Mar/2010

Airline Market OverviewA perspective from the 30 to 120-seat segment

Mauro KernExecutive Vice-President Airline Market

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

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.

Forward Looking Statement

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Contents

Air Transport Industry Review

ERJ 145 Family

E-Jets Family

Competitive Scenario

Product Development

Market Outlook 2010-2019

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Economic Scenario

World Real GDP Evolution (USD 2005)

35

40

45

50

55

60

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

Rea

l GD

P (U

S$ tr

illio

ns)

Source: The Economist (Feb/10)

World will return to pre-crisis level in 2010 (due to emerging countries)USA and Europe will recover in 2011-12

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

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Air Transport Demand - IATA

IATA: “The industry starts 2010 with some enormous challenges. The worst is behind us, but it is not time to celebrate.”

World – International RPK Growth Rate (% yoy)

5.9% 7.4% 1.6 % -3.5%

Source: IATA (Jan/10)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Source: IATA and ICAO (Dec/09)

2009: Reduced demand due to economic crisis2010-2013: Projected demand recovery

5,06,2 6,15,8 4,5

-4,1

5,53,3

-3,1

1,3

7,4

2006

2007

2008

2009

F

2010

F

2011

F

2012

F

2013

F

IATA ICAO

RPK Growth Rate (% yoy)

Demand Forecast – IATA and ICAO

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Gradual recovery of market demand

Weak revenue environment, signs of improvement (IATA halved its loss forecast for 2010 to US$2.8bi)

Continuous efficiency improvement and cost reductions

Limited aircraft financing resources

More consolidations & mergers and fewer start-ups

Long term growth in air transport demand despite current crisis

Air Transport Industry Review – a summary

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Air Transport Demand – US Mainline vs. Regionals

0

100

200

300

400

500

600

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

E20

10F

2011

F

RPM

(Bill

ion)

US Domestic

RPM cagr 2009-2030F

MainlineCarriers +2,9%

Regional Carriers +4,2%

FAA Forecast (Mar2010): higher growth rates for Regionalsincreased use of 70-90 regional jet aircraft

Source: FAA

FAA Aviation ForecastMainline: -0,2% cagr

Regional: +13,3% cagr

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Dec 1998Dec 1998

Dec 1999Dec 1999

Aug 2000Aug 2000

Mar 2001Mar 2001 Sep 2001Sep 2001 May 2003May 2003

Dec 1996Dec 1996

First DeliveryFirst Delivery

May 2002May 2002 Feb 2005Feb 2005May 2004May 2004

September, 2007

1,100 ERJ145 Platforms Already Delivered

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Num

ber o

f ER

Js (u

nits

)

Pre-Owned ERJ Transfers

Source: Embraer (Mar/09)

61 pre-owned ERJ transfers in the last two years (2008-09)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Pre-Owned ERJ Transactions

Aeromexico Connect - MexicoFinnComm - Finland

BMI – United Kingdom

Satena - Colombia

Trans States - US

Dniproavia - Ukraine

Republic - US

Diexim Expresso - Angola

City Airline - Sweden

Nearly 170 pre-owned ERJ transactions since 2000

Passaredo - Brazil

Athens Airways - Greece

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

1st. E195 Delivery to Air Dolomiti (Italy)

(January 27, 2009)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

1st. E170 Delivery to Fuji Dream Airlines (Japan)

(February 20, 2009)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

1st. E190 Delivery to Niki (Austria)

(May 14, 2009)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

1st. E195 Delivery to Augsburg Airways (Germany)

(June 9, 2009)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

1st. E195 Delivery to Windrose (Ukraine)

(June 22, 2009)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

(June 24, 2009)

1st. E175 Delivery to Trip (Brazil)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

1st. E190 Delivery to LAM (Mozambique)

(July 31, 2009)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

1st. E170 Delivery to BA Cityflyer (United Kingdom)

(September 3, 2009)

600th. E-Jet delivered to LOT Polish Airlines

September 15th., 2009 !!!

