The document discusses Embraer's second annual investors and analyst meeting. It includes forward-looking statements about future events and financial trends that are subject to risks and uncertainties. The capital structure shows Embraer's voting shares are held by European and Brazilian entities, and preferred shares are listed on the NYSE and Bovespa. The presentation reviews Embraer's jet deliveries, revenues, profits, balance sheet, and performance indicators from 2000 to the third quarter of 2001. It also discusses investments, employment levels, production cycle times, and accounting differences between Brazilian GAAP and US GAAP.

1. Second Annual
Investors & Analyst
Meeting
Antonio Luiz P. Manso
Executive Vice President & CFO

2. Foward Looking Statements
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 markets; management’s expectations and estimates
concerning our future financial performance, financing plans and programs, and the effects of
competition; successful development and marketing of the ERJ 170/190 regional jet family; our
level of debt; anticipated trends in our industry; our expenditure plans; inflation and devaluation; our
ability to develop and deliver our products on a timely basis; and existing and future governmental
regulation.
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.

3. Capital Structure

4. Capital Structure – Voting Shares
20% European Group 60 % Controlling Shareholders
Dassault Aviation 5,67% Bozano,Simonsen Group 20 %
Thomson CSF 5,67% SISTEL (Pension Fund) 20 %
EADS 5,67%
PREVI (Pension Fund) 20 %
Snecma 3,00%
1.45 %
Brazilian Govt.
18.55 % 242,544,448 Common Shares
Others 38.98%

5. Capital Structure – Preferred Shares
Cia. Bozano
10% Previ
NYSE 12%
44% Sistel
3%
BNDESPar
Bovespa
14%
17%
379,738,426 Preferred Shares
61.02%

6. Capital Structure – Evolution
Brazilian
YE00 1Q01 2Q01 3Q01 4Q01
Shares
Common 242,544,448 242,544,448 242,544,448 242,544,448 242,544,448
Preferred 300,865,426 300,865,426 378,768,426 378,768,426 379,738,426
TOTAL 543,409,874 543,409,874 621,312,874 621,312,874 622,282,874
ADS
Equivalent 135,852,469 135,852,469 155,328,219 155,328,219 155,570,719
Conversion Rights:
Stock Option: 14.8 million of options equivalent to 3.7 million of ADSs
were granted and not exercised.

7. Capital Structure – Stock Dividends
Stock Dividend Announcement:
As earnings reserve cannot exceed existing paid in capital.
Incorporation of R$ 342 MM earnings reserve to the paid in Capital with
the issuance of 88.4 million of preferred shares (equivalent to 22,1
ADSs) to all shareholders.
Obejective to increase liquidity of Preferred Shares
Share As of % As of %
Class Today Total capital Stock Dividend Mrach 02 Total capital
Common 242.544.448,00 39% 242.544.448,00 34%
Preferred 379.738.426,00 61% 88.430.168,00 468.168.594,00 66%
Total Shares Outstanding 622.282.874,00 100% 710.713.042,00 100%
ADS Equivalent 155.570.718,50 22.107.542,00 177.678.260,50

8. 3rd Quarter Results
Income Statement
Corporate Law

9. Jet Deliveries
140
127
120 116
100
80
60
43 44 42 44 41
39
40 34
20
0
1Q00 2Q00 3Q00 9M00 4Q00 1Q01 2Q01 3Q01 9M01

10. Net Revenue
US$ Million – Corporate Law
3.000
2,369
2,009
2.000
US$ MM
1.000 766 772 756 838 775
583 651
0
1Q00 2Q00 3Q00 9M00 4Q00 1Q01 2Q01 3Q01 9M01

11. Revenue Breakdown – Sep. 2001
Revenue by Market
Brazil
3%
Revenue by Segment
International
97% Corporate Spare Parts &
2% Services
6%
Defense
5%
Commercial
87%

