This information is the property of Embraer and cannot be used or reproduced without written consent.

Luiz Carlos Aguiar, CEO

FORWARD LOOKING STATEMENT

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.

This information is the property of Embraer and cannot be used or reproduced without written consent.

AGENDA
Vision & Mission
General Information
Results and the Future
Strategic Vision
Main Programs Status

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Vision

To be
the leader
in providing
VISION
AND
MISSION

defense & security solutions in

the Brazilian market and in those
where Brazil has a very good
geopolitical relationship

Mission
To protect people, territories and safeguard critical
assets, by developing tailored and business
integrated solutions in the Defense & Security
markets, and by providing results for customers and
stakeholders, partners and society.

EMBRAER DEFENSE AND SECURITY

VISION AND MISSION
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EMBRAER DEFENSE AND SECURITY

Embraer Defense and Security: a new Embraer company established on 1st January 2011
Revenues 2011 US$ 852 million
1,647 employees
Presence in more than 40 countries

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RESULTS: REVENUE AND EBIT

Revenue
Evolution
(US$ Million)

EBIT (2011/2012): 9~12%

CAGR
2012-2020
10%

498

CAGR
33%

1st semester

Ref.: August, 2012

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RESULTS: BACKLOG

Backlog
Evolution
(US$ Billion)

Ref.: December, 2012

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REVENUE BREAKDOWN EVOLUTION

2011

2012
(*)

* Radar (Orbisat)
C4I (Atech)
UAV (Harpia and Santos Lab)
Satellite (JV Embraer/Telebrs)
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(*)

Ref.: August, 2012

To build a leadership position and to

act as the main prime contractor in the
Brazilian Defense and Security Industry
Base

To expand the portfolio of products,

services and technologies build
through a combination of organic
growth and acquisitions

EMBRAER DEFENSE AND SECURITY

STRATEGIC OBJECTIVES
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Prime Contractor
To build a leadership position and to act as the main prime contractor
in the Brazilian Defense and Security Industry Base

Satellite

Main Brazilian Defense

and Security Company:

SISFRON
Integrated Borders
Monitoring
System

Prime contractor
Project management
Finance structuring

Other Brazilian
companies
Equipment
suppliers
Solutions
development

Solutions integrator

EADS (Europe)
Fincantieri (Italy)
Finmeccanica (Italy)
Thales (France)
Elbit (Israel)
IAI (Israel)
BAE Systems (UK)
DCNS (France)
Boeing (USA)
Rockwell Collins (USA)
Indra (Spain)
Saab (Sweden)
....

Foreign
Companies

Development and
retention of
technologies

Aerial Defense

Brazilian
construction
companies

Services and logistics

Brazilian priority supplies
Brazilian
Main
Government
Contractors
Projects

Brazilian supply chain strengthening

Technology development and retention
Finance structuring
Highly qualified employment generation
Technological spin-off

This information
information is the
the property of Embraer
Embraer and cannot be
be used
used or reproduced without
without written
written consent.
This

Supply of
complementary
foreign equipment

Supply of base
infrastructure

FUTURE PROJECTS BRAZILIAN GOVERNMENT

2013

2016

2020

SisGAAZ

NAVY

SISFRON (phase 1)
ARMY

2030

US 4 bn

SISFRON (Full Scope)

US 400-500 MM

US 4 bn

Aerial Defense
Fighter Jet Tender

AIR FORCE

OTHER

UAVs

Satellites

US 400MM

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US 2 bn

US 4 bn
US 1bn

FUTURE PROJECTS - BRAZILIAN GOVERNMENT

2013 Federal Initial Budget (*)

(*) Investment Budget Budget sent to congress for discussion

(available at Ministry of Planning website)
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Brazilian Army Priorities

SISFRON
Integrated Borders
Monitoring System

Satellite

Estimate: US$ 4 bi
Comprising radars,
communication networks,
C4I, unmanned air vehicles
(UAV) and armored vehicles

Embraer won the 1st

phase of SISFRON,
comprised of a
650km border
between Brazil,
Paraguay and Bolivia

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Estimate: US$ 400 M

Participation in the first
Brazilian Geostationary
Satellite

GROWTH THROUGH ACQUISITIONS

AND PARTNERSHIPS
To expand the portfolio of products, services and technologies
built through a combination of organic growth and acquisitions

Contro
l
Commercial
Agreement

HARPIA
Command and
Control
Air Traffic
Management
Systems

VISIONA

Remote Sensing
MRO

UAV

Ground Radars
Simulators

Police
Intelligence
System

Mission
Systems

Aerostructures

50%

90%

65%

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This information is the property of Embraer and cannot be used or reproduced without written consent.

