Company Highlights

Company established in 1969, privatized in 1994 and listed in USA in 2000.

Broad customer base in commercial and executive aviation, defense and
security segments.
Strong balance sheet with solid net cash position.
Global footprint.
Investment grade rating by Moodys and S&P.
Highly experienced management team.
Sector leader in the Dow Jones Sustainability Index 2011/2012.
2

Global Business

Operations in Brazil, USA, Europe and Asia

One of Brazils largest exporters of manufactured goods

Dual listed in Brazils Bovespa (1989) and NYSE (2000)

Diversified customer-base across five continents

France
Villepinte
Le Bourget

USA
Portugal

Fort Lauderdale
Nashville
Mesa

Alverca
vora*

China

Windsor Locks
Louisville
Minneapolis

Beijing
Harbin

Melbourne*

Singapore
Singapore

Brazil
So Jos dos Campos
Gavio Peixoto
Botucatu
Taubat
So Paulo

Under construction

Countries of Operation

Factories

Offices

Service Centers

Spare Parts Distribution Centers

Contracted/ Planned Authorized Network

Aircraft Deliveries

102+*

100*

18*

Commercial Jets

Executive Large Jets

Legacy e Lineage

Executive Light Jets

Phenom

2011 deliveries estimates

Revenues
US$ Million

Commercial aviation
Executive aviation
Defense and security
Aviation services/others

Guidance 2011: Net Revenues (US$ 5.6 5.8 billion)

2006-2008: US GAAP

* 2009-2010: IFRS
** 2011: YTD

Guidance

Revenues by Segment

Net Revenues
US$ Billion*

2.73

3.83

5.50

5.36

Commercial aviation

Defense and security

Executive aviation

Aviation services/others
* 2009-2010: IFRS

Revenues by Region

Net Revenues
US$ Billion*

5.24

6.33

5.50

5.36

North America

Europe

Latin America

Brazil

Asia Pacific

Others
* 2009-2010: IFRS

Firm Backlog
US$ Billion

E-Jets: 60 Airlines from 40 Countries

Product Portfolio

capacity: 70 to 80 seats
range: 2,100 nm (3,900 Km)

capacity: 78 to 88 seats
range: 2,000 nm (3,700 Km)

capacity: 98 to 114 seats

range: 2,400 nm (4,500 Km)

capacity: 108 to 122 seats

range: 2,200 nm (4,100 Km)

capacity: 37 seats
range: 1,750 nm (3,250 Km)

capacity: 44 seats
range: 1,650 nm (3,050 Km)

capacity: 50 seats
range: 1,550 nm (2,900 Km)

capacity: 50 seats
range: 2,000 nm (3,700 Km)

10

Commercial Aviation - Order Book 3Q11

Firm
Orders

Options

Total

Deliveries

Firm
Backlog

ERJ 145 Family

890

890

890

EMBRAER 170

188

34

222

182

EMBRAER 175

189

290

479

136

53

EMBRAER 190

531

293

824

371

160

EMBRAER 195

110

36

146

81

29

TOTAL E-JETS

1.018

653

1.671

770

248

TOTAL

1.908

653

2.561

1.660

248
11

E-Jets Customer Base Evolution

12

Worldwide Distribution
Commercial Jets Market Share Evolution Worldwide

Diversified Customers Across 5 Continents

60-120 Seats Jets

43%

30%
Firm Orders

Backlog

7%
5%
3%

Considering Accumulated Net Orders

Europe & CIS

Middle East & Africa
Latin America

North America
Asia Pacific & China

13

E-Jets Deployment

14

World Replacement Opportunities

(Jets 61-120 seats)

Nearly 1,000 aircraft with more than 15 years old

15

Embraer Market Forecast (2011-2030)

Scope Clauses relaxation allowing 80-seater aircraft as a natural growth of RJ50s in the US
Right-sizing of narrow-body operations
Regional aviation development in Emerging Markets
Acceleration of replacement of old & inefficient jets
Russia /
CIS
Europe

