FY2007 FY2007
Earnings ResultsEarnings Results
Forward Forward LookingLooking StatementStatement
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.
HighlightsHighlights
• The Board of Directors elected Frederico Fleury Curado
as President and CEO to succeed Maurício Botelho, who remains Chairman of the Board.
• Maintenance of Investment Grade given by rating
agencies Moody’s (Baa3) and Standard & Poors (BBB-).
• The Company undertook positive measures to adjust its
industrial processes to meet the deliveries scheduled for
the year, such as the recruitment of 4.500 new
employees, the implementation of a third shift for some
production areas and the introduction of the lean
manufacturing system.
• Embraer created a new business unit - Aviation Services and also a new Division dedicated
to Environmental Strategies and Technologies.
Firm Order Backlog - US$ 18.8 Billion
Increased 27% in 2007Increased 27% in 2007
Historical RecordHistorical Record
Firm Order BacklogFirm Order Backlog
US$ Billion
10.4 14.8
18.8
13.6
18.2
26.0
2005 2006 2007
24.0
33.0
44.8
Firms Options
Aircraft Deliveries
• Delivery of 169 jets meeting the guidance
(165 to 170).
• Growth of 30% compared to 2006.
• Record of yearly aircraft deliveries in
Company’s history.
DeliveriesDeliveries
Unidades
141 130
169
2005 2006 2007
Net CashNet Revenues
Net Revenues and Net CashNet Revenues and Net Cash
US$ Million
360416
740
2005 2006 2007
US$ Million
3,760 3,789
5,245
2005 2006 2007
EBIT Margin and Net IncomeEBIT Margin and Net Income
Net IncomeEBIT Margin
US$ Million
446390
489
2005 2006 2007
8.7%
9.1% 8% / 9%
2006 2007 2008
Commercial Aviation Commercial Aviation –– EE--JetsJets
750 aircraft sold to 45 clients in 30 countries750 aircraft sold to 45 clients in 30 countries
EE--JetsJets’’ new clients, in 2007new clients, in 2007
•• SuzuyoSuzuyo
•• Japan AirlinesJapan Airlines
•• Air France / KLMAir France / KLM
•• LufthansaLufthansa
•• M1 TravelM1 Travel
•• NAS AirNAS Air
•• TACATACA
•• Virgin NigeriaVirgin Nigeria
•• Alpi EaglesAlpi Eagles
•• Montenegro AirlinesMontenegro Airlines
•• AeromAeromééxicoxico
ClientsClients’’ operations initiated, in 2007 operations initiated, in 2007
•• US AirwaysUS Airways
•• Mandarin Mandarin
•• SirteSirte OilOil
•• Sky Air WorldSky Air World
•• Virgin BlueVirgin Blue
•• EgyptAirEgyptAir
•• Kenya AirwaysKenya Airways
Commercial AviationCommercial Aviation
• Delivery of the 1000th jet of the ERJ family
at Harbin Embraer Aircraft Industry Co Ltd,
in Harbin, China to Grand China Express
(HNA Group)
• E-Jets family accumulated 764 firm orders,
786 options and 334 aircraft delivered to 45
clients in 30 countries.
• E-Jets’ world fleet reached 1 million flying
hours with increasing dispatch reliability,
approaching 99,0%.
• ERJ 145 e EMBRAER 170/190 families
represent 46% of market share on the 30 to
120-seat jets segment.
• Legacy 600 fleet of 130 aircraft flying in 23
countries with a 15% market share on the super
midsize jet segment.
Business AviationBusiness Aviation
• Firm order backlog for Phenom 100 and Phenom
300 has surpassed than 700 units.
• First Phenom 100 flew for the first time in July.
Second prototype flew in September and third in
December.
• Two new executive jets concepts were
presented for the Midsize (MSJ) and
Midlight (MLJ) segments.
Business AviationBusiness Aviation
• The Lineage 1000, Embraer’s ultra-large
jet, departed to the USA for interior
completion at Pats. First delivery scheduled
for the end of 2008.
• Delivery to Brazilian Air Force of 10
modernized F-5 BR jets and 18 Super
Tucano’s.
• Delivery of 10 Super Tucano’s to Colombian Air
Force.
• First activities of system and technological
modernization of Brazilian Air Force’s AMX
fleet.
• A new military transport aircraft (C-390) under
technical, market and economical-financial
evaluation.
Defense & Government Defense & Government
Aviation ServicesAviation Services
• Three new Embraer Service under construction
in the US and another one in France.
• Investments in spare parts inventory and
expansion of warehouses in Singapore and
Beijing.
• Embraer and CAE established Embraer CAE
Training Services, LLC (ECTS) - for flight and
ground crew training of Phenom 100 and 300
jets.
