3. 3
HighlightsHighlights
Investment Grade rating by Moody’s and S&P.
Strong Balance sheet with solid Net cash position.
Company established in 1969, with business in four segments.
Privatized in 1994 and listed in USA in 2000.
Broad customer base in commercial, executive and defense aviation segments.
Global footprint.
Highly experienced management team.
4. 4
Global BusinessGlobal Business
Operations in Brazil, USA, Europe and Asia
Dual listed in Brazil’s Bovespa (1989) and NYSE (2000)
Melbourne*
Fort Lauderdale
Nashville
USA
Taubaté
Botucatu
Gavião Peixoto
São José dos Campos
Brazil
Évora*
Alverca
Portugal
Le Bourget
Villepinte
France
Harbin
Beijing
China
Singapore
Singapore
Countries of Operation Factories Offices Service Centers Contracted/ Planned Authorized Network* Under construction
One of Brazil’s largest exporters of manufactured goods
Diversified customer-base across five continents
Mesa
Widson Locks
São Paulo
Spare Parts Distribution Centers
Louisville
Minneapolis
12. 12
Worldwide DistributionWorldwide Distribution
Diversified Customers Across 5 Continents
Asia Pacific /
China
14%
Middle East /
Africa
21%
Europe / CIS
33%
Latin
America
17%
North
America
15%
Firm Orders
Asia Pacific / China
14%
Middle East /
Africa
9%
Europe / CIS
21%
North
America
44%
Latin America
12%
Embraer Bombardier
Sukhoi Boeing Airbus
Antonov
Comac
Mitsubishi
Commercial Jets Market Share Evolution Worldwide
0%
15%
30%
45%
60%
75%
1995 1998 2001 2004 2007 2010
Considering Accumulated Firm Orders:
30-120 Seats Jets
44%
43%
4%
2%
3%
3%
1%
0%
13. 13
EE--Jets DeploymentJets Deployment
World
8%
21%
8%
21%
21%
Natural
Growth
29%
6%
29%
6%
20%20% 7%
8%
7%
8%
5%5%
7%
32%
7%
32%
11%11%
50%
Right-sizing
North
America
57%
8%
North
America
57%
8%
Europe
40%
Europe
40%
Latin
America
49%
Latin
America
49%
Africa
52%
Africa
52%
Middle East
62%
5%
Middle East
62%
5%
China
12%
China
12%
Asia Pacific
50%
11%
Asia Pacific
50%
11%8%8%
14%14%
New Markets
6%6%
20%
31%20%
31%
5%
33%
5%
33%
49%49%
39%39%
20%
8%8%
Replacement
of old Jets
25%25%
33%
7%
33%
7%
7%7%
9%
14. 14
Around 6,875 jet deliveries (30-120 seats) in the next 20 years (US$ 200 bi)
Embraer MarketEmbraer Market
Forecast (2010Forecast (2010--2029)2029)
North
America
840
32%
North
America
2,400
35%
Latin
America
315
12%
Latin
America
575
8%
Europe
580
22%
Europe
1,510
22%
Russia /
CIS
155
6%
Russia /
CIS
405
6%
Africa
80
3%
Africa
220
3%
Middle
East
105
4%
Middle
East
240
4%
Asia
Pacific
210
8%
Asia
Pacific
575
8%
China
340
13%
China
950
14%Projected Deliveries - Jets
Market Segment
(Seats)
2010 – 2019
Deliveries
30-60 60
61-90 1,015
91-120 1,550
30-120 2,625
Market Segment
(Seats)
2010 – 2029
Deliveries
30-60 475
61-90 2,515
91-120 3,885
30-120 6,875
20. Industry Deliveries (units)
20112011--20 Market Forecast20 Market Forecast
World DeliveriesWorld Deliveries
0
40
80
120
160
200
240
2000-10 2011-20
US$ 169.6 Bi
(9,029 jets)
US$ 210 Bi
(10,000 jets)
Historic Forecast
Industry Revenues
More than 10,000 jets: US$ 210 billion over the next 10 years
21. 21
Business Jets TrafficBusiness Jets Traffic
2005
2006
2007
2008
2009
2010
20,000
30,000
40,000
50,000
