UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549





FORM 20-F







| ̈ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------------

OR



|x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

For the fiscal year ended December 31, 2015

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

OR



| ̈ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | -------------------------------------------------------------------------------------------

Commission file number 001-15102





EMBRAER S.A.

(Exact name of Registrant as specified in its charter)

EMBRAER Inc.

(Translation
of Registrants name into English)

Federative Republic of Brazil

(Jurisdiction of incorporation)

Avenida Presidente Juscelino Kubitschek, 1909

15o andarTorre NorteSão Paulo Corporate Towers

04543-907 São Paulo/SPBrasil

(Address of principal executive offices)

Eduardo Couto

Head of
Investor Relations

(55) 11 3841 6083

Investor relations department, (55) 11 3841 6083, investor.relations@embraer.com.br

(Name, Telephone, E-mail and/or facsimile number and Address of Company Contact Person)





Securities registered or to be registered pursuant to Section 12(b) of the Act



|                                                                                                                                                                                                                               |  |                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -----------------------------------------
|Title of each class:                                                                                                                                                                                                           |  | Name of each exchange on which registered
|Common shares, without par value (represented by, and traded only in the form of, American Depositary Shares (evidenced by American
Depositary Receipts), with each American Depositary Share representing four common shares) |  | New York Stock Exchange                  
|5.150% Notes due 2022 of
Embraer S.A.                                                                                                                                                                                          |  | New York Stock Exchange                  
|5.050% Guaranteed Notes due
2025 of Embraer Netherlands Finance B.V.                                                                                                                                                           |  | New York Stock Exchange                  





Securities registered or to be registered pursuant to Section 12(g) of the Act

None.

Securities for which
there is a reporting obligation pursuant to Section 15(d) of the Act

Title of each class

6.375% Guaranteed Notes due 2017 of Embraer Overseas Ltd. Guaranteed by Embraer S.A.

6.375% Guaranteed Notes due 2020 of Embraer Overseas Ltd. Guaranteed by Embraer S.A.

Number of outstanding shares of each of the issuers classes of capital or common stock as of December 31, 2015:

736,951,304 common shares, without par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes  x    No   ̈

If this report is an annual or transition report, indicate by check mark if the registrant is
not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes   ̈    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.

Yes  x    No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit and post such files).

Yes   ̈    No   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer  x
                Accelerated Filer   ̈
                Non-accelerated filer   ̈

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:



|             |  |                                                                                                          |  |         
|------------ |  | -------------------------------------------------------------------------------------------------------- |  | --------
| ̈  U.S. GAAP |  | x  International Financial Reporting Standards as issued
by the International Accounting Standards Board |  | Other   ̈

If Other has been checked in response to the previous question, indicate by check mark which
financial statement item the registrant has elected to follow.

Item 17   ̈    Item 18   ̈

If this is an annual report, indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).

Yes   ̈    No  x



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TABLE OF CONTENTS

Part I



|         |  |                                                         |  |      |     | 
|-------- |  | ------------------------------------------------------- |  | ---- | --- | 
|         |  |                                                         |  | Page |    
|ITEM 1.  |  | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS   |  |      | 3   | 
|ITEM 2.  |  | OFFER STATISTICS AND EXPECTED TIMETABLE                 |  |      | 3   | 
|ITEM 3.  |  | KEY INFORMATION                                         |  |      | 3   | 
|3A.      |  | Selected Financial Data                                 |  |      | 3   | 
|3B.      |  | Capitalization and Indebtedness                         |  |      | 7   | 
|3C.      |  | Reasons for the Offer and Use of Proceeds               |  |      | 7   | 
|3D.      |  | Risk Factors                                            |  |      | 8   | 
|ITEM 4.  |  | INFORMATION ON THE COMPANY                              |  |      | 20  | 
|4A.      |  | Unresolved Staff Comments                               |  |      | 20  | 
|4B.      |  | History and Development of the Company                  |  |      | 20  | 
|4C.      |  | Business Overview                                       |  |      | 27  | 
|4D.      |  | Organizational Structure                                |  |      | 46  | 
|4E.      |  | Property, Plant and Equipment                           |  |      | 46  | 
|ITEM 5.  |  | OPERATING AND FINANCIAL REVIEW AND PROSPECTS            |  |      | 49  | 
|5A.      |  | Operating Results                                       |  |      | 49  | 
|5B.      |  | Liquidity and Capital Resources                         |  |      | 65  | 
|5C.      |  | Research and Development, Patents and Licenses, etc.    |  |      | 70  | 
|5D.      |  | Trend Information                                       |  |      | 72  | 
|5E.      |  | Off-Balance Sheet Arrangements                          |  |      | 77  | 
|5F.      |  | Tabular Disclosure of Contractual Obligations           |  |      | 80  | 
|5G.      |  | Safe Harbor                                             |  |      | 81  | 
|ITEM 6.  |  | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES              |  |      | 81  | 
|6A.      |  | Directors and Senior Management                         |  |      | 81  | 
|6B.      |  | Compensation                                            |  |      | 87  | 
|6C.      |  | Board Practices                                         |  |      | 89  | 
|6D.      |  | Employees                                               |  |      | 91  | 
|6E.      |  | Share Ownership                                         |  |      | 92  | 
|ITEM 7.  |  | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS       |  |      | 92  | 
|7A.      |  | Major Shareholders                                      |  |      | 92  | 
|7B.      |  | Related Party Transactions                              |  |      | 93  | 
|7C.      |  | Interests of Experts and Counsel                        |  |      | 95  | 
|ITEM 8.  |  | FINANCIAL INFORMATION                                   |  |      | 95  | 
|8A.      |  | Consolidated Statements and Other Financial Information |  |      | 95  | 
|8B.      |  | Significant Changes                                     |  |      | 100 | 
|ITEM 9.  |  | THE OFFER AND LISTING                                   |  |      | 100 | 
|9A.      |  | Offer and Listing Details                               |  |      | 100 | 
|9B.      |  | Plan of Distribution                                    |  |      | 102 | 
|9C.      |  | Markets                                                 |  |      | 102 | 
|9D.      |  | Selling Shareholders                                    |  |      | 104 | 
|9E.      |  | Dilution                                                |  |      | 104 | 
|9F.      |  | Expenses of the Issue                                   |  |      | 104 | 
|ITEM 10. |  | ADDITIONAL INFORMATION                                  |  |      | 104 | 
|10A.     |  | Share Capital                                           |  |      | 104 | 
|10B.     |  | Memorandum and Articles of Association                  |  |      | 104 | 
|10C.     |  | Material Contracts                                      |  |      | 117 | 
|10D.     |  | Exchange Controls                                       |  |      | 117 | 
|10E.     |  | Taxation                                                |  |      | 118 | 
|10F.     |  | Dividends and Paying Agents                             |  |      | 125 | 
|10G.     |  | Statements by Experts                                   |  |      | 125 | 
|10H.     |  | Documents on Display                                    |  |      | 125 | 
|10I.     |  | Subsidiary Information                                  |  |      | 126 | 



i



---

|         |  |                                                            |  |      |     | 
|-------- |  | ---------------------------------------------------------- |  | ---- | --- | 
|         |  |                                                            |  | Page |    
|ITEM 11. |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |  |      | 126 | 
|ITEM 12. |  | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES     |  |      | 130 | 
|12A.     |  | Debt Securities                                            |  |      | 130 | 
|12B.     |  | Warrants and Rights                                        |  |      | 130 | 
|12C.     |  | Other Securities                                           |  |      | 130 | 
|12D.     |  | American Depositary Shares                                 |  |      | 130 | 

Part II



|          |  |                                                                              |  |      |     | 
|--------- |  | ---------------------------------------------------------------------------- |  | ---- | --- | 
|          |  |                                                                              |  | Page |    
|ITEM 13.  |  | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES                              |  |      | 132 | 
|ITEM 14.  |  | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |  |      | 132 | 
|ITEM 15.  |  | CONTROLS AND PROCEDURES                                                      |  |      | 132 | 
|ITEM 16.A |  | AUDIT COMMITTEE FINANCIAL EXPERT                                             |  |      | 133 | 
|ITEM 16.B |  | CODE OF ETHICS                                                               |  |      | 133 | 
|ITEM 16.C |  | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                       |  |      | 133 | 
|ITEM 16.D |  | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                   |  |      | 134 | 
|ITEM 16.E |  | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS       |  |      | 134 | 
|ITEM 16.F |  | CHANGE IN REGISTRANTS CERTIFYING ACCOUNTANT                                 |  |      | 135 | 
|ITEM 16.G |  | CORPORATE GOVERNANCE                                                         |  |      | 135 | 
|ITEM 16.H |  | MINE SAFETY DISCLOSURE                                                       |  |      | 137 | 

Part III



|         |  |                      |  |      |     | 
|-------- |  | -------------------- |  | ---- | --- | 
|         |  |                      |  | Page |    
|ITEM 17. |  | FINANCIAL STATEMENTS |  |      | 137 | 
|ITEM 18. |  | FINANCIAL STATEMENTS |  |      | 137 | 
|ITEM 19. |  | EXHIBITS             |  |      | 138 | 



ii



---

INTRODUCTION

In this annual report, Embraer, we, us, our or the Company refer to Embraer S.A.
and its consolidated subsidiaries. All references herein to the real, reais or R$ are to the Brazilian real, the official currency of Brazil. All references to US$,
dollars or U.S. dollars are to United States dollars.

Presentation of Financial and Other Data

Financial Data

Our audited
consolidated financial statements as of and for the years ended December 31, 2015, 2014 and 2013 are included in this annual report.

Our consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, or IFRS, as issued by
the International Accounting Standards Board, or IASB.

After analyzing our operations and businesses with regard to the applicability of
International Accounting Standards, or IAS, 21  The Effects of Changes in Foreign Exchange Rates, particularly in relation to the factors involved in determining our functional currency, management concluded that our functional
currency is the U.S. dollar. This conclusion was based on an analysis of the following factors, as set forth in IAS 21: (1) the currency that most influences sales prices of goods and services; (2) the currency of the country whose
competitive forces and regulations most determine the sale prices of our goods and services; (3) the currency that most influences labor, materials and other costs of providing goods and services; (4) the currency in which the funds for
financial operations are largely obtained; and (5) the currency in which revenue from operations is usually accumulated. Items included in the financial statements of each of our subsidiaries are measured using the currency of the primary
economic environment in which such subsidiary operates. Our audited consolidated financial statements included elsewhere in this annual report are presented in U.S. dollars, which is our presentation currency.

In our 2015, 2014 and 2013 consolidated financial statements, gains or losses resulting from the remeasurement of the monetary items and from
foreign currency transactions have been reported in the consolidated statement of income as a single line item.

For certain purposes,
such as providing reports to our Brazilian shareholders, filing financial statements with the Comissão de Valores Mobiliários (Brazilian securities commission), or CVM, and determining dividend payments and other distributions
and tax liabilities in Brazil, we have prepared, and will continue to be required to prepare, financial statements in accordance with Law No. 6,404 of December 15, 1976, as amended, or the Brazilian Corporate Law.

Because we list our common shares on the Novo Mercado segment of the BM&FBOVESPA S.A.Bolsa de Valores, Mercadorias e
Futuros de São Paulo, or São Paulo Stock Exchange, as of January 2009 we have been required to translate our quarterly and annual financial statements into English. Foreign private issuers are not subject to the quarterly reporting
requirements of Exchange Act Rules 13a-13 and 15d-13. Accordingly, foreign private issuers that file annual reports on Form 20-F are only required to promptly furnish, in a Form 6-K, material information such as in a press release that is
(1) distributed to stockholders or filed with a national exchange, if made public by that exchange, or (2) required by its domestic laws to be made public.

Other Data and Backlog

In this annual report:



| |  |  | some of the financial data reflects the effect of rounding;
| | - |  | -----------------------------------------------------------



| |  |  | aircraft ranges are indicated in nautical miles;
| | - |  | ------------------------------------------------





1



---

| |  |  | one nautical mile is equal to approximately 1.15 ordinary or statute miles, or approximately 1.85 kilometers;
| | - |  | ---------------------------------------------------------------------------------------------------------------



| |  |  | aircraft speeds are indicated in nautical miles per hour, or knots, or in Mach, which is a measure of the speed of sound;
| | - |  | -------------------------------------------------------------------------------------------------------------------------



| |  |  | the term regional jet refers to narrow body jet aircraft with 30-60 passenger seats;
| | - |  | --------------------------------------------------------------------------------------



| |  |  | the term mid-capacity jet refers to jet aircraft with 70-130 passenger seatsall of our regional and mid-capacity jet aircraft are sold in the commercial aviation segment;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the term commercial aircraft, as it applies to Embraer, refers to our regional jets and mid-capacity jets;
| | - |  | ------------------------------------------------------------------------------------------------------------



| |  |  | the terms entry-level jet and light jet refer to executive jets that usually carry from four to eight passengers and up to nine passengers, respectively, that are designed for short take-off
distances;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the term mid-light refers to executive jets that usually carry up to nine passengers and can cover distances ranging from 1,700 to 3,000 nautical miles;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the term midsize refers to executive jets that usually carry up to 12 passengers and can cover distances ranging from 3,000 to 3,300 nautical miles;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the term large refers to executive jets that usually carry up to 19 passengers and can cover distances ranging from 3,900 to 5,600 nautical miles;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the term ultra-large jet refers to executive jets that usually have longer ranges and over-sized cabin spaces and can carry up to 19 passengers; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the term executive jets, as it applies to Embraer, refers to our aircraft sold to companies, including fractional ownership companies, charter companies, air-taxi companies and high net-worth individuals.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We calculate our backlog as the sum of the contract values of all firm orders (i) for aircraft that has not yet been
delivered and (ii) for services and technologies contracted and not yet performed. A firm order is a firm commitment from a customer, represented by a signed contract. Options to acquire aircraft are not considered part of our backlog.

Special Note Regarding Forward-Looking Statements

This annual report includes forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended,
or the Securities Act, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, or the Exchange Act, principally in Items 3 through 5 and Item 11 of this annual report. We have based these forward-looking statements largely
on our current expectations and projections about future events and industry and financial trends affecting our business. 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 other markets;
| | - |  | ---------------------------------------------------------------------------------------------



| |  |  | changes in competitive conditions and in the general level of demand for our products;
| | - |  | --------------------------------------------------------------------------------------



| |  |  | managements expectations and estimates concerning our future financial performance, financing plans and programs, and the effects of competition;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the effects of customers canceling, modifying and/or rescheduling contractual orders;
| | - |  | -------------------------------------------------------------------------------------



| |  |  | the effect of changing priorities or reductions in the Brazilian federal government or international government defense budgets on our revenues;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | continued successful development and marketing of the E-Jets family, including the development of the second generation, the E-Jets E2, our line of executive jets (including the Phenom 100, Phenom 300, Lineage 1000,
Legacy 650, Legacy 600, Legacy 450 and Legacy 500) and our defense and security aircraft and services;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



2



---

| |  |  | our level of indebtedness;
| | - |  | --------------------------



| |  |  | anticipated trends in our industry, including but not limited to the continuation of long-term trends in passenger traffic and revenue yields in the airline industry;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | our short- and long-term outlook for the 30-130 seat commercial airline market;
| | - |  | -------------------------------------------------------------------------------



| |  |  | our expenditure plans;
| | - |  | ----------------------



| |  |  | inflation and fluctuations in exchange rates;
| | - |  | ---------------------------------------------



| |  |  | the impact of volatile fuel prices and the airline industrys response;
| | - |  | -----------------------------------------------------------------------



| |  |  | our ability to develop and deliver our products on a timely basis;
| | - |  | ------------------------------------------------------------------



| |  |  | availability of sales financing for our existing and potential customers;
| | - |  | -------------------------------------------------------------------------



| |  |  | existing and future governmental regulation;
| | - |  | --------------------------------------------



| |  |  | our relationship with our workforce; and
| | - |  | ----------------------------------------



| |  |  | other risk factors, such as those set forth under Item 3D. Key InformationRisk Factors.
| | - |  | ------------------------------------------------------------------------------------------

The words believe, may, will, forecast, estimate, plan,
continue, anticipate, intend, expect and similar words herein are intended to identify forward-looking statements. We undertake no obligation 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 annual report might not occur. Our actual results and performance could differ
substantially from those anticipated in our forward-looking statements. As a result of various factors such as those risks described in Item 3D. Key InformationRisk Factors, undue reliance should not be placed on these
forward-looking statements.

Part I



|ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
|------- | -----------------------------------------------------

Not applicable.



|ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE
|------- | ---------------------------------------

Not applicable.



|ITEM 3. | KEY INFORMATION
|------- | ---------------



|3A. | Selected Financial Data and Other Data
|--- | --------------------------------------

The following table presents our selected
financial data which has been derived from our consolidated audited financial statements prepared in accordance with IFRS as issued by the IASB and other data as of and for the years ended December 31, 2015, 2014, 2013, 2012 and 2011. The
selected financial data for the years ended December 31, 2015, 2014 and 2013 is derived from our consolidated financial statements. You should read this selected financial data in conjunction with our audited consolidated financial statements
and related notes thereto included elsewhere in this annual report. For information on our segment results, see Note 38 to our audited consolidated financial statements for the year ended December 31, 2015.





3



---

Selected Financial Data



|                                                   |  |                         |          |   |      |  |          |      |  |  |          |   |  |      |          |   |  |  |          |  
|-------------------------------------------------- |  | ----------------------- | -------- | - | ---- |  | -------- | ---- |  |  | -------- | - |  | ---- | -------- | - |  |  | -------- | -
|                                                   |  | Year Ended December 31, |         
|Consolidated Statements of Income Data             |  | 2015                    |          |   | 2014 |  |          | 2013 |  |  | 2012     |   |  | 2011 |         
|                                                   |  | (in US$ millions)       |         
|Revenue                                            |  |                         | 5,928.1  |   |      |  | 6,288.8  |      |  |  | 6,235.0  |   |  |      | 6,167.0  |   |  |  | 5,790.9  |  
|Cost of sales and services                         |  |                         | (4,816.8 | ) |      |  | (5,038.3 | )    |  |  | (4,818.9 | ) |  |      | (4,676.6 | ) |  |  | (4,488.1 | )
|Gross profit                                       |  |                         | 1,111.3  |   |      |  | 1,250.5  |      |  |  | 1,416.1  |   |  |      | 1,490.4  |   |  |  | 1,302.8  |  
|Operating income (expense)                         |  |                         |          |   |      |  |          |      |  |  |          |   |  |      |          |   |  |  |          |  
|Administrative                                     |  |                         | (182.0   | ) |      |  | (207.5   | )    |  |  | (210.5   | ) |  |      | (279.2   | ) |  |  | (261.3   | )
|Selling                                            |  |                         | (361.6   | ) |      |  | (419.9   | )    |  |  | (454.4   | ) |  |      | (480.4   | ) |  |  | (481.6   | )
|Research                                           |  |                         | (41.7    | ) |      |  | (47.1    | )    |  |  | (74.7    | ) |  |      | (77.3    | ) |  |  | (85.3    | )
|Other operating (expense) income, net              |  |                         | (194.2   | ) |      |  | (32.6    | )    |  |  | 36.9     |   |  |      | (42.8    | ) |  |  | (219.7   | )
|Equity in losses of associates                     |  |                         | (0.3     | ) |      |  | (0.1     | )    |  |  |         |   |  |      | 1.2      |   |  |  | 0.3      |  
|                                                   |  |                         |          |   |      |  |          |      |  |  |          |   |  |      |          |   |  |  |          |  
|Operating profit before financial income (expense) |  |                         | 331.5    |   |      |  | 543.3    |      |  |  | 713.4    |   |  |      | 611.9    |   |  |  | 318.2    |  
|Financial income (expense), net                    |  |                         | (22.9    | ) |      |  | (24.5    | )    |  |  | (96.4    | ) |  |      | (6.8     | ) |  |  | (90.5    | )
|Foreign exchange gain (loss), net                  |  |                         | 27.6     |   |      |  | (14.9    | )    |  |  | (14.6    | ) |  |      | 8.7      |   |  |  | 20.1     |  
|                                                   |  |                         |          |   |      |  |          |      |  |  |          |   |  |      |          |   |  |  |          |  
|Profit before taxes on income                      |  |                         | 336.2    |   |      |  | 503.9    |      |  |  | 602.4    |   |  |      | 613.8    |   |  |  | 247.8    |  
|Income tax (expense) benefit                       |  |                         | (255.4   | ) |      |  | (156.2   | )    |  |  | (256.4   | ) |  |      | (265.2   | ) |  |  | (127.4   | )
|                                                   |  |                         |          |   |      |  |          |      |  |  |          |   |  |      |          |   |  |  |          |  
|Net income                                         |  |                         | 80.8     |   |      |  | 347.7    |      |  |  | 346.0    |   |  |      | 348.6    |   |  |  | 120.4    |  
|                                                   |  |                         |          |   |      |  |          |      |  |  |          |   |  |      |          |   |  |  |          |  
|Attributable to:                                   |  |                         |          |   |      |  |          |      |  |  |          |   |  |      |          |   |  |  |          |  
|Owners of Embraer                                  |  |                         | 69.2     |   |      |  | 334.7    |      |  |  | 342.0    |   |  |      | 347.8    |   |  |  | 111.6    |  
|Noncontrolling interest                            |  |                         | 11.6     |   |      |  | 13.0     |      |  |  | 4.0      |   |  |      | 0.8      |   |  |  | 8.8      |  



|                                                            |  |                                 |         |  |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|----------------------------------------------------------- |  | ------------------------------- | ------- |  | ---- |  | ------- | ---- |  |  | ------- |  |  | ---- | ------- |  |  |  | ------- | 
|                                                            |  | Year Ended December 31,         |        
|Earnings per Share  Basic                                  |  | 2015                            |         |  | 2014 |  |         | 2013 |  |  | 2012    |  |  | 2011 |        
|                                                            |  | (in US$, except for share data) |        
|Net income attributable to owners of Embraer                |  |                                 | 69.2    |  |      |  | 334.7   |      |  |  | 342.0   |  |  |      | 347.8   |  |  |  | 111.6   | 
|Weighted average number of shares (in thousands)            |  |                                 | 730,205 |  |      |  | 733,677 |      |  |  | 729,001 |  |  |      | 725,023 |  |  |  | 723,667 | 
|Basic earnings per share  U.S. dollars                     |  |                                 | 0.0947  |  |      |  | 0.4562  |      |  |  | 0.4691  |  |  |      | 0.4797  |  |  |  | 0.1542  | 
|                                                            |  |                                 |         |  |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|                                                            |  | Year Ended December 31,         |        
|Earnings per Share  Diluted                                |  | 2015                            |         |  | 2014 |  |         | 2013 |  |  | 2012    |  |  | 2011 |        
|                                                            |  | (in US$, except for share data) |        
|Net income attributable to owners of Embraer                |  |                                 | 69.2    |  |      |  | 334.7   |      |  |  | 342.0   |  |  |      | 347.8   |  |  |  | 111.6   | 
|Weighted average number of shares (in thousands)  diluted  |  |                                 | 730,205 |  |      |  | 733,677 |      |  |  | 729,001 |  |  |      | 725,023 |  |  |  | 723,667 | 
|Dilution for the issuance of stock options (in thousands) 1 |  |                                 | 3,364   |  |      |  | 3,766   |      |  |  | 4,795   |  |  |      | 2,708   |  |  |  | 1,180   | 
|Weighted average number of shares (in thousands)            |  |                                 | 733,569 |  |      |  | 737,463 |      |  |  | 733,796 |  |  |      | 727,731 |  |  |  | 724,847 | 
|Diluted earnings per share                                  |  |                                 | 0.0943  |  |      |  | 0.4538  |      |  |  | 0.4661  |  |  |      | 0.4780  |  |  |  | 0.1540  | 



|(1) | Refers to the effect of potentially dilutive shares.
|--- | ----------------------------------------------------



