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Conference Call 3Q12

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Conference Call 3Q12

  1. 1. THIRD QUARTER 2012 RESULTS IN IFRS October 24, 2012
  2. 2. Forward-Looking StatementThis presentation may contain forward-looking statements, projections and estimates regarding circumstances orevents yet to take place, including, but not limited to, those statements relating to guidance. These forward-lookingstatements are based largely on current expectations, forecasts on future events and industry and financial trendsthat affect Embraer’s businesses. These statements are subject to risks, uncertainties and assumptions thatinclude, among others: general economic, political and trade conditions, both in Brazil and in those markets whereEmbraer does business; management’s expectations and estimates concerning the company’s future financialperformance; plans and objectives of our management; financing plans and programs, and the effects ofcompetition; industry trends and growth opportunities; inflation and fluctuations in exchange rates; the company’sinvestment plans; Embraer’s operating efficiencies and synergies and its capacity to develop and deliver productson the dates previously agreed upon; results of operation; business strategies; benefits of new technologies andexisting and future governmental regulations. To obtain further information on factors that may lead to resultsdifferent from those forecast by Embraer, please consult the reports Embraer files with the U.S. Securities andExchange Commission (SEC) and the Brazilian Comissão de Valores Mobiliários (CVM) and in particular thefactors discussed under “Forward-Looking Statements” and “Risk Factors” in Embraer’s annual report on Form20−F. The words “believe”, “may”, “will”, “estimate”, “intend”, “continue”, “anticipate”, “expect” and other similarterms are intended to identify forward-looking statements. Embraer does not undertake any obligation to publishupdates or to revise any forward-looking statements due to new information, future events or any other factors. Inview of the inherent risks and uncertainties, such estimates, events and circumstances may not occur. The actualresults and performance of Embraer could therefore differ substantially from those anticipated in Embraers 2forward-looking statements. This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  3. 3. Corporate Highlights • Embraer listed for the third consecutive year on the Dow Jones Sustainability Index. • Embraer opens two new Centers of Excellence in Évora, Portugal. • Embraer is elected by Aon Hewitt/Valor as the 3 best Brazilian company in people management.This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  4. 4. Highlights • Delivery of 27 E-Jets in 3Q12. • Embraer welcomes three new E-Jets operators: • Conviasa signs a deal for up to 20 E190 jets and takes delivery of its first E190. • Delivery of the 900th E-Jet to Kenya Airways. • LOI signed to support Chautauqua’s restructuring 4 of outstanding financing arrangements.This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  5. 5. Highlights • Delivery of 13 executive jets in 3Q12 (11 light jets and 2 large jets). • Embraer Executive Jets wins acclaim for product support from Aviation International News (AIN) and Professional Pilot magazines. • Embraer breaks ground for new Executive Jet Service Center in Brazil. • Embraer Executive Jets launches 5 Legacy 450 fabrication.This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  6. 6. Highlights• Defense and Security 3Q12 revenues increased 37% compared to 3Q11. • Brazilian Air Force and Embraer Defense and Security conclude the KC-390´s preliminary design review. • Brazilian Army chooses Savis and Orbisat consortium for Sisfron. • Delivery of the first four A-29 Super Tucano to Indonesian Air Force and the first to Mauritania. • Delivery of the first AEW&C aircraft to India. 6 • Embraer Defense and Security to supply logistics support to Brazilian Air Force aircraft.This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  7. 