Presentation IR - July 2012

This information is property of Embraer and cannot be used or reproduced without written permission.Investor Relations

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Investor RelationsPhone: +55 12 3927 [email protected]

www.embraer.com

2Q12


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Corporate and Business Strategy

• Product strategy.

• Diversification and expansion of customer base.

• Excellence in Customer Experience (ECE).

• Product strategy.

• Diversification and expansion of customer base.

• Excellence in Customer Experience (ECE).

• Market share growth.

• Margins improvement.

• Product strategy and customer support focus.

• Market share growth.

• Margins improvement.

• Product strategy and customer support focus.

• Organic growth.

• Margins enhancement through the P3E.

• Business and revenues diversification.

• Establish Embraer as the defense house of Brazil.

• Organic growth and acquisitions.

• Establish Embraer as the defense house of Brazil.

• Organic growth and acquisitions.


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36 3721

1

126

83

1619

98

2

12

2007 2008 2009 2010 2011 1Q2012

133

165

125101

21

105

2007 2008 2009 2010 2011 1Q2012

Aircraft Deliveries

Large Jets - Legacy & LineageLarge Jets - Legacy & Lineage

Light Jets - PhenomLight Jets - Phenom

Commercial JetsCommercial Jets Executive JetsExecutive Jets

2012 deliveries estimates • 105 - 110 commercial jets• 15 - 20 executive large jets• 75 - 85 executive light jets


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5,2456,335

5,498 5,364 5,803

1,156

2007 2008 2009 2010 2011 1Q2012

Revenues

2012 Outlook: US$ 5.8 – 6.2 billion2007-2008: USGAAP2009-2012: IFRS2007-2008: USGAAP2009-2012: IFRS

US$ Million


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69%61% 64%

17%23% 19%

12% 15% 15%2% 1% 2%

2009 2010 2011

22%13% 20%

33%33% 25%

7%15% 11%

11% 13% 17%

21% 22% 23%

6% 4% 4%

2009 2010 2011

Revenues Breakdown

Revenues by Segment Revenues by Region

Commercial aviationCommercial aviationExecutive aviationExecutive aviation OthersOthers

Defense and securityDefense and security North AmericaNorth AmericaBrazilBrazil

EuropeEuropeAsia PacificAsia Pacific

Latin AmericaLatin AmericaOthersOthers

Revenues US$ Billion 5.805.805.495.49 5.365.365.805.805.495.49 5.365.36

Revenues US$ Billion


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Firm Order Backlog

US$ Billion

14.818.8

20.916.6 15.6 15.4 14.7

2006 2007 2008 2009 2010 2011 1Q2012


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Embraer Commercial Aviation

83 AIRLINES IN 51 COUNTRIES


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Product Portfolio

capacity: 70 to 80 seatsrange: 2,100 nm (3,900 Km)




capacity: 37 seatsrange: 1,750 nm (3,250 Km)





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E-Jets Customer Base Evolution


E-Jets Family Order Book – 1Q12

E-JETS Firm orders Deliveries Firm Backlog

EMBRAER 170 189 182 7

EMBRAER 175 189 145 44

EMBRAER 190 552 402 150

EMBRAER 195 133 94 39

Total 1,063 823 240


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Worldwide Distribution

E-Jets Customer Base by Business Model

(% of E-Jets Fleet+Backlog)

Firm Orders

Commercial Jets Market Share Evolution Worldwide

Considering Accumulated Net Orders

60-120 Seats Jets

27%

32%

41%

12%9%

27%17%

35%

16%8%

30%13%

33%

Backlog

Europe & CISMiddle East & AfricaLatin America

North AmericaAsia Pacific & China

North AmericaAsia Pacific & China

43%43%

30%30%

3%3%

7%7%5%5%

Low Cost CarriersRegional AirlinesNetwork Airlines

Low Cost CarriersRegional AirlinesNetwork Airlines


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E-Jets Deployment

World

Right-sizing New Markets Replacement of old Jets

NaturalGrowth

helping airlines to be more efficienthelping airlines to be more efficienthelping airlines to be more efficienthelping airlines to be more efficient


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Embraer Market Forecast (2011-2030)

North

America

84032%

NorthAmerica

2,35033%

Latin

America

31512%

LatinAmerica

6709%

Europe

58022%

Europe

1,67523%

Russia / CIS

1556%

Russia / CIS

4356%

Africa

803%

Africa

1953%

Middle East

1054%

Middle East

3104% Asia

Pacific

2108%

Asia Pacific

6159%

China

34013%

China

97513%

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)