12. Revenue by Segment - Forecast
2002
Parts &
Services /
Others Commercial
7% 71%
Defense
12%
Corporate
10%
2003
Parts &
Services /
Commercial
Others
7% 69%
Defense
12%
Corporate
12%

13. Gross Profit
US$ Million – Corporate Law
1.500 50%
45.3%
43.3%
39.5%
44.3% 40%
33.9% 1.027
30.9% 31.8%
1.000 29.1% 28.9%
Margin %
30%
US$ MM
620
20%
500 380 344
260 299
246 10%
170 188
0 0%
1Q00 2Q00 3Q00 9M00 4Q00 1Q01 2Q01 3Q01 9M01

14. EBIT
US$ Million – Corporate Law
1.000
31.1%
30.1%
27.6% 30%
31.2%
800
715
23.0%
Margin %
600 18.9%
17.8%
US$ MM
17.0% 20%
15.6%
379
400
261 242 10%
209
177
200 137
99 102
0 0%
1Q00 2Q00 3Q00 9M00 4Q00 1Q01 2Q01 3Q01 9M01

15. EBITDA
US$ Million – Corporate Law
1.000 33.6% 35%
32.7%
30.5%
33.4%
30%
800 26.0% 774
21.9% 25%
20.4% 20.4%
Margin %
600 18.3%
US$ MM
20%
439
400 15%
282 259
231 10%
199
200 158
119 119 5%
0 0%
1Q00 2Q00 3Q00 9M00 4Q00 1Q01 2Q01 3Q01 9M01

16. Net Income
US$ Million – Corporate Law
600 20%
17.6%
16.6%
15.0%
13.5% 12.8% 15%
400 14.3% 354
Margin %
11.0%
US$ MM
9.4% 9.5%
10%
222
200 148
128 5%
104 108 99
55 62
0 0%
1Q00 2Q00 3Q00 9M00 4Q00 1Q01 2Q01 3Q01 9M01

17. 3rd Quarter Results
Balance Sheet
Corporate Law

18. Total Cash
US$ Milions
1.400
1.264
1.189 1.169
1.200
1.000 884
800
US$ MM
599
600 513
379
400
200
0
1T00 2T00 3T00 4T00 1T01 2T01 3T01

19. Total Debt
US$ Milions
1.000
800 755
586 567
600 549
491
457
US$ MM
420
400
200
0
1T00 2T00 3T00 4T00 1T01 2T01 3T01

20. Debt Breakdown
Total Debt US$ 754.9 Million
Local
Currency -
R$ - 5%
Long Term
18%
Foreign
Currency
95%
Short Term
82%

21. Net Cash (Debt)
US$ Million
$800 732 749
696
$600
$400
$200 129
108
$0
(37)
($200)
(208)
($400)
1T00 2T00 3T00 4T00 1T01 2T01 3T01

22. Inventories
US$ Millions
1.000
842
800 764
703
641 660
600 562 574
US$ MM
400
200
0
1T00 2T00 3T00 4T00 1T01 2T01 3T01

23. Accounts Receivables
US$ Millions
1.000
793
800 737
600 563
US$ MM
390 373
400
260
198
200
0
1T00 2T00 3T00 4T00 1T01 2T01 3T01

24. Customers Advances
US$ Millions
600
439 443
424
401
400 372 371 376
US$ MM
200
0
1T00 2T00 3T00 4T00 1T01 2T01 3T01

25. Performance Indicators
Corporate Law

26. Return on Asset - ROA
50%
40%
30%
19%
20% 15% 15%
8%
10%
0%
-10% -3%
-12%
-20%
-30% -25%
-40%
-50%
95 96 97 98 99 00 9M01

27. Return on Equity - ROE
150%
100% 75%
74%
58%
50% 35%
0%
-14%
-50%
-100%
-93%
-150%
-169%
-200%
95 96 97 98 99 00 9M01

28. Investments

29. Investments
(US$ Million)
300
250 213
200 147 162
150 122
98 104
81
100
50
0
95 96 97 98 99 00 9M01
40%
Product Productivity Efforts
Development 60%

