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

3rd QUARTER 2016 EARNINGS RESULTS

OCTOBER 31, 2016


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


HIGHLIGHTS

3

DELIVERY OF 29 E-JETS IN 3Q16 VS. 21 IN 3Q15.

COLORFUL GUIZHOU AIRLINES ORDER FOR UP TO FIVE E190.

AERCAP PLACED FIVE E-JETS E2 WITH BORAJET.

E170 AND E175 JETS RECEIVED APPROVAL FOR OPERATION IN RUSSIA.

E190-E2 THIRD PROTOTYPE JOINED THE FLIGHT TEST CAMPAIGN (20% OF PROGRAM).

E-JETS E2 BACKLOG REACHED 272 FIRM ORDERS (TOTAL 670 COMMITMENTS).

This information is property of Embraer and can not be used or reproduced without written permission. 4

HIGHLIGHTS

DELIVERY OF 25 JETS (13 LIGHT AND 12 LARGE) IN 3Q16.

COLORFUL YUNNAN ORDER FOR TWO PHENOM 300.

LAUNCH OF PHENOM 100 EV (NEW AVIONICS AND MODIFIED ENGINES).

FIRST LEGACY 450 ASSEMBLED IN MELBOURNE.

LEGACY 450 RECEIVED CERTIFICATION FOR EXTENDED RANGE OF 2,904 NM (+330 NM).

RANKED #1 IN BOTH AIN AND PRO PILOT PRODUCT SUPPORT SURVEYS FOR 2016.


HIGHLIGHTS

5

KC-390 FLIGHT TEST CAMPAIGN REACHED 600+ FLIGHT HOURS (TWO PROTOTYPES).

FIRST BATCH OF 20 AIRCRAFT DELIVERED TO THE USAF’s LAS PROGRAM.

FIRST IN-FLIGHT INSPECTION LEGACY 500 DELIVERED TO BRAZILIAN AIR FORCE.

FINAL TESTS OF THE BRAZILIAN SATELLITE.

NEW CONTRACT FOR ENVIRONMENTAL MONITORING OF THE AMAZON REGION.


FCPA RESOLUTION


EMBRAER HAS FINALIZED DEFINITIVE AGREEMENTS WITH THE US AND BRAZILIAN AUTHORITIES FOR THE SETTLEMENT OF THE ALLEGATIONS OF NON-COMPLIANCE WITH U.S. FOREIGN CORRUPT PRACTICES ACT (FCPA):

• PAYMENT OF US$ 206 MILLION (US$ 186 MILLION TO US AUTHORITIES AND US$ 20 MILLION TO BRAZILIAN AUTHORITIES).

• THE DOJ AGREED TO DEFER PROSECUTION FOR THREE YEARS (CHARGES WILL BE DISMISSED IF THE COMPANY DOES NOT VIOLATE THE TERMS OF THE DEFERRED PROSECUTION AGREEMENT).

• EXTERNAL AND INDEPENDENT MONITORSHIP FOR A PERIOD OF UP TO THREE YEARS TO ASSESS COMPLIANCE WITH THE FINAL AGREEMENTS.

FCPA INVESTIGATION RESOLUTION


20,000 PEOPLE TRAINED THROUGH THE END OF 2015, INCLUDING EMPLOYEES, MANAGEMENT AND BUSINESS PARTNERS

7,700+ DUE DILIGENCE CERTIFICATIONS OF THIRD PARTIES ISSUED THROUGH MID 2015

CONTINUOUS IMPROVEMENT OF INTERNAL CONTROLS AND SYSTEMS

LISTED ON THE DOW JONES SUSTAINABILITY INDEX (DJSI) AND CORPORATE SUSTAINABILITY INDEX (ISE)

