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SUPER TUCANO Brazilian Air Force (FAB) DB2 070-A08 Defense and Government Market March 2008 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. DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 2 Business Model Low level of investment, no capital risk Non-recurring investments are paid by first client Very positive cash flow programs It means that Embraer Defense programs have high level of shareholder added value. Besides that the Defense Programs generate technological spin-offs DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 3 Defense Products and Market Segments Intelligence, Surveillance and Training Combat Reconnaissance Transport Systems & Services DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 4 DB2 070-A08 Defense Programs Update Super Tucano FAB SUPER TUCANO Brazilian Air Force (FAB) A-29 (Brazilian Air Force designation) 99 firm orders 58 delivered (44 twin-seater and 14 single-seater)* Four operational bases: Natal (Advanced training), Porto Velho, Boa Vista and Campo Grande AFB (operational squadrons). * Feb 2008 DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 6 Super Tucano FAC SUPERSUPER TUCANOTUCANO ColombianColombian AirAir ForceForce (FAC)(FAC) Fleet:Fleet: 2525 aircraftaircraft (twin-seater)(twin-seater) (17(17 alreadyalready delivdelivered*)ered*) TwoTwo operationaloperational basesbases (Apiay(Apiay and and Barranquilla)Barranquilla) IntensiveIntensive utilizationutilization inin COINCOIN (Counter(Counter Insurgency)Insurgency) missionsmissions againstagainst thethe FARCFARC SuccessfulSuccessful operationsoperations andand attacksattacks againstagainst thethe FARC’FARC’ss leadership leadership * Feb 2008 DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 7 Super Tucano Flight Simulator Flight Simulator for the FAC’s Super Tucano Developed by Embraer Operational in the 1 st semester 2008 In addition to the simulator, other training and operational tools already developed (CBT – Computer Based Training, MPS/MDS (Mission Planning and Mission Debriefing Stations)). DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 8 Super Tucano – Dominican Air Force SUPERSUPER TUCANOTUCANO DominicanDominican AirAir ForceForce 88 firmfirm ordersorders (twin-seater(twin-seater version) version) FirstFirst delivery:delivery: 1212 monthsmonths EDCEDC ContractsContracts alreadyalready signedsigned –– pending pending CongressCongress finalfinal apapproval.proval. DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 9 F-5BR Fleet: 46 aircraft F-5M (FAB’s designation) Air superiority fighter Modernization program includes structural modification and upgrade of avionics, sensors and armament system capability. 22 aircraft already delivered* * Feb 2008 DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 10 AMX A-1M (FAB’s designation) Fleet: 53 aircraft Attack and reconnaissance aircraft Contract: US$ 600M Modernization program includes upgrade of avionics, sensors and armament system capability, and fleet standardization. First deliveries in late 2010 and the last ones in 2014 First prototype already in Embraer for modifications and initial tests, and first flight scheduled to late 2008. DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 11 Transport aircraft Belgium Greece India Colombia Brazil Ecuador Brazil Nigeria Thailand Angola DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 12 Transport aircraft – new contracts Thailand Armed Forces (Army and Navy) 2 ERJ 135 LR Royal Thai Army Royal Thai Navy Deliveries in the 2 nd half 2008 Pakistan Air Force 2 Phenom 100 firm orders First delivery in Dec 2008 2 other Phenom 100 under negotiation PetroEcuador (Ecuador) Ecuadorian State Oil Company ERJ 145 LR Delivery in September 2008 DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 13 Customer Support – new contract Package of maintenance services to the Brazilian Air Force EEC – Legacy / EMB 145 fleet CLS – EMB 120 Brasilia fleet Contract expected to be signed by 1Q2008 Contract value: around US$ 40M for 5 years DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 14 DB2 070-A08 Defense Programs Prospects Super Tucano FACh (Chilean Air Force) Up to 12 aircraft for advanced training RFP released in Jan2008 Proposal delivered in Feb 2008 Expected contract award in 2008 Contract value: around US$ 150M DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 16 Transport aircraft Brazilian Air Force 2 EMBRAER 190 PR (Presidential Aircraft) Replacement of the B737-200 New internal arrangement Extra range (additional fuel tanks) First delivery in early 2009 DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 17 Multimission Aircraft – Indian Air Force Proposal submitted in 2006 9 Legacy 600 platforms: 7 for COMJAM + target towing + aerophotogrametry + passenger transportation 2 SIGINT + passenger transportation Decision expected until March 2009 Contract value: around US$ 350M DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 18 EMB 145 AEW&C – DRDO/CABS – India Proposal submitted in 2007 3 EMB 145 AEW&C platform modified to meet DRDO/CABS specific requirements Decision expected in 2008. Contract value: around US$ 250M DRDO: Defence Research and Development Organization / CABS: Centre for Airborne Systems DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 19 DB2 070-A08 EMBRAER C-390 C-390 Medium-sized military transport aircraft in development phase Derived from the EMBRAER 190 commercial jet. Capable to transport up to 19 ton (41,888 lb) of cargo Missions Troops and cargo transport Troops and cargo air delivery In flight refueling Medical evacuation DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 21 C-390 – Status The C-390 Program was included in the Brazilian National Budget. Brazilian Air Force (FAB) already included this project in the Strategic Planning for the next 4 years The total amount for the program’s budget is under discussion with the Brazilian Government Industrial partner countries and suppliers definition are under way and expected to be finalized by July 2008. DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 22 DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 23.
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