FY2007
Earnings Results
Forward Looking Statement

 This presentation includes forward-looking statements or statements about events or circumstan...
Highlights


• The Board of Directors elected Frederico Fleury Curado
  as President and CEO to succeed Maurício Botelho,
...
Firm Order Backlog

                               Increased 27% in 2007
                                 Historical Recor...
Deliveries


                                                         Aircraft Deliveries

                               ...
Net Revenues and Net Cash


                 Net Revenues                          Net Cash


US$ Million                 ...
EBIT Margin and Net Income


          EBIT Margin                             Net Income

                               ...
Commercial Aviation – E-Jets

            750 aircraft sold to 45 clients in 30 countries

E-Jets’ new clients, in 2007   ...
Commercial Aviation


• Delivery of the 1000th jet of the ERJ family
  at Harbin Embraer Aircraft Industry Co Ltd,
  in Ha...
Business Aviation



                    • Legacy 600 fleet of 130 aircraft flying in 23
                      countries w...
Business Aviation



   • Two new executive jets concepts were
     presented for the Midsize (MSJ) and
     Midlight (MLJ...
Defense & Government


• Delivery to Brazilian Air Force of 10
  modernized F-5 BR jets and 18 Super
  Tucano’s.


• Deliv...
Aviation Services




• Three new Embraer Service under construction
  in the US and another one in France.


• Investment...
Number of Employees

                                                                                                     ...
Qualified People

                        Educational Level




                        Graduate
                         ...
Qualified People

US$ Million




                                                             45,4


                    ...
Employee Benefits

           Salaries.................................R$ 1,255 million
           Variable Remuneration.....
Results &
Performance
Jet Deliveries




                               169
         148     141    130




         2004    2005   2006   2007
Net Revenue by Segment


                     2006                                        2007


                     Othe...
Net Revenue by Market


                     2006                            2007




            Others                  ...
Net Revenue

                                                                                            23.4%
           ...
Income from Operations

                                                                                          16.1%
US...
Net Income

                                                                            13.6%
US$ Million                 ...
Accounts Receivable
Costumer and Commercial Financing

US$ Million




                              328
              333...
Inventories

US$ Million




                                      2,491
                              2,047
             ...
Indebtedness

                                   Total Debt: US$ 1,753 Million




                                       ...
Net Cash (Debt)

US$ Million




                                   740


                            416
                ...
Backlog and
 Deliveries
Order Backlog

US$ Billion




                                          44.8


                                  33.0
   ...
Aircraft Deliveries Forecast



    E* - Estimated                                                     120/150 E*




    ...
Investments
    and
Productivity
Investments

US$ Million




                                                                      239
                   ...
Investments Forecast

US$ Million


              R&D
                                       2007   2008   2009
          ...
Revenue per Employee

US$ Thousand




               243
                      233           231


                      ...
Corporate
Governance
Capital Structure

            Common (Voting) Shares: 740,465,044

                                                      ...
Market Value

US$ Billion




                                   8.4
                            7.7             7.4
     ...
Dividends

US$ Million

                      63.0%

              53.7%
                                                 ...
Embraer’s Shares Evolution
                                                                                               ...
Investor Relations
  Phone: +55 12 3927 4404
investor.relations@embraer.com.br
     www.embraer.com
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2008* Embraer Day Ny Resultados Em Us Gaap 4 T07

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2008* Embraer Day Ny Resultados Em Us Gaap 4 T07

  1. 1. FY2007 Earnings Results
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 15. Qualified People Educational Level Graduate 25% High School Postgraduate 69% 4% Ph.D. 2% Total Engineers - 4.148
  16. 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. 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
  18. 18. Results & Performance
  19. 19. Jet Deliveries 169 148 141 130 2004 2005 2006 2007
  20. 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. 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. 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. 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. 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
  25. 25. Accounts Receivable Costumer and Commercial Financing US$ Million 328 333 362 280 380 408 207 35 455 394 280 300 2004 2005 2006 2007 Accounts Receivable CCF A/c Leasing/Remarketing
  26. 26. Inventories US$ Million 2,491 2,047 1,428 1,478 2004 2005 2006 2007
  27. 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
  28. 28. Net Cash (Debt) US$ Million 740 416 360 22 2004 2005 2006 2007
  29. 29. Backlog and Deliveries
  30. 30. Order Backlog US$ Billion 44.8 33.0 27.6 26.0 24.0 18.2 17.5 13.6 18.8 14.8 10.1 10.4 2004 2005 2006 2007 Firms Options
  31. 31. Aircraft Deliveries Forecast E* - Estimated 120/150 E* 10/15 E* 169 195/200 E* 131 148 141 130 101 2002 2003 2004 2005 2006 2007 2008 2009 ERJ, E-Jet, Legacy 600 and Lineage 1000 Phenom 100 / 300
  32. 32. Investments and Productivity
  33. 33. Investments US$ Million 239 213 113 93 88 73 51 45 2004 2005 2006 2007 PP&E R&D
  34. 34. Investments Forecast US$ Million R&D 2007 2008 2009 Commercial Aviation 45 48 55 Executive Aviation 129 123 127 Technology Development 59 72 70 TOTAL 233 243 252 Defense and Government 21 54 102 PP&E 2007 2008 2009 TOTAL 221 330 270
  35. 35. Revenue per Employee US$ Thousand 243 233 231 213 2004 2005 2006 2007
  36. 36. Corporate Governance
  37. 37. Capital Structure Common (Voting) Shares: 740,465,044 Thornburg BNDSPAR União Investment UNIÃO 5,0% 0,3% 5,0% 0,3% Grupo Bozano 8,5% NYSE Outros BOVESPA 41,6% 45,1% NYSE 54,6% PREVI 13,9% BOVESPA Janus Capital Outros 8,0% 17,7%
  38. 38. Market Value US$ Billion 8.4 7.7 7.4 7.0 6.0 2004 2005 2006 2007 Mar 2008
  39. 39. Dividends US$ Million 63.0% 53.7% 50.8% 39.0% 249 204 187 151 2004 2005 2006 2007 Dividends Pay-Out Ratio Yield 4.11% 2.73% 1.74% 3.05%
  40. 40. Embraer’s Shares Evolution Embraer’s Shares Evolution 100 150 200 250 300 350 400 50 0 ago/00 fev/01 ago/01 fev/02 ago/02 fev/03 EMBR3 ago/03 fev/04 ago/04 Bovespa fev/05 ago/05 fev/06 ago/06 fev/07 100 150 200 250 ago/07 50 0 ago/00 fev/01 ago/01 fev/02 ago/02 fev/03 ERJ ago/03 fev/04 DOW JONES ago/04 fev/05 ago/05 fev/06 ago/06 fev/07 ago/07
  41. 41. Investor Relations Phone: +55 12 3927 4404 investor.relations@embraer.com.br www.embraer.com

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