Investor Relations. Phone: Oct/12

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Darleen Murphy
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1 Phone: Oct/12

2 Corporate and Business Strategy Organic growth. Margins enhancement through the P3E. Business and revenues diversification. Product strategy. Diversification and expansion of customer base. Excellence in Customer Experience (ECE). Market share growth. Margins improvement. Product strategy and customer support focus. Establish Embraer as the defense house of Brazil. Organic growth and acquisitions. 2

3 Aircraft Deliveries Commercial Jets Executive Jets M M2012 Light Jets - Phenom Large Jets - Legacy & Lineage 3

4 Revenues US$ Million 5,245 6,335 5,498 5,364 5,803 4, M Outlook: US$ billion : USGAAP : IFRS

5 Revenues by Segment 2012 Outlook Embraer: US$ Billion Commercial Aviation: US$ Billion 1,364 2,025 1,156 1,717 1, , , Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Executive Aviation: US$ Billion Defense and Security: US$ Million Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12

6 Revenues Breakdown Revenues by Segment Revenues by Region Revenues Revenues US$ Billion US$ Billion % 1% 2% 12% 15% 15% 17% 23% 19% 6% 4% 4% 21% 22% 23% 11% 13% 17% 7% 15% 11% 69% 61% 64% 33% 33% 25% 22% 13% 20% Commercial aviation Executive aviation Defense and security Others North America Brazil Europe Asia Pacific Latin America Others 6

7 Firm Order Backlog US$ Billion Q11 4Q11 1Q12 2Q12 3Q12 7

8 8

9 Embraer Commercial Aviation OVER 80 AIRLINES IN MORE THAN 50 COUNTRIES 9

(3,050 Km) capacity: 98 to 114 seats range: 2,400 nm (4,500 Km) capacity: 50 seats range: 1,550 nm

10 Product Portfolio capacity: 70 to 80 seats range: 2,100 nm (3,900 Km) capacity: 37 seats range: 1,750 nm (3,250 Km) capacity: 78 to 88 seats range: 2,000 nm (3,700 Km) capacity: 44 seats range: 1,650 nm (3,050 Km) capacity: 98 to 114 seats range: 2,400 nm (4,500 Km) capacity: 50 seats range: 1,550 nm (2,900 Km) capacity: 108 to 122 seats range: 2,200 nm (4,100 Km) capacity: 50 seats range: 2,000 nm (3,700 Km) 10

11 E-Jets Customer Base Evolution 11

182 10 EMBRAER 175 191 160 31 EMBRAER 190 543

12 E-Jets Family Order Book 3Q12 E-JETS Firm orders Deliveries Firm Backlog EMBRAER EMBRAER EMBRAER EMBRAER Total 1,

Worldwide Distribution Commercial Jets Market Share Evolution Worldwide 60-120 Seats Jets E-Jets

Airlines Network Airlines 30% Firm Orders Backlog 7% 5% 3% 35% 12% 9% 33% 16% 8% 17% 27% 13% 30%

13 Worldwide Distribution Commercial Jets Market Share Evolution Worldwide Seats Jets E-Jets Customer Base by Business Model (% of E-Jets Fleet+Backlog) 43% 48% 19% 33% Low Cost Carriers Regional Airlines Network Airlines 30% Firm Orders Backlog 7% 5% 3% 35% 12% 9% 33% 16% 8% 17% 27% 13% 30% Considering Accumulated Net Orders Europe & CIS Middle East & Africa Latin America North America Asia Pacific & China 13

14 E-Jets Deployment helping airlines to be more efficient World 14 Right-sizing New Markets Replacement of old Jets Natural Growth

15 Embraer Market Forecast ( ) 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 Projected Deliveries - Jets Market Segment (Seats) Deliveries ,625 1, ,765 1, ,795 2,625 North America 2, % Latin America % 12% Europe 1, % Africa % Middle East % Russia / CIS % 6% China 1, % 13% Asia Pacific % 8% Around 6,795 jet deliveries ( seats) in the next 20 years (US$ 315 bi) 15

16 Capacity 32'' pitch Competitive Landscape Seats E195 CS CRJ 1000 E Seats SSJ100/ Seats CRJ900 ARJ21 E175 MRJ90 70 CRJ700 E170 MRJ Range Nominal 16