4



---

|                                                  |  |                   |          |  |      |  |          |      |  |  |          |  |  |      |         |  |  |  |         | 
|------------------------------------------------- |  | ----------------- | -------- |  | ---- |  | -------- | ---- |  |  | -------- |  |  | ---- | ------- |  |  |  | ------- | 
|                                                  |  | At December 31,   |         
|Consolidated Statement of Financial Position Data |  | 2015              |          |  | 2014 |  |          | 2013 |  |  | 2012     |  |  | 2011 |        
|                                                  |  | (in US$ millions) |         
|Cash and cash equivalents                         |  |                   | 2,165.5  |  |      |  | 1,713.0  |      |  |  | 1,683.7  |  |  |      | 1,797.0 |  |  |  | 1,347.8 | 
|Financial investments                             |  |                   | 622.6    |  |      |  | 710.6    |      |  |  | 939.9    |  |  |      | 578.2   |  |  |  | 753.6   | 
|Other current assets                              |  |                   | 3,623.5  |  |      |  | 3,387.1  |      |  |  | 3,144.2  |  |  |      | 2,983.5 |  |  |  | 3,062.5 | 
|Property, plant and equipment                     |  |                   | 2,027.4  |  |      |  | 2,025.8  |      |  |  | 1,993.3  |  |  |      | 1,738.4 |  |  |  | 1,450.4 | 
|Intangible assets                                 |  |                   | 1,405.4  |  |      |  | 1,260.9  |      |  |  | 1,109.1  |  |  |      | 958.8   |  |  |  | 808.3   | 
|Other long-term assets                            |  |                   | 1,825.1  |  |      |  | 1,313.6  |      |  |  | 1,272.3  |  |  |      | 1,425.0 |  |  |  | 1,426.1 | 
|                                                  |  |                   |          |  |      |  |          |      |  |  |          |  |  |      |         |  |  |  |         | 
|Total assets                                      |  |                   | 11,669.5 |  |      |  | 10,411.0 |      |  |  | 10,142.5 |  |  |      | 9,480.9 |  |  |  | 8,848.7 | 
|                                                  |  |                   |          |  |      |  |          |      |  |  |          |  |  |      |         |  |  |  |         | 
|Short-term loans and financing                    |  |                   | 219.4    |  |      |  | 89.7     |      |  |  | 79.3     |  |  |      | 336.3   |  |  |  | 251.8   | 
|Other current payables                            |  |                   | 2,861.0  |  |      |  | 2,463.2  |      |  |  | 2,813.4  |  |  |      | 2,452.4 |  |  |  | 2,586.6 | 
|Long-term loans and financing                     |  |                   | 3,311.1  |  |      |  | 2,418.4  |      |  |  | 2,115.0  |  |  |      | 1,730.2 |  |  |  | 1,406.3 | 
|Other long-term liabilities                       |  |                   | 1,434.3  |  |      |  | 1,574.9  |      |  |  | 1,502.6  |  |  |      | 1,611.7 |  |  |  | 1,486.2 | 
|Company shareholders equity                      |  |                   | 3,741.8  |  |      |  | 3,764.8  |      |  |  | 3,533.6  |  |  |      | 3,258.3 |  |  |  | 3,007.3 | 
|Noncontrolling interest                           |  |                   | 101.9    |  |      |  | 100.0    |      |  |  | 98.6     |  |  |      | 92.0    |  |  |  | 110.5   | 
|                                                  |  |                   |          |  |      |  |          |      |  |  |          |  |  |      |         |  |  |  |         | 
|Total shareholders equity                        |  |                   | 3,843.7  |  |      |  | 3,864.8  |      |  |  | 3,632.2  |  |  |      | 3,350.3 |  |  |  | 3,117.8 | 
|                                                  |  |                   |          |  |      |  |          |      |  |  |          |  |  |      |         |  |  |  |         | 
|Total liabilities and shareholders equity        |  |                   | 11,669.5 |  |      |  | 10,411.0 |      |  |  | 10,142.5 |  |  |      | 9,480.9 |  |  |  | 8,848.7 | 
|                                                  |  |                   |          |  |      |  |          |      |  |  |          |  |  |      |         |  |  |  |         | 



|                                                     |  |                         |          |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
|---------------------------------------------------- |  | ----------------------- | -------- | - | ---- |  | ------ | ---- |  |  | ------ | - |  | ---- | ------ | - |  |  | ------ | -
|                                                     |  | Year Ended December 31, |         
|Other Consolidated Financial Data                    |  | 2015                    |          |   | 2014 |  |        | 2013 |  |  | 2012   |   |  | 2011 |       
|                                                     |  | (in US$ millions)       |         
|Net cash generated (used in) operating activities    |  |                         | 862.5    |   |      |  | 482.3  |      |  |  | 564.6  |   |  |      | 693.0  |   |  |  | 480.1  |  
|Net cash generated (used in) investing activities    |  |                         | (1,417.4 | ) |      |  | (671.5 | )    |  |  | (764.0 | ) |  |      | (617.3 | ) |  |  | (602.0 | )
|Net cash generated by (used in) financing activities |  |                         | 1,224.0  |   |      |  | 333.3  |      |  |  | 192.5  |   |  |      | 422.3  |   |  |  | 96.4   |  
|Depreciation and amortization                        |  |                         | 316.8    |   |      |  | 286.3  |      |  |  | 290.6  |   |  |      | 278.8  |   |  |  | 238.8  |  

Other Data



|                                              |  |                                       |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|--------------------------------------------- |  | ------------------------------------- | --- |  | ---- |  | --- | ---- |  |  | ---- |  |  | ---- | --- |  |  |  | --- | 
|                                              |  | At and for the year endedDecember 31, |    
|Other Data: Aircraft delivered during period: |  | 2015                                  |     |  | 2014 |  |     | 2013 |  |  | 2012 |  |  | 2011 |    
|To the Commercial Aviation Market             |  |                                       | 101 |  |      |  | 92  |      |  |  | 90   |  |  |      | 106 |  |  |  | 105 | 
|ERJ 145                                       |  |                                       |    |  |      |  |    |      |  |  |     |  |  |      |    |  |  |  | 2   | 
|EMBRAER 170                                   |  |                                       | 2   |  |      |  | 1   |      |  |  | 4    |  |  |      | 1   |  |  |  | 1   | 
|EMBRAER 175                                   |  |                                       | 82  |  |      |  | 62  |      |  |  | 24   |  |  |      | 20  |  |  |  | 10  | 
|EMBRAER 190                                   |  |                                       | 8   |  |      |  | 19  |      |  |  | 45   |  |  |      | 62  |  |  |  | 68  | 
|EMBRAER 195                                   |  |                                       | 9   |  |      |  | 10  |      |  |  | 17   |  |  |      | 23  |  |  |  | 24  | 
|To the Defense and Security Market            |  |                                       | 20  |  |      |  | 7   |      |  |  | 6    |  |  |      | 16  |  |  |  |    | 
|EMB 145 AEW&C/RS/MP                           |  |                                       | 1   |  |      |  |    |      |  |  |     |  |  |      | 2   |  |  |  |    | 
|EMB 312 Tucano/AL-X/ Super Tucano             |  |                                       | 19  |  |      |  | 7   |      |  |  | 6    |  |  |      | 14  |  |  |  |    | 
|To the Executive Jets Market                  |  |                                       | 120 |  |      |  | 116 |      |  |  | 119  |  |  |      | 99  |  |  |  | 99  | 
|Legacy 600/650                                |  |                                       | 12  |  |      |  | 18  |      |  |  | 23   |  |  |      | 19  |  |  |  | 13  | 
|Legacy 450/500                                |  |                                       | 23  |  |      |  | 3   |      |  |  |     |  |  |      |    |  |  |  |    | 
|EMBRAER 145/170/190 Shuttle                   |  |                                       |    |  |      |  |    |      |  |  | 2    |  |  |      | 1   |  |  |  |    | 
|Phenom 100                                    |  |                                       | 12  |  |      |  | 19  |      |  |  | 30   |  |  |      | 29  |  |  |  | 41  | 
|Phenom 300                                    |  |                                       | 70  |  |      |  | 73  |      |  |  | 60   |  |  |      | 48  |  |  |  | 42  | 
|Lineage 1000                                  |  |                                       | 3   |  |      |  | 3   |      |  |  | 4    |  |  |      | 2   |  |  |  | 3   | 
|To the General Aviation Market                |  |                                       | 19  |  |      |  | 38  |      |  |  | 60   |  |  |      | 62  |  |  |  | 54  | 
|Light Propeller Aircraft                      |  |                                       | 19  |  |      |  | 38  |      |  |  | 60   |  |  |      | 62  |  |  |  | 54  | 
|Total delivered                               |  |                                       | 260 |  |      |  | 253 |      |  |  | 275  |  |  |      | 283 |  |  |  | 258 | 



5



---

|                                                                           |  |                                        |          |  |      |     |          |      |  |     |          |  |  |      |          |  |  |     |          | 
|-------------------------------------------------------------------------- |  | -------------------------------------- | -------- |  | ---- | --- | -------- | ---- |  | --- | -------- |  |  | ---- | -------- |  |  | --- | -------- | 
|                                                                           |  | At and for the year ended December 31, |         
|Other Data: Aircraft in backlog at the end of period                       |  | 2015                                   |          |  | 2014 |     |          | 2013 |  |     | 2012     |  |  | 2011 |         
|In the Commercial Aviation Market                                          |  |                                        | 513      |  |      |     | 459      |      |  |     | 429      |  |  |      | 185      |  |  |     | 249      | 
|EMBRAER 170                                                                |  |                                        | 3        |  |      |     | 5        |      |  |     | 1        |  |  |      | 10       |  |  |     | 6        | 
|EMBRAER 175                                                                |  |                                        | 169      |  |      |     | 172      |      |  |     | 188      |  |  |      | 35       |  |  |     | 46       | 
|EMBRAER 190                                                                |  |                                        | 55       |  |      |     | 65       |      |  |     | 73       |  |  |      | 109      |  |  |     | 162      | 
|EMBRAER 195                                                                |  |                                        | 19       |  |      |     | 7        |      |  |     | 17       |  |  |      | 31       |  |  |     | 35       | 
|EMBRAER 175E2                                                             |  |                                        | 100      |  |      |     | 100      |      |  |     | 100      |  |  |      |         |  |  |     |         | 
|EMBRAER 190E2                                                             |  |                                        | 77       |  |      |     | 60       |      |  |     | 25       |  |  |      |         |  |  |     |         | 
|EMBRAER 195E2                                                             |  |                                        | 90       |  |      |     | 50       |      |  |     | 25       |  |  |      |         |  |  |     |         | 
|In the Defense and Security Market                                         |  |                                        | 74       |  |      |     | 65       |      |  |     | 38       |  |  |      | 19       |  |  |     | 27       | 
|EMB 145 AEW&C/RS/MP                                                        |  |                                        |         |  |      |     | 1        |      |  |     | 1        |  |  |      | 1        |  |  |     | 3        | 
|EMB 312 Tucano/EMB 314/EP Super Tucano                                     |  |                                        | 14       |  |      |     | 8        |      |  |     | 12       |  |  |      | 18       |  |  |     | 24       | 
|LAS                                                                        |  |                                        | 6        |  |      |     | 17       |      |  |     | 20       |  |  |      |         |  |  |     |         | 
|E99                                                                        |  |                                        | 5        |  |      |     | 5        |      |  |     | 5        |  |  |      |         |  |  |     |         | 
|KC-390                                                                     |  |                                        | 28       |  |      |     | 28       |      |  |     |         |  |  |      |         |  |  |     |         | 
|VU-Y                                                                       |  |                                        | 6        |  |      |     | 6        |      |  |     |         |  |  |      |         |  |  |     |         | 
|F-39                                                                       |  |                                        | 15       |  |      |     |         |      |  |     |         |  |  |      |         |  |  |     |         | 
|In the Executive Jets Market                                               |  |                                        | 163      |  |      |     | 168      |      |  |     | 208      |  |  |      | 272      |  |  |     | 421      | 
|Legacy 450/500/600/650/Phenom 100/300/Lineage 1000/EMBRAER 170/190 Shuttle |  |                                        | 163      |  |      |     | 168      |      |  |     | 208      |  |  |      | 272      |  |  |     | 421      | 
|In the General Aviation Market                                             |  |                                        |         |  |      |     |         |      |  |     |         |  |  |      |         |  |  |     |         | 
|Light Propeller Aircraft                                                   |  |                                        |         |  |      |     |         |      |  |     |         |  |  |      |         |  |  |     |         | 
|Total backlog(in aircraft)                                                 |  |                                        | 750      |  |      |     | 692      |      |  |     | 675      |  |  |      | 476      |  |  |     | 697      | 
|Total backlog (in millions)                                                |  | US$                                    | 22,460.7 |  |      | US$ | 20,920.2 |      |  | US$ | 18,205.5 |  |  | US$  | 12,462.2 |  |  | US$ | 15,441.2 | 

Exchange Rates

Brazils foreign exchange system allows the purchase and sale of currency and the international transfer of reais by any person or
legal entity, regardless of amount, subject to certain regulatory procedures.

Since 1999, the real/U.S. dollar exchange rate has
fluctuated considerably. In the past, the Central Bank has intervened occasionally to control unstable movements in foreign exchange rates. We cannot predict whether the Central Bank or the Brazilian federal government will continue to let the
real float freely or will intervene in the exchange rate market through a currency band system or otherwise. The real may depreciate or appreciate against the U.S. dollar substantially in the future. See Item 3D. Key
InformationRisk FactorsRisks Relating to Brazil.





6



---

The following table sets forth the selling exchange rate, expressed in reais per U.S.
dollar, for the periods indicated:



|                        |  |                                 |        |  |      |  |        |            |  |  |            |  |  |  |        | 
|----------------------- |  | ------------------------------- | ------ |  | ---- |  | ------ | ---------- |  |  | ---------- |  |  |  | ------ | 
|                        |  | Exchange Rate ofReaisto US$1.00 |       
|Year ended December 31, |  | Low                             |        |  | High |  |        | Average(1) |  |  | Period-end | 
|2011                    |  |                                 | 1.5345 |  |      |  | 1.9016 |            |  |  | 1.6709     |  |  |  | 1.8758 | 
|2012                    |  |                                 | 1.7024 |  |      |  | 2.1121 |            |  |  | 1.9588     |  |  |  | 2.0435 | 
|2013                    |  |                                 | 1.9528 |  |      |  | 2.4457 |            |  |  | 2.1741     |  |  |  | 2.3426 | 
|2014                    |  |                                 | 2.1974 |  |      |  | 2.7403 |            |  |  | 2.3547     |  |  |  | 2.6562 | 
|2015                    |  |                                 | 2.5754 |  |      |  | 4.1949 |            |  |  | 3.3876     |  |  |  | 3.9048 | 



|                   |  |                                 |        |  |      |  |        |            |  |  |            |  |  |  |        | 
|------------------ |  | ------------------------------- | ------ |  | ---- |  | ------ | ---------- |  |  | ---------- |  |  |  | ------ | 
|                   |  | Exchange Rate ofReaisto US$1.00 |       
|Month/period ended |  | Low                             |        |  | High |  |        | Average(2) |  |  | Period-end | 
|September 31, 2015 |  |                                 | 3.6725 |  |      |  | 4.1949 |            |  |  | 3.9065     |  |  |  | 3.9729 | 
|October 31, 2015   |  |                                 | 3.7386 |  |      |  | 4.0010 |            |  |  | 3.8801     |  |  |  | 3.8589 | 
|November 30, 2015  |  |                                 | 3.7010 |  |      |  | 3.8506 |            |  |  | 3.7765     |  |  |  | 3.8506 | 
|December 31, 2015  |  |                                 | 3.7476 |  |      |  | 3.9831 |            |  |  | 3.8711     |  |  |  | 3.9048 | 
|January 31, 2016   |  |                                 | 3.9853 |  |      |  | 4.1558 |            |  |  | 4.0524     |  |  |  | 4.0428 | 
|February 29, 2016  |  |                                 | 3.8653 |  |      |  | 4.0492 |            |  |  | 3.9737     |  |  |  | 3.9796 | 



|Source: | Central Bank.
|------- | -------------

|(1) | Represents the average of the exchange rates on the last day of each month during the relevant periods.
|--- | -------------------------------------------------------------------------------------------------------

|(2) | Represents the average of the exchange rates during the relevant periods.
|--- | -------------------------------------------------------------------------

We will pay any
cash dividends and make any other cash distributions with respect to the common shares in reais. Accordingly, exchange rate fluctuations may affect the U.S. dollar amounts received by the holders of American Depositary Shares, or ADSs, upon
the conversion into U.S. dollars by the depositary of our ADS program of such distributions for payment to holders of ADSs. Fluctuations in the exchange rate between the real and the U.S. dollar may also affect the U.S. dollar equivalent of
the real price of our common shares on the São Paulo Stock Exchange.



|3B. | Capitalization and Indebtedness
|--- | -------------------------------

Not applicable.



|3C. | Reasons for the Offer and Use of Proceeds
|--- | -----------------------------------------

Not applicable.





7



---

3D. Risk Factors

Risks Relating to Embraer

A downturn in the
commercial and executive aviation markets may reduce our sales and revenue, and, consequently, our profitability.

We expect that
a substantial portion of our sales will be derived from sales of commercial aircraft and executive jets. Historically, these markets have been cyclical due to a variety of factors that are both external and internal to the air travel industry,
including general economic conditions.

Economic downturns in our industry may reduce air travel demand and corporate and personal
spending, which may negatively impact our Commercial Aviation and Executive Jets segments. Downturns may also lead to a decrease in the volume of financing available to our customers for aircraft purchases, particularly in the aforementioned
segments. A continued downturn in general economic conditions could result in further reductions in air travel and decreased orders for our aircraft. Our customers could also defer or cancel their purchases of our aircraft. We cannot predict the
magnitude or duration of the impact that the above events would have not only on the air transport industry as a whole and on our business in particular.

We depend on key customers.

In
the Commercial Aviation segment, as of December 31, 2015, around 80% of our firm orders in backlog for the EMBRAER 170/190 jet family were from the airlines Skywest, American Airlines, United, Republic, JetBlue, Air France-KLM and Tianjin, and
the leasing company Aldus. We believe that we will continue to depend on a select number of key customers, the loss of any one of which would reduce our sales and our market share. Fewer sales would reduce our profitability.

Progressively, the commercial airline industry is seeking to reduce costs and increase efficiency, and is experiencing a consolidation process
through mergers and acquisitions and alliances through code-sharing arrangements. Although it is expected that such consolidations and alliances may result in the creation of more stable and competitive airlines, they may also have the effect of
reducing the number of existing and potential customers and, possibly, the number of aircraft purchases.

Financial difficulties,
restructurings and bankruptcy proceedings of customer airlines can have a materially adverse effect on our results of operations and financial position. In February 2016, Republic Airways Holdings, which currently operates a fleet of 230 Embraer
Commercial Aviation aircraft (of which 50 are of the ERJ145 family and 180 are E170/E175 models), filed for a Chapter 11 bankruptcy. At the date of the filing, Republic had a total of 24 firm orders for E175 commercial aircraft in our backlog, to be
delivered between 2016 and 2017. As a result, we have provisioned a total of US$100.9 million to account for expected expenses related to obligations from financial guarantees. For more information, see Item 5E  Off-Balance Sheet
Agreements.

In addition, delays in payment cycles by significant customers can negatively affect our cash position and working
capital, as occurred for example in 2014.

In our Defense & Security segment, the Brazilian Federal Government is our largest
customer of defense aircraft products. Revenue from sales to the Brazilian federal government accounted for 59.0% of segment revenue for the year ended December 31, 2015. A decrease in defense investments by the Brazilian federal government due
to budgetary constraints or other factors that are out of our control could decrease our Defense & Security revenue. We cannot assure you that the Brazilian federal government will continue to acquire defense products and services from us
in the future at the same rate or at the same level.

We depend on key suppliers.

We do not manufacture all of the parts and components used in the production of our aircraft. Approximately 83% of the production costs of our
aircraft consist of materials and equipment purchased from our risk-sharing partners and other major suppliers. Risk-sharing arrangements are those in which suppliers are responsible for the design, development and manufacture of major components or
systems of our aircraft. Once risk-sharing partners have been selected and program development and aircraft production have begun, it is difficult to substitute these partners. In some cases, the aircraft are designed specifically to accommodate a
particular component, which cannot be substituted by another manufacturer without significant delays and expense. We work closely with our main suppliers to mitigate any potential risk, but, given our dependence on the supply chain, we cannot assure
you that we will be able to manage this risk.





8



---

We cannot assure you that we will not experience significant delays in obtaining key equipment in
our manufacturing process in the future. Although we work closely with, and monitor the production process of, our risk-sharing partners and major suppliers, the failure of our risk-sharing partners and other major suppliers to meet our performance
specifications, quality standards or delivery schedules or to comply with regulatory requirements (including export control requirements) could affect our ability to deliver new aircraft to customers in a timely manner. In addition, a large amount
of the equipment employed by the aircraft industry is subject to export control regulations and, as such, deliveries are dependent on suppliers having secured the applicable export licenses.

Our aircraft sales are subject to cancellation provisions that may reduce our revenues, profitability, backlog and cash flow.

A portion of our aircraft firm orders is subject to significant contingencies before delivery. Prior to delivery, some of our purchase
contracts may be terminated, or all or a portion of a particular firm order may be canceled, for different reasons, including (i) extended delays in delivering aircraft or failure to obtain certification of the aircraft or otherwise meet
performance milestones and other requirements, (ii) the failure of a customer to honor its aircraft purchases or (iii) production rate shortfalls.

Our customers may also reschedule deliveries or cancel orders, particularly during an economic downturn. In 2015, we had revenue of US$17.3
million related to contractual penalties paid by customers due to contract cancellations, compared to contractual penalty revenues of US$14.5 million in 2014 and US$40.8 million in 2013. Material cancellations, delays or decreases in the number of
aircraft delivered in any year would reduce our sales and revenue, and, consequently, our profitability, cash flow and backlog.

Some of our
aircraft sales may be subject to financial and residual value guarantees and trade-in options that may require us to make significant cash disbursements.

For certain aircraft sales we guarantee the financial performance of a portion of the financing for, and the residual value of, some of our
aircraft that have already been delivered. Financial guarantees are provided to financing parties to support a portion of the payment obligations of purchasers of our aircraft under their financing arrangements to mitigate default-related losses.
These guarantees are collateralized by the financed aircraft.

Residual value guarantees typically ensure that, at the exercise date
(between 6 and 18 years after the aircraft delivery date), the relevant aircraft will have a residual market value equal to a percentage of the original sale price. Most of our residual value guarantees are subject to a limitation (a
cap) and, therefore, on average, our residual value guarantee exposure is limited to 17% of the original sale price. In the event of an exercise by a purchaser of its residual value guarantee, we will bear the difference, if any, between
the guaranteed residual value and the market value of the aircraft at the time of exercise, limited to the cap.

Assuming all customers
who are supported by off-balance sheet financial guarantees defaulted on their aircraft financing arrangements, and also assuming we were required to pay the full aggregate amount of outstanding financial and residual value guarantees and were
unable to remarket any of the aircraft to offset our obligations, our maximum exposure would have been US$676.5 million (or, subtracting provisions and liabilities already recorded in the amount of US$ 134.8 million as reflected in Note 25 to
our audited consolidated financial statements, US$541.7 million) under these guarantees as of December 31, 2015. As a result, we would be obligated to make substantial payments that may not be recoverable through proceeds from aircraft sales or
leases, particularly if we are not able to remarket any of the aircraft to offset our obligations or financing defaults occur with respect to a significant portion of our aircraft. The value of the underlying aircraft is more likely to decrease and
third parties are more likely to default during economic downturns. For further discussion see our exposure to these guarantees in Note 36 to our audited consolidated financial statements and Item 5E  Off Balance Sheet
Agreements.



9



---

In addition, we sometimes provide trade-in options to our customers in purchase agreements for
new aircraft. These options provide customers with the right to trade in aircraft upon the purchase and acceptance of a new aircraft. In 2015, we accepted 25 aircraft, with a total invoiced value of US$ 145.8 million, for trade-in pursuant to
trade-in options. In the aggregate, we are currently subject to trade-in options relating to 31 aircraft, as a result of trade-ins tied to contractual obligations with customers and to their taking delivery of certain new aircraft. In addition,
other aircraft may become subject to trade-in due to new sales agreements. The trade-in price is determined based on the new aircraft sold, as well as other factors, including a market value assessment performed by independent third party
appraisers. We may be required to accept trade-ins at prices that are at market price of the aircraft, which would result in financial loss for us when we receive the aircraft.

We continuously re-evaluate our risk related to financial guarantees and trade-in obligations based on a number of factors, including the
estimated future market value of our aircraft based on third-party appraisals, information on similar aircraft remarketing in the secondary market and the credit rating of the customers.

In 2015, 2014 and 2013, we made provisions of US$192.2 million (excluding US$100.9 million in provisions due to the Chapter 11 filing of
Republic Airways Holdings), US$238.0 million and US$293.5 million, respectively, related to exposure from financial guarantees.

Any
unexpected decrease in the market value of the aircraft covered by trade-in rights or financial guarantees would decrease our ability to recover the amounts payable to satisfy our obligations and cause us to incur additional charges to income. If we
are required to pay amounts related to such guarantees, we may not have sufficient cash or other financial resources available to do so and may need to seek financing to fund these payments. We cannot assure you that the then-prevailing market
conditions would allow us to resell or lease the underlying aircraft at its anticipated fair value or in a timely manner. Consequently, honoring our financial guarantee or trade-in obligations could require us to make significant cash disbursements
in a given year, which, in turn, would reduce our cash flow in that year.

Any decrease in Brazilian federal government-sponsored customer
financing, or increases in government-sponsored financing that benefits our competitors, may decrease the competitiveness of our aircraft.

Traditionally, aircraft original equipment manufacturers, or OEMs, from time to time, have received support from governments through
governmental export credit agencies, or ECAs, in order to offer competitive financing conditions to their customers, especially in periods of credit tightening from the traditional lending market.

In the past, much of this official government support was alleged to constitute unofficial subsidies causing market distortions, which gave
rise to disputes among governments at the World Trade Organization, or WTO. Since 2007, an agreement known as the Aircraft Sector Understanding, or ASU, developed by the Organization for Economic Co-operation and Development, or OECD, has provided
guidelines for the predictable, consistent and transparent use of government-supported export financing for the sale or lease of aircraft, in order to establish a level-playing field. ECAs from signatory countries are required to offer
terms and conditions no more favorable than those contained in the ASUs base financial agreement when financing sales of aircraft that compete with those produced by the OEMs of their respective countries. The effect of the agreement is to
encourage aircraft purchasers to focus on the price and quality of aircraft products offered by OEMs rather than on the financial packages offered by their respective governments.

