2nd Quarter 2001Results

August 13, 2001

2nd Quarter 2001Results

August 13, 2001

Forward LookingForward Looking

This presenta t ion inc ludes forward-look ing s ta tements or s ta tements about events or

c i rcumstances wh ich have not occur red . We have based these fo rward-look ing s ta tements

large ly on our cur rent expectat ions and pro ject ions about fu ture events and f inanc ia l t rends

a f fec t ing our bus iness and our fu ture f inanc ia l per formance. These fo rward-look ing

s ta tements are sub jec t to r isks , uncer ta in t ies and assumpt ions, inc lud ing , among o ther

th ings: genera l economic, po l i t ica l and business condi t ions, both in Brazi l and in our

marke t The words “ bel ieves, ” “ may ,” “ will,” “ es t imates,” “con t inues ,” “ ant ic ipates,” “in tends ,”

“ expec ts” and s imi lar words are in tended to ident i fy forward-look ing s ta tements . We

undertake no obl igat ions to update publ ic ly or rev ise any forwar d-look ing s ta tements

because of new informat ion, fu ture events or other factors. In light of these r isks and

uncer ta in t ies , the forward-look ing events and c i rcumstances d iscussed in th is press

re lease might not occur . Our actual resul ts could d i f fer substant ia l ly f rom those ant ic ipated

in our forward-look ing s ta tements

2n d Quarter Highlights2n d Quarter Highlights

• Net Income for the second quarter was US$ 147.9 millions - a record in Embraer’s history

• Embraer’s total backlog reached US$ 23.5 billions

• Embraer largest exporter Brazil ian company in Brazil - US$ 1,5 billions exports for the 1H01

• Skyway Airl ines signed a memo of understading placing 20 firm

orders plus 20 options for the ERJ 140

• The Secondary Offering increased the preferred shares “free float ”to 58.5%

• Chautaqua Airlines confirmed 28 options of the ERJ 145 to ERJ 140 and orderaed more 25 options

• Transtates Airlines placed a new order for 10 ERJ 140 and an additional 25 options

• Embraer announced that Brazil’s TAM airlines signed a Memo of

understanding for the purchase of up to 100 ERJ 190 –200

• Embraer and ATR presented AEROChain, a new e-business marketplace aimed to improve commercial relationship with its custommers and suppliers

• Embraer announced orders of 7 new Legacy business jet during Le Bourget Air Show

2n d Quarter Highlights2n d Quarter Highlights

3 43 8

4 4 4 44 2

4 4

0

1 0

2 0

3 0

4 0

5 0

6 0

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01

Jet DeliveriesJet Deliveries

Net SalesNet Sales

US$ Millions

583

766 772 756

659

838

0

200

400

600

800

1.000

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01

170

260 246

299

187

38033,9%

31,8%

28,9%29,1%

39,5%

45,3%

0

100

200

300

400

500

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01

0 %

10%

20%

30%

40%

50%

US

$ M

M

US$ Millions

Ma

rgin

%

Gross ProfitGross Profit

209

177

1039 9

137

261

23,0%

17,8%

15,6%17,0%

27,6%

31,1%

0

100

200

300

400

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01

0 %

10%

20%

30%

US

$ M

M

US$ Milhões

Ma

rgin

%

EBITEBIT

119

199

158

231

121

28226,0%

20,4%18,3%

20,4%

30,5%

33,6%

0

100

200

300

400

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01

0 %

10%

20%

30%

40%

US

$ M

M

Ma

rgin

%

EBITDAEBITDA

US$ Milhões

5 5

104

128

109

6 3

14813,5%

16,6%

9,5%9,4%

14,3%

17,6%

0

5 0

100

150

200

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01

0 %

5 %

10%

15%

20%

US

$ M

M

U$ Milhões

Ma

rgin

%

Net IncomeNet Income

2n d Quarter Results – Corporate Law2n d Quarter Results – Corporate Law

Gross Margin

EBIT Margin

EBITDA Margin

Net Income

Net Sales

Gross Profit

EBIT

EBITDA

Net Margin

Finacial Income (Expenses)

