2. Company 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 and executive aviation, defense and
security segments.
Investment Grade rating by Moody’s and S&P.
Highly experienced management team.
2
3. 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
Windsor 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
3
4. Aircraft Deliveries
2010 deliveries estimates
• 90 commercial jets
• 17 executive large jets* ed
ass
• 120 executive light jets** S urp
165
133 125 126
103 98 101
27 36 37
2 21 19
2006 2007 2008 2009 2010
Commercial Jets Executive Large Jets* Executive Light Jets**
* Legacy e Lineage
** Phenom 4
5. Net Revenue
US$ Million Gu
i
Ac danc
hie e
ve d
6,335
5,245 5,498 5,364
3,760
2006 2007 2008 2009 * 2010 *
Guidance 2010: Net Revenue - US$ 5.25 billion
2006-2008: US GAAP
* 2009-2010: IFRS
5
7. Revenue Breakdown
Revenue by Segment Revenue by Region
Net Revenue
US$ Billion*
6.33 5.49 5.36 6.33 5.49 5.36
2% 2% 2%
9% 11% 11% 7% 6% 4%
8% 9% 13% 18% 21% 22%
14%
16% 4%
21% 10% 11% 13%
7%
18% 15%
67% 33%
62%
53% 33%
43%
22%
13%
2008 2009 2010 2008 2009 2010
Commercial aviation Defense and security North America Europe Latin America
Executive aviation Aviation services Brazil Asia Pacific Others
Others
2008: US GAAP
* 2009-2010: IFRS
7
8.
9. 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)
9
10. Commercial Aviation Performance
E-Jets Around the World
Commercial Aviation - Order Book 4Q10
Firm Firm
Options Total Deliveries Backlog
Orders
ERJ 145 Family 890 - 890 888 2
EMBRAER 170 191 40 231 181 10
EMBRAER 175 173 276 449 133 40
EMBRAER 190 478 353 831 321 157
EMBRAER 195 105 51 156 64 41
TOTAL E-JETS
E- 947 720 1.667 699 248
TOTAL 1.837 720 2.557 1.587 250
10
11. Worldwide Distribution
Commercial Jets Market Share Evolution Worldwide Diversified Customers Across 5 Continents
60-120 Seats Jets
North Asia Pacific /
America China
16% 12%
60%
Latin
America Middle East /
Africa
18%
43% 22%
40%
Europe / CIS
31%
32%
20% Firm Orders
7%
6%
6% Asia Pacific / China
3%
3% 14%
0% 1%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
North Middle East /
America Africa
44% 9%
Considering Accumulated Net Orders
Europe / CIS
21%
Latin America
12%
11
12. E-Jets Market Acceptance
E-Jets efficiency in all business models
(% of E-Jets Fleet+Backlog)
Low Cost Carriers Network Airlines
• New markets • Right-sizing
• Right-sizing • New markets
Regional Airlines
• Natural Growth
• Right-sizing
E-Jets supported by leasing companies
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
16. Air Transport Demand - IATA
World – International RPK Growth Rate (% yoy)
12
10
Economic Recession
8
6
4
2
0
-2
-4
-6 Lehman Iceland
Brothers Volcano
-8
Bankrupcy
-10
-12
7.4% 1.6 % -3.5% 8.2% 8%
-14
May-07
May-08
May-09
May-10
Jan-07
Mar-07
Jul-07
Jan-08
Mar-08
Jul-08
Jan-09
Mar-09
Jul-09
Jan-10
Mar-10
Jul-10
Jan-11
Sep-07
Nov-07
Sep-08
Nov-08
Sep-09
Nov-09
Sep-10
Nov-10
Air travel rebounded after being depressed by severe
winter weather conditions in Europe and North America
16
17. Airline Financial Results - World
20 Net Profit Net Loss Net Margin 8
Net Profit/Loss (US$ billion)
15 6
Region 2009 2010E 2011F
Net Profit/Loss (US$ Billion)
10 4
Africa - 0.1 0.1 0.0
Net Margin (%)
5 2
Asia Pacific - 2.7 7.6 3.7
0 0
Europe - 4.3 1.4 0.5
-5 -2 Latin America 0.5 1.0 0.3
-10 -4 Middle East - 0.6 1.1 0.7
-15 -6 North America - 2.7 4.7 3.2
-20 -8 World - 9.9 16.0 8.6
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2011F
2010E
High fuel prices squeeze airline profits despite better economic outlook
2011F net profit of US$8.6bi, down from US$9.1bi in last December forecast
17
18. Embraer Market Forecast (2010-2029)
• Scope Clauses relaxation allowing 80-seater aircraft as a natural growth of RJ50s in the US
• Right-sizing of narrow-body operations
• Regional aviation development in Emerging Markets
• Acceleration of replacement of old & inefficient jets
Russia /
CIS
Europe
North
North 405
155
America
America 1,510
580 6%
22%
2,400
840 China
Projected Deliveries- Jets 35%
32%
Market Segment 2010 – 2019
2029 Middle 340
950
Africa East
(Seats) Deliveries 14%
13%
30-60 475
60 220
80 240
105
Latin Asia
61-90 2,515
1,015 Latin 3% 4% Pacific
America
America
91-120 3,885
1,550
210
575
30-120 6,875
2,625 315
575 8%
12%
8%
Around 6,875 jet deliveries (30-120 seats) in the next 20 years (US$ 200 bi)
18
20. Pre-Owned ERJ Transactions
Republic - USA Passaredo - Brazil
BMI – United Kingdom
FinnComm - Finland Dniproavia - Ukraine Aeromexico Connect - Mexico
Satena - Colombia City Airline - Sweden Diexim Expresso - Angola
Air Namibia - Namibia Air26 - Angola South African Airlink - USA
More than 200 ERJ transactions since 2000
20
21.
