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.
3. Highlights
• The Board of Directors elected Frederico Fleury Curado
as President and CEO to succeed Maurício Botelho,
who remains Chairman of the Board.
• Maintenance of Investment Grade given by rating
agencies Moody’s (Baa3) and Standard & Poors (BBB-).
• The Company undertook positive measures to adjust its
industrial processes to meet the deliveries scheduled for
the year, such as the recruitment of 4.500 new
employees, the implementation of a third shift for some
production areas and the introduction of the lean
manufacturing system.
• Embraer created a new business unit - Aviation Services and also a new Division dedicated
to Environmental Strategies and Technologies.
4. Firm Order Backlog
Increased 27% in 2007
Historical Record
Firm Order Backlog - US$ 18.8 Billion
US$ Billion
44.8
33.0
26.0
24.0
18.2
13.6
18.8
14.8
10.4
2005 2006 2007
Firms Options
5. Deliveries
Aircraft Deliveries
Unidades
• Delivery of 169 jets meeting the guidance
(165 to 170).
• Growth of 30% compared to 2006. 169
141 130
• Record of yearly aircraft deliveries in
Company’s history.
2005 2006 2007
6. Net Revenues and Net Cash
Net Revenues Net Cash
US$ Million US$ Million
5,245
3,789 740
3,760
416
360
2005 2006 2007 2005 2006 2007
7. EBIT Margin and Net Income
EBIT Margin Net Income
US$ Million
9.1% 8% / 9%
489
8.7% 446
390
2006 2007 2008 2005 2006 2007
8. Commercial Aviation – E-Jets
750 aircraft sold to 45 clients in 30 countries
E-Jets’ new clients, in 2007 Clients’ operations initiated, in 2007
• Suzuyo • US Airways
• Japan Airlines • Mandarin
• Air France / KLM • Sirte Oil
• Lufthansa • Sky Air World
• M1 Travel • Virgin Blue
• NAS Air • EgyptAir
• TACA • Kenya Airways
• Virgin Nigeria
• Alpi Eagles
• Montenegro Airlines
• Aeroméxico
9. Commercial Aviation
• Delivery of the 1000th jet of the ERJ family
at Harbin Embraer Aircraft Industry Co Ltd,
in Harbin, China to Grand China Express
(HNA Group)
• E-Jets family accumulated 764 firm orders,
786 options and 334 aircraft delivered to 45
clients in 30 countries.
• E-Jets’ world fleet reached 1 million flying
hours with increasing dispatch reliability,
approaching 99,0%.
• ERJ 145 e EMBRAER 170/190 families
represent 46% of market share on the 30 to
120-seat jets segment.
10. Business Aviation
• Legacy 600 fleet of 130 aircraft flying in 23
countries with a 15% market share on the super
midsize jet segment.
• Firm order backlog for Phenom 100 and Phenom
300 has surpassed than 700 units.
• First Phenom 100 flew for the first time in July.
Second prototype flew in September and third in
December.
11. Business Aviation
• Two new executive jets concepts were
presented for the Midsize (MSJ) and
Midlight (MLJ) segments.
• The Lineage 1000, Embraer’s ultra-large
jet, departed to the USA for interior
completion at Pats. First delivery scheduled
for the end of 2008.
12. Defense & Government
• Delivery to Brazilian Air Force of 10
modernized F-5 BR jets and 18 Super
Tucano’s.
• Delivery of 10 Super Tucano’s to Colombian Air
Force.
• First activities of system and technological
modernization of Brazilian Air Force’s AMX
fleet.
• A new military transport aircraft (C-390) under
technical, market and economical-financial
evaluation.
13. Aviation Services
• Three new Embraer Service under construction
in the US and another one in France.
• Investments in spare parts inventory and
expansion of warehouses in Singapore and
Beijing.
• Embraer and CAE established Embraer CAE
Training Services, LLC (ECTS) - for flight and
ground crew training of Phenom 100 and 300
jets.
14. Number of Employees
23,734 23,866
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 2007 Feb/08
Dec / 94 Embraer was April / 97 was the lowest level of employment – 3,200 people
privatized
BRAZIL 21,063* FRANCE 214 SINGAPORE 34
USA 625 CHINA 276 PORTUGAL 1,654
* ELEB employees included
15. Qualified People
Educational Level
Graduate
25%
High School
Postgraduate 69%
4%
Ph.D.
2%
Total Engineers - 4.148
16. Qualified People
US$ Million
45,4
29,6
25,4
20,4
2004 2005 2006 2007
US$ 120 million invested on training and qualification in the past four years
17. Employee Benefits
Salaries.................................R$ 1,255 million
Variable Remuneration........R$ 131 million*
Benefits.................................R$ 207 million
Benefits
Life Insurance
2%
Others
5%
Retirement
15%
Health Insurance
Transportation 46%
16%
Meals
16%
*data base reference 2007
20. Net Revenue by Segment
2006 2007
Others Others
3.1%
Aviation Aviation 3.0%
Services Services
12.8% 10.0%
Executive
Executive Aviation
Aviation Commercial Commercial
16.0%
15.5% Aviation Aviation
62.6% Defense and 64.4%
Defense and Government
Government
6.6%
6.0%
21. Net Revenue by Market
2006 2007
Others Others
17% 14%
The The
Europe Americas Europe
Americas
22% 57% 24%
58%
Brazil Brazil
4% 4%
22. Net Revenue
23.4%
22.7%
US$ Million 21.8% 21.8%
1,875
1,428
1,110
832
30.3%
27.7% 25.3% 1Q07 2Q07 3Q07 4Q07
22.5%
Net Revenue Gross Margin
5,245
3,352 3,789 3,760
2004 2005 2006 2007
Net Revenue Gross Margin
23. Income from Operations
16.1%
US$ Million
9.5%
230.2
16.2% 178.8
2.8%
13.5% 1.9%
15.5 31.2
1Q07 2Q07 3Q07 4Q07
Income from Operations Margin
9.1% 8.7%
544 510
456
343
2004 2005 2006 2007
Income from Operations Margin
24. Net Income
13.6%
US$ Million 10.7%
6.1%
194.9 200.9
3.1%
11.8%
11.3%
67.3
10.4% 26.2
1Q07 2Q07 3Q07 4Q07
9.3%
Net Income Net Margin
446 489
380 390
2004 2005 2006 2007
Net Income Net Margin
27. Indebtedness
Total Debt: US$ 1,753 Million
Long Short
Brazilian Foreign
Term Term
Currency Currency
47% 53%
45% 55%
• Average Cost in R$ = 8,03% p/y
Loans Average Maturity: 3 years and 5 months
• Average Cost in US$ = Libor + 1,64% p/y
