1. Corporate
Governance

2. Embraer Capital Structure
Ordinary Shares: 740,317,965
Bovespa Other
17,0%
União
0,3%
BNDESPAR
5,0%
NYSE Other
49,9% Grupo Bozano
8,7%
Previ
13,9%
Janus Capital
Sharholders with more than 5% participation 5,2%
October, 2007

3. Basic Principles
PRESTAÇÃO DE Corporate
RESPONSABILIDADE
TRANSPARÊNCIA
Transparency EQÜIDADE
Equity Accountability
Responsibility
CONTAS CORPORATIVA
Flexibility Business Value Added to
Perpetuation Shareholders

4. Governance Guideline
• 100% of free float shares in single class with 100% of Tag-Along
• Sarbanes-Oxley Certification
• Negotiation Policy
• Dividend Policy
• Board of Directors with independent members
• Fiscal Board / Audit Committee
• Facts Communication and Publishing Policy
• Periodic issuance of Results in US GAAP and BR GAAP

5. Board of Directors Composition
BOARD OF DIRECTORS
11 MEMBERS
1 GOVERNMENT REPRESENTATIVE
2 REPRESENTATIVES INDICATED BY THE EMPLOYEES
Human
Executive Audit
Resources
Committee Committee
Committee

6. Fiscal Board
FISCAL BOARD
5 MEMBERS
1 ESPECIALIST MEMBER
• Audit Committee Function
• Monthly Ordinary Meetings
• Independent Auditors Assessment and Supervision
• Board Members and Administration Independency

7. Capital Reorganization
Bovespa’s
Board of Directors Shareholders
100% Approval Jan/06 Mar/06 Novo Mercado
Approval
Jun/06
• First large Brazilian Company with pulverized control
• Shareholders vote limited on 5% of total Company’s capital
• 100% Tag-Along
• More flexibility to get Capital Market financing to new projects and
growing programs
• Golden Share rights preserved
• Foreign capital vote limited to 40% on each subject

8. General Meeting 2007
• Announcement issued with an anticipation of 30 days
including the notice call and the instructions to vote with
the PROXY card for the foreign Shareholders with enough
time to analyze an issue and answer
• Shareholders’ participation of 75.3%
• Approval for almost all the proposal subjects

9. Implementation Status SOX # 404
Annual Cycle
Scope Risk Internal Testing External
Remediation 20F
and Identification Control Internal Auditors
Plan Report
Planning & Objectives Document. Controls Assessment
CEO / CFO
Audit Committee
Controller
Risk & Internal Control
Control Responsible
Independent Audit

10. SOX 2007 – Auditing Standard 5
Proposed Auditing Standard (AS 5) – PCAOB release No. 2006-007
PCAOB had already approved
Date: July 2007 went approved for SEC
Main Issues:
• External Auditor do not need to evaluate “management assessment”
• Accept more third parties work (ex: SAS70)
• Review and clarify Materiality Criteria (Qualitative and Quantitative)
• Possibility in using historical information
• Multi-localization: Focalization on “Risk” instead of “Materiality”
• “Risk Assessment”

11. Changing Mindset
2006 – Description of Process
(AS2)
Materiality Levels ($$)
2007 – Control Environment
(AS5)
Materiality Risks

12. Investment Grade
MOODY’S Since Dec/05 Baa3
STANDARD
& POOR’S
Since Jan/06 BBB-

13. Risk Management
RAW MATERIAL - COMMODITIES
Strategic Risks CERTIFICATIONS
SARBANES-OXLEY
Financial
Statements COMPLIANCE
Risks INDEPENDENT AUDIT
Economic and NATURAL HEDGE
Financial Risks ASSETS X LIABILITIES
PROPERTIES
INSURANCES ASSETS
Operational
RESPONSABILITIES
Risks OPERATION CONTINUITY
PEOPLE
BY LAW
Legal Risks LEGISLATION
CODE OF ETHICS

14. Corporate Governance Actions
CODE OF
TRADING DISCLOSURE RISK DISCLOSURE
ETHICS
POLICY POLICY MANAGEMENT COMMITTEE
& CONDUCT
TRANSPARENCY
VALUE CREATION

15. Dividends Policy
• The mandatory distribution of the Brazilian Corporate Law
is based on a percentage of adjusted net income, not
lower than 25%, rather than a mixed monetary amount
per share
• The Company’s consolidated net profits is around 40 to
50% of net income

