embraer march 2015 book ri (1)

This information is property of Embraer and can not be used or reproduced without written permission. MARCH 2015

+55 12 3927 4404 | [email protected] | www.embraer.com

This information is property of Embraer and can not be used or reproduced without written permission. 2

CORPORATE AND BUSINESS STRATEGY

• ORGANIC GROWTH • MARGINS ENHANCEMENT THROUGH THE P3E • BUSINESS AND REVENUES DIVERSIFICATION

• ORGANIC GROWTH AND ACQUISITIONS • ESTABLISH EMBRAER AS THE DEFENSE HOUSE OF BRAZIL

• PRODUCT STRATEGY • DIVERSIFICATION AND EXPANSION OF CUSTOMER BASE • EXCELLENCE IN CUSTOMER EXPERIENCE (ECE)

• MARKET SHARE GROWTH • MARGINS IMPROVEMENT • PRODUCT STRATEGY AND CUSTOMER SUPPORT FOCUS

This information is property of Embraer and can not be used or reproduced without written permission.

FIRM ORDER BACKLOG

US$ BILLION

18.2 19.2 18.1

22.1 20.9

4Q13 1Q14 2Q14 3Q14 4Q14

3

COMMERCIAL AVIATION

DEFENSE & SECURITY

EXECUTIVE AVIATION


AIRCRAFT DELIVERIES

LARGE JETS - LEGACY & LINEAGE LIGHT JETS - PHENOM

2014 DELIVERIES OUTLOOK • 92 - 97 E-JETS • 25 - 30 EXECUTIVE LARGE JETS • 80 - 90 EXECUTIVE LIGHT JETS

4

101 105 10690 92

2010 2011 2012 2013 2014

19 16 22 29 24

126

83 77 90 92

2010 2011 2012 2013 2014


NET REVENUES

2014 OUTLOOK: US$ 6.0 – 6.5 BILLION

5,3645,791 6,167 6,235 6,289

2010 2011 2012 2013 2014

US$ MILLION


24% 29%

48%

31% 22%

14%

14% 21%

21%3%8%

3%14%

6%4%5% 9% 4%

9% 5% 6%

2012 2013 2014

61%53% 50%

21%27%

26%

17% 19% 23%

1% 1% 1%

2012 2013 2014

REVENUES BREAKDOWN

NET REVENUES BY SEGMENT NET REVENUES BY REGION

COMMERCIAL AVIATION

EXECUTIVE AVIATION OTHERS

DEFENSE & SECURITY

Revenues US$ Billion 6.17 6.24 6.29

Revenues US$ Billion 6.17 6.24 6.29

NORTH AMERICA BRAZIL

EUROPE

ASIA PACIFIC

SOUTH & CENTRAL

AMERICA AFRICA &

MIDDLE EAST

CHINA

6


OVER 80 AIRLINES IN MORE THAN 50 COUNTRIES

EMBRAER COMMERCIAL AVIATION

8


capacity: 70 to 80 seats range: 2,100nm (3,900Km)




PRODUCT PORTFOLIO

capacity: 37 seats range: 1,750nm (3,250Km)




9


E-JETS CUSTOMER BASE EVOLUTION

1999-2000 2001-2002 2003-2004 2005-2006 2007-2008 2009-2010 2011-2014

2 4 14 27 50 55 65 Customers/ Operators

110 118

343

619

876

947

1,549

1,549 ACCUMULATED FIRM ORDERS

10

Source: Embraer (Dez/14 – Commercial Airlines and Leasing Co.)