The Brazilian ECA, Banco Nacional de Desenvolvimento Econômico e Social (Brazilian Social and Economic Development Bank), or
BNDES, together with the Brazilian National Treasury Export Guarantee Fund, offer financing and export credit insurance to our customers under terms and conditions required by the ASU. Any reduction or restriction to the Brazilian export financing
program, and any increase in our customers financing costs for participation in this program, above those provided in the ASUs base financial agreement, may cause the cost-competitiveness of our aircraft to decline. Other external
factors may also impact our competitiveness in the market, including, but not limited to, aircraft OEMs from countries which are not signatories to the ASU agreement offering attractive financing packages, or any new government subsidies supporting
any of our major competitors.





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From 2004 through 2015, approximately 24% of our Commercial Aviation deliveries was subject to
official export credits. In 2014 and 2015, approximately 47% and 43%, respectively, of our Commercial Aviation deliveries were supported by the Brazilian ECA Program. We cannot assure you that the Brazilian federal government, for policy reasons or
otherwise, will not reduce or discontinue this type of funding for the financing of our aircraft or that other sources of funding will be available to our customers. The loss or significant reduction of funds available to our customers, without an
adequate substitute, could lead to a reduction in sales of our aircraft or to an increase of eventual aircraft financing arrangements.

We may face
a number of challenges resulting from the development of new products and the possible pursuit of strategic growth opportunities.

Our products require a high level of research, development and production expenditures. Our main ongoing project is the development of the
E-Jets E2 family, comprising three new airplanes, the E175-E2, E190-E2, and E195-E2. We estimate our total investment in this project will be US$1.7 billion, net of contributions from suppliers, through 2020. Our investments in the Legacy 450/500
executive jets, launched in April 2008, are almost concluded with an estimated total value of US$ 830 million through 2016. The first Legacy 500 executive jet was delivered in October 2014, and the Legacy 450 entered into service in December
2015. We cannot assure you that our products will be accepted by our customers and the market, and if any of our new products does not meet customer expectations or market demand, our business would be materially and adversely affected. In addition,
as we continue to develop new products, we may need to reallocate existing resources and coordinate with new suppliers and risk-sharing partners. Finally, cost overruns and delays in the development and delivery of new products would materially and
adversely affect us.

We have in the past and may pursue strategic growth opportunities, including joint ventures, acquisitions or other
transactions, to expand our business or enhance our products and technology. We may face a number of challenges, including difficulties in identifying appropriate candidates, assimilating their operations and personnel and maintaining internal
standards and controls, as well as the diversion of our managements focus from our ongoing business. We cannot assure you that we will be able to meet these challenges or that our business will not face disruptions.

We may suffer from a lack of qualified personnel.

From time to time, there is significant competition within the aviation industry for skilled personnel in general and engineers in particular.
To the extent such competition re-emerges, we may be unable to recruit and retain the necessary number of highly skilled engineers and other personnel we require. Failure to coordinate our resources in a timely manner or to attract and retain
skilled personnel could slow down our development efforts and cause delays in production and deliveries of our aircraft, which would negatively affect us.

We may be required to refund cash contributions in connection with the production or development of our aircraft if certain milestones for our aircraft
are not reached.

We have arrangements with our risk-sharing partners, pursuant to which they have contributed to us, in cash over
the years, a total of US$1,029.7 million since the beginning of the development of the EMBRAER 170/190, Phenom 100/300 Legacy 450/500 jet families and the E2 jet family through December 31, 2015. Cash contributions would have to be refunded by
us to the risk-sharing partners to the extent that we had failed to fulfill certain agreed-upon milestones. The full amount of these cash contributions were nonrefundable during 2015, as we had met all the required milestones.

Although, currently, no cash contributions from our risk-sharing partners are refundable, we may enter into similar arrangements, and if we
are unable to meet certain milestones agreed upon with our risk-sharing partners, we may be required to refund cash contributions for which we have not established provisions.

We face significant international competition, which may adversely affect us.

The worldwide commercial aircraft manufacturing industry is highly competitive. Along with Boeing, Airbus and Bombardier, all large
international companies, we are one of the leading manufacturers of commercial aircraft in the world. Certain of these competitors may have greater financial, marketing and other resources than we have. Although we have attained a significant share
of the market for our commercial aircraft products, we cannot assure that we will be able to maintain our current market share. Our ability to maintain our market share and remain competitive in the commercial aircraft manufacturing market over the
long term requires continued enhancement of our products technology and performance. In addition, tariff and other entry barriers may hinder our growth in certain markets. Our primary competitor in the regional and mid-capacity jet markets is
Bombardier Inc., a Canadian company, which has significant technological capabilities and financial and marketing resources. Additionally, Chinese, Russian and Japanese companies are also developing mid-capacity jets and already have firm orders in
backlog.



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As a relatively new entrant to the business jet market, we face significant competition from
companies with longer operating histories and established reputations in this industry. Some of our competitors in the business jet market have a longer track record and a more established customer base and, as a result, may reach the market with
their products before we do and may frustrate our efforts to gain greater market share. In addition, the level of pre-owned aircraft for sale continues to pressure new aircraft demand in this segment and may impact the value of the used aircraft we
own in our portfolio. We cannot assure you that we will continue to increase our market share in the business jet market segment, or that we will not experience a reduction in our current market share in this segment.

Intellectual property violations may negatively affect us.

We rely upon patent, copyright, trademark and trade secret laws, and agreements with our employees, customers, suppliers and other parties, to
establish and maintain our intellectual property rights in technology and products used in our operations. Despite these efforts to protect our intellectual property rights, any of our direct or indirect intellectual property rights could be
challenged, invalidated or circumvented. In addition, although we believe that we lawfully comply with the intellectual property rights granted to others, we may be accused of infringement on occasion and could have claims asserted against it in the
future. These claims could harm our reputation, lead to fines and penalties and prevent us from offering certain products or services. Any claims or litigation in this area, whether we ultimately win or lose, could be time-consuming and costly, hurt
our reputation or require us to enter into licensing arrangements. We may not be able to enter into these licensing arrangements on acceptable terms. If a claim of infringement were successful against us, an injunction might be ordered against us,
causing further damages.

We are subject to environmental, health and safety risks.

Our products, as well as our manufacturing and service activities, are subject to environmental laws and regulations in each of the
jurisdictions in which we operate, governing, among other things: product performance or content; energy use and greenhouse gas emission; air; water and noise pollution; the use, storage, transportation, labeling and disposal or release of hazardous
substances, human health risks arising from the exposure to hazardous or toxic materials; and the remediation of soil and groundwater contamination on or under our properties (whether or not caused by us), or on or under other properties and caused
by our current or past operations. Environmental regulatory requirements, or enforcements thereof, may become more stringent and we may incur additional costs to be compliant with such future requirements or enforcements.

Investigations by U.S. government authorities under the Foreign Corrupt Practices Act and related inquiries may result in substantial fines and other
adverse effects.

In September, 2010, we received a subpoena from the Securities and Exchange Commission, or SEC, and associated
inquiries from the U.S. Department of Justice, or DOJ, concerning possible non-compliance with the U.S. Foreign Corrupt Practice Act, or FCPA, in relation to certain aircraft sales outside of Brazil. In response, we retained outside counsel to
conduct an internal investigation of sales in three countries.

In light of additional information, we voluntarily expanded the scope of
the internal investigation to include sales in other countries, reported on these matters to the SEC and the DOJ and otherwise cooperated with them. The U.S. government inquiries, related inquiries and developments in other countries and our
internal investigation are continuous and we will continue to cooperate with the governmental authorities, as circumstances may require. We have begun discussions with the DOJ for a possible resolution of the allegations of non-compliance with the
FCPA. A resolution of the U.S. government inquiries, and related inquiries, proceedings and developments in other countries would result in fines, which may be substantial, and possibly other substantial sanctions and adverse consequences. See
Item 8A  Consolidated Statements and other Financial Information  Legal Proceedings.





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We benefit from certain tax and other government-granted benefits, the suspension, cancellation or
non-renewal of which would have a material adverse effect on us.

Similarly to other Brazilian companies, we receive certain tax
and other government-granted benefits, including incentives related to our export and research and development activities. For further information, see Item 5A  Operating and Financial Review and ProspectsOperating
ResultsCurrent Conditions and Future Trends in the Commercial Airline Industry and Executive Jet MarketDefense & SecurityTax Incentives.

We cannot assure you that these incentives will be maintained or renewed or that we will be able to obtain new incentives. We could be
materially adversely affected in the event our existing benefits are cancelled or not renewed.

Risks Relating to the Commercial Airline Industry

Scope clause restrictions in airline pilot contracts may limit demand for regional and mid-capacity jets in the U.S. market.

A key limiting factor in demand for regional and mid-capacity jets is the existence of scope clauses contained in airline pilot contracts.
These scope clauses are union-negotiated restrictions on the number and/or size of regional and mid-capacity jets that a particular carrier may operate. Current scope clause restrictions, which are more prevalent in the United States, include
restrictions on the weight of aircraft and number of 76 seat commercial aircraft in an airlines fleet operated by regional carriers. As a result, our opportunities for near-term growth in the U.S. regional jet market in the 76 seat jet
category may be limited. The continuation or further tightening of scope clauses could also lead some of our customers who have purchased options to acquire our regional and mid-capacity jets not to exercise those options. We cannot assure you that
current restrictions will be lessened, or will not be expanded, including by amending these scope clauses to cover larger-sized commercial aircraft. Furthermore, although scope clauses are less prevalent outside the United States, we cannot assure
you that scope clauses will not become more prevalent or restrictive, or that some other form of restriction will not take effect, in Europe or in other markets.

The supply of pilots to the airline industry may be limited.

FAA regulations may impact negatively the supply of qualified pilot candidates eligible for hiring by the airline industry. A first officer in
domestic operations must hold an airline transport pilot certificate and an airplane type rating for the aircraft to be flown. An airline transport pilot certificate requires that a pilot be 23 years of age and have 1,500 hours total time as a
pilot. Due to those requirements, there may be a growing scarcity of new entrant pilots who meet the experience qualifications, impacting mainly regional carriers as they are the normal entry airlines for new pilots, and the majors are expected to
hire many of their experienced pilots. Any further inability to recruit, train and retain qualified pilots may materially impact our customers operations.

We are subject to stringent certification and regulatory requirements, which may adversely affect us.

Our civil aviation products are subject to regulation in Brazil and in each jurisdiction where our customers are located. The aviation
authority in Brazil, known as the Agência Nacional de Aviação Civil  ANAC (National Civil Aviation Agency), or Brazilian Aviation Authority, as well as authorities in other countries in which our customers are
located, most notably the U.S. Federal Aviation Administration, or the FAA, and the European Aviation Safety Agency, or the EASA, must certify our civil aviation products before we can deliver them to our customers. We cannot assure you that we will
be able to obtain certification of our aircraft on a timely basis or at all. In addition, complying with the requirements of regulatory authorities can be both expensive and time-consuming. If we fail to obtain a required certification from an
aviation authority for any of our aircraft, that aviation authority can prohibit the registration of that aircraft within its jurisdiction until certification has been obtained. Changes in government regulations and certification procedures could
also delay our start of production as well as entry of a new product into a new market. Despite our continuous efforts to strictly observe and comply with all aviation certification and other regulatory requirements, we cannot predict how future
laws or changes in the interpretation, administration or enforcement of such laws will affect us. We may be required to spend significantly more money to comply with these laws or to respond to these changes.





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We and our customers are also subject to extensive Brazilian federal, state and local and foreign
environmental protection laws and regulations concerning matters such as discharge and emission of substances into the environment, the disposal of hazardous wastes, the remediation and abatement of contaminants and other activities affecting the
environment. We currently have several ongoing comprehensive programs to reduce the effects of our operations on the environment. For more information, see Item 4E. Information on the CompanyProperty, Plant and Equipment. Changes
to current environmental regulations may demand that we spend additional amounts to enhance our environmental compliance programs. In addition, environmental regulations, such as those requiring the reduction of greenhouse gas emissions, are
becoming one of the main drivers of airline fleet decisions, potentially causing our customers to change their purchasing plans or requiring us to make additional capital investments to adapt to new requirements.

The various products manufactured and sold by us must also comply with relevant health and safety and substances and preparations related laws
and regulations in the jurisdictions in which we operate. Although we seek to ensure that our products meet the highest quality standards, increasingly stringent and complex laws and regulations, new scientific discoveries, delivery of defective
products or the obligation to notify or provide regulatory authorities or others with required information (such as under the EU regulation known as REACH, which addresses the production and use of chemical substances) may force us to
adapt, redesign, redevelop, recertify and/or eliminate products from the markets in which we operate. Seizures of non-compliant products may be required, and we may incur administrative, civil or criminal penalties. In the event of an accident or
other serious incident involving a product, we may be required to conduct investigations and undertake remedial activities.

Any accidents or
catastrophic events involving our aircraft could adversely affect us.

We believe that our reputation and the safety record of our
aircraft are important selling points for our products. However, the safe operation of our aircraft depends to a significant degree on a number of factors largely outside our control, including our customers proper maintenance and repair of
our aircraft and pilot skill. The occurrence of one or more accidents or catastrophic events involving one of our aircraft could adversely affect our reputation and future sales, as well as the market price of our common shares and the ADSs.

Risks Relating to Brazil

Brazilian political and
economic conditions have a direct impact on our business and the trading price of our common shares and ADSs.

The Brazilian
federal government has frequently intervened in the Brazilian economy and occasionally has made drastic changes in policy and regulations. The Brazilian federal governments actions to control inflation and affect other policies and regulations
have often involved, among other measures, increases in interest rates, changes in tax policies, price controls, currency devaluations, capital controls and limits on imports. Our business, financial condition, results of operations and the trading
price of the common shares and the ADSs may be adversely affected by changes in policy or regulations at the federal, state or municipal level involving or affecting factors such as:



| |  |  | interest rates;
| | - |  | ---------------



| |  |  | monetary policies;
| | - |  | ------------------



| |  |  | exchange controls and restrictions on remittances abroad (such as those that were imposed in 1989 and early 1990);
| | - |  | ------------------------------------------------------------------------------------------------------------------



| |  |  | currency fluctuations;
| | - |  | ----------------------



| |  |  | inflation;
| | - |  | ----------



| |  |  | liquidity of domestic capital and lending markets;
| | - |  | --------------------------------------------------



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| |  |  | tax policies;
| | - |  | -------------



| |  |  | energy and water shortages and rationing; and
| | - |  | ---------------------------------------------



| |  |  | other political, diplomatic, social and economic developments in or affecting Brazil.
| | - |  | -------------------------------------------------------------------------------------

Uncertainty over whether the Brazilian federal government will implement changes in policy or regulation affecting these or other factors in
the future may contribute to economic uncertainty in Brazil and to heightened volatility in the Brazilian securities markets and securities issued abroad by Brazilian companies. These and other future developments in the Brazilian economy and
governmental policies may adversely affect us and our business and results of operations and may adversely affect the trading price of our common shares and ADSs.

In addition and as a consequence to the above mentioned, since 2011, Brazil has been experience an economic slowdown. The Gross Domestic
Product, or GDP, growth rates were -3.8% in 2015, 0.1% in 2014, 2.7% in 2013, 1.8% in 2012 and 3.9% in 2011, compared to a GDP growth of 7.5% in 2010. In 2016, analysts forecast that the Brazilian GDP will contract 3.5%.

Our results of operations and financial condition have been, and will continue to be, affected by the growth rate of the Brazilian GDP. We
cannot assure you that the GDP will increase or remain stable. Developments in the Brazilian economy may affect Brazils growth rates and, consequently, the use of our products and services.

Currently, Brazilian markets are experiencing heightened volatility due to the uncertainties derived from the ongoing Lava Jato investigation,
being conducted by the Office of the Brazilian Federal Prosecutor, and its impact on the Brazilian economy and political environment. Members of the Brazilian federal government and of the legislative branch, as well as senior officers of large
state-owned companies have faced allegations of political corruption. The potential outcome of these investigations is uncertain, but they have already had an adverse impact on the image and reputation of the implicated companies, and on the general
market perception of the Brazilian economy. We cannot predict whether such allegations will lead to further political and economic instability or whether new allegations against government officials will arise in the future. In addition, we cannot
predict the outcome of any such allegations nor their effect on the Brazilian economy. The development of such unethical cases could adversely affect our business, financial condition and results of operation.

Inflation and government efforts to combat inflation may contribute significantly to economic uncertainty in Brazil and to heightened volatility in the
Brazilian securities markets and, consequently, may adversely affect the market value of our common shares.

Brazil experienced
extremely high rates of inflation during the decade of the 1980s and in the early 1990s. Since 1994, Brazils inflation has been kept in check. Brazils annual rate of inflation was 6.5%, 5.8%, 5.9%, 6.4% and 10.7 %, from 2011 through
2015, respectively, as measured by the Índice Nacional de Preços ao Consumidor Amplo (National Consumer Price Index), or IPCA. However, there has been a recent increase in inflation as a result of the strong devaluation of the
real against the U.S. dollar. In 2015, Brazil experienced higher levels of inflation than in recent years. Accumulated inflation measured by the IPCA was 10.7%, the highest rate since 2002. The Brazilian government has begun to introduce
policies aimed at reducing inflationary pressures, which may have the effect of reducing the overall performance of the Brazilian economy. Among the effects of such inflationary pressure is a rise in labor costs. Most recently, the Brazilian
government has taken certain fiscal actions in order to keep inflation in check. Contracts in our Commercial Aviation and Executive Jets segment are adjusted for U.S. inflation, and major contracts in our Defense & Security segment are
adjusted for Brazilian inflation.

Future Brazilian federal government actions, including interest rate decreases, intervention in the
foreign exchange market and actions to adjust or fix value of the real may trigger increases in inflation. If Brazil experiences high inflation again, our operating expenses and borrowing costs may increase, our operating and net margins may
decrease and, if investor confidence decreases, the price of our common shares and ADSs may fall.



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Exchange rate volatility may adversely affect us.

The Brazilian currency has devalued frequently over the past three decades. Throughout this period, the Brazilian government has implemented
various economic plans and used various exchange rate policies, including sudden devaluations, periodic mini-devaluations (during which the frequency of adjustments has ranged from daily to monthly), exchange controls, dual exchange rate markets and
a floating exchange rate system. Although long-term depreciation of the real is generally linked to the rate of inflation in Brazil, depreciation of the real occurring over shorter periods of time has resulted in significant variations
in the exchange rate between the real, the U.S. dollar and other currencies. In 2012, the realdepreciated by 8.5% against the U.S. dollar and the real/U.S. dollar exchange rate reported by the Central Bank on December 31,
2012 was R$2.04 per U.S. dollar. Fiscal policy coupled with increased government intervention in certain sectors weighed on the real in 2013, which depreciated 13.0% against the U.S. dollar. In the first quarter of 2014, the realappreciated by 9.1% against the U.S. dollar. However, from March to December 2014, therealdepreciated approximately 14.8% against the U.S. dollar, and the exchange rate reported by the Central Bank was R$2.65 per US$1.00 at the end of
the year. Since December 31, 2014, thereal/U.S. dollar exchange has continued to depreciate, falling past R$4.00 per US$1.00 for the first time in a decade, due mainly to fiscal and political turmoil, signs of economic contraction and
high political risk. As of December 31, 2015, the real/U.S. dollar exchange rate reported by the Central Bank was R$ 3.90 per US$1.00. The real/U.S. dollar exchange rate has continued to experience significant volatility in
early 2016, mainly due to political uncertainty in Brazil and the performance of the Brazilian economy As of March 24, 2016, the real/U.S. dollar exchange rate reported by the Central Bank was R$3.69 per US$1.00. See
Item 3AExchange Rates and Item 11Foreign Exchange Risk.

Historically, depreciations in the real relative to
the U.S. dollar have also created additional inflationary pressures in Brazil by generally increasing the price of imported products and requiring recessionary government policies to curb aggregate demand. On the other hand, appreciation of the
real against the U.S. dollar may lead to a deterioration of the current account and the balance of payments, as well as dampen export-driven growth. Depreciations generally curtail access to foreign financial markets and may prompt government
intervention, including recessionary governmental policies.

Although most of our revenue and debt is U.S. dollar-denominated, the
relationship of the real to the value of the U.S. dollar, and the rate of depreciation of the real relative to the prevailing rate of inflation, may adversely affect us:



| |  |  | Approximately 15% of our total costs are incurred and denominated in reais.
| | - |  | ---------------------------------------------------------------------------



| |  |  | Because taxes on income are largely determined and paid in reais based on our Brazilian tax books, the income tax expense (benefit) line item of our statements of income, which has the U.S. dollar as our
functional currency, is significantly impacted by appreciation of the real relative to the U.S. dollar to the extent we must record deferred taxes resulting from exchange rate fluctuations on the reported basis of our nonmonetary assets
(principally property, plant and equipment and intangible assets). Had the real devalued or appreciated by 10% against the dollar in relation to the actual exchange rate as of December 31, 2015, the deferred income tax expense would have been
higher or lower by approximately US$130.2 million. For more information, see Note 24 to our audited consolidated financial statements as of and for the year ended December 31, 2015.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Depreciation of the realagainst the U.S. dollar or other currencies would reduce our real-denominated revenues from the Defense & Security segment, when converted to the U.S. dollar as our functional
currency.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Depreciations of the real relative to the U.S. dollar would also reduce the U.S. dollar value of distributions and dividends on our ADSs and may also reduce the market value of our common shares and ADSs.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Appreciation of the real against the U.S. dollar or other currencies increases the costs of our products when
measured in U.S. dollars, and may result in a decrease in our margins.

We may, as a result, be materially and adversely affected by
exchange rate variations.



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Economic developments and investor perceptions of risk in other countries, including both in developed or
emerging market economies, may adversely affect the trading price of Brazilian securities, including our common shares and ADSs.

The market value of securities of Brazilian issuers is affected in varying degrees by economic and market conditions in other countries,
including in developed countries, such as the United States and certain European countries, and in emerging market countries. Although economic conditions in such countries may differ significantly from economic conditions in Brazil, the reaction of
investors to developments in these other countries may have an adverse effect on the market value of securities of Brazilian issuers.

Any further
downgrading of Brazils credit rating could adversely affect the trading price of our common shares, ADSs and bonds.

Credit
ratings affect investors perceptions of risk and, as a result, the yields required on future debt issuance in the capital markets. Rating agencies regularly evaluate Brazil and its sovereign ratings, which are based on a number of factors
including macroeconomic trends, fiscal and budgetary conditions, indebtedness metrics and the perspective of changes in any of these factors.

In September 2015, Standard & Poors reduced Brazils sovereign credit rating to below investment grade, from BBB-minus to
BB-plus, citing, among other reasons, general instability in the Brazilian market caused by the Brazilian governments interference in the economy and budgetary difficulties. Standard & Poors again downgraded Brazils
sovereign credit rating in February 2016, from BB-plus to BB, and maintained its negative outlook on the rating, citing a worsening credit situation from the time of the September 2015 downgrade. In December 2015, Moodys placed Brazils
Baa3 issuer and bond ratings on review for a downgrade, citing negative macroeconomic trends and a deterioration of the governments fiscal conditions. Subsequently, in February 2016, Moodys downgraded Brazils issuer and bond
ratings to below investment grade, to Ba2 with a negative outlook, citing the prospect for further deterioration in Brazils debt metrics in a low growth environment, in addition to challenging political dynamics. Rating agency Fitch also
downgraded Brazils sovereign credit rating to BB-plus with a negative outlook, citing the countrys rapidly expanding budget deficit and worse-than-expected recession. As a result, Brazil lost its investment grade status from all three
major rating agencies and consequently the trading prices of securities of the Brazilian debt and equity markets were negatively affected. A prolongment of the current Brazilian recession could lead to further ratings downgrades.

As a result of the Moodys downgrade of Brazils issuer and bond ratings in February 2016, the rating agency also downgraded
Embraers issuer rating from Baa3 to Ba1, below investment grade, as the rating agency largely does not rate issuers higher than one rating notch above the sovereign credit rating of the country in which issuer is located. At this time, Embraer
maintains its investment grade rating from Standard and Poors of BBB, with CreditWatch negative.

Any further downgrade of
Brazils sovereign credit ratings could heighten investors perception of risk and, as a result, increase the future cost of debt issuance and adversely affect the trading price of our common shares and ADSs.

Risks Relating to Our Common Shares and ADSs

If
holders of our ADSs exchange the ADSs for common shares, they risk losing the ability to remit foreign currency abroad and Brazilian tax advantages.

