EMBRAER S.A. NOTICE TO THE MARKET

Rhea-AI Summary

On February 10, 2023, Embraer (NYSE: ERJ) issued a statement regarding a recent article in Estado de São Paulo, which suggested that the Brazilian Supreme Court's decision on the Social Contribution on Net Income (CSLL) could result in a R$ 1.16 billion annual loss for the company. Embraer clarified that it does not anticipate any material financial impact from this decision. The company regularly calculates and pays CSLL and has no pending legal issues regarding its collection. Therefore, Embraer does not foresee any alterations in its cash position or annual financial results due to this tax matter.

Positive

• No anticipated financial impact from the CSLL tax decision.
• Clarification provided reassures investors about cash position stability.

Negative

• None.

News Market Reaction

-0.24%

1 alert

-0.24% News Effect

On the day this news was published, ERJ declined 0.24%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

SÃO JOSÉ DOS CAMPOS, Brazil, Feb. 10, 2023 /PRNewswire/ -- EMBRAER S.A. ("Embraer" or "Company") (B3: EMBR3, NYSE: ERJ), in compliance with the provisions set forth in Brazilian Securities and Exchange Comission (Comissão de Valores Mobiliários) Resolution nº 44, of August 23, 2021, and in attention to the newspaper article published by Estado de São Paulo this morning, February 10, 2023, under the title "Companies project billionaire losses after STF decision" (free translation), according to which, in the context of the recent decision of the Brazilian Supreme Court (Supremo Tribunal Federal or "STF") regarding the "Social Contribution on Net Income" tax (Contribuição Social sobre o Lucro Líquido or "CSLL") and its potential impacts on taxpayers, "[a]t Embraer, the estimated impact is at least R$ 1.16 billion per year, according to sector specialists" (free translation), hereby clarifies its shareholders and the market that, contrary to what was incorrectly conveyed in the above mentioned article, Embraer does not anticipate material financial impacts for the Company relating to CSLL due to such STF decision, either on its cash position or on its annual results. The Company regularly calculates and collects CSLL, and informs that it does not have ongoing proceedings nor final, unappealable decision (decisão final transitada em julgado) on the non-collection of tax. Consequently, Embraer clarifies that it does not expect any impact on the calculation or collection of CSLL.

São José dos Campos, February 10, 2023.

Antonio Carlos Garcia
Executive Vice-President and CFO

 

View original content:https://www.prnewswire.com/news-releases/embraer-sa-notice-to-the-market-301744199.html

SOURCE Embraer S.A.

FAQ

What is the impact of the CSLL tax decision on Embraer (ERJ)?

Embraer does not expect any material financial impact from the CSLL tax decision as clarified in their February 10, 2023 statement.

How much financial loss did the article claim for Embraer due to the CSLL tax?

The article claimed a potential annual loss of R$ 1.16 billion for Embraer due to the CSLL tax decision.

Did Embraer indicate any ongoing legal issues regarding CSLL?

No, Embraer stated it has no ongoing proceedings or final decisions regarding non-collection of the CSLL tax.

Where can I find the original press release from Embraer regarding the CSLL tax?

The original press release can be found at the following link: https://www.prnewswire.com/news-releases/embraer-sa-notice-to-the-market-301744199.html.