COMPLIANCE CONTINUOUS IMPROVEMENT


FINANCIAL RESULTS


22.8 22.5 21.9 21.9 21.4

3Q15 4Q15 1Q16 2Q16 3Q16

FIRM ORDER BACKLOG

10

US$ BILLION


9

2011

3

12

21

25

1223

13

3Q15 4Q15 1Q16 2Q16 3Q16

LARGE JETS - LEGACY & LINEAGE LIGHT JETS - PHENOM

AIRCRAFT DELIVERIES

105 - 110 E-JETS 105 - 125 EXECUTIVE JETS 35 - 45 LARGE JETS 70 - 80 LIGHT JETS

11

23 26

45

30

25

2016 OUTLOOK:

21

33

2126

29

3Q15 4Q15 1Q16 2Q16 3Q16

48 YTD: 26 YTD: 76


NET REVENUES

2016 OUTLOOK: US$ 5.8 – 6.2 BILLION

12

US$ MILLION YTD: 4,189

1,285

2,074

1,309 1,3661,514

3Q15 4Q15 1Q16 2Q16 3Q16


688

1,115

711857 927

3Q15 4Q15 1Q16 2Q16 3Q16

402

746

402293

367

3Q15 4Q15 1Q16 2Q16 3Q16

182 200 189 210 216

3Q15 4Q15 1Q16 2Q16 3Q16

1,285

2,074

1,309 1,3661,514

3Q15 4Q15 1Q16 2Q16 3Q16

NET REVENUES BY SEGMENT

OUTLOOK: US$ 1.60 – 1.75 BILLION OUTLOOK: US$ 0.70 – 0.75 BILLION

OUTLOOK: US$ 3.45 – 3.65 BILLION OUTLOOK: US$ 5.80 – 6.20 BILLION

YTD: 4.19 BILLION YTD: 2.50 BILLION

YTD: 1.06 BILLION YTD: 0.61 BILLION

13


7897 101 99

87

43

50 39 48

33

3Q15 4Q15 1Q16 2Q16 3Q16

SELLING EXPENSES G&A EXPENSES

120 121

147 140 147

14

SG&A EXPENSES US$ MILLION YTD: 407


84

166

86 73

95

6.6%8.0%

6.5%5.3%

6.3%

3Q15 4Q15 1Q16 2Q16 3Q16

YTD: 254 | 6.0%

2016 OUTLOOK: US$ 405 – 500 MILLION | 7.0% – 8.0%

15

ADJUSTED EBIT

US$ MILLION YTD: (71) | -1.7%

(29)|-1.9% (127)|-9.3% 65|3.1%

EBIT EBIT MARGIN

NON-RECURRING ITEMS

US$ MILLIONS 4Q15 2Q16 3Q16

REPUBLIC PROVISION 101

FCPA CONTINGENCY 200 6

VOLUNTARY DISMISSAL 118

TOTAL NON-RECURRING 101 200 124

INCLUDES NON-RECURRING ITEMS


ADJUSTED EBITDA

2016 OUTLOOK: US$ 735 – 840 MILLION | 12.7% – 13.5%

US$ MILLION YTD: 507 | 12.1%

YTD: 184 | 4.4%

158

265

168 152187

12.3%12.8% 12.8%

11.1%12.4%

3Q15 4Q15 1Q16 2Q16 3Q1664|4.2% (48)|-3.5% 164|7.9%

EBITDA EBITDA MARGIN INCLUDES NON-RECURRING ITEMS

NON-RECURRING ITEMS

US$ MILLIONS 4Q15 2Q16 3Q16

REPUBLIC PROVISION 101

FCPA CONTINGENCY 200 6

VOLUNTARY DISMISSAL 118

TOTAL NON-RECURRING 101 200 124


NET INCOME - EXCLUDING EXTRAORDINARY ITEMS

-28% -1% +10% +2% +9%

US$ MILLION YTD: 294 | 7.0%

YTD: (29) | -0.7%

(110)

178

104 101 90 -8.5%

8.6% 7.9% 7.4% 5.9%

3Q15 4Q15 1Q16 2Q16 3Q16

NET MARGIN NET INCOME BRL VERSUS USD INCLUDES PROVISIONS

(34)|-2.2% (99)|-7.3% 111|5.4%


INVESTMENTS

18

2016 OUTLOOK: US$ 650 MILLION

US$ MILLION

YTD 2016 OUTLOOK

29

244

150

50

325275

RESEARCH DEVELOPMENT CAPEX

YTD: 423


YTD: (693)

19

FREE CASH FLOW US$ MILLION

2016 OUTLOOK: FCF > (US$ 400) MILLION

FREE CASH FLOW YTD ACCUMULATED

(115)

