1. 4Q04 and FY 2004
Earnings Results
EMBRAER
Maurício Botelho
President & CEO
March 18th, 2005
1
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.
2
4. Highlights 2004
Record Net Revenues and Net Income
Net Revenues Net Income
US$ Million US$ Million
US$ Million
US$ Million 380.2
3,440.5
2,525.8 222.6
2,143.5
136.0
2002 2003 2004
2002 2003 2004
Backlog US$ Billion
Net Cash US$ Million
Net Cash US$ Million
222
17.5 17.5
13.2
104
9.0 10.6 10.1
22
2002 2003 2004
2002 2003 2004 Firm Options
4
5. Airline Industry Highlights
Recovery of the airline sector has been slower than anticipated.
Low Cost and regional airlines are presenting business models that
are competitive in the current market environment.
Several airlines acquired 50-to-110 seat jets to optimize their fleets
as smaller jets are being used to reduce excess capacity, to serve
thinner routes, and to increase frequency.
5
6. Commercial Aviation Highlights
Finnair places an order for 12
EMBRAER 170s and eight options
convertible into EMBRAER 175s or
EMBRAER 190s
Republic Airways orders 23 EMBRAER 170s and 26 options to be
operated in the United Express system
Air Canada orders 45 EMBRAER 190s, 15 EMBRAER 175s and places
an option for 60 additional aircraft
Hong Kong Express places an order for four EMBRAER 170s through
GECAS
6
7. Commercial Aviation Highlights
Copa Airlines confirms a firm order for 10 EMBRAER 190s plus an
option for 20 aircraft of the same model
US Airways files for Chapter 11 and Embraer reduces its delivery
guidance to 145 aircraft
Luxair places a firm order for two ERJ 135s and an option for the
same model
Harbin Embraer Aircraft Industry delivers five ERJ 145s to China
Southern, the largest airline in China
7
8. Highlights – Corporate Aviation
Legacy Executive Improvements:
• Increase of operating ceiling to 41,000 feet
• Authorization to operate at London City Airport(LCY)
• Expansion of its landing and takeoff envelope at airports located at up to
8,500 feet above sea level
• New interior configuration
• Revised maintenance plan resulting in a 5% cost reduction
• Addition of wireless fidelity technology (Wi-Fi) offering high-speed data
connectivity around the globe
8
9. Highlights – Defense Market
Embraer, as part of the Lockheed
Martin team, wins the Aerial
Common Sensor project awarded
by the US Army, which will be
based on the platform of the ERJ
145. Potential value of the 20-year
program is US$ 7 billion.
9
10. Highlights – Defense Market
Groundbreaking of Embraer’s new
assembly facility in Jacsksonville,
FL. The facility will be dedicated to
US Homeland and Defense
projects, including ACS.
Initial of the the first EMB 145 AEW&C aircraft to the Greek Air Force,
with NATO conditions.
Two EMB 145 MP and one EMB 145 AEW&C were delivered to the
Mexican Air Force, including the flight control system.
TAME Línea Aérea from Ecuador, signs an MoU for two EMBRAER
170s, one EMBRAER 190 and four options.
10
11. Highlights – Customer Services
Embraer acquires 65% of OGMA, one of the largest MRO
facilities in Europe
Expansion of Embraer Aircraft Maintenance Services in
Nashville, TN
Hawker Pacific to provide logistic support to the EMB 120 and
EMB 110 fleet in Australia and the Pacific region
11
12. Highlights - Industrial
The EMBRAER 170 receives CTA,
FAA and EASA certification. First
deliveries are made to LOT, US
Airways and Alitalia.
First flight of the EMBRAER 190 and
EMBRAER 195.
The EMBRAER 175 is certified by the
CTA and is scheduled to receive
certification from the Canadian and
European Authorities in the first half of
2005.
12
16. Net Revenue by Segment and Market
Revenue by Segment Revenue by Market
Corporate Brazil
Customer Aviation;
Others 8.3%
Services and 7.1% 4.2%
Others; 7.3%
Europe
11.2%
Defense;
10.6%
North America
Commercial 76.3%
Aviation;
75.0%
16
24. Indebtedness
Total Debt of US$ 1,338.7 Million
Brazilian
Currency 25%
Long Term Short Term
62% 38%
Foreign
Currency 75%
• Average cost in R$ = 12.4 %p/a Long-Term Loan Average Maturity:
• Average cost in US$ = 5.4% p/a 3 years and 4 months
24
25. Indebtedness Maturity
US$ million
513
1,339 200
298
167
160
Total Short Term 2006 2007 2008 Beyond
2009
25
26. Net Cash (Debt) Position
US$ Million
304
222 220
178
22
4Q03 1Q04 2Q04 3Q04 4Q04
26
