2006 - 2Q06 Results In Us Gaap

August 14, 2006

Second Quarter 2006 Financial Results

THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT

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.


• On June 5, Embraer concluded its restructuring process and started to be listed on the Novo Mercado segment of the BOVESPA

• On May 2, Embraer introduced the Lineage 1000, an ultra-large business jet based on the EMBRAER 190 commercial jet platform.

Highlights 2Q06


Highlights 2Q06

• JetBird acquired 50 firm Phenom 100 jets and placed an option for an additional 50 aircraft.

• The EMBRAER 195 airliner, the largest of the EMBRAER 170/190 family, received in June type certification from the National Civil Aviation Agency (ANAC), the Brazilian certification authority.

• Copa Airlines exercised three options for the EMBRAER 190 increasing the number of firm E-Jets in its orderbook to 15.

• Embraer reached an agreement with Kawasaki Heavy Industries Ltd. to begin assembling the wings of the EMBRAER 190 and EMBRAER 195 aircraft.

• Firm orders for the recently launched Phenom 100 and Phenom 300 reachedmore than 235 units at the end of the quarter. The total backlog for the executiveaviation segment reached US$1.25 billion.


Results & Performance


Jet Deliveries

30

41 40

2736

2Q05 3Q05 4Q05 1Q06 2Q06


US$ Million

Net Revenues and Gross Margin

1,021808

1,1901,064812

31.4%28.2%28.7%28.2%28.1%

2Q05 3Q05 4Q05 1Q06 2Q06


Net Revenue by Segment

2Q05$812 Million

2Q06$1,021 Million

Defense and Government

6%

Executive Aviation 9%

Customer Services and Others 13%

Commercial Aviation 72%Defense and

Government 15%

Executive Aviation 7%

Commercial Aviation 66%

Customer Services and Others 12%


US$ Million

Income from Operations

99

167114

37

135

12.2%

15.7%

9.6%

4.5%

13.2%

2Q05 3Q05 4Q05 1Q06 2Q06


Net Income

US$ Million

83110

156

65

139

13.6%

8.1%

13.1%

10.2% 10.4%

2Q05 3Q05 4Q05 1Q06 2Q06


251 302 351 346 332

654 488

100 136 140

2Q05 3Q05 4Q05 1Q06 2Q06

Others Commercial Aviation

Accounts Receivable Breakdown

US$ Million

905790

451 482 472


US$ Million

Inventories

1,736

1,601

1,511

1,648 1,639

2Q05 3Q05 4Q05 1Q06 2Q06


US$ Million

Net Cash (Debt) Position

-229

97

360 302

527

2Q05 3Q05 4Q05 1Q06 2Q06


Total Debt of US$ 1,528.6 Million

• Average cost in R$ = 9.5 % p/a

• Average cost in US$ =7.1 % p/a

Loans

Long-Term Loan Average Maturity: 2 years and 1 month

Short Term 41%

Long Term 59%

Brazilian Currency

22%

Foreign Currency

78%


634

160

284

199

252

1,529

Total Short-term 2007 2008 2009 Beyond2010

Loans Maturity

US$ million


Backlog and Delivery Forecast


ERJ 145 Family Order Book

(2nd Quarter 2006)

6

6

-

-

FirmBacklog

8581,.023159864Total

676839157682ERJ 145

7474-74ERJ 140

1081102108ERJ 135

DeliveriesTotalOptionsFirm Orders


EMBRAER 170/190 Family Order Book

36-764036EMBRAER 195

292

220

3

33

FirmBacklog

163897442455Total

33539286253EMBRAER 190

1922-22EMBRAER 175

111260116144EMBRAER 170

DeliveriesTotalOptionsFirm Orders

(2nd Quarter 2006)


Backlog

US$ Billion

10.9 10.4 10.4 10.4 10.2

15.0 13.6 15.3 15.914.7

2Q05 3Q05 4Q05 1Q06 2Q06

Firm Options


Jet Deliveries Forecast

59

96

160 161

131

101

148 141 145 150

1998 1999 2000 2001 2002 2003 2004 2005 2006E 2007E

Investor RelationsPhone: + 5512 [email protected]

2006 - 2Q06 Results In Us Gaap

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