E-JETS Firm orders Deliveries Firm Backlog

E170 193 188 5

E175 421 249 172

E190 580 515 65

E195 145 138 7

E175-E2 100 - 100

E190-E2 60 - 60

E195-E2 50 - 50

Total 1,549 1,090 459

11

E-JETS FAMILY ORDER BOOK – 4Q14


15%

24%61%

Latin America

Asia Pacific & China

E-JETS CUSTOMER BASE BY BUSINESS MODEL

FIRM ORDERS

COMMERCIAL JETS – NET ORDERS MARKET SHARE

Considering Accumulated Net Orders

70-130 SEATS JETS

BACKLOG

North America

Regional Airlines

Network Airlines

Low Cost Carriers

12%7%

25%

19%

37%

17%2%

5%

3%73%

12

WORLDWIDE DISTRIBUTION

(% OF E-JETS FLEET+BACKLOG)

Europe & CIS

Middle East & Africa


helping airlines to be more efficient

13

E-JETS DEPLOYMENT

48%

25%

7%

20%

North America

39%

11%

14%

36%

Europe/CIS

76%

16%

5%3%

Africa/Middle East40%

46%

5%9%

Asia Pacific

45% 28% 7% 20%WORLD

RIGHT-SIZING NEW MARKETS REPLACEMENT OF OLD JETS

NATURAL GROWTH

36%

40%

6%

18%

Latin America

12%

64%

24%

China


• REPLACEMENT OF OLD/INEFFICIENT JETS

• RIGHT-SIZING OF NARROW-BODY OPERATIONS

• HUB FEEDER AND POINT-POINT OPERATION IN LOW AND MID-DENSITY MARKETS

• REGIONAL AVIATION DEVELOPMENT

AROUND 6,250 JET DELIVERIES (70-130 SEATS) IN THE NEXT 20 YEARS (US$ 300 BI)

14

PROJECTED DELIVERIES - JETS MARKET SEGMENT

(SEATS) 2014 – 2033

DELIVERIES

70 - 90 2,300

90 - 130 3,950

70 -130 6,250

EMBRAER MARKET FORECAST (2014 – 2033)

NORTH AMERICA

2,010 32%

LATIN AMERICA

700 11%

AFRICA

230 4%

EUROPE

1,140 18%

MIDDLE EAST

250 4%

CIS

380 6%

CHINA

1,020 17%

ASIA PACIFIC

520 8%


COMPETITIVE SCENARIO 70-130 SEATS

130

120

110

100

90

80

70

SSJ95/100

MRJ90

ARJ21 CRJ900

CRJ1000

CRJ700

CAPACITY (SINGLE CLASS)

737-7 MAX A319 NEO

CS100

CS300

E-195

E-190

E-175

E-170


RIGHT CAPACITIES TO MATCH MARKET DEMAND

70

80

90

100

110

120

130

+4 SEATS

SAME

+14 SEATS

20%

20% E190-E2

E195-E2

E175-E2

17

capacity: 120-136 seats range: 2,000nm




E175-E2

NEW WING More efficient, high aspect ratio

metallic wing. Raked wing tip.

IMPROVED AVIONICS 4 larger 13”x10” displays and touchscreen controls

MAIN LANDING GEAR Enabling larger engines. Gear doors

for improved fuel efficiency

OPTIMIZED WING/ENGINE DIFFERENT WING AND ENGINE COMBINATIONS FOR E175-E2 AND E190/195-E2

NEW ENGINES Larger fan diameter and improved fuel efficiency

18

E2 NEW FEATURES – NOT JUST A RE-ENGINE

E190-E2 & E195-E2


• HIGHEST COMMONALITY AMONG

E-JETS E2 MODELS (AAA)

• FULL FLIGHT SIMULATOR OR HIGH - LEVEL

FLIGHT TRAINING DEVICE NOT REQUIRED

• FEWER THAN 3 DAYS TRANSITION

TRAINING BETWEEN THE TWO E-JET

GENERATIONS

19

E-JETS & E-JETS E2 PILOT COMMONALITY

• SAME TYPE RATING COMMONALITY

BETWEEN E-JETS E2 AND CURRENT E-JETS

FAMILY (CCC)