2011 – 2030

Deliveries

30-60 430

61-90 2,670

91-120 4,125

30-120 7,225

• 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

Around 7,225 jet deliveries (30-120 seats) in the next 20 years (US$ 320 bi)


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110 Seats110 Seats

Competitive Landscape

70-90 Seats70-90 Seats

100 Seats100 SeatsCRJ 1000

MRJ70

MRJ90ARJ21

E195

E190

E175

E170

SSJ100/95

CS100

CRJ900

CRJ700

60

70

80

90

100

110

120

1600 1800 2000 2200 2400 2600 2800 3000

Range Nominal

Cap

acit

y 32

'' p

itch



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Embraer Executive Jets

MORE THAN 500 AIRCRAFT DELIVERED IN OVER 40 COUNTRIES

Embraer Executive Jet Delivered in Brazil


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Product Portfolio

Large

Aircraft Model

Phenom 100

Phenom 300

Legacy 450

Legacy 500

Legacy 600

Lineage 1000

Seats / Range

up to 8 occupants/ 1,178 nm

up to 11 occupants/ 1,971 nm

7 to 9 passengers/ 2,300 nm




Entry

Light

Mid-light

Mid-size

Ultra-large

Super Mid-Size

Certified: 2008

Certified: 2009

Under development

Certified: 2001

Certified: 2008

Ultra-Long Range

Competitors

• Cessna - Mustang CJ1+/M2• HondaJet

• Cessna - CJ2+/CJ3/CJ4• Hawker - PremierIA/400XP• Bombardier - Learjet 40XR• SyberJet - SJ30

• Bombardier - Learjet 45XR• Cessna - XLS+/Latitude• Hawker 750

• Bombardier - Learjet 60XR/85• Cessna - Sovereign• Hawker - H900XP• Gulfstream – G150

• Bombardier - CL605/GL5000• Dassault - Falcon 2000/900LX• Gulfstream - G350/G450

• Airbus - ACJ 318/319/320• Boeing – BBJ/BBJ2/BBJ3• SSJ VIP/ ARJ21B / An-148VIP

Legacy 650 13 to 14 passengers/ 3,900 nmCertified: 2010

• Bombardier - GL XRS• Gulfstream – G500/G550/G650• Dassault – Falcon 7X

• Bombardier - CL300/CL850• Cessna - X/Ten• Dassault - Falcon 2000S• Gulfstream - G200/G280• Hawker - H4000


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26%24% 22% 21% 20%

26%35% 37% 40%33%

9%7% 7% 6%

9%

15%13% 13% 14%11%

14%3% 3% 3% 14%

7%16% 16% 14% 11%

2%3% 2% 1% 2%

20112006 2007 2008 2009%

OEM

Sha

re –

Tot

al u

nits

703 885 1,040 1,154 870

Market Share

OthersHawker-BeechEmbraer Gulfstream

DassaultCessnaBombardier

Deliveries share (units)Revenues share (US$ - based on B&CA list prices)

33%29% 28% 29% 28%

9%16% 17% 18% 12%

15%11% 12% 12% 18%

27%23% 23% 24% 21%

4% 5% 4% 6%

4%9% 8% 8% 8%

7%8% 6% 5% 6%

20112006 2007 2008 2009

% O

EM S

hare

– T

otal

Rev

enue

s U

S$

$18.1Bi$16.6Bi $19.3Bi $22.2Bi $17.2Bi

2010

763

7%

2010

$18.2Bi

19%

27%

7%

22%

21%

6%10%

20%

23%

12%

13%

10%3%

6%

Market Revenues 2011: US$18.1 billion

Embraer Revenues: US$1.0 billion

Market Deliveries 2011: 703 units

Embraer Deliveries: 99 units


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2012-21 Market Forecast World Deliveries

8,660 ~ 11,275 jets US$ 205 ~ 260 billion over the next 10 years


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North AmericaEMB: 219 a/c4,200 to 5,300 a/c (47%) US$ 90 to 110 Bi (42%)

EMEAEMB: 164 a/c2,400 to 3,400 a/c (30%)US$ 62 to 88 Bi (34%)

Asia PacificEMB: 35 a/c

1,400 to 1,700 a/c (15%)US$ 40 to 48 Bi (18%)

Latin AmericaEMB: 123 a/c700 to 900 a/c (8%)US$ 12 to 16 Bi (6%)

ChinaEMB 4 a/c520 to 640 a/c (6%)US$ 17 to 21 Bi (8%)

Embraer Actual Fleet Distribution and 2012-21 Market Forecast

BrazilEMB: 111 a/c550 a/c (5%)US$ 8 Bi (3%)

June, 2012June, 2012


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Pre-owned Inventory: Recovering

Business Jets For Sale

13.3%2,470 jets

8.2%662 jets


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OVER 50 ARMED FORCES IN 48 COUNTRIES

Embraer Defense and Security


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Embraer Defense and Security

Embraer Defense and Security, partners and affiliated companies


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Embraer Defense and Security Results

Não contabiliza as receitas provenientes da OGMA nos anos de 2006 a 2010.Não contabiliza as receitas provenientes da OGMA nos anos de 2006 a 2010.

