Economic
and financial
performance 103-3: Economic performance

Avibras is predominantly an export-oriented company, with exports accounting for 80% of revenue compared with 20% for domestic sales. It should be noted that clients in the defence industry are exclusively governments, represented by their ministries of defence and armed forces.

The company operates under contract. This means that its production operations are geared to contracts signed with client governments, typically involving production and delivery on a long-term basis.

Avibras has a backlog of firm contracts that ensures the resumption of a level of activities compatible with the company’s capacity and capabilities. This enables the company to project results for 2019 that will guarantee revenues and the resumption of the margins achieved during recent years.

NET REVENUE BY MARKET 201-1

		2018	2017	2016
	Exports (R$ thousands)	524,299	1,539,799	1,257,531
	Domestic (R$ thousands)	119,201	154,297	154,497
	Total (R$ thousands)	643,500	1,694,096	1,412,028

NET REVENUE BY PRODUCT LINE 201-1

		2018	2017	2016
	Vehicles (R$ thousands)	23,628	727,107	811,388
	Munitions (R$ thousands)	2,908	584,847	240,560
	Services (R$ thousands)	36,729	56,448	96,537
	Electrophoretic painting (R$ thousands)	2,381	4,777	3,440
	Revenues by area – vehicles/munitions/engines (R$ thousands)	562,293	298,881	238,998
	Total (R$ thousands)	627,939	1,672,060	1,390,923

DISTRIBUTION OF ADDED VALUE (DAV) 201-1

		2018		2017*		2016
		%	R$ thousands	%	R$ thousands	%	R$ thousands
	Remuneration of labour	64	200,011	29	221,320	31	230,152
	Remuneration of government (taxes, charges and contributions)	17	53,128	23	175,530	22	163,334
	Remuneration of third-party capital	14	43,752	9	68,686	13	96,515
	Remuneration of own equity	5	15,626	39	297,637	34	252,425
	Total added value for distribution (R$ thousands)	100	312,517	100	763,173	100	742,426

* The principle accounting practices adopted by the company were altered in 2018 with the adoption of IFRS 9/CPC 48 – Financial Instruments, IFRS 15/CPC 47 – Revenue from Contracts with Clients and IFRIC 22/ICPC 21 – Transactions in Foreign Currency, compared with those disclosed in the financial statements on December 31, 2017.

GENERATION OF ADDED VALUE 201-1

		2018	2017	2016
	Gross added value¹ (R$ thousands)	368,822	777,067	744,357
	Revenue (R$ thousands)	677,690	1,710,036	1,441,392
	Inputs acquired from third-parties (R$ thousands)	308,868	932,969	697,035
	Net added value produced by the company² (R$ thousands)	368,822	777,067	744,357
	Depreciation and amortisation (R$ thousands)	17,576	16,663	17,915
	Total added value for distribution³ (R$ thousands)	382,749	779,836	760,341
	Added value received in transfer (R$ thousands)	13,927	2,769	15,984

1. Revenues less input costs.
2. Gross added value less depreciation and amortisation.
3. Net added value + value received in transfer.

TECHNOLOGICAL INNOVATION PLAN

In 2018, Financiadora de Estudos e Projetos (FINEP) released funds totalling R$18.2 million for the Technological Innovation Plan for the 2020 Artillery Saturation Rocket System for Area Saturation (ASTROS). The development bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES) granted R$18.7 million in financing for the construction of the new Hydroxyl-Terminated Polybutadiene plant (HTPB) in Lorena (SP), to be inaugurated in the beginning of 2020. The project will generate approximately 60 new direct and indirect jobs. 201-4

FINEP FUNDS (R$ MILLION)