E-JETS E2 SUPPLIERS

PACIS

Fuel System Water & Waste

Pax Oxygen

Crew Oxygen

External Lights

Hydraulic Pumps

Cabin Management Sys Cabin Lights

Emergency Battery Passenger Service Unit

Control Wheel Column-by-Wire Control Pedals

Avionics

Powerplant / APU

Flight Controls

E-bay Cooling Sensors Fans package

Recirculation Filter

AMS

LG Controls

Pilots Seats Observer Seat

FA seats

Cockpit Printer

Cockpit Lighting

Vertical and Horizontal Tail

Doors (Pax, Service & OWE)

Spoilers / Ailerons

Center III, Rear Fuselage Rudder, Elevator, Insulation

Wheels & Brakes APU Electrical System

(Generation, Distribution, Emergency, Batteries e Converters)


FUEL BURN PER SEAT

E175-E2 (80 seats) vs. E175 (76 seats)



-16%

-24%

-16%

0%

-5%

-10%

-15%

-20%

-25%

Target values for 600 nm sector; Dual Class configuration;

21

FUEL BURN IMPROVEMENTS


180+

160

140

120

100

80

SSJ95/100

MRJ90 ARJ21 CRJ900

CRJ1000

CRJ700

CAPACITY (SINGLE CLASS)

737-7 MAX A319neo

A320neo

737-8MAX

CS100

CS300

E175-E2

E190-E2

E195-E2

22

NEW COMPETITIVE SCENARIO


• EMBRAER INVESTMENT ON RESEARCH, DEVELOPMENT AND

CAPEX FOR THE E-JETS E2 FAMILY WILL BE US$ 1.7 BILLION

• INVESTMENT WILL BE SUPPORTED BY EMBRAER’S CASH

GENERATION AND DEBT

• INVESTMENTS SPAN FROM 2013 - 2020 WITH MORE

CONCENTRATION IN 2014 - 2017

23

PROGRAM INVESTMENT


Preliminary Information as of January, 2013 -- US$ 3.3/USGal, 10 years NPV @ 9% rate

BETTER FUEL CONSUMPTION GAIN • E175 E2: US$ 4.8M • E190 E2: US$ 7.0M • E195 E2: US$ 6.5M

MAINTENANCE COST REDUCTION GAIN • US$ 1.0~1.5M

E175

AR (8E5): 42.9

E190 AR (10E5):47.4

E195 AR (10E5): 50.1

E-Jets

E175-E2 46.8

E190-E2 53.6

E195-E2 60.4

delta: 3.9 M

delta: 6.2 M

delta: 10.3 M

E-Jets E2

SEAT CAPACITY INCREASE GAIN • E175 E2: US$ 1.6M (4 SEATS) • E195 E2: US$ 4.8M (14 SEATS)

24

LIST PRICES (US$ MILLION)


