13 in the closing, but it hit 43 and 81 in the end of July. And we saw there in October, October 30, 2020, the assessment worth 6,000, 300. Before this perspective of the results that are being presented at this moment, you can talk about the increase of the value of the emperor of Embraer in the pandemic period up to now, and the question to Francisco is the following, Francisco Genteleza.

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Francisco Neto: Before this perspective of the results that are being presented at this moment, you can talk about the increase of the value of the emperor of Embraer in the pandemic period up to now, and the question to Francisco is the following, Francisco Genteleza. Arjan Dice, second of the short news, specialized in aviation, in the United Kingdom, that Embraer has advanced negotiations to negotiate 300 commercial planes. I would like to understand that this can happen even in the next few years. Please.

Operator: In light of this perspective, of the results that are being presented at this moment, can we talk about the increase in market value of Embraer during the pandemic period so far? And the question for Francisco is as follows, Francisco, please. According to the news portals specialized in aviation, at the United Kingdom fair, Embraer has advanced negotiations to sell 300 commercial aircraft. I would like to understand where this is going and if this can still happen this year, in the next announcements, please.

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Unknown Executive: Arjan Dice, second of the short news, specialized in aviation, in the United Kingdom, that Embraer has advanced negotiations to negotiate 300 commercial planes. I would like to understand that this can happen even in the next few years. Please.

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Antonio Garcia: Let me start. Thank you for the question. I will have to remember that when in 2020, Embraer was about 3.5 billion euros in the market. From the beginning of 2023 to now, the price is more than 160%. I don't think it makes us very happy, but I think there is more to the front. It is still based on what we are doing in terms of profitability, winning the market's credibility, and delivering what it promises, always preserving security, which is our internal element. We are very animated, very happy when we develop, but it is still our ambition to have more to happen.

Francisco Neto: Let me start. Thank you for the question. I will have to remember that when in 2020, Embraer was about 3.5 billion euros in the market. From the beginning of 2023 to now, the price is more than 160%. I don't think it makes us very happy, but I think there is more to the front. It is still based on what we are doing in terms of profitability, winning the market's credibility and delivering what it promises, always preserving security, which is our internal element.

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Operator: Let me start. Thank you for the question. Look, I'll have to...

Antonio Garcia: I remember that, in 2000 and... In 2020, Embraer was worth around R$ 3.5 billion in the market. Today, it has already hit over R$ 30 billion. So, in real terms, almost 10 times. The Ultimate Parody Site!!

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Unknown Executive: In 2020, Embraer was worth around R$3.5 billion in the market. Today, it has already hit over R$30 billion. So, in real terms, almost 10 times.

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Unknown Executive: Yeah.

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Antonio Garcia: I think the bad mood pandemic that happened on Friday and Monday is temporary. We even talked to several banks. This moment of uncertainty among investors, especially retail investors. So this should come back in the next few weeks. I have no doubt about that. So, what has happened with the company's value is reflected again: a gain of credibility, sustainable growth without surprises. I still think there's still a lot of room to grow, but I think we should have increased it about 10 times.

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Antonio Garcia: In the last... From the beginning of 2023 until now, the role has increased by more than 160%, which makes us very happy, but I think there is more to come, still based on everything that we are doing in terms of predictability, gaining market credibility, and delivering what it promises, always preserving security and quality, which is our internal motto. So, we are very excited, very happy with the development, but... Ainda... Our ambition is that there are more things to happen. We have to complement each other, right, Gérard?

Unknown Executive: Alright.

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Francisco Neto: We are very animated, very happy when we develop, but it is still our ambition to have more to happen. It is important to complement the value of the company's value in the middle of the pandemic. It is also a very low base.

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Unknown Executive: Yes, I think we need to complement each other, right, Gerson? Also, to get the company's value in the middle of the pandemic is also a very low base. But, yes, what keeps us motivated is that even if we get the share price before the pandemic, let's say in mid-2019 compared to now, we are surely more than 100% above what we were at the time, right? I think this is a good comparison as well.

Unknown Executive: Yes, first of all, I'd like to compliment Gerson on taking the value of the company in the middle of the pandemic, which is also a very low base. But what keeps us motivated is that even if we take the value of the company before the pandemic, let's say in mid-2019 compared to now, we are surely more than 100% above what we were at the time, right? I think this is a good comparison too.

Unknown Executive: It is important to complement the value of the company's value in the middle of the pandemic. It is also a very low base. Thank you very much. Thank you. Thank you very much.

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Unknown Executive: About the planes that Ariane mentioned, it's true, we have about 300 planes in campaigns, to have a round number, and we hope that these campaigns will be completed in the short term. By short term, I mean 2024 and 2025.

Unknown Executive: About the planes that Ariane talked about, it's true, we have about 300 planes in quarantine, so we have a round number, and we hope that these campaigns will be completed in the short term. By short term, I mean 2024 and 2025.

