1
Company Highlights       Company established in 1969, with business in four segments.                Privatized in 1994 an...
Global Business       Operations in Brazil, USA, Europe and Asia                                              One of Brazi...
Aircraft Deliveries           2010 deliveries estimates           • 90 commercial jets           • 17 executive large jets...
Net Revenue     US$ Million                                                Gu                                             ...
Firm Order BacklogUS$ Billion                            3.8                3.0                       3.2         3.0     ...
Revenue Breakdown                  Revenue by Segment                                   Revenue by RegionNet RevenueUS$ Bi...
Product Portfolio                                         capacity: 37 seats            capacity: 70 to 80 seats     range...
Commercial Aviation Performance                     E-Jets Around the World       Commercial Aviation - Order Book 4Q10   ...
Worldwide Distribution  Commercial Jets Market Share Evolution Worldwide                                                  ...
E-Jets Market AcceptanceE-Jets efficiency in all business models                    (% of E-Jets Fleet+Backlog)Low Cost Ca...
E-Jets Deployment                                   6%                                  29%         21%         8%        ...
E-Jets Helping Reduce Costs and Fuel BurnFuel Burn                                            14
World Replacement Opportunities                                                 (Jets 61-120 seats)     Nearly 1,000 aircr...
Air Transport Demand - IATA                                    World – International RPK Growth Rate (% yoy)  12  10      ...
Airline Financial Results - World                                20                  Net Profit                           ...
Embraer Market Forecast (2010-2029)•   Scope Clauses relaxation allowing 80-seater aircraft as a natural growth of RJ50s i...
E-Jets vs. New Entrants                                                  Competitive Scenario                             ...
Pre-Owned ERJ Transactions                        Republic - USA          Passaredo - BrazilBMI – United KingdomFinnComm -...
Product Portfolio                          Aircraft                   Model        Seats / Range          Competitors     ...
Fleet in OperationPhenom 100                 Legacy 600/650  ~200 a/c                    >190 a/c Phenom 300   ~30 a/c    ...
Market Share                 Revenue share (US$ - based on B&CA list prices)                                              ...
2011-20 Market Forecast World Deliveries   Industry Deliveries (units)                                                    ...
U.S. Corporate Profits                 1.600                 1.400                                                        ...
Stock MarketsGlobal Stock Markets return %                                       RTS (Russia)                             ...
Business Jets Traffic       230                       US/FAA Bizjet Flight Activity       220       210       200       19...
Pre-owned Inventory: Recovering                                                              Business Jets For Sale       ...
Defense and Security PortfolioISR (Intelligence, Surveillance   Advanced Training and                                     ...
Worldwide Presence     Canada                                                                              Sweden         ...
Super Tucano                                 • Prospects:• Firm orders: 180 aircraft                                    • ...
EMBRAER KC-390Length: 33.81 m (110.9 ft)Wingspan: 35.06 m (115.0 ft)Height: 10.26 m (33.7 ft)• New tactical military trans...
KC-390 Master Schedule  2009                2010                        2011                      2012             2013   ...
Financial Results IFRS
Net Revenues / SG&A Expenses        Net Revenues - US$ Million                    SG&A Expenses - US$ Million             ...
Income from Operations / EBITDAIncome from Operations - US$ Million              EBITDA - US$ Million        7.2%      9.0...
Net Income / Free Cash Flow         Net Income - US$ Million                       Free Cash Flow - US$ Million           ...
Indebtedness Profile / Net CashTotal Debt 4Q10: US$ 1.43 Billion              Total Cash 4Q10: US$ 2.13 Billion           ...
2011 Outlook IFRS
2011 Outlook                           2010 Results                                 2011 Outlook Net Revenues            U...
2011 Outlook                 2010 Results             2011 Outlook     EBIT       US$ 392 million   ~7%   US$ 420 million ...
2011 Outlook                                   2010 Results                       2011 Outlook          Research          ...
Corporate Information
2010 Accomplishments               10th anniversaries: NYSE Euronext listing.                  Presence in China, Singapor...
