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Investor Presentaiton

(CAAC). The largest country in East Asia has been strategic for Embraer, accounting for 80% of the region's market share of the fleet of jets with less than 130 seats. Africa also presents a potential market, not only among the major airlines, but also with smaller op- erators that are migrating to E-Jets. SERVICES AND SUPPORT: - Maintenance and repair of aircraft - Revitalization of aircraft -On-Site stocks (OSS) Field support - Technical support - Flight operations - Training - eSolutions Learn more at www.embraercommercialaviation.com Throughout the year, sales channels were also opened with representatives in Mexi- co, Chile, Japan, and in Europe. In addition to enhancing Embraer's global presence, the initiative aims to develop a global brand that comprehends the culture and the uniqueness of buyers in the countries where relationships are established. LEGACY 450 (7 TO 9 SEATS) Comfort and verticalization In 2016, Embraer Aero Seating Technologies (EAST) began operations in Titusville, Florida, where it manufactures commercial and executive aircraft seats, including those for the first class of the E2. This represents an important step for the company's verticalization strategy. This new unit's products are characterized by quality, ergonomics, and the use of light materials. Far beyond executive use In 2016, Embraer delivered two Phenom 100E to Etihad Flight College, an integral subsidiary of Etihad Airways, the national airline of the United Arab Emirates. The contract provides for the delivery of two more jets of the same model at the beginning of 2017. The aircraft will be used in the pilot training academy, created to support the rapid growth of the airline's fleet. The Phenom 100E will also be used to train pilots in the United Kingdom's armed forces. The contract signed with Affinity Flight Training Services provides for the acquisition of five aircraft for the Military Flight Training System (MFTS) program of the United Kingdom's Ministry of Defense. The aircraft model is already being used at flight schools in the United States, Finland and Australia. LEGACY 500 (8 TO 12 SEATS) SERVICES AND SUPPORT: -Maintenance and repair of aircraft (Embraer Executive Care - Aircraft refurbishment - On-Site Stocks (OSS) - Performance software EEC) - Reduced Vertical Separation Minimum (RVSM) - Integrated diagnostic solution (Aircraft Health Analysis and Diagnosis AHEAD) LEGACY 650E (13 TO 14 SEATS) MORE THAN Learn more at www.embraerexecutivejets.com/en-us 1,000 EXECUTIVE JETS DELIVERED IN MORE THAN 60 COUNTRIES Executive Aviation In 2016, shortly after having completed 10 years of operations, Embraer Executive Aviation celebrated the delivery of its 1,000th jet, a Legacy 500. The model was also approved for operations at London City Airport, one of the most restrictive landing sites in the world. This year was also marked by investments in the improvement of the Phenom 100 and Phenom 300 (the world's best-selling busi- ness aircraft for the fourth consecutive year) and of the Legacy 450, Legacy 500 and Legacy 650E. The company also began the testing campaign for the Phenom 100EV (the new generation of the Phenom 100), which was presented at the main international event for execu- tive aviation, the National Business Aviation Association (NBAA) Con- ference and Exhibition, in Orlando, Florida. The new product version introduces a superior avionics system and more powerful engines, with better performance in high temperatures and elevated altitude airports. The new jet is scheduled to enter the market during the first semester of 2017. Further globalizing the business unit and to be closer to customers, Embraer has transferred part of the final assembly of the Legacy 450 and Legacy 500 jets to Melbourne, Florida, where the Phenom 100 and Phenom 300 models are already being produced. [G4-13| 26 PHENOM 100 (4 TO 7 SEATS) PHENOM 300 (6 TO 10 SEATS) LINEAGE 1000E (13 TO 19 SEATS) 1 OUT OF EVERY 5 EXECUTIVE JETS DELIVERED IN THE WORLD IS FROM EMBRAER Defense & Security Embraer Defense & Security plays a strategic role in the Brazilian defense system and is the segment leader in Latin America. Additional- ly, it is present in over 60 countries. The A-29 Super Tucano turboprop, for instance, was the business unit's best-selling model for the year and already serves 13 air forces in tacti- cal support missions, counterinsurgency op- erations, advanced training and surveillance. Participation in the global market will inten- sify in the coming years with the launch of the KC-390, a multi-mission aircraft that sets new standards in the category. In addition to delivering more performance and efficiency (with jet propulsion and reduced operating costs), the new freighter is capable of per- forming various missions such as transport- ing and launching troops and cargo, humani- tarian aid, in-flight refueling, rescue missions and wildfire suppression. In 2016, the air- craft completed major milestones of its flight test campaign and toured eight countries, traveling more than 16,300 nautical miles (nearly 30,200 kilometers), and in 23 days off base, it demonstrated 100% availability. Embraer expects to receive the Initial Op- erational Capability (IOC) declaration by the end of 2017 and the Final Operational Clearance (FOC) in 2018. The first deliveries will also occur in 2018. DEFENSE AND SECURITY SOLUTIONS IN MORE In recent years, Defense & Security has in- THAN 60 vested continuously in portfolio diversification COUNTRIES with air traffic control products and radars operating under the most challenging climat- ic and topographic conditions, in addition to integrated border protection systems. During the year, the process of consolidating the op- erations of Savis Tecnologias e Sistemas S.A. and Bradar Indústria S.A. started. The com- panies are engaged in the development and production of radars, as well as border mon- itoring for remote sensing and protection of 27
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