Embraer april 2011 book2

1

2

Company HighlightsCompany Highlights

Investment Grade rating by Moody’s and S&P.

Strong Balance sheet with solid Net cash position.

Company established in 1969, with business in four segments.

Privatized in 1994 and listed in USA in 2000.

Broad customer base in commercial and executive aviation, defense and

security segments.

Global footprint.

Highly experienced management team.

3

Global BusinessGlobal Business

� Operations in Brazil, USA, Europe and Asia

� Dual listed in Brazil’s Bovespa (1989) and NYSE (2000)

Melbourne*

Fort Lauderdale

Nashville

USA

Taubaté

Botucatu

Gavião Peixoto

São José dos Campos

Brazil

Évora*

Alverca

Portugal

Le Bourget

Villepinte

France

Harbin

Beijing

China

Singapore

Singapore

Countries of Operation Factories Offices Service Centers Contracted/ Planned Authorized Network* Under construction

� One of Brazil’s largest exporters of manufactured goods

� Diversified customer-base across five continents

Mesa

Windsor Locks

São Paulo

Spare Parts Distribution Centers

LouisvilleMinneapolis

103

133

165

125

27 36 3721 19

98

126101

2

2006 2007 2008 2009 2010

4

Executive Large Jets*

Aircraft DeliveriesAircraft Deliveries

Executive Light Jets**Commercial Jets

2010 deliveries estimates • 90 commercial jets• 17 executive large jets*• 120 executive light jets** Sur

passed

Legacy e LineagePhenom

***

5

Net RevenueNet Revenue

US$ Million

Guidance 2010: Net Revenue - US$ 5.25 billion

Guidance Achieved

3,760

5,2456,335

5,498 5,364

2006 2007 2008 2009 2010* *

2006-2008: US GAAP2009-2010: IFRS*

14.818.8 20.9

16.6 15.6

2.8 3.0

3.83.2 3.0

2006 2007 2008 2009 2010

21%

30%

49%

6

Firm Order BacklogFirm Order Backlog

Firm Order Backlog Backlog/Revenue (Years)

US$ Billion

Commercial aviation

Executive aviation

Defense and security

7

Revenue BreakdownRevenue Breakdown

Revenue by Segment Revenue by Region

Commercial aviationExecutive aviation

OthersAviation services

Defense and security North America

Brazil

EuropeAsia Pacific

Latin AmericaOthers

67% 62%53%

14%16%

21%

8% 9% 13%

9% 11% 11%2% 2%2%

2008 2009 2010

6.33 5.49 5.36

Net Revenue

US$ Billion*6.33 5.49 5.36

2008: US GAAP2009-2010: IFRS*

43%

22%13%

18%

33%

33%

10%7%

15%

4%11% 13%

18% 21% 22%

7% 6% 4%

2008 2009 2010

9

Product PortfolioProduct Portfolio

capacity: 70 to 80 seatsrange: 2,100 nm (3,900 Km)

capacity: 78 to 88 seatsrange: 2,000 nm (3,700 Km)

capacity: 98 to 114 seatsrange: 2,400 nm (4,500 Km)

capacity: 108 to 122 seatsrange: 2,200 nm (4,100 Km)

capacity: 37 seatsrange: 1,750 nm (3,250 Km)

capacity: 50 seatsrange: 1,550 nm (2,900 Km)

capacity: 50 seatsrange: 2,000 nm (3,700 Km)

capacity: 44 seatsrange: 1,650 nm (3,050 Km)