Lean Results: E-Jets Final AssemblyLine Transformation“Dock” layout - 2008                                     Assembly Li...
Automation Journey                     48
Automation Initiatives 2010        Automation initiatives continues in 2011…                                              ...
Looking to the Future - Lean Design          Process and product development                                              ...
Sustainability Initiatives            Social, Environmental and Economic Dimensions                                       ...
People Development             Graduate               31%              High                               School          ...
Corporate Governance                                 10                            v /20                       No         ...
Ownership Structure                                723,665,044 Voting Shares                 THORNBURG                INVE...
EPADS and Pay Out      53%    68%        52%                                   26%     34%             2.64               ...
Dividend YieldPercentage (%)                          4.34                                 3.28                   2.91    ...
57
Forward Looking StatementThis presentation includes forward-looking statements or statements about events orcircumstances ...
Embraer april 2011 book2
Embraer april 2011 book2
Embraer april 2011 book2
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Embraer april 2011 book2

  1. 1. 1
  2. 2. Company Highlights Company established in 1969, with business in four segments. Privatized in 1994 and listed in USA in 2000. Strong Balance sheet with solid Net cash position. Global footprint. Broad customer base in commercial and executive aviation, defense and security segments. Investment Grade rating by Moody’s and S&P. Highly experienced management team. 2
  3. 3. Global Business Operations in Brazil, USA, Europe and Asia One of Brazil’s largest exporters of manufactured goods Dual listed in Brazil’s Bovespa (1989) and NYSE (2000) Diversified customer-base across five continents France Villepinte Le Bourget USA Fort Lauderdale Portugal Nashville Alverca Mesa Évora* China Windsor Locks Louisville Beijing Minneapolis Harbin Melbourne* Singapore Singapore Brazil São José dos Campos Gavião Peixoto Botucatu Taubaté São Paulo* Under construction Countries of Operation Factories Offices Service Centers Spare Parts Distribution Centers Contracted/ Planned Authorized Network 3
  4. 4. Aircraft Deliveries 2010 deliveries estimates • 90 commercial jets • 17 executive large jets* ed ass • 120 executive light jets** S urp 165 133 125 126 103 98 101 27 36 37 2 21 19 2006 2007 2008 2009 2010 Commercial Jets Executive Large Jets* Executive Light Jets** * Legacy e Lineage** Phenom 4
  5. 5. Net Revenue US$ Million Gu i Ac danc hie e ve d 6,335 5,245 5,498 5,364 3,760 2006 2007 2008 2009 * 2010 * Guidance 2010: Net Revenue - US$ 5.25 billion 2006-2008: US GAAP * 2009-2010: IFRS 5
  6. 6. Firm Order BacklogUS$ Billion 3.8 3.0 3.2 3.0 2.8 30% 18.8 20.9 21% 14.8 16.6 15.6 49% Commercial aviation 2006 2007 2008 2009 2010 Executive aviation Defense and security Firm Order Backlog Backlog/Revenue (Years) 6