30. Revenue per Employee
(US$ thousand)
350
307
300 269
242 247
250
200 172
150
101
100 75
40
50
0
94 95 96 97 98 99 00 9M01

31. Employees
15000
12,733
12000 10,334
8,302
9000 6,737
6,087
6000 4,319 4,494
3,849
3000
0
94 95 96 97 98 99 00 Set/01
Brazil: 12,213
USA: 267
Europe: 220
Australia: 9 April 97: 3,200
China: 15 (Minimum Level Reached)
Cingapure: 9
Total sept.: 12,733
Growth 2000/1999: 24.5%

32. Production Cycle (months)
20
14
15 12
10 8
6 6 5.5 4.9 4.4
5
0
94 95 96 97 98 99 00 Sep./01

33. Investments Forecast
(US$ Millions) 2002 2003 2004 2005 2006
· Products under Development 203 183 171 166 168
Commercial Programs 138 105 61 34 27
Corporate Programs 15 6 2 2 2
Defense Programs 51 72 109 130 139
· Segments 3 2 2 2 2
· Technology Development 6 6 6 6 6
· TOR 2 2 - - -
· Property, Plant & Equipment 116 69 59 50 51
TOTAL 329 262 238 224 227

34. US Gaap & Corporate Law
Accounting

35. Differences Brazilian Gaap & US Gaap
The Company’s accounting policies comply with the Corporate Law
& Brazilian Gaap.
Corporate Law:
Does not recognize the effects of changes in the purchasing power of the
Brazilian currency. Used as local reporting policy for taxes purposes and
for the Brazilian Exchange Commision – CVM
Brazilian Gaap:
Recognizes effects of changes in the purchasing power of Brazilian
currency due to inflation and is expressed in constant Reais. The
Company uses the General Market Price Index (IGPM) which is published
by Fudação Getúlio Vargas – FGV.
US Gaap:
The effects of the price level adjustments are not eliminated in the
reconciliation to US Gaap

36. Differences Brazilian Gaap & US Gaap
Foreign Currency Translation
Brazilian Gaap:
Does not recognize a functional currency for a Brazilian Company
reporting in Reais.
US Gaap:
The majority of the Company’s Sales Revenues, Cost of Sales and
Financing Costs are denominated in or indexed to US Dollar. Therefore
the US Dollar its been used as functional currency.

37. Differences Brazilian Gaap & US Gaap
Revaluation of PP&E
Brazilian Gaap:
Revaluations may be recorded, providing certain formalities are complied
with. The revaluation increment is credited to a reserve account in
Shareholders’ equity and transferred to retained earnings as the related
assets are depreciated or upon disposal.
US Gaap:
The PP&E are reported as their historical cost less accumulated
depreciation; revaluations are not permited.

38. Differences Brazilian Gaap & US Gaap
Organizational & Preoperating Costs
Brazilian Gaap:
Preoperating expenses incurred in the construction or expenasion of a
new facility may be deferred until the facility begins commercial
operations. All cost related to the start up may also be capitalized. The
amount as ajusted for monetary correction, when appropriate, is amortized
over a period of five to tem years.
US Gaap:
The rules are more restrictive. Construction and expensions costs are
allocated to PP&E; preoperating and start up costs expenses are charged
to operations, and costs of start up activities and organization costs are
expensed as incurred.

39. Differences Brazilian Gaap & US Gaap
Deferred Charges
Brazilian Gaap:
R&D for new aircraft types, new production lines or operations are
capitalized or deferred for amortization over the period of time from the
date the related production benefits or operations begin.
US Gaap:
R&D divided into two categories: R&D and Additions to Fixed Assets.
R&D Costs: is the expense actually associated with the design and
development of the aircraft and are expensed as they are incurred.
Additions to Fixed Assets: rellate solely to tooling built by the Company
and required for the project, and treated as additions to PP&E, depeciated
on the straight-line basis over twenty years.

