embraer march 2016 book ri

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

JANUARY 2016 +55 12 3927 4404 | [email protected] | www.embraer.com.br MARCH 2016


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

2


15.412.4

18.220.9

22.5

2011 2012 2013 2014 2015

FIRM ORDER BACKLOG

3

COMMERCIAL AVIATION DEFENSE

& SECURITY

EXECUTIVE JETS

US$ BILLION


16 22 29 2438

83 77

90 9282

2011 2012 2013 2014 2015

105 10690 92

101

2011 2012 2013 2014 2015

LARGE JETS - LEGACY & LINEAGE LIGHT JETS - PHENOM

AIRCRAFT DELIVERIES

95 - 100 E-JETS 35 - 40 EXECUTIVE LARGE JETS 80 - 90 EXECUTIVE LIGHT JETS

4

99 99

120 116 119

2015 OUTLOOK:


NET REVENUES

2015 OUTLOOK: US$ 5.8 – 6.3 BILLION

5

5,7916,167 6,235 6,289 5,928

2011 2012 2013 2014 2015

US$ MILLION


29%

48%

65%

22%

14%

11%

21%

21%

12%8%

3%2%

6%4%

4%9% 4%4%5% 6% 2%

2013 2014 2015

53% 50%56%

27%26%

30%

19% 23%13%

1% 1% 1%

2013 2014 2015

NET REVENUES BREAKDOWN

SEGMENT REGION

OTHERS

Net Revenues US$ Billion

6.24 6.29 5.93 Net Revenues US$ Billion 6.24 6.29 5.93

NORTH AMERICA BRAZIL

EUROPE

ASIA PACIFIC

SOUTH & CENTRAL

AMERICA AFRICA &

MIDDLE EAST

CHINA

6


BOARD OF EXECUTIVE OFFICERS

ETHICS COMMITTEE

FINANCIAL MANAGEMENT COMMITTEE

SUSTAINABILITY COMMITTEE

S H A R E H O L D E R S

FISCAL BOARD

ENVIRONMENTAL RISK COMMITTEE

BOARD OF DIRECTORS

INTERNAL AUDIT

AUDIT AND RISKS COMMITTEE

HUMAN RESOURCES COMMITTEE

STRATEGY COMMITTEE

COMPLIANCE

CORPORATE GOVERNANCE STRUCTURE

7


Ba1

BBB INVESTMENT GRADE SINCE JAN. 2006

EMBRAER CREDIT RATINGS

8


INDEXES & INITIATIVES

9


OVER 90 AIRLINES IN MORE THAN 60 COUNTRIES

11


70 - 80 seats 2,100nm (3,900Km)

78 - 88 seats 2,000nm (3,700Km)

98 - 114 seats 2,400nm (4,500Km)

108 - 122 seats 2,200nm (4,100Km)

PRODUCT PORTFOLIO

37 seats 1,750nm (3,250Km)

44 seats 1,650nm (3,050Km)

50 seats 1,550nm (2,900Km)

50 seats 2,000nm (3,700Km) 120-136 seats

2,450nm (4,540Km)

97-114 seats 2,800nm (5,200Km)

80-90 seats 1,920nm (3,560Km)

12


E-JETS – GLOBAL MARKET SUCCESS

1,704

ORDERS

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

513 AIRCRAFT IN BACKLOG

Source: Embraer (Dec./2015)

1,191

DELIVERIES

13


FIRM ORDERS DELIVERIES FIRM BACKLOG

193 190 3

500 331 169

578 523 55

166 147 19

100 - 100

77 - 77

90 - 90

TOTAL 1,704 1,191 513

E-JETS – ORDER BOOK 4Q15

14


DELIVERIES SHARE 70-130 SEATS JETS

E-JETS – SHARE AND REGION BREAKDOWN

15

NORTH AMERICA SHARE 76 SEAT JETS - ORDERS SINCE 2013

DELIVERIES BY REGION

BACKLOG BY REGION

LATIN AMERICA

NORTH AMERICA

EUROPE CIS

MIDDLE EAST AFRICA

ASIA PACIFIC CHINA

LATIN AMERICA NORTH AMERICA

EUROPE CIS

OTHERS

ASIA PACIFIC CHINA


COMPETITIVE SCENARIO

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

E195

E190

E170

E175

16


• REPLACEMENT OF OLD/INEFFICIENT JETS (APROX. 3,250 UNITS)