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Leda Alvin: [inaudible] Hi, good morning. Thank you for the opportunity to see the results. I wanted to ask you specifically about a point that was said in the mid-Aday, at least the back of the post of the junior coast on the defense sector, and he said a lot that Embraer is working to penetrate the United States market, with its defense aeronave, exploring new products and even the opportunity of funds and acquisitions. And I wanted to understand if there is any update about these initiatives in the American market, especially in the United States, and how do you feel about the opportunity for the acquisitions?

Unknown Executive: Okay.

Unknown Executive: Obrigada, with Bloomberg News. Please, you may continue.

Speaker Change: Got that.

Operator: The next question comes from Leda Alvim, with Bloomberg News. Please, you may continue.

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Leda Alvin: Hi, good morning. Thank you for the opportunity to see the results. I wanted to ask you specifically about a point that was said in the mid-Aday, at least the back of the post of the junior coast on the defense sector, and he said a lot that Embraer is working to penetrate the United States market, with its defense aeronave, exploring new products and even the opportunity of funds and acquisitions. And I wanted to understand if there is any update about these initiatives in the American market, especially in the United States, and how do you feel about the opportunity for the acquisitions?

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Operator: Hi, good morning. Thank you for the opportunity and congratulations on the results. I would like to ask specifically about a point that was made at Media Day a few months ago by Bosco da Costa Jr. about the defense sector, and he said a lot that Embraer is working to penetrate the United States market with its defense aircraft, exploring new products and even opportunities for infusions and acquisitions. I would like to understand if there was any update on these initiatives in the American market, especially in the defense sector, and how you look at these opportunities for infusions and acquisitions.

Unknown Executive: Hi, good morning. Thank you for the opportunity and congratulations on the results. I would like to ask specifically about a point that was made at Media Day a few months ago by Bosco da Costa Jr. about the defense sector, and he said a lot that Embraer is working to penetrate the United States market with its defense aircraft, exploring new products and even opportunities for infusions and acquisitions. I would like to understand if there was any update on these initiatives in the American market, especially in the defense sector, and how you look at these opportunities for infusions and acquisitions.

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Francisco Neto: Hi, Leda. I'm Francisco Falando. Good to hear from you, but once, thank you for the question. At this moment, Leda, we have a phase of studies in the United States. We are reinforcing our team there, but we have a phase of studies to define which of our next movements to try to accelerate our entry into the market. This situation at the moment.

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Francisco Neto: Hi Lida, this is Francisco speaking. Good to hear from you once again. Thank you.

Francisco Neto: Hi Elida, this is Francisco. Good to hear from you again.

Leda Alvin: Hi, Leda, I'm Francisco Falando, good to hear from you, but once, thank you for the question. At this moment, Leda, we have a phase of studies in the United States, we are reinforcing our team there, but we have a phase of studies to define which of our next movements to try to accelerate our entry into the market. This situation at the moment.

Francisco Neto: Thank you for the question. The C390 is advancing very well in several regions of the world, right? We talked about the contracts signed now with Holland, with Austria, the perspective: there is an advanced stage of negotiations with the Czech Republic, which we hope to leave this year. South Korea, also on the continent of Asia, was also a very important advance for the program. Undoubtedly, the American market, as the largest defense market in the world, is a target for us, and we believe that our plane, the C-390, would be a product... is very important to help the American Air Force to improve its productivity in this category of multi-military aircraft.

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Francisco Neto: Thank you for the question, and we believe that our plane, the C390, would be a product... is very important to help the American Air Force improve its productivity in this category of multi-military aircraft. At this moment, Leader, we are in a phase of studies in the United States. We are reinforcing our team there, but we are in a phase of studies to define what will be our next steps to try to accelerate our entry into that market. This is the situation at the moment.

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Unknown Executive: Thank you very much.

Francisco Neto: At this moment, Leader, we are in a phase of studies in the United States. We are reinforcing our team there, but we are in a phase of studies to define what will be our next steps to try to accelerate our entry into that market. This is the situation at the moment.

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Francisco Neto: Okay.

Unknown Executive: Thank you very much.

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Operator: Muito obrigada, e com isso, conclumos as sesses de perguntas e respostas e a conferência de resultados da Embraer. Muito obrigada por a sua participaço, e tenhamos todos um bom dia.

Speaker Change: Cover together equally to come clean with us as far as your peer group that he has passed us ear confidence that he has a paddle down days.

Unknown Executive: And with that, we conclude the questions and answers and the conference of the results of Embraer. Thank you very much for your participation and I have all a good day.

Unknown Executive: And with that we conclude the questions and answers and the conference of the results of Embraer. Thank you very much for your participation and I have all a good day.

Speaker Change: Regardless of party parcel it out autism bulge year.

Goodbye.

Francisco Neto: Goodbye.

Goodbye.

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