40. Differences Brazilian Gaap & US Gaap
Income Tax
Brazilian Gaap:
Income Tax rate is approximatelly 38.0% based on the Company’s (non
consolidated results).
Possibilty of recongnising the tax loss carryfoward benefit.
US Gaap:
As we are a Brazilian Company we pay tax based on our Corporate Law
Income.
Also, we do not have the tax loss carryfoward benefit.

41. Differences Brazilian Gaap & US Gaap
Earnings per Share
Brazilian Gaap:
Disclousure of earnings per share is computed based on the number of
shares outstanding at the end of the period.
US Gaap:
Because the preferred and common shares have different dividend, voting
and liquidation rights basic and diluted earnings per share are caluculated
using the “two class method”:

42. Differences Brazilian Gaap & US Gaap
Other Differences
• Computer Software Obtained for Internal Use
• Capitalization of Financing Costs During Construction
• Leasing Transactions
• Income Taxes
• Reversal of Proposaed Dividends
• Financial Instruments and Concentration of Credit Risk

43. Financial Presentation
Corporate Law
Figures were converted into US dollars using the average rate or the final
commercial rate for the Income Statement and Balance Sheet respectively, for
the corresponding periods.
US Gaap
The historical US GAAP data were deflated and converted using the U.S. dollar
exchange rate at the end of the period presented.

44. Net Sales
(US$ Million)
5000
4000
2732 2787
3000 2369
2035 1844 2009 2108
2000 1300 1352 1548
758 764
1000 405 381
0
1996 1997 1998 1999 2000 9M00 9M01
US GAAP Corporate Law
10

45. EBITDA
(US$ Million)
1000
774
800 596
600 394 507 439 505
350
400 285 287
128 142 196
200 12 75
0
1996 1997 1998 1999 2000 9M00 9M01
US GAAP Corporate Law
10

46. Net Income
(US$ Million)
500
400 353 354
272 222
300 247 227 196
191
200 129 114
100 66
0
(100) (31)
(200) (84) (122)
(300)
1996 1997 1998 1999 2000 9M00 9M01
US GAAP Corporate Law
10

47. 2Q01 Vs 3Q01 – US Gaap
2Q01 3Q01 Variation
(US$ million)
Net Sales $751.8 $745.0 (1)%
Gross Profit 277.9 292.9 5%
Gross Margin 37% 39%
EBIT 154.4 175.5 14%
EBIT Margin 21% 24%
EBITDA 162.5 188.1 16%
EBITDA Margin 22% 25%
Net Interest (Expense) Income, net (1.9) 0.1 (106)%
Monetary & Exchange Variations (20.3) (77.7) 283%
Net Income 65.8 66.5 1%
Net Margin 9% 9%

48. 9M00 Vs 9M01 – US Gaap
9M00 9M01 Variation
(US$ million)
Net Sales $1,548.3 $2,108.3 36%
Gross Profit 529.4 801.5 51%
Gross Margin 34% 38%
EBIT 331.2 475.0 43%
EBIT Margin 21% 23%
EBITDA 350.3 505.4 44%
EBITDA Margin 23% 24%
Net Interest (Expense) Income, net (38.9) 7.2 (119)%
Monetary & Exchange Variations (2.4) (155.5)
Net Profit 190.6 195.7 3%
Net Margin 12% 9%

49. Backlog &
Deliveries Forecast

50. Backlog – US$ Billion
US$ 23.4 Billion in Total Backlog, including
US$ 10,7 Billion in Firm Backlog
22,9 24,0 23,7 23,5 23,9 23,4
20,8
18,3
12 12,6 12,8 12,8 12,7 12,7
12,2
10,6
10,9 11,4 10,9 10,7 11,2 10,7
7,7 8,6
1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01
Firm Options

51. Jet Deliveries - Units
180
160 161
160 145
140 135
120
96
100
80
60
60
40 32
20
4
0
1996 1997 1998 1999 2000 2001 2002E 2003E