Monetary & Exchange Variations

2Q01

(US$ millions)

2Q00

45%28%

31%16%

34%18%

147.962.6

$838.1$658.6

379.9186.9

260.8102.7

281.9120.8

18%9%

24.4(7.0)

(65.5)(26.5)

Earnings per ADS US$0.95US$0.40

136%

27%

103%

154%

133%

(449)%

147%

136%

% Changed

(*) Calculation based on total number of shares oustanding as of /30/01

1st Half Results – Corporate Law1st Half Results – Corporate Law

1H01

(US$ millions)

1H00

43%29%

30%16%

32%19%

258.8117.7

$1,599.7$1,241.4

684.1355.2

473.1201.9

515.9239.6

16%9%

47.6(12.6)

(144.2)(28.0)

US$1.67US$0.76

120%

29%

93%

134%

115%

(478)%

415%

120%

% Changed

Gross Margin

EBIT Margin

EBITDA Margin

Net Income

Net Sales

Gross Profit

EBIT

EBITDA

Net Margin

Finacial Income (Expenses)

Monetary & Exchange Variations

Earnings per ADS

(*) Calculation based on total number of shares oustanding as of /30/01

Total Debt

Short Term

7 8 %

Long Term

2 2 %Foreign

Currency

92%

Local

Currency

8%

US$ 567.3 millions Total Debt

US$ Milhões

Net Cash (Debt)

(208)

696749732

108

(37)

($400)

($200)

$ 0

$200

$400

$600

$800

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01

Quarter Results – US GaapQuarter Results – US Gaap

Gross Margin

EBIT Margin

EBITDA Margin

Net Income

Net Sales

Gross Profit

EBIT

EBITDA

Net Margin

Finacial Income (Expenses)

Monetary and Exchange Variat ions

2Q01

(US$ millions)

1Q01

34%30%

18%16%

19%18%

74.071.1

$844.5$686.5

290.4206.0

151.6110.0

160.7120.9

9 %10%

(2.1)10.1

(1.1)(11.5)

4 %

23%

41%

38%

33%

(121)%

(90)%

% Changed

1st Half Results – US Gaap1st Half Results – US Gaap

1H01

(US$ millions)

1H00

32%33%

17%20%

18%19%

145.1130.4

$1,531.0$1,087.0

496.4357.8

261.6213.0

281.6228.0

9 %12%

8.0(25.0)

(12.6)(12.1)

11%

41%

39%

23%

24%

(132)%

4 %

% Changed

Gross Margin

EBIT Margin

EBITDA Margin

Net Income

Net Sales

Gross Profit

EBIT

EBITDA

Net Margin

Finacial Income (Expenses)

Monetary and Exchange Variat ions

11.410.9

8.6

7.6

11.1 10.7

0

2

4

6

8

10

12

14

1Q00 2Q00 3Q00 4Q00 1Q01 2Q01

US

$ B

illi

on

US$23.5 Bil l ions in Orders, including US$ 10.7 Bil l ionsin Firm Orders

Firm Order BacklogFirm Order Backlog

18

Order BookOrder Book

Firm Options Total

ERJ 135 148 63 211

ERJ 140 139 25 164

ERJ 145 551 315 866

Total 838 403 1,241

Firm Options Total

ERJ 135 148 63 211

ERJ 140 139 25 164

ERJ 145 551 315 866

Total 838 403 1,241J u n e, 2 0 0 1J u n e, 2 0 0 1

Firm Options Total

ERJ 170 90 133 223

ERJ 190 30 72 102

Total 120 205 325

Firm Options Total

ERJ 170 90 133 223

ERJ 190 30 72 102

Total 120 205 325

Order BookOrder Book

J u n e, 2 0 0 1J u n e, 2 0 0 1

New Orders

C u s t o m e r M o d e l Firm Opt ions Tota l

Midwest Espress ERJ 140 20 20 40

Transtates ERJ 140 35 10 45

Chautaqua/ Wexford ERJ 140 28 25 53

TAM ERJ 190-200 25 75 100

T O T A L 108 130 238

US$5.0 Bill ions in New Orders