EMBRAER DAY 2016 - USA

John Slattery
President & CEO, Commercial Aviation

+55 12 3927 4404 | investor.relations@embraer.com.br | www.embraer.com

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

1,740+ accumulated E-Jets orders

100 Embraer jet operators

Additional market opportunities in China and U.S.

Initial placements by E2 lessors (AirCastle/Azul and Aercap/Borajet)

E2 program on target, on budget, on schedule

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

2016 Guidance
105 - 110 Commercial Jets
122

105 106
100 101
90 92
9M16
76

2009 2010 2011 2012 2013 2014 2015 2016

Source: Embraer (Sep/2016)

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 Revenues (US$ billion)

2016 Guidance
US$3.45 – US$3.65 bi
3,7 3,8
3,4 3,3 3,3 3,3
3,2
9M16
2,5

2009 2010 2011 2012 2013 2014 2015 2016

Source: Embraer (Sep/2016)

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

Net Orders Deliveries

2.000
1.800
1.600
1,740+
Number of Aircraft

1.400
1.200 1,260+
1.000
800
600
400
200
0
1999 2001 2003 2005 2007 2009 2011 2013 2015

2016 YTD  42 total firm orders

As of Sep 2016

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 Embraer Customer Base
100 Jet Operators

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 Leadership
70 to 130-Seat Jets – Since 2004

OTHERS

BOMBARDIER
OTHERS SHARE OF
SUKHOI DELIVERIES
61%
EMBRAER

COMAC
SHARE OF
NET ORDERS
51%
EMBRAER

BOMBARDIER

As of Sep 2016

8 This information is property of Embraer and can not be used or reproduced without written permission.
 Market Outlook 2016-2035

9 This information is property of Embraer and can not be used or reproduced without written permission.
 Projected Deliveries
6,400 Aircraft (70-130+ Seat Jet Segment)

380
CIS
6%

NORTH 2,020 1,160

EUROPE
AMERICA 31% 18%

MIDDLE 230
EAST 4% ASIA 1,690
PACIFIC 26%
LATIN 690
AMERICA 11% 230
AFRICA
4%

Source: Embraer Market Outlook (2016-2035)

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

DIRECT REPLACEMENT

50/70-SEAT JET REPLACEMENT

TP REPLACEMENT

RIGHT-SIZING

SMALL NB IN US MAINLINES

LCCS IN ASIA AND EUROPE

REGIONAL AVIATION DEVELOPMENT (INDIA, BRAZIL, TURKEY, IRAN)

CHINA: NEW CAAC POLICY ON AIRLINE LICENSE

11 This information is property of Embraer and can not be used or reproduced without written permission.
 New CAAC Policy On Airline License

“ New
sizeable
before
airlines intend
regional
introducing
entering into trunk market.
to reach
aircraft
NBs
a
“
fleet
and

Start-up airlines in preparation

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

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 Services Revenue
Business Growth

+100%

+130%

2006 2016 2026

14 This information is property of

of Embraer
Embraer and
and can
can not
not be
be used
usedor
orreproduced
reproducedwithout
withoutwritten
writtenpermission.
permission.
 Customer Satisfaction Survey
Worldwide Fleet – All Programs

Net Favorability • E190/195 SR 99.5%

79%
73%

57% 59%
53%
40%

2009 2011 2013 2014 2015 2016

Benchmark in Customer Relationship Management, Flight

Operations and Technical Support.
15 This information is property of Embraer and can not be used or reproduced without written permission.
 E2 Program Update

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 E190-E2 Timeline
Ongoing Flight Test Campaign

ACCOMPLISHED PLANNED

Program 1st Flight 1st Flight

Roll out
Launch 2nd Prototype 4th Prototype

JUN 2013 OCT 2014 FEB 2016 MAY 2016 JUL 2016 AUG 2016 2017 2018

First Metal 1st Flight 1st Flight E190-E2

Cut 1st Prototype 3rd Prototype Entry Into
Service

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20% OF TEST CAMPAIGN ACCOMPLISHED