22. Product Portfolio
Aircraft Model Seats / Range Competitors
Entry • Cessna - Mustang
Phenom 100 4 / 1,160 nm
CJ1+
Certified: 2008
Phenom 300 • Cessna - CJ3
Light 6 / 1,800 nm
• Hawker - H400XP
Certified: 2009
4 to 8 / 2,200 • Bombardier -
Mid-light Legacy 450 Lear 60XR
to 2,300 nm
Expected Certification: 2013 • Cessna - XLS+
Mid-size Legacy 500 4 to 8 / 2,800 • Cessna - Sovereign
to 3,200 nm • Hawker - H900XP
Expected Certification: 2012
Super Mid-Size Legacy 600 10 to 14 / 3,250 nm
• Bombardier -
Certified: 2001
Challenger 300/605
• Dassault – Falcon
Large Legacy 650 10 to 14 / 3,900 nm 2000EX/LX
Certified: 2010
• Bombardier –
Ultra-Long Range Global XRS
• Gulfstream – G550
Lineage 1000 13 to 19 / 4,400
Ultra-large • Airbus - A318 Elite
to 4,500 nm
Certified: 2008
22
25. 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
25
26. U.S. Corporate Profits
1.600
1.400
+10% Current
1.200
billions of dollars
1.000 Financial 2007 avg
800
600
Nonfinancial +100%
400
Low
200
0
I II III I I II III I I II III I I II III I I II III I I II III I I II III
2004 2005 2006 2007 2008 2009 2010
28. Business Jets Traffic
230
US/FAA Bizjet Flight Activity
220
210
200
190 2006
2004
180 2007
2005
170
2011 2010
160
150 2009
140 2008
130
ov
g
r
p
ec
l
n
ar
ct
b
n
ay
Ju
Ap
Au
Se
Ja
Fe
Ju
O
M
N
D
M
60 European Bizjet Flight Activity
55
50
45
40 2007
2011 2010
2006
35 2009
2008
30 2005
2004
25
ov
g
r
p
ec
l
ct
n
b
ar
n
ay
Ju
Ap
Au
Se
Ja
Fe
Ju
28
O
M
N
D
M
29. Pre-owned Inventory: Recovering
Business Jets For Sale 2008: Net increase of 1100 a/c
2009: Net increase of 33 a/c
2010: Net decrease of 155 a/c
3500 2011: Net decrease of 94 a/c 28%
Fleet up to 5 yrs and positions Positions
26%
Fleet up to 5 yrs Fleet from 6 to 10 yrs
3000 24%
Fleet older than 10 yrs % for sale (per total active fleet) 22%
14.2% 9.3%
2500 up to 10 yrs % for sale 2555 jets 761 jets 20%
18%
% of active fleet
2000 16%
Units
14%
1500 12%
10%
1000 8%
6%
500 4%
2%
0 0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
99 00 01 02 03 04 05 06 07 08 09 10 11
29
30.
31. Defense and Security Portfolio
ISR (Intelligence, Surveillance Advanced Training and
Transport of Authorities Military Tactical Transport
and Reconnaissance) Light Attack
Modernization Programs Services Command and Control
Systems
31
32. Worldwide Presence
Canada
Sweden
Germany
United States United Kingdom¹
Italy
Luxembourg
Belgium Greece
Kuwait¹
Switzerland
France Pakistan
Spain
Portugal Tunisia Thailand
Dominican Rep. Libya
Honduras
Mauritania Egypt
Panama
Indonesia
Mexico Niger Kenya¹
Venezuela Chad
Colombia Togo
Nigeria India
Equatorial Guinea
Ecuador
Gabon
Peru
Brazil
Argentina
Paraguay Angola
Chile Uruguay
Embraer Defense and Security is present in more than 40 countries.