PROGRAM UPDATE

E190-E2 • FIRST METAL CUT IN OCTOBER 2014

E195-E2 • JOINT DEFINITION PHASE ON GOING • MORE THAN 80% OF PRELIMINARY

DESIGN REVIEWS PERFORMED

E175-E2 • PRELIMINARY STUDIES PHASE CONCLUDED • INITIAL DEFINITION PHASE CONCLUDED • JOINT DEFINITION PHASE STARTED


E195-E2 | EIS 2019

E190-E2 | EIS 1H2018

E175-E2 | EIS 2020

210 Firm Orders 380 Commitments

26

E2 ENTRY INTO SERVICE

590 E-JETS E2


NEARLY 850 JETS IN SERVICE IN MORE THAN 50 COUNTRIES

28

EMBRAER EXECUTIVE JETS


PRODUCT PORTFOLIO

LARGE

AIRCRAFT MODEL SEATS /RANGE

up to 8 occupants/ 1,178 nm

up to 11 occupants/ 1,971 nm

7 to 9 passengers/ 2,300 nm




ENTRY

LIGHT

MID-LIGHT

MID-SIZE

ULTRA-LARGE

SUPER MID-SIZE

Certified: 2008

Certified: 2009

UNDER DEVELOPMENT

Certified: 2001

Certified: 2008

ULTRA-LONG RANGE

COMPETITORS

• Cessna - Mustang/M2 • HondaJet

• Cessna - CJ2+/CJ3/CJ4 • Bombardier - Learjet 40XR/70

• Bombardier - Learjet 45XR/75 • Cessna - XLS+/Latitude

• Bombardier - Learjet 85 • Cessna - Sovereign • Gulfstream - G150

• Bombardier - CL605/GL5000 • Dassault - Falcon 2000LXS/

900LX • Gulfstream - G350/G450

• Airbus - ACJ 318/319/320 • Boeing - BBJ/BBJ2/BBJ3


Certified: 2010

• Bombardier - GL6000/GL7000/ GL8000

• Gulfstream - G500/G550/G650/ 650ER

• Dassault - Falcon 7X/8X

• Bombardier - CL300/CL850 • Cessna - X/Longitude • Dassault - Falcon 2000S • Gulfstream - G280

Certified: 2014


DELIVERIES SHARE (UNITS) REVENUES SHARE (US$ BI | B&CA LIST PRICES)

MARKET DELIVERIES 2014: 705 UNITS

EMBRAER DELIVERIES: 116 UNITS

BOMBARDIER

MARKET REVENUES 2014: US$ 21.9 BILLION

EMBRAER REVENUES: US$ 1.6 BILLION

30

MARKET SHARE

HAWKER-BEECH DASSAULT

CESSNA GULFSTREAM OTHERS


MARKET DRIVERS


0%

4%

8%

12%

16%

20%

24%

28%

0

500

1000

1500

2000

2500

3000

3500

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

% o

f ac

tive

fle

et

Un

its

Fleet older than 10 yrs Fleet from 6 to 10 yrs

Fleet up to 5 yrs Positions

Fleet up to 5 yrs and positions Total fleet % for sale

Up to 10 yrs % for sale

32

BUSINESS JETS PRE-OWNED MARKET INVENTORY

Source: Jetnet and Embraer analysis, January 2015

10.7% 2,140 jets

7.3% 625 jets


IMPROVED ECONOMIC ENVIRONMENT IN US MAY DRIVE MARKET TURNAROUND

33

MARKET RECOVERY IN SLOW MOTION

US 2015 GDP EXPECTED ABOVE 3.0%

LOW OIL PRICE GENERATING OPPORTUNITIES

US CORPORATE PROFITS AND HNWI AT RECORD LEVELS

NEW PRODUCTS ENTERING INTO SERVICE

TRAFFIC RECOVERY ON TRACK IN US BUT SLOWER THAN EXPECTED IN EU

PRE-OWNED AIRCRAFT PRICES STABILIZED

EUROPEAN MARKETS CONTINUE AT RISK; SOFTENING EMERGING MARKETS DEMAND


0

200

400

600

800

1000

1200

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

9,250 JETS AND US$ 250 BI IN THE NEXT 10 YEARS

UNITS US$

900 4.2

1,780

15.8

1,140

17.3

920

17.8

1,270

31.1

1,670

64.7

1,345

82.2

225 17.3

Deliveries Revenues

N10YF

Deliveries Forecast (units)

Ultra Large

Ultra Long Range

Large

Supermid

Midsize

Midlight

Light

Entry

34

2014-2023 MARKET FORECAST


NORTH AMERICA 4,620 a/c (50%) US$ 120 Bi (45%)

EUROPE, MIDDLE EAST & AFRICA 2,360 a/c (26%) US$ 77 Bi (29%)

ASIA PACIFIC 570 a/c (6%) US$ 19 Bi (7%)

LATIN AMERICA 850 a/c (9%) US$ 16 Bi (6%)

CHINA 835 a/c (9%) US$ 33 Bi (12%)

WORLDWIDE 9,250 units US$ 265 Bi

35

2015-2024 MARKET FORECAST BY REGION

Note: sum of regional numbers might differ from total numbers due to rounding Source: Embraer Analysis


NEARLY 70 SERVICE CENTERS WORLDWIDE.