280 FLIGHT-TEST HOURS

370 GROUND-TEST HOURS

E190-E2
This information is property of Embraer and can not be used or reproduced without written permission.
 Farnborough
2,400 nm Landing Time: 18:53
5h50

Sal Island
1,650 nm Landing Time: 11:05
4h10 Take Off Time: 13:02
PERFECT FLIGHT OF

1,110 nm
2h40
Recife
Landing Time: 04:44
12h40
Take Off Time: 06:53

São José dos Campos

Take Off Time: 02:03

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 E195-E2 Timeline
Assembly Ongoing

ACCOMPLISHED PLANNED

Joint Definition E195-E2

Phase Concluded New Wingtip First Flight

MAY 2015 JAN 2016 FEB 2016 SEP 2016 2017 2019

First Metal Fatigue Test E195-E2

Cut Article Entry Into
Service
1ST FLIGHT

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 E175-E2 Timeline

ACCOMPLISHED PLANNED

Wind Tunnel E175-E2

Testing First Metal Cut First Flight

MAY 2015 NOV 2016 JUN 2016 2019 2020

Joint Definition E175-E2

Phase Entry Into
Concluded Service
1ST FLIGHT

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 E2 Competitive Positioning

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 Smarter Design
The Lightest Aircraft

E-Jets lessons learned

Smart use of materials

Performance Same weight

Optimization
as CS100
with 10% more capacity

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 E-Jets E2 vs. CSeries
Cash Operating Cost

E190-E2 CS100
E190-E2 vs CS100
same COC/seat
-10% COC/trip
E195-E2 vs CS100
-10% COC/seat
same COC/trip

E195-E2 CS300
E195-E2 vs CS300
North American environment
600nm
same COC/seat
Dual class configuration
Fuel: 88 USD/barrel
-10% COC/trip

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 Smarter for Business
Higher Residual Value

CS100/300 vs 175/190/195 E2
(Base Value / Base Value on Production Date)
CS100/300 175/190/195 E2
100%

80%

60%
1,000 bps
40%

20%

0%
0 5 10 15 20
Aircraft Age

Source: Values based on available appraisers publications Ascend (2016), Oriel (2016) and ICF (2015) BlueBooks. No Inflation applied.

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 The Most Efficient Aircraft
Case Study – E195-E2 vs CS100

Same trip cost

10% Higher capacity
1,000 bps Higher residual value
$10mi NPV per airplane

* NPV (15 years; 7%)

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 Smarter Experience
Comfort with More Personal Space

E-JETS COMFORT

2x2 - NO MIDDLE SEAT

HIGHEST CAPACITY TO
STOW ROLL-ON BAGS
ONBOARD

EASY RECONFIGURATION
AND MODULARITY

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 E2 Commitments
E-JETS E2
AERCAP

670
50+50 x E190-E2 / E195-E2

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

AIR COSTA
50+50 x E190-E2 / E195-E2 COMMITMENTS
ARKIA (272 FIRM)
6+4 x E195-E2

AZUL
30+20 x E195-E2

BORAJET *
5 x E190-E2 / E195-E2
HAINAN/TIANJIN AIRLINES
2+18 x E190-E2

ICBC LEASING
10+10 x E190-E2

KALSTAR
5+5 x E190-E2

SKYWEST, INC.
100+100 x E175-E2

TRANS STATES HOLDINGS

50+50 x E175-E2 * Does not increase orderbook
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 Order Evolution
Accumulated Net Orders per Year

E-Jets E-Jets E2 CSeries 613

Net Orders

440

343
267 272 370
245
210
150 145 243 243
120 130
70 182
112 118
50 90
Program PL+1 PL+2 PL+3 PL+4 PL+5 PL+6 PL+7
Launch

Source: Embraer, OEMs (Sep/16)

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Thank You!

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