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Investor Relations
                                                                              Phone: +55 12 3927 4404
                                                                              investor.relations@embraer.com.br
                                                                              www.embraer.com




                                                                                                                                       1



                                                                                                                  Investor Relations
Oct/12   This information is property of Embraer and cannot be used or reproduced without written permission.
Corporate and Business Strategy

                                               • Organic growth.
                                               • Margins enhancement through the P3E.
                                               • Business and revenues diversification.



                                              • Product strategy.
                                              • Diversification and expansion of customer base.
                                              • Excellence in Customer Experience (ECE).


                                              • Market share growth.
                                              • Margins improvement.
                                              • Product strategy and customer support focus.



                                              • Establish Embraer as the defense house of Brazil.                                     2
                                              • Organic growth and acquisitions.

                                                                                                                 Investor Relations
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Aircraft Deliveries


        Commercial Jets                                                                                    Executive Jets




                                                                                                                      98    126
       165
133           125                                                                                                                     83
                       101             105                                                            2
                                                         83
                                                                                                                                                 40
                                                                                    36               37
                                                                                                                      21    19        16
                                                                                                                                                  6

2007   2008   2009    2010             2011           9M2012                       2007             2008             2009   2010      2011    9M2012



                                                                                                                Light Jets - Phenom

                                                                                                                Large Jets - Legacy & Lineage                     3



                                                                                                                                             Investor Relations
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Revenues

               US$ Million




                                    6,335
                                                               5,498                      5,364                      5,803
                    5,245
                                                                                                                                      4,278




                     2007           2008                        2009                       2010                       2011            9M2012



                             2012 Outlook: US$ 5.8 – 6.2 billion                                                                                                    4

2007-2008: USGAAP
2009-2012: IFRS


                                                                                                                                               Investor Relations
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Revenues by Segment – 2012 Outlook
 Embraer: US$ 5.8 – 6.2 Billion                                                                Commercial Aviation: US$ 3.70 – 3.85 Billion




              2,025                                                                                                                        1,176
                                                                                                                        1,078
                                                                                                             996                                    956
                                    1,717
                                                  1,405                                                                              760
     1,364
                      1,156



                                                                                                             3Q11       4Q11        1Q12   2Q12    3Q12

     3Q11     4Q11    1Q12          2Q12          3Q12


  Executive Aviation: US$ 1.10 – 1.30 Billion                                                    Defense and Security: US$ 900 – 950 Million




               603                                                                                                       293
                                                                                                                                           266     259
                                                                                                                                    232
                                                                                                             189
                                   261
       149            152                      167                                                                                                                             5

       3Q11   4Q11    1Q12        2Q12        3Q12                                                          3Q11       4Q11         1Q12   2Q12    3Q12

                                                                                                                                                          Investor Relations
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Revenues Breakdown

                 Revenues by Segment                                                                                Revenues by Region
Revenues                                                                                Revenues
US$ Billion   5.49       5.36                        5.80                               US$ Billion        5.49                         5.36           5.80
               2%          1%                          2%                                                                                4%
              12%                                                                                            6%                                         4%
                          15%                         15%
                                                                                                            21%                         22%            23%
              17%
                          23%                         19%
                                                                                                            11%                         13%            17%
                                                                                                             7%
                                                                                                                                        15%            11%

              69%                                                                                           33%
                          61%                         64%                                                                                              25%
                                                                                                                                        33%

                                                                                                            22%                                        20%
                                                                                                                                        13%

              2009        2010                        2011                                                   2009                       2010            2011


        Commercial aviation        Defense and security                                              North America                      Europe         Latin America
        Executive aviation         Others                                                            Brazil                             Asia Pacific   Others                       6



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Firm Order Backlog

    US$ Billion




          16.0                    15.4                           14.7
                                                                                                12.9                     12.4




         3Q11                    4Q11                           1Q12                            2Q12                     3Q12
                                                                                                                                                     7



                                                                                                                                Investor Relations
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8



                                                                                                       Investor Relations
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Embraer Commercial Aviation




                                                                                                                                      9
      OVER 80 AIRLINES IN MORE THAN 50 COUNTRIES

                                                                                                                 Investor Relations
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Product Portfolio




                                                                                                                  capacity: 37 seats
                    capacity: 70 to 80 seats                                                                      range: 1,750 nm (3,250 Km)
                    range: 2,100 nm (3,900 Km)




                                                                                                                  capacity: 44 seats
                    capacity: 78 to 88 seats                                                                      range: 1,650 nm (3,050 Km)
                    range: 2,000 nm (3,700 Km)




                    capacity: 98 to 114 seats                                                                     capacity: 50 seats
                    range: 2,400 nm (4,500 Km)                                                                    range: 1,550 nm (2,900 Km)




                                                                                                                  capacity: 50 seats
                    capacity: 108 to 122 seats                                                                    range: 2,000 nm (3,700 Km)
                    range: 2,200 nm (4,100 Km)
                                                                                                                                                10



                                                                                                                               Investor Relations
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E-Jets Customer Base Evolution




                                                                                                                                  11



                                                                                                                 Investor Relations
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E-Jets Family Order Book – 3Q12




        E-JETS                               Firm orders                         Deliveries                        Firm Backlog

      EMBRAER 170                                     192                                182                           10

      EMBRAER 175                                     191                                160                           31

      EMBRAER 190                                     543                                441                           102

      EMBRAER 195                                     137                                102                           35

         Total                                     1,063                                885                            178
                                                                                                                                  Investor Relations
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Worldwide Distribution
Commercial Jets Market Share Evolution Worldwide                                                    E-Jets Customer Base by Business Model
                  60-120 Seats Jets
                                                                                                            (% of E-Jets Fleet+Backlog)

                                                                                                                          19%

                                                                                                     48%                                 Low Cost Carriers
                                                                             43%
                                                                                                                             33%         Regional Airlines
                                                                                                                                         Network Airlines