16. Dividends
US$ Million
54%
45%
42%
39%
204
187
152
129
R$ Million
62.7%
52.6%
54.7%
45.6%
2004 2005 2006 9M 2007
585
Dividends Pay-Out Ratio
445
327
243
2004 2005 2006 9M 2007
Dividends Pay-out Ratio

17. Market Communication
• Issuance of Quarters Releases (BR e US GAAP)
• Conference call to announce the results
• Issuance of Quarters delivered aircraft and backlog
• Analysts meeting held each Quarter in Brazil, USA and Europe
• Embraer Day
• Analysts and investors meeting
• Road shows and banks conference participation
• Investor Relations website

18. Embraer’s Participation

19. Financial Results

20. New Accounting Practices
The Company has concluded that its sales activities for aircraft consists of four
distinct deliverables:
• (a) The Aircraft.
• (b) Training Services – The Company provides initial training services for its customers for
the operation of purchased aircraft. This training is part of the aircraft purchase price and
can be sold separately. Therefore, the Company knows the fair value of training at the time
an aircraft is delivered.
• (c) Spare Parts Concession – The Company regularly sells spare parts to its customers
for the maintenance of their aircraft. In accordance with industry practices, the Company
provides its customers with spare parts concession for a specified period for the aircraft that
was sold. Such concession amount is included in the aircraft purchase price and
specifically negotiated with its customers. The individual price of each spare parts is
referred in its list price. Therefore, the Company knows the fair value of each spare part at
the time an aircraft is delivered.
• (d) Technical Representative Assistance – The Company provides its customers with
technical representative assistance services for operational support and include such
services in the aircraft purchase price. These services can be sold separately and,
therefore, the Company knows the fair value of such service at the time an aircraft is
delivered.

21. New Accounting Practices
• Considering that each deliverable has a stand-alone value to the customer and its fair value
is known, the Company has concluded, that each such deliverable should have been
accounted for separately- in accordance with EITF 00-21 (“Revenue arrangements with
multiple deliverables”).
• As a result the Company deferred revenue recognition of the separate deliverables
discussed from b to c above. The Company also restated (i) the balances of its trade
accounts receivable, net, (ii) other assets (iii) other payables and accrued liabilities (iv)
unearned income. These corrections also resulted in the restatement of certain line items of
its statement of cash flows to reflect the corresponding changes in the variation of the
balances of affected operating assets and liabilities.
• The Company will recognize the deferred revenue of separate deliverables when the service
or product is provided to the customer.

22. New Accounting Practices
• Commercial Concessions - The Company offers contractual concessions that provide its
customers with a reduction in the amount paid its aircraft. The contractual concessions granted by
us to its customers may be partially or fully recovered through an export incentive program of the
Brazilian Government. The Company previously recorded these contractual concessions as
“Selling Expenses” because the Company believed that the contractual concessions were part of
the sales efforts for its aircraft. The amount of contractual concessions recovered by us through
the export incentive program was previously recorded as financial income, because the Company
received the incentive through the issuance of Brazilian treasury bonds under the program.
However, the Brazilian Government is not one of its supplier and does not participate in the sale
process of the aircraft, and accordingly, EITF 02-16 (“Accounting by a Customer (including a
reseller) for Certain Consideration Received from vendors as revenue”) does not apply.
• In its reassessment of its accounting practices, the Company has concluded that such concessions
should have been recorded as “Sales Deduction” in accordance with EITF 01-9 “Accounting for
Consideration Given by a Vendor to a Customer” because the concessions represented a
reduction of sales price. In addition, the recovery of the concessions through the export incentive
program should be recognized as revenue associated with the sale and export of the aircraft, and,
therefore, should be recorded as Net Sales (“Revenue”). The Company reflected these
modifications in its restated financial statements for the years 2004, 2005 and 2006.
• As a consequence the Company decided to proceed a restatement of its annual report 20F-A

23. Jet Deliveries Forecast
165/170
160 161
148 141
131 130
108
101
2000 2001 2002 2003 2004 2005 2006 2007E

24. Net Revenue by Segment
3Q06 3Q07
Serviços Serviços Outros
Clientes Outros 4.3% Clientes 1.6%
9.8% 10.9%
Aviação
Executiva
14.7%
Aviação
Executiva
21.2% Defesa e
Aviação Governo
4.1%
Comercial Aviação
Defesa e 63.2% Comercial
68.7%
Governo
1.5%