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

1st. E195 Delivery to Lufthansa Cityline (Germany)

(September 24, 2009)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

New E-Jet Customer – Air Astana (Kazakhstan)

(Nov/09 ; 2 E190 Jetscape)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

New E-Jet Customer – Oman Air (Oman)

(Nov/09 ; 5 E175)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

New E-Jet Customer – Austral (Argentina)

(20 E190)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

1st. E170 Delivery to Gulf Air (Barhain)

(March 4, 2010)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E190 at London City Airport

Carriers cleared to use Carriers cleared to use EmbraerEmbraer 190 at London City190 at London City“BA CityFlyer, Baboo and Lufthansa Cityline will be the first to operate the EMBRAER 190 out of LCY. ”

BabooBaboo debuts debuts EmbraerEmbraer 190 at London City190 at London City

“We are especially proud to be the first to operate this aircraft, the most comfortable and popular regional jet, into this most user-friendly airport” – Jacques Bankir, CEO of Baboo

(2010)

BA BA CityFlyerCityFlyer starts introducing starts introducing EmbraerEmbraer 190s190s

“We are now on the last leg of our fleet replacement programme and our passengers will benefit from the extra space these new, greener aircraft offer.”– Peter Simpson, Managing Director of BA Cityflyer

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Grand Slam: E-Jets at Europe´s top airlines

Source: Embraer (Dec/09)

Orders Backlog

17 E190 1615 E195

Orders Backlog

6 E170 65 E190

Orders Backlog

10 E170 3

10 E190

Orders Backlog

17 E190 7

620+ E-Jets. 56 Airlines. 39 Countries620+ E-Jets. 56 Airlines. 39 Countries

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Fleet efficiency

is a critical issue

to airlines

Current Environment Requires Fleet Optimization

Capacity Cuts

DecreasingDemand & Yields

Fuel & Environment

Pressure

Right-sized aircraft help airlines to improvefuel burn (environment) and results

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

0

100

200

300

400

500

51 - 75 100 150 200 250 300 350 400 500 1000 >1000Passenger per Day Each Way (PDEW)

Num

ber o

f Mar

kets

Market Density Profile - USA

51-150 PDEW

55%

Source: US DOT (3Q09)

USA domestic mainly low-mid density markets77% up to 300 PDEW

151-300

22% >30023%

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

0

50

100

150

200

250

300

26-50 100 200 300 400 500 600 700 800 >800Passenger per Day Each Way (PDEW)

Num

ber o

f Mar

kets

Market Density Profile – Latin America

26-100 PDEW

54%

Source: SABRE (2009)

Intra Latin America mainly low-mid density markets82% up to 300 PDEW

101-300

28%

>30018%

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

0

50

100

150

200

250

26-50 100 200 300 400 500 600 700 800 900 1000 >1000Daily Passengers

Num

ber o

f Mar

kets

Market Density Profile – China

China mainly low-mid density markets76% up to 300 daily passengers

Source: China Airline Traffic Statistics 2008 (Markets with at least one weekly frequency)

26-100

46% 101-300

30%

>30024%

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Passengers per Departure – USA

Around 610,000 flights (~18%) of total J121-210 with loadsfrom 61 to 105 pax per departure and low daily frequencies (up to 2)

Source: US DOT (Nov/08-Oct/09)

0

100

200

300

400

500

600

700

800

900

1000

46-60 61-75 76-90 91-105 106-120 121-135 > 135

>2

<=2

Narrowbodies (121-210 seats)

DailyFrequencies

Passengers per Departure

Ann

ual F

light

s (x

100

0)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

The CASM Paradigm

6161‐‐7575 7676‐‐9090 9090‐‐105105

(1,757)(1,757)

(1,051)(1,051)

454454

(504)(504)

177177

1,4341,4341,3051,305

2,0952,095

733733

Environment:Avg Sector:Avg Fare:Fuel Price:

US LCC800 sm100 USD2 USD/gal

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

The CASM Paradigm – the ultimate rule

Fare Level

Passenger Demand per Flight

CONTRIBUTION TO PROFIT PER FLIGHTCONTRIBUTION TO PROFIT PER FLIGHTCo

ntribu

tion

to Profit

per Flight

100100‐‐SEATERSEATER

PaxPax//FlightFlight < 120< 120

NBNB

PaxPax//FlightFlight > 120> 120

“A place for everything and everything in its place”