• RIGHT-SIZING OF NARROW-BODY OPERATIONS (APROX. 750 UNITS)

• REGIONAL AVIATION, NEW US OPPORTUNITIES AND LCCs (APROX. 1,100 UNITS)

EMBRAER MARKET FORECAST (2015 – 2034)

17

CHINA 1,020 JETS (16%)

MIDDLE EAST 240 JETS (4%)

ASIA PACIFIC 550 JETS (9%)

NORTH AMERICA 2,060 JETS (32%)

EUROPE 1,160 JETS (18%)

LATIN AMERICA 720 JETS (11%)

WORLDWIDE 6,350 JETS (70-130 SEATS)

US$ 300 BILLION

AFRICA 220 JETS (4%)

CIS 380 JETS (6%)


E-JETS EVOLUTION

70

80

90

100

110

120

130

+4 SEATS

SAME

+14 SEATS

20%

20%

120-136 seats 2,450nm

97-114 seats 2,800nm

80-90 seats 1,920nm

19


FUEL BURN IMPROVEMENTS

FUEL BURN PER SEAT

Target values for 600 nm sector; Dual Class configuration

E175-E2 (80 SEATS) vs E175 (76 SEATS)



-16% -16%

-24%

0%

-5%

-10%

-15%

-20%

-25%

20


MAINTENANCE COST IMPROVEMENTS

-25%

-15%

-20%




DMC PER SEAT

E175 CF34-8E5 baseline per 2011 conditions *2,600FH/Yr & 1.5FH/FC; 10 years DMC E190 CF34-10E6 baseline per 2011 conditions *2,600FH/Yr & 1.5FH/FC; 10 years DMC

0%

-5%

-10%

-15%

-20%

-25%

21


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

E2 NEW FEATURES

22

|


E195-E2 | EIS 2019

E190-E2 | EIS 1H2018

E175-E2 | EIS 2020

E2 ENTRY INTO SERVICE

23


COMMITMENTS E-JETS E2

640 COMMITMENTS

(267 FIRM)

SKYWEST, INC. 100+100 x E175-E2

AERCAP 50+50 x E190-E2 | E195-E2

AIR COSTA 50+50 x E190-E2 | E195-E2

HAINAN/TIANJIN AIRLINES 2+18 x E190-E2

ICBC LEASING 10+10 x E190-E2

AZUL 30+20 x E195-E2

TRANS STATES HOLDINGS 50+50 x E175-E2

AIRCASTLE 25 +25 x E190-E2 | E195-E2

24


NEARLY 1,000 JETS DELIVERED IN MORE THAN 60 COUNTRIES

26


SUPER-MIDSIZE

PRODUCT PORTFOLIO

ENTRY LIGHT MIDLIGHT MIDSIZE

LARGE ULTRA-LARGE

Certified 2008 Certified 2009 Certified 2015 Certified 2014

Certified 2001 Certified 2010 Certified 2008

Up to 8 occupants | 1,178 nm Up to 11 occupants | 1,971 nm 7 to 9 passengers | 2,900 nm 8 to 12 passengers | 3,125 nm

13 to 14 passengers | 3,400 nm 13 to 19 passengers | 4,600 nm 13 to 14 passengers | 3,900 nm

• Cessna - Mustang/M2 •HondaJet

• Cessna - CJ3+/CJ4 •Bombardier - Learjet 75 • Pilatus - PC-24

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

• Cessna - Sovereign+ •Bombardier - CL350 •Gulfstream - G150 •Gulfstream - G280

• Cessna - Hemisphere •Bombardier - CL650/GL5000 •Dassault - Falcon 2000LXS/900LX/5X •Gulfstream - G450/G500

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

• Cessna - X+/Longitude •Dassault - Falcon 2000S

27


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

MARKET DELIVERIES 2015: 706 UNITS

EMBRAER DELIVERIES: 120 UNITS

MARKET REVENUES 2015: US$ 22 BILLION

EMBRAER REVENUES: US$ 1.7 BILLION

MARKET SHARE

OTHERS

28

18.1 17.7 21.2 21.8 703 663 677 715 706 21.9

This information is property of Embraer and can not be used or reproduced without written permission. 29