Modernization of
avionics systems

51%

Mini-UAVs

NA

Satellite

51%

Embraer Defense and Security, Partners

and Affiliated Companies

ISR (Intelligence,
Surveillance and
Reconnaissance)

Light attack and

advanced training

Modernization programs

Services

Transport of authorities

Tactical military transport

HARPIA
System of Systems

UAVs

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VISIONA
Radar

Satellite

CORPORATE PRESENCE

Alverca (Portugal)
MRO
Villepinte (France)
Logistic support
Washington DC (USA)
Commercial presence

Braslia (Brazil)
Commercial office
Harpia Sistemas headquarter

Abu Dhabi (UAE)

Commercial presence
Singapore
Commercial office

Rio de Janeiro (Brazil)

Commercial presence

Gavio Peixoto (Brazil)

Industrial operations
Service center

Campinas (Brazil)
Orbisat (engineering and operations)
Ref.: December, 2011
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So Paulo (Brazil)
Headquarters
Atech S.A headquarters
So Jos dos Campos (Brazil)
Engineering, programs, industrial
operations, customer support and services
Orbisat headquarters
Eugnio de Melo (Brazil)
KC-390 Program
Engineering

PORTFOLIO SUPER TUCANO

Super Tucano Addressable Market Forecast

2020 (US$ million)

Firm orders: 190 aircraft

Brazil: 99

Long-term
700

Colombia: 25
Dominican Republic: 8
Chile: 12
Ecuador: 18
Indonesia: 16

Pursuing USAF
Light Air Support
competition

Medium-term
2,000

Short-term
800

Greystone (TACAir): 1
Undisclosed: 11
Deliveries: 168 aircraft
Ref.: August, 2012

Partnership with Boeing

to provide weapons
integration, increasing
capabilities of the
aircraft.

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Total Market Forecast:

300 aircraft
US$ 3.5 billion

MODERNIZATION PROGRAMS

Modernization Addressable Market Forecast 2025

(US$ million)
Long-term
567

Brazilian Navy A-4

12 aircraft
Two prototype at GPX-CS
Brazilian Air Force A-1M
43 aircraft
Fourteen received by Embraer for the modernization

Medium-term
505

Short-term
527

Total Market Forecast*:

234 aircraft
US$ 1.6 billion

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consent.

Brazilian Air Force F-5M

46 a/c + 11 a/c (2nd batch)
45 already delivered
* Forecast considering the market for F-5 and Tucano modernization
Ref.: August, 2012

TRANSPORT OF AUTHORITIES AND

EMBRAER ISR SYSTEMS
Embraer Jets to Defense and Government customers
operating in 12 countries
Presence in Latin America, Europe, Africa and Asia
58 Embraer Jets in operation

Brazil

Colombia

Ecuador

Panama

Belgium

Greece

Embraer Defense and Security

signed a contract with the Brazilian
Air Force to provide logistics
support and services for the fleet of
24 aircraft of the ERJ-145

Embraer ISR Systems: 18 aircraft:

Brazilian Air Force: 8

India

Pakistan

Thailand

Hellenic Air Force: 4

Mexican Air Force: 3

Angola

Nigeria

Equatorial Guinea

DRDO/CABS (India): 3
16 aircraft in operation

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EMBRAER KC-390
A new tactical military transport and
tanker aircraft
First flight in 2014
Six countries
Letters of intent totalizing 60 aircraft

Brazil
(28)

Boeing and Embraer signed an

agreement
to
share
technical
knowledge and evaluate markets for
joint sales efforts.

Colombia
(12)

Argentina
(6)

Chile
(6)

Portugal
(6)

Czech Rep.
(2)

Total Market Forecast 2025:

700 aircraft
US$ 50+ bi

The Brazilian Air Force (FAB) and

Embraer concluded the Preliminary
Design Review. The next major
contractual event will be the
projects Critical Design Review in
2013.

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information is the
the property of Embraer
Embraer and cannot be
be used
used or reproduced without
without written
written consent.
This

Ref.: August, 2012

COCKPIT KC-390

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EMBRAER KC-390: MAIN PARTNERS AND SUPPLIERS

Air Conditioning System

Integrated Power
Plant System (IPPS)

Cabin Pressure Control

System

Troop seats
and litters

Cargo Handling and

Aerial Delivery System

Emergency electrical
system

Mission Computer,
DIRCM,
HUD, SPS
Liferaft and
Maritime ELT
System
Throttle Control
Quadrant (TCQ)

Landing Gear
Legs

Basic Avionics

Tactical Radar
System

FBW Primary and Spoiler

Flight Control System and
Actuators
Active Side Stick

Armor

Pilot / Co-pilot / ACM

and Loadmaster Seats

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Wheels and Brakes Assemblies

LG System Hydraulic Control
Components
Brake Control System
Steering Hydraulic Manifold

Wing Air Refueling Pod

System

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