Number of EmployeesNumber of Employees
23,86623,734
19,265
14,65812,94112,227
11,04810,3348,302
6,737
4,4943,8494,319
16,953
6,087
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Feb/08
BRAZIL 21,063*
USA 625 CHINA 276
FRANCE 214 SINGAPORE 34
* ELEB employees included
PORTUGAL 1,654
April / 97 was the lowest level of employment – 3,200 peopleDec / 94 Embraer was privatized
Qualified PeopleQualified People
Educational LevelEducational Level
Ph.D.2%
Graduate25%
Postgraduate4%
High School69%
Total Engineers - 4.148
Qualified PeopleQualified People
US$ 120 million invested on training and qualification in the paUS$ 120 million invested on training and qualification in the past four yearsst four years
US$ Million
20,425,4
29,6
45,4
2004 2005 2006 2007
Employee BenefitsEmployee Benefits
Salaries.................................R$ 1,255 millionSalaries.................................R$ 1,255 million
Variable Remuneration........R$ 131 million*Variable Remuneration........R$ 131 million*
Benefits.................................R$ 207 millionBenefits.................................R$ 207 million
BenefitsBenefits
Meals16%
Health Insurance
46%Transportation
16%
Retirement15%
Others5%
Life Insurance2%
*data base reference 2007*data base reference 2007
Results & Results &
PerformancePerformance
Jet DeliveriesJet Deliveries
148 141 130
169
2004 2005 2006 2007
Net Revenue by SegmentNet Revenue by Segment
2006 2007
Others
3.1%Aviation
Services
12.8%
Executive
Aviation
15.5%
Defense and
Government
6.0%
Commercial
Aviation
62.6%
Others
3.0%Aviation
Services
10.0%Executive
Aviation
16.0% Commercial
Aviation
64.4%Defense and
Government
6.6%
Net Revenue by MarketNet Revenue by Market
2006 2007
Brazil
4%
Europe
22%
Others
17%
The
Americas
57%
Brazil
4%
Europe
24%
The
Americas
58%
Others
14%
Net RevenueNet Revenue
US$ Million
3,352 3,789 3,760
5,245
25.3%
22.5%
27.7%30.3%
2004 2005 2006 2007
Net Revenue Gross Margin
1,110
832
1,428
1,875
23.4%
21.8%21.8%22.7%
1Q07 2Q07 3Q07 4Q07
Net Revenue Gross Margin
Income from OperationsIncome from Operations
US$ Million
31.215.5
230.2
178.8
9.5%
16.1%
2.8%1.9%
1Q07 2Q07 3Q07 4Q07
Income from Operations Margin
456343
510544
13.5%
16.2%
9.1% 8.7%
2004 2005 2006 2007
Income from Operations Margin
Net IncomeNet Income
US$ Million
67.3
26.2
194.9 200.9
10.7%
13.6%
6.1%
3.1%
1Q07 2Q07 3Q07 4Q07
Net Income Net Margin
489390
446380
9.3%
11.3%
10.4%
11.8%
2004 2005 2006 2007
Net Income Net Margin
Accounts Receivable Accounts Receivable Costumer and Commercial FinancingCostumer and Commercial Financing
US$ Million
280455
300
408
280
207
333328
362380
394
35
2004 2005 2006 2007
Accounts Receivable CCF A/c Leasing/Remarketing
InventoriesInventories
US$ Million
1,428 1,478
2,047
2,491
2004 2005 2006 2007
IndebtednessIndebtedness
Total Debt: US$ 1,753 Million
Loans Average Maturity: 3 years and 5 months• Average Cost in R$ = 8,03% p/y
• Average Cost in US$ = Libor + 1,64% p/y
Short
Term
53%
Long
Term
47%
Foreign
Currency
55%
Brazilian
Currency
45%
Net Cash (Debt)Net Cash (Debt)
US$ Million
22
360
740
416
2004 2005 2006 2007
Backlog and Backlog and
DeliveriesDeliveries
Order BacklogOrder Backlog
US$ Billion
18.8 14.8
10.4 10.1
26.0
18.2
13.6 17.5
2004 2005 2006 2007
24.0
33.0
44.8
27.6
Firms Options
Aircraft Deliveries ForecastAircraft Deliveries Forecast
E* - Estimated
ERJ, E-Jet, Legacy 600 and Lineage 1000 Phenom 100 / 300
169
131101
148 141 130
195/200 E*
10/15 E*
120/150 E*
2002 2003 2004 2005 2006 2007 2008 2009
Investments Investments
andand
ProductivityProductivity
InvestmentsInvestments
US$ Million
88
213
45
113
239
7351
93
2004 2005 2006 2007
PP&E R&D
Investments ForecastInvestments Forecast
US$ Million
R&D
2007 2008 2009Commercial Aviation 45 48 55
Executive Aviation 129 123 127
Technology Development 59 72 70
TOTAL 233 243 252
Defense and Government 21 54 102
PP&E
2007 2008 2009
TOTAL 221 330 270
Revenue per EmployeeRevenue per Employee
US$ Thousand
243
233
213
231
2004 2005 2006 2007
Corporate Corporate
GovernanceGovernance
Capital StructureCapital Structure
Common (Voting) Shares: 740,465,044Common (Voting) Shares: 740,465,044
UNIÃO 0,3%
BOVESPA 45,1%
NYSE 54,6%
Thornburg
Investment
5,0%União
0,3%
BNDSPAR
5,0%
Grupo Bozano
8,5%NYSE Outros
41,6%
Janus Capital
8,0%BOVESPA
Outros
17,7%
PREVI
13,9%
Market ValueMarket Value
US$ Billion
6.0 7.0
7.7 7.4 8.4
2004 2005 2006 2007 Mar 2008
DividendsDividends
US$ Million
151
249187204
50.8%
39.0%
63.0%
53.7%
2004 2005 2006 2007
Dividends Pay-Out Ratio
Yield 4.11% 2.73% 1.74% 3.05%
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ER
JD
OW
JON
ES
Investor Relations Investor Relations Phone: +55 12 3927 4404Phone: +55 12 3927 4404
[email protected]@embraer.com.br
www.embraer.comwww.embraer.com