10

Commercial Aviation PerformanceCommercial Aviation Performance

Firm Firm

OrdersOrdersOptionsOptions TotalTotal DeliveriesDeliveries

Firm Firm BacklogBacklog

ERJ 145 Family 890 - 890 888 2

EMBRAER 170 191 40 231 181 10

EMBRAER 175 173 276 449 133 40

EMBRAER 190 478 353 831 321 157

EMBRAER 195 105 51 156 64 41

TOTAL ETOTAL E--JETSJETS 947947 720720 1.6671.667 699699 248248

TOTALTOTAL 1.8371.837 720720 2.5572.557 1.5871.587 250250

Firm Firm

OrdersOrdersOptionsOptions TotalTotal DeliveriesDeliveries

Firm Firm BacklogBacklog

ERJ 145 Family 890 - 890 888 2

EMBRAER 170 191 40 231 181 10

EMBRAER 175 173 276 449 133 40

EMBRAER 190 478 353 831 321 157

EMBRAER 195 105 51 156 64 41

TOTAL ETOTAL E--JETSJETS 947947 720720 1.6671.667 699699 248248

TOTALTOTAL 1.8371.837 720720 2.5572.557 1.5871.587 250250

Commercial Aviation Commercial Aviation -- Order Book 4Q10Order Book 4Q10

EE--Jets Around the WorldJets Around the World

0%

20%

40%

60%

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

11

Worldwide DistributionWorldwide Distribution

Diversified Customers Across 5 Continents

Asia Pacific /China12%

Middle East /Africa22%

Europe / CIS32%

LatinAmerica

18%

NorthAmerica

16%

Firm Orders

Asia Pacific / China14%

Middle East / Africa

9%

Europe / CIS21%

NorthAmerica

44%

Latin America12%

Commercial Jets Market Share Evolution Worldwide

Considering Accumulated Net Orders

60-120 Seats Jets

43%

31%

7%

3%

6%6%

3%1%

12EE--Jets supported by leasing companiesJets supported by leasing companies

Regional Airlines

Network Airlines

(% of E-Jets Fleet+Backlog)

Low Cost Carriers

• Right-sizing

• New markets

• New markets

• Right-sizing

• Natural Growth

• Right-sizing

EE--Jets efficiency in all business modelsJets efficiency in all business models

EE--Jets Market AcceptanceJets Market Acceptance

13

EE--Jets DeploymentJets Deployment

World

8%

21%

8%

21%

21%

Natural Growth

29%

6%

29%

6%

20%20% 7%8%7%8%

5%5%

7%

32%

7%

32%

11%11%

50%

Right-sizing

North

America

57%

8%

North

America

57%

8%

Europe

40%

Europe

40%

Latin

America

49%

Latin

America

49%

Africa

52%

Africa

52%

Middle East

62%

5%

Middle East

62%

5%

C hina

12%

C hina

12%

Asia Pacific

50%

11%

Asia Pacific

50%

11%8%8%

14%14%

New Markets

6%6%

20%31%20%31%

5%

33%

5%

33%

49%49%

39%39%

20%

8%8%

Replacementof old Jets

25%25%

33%

7%

33%

7%

7%7%

9%

14

EE--Jets Helping Reduce Costs and Fuel BurnJets Helping Reduce Costs and Fuel Burn

Fuel Burn

15

Nearly 1,000 aircraft with more than 15 years old

(Jets 61-120 seats)

World Replacement OpportunitiesWorld Replacement Opportunities

16

Air Transport Demand Air Transport Demand -- IATAIATA

-14

-12

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

Jan

-07

Mar-

07

May-0

7

Ju

l-07

Sep

-07

No

v-0

7

Jan

-08

Mar-

08

May-0

8

Ju

l-08

Sep

-08

No

v-0

8

Jan

-09

Mar-

09

May-0

9

Ju

l-09

Sep

-09

No

v-0

9

Jan

-10

Mar-

10

May-1

0

Ju

l-10

Sep

-10

No

v-1

0

Jan

-11

Air travel rebounded after being depressed by severe

winter weather conditions in Europe and North America

7.4% 1.6 % -3.5% 8.2%

World – International RPK Growth Rate (% yoy)

IcelandVolcano

Economic Recession

LehmanBrothers

Bankrupcy

8%

17

Airline Financial Results Airline Financial Results -- WorldWorld

High fuel prices squeeze airline profits despite better economic outlook2011F net profit of US$8.6bi, down from US$9.1bi in last December forecast

Net Profit/Loss (US$ billion)

-20

-15

-10

-5

0

5

10

15

20

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

E

20

11

F

Ne

t P

rofi

t/L

os

s (

US

$ B

illio

n)

-8

-6

-4

-2

0

2

4

6

8

Ne

t M

arg

in (

%)

Net Profit Net Loss Net Margin

Region 2009 2010E 2011F

Africa - 0.1 0.1 0.0

Asia Pacific - 2.7 7.6 3.7

Europe - 4.3 1.4 0.5

Latin America 0.5 1.0 0.3

Middle East - 0.6 1.1 0.7

North America - 2.7 4.7 3.2

World - 9.9 16.0 8.6

Around 6,875 jet deliveries (30-120 seats) in the next 20 years (US$ 200 bi)

18

Embraer Market Forecast (2010Embraer Market Forecast (2010--2029)2029)