The Brazilian custodian for the common shares has obtained an electronic certificate of registration from the Central Bank permitting it to
remit foreign currency abroad for payments of dividends and other distributions relating to the common shares or upon the disposition of the common shares. If holders of ADSs decide to exchange their ADSs for the underlying common shares, they will
be entitled to continue to rely on the custodians electronic certificate of registration for five business days from the date of exchange. Thereafter, such holders of ADSs may not be able to obtain and remit foreign currency abroad upon the
disposition of, or distributions relating to, the common shares unless they obtain their own electronic certificate of registration or register their investment in the common shares pursuant to Resolution No. 2,689, which entitles certain
foreign investors to buy and sell securities on the São Paulo Stock Exchange. Holders who do not qualify under Resolution No. 2,689 will generally be subject to less favorable tax treatment on gains with respect to the common shares. If
holders of ADSs attempt to obtain their own electronic certificate of registration, they may incur expenses or suffer delays in the application process, which could delay their ability to receive dividends or distributions relating to the common
shares or delay the return of their capital in a timely manner. In addition, we cannot assure you that the custodians electronic certificate of registration or any certificate of foreign capital registration obtained by a holder of ADSs will
not be affected by future legislative or other regulatory changes, or that additional restrictions applicable to such holder, to the disposition of the underlying common shares or to the repatriation of the proceeds from such disposition, will not
be imposed in the future.





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The Brazilian federal government has veto power over the change in our corporate control, and of our name,
trademark or corporate purpose and over the creation or alteration of our Defense & Security programs, and its interests could conflict with the interests of the holders of our common shares and ADSs.

The Brazilian federal government holds one share of a special class of our common stock called a golden share, which carries veto
power over our change of control, name, trademark or corporate purpose and over the creation or alteration of our Defense & Security programs (whether or not the Brazilian federal government participates in such programs). For example, in
2010, we changed our corporate name to Embraer S.A. and altered our bylaws to allow us to enter the defense and security market, which required the approval of the Brazilian federal government. The Brazilian federal government may veto transactions
that may be in the interest of the holders of our common shares or ADSs. We cannot assure you that we will be able to obtain approvals from the Brazilian federal government in the future to effect important corporate changes, such as those carried
out in 2010, or other important corporate changes that may be required.

Our bylaws contain provisions that could discourage our acquisition or
prevent or delay transactions that you may favor.

Our bylaws contain provisions that have the effect of avoiding the concentration
of our common shares in the hands of a small group of investors so as to promote the dispersed ownership of such shares. These provisions require any shareholder or group of shareholders that acquires or becomes the holder of (1) 35% or more of
the total shares issued by us or (2) other rights over shares issued by us that represent more than 35% of our capital, to submit to the Brazilian federal government a request for making a public tender offer to purchase all of our shares on
the terms specified in our bylaws. If the request is approved, such shareholder or group of shareholders must commence the public tender offer to purchase all of our shares within 60 days of the date of approval. If the request is refused, such
shareholder or group of shareholders must sell all of their shares that exceed the 35% limit within 30 days, so that the holding of such shareholder or group of shareholders falls below 35% of our capital stock. These provisions may have
anti-takeover effects and may discourage, delay or prevent a merger or acquisition, including transactions in which our shareholders might otherwise receive a premium for their common shares and ADSs. These provisions can only be altered or
overridden with the approval of our Board of Directors and our shareholders in a shareholders meeting convened for this purpose and, with the consent of the Brazilian federal government, as holder of the golden share.

Our bylaws contain provisions that limit the voting rights of certain shareholders, including non-Brazilian shareholders.

Our bylaws contain provisions that limit the rights of a shareholder or group of shareholders, including brokers acting on behalf of one or
more holders of ADSs, to exercise voting rights in respect of more than 5% of the outstanding shares of our capital stock at any general meeting of shareholders. See Item 10B. Additional InformationMemorandum and Articles of
AssociationDescription of Capital StockVoting Rights of SharesLimitations on the Voting Rights of Certain Holders of Common Shares.

Our bylaws also contain provisions that limit the right of non-Brazilian shareholders to exercise voting rights in respect of more than
two-thirds of the voting rights that may be exercised by Brazilian shareholders present at any general meeting of shareholders. This limitation will effectively prevent our takeover by non-Brazilian shareholders and limit the ability of
non-Brazilian shareholders to effect control over us. See Item 10B. Additional InformationMemorandum and Articles of AssociationDescription of Capital StockVoting Rights of SharesLimitations on the Voting Rights of
Non-Brazilian Shareholders.



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The absence of a single, controlling shareholder or group of controlling shareholders may render us
susceptible to shareholder disputes or other unanticipated developments.

The absence of a single, controlling shareholder or
group of controlling shareholders may create difficulties for our shareholders to approve certain transactions, because, among other things, the minimum quorum required by law for the approval of certain matters may not be reached. We and our
shareholders may not be afforded the same protections provided by the Brazilian Corporate Law against abusive measures taken by other shareholders and, as a result, may not be compensated for any losses incurred. Any sudden and unexpected changes in
our management team, changes in our corporate policies or strategic direction, takeover attempts or any disputes among shareholders regarding their respective rights may adversely affect our business and results of operations.

Holders of ADSs may not be able to exercise their voting rights.

Holders of ADSs may only exercise their voting rights with respect to the underlying common shares in accordance with the provisions of the
deposit agreement governing our ADSs. Under the deposit agreement, ADS holders must vote the common shares underlying their ADSs by giving voting instructions to the depositary. Upon receipt of the voting instructions from the ADS holder, the
depositary will vote the underlying common shares in accordance with these instructions. Otherwise, ADS holders will not be able to exercise their right to vote unless they surrender the ADS for cancellation in exchange for the common shares.
Pursuant to our bylaws, the first call for a shareholders meeting must be published at least 30 days in advance of the meeting, the second call must be published at least 15 days in advance of the meeting, and the third call, if necessary,
must be published at least 8 days in advance of the meeting. When a shareholders meeting is convened, holders of ADSs may not receive sufficient advance notice to surrender the ADSs in exchange for the underlying common shares to allow them to
vote with respect to any specific matter. In addition, the depositary has no obligation to notify ADS holders of an upcoming vote or distribute voting cards and related materials to ADS holders, unless we specifically instruct the depositary to do
so. If we ask the depositary to seek voting instructions from ADS holders, the depositary will notify ADS holders of the upcoming vote and will arrange to deliver proxy cards to such holders. We cannot assure you that ADS holders will receive proxy
cards in time to allow them to instruct the depositary to vote the shares underlying their ADSs. In addition, the depositary and its agents are not responsible for failing to carry out voting instructions or for an untimely solicitation of voting
instructions. As a result, holders of ADSs may not be able to fully exercise their voting rights.

The relative illiquidity and volatility of the
Brazilian securities markets may substantially limit the ability of holders of our common shares or the ADSs to sell the common shares underlying ADSs at the price and time they desire.

Investing in securities, such as the common shares or the ADSs, of issuers from emerging market countries, including Brazil, involves a higher
degree of risk than investing in securities of issuers from more developed countries.

The Brazilian securities markets are substantially
smaller, less liquid, more concentrated and more volatile than major securities markets in the United States and other jurisdictions, and are not as highly regulated or supervised as some other markets. The relatively small market capitalization and
illiquidity of the Brazilian equity markets may substantially limit the ability of holders of our common shares or ADSs to sell the common shares or the ADSs at the price and time desired. See Item 9C. The Offer and
ListingMarketsTrading on the São Paulo Stock Exchange.

Holders of our ADSs might be unable to exercise preemptive rights
with respect to the common shares.

Holders of our ADSs may not be able to exercise the preemptive rights relating to the common
shares underlying their ADSs unless a registration statement under the Securities Act is effective with respect to those rights or an exemption from the registration requirements of the Securities Act is available. We are not obligated to file a
registration statement with respect to the shares or other securities relating to these preemptive rights, and we cannot assure holders of our ADSs that we will file any such registration statement. Unless we file a registration statement or an
exemption from registration applies, holders of our ADSs may receive only the net proceeds from the sale of their preemptive rights by the depositary or, if the preemptive rights cannot be sold, the rights will be allowed to lapse.



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Judgments of Brazilian courts with respect to our common shares will be payable only in reais.

If proceedings are brought in the courts of Brazil seeking to enforce our obligations in respect of the common shares, we will not be required
to discharge our obligations in a currency other than reais. Under Brazilian exchange control limitations, an obligation in Brazil to pay amounts denominated in a currency other than reais may only be satisfied in Brazilian currency at
the exchange rate, as determined by the Central Bank, in effect on the date the judgment is obtained, and such amounts are then adjusted to reflect exchange rate variations through the effective payment date. The then prevailing exchange rate may
not afford non-Brazilian investors with full compensation for any claim arising out of or related to our obligations under the common shares or the ADSs.



|ITEM 4. | INFORMATION ON THE COMPANY
|------- | --------------------------

4A. Unresolved Staff Comments

We have no unresolved staff comments.

4B. History and Development of the Company

Overview

Embraer S.A. is a corporation duly incorporated under the laws of Brazil with an indefinite term of duration. Originally formed in 1969 by the
Brazilian federal government, we were privatized in 1994. In connection with our privatization, we were transformed into a publicly-held corporation, and we are subject to the provisions of the Brazilian Corporate Law. Our principal executive
offices are located at Avenida Presidente Juscelino Kubitschek, 1909, 15o andarTorre NorteSão Paulo Corporate Towers, 04543-907,São Paulo State, Brazil. Our telephone number is 55-11-3841 6083. Our agent for
service of process in the United States is National Registered Agents, Inc., with offices at 875 Avenue of the Americas, Suite 501, New York, New York 10001.

We have grown from a government-controlled company established to develop and produce aircraft for the Brazilian Air Force into a
publicly-held company that produces aircraft for commercial and executive aviation and for defense and security purposes and related services.

As part of our evolution, we have obtained, developed and enhanced our engineering and technological capabilities through our own development
of products for the Brazilian Air Force and through joint product development with foreign companies on specific projects. We have applied these capabilities that we gained from our defense business to further develop our Commercial Aviation
business.

Our first regional aircraft was the Bandeirante, a 19-passenger twin-engine non-pressurized turboprop aircraft initially
designed to service the transport needs of the Brazilian Air Force. This aircraft was certified in 1973. The Bandeirante was followed by the EMB 120 Brasília, which was certified in 1985 and is a high performance, pressurized turboprop
commercial aircraft seating up to 30 passengers that was designed to serve the longer routes and higher passenger traffic of the growing regional aircraft market. Drawing upon the design of the EMB 120 Brasília and the jet technology
acquired in our development of the AM-X, a jet strike bomber for the Brazilian Air Force, we developed the ERJ 145 regional jet family, our first jet product for commercial use. This family comprises three aircraft, which seat up to 37, 44 and 50
passengers. The first member of the ERJ 145 family, the ERJ 145, was certified in 1996. We have expanded our jet product line with the development of the EMBRAER 170/190 jet family, which has the capacity to seat between 70 and 118
passengers and was designed to serve the aircraft markets trend towards larger, higher volume and longer range jets. The first member of this family, the EMBRAER 170, was certified in February 2004, and its derivatives, the EMBRAER 175
and the EMBRAER 190, were certified in December 2004 and August 2005, respectively. The certification of the EMBRAER 195 was granted in June 2006. In June 2013, Embraer launched the second generation of its E-Jets family of commercial aircraft, the
E-Jets E2, comprising three new airplanes, the E175-E2, E190-E2 and E195-E2. The E190-E2 is expected to enter service in the first half of 2018. The E195-E2 is slated to enter service in 2019 and the E175-E2 in 2020. We are also producing, marketing
and selling the Legacy 450, Legacy 500 and Legacy 600, a line of executive jets in the mid-light, mid-size and super mid-size categories, and the Phenom 100, Phenom 300 and Lineage 1000, which are positioned in the entry-level, light and ultra-large
categories, respectively. In addition, in 2009 we presented the new Legacy 650, a large executive jet that will be positioned in our executive jet portfolio between the Legacy 600 and the Lineage 1000. In the defense and security market, we offer a
line of intelligence, surveillance and reconnaissance aircraft based on the ERJ 145 regional jet platform, services, systems and solutions, ground radar, transportation of authorities, tactical military transport and aerial refueling (KC-390), basic
and advanced training and light attack aircraft (Super Tucano), unmanned aerial systems (UAS), and geostationary defense and communications satellites.





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On November 19, 2010, our shareholders approved a change to our corporate name from Embraer
 Empresa Brasileira de Aeronáutica S.A. to Embraer S.A., as well as the addition of capabilities and the broadening of the scope of our defense business unit to allow this business unit to manufacture and trade equipment, materials,
systems, software, accessories and components for the defense, security and energy industries, as well as to perform technical activities and services related to these areas. As a result, our bylaws were amended to reflect the addition of these
activities to our corporate purposes.

Strategic Alliances and Growth Opportunities

We intend to review strategic growth opportunities, which may include joint ventures and acquisitions, and other strategic transactions, as
well as enhance our existing relationships with significant world players in the aerospace and defense and security industries, including any members of the groups or companies below.

Strategic Alliances

European Aerospace and
Defense Group

On November 5, 1999, a group consisting of (1) Aerospatiale Matra, currently known as the Airbus Group N.V,
(2) Dassault Aviation, (3) Thomson-CSF, currently referred to by its trade name ThalesTM, and (4) Société Nationale dÉtude et de Construction de Moteurs
dAviation, or Safran, all of which we refer to collectively as the Airbus Group, purchased 20% of our outstanding common stock from our existing common shareholders at that time. Most of the common stock purchased by the Airbus Group was owned
by our former controlling shareholders.

Because the members of the Airbus Group were, at the time, considered by our former controlling
shareholders to be strategic partners of Embraer, they were granted the right, as a group, to appoint two members to our Board of Directors. However, as a result of the termination of the shareholders agreement among our former controlling
shareholders as part of our 2006 corporate reorganization, the Airbus Group no longer has the right to appoint members to our Board of Directors, other than pursuant to the general right provided for in the Brazilian Corporate Law. In addition,
under Brazilian law the Airbus Group is no longer recognized as a group for voting purposes nor considered to be a strategic shareholder of Embraer. ThalesTM sold all of its shares in October
2006, and the Airbus Group sold all of its shares in a secondary offering in February 2007.

AEL Sistemas and Avibras

In February 2013, Embraer Defense & Security, AEL Sistemas S.A., a subsidiary of the Israeli company Elbit Systems Ltd., and Avibras
Air and Naval Division, Inc., announced the execution of a strategic agreement with the purpose of evaluating joint exploration prospects for unmanned aerial systems (UAS), including the creation of a company to explore this segment with a majority
participation of our Defense & Security business unit.

At the end of 2015, Embraer Defense & Security together, AEL and
Avibras decided, together, that that the company should be wound up. The business model adopted on this joint venture was focused on the immediate execution of the project. The decision to dissolve the company was made due to changes in the
Brazilian scenario and the rescheduling of priorities by the Brazilian Armed Forces.

Embraer understands the importance of this project
and is willing to support the program according to the planning of the FAB. Measures are being taken to assure the preservation of the technology and knowledge already developed.



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Boeing

In April 2012, we entered into a cooperation agreement with Boeing, in which we agreed to pursue several areas of cooperation, including
commercial aircraft features that enhance safety and efficiency, research and technology and sustainable aviation biofuels.

In June 2012,
we and Boeing announced the execution of a cooperation agreement with the purpose of joining our sales efforts on the KC-390 aircraft program. Under this agreement, Boeing and Embraer will share specific technical knowledge and evaluate markets for
medium-lift military transport opportunities.

In July 2012, we and Boeing announced at the Farnborough Airshow the execution of another
cooperation agreement that further enhances the collaboration between the two companies. This agreement also brings additional capabilities to Embraers A-29 Super Tucano through new weapons integration developments to meet future customer
requirements.

In June 2013, we announced a partnership with Boeing to market and sell the KC-390 medium-airlift aircraft in the U.S.,
United Kingdom and select Middle Eastern markets.

Saab

In July 2014, Embraer Defense & Security and Saab entered into a memorandum of understanding to partner in a joint program management
for the F-X2 Project, pursuant to the selection of the Gripen NG as Brazil ́s next generation fighter jet. Under this agreement, we will perform a leading role in the overall program performance as well as undertake an extensive share of work
in the production and delivery of both the single and two-seat versions of the state-of-the-art Gripen NG aircraft for the Brazilian Air Force. The contract between the companies that establishes the partnership for joint development,
industrialization and management of the F-X2 Project for the Brazilian Air Force, became effective in 2015. Under this agreement, Embraer will be responsible for an extensive share of work in systems development, integration, flight testing, final
assembly and aircraft deliveries. Embraer will also participate in the coordination of all development and production activities in Brazil. Furthermore, Embraer and Saab will be jointly responsible for the complete development of the two-seat
version of the Gripen NG.

In December 2015, a team of about 50 Embraer engineers and technicians started their activities in Sweden to
conduct initial training in the maintenance and development work for the Gripen NG. All the technology developed by the joint team will be later transferred to Brazil. A dedicated Engineering development center for the F-39 program is under
construction at Embraers industrial plant in Gavião Peixoto, in the state of São Paulo, to support the Brazilian Air Force Program.

Embraer Subsidiaries and Joint Ventures

HEAI

In December 2002, we formed HEAI, with Harbin Aviation Industry (Group) Co., Ltd. and Hafei Aviation Industry Co., Ltd., both
subsidiaries of AVIC, to provide for assembly, sales and after-sales support of the ERJ 145 regional jet family. We own 51% of the equity of HEAI. We have granted HEAI a license for the exclusive rights to produce, sell and provide after-sales
support for the ERJ 145 regional jet family in the Chinese markets, and we contributed US$12.4 million in cash, tooling and inventory to the company. Our partners have contributed the land use rights in Harbin, China, and contributed US$10.8 million
in cash and facilities to the company. The roll-out of the first ERJ 145 manufactured by the company occurred in December 2003, and the company entered into its first sales contract for six aircraft with China Southern Airlines in February 2004. In
October 2007, the 1,000th jet of the ERJ 145 family was delivered by Harbin Embraer Aircraft Industry Co. Ltd.

In April 2011, we entered into a framework agreement with AVIC for the implementation of a Legacy 600/650 production line in China, using the
infrastructure, financial resources and workforce of HEAI. This industrial cooperation program focuses on the production of the Legacy 600/650 family in China, which is to replace the discontinued ERJ 145 family, and aims to serve the demand of the
Chinese executive aviation market. During 2015, we delivered two Legacy 650 manufactured at HEAI, the first in May and the second in August.



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CAE

In October 2006, we entered into an agreement with the Canadian company CAE Inc., or CAE, to form a global training company, Embraer CAE
Training Services (ECTS). The partnership provides comprehensive entitlement training and post-entitlement training for pilots, maintenance technicians and dispatch personnel for Phenom 100 entry-level jets and Phenom 300 light jets. This training
program was first offered at CAE SimuFlite in Dallas, Texas, following the commencement of operation of the Phenom 100 in 2008, and expanded to Burgess Hill in the U.K. in 2009 and Guarulhos, in Brazil in 2012.

EAST

In June 2015, we completed the
acquisition of the California-based Aero Seating Technologies (AST). The new company, Embraer Aero Seating Technologies (EAST), which is focused on the design, development and production of luxury aircraft seating solutions, started the construction
of a 50,000 square-foot facility in Titusville, Florida, expected to be operational by the second half of 2016.

Liebherr Aerospace

In July 2008, we acquired the remaining 40% interest owned by Liebherr Aerospace SAS, or Liebherr, in ELEBEquipamentos Ltda., or ELEB, a
60%/40% joint venture we launched with Liebherr in 1999.

ELEB- Equipamentos Ltda is an aerospace systems and component manufacturer,
located in São Jose dos Campos, and its main products are: landing gear systems, hydraulics and electro-mechanical sub-assemblies, such as actuators, valves, accumulators and pylons.

EZ Air

EZ Air Interior Limited is a
50%/50% joint venture with Zodiac Aerospace for the production in Mexican factories of interior parts for our Commercial Aviation Segment.

Bradar

In May 2011, we executed an agreement to purchase a 90% stake in the capital stock of the radar business of OrbiSat da Amazônia
Indústria e Aerolevantamento S.A., a Brazilian company that created a radar business in 2002 to develop state-of-the-art technology for air, sea and land remote sensing and aerial surveillance. In late 2013, the company announced the adoption
of the new brand Bradar and the names Bradar Indústria S.A. and Bradar Aerolevantamento Ltda.

During 2014, Bradar
entered into several contracts in the radar and remote sensing segment, including the supply of the M-60 radar for the Brazilian Navy, the continuity of M-200 radar development and the provision of GBAD (Ground Based Air Defense) Operation Center,
both related to the Brazilian Army.

In 2015, Bradar and CTEx (the Brazilian Army Center of Technology) signed three cooperation
agreements: the implementation of the fourth and final stage of the Air Surveillance Radar SABER M200, the development of a new version of M200 called M200 VIG and the modernization of the M60 radar. Bradar consolidated its portfolio in 2015,
delivering the SENTIR M20 ground surveillance radar to the Brazilian Army and completing its development of the S200R radar for air traffic control. In April 2015, Embraer increased its stake in the capital stock of Bradar to 95%, and in February
2016 its stake was increased to 100%.

Atech

In April 2011, we announced the acquisition of 50% of the capital stock of Atech Negócios em Tecnologias S.A., or Atech, with the
purpose of increasing our capacity for developing products and services in the area of Command, Control, Communications, Computer and Intelligence, air defense and air traffic control. Since 2013, Embraer Defense & Security is the only
shareholder of Atech.



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In 2014, Atech was contracted by the Airport Authority of India to install the Skyflow System, a
database that integrates information from airlines, airports and regulatory agencies, among others, with weather data important to air traffic control. During 2015, we concluded the first phase of implementation of the air traffic flow management
system in India.

We signed major contracts in 2015, including an air traffic control systems maintenance contract with DECEA, the
Brazilian Department of Airspace Control. In addition, Atech has signed a contract with SAAB for technology transfer and development as part of the Brazilian FX fighter Program.

Visiona Tecnologia Espacial S.A.

In
November 2011, Embraer and Telecomunicações Brasileiras S.A., or Telebras, announced the signing of a memorandum of understanding for the purpose of forming Visiona Tecnologia Espacial S.A., or Visiona, of which Embraer holds a
51% stake and Telebras 49%.

Through this partnership between Embraer and Telebras, Visiona is the prime contractor for the Brazilian
Strategic and Defense Communications Geostationary Satellite (SGDC), with responsibility for the system integration. This is a key step for Embraers entry into the satellite integration business.

Visionas headquarters is located in the Technological Park of the city of São José dos Campos, São Paulo, Brazil,
where a Space Technology Development Center is being established, which will integrate Brazils most relevant aerospace educational and research organizations, and accelerate the capabilities of the Brazilian space industry.

In November 2013, Visiona was selected by Telebras to be the integrator of the SGDC system that, once delivered, will be operated by Telebras
and the Brazilian Ministry of Defense.

In December 2014, the Critical Design Review (Satellite, Payload, Antennas and the Ground Segment
Systems) was performed. The maturity of the project was evaluated and approved by representatives of Telebras and the Ministry of Defense of Brazil. All contractual events up to December 2014 have been met and the program is on schedule.

In March 2015, Visiona presented the final report of its Critical Design Review to Telebras. In July 2015, Visiona concluded the SGDC
insurance procurement process, which was accepted and then contracted by Telebras. The insurance refers to Launch + 1 year, meaning from launch to the end of the first year of operation. In November 2015, the first batch of Ground Segment equipment
was delivered in Brasília and the 13-m antenna installation process was initiated. In December 2015, after a successful cycle of equipment, subsystem manufacturing and testing, the mating of the Satellite Platform and the Communication Module
(payload) was concluded at the supplier facilities in Cannes-Fr, initiating the satellite integration and testing phase.

Ogma

OGMAIndústria Aeronáutica de Portugal S.A., located in Alverca, Portugal, combines the accumulated know-how of over 90
years as an aircraft manufacturer and maintenance service provider. Ogma offers worldwide MRO (Maintenance, Repair and Overhaul) services for defense, commercial and executive aviation as well for aircraft engines and components. Furthermore, Ogma
plays an important role as a major aerostructure supplier of integrated solutions to OEMs and first tier suppliers. Ogma delivers assemblies and sub-assemblies of both metallic and composite materials. During 2015, Ogma made important investments
focusing on efficiency and maintenance capability improvements, including a new painting hangar, a new commercial aircraft MRO line and manufacturing capabilities (automatic riveting and 5axe machines).

We have a 65% stake in the voting capital of OGMA, which also counts among its shareholders the Portuguese Defense Company (EMPORDEF), which
has 35% of the voting capital.



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Savis Tecnologia e Sistemas S.A.

In November 2012, the Brazilian Army signed a contract for the implementation of Phase I of the SISFRON Program (Sistema Integrado de
Monitoramento de Fronteiras) with the Terpro consortium, composed of two companies, Savis Tecnologia e Sistemas S.A. and Bradar Aerolevantamento, both of which are controlled by Embraer Defense & Security. SISFRON is the Integrated
Border Surveillance System that the Brazilian Army is developing on the Western borders of Brazil.

SISFRONs Phase I includes the
surveillance and protection of approximately 650 kilometers of Brazilian borders, covering the frontiers between the Brazilian State of Mato Grosso do Sul with Paraguay and Bolivia. The full scope of SISFRONs surveillance capabilities will
consist of 16,886 kilometers of borders that divide 11 Brazilian states, encompassing 27% of the nations territory, and 10 neighboring countries.