18 Embraer Executive Jets Embraer Executive Jet Delivered in Brazil MORE THAN 550 AIRCRAFT DELIVERED IN OVER 40 COUNTRIES 18

19 Product Portfolio Aircraft Model Seats / Range Competitors Entry Certified: 2008 Phenom 100 up to 8 occupants/ 1,178 nm Cessna - Mustang CJ1+/M2 HondaJet Light Certified: 2009 Phenom 300 up to 11 occupants/ 1,971 nm Cessna - CJ2+/CJ3/CJ4 Hawker - PremierIA/400XP Bombardier - Learjet 40XR SyberJet - SJ30 Mid-light Under development Legacy to 9 passengers/ 2,300 nm Bombardier - Learjet 45XR Cessna - XLS+/Latitude Hawker 750 Mid-size Super Mid-Size Certified: 2001 Legacy 500 Legacy to 12 passengers/ 3,000 nm 13 to 14 passengers/ 3,400 nm Bombardier - Learjet 60XR/85 Cessna - Sovereign Hawker - H900XP Gulfstream G150 Bombardier - CL300/CL850 Cessna - X/Ten Dassault - Falcon 2000S Gulfstream - G200/G280 Hawker - H4000 Large Certified: 2010 Legacy to 14 passengers/ 3,900 nm Bombardier - CL605/GL5000 Dassault - Falcon 2000/900LX Gulfstream - G350/G450 Ultra-Long Range Ultra-large Certified: 2008 Lineage to 19 passengers/ 4,500 nm Bombardier - GL XRS Gulfstream G500/G550/G650 Dassault Falcon 7X Airbus - ACJ 318/319/320 Boeing BBJ/BBJ2/BBJ3 SSJ VIP/ ARJ21B / An-148VIP 19

20 % OEM Share Total Revenues US$ % OEM Share Total units Market Share Revenues share (US$ - based on B&CA list prices) Deliveries share (units) $16.6Bi $19.3Bi $22.2Bi $17.2Bi $18.2Bi $18.1Bi 885 1,040 1, % 6% 5% 6% 9% 8% 8% 8% 4% 5% 4% 6% 23% 23% 24% 21% 11% 12% 12% 18% 16% 17% 18% 12% 10% 6% 7% 21% 22% 7% 7% 4% 6% 27% 15% 9% 3% 2% 1% 2% 16% 16% 14% 11% 3% 3% 3% 14% 13% 13% 14% 7% 7% 6% 11% 9% 35% 37% 40% 33% 3% 10% 19% 13% 12% 23% 2% 7% 14% 15% 9% 26% 29% 28% 29% 28% 27% 33% 24% 22% 21% 20% 20% 26% Market Revenues 2011: US$18.1 billion Embraer Revenues: US$1.0 billion Embraer Bombardier Cessna Dassault Gulfstream Market Deliveries 2011: 703 units Embraer Deliveries: 99 units Hawker-Beech Others 20

21 Market Forecast - World Deliveries 21

22 Market Forecast 22

23 Business Jets Used Market Inventory Improvement halted 23

24 24

25 Embraer Defense and Security OVER 50 ARMED FORCES IN 48 COUNTRIES 25

26 Embraer Defense and Security Embraer Defense and Security, partners and affiliated companies 26

27 Revenue Participation (%) Embraer Defense and Security Results Revenues Evolution (US$ Million) 6% GAGR 33% 7% 8% 9% 13% 15% EBIT Evolution (%) Backlog Evolution (US$ Billion) 12.4% 12.2% 12.0% 13.4% 9.6% 6.3% Não contabiliza as receitas provenientes da OGMA nos anos de 2006 a 2010.

Super Tucano Firm orders: 190 aircraft Brazil: 99 Colombia: 25

(TACAir): 1 Undisclosed: 11 Deliveries: 168 aircraft Addressable Market

800 Total Market Forecast: 300 aircraft / US$ 3.

28 Super Tucano Firm orders: 190 aircraft Brazil: 99 Colombia: 25 Dominican Republic: 8 Chile: 12 Ecuador: 18 Indonesia: 16 Greystone (TACAir): 1 Undisclosed: 11 Deliveries: 168 aircraft Addressable Market Forecast 2020 (US$ million) Medium-term 2,000 Long-term 700 Short-term 800 Total Market Forecast: 300 aircraft / US$ 3.5 billion 28 Partnership with Boeing to provide weapons integration, increasing capabilities of the aircraft.