EMBRAER SERVICE CENTER

AUTHORIZED SERVICE CENTER

36

SERVICE CENTER NETWORK


OVER 50 ARMED FORCES

38

EMBRAER DEFENSE & SECURITY


INTEGRATED PORTFOLIO

LIGHT ATTACK AND ADVANCED TRAINING

TACTICAL MILITARY TRANSPORT

ISR (INTELLIGENCE, SURVEILLANCE AND RECONNAISSANCE)

UAVs RADAR C4I LAND SYSTEMS SERVICES

39

SATELLITE

TRANSPORT AIRCRAFT MODERNIZATION PROGRAMS


COMMAND AND CONTROL SYSTEMS

AIR TRAFFIC

MANAGEMENT CONTROL

SYSTEMS OF

SYSTEMS

C4I

UAVS

SIMULATORS

MODERNIZATION OF AVIONICS

SYSTEMS

LAND DEFENSE SYSTEMS

INTEGRATION

SISFRON

IMPLEMENTATION

MRO

AERO

STRUCTURES

REMOTE SENSING

AERIAL

SURVEILLANCE RADAR

SATELLITE GEOSTATIONARY OF

DEFENSE AND COMMUNICATIONS

(SGDC)

100% 51% 65% 90% 100% 51%

40

PARTNERSHIPS

UAVs RADAR C4I LAND SYSTEMS SERVICES SATELLITE


REVENUES EVOLUTION (US$ MILLION) BACKLOG EVOLUTION (US$ BILLION)

41

EMBRAER DEFENSE & SECURITY RESULTS

REVENUES PARTICIPATION (%)


BRAZIL: 99

COLOMBIA: 25

DOMINICAN REPUBLIC: 8

CHILE: 12

ECUADOR: 18

INDONESIA: 16

GREYSTONE (TACAIR): 1

MAURITANIA: 2

BURKINA FASO: 3

ANGOLA: 6

USA: 20

TOTAL MARKET FORECAST: 300 AIRCRAFT / US$ 3.5 BILLION

800

2,000700

MEDIUM-TERM

LONG-TERM

SHORT-TERM

ADDRESSABLE MARKET FORECAST 2020 (US$ MILLION)

PARTNERSHIP WITH BOEING TO PROVIDE WEAPONS INTEGRATION, INCREASING CAPABILITIES OF THE AIRCRAFT.

• FIRM ORDERS: MORE THAN 210 AIRCRAFT • OVER 190 AIRCRAFT DELIVERED

42

SUPER TUCANO


• A new tactical military transport and tanker aircraft

• Partnership with Boeing to share technical knowledge and to market and sell the KC-390 in certain markets

• Six countries letters of intent, totalizing 60 aircraft

• FAB and Embraer signed the series production contract for 28 KC-390

• First flight in February 2015

TOTAL MARKET FORECAST 2025: 700 AIRCRAFT / US$ 50+ BI

43

EMBRAER KC-390

BRAZIL (28)

COLOMBIA (12)

ARGENTINA (6)

CHILE (6)

PORTUGAL (6)

CZECH REP. (2)


BRAZILIAN NAVY A-4 12 aircraft

BRAZILIAN AIR FORCE A-1M 43 aircraft

3 delivered

BRAZILIAN AIR FORCE F-5M 46 aircraft + 7 aircraft (2nd batch)

46 delivered

BRAZILIAN AIR FORCE E-99 5 aircraft EMB 145 AEW&C

A-4

ADDRESSABLE MARKET FORECAST 2025 (US$ MILLION)

TOTAL MARKET FORECAST: 228 AIRCRAFT / US$ 1.5 BILLION

437

567

505MEDIUM-TERM LONG-TERM

SHORT-TERM

44

MODERNIZATION PROGRAMS


SISFRON Integrated Borders Monitoring System

First phase: US$ 420 Million

Total estimate: US$ 4 Billion

Comprising radars, communication networks, C4I, unmanned air vehicles (UAV) and armored vehicles

SATELLITE Estimate: US$ 400 Million

Participation in the first Brazilian Geostationary Satellite

Ref. dec/12

SENS59%

COMM

9%

UAV12% SW

20%

45

BRAZILIAN ARMY PRIORITIES


2015 OUTLOOK


EBITDA MARGIN 12.0% – 13.0%

NET REVENUES

EBITDA

US$ 6.1 – 6.6 BILLION

US$ 730 – 860 MILLION

EBIT MARGIN 8.0% – 8.5%

EBIT US$ 490 – 560 MILLION

FCF > (US$ 100) MILLION*

47

2015 CONSOLIDATED OUTLOOK

* FCF USE OF LESS THAN US$ 100 MILLION.