60,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
European Bizjet Flight Activity
2005
2006
2007
2008
2009
2010
100,000
130,000
160,000
190,000
220,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
US/FAA Bizjet FlightActivity
22. 22
Pre Owned MarketPre Owned Market
Fleet for SaleFleet for Sale
0
500
1000
1500
2000
2500
3000
3500
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
9 9 0 0 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 10
Units
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
28%
%ofactivefleet
% for sale (per total fleet
in operation)
Business Jets For Sale
Source: Embraer analysis – October 2010
fleet older than 10 yrs
fleet from 6 to 10 yrs
fleet up to 5 yrs and positions
% for sale (per total fleet in operation)
up to 10 yrs % for sale
fleet up to 5 yrs
positions 15.0% / 10.5%
2647 jets / 896 jets
2008: Net increase of 1,100 a/c
2009: Net increase of 33 a/c
2010TD: Net decrease of 157 a/c
24. 24
Defense ProductsDefense Products
and Servicesand Services
Advanced Training and
Light Attack
Transport of AuthoritiesISR (Intelligence, Surveillance
and Reconnaissance)
Modernization Programs Command and Control
Systems
Military Tactical Transport
Services
25. • Firm orders: 172 aircraft
• Brazil: 99
• Colombia: 25
• Dominican Republic: 8
• Chile: 12
• Ecuador: 18
• Undisclosed: 10
Deliveries: 146 aircraft
• To be delivered: 26 aircraft
• Prospects:
• South East Asia
• Africa
• Americas
Ref.: September 2010
• Training and COIN aircraft Market
Forecast 2020
• 700 aircraft / US$ 8 bi
Super TucanoSuper Tucano
26. 26
• Currently in the “Initial Definition Phase”
• Market Forecast 2025: 700 aircraft / US$ 50+ bi
• New tactical military transport aircraft
• Payload: 23 ton / Range: 1400 nm
• Contract signed with Brazilian Air Force in April 2009
Length: 33.81 m (110.9 ft)
Wingspan: 35.06 m (115.0 ft)
Height: 10.26 m (33.7 ft)
EMBRAER KCEMBRAER KC--390390
28. 2828
Business HighlightsBusiness Highlights
Legacy 650 certified by ANAC and EASA. Deliveries in 4Q10.
Argentina’s Austral received its first EMBRAER 190.
Sale of 37 E-Jets at Farnbourogh.
Sale of 10 + 5 EMBRAER 190 jets to Air Lease Corp.
NetJets buys 50 Phenom 300, plus 75 options at NBAA.
Brazil, Chile, Colombia, Portugal, Czech Republic and Argentina signed LOI
for up to 60 KC-390 aircraft.
Embraer expands its Customer Support in China.
29. 2929
Financial HighlightsFinancial Highlights
Stable net cash position of US$ 623.8 million.
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.
Net revenues of US$ 1.04 billion and gross margin of 22.1%.
Firm order backlog remained stable at US$ 15.3 billion.
39. 3939
2010 Guidance and2010 Guidance and
OutlookOutlook
7.25%
Current GuidanceCurrent Guidance -- 2Q102Q10 New GuidanceNew Guidance
US$ 380 million
~12%
US$ 340 million
Net Revenues
EBIT
EBIT margin
US$ 5.25 billion
6.50%
R&D
PP&E
US$ 160 million
US$ 140 million
US$ 420 millionEBITDA
EBITDA margin 8.0%
US$ 100 million~30%
8.75%
US$ 460 million
~10%
Current OutlookCurrent Outlook New OutlookNew Outlook
41. 4141
Forward Looking StatementForward 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.