25. Net Revenues and Gross Margin - Quarter
US$ Million
26.2%
24.5%
22.7%
21.8% 21.8%
1,428
1,060 1,110
877
832
R$ Million
22.7%
19.8% 19.2%
3Q06 4Q06 1Q07 2Q07 3Q07 16.0%
14.7%
2,729
2,323
2,190
1,879
1,753
3T06 4T06 1T07 2T07 3T07

26. Net Revenues and Gross Margin
US$ Million
30.3%
27.7%
25.3%
22.0%
3,352 3,789 3,760 3,370
R$ Million
2004 2005 2006 9M 07
Net Revenue Gross Margin 29.6%
20.9% 21.6%
16.4%
9,984 9,046 8,265
6,673
2004 2005 2006 9M 2007
Receita Líquida Margem Bruta

27. EBIT - Quarter
16.1%
US$ Million
230
7.9%
6.0%
84 2.8%
52 1.9%
31 R$ Million
15
12.7%
3Q06 4Q06 1Q07 2Q07 3Q07
Income from Operations EBIT Margin
6.2% 347
6.3%
2.5%
147
116
-0.3%
44
(7)
3T06 4T06 1T07 2T07 3T07
Lucro Operacional Margem

28. EBIT
US$ Million
16.2%
13.5%
544 510 9.1% 8.2%
343
277
2004 2005 2006 9M 07
Income from Operations Margin 17.2% R$ Million
1,714 8.8%
7.5%
5.7%
793
622
384
2004 2005 2006 9M 2007
Lucro Operacional Margem Operacional

29. Net Income - Quarter
US$ Million
13.6%
11.5%
195
7.0%
124
6.1%
3.1%
62 67
26
R$ Million
3Q06 4Q06 1Q07 2Q07 3Q07
11.2%
Net Income Net Margin
8.7% 9.3%
306
216
163 3.3%
3.6%
80
59
3T06 4T06 1T07 2T07 3T07
Lucro Líquido Margem Líquida

30. Net Income
US$ Million
11.8%
11.3%
10.40%
8.6%
446
380 390
288
12.8%
R$ Million
2004 2005 2006 9M 2007
7.8%
Net Income Net Margin 7.5%
1,281
6.7%
709
622
444
2004 2005 2006 9M 2007
Lucro líquido Margem Líquida

31. Balance Sheet

32. Inventories
US$ Million
2,621 2,681
2,317
2,047
1,882
3Q06 4Q06 1Q07 2Q07 3Q07 R$ Million
5,609 5,571
5,150
4,410 4,683
3T06 4T06 1T07 2T07 3T07

33. Net Cash (Debt) Position
US$ Million
507
450
416
217
128
3Q06 4Q06 1Q07 2Q07 3Q07
R$ Million
1,102
877
810
432
228
3T06 4T06 1T07 2T07 3T07

34. Loans
Total Debt of US$ 1,803.2 Million
Foreign
Brazilian
Currency
Short Currency
54%
Term 46%
39%
Long
Term
61%
• Average cost in R$ = 7.9 % p/a
Loans Average Maturity: 3 year and 8 months
• Average cost in US$ = Libor + 1.63% p/a

35. Loans Maturity
US$ Million
706
1.803 346
66 109
33
543
Total Short- 2008 2009 2010 2011 after
term 2011

36. Investments

37. Research & Development Forecast
US$ Million
R&D Previous New
2007 2008 2007 2008 2009
Commercial Aviation 51 22 45 48 55
Executive Aviation 127 90 129 123 127
Technology Development 59 61 59 72 70
TOTAL 237 173 233 243 252
Defense & Government 32 48 21 54 102
Defense & Government R&D are funded by their contracts and are included as Cost of sales and services

38. PP&E
US$ Million
PP&E Previous New
2007 2008 2007 2008 2009
TOTAL 194 117 113 250 190
* Total includes Productivity, Customer Support, Training Centers and
Flight Simulators, Executive Aviation Service Centers and Embraer
170/190 and Phenom 100/300 Rump Up

39. Contributions from Risk Sharing Partners
US$ Million
246 14
1
108
-
55
42
17
20
Total
2001
2002
2003
2004
2005
2006E
2007E
2008/2010E

40. Investor Relations
Phone: + 5512 3927-4404
investor.relations@embraer.com.br
www.embraer.com