November 2006

Embraer

Industrial Architecture

Product portfolio

EMBRAER 170

ERJ 145 Series

EMBRAER 170/190 Series

ERJ 135 ERJ 140 ERJ 145 XR ERJ 145

AEW

EMBRAER 175 EMBRAER 190 EMBRAER 195

ALX Legacy Phenom

Defense Executive

Lineage

‘70s ‘90s ‘00s‘80s

Product Evolution

BANDEIRANTE(EMB 110/111)

TUCANO(EMB 312)

BRASILIA(EMB 120)

ERJ 145

EMB 145 AEW&C

ERJ 135

EMB 326

EMB 321

EMB 121

AMX

BRASILIA(EMB 120)

ALX(EMB 314)

LEGACY 600

ERJ 135

ERJ 140

EMBRAER 195

EMB 145 AEW&C SUPER TUCANO

AMX

ERJ 145

EMBRAER 170EMBRAER 175

EMBRAER 190

ERJ 145 XR

PHENOM 100PHENOM 300

P-99EMB 145 RS/AGS

AMXEMB 145 RS/AGS

ERJ 140

LINEAGE 1000

Industrial Operations

Parts

Parts

Fabric

ation

Fabric

ation

Machining TubingHarness Sheet Metal Composite

Sub-assembly Segments

Structu

ral

Structu

ral

Assem

bly

Assem

bly

Fuselage

Supplier

Supplier

EquipmentRaw Material Segments

System Installation and Tests

FinalFinal

Assem

bly

Assem

bly

Flight Preparation

DEL

IVER

Y

Painting

Manufacturing Processes

Embraer Units

Brazil

Brazil

Unit – Gaviao Peixoto

Unit – Eugênio de Melo

Unit – Faria Lima

Unit – Botucatú

São Paulo State

Located in São José dos Campos, São Paulo State.Designs and manufactures aircraft for the commercial, defense and corporate markets and provides after-sales support.

Floor space: 296,191 m² Employees at Faria Lima: 10,882

Embraer Units: Faria Lima

Sheet Metal ShopMilling

Digital ManufacturingComposite Material

Embraer Units: Faria Lima (cont.)

Final Assembly

Structural Assembly

Painting

Fuselage Junction

Embraer Units: Faria Lima (cont.)

Located in Eugênio de Melo, a district of São José dos CamposThis unit has a total area of 343,400 m², of which 54,607 m² are industrial buildings used in the development and manufacturing of tooling equipment and piping, as well as for performing welding, milling and wire looming operations.

Number of employees at Eugênio de Melo: 1,595

Embraer Units: Eugênio de Melo

Tooling – Design & Manufacturing

Tubing

Harness

Embraer Units: Eugênio de Melo (cont.)

Located in Gavião Peixoto, São Paulo State.Manufacturing facility that will host the final assembly activities of the Company´s executive and defense aircraft, as well as a runway for test flights.

Floor Space: 53,979 m²Number of employees: 1,348 Start-up of operations in October 2001

Embraer Units: Gavião Peixoto

Embraer Units: Gavião Peixoto (cont.)

Conclusion 2004 sept 1.750 m2

Cabinets Assembly Area

Legacy Interior

Executive Interior Cabinets:

Super Tucano

F5-BR Revitalization

Embraer Units: Gavião Peixoto (cont.)

Assembly Hangar

Embraer – BotucatuThe Indústria Aeronáutica Neiva manufacturing activities have been taken over by EMBRAER – Botucatu Unit, which was incorporated on July 1, 2006. The following activities are performed at the Botucatu Unit: Ipanemaaircraft production, manufacture of parts and structures for the jets of the ERJ 145, EMBRAER 170/190 and Phenom families, assembly of the Super Tucano fuselage structure, and manufacture of Ground Support Equipment tooling and devices.

Neiva will remain responsible for Ipanema aircraft marketing activities, spare parts sales and agricultural aircraft after-sales support.

Embraer Units: Botucatu

Total Area: 122,980 m²Floor space: 41,553 m²Number of employees: 1,396

Sheet Metal

Embraer Units: Botucatu (cont.)

Montagem de Segmentos

Plug Panel EMBRAER 170

EMB202 - Ipanema

Ipanema Álcool

Ground Support Equipment

Embraer Units: Botucatu (cont.)

Manufacturing Strategies

Responsiveness

Manufacturing Flexibility

Costs Reduction

Process Capability

delivery

month

LIE

LSE

Obj.

LIE

LSE

Obj.

Mtg. 3 Mtg. 4Mtg. 1 Mtg. 2 Mtg. 4Mtg. 1 Mtg. 4

1º C.C. 2º C.C.

Primary Parts

Structural Assembly

Final Assembly

Postponement:

Time-To-Market: Manufacturing Cycle Reduction

Configuration Cycle

Inventory Turn Over

4,4

6,7

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

dez/

01

fev/

02

abr/0

2

jun/

02

ago/

02

out/0

2

dez/

02

fev/

03

abr/0

3

jun/

03

ago/

03

out/0

3

dez/

03

fev/

04

abr/0

4

jun/

04

ago/

04

ALMOX. AERON. PROCESSO TOTAL

Phenom™ 100and

Phenom™ 300

Introducing a New Manufacturing

Process concept

Phenom manufacturing concept

• High performance line• Maximize activities, sub-assemblies

• Components Assemblies in parallel with the line

• “First in First Out”

• Backflushing• Automatic deduction from inventory based on

the Bill of Materials (BOM)

• Reduce the number of manual transactions

• Bonded Warehouse• Inventory management

• Planning parameter

Phenom manufacturing concept

• Fixed Workcenter per employee

• Acceleration of Phenom Assembly learning curve and maturity

• Improving the quality of the product

• Multi-functional employee, dedicated in the workcenter

• Electric and mechanical assemblies done by the same employee

• Visual Management

• Padronization;

• Easy performance evaluation;

• Clear instructions;

• Areas of material storage marked and defined;

• Quality

• Quality with Simplified Process;

• Who does, he/she makes the quality (the operator does and it verifies);

Phenom manufacturing concept

Investments&

Manufacturing expansion

Production Ramp Up

Embraer 170/190:2006 - Up to 08 ac/m2007 - Up to 12 ac/m2008 - Up to 14 ac/m

Phenom 100/3002008 2nd Half- 15 to 20 ac/y2009 - 120 to150 ac/y

70 to 78 Seats

78 to 86 Seats

98 to 106 Seats

108 to 118 Seats

Painting Shop

Final Assembly Hangar

ChemicalMilling

Surface Treatment

Facilities Investments: few examples

Embraer Logistics

ASRS System: Automated System

Automatic Storage and retrieval system for trays with integrated picking work stations

Suitable for up to 500 pick-and-put moviments per man-hour

Heigth: up to 6 m (8m Embraer Project)

Thank you