The document summarizes Embraer's 5th Annual Investors and Analysts Meeting held in November 2004. It discusses Embraer's shareholder base, dividends, differences between Brazilian GAAP and US GAAP accounting standards, reconciliation of net income and shareholders' equity between the two standards, and off-balance sheet exposure from financial guarantees, residual value guarantees, repurchase options, trade-in options, and trade-up options.

1. 5th Annual Investors and Analysts Meeting
November 18 & 19, 2004
São José dos Campos - Brazil
Financial
Antonio Luiz Pizarro Manso
CFO

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.
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

3. Shareholder
Base

4. Embraer Voting Capital
Ordinary Shares: 242,544,448 33.78%
2% Individuals
20% 60% Controlling
European Group Shareholders
7%
Foreign
Institutional Investors
11%
Brazilian
Institutional Investors
20% European Group 60% Controlling Shareholders
Dassault 5.67% PREVI (Pension Fund) 20%
Thales 5.67%
SISTEL (Pension Fund) 20%
EADS 5.67%
Snecma 2.99% Cia. Bozano 20%
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

5. Preferred Shares
Preferred Shares : 475,411,026 66.22%
2%
17%
Individuals
Controlling Shareholders
10%
BNDES
3% Brazilian
Institutional Investors
68% Foreign Investors
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

6. Dividends
500 60%
404 421
400 49.8% 50%
327 43.3%
40%
300 36.1% 36.1%
228
195 30%
27.2%
200
20%
100 10%
0 0%
2000 2001 2002 2003 9M04
Dividends Pay Out Ratio
R$ million
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

7. Main Differences between
Brazilian GAAP
&
US GAAP

8. Revenue Recognition – BR Gaap & US Gaap
Commercial Airline & Corporate Segments
Revenues are generally recognized as deliveries are made
Defense
Defense segment operates in a business environment that differs from
Commercial Airline and Corporate market segments. The main characteristics are:
Long-term contracts with customers to develop defense products
Based on each customer need
Quantities and selling price are generally fixed
At the beginning of the program
Exposed to risks in the execution of the contract
Given these characteristics, revenues are recognized under the long-term
contract rules which uses the percentage-of-completion method.
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

9. Cost Recognition – BR Gaap & US Gaap
Commercial Airline & Corporate Segments
BR GAAP
R&D capitalized as a deferred asset
Amortization based on total serial production
US GAAP
No program accounting
Cost as incurred
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

10. Defense Revenue and Costs
Defense contract accounting
Long-term contract accounting requires management to estimate the total
contract cost. These costs consist of designing, engineering, manufacturing and entry
into service.
Total estimated contract costs include:
Raw material
Supplier components
Direct Labor, including engineering
Manufacturing overhead
Estimated total Price to
percent of complete x price = be recognized to date
Revenue to be - Revenue recognized = Current period
Recognized to date in prior periods revenue
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

11. Defense Revenue and Costs
Defense contract accounting
Contract monitoring and related adjustments:
Review is made on a quartely basis
As part of these reviews, additional revenues arising from change
order requests and additional cost from over spending are identified
and reflected in a revised contract margin.
The effect of any revision is accounted for by way of a cumulative
catch-up adjustment to margin
Physical progress
Percent of complete = Costs incurred to date
Most recent estimate of total cost
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

12. Translation Effects (R$ x US$)
BR GAAP
ü Non monetary items no longer indexed by the UFIR (adjusted
to current purchasing power)
ü There is no functional currency concept
US GAAP
ü Functional Currency is the US$ (SFAS 52)
ü Non Monetary items (Assets and Liabilities) are accounted in
historical US$ values
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

13. PP&E
BR GAAP
ü Assets revaluation at market value is allowed
ü Since 1996 interest capitalization is not accounted
US GAAP
ü Interest capitalization over Long-term assets construction (SFAS 34)
ü Capitalization of assets acquired through capital leases (SFAS 13)
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