North

America

84032%

North

America

2,40035%

Latin

America

31512%

Latin

America

5758%

Europe

58022%

Europe

1,51022%

Russia / CIS

1556%

Russia / CIS

4056%

Africa

803%

Africa

2203%

Middle East

1054%

Middle East

2404%

Asia Pacific

2108%

Asia Pacific

5758%

China

34013%

China

95014%

Projected Deliveries - Jets

Market Segment

(Seats)

2010 – 2019

Deliveries

30-60 60

61-90 1,015

91-120 1,550

30-120 2,625

Market Segment

(Seats)

2010 – 2029

Deliveries

30-60 475

61-90 2,515

91-120 3,885

30-120 6,875

• Scope Clauses relaxation allowing 80-seater aircraft as a natural growth of RJ50s in the US

• Right-sizing of narrow-body operations

• Regional aviation development in Emerging Markets

• Acceleration of replacement of old & inefficient jets

19

MRJ70

MRJ90

ARJ21

E195

E190

E175

E170

SSJ100/95

CS100

60

70

80

90

100

110

120

1800 2000 2200 2400 2600 2800 3000 3200

Se

at

Ca

pa

cit

y (3

2''

pit

ch

)

Range (nm)

110 Seats

100 Seats

70-90 Seats

Competitive Scenario

EE--Jets vs. New EntrantsJets vs. New Entrants

20

PrePre--Owned ERJ TransactionsOwned ERJ Transactions

More than 200 ERJ transactions since 2000

BMI – United Kingdom

FinnComm - Finland

Satena - Colombia

Air Namibia - Namibia

Republic - USA

Dniproavia - Ukraine

City Airline - Sweden

South African Airlink - USA

Passaredo - Brazil

Aeromexico Connect - Mexico

Diexim Expresso - Angola

Air26 - Angola

22

Product PortfolioProduct Portfolio

Large

Aircraft Model

Phenom 100

Phenom 300

Legacy 450

Legacy 500

Legacy 600

Lineage 1000

Seats / Range

4 / 1,160 nm

6 / 1,800 nm

4 to 8 / 2,200 to 2,300 nm

4 to 8 / 2,800 to 3,200 nm

10 to 14 / 3,250 nm

13 to 19 / 4,400 to 4,500 nm

Entry

Light

Mid-light

Mid-size

Ultra-large

Super Mid-Size

Certified: 2008

Certified: 2009

Expected Certification: 2013

Certified: 2001

Certified: 2008

Expected Certification: 2012

Ultra-Long Range

Competitors

• Cessna - MustangCJ1+

• Cessna - CJ3• Hawker - H400XP

• Bombardier -Lear 60XR

• Cessna - XLS+

• Cessna - Sovereign• Hawker - H900XP

• Bombardier -Challenger 300/605

• Dassault – Falcon2000EX/LX

• Airbus - A318 Elite

Legacy 650 10 to 14 / 3,900 nmCertified: 2010

• Bombardier –Global XRS

• Gulfstream – G550

Fleet in OperationFleet in Operation

23

Legacy 600/650 >190 a/c

Lineage 1000 / 170 Shuttle>10 a/c

Phenom 100 ~200 a/c

Phenom 300 ~30 a/c

24

25% 24% 22% 21% 20%

33% 35% 37% 40%33%

7% 7% 7% 6%

9%

12% 13% 13% 14%

11%

2.7% 3.1% 3.5% 3.3%14%

19% 16% 16% 14% 11%

2% 3% 2% 1% 2%

2005 2006 2007 2008 2009

% O

EM

Sh

are

–T

ota

l u

nit

s

749 885 1,040 1,154 870

Market ShareMarket Share

OthersHawker-BeechEmbraer Gulfstream

Dassault

Cessna

Bombardier

Deliveries share (units)Revenue share (US$ - based on B&CA list prices)

Market Deliveries 2010: 763 units.

Embraer Deliveries: 145 units.

Market Revenue 2010: $18.2 Bi.

Embraer Revenue: $1.1 Bi.