North
North
America
America

Projected Deliveries- Jets

6%

22%
23%

2,350
840

China
China

32%
33%

Market Segment
(Seats)

2010
2011 2030
2019
Deliveries

30-60

430
60

61-90

1,015
2,670

91-120

1,550
4,125

Latin
Latin
America
America

2,625
7,225

315
670

30-120

435
155

1,675
580

12%
9%

Africa

Middle
East

195
80

310
105

3%

4%

975
340
13%
Asia
Pacific

210
615
8%
9%

Around 7,225 jet deliveries (30-120 seats) in the next 20 years (US$ 320 bi)
16

Competitive Landscape

110 Seats
100 Seats
70-90 Seats

17

More than 400 executive jets in operation.

18

Product Portfolio
Aircraft

Model

Seats / Range

Phenom 100

up to 8 occupants/
1,178 nm

Cessna - Mustang CJ1+/M2

HondaJet

Phenom 300

up to 11 occupants/
1,971 nm

Legacy 450

7 to 9 passengers/
2,300 nm

Bombardier - Learjet 45XR

Cessna - XLS+/Latitude
Hawker 750

Mid-size

Legacy 500

8 to 12 passengers/
3,000 nm

Super Mid-Size

Legacy 600

13 to 14 passengers/
3,400 nm

Legacy 650

13 to 14 passengers/
3,900 nm

Entry
Certified: 2008

Light

Certified: 2009

Under development
Mid-light

Certified: 2001

Large
Certified: 2010

Competitors

Cessna - CJ2+/CJ3/CJ4
Hawker - PremierIA/400XP
Bombardier - Learjet 40XR
SyberJet - SJ30

Bombardier - Learjet 60XR/85

Cessna - Sovereign
Hawker - H900XP
Gulfstream G150
Bombardier - CL300/CL850
Cessna - X/Ten
Dassault - Falcon 2000S
Gulfstream - G200/G280
Hawker - H4000
Bombardier - CL605/GL5000
Dassault - Falcon 2000/900LX
Gulfstream - G350/G450
Bombardier - GL XRS
Gulfstream G500/G550/G650
Dassault Falcon 7X

Ultra-Long Range
Lineage 1000

Ultra-large
Certified: 2008

13 to 19 passengers/
4,500 nm

Airbus - ACJ 318/319/320

Boeing BBJ/BBJ2/BBJ3
SSJ VIP/ ARJ21B / An-148VIP

19

Market Share
Deliveries share (units)

$13.2Bi$16.6Bi$19.3Bi$22.2Bi$17.2Bi$18.2Bi
5%
10%
3.5%

9%
3.9%

6%
8%
4.7%

23%

23%

23%

8%

5%
6%
8%
8%
4.2% 6.4%

10%
6%
6.9%

24%

21%

11%

11%

12%

12%

16%

16%

17%

18%

30%

29%

28%

2005

2006

2007

21%
18%

22%

12%

7%

29%

28%

27%

2008

2009

2010

% OEM Share Total units

% OEM Share Total Revenues US$

Revenues share (US$ - based on B&CA list prices)

749

885

2%

3%

2%

19%

16%
3.1%
13%
7%

16%
3.5%
13%

2.7%
12%
7%
33%

35%

1,040 1,154

7%

1%
14%
3.3%
14%
6%

37%

40%

870

763

2%
11%

3%
10%

14%

19%

11%

13%

9%
33%

24%

22%

21%

20%

20%

2005

2006

2007

2008

2009

2010

Market Deliveries 2010: 763 units.

Embraer Revenues: $1.1 Bi.

Embraer Deliveries: 145 units.

Cessna

23%

25%

Market Revenues 2010: $18.2 Bi.