  7. 7. Revenue Breakdown Revenue by Segment Revenue by RegionNet RevenueUS$ Billion* 6.33 5.49 5.36 6.33 5.49 5.36 2% 2% 2% 9% 11% 11% 7% 6% 4% 8% 9% 13% 18% 21% 22% 14% 16% 4% 21% 10% 11% 13% 7% 18% 15% 67% 33% 62% 53% 33% 43% 22% 13% 2008 2009 2010 2008 2009 2010 Commercial aviation Defense and security North America Europe Latin America Executive aviation Aviation services Brazil Asia Pacific Others Others 2008: US GAAP * 2009-2010: IFRS 7
  8. 8. Product Portfolio capacity: 37 seats capacity: 70 to 80 seats range: 1,750 nm (3,250 Km) range: 2,100 nm (3,900 Km) capacity: 44 seats capacity: 78 to 88 seats range: 1,650 nm (3,050 Km) range: 2,000 nm (3,700 Km) capacity: 98 to 114 seats capacity: 50 seats range: 2,400 nm (4,500 Km) range: 1,550 nm (2,900 Km) capacity: 50 seats capacity: 108 to 122 seats range: 2,000 nm (3,700 Km) range: 2,200 nm (4,100 Km) 9
  9. 9. Commercial Aviation Performance E-Jets Around the World Commercial Aviation - Order Book 4Q10 Firm Firm Options Total Deliveries Backlog Orders ERJ 145 Family 890 - 890 888 2 EMBRAER 170 191 40 231 181 10 EMBRAER 175 173 276 449 133 40 EMBRAER 190 478 353 831 321 157 EMBRAER 195 105 51 156 64 41 TOTAL E-JETS E- 947 720 1.667 699 248 TOTAL 1.837 720 2.557 1.587 250 10
  10. 10. Worldwide Distribution Commercial Jets Market Share Evolution Worldwide Diversified Customers Across 5 Continents 60-120 Seats Jets North Asia Pacific / America China 16% 12%60% Latin America Middle East / Africa 18% 43% 22%40% Europe / CIS 31% 32%20% Firm Orders 7% 6% 6% Asia Pacific / China 3% 3% 14%0% 1% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 North Middle East / America Africa 44% 9% Considering Accumulated Net Orders Europe / CIS 21% Latin America 12% 11
  11. 11. E-Jets Market AcceptanceE-Jets efficiency in all business models (% of E-Jets Fleet+Backlog)Low Cost Carriers Network Airlines • New markets • Right-sizing • Right-sizing • New markets Regional Airlines • Natural Growth • Right-sizing E-Jets supported by leasing companies 12
  12. 12. E-Jets Deployment 6% 29% 21% 8% 32% 25% 5% 14% 8% 7% 6% 33% 5% 57% 5% 49% 40% 8% 62% 20% 12% Europe 7% 11% North C h in a America 20% 33% 31% 39% Middle East 8% 11% 49% 52% 50% Latin Africa Asia P acific AmericaWorld 50% 20% 9% 21% Right-sizing New Markets Replacement Natural of old Jets Growth 13
  13. 13. E-Jets Helping Reduce Costs and Fuel BurnFuel Burn 14
  14. 14. World Replacement Opportunities (Jets 61-120 seats) Nearly 1,000 aircraft with more than 15 years old 15
  15. 15. Air Transport Demand - IATA World – International RPK Growth Rate (% yoy) 12 10 Economic Recession 8 6 4 2 0 -2 -4 -6 Lehman Iceland Brothers Volcano -8 Bankrupcy -10 -12 7.4% 1.6 % -3.5% 8.2% 8% -14 May-07 May-08 May-09 May-10 Jan-07 Mar-07 Jul-07 Jan-08 Mar-08 Jul-08 Jan-09 Mar-09 Jul-09 Jan-10 Mar-10 Jul-10 Jan-11 Sep-07 Nov-07 Sep-08 Nov-08 Sep-09 Nov-09 Sep-10 Nov-10 Air travel rebounded after being depressed by severe winter weather conditions in Europe and North America 16
  16. 16. Airline Financial Results - World 20 Net Profit Net Loss Net Margin 8 Net Profit/Loss (US$ billion) 15 6 Region 2009 2010E 2011FNet Profit/Loss (US$ Billion) 10 4 Africa - 0.1 0.1 0.0 Net Margin (%) 5 2 Asia Pacific - 2.7 7.6 3.7 0 0 Europe - 4.3 1.4 0.5 -5 -2 Latin America 0.5 1.0 0.3 -10 -4 Middle East - 0.6 1.1 0.7 -15 -6 North America - 2.7 4.7 3.2 -20 -8 World - 9.9 16.0 8.6 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011F 2010E High fuel prices squeeze airline profits despite better economic outlook 2011F net profit of US$8.6bi, down from US$9.1bi in last December forecast 17