                                                                            30%


                                                                                                   Firm Orders                              Backlog


                                                                             7%                                  12%                             16%
                                                                             5%                                           9%            33%               8%
                                                                                                35%
                                                                             3%
                                                                                                                        27%             13%       30%
                                                                                                         17%

         Considering Accumulated Net Orders

                                                                                                Europe & CIS
                                                                                                                                    North America
                                                                                                Middle East & Africa
                                                                                                                                    Asia Pacific & China            13
                                                                                                Latin America



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E-Jets Deployment
                                                                     helping airlines to be more efficient




World                                                                                                                              14

         Right-sizing                                                    New Markets Replacement of Natural
                                                                                        old Jets    Growth
                                                                                                                  Investor Relations
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Embraer Market Forecast (2012-2031)
  •     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                                                                    445
                                                                                                                                          155
                                                                America
                                                                America                                   1,460
                                                                                                           580                              7%
                                                                                                                                            6%
                                                                                                              22%
  Projected Deliveries- Jets                                  2,195
                                                               840                                                                                   China
                                                                                                                                                     China
                    2012 – 2019                                   32%
Market Segment      2010 2031
                                                                                                                                 Middle              1,005
                                                                                                                                                      340
    (Seats)          Deliveries                                                                           Africa                  East
                                                                                                                                                      15%
                                                                                                                                                      13%
      30-60             405
                         60
                                                                                                         210
                                                                                                          80                     305
                                                                                                                                 105
      61-90            2,625
                       1,015                                                                                                                            Asia
                                                                               Latin
                                                                               Latin                        3%                    4%
      91-120           3,765
                       1,550                                                                                                                           Pacific
                                                                              America
                                                                              America
      30-120           6,795
                       2,625                                                                                                                            210
                                                                                                                                                        505
                                                                               315
                                                                               670                                                                      7%
                                                                                                                                                        8%
                                                                                10%
                                                                                12%

                                                                                                                                                                                  15
Around 6,795 jet deliveries (30-120 seats) in the next 20 years (US$ 315 bi)

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Competitive Landscape

                      120

                                                                                                                                                     CS100
                      110                         110 Seats
                                                                                     E195
Capacity 32'' pitch




                               CRJ 1000                                                                                                  100 Seats
                      100                                                                                   E190
                                                                                                           SSJ100/95
                      90    70-90 Seats
                                                                ARJ21
                                                                                    MRJ90
                              CRJ900                         E175
                      80

                                CRJ700                                  E170
                      70
                                                                                    MRJ70

                      60
                       1600      1800                2000                    2200                   2400                   2600               2800      3000
                                                                                                                                                                                16
                                                                                Range Nominal

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Investor Relations
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Embraer Executive Jets




            Embraer Executive Jet
             Delivered in Brazil




                                                                                                                                     18
  MORE THAN 550 AIRCRAFT DELIVERED IN OVER 40 COUNTRIES

                                                                                                                    Investor Relations
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Product Portfolio
                             Aircraft                                    Model                       Seats / Range                       Competitors

     Entry                                                                                         up to 8 occupants/          • Cessna - Mustang CJ1+/M2
                                                                   Phenom 100                           1,178 nm
                             Certified: 2008                                                                                   • HondaJet

                                                                                                                               •   Cessna - CJ2+/CJ3/CJ4
                                                                   Phenom 300                     up to 11 occupants/          •   Hawker - PremierIA/400XP
     Light                                                                                             1,971 nm                •   Bombardier - Learjet 40XR
                             Certified: 2009
                                                                                                                               •   SyberJet - SJ30
                   Under development                                                                                           • Bombardier - Learjet 45XR
   Mid-light                                                        Legacy 450                     7 to 9 passengers/          • Cessna - XLS+/Latitude
                                                                                                        2,300 nm               • Hawker 750
                                                                                                                               • Bombardier - Learjet 60XR/85
                                                                                                                               • Cessna - Sovereign
    Mid-size                                                                                      8 to 12 passengers/          • Hawker - H900XP
                                                                    Legacy 500
                                                                                                        3,000 nm               • Gulfstream – G150
                                                                                                                               • Bombardier - CL300/CL850
                                                                                                                               • Cessna - X/Ten
 Super Mid-Size                                                     Legacy 600                   13 to 14 passengers/
                                                                                                                               • Dassault - Falcon 2000S
                                                                                                       3,400 nm
                             Certified: 2001                                                                                   • Gulfstream - G200/G280
                                                                                                                               • Hawker - H4000

     Large                                                                                                                     • Bombardier - CL605/GL5000
                                                                    Legacy 650                   13 to 14 passengers/
                                                                                                                               • Dassault - Falcon 2000/900LX
                                                                                                       3,900 nm
                             Certified: 2010                                                                                   • Gulfstream - G350/G450

                                                                                                                               • Bombardier - GL XRS
Ultra-Long Range                                                                                                               • Gulfstream – G500/G550/G650
                                                                                                                               • Dassault – Falcon 7X
                                                                                                                               • Airbus - ACJ 318/319/320
                                                                                                                                                                       19
                                                                   Lineage 1000                  13 to 19 passengers/
   Ultra-large                                                                                                                 • Boeing – BBJ/BBJ2/BBJ3
                                                                                                       4,500 nm
                             Certified: 2008                                                                                   • SSJ VIP/ ARJ21B / An-148VIP

                                                                                                                                                      Investor Relations
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Market Share
Revenues share (US$ - based on B&CA list prices)                                                                                                                  Deliveries share (units)

                                   $16.6Bi   $19.3Bi   $22.2Bi      $17.2Bi           $18.2Bi          $18.1Bi                                          885      1,040   1,154    870        763          703
                                      8%       6%        5%            6%               10%                 7%                                          3%         2%     1%       2%         3%            2%
% OEM Share – Total Revenues US$




