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Investor Presentaiton

DELIVERY OF AIRCRAFT BY UNIT COMMERCIAL AVIATION EXECUTIVE JETS DEFENSE & SECURITY 2014 2015 2016 92 COMMERCIAL AVIATION COMMERCIAL 101 108 AVIATION 116 EXECUTIVE JETS EXECUTIVE 120 117 JETS DEFENSE & SECURITY 20 DEFENSE & SECURITY 15 TOTAL 215 TOTAL 241 TOTAL 240 NET INCOME BY SEGMENT (%) 2014 2015 2016 COMMERCIAL 50 AVIATION COMMERCIAL AVIATION COMMERCIAL 56 57 AVIATION EXECUTIVE EXECUTIVE EXECUTIVE 25 29 28 AVIATION AVIATION DEFENSE & DEFENSE & 23 14 SECURITY SECURITY AVIATION DEFENSE & SECURITY 15 OTHERS 1 OTHERS 1 TOTAL (IN BILLIONS OF R$) 14.94 TOTAL (IN BILLIONS OF R$) 20.30 MAIN ECONOMIC-FINANCIAL INDICATORS MILLIONS OF R$* 2016 Variation 2016/2015 Net income Gross margin 21,435.7 19.9% Adjusted operating profit¹ (EBIT) 1,700.5 6% 1.4 p.p. 14% 20,301.8 18.5% 1,493.7 14,935.9 19.8% 1,303.8 Adjusted operating margin 7.9% 0.5 p.p. 7.4% Adjusted EBITDA² 2,844.2 16% 2,450.6 1,980.7 Adjusted EBITDA margin 13.3% 1.2 p.p. 12.1% 13.3% Net profit 585.4 142% 241.6 796.1 Net margin 2.7% 1.5 p.p. 1.2% 5.3% TOTAL (IN BILLIONS OF R$) 21.43 2015 2014 8.7% Capital market The shares traded on the BM&FBOVESPA (EMBR3) closed 2016 quoted at R$16.00. The American Depositary Receipts (ADRS) traded in New York (NYSE: ERJ) ended the year quoted at US$19.25. Embraer's mar- ket value was US$3.6 billion at the end of the year (US$5.5 billion in 2015). Value Added Statement (VAS) Added value for the year was R$5,733.2 million, which indicates a small decrease of 2.94% in relation to what was recorded for the previous year. For shareholders, Embraer distributed R$73.6 million in interest on capital and R$75.0 million in dividends, totaling R$148.6 million, with a payout of 25.4% of net consolidated profit, R$585.4 million. Profit per share was R$0.7959. Emphasis should be given to the distribution of R$3,557.1 million in value to employees and R$592.8 million to federal and municipal governments in the form of taxes and contributions. See more information in the financial statements at: http://ri.embraer.com.br/ listresultados.aspx?idCanal=dwxMd7dcHTw/ kwbNAC2ESQ==&linguagem=en#. |G4-EC1| Investment level confirmed In 2016, the credit risk classification agencies Fitch Ratings and Standard & Poor's (S&P) Ratings Services reiterated the BBB classification for Embraer. The same rating applies to securities issued abroad. Fitch also attributed a national long-term grade of AAA (BRA) and S&P removed the negative company classification in CreditWatch, a sign that credit ratings will be reevaluated. BRAZIL Investments³ 12,458.8 Debt 12,254.0 (7%) (11%) 13,409.1 13,785.7 8,731.2 6,662.0 Net cash (debt) (1,873.0) (6,695%) 28.4 Total assets 38,016.7 Net equity 12,844.9 Net debt/equity* 1.0 17% (14%) 11% 45,566.9 15,008.7 (102.6) 27,653.6 10,265.4 VAS CONSOLIDATED (IN R$ MILLIONS) |G4-EC1| 0.9 0.6 2016 ROA 1.6% 1.1 p.p. 0.5% 2.9% ROE 4.6% 3.0 p.p. 1.6% 7.8% Revenue ROCE4 0.2% (6.1 p.p.) 6.3% 11.6% Inputs acquired from third-parties Inventory 8,136.2 (10%) 9,037.9 6,388.9 Gross added value 23,416.0 (17,157.1) 6,258.9 Inventory turnover* 2.1 17% 1.8 1.9 Depreciation and amortization (1,265.6) 2015 22,360.1 (16,364.1) 5,996.0 (1,073.4) 2014 16,343.0 (11,144.2) 5,198.8 (676.8) Asset turnover* 0.6 50% 0.4 0.5 Net added value produced by the entity 4,993.3 4,922.6 4,522.0 Backlog of firm orders (billions in USD) 19.6 (13%) 22.5 20.9 Received added value being transferred 739.9 605.2 418.7 Delivery of aircraft (units) 240 241 215 Distribution of added value 5,733.2 5,527.8 4,940.7 Number of employees 18,506 (4%) 19,373 19,167 Personnel 3,557.1 3,342.4 2,502.3 EBIT per employee (in thousands of R$) 91.9 19% 77.1 68.0 Government (taxes, rates and contributions) 592.8 1,251.6 1,058.1 Distributed dividends. 148.6 26% 117.8 214.4 Interest and rentals 991.7 652.2 553.7 Profit per share¹ (R$) 0.7959 141% 0.3309 1.0851 JCP and dividends 174.0 117.8 214.3 Quantity of shares (thousand)1,5 735,571 1% 730,205 32 Verified numbers are in compliance with the IFRS international accounting norm. * Except Debt/Net Equity, Inventory Turnover, Asset Turnover, Profit per Share and Quantity of Shares. 1. The ajusted term is used for amounts calculated excluding provisions relating to non-recurring items that impacted the result of the period. 2. Represents net profit plus net financial revenue (expenses), income tax and social contributions, depreciation and amortization, minority shareholding and equity pickup. 3 Values include investments in Development, CAPEX and Shareholding. 4. ROCE = NOPAT/Shares employed with non-monetary items period average. 5. Weighted average of existing basic shares during the fiscal year, excluding shares acquired by the company and kept in the treasury. For more information, access the Annual Financial Statement at http://ri.embraer.com.br/Download.aspx?Arquivo=5QjXT9Bt2eal HjlgenPhYg==. 733,677 Retained profit/losses from fiscal year 411.4 123.8 581.8 Shares of non-controllers 6.4 40.0 30.5 33
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