14. Deferred Assets
BR GAAP
üCapitalization of expenses will be amortized over future fiscal
years
üDeferral of pre-operation costs
US GAAP
üR&D expense accounted as incurred in the income statement
üPre-operation costs are not deferred
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

15. Capital & Operating Lease
BR GAAP
üCapital and operating lease are accounted as rent
US GAAP
üCapital (financing) and operating lease concept explained
by SFAS 13
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

16. Derivatives
BR GAAP
ü No CVM or IBRACON specific rule
ü Accounted by the accrual method
US GAAP
ü SFAS 133 in use since 2001
ü Gains and losses recognized during the
period
ü Fair value of derivatives is mandatory
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

17. Deferred Income Taxes
BR GAAP
ü Differences between accounting and fiscal records
US GAAP
ü All BR GAAP and US GAAP accounting diferences are considered
to calculate the deferred income tax
1999 (*) 2000 2001 2002 2003 9M04
No IOSE 27.9% (27.4%) (34.5%) (33.4%) (38.9%) (33.7%)
Benefit
BR GAAP
With IOSE 27.9% (24.2%) (30.6%) (26.6%) (29.8%) (22.5%)
Benefit
US GAAP With Benefit (23.8%) (26.8%) (40.3%) (45.6%) 25.8% (25.7%)
of IOSE
IOSE = Interest on Shareholders’ Equity
(*) 1999 no IOSE distribution
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

18. SPEs Consolidation
Some of the sales transactions are structured financings
through which an SPE purchases the aircraft, pays the full
purchase price on delivery or at the conclusion of the sales
financing structure, and leases the related aircraft to the
ultimate customer.
BR GAAP
ü New rule to be applied in 2005
US GAAP
ü Accounted as collateralized accounts receivable and non-
recourse and recourse debt
ü Starting in 2004 FIN 46 and FIN 46R becomes effective and
basic consolidation conditions were maintained
ü Before 2004 other rules were used for SPE consolidation
Source: 20 F note 8
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

19. Financial Guarantees
BR GAAP
ü No specific rule available
ü Disclosure under notes to consolidated financial statements is
mandatory
US GAAP
ü Since 01/01/2003 guarantees given to third parties are
measured at fair value and recognized on income (FIN 45)
In both Gaaps, IBNR (incurred but not reported) accounts for
problable losses through the ECC Insurance
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

20. Reconciliation between BR & USGAAP
Shareholders Equity
(09/30/04)
Period end exchange rate US$ Million
1.600
1.503 3 0 11
1.400
-4 121 3 1.327
1.200
-280 -1 -16 -13
1.000
800
600
400
200
-
BR GAAP Translation PP&E Inventories Financial Deferred Derivatives Fin 45 Operacional Deferred Others USGAAP
Effects Lease Assets (R&D) fair Value Lease Income Taxes
Adjusments
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

21. Reconciliation between BR & USGAAP
Net Income
(9M04)
US$ Million
Average
exchange rate
350
327 -55
22 -5 -4 -13 22 297
300 4 -9 5
-4 7
104
250
200
150
100
50
-
BR GAAP Translation PP&E Inventories Financial Deferred Derivatives Fin 45 Operacional Deferred Others Exchanges USGAAP
Effects Lease Assets fair Value Lease Income rate effect
(R&D) Adjusments Taxes
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

22. Financial Guarantees
Financial Guarantees
Provided in the form of guarantees of lease payments, to mitigate
default-related losses.
These guarantees are mainly issued for the benefit of the customers
financing agent.
Exercised when customers do not meet their payment obligations during
the term of the financing.
Collateralized by the aircraft.
Upon an event of default, the Company usually is the agent for the
guaranteed party for the refurbishment and remarketing of the underlying
aircraft. The Company may be entitled to a fee for such remarketing services.
Typically a claim under the guarantee shall be made only upon surrender of the
underlying aircraft for remarketing
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