  17. 17. Embraer Market Forecast (2010-2029)• Scope Clauses relaxation allowing 80-seater aircraft as a natural growth of RJ50s in the US• Right-sizing of narrow-body operations• Regional aviation development in Emerging Markets• Acceleration of replacement of old & inefficient jets Russia / CIS Europe North North 405 155 America America 1,510 580 6% 22% 2,400 840 China Projected Deliveries- Jets 35% 32% Market Segment 2010 – 2019 2029 Middle 340 950 Africa East (Seats) Deliveries 14% 13% 30-60 475 60 220 80 240 105 Latin Asia 61-90 2,515 1,015 Latin 3% 4% Pacific America America 91-120 3,885 1,550 210 575 30-120 6,875 2,625 315 575 8% 12% 8% Around 6,875 jet deliveries (30-120 seats) in the next 20 years (US$ 200 bi) 18
  18. 18. E-Jets vs. New Entrants Competitive Scenario 120 E195 CS100 110 110 Seats 100 E190Seat Capacity (32 pitch) SSJ100/95 ARJ21 100 Seats 90 MRJ90 E175 80 70-90 Seats E170 70 MRJ70 60 1800 2000 2200 2400 2600 2800 3000 3200 Range (nm) 19
  19. 19. Pre-Owned ERJ Transactions Republic - USA Passaredo - BrazilBMI – United KingdomFinnComm - Finland Dniproavia - Ukraine Aeromexico Connect - MexicoSatena - Colombia City Airline - Sweden Diexim Expresso - AngolaAir Namibia - Namibia Air26 - Angola South African Airlink - USA More than 200 ERJ transactions since 2000 20
  20. 20. Product Portfolio Aircraft Model Seats / Range Competitors Entry • Cessna - Mustang Phenom 100 4 / 1,160 nm CJ1+ Certified: 2008 Phenom 300 • Cessna - CJ3 Light 6 / 1,800 nm • Hawker - H400XP Certified: 2009 4 to 8 / 2,200 • Bombardier - Mid-light Legacy 450 Lear 60XR to 2,300 nm Expected Certification: 2013 • Cessna - XLS+ Mid-size Legacy 500 4 to 8 / 2,800 • Cessna - Sovereign to 3,200 nm • Hawker - H900XP Expected Certification: 2012 Super Mid-Size Legacy 600 10 to 14 / 3,250 nm • Bombardier - Certified: 2001 Challenger 300/605 • Dassault – Falcon Large Legacy 650 10 to 14 / 3,900 nm 2000EX/LX Certified: 2010 • Bombardier –Ultra-Long Range Global XRS • Gulfstream – G550 Lineage 1000 13 to 19 / 4,400 Ultra-large • Airbus - A318 Elite to 4,500 nm Certified: 2008 22
  21. 21. Fleet in OperationPhenom 100 Legacy 600/650 ~200 a/c >190 a/c Phenom 300 ~30 a/c Lineage 1000 / 170 Shuttle >10 a/c 23
  22. 22. Market Share Revenue share (US$ - based on B&CA list prices) Deliveries share (units) $13.2Bi $16.6Bi $19.3Bi $22.2Bi $17.2Bi $18.2Bi 749 885 1,040 1,154 870 763 5% 8% 6% 5% 6% 10% 2% 3% 2% 1% 2% 3%% OEM Share – Total Revenues US$ 10% 9% 8% 8% 8% 6% 14% 11% 10% 4.2% 19% 16% 16% 3.5% 3.9% 4.7% 6.5% 7% 3.3% % OEM Share – Total units 2.7% 3.1% 3.5% 14% 19% 23% 23% 24% 13% 13% 14% 23% 21% 21% 12% 6% 11% 13% 7% 7% 7% 9% 11% 11% 12% 12% 18% 12% 22% 16% 16% 18% 33% 35% 37% 40% 17% 12% 33% 7% 23% 30% 29% 28% 29% 28% 27% 25% 24% 22% 21% 20% 20% 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 Market Revenue 2010: $18.2 Bi. Market Deliveries 2010: 763 units. Embraer Revenue: $1.1 Bi. Embraer Deliveries: 145 units. Bombardier Dassault Hawker-Beech Embraer Gulfstream Cessna Others 24