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets Deployment

Source: OAG (1Q10)

World

8%

21%

8%

21%

21%

Natural Growth

29%29%

20%20% 7%7%

5%5% 32%32%

11%11%

50%

Right-sizing

NorthAmerica

57%

NorthAmerica

57%

Europe

40%

Europe

40%

LatinAmerica

49%

LatinAmerica

49%

Africa

52%

Africa

52%

Middle East

62%

Middle East

62%

C hina

12%

C hina

12%

Asia Pacific

50%

Asia Pacific

50%

8%8%

14%14%

New Markets

6%6%

20%31%20%31%

5%

33%

5%

33%

49%49%

39%39%

20%

8%8%

Replacementof old Jets

25%25%

33%33%

7%7%

9%

North America

Middle East

Africa

Europe

LatinAmerica

China

Asia Pacific

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets: Complementing Narrowbodies

Source: OAG (2010)

SEATS06:0007:0008:0009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:00

Madrid – Paris (ORY)

B738

B738

744 606Dec/08 Dec/09

E195

B738

B738B738

B738 E195

494 342Sep/08 Sep/09

A320

E190

E190

A321

A320

San Salvador - Guatemala

A320

Edmouton–Vancouver

1032Dec/08

A320

930Dec/09

A319

E190

A320

A320

A319

E190

E190CRJ700

A320

E190

A320

A319

E190

E190

E190

A320

Amsterdam – Berlin

B737

754Jan/09

611Jan/10

E190

B737

B737

B737

B737

B737

B737

F70

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets Complementing Narrowbodies

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

SEATS06:0007:0008:0009:0010:0011:0012:0013:0014:0015:0016:0017:0018:0019:0020:0021:0022:0023:00

Source: OAG (2009)

Frankfurt - Katowice

714 420Sep/08 Sep/09

E170

E170

E170

E170

E170

E170

B737

B737

B737

B737

B737

B737

E-Jets: Replacing Narrowbodies

690 520Sep/08 Sep/09

Brisbane - Oakhampton

E190

E190

E190

E190

B737

B737

B737

B737

B737

E190

Los Angeles - Vancouver

480 465May/07 May/09

E190

E190

E190

E190

A319

A319

A319

A319

Amsterdam - Helsinki

513 392Dec/08 Dec/09

E190

E190

E190

E190

B737

B737

B737

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets Helping Explore New Markets

Low Cost Carriers with Two Fleet Types

E190E190E190 E190

100

150+

Seat

s

B737-700A320 A320 A320

Middle EastEuropeAsia PacificNorth America

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets Helping Reduce Costs and Fuel Burn

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Source: www.eforefficiency.comNote: European economic conditions, fuel at 0.50 EUR/liter

E-Jets: Direct Replacement Benefits

Fuel Burn

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Replacement Opportunities - World

B717-200

B737-200

B737-500

F70 F28

F100DC-9

Bae 146

TU-134YAK-42

0

50

100

150

200

250

300

350

5 15 25 35

Num

ber o

f Airc

raft

Average Age (years)

Source: OAG (Dec/09 ; Passenger, Active in Service, Scheduled Services)

Nearly 1,000 aircraft with more than 15 years old

(Jets 61-120 seats)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets Family Order Book

Firm Orders Options Deliveries Firm

Backlog

EMBRAER 170 187 48 170 17

EMBRAER 175 140 178 125 15

EMBRAER 190 448 426 263 185

EMBRAER 195 87 70 47 40

Total 862 722 605 257(December 31th 2009)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets Worldwide Distribution

Customers Firm Orders

Diversified customer-base across five continentsIncreased presence in emerging markets with established carriers

Source: Embraer (Dec/09)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets Backlog Evolution

Emerging Countries include Brazil, Russia, India, China and Eastern Europe.