32
33. Super Tucano
• Prospects:
• Firm orders: 180 aircraft
• Latin America
• Brazil: 99
• South East Asia
• Colombia: 25
• USA
• Dominican Republic: 8
• Africa
• Chile: 12
• Ecuador: 18
• Indonesia: 8
• XE Aviation: 1
• Undisclosed: 9
• Deliveries: 152 aircraft
• To be delivered: 28 aircraft •Ref.: March, 2011
33
34. 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 • Towards the end of the “Initial Definition Phase”
• Payload: 23 ton / Range: 1400 nm • Market Forecast 2025: 700 aircraft / US$ 50+ bi
• Brazil, Chile, Colombia, Portugal, Czech Republic
and Argentina signed LOI for up to 60 KC-390 aircraft.
34
35. KC-390 Master Schedule
2009 2010 2011 2012 2013 2014 2015 2016
Preliminary Design Initial Definition Joint Definition Detailed Design and Certification Phase
Phase - PD Phase - IDP Phase - JDP DDP
Wind Tunnel PDR CDR
Testing
Loads Calculation
Loads Calculation
Structures Calc
Structures Calc
Drawings
Drawings
Partnership and Supplier
Procurement
Tooling
Tooling
1 2
Prototypes
IOC
IOC
FOC
FOC
Structural Testing
Structural Testing
Program running on schedule, in final phase of main partners selection
and geared-up for full-scale development.
35
42. 2011 Outlook
2010 Results 2011 Outlook
Net Revenues US$ 5.36 billion ~5% US$ 5.60 billion
US$ Billion
1.2 0.6
20%
11% 0.05 0.15
0.7 0.10
14% 0.40
3.1
55%
Commercial aviation Defense and security
Executive aviation Aviation services and others
42
43. 2011 Outlook
2010 Results 2011 Outlook
EBIT US$ 392 million ~7% US$ 420 million
EBIT Margin 7.3% ~3% 7.5%
EBITDA US$ 611 million US$ 610 million
EBITDA Margin 11% 11%
43
44. 2011 Outlook
2010 Results 2011 Outlook
Research US$ 72 million US$ 90 million
Development * US$ 79 million US$ 210 million
CAPEX US$ 74 million US$ 200 million
9%
Corporate Information
US$ Million 9%
7%
5%
5%
4% 200
209
235 CAPEX
104 R&D
74
91 300
260 Investment / Revenue
197
113 144 151
2006 2007 2008 2009 2010** 2011E**
* Product development costs are differed and amortized upon aircraft delivery.
** 2010 result and 2011 estimate in IFRS.
44
46. 2010 Accomplishments
10th anniversaries: NYSE Euronext listing.
Presence in China, Singapore and GPX.
Embraer elected for the 2nd consecutive year, one
of the best companies to work for in Brazil.
Embraer selected as Gold Class on
the DJSI and also on the ISE.
46
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$mi) 212 106 95 89 68 68
Number of non-conformity
per a/c
32 7 1,7 0 0 0
Over time (% of work
hours)
10 1,5 1,5 0,2 0 0
47
50. Looking to the Future - Lean Design
Process and product development
RWK
Lean Design Lean Manufacturing
Optimize product value, prevent waste in the production process Transport, storage,
Minimum number of parts, low complexity of parts, Potentiates motion, waiting,
product maturity, appropriate accuracy, less variability in the overproduction,
project, etc.. defects waste
elimination
50
51. Sustainability Initiatives
Social, Environmental and Economic Dimensions
ISO 14001 and OHSAS
18001 Certifications
Brazilian Alliance for Bio-fuel
1st ethanol powered
aircraft in the World
Social Activities
Reforestation Projects
Recycling Ipanema
Corporate Values
Greener Technology
51
52. People Development
Graduate
31% High
School
62% Identify and Nurturing of newly graduated talents
14 Classes concluded (1031 attendees)
Postgrad
5% Ph.D.
2%
• 109.835 Attendances • Total investment:
• 727.430 hours R$ 5.465.878,00
Trainings / Professional Category
Category Trained Employees Hours Per capital hours
Leadership 759 32768 43
Engineering 3102 240439 78
Technician 1908 134498 70
Operational 7279 197324 27
Professional 1530 86229 56
Administrative 606 27622 46
Pilots 83 1055 13
Intern 225 7425 33
Total 15492 727430 47
52
58. 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.
58