EXECUTIVE JETS – DELIVERIES EVOLUTION

9 13 1320 27 36 38

122

145

99 99119 116 120

976

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

EMBRAER EXECUTIVE JETS DELIVERIES ACCUMULATED FLEET


0%

4%

8%

12%

16%

20%

24%

28%

0

500

1000

1500

2000

2500

3000

3500

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

% O

F A

CTI

VE

FLEE

T

UN

ITS

BUSINESS JETS PRE-OWNED MARKET INVENTORY

Source: Jetnet and Embraer analysis, December 2015

11.1% 2,280 jets

8.1% 703 jets

30

This information is property of Embraer and can not be used or reproduced without written permission. 31

FRACTIONAL SEGMENT – MARKET SHARE

0

20

40

60

80

100

120

2007 2008 2009 2010 2011 2012 2013 2014 2015

Market share 2015

34% OTHERS

Source: Jetnet database, February 2016


0,6

1,1

2014 2015

NORTH AMERICA LATIN AMERICA EUROPE | AFRICA ASIA-PACIFIC | CHINA

NET BOOK-TO-BILL (US$)

32

IMPROVED SALES PERFORMANCE

DELIVERIES: 116 JETS DELIVERIES: 120 JETS

13%

25%

13%

49%

8%

18%

5% 68%


DELIVERIES FORECAST (N10Y)

9,100 JETS AND US$ 259 BILLION IN THE NEXT 10 YEARS

2016-2025 MARKET FORECAST PER JET CLASS

Note: Sum of jet class numbers might differ from total numbers due to rounding.

Units US$

1,000 5

1,420

13

580

7

1,250

22

1,450

37

1,700

67

1,560

99

140 9

0

200

400

600

800

1.000

1.200

2008 2010 2012 2014 2016 2018 2020 2022 2024

De

live

rie

s (#

of

jets

)

ENTRY

LIGHT

MIDLIGHT

MIDSIZE

SUPERMID

LARGE

ULTRA LARGE

U-LONG RANGE

33


NORTH AMERICA 4,850 JETS (54%) US$ 130 BI (50%)

EUROPE & AFRICA 2,100 JETS (23%) US$ 64 BI (25%)

ASIA PACIFIC, CHINA & MIDDLE EAST 1,500 JETS (16%) US$ 54 BI (21%)

LATIN AMERICA 650 JETS (7%) US$ 11 BI (4%)

WORLDWIDE 9,100 JETS US$ 259 BILLION

2016-2025 MARKET FORECAST BY REGION

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

34

ASIA PACIFIC, CHINA, MIDDLE EAST

550


6

5

7 4

1

2

3

EXPANSION 2015 TO 2017

LEGACY 450/500 FINAL ASSEMBLY 5 LEGACY 450/500 PAINTING 6 LEGACY 450/500 DELIVERY CENTER 7

CURRENT FACILITIES

PHENOM FINAL ASSEMBLY 1 PHENOM PAINTING 2 ENGINEERING CENTER 3 CUSTOMER CENTER 4

35

EXPANDING OPERATIONS IN FLORIDA


PRODUCTS AND SOLUTIONS IN MORE THAN 60 COUNTRIES

37


SATELLITE

INTEGRATED PORTFOLIO

RADAR C4I

• C2 & C4I SYSTEMS • AIRBORNE SYSTEMS • SIMULATION • CONTROL SYSTEMS • AIR TRAFFIC SYSTEM

• LAND DEFENSE SYSTEMS INTEGRATION

• SISFRON IMPLEMENTATION

• MRO

• AEROSTRUCTURES

• REMOTE SENSING

• AERIAL SURVEILLANCE RADAR

• SATELLITE GEOSTATIONARY OF DEFENSE AND COMMUNICATIONS (SGDC)

100% 65% 100% 100% 51%

PARTNERSHIPS

TRANSPORT AIRCRAFT

TACTICAL MILITARY TRANSPORT

MODERNIZATION PROGRAMS

LIGHT ATTACK AND ADVANCED TRAINING

ISR SOLUTIONS

LAND SYSTEMS SERVICES

38


227346

505 499670

8521,056

1,1971,456

811

6%7%

8%9%

13%15%

17%19%

23%

14%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

EMBRAER DEFENSE & SECURITY RESULTS

REVENUES PARTICIPATION (%)

39

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

1.1 1.01.5

3.2 3.3 3.3 3.4 3.6

5.54.7

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


• NEW TACTICAL MILITARY TRANSPORT AND TANKER AIRCRAFT

• PARTNERSHIP WITH BOEING TO SHARE TECHNICAL KNOWLEDGE AND SELL THE KC-390

• BRAZILIAN GOVERNMENT AND EMBRAER SIGNED CONTRACT FOR 28 KC-390

• OTHER FIVE LOIs (32 AIRCRAFT)