71%

31%

20%

22%

8%

16%

1%

32%

2005 Dec/2009

Emerging Countries

RoW

Europe

North America

322 Acft 257 Acft

Backlog Share per Region (# of Aircraft):

North America + Europe share decreased from 91% to 53%

Source: Embraer (Dec/09)

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets Schedule Reliability & Completion Rate

99,22

99,88

98,00

98,25

98,50

98,75

99,00

99,25

99,50

99,75

100,00

JAN

FEB

MAR AP

R

MAY JU

N

JUL

AUG

SEP

OC

T

NO

V

DEC JA

N

FEB

MAR AP

R

MAY JU

N

JUL

AUG

SEP

OC

T

NO

V

DEC JA

N

FEB

MAR AP

R

MAY JU

N

JUL

AUG

SEP

OC

T

NO

V

DEC

2007 2008 2009

SR/C

R (%

)

SR - MONTH SR - L12M CR - MONTH CR - L12M

Schedule Reliability: 99.2% ; Completion Rate: 99.9%

99.9%

99.2%

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Market Share - World (Jets 61-120 seats)

Considering accumulated Net Orders up to Dec/09.

Embraer: 170/175/190/195 Sukhoi: Superjet 100Bombardier: CRJ700/900/1000; CS110 Comac: ARJ-21Airbus: A318 Antonov: An-148Boeing: B737-600 Mitsubishi: MRJ90

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

E-Jets vs. New Entrants

MRJ70

MRJ90

ARJ21

E195

E190

E175

E170

SSJ100/95

CS100

60

70

80

90

100

110

120

1800 2000 2200 2400 2600 2800 3000 3200

Seat

Cap

acity

(32

'' pitc

h)

Range (nm)

110 Seats

100 Seats

70-90 Seats

Competitive Scenario

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

4,500 kg heavier than E195

Higher DOC than E195

Risk associated with new engine technology (GTF)

Implications for CS100 perceived as heavy andinneficient

Momentum after Republic CS300 vs. A319/737-700

CS 150-seater derivative Competition vs. A320/737-800

Competition: CS100 vs. E195

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Major design review in 2009: back to metallic wing, increasedcross-section.

3,500 kg heavier than E175

Equivalent DOC vs. E175 but at higher risks:

Challenging integration and development

Risk associated with new engine technology (GTF)

TSA deal no bid ; price agressiveness sustainable??

Competition: E175 vs. MRJ90

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Wingtip devices

Advanced structures Composites / Metallic

Avionics functionalities

Electric taxi Geared and Adv. Turbofan engines

2015/2016

Health monitoring systems(On condition maintenance)

APU Fuel Cell Carbon compositesnanotubes (2nd gen.)

2nd generationGTF/ATF

2017/2019

Open Rotor / New Configs / Advanced Aerodynamics Single pilot capability

2020/2025

Expected Technologies for Commercial Aviation

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

New Technologies and Next Generation

2015/2016 2017/2019 2020/2025

Potential COC vs. 

Curren

t Techn

ology

4%7%

Industry focus on new technologies maturity

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Competitive Product Positioning along time

2010 2015 2020

mature new

entrant

competition from next-gen NB

new entrant maturation

New entrants introduction Next Gen NB

higher averageCompetitive positioning code:

New entrants competitiveness

mature new entrantnew entrant maturation

New entrants introduction

2010 2015 2020

New entrants competitiveness

in case of NB re-engining

competition from next-gen NB

Next Gen NB

lower

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Embraer Market Forecast (2010-2019)

Projected Deliveries - Jets

Market Segment(Seats)

2010 – 2019Deliveries

30-60 60

61-90 1015

91-120 1550

30-120 2625

Around 2600 jet deliveries (US$ 80bi) in the next 10 years.

T h e i n f o r m a t i o n c o n t a i n e d h e r e i n i s p r o p e r t y o f E m b r a e r a n d s h a l l n o t b e c o p i e d o r u s e d w i t h o u t E m b r a e r ´ s w r i t t e n c o n s e n t

Embraer Market Forecast (2010-2019)

NorthAmerica

84032%

LatinAmerica

31512%

Europe

58022%

Russia / CIS

1556%

Africa

803%

Middle East

1054% Asia

Pacific

2108%

China

34013%

2,625 jet deliveries (30-120 seats)

620+ E-Jets. 56 Airlines. 39 Countries620+ E-Jets. 56 Airlines. 39 Countries