1. 4Q05 and FY2005
Earnings Results
EMBRAER
Maurício Botelho
President & CEO
April 3, 2006
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.
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2. 2005 Highlights
Record Net Revenues Record Net Income
In US$ millions In US$ millions
3,830
3,441
446
2,144 380
136
2003 2004 2005 2003 2004 2005
2005 Highlights
Net Cash Order Backlog
In US$ Billions
In US$ millions
360
17.5 17.5
222 13.6
10.6 10.1 10.4
22
2003 2004 2005
2003 2004 2005 Firm Orders Options
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3. Embraer New
Capital Structure
Main Benefits to the Company
• Financing of the Company’s expansion programs through the equity capital markets and the
use of convertible instruments
• The current capital structure does not allow the Company to issue new shares without
additional capital injection by the current controlling shareholders which for different
reasons is unfeasible , thus limiting the Company’s flexibility for financing its growth in
the equity capital markets
• Creation of an acquisition currency for potential expansions in the international markets
• The enhancement of the Company’s valuation multiples and increase in liquidity in both
the domestic and international markets would allow for potential expansion through
acquisitions
• The increase in liquidity and better market perception of the Company would reflect positively
on its share price in the stock exchange
• The improvement in Company’s corporate governance and transparency, in addition to
the possible listing in the “Novo Mercado”, could create additional demand for the stock
from institutional investors including the local pension funds
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4. Shareholders Protection Mechanisms
Mechanism Description
Number of valid votes per • The maximum allowed votes per shareholder or group of shareholde rs acting
shareholder or group of shareholders as one, including brokers acting on behalf of one or more ADS holders, will be
acting in a concerted manner will be limited to 5% of the total shares of the Company
limited to 5% of the total shares of • The mechanism above will affect only the shareholders ’ political rights (e.g.,
the Company voting rights), not being applicable to economic rights
Mandatory delisting tender offer • Shareholders who acquire or become holders of more than 35% of the
Company’s capital would be required to launch a delisting tender offer, under
conditions established in Embraer´s bylaws, and Brazilian laws
• The tender offer is conditioned upon the Brazilian Government authorization,
subject to suspension of voting rights
Voting rights limitation to foreign • The total number of foreign votes will be limited to 40% (forty percent) of total
shareholders valid votes in each General Shareholders` Meeting, corresponding to 2/3 of
total votes of Brazilian Shareholders
Mandatory ownership disclosure • Percentage ownership must be disclosed whenever a shareholder reaches a
5% threshold and every 5% increment thereafter
Monitoring Committee to follow • The CFO will monitor the Company’s ownership and the compliance of the
changes in ownership shareholders` protection mechanisms to disclose potential violations of the
company’s bylaws
New Capital Structure
738.611.820 Common (Voting) Shares
CIA BOZANO 9.87
PREVI 16.42
OTHERS NYSE 39.34
SISTEL 7.35
BOZANO HOLDINGS
1.20
OTHERS BOVESPA BNDESPAR 6.32
11.66 EUROPEAN GROUP
7.50
BRAZILIAN
GOVERNMENT 0.32
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5. Highlights - Commercial Aviation
Delivery of the first
EMBRAER 175 aircraft to
Air Canada
The first EMBRAER 190 is
delivered to launch
customer JetBlue
Highlights– Commercial Aviation
99 New Orders (94 E-jets e 5 ERJ 145)
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6. Highlights – Commercial Aviation
Embraer Market Share
30 to 60 seats 46%
61 a 90 seats 36%
91 a 120 seats 57%
30 a 120 seats 46%
As of Dec. 31, 2005
Based on total number of aircraft delivered and in backlog
EMBRAER 170/190 Family Order Book
Firm
Firm Orders Options Total Deliveries
Backlog
EMBRAER 170 198 114 312 92 106
EMBRAER 175 22 - 22 14 8
EMBRAER 190 191 217 408 12 179
EMBRAER 195 29 31 60 - 29
Total 440 362 802 118 322
(4th Quarter, 2005)
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7. ERJ 145 Family Order Book
Firm
Firm Orders Options Total Deliveries Backlog
ERJ 135 123 2 125 108 15
ERJ 140 94 20 114 74 20
ERJ 145 677 157 834 667 10
Total 894 179 1,073 849 45
(4th Quarter, 2005)
Highlights - Business Jet Market
Launch of the Phenom 100 e Phenom 300
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8. Phenom™ 100 Main Features
• Built to operate within typical airline schedules of
aproximately 2,000 cicles per year
• Minimum downtime for inspections
• Ease of maintenance
• High reliability
• The largest cabin, baggage capacity and speed in its
class.
• High Speed Cruise: 380 ktas
• Prodigy™Avionics based on Garmin G-1000 System.
• Engines: Pratt & Whitney PW&C 617F
• Interior designed by BMW DesignWorksUSA
• Entry in Service: Mid 2008
Phenom™ 100 – Competitive Analysis
Phenom™ 100 Eclipse 500 Mustang Adam 700 CJ1
(Entry Level Jet)
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9. Phenom™ 300 Main Features
• Built to operate within typical airline schedules of
aproximately 2.000 cicles per year;
• Minimum downtime for inspections
• Ease of maintenance
• High reliability
• The largest range and baggage compartment in its
class.
• High Speed Cruise: 450 kt
• Integrated Prodigy™Avionics Systembased on Garmin
G-1000.
• Engines: Pratt & Whitney PW&C 535E
• Interior designed by BMW DesignWorksUSA
• Entry in Service: Mid 2009
Phenom™ 300 – Competitive Analysis
Layout Configuration Comparison
Phenom 300TM CJ2+ Bravo CJ3 Encore
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10. Highlights – Business Jet Market
Legacy 600 New Features:
ü Expansion of the operational envelope for high altitude airports
(9,500 feet abouve sea level)
ü Increase of the operational ceiling to 41,000 feet
ü Incorporation of high-speed global connection (Wi-Fi)
Highlights – Defense Market
• Brazilian Air Force exercises
options for 23 Super Tucano
light attack aircraft
• Government of Colombia places
na order for 25 Super Tucanos
• Embraer delivers five Legacy
600 configured for authority
transportation to the
Government of India
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11. Highlights – Customer Services
• Embraer acquired OGMA - Indústria Aeronáutica de
Portugal S.A.- one of the largest maintenance, repair and
overhaul (MRO) facilities in Europe
• Expansion of Embraer Aircraft Maintenance Services, our
MRO facility in Nashville, TN
• New MRO facility in Gavião Peixoto, Brazil
Highlights – Industrial Operations
Delivery of the 900th jet of the
ERJ 145 family
Delivery of the 100th E-jet, only
19 months after Embraer
delivered its first EMBRAER
170
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12. Highlights – Industrial Operations
The EMBRAER 175 receives
Transport Canada Civil Aviation
(TCCA) certification and first
deliveries are made to Air Canada
The EMBRAER 190 receives CTA,
FAA and TCCA certification and the
first aircraft are delivered to
JetBlue, Copa and Air Canada
Highlights- Industrial Operations
• Aircraft manufactured in 2005:
• 77 E-jets
• 43 ERJ 145
• 17 Legacy 600
• 36 Super Tucanos
• 7 F-5BR
• 27 Ipanemas
• Delivery of the first upgraded F-5BR fighter jet to the Brazilian Air
Force
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