In 2013, we began the development of this complex system, with on-site surveys and the design phases. In June 2013, all the primary suppliers
were selected and approved.

In 2014, deliveries of equipment and infrastructure commenced. In April of 2014, SAVIS concluded the delivery
of the Military Operations Center of the Western Military Command, in the city of Campo Grande, in the State of Mato Grosso do Sul.

In
November 2014, the Brazilian Army celebrated the official inauguration of SISFRON operations in the city of Dourados, home of the 4th Mechanized Cavalry Brigade of the Brazilian Army.

Two important milestones were reached in December 2014, when we achieved FAT (Field Acceptance Test) approval for the first SENTIR M20 radar
unit, developed by Bradar, and the backbone of the strategic communications equipment was delivered and successfully implemented.

In
2015, the progress of the work advanced, surpassing 50% of implementation, with operative capacities in sensors for electromagnetic signal intelligence, mobile and fixed ground surveillance radars and optronics. All data acquired by these sensors
flows to mobile and fixed command and control centers, through tactical and strategical communications networks, an is then analyzed through decision support systems. All of this works organically, as one system, backed by an extensive Integrated
Logistic Support.

Capital Expenditures (Property, Plant and Equipment and Development)

Commercial Aviation and Executive Jets

In our Commercial Aviation and Executive Jets segments, we include our investments in development and property, plant and equipment as part of
our capital expenditures.

As part of our transition to IFRS, in 2010 we have started to capitalize our expenditures related to product
development projects as non-current intangible assets on our statement of financial position when it is probable that the relevant projects will generate future benefits, taking into account their commercial and technological feasibility and
availability of technological and financial resources and only if their cost can be reliably measured. We amortize such assets in the form of charges to cost of sales and services on our statements of income, based on the total estimated number of
aircraft to be delivered for each new product development project. We also capitalize expenditures related to property, plant and equipment as non-current assets on our statement of financial position and depreciate such assets in the form of
charges to cost of sales and services on our statements of income. For information on how we amortize our intangible assets and depreciate our property, plant and equipment, see Item 5A. Operating and Financial Review and
ProspectsOperating ResultsPrincipal Operating Data and Components of Our Statement of IncomeCost of Sales and Services. Development costs in the Commercial Aviation and Executive Jets segments are capitalized from the date of
board approval for the relevant project until the final certification.



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Most of our development expenditures are associated with the development of new products either
for the Commercial Aviation or Executive Jets segments. Development expenditures totaled US$287.6 million in 2015, US$230.0 million in 2014, US$230.6 million in 2013 and US$209.3 million in 2012, net of used cash contributions from risk-sharing
partners, which totaled US$140.0 million in 2015, US$185.4 million in 2014, US$51.8 million in 2013, and US$1.0 million in 2012. Development expenditures increased in 2015 in comparison to 2014 because of higher investments on the E2 E-Jets and
Defense and Security programs. Development expenditures for 2014 remained stable in comparison to 2013, mainly due to consistent expenditures related to the Legacy 450 and E-Jets E2 programs. Development expenditures for 2013 remained stable in
comparison to 2012, mainly due to consistent expenditures related to Executive Jets programs.

The decrease in the contribution from
risk-sharing partners in 2015 relative to 2014 was mainly due to the conclusion of the Legacy 450 and 500 during the year. The increase in contribution from risk-sharing partners in 2014 relative to 2013 was mainly due to the development of the E2
E-Jets programs. The increase in cash contributions from risk-sharing partners in 2013 relative to 2012 is mainly due to the E-Jets E2 family, which commenced development in 2013. See Item 5C. Operating and Financial Review and
ProspectsResearch.

Our main ongoing project is the development of the E-Jets E2 family, comprising three new airplanes, the
E175-E2, E190-E2, and E195-E2. We estimate our total investment in this project will be US$1.7 billion, net of contributions from suppliers, through 2020. Our investment in the Legacy 450/500 executive jets is estimated at US$830 million and is
expected to be invested through 2016, in property, plant and equipment and development for the Legacy 450/500 programs, which were launched by us in April 2008. The first Legacy 500 executive jet was delivered in October 2014, and the Legacy 450
entered into service in 2015.

Our total disbursements in capital expenditures related to property, plant and equipment (excluding spare
parts for pool programs and aircraft under lease or available for lease) were US$246.3 million in 2015, US$227.5 million in 2014 and US$294.3 million in 2013. These investments are related mainly to (1) construction of new facilities and
(2) improvements and modifications to our plants and production facilities for the production of new aircraft models.

In 2016, we
expect to invest approximately US$600.0 million in expenditures for product development and property, plant and equipment. Of this amount, approximately US$325.0 million will be invested in our product development activities, inclusive of
contributions of risk-sharing partners, and US$275.0 million will be invested in property, plant and equipment. The US$275.0 million capital expenditures to be disbursed in connection with property, plant and equipment are primarily related to
(1) improvements to our existing facilities, and the (2) E-Jets E2 family.

We expect to invest approximately 80% of our
budgeted US$600.0 million capital expenditures and development expenditures for 2016 in Brazil, most of which will be invested in product development activities. The remaining 20% of our expenditures will be invested abroad in the maintenance and
improvements of our existing facilities.

Our capital expenditures are generally financed by funds provided by operations, borrowings
under our credit arrangements, cash contributions from risk-sharing partners, advance payments from customers and, to a lesser extent, capital increases to meet these needs. See Item 5B. Operating and Financial Review and
ProspectsLiquidity and Capital ResourcesOverview and Item 5C. Operating and Financial Review and ProspectsResearch.

Defense & Security

We
incur expenditures for defense and security programs under both development and production contracts; however, these programs are funded by the governments which are the customers of these programs, which in our case principally consists of the
Brazilian Federal Government. These contracts are defined as construction contracts and the revenue associated with these contracts is recognized on a percentage of completion basis as contract milestones are achieved.



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4C. Business Overview

We are one of the leading manufacturers of commercial aircraft (i.e., regional and mid-capacity jets) in the world, based on 2015
revenue arising from sales of commercial aircraft, and have a global customer base. Our focus is achieving customer satisfaction with a range of products and services addressing the commercial airline, executive jet and defense and security markets.
Our Commercial Aviation business, including aviation-related services, accounted for 56.5% of our revenue in 2015. We are the leading supplier of defense aircraft to the Brazilian Air Force, based on number of aircraft sold, and we have sold
aircraft to armed forces in Europe, Asia, the United States and Latin America. Our Defense & Security business, including aviation related services, accounted for 13.7% of our revenue in 2015. We have developed a line of executive jets
based on one of our regional jet platforms and launched new executive jets in the entry-level, light, ultra-large and mid-light/mid-size categories: the Phenom 100/300 family, the Lineage 1000 and the Legacy 450/500 family, respectively. Our
Executive Jets business, including aviation related services, accounted for 29.0% of our revenue in 2015. Providing high quality customer support is a key element of our customer focus and is critical to our ability to maintain long-term customer
relationships. Other related businesses accounted for 0.8% of our revenue in 2015. For the year ended December 31, 2015, we generated revenue of US$5,928.1 million, of which approximately 91.7% was U.S. dollar-denominated. At December 31,
2015, we had a total firm order backlog of US$22.5 billion, which included 513 firm orders for commercial aircraft.

Our Strengths

We believe that our primary strengths are:

Leading Commercial Aircraft Manufacturer with a Global Customer Base. Based on the number of aircraft sold, we are a leading
manufacturer of jets of up to 130 seats, with a strong global customer base. Around 90 airlines from over 60 countries are flying our commercial jet aircraft on the five continents. Our customers include some of the largest and most significant
network, regional and low cost carriers in the world.

Aircraft Design; Commonality; Cost and Operating Efficiency. We conceive,
develop and manufacture aircraft to provide our customers with reduced operating, maintenance and training costs due to the similarity and efficiency in design and the commonality of parts within a jet family. These similarities enable us to
significantly reduce our design, development and production costs and reflect these savings in our sales price for our customers. These similarities also reduce the development time of our aircraft.

Strategic Risk-Sharing Partners. With respect to our commercial and executive aircraft, we developed strategic relationships with key
risk-sharing partners. These risk-sharing partners develop and manufacture significant portions of the systems and components of our aircraft and contribute their own funds to develop these systems and components, thereby reducing our development
expenses. These risk-sharing partners also fund a portion of our development expenses through direct contributions of cash or materials. We believe that these strategic relationships enable us to lower our development expenses and risks, improve our
operating efficiency, enhance the quality of our products and reduce the number of our suppliers, thereby providing us with flexibility of our production process.

Funded Development of Defense Products. Historically, development expenditures related to defense aircraft have been funded in large
part by certain of our customers, which in this business segment include the governments of different countries. These customers have had an important role in our engineering and industrial development. In addition, we use well-proven platforms
developed for the commercial and business aviation segments as a solution for certain defense products. We also sell to other military forces the proven defense products developed for the air forces of certain countries.

Flexibility of Production to Meet Market Demands. We believe the flexibility of our production processes and our operating structure,
including our risk-sharing partnerships, allow us to increase or decrease our production in response to market demand.

Experienced and
Highly Skilled Workforce. Our employees are experienced and highly skilled. As of December 31, 2015, engineers comprised 29.8% of our workforce. Due to the high level of knowledge and skill of our employees, and our continuous training and
incentive programs, we are able to efficiently pursue new programs and provide our customers with differentiated technical expertise and guidance.



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Business Strategies

With a view to continue growing our business and increasing our profitability, we intend to continue to offer our customers cost-effective,
high quality, and reliable aircraft and services. The key elements of our strategy are the following:

Continuing to Market Our
Commercial Aircraft. We are fully committed to marketing our jets of up to 130 seats (ERJ 145 family and the E-Jets family). As of December 31, 2015, we had approximately 600 units of the ERJ 145 jet family and over 1,100 units of the
EMBRAER 170/190 jet family active in service. We believe that market opportunities exist for the EMBRAER 170/190 jet family with regional airlines that are seeking to expand their fleet, as well as increase their penetration in higher density
markets and add longer routes. We also believe that the EMBRAER 170/190 jet family will have opportunities with mainline and low-cost airlines that are right sizing their fleets to adjust capacity for low to mid-density markets. As of
December 31, 2015, we were leaders in the segment of jets of up to 130 seats in terms of number of aircraft sold. Additionally, we believe that our commercial aircraft will provide us with significant opportunities to increase our
competitiveness by offering a full range of jets of up to 130 seats to our customers.

Strengthening Our Position in the Executive Jet
Market. We believe that the executive jet market provides us with significant growth opportunities. We expect to offer products in all executive jet categories, from the entry-level to the ultra large. We have developed the Legacy 600, a super
mid-size jet, the Phenom 100, an entry-level jet, the Phenom 300, a light jet, the Lineage 1000, an ultra large jet, and the Legacy 650, a large executive jet. In addition, in 2014 we delivered the first Legacy 500, a mid-size jet, and in 2015 we
delivered the first Legacy 450, a mid-light jet. We have endeavored to understand and respond to market and customer needs, in an effort to continuously improve the product and customer support for our executive jets.

Continue to Pursue Market Niche Opportunities in the Defense and Security Market. We currently offer products for transportation,
training, light attack, intelligence, surveillance and reconnaissance. Since our products offer multi-mission capabilities at a competitive price and are designed to be operated in any environment at low operating costs, we believe our products meet
the needs of governments in countering global threats, such as terrorism, drug dealing and weapon smuggling.

Continued Focus on
Customer Satisfaction and Support. We believe that our focus on customer satisfaction is fundamental to our entrepreneurial success and our business strategy. Providing high quality customer support and services is a key element of our customer
focus and it is critical to our ability to maintain long-term relationships with our customers and keep our products competitive in the market. As the number of our aircraft in operation continues to grow, and our Executive Jets business expands, we
have further increased our commitment to providing our customers with an appropriate level of after-sale support, including technical assistance, training, maintenance, spare parts and other related services. This is evidenced, for example, by the
expansion of our customer support and services bases.

We own and manage several service centers, strategically located in various parts
of the world. In addition, our customers can rely on several authorized third-party maintenance services centers around the world to comply with their maintenance needs. For further information on our support and services network, see
Services and Support.

Continue to Motivate Our Employees and Improve Our Production Processes and Managerial
Practices. We are constantly seeking to exceed our customers expectations. In order to achieve this goal, we must, on a daily basis, continuously seek to implement the most efficient production processes and best managerial practices.
Because the success of our products and services is ultimately a combination of the contribution of our employees and the production processes we have developed over the years, we recognize that we must continue to motivate our employees and refine
our production processes. To that effect, we have implemented, and intend to further develop, corporate programs based on a lean manufacturing philosophy, such as the Embraer Enterprise Excellence Program (or P3E), that are designed to
strengthen our internal culture of excellence and improve the efficiency of our operations.The P3E consists of four basic pillarsCultural Organization, Personnel Development, Leadership Development and Corporate Efficiency.



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Commercial Aviation Business

We design, develop and manufacture a variety of commercial aircraft. Our Commercial Aviation business is our primary business, accounting for
56.5% of our revenue for the year ended December 31, 2015.

Products

We developed the ERJ 145 family, our 37-50-passenger twin jet-powered regional aircraft, introduced in 1996, to address the growing demand
among regional airlines for medium-range, jet-powered aircraft. We are continuing to develop the EMBRAER 170/190 jet family, our 70-130 seat platform, to serve the trend in the commercial airline market toward larger, faster and longer range jets
and to further diversify our offerings in the jet market. We continue to monitor and analyze market trends, customer requirements and aircraft demand to guide our product development according to market needs.

ERJ 145 Regional Jet Family

The ERJ 145
is a twin jet-powered regional aircraft accommodating up to 50 passengers. This jet was developed in response to the increasing demand from the regional airline industry for an aircraft that offered more speed and comfort than a turboprop. The ERJ
145 was certified by the Brazilian Aviation Authority in November 1996, the FAA in December 1996, and the European Aviation Authority in April 1997. We began delivering the ERJ 145 in December 1996 and delivered the 1,000th unit, manufactured by
Harbin Embraer Aircraft Industry Co. LTD., to the HNA Group in September 2007.

The ERJ 135 is a 37-seat regional jet based on the same
design as the ERJ 145. The ERJ 135 has approximately 96% commonality of parts and components with the ERJ 145, reducing spare-parts requirements and permitting the utilization of the same ground support equipment for customers that use both
aircraft. The ERJ 135 was certified by the Brazilian Aviation Authority in June 1999, by the FAA in July 1999 and by the European aviation authority in October 1999. Deliveries of the ERJ 135 began in July 1999.

We developed the ERJ 140 in response to customer requests. The ERJ 140 is a 44-seat regional jet based on the same design as the ERJ 135 and
was manufactured on the same production line as the ERJ 145 and ERJ 135. The ERJ 140 has approximately 96% commonality with the ERJ 145 and ERJ 135, providing our customers with significant maintenance and operational benefits. The ERJ 140 was
certified by the Brazilian Aviation Authority in June 2001 and by the FAA in July 2001. We began delivering the ERJ 140 in August 2001.

The ERJ 145 regional jet family allows for standardized pilot certification and maintenance procedures.

EMBRAER 170/190 Jet Family

The EMBRAER
170/190 jet family provides our customers four aircraft models in the mid-capacity passenger range. The EMBRAER 170 is a 70-78 seat jet and the EMBRAER 175 is a 78-88 seat jet, while the EMBRAER 190 is a 98-114 seat jet and the EMBRAER 195 is a
108-124 seat jet.

The EMBRAER 170 was certified by the Brazilian Aviation Authority, the FAA, the Joint aviation authority of Europe (the
former advisory organization that made certification recommendations to non-EU national authorities), or JAA and the EASA in February 2004, and deliveries of the EMBRAER 170 began in March 2004. The EMBRAER 175 was certified by the Brazilian
Aviation Authority in December 2004, by the EASA in January 2005 and by the FAA in August 2006. The EMBRAER 190 was certified by the Brazilian Aviation Authority in August 2005, by the FAA in September 2005 and by the EASA in June 2006. The EMBRAER
195 was certified by the Brazilian Aviation Authority in June 2006, by the EASA in July 2006 and by the FAA in June 2007.



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We designed the EMBRAER 170/190 jet family to maximize the benefits of commonality. Aircraft in
the family share approximately 86% of the same components. The high level of commonality in this jet family lowered our development expenses and shortened our development period. We believe that this commonality leads to significant savings to our
customers in the form of easier training, less expensive parts and maintenance and lower operational costs. Due to differences in size and weight, the EMBRAER 170/190 jet family does not share the same wing design. This new mid-capacity jet family
has engines fixed under its main wingsa design intended to enhance power, improve fuel economy and minimize turnaround times. All of the aircraft models of this family are powered by engines manufactured by General Electric and contain
state-of-the-art avionics manufactured by Honeywell.

The EMBRAER 170/190 jet familys principal features are:



| |  |  | Performance. All four jets in the EMBRAER 170/190 jet family have a maximum cruising speed of Mach .82. The EMBRAER 170 and the EMBRAER 175 have maximum fully loaded ranges of 1,800 and 1,700 nautical
miles, respectively, and each is available in the long-range version, with maximum fully loaded ranges of 2,100 and 2,000 nautical miles, respectively. The EMBRAER 190 and EMBRAER 195 have maximum fully loaded ranges of 1,800 and 1,500 nautical
miles, respectively, and each is available in the long-range version with maximum fully loaded ranges of 2,400 and 2,200 nautical miles, respectively.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Ground servicing. The underwing engine design and the existence of four doors, two in the front and two in the back, provide for enhanced accessibility and efficiency of ground services.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Cabin and cargo space.We have enhanced passenger safety and comfort in the EMBRAER 170/190 jet family. The aircrafts double-bubble design enables a four-abreast cabin, a wide aisle, greater
interior space and headroom and a larger baggage compartment than the existing mid-capacity jets of our competitors, including those mid-capacity jets that are in the development stage.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In June 2013, Embraer launched the second generation of its E-Jets family of commercial aircraft, named the E-Jets E2, comprising three new
airplanes, the E175-E2, E190-E2, and E195-E2. The E190-E2 is expected to enter service in the first half of 2018. The E195-E2 is slated to enter service in 2019 and the E175-E2 in 2020. Embraer estimates its total investments in the new E-Jets E2
models to be US$1.7 billion over the next several years.

The launch of the E2 builds on our vision to offer leading-edge commercial jets
with a capacity right-sized for 70 to 130 seats, seamless mainline comfort, and performance for flexible and efficient utilization by regional, low-cost, and network carriers. Our strategy is to offer all the benefits of a new design, but with the
reliability of a mature platform and commonality with current generation E-Jets. We have continually invested in the E-Jets program, so that our customers can stay competitive with aircraft that have the lowest operating costs and the highest
passenger appeal, today and in the future.

In a typical single-class layout, the E175-E2 was extended by one seat row, compared to the
current generation E175, and will seat up to 90 passengers, while the E190-E2 is the same size as the E190, of up to 114 seats. The E195-E2, compared to the current E195, has grown by three seat rows and will accommodate up to 132 seats in a typical
single class configuration.

In June 2015, two years after the launch of the program, we began to assemble the first of the E-Jets E2
family, an E190-E2, at our factory in São José dos Campos. Embraer has already received the first sub-assemblies from suppliers in several countries and the assembly of the first prototype is moving forward as planned.

In November 2015, the Pratt &Whitney PW1900G PurePower® Geared Turbofan
(GTF) engine for the Embraer E190-E2 and E195-E2 aircraft, successfully completed its first flight initiating the engines flight test program.

In February 2016, in a ceremony held at our plant in São José dos Campos, we presented the E190-E2. The E190-E2 maiden flight is
scheduled for the second half of 2016. The E190-E2 is scheduled to entry into service in first-half of 2018.



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EMB 120 Brasilia

The EMB 120 Brasilia is a pressurized twin wing-mounted turboprop aircraft that accommodates up to 30 passengers. The EMB 120 Brasilia was
developed in response to the commercial airline industrys demand for a high-speed and fuel-efficient 30-seat regional aircraft. The EMB 120 Brasilia was certified by the FAA in May 1985 and by the Brazilian Aviation Authority in July 1985.
Since its introduction in 1985, we have delivered 352 EMB 120 Brasilias for the regional market and six EMB 120 Brasilias for the defense and security market.

Customers

We have a diverse, global
customer base, mainly in the commercial airline market in Europe, the Middle East, Africa, Asia (particularly China) and the Americas. Our major customers for commercial aircraft include some of the largest regional, low-cost and mainline airlines
in the world. As of December 31, 2015, our largest customers, by aircraft in service, were Skywest, Republic, Trans States, Envoy, Azul, Aeromexico, TianjinHNA, JetBlue, HOP!Air France and Air Canada.

For a discussion of significant customer relationships, see Item 3D. Key InformationRisk FactorsRisks Relating to
EmbraerWe depend on key customers.

We generally sell our commercial aircraft pursuant to contracts with our customers on a
fixed-price basis, adjusted by an escalation formula that reflects, in part, inflation in the United States. Our contracts generally include an option for our customers to purchase additional aircraft at a fixed price option, subject to the same
escalation formula. In addition, our contracts include a product support package to cover the entry into service of our aircraft, as well as a general warranty for such aircraft (See Item 5Critical Accounting Estimates  Product
Warranties). Other provisions for specific aircraft performance and design requirements are negotiated with our customers. Finally, some of our contracts contain cancellation provisions and trade-in options and financial and residual value
guarantees. See Item 3D. Key InformationRisk FactorsRisks Relating to EmbraerSome of our aircraft sales may be subject to financial and residual value guarantees and trade-in options that may require us to make significant
cash disbursements for a more detailed discussion of these provisions.

Sales and Marketing

Our current marketing strategy is based upon our assessments of the worldwide commercial airline market and of the needs of our customers. We
actively market our aircraft to international airlines and regional affiliates of major global airlines through our regional offices in the United States, Europe and Asia. Our success depends, to a significant extent, on our ability to discern our
customers needs, including needs for customer service and product support, and to fill those needs in a timely and efficient manner while maintaining the high quality of our products. Our market and airline analysts focus on the long-term
trends of the market, competitive analysis, product-enhancement planning and airline analysis. In terms of direct marketing to our customers, we rely heavily on the media, as well as participating in air shows and other cost-effective events that
enhance customer awareness and brand recognition. Besides São José dos Campos in Brazil, we have regional sales offices in Amsterdam, Holland; Fort Lauderdale, Florida, U.S.A.; Beijing, China and Singapore.

Production, New Orders and Options

Prior to starting production or development of a new project, we secure letters of intent for future orders of a significant number of
aircraft. We typically begin taking orders and building a backlog two years before we begin producing a new aircraft model, aiming to receive a significant number of orders before we deliver the initial aircraft. Once an order is taken, we reserve a
place for that order on the production line, ensuring that we will maintain production sufficient to meet demand. Once a place is reserved on the production line, we are able to give customers delivery dates for their orders.

We include an order in backlog once we have received a firm commitment, represented by a signed contract. Our backlog does not include options
and letters of intent for which definitive contracts have not been executed.



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Our options generally provide our customers the right to purchase an aircraft at a fixed price
and on a specified delivery date, subject to escalation provisions, under a purchase agreement. Once a customer decides to exercise an option, we account for it as a firm order. Occasionally, we have extended the exercise date for our options and
renegotiated the delivery schedule of firm orders, as well as allowed customers to convert their firm orders or options for one aircraft into firm orders or options for another aircraft within the same commercial aircraft family.

