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 PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
3. 1Q05 Highlights
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
4. Highlights
Republic Airways Holdings added 16 firm and 34
option EMBRAER 170s to its order book. Of the 16
new firm aircraft, two were already accounted for in
Embraer’s fourth-quarter 2004 order book.
Harbin Embraer announced on March 24, 2005 the
sale of five ERJ 145s to China Eastern Airlines
Jiangsu Ltd.
Embraer delivered its 900th jet of the ERJ 145 family
to European customer Luxair.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
5. Highlights
Embraer signed in February a Memorandum Of
Understanding with the Indian Defense, Research and
Development Organisation to support the Indian Air
Force new Airborne Early Warning & Control system
development
The consortium formed by Embraer and the
European Aeronautic Defense and Space Company
(EADS) received approval to acquire 65% of OGMA -
Indústria Aeronáutica de Portugal S.A., one of the
largest maintenance, repair and overhaul facilities in
Europe
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
6. Results &
Performance
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
7. Jet Deliveries
43 42
40
30
23
1Q04 2Q04 3Q04 4Q04 1Q05
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
8. Net Revenues and Gross Margin
US$ million
37.6%
33.2% 35.1%
32.6%
32.3%
924 937 954
763
626
1Q04 2Q04 3Q04 4Q04 1Q05
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
9. Net Revenue by Segment and Market
1Q04 1Q05
Customer Customer
Sevices and Services &
Others 8% Others 10%
Business Jet
Market4%
Defense Defense
21% 10%
Commercial
Airline Market
71%
Commercial
Airline Market
76%
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
10. Income from Operations
US$ Million
24.4%
16.3%
13.6% 14.9%
13.3%
153 142
123 127 125
1Q04 2Q04 3Q04 4Q04 1Q05
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
11. Net Income
US$ Million
16.5%
12.1% 12.6%
8.7% 8.7%
114
103 97
80 83
1Q04 2Q04 3Q04 4Q04 1T05
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
12. Accounts Receivable Breakdown
US$ Million
607
514 529
271 315
194 189 250
157 157
1Q04 2Q04 3Q04 4Q04 1T05
Others Commercial Airline Market
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
13. Inventories
US$ Million
1,570
1,390 1,428
1,273 1,247
1Q04 2Q04 3Q04 4Q04 1Q05
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
14. Indebtedness
Total Debt of US$ 1,037.7 Million
Brazilian
Currency Short Term
2% Long Term 22%
78%
Foreign
Currency
98%
• Average cost in R$ = 14.8 %p/a
• Average cost in US$ = 5.3% p/a Long-Term Loan Average Maturity:
3 years and 3 months
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
15. Indebtedness Maturity
US$ million
1,037
232
101
312
191
156 45
Total Short Term 2006 2007 2008 2009 Beyond
2010
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
16. Net Cash (Debt) Position
US$ Million
304
220
178
22
-166
1Q04 2Q04 3Q04 4Q04 1Q05
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
17. Backlog and
Delivery Forecast
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
18. ERJ 145 Family Orderbook
Firm
Firms Options Total Deliveries
Backlog
ERJ 135 123 2 125 108 15
ERJ 140 94 20 114 74 20
ERJ 145 681 211 892 634 47
Total 898 233 1,131 816 82
(as of 1st quarter, 2005)
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
19. EMBRAER 170/190 Family Orderbook
Firm
Firms Options Total Deliveries
Backlog
EMBRAER 170 172 137 309 56 116
EMBRAER 175 15 - 15 - 15
EMBRAER 190 155 230 385 - 155
EMBRAER 195 15 20 35 - 15
Total 357 387 744 56 301
(as of 1st quarter, 2005)
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
20. Backlog
US$ Billion
17.7 17.8 18.5
17.5
15.0
10.9 10.5 11.0 10.1 9.9
1Q04 2Q04 3Q04 4Q04 1Q05
Firm Options
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
21. Jet Deliveries Forecast
160 161
148 145 145
131
96 101
59
32
4
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005E 2006E
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