23. Financial Guarantees & RVGs
Residual Value Guarantees (RVGs)
Provide a third party with a specific guaranteed asset value at the end
of the financing agreement
In the event of a decrease in market value of the aircraft, the Company
shall bear the difference between the specific guaranteed amount and
the actual fair market value
In order to benefit from the guarantee, the guaranteed party has to make
the aircraft to meet tight specific return conditions
Financial Guarantees & RVGs
In the event both guarantees were issued for the same aircraft,
the residual value guarantees can only be exercised if the financial
guarantees have expired without having been triggered, and therefore,
are mutually exclusive.
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

24. Financial Guarantees & RVGs
Provisioning of financial guarantees and RVGs
In order to cover the exposure related to financial guarantees, a provision
is recorded at the time of the delivery.
Use of sophisticated models to measure the provision:
External appraisals of expected aircraft value
Credit ratings of the airlines companies
Current and future market outlook
Aircraft expected availability level in the market
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

25. Off Balance Sheet Exposure
The maximum potential payments represent the “worst-case scenario,” and do
not necessarily reflect the expected results by the Company.
Estimated proceeds from performance guarantees and underlying assets
represent the anticipated values of assets the Company could liquidate or
receive from other parties to offset its payments under guarantees.
US$ million 2002 2003
Financial Guarantees 1,175 1,229
RVGs 624 627
Mutually Exclusive Exposure (362) (392)
Provisions & Liabilities Recorded (14) (67)
Off Balance Sheet Exposure 1,422 1,297
Estimated proceeds from performance
guarantees and underlying assets 1,748 1,650
Source: 20 F note 34
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

26. Off Balance Sheet Exposure
Repurchase Options (Put Options)
Provide the customer with the right to sell the aircraft back to the
Company in the future according to defined pricing rules.
These put options may become exercisable at various times
Can be exercised at the customer’s sole discretion.
The put price per aircraft is less than the original sales price of the aircraft
and less than management’s estimation for the future market value of the
aircraft during the exercise period as assessed at the date of sale.
Put obligations:
As of December 2003 US$ 500 million
As of today ~ US$ 100 million
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

27. Off Balance Sheet Exposure
Trade-in options
Provide a customer with the right to trade-in existing aircraft upon the
purchase of a new aircraft.
The trade in price per aircraft is less than the original sales price of the
aircraft and less than management’s estimation for the future market value
of the relevant aircraft.
6 Commercial jets are subject to trade-in
Trade up options
When the Company launches a new corporate jet model,
the customer has the right to trade-up to the new model and has the right
to sell the aircraft back to the Company in the future.
The trade-up price is determined as a percentage of the original purchase
price of the corporate jets.
11 Corporate jets are subject to trade up
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

28. 3rd. Quarter 2004
Financial Results
Brazilian GAAP /
US GAAP

29. Net Sales & Gross Margin
R$ Million US$ Million
BR GAAP US GAAP
36.2% 924 937
38.1%
35.3% 35.0%
36.8%
649 626
32.2% 439 33.2%
31.8% 3,034 32.6%
2,734 32.3%
1,929 1,816
1,296
3Q03 4Q03 1Q04 2Q04 3Q04 3Q03 4Q03 1Q04 2Q04 3Q04
Revenue Gross Margin
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

30. Gross Margin Evolution
BR GAAP US GAAP
44.6%
41.6% 39.6% 39.4% 37.7%
31.1% 32.0%
35.8% 32.8%
33.2% 32.0%
26.9% 28.3% 28.6% 26.9% 28.3%
160 161 36 36
160 161
131 131
96 101 96 101
60 70 60 70
32 32
1997 1998 1999 2000 2001 2002 2003 9M04 1997 1998 1999 2000 2001 2002 2003 9M04
EMBRAER 170 Jet Deliveries Gross Margin EMBRAER 170 Jets Deliveries Gross Margin
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

31. Revenue Breakdown
US GAAP & BR GAAP US GAAP & BR GAAP
Sales per Segment Sales per Market
9M04 9M04
Brazil
7%
Defense
11%
Corporate
4%
Commercial
Airline
Customer Foreign
78%
Services &
Market
Others
7% 93%
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