• CERTIFICATION EXPECTED BY 2H2017

• FIRST DELIVERY TO BRAZILIAN AIR FORCE IN 1H2018

• SECOND PROTOTYPE ASSEMBLED AND JOINING THE FLIGHT TEST CAMPAIGN

• NEARLY 90% OF PROGRAM DEVELOPMENT COMPLETED

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

BRAZIL: 28

COLOMBIA: 12

ARGENTINA: 6

CHILE: 6

PORTUGAL: 6

CZECH REP.: 2

EMBRAER KC-390

40


BRAZIL: 99

COLOMBIA: 25

DOMINICAN REPUBLIC: 8

CHILE: 12

ECUADOR: 18

INDONESIA: 16

MAURITANIA: 2

BURKINA FASO: 3

ANGOLA: 6

USA: 21

MALI: 6

GHANA: 5

LEBANON: 6

UNDISCLOSED: 2

FIRM ORDERS: NEARLY 230 AIRCRAFT

OVER 190 AIRCRAFT DELIVERED

TOTAL MARKET FORECAST: 300 AIRCRAFT / US$ 3.5 BILLION

SUPER TUCANO

41


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 BRAZILIAN GEOSTATIONARY DEFENSE AND

COMMUNICATION SATELLITE PROGRAM (SGDC)

TOTAL ESTIMATE: US$ 400 MILLION

PARTICIPATION IN THE FIRST BRAZILIAN GEOSTATIONARY SATELLITE

BRAZILIAN ARMY PRIORITIES

42


BRAZILIAN GOVERNMENT CONTRACTED SAAB TO SUPPLY 36 GRIPEN NG FIGHTER JET

CONTRACT BETWEEN EMBRAER AND SAAB FINALIZED (EFFECTIVE AND RUNNING)

FIRST GROUP OF 46 BRAZILIAN ENGINEERS IN SWEDEN SINCE OCTOBER 2015

GRIPEN DESIGN AND DEVELOPMENT CENTER UNDER CONSTRUCTION IN GPX SITE

NEW BRAZILIAN FIGHTER (F-39 GRIPEN)

