2. 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.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
3. Highlights 3Q06
• The Commercial Aviation Segment totaled 137 new firm orders, including 50
ERJ145 and 50 EMBRAER 190 jets to HNA Group from China, 30 EMBRAER
175 jets to Republic Airways, six EMBRAER 170 to Egypt Air and one
EMBRAER 170 to an undisclosed costumer.
• The Executive Aviation segment reported more than 300 firm orders for the
Phenom 100 and the Phenom 300 jets.
• Embraer’s Board of Directors appointed Frederico Fleury Curado to succeed
Maurício Botelho as President and CEO of the Company, to be elected in April
2007.
• The European Aviation Safety Agency (EASA) issued the type certificate for the
EMBRAER 190 and the EMBRAER 195 jets during this quarter.
• Mandarin Airlines chose the EMBRAER 190 and the EMBRAER 195 jets as the
core aircraft for their future fleet. These orders will come from the existing
GECAS backlog.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
4. Highlights 3Q06
• Embraer and BNP Paribas concluded in August a US$500 million syndicated
standby facility, comprised of a US$250 million Trade Finance Credit Facility,
and a US$250 million Revolving Credit Facility available for multiple draw-downs.
• The U.S. Federal Aviation Administration (FAA) issued type certificate for the
EMBRAER 175, paving the way for deliveries to begin in the United States.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
5. Results &
Performance
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
6. Jet Deliveries
41 40
36
30
27
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
7. Net Revenues and Gross Margin
US$ Million
28.1% 28.7% 28.2% 28.3%
28.2%
1,190
1,064 1,021
808 894
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
8. Net Revenue by Segment
9M06 9M05
Revenues: US$ 2,723 million Revenues:US$ 2,640 million
Customer
Customer
Services and Services and
Others 15% ExecutiveOthers 10%
Commercial Aviation 6%
Executive Aviation 67% Defense and
Aviation 13% Government
12%
Defense and
Government
6% Commercial
Aviation 72%
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
9. Income from Operations
US$ Million
15.7%
13.2%
9.6%
167
135 5.2%
114 4.5%
37 46
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
10. Net Income
US$ Million
13.6%
13.1%
10.4%
156
8.1% 139
6.9%
110
65 61
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
11. Accounts Receivable Breakdown
Aircraft Sales Financing Support
US$ Million
32 US$MM
164
US$MM
488
Accounts Receivables Costumer Commercial Finance
100 136 140 32
302 351 346 332 366
3Q05 4Q05 1Q06 2Q06 3Q06
Others Commercial Aviation
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
12. Inventories
US$ Million
1,882
1,601 1,648 1,639
1,478
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
13. Net Cash (Debt) Position
US$ Million
527 507
360
302
97
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
14. Loans
Total Debt of US$ 1,599.8 Million
Brazilian
Currency
25%
Short Term
Long Term
48%
52% Foreign
Currency
75%
• Average cost in R$ =9.2 % p/a Loans Average Maturity: 1 year and
• Average cost in US$ =7.4 % p/a 11 months
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
15. Loans Maturity
US$ million
76 0
1,6 0 0 13 1
2 76
18 8
201
44
Total Short- 2007 2008 2009 2010 2011
term
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
16. Backlog and
Delivery Forecast
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
17. ERJ 145 Family Order Book
Firm
Firm Orders Options Total Deliveries Backlog
ERJ 135 108 1 109 108 -
ERJ 140 74 - 74 74 -
ERJ 145 732 132 864 677 55
Total 914 133 1,047 859 55
(3rd Quarter 2006)
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
18. EMBRAER 170/190 Family Order Book
Firm
Firm Orders Options Total Deliveries
Backlog
EMBRAER 170 152 133 285 120 32
EMBRAER 175 52 - 52 22 30
EMBRAER 190 298 248 546 41 257
EMBRAER 195 41 40 81 1 40
Total 543 421 964 184 359
(3rd Quarter 2006)
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
19. Backlog
US$ Billion
14.9
15.0 13.6 15.3 15.9
13.3
10.4 10.4 10.4 10.2
3Q05 4Q05 1Q06 2Q06 3Q06
Firm Options
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
20. Jet Deliveries Forecast
160 161 160
148 141
131 135
96 101
59
1998 1999 2000 2001 2002 2003 2004 2005 2006E 2007E
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