                                               8%        8%            8%                                  4%                                                                                10%            7%
                                     9%                                                 6%                 6%                                           16%       16%     14%     11%
                                     4%        5%        4%            6%                7%                                                                               3%                              14%




                                                                                                                            % OEM Share – Total units
                                                                                                                                                        3%        3%              14%        19%
                                               23%       24%                                                27%                                         13%       13%     14%
                                     23%                               21%              21%                                                                                                               15%
                                                                                                                                                                          6%      11%        13%
                                                                                                                                                        7%         7%
                                                                                                                                                                                    9%                     9%
                                     11%       12%       12%           18%                                                                                                                   12%
                                                                                                           15%
                                                                                        22%
                                     16%                 18%                                                                                            35%       37%     40%
                                               17%                     12%                                  9%                                                                    33%                     26%
                                                                                         7%                                                                                                  23%

                                     29%       28%       29%           28%              27%                 33%                                                                                            26%
                                                                                                                                                        24%       22%     21%     20%        20%

                                    2006      2007      2008           2009            2010              2011                                           2006      2007    2008    2009       2010        2011


                                     Market Revenues 2011: US$18.1 billion                                                                                    Market Deliveries 2011: 703 units
                                       Embraer Revenues: US$1.0 billion                                                                                         Embraer Deliveries: 99 units
                                                                                                                                                                                                                     20
                                                                                      Bombardier                         Dassault                                    Hawker-Beech
                                                          Embraer                                                        Gulfstream
                                                                                      Cessna                                                                         Others

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2013-22 Market Forecast - World Deliveries




                                                                                                                                   21



                                                                                                                  Investor Relations
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2013-22 Market Forecast




                                                                                                                                  22



                                                                                                                 Investor Relations
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Business Jets Used Market Inventory




                                                                                                                                  23
                                    Improvement halted

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24



                                                                                                       Investor Relations
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Embraer Defense and Security




                                                                                                                                  25
        OVER 50 ARMED FORCES IN 48 COUNTRIES
                                                                                                                 Investor Relations
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Embraer Defense and Security
  Embraer Defense and Security, partners and affiliated companies




                                                                                                                                       26



                                                                                                                      Investor Relations
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Embraer Defense and Security Results
                                         Revenues Evolution                                (US$ Million)




                                                                                                                    Revenue Participation (%)
                                                                  GAGR 33%                              15%
                                                                                           13%
                                                                 8%           9%
                                      6%            7%



                                                                                                         852
                                                                                            670
                                                                 505          499
                                                    346
                                      227

                                      2006         2007          2008         2009         2010         2011


          EBIT Evolution                  (%)                                                 Backlog Evolution                                               (US$ Billion)




                                          13.4%                                                                                                        3.2        3.3    3.3
         12.4%   12.2%       12.0%
                                                        9.6%
  6.3%                                                                                                                                          1.5
                                                                                             1.1           1.0
                                                                                                                                                                                                 27
  2006   2007    2008         2009          2010          2011                               2006         2007                                  2008   2009      2010    2011

                                Não contabiliza as receitas provenientes da OGMA nos anos de 2006 a 2010.

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Super Tucano


Firm orders: 190 aircraft                                                                                   Addressable Market Forecast 2020
                                                                                                                                   (US$ million)
     Brazil: 99
     Colombia: 25                                                                                                                            Long-term
                                                                                                                                                   700
     Dominican Republic: 8                                                                                                Medium-term
                                                                                                                                 2,000       Short-term
     Chile: 12
                                                                                                                                               800
     Ecuador: 18
     Indonesia: 16
     Greystone (TACAir): 1
                                                                                                                  Total Market Forecast:
     Undisclosed: 11
                                                                                                           300 aircraft / US$ 3.5 billion
Deliveries: 168 aircraft

                                                                                                                                                                           28

Partnership with Boeing to provide weapons integration, increasing capabilities of the aircraft.

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EMBRAER KC-390




Brazil   Colombia Argentina          Chile           Portugal Czech Rep.                                    Total Market Forecast 2025:
 (28)       (12)     (6)              (6)               (6)       (2)
                                                                                                                 700 aircraft / US$ 50+ bi

• A new tactical military transport and tanker aircraft
• First flight in 2014
• Six countries
• Letters of intent totalizing 60 aircraft
• Agreement with Boeing to share technical knowledge and
  evaluate markets for joint sales efforts.
                                                                                                                                                        29
• The Brazilian Air Force (FAB) and Embraer concluded the
  Preliminary Design Review.

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Modernization Programs

                F-5M                                                                                                        A1-M                    A-4




 Addressable Market Forecast 2025
                      (US$ million)
                                                                                             Brazilian Navy A-4
                            Long-term                                                                 12 aircraft
                                567                                                                    2 prototypes at GPX-CS
          Medium-term
             505
                              Short-term                                                     Brazilian Air Force A-1M
                                 527
                                                                                                      43 aircraft
                                                                                                      14 received by Embraer for the modernization


    Total Market Forecast*:                                                                  Brazilian Air Force F-5M
                                                                                                      46 a/c + 11 a/c (2nd batch)                            30
 234 aircraft / US$ 1.6 billion                                                                       45 already delivered
 * Considering the market for F-5 and Tucano modernization

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New Portfolio
          Command and Control Systems
          Onboard Systems
          Simulation Systems
          Electronic Warfare Systems
          Intelligence Systems
          Air Traffic Management and Control Systems


          JV with Elbit/AEL Sistemas where Embraer Defense and
                                                                                                                                 Security of Critical
HARPIA    Security has a major participation                                                                                       Infrastructure
          UAS, simulators and modernization of avionics systems                                                                   Public Security
                                                                                                                                (sporting events, cities, states)