32. EBIT & Margin
R$ Million US$ Million
BR GAAP US GAAP
17.6% 18.4%
17.1% 16.9% 24.4%
14.1%
13.3% 13.6%
558 11.0% 153
462 11.3%
123 127
339
221 255 73
49
3Q03 4Q03 1Q04 2Q04 3Q04 3Q03 4Q03 1Q04 2Q04 3Q04
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

33. Net Income & Margin
R$ Million US$ Million
BR GAAP US GAAP
16.5%
14.5% 14.5%
12.6%
10.7% 12.1%
10.4%
8.7%
114
6.9% 382 397 103
80
280 68
4.4%
195
89 19
3Q03 4Q03 1Q04 2Q04 3Q04 3Q03 4Q03 1Q04 2Q04 3Q04
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

34. Working Capital
Brazilian GAAP/
US GAAP /

35. Accounts Receivables
R$ Million US$ Million
BR GAAP US GAAP
2,821
981
2,052
703
1,292 1,457
970 465 472
356
3Q03 4Q03 1Q04 2Q04 3Q04 3Q03 4Q03 1Q04 2Q04 3Q04
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

36. Accounts Receivables
US$ Million - US GAAP
95
189
886 157
194
166 514
271 315
190
3Q03 4Q03 1Q04 2Q04 3Q04
Commercial Airline Market Others
Others = Defense + Customer Services
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

37. Inventories
R$ Million US$ Million
BR GAAP US GAAP
4,155
3,647 3,823 1,390
3,328 3,346 1,258 1,231
1,111 1,158
3Q03 4Q03 1Q04 2Q04 3Q04 3Q03 4Q03 1Q04 2Q04 3Q04
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

38. Net Cash (Debt)
R$ Million US$ Million
BR GAAP US GAAP
944
304
642 629 222 220
516 178
(521) (178)
3Q03 4Q03 1Q04 2Q04 3Q04
3Q03 40
Q3 1Q04 20
Q4 3Q04
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

39. Hedging
Strategy

40. Hedging Strategy
• Firm backlog of US$11.0 billion
• 93% revenues in US$
• 83% of R&D and PP&E investments in R$
• 37% of total cash disbursements in R$
Main Objective of the Hedging Strategy
Optimize the Natural Hedge of the Cash Flow
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

41. Loans Breakdown
Bank Debt - US$ 1,169.2 million
September 30, 2004
Currency Breakdown Debt Maturity
Local
Currency
7%
Long Term
63%
Short Term
37%
Foreign
Currency
93%
Considering Swap effects; from US$ and Yen to R$
Cost of Local Currency = 12.4 • Loan Average Maturity: 2 years and 11 months
Cost of Foreing Currency = US$ variation + 3.9% p/a
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

42. Balance Sheet
US GAAP
79% 87% 82% 84% 86% 86%
88% 88%
21% 18% 16% 14% 14%
13% 12% 12%
Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities
12/31/2003 03/31/2004 06/30/2004 09/31/2004
Other Currencies US$
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

43. Balance Sheet
US GAAP
Includes Derivatives
79% 82% 84% 86%
88% 88% 89% 87%
21% 18% 16% 14%
12% 12% 11% 13%
Assets Liabilities Assets Liabilities Assets Liabilities Assets Liabilities
12/31/2003 03/31/2004 06/30/2004 09/31/2004
Other Currencies US$
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

44. Sales Finance

45. ECA’s - Export Credit Agencies
Aerospace Sector Support*
US$ Billion
7
6.3
5.9 5.8
6
5.0
5 4.5
4.2
4 3.5
2.7 3.0 2.9
3 2.6 2.72.6 2.7
2.4
2.2
1.8 1.95
2
1.4 (a)
1.0
1 0.6 0.7
0
1998 1999 2000 2001 2002 2003
US-EXIM EU-ECA's EDC BNDES
•US-EXIM & EU-ECA’s: commercial aircraft more than 70 seats (a) Direct and indirect disbursement
•EDC commercial aircraft of 50-70-90 seats
Source: US-Exim - Competitiveness Report 2001/2002
•BNDES: commercial aircraft 30-50 seats EDC Annual Report 2000/2001/2002/2003
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