30% 29% 28% 29% 28%

16% 16% 17% 18%12%

11% 11% 12% 12%18%

23% 23% 23% 24% 21%

3.5% 3.9% 4.7% 4.2% 6.5%10% 9% 8% 8% 8%

5% 8% 6% 5% 6%

2005 2006 2007 2008 2009

% O

EM

Sh

are

–T

ota

l R

ev

en

ue

s U

S$

$13.2Bi $16.6Bi $19.3Bi $22.2Bi $17.2Bi

2010

763

7%

2010

$18.2Bi

19%

27%

7%

22%

21%

6%

10%

20%

23%

12%

13%

10%

3%

Industry Deliveries (units)

20112011--20 Market Forecast World Deliveries20 Market Forecast World Deliveries

0

40

80

120

160

200

240

2000-10 2011-20

US$ 169.6 Bi(9,029 jets)

US$ 210 Bi(10,000 jets)

Historic Forecast

Industry Revenues

More than 10,000 jets: US$ 210 billion over the next 10 years

25

0

200

400

600

800

1.000

1.200

1.400

1.600

I II III I I II III I I II III I I II III I I II III I I II III I I II III

2004 2005 2006 2007 2008 2009 2010

bill

ion

s o

f do

llars

U.S. Corporate ProfitsU.S. Corporate Profits

Financial

Nonfinancial

2007 avg

Low

Current

+100%

+10%

Global Stock Markets return %

Highlighted area: >10% overall drop

Stock MarketsStock Markets

SSE Composite (China)

IBOVESPA (Brazil)

S&P500 (US)

FTSE100 (UK)

RTS (Russia)

28

Business Jets TrafficBusiness Jets Traffic

US/FAA Bizjet Flight Activity

European Bizjet Flight Activity

20052007

20062004

2008

2009

2010

130

140

150

160

170

180

190

200

210

220

230

Jan

Feb Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec

2011

2005

2007

2006

2004

20082009

25

30

35

40

45

50

55

60

Jan

Feb Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec

20102011

29

PrePre--owned Inventory: Recoveringowned Inventory: Recovering

Business Jets For Sale

0

500

1000

1500

2000

2500

3000

3500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

99 00 01 02 03 04 05 06 07 08 09 10 11

Un

its

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

% o

f act

ive

fleet

Fleet up to 5 yrs and positions Positions

Fleet up to 5 yrs Fleet from 6 to 10 yrs

Fleet older than 10 yrs % for sale (per total active fleet)

up to 10 yrs % for sale

2008: Net increase of 1100 a/c

2009: Net increase of 33 a/c

2010: Net decrease of 155 a/c

2011: Net decrease of 94 a/c

14.2%

2555 jets

9.3%

761 jets

31

Defense and Security PortfolioDefense and Security Portfolio

Advanced Training and

Light AttackTransport of AuthoritiesISR (Intelligence, Surveillance

and Reconnaissance)

Modernization Programs Command and Control Systems

Military Tactical Transport

Services

32

Worldwide PresenceWorldwide Presence

Angola

Belgium

Brazil

Niger

France

Gabon

India

Paraguay

Mexico

Peru

Chile

Colombia

Honduras

Uruguay

Argentina

Greece

Italy

Nigeria

EcuadorEquatorial Guinea

Pakistan

Thailand

Dominican Rep.

Panama

United States United Kingdom¹

Kuwait¹

Mauritania

Kenya¹

Togo

Germany

Portugal

Spain

Sweden

Luxembourg

Chad

Libya

Egypt

Tunisia

Embraer Defense and Security is present in more than 40 countries.

Canada

Switzerland

Venezuela

Indonesia

Super TucanoSuper Tucano

33•Ref.: March, 2011

• Firm orders: 180 aircraft

• Brazil: 99

• Colombia: 25

• Dominican Republic: 8

• Chile: 12

• Ecuador: 18

• Indonesia: 8

• XE Aviation: 1

• Undisclosed: 9

• Deliveries: 152 aircraft

• To be delivered: 28 aircraft

• Prospects:

• Latin America

• South East Asia

• USA

• Africa

• Towards the end of the “Initial Definition Phase”

• Market Forecast 2025: 700 aircraft / US$ 50+ bi

• New tactical military transport aircraft

• Payload: 23 ton / Range: 1400 nm

• Brazil, Chile, Colombia, Portugal, Czech Republic and Argentina signed LOI for up to 60 KC-390 aircraft.