Revenues Evolution (US$ Million)

EBIT Evolution (%) Backlog Evolution (US$ Billion)

227346

505 499670

852

6% 7% 8% 9%

13%15%

2006 2007 2008 2009 2010 2011

Rev

enu

e P

arti

cip

atio

n (

%)GAGR 33%

6.3%

12.4% 12.2% 12.0%13.4%

9.6%

2006 2007 2008 2009 2010 2011

1.1 1.01.5

3.2 3.3 3.3

2006 2007 2008 2009 2010 2011


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Super Tucano

Firm orders: 182 aircraft

Brazil: 99

Colombia: 25

Dominican Republic: 8

Chile: 12

Ecuador: 18

Indonesia: 8

Greystone (TACAir): 1

Undisclosed: 11

Deliveries: 156 aircraft

Total Market Forecast:

300 aircraft / US$ 3.5 billion

8002,000

700Medium-term

Long-term

Short-term

Addressable Market Forecast 2020

(US$ million)


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EMBRAER KC-390

• A new tactical military transport and tanker aircraft

• First flight in 2014

• Six countries

• Letters of intent totalizing 60 aircraft

Brazil (28)

Colombia (12)

Argentina (6)

Chile (6)

Portugal (6)

Czech Rep. (2)

Total Market Forecast 2025:

700 aircraft / US$ 50+ bi


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A1-MF-5M A-4

Brazilian Navy A-412 aircraftTwo prototype at GPX-CS

Brazilian Air Force A-1M43 aircraftFive received by Embraer for the modernization

Brazilian Air Force F-5M46 a/c + 11 a/c (2nd batch)44 already delivered

* Considering the market for F-5 and Tucano modernization* Considering the market for F-5 and Tucano modernization

Modernization Programs

Addressable Market Forecast 2025

(US$ million)

Total Market Forecast*:

234 aircraft / US$ 1.6 billion

527

505

567

Medium-term

Long-term

Short-term


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New Portfolio

HARPIA

Command and Control Systems

Onboard Systems

Simulation Systems

Electronic Warfare Systems

Intelligence Systems

Air Traffic Management and Control Systems

JV with Elbit/AEL Sistemas where Embraer Defense and

Security has a major participation

UAS, simulators and modernization of avionics systems

Air, ground and sea surveillance radars

Remote sensing

Engine and Component Maintenance

Overhaul and Modernization

Aerostructure Manufacturing and Assembling

SatelliteVISIONA

Security of Critical

Infrastructure

Public Security (sporting events, cities, states)

Airport Management

Systems

SISFRON

SisGAAZ


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SISFRONIntegrated Borders Monitoring System

Estimate: US$ 4 Billion

Comprising radars, communication networks, C4I, unmanned air vehicles (UAV) and armored vehicles

Brazilian Army Priorities

Comm9% UAV

12%

SW20%

Sensors59%

SatelliteEstimate: US$ 400 Million

Participation in the first Brazilian Geostationary Satellite


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New Business

•Airport Management Systems

•SisGAAz (“Blue Amazon” Integrated Management System)

•Security of Critical Infrastructure

•Public Security (sporting events, cities, states)

Transport4%

Light Attack and Combat

9%

KC-39034%

Radar, C4I, UAV, MRO18%

New Business14%

Sisfron, Satellite10%

Services11%2020

Revenues Breakdown Evolution

2011Services

10%

Modernization25%

Radar, C4I, UAV, MRO27%

Light Attack9%

ISR10%

KC-39019%


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2012 Outlook2012 Outlook


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Net Revenues US$ 5.8 – 6.2 billion

Commercial aviationCommercial aviation

Executive aviationExecutive aviation

OthersOthers

Defense and securityDefense and security

Expected deliveries: 105 to 110 commercial jets,

75 to 85 light jets and 15 to 20 large jets.