Services and Support  Commercial Aircraft

We are working on further developing our portfolio of services for our Commercial Aviation customers, which comprises the following areas:



| |  |  | Field Support, which provides conveniently accessible on-site or remote assistance for all operational and technical issues in order to maximize customer performance;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Technical Support, which serves technical needs through analytics, engineering expertise, and real-time fleet monitoring;
| | - |  | -------------------------------------------------------------------------------------------------------------------------



| |  |  | Flight Operations, which supports the efficiency and safety of airline operations through tailored solutions, consulting, supervision, and training resources;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Aircraft Modification, which provides total execution and coordination of system upgrades for improved fleet performance and cabin modifications for enhanced onboard amenities;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Materials, which ensures availability and economy in parts and materials management for both scheduled and unscheduled maintenance;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------



| |  |  | Maintenance, which provides optimized maintenance solutions based on best practices for efficiency, safety, and effectiveness;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------



| |  |  | Training, which prepares crew, maintenance technicians, and operations personnel for the highest levels of competence; and
| | - |  | --------------------------------------------------------------------------------------------------------------------------



| |  |  | eSolutions, which deploys the internet as the core communication channel for 24/7 collaboration and information exchange.
| | - |  | -------------------------------------------------------------------------------------------------------------------------

We have a worldwide presence, with five regional units strategically positioned around the globe in order to provide us with greater agility
in understanding the needs and desires of our customers, respecting the cultural diversity of the different regions where our customers are based. Our regional units are located as follows:



| |  |  | Fort Lauderdale, Florida, U.S.A., which supports our customers in North America;
| | - |  | --------------------------------------------------------------------------------



| |  |  | Amsterdam, Netherlands, which supports our customers in Europe, Africa, the Middle East and Central Asia;
| | - |  | ---------------------------------------------------------------------------------------------------------



| |  |  | Singapore, which supports our customers in the Asia Pacific region;
| | - |  | -------------------------------------------------------------------



| |  |  | Beijing, China, which supports our customers in China; and
| | - |  | ----------------------------------------------------------



| |  |  | São José dos Campos, Brazil, which supports our customers in Latin America.
| | - |  | ---------------------------------------------------------------------------

All
units mentioned above have the following infrastructure:



| |  |  | a spare parts distribution center;
| | - |  | ----------------------------------



| |  |  | technical and material field support teams with field engineers and customer account managers;
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | warranty and repair administration offices; and
| | - |  | -----------------------------------------------



| |  |  | services sales managers.
| | - |  | ------------------------

Our headquarters in São José dos Campos also offers the following
services:



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| |  |  | Customer Care Center (CCC) providing an integrated solution of technical and spare parts support available 24 hours a day, seven days a week;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | spare parts planning and material engineering;
| | - |  | ----------------------------------------------



| |  |  | technical support;
| | - |  | ------------------



| |  |  | flight operations support;
| | - |  | --------------------------



| |  |  | maintenance support engineering;
| | - |  | --------------------------------



| |  |  | MRO (Maintenance Repair & Overhaul Organization) Network strategy and policy;
| | - |  | -----------------------------------------------------------------------------



| |  |  | business development;
| | - |  | ---------------------



| |  |  | technical publications development; and
| | - |  | ---------------------------------------



| |  |  | technical services, such as: maintenance training, eSolutions, engineering services, pilot services and aircraft modifications.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------

In addition, we also have spare parts distribution centers in Louisville, Kentucky and Dubai.

Beyond parts fulfillment and simple rental plans, we also provide innovative programs for material planning, logistics, and acquisitions, such
as:



| |  |  | Fleet-Hour Pool Program;
| | - |  | ------------------------



| |  |  | Parts Consignment Program;
| | - |  | --------------------------



| |  |  | Embraer Collaborative Inventory Plan (ECIP);
| | - |  | --------------------------------------------



| |  |  | Embraer Parts Exchange Program (EPEP); and
| | - |  | ------------------------------------------



| |  |  | Customer Stock Optimization.
| | - |  | ----------------------------

We own and operate MRO facilities in Nashville, Tennessee, where
we have an Embraer Aircraft Maintenance Services (EAMS), a dedicated service center for commercial aviation, and through OGMA we offer dedicated maintenance services both commercial and defense customers in Alverca, Portugal.

The Embraer MRO Network that supports our commercial aviation aircraft fleet is also expanding with our third-party maintenance service
centers. As of December 31, 2015, these centers are:



| |  |  | TAP Maintenance & Engineering, in Porto Alegre, Rio Grande do Sul, Brazil;
| | - |  | --------------------------------------------------------------------------



| |  |  | FlyBe Aviation Services, in Exeter, United Kingdom;
| | - |  | ---------------------------------------------------



| |  |  | HOP REGIONAL Maintenance Services, in Clermont-Ferrand, France;
| | - |  | ---------------------------------------------------------------



| |  |  | LOTAMS  LOT Aircraft Maintenance Services, in Warsaw, Poland;
| | - |  | --------------------------------------------------------------



| |  |  | STAECO, in Jinan, China;
| | - |  | ------------------------



| |  |  | Tianjin Airlines, in Tianjin, China;
| | - |  | ------------------------------------



| |  |  | Egyptair Maintenance & Engineering, in Cairo, Egypt;
| | - |  | ----------------------------------------------------



| |  |  | LLC NORD-TECHNIK, in Arkhangelsk, Russia;
| | - |  | -----------------------------------------



| |  |  | AUSTRAL, in Buenos Aires, Argentina; and
| | - |  | ----------------------------------------



| |  |  | Kenya Airways, in Nairobi, Kenya.
| | - |  | ---------------------------------



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Our strategy is to maintain our service and support leadership position by continuing to provide
the best customer support anytime and anywhere in the world, and relying on our strong MRO Network, which satisfies customers expectations of quality, lead time, affordability, capability and global coverage.

We constantly monitor customer satisfaction levels and keep open communication channels with them in order to understand customer needs and
define the most appropriate actions for the continuous improvement of our customer support. To do so, we use the following tools and forums:



| |  |  | a customer satisfaction assessment performed annually in order to identify our competitive position;
| | - |  | ----------------------------------------------------------------------------------------------------



| |  |  | a customer support satisfaction survey performed every other year in order to identify our competitive position;
| | - |  | ----------------------------------------------------------------------------------------------------------------



| |  |  | specific action plans and commitments with each customer, known as Customer Integrated Action Plans;
| | - |  | ----------------------------------------------------------------------------------------------------



| |  |  | teamwork and systematic identification and integrated action plans to solve problems affecting us, our suppliers and customers;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------



| |  |  | periodic dedicated meetings at the customers headquarters;
| | - |  | -----------------------------------------------------------



| |  |  | Embraer Operators Conferences that take place yearly in the various regions of the world where we have customer operators;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------



| |  |  | a yearly maintenance cost workshop, where operators share best maintenance practices and discuss cost reduction initiatives;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | events organized by customers, including the Operators Maintenance Forum and the European Customer Community Conference;
| | - |  | -------------------------------------------------------------------------------------------------------------------------



| |  |  | interactive forums for discussions in the web portal FlyEmbraer, to foster the exchange of experiences among customers and Embraer;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------



| |  |  | participation in international fairs related to maintenance, technology, customer relationship management and others;
| | - |  | ---------------------------------------------------------------------------------------------------------------------



| |  |  | Customer Advisory Board (CAB), a biennial meeting with senior executives from our Customer Companies to get high level insights, visions and suggestions for our future; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | an internal program named EECE (Embraer Excellence in Customer Experience), aiming to address changes in the Services & Support area of the Commercial Aviation division, in order to elevate the performance of
the Commercial Aviation business, covering current and future market needs, with the purpose of obtaining the highest levels of customer experience in the commercial aviation industry.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Competition

We generally face
competition from major manufacturers in the international aircraft market. Each category of our products faces competition of a different nature and generally from different companies. Some of our competitors have greater financial, marketing and
other resources than we do.

We currently face the strongest competition from the following aircraft in the 70-130 seat category:



| |  |  | ATR-72, a 68-seat turboprop produced by ATR;
| | - |  | --------------------------------------------



| |  |  | Q-400, a 72-seat turboprop produced by Bombardier;
| | - |  | --------------------------------------------------



| |  |  | CRJ-700, CRJ-900 and CRJ-1000, 70-seat, 86-seat and 98-seat regional jets, respectively, produced by Bombardier;
| | - |  | ----------------------------------------------------------------------------------------------------------------



| |  |  | ARJ21, a 90-seat regional jet produced by COMAC.
| | - |  | ------------------------------------------------



| |  |  | SSJ100, a 103-seat regional jet produced by Sukhoi.
| | - |  | ---------------------------------------------------



| |  |  | A318, a 120-seat jet produced by Airbus; and
| | - |  | --------------------------------------------



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| |  |  | 737-600, a 123-seat jet produced by Boeing.
| | - |  | -------------------------------------------

We expect new developments in this market segment
from current and new competitors, including:



| |  |  | Bombardiers CSeries jet launched in 2008, which seats 110 to 150 passengers, and is expected to enter into service by 2016; and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------



| |  |  | Mitsubishi Heavy Industries MRJ, a 76- to 88-seat regional jet launched in March 2008, which is expected to enter into service by 2018.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------

Embraer is the world leader in the 70-130 seat jet category with 51% market share in terms of accumulated net orders, since 2004, followed by
Bombardier with 22%, COMAC with 10%, Mitsubishi with 8%, Sukhoi with 6% and the remaining 3% being held by other competitors.

The key
competitive factors in the markets in which we participate include design and technological strength, aircraft operational costs, price of aircraft, including financing costs, customer service and manufacturing efficiency. We believe that we will be
able to compete favorably on the basis of our aircraft performance, efficiency, low operating costs, product development experience, global customer base, market acceptance, cabin design and aircraft price.

Executive Aviation Business

We refer to
our executive aviation business segment as Executive Jets. We developed a line of executive jets: the Legacy 600, a super mid-size jet, followed by the Phenom 100, an entry-level jet, and the Phenom 300, a light jet. The Lineage 1000, an
ultra-large jet, was added as the largest executive jet in our executive jet portfolio and, during 2008, we launched the Legacy 450 and Legacy 500, a mid-light and a mid-size jet, respectively. In 2009, we presented the new Legacy 650, a large
executive jet that is positioned in our executive jet portfolio between the Legacy 600 and the Lineage 1000. The Legacy 500 and the Legacy 450 entered into service in October of 2014 and December 2015, respectively. We believe these aircraft models
will establish our executive jets portfolio as one of the broadest in the executive aviation industry.

We market our executive jets to
companies, including fractional ownership companies, charter and air-taxi companies, and high-net-worth individuals. Our Executive Jets segment accounted for 29.0% of our revenue for the year ended December 31, 2015, resulting from the delivery
of 12 Phenom 100 jets, 70 Phenom 300 jets, 3 Legacy 450 jets, 20 Legacy 500 jets, 12 Legacy 600/650 jets, and three Lineage 1000 jets. On December 31, 2015, our firm orders in backlog for our executive jets totaled US$ 2.0 billion in value.

The Legacy 600 shares important qualities with our regional jet platform. However, although the Legacy 600 has some of the same
components of our airliners, such as the ERJ 135, the Legacy 600s interior, fuel tank, controller and indication systems and its winglets differ from those of our airliners. The Legacy 600 entered into service in 2002 after it was certified by
the Brazilian aviation authority in December 2001 and by the FAA in August 2002.

In May 2005, we launched the Phenom 100 and Phenom 300,
which are executive jets in the entry-level and light jet categories, respectively. The Phenom 100 jet, which carries six to eight people, received the ANAC and FAA certification in December 2008, the same month of its entry into service. The Phenom
300 carries up to nine people and has a larger fuselage and wingspan and longer range than the Phenom 100. It received the ANAC and FAA certification and entered into service one year after the Phenom 100. By the end of 2015, the Phenom 100 fleet
comprised more than 320 aircraft distributed in 28 countries and the Phenom 300 fleet comprised over 300 jets distributed in 26 countries.

In May 2006, we launched the Lineage 1000, an ultra-large executive jet based on the EMBRAER 190 commercial jet platform. The Lineage 1000 is
configured to accommodate up to 19 people in a total cabin volume of 4,085 cubic feet (115.7 cubic meters). The Lineage 1000 was certified by ANAC in December 2008 and by the FAA in January 2009, and entered into service in the first half of 2009.
By the end of 2015, the Lineage 1000 fleet comprised more than 20 units distributed in 12 countries.



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In April 2008, we formally launched two new programs in the medium jet categories, namely the
mid-light Legacy 450 jet, with a 2,575 nautical mile range and capacity of up to nine passengers, and the mid-size Legacy 500 jet, with a 3,125 nautical mile range and capacity of up to 12 passengers. The Legacy 450/500 jets are positioned in our
executive jets portfolio between the Phenom 300 and the Legacy 600. The Legacy 500 was certified in 2014, the same year that it entered into service. By the end of 2015, the Legacy 500 fleet was composed of more than 20 units distributed in 6
countries. The Legacy 450 was certified by the ANAC and FAA in August 2015 and by the EASA in September 2015. In November the company announced an increase in the Legacy 450s range, to 2,900 nautical miles, and it entered into service in
December. We believe that these two aircraft programs will help strengthen our position in the market and establish our portfolio as one of the broadest in the executive aviation industry.

In October 2009, we presented the Legacy 650 jet during a press conference at the 62nd Annual Meeting and Convention of the National Business
Aviation Association in Orlando, Florida. The Legacy 650 is a large category jet based on the successful platform of the super mid-size Legacy 600, with a longer range for up to 14 passengers. The Legacy 650 received ANAC and FAA certification,
respectively, in October 2010 and February 2011, with its entry into service occurring in November 2010. By the end of 2015, the fleet of Legacy 650s comprised more than 80 jets in service in 25 countries.

Competition

The Legacy 600 and
the Legacy 650 compete with aircraft produced by Dassault Aviation, Bombardier and Gulfstream. Phenom 100 and Phenom 300 competitors in the entry-level and light jet categories include Cessna and Bombardier. Boeing and Airbus are the main
competitors for the Lineage 1000 ultra-large jet. In the mid-size category, the Legacy 500 competes with Cessna, Bombardier, Dassault and Gulfstream aircraft, while the Legacy 450 competes largely with aircraft produced by Bombardier and Cessna.

Continuing Internationalization

In October 2014, we announced our Legacy 500 and Legacy 450 assembly complex in Melbourne, Florida, more than doubling the size of our existing
212,000 square-foot campus at Melbourne International Airport. The new assembly complex is expected to be operational by 2016, with four new buildings: an assembly hangar, a paint facility, a completion center and flight preparation facility, and a
new dedicated delivery center.

Services and Support  Executive Jets

We expect to continue enhancing customer support and services offered in the Executive Jets segment. To this end, we have added five
wholly-owned service centers to our operations since 2007, in Fort Lauderdale, Florida; Mesa, Arizona; Le Bourget, France; Bradley, Connecticut; Sorocaba, São Paulo. At the end of 2015, we had 69 service centers to support our executive jet
fleet. In 2006, we entered into an agreement with CAE to form a global training company to provide comprehensive pilot and ground crew training to customers of the Phenom 100 entry-level jet and Phenom 300 light jet aircraft. We also started to
offer the initial training program at CAE SimuFlite in Dallas, Texas, as the Phenom 100 started to operate in 2008. In 2012, a new training center was opened in Guarulhos, Brazil, in order to support the growing fleet of Phenom jets in the region.
This company provides entitlement training and post-entitlement training for pilots, maintenance technicians and dispatch personnel. We also plan to continue to invest in parts inventory and logistics worldwide as our executive aircraft fleet
continues to grow. In 2012, we implemented a mobile rescue support service in the United States and in Brazil, with fully equipped trucks and vans. We also implemented a spare parts distribution center in Las Vegas in order to better support the
executive jet customers on the west coast of the United States.

We have further developed our customer support and services structure to
enhance our customers satisfaction in operating our executive jets. To measure our customers satisfaction, we conduct a yearly customer experience survey of Executive Jet customers to develop action plans that will allow us to provide
effective responses to our clients.



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In August 2014, our Executive Jets product support was for the first time listed at the top of
the Best Support & Services ranking by Aviation International News magazine, and in 2015 Pro Pilot magazine ranked Embraer Executive Jets in first place in the business aviation industry. The positive customer responses evidenced by these
surveys recognize our efforts in providing excellent customer support and services which are consistent with our business strategy and demonstrate Embraers commitment in this regard.

In 2014, our three service centers in the United States received for the fourth time the FAA Diamond award, a certificate of excellence
related to maintenance technician training.

In 2015, we completed the certification of three new authorized service centers worldwide,
increasing our support in Nigeria, the UK and the U.S.

We have signed agreements with 17 service centers around the world for the Legacy
450/500.

In 2013, we selected FlightSafety International as the training provider for the Legacy 450/500 and by the end of the year the
first Full Flight Simulator had already been built. It was certified in November 2014 in accordance with the aircrafts entry to service at the end of 2014.

In the area of technological innovation, in 2013 we launched the eTechPubs app for iPad, which offers all technical manual information for the
Phenom 100/300, Legacy 450/500 and 600/650 Lineage 1000 jet operators.

In the first quarter of 2014, we celebrated the official opening
of our Executive Jets Service Center in Sorocaba, complementing our São José dos Campos facility in Brazil, with expanded operations in MRO and FBO to comply with the growth in demand for maintenance services and hangar rental. In
December 31, 2015 it represented 90% of total maintenance events, compared with 10% at the São José dos Campos Service Center.

In fourth quarter of 2015, our service center in France received ANAC authorization, increasing customer support in that region. At the same
time, our Fort Lauderdale Service Center received the Mexico DGAC certification.

Our Customer Support Contact Center is dedicated to our
executive jets and offers complete and timely assistance for their operational, technical and maintenance needs. This Customer Support Contact Center operates 24 hour a day, seven days a week, and is based at Embraers headquarters in
São José dos Campos. Its priority is to minimize downtime from the customers first contact to the final solution, by quickly and efficiently applying appropriate resources to critical needs, thus assuring that customers have
expert assistance anywhere in the world.

Defense & Security Business

In 2011, Embraer added capabilities and broadened the scope of its corporate unit dedicated to the defense and security market. The creation of
the new Embraer Defense & Security unit was an important step towards consolidating Embraer as a key supplier of defense and security solutions for the Brazilian federal government, as well as other governments worldwide.

We conceive, design, develop, manufacture and support a wide range of integrated solutions for the defense and security market. Our products
include training/light attack aircraft, aerial surveillance platforms, military transport aircraft, government transport aircraft and Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance systems, or C4ISR
systems, and border surveillance and security. We offer a complete portfolio of customer services, ranging from maintenance and material solutions to complete Contractor Logistic Support programs.

As of December 31, 2015, we had sold more than 1,250 defense aircraft, including government transport aircraft, to more than 40 armed
forces and operators worldwide. We are also the leading supplier of defense aircraft to the Brazilian Air Force based on the total number of aircraft in its fleet. Our defense and security business accounted for 23.2% and 13.7% of our revenue for
the years ended December 31, 2014 and 2015, respectively.



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Products

C4ISR Systems

Embraer has developed three
cost-effective, reliable and flexible special-mission aircraft based on the ERJ 145 regional aircraft platform: the EMB 145 Airborne Early Warning and Control, or AEW&C, the EMB 145 Remote Sensing/Airborne Ground Surveillance, or RS/AGS EMB 145
Multi Intel, and the EMB 145 Maritime Patrol, or MP. A total of 18 aircraft of this category have been manufactured for the Brazilian, Mexican, Greek and Indian Air Forces.

We believe the EMB 145 AEW&C is the most advanced and affordable Airborne Early Warning and Control aircraft available in the market. It
combines Embraers reliable and cost-effective ERJ 145 regional airplane platform with a unique, high-performance, multi-mode active phased-array AEW radar, a powerful C4I system and a comprehensive set of support systems, such as
self-protection, communications and data links.

The EMB 145 Multi Intel, also known as the EMB 145 Remote Sensing/Airborne Ground
Surveillance, or RS/AGS, aircraft is designed to conduct electronic and reconnaissance missions. It features state-of-the-art sensors for Image Intelligence (IMINT), Signal Intelligence (SIGINT), and Measurement and Signature Intelligence (MASINT),
and is capable of providing real-time imagery and signals intelligence over ground objectives. It is equipped with extensive sensor suites ranging from high-performance synthetic aperture radar to electro-optical sensors, and includes communications
and electronic exploitation systems capable of gathering complete intelligence information.

The EMB 145 MP aircraft is designed to
address coastal and open sea threats. The EMB 145 MP is designed to carry out maritime patrol by using maritime and ground surveillance radar and electro-optical sensors, as well as dedicated communications and surveillance equipment. In the ASW
(Anti-Submarine Warfare) configuration, the EMB 145 MP is designed to carry out anti-submarine warfare missions.

Embraer also develops
and integrates state-of-the-art C4ISR (Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance) systems for defense customers that require accurate information on a real-time basis. The information provided by C4ISR
systems seeks to give defense organizations the capability to collect, process and disseminate an uninterrupted flow of accurate and timely data that enables them to make better decisions and act faster and more effectively.

Training and Light Attack  Super Tucano

The Super Tucano is a multipurpose, military turboprop that combines effective training and operational capabilities with low acquisition and
operating costs. It offers solutions for advanced training, such as in-flight virtual training. The Super Tucano has the operational capabilities required for border surveillance, close air support operations and counterinsurgency (COIN) missions.
It also offers avionics comparable to those of fourth generation fighter jets, ejection seats, an onboard oxygen-generating system and outstanding external load capability.

The Super Tucano is used for advanced pilot training and for surveillance operations in the Amazon region of Brazil in connection with the
Brazilian federal governments Sistema de Vigilância da Amazônia (System for the Surveillance of the Amazon), or SIVAM.

The Super Tucano is one of the highlights of our Defense & Security business unit due to its versatility, its excellent performance
for training and operational missions and its competitive pricing, together with its low operating and maintenance costs. The Super Tucano currently has 220 firm orders, out of which more than 200 aircraft have already been delivered.

In February 2013, the A-29 Super Tucano was selected by the United States Air Force, or USAF, for its Light Air Support, or LAS program, with
a firm order for 20 aircraft. The aircraft are being supplied in partnership with Sierra Nevada Corporation, the prime contractor, and will be used to conduct advanced flight training, aerial reconnaissance, and light air support operations in
Afghanistan.



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In June 2015, during the Paris Air Show, Embraer Defense & Security and the Ministry of
Defense and Veterans from the Republic of Mali signed a contract for the acquisition of six A-29 Super Tucanos. The contract includes logistics support for the operation of these aircraft and also provides a training system for pilots and mechanics
of Mali Air Force. The A-29 Super Tucano will be deployed for advanced training, border surveillance, and internal security missions. At the same Air Show, we and the Ministry of Defense of the Republic of Ghana also signed a contract for the
acquisition of five A-29 Super Tucanos. The contract includes logistics support for the operation of these aircraft as well as the set-up of a training system for pilots and mechanics in Ghana that will provide autonomy to the Ghana Air Force in
preparing qualified personnel.

In November, 2015, The Republic of Lebanon confirmed the acquisition of six Super Tucanos from Sierra
Nevada Corporation and Embraer Defense & Security. The contract includes logistics support for aircraft operation as well as a complete training system for Lebanese Air Force pilots and mechanics. The sale was approved in June by the U.S.
State Department. The planes will be built in Jacksonville, Florida.

Military Transport  KC-390

The KC-390 is a joint project of the Brazilian Air Force with Embraer to develop and produce a tactical military transport and aerial refueling
airplane that represents a significant advance in terms of technology and innovation for the aeronautical industry. The aircraft is designed to establish new standards in its category, with lower operating cost and the flexibility to perform a
variety of missions: cargo and troop transport, air delivery, aerial refueling, search and rescue, and aerial firefighting, among others.

On May 20, 2014, Embraer and the Brazilian Air Force signed the series production contract for the delivery of 28 KC-390 aircraft and
associated initial logistic support. In addition to the Brazilian Air Force order, there are currently letters of intent from Portugal, the Czech Republic, Colombia, Chile and Argentina to purchase aircraft.

In February 2015, Embraer successfully conducted the first flight of the KC-390. Having benefited from an advanced program of simulations and
extensive ground tests, the KC-390 crew performed maneuvers to evaluate flight characteristics and conducted a variety of systems tests. The first prototype is performing a flight test campaign and the second prototype is scheduled to have its
maiden flight in the first half of 2016. The certification of the KC-390 is expected for 2017.

Government Transport and Special Mission Aircraft

Embraer is marketing its wide line of commercial and executive jets to defense and government customers.

In 2014, Embraer was contracted by the Brazilian Air Force to supply six Legacy 500 aircraft to perform flight test missions. We also signed a
contract to supply one Legacy 600 to the Honduran government.

In addition to these governments, our base of customers operating Embraer
jets for the transportation of authorities includes Ecuador, Thailand, Pakistan, Panama, Belgium, Greece, Colombia, Angola, Nigeria and India.

Modernization Programs

We offer
military aircraft modernization services and currently have four ongoing programs under contract, three with the Brazilian Air Force and one with the Brazilian Navy. The first program, known as F-5BR, is focused on performing structural and
electronics upgrades for F-5 fighter jets. In 2012, we concluded the modernization and delivery of 46 F-5 jets to the Brazilian Air Force. At the start of 2011, Embraer signed a contract with the Brazilian Air Force to modernize one additional batch
of 11 F-5 fighter jets. During 2015, the Brazilian Air Force adjusted the number of aircraft to be modernized under this contract from eleven to three.

The second program with the Brazilian Air Force, known as the A-1M modernization program, focuses on modernizing the 43 AMX. In 2013, Embraer
Defense & Security delivered the first A-1M fighter jet to Brazilian Air Force, with two additional aircraft delivered in 2014. Due to Brazilian government budget constraints, at the end of 2015 this contract is under renegotiation between
the Brazilian Air Force and Embraer, focusing on scope adjustments.



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The third modernization program regards the upgrade of the 12 A-4 Skyhawk (AF-1 Brazilian Navy
Designation) aircraft of the Brazilian Navy, with the aim to incorporate new technology, including new avionics, radars, power generation and autonomous oxygen generating systems. In May 2015, Embraer Defense & Security held at its
industrial plant in Gavião Peixoto the delivery ceremony of the first modernized AF-1 (AF-1B) fighter jet to be supplied to the Brazilian Navy.

The fourth contract signed between Embraer Defense & Security and the Brazilian Air Force regards the modernization of five EMB 145
AEW&C (Airborne Early Warning and Control). The contract also provides for six mission planning and analysis stations, which will be employed in the training and improvement of crews.

Services and Support  Defense & Security

Our Defense & Security customer service portfolio involves Material Support, Training, Field Support, Technical Support and
MROMaintenance, Repair and Overhaul services.

