3. Highlights
Company established in 1969, with business in four segments.
Privatized in 1994 and listed in USA in 2000.
Strong Balance sheet with solid Net cash position.
Global footprint.
Broad customer base in commercial, executive and defense aviation segments.
Investment Grade rating by Moody’s and S&P.
Highly experienced management team.
3
4. Global Business
Operations in Brazil, USA, Europe and Asia One of Brazil’s largest exporters of manufactured goods
Dual listed in Brazil’s Bovespa (1989) and NYSE (2000) Diversified customer-base across five continents
France
Villepinte
Le Bourget
USA
Fort Lauderdale Portugal
Nashville Alverca
Mesa Évora*
China
Widson Locks
Louisville Beijing
Minneapolis Harbin
Melbourne*
Singapore
Singapore
Brazil
São José dos Campos
Gavião Peixoto
Botucatu
Taubaté
São Paulo
* Under construction Countries of Operation Factories Offices Service Centers Spare Parts Distribution Centers Contracted/ Planned Authorized Network
4
12. Worldwide Distribution
Commercial Jets Market Share Evolution Worldwide Diversified Customers Across 5 Continents
30-120 Seats Jets
North Asia Pacific /
America China
75%
15% 14%
Latin
60%
America Middle East /
Africa
17%
21%
45% 44%
43% Europe / CIS
33%
30%
Firm Orders
Asia Pacific / China
15%
4% 14%
3%
3%
2%
1% North Middle East /
0% 0% America Africa
1995 1998 2001 2004 2007 2010 44% 9%
Considering Accumulated Firm Orders:
Embraer Bombardier Comac Europe / CIS
Sukhoi Boeing Airbus 21%
Latin America
Antonov Mitsubishi
12%
12
13. E-Jets Deployment
6%
29%
21%
8% 32%
25% 5%
14%
8% 7%
6% 33%
5%
57% 5% 49%
40%
8% 62%
20% 12%
Europe 7%
11%
North C h in a
America 20%
33%
31% 39%
Middle East
8% 11%
49%
52% 50%
Latin Africa Asia P acific
America
World 50% 20% 9% 21%
Right-sizing New Markets Replacement Natural
of old Jets Growth
13
14. Embraer Market
Forecast (2010-2029)
Around 6,875 jet deliveries (30-120 seats) in the next 20 years (US$ 200 bi)
Russia /
CIS
Europe
North 405
155
America 1,510
580 6%
22%
2,400
840 China
35%
32%
Middle 340
950
Africa East
Projected Deliveries - Jets 14%
13%
Market Segment 2010 – 2019
2029
220
80 240
105
Latin Asia
3% 4%
(Seats) Deliveries Pacific
America
30-60 475
60 210
575
315
575 8%
61-90 2,515
1,015
12%
8%
91-120 3,885
1,550
30-120 6,875
2,625
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15. World Replacement
Opportunities
(Jets 61-120 seats)
350
B737-500
Number of Aircraft 300
250 B737-200
Bae 146
200
150 F100
DC-9
TU-134
100
B717-200 YAK-42
50
F70 F28
0
5 15 25 35
Average Age (years)
Nearly 1,000 aircraft with more than 15 years old
15
20. 2011-20 Market Forecast
World Deliveries
Industry Deliveries (units)
Industry Revenues
240
200
160
US$ 210 Bi
US$ 169.6 Bi (10,000 jets)
120
(9,029 jets)
80
40
0
2000-10 2011-20
Historic Forecast
More than 10,000 jets: US$ 210 billion over the next 10 years
21. Business Jets Traffic
US/FAA Bizjet Flight Activity
220,000
2005
2007
190,000 2008
2006
160,000
2010
2009
130,000
100,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
European Bizjet Flight Activity
60,000
50,000
40,000 2008
2007
2010
2006
30,000 2009
2005
20,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
21
22. Pre Owned Market
Fleet for Sale
2008: Net increase of 1,100 a/c
Business Jets For Sale 2009: Net increase of 33 a/c
2010TD: Net decrease of 157 a/c
% for sale (per total fleet in operation) fleet from 6 to 10 yrs
3500 28%
up to 10 yrs % for sale fleet up to 5 yrs and positions 26%
% for sale (per total fleet
3000 in operation) to 5 yrs
fleet up fleet older than 10 yrs 24%
22%
positions 15.0% / 10.5%
2500 20%
% of active fleet
2647 jets / 896 jets
18%
2000 16%
Units
14%
1500 12%
10%
1000 8%
6%
500 4%
2%
0 0%
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q 1Q2Q3Q4Q 1
Q2Q3Q4Q 1
Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q 1Q2Q3Q4Q 1Q2Q3Q4Q 1
Q2Q3Q4Q 1
Q2Q3Q4
99 00 01 02 03 04 05 06 07 08 09 10
Source: Embraer analysis – October 2010
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24. Defense Products
and Services
ISR (Intelligence, Surveillance Advanced Training and
Transport of Authorities Military Tactical Transport
and Reconnaissance) Light Attack
Modernization Programs Services Command and Control
Systems
24
25. Super Tucano
• Firm orders: 172 aircraft
• Brazil: 99 • Training and COIN aircraft Market
• Colombia: 25 Forecast 2020
• Dominican Republic: 8 • 700 aircraft / US$ 8 bi
• Chile: 12
• Prospects:
• Ecuador: 18
• Undisclosed: 10
• South East Asia
• Africa
Deliveries: 146 aircraft Ref.: September 2010
• Americas
• To be delivered: 26 aircraft
26. EMBRAER KC-390
Length: 33.81 m (110.9 ft)
Wingspan: 35.06 m (115.0 ft)
Height: 10.26 m (33.7 ft)
• New tactical military transport aircraft • Currently in the “Initial Definition Phase”
• Payload: 23 ton / Range: 1400 nm • Market Forecast 2025: 700 aircraft / US$ 50+ bi
• Contract signed with Brazilian Air Force in April 2009
26
28. Business Highlights
Sale of 37 E-Jets at Farnbourogh.
Sale of 10 + 5 EMBRAER 190 jets to Air Lease Corp.
Argentina’s Austral received its first EMBRAER 190.
Embraer expands its Customer Support in China.
NetJets buys 50 Phenom 300, plus 75 options at NBAA.
Legacy 650 certified by ANAC and EASA. Deliveries in 4Q10.
Brazil, Chile, Colombia, Portugal, Czech Republic and Argentina signed LOI
for up to 60 KC-390 aircraft.
28
28
29. Financial Highlights
Firm order backlog remained stable at US$ 15.3 billion.
Net revenues of US$ 1.04 billion and gross margin of 22.1%.
EBIT of US$ 63 million and EBIT margin of 6.0%. YTD EBIT margin of 7.3%.
Net income totaled US$ 98.5 million. Earnings per ADS of US$ 0.5443.
Stable net cash position of US$ 623.8 million.
29
29
39. 2010 Guidance and
Outlook
Current Guidance - 2Q10 New Guidance
Net Revenues US$ 5.25 billion
EBIT US$ 340 million US$ 380 million
~12%
EBIT margin 6.50% 7.25%
Current Outlook New Outlook
EBITDA US$ 420 million US$ 460 million
~10%
EBITDA margin 8.0% 8.75%
R&D US$ 160 million
PP&E US$ 140 million ~30% US$ 100 million
39
41. 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.
41