First flight in 2014 Six countries Letters of intent totalizing 60 aircraft Agreement with Boeing to share

29 EMBRAER KC-390 Brazil (28) Colombia (12) Argentina (6) Chile (6) Portugal (6) Czech Rep. (2) Total Market Forecast 2025: 700 aircraft / US$ 50+ bi A new tactical military transport and tanker aircraft First flight in 2014 Six countries Letters of intent totalizing 60 aircraft Agreement with Boeing to share technical knowledge and evaluate markets for joint sales efforts. The Brazilian Air Force (FAB) and Embraer concluded the Preliminary Design Review. 29

received by Embraer for the modernization Total Market Forecast*: 234 aircraft / US$ 1.

30 Modernization Programs F-5M A1-M A-4 Addressable Market Forecast 2025 (US$ million) Medium-term 505 Long-term 567 Short-term 527 Brazilian Navy A-4 12 aircraft 2 prototypes at GPX-CS Brazilian Air Force A-1M 43 aircraft 14 received by Embraer for the modernization Total Market Forecast*: 234 aircraft / US$ 1.6 billion Brazilian Air Force F-5M 46 a/c + 11 a/c (2nd batch) 45 already delivered 30 * Considering the market for F-5 and Tucano modernization

New Portfolio Command and Control Systems Onboard Systems Simulation Systems

Control Systems HARPIA JV with Elbit/AEL Sistemas where Embraer Defense and

avionics systems Air, ground and sea surveillance radars Remote sensing

Manufacturing and Assembling Security of Critical Infrastructure Public

31 New Portfolio Command and Control Systems Onboard Systems Simulation Systems Electronic Warfare Systems Intelligence Systems Air Traffic Management and Control Systems HARPIA 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 Security of Critical Infrastructure Public Security (sporting events, cities, states) Airport Management Systems SISFRON SisGAAZ VISIONA Satellite 31

Brazilian Army Priorities SISFRON Integrated Borders

estimate: US$ 4 Billion Comprising radars, communication

vehicles Sensors Comm 9% UAV 12% 59% Satellite Estimate: US$

32 Brazilian Army Priorities SISFRON Integrated Borders Monitoring System First phase: US$ 400 Million Total estimate: US$ 4 Billion Comprising radars, communication networks, C4I, unmanned air vehicles (UAV) and armored vehicles Sensors Comm 9% UAV 12% 59% Satellite Estimate: US$ 400 Million SW 20% Participation in the first Brazilian Geostationary Satellite 32

Revenues Breakdown Evolution 2020 Services 11% Transport 4% Services 10% 2011 KC-390 19% Sisfron, Satellite 10% New Business 14% KC-390 34% Modernization 25% ISR 10% Radar, C4I, UAV, MRO 18% Light

33 Revenues Breakdown Evolution 2020 Services 11% Transport 4% Services 10% 2011 KC % Sisfron, Satellite 10% New Business 14% KC % Modernization 25% ISR 10% Radar, C4I, UAV, MRO 18% Light Attack and Combat 9% Light Attack 9% New Business Airport Management Systems Radar, C4I, UAV, MRO 27% SisGAAz ( Blue Amazon Integrated Management System) Security of Critical Infrastructure Public Security (sporting events, cities, states) 33

34 2012 Outlook 34

Outlook in 1Q12 Current Outlook (Revised in 2Q12) EBIT US$ 460 530 Million US$

35 2012 Outlook Net Revenues US$ billion Commercial aviation Executive aviation Defense and security Others Outlook in 1Q12 Current Outlook (Revised in 2Q12) EBIT US$ Million US$ Million EBIT margin 8.0% 8.5% 9.0% 9.5% EBITDA US$ Million US$ Million EBITDA margin 11.5% 12.5% 12.5% 13.5% 35