                                                                                                                                Airport Management
          Air, ground and sea surveillance radars                                                                                     Systems
          Remote sensing                                                                                                             SISFRON
                                                                                                                                     SisGAAZ
          Engine and Component Maintenance
          Overhaul and Modernization
          Aerostructure Manufacturing and Assembling



VISIONA   Satellite                                                                                                                                                31



                                                                                                                                                  Investor Relations
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Brazilian Army Priorities


               SISFRON
Integrated Borders Monitoring System
       First phase: US$ 400 Million
       Total estimate: US$ 4 Billion
Comprising radars, communication networks, C4I,
unmanned air vehicles (UAV) and armored vehicles




                          Comm
                           9%             UAV
                                          12%
  Sensors
    59%
                                                                                                                      Satellite
                                                                                                     Estimate: US$ 400 Million
                                                   SW
                                                   20%
                                                                                Participation in the first Brazilian Geostationary Satellite
                                                                                                                                                     32



                                                                                                                                    Investor Relations
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Revenues Breakdown Evolution

                                                                                     2020                                     Services
                                                                                                                                11%
                                                                                                                                         Transport
                                                                                                                                            4%



                                                                                             Sisfron, Satellite
                                                                                                   10%
                                                                                                                                                          KC-390
                                                                                                                                                           34%

                           2011
                                         KC-390                                           New Business
                Services                  19%                                                 14%
                  10%

                                                                                                                                                     Light Attack and
                                                               ISR                                    Radar, C4I, UAV,                                   Combat
                                                               10%                                         MRO                                              9%
Modernization                                                                                              18%
   25%
                                                                   Light Attack
                                                                       9%                                                     New Business
                                                                                             • Airport Management Systems
                                                                                             • SisGAAz (“Blue Amazon” Integrated Management System)
                                           Radar, C4I, UAV,
                                                                                             • Security of Critical Infrastructure
                                               MRO
                                                27%                                                                                                                       33
                                                                                             • Public Security (sporting events, cities, states)



                                                                                                                                                         Investor Relations
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2012 Outlook




                                                                                                                         34



                                                                                                        Investor Relations
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2012 Outlook

                                                                                                                      Commercial aviation
                                                                                                                      Executive aviation
  Net Revenues                US$ 5.8 – 6.2 billion                                                                   Defense and security
                                                                                                                       Others




                                       Outlook in 1Q12                                       Current Outlook         (Revised in 2Q12)




      EBIT                   US$ 460 – 530 Million                                            US$ 520 – 590 Million

   EBIT margin                           8.0% – 8.5%                                                       9.0% – 9.5%



     EBITDA                  US$ 670 – 780 Million                                            US$ 720 – 840 Million

                                                                                                                                                    35
  EBITDA margin                        11.5% – 12.5%                                                    12.5% – 13.5%

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2012 Outlook

        Research                                         US$ 100 million
                                                                                                                          TOTAL
     Development                                          US$ 350 million
                                                                                                                          US$ 650
           CAPEX                                          US$ 200 million                                                 million


     US$ Million


                                                                                                                             CAPEX

                                                                                                                             R&D

                                                                                                                             Investment/Revenue


                                                                                                                                                         36



                                                                                                                                        Investor Relations
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Net Revenues / SG&A Expenses

         Net Revenues - US$ Million                                                                  SG&A Expenses - US$ Million


                                                               25.3%                                                                       194
                                                                                                                 186               180
                          23.2%            23.6%                                             172                                                         170
              22.5%
   21.2%
                                                                                                                  72                        75
                                                                                              69                                   71                      59



            2,025
                                        1,717
 1,364                                                      1,405                                                 114              109     119            111
                        1,156                                                                 103




 3Q11       4Q11        1Q12            2Q12                3Q12                             3Q11                4Q11              1Q12    2Q12          3Q12




US$         Net Revenues                    Gross Margin                                   US$                 G&A Expenses               Selling Expenses
2010            5,364                           19.1%                                     2010                           198                      374
2011            5,803                           22.5%                                     2011                           262                      420                    38



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Income from Operations / EBITDA

Income from Operations - US$ Million                                                                            EBITDA - US$ Million


                                                                                           13.8%
                                                                                                                                                      14.9%
                                                          10.2%                                                                           15.4%
                                      11.5%                                                                                       12.8%
9.1%                                                                                                                                                 11.8%
                      7.4%                                  7.2%
                                                                                                                                                       42
                                                            42
                                                                                                                                          265
        -0.3%                           197                                                                      2.9%
                                                                                             188
 124                                                                                                                              148                  166
                      86                                    101
                                                                                                                  59

         (6)                                                                                3Q11                4Q11              1Q12    2Q12        3Q12
3Q11    4Q11          1Q12             2Q12                3Q12



 US$            EBIT                        EBIT Margin                                     US$                       EBITDA              EBITDA Margin
 2010           392                          7.3%                                           2010                        611                  11.4%
 2011           318                          5.5%                                           2011                       557                   9.6%                     39


                                          Without Chautauqua non-recurring event
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Net Income / Free Cash Flow

          Net Income - US$ Million                                                                          Free Cash Flow - US$ Million

                       9.1%

                                                                  4.6%                                                          277
                                              3.2%
                           105                                                                                          414
   0.1%                                        55                  65                                                                                  155
   2                                                                                                20                                                         25
                                                                                                  (73)                                                                 (30)
             -4.5%                                                                                                      (77)             (70)           (76)           (50)
                                                                                                    (60)                 (60)            (40)           (55)           (58)
                                                                                                                                         (65)
              -92                                                                                 (112)                                                               (138)
                                                                                                                                        (174)
                                                                                                  3Q11                4Q11              1Q12           2Q12           3Q12
  3Q11       4Q11          1Q12 *            2Q12*               3Q12
                                                                                                     Free cash flow
                                                                                                   Net cash generated (used) by operating activities*
                                                                                                    Additions to PP&E                           Additions to Intangible