  23. 23. 2011-20 Market Forecast World Deliveries Industry Deliveries (units) Industry Revenues 240 200 160 US$ 210 Bi US$ 169.6 Bi (10,000 jets) 120 (9,029 jets) 80 40 0 2000-10 2011-20 Historic Forecast More than 10,000 jets: US$ 210 billion over the next 10 years 25
  24. 24. U.S. Corporate Profits 1.600 1.400 +10% Current 1.200billions of dollars 1.000 Financial 2007 avg 800 600 Nonfinancial +100% 400 Low 200 0 I II III I I II III I I II III I I II III I I II III I I II III I I II III 2004 2005 2006 2007 2008 2009 2010
  25. 25. Stock MarketsGlobal Stock Markets return % RTS (Russia) SSE Composite (China) IBOVESPA (Brazil) S&P500 (US) FTSE100 (UK) Highlighted area: >10% overall drop
  26. 26. Business Jets Traffic 230 US/FAA Bizjet Flight Activity 220 210 200 190 2006 2004 180 2007 2005 170 2011 2010 160 150 2009 140 2008 130 ov g r p ec l n ar ct b n ay Ju Ap Au Se Ja Fe Ju O M N D M 60 European Bizjet Flight Activity 55 50 45 40 2007 2011 2010 2006 35 2009 2008 30 2005 2004 25 ov g r p ec l ct n b ar n ay Ju Ap Au Se Ja Fe Ju 28 O M N D M
  27. 27. Pre-owned Inventory: Recovering Business Jets For Sale 2008: Net increase of 1100 a/c 2009: Net increase of 33 a/c 2010: Net decrease of 155 a/c 3500 2011: Net decrease of 94 a/c 28% Fleet up to 5 yrs and positions Positions 26% Fleet up to 5 yrs Fleet from 6 to 10 yrs 3000 24% Fleet older than 10 yrs % for sale (per total active fleet) 22% 14.2% 9.3% 2500 up to 10 yrs % for sale 2555 jets 761 jets 20% 18% % of active fleet 2000 16%Units 14% 1500 12% 10% 1000 8% 6% 500 4% 2% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 99 00 01 02 03 04 05 06 07 08 09 10 11 29
  28. 28. Defense and Security PortfolioISR (Intelligence, Surveillance Advanced Training and Transport of Authorities Military Tactical Transport and Reconnaissance) Light Attack Modernization Programs Services Command and Control Systems 31
  29. 29. Worldwide Presence Canada Sweden GermanyUnited States United Kingdom¹ Italy Luxembourg Belgium Greece Kuwait¹ Switzerland France Pakistan Spain Portugal Tunisia Thailand Dominican Rep. Libya Honduras Mauritania Egypt Panama Indonesia Mexico Niger Kenya¹ Venezuela Chad Colombia Togo Nigeria India Equatorial Guinea Ecuador Gabon Peru Brazil Argentina Paraguay Angola Chile Uruguay Embraer Defense and Security is present in more than 40 countries. 32
  30. 30. Super Tucano • Prospects:• Firm orders: 180 aircraft • Latin America • Brazil: 99 • South East Asia • Colombia: 25 • USA • Dominican Republic: 8 • Africa • Chile: 12 • Ecuador: 18 • Indonesia: 8 • XE Aviation: 1 • Undisclosed: 9• Deliveries: 152 aircraft• To be delivered: 28 aircraft •Ref.: March, 2011 33
  31. 31. EMBRAER KC-390Length: 33.81 m (110.9 ft)Wingspan: 35.06 m (115.0 ft)Height: 10.26 m (33.7 ft)• New tactical military transport aircraft • Towards the end of the “Initial Definition Phase”• Payload: 23 ton / Range: 1400 nm • Market Forecast 2025: 700 aircraft / US$ 50+ bi• Brazil, Chile, Colombia, Portugal, Czech Republic and Argentina signed LOI for up to 60 KC-390 aircraft. 34