36 2012 Outlook Research Development CAPEX US$ 100 million US$ 350 million US$ 200 million TOTAL US$ 650 million US$ Million CAPEX R&D Investment/Revenue 36

38 Net Revenues / SG&A Expenses Net Revenues - US$ Million SG&A Expenses - US$ Million 21.2% 22.5% 23.2% 23.6% 25.3% ,364 2,025 1,156 1,717 1, Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 US$ Net Revenues Gross Margin US$ G&A Expenses Selling Expenses , % , %

39 Income from Operations / EBITDA Income from Operations - US$ Million EBITDA - US$ Million 9.1% 7.4% 11.5% 10.2% 7.2% 13.8% 12.8% 15.4% 14.9% 11.8% % % (6) 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 US$ EBIT EBIT Margin US$ EBITDA EBITDA Margin % % % % 39 Without Chautauqua non-recurring event

Net Income / Free Cash Flow Net Income - US$ Million Free Cash Flow - US$ Million 9.1% 0.1% 2-4.5% -92 105 3.2% 4.

40 Net Income / Free Cash Flow Net Income - US$ Million Free Cash Flow - US$ Million 9.1% 0.1% 2-4.5% % 4.6% (73) (77) (60) (60) (112) 277 (70) (40) (65) (174) (30) (76) (50) (55) (58) (138) 3Q11 4Q11 1Q12 * 2Q12* 3Q12 US$ Net Income % % Net Margin 3Q11 4Q11 1Q12 2Q12 3Q12 Free cash flow Net cash generated (used) by operating activities* Additions to PP&E Additions to Intangible US$ * Reflects re-calculation of Company s income tax base * Net of Financial assets adjustment

41 Indebtedness Profile / Net Cash Indebtedness Maturity Net Cash - US$ Million 26% % % 22% 17% % 85% 74% 78% 83% Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Long-term Short-term Loans Average Maturity (Years) US$ 2.08 Billion Total Debt 3Q12 Total Cash 3Q12 US$ 2.21 Billion 41

42 Investments US$ Million RESEARCH DEVELOPMENT CAPEX YTD Outlook 42

43 Investors Return EPADS and Pay Out Dividend Yield (%) 115% 53% % % % % % * 2010* 2011* EPADS Pay Out : US GAAP * : IFRS

44 Ownership Structure 724,040,044 Voting Shares June,

45 45

46 Sustainability Initiatives ISO and OHSAS Certifications Brazilian Alliance for Bio-fuel 1st ethanol powered aircraft in the World Social Activities Reforestation Projects Recycling Ipanema Corporate Values Greener Technology 46

Lean Results E-Jets Final Assembly Line Transformation Dock layout - 2008

(15ac/month) July/2009 (10ac/month) Sep/2009 (10ac/month) June/2010

4 4 4 Cycle time (days) 18 12 10 8 8 7 Work in process (US$mi) 212 106 95 89

47 Lean Results E-Jets Final Assembly Line Transformation Dock layout Assembly Line 2009 Assembly Line 2011 Performance indicators May/2008 (15ac/month) July/2009 (10ac/month) Sep/2009 (10ac/month) June/2010 (8ac/month) Mar/11 (10ac/month) Out/11 (12ac/month) Number of positions Cycle time (days) Work in process (US$mi) Number of non-conformity per a/c , Over time (% of work hours) 10 1,5 1,5 0,

48 P3E Results Kaizen - E-Jets Cycle Reduction Cost of Non Quality Reduction Lead Time (E-Jets) Cost of Non Quality 40% 44% % reduction on the production cycle 44% reduction on CNQ 48

49 Boa Idéia Program Evolution 28,3 Cost: US$ 18.9 mi Benefit: US$ mi 22,7 22,7 24,0 9,1 10,7 7,2 8,4 10,6 12,7 14,5 0,4 3,5 0,9 1,2 0,5 0,8 1,6 1,3 1,6 2,5 3,1 2,2 2,

50 50

51 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. 51

FOURTH QUARTER & FY 2012 EARNINGS RESULTS March 13, 2013

FOURTH QUARTER & FY 2012 EARNINGS RESULTS March 13, 2013 Forward-Looking Statements This presentation may contain forward-looking statements, projections and estimates regarding circumstances or events