   US$         Net Income                         Net Margin                                                           US$
   2010              330                            6.2%                                                               2010                     287
   2011              112                            1.9%                                                               2011                       1                                  40


* Reflects re-calculation of Company’s income tax base                                       * Net of Financial assets adjustment

                                                                                                                                                                    Investor Relations
                                 This information is property of Embraer and cannot be used or reproduced without written permission.
Indebtedness Profile / Net Cash

         Indebtedness Maturity                                                                             Net Cash - US$ Million



         15%                                             17%
26%               26%                22%

                                       6.1                 6.0
         4.8
4.5
                   4.2
                                                                                                                446
         85%                                             83%
74%               74%                78%
                                                                                                                                302     290
                                                                                            193
                                                                                                                                                 123


3Q11     4Q11     1Q12               2Q12                3Q12                              3Q11                4Q11             1Q12    2Q12    3Q12


       Long-term      Short-term
       Loans Average Maturity (Years)


 Total Debt 3Q12         US$ 2.08 Billion                                                  Total Cash 3Q12                        US$ 2.21 Billion              41



                                                                                                                                               Investor Relations
                         This information is property of Embraer and cannot be used or reproduced without written permission.
Investments

    US$ Million




                                                                           350


                                                                                                                         200
                                                         176
                                                                                                           132
                          100
             52

             RESEARCH                                   DEVELOPMENT                                              CAPEX

                                                                                                                                                42
                                            YTD 2012                              2012 Outlook


                                                                                                                               Investor Relations
                  This information is property of Embraer and cannot be used or reproduced without written permission.
Investors’ Return


                     EPADS and Pay Out                                                                                     Dividend Yield (%)



                                                                      115%
                    68%
       53%                   52%
                                                    34%               35%
                                    26%
                                                                                                                                    4.34
                    2.64            2.57                                                                                                   3.28
     2.11                  2.14                                      1.68                                          2.91
                                                     1.83                                                                                         2.23      2.13
                                                                                                  2.01
                                                                     0.62

     2006           2007   2008    2009*            2010*           2011*                          2006             2007            2008   2009   2010      2011



                     EPADS                     Pay Out

                                                                                                                                                                          43
 2006-2008: US GAAP
* 2009-2011: IFRS
                                                                                                                                                         Investor Relations
                                   This information is property of Embraer and cannot be used or reproduced without written permission.
Ownership Structure


                           724,040,044 Voting Shares




                                                                                                                                      44
 June, 2012



                                                                                                                     Investor Relations
              This information is property of Embraer and cannot be used or reproduced without written permission.
45



                                                                                                       Investor Relations
This information is property of Embraer and cannot be used or reproduced without written permission.
Sustainability Initiatives

                                                                                                                             ISO 14001 and OHSAS
                                                                                                                              18001 Certifications




                                                                                 Brazilian Alliance for Bio-fuel


                                                                                                                             1st ethanol powered
                                                                                                                             aircraft in the World

                   Social Activities
                                                                                      Reforestation Projects


                                                                                                                          Ipanema
                                                         Recycling




                                                                                                                                                            46
Corporate Values
                                                Greener Technology

                                                                                                                                           Investor Relations
                   This information is property of Embraer and cannot be used or reproduced without written permission.
Lean Results
E-Jets Final Assembly Line Transformation

“Dock” layout - 2008                                        Assembly Line – 2009                                                  Assembly Line – 2011




 Performance indicators      May/2008       July/2009         Sep/2009          June/2010           Mar/11            Out/11
                           (15ac/month)   (10ac/month)      (10ac/month)       (8ac/month)       (10ac/month)      (12ac/month)

   Number of positions         12                6                 5                 4                 4                  4

    Cycle time (days)          18               12                10                 8                 8                  7

 Work in process (US$mi)       212             106                95                89                 68                68

Number of non-conformity
per a/c
                               32                7                1,7                0                 0                  0
  Over time (% of work                                                                                                                                             47
  hours)
                               10              1,5                1,5               0,2                0                  0



                                                                                                                                                  Investor Relations
                                      This information is property of Embraer and cannot be used or reproduced without written permission.
P3E Results



 Kaizen - E-Jets Cycle Reduction                                                                    Cost of Non Quality Reduction

               Lead Time (E-Jets)                                                                                         Cost of Non Quality


                                                                40%                                                                               44%




 2005   2006   2007   2008       2009         2010        2011                                           2008                       2009        2010




40% reduction on the production cycle                                                                              44% reduction on CNQ
                                                                                                                                                                        48



                                                                                                                                                       Investor Relations
                             This information is property of Embraer and cannot be used or reproduced without written permission.
“Boa Idéia” Program Evolution


                                                                                                                                        28,3
        Cost: US$ 18.9 mi
                                                                                                                        22,7                                  24,0
                                                                                                                                                 22,7
        Benefit: US$ 175.5 mi


                                                                                                        14,5
                                                                                        12,7
                          10,7                                          10,6
                  9,1                                    8,4
                                         7,2

      3,5                                                                                                                          3,1
                                                                                                  1,6              2,5                         2,2      2,5
            0,9         1,2                                      1,6              1,3
0,4                               0,5              0,8

                                                                                                                                                                                  49
 2000       2001        2002        2003            2004            2005            2006            2007            2008            2009       2010     2011

                                                                                                                                                                 Investor Relations
                                 This information is property of Embraer and cannot be used or reproduced without written permission.
50



                                                                                                       Investor Relations
This information is property of Embraer and cannot be used or reproduced without written permission.
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.

                                                                                                                                                51



                                                                                                                               Investor Relations
                        This information is property of Embraer and cannot be used or reproduced without written permission.