46. ERJ 145 Family* and EMBRAER 170
Financing Methods – Year 2004
Total Regional Jets delivered: 106 (through Sep/04)
Total amount exported: US$ 2.05 Billion
Total amount financed by BNDES: US$ 490 Million
Market
76.1%
BNDES
23.9%
* Includes Corporate and Authority Transportation
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

47. ERJ 145 Family* and EMBRAER 170
Financing Methods
Total Regional Jets delivered: 847 (through Sep/04)
Total amount exported: US$ 14.46 Billion
Total amount financed by BNDES: US$ 6.42 Billion
BNDES
44.4%
Market
55.6%
* Includes Corporate and Authority Transportation
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

48. ERJ Financing Methods
Total RJ Aircraft Delivered: 847 (Sep 04)
Cash
5% Finance Lease
5%
Operating Lease
5%
Tax Lease
46%
Straight
Financing
Bridge 34%
3%
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

49. ERJ Financing Methods
Tax Lease
UK Tax Japanese Tax
Polish Tax
Lease Lease
Lease
9% 1%
Single Investor 3%
Lease
18%
USLL
68%
French Tax
Lease
1%
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

50. EETC

51. EETC – Annual volume of new issues
Amount US$ Million
8,084
(1994~2004)
6,621
6,030
3,594
2,688
2,204 2,305
1,486
762 985 785
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Oct/04
Source: Citigroup – EETC Trading Observer – October 14, 2004
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

52. Aircraft Financing – EETC 2003
2003-ERJ1 Pass Through Trust Certificate Offering
ü U$ 415 million total volume
ü Standard&Poor’s BBB and Moody’s Ba3
ratings
ü Priced at T + 347 bps with coupon of 7.875%
ü Unwrapped Single Tranche transaction – first
unwrapped transaction since October 2001
ü More than 3 times oversubscribed and spread
over (75) different accounts
ü Citigroup and Morgan Stanley as Joint
Bookrunners
ü Awarded “Deal of the Year” by Airfinance
Journal for 2003
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

53. Aircraft Financing – EETC 2004
2004-ERJ1 Pass Through Trust Certificate Offering
ü U$ 174 million total volume
üUnwrapped Single Tranche transaction
ü Significant portion of aircraft pre-funded
üPriced at T + 484 bps with coupon of 9.5%
ü Standard&Poor’s BBB- and Moody’s Ba2
ratings
ü Citigroup and Morgan Stanley as Joint
Bookrunners with Citigroup acting as sole
structuring agent
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

54. Investments

55. PP&E and R&D – Cash Flow
US$ million
200
180 158.6
PP&E 99.6
160
114.2
R&D 136
140
60.1 69.6 143.8
120
100
80 18.8
127.7
60 44.1
40
20
0
2000 2001 2002 2003 2004 E
Does not include cash contribution from risk sharing partners
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

56. Cash Contribution – Risk Sharing Partners
US$ million
300
246 14
250
- 1 107
-
200
150
72
100
24
50
28
-
Total 2001 2002 2003 2004E 2005E 2006E 2007/2010E
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

57. Investments Forecast
Defence investments are funded by their contracts and are not
included in the R&D expenses but in Cost of Sales and Services.
US$ million
2005 2006
R&D Total 119 66
- Commercial Aviation 89 37
- Corporate Aviation 11 12
- Others 19 17
Defence 88 38
Productivity and PP&E 77 59
TOTAL 284 163
Does not include new programs
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

58. Backlog
17.5 17.7 17.8 18.5
17.3
10.4 10.6 10.9 10.5 11.0
3Q03 4Q03 1Q04 2Q04 3Q04
Firm Orders Options
US$ Billion
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

59. Investor Relations
Department
Phone: (55 12) 3927 1216
investor.relations@embraer.com.br
www.embraer.com.br