43


GRIPEN

GAVIÃO PEIXOTO (GPX) SITE

44

CONCENTRATING DEFENSE ACTIVITIES

EXPANSION

NEW GRIPEN DESIGN AND DEVELOPMENT CENTER 5

CURRENT FACILITIES STRUCTURAL ASSEMBLY WINGS ST & KC-390 FUSELAGE KC-390

MODERNIZATION A4, AMX & F-5 2 FINAL ASSEMBLY ST 3 FINAL ASSEMBLY KC-390 4

1

1

2 3

4

5


FINANCIAL RESULTS


11386

10078

97

55

43

47

43

50

4Q14 1Q15 2Q15 3Q15 4Q15

2,046

1,056

1,5131,285

2,074

4Q14 1Q15 2Q15 3Q15 4Q15

NET REVENUES SG&A EXPENSES

NET REVENUES | SG&A EXPENSES

SELLING EXPENSES G&A EXPENSES

2015 OUTLOOK: US$ 5.8 – 6.3 BILLION

2015: 5,928

147

168

121

147

129

2015: 544

46

US$ MILLION


975

662

883688

1,115

4Q14 1Q15 2Q15 3Q15 4Q15

359

213 216 182 200

4Q14 1Q15 2Q15 3Q15 4Q15

690

167

404 402

746

4Q14 1Q15 2Q15 3Q15 4Q15

2,045

1,056

1,5131,285

2,074

4Q14 1Q15 2Q15 3Q15 4Q15

NET REVENUES BY SEGMENT

OUTLOOK: US$ 1.70 – 1.85 BILLION OUTLOOK: US$ 0.80 – 0.95 BILLION

OUTLOOK: US$ 3.20 – 3.40 BILLION OUTLOOK: US$ 5.80 – 6.30 BILLION

2015: 5.93 BILLION 2015: 3.35 BILLION

2015: 1.72 BILLION 2015: 0.81 BILLION

47


INCOME FROM OPERATIONS (EBIT) | EBITDA

EBIT EBITDA

EBIT EBIT MARGIN EBITDA EBITDA MARGIN

2015 OUTLOOK: US$ 490 – 560 MILLION | 8.5% – 9.0%

2015 OUTLOOK: US$ 730 – 860 MILLION | 12.6% – 13.6%

2015: 332 | 5.6% 2015: 648 | 10.9%

48

US$ MILLION

166

196

80 102

84 65

9.6%7.5% 6.8% 6.6%

3.1%

4Q14 1Q15 2Q15 3Q15 4Q15

8.0%

EXCLUDING REPUBLIC EFFECT EXCLUDING REPUBLIC EFFECT

281

149178 158 164

13.8% 14.1%

11.7%12.3%

7.9%

4Q14 1Q15 2Q15 3Q15 4Q15

12.8%

264


288

(440)

73

(115)

660

(440)(367)

(482)

178

4Q14 1Q15 2Q15 3Q15 4Q15

NET INCOME FREE CASH FLOW

NET INCOME | FREE CASH FLOW

NET MARGIN NET INCOME

2015 OUTLOOK: FCF > (US$ 100) MILLION

2015: 69 | 1.2% 2015: 178

49

US$ MILLION

91

(62)

129

(110)

111

4.5%

-5.8%

8.5%

-8.5%

5.4%

4Q14 1Q15 2Q15 3Q15 4Q15

8.6%

178

EXCLUDING REPUBLIC EFFECT

FREE CASH FLOW ACCUMULATED 2015


42

288

188

50

300 300

RESEARCH DEVELOPMENT CAPEX

2,405

2,696 2,6402,763

2,315

4Q14 1Q15 2Q15 3Q15 4Q15

INVENTORIES | INVESTMENTS

50

INVENTORIES INVESTMENTS

2015 OUTLOOK: US$ 650 MILLION

US$ MILLION

2015: 518

2015 YTD 2015 OUTLOOK


(39)

(535)(465)

(644)

7

4Q14 1Q15 2Q15 3Q15 4Q15

96%89% 90% 91% 94%

4% 11% 10% 9% 6%

5.4 5.3

6.5 6.56.2

4Q14 1Q15 2Q15 3Q15 4Q15

INDEBTEDNESS PROFILE | NET CASH

INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION

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

TOTAL DEBT 4Q15: US$ 3.530 BILLION TOTAL CASH 4Q15: US$ 3.538 BILLION

51


USD DEBT

2,701 77%

BRL DEBT

807 23%

EUR DEBT

22 1%

1,014

2,524

197

424245

101228

102

549 540

43

1,034

45

CASH4Q15

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-2037

INDEBTEDNESS PRINCIPAL MATURITIES C

ASH

LO

CA

L C

ASH

AB

RO

AD

PRINCIPAL MATURITIES: US$ 3.530 BILLION

3,538

52

US$ MILLION


EPADS AND PAY OUT

EPADS PAY OUT

53

US$

1.49

ADJUSTED EPADS

0.62

1.92 1.88 1.82

0.38

116%

26% 26% 27%49%

2011 2012 2013 2014 2015


736,951,302 VOTING SHARES

OWNERSHIP STRUCTURE – 4Q15

54

NYSE

58%

BM&F BOVESPA

42%

17%

83%

LOCAL

SHAREHOLDERS

INTERNATIONAL

SHAREHOLDERS


2016 OUTLOOK


NET REVENUES US$ 6.00 – 6.40 BILLION

2016 CONSOLIDATED OUTLOOK

12% OF NET REVENUES US$ 0.70 – 0.75 BILLION

1% OF NET REVENUES US$ 100 MILLION



DELIVERIES 105 TO 110 E-JETS

OTHER REVENUES

75 TO 85 LIGHT JETS 40 TO 50 LARGE JETS

56

DELIVERIES


EBITDA MARGIN 13.3% – 13.7%

EBITDA US$ 800 – 870 MILLION

EBIT MARGIN 8.0% – 8.5%

EBIT US$ 480 – 545 MILLION

FCF > (US$ 100) MILLION

2016 CONSOLIDATED OUTLOOK

RESEARCH US$ 50 MILLION

DEVELOPMENT US$ 325 MILLION

CAPEX US$ 275 MILLION

INVESTMENTS US$ 650 MILLION

57

FCF USE OF LESS THAN US$ 100 MILLION


+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.

FORWARD LOOKING STATEMENT

59

embraer march 2016 book ri

Business