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Embraer 3Q12 Nov 2012 Book

  • 1. Investor Relations Phone: +55 12 3927 4404 investor.relations@embraer.com.br www.embraer.com 1 Investor Relations Oct/12 This information is property of Embraer and cannot be used or reproduced without written permission.
  • 2. Corporate and Business Strategy • Organic growth. • Margins enhancement through the P3E. • Business and revenues diversification. • Product strategy. • Diversification and expansion of customer base. • Excellence in Customer Experience (ECE). • Market share growth. • Margins improvement. • Product strategy and customer support focus. • Establish Embraer as the defense house of Brazil. 2 • Organic growth and acquisitions. Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 3. Aircraft Deliveries Commercial Jets Executive Jets 98 126 165 133 125 83 101 105 2 83 40 36 37 21 19 16 6 2007 2008 2009 2010 2011 9M2012 2007 2008 2009 2010 2011 9M2012 Light Jets - Phenom Large Jets - Legacy & Lineage 3 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 4. Revenues US$ Million 6,335 5,498 5,364 5,803 5,245 4,278 2007 2008 2009 2010 2011 9M2012 2012 Outlook: US$ 5.8 – 6.2 billion 4 2007-2008: USGAAP 2009-2012: IFRS Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 5. Revenues by Segment – 2012 Outlook Embraer: US$ 5.8 – 6.2 Billion Commercial Aviation: US$ 3.70 – 3.85 Billion 2,025 1,176 1,078 996 956 1,717 1,405 760 1,364 1,156 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Executive Aviation: US$ 1.10 – 1.30 Billion Defense and Security: US$ 900 – 950 Million 603 293 266 259 232 189 261 149 152 167 5 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 6. Revenues Breakdown Revenues by Segment Revenues by Region Revenues Revenues US$ Billion 5.49 5.36 5.80 US$ Billion 5.49 5.36 5.80 2% 1% 2% 4% 12% 6% 4% 15% 15% 21% 22% 23% 17% 23% 19% 11% 13% 17% 7% 15% 11% 69% 33% 61% 64% 25% 33% 22% 20% 13% 2009 2010 2011 2009 2010 2011 Commercial aviation Defense and security North America Europe Latin America Executive aviation Others Brazil Asia Pacific Others 6 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 7. Firm Order Backlog US$ Billion 16.0 15.4 14.7 12.9 12.4 3Q11 4Q11 1Q12 2Q12 3Q12 7 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 8. 8 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 9. Embraer Commercial Aviation 9 OVER 80 AIRLINES IN MORE THAN 50 COUNTRIES Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 10. Product Portfolio capacity: 37 seats capacity: 70 to 80 seats range: 1,750 nm (3,250 Km) range: 2,100 nm (3,900 Km) capacity: 44 seats capacity: 78 to 88 seats range: 1,650 nm (3,050 Km) range: 2,000 nm (3,700 Km) capacity: 98 to 114 seats capacity: 50 seats range: 2,400 nm (4,500 Km) range: 1,550 nm (2,900 Km) capacity: 50 seats capacity: 108 to 122 seats range: 2,000 nm (3,700 Km) range: 2,200 nm (4,100 Km) 10 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 11. E-Jets Customer Base Evolution 11 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 12. E-Jets Family Order Book – 3Q12 E-JETS Firm orders Deliveries Firm Backlog EMBRAER 170 192 182 10 EMBRAER 175 191 160 31 EMBRAER 190 543 441 102 EMBRAER 195 137 102 35 Total 1,063 885 178 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 13. Worldwide Distribution Commercial Jets Market Share Evolution Worldwide E-Jets Customer Base by Business Model 60-120 Seats Jets (% of E-Jets Fleet+Backlog) 19% 48% Low Cost Carriers 43% 33% Regional Airlines Network Airlines 30% Firm Orders Backlog 7% 12% 16% 5% 9% 33% 8% 35% 3% 27% 13% 30% 17% Considering Accumulated Net Orders Europe & CIS North America Middle East & Africa Asia Pacific & China 13 Latin America Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 14. E-Jets Deployment helping airlines to be more efficient World 14 Right-sizing New Markets Replacement of Natural old Jets Growth Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 15. Embraer Market Forecast (2012-2031) • 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 445 155 America America 1,460 580 7% 6% 22% Projected Deliveries- Jets 2,195 840 China China 2012 – 2019 32% Market Segment 2010 2031 Middle 1,005 340 (Seats) Deliveries Africa East 15% 13% 30-60 405 60 210 80 305 105 61-90 2,625 1,015 Asia Latin Latin 3% 4% 91-120 3,765 1,550 Pacific America America 30-120 6,795 2,625 210 505 315 670 7% 8% 10% 12% 15 Around 6,795 jet deliveries (30-120 seats) in the next 20 years (US$ 315 bi) Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 16. Competitive Landscape 120 CS100 110 110 Seats E195 Capacity 32'' pitch CRJ 1000 100 Seats 100 E190 SSJ100/95 90 70-90 Seats ARJ21 MRJ90 CRJ900 E175 80 CRJ700 E170 70 MRJ70 60 1600 1800 2000 2200 2400 2600 2800 3000 16 Range Nominal Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 17. Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 18. Embraer Executive Jets Embraer Executive Jet Delivered in Brazil 18 MORE THAN 550 AIRCRAFT DELIVERED IN OVER 40 COUNTRIES Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 19. Product Portfolio Aircraft Model Seats / Range Competitors Entry up to 8 occupants/ • Cessna - Mustang CJ1+/M2 Phenom 100 1,178 nm Certified: 2008 • HondaJet • Cessna - CJ2+/CJ3/CJ4 Phenom 300 up to 11 occupants/ • Hawker - PremierIA/400XP Light 1,971 nm • Bombardier - Learjet 40XR Certified: 2009 • SyberJet - SJ30 Under development • Bombardier - Learjet 45XR Mid-light Legacy 450 7 to 9 passengers/ • Cessna - XLS+/Latitude 2,300 nm • Hawker 750 • Bombardier - Learjet 60XR/85 • Cessna - Sovereign Mid-size 8 to 12 passengers/ • Hawker - H900XP Legacy 500 3,000 nm • Gulfstream – G150 • Bombardier - CL300/CL850 • Cessna - X/Ten Super Mid-Size Legacy 600 13 to 14 passengers/ • Dassault - Falcon 2000S 3,400 nm Certified: 2001 • Gulfstream - G200/G280 • Hawker - H4000 Large • Bombardier - CL605/GL5000 Legacy 650 13 to 14 passengers/ • Dassault - Falcon 2000/900LX 3,900 nm Certified: 2010 • Gulfstream - G350/G450 • Bombardier - GL XRS Ultra-Long Range • Gulfstream – G500/G550/G650 • Dassault – Falcon 7X • Airbus - ACJ 318/319/320 19 Lineage 1000 13 to 19 passengers/ Ultra-large • Boeing – BBJ/BBJ2/BBJ3 4,500 nm Certified: 2008 • SSJ VIP/ ARJ21B / An-148VIP Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 20. Market Share Revenues share (US$ - based on B&CA list prices) Deliveries share (units) $16.6Bi $19.3Bi $22.2Bi $17.2Bi $18.2Bi $18.1Bi 885 1,040 1,154 870 763 703 8% 6% 5% 6% 10% 7% 3% 2% 1% 2% 3% 2% % OEM Share – Total Revenues US$ 8% 8% 8% 4% 10% 7% 9% 6% 6% 16% 16% 14% 11% 4% 5% 4% 6% 7% 3% 14% % OEM Share – Total units 3% 3% 14% 19% 23% 24% 27% 13% 13% 14% 23% 21% 21% 15% 6% 11% 13% 7% 7% 9% 9% 11% 12% 12% 18% 12% 15% 22% 16% 18% 35% 37% 40% 17% 12% 9% 33% 26% 7% 23% 29% 28% 29% 28% 27% 33% 26% 24% 22% 21% 20% 20% 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Market Revenues 2011: US$18.1 billion Market Deliveries 2011: 703 units Embraer Revenues: US$1.0 billion Embraer Deliveries: 99 units 20 Bombardier Dassault Hawker-Beech Embraer Gulfstream Cessna Others Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 21. 2013-22 Market Forecast - World Deliveries 21 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 22. 2013-22 Market Forecast 22 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 23. Business Jets Used Market Inventory 23 Improvement halted Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 24. 24 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 25. Embraer Defense and Security 25 OVER 50 ARMED FORCES IN 48 COUNTRIES Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 26. Embraer Defense and Security Embraer Defense and Security, partners and affiliated companies 26 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 27. Embraer Defense and Security Results Revenues Evolution (US$ Million) Revenue Participation (%) GAGR 33% 15% 13% 8% 9% 6% 7% 852 670 505 499 346 227 2006 2007 2008 2009 2010 2011 EBIT Evolution (%) Backlog Evolution (US$ Billion) 13.4% 3.2 3.3 3.3 12.4% 12.2% 12.0% 9.6% 6.3% 1.5 1.1 1.0 27 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Não contabiliza as receitas provenientes da OGMA nos anos de 2006 a 2010. Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 28. Super Tucano Firm orders: 190 aircraft Addressable Market Forecast 2020 (US$ million) Brazil: 99 Colombia: 25 Long-term 700 Dominican Republic: 8 Medium-term 2,000 Short-term Chile: 12 800 Ecuador: 18 Indonesia: 16 Greystone (TACAir): 1 Total Market Forecast: Undisclosed: 11 300 aircraft / US$ 3.5 billion Deliveries: 168 aircraft 28 Partnership with Boeing to provide weapons integration, increasing capabilities of the aircraft. Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 29. EMBRAER KC-390 Brazil Colombia Argentina Chile Portugal Czech Rep. Total Market Forecast 2025: (28) (12) (6) (6) (6) (2) 700 aircraft / US$ 50+ bi • A new tactical military transport and tanker aircraft • First flight in 2014 • Six countries • Letters of intent totalizing 60 aircraft • Agreement with Boeing to share technical knowledge and evaluate markets for joint sales efforts. 29 • The Brazilian Air Force (FAB) and Embraer concluded the Preliminary Design Review. Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 30. Modernization Programs F-5M A1-M A-4 Addressable Market Forecast 2025 (US$ million) Brazilian Navy A-4 Long-term 12 aircraft 567 2 prototypes at GPX-CS Medium-term 505 Short-term Brazilian Air Force A-1M 527 43 aircraft 14 received by Embraer for the modernization Total Market Forecast*: Brazilian Air Force F-5M 46 a/c + 11 a/c (2nd batch) 30 234 aircraft / US$ 1.6 billion 45 already delivered * Considering the market for F-5 and Tucano modernization Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 31. New Portfolio Command and Control Systems Onboard Systems Simulation Systems Electronic Warfare Systems Intelligence Systems Air Traffic Management and Control Systems JV with Elbit/AEL Sistemas where Embraer Defense and Security of Critical HARPIA Security has a major participation Infrastructure UAS, simulators and modernization of avionics systems Public Security (sporting events, cities, states) Airport Management Air, ground and sea surveillance radars Systems Remote sensing SISFRON SisGAAZ Engine and Component Maintenance Overhaul and Modernization Aerostructure Manufacturing and Assembling VISIONA Satellite 31 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 32. Brazilian Army Priorities SISFRON Integrated Borders Monitoring System First phase: US$ 400 Million Total estimate: US$ 4 Billion Comprising radars, communication networks, C4I, unmanned air vehicles (UAV) and armored vehicles Comm 9% UAV 12% Sensors 59% Satellite Estimate: US$ 400 Million SW 20% Participation in the first Brazilian Geostationary Satellite 32 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 33. Revenues Breakdown Evolution 2020 Services 11% Transport 4% Sisfron, Satellite 10% KC-390 34% 2011 KC-390 New Business Services 19% 14% 10% Light Attack and ISR Radar, C4I, UAV, Combat 10% MRO 9% Modernization 18% 25% Light Attack 9% New Business • Airport Management Systems • SisGAAz (“Blue Amazon” Integrated Management System) Radar, C4I, UAV, • Security of Critical Infrastructure MRO 27% 33 • Public Security (sporting events, cities, states) Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 34. 