  32. 32. KC-390 Master Schedule 2009 2010 2011 2012 2013 2014 2015 2016 Preliminary Design Initial Definition Joint Definition Detailed Design and Certification Phase Phase - PD Phase - IDP Phase - JDP DDP Wind Tunnel PDR CDR Testing Loads Calculation Loads Calculation Structures Calc Structures Calc Drawings Drawings Partnership and Supplier Procurement Tooling Tooling 1 2 Prototypes IOC IOC FOC FOC Structural Testing Structural Testing Program running on schedule, in final phase of main partners selection and geared-up for full-scale development. 35
  33. 33. Financial Results IFRS
  34. 34. Net Revenues / SG&A Expenses Net Revenues - US$ Million SG&A Expenses - US$ Million 167 148 143 142 61 121 55 49 53 35 1,9701,630 106 1,358 93 86 94 89 992 1,044 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 Net Revenues Gross Margin G&A Expenses Selling Expenses2009 5,498 19.5% 2009 191 3052010 5,364 19.1% 2010 198 374 37
  35. 35. Income from Operations / EBITDAIncome from Operations - US$ Million EBITDA - US$ Million 7.2% 9.0% 6.4% 6.7% 12.2% 12.5% 10.0% 11.8%2.4% 6.4% 132 122 197 166 71 117 131 66 105 39 4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 EBIT EBIT Margin EBITDA EBITDA Margin2009 379 6.9% 2009 609 10.0%2010 392 7.3% 2010 611 11.4% 38
  36. 36. Net Income / Free Cash Flow Net Income - US$ Million Free Cash Flow - US$ Million 12.1%5.8% 4.2% 6.2% 2.4% 383 126 123 95 220 193 57 24 4Q09 1Q10 2Q10 3Q10 4Q10 (60) (66) 4Q09 1Q10 2Q10 3Q10 4Q10 Net Income Net Margin 2009 465 8.5% 2009 31 2010 330 6.2% 2010 287 39
  37. 37. Indebtedness Profile / Net CashTotal Debt 4Q10: US$ 1.43 Billion Total Cash 4Q10: US$ 2.13 Billion Indebtedness Maturity Net Cash - US$ Million 6% 5% 26% 22%29% 6.1 6.3 5.84.9 5.0 94% 95% 692 652 618 78% 74% 488 44471%4Q09 1Q10 2Q10 3Q10 4Q10 4Q09 1Q10 2Q10 3Q10 4Q10 Long-term Short-term Loans Average Maturity (Years) 40
  38. 38. 2011 Outlook IFRS
  39. 39. 2011 Outlook 2010 Results 2011 Outlook Net Revenues US$ 5.36 billion ~5% US$ 5.60 billion US$ Billion 1.2 0.6 20% 11% 0.05 0.15 0.7 0.10 14% 0.40 3.1 55% Commercial aviation Defense and security Executive aviation Aviation services and others 42
  40. 40. 2011 Outlook 2010 Results 2011 Outlook EBIT US$ 392 million ~7% US$ 420 million EBIT Margin 7.3% ~3% 7.5% EBITDA US$ 611 million US$ 610 millionEBITDA Margin 11% 11% 43
  41. 41. 2011 Outlook 2010 Results 2011 Outlook Research US$ 72 million US$ 90 million Development * US$ 79 million US$ 210 million CAPEX US$ 74 million US$ 200 million 9% Corporate Information US$ Million 9% 7% 5% 5% 4% 200 209 235 CAPEX 104 R&D 74 91 300 260 Investment / Revenue 197 113 144 151 2006 2007 2008 2009 2010** 2011E** * Product development costs are differed and amortized upon aircraft delivery. ** 2010 result and 2011 estimate in IFRS. 44
  42. 42. Corporate Information
  43. 43. 2010 Accomplishments 10th anniversaries: NYSE Euronext listing. Presence in China, Singapore and GPX. Embraer elected for the 2nd consecutive year, one of the best companies to work for in Brazil. Embraer selected as Gold Class on the DJSI and also on the ISE. 46
  44. 44. Lean Results: E-Jets Final AssemblyLine Transformation“Dock” layout - 2008 Assembly Line – 2009 Assembly Line – 2011 Performance indicators May/2008 July/2009 Sep/2009 June/2010 Mar/11 Out/11 (15ac/month) (10ac/month) (10ac/month) (8ac/month) (10ac/month) (12ac/month) Number of positions 12 6 5 4 4 4 Cycle time (days) 18 12 10 8 8 7 Work in process (US$mi) 212 106 95 89 68 68Number of non-conformityper a/c 32 7 1,7 0 0 0 Over time (% of work hours) 10 1,5 1,5 0,2 0 0 47