Embraer Bombardier

12%

Dassault
Gulfstream

Hawker-Beech
Others
20

2012-21 Market Forecast World Deliveries

New Jets Deliveries Values (Units)
2012-2021 Forecast

Sustained Growth
2012-2021 11,275 units

Downturn
2012-2021 9,125 units

9,125 ~ 11,275 jets US$ 210 ~ 260 billion over the next 10 years
21

2012-21 Market Forecast World Deliveries

ULTRA LARGE
ULTRA-LONG RANGE
LARGE
SUPER MID-SIZE

New bizjet deliveries (Units)

Forecast

MID-SIZE
MID-LIGHT
LIGHT
ENTRY*

11,275 jets

US$ 260 billion over the next 10 years

22

2012-21 Market Forecast and

Embraer Actual Fleet Distribution

North America
EMB >170 a/c

EMEA
EMB >150 a/c
3,415 a/c (30%)
US$ 88 Bi (34%)

5,265 a/c (47%)

US$ 109 Bi (42%)

Asia Pacific
EMB ~20 a/c
1,690 a/c (15%)
US$ 48 Bi (18%)
Latin America
EMB ~100 a/c
905 a/c (8%)
US$ 16 Bi (6%)

Brazil
EMB 90 a/c
550 a/c (5%)
US$ 8 Bi (3%)
23

Business Jets Traffic

US/FAA Bizjet Flight Activity

2006
2004
2007
2005

2011

2010

D
ec

N
ov

O
ct

Se
p

Au
g

Ju
l

Ju
n

ay
M

Ap
r

ar

2009
2008
Fe
b

Ja
n

230
220
210
200
190
180
170
160
150
140
130

European Bizjet Flight Activity

60
55
50

2011

45
40

2007
2010
2006
2009
2008
2005
2004

35
30
D
ec

N
ov

ct
O

Se
p

Au
g

Ju
l

Ju
n

ay
M

Ap
r

ar
M

Fe
b

Ja
n

25

24

Pre-owned Inventory: Recovering

Business Jets For Sale

25

Canada

Sweden
Germany
United Kingdom

United States

Italy

Luxembourg
Belgium
Switzerland
France
Spain

Greece

Pakistan

Portugal
Honduras
Panama
Mexico

Dominican Rep.
Mauritania

Kuwait

Libya

Thailand

Tunisia
Egypt

Indonesia
Venezuela

Niger

Colombia

Chad

Togo
Nigeria

Kenya
India

Equatorial Guinea

Ecuador

Gabon

Peru
Brazil

Argentina

Paraguay
Chile

Angola

Uruguay

Presence in more than 40 countries.

26

Defense and Security Portfolio

ISR (Intelligence, Surveillance

and Reconnaissance)

Advanced Training and

Light Attack

Modernization Programs

Transport of Authorities

Services

Military Tactical Transport

Command and Control

Systems
27

Super Tucano
Firm orders: 180 aircraft

Brazil: 99
Colombia: 25
Dominican Republic: 8
Chile: 12

Prospects:

Latin America
South East Asia
USA
Africa

Ecuador: 18
Indonesia: 8

XE Aviation: 1
Undisclosed: 9

Deliveries: 156 aircraft

To be delivered: 24 aircraft
28

EMBRAER KC-390

Length: 33.81 m (110.9 ft)

Wingspan: 35.06 m (115.0 ft)
Height: 10.26 m (33.7 ft)

New tactical military transport aircraft

Entering the Joint Definition Phase

Payload: 23 ton / Range: 1400 nm

Market Forecast 2025: 700 aircraft / US$ 50+ bi

Brazil, Chile, Colombia, Portugal, Czech Republic

and Argentina signed LOI for up to 60 KC-390 aircraft.
29

EMBRAER KC-390 Main Partners Selected

Liebherr-Aerospace:
environmental and cabin
pressure control systems.

IAE: V2500 engine.

Rockwell Collins: Pro Line
Fusion avionics.

BAE Systems: fly-by-wire

flight control systems
(computers and electronics).

Esterline: autothrottle system.

ELEB: landing gears.

Goodrich: primary flight control system (electrohydrostatic actuators, electro-backup hydrostatic

actuators, actuator electronics, and electrical controls).

DRS Defense: cargo handling and aerial

delivery system (CHS/ADS).

