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Investor Presentaiton

Categorization of risk |G4-DMA: Economic performance| Helpline |G4-DMA: Procedure for complaints and claims related to environmental impacts, G4-DMA: Procedure for complaints and claims related to labor practices, G4-DMA: Procedure for complaints and claims related to human rights, G4-DMA: Procedure for complaints and claims related to impacts in society, G4-57, G4-58| The Helpline is a tool to register allega- tions and concerns related to attitudes that violate the Code of Ethics and Conduct and the law. Contacts are consolidated by an independent company and forwarded to the Compliance department, in order to as- sure the confidentiality2 of the person who files the case, who also receives a protocol number to monitor its progress online. Among the issues raised throughout 2016, nearly 60% were related to conduct devia- tion, of which 45% were pertinent. Refer- rals and solutions to the issues included coaching and conduct monitoring, in ad- dition to disciplinary measures, such as warnings, suspensions and dismissals. [G4- LA16, G4-HR12| In total, 325 reports were filed during the year, a 7% increase over 2015. This rise demonstrates the growing credibility of the channel and of the awareness among employees and third-party collaborators re- garding the conduct expected by the com- pany. In 2017, the Helpline changed its name to Helpline - Whistleblowing Chan- nel, in order to help the public better under- stand its purpose. Risk management |G4-2, G4-14, G4-46| Embraer's risk management methodology is backed by the Risk Management Policy and is segmented into four categories (see Cat- egorization of Risk). This structure enables the concentration of efforts for more asser- tive monitoring, identification and mitigation, in each situation. Upper management relies on the support of the Risk and Internal Controls department and is also involved, through interviews and meetings, in the periodic revision of trends and adversities that might compromise op- erational performance. The structure is re- inforced by the Audit and Risk Committee, which ensures autonomy to the Internal Audit area as well as to the external audit services. STRATEGIES OPERATIONAL FINANCIAL REGULATORY/ LEGAL RISKS THAT COULD IMPACT THE ECONOMIC VALUE OF THE BRAND AND THE IMAGE OF EMBRAER, WHICH ARE RELATED TO DECISIONS FROM THE BOARD OF EXECUTIVE OFFICERS. RESULTING FROM FAILU- RES OR INADEQUACIES IN INTERNAL PROCESSES THAT RESULT IN LOSS OF PRODUCTION, ASSETS, CUS- TOMERS OR REVENUES. ALSO INCLUDES EXTERNAL EVENTS, SUCH AS NATURAL CATASTROPHES AND OTHER EVENTS RESULTING FROM CLIMATE CHANGE. RISKS RELATED TO EX- POSURE OF FINANCIAL OPERATIONS. THE COMPANY ADOPTS PROTECTIVE MEA- SURES AIMED AT INCREA- SING THE GENERATION OF OPERATING CASH FLOW, THE POSITIVE RETURNS ON FI- NANCIAL TRANSACTIONS AS WELL AS FUNDRAISING. THE COMPANY'S OPERATIONS FOLLOW GUIDELINES OF THE FINANCIAL MANAGEMENT POLICIES APPROVED BY THE BOARD OF DIRECTORS. REFERS TO COMPLIANCE WITH LOCAL LAW WHERE EMBRAER OPERATES, INCLUDING REGULATIONS OF THE AERONAUTICAL SECTOR AT EACH STAGE OF AIRCRAFT MANUFAC- TURING, FROM DESIGN TO POST-SALES SUPPORT. 20 Employees, partners and suppliers may contact the following telephone numbers: Brazil: 0800-721-5968 Portugal: 800-180-118 United States: 1-877-900-8779 Singapore: 800-130-2122 China: 400-120-4946 France: 0805-080608 Netherlands: 0800-450-0019 or on the site www.embraerhelpline.com 2. Except in countries whose laws do not allow reports to be made anonymously. In this case, Embraer abides by local legislation. With respect to climate change, Embraer car- ries out risk analyses for periods of five years, considering aspects such as environmental laws (Brazilian laws and of countries in which Embraer operates), discussions on carbon taxation and the European Union Emissions Trading Scheme (EU ETS). The most recent analysis, carried out in 2012, did not identify any vulnerabilities of the company to these changes. The main factories are located in Brazil, a country that is not prone to extreme natural phenomena, and the units abroad are also at a low risk. Nevertheless, all operations follow guidelines to minimize adverse effects. In addition to categorizing risks considered to be environmental catastrophes, Embraer mon- itors potential impacts to its operations. Most of the units are ISO 14001 certified and the company maintains its goal of implementation of this certification at 100% of its manufactur- ing plants and service centers. [G4-EC2| Comittment to excellence |G4-DMA: Economic performance| Embraer establishes a corporate procedure for identifying relationship guidelines related to each stakeholder. Based on the Principles of Excellence in Management and on the Model of Management Excellence (MEG, in Portuguese) from the National Quality Foun- dation (FNQ, in Portuguese), Embraer keeps the Embraer Business System (SEE, in Portu- guese), which defines the main guidelines for the company's business model. By present- ing a systematic vision of Embraer, the SEE makes it possible to understand the main objectives of management by value streams, stimulating continuous improvement with fo- cus on the stakeholders (customers, share- holders, people, partners, society and the en- vironment), ensuring that all activities result in shared values (see more information in the GRI Indicators). [G4-24, G4-25, G4-26| 21
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