2015 BUSINESS UNITS OUTLOOK

48

18% OF NET REVENUES

2% OF NET REVENUES

28% OF NET REVENUES

52% OF NET REVENUES

DELIVERIES: 95 TO 100 E-JETS

US$ 100 MILLION

US$ 1.70 – 1.85 BILLION

US$ 1.10 – 1.25 BILLION

OTHER REVENUES

US$ 3.20 – 3.40 BILLION

DELIVERIES: 80 TO 90 LIGHT JETS 35 TO 40 LARGE JETS


TOTAL INVESTMENTS: US$ 650 MILLION

RESEARCH US$ 50 MILLION

DEVELOPMENT US$ 300 MILLION

CAPEX US$ 300 MILLION

49

2015 INVESTMENT OUTLOOK


FINANCIAL RESULTS


NET REVENUES - US$ MILLION SG&A EXPENSES - US$ MILLION

51

NET REVENUES | SG&A EXPENSES

2014 OUTLOOK: US$ 6.0 – 6.5 BILLION

SELLING EXPENSES G&A EXPENSES

2,304

1,242

1,761

1,240

2,046

4Q13 1Q14 2Q14 3Q14 4Q14

2014: 6,289

11392

11599

113

52

48

5352

55

4Q13 1Q14 2Q14 3Q14 4Q14

168 151

140

165 168

2014: 627


INCOME FROM OPERATIONS (EBIT) | EBITDA

EBIT - US$ MILLION EBITDA - US$ MILLION

2014 OUTLOOK: EBIT: US$ 540 – 620 MILLION

EBIT MARGIN: 9.0% – 9.5%

2014 OUTLOOK: EBITDA: US$ 780 – 910 MILLION

EBITDA MARGIN: 13.0% – 14.0%

EBIT EBIT MARGIN EBITDA EBITDA MARGIN EXCLUDING AMR EFFECT

463

92 187

68

196

20.1%

7.4%10.6%

5.5%

9.6%

4Q13 1Q14 2Q14 3Q14 4Q14

2014: 543 | 8.6%

316

13.7%

544

151261

136

281

23.6%

12.2%14.8%

11.0%13.8%

4Q13 1Q14 2Q14 3Q14 4Q14

2014: 830 | 13.2%

17.3%

397


NET INCOME - US$ MILLION FREE CASH FLOW - US$ MILLION

FREE CASH FLOW

ADDITIONS TO PP&E NET CASH GENERATED (USED) BY OPERATING ACTIVITIES*

ADDITIONS TO INTANGIBLE

* Net of Financial assets adjustment

53

NET INCOME | FREE CASH FLOW

NET MARGIN NET INCOME

2014: (404) 2014: 335 | 5.3%

265

111 143

(11)

91

11.5%8.9% 8.1%

-0.9%

4.5%

4Q13 1Q14 2Q14 3Q14 4Q14


INDEBTEDNESS PROFILE | NET CASH

96% 96% 96% 96% 96%

4% 4% 4% 4% 4%

6.25.9 5.7 5.6 5.4

4Q13 1Q14 2Q14 3Q14 4Q14

INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION

LONG-TERM SHORT-TERM LOANS AVERAGE MATURITY (YEARS)

TOTAL DEBT 4Q14: US$ 2.51 BILLION TOTAL CASH 4Q14: US$ 2.42 BILLION

429

53

(114)

(327)

(85)

