IMD 022-A11

March 25th, 2011

Luiz Carlos Aguiar

CEO

Embraer Day 2011

EMBRAER PROPRIETARY INFORMATION2IMD 022-A11

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.

EMBRAER PROPRIETARY INFORMATION3IMD 022-A11

Retrospective 2010 – Embraer Defense

Advanced Training and

Light Attack

Transport of Authorities

ISR (Intelligence, Surveillance and Reconnaissance)

Modernization Programs

Military Tactical Transport

Services

� AEW India

� New customer: Indonesian Air Force

� Deliveries to Panama and Thailand (Royal Thai Navy)

� Customer services business expansion

� Additional batch of 11 F-5 (Brazilian Air Force)

� New overhaul contract for 43 AMX

� Program on-going, on schedule

� Strategic partners

� 60 airplanes (letter of intentions)

EMBRAER PROPRIETARY INFORMATION4IMD 022-A11

Retrospective 2010 – Embraer Defense

Advanced Training and

Light Attack

Transport of Authorities

ISR (Intelligence, Surveillance and Reconnaissance)

Modernization Programs

Military Tactical Transport

Services

2010

� US$ 670 M in revenues

� More than US$ 3 bi in backlog

� 12.6% of participation in the Embraer S.A. results

A very special year, ending up with

the creation of Embraer Defense

and Security corporate unit

A very special year, ending up with

the creation of Embraer Defense

and Security corporate unit

EMBRAER PROPRIETARY INFORMATION5IMD 022-A11

Embraer Defense and Security

� Embraer Defense and Security: a new Embraer company established on 1st January 2011

� Revenues around US$ 750 million including services (est. 2011)

� 1,436 employees

� More than 30 Armed Forces operating our products and systems in 41 years of Embraer’sexistence

EMBRAER PROPRIETARY INFORMATION6IMD 022-A11

Embraer Defense and Security Approach

� To build a leadership position and to act as the main prime contractor in the Brazilian Defense and Security Industry Base

� To expand the portfolio of products, services and technologies through a combination of organic growth and acquisitions

� To diversify our target markets and our customer base

EMBRAER PROPRIETARY INFORMATION7IMD 022-A11

C2 World Cup

Estimate: US$ 0.5 bi

Comprising sensors, communication networks and

operation center to integrate all organizations involved

Uses part of Air Defense system

Brazilian Army Priorities

SISFRON

Integrated Borders Monitoring System

Estimate: US$ 4 bi

Comprising radars, communication networks, C4I, unmanned air vehicles

(UAV) and armored vehicles

Air Defense

Estimate: US$ 2 bi

Comprising radars, weapons, communication networks and

operation centers

Also used for protection of big events, like 2014 World Cup

Upcoming big events: 2014 World Cup and 2016 Olympic Games

Safety requirements driving some of Brazilian Army Priorities

EMBRAER PROPRIETARY INFORMATION8IMD 022-A11

Main company in the industry’s productive chain in Brazil

• Other Brazilian companies

• Equipment suppliers

• Solutions development

Foreign Companies

Brazilian construction companies

SISFRONIntegrated Borders

Monitoring System

Air Defense

C2 World Cup

Brazilian

Government

Projects

Brazilian priority supplies

• Brazilian supply chain strengthening• Technology development and retention

• Finance structuring• Highly qualified employment generation

• Technological spin-off

Main

Contractors

Supply of complementary

foreign equipment

Supply of base infrastructure

• Fincantieri (Italy)• Finmeccanica (Italy)• Thales (France)• Elbit (Israel)• IAI (Israel)• BAE Systems (UK)• DCNS (France)• Boeing (USA)• Rockwell Collins (USA)• Indra (Spain)• Saab (Sweden)• ....• Prime contractor

• Project management

• Finance structuring

• Solutions integrator

• Development and retention of technologies

• Services and logistics

Main Brazilian Defense and Security Company:

EMBRAER PROPRIETARY INFORMATION9IMD 022-A11

Angola

Belgium

Brazil

Niger

France

Gabon

India

Paraguay

Mexico

Peru

Chile

Colombia

Honduras

Uruguay

Argentina

Greece

Italy

Nigeria

EcuadorEquatorial Guinea

Pakistan

Thailand

Dominican Rep.

Panama

Embraer Defense and Security Worldwide Presence

United States United Kingdom¹

Kuwait¹

Mauritania

Kenya¹

Togo

Ref.: March, 2011

Germany

Portugal

Spain

Sweden

Luxembourg

Chad

Libya

Egypt

Tunisia

Embraer Defense and Security is present in more than 40 countries.Embraer Defense and Security is present in more than 40 countries.Note: Including OGMA and Orbisat customer base.

Canada

Switzerland

Venezuela

Indonesia

EMBRAER PROPRIETARY INFORMATION10IMD 022-A11

Super Tucano

Ref.: March, 2011

� Firm orders: 180 aircraft

� Brazil: 99

� Colombia: 25

� Dominican Republic: 8

� Chile: 12

� Ecuador: 18

� Indonesia: 8

� XE Aviation: 1

� Undisclosed: 9

� Deliveries: 152 aircraft

� To be delivered: 28 aircraft

� Prospects:

� Latin America

� South East Asia

� USA

� Africa

EMBRAER PROPRIETARY INFORMATION11IMD 022-A11

Embraer ISR Systems

� 18 aircraft:

�Brazilian Air Force: 8

�Hellenic Air Force: 4

�Mexican Air Force: 3

�DRDO/CABS (India): 3

� 15 aircraft in operation (Ref.: March, 2011)

� Prospects:

� South and South East Asia

� Middle East

� South America

EMBRAER PROPRIETARY INFORMATION12IMD 022-A11

� Roll-out / aircraft presentation: 21 Feb 2011

� First flight: 1S2011

� First delivery : 2S2011

EMB 145 AEW&C India

EMBRAER PROPRIETARY INFORMATION13IMD 022-A11

Modernization programs

Brazilian Air Force – F-5M

• 46 aircraft

• 41 already delivered

• Additional batch of F-5s contracted (11 aircraft)• 12 aircraft

• Two prototypes at GPX-CS

Brazilian Navy – A-4

Ref.: March 2011

• 43 aircraft

• Three prototypes in ground and flight tests

• A-1 revitalization contract signed

Brazilian Air Force – A-1M

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� New tactical military transport and tanker aircraft

� Towards the end of the “Initial Definition Phase”

� Focused on risk mitigation

� Partnership definition and suppliers selection

� Concept detailing and preparation for JDP (Joint Definition Phase)

EMBRAER KC-390 Program Update

KC-390 model for the wind tunnel test

Armoured vehicle inside the KC-390 volumetric mock-up

� DRS Defense Solutions was selected for the design, development, testing and production of the KC-390 Cargo Handling and Aerial Delivery System (CHS/ADS)

� Other four suppliers for critical systems already selected and will be announced very soon.

Suppliers selection

EMBRAER PROPRIETARY INFORMATION15IMD 022-A11

EMBRAER KC-390 Strategic partnership

Three partnerships will be concluded in the short termThree partnerships will be concluded in the short term

Brazil (28)

Chile (6)

Colombia (12)

Czech Republic (2)Portugal (6)

Argentina (6)

Ref.: December, 2010

EMBRAER PROPRIETARY INFORMATION16IMD 022-A11

Embraer Defense and Security Results

Backlog evolution

1.5

1.01.1

3.2 3.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2006 2007 2008 2009 2010

US

$ B

illi

on

s

EMBRAER PROPRIETARY INFORMATION17IMD 022-A11