Messier-Bugatti-Dowty: wheels,
brakes, landing gear extension and
retraction system, and nose wheel
steering manifold.
30

Acquisitions and Partnerships

Acquisition of OrbiSat da Amaznia S.A radars division
Remote sensing and surveillance radars (ground, air and
maritime)
Acquisition of Atech Negcios em Tecnologias S.A. (50%)
C4I Systems
Commercial Agreement
Small UAV

Harpia

Elbit /AEL joint-venture to form a new company with

Embraer Defense and Security majority participation
UAS, simulators and modernization of avionics systems
31

Brazilian Army Priorities

SISFRON
Integrated Borders Monitoring System

Estimate: US$ 4 Billion

Comprising radars, communication networks, C4I,
unmanned air vehicles (UAV) and armored vehicles

32

Revenues by Region - 2010

33

34

2011 Outlook
Outlook

Net Revenues

US$ 5.6 5.8 billion

EBIT

US$ 465 million

EBIT margin

8.0% - 8.3%

EBITDA

US$ 700 million

EBITDA margin

12.0% - 12.5%
35

2011 Outlook
Outlook
Research

US$ 90 million

Development

US$ 160 million

CAPEX

US$ 200 million

US$ Million

YTD

Outlook

36

Financial Results
IFRS

37

Net Revenues / SG&A Expenses

Net Revenues - US$ Million

SG&A Expenses - US$ Million

167
142

Net Revenues

Gross Margin

173

172

151

Selling Expenses

G&A Expenses

Guidance 2011 - Net Revenues: US$ 5.6 - 5.8 billion

38

Income from Operations / EBITDA

Income from Operations - US$ Million

EBIT

EBIT Margin

EBIT: US$ 465 million

2011 Outlook EBIT Margin: 8.0% - 8.3%

EBITDA - US$ Million

EBITDA

EBITDA Margin

EBITDA: US$ 700 million

EBITDA Margin: 12.0% 2011 Outlook 12.5%

39

Net Income / Free Cash Flow

Net Income - US$ Million

Net Income

Free Cash Flow - US$ Million

Net Margin

40

Indebtedness Profile / Net Cash

Indebtedness Maturity

Net Cash - US$ Million

Long-term

Short-term
Loans Average Maturity (Years)

Total Debt 3Q11: US$ 1.8 Billion

Total Cash 3Q11: US$ 2.0 Billion

41

2010 Accomplishments
10th anniversaries: NYSE Euronext listing.
Presence in China, Singapore and GPX.

Embraer elected for the 3rd consecutive year, one

of the best companies to work for in Brazil.

Embraer selected as Gold Class

on the DJSI and also on the ISE.

43

Lean Results: E-Jets Final Assembly

Line Transformation

44

Automation Initiatives 2010

Automation initiatives continues in 2011

45

Sustainability Initiatives
Sustainability Initiatives
ISO 14001 and OHSAS
18001 Certifications

Brazilian Alliance for Bio-fuel

1st ethanol powered
aircraft in the World
Social Activities
Reforestation Projects

Recycling

Corporate Values

Ipanema

Greener Technology

46

Ownership Structure
723,665,044 Voting Shares

September, 2011

47

Investors Return
EPADS and Pay Out

EPADS

Dividend Yield (%)

Pay Out

2006-2008: US GAAP

* 2009-2010: IFRS

48

Forward Looking Statement

This presentation includes forward-looking statements or statements about events or
circumstances which have not occurred. We have based these forward-looking statements
largely on our current expectations and projections about future events and financial trends
affecting our business and our future financial performance. These forward-looking statements
are subject to risks, uncertainties and assumptions, including, among other things: general
economic, political and business conditions, both in Brazil and in our market. The words
believes, may, will, estimates, continues, anticipates, intends, expects and similar
words are intended to identify forward-looking statements. We undertake no obligations to
update publicly or revise any forward-looking statements because of new information, future
events or other factors. In light of these risks and uncertainties, the forward-looking events
and circumstances discussed in this presentation might not occur. Our actual results could
differ substantially from those anticipated in our forward-looking statements.