Our Customer Support and Services department provides the support and services
required by our customers for aircraft operational success, ensuring readiness and sustained mission capability. The provision of world-class support and services to our customers is essential to our business strategy and the maintenance of enduring
relationships with customers.

We own and operate MRO, located as follows:



| |  |  | Alverca, Portugal, which we refer to as OGMA, began to operate in March 2005 and operates for commercial and defense customers; and;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Gavião Peixoto, in the State of São Paulo, Brazil, where we have a dedicated service center for defense customers.
| | - |  | ------------------------------------------------------------------------------------------------------------------

In 2015, sales efforts resulted in new contracts to support Embraers Defense & Security customers. We strengthened this
relationship by establishing several support and services contracts in Latin America, Europe, Africa and Asia, improving the quality of service in order to meet customers operational requirements.

Competition

Our military aircraft
faces rigorous competition from various manufacturers from different countries in each market segment.

The Super Tucano competes in the
flight training market with the Pilatus PC-21 (advanced) aircraft from Switzerland, the Beechcraft T-6A/B from the U.S., and the Korea Aerospace Industries KT-1. In the Light Attack market, the Super Tucano competes with the Beechcraft AT-6
and the Korea Aerospace Industries KA-1.

In the special mission aircraft market, Embraer Defense & Security has aerial
platforms of various ranges in its portfolio, allowing a variety of applications in the areas of ISR (Intelligence, Surveillance and Reconnaissance). Thus, it will compete with similar platforms from other manufacturers. Examples of competitors are
the Boeing 737, Northrop Grumman E-2C/D Hawkeye, Alenia ATR 42 and 72, the Airbus Groups CASA CN-235 and C-295, among others.

In
the military transport segment, the KC-390 operates in the medium airlift segment in the class of 23 tons. Hence its main competitor is the C-130J. Given the multi-mission design of KC-390, including Medical Evacuation, Search and Rescue,
Firefighting, Air-to-Air Refueling, Transport of Troops and Aerial Resupply, specific competition with other platforms is also expected.



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Other Related Businesses

We provide fuel systems, structural parts, and mechanical and hydraulic systems to Sikorsky Aircraft Corporation for its production of
helicopters. We also manufacture general aviation propeller aircraft, such as crop dusters, also known as light aircraft. Our Other Related Businesses accounted for 0.8% of our revenue for the year ended December 31, 2015.

We provide to Sikorsky Corporation the development and manufacture of the Landing gear, fuel system and fuel tanks for the S-92 and H-92
Helibus helicopters. We also act as a risk-sharing partner for Sikorsky. These contracts were renewed in 2015 and will expire in 2020.

We
build general aviation propeller aircraft. We have delivered a total of 2,326of these aircraft, and the last delivery of this type of aircraft was in 2000.

We also developed Ipanema, a crop duster aircraft pursuant to specifications of the Brazilian Ministry of Agriculture. These aircraft are
produced only on demand. Through December 31, 2015, we had delivered a total of 1,371 of these aircraft, including 19 in 2015.

Aircraft
Operating Lease Activities

In order to provide better financial support to our commercial activities, as well as to manage and
reduce financial risks related to the marketing of aircraft, we created ECC Leasing in September 2002.

The mission of ECC Leasing is to
manage and remarket Embraers aircraft portfolio, which as a result of contractual obligations, may be acquired by us via trade-in transactions. We also provide re-marketing services to third parties looking to sell their Embraer manufactured
aircraft.

We have successfully completed sales campaigns for new aircraft, where the acceptance of trade-in aircraft as part of payment
was allowed. We have also generated additional revenues through the sale and lease of aircraft received as trade-ins. Since its establishment in 2002, ECC Leasing and one other Embraer wholly-owned subsidiary managed a portfolio composed of 170
aircraft, of which 12 are under operating leases, 33 are available or under lease/sale negotiations, three are performing flight tests at Embraer, and 122 were sold to airlines, corporations and government entities in North America, South America,
Asia, Europe and Africa.

All sale and leasing transactions were executed based on market rates, thereby helping to sustain the present
and future values of our products.

The continued improvement in financial performance is directly related to ECC Leasings ability
to re-market aircraft in its existing portfolio with similar conditions as those currently in place, as well as to sell aircraft to operators, leasing companies and/or financial institutions, at values close to market rates and without any guarantee
from Embraer.

We believe the results of ECC Leasing will be largely dependent on market conditions, aircraft availability levels and the
demand for regional jets in the 37 to 50 seat category.

As more pre-owned aircraft trade in the market, Embraer and ECC Leasing work
together and we created the Embraer Lifetime Program to better support our customers. The program allows customers of our pre-owned and new aircraft to select from a wide array of services, including, among other things, training, spare parts,
technical support, engine programs, technical representation, maintenance and overhaul coverage. Customers who enroll in this program pay us periodic fees, so that we can provide them with scheduled and unscheduled maintenance, support and repair
services, among other assistance. We believe this program represents an innovative approach, which offers our customers an attractive combination of pre-owned aircraft backed by Embraers comprehensive support package. See Item 3D. Key
InformationRisk FactorsRisks Relating to EmbraerWe face significant international competition, which may adversely affect us.



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In 2015, ECC Leasing sold 16 aircraft to financial investors for a total revenue of US$
50.0 million, recognizing an estimated loss of US$25.2 million related to sale of these aircraft below their book value of US$ 75.2 million. At the time of the sale, the aircraft sold were under operating leases with certain operators, and the
purchase price remunerated ECC Leasing for (i) the transfer of the receivables remaining under the relevant lease agreements, and (ii) the sale and transfer of the aircraft. As a result, the transaction served as a financing to
improve ECC Leasings and our liquidity position.

Embraer Systems

In 2013, we launched Embraer Systems to apply Embraers excellence in sophisticated processes and technologies to capital-intensive and
complex industries besides aviation and defense, and industries in which efficiency, reliability, safety and security are also critical. This is part of the companys diversification strategy, which has progressed in recent years as a way to
enhance growth.

Markets

The
following table sets forth our revenues by line of business and geographic region of end users for the periods indicated:



|                              |  |                         |         |  |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|----------------------------- |  | ----------------------- | ------- |  | ---- |  | ------- | ---- |  |  | ------- |  |  | ---- | ------- |  |  |  | ------- | 
|                              |  | Year ended December 31, |        
|                              |  | 2015                    |         |  | 2014 |  |         | 2013 |  |  | 2012    |  |  | 2011 |        
|                              |  | (in US$ millions)       |        
|Commercial Aviation           |  |                         |         |  |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|North America                 |  |                         | 2,452.7 |  |      |  | 2,065.0 |      |  |  | 1,089.4 |  |  |      | 875.3   |  |  |  | 739.1   | 
|Latin America (except Brazil) |  |                         | 89.8    |  |      |  | 64.7    |      |  |  | 457.9   |  |  |      | 144.6   |  |  |  | 540.3   | 
|Asia Pacific                  |  |                         | 307.8   |  |      |  | 155.4   |      |  |  | 546.3   |  |  |      | 920.8   |  |  |  | 1,041.5 | 
|Brazil                        |  |                         | 145.3   |  |      |  | 73.9    |      |  |  | 103.5   |  |  |      | 46.0    |  |  |  | 294.9   | 
|Europe                        |  |                         | 316.5   |  |      |  | 624.7   |      |  |  | 916.4   |  |  |      | 1,510.8 |  |  |  | 1,013.8 | 
|Others                        |  |                         | 36.6    |  |      |  | 179.6   |      |  |  | 193.5   |  |  |      | 257.9   |  |  |  | 121.6   | 
|Total                         |  |                         | 3,348.7 |  |      |  | 3,163.3 |      |  |  | 3,307.0 |  |  |      | 3,755.4 |  |  |  | 3,751.2 | 
|Executive Jets                |  |                         |         |  |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|North America                 |  |                         | 1,226.6 |  |      |  | 739.4   |      |  |  | 632.2   |  |  |      | 505.9   |  |  |  | 360.8   | 
|Latin America (except Brazil) |  |                         | 38.7    |  |      |  | 110.6   |      |  |  | 6.3     |  |  |      | 43.3    |  |  |  | 83.9    | 
|Asia Pacific                  |  |                         | 149.2   |  |      |  | 353.3   |      |  |  | 336.6   |  |  |      | 327.4   |  |  |  | 155.0   | 
|Brazil                        |  |                         | 72.6    |  |      |  | 207.1   |      |  |  | 357.7   |  |  |      | 136.8   |  |  |  | 210.5   | 
|Europe                        |  |                         | 218.3   |  |      |  | 168.4   |      |  |  | 290.6   |  |  |      | 254.6   |  |  |  | 281.1   | 
|Others                        |  |                         | 13.2    |  |      |  | 12.7    |      |  |  | 21.1    |  |  |      | 24.0    |  |  |  | 27.5    | 
|Total                         |  |                         | 1,718.6 |  |      |  | 1,591.5 |      |  |  | 1,644.5 |  |  |      | 1,292.0 |  |  |  | 1,118.8 | 
|Defense and Security          |  |                         |         |  |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|North America                 |  |                         | 177.2   |  |      |  | 199.5   |      |  |  | 26.4    |  |  |      | 20.0    |  |  |  | 27.6    | 
|Latin America (except Brazil) |  |                         | 21.7    |  |      |  | 47.3    |      |  |  | 16.3    |  |  |      | 21.7    |  |  |  | 15.6    | 
|Asia Pacific                  |  |                         | 33.2    |  |      |  | 78.5    |      |  |  | 71.0    |  |  |      | 79.5    |  |  |  | 145.2   | 
|Brazil                        |  |                         | 479.3   |  |      |  | 1,004.5 |      |  |  | 848.5   |  |  |      | 648.5   |  |  |  | 446.2   | 
|Europe                        |  |                         | 84.8    |  |      |  | 100.0   |      |  |  | 166.9   |  |  |      | 178.4   |  |  |  | 175.9   | 
|Others                        |  |                         | 14.9    |  |      |  | 26.6    |      |  |  | 67.8    |  |  |      | 97.1    |  |  |  | 29.4    | 
|Total                         |  |                         | 811.1   |  |      |  | 1,456.4 |      |  |  | 1,196.9 |  |  |      | 1,045.2 |  |  |  | 839.9   | 
|Other Related Businesses      |  |                         |         |  |      |  |         |      |  |  |         |  |  |      |         |  |  |  |         | 
|North America                 |  |                         | 30.1    |  |      |  | 53.6    |      |  |  | 59.7    |  |  |      | 47.4    |  |  |  | 55.5    | 
|Latin America (except Brazil) |  |                         |        |  |      |  |        |      |  |  |        |  |  |      | 0.4     |  |  |  |        | 
|Asia Pacific                  |  |                         |        |  |      |  | 0.1     |      |  |  |        |  |  |      |        |  |  |  |        | 
|Brazil                        |  |                         | 12.3    |  |      |  | 20.0    |      |  |  | 26.9    |  |  |      | 26.6    |  |  |  | 25.5    | 
|Europe                        |  |                         | 7.3     |  |      |  | 3.9     |      |  |  |        |  |  |      |        |  |  |  |        | 
|Others                        |  |                         |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|Total                         |  |                         | 49.7    |  |      |  | 77.6    |      |  |  | 86.6    |  |  |      | 74.4    |  |  |  | 81.0    | 



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Suppliers and Components; Risk-Sharing Arrangements

We do not manufacture all of the parts and components used in the production of our aircraft. Approximately 83% of the production costs of our
aircraft consist of materials and equipment purchased from our risk-sharing partners and other major suppliers. Risk-sharing arrangements with suppliers of key components enable us to focus on our core business: design, development, manufacture and
sale of aircraft and systems for the Commercial Aviation, Executive Jets, and Defense & Security segments. Risk-sharing arrangements are those in which suppliers are responsible for the design, development and manufacture of major
components or systems of our aircraft. Our risk-sharing partners, therefore, must invest their own money in development and share the risk and success of our products with us.

In our Commercial Aviation and Executive Jets businesses, we rely on risk-sharing partners to supply vital components of our aircraft. We
select suppliers on the basis of, among other factors, technical performance and quality of their products, production capacity, prior relationship and financial condition. We have had continuing relationships with most of our major suppliers since
production of the Bandeirante aircraft began in 1975.

In addition, we have entered into purchase agreements with our major suppliers,
which cover our production. These contracts contain pricing formulas that take into consideration the various factors that affect the business of our suppliers, and help us mitigate the effects of price volatility (which in some cases can be
significant) of the materials, parts and components that are required for our operating activities. We are not obligated to purchase a minimum amount of materials annually under any of these supply contracts. Our ongoing supplier relationships
depend on cooperation, performance and the maintenance of competitive pricing. See Item 3D. Key InformationRisk FactorsRisks Relating to EmbraerWe depend on key suppliers.

ERJ 145 Regional Jet Family

Risk-sharing partners. We entered into risk-sharing arrangements with the following four suppliers in connection with the development
and production of the ERJ 145 regional jet family:



| |  |  | Aernnova Aerospace S.A., or Aernnova, a Spanish company owned by Iberdrola S.A., a European power utility, and Banco Bilbao Vizcaya, a large Spanish financial institution, supplies the wings, engine nacelles and
main landing-gear doors;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Sonaca S.A.Société Nationale de Constructions Aerospatiales, a Belgian company, supplies portions of the central and rear fuselages, the service, main and baggage doors and engine pylons;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | ENAEREmpresa Nacional de Aeronáutica, a Chilean company, supplies the vertical fin, horizontal stabilizers and elevators; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------



| |  |  | C&D Aerospace, Inc., a U.S. company, supplies the cabin and cargo compartment interiors.
| | - |  | ----------------------------------------------------------------------------------------

Our risk-sharing partners generally receive payment for supplied components within three to five months after delivery of the components to
us. The partnering relationship with these suppliers results in lower production costs and higher product quality for the ERJ 145 regional jet family. In addition, our line of executive jets benefits from the risk-sharing arrangements with Aernnova,
Sonaca and ENAER.



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Other major suppliers. We have also entered into other agreements with numerous European,
American, Canadian and Brazilian suppliers to provide key components for a number of our products, including the ERJ 145 regional jet family. These supply arrangements cover systems and components such as engines, avionics, landing gear and flight
control systems. Our major suppliers include, among other companies, Rolls-Royce Allison, Parker Hannifin Corp., or Parker, BF Goodrich Co., United Technologies Corp.  Hamilton Sundstrand Division, Honeywell, Rosemount Aerospace and Alcoa Inc.

EMBRAER 170/190 Jet Family

We are continuing to improve the EMBRAER 170/190 jet family, together with risk-sharing partners that supply key systems for the aircraft. Our
supplier arrangements for the EMBRAER 170/190 jet family differ from the ERJ 145 regional jet family in that we use fewer suppliers. In the EMBRAER 170/190 jet family, each risk-sharing partner is responsible for the development and production of
aircraft systems, such as the landing gear, the hydraulic system and the flight control system, rather than individual components, and fewer components are supplied by companies that are not risk-sharing partners. The assumption of responsibility
for systems by our risk-sharing partners lowers our capital expenditures, which thereby decreases our development risks and increases our operating efficiency by reducing the number of suppliers per product and cutting production costs. It also
shortens development and production time.

In addition, some of the risk-sharing partners for the EMBRAER 170/190 jet family have assumed
a broader role in other aspects of the program by providing sales financing and residual guarantees, rather than simply supplying us with aircraft components.

At the time E-Jets were launched, they were one of the most advanced aircraft in operation. The fly-by-wire system, the integrated avionics
and the double-bubble cross-section brought a new level of technology and passenger comfort for the segment. The family success led to 60% of the deliveries share in the 70-130 seats jet segment during 2004 to 2015. Notwithstanding, during the last
10 years we have been continually improving the family. New performance packages, maintenance improvements, external noise reduction and fuel burn reduction are examples of improvements developed.

The E-Jets E2 project is another important example of our commitment to keep our market leadership in the segment. The state of the art
technology applied on the engines, wings, and avionics make the E2 family a highly efficient tool for airlines. The E2 will bring a new level of aerodynamic efficiency, as applied on the wing with one of the highest aspect ratio of the industry and
advanced wing shape, it will also improve the systems and avionics, including fourth generation full fly-by-wire flight controls, and Pratt & Whitneys PurePowerTM Geared Turbofan high by-pass ratio engines (PW1700G on the E175-E2,
PW1900G on the E190-E2 and E195-E2). We expect that all of those improvements will result in double-digit reductions of fuel burn, emissions, noise and maintenance costs. Cockpit commonality with current generation E-Jets is a key driver in the
design of the E-Jets E2, in order to enable a smooth transition for the E-Jets pilots. Honeywells Primus Epic 2 advanced integrated avionics system with large landscape displays and advanced graphics capabilities, and Honeywells
Next Generation Flight Management System (NGFMS), already in development with current-generation E-Jets, will provide exceptional pilot situational awareness and flexibility for continuous innovation on the flight deck. E-Jets E2 has the additional
objective of increasing revenue opportunities, as the family is designed to provide better aircraft availability and to increase ancillary revenue for operators.

Known for its comfortable and roomy cabins, with no middle seats, the E-Jets passenger experience will be further enhanced in the E2
generation. The U.K. design firm Priestmangoode was contracted to develop the aircraft cabin jointly with Embraer. The interiors will establish a new benchmark in cabin design, improve the passenger experience, and deliver a more comfortable and
improved environment, tailored to passengers needs, while maximizing airlines operational efficiency.



44



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Other suppliers and partners for the E-Jets E2 have been announced: Liebherr (control systems for
flaps and slats), Moog (fly-by-wire), Rockwell Collins (horizontal stabilizer control system), UTC Aerospace Systems (wheels, brakes, APU, electrical system), Intertechnique (engine and APU fuel feed, pressure refueling, fuel transfer, fuel tank
inerting and ventilation, and fuel gauging and control), Crane Aerospace & Electronics (electronic control module for landing gear, brake control systems and proximity sensors), Triumph (fuselage segments, rudder and elevators) and Aernnova
Aerospace (vertical and horizontal stabilizers).

Executive Jets

The risk-sharing partners for the Legacy 600 and the Lineage 1000 are the same as those for our ERJ 145 jet family and EMBRAER 170/190 jet
family, respectively. The main risk-sharing partners for the Legacy 450/500 jet family are Honeywell and Rockwell Collins, and the main risk-sharing partners for the Legacy 650 include Rolls-Royce and Honeywell. The risk-sharing partners for the
Phenom 100 and Phenom 300 jets are Pratt & Whitney Canada, the supplier of the engines, Garmin, the supplier of the avionic systems, and Eaton Corporation, the supplier of hydraulic systems.

Aircraft Financing Arrangements

Commercial aircraft customers may request financing support for aircraft acquisition. This support usually includes providing assistance to
customers in obtaining financing arrangements from different sources, including ECAs, leasing companies, commercial banks and capital markets. Financing support may exceptionally include providing assurance that financing will be available for such
acquisition.

Additionally, customers may sometimes require short-term bridge financing prior to arranging long-term debt financing, as
long-term funding may not be available for them at the time of delivery. On a case-by-case basis, we have provided interim financing, above market rates, to customers who already have their financing arrangement structured or who are in the process
of negotiating such arrangements.

Government Regulation and Aircraft Certification

We are subject to regulation by regulatory aviation agencies, both in Brazil and abroad. These agencies principally regulate the type design of
aircraft, their manufacturing and operation. Besides certification in Brazil, we must obtain certification in each jurisdiction in which our aircraft is registered and operated. The certifying authority in Brazil is the Agência Nacional de
Aviação Civil (National Civil Aviation Agency), or Brazilian Aviation Authority, a special organization with the status of a regulatory agency under the Civil Aviation Secretary of the Presidency of the Federative Republic of
Brazil, which supervises and certifies aircraft, aircraft parts, manufacturers and operations. We are also subject to the regulation of aviation authorities in other countries, including the FAA in the United States and the EASA for the European
Union. Once an aircraft is certified by the Brazilian National Civil Aviation Agency, and validated by the FAA and/or the EASA, some authorities, such as those in Australia and Mexico, may opt to ratify the product certification instead of running a
full domestic validation process. Other countries, such as Canada, require compliance with their own specific national requirements before certification. Some countries simply validate and complement original certification of the Brazilian National
Civil Aviation Agency or of the FAA or the EASA, in accordance with their own rules. The Brazilian National Civil Aviation Agency has a bilateral certification agreement with several aviation authorities, including the FAA and EASA. This cooperation
among regulatory authorities leads to faster certification.

Aircraft certification is a continuous process. The Brazilian Aviation
Authority must approve any change in the design of any of our aircraft. Significant changes to aircraft design may require a separate validation/certification by other authorities as specified in their regulations and bilateral agreements. Changes
in aircraft certification requirements do not require a new certification or a new validation of a previously certified aircraft, but significant safety improvements may otherwise be required by the authorities acting through operational rules or
airworthiness directives.



45



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Our defense products must comply with the certification guidelines defined in each contract with
the customer. Unlike our civil aircraft, our defense products are not subject to regulatory obligations. Some contracts, such as those for civil aircraft modified for military purposes, require civil certification (e.g. India, SIVAM, etc.). Finally,
other contracts, such as those for LAS and KC-390, demand approval from the Military Certification Authority.

Seasonality

We have historically experienced seasonality in our results of operations and cash flow generation. This is principally due to a traditionally
higher number of deliveries in the fourth quarter, particularly in the Executive Jets segment, which is in line with overall executive jet industry seasonality. Deliveries of executive jets in the fourth quarter generally constitute at least 35% to
40% of annual deliveries in the Executive Jets segment, and we expect this trend to continue.



|4D. | Organizational Structure
|--- | ------------------------

Our operations are conducted by Embraer S.A. as the
controlling and principal operating company. We have a number of direct and indirect subsidiaries, none of which is considered significant. A complete list of our subsidiaries is filed as Exhibit 8.1 to this annual report, and a description of our
joint ventures and project subsidiaries and strategic alliances is included in the annual report in item 3 above.



|4E. | Property, Plant and Equipment
|--- | -----------------------------

For information on our property, plant and equipment, see
Notes 2.2.14 and 16 to our audited consolidated financial statements included elsewhere in this annual report.

For a discussion of our
capital expenditures relating to property, plant and equipment, see Item 4B.History and Development of the CompanyCapital Expenditures (Property, Plant and Equipment and Development).

Production

The manufacture of an
aircraft consists of three principal stages: production of primary parts, assembly of major components and final assembly. Primary parts include metal sheets and plates (produced from die-cast molds, stretch forming or various chemical treatments),
parts produced using computerized and non-computerized machines, and prefabricated parts. The primary parts are then assembled, or mated, with one another to produce the aircrafts major components, which are in turn joined to create the
aircrafts basic structure. In the final assembly stage, the aircrafts various operating systems (such as wiring and electronics) are installed into the structure and tested.

Production facilities for commercial and executive aircraft are located in São José dos Campos in the State of
São Paulo, Brazil. In our Defense & Security segment, we have production facilities located in the Gavião Peixoto plant, which is near the city of Araraquara, located in the central region of the State of São
Paulo, Brazil. For the final assembly of executive jets, Embraer also has a facility in Melbourne, Florida and in Harbin, China.

We have
the flexibility to increase or decrease production in response to increased or decreased demand.

The Gavião Peixoto facility
includes flight-testing capabilities for all Embraer aircraft and a final assembly line for our defense aircraft. This facility has been operational since November 2002. In May 2014, we inaugurated the final assembly line of the new military
transport and aerial refueling jet, the KC-390 and in February 2015, it successfully performed its first flight Embraer and it is currently conducting flight tests for KC-390.



46



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In July 2009, in line with our initiatives to improve production efficiency pursuant to the
Business Efficiency Strategy (Frente Eficiência Empresarial), we converted the final assembly for the E-Jets E1 family to a line concept in São José dos Campos, which resulted in a significant reduction in the
cycle time. In 2015 we started the prototype production for the new E-Jets E2 family of jets.

Executive jets have been produced
since 2011 in São José dos Campos, and are produced in Melbourne. The Melbourne facility is a final assembly plant with a Customer Center and an Engineering Office. In 2014, we announced an expansion plan to assemble the Legacy
450/500 in this facility, in order to improve production capacity. We also have a production facility for the Legacy 600/650 family in Harbin, China, which is our company with Harbin Aviation Industry (Group) Co., Ltd. and Hafei Aviation Industry
Co., Ltd., both subsidiaries of AVIC.

In September 2012, we opened two facilities in Évora, Portugal, one for the manufacture and
assembly of metal components and one for the manufacture and assembly of composite material components. The start-up of these facilities went as planned, and they made their first deliveries in November 2012. In 2015 Évoras production
plan included major components for the Legacy 450/500, E-Jets, E-Jets E2 and KC-390.

EZ Air Interior Limited, our joint venture with
Zodiac Aerospace for the production of interior parts for our Commercial Aviation Segment in Mexican factories, began production and shipping of parts to Brazil in 2013. It achieved full production capacity in January 2015.

In 2015, we acquired the remaining shares of EAST. EAST is an Embraer subsidiary which produces seats for commercial and executive aircraft.