4Q13 1Q14 2Q14 3Q14 4Q14


INVENTORIES

US$ MILLION

2,1982,288

2,1572,287

2,405

2010 2011 2012 2013 2014


INVESTMENTS

2014 OUTLOOK: US$ 650 MILLION

2014 OUTLOOK 2014 YTD

US$ MILLION

47

230

153

80

320

250

RESEARCH DEVELOPMENT CAPEX

2014: 430


EPADS AND PAY OUT

EPADS PAY OUT

US$

1.83

0.62

1.92 1.88 1.82

34%

116%

26% 26% 27%

2010 2011 2012 2013 2014


NYSE52%

BM&F

BOVESPA

48%

22%

78%

InternationalShareholders

LocalShareholders

734,899,822 VOTING SHARES

58

OWNERSHIP STRUCTURE – 4Q14


CORPORATE INFORMATION


BRAZILIAN ALLIANCE FOR BIO-FUEL ISO 14001 AND OHSAS 18001 CERTIFICATIONS

1ST ETHANOL POWERED AIRCRAFT IN THE WORLD

GREENER TECHNOLOGY

SOCIAL ACTIVITIES

60

SUSTAINABILITY INITIATIVES

REFORESTATION PROJECTS

RECYCLING

CORPORATE VALUES

http://www.cdproject.net/index.asp


E-JETS FINAL ASSEMBLY LINE TRANSFORMATION

E-JETS WING JUNCTION LINE TRANSFORMATION

Performance Indicators2008

(15 ac/month)

2009

(10 ac/month)

2012

(10 ac/month)

Number of positions 12 5 4

Cycle time (days) 18 10 8

Work in Process

(US$ Mi)212 95 68

Number of non-

conformity per a/c32 1.7 0.76

Overtime

(% of work hours)10 1.5 0

61

P3E – LEAN RESULTS


KAIZEN - E-JETS CYCLE REDUCTION COST OF NON QUALITY REDUCTION

57%

40% REDUCTION ON THE PRODUCTION CYCLE

40%

44% REDUCTION ON CNQ

62

P3E – LEAN RESULTS


COST: US$ 29.0 MILLION

BENEFIT: US$ 268.4 MILLION

63

“BOA IDEIA” PROGRAM EVOLUTION


INVESTOR RELATIONS

PHONE: +55 12 3927 4404 [email protected]

WWW.EMBRAER.COM


This presentation may contain forward-looking statements, projections and estimates regarding circumstances

or events yet to take place, including, but not limited to, those statements relating to guidance. These forward-

looking statements are based largely on current expectations, forecasts of future events and industry and

financial trends that affect Embraer’s businesses. These statements are subject to risks, uncertainties and

assumptions that include, among others: general economic, political and trade conditions, both in Brazil and in

those markets where Embraer does business; management’s expectations and estimates concerning the

company’s future financial performance; plans and objectives of our management; financing plans and

programs, and the effects of competition; industry trends and growth opportunities; inflation and fluctuations

in exchange rates; the company’s investment plans; Embraer’s operating efficiencies and synergies and its

capacity to develop and deliver products on the dates previously agreed upon; results of operation; business

strategies; benefits of new technologies and existing and future governmental regulations. To obtain further

information on factors that may lead to results different from those forecast by Embraer, please consult the

reports Embraer files with the U.S. Securities and Exchange Commission (SEC) and the Brazilian Comissão de

Valores Mobiliários (CVM) and in particular the factors discussed under “Forward-Looking Statements” and

“Risk Factors” in Embraer’s annual report on Form 20−F. The words “believe”, “may”, “will”, “estimate”,

“intend”, “continue”, “anticipate”, “expect” and other similar terms are intended to identify forward-looking

statements. Embraer does not undertake any obligation to publish updates or to revise any forward-looking

statements due to new information, future events or any other factors. In view of the inherent risks and

uncertainties, such estimates, events and circumstances may not occur. The actual results and performance of

Embraer could therefore differ substantially from those anticipated in Embraer's forward-looking statements.

65

FORWARD LOOKING STATEMENT

embraer march 2015 book ri (1)

Business