660

(216)

(439)

(38)

(482)

178

(216)

(655) (693)3Q15 4Q15 1Q16 2Q16 3Q16

* Net of Financial assets adjustment

3Q15 4Q15 1Q16 2Q16 3Q16 2016

NET CASH GENERATED (USED) BY OPERATING ACTIVITIES* 70 872 (29) (200) 218 (11)

NET ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (76) (83) (76) (112) (126) (314)

ADDITIONS TO INTANGIBLE ASSETS (110) (129) (111) (127) (130) (368)

FREE CASH FLOW (115) 660 (216) (439) (38) (693)


INDEBTEDNESS PROFILE | NET CASH

INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION

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

TOTAL DEBT 3Q16: US$ 3.82 BILLION TOTAL CASH 3Q16: US$ 3.17 BILLION

20

91% 94%86% 87% 87%

9% 6% 14% 13% 13%

6.56.2

5.9 5.7 5.5

3Q15 4Q15 1Q16 2Q16 3Q16

(644)

7

(220)

(613) (653)

3Q15 4Q15 1Q16 2Q16 3Q16


COST REDUCTION PLAN


COST REDUCTION PLAN - DETAILS

22

LAUNCHED IN SEPTEMBER 2016

LABOR ADJUSTMENT: ~ US$ 130 MILLION

OTHER COSTS: ~ US$ 70 MILLION (FOCUSED ON TRAVEL EXPENSES, CONSULTING FEES, OTHER G&A EXPENSES)

REDUCTION OF ANNUAL RECURRING EXPENSES BY US$ 200 MILLION.

$130 – 140 MM

$60 – 70 MM

US$ 200 MM


COST REDUCTION PLAN - EXECUTION

23

VOLUNTARY DISMISSAL PROGRAM:

NEARLY 1,600 EMPLOYEES TO DATE

ALREADY ACHIEVING US$ 110 – US$ 120 MM IN ANNUAL RECURRING SAVINGS

NON-RECURRING IMPLEMENTATION COST OF US$ 118 MM (BOOKED IN 3Q16)

2017 BUDGETS REDUCED ACROSS ALL AREAS OF THE COMPANY

COST REDUCTION TO BE FULLY CAPTURED IN 2017

REDUCTION PLAN TO OFFSET 2017 POTENTIAL HEADWINDS:

STRONGER BRL/USD FX RATE

HIGH BRAZILIAN INFLATION


2016 OUTLOOK REITERATED


NET REVENUES US$ 5.8 – 6.2 BILLION

2016 OUTLOOK REITERATED

OTHER REVENUES US$ 50 MILLION


70 – 80 LIGHT JETS 35 – 45 LARGE JETS

25

DELIVERIES

EBITDA MARGIN 12.7% – 13.5%

EBITDA US$ 735 – 840 MILLION

EBIT MARGIN 7.0% – 8.0%

EBIT US$ 405 – 500 MILLION

FCF > (US$ 400) MILLION


105 – 110 E-JETS DELIVERIES

INVESTMENTS US$ 650 MILLION



SHORT & MID TERM OPPORTUNITIES


SHORT & MID TERM OPPORTUNITIES

27

REVENUES

E-2 EIS (ACCESS TO E-JET BASE) E-JET OPPORTUNITIES IN US/ASIA

KC-390 FROM DEVELOPMENT TO PRODUCTION

SUPER TUCANO NEW SALES

L450 AND L500 NEW CUSTOMERS GROWING SERVICES REVENUES

COST REDUCTION PLAN

HIGHER DISCIPLINE ON PRICES & COSTS

INDUSTRIAL OPTIMIZATION IN FLORIDA

L450/L500 RAMP UP

STREAMLINING OF SUBSIDIARIES & SERVICE CENTERS

LOWER INVESTMENTS POST E-2

HIGHER EBITDA GENERATION

WORKING CAPITAL GAINS (LOWER INVENTORIES / ACCOUNTS RECEIVABLE)

PREMIUM POINT-TO-POINT BIZ TRAVELER

MARGIN GAINS


+55 12 3927 4404 | [email protected] | ri.embraer.com.br

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