  45. 45. Automation Journey 48
  46. 46. Automation Initiatives 2010 Automation initiatives continues in 2011… 49
  47. 47. Looking to the Future - Lean Design Process and product development RWK Lean Design Lean Manufacturing Optimize product value, prevent waste in the production process Transport, storage, Minimum number of parts, low complexity of parts, Potentiates motion, waiting, product maturity, appropriate accuracy, less variability in the overproduction, project, etc.. defects waste elimination 50
  48. 48. Sustainability Initiatives Social, Environmental and Economic Dimensions ISO 14001 and OHSAS 18001 Certifications Brazilian Alliance for Bio-fuel 1st ethanol powered aircraft in the World Social Activities Reforestation Projects Recycling IpanemaCorporate Values Greener Technology 51
  49. 49. People Development Graduate 31% High School 62% Identify and Nurturing of newly graduated talents 14 Classes concluded (1031 attendees)Postgrad 5% Ph.D. 2% • 109.835 Attendances • Total investment: • 727.430 hours R$ 5.465.878,00 Trainings / Professional Category Category Trained Employees Hours Per capital hours Leadership 759 32768 43 Engineering 3102 240439 78 Technician 1908 134498 70 Operational 7279 197324 27 Professional 1530 86229 56 Administrative 606 27622 46 Pilots 83 1055 13 Intern 225 7425 33 Total 15492 727430 47 52
  50. 50. Corporate Governance 10 v /20 No 53
  51. 51. Ownership Structure 723,665,044 Voting Shares THORNBURG INVESTMENT 6.3% OPPENHEIMER FUNDS 7.2% BM&FBOVESPA OTHERS 25.2% NYSE BM&FBOVESPA BNDESPAR 50.4% 49.6% NYSE OTHERS 5.5% 36.8% PREVI 12.8% GRUPO BOZANO 6.0% February, 2011 54
  52. 52. EPADS and Pay Out 53% 68% 52% 26% 34% 2.64 2.57 2.11 2.14 1.83 2006 2007 2008 2009* 2010* EPADS Pay Out 2006-2008: US GAAP * 2009-2010: IFRS 55
  53. 53. Dividend YieldPercentage (%) 4.34 3.28 2.91 2.01 2.23 2006 2007 2008 2009 2010 2006-2008: US GAAP 2009-2010: IFRS 56
  54. 54. 57
  55. 55. Forward Looking StatementThis presentation includes forward-looking statements or statements about events orcircumstances which have not occurred. We have based these forward-looking statementslargely on our current expectations and projections about future events and financial trendsaffecting our business and our future financial performance. These forward-lookingstatements are subject to risks, uncertainties and assumptions, including, among other things:general economic, political and business conditions, both in Brazil and in our market. Thewords “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends,” “expects” andsimilar words are intended to identify forward-looking statements. We undertake noobligations to update publicly or revise any forward-looking statements because of newinformation, future events or other factors. In light of these risks and uncertainties, theforward-looking events and circumstances discussed in this presentation might not occur. Ouractual results could differ substantially from those anticipated in our forward-lookingstatements. 58

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