2012 Outlook 34 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 35. 2012 Outlook Commercial aviation Executive aviation Net Revenues US$ 5.8 – 6.2 billion Defense and security Others Outlook in 1Q12 Current Outlook (Revised in 2Q12) EBIT US$ 460 – 530 Million US$ 520 – 590 Million EBIT margin 8.0% – 8.5% 9.0% – 9.5% EBITDA US$ 670 – 780 Million US$ 720 – 840 Million 35 EBITDA margin 11.5% – 12.5% 12.5% – 13.5% Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 36. 2012 Outlook Research US$ 100 million TOTAL Development US$ 350 million US$ 650 CAPEX US$ 200 million million US$ Million CAPEX R&D Investment/Revenue 36 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 37.
  • 38. Net Revenues / SG&A Expenses Net Revenues - US$ Million SG&A Expenses - US$ Million 25.3% 194 186 180 23.2% 23.6% 172 170 22.5% 21.2% 72 75 69 71 59 2,025 1,717 1,364 1,405 114 109 119 111 1,156 103 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 US$ Net Revenues Gross Margin US$ G&A Expenses Selling Expenses 2010 5,364 19.1% 2010 198 374 2011 5,803 22.5% 2011 262 420 38 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 39. Income from Operations / EBITDA Income from Operations - US$ Million EBITDA - US$ Million 13.8% 14.9% 10.2% 15.4% 11.5% 12.8% 9.1% 11.8% 7.4% 7.2% 42 42 265 -0.3% 197 2.9% 188 124 148 166 86 101 59 (6) 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 US$ EBIT EBIT Margin US$ EBITDA EBITDA Margin 2010 392 7.3% 2010 611 11.4% 2011 318 5.5% 2011 557 9.6% 39 Without Chautauqua non-recurring event Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 40. Net Income / Free Cash Flow Net Income - US$ Million Free Cash Flow - US$ Million 9.1% 4.6% 277 3.2% 105 414 0.1% 55 65 155 2 20 25 (73) (30) -4.5% (77) (70) (76) (50) (60) (60) (40) (55) (58) (65) -92 (112) (138) (174) 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 * 2Q12* 3Q12 Free cash flow Net cash generated (used) by operating activities* Additions to PP&E Additions to Intangible US$ Net Income Net Margin US$ 2010 330 6.2% 2010 287 2011 112 1.9% 2011 1 40 * Reflects re-calculation of Company’s income tax base * Net of Financial assets adjustment Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 41. Indebtedness Profile / Net Cash Indebtedness Maturity Net Cash - US$ Million 15% 17% 26% 26% 22% 6.1 6.0 4.8 4.5 4.2 446 85% 83% 74% 74% 78% 302 290 193 123 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Long-term Short-term Loans Average Maturity (Years) Total Debt 3Q12 US$ 2.08 Billion Total Cash 3Q12 US$ 2.21 Billion 41 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 42. Investments US$ Million 350 200 176 132 100 52 RESEARCH DEVELOPMENT CAPEX 42 YTD 2012 2012 Outlook Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 43. Investors’ Return EPADS and Pay Out Dividend Yield (%) 115% 68% 53% 52% 34% 35% 26% 4.34 2.64 2.57 3.28 2.11 2.14 1.68 2.91 1.83 2.23 2.13 2.01 0.62 2006 2007 2008 2009* 2010* 2011* 2006 2007 2008 2009 2010 2011 EPADS Pay Out 43 2006-2008: US GAAP * 2009-2011: IFRS Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 44. Ownership Structure 724,040,044 Voting Shares 44 June, 2012 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 45. 45 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 46. Sustainability Initiatives ISO 14001 and OHSAS 18001 Certifications Brazilian Alliance for Bio-fuel 1st ethanol powered aircraft in the World Social Activities Reforestation Projects Ipanema Recycling 46 Corporate Values Greener Technology Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 47. Lean Results E-Jets Final Assembly Line Transformation “Dock” layout - 2008 Assembly Line – 2009 Assembly Line – 2011 Performance indicators May/2008 July/2009 Sep/2009 June/2010 Mar/11 Out/11 (15ac/month) (10ac/month) (10ac/month) (8ac/month) (10ac/month) (12ac/month) Number of positions 12 6 5 4 4 4 Cycle time (days) 18 12 10 8 8 7 Work in process (US$mi) 212 106 95 89 68 68 Number of non-conformity per a/c 32 7 1,7 0 0 0 Over time (% of work 47 hours) 10 1,5 1,5 0,2 0 0 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 48. P3E Results Kaizen - E-Jets Cycle Reduction Cost of Non Quality Reduction Lead Time (E-Jets) Cost of Non Quality 40% 44% 2005 2006 2007 2008 2009 2010 2011 2008 2009 2010 40% reduction on the production cycle 44% reduction on CNQ 48 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 49. “Boa Idéia” Program Evolution 28,3 Cost: US$ 18.9 mi 22,7 24,0 22,7 Benefit: US$ 175.5 mi 14,5 12,7 10,7 10,6 9,1 8,4 7,2 3,5 3,1 1,6 2,5 2,2 2,5 0,9 1,2 1,6 1,3 0,4 0,5 0,8 49 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 50. 50 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.
  • 51. 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. 51 Investor Relations This information is property of Embraer and cannot be used or reproduced without written permission.