EBIT margin

11.5% – 12.5%EBITDA margin

8.0% – 8.5%

2012 Outlook


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2012 Outlook

US$ 350 millionDevelopment

CAPEX US$ 200 million

Research US$ 100 million

CAPEX

R&D

Investment/Revenue

US$ Million

TOTAL

US$ 650 million


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US$

2010 198 374

2011 262 420

Net Revenues / SG&A Expenses

Net Revenues - US$ Million SG&A Expenses - US$ Million

US$

2010 5,364 19.1%

2011 5,803 22.5%

Net RevenuesNet Revenues Gross MarginGross Margin Selling ExpensesSelling ExpensesG&A ExpensesG&A Expenses

1,0561,359 1,364

2,025

1,156

24.3%

22.4%21.2%

22.5% 23.2%

1Q11 2Q11 3Q11 4Q11 1Q12

94109 103 114

57

64 6972 71

109

1Q11 2Q11 3Q11 4Q11 1Q12

172172186186

151151

173173 180180


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Income from Operations / EBITDA

Income from Operations - US$ Million EBITDA - US$ Million

US$

2010 392 7.3%

2011 318 5.5%

EBITEBIT EBIT MarginEBIT Margin US$

2010 611 11.4%

2011 557 9.6%

EBITDAEBITDA EBITDA MarginEBITDA Margin

106124

(6)

8694

7.4%

-0.3%

9.1%7.8%

8.9%

1Q11 2Q11 3Q11 4Q11 1Q12

156 153188

59

148

14.8%

11.3%

13.8%

2.9%

12.8%

1Q11 2Q11 3Q11 4Q11 1Q12


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Net Income / Free Cash Flow

Net Income - US$ Million Free Cash Flow - US$ Million

Net MarginNet MarginNet IncomeNet IncomeUS$

2010 330 6.2%

2011 112 1.9%

US$

2010 287

2011 1

105 96

2

-92

63

10.0%7.1%

0.1%

-4.5%

5.4%

1Q11 2Q11 3Q11 4Q11 1Q12


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Indebtedness Profile / Net Cash

Indebtedness Maturity Net Cash - US$ Million

Long-termLong-term Short-termShort-term

Loans Average Maturity (Years)Loans Average Maturity (Years)

US$ 2.0 BillionTotal Debt 1Q12 Total Cash 1Q12 US$ 2.3 Billion

505406

193

446

302

1Q11 2Q11 3Q11 4Q11 1Q12

74%85%

10% 13%

90%87% 74%

26%15%

26%

5.75.0

4.54.8

4.2

1Q11 2Q11 3Q11 4Q11 1Q12


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Investors’ Return

Pay OutPay OutEPADSEPADS

2006-2008: US GAAP2009-2011: IFRS2006-2008: US GAAP2009-2011: IFRS**

EPADS and Pay Out Dividend Yield (%)

1.83

2.572.14

2.642.11

0.62

34%26%

52%

68%53%

115%

2006 2007 2008 2009* 2010* 2011*

35%

1.682.132.01

2.91

4.34

3.28

2.23

2006 2007 2008 2009 2010 2011


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724,040,044 Voting Shares724,040,044 Voting Shares

Ownership Structure

March, 2012


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Sustainability Initiatives

Brazilian Alliance for Bio-fuel

Reforestation Projects

ISO 14001 and OHSAS 18001 Certifications

1st ethanol powered aircraft in the World

IpanemaIpanemaRecycling

Corporate ValuesGreener Technology

Social Activities


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Lean Results E-Jets Final Assembly Line Transformation

“Dock” layout - 2008 Assembly Line – 2009 Assembly Line – 2011

0

0

68

8

4

Mar/11 (10ac/month)

00,21,51,510Over time (% of work hours)

001,7732Number of non-conformity per a/c

688995106212Work in process (US$mi)

78101218Cycle time (days)

445612Number of positions

Out/11 (12ac/month)

June/2010 (8ac/month)

Sep/2009 (10ac/month)

July/2009 (10ac/month)

May/2008 (15ac/month)

Performance indicators

0

0

68

8

4

Mar/11 (10ac/month)

00,21,51,510Over time (% of work hours)

001,7732Number of non-conformity per a/c

688995106212Work in process (US$mi)

78101218Cycle time (days)

445612Number of positions

Out/11 (12ac/month)

June/2010 (8ac/month)

Sep/2009 (10ac/month)

July/2009 (10ac/month)

May/2008 (15ac/month)

Performance indicators


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Lead Time (E-Jets)

2005 2006 2007 2008 2009 2010 2011

40% reduction on the production cycle

40%

P3E Results

Kaizen - E-Jets Cycle Reduction Cost of Non Quality Reduction

44% reduction on CNQ 44% reduction on CNQ

Cost of Non Quality

2008 2009 2010

44%


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Cost: US$ 18.9 mi

Benefit: US$ 175.5 mi

“Boa Idéia” Program Evolution


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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.