1. 2007 Air Show
Presentation
Corporate
Overview
Frederico Fleury Curado
President and CEO
June 20, 2007
2. 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.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
3. Order Book
• Backlog reached record high of
US$15.0 billion by the end of 1Q07
Firm Order Backlog (US$ Billion)
• 11 firm orders for E-Jets
announced – M1 Travel Ltd and Alpi 13.3
14.8 15.0
Eagles joined the customer base. 10.4 10.2
Option confirmation from Virgin
Blue
• Firm orders for the Phenom 100 1Q06 2Q06 3Q06 4Q06 1Q07
and Phenom 300 totals more than
400 units
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
4. Jet Deliveries
36 37
30
27
25
1Q06 2Q06 3Q06 4Q06 1Q07
Difficulties with the supply chain resulted in 25 jet deliveries in 1Q07
compared to 27 aircraft in 1Q06 and 37 aircraft in 4Q06.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
5. Actions taken towards increasing the production
Labor:
• 2,000 employees hired since
January 2007;
• By June 2007 – a total of 3,500
new employees dedicated to the
production;
• Third shift to be fully implemented
by the 3Q07.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
6. Actions taken towards increasing the production
Industrial capabilities:
• Assembly jigs added to the
wing assembly and
fuselage sections;
• Intensified approach with
sub-contracted suppliers;
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
7. Investments – Machines/Equipment
CNC Skin High Pressure
Cutting Rubber Press
5 Axis High Speed 5 Axis Automatic
Machining Riveting
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
8. Increasing the Number of Employees
Number of Employees 21,944
19,265
16,953
14,658
12,227 12,941
11,048
10,334
8,302
6,087 6,737
4,319 3,849 4,494
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Apr07
April / 97 was the lowest level of employment – 3,200 people
BRAZIL 19,319* FRANCE 195 SINGAPORE 23
USA 566 CHINA 228 PORTUGAL 1,613
* ELEB employees included
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
9. Expected Results
195/205
160 161 165/170
148 141
131 130
101
2000 2001 2002 2003 2004 2005 2006 2007E 2008E*
* Includes 15/20 Phenom 100
• Actions taken are delivering the expected results reaffirming our
guidance for 2007 to deliver between 165 and 170 aircraft.
• Gross margin expected to reach 30% in 4Q07.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
10. Thank you!
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