Length: 33.81 m (110.9 ft)

Wingspan: 35.06 m (115.0 ft)

Height: 10.26 m (33.7 ft)

EMBRAER KCEMBRAER KC--390390

34

35

KCKC--390 Master Schedule390 Master Schedule

Wind Tunnel Testing

PDR CDR

Preliminary DesignPhase - PD

Initial Definition Phase - IDP

Joint Definition Phase - JDP

Detailed Design and Certification PhaseDDP

2009 2010 2011 2012 2013 2014 2015 2016

Loads CalculationLoads Calculation

Structures CalcStructures Calc

DrawingsDrawings

Tooling Tooling

Prototypes

1 2

IOC IOC

FOC FOC

Structural Testing Structural Testing

Partnership and Supplier Procurement

Wind Tunnel Testing

PDR CDR

Preliminary DesignPhase - PD

Initial Definition Phase - IDP

Joint Definition Phase - JDP

Detailed Design and Certification PhaseDDP

2009 2010 2011 2012 2013 2014 2015 2016

Loads CalculationLoads Calculation

Structures CalcStructures Calc

DrawingsDrawings

Tooling Tooling

Prototypes

1 2

IOC IOC

FOC FOC

Structural Testing Structural Testing

Partnership and Supplier Procurement

Program running on schedule, in final phase of main partners selection

and geared-up for full-scale development.

Financial Results IFRSFinancial Results IFRS

37

Net Revenues / SG&A ExpensesNet Revenues / SG&A Expenses

Net Revenues - US$ Million

Net Revenues Gross Margin

2009

2010

5,498

5,364

19.5%

19.1%

1,0441,358

1,630

992

1,970

4Q09 1Q10 2Q10 3Q10 4Q10

93 86 94 89

55

35

49 53

61

106

4Q09 1Q10 2Q10 3Q10 4Q10

142

167

121

143

SG&A Expenses - US$ Million

2009

2010

Selling ExpensesG&A Expenses

191

198

305

374

148

38

Income from Operations / EBITDAIncome from Operations / EBITDA

EBIT EBIT Margin

Income from Operations - US$ Million

2009

2010

379

392

6.9%

7.3%

71

122

66

39

132

6.4% 6.7%9.0%7.2%

2.4%

4Q09 1Q10 2Q10 3Q10 4Q10

EBITDA EBITDA Margin

EBITDA - US$ Million

2009

2010

609

611

10.0%

11.4%

105 117

166131

197

6.4%

12.2%11.8%

12.5% 10.0%

4Q09 1Q10 2Q10 3Q10 4Q10

39

Net Margin

Net Income / Free Cash FlowNet Income / Free Cash Flow

Net Income

Net Income - US$ Million

2009

2010

465

330

8.5%

6.2%

95

24

57

126 123

4.2% 6.2%5.8%

12.1%

2.4%

4Q09 1Q10 2Q10 3Q10 4Q10

Free Cash Flow - US$ Million

2009

2010

31

287

383

(60)

193

(66)

220

4Q09 1Q10 2Q10 3Q10 4Q10

40

Indebtedness Profile / Net CashIndebtedness Profile / Net Cash

Total Debt 4Q10: US$ 1.43 Billion

Long-term Short-term

Loans Average Maturity (Years)

Indebtedness Maturity

Total Cash 4Q10: US$ 2.13 Billion

488 444

652 618692

4Q09 1Q10 2Q10 3Q10 4Q10

78%

94%

29% 26%

95%

71%74%

5%6%

22%

6.36.15.8

4.9 5.0

4Q09 1Q10 2Q10 3Q10 4Q10

Net Cash - US$ Million

2011 Outlook IFRS2011 Outlook IFRS

0.05 0.15

0.100.40

0.7 14%

0.6 11%

1.2 20%

3.1 55%

42

Net Revenues US$ 5.36 billion US$ 5.60 billion~5%

Commercial aviation

Executive aviation Aviation services and others

Defense and security

US$ Billion

2011 Outlook2011 Outlook

2011 Outlook2011 Outlook2010 Results2010 Results

43

US$ 611 millionEBITDA

EBITDA Margin 11% 11%

US$ 610 million

7.5%

US$ 420 million~7%US$ 392 millionEBIT

EBIT Margin 7.3% ~3%

2011 Outlook2011 Outlook

2011 Outlook2011 Outlook2010 Results2010 Results

44

* Product development costs are differed and amortized upon aircraft delivery.** 2010 result and 2011 estimate in IFRS.

2011 Outlook2011 Outlook

2011 Outlook2011 Outlook2010 Results2010 Results

US$ Million

CAPEX

R&D

Investment / Revenue197

144 151

30091

235

104 74

200

113

260

209

5%

7%

9%9%

4%5%

2006 2007 2008 2009 2010** 2011E**

Research

Development *

US$ 72 million

US$ 79 million US$ 210 million

US$ 90 million

CAPEX US$ 74 million US$ 200 million

Corporate Information

Corporate InformationCorporate Information

10th anniversaries: NYSE Euronext listing.