We manufacture aerospace systems and components in ELEB, which is an Embraer subsidiary located in São Jose dos Campos, and its
main products are landing gear systems, hydraulics and electro-mechanical sub-assemblies, such as actuators, valves, accumulators and pylons.

We have an additional final assembly facility in Jacksonville, Florida for Defense & Security where we initiated in 2013 the final
assembly line for the A-29 Super Tucano for the U.S. Air Forces Light Air Support (LAS) Program.

Environmental Matters

We have all material permits required to operate our business in all Embraer sites around the world. The terms of these operating permits are
reviewed every year and, as of December 31, 2015, we were in compliance with our permits. In addition, our Environmental and Occupational Health and Safety Management System was established in 2001 to organize our processes, allowing us to
obtain and maintain ISO 14001 certification since 2002. ISO 14001 is an internationally recognized standard of environmental management system efficiency for businesses and organizations. Certified environmental management systems have been
progressively implemented across our manufacturing sites, with over 89 % of our employees operating under an ISO 14001.

We encourage
not only the environmental certification of our operations but also the development of a full life cycle orientation for products and services, as this remains the most cost-efficient and practical way to effectively reduce environmental impacts.
The site and product life cycle orientation of the environmental management system attempts to create economic value by reducing environmental costs and exposure at each stage of the product life, from design to operations to end of life. Integrated
Development of Environmentally Sustainable Products (DIPAS) and Design for Environment (DfE) programs aim to incorporate environmental requirements into product development throughout the various stages of production.

We seek to anticipate and address future environmental challenges as part of our commitment to reconciling environmental responsibility with
economic success.





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The implementation of further innovative and eco-efficient technologies and processes is a key
factor in ensuring our sustainability, increasing the attractiveness of our products and our overall competitiveness. We continuously pursue eco-efficiency by seeking green business opportunities, mitigating the environmental impact of
our activities and products throughout their life cycle, developing breakthrough technologies, products and services and, more generally, integrating environmental concerns into our business. We also believe that environmental requirements, such as
reduction of greenhouse gas emissions, are becoming one of the main drivers of airline fleet decisions and will influence future aircraft developments. In 2012 at the Air Transport Action Group (ATAG) Aviation and Environment summit, Embraer, Boeing
and Airbus signed a memorandum of understanding to collaborate on the development of drop-in, affordable aviation biofuels as an effort to reduce the aircraft industrys greenhouse gas emissions by 50% by 2050 based on 2005 levels.

Special focus is dedicated to the European REACH (Registration, Evaluation and Authorization of Chemicals) regulation
(EU No. 2007/1906), which came into force on June 1, 2007. REACH aims at improving the protection of human health and the environment through closer regulation of chemical use by industry; it replaces the pre-existing EU regulatory
framework on chemicals. REACH introduces a range of new obligations over a period of 11 years which are intended to reduce the risks of harm that the 30,000 most frequently used chemicals may cause. The regulation will also bring about the phased
withdrawal from use of some of the substances that are considered to be of very high concern for human health and the environment.

The
regulation requires that any company which produces, imports, uses or places substances, preparations or other items on the EU market be responsible for ensuring that the item complies with REACH. We are affected by the regulation because our
products can be exported, not only to the countries of the EU, but also to all countries in which compliance with REACH is required. Embraer has not suffered any penalties in connection with REACH.

Over the past few years, we have been substituting substances used in our production processes with those which are less harmful to the
environment and our employees. In this context, various materials have been replaced in accordance with the restrictions imposed by REACH. In addition, we are studying the feasibility of replacing more substances which are widely used in the
aviation industry but which also have usage restrictions under REACH. We also participate in working groups, such as IAEG (International Aerospace Environmental Group) and AIA (Aerospace Industries Association), with other firms in the aviation
industry to develop solutions for complying with REACH and other environmental laws, and we are working with our supply chain on several initiatives to avoid supply chain disruptions and provide support to customers, including the REACH
questionnaire on the Risk Assessment of Suppliers. In summary, we are working to fulfill our responsibilities under REACH.

In addition,
certain developments in current or proposed carbon emission reduction laws and regulations could in the future indirectly affect our business and results. In 2010, the International Civil Aviation Organization, through its Environmental Protection
Committee, began to develop carbon emission standards for airplanes. The study of these standards is being carried out concurrently with the implementation of local or regional regulations aimed at limiting carbon emissions, such as those adopted by
the European Union, with its emissions market (EU ETS  European Union Emissions Trading System). This system establishes goals for emissions reduction by aviation companies. Depending on the compensatory payments and limits imposed, as well as
on the cost of carbon equivalents, regulations of this nature may impact the growth potential of the air transportation industry as a whole, due to: (1) the internalization of carbon emission-related costs by air transportation companies, which
would reduce their profit margins and, consequently, cut down the demand for new aircraft; or (2) higher prices of air tickets, charged by air transportation companies in an attempt to pass emission-related costs along to their passengers, who
would in turn seek alternative means of transportation, reducing the demand for air travel and, as a consequence, causing aircraft sales to decline. The effects of either scenario would likely be a decrease in demand for new aircraft in the affected
markets, thereby negatively affecting our results.

For information on how climate change may affect our commercial aircraft segment, see
Item 5A. Operating and Financial Review and ProspectsOperating ResultsCurrent Conditions and Future Trends in the Commercial Airline Industry and Executive Jet MarketCommercial Aircraft.

Insurance

We maintain insurance at
levels deemed to meet all risks associated with our operations and legislation. The insurance covers potential damages to our property, inventories, working process, cargo and aircraft hulls for our own fleet. In addition, we maintain a
comprehensive aviation products liability policy, for claims arising out of our legal liability as manufacturers, repairers, suppliers or servicers. We also possess natural disaster and business interruption insurance.





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|ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS
|------- | --------------------------------------------

This discussion should be read in
conjunction with our audited consolidated financial statements and notes thereto and other financial information included elsewhere in this annual report. This annual report contains forward-looking statements that involve risks and uncertainties.
Our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including, without limitation, those set forth in Item 3D. Key InformationRisk Factors and the matters
set forth in this annual report generally.

Except as otherwise indicated, all consolidated financial information in this annual report
has been prepared in accordance with IFRS as issued by IASB and presented in U.S. dollars, while, for local purposes, our consolidated financial statements are also prepared in IFRS but are presented in reais. For certain purposes, such as
providing reports to our shareholders located in Brazil, filing financial statements with the CVM, and determining dividend payments and other distributions and tax liabilities in Brazil, we have prepared and will continue to be required to
prepare parent company financial statements in accordance with IFRS, presented in reais.



|5A. | Operating Results
|--- | -----------------

Current Conditions and Trends our Markets

The following discussion is based largely upon our current expectations about future events, and trends affecting our business, actual
results for our industry and performance could differ substantially. See IntroductionSpecial Note Regarding Forward-Looking Statements. For factors which could affect our industry in the future and our own future performance, see
Item 3D. Key InformationRisk Factors.

Commercial Aircraft

Shortly after the 2008 financial crisis, our industry returned to its long-term growth rate of approximately 5% per year, measured by
revenue passenger kilometers. Expectations for a strengthening economic upturn in the United States and Europe, together with sustained growth in emerging markets, support a positive outlook for air travel.

According to the International Air Transport Association (IATA), global air travel demand continues to trend upward, with 6.7% growth in 2015.
International air travel rose by 6.8% and domestic by 6.7% in 2015 compared to 2014, with airlines in all regions seeing growth. The demand environment for air travel continues to improve, suggesting that the growth seen thus far will continue.
Demand conditions are improving in the U.S. and Europe and trade volumes have been on increasing, especially in Asia Pacific. The industrys output level in 2015 was 1,266 commercial aircraft, representing an increase of 2.5% over 2014.

Airlines in Europe and North America experienced a solid 5.6% and 3.5% rise in the January to October 2015 period, respectively. Demand for
air travel on regional carriers remains strong in these regions. Restructuring efforts are continuing and hub efficiency is critically important to airlines that rely on connecting traffic and 70 to 130-seat jet aircraft play a key role feeding
those hubs.

Air travel growth in emerging markets continues to outpace that in developed countries due to growing regional trade volumes
and changing demographic patterns led by rapid urbanization, higher household incomes, discretionary spending and therefore a higher propensity to travel. A growing economy and stronger demand for air transport has historically led to regional
integration and generate a need to improve air services. Intra-regional air travel is mostly composed of low and mid-density markets. According to data extracted from Sabre-ADI, some 83% of city pairs have volumes of up to 300 daily passengers. The
70 to 130-seat jet aircraft allow the carriers to access a wider range of cities, not only in the highest-density markets. We believe that secondary markets will lead the demand for new air travel, and expect carriers to continue to acquire newer
and more efficient aircraft to serve low and mid-density markets and to maintain network connectivity.



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IATA projects the global commercial airline industry to generate net post-tax profits of US$33.0
billion in 2015 and US$36.3 billion, or 5.1% of revenues, in 2016, an upward revision from previous projections due to lower jet fuel prices, improvements to industry structure and an accompanying focus on improving the efficiency and the
utilization of aircraft. The performance of the commercial airline industry is closely linked to the strength of global economic development. After the post-recession 2010 peak, economic activity slowed in both 2011 and 2012. The improvement in
financial performance since 2013 is in part due to the upturn in economic growth, signaled by rising business confidence and by upturn in industrial production and world trade growth, and then at the beginning of 2015, by a shortfall of oil prices.

We project that from 2015 to 2034, world air travel demand, measured by revenue passenger kilometers, should tend to grow by an average
of 4.9% per year. China and the Middle East will lead with annual revenue passenger kilometers (RPK) growth of 7.0% and 6.8% respectively, followed by Latin America at 5.9%. Asia Pacific, the CIS (Commonwealth of Independent States) and Africa
are expected to each have growth rates of around 5%. Because Europe (3.9%) and North America (2.7%) are more mature markets, we project them to grow more slowly. By 2034, Asia Pacific and China are expected to be the largest air travel
markets in the world, accounting for a combined 38% of total global RPKs. Comparatively, Europe and North America are expected to generate 35% of world demand. However, economic downturns, fuel price increases, natural disasters and credit shortages
might impair the ability of commercial airlines, including certain of our customers, to finance aircraft acquisitions (see Item 4C. Information on the CompanyBusiness OverviewAircraft Financing Arrangements).

In North America, the main airlines strategies have been focused on cost reductions, increased productivity and consolidation aiming at
improved operational and financial efficiency. Focusing on profitability and not on capacity increases will position airlines to sustain better financial results and stability through business cycles. Regional airlines continue to provide essential
hub feeder and capacity adjustment opportunities to mainline airlines.

In Europe, we believe the revenue environment will remain under
pressure caused by a gradual Eurozone economic recovery, combined with low yields due to the highly competitive open aviation area and high regulatory costs. Regional airlines are supporting mainline airlines adjustments of capacity and
frequency of services as part of their structural cost reduction and improvement programs. Mobility is vital for the intra-European market as Europeans continue to enjoy the freedom to travel that came with air transport liberalization in 1987.
European airlines are still adapting to a more dynamic competitive environment and facing many issues such as challenges with labor, increased charges and fees (regulatory, airport and environmental), and the restructuring of businesses to exploit
emerging opportunities. In Eastern European countries, we expect more opportunities due to an improved economic environment and maturing markets.

Latin America has faced a tough economic environment. The downturn in global commodity markets remains an important drag, even as lower oil
prices and a solid U.S. recovery support activity elsewhere in the region. However, prospects for mid and long-term growth remain positive. Efforts will focus on structural reforms to restore robust, sustainable growth and improve the business
environment, with the goal of fostering more diversified, resilient, and prosperous economies. We expected that long with the economic recovery, new investments in aviation infrastructure and regional integration will shape the way air transport
will grow in the coming years. We believe that fleet optimization is key, as secondary markets are poised to lead the demand for new air travel. We expect carriers will continue to acquire new and efficient jets with up to 130 seats to serve low and
mid-density markets and to maintain network connectivity.

In the Asia Pacific region, economic prosperity, combined with robust
population growth, economic decentralization, rapid rates of urbanization and regional air service liberalization, tend to support increased air travel demand. The role of regional aviation in Asia Pacific/China is related to national integration,
providing access to smaller communities in countries like Australia, China and Indonesia. Liberalization policies in some sub-regions tend to encourage the development of intra-regional air transport, which may generate opportunities for regional
aviation. As the region becomes more liberalized and trunk routes mature, we believe airlines will be further encouraged to look to secondary markets as the next frontier of expansion. Those city pairs should require 70 to 130-seat aircraft to
sustain carrier growth.



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Middle Eastern carriers have become global players, driven by the emergence of global hubs with
high frequency flights connecting long-haul East-West passengers. Intra-Middle Eastern flights have increased significantly in recent years with the acquisition of smaller aircraft to feed international hubs and cover underserved markets.

In Africa, regional integration and growing foreign direct investment are fostering regional aviation. Challenges in infrastructure, lack of
financing and a highly regulated environment are being addressed, albeit at a slow pace. As a result of regional liberalization, some airlines are introducing new aircraft to develop their intra-regional network. Airlines on the continent have
recognized the benefits of replacing ageing fleets with new-technology aircraft. The average aircraft age has decreased by 25% in the last 15 years, from 16 to 12 years old.

We estimate a global demand for around 6,350 jets in the 70-130 seat category through 2034 (2,250 units in the 70 to 90-seat segment and 4,100
units in the 90 to 130-seat segment). We project replacement of ageing aircraft to represent 39% of new deliveries and the remaining 61% to support market growth. We project world fleet-in-service of jets with up to 130 seats to increase from 3,770
aircraft in 2014 to 6,490 by 2034. We estimate the value of all deliveries at approximately USD 300 billion at list prices.

We expect
jets in the 70 to 130-seat category to sustain hub-and-spoke efficiency, to complement narrow-body operations, to provide an optimal balance of frequency and seats, and to encourage new market development with lower-risk, incremental capacity, thus
generating significant demand for new aircraft in this segment.

Executive Aircraft

Market Overview

During the global
economic crisis which began in 2008, markets were fearful of poor performance by economies around the globe. Initially, the U.S. economy was the primary concern, followed by the economic contagion in Europe, both of which contributed to a
significant reduction in global economic growth. The resilient economic performance of the Asia Pacific countries, especially China, and certain Latin American countries, especially Brazil, helped avoid a deeper global economic crisis. Now, eight
years later, economic growth in emerging markets is slowing down significantly, while the U.S. economy is showing signs of recovery and there is positive economic news and growing investments in Europe, despite a slow economic growth prospect.

Despite the positive recent performance of demand growth drivers such as the number and wealth of high net worth individuals and the level of
corporate profits, we believe that corporations will remain reluctant to spend on travel alternatives, at least in the short-term.

This
scenario has prevented a more solid growth momentum for business jets sales. In early 2016, the General Aviation Manufacturers Association reported that the industry delivered 706 business jets during 2015 (0.1% more than 2014), equivalent to US$22
billion (0.5% more than 2014). The expectation for 2016 is that deliveries will total 770 units. Over the next 10 years, our market forecast indicates that 9,250 aircraft will be delivered, totaling US$265.0 billion in the period.

We estimate a compound annual growth rate for the executive jet industry from 2016 to 2025 of 3.0% in terms of both revenue and units
delivered.

Although the business jet market has not yet recovered from the 2008 economic crisis, our executive jet fleet in service has
experienced a compound annual growth rate of 18% since then. In 2014 and 2015, we delivered a total of 116 units and 120 units, respectively, 3% less and 3% more than 2013 and 2014, respectively. As we introduce new products in the executive jet
market, we expect the total number of annual deliveries in this segment to continue to increase in upcoming years. Additionally, the number of pre-owned aircraft for sale as well as their price levels continues to pressure new aircraft demand in
this segment.



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We expect that over the next 10 years, the regional distribution of business jet deliveries will be as follows:



| |  |  | The North American market will continue to be the largest, representing 53% and of the world markets volume and 50% of revenues. These figures are well below the 64% participation of the region in the current
world fleet and are a function of the long-term growth of markets in other regions rather than an actual reduction in the North American markets size.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The European and African markets will generate 23% of world deliveries in terms of units and 25% in terms of revenues. These figures are slightly below last years forecast, reflecting the slow recovery of
economies in the European region.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Latin America, Asia Pacific and China will together represent 24% of world deliveries in terms of units and generate 25% of the worlds total business jet market revenue.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Defense & Security

Overall we anticipate an increase in defense spending globally, with the exception of the United States, which is expected to continue its
effort to reduce military expenditures, therefore prompting its industry to search for opportunities in new markets.

In light of
continuous instability in the Middle East and the growing impact of actions of insurgent groups, military budgets in the region should also increase, in spite of depressed oil prices.

Regional conflict and tensions should also stimulate investment in defense materials on the African continent and in Europe.

We expect increased demand for proposals of customized solutions, creating opportunities for our Defense & Security portfolio and for
those of our subsidiaries, notably in the areas of critical software, communications, sensors and platforms.

The Brazilian economic
environment will be challenging for the implementation of new investment projects in the defense sector. Generally, budget restrictions may require the restructuring of the deliveries scheduled in existing contracts. We also anticipate that new
opportunities will be on a smaller scale and will require the accommodation of constraints on available resources.

Brazilian Economic Environment

The Brazilian federal government has frequently intervened in the Brazilian economy and occasionally made drastic changes in policy
and regulations. The Brazilian federal governments actions to control inflation and affect other policies and regulations have often involved, among other measures, increases in interest rates, changes in tax policies and incentives, price
controls, currency devaluations, capital controls and limits on imports. Changes in Brazils monetary, credit, tariff and other policies could adversely affect our business, as could inflation, currency and interest-rate fluctuations, social
instability and other political, economic or diplomatic developments in Brazil, as well as the Brazilian federal governments response to such developments.

Rapid changes in Brazilian political and economic conditions that have occurred and may occur in the future will require a continued
assessment of the risks associated with our activities and the adjustment of our business and operating strategy accordingly. Future developments in Brazilian federal government policies, including changes in the current policy and incentives
adopted for financing the export of Brazilian goods, or in the Brazilian economy, over which we have no control, may have a material adverse effect on our business.

The following table shows data for real GDP growth, inflation, interest rates and the U.S. dollar exchange rate for and as of the periods
indicated.



52



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|                                        |  |              |         |  |      |  |         |      |  |  |         |  |  |  |         | 
|--------------------------------------- |  | ------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------- |  |  |  | ------- | 
|                                        |  | December 31, |        
|                                        |  | 2015         |         |  | 2014 |  |         | 2013 |  |  | 2012    | 
|Real growth in gross domestic product   |  |              | (3.8)%  |  |      |  | 0.1%    |      |  |  | 2.3%    |  |  |  | 0.9%    | 
|Inflation (IGP-M)(1)                    |  |              | 10.5%   |  |      |  | 3.7%    |      |  |  | 5.5%    |  |  |  | 7.8%    | 
|Inflation (IPCA)(2)                     |  |              | 10.7%   |  |      |  | 6.4%    |      |  |  | 5.9%    |  |  |  | 5.8%    | 
|CDI rate(3)                             |  |              | 14.1%   |  |      |  | 11.6%   |      |  |  | 9.8%    |  |  |  | 6.9%    | 
|LIBOR rate(4)                           |  |              | 0.6%    |  |      |  | 0.3%    |      |  |  | 0.2%    |  |  |  | 0.3%    | 
|Depreciation of the realvs. U.S. dollar |  |              | 41.8%   |  |      |  | 9.0%    |      |  |  | 10.5%   |  |  |  | 16.7%   | 
|Period-end exchange rateUS$1.00        |  |              | R$3.905 |  |      |  | R$2.656 |      |  |  | R$2.343 |  |  |  | R$2.044 | 
|Average exchange rateUS$1.00(5)        |  |              | R$3.477 |  |      |  | R$2.361 |      |  |  | R$2.169 |  |  |  | R$1.958 | 



|Sources: | Fundação Getúlio Vargas, the Central Bank and Bloomberg
|-------- | -------------------------------------------------------

|(1) | Inflation (IGP-M) is the general market price index measured by the Fundação Getúlio Vargas.
|--- | --------------------------------------------------------------------------------------------

|(2) | Inflation (IPCA) is a board consumer price index measured by the Instituto Brasileiro de Geografia e Estatística.
|--- | -----------------------------------------------------------------------------------------------------------------

|(3) | The CDI rate is average of inter-bank overnight rates in Brazil (as of the last date of the respective period).
|--- | ---------------------------------------------------------------------------------------------------------------

|(4) | Three-month U.S. dollar LIBOR rate as of the last date of the period. The LIBOR rate is the London inter-bank offer rate.
|--- | -------------------------------------------------------------------------------------------------------------------------

|(5) | Represents the average of the exchange rates on the last day of each month during the period.
|--- | ---------------------------------------------------------------------------------------------

Inflation and exchange-rate variations have had, and may continue to have, substantial effects on our financial condition and results of
operations. Inflation and exchange-rate variations affect our monetary assets and liabilities denominated in reais. The value of such assets and liabilities as expressed in U.S. dollars declines when the real devalues against the U.S.
dollar and increases when the real appreciates. In periods of devaluation of the real, we report (a) a remeasurement loss on real-denominated monetary assets and (b) a remeasurement gain on real-denominated
monetary liabilities.

For further information on our macro-economic impacts on our financial position, see Note 28 of our audited
consolidated financial statements for the year ended December 31, 2015.

Tax Incentives

Similar to other Brazilian companies, we benefit from certain tax and other government-granted incentives, including related to our export and
research and development activities.

Tax incentives for Companies in Research and Development

Brazilian Law 11,196/05, better known as the Lei do Bem, grants tax benefits to entities involved in research and development activities for
technological innovation.

In order to take advantage of these tax benefits, a beneficiary must (i) assess its income tax according
to the real profit (lucro real) regime, (ii) record taxable profits; (iii) be current with all of its fiscal obligations (that is, be able to obtain certification showing no outstanding debts with tax authorities) and (iv) have
investments in research and development.

Technological innovation is deemed to be the development of a new product or manufacturing
procedure, as well as the addition of new features or characteristics to an existing product or manufacturing procedure which entails incremental improvements and gains in quality or productivity, therefore resulting in greater market
competitiveness.





53



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We benefit from such tax incentives with respect to the IRPJ tax (income tax) and the CSLL tax
(social contribution on net income). The deductions from our net income can vary from 60% to 80% of our expenditures related to research and development activities for technological innovation during a fiscal year.

Tax Incentives and Payroll Exemptions for Exporting Companies

This incentive, established by Brazilian Law 12,546/11, created the Special Regime for the Reintegration of Taxes of Exporting Companies
(Regime Especial de Reintegração de Valores Tributários para as Empresas Exportadoras or REINTEGRA) with the aim of stimulating and facilitating exports.

The goal of REINTEGRA is to refund, in whole or in part, the remainder of taxes from the production chain of exported goods. The exporting
entity may receive tax credits according to a percentage, which may vary from 0.1% to 3%, established by decree of the Brazilian Finance Ministry and applied to the revenue earned from the export of these goods abroad.

In order to take advantage of these tax benefits, (i) an exporting entity must manufacture the exported product in Brazil, (ii) the
product must be codified in the TIPI (listing issued by Brazilian fiscal authorities under the Tax on Manufactured Products Imposto Sobre Produtos Industrializados or IPI); and (iii) the cost of imported materials used in the exported
product may not exceed certain limits prescribed by law, expressed as a percentage of the export price.

Brazilian Law 12,546/11 also
aimed to increase production through the establishment of a payroll exemption. This payroll exemption substitutes the current employer social security contribution of 20% of INSS on payroll for an alternative tax called the Social Security
Contribution Over Gross Revenues (Contribuição Previdenciária Sobre a Receita Bruta or CPRB),) to be levied on the revenues of certain products and services, excluding revenues from exports. Payroll exemption rates may vary from
2.0% to 4.5% of gross revenues, depending on the business sector.

Republic Airways Chapter 11 Filing

In February 2016, Republic Airways Holdings, which currently operates a fleet of 230 Embraer Commercial Aviation aircraft (of which 50 are of
the ERJ145 family and 180 are E170/E175 models), filed for a Chapter 11 bankruptcy. At the date of the filing, Republic had 24 firm orders for E175 commercial aircraft in our backlog, to be delivered between 2016 and 2017. As a result, we have
provisioned a total of US$100.9 million to account for expected expenses related to obligations from financial guarantees.

Critical Accounting
Estimates

Preparation of financial statements in accordance with IFRS requires us to use estimates and assumptions that affect the
reported assets and liabilities, revenues and expenses and our disclosures. Therefore, to prepare the financial statements included in this annual report, we believe variables and assumptions derived from past experience and various other factors to
be reasonable and relevant. These estimates and assumptions are reviewed and relevant adjustments are recorded in our ordinary course of business.

The most significant accounting policies, including the variables and assumptions used in the estimates, and the sensitivity of these
assessments to the different variables and conditions are described below:

Sales and Other Operating Revenues

In the Defense & Security segment, a significant portion of revenue is derived from long-term development contracts with the Brazilian
and foreign governments accounted for using the percentage of completion method and the physical advancement methods. These contracts contain provisions for price escalation based on a mix of indices related to raw material and labor cost. From time
to time, we reassess the expected