Pannel 1 - Open Innovation iniciatives in Brazil

Open Innovation Seminar 2008 – Allagi

Hugo Borelli ResendeEmbraer

Mesa 1 - Iniciativas de Open Innovation no Brasil

16 de junho de 2008 – São Paulo/SP

Hugo B. Resende

Chief Scientist, Technology Development

June, 2008

Building a Globally

Competitive

Company

Product DevelopmentPre-Competitive R&D

Emerging Technologies

Advanced Technology Development

Product Definition

Product Detailed Design

Production

Product Certification

anos0 +5-5-10

Demonstrator

Prototype

Universities

Research Institue

Industry Research

Basic

Research

Applied

Research

Viability of

Advanced

Technologies

Product/Process/

Specific Technology

Development

Validation

R&D Model (Civil Aircraft Industry)

Customer SatisfactionBackbone of our entrepreneurial action

SUCCESSFUL BUSINESS

Aerospace Industry Fundamentals

HighTechnology

Qualified

PeopleFlexibilityCash

Intensiveness

Global Presence

Global Business

Operations in Brazil, United States, Europe and Asia

FranceVillepinte

Le Bourget

SingaporeSingapore

USANashville

Fort LauderdaleChinaBeijingHarbinPortugal

Alverca

BrazilGavião Peixoto

BotucatuSão José dos Campos

Flexibility – Partnership

• 4 partners

• 350 suppliers

• 16 partners

• 22 suppliers

High Technology

ErgonomicsAnalysis

Virtual Reality CenterIn operation since Feb 2000

• Fluid Dynamics

• Composite Materials

Research & Technology Strategy

The four Organizational dimensions for the innovation process of

high-complexity products:

Research &

Technology

Corporate

Strategy

What the firm

wants Market

Unts

Conceptual

Studies & Design

What the

firm will do

Customer's

Needs

Market

Opportunities

New

Products

Concepts

Technologies

Technology

Planning

Markets

Vision of the

Future in S&TTechnology

Development

Portfolio

Qualified People

Educational Levels*

04/31/08

High School

70 %

Ph.D.

2%

Postgraduate

4% Graduate

24%

* Brazil Units

Minimum educational level – High School

Engineering Manpower Growth

550658

846

1119

1546

2195

25432713

2941

3278

3626

3838

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Year

Peo

ple

Qualified People

Executive Jet

Market

Legacy

Legacy 500

Simultaneous Development

2000 2001 2002 2003 2004 20062005 2007 2008 20102009

EMBRAER 175

EMBRAER 195

EMBRAER 170

EMBRAER 190

LINEAGE 1000

2011

PHENOM 100

PHENOM 300

MSJ/MLJ

ALX

AiM

SUPER TUCANO COLOMBIA

LEGACY 600

Executive

Defense

Commercial

AEW

Financial

Data

Capital Structure

NYSE

54%

BOVESPA

46%

May 7th, 2008

Common (Voting) Shares: 740,465,044 (100%)

Oppenheime

Fund´s

6,9%

Thornburg

Investment

5,2União

0,3%

BNDESPAR

5,2%

Grupo

Bozano

9,8%

NYSE Others

31,8%

Janus

Capital

10,3%BOVESPA

Others

16,3%

PREVI

14,2%

764

3,760

1,354

1,837

2,7622,927

2,526

2,144

3,441

3,830

5,245

1,335

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 1T2008

Net Revenue (U.S. GAAP)

(US$ million)

• 96.4% of revenue is exports

Actual

Forecast

342420

4,737

3,2693,2673,348

2,007

2,396

2,8972,702

1,692

1,173

2,957

2,213

1,737

881

1,843

1,377

1,1781,220

1,302

1,992

-79

1,780

1,056

1,5291,356

705

1,1751,0541,325

514292

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 feb/08

Export Import Trade Balance

(US$ million)

Embraer accounted for 2.3% of Brazilian exports through February 2008.

(*)Source: Foreign Trade Department Secretary.

Exports

Thank you!