Presence in China, Singapore and GPX.

46

Embraer elected for the 2nd consecutive year, one

of the best companies to work for in Brazil.

2010 Accomplishments2010 Accomplishments

Embraer selected as Gold Class on

the DJSI and also on the ISE.

47

Lean Results: ELean Results: E--Jets Final Assembly Jets Final Assembly

Line TransformationLine Transformation

“Dock” layout - 2008 Assembly Line – 2009 Assembly Line – 2011

0

0

68

8

4

Mar/11 (10ac/month)

00,21,51,510Over time (% of work hours)

001,7732Number of non-conformity per a/c

688995106212Work in process (US$mi)

78101218Cycle time (days)

445612Number of positions

Out/11 (12ac/month)

June/2010 (8ac/month)

Sep/2009 (10ac/month)

July/2009 (10ac/month)

May/2008 (15ac/month)

Performance indicators

0

0

68

8

4

Mar/11 (10ac/month)

00,21,51,510Over time (% of work hours)

001,7732Number of non-conformity per a/c

688995106212Work in process (US$mi)

78101218Cycle time (days)

445612Number of positions

Out/11 (12ac/month)

June/2010 (8ac/month)

Sep/2009 (10ac/month)

July/2009 (10ac/month)

May/2008 (15ac/month)

Performance indicators

48

Automation JourneyAutomation Journey

49

Automation Initiatives 2010Automation Initiatives 2010

Automation initiatives continues in 2011…

50

Looking to the Future Looking to the Future -- Lean Design Lean Design

Process and product development

Lean Design

Optimize product value, prevent waste in the production processMinimum number of parts, low complexity of parts,

product maturity, appropriate accuracy, less variability in the project, etc..

Lean Manufacturing

Transport, storage,motion, waiting,overproduction,defects waste elimination

Potentiates

RWK

51

Sustainability InitiativesSustainability Initiatives

Brazilian Alliance for Bio-fuel

Reforestation Projects

ISO 14001 and OHSAS 18001 Certifications

Social, Environmental and Economic DimensionsSocial, Environmental and Economic Dimensions

1st ethanol powered aircraft in the World

IpanemaRecycling

Corporate ValuesGreener Technology

Social Activities

52

People DevelopmentPeople Development

Graduate

31%

Postgrad

5% Ph.D.

2%

High

School

62%

47477274307274301549215492TotalTotal

337425225Intern

13105583Pilots

4627622606Administrative

56862291530Professional

271973247279Operational

701344981908Technician

782404393102Engineering

4332768759Leadership

Per capital hoursHoursTrained EmployeesCategory

Trainings / Professional CategoryTrainings / Professional Category

47477274307274301549215492TotalTotal

337425225Intern

13105583Pilots

4627622606Administrative

56862291530Professional

271973247279Operational

701344981908Technician

782404393102Engineering

4332768759Leadership

Per capital hoursHoursTrained EmployeesCategory

Trainings / Professional CategoryTrainings / Professional Category

•• 109.835 Attendances109.835 Attendances

•• 727.430 hours727.430 hours•• Total investment:Total investment:

R$ 5.465.878,00R$ 5.465.878,00

Identify and Nurturing of newly graduated talents 14 Classes concluded (1031 attendees)

53

Corporate GovernanceCorporate Governance

Nov/2010

54

723,665,044 Voting Shares723,665,044 Voting Shares

Ownership StructureOwnership Structure

February, 2011

NYSE OTHERS

36.8%

OPPENHEIMER

FUND'S

7.2%

THORNBURG

INVESTMENT

6.3%

BM&FBOVESPA

OTHERS

25.2%

BNDESPAR

5.5%

PREVI

12.8%GRUPO

BOZANO

6.0%

NYSE

50.4% 49.6%

BM&FBOVESPA

55

EPADS and Pay OutEPADS and Pay Out

Pay OutEPADS

2006-2008: US GAAP2009-2010: IFRS*

2.11

2.64 2.14

2.57

1.83

53% 68% 52%

26% 34%

2006 2007 2008 2009* 2010*

56

Dividend YieldDividend Yield

Percentage (%)

2006-2008: US GAAP2009-2010: IFRS

2.012.91

4.34

3.28

2.23

2006 2007 2008 2009 2010

57

58

Forward Looking StatementForward 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.