7. Revenues by Segment – 2012 Outlook Embraer: US$ 5.8 – 6.2 Billion Commercial Aviation: US$ 3.70 – 3.85 Billion 2,025 1,176 1,078 996 956 1,717 1,405 760 1,364 1,156 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Executive Aviation: US$ 1.10 – 1.30 Billion Defense and Security: US$ 900 – 950 Million 603 293 266 259 232 189 261 149 152 167 7 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  8. 8. Revenues by Segment Net Revenues US$ Billion 5.50 5.36 5.80 4.28 5.80 – 6.20 2% 1% 2% 1% 2% 12% 15% 15% 18% 15% 17% 14% 23% 19% 20% 69% 64% 67% 63% 61% 2009 2010 2011 YTD2012 EST2012 Defense and Security Others 8 Commercial Aviation Executive AviationThis information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  9. 9. Firm Backlog US$ Billion 16.0 15.4 14.7 12.9 12.4 3Q11 4Q11 1Q12 2Q12 3Q12 9This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  10. 10. Net Revenues and Gross MarginUS$ Million R$ Million 25.3% 25.3% 23.2% 23.6% 22.5% 23.2% 23.6% 22.5% 21.2% 21.2% 2,025 3,667 3,385 1,717 2,850 1,364 1,405 2,266 1,156 2,049 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Net Revenues Gross Margin 10 YTD 2012: US$ 4.3 billion Net Revenues 2012 Outlook: US$ 5.8 – 6.2 billion This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  11. 11. SG&A ExpensesUS$ Million R$ Million 382 194 345 186 180 334 172 170 318 280 148 75 120 72 71 129 69 59 126 113 119 234 225 103 114 109 111 205 192 167 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 G&A Expenses Selling Expenses 11 This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  12. 12. Income from OperationsUS$ Million R$ Million 10.2% 10.2% 11.5% 11.5% 9.1% 9.4% 7.5% 7.2% 7.4% 7.2% 42 85 -0.3% 197 -0.4% 390 124 212 101 205 86 153 (6) (15) 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 EBIT EBIT Margin Without Chautauqua non-recurring event 12 YTD 2012: US$ 384 million / 9.0% EBIT Margin 2012 Outlook: US$ 520 – 590 million / 9.0% – 9.5% This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  13. 13. EBITDAUS$ Million R$ Million 13.8% 14.9% 14.9% 13.7% 15.5% 15.4% 12.8% 11.8% 12.9% 11.8% 42 85 265 524 2.9% 2.8% 188 337 148 166 311 264 59 101 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 EBITDA EBITDA Margin Without Chautauqua non-recurring event 13 YTD 2012: US$ 579 million / 13.5% EBITDA Margin 2012 Outlook: US$ 720 – 840 million / 12.5% – 13.5% This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  14. 14. Net IncomeUS$ Million R$ Million 9.1% 9.2% 4.6% 4.6% 3.2% 3.7% 105 188 0.1% 55 65 0.0% 124 133 2 0 -4.5% -4.7% -92 -172 3Q11 4Q11 1Q12 * 2Q12 * 3Q12 3Q11 4Q11 1Q12 * 2Q12 * 3Q12 Net Income Net Margin 14* Reflects re-calculation of Company’s income tax base This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  15. 15. Inventories / Free Cash Flow Inventories Free Cash FlowUS$ Million US$ Million 277 414 2,872 155 2,652 2,585 25 2,530 20 2,288 (73) (30) (77) (70) (76) (50) (60) (60) (40) (55) (58) (65) (112) (138) (174) 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Free cash flow Net cash generated (used) by operating activities* Additions to PP&E 15 Additions to Intangible * Net of Financial assets adjustment This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  16. 16. Investments US$ Million 350 200 176 132 100 52 RESEARCH DEVELOPMENT CAPEX 16 YTD 2012 2012 OutlookThis information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  17. 17. Indebtedness Profile / Net Cash Indebtedness Maturity Net Cash US$ Million 15% 17% 26% 26% 22% 6.1 6.0 4.8 4.5 4.2 446 85% 83% 74% 74% 78% 302 290 193 123 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Long-term Short-term Loans Average Maturity (Years) 17 Total Debt 3Q12 US$ 2.08 Billion Total Cash 3Q12 US$ 2.21 BillionThis information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations
  18. 18. Investor Relations Phone: +55 12 3927 4404 investor.relations@embraer.com.br www.embraer.com 18This information is the property of Embraer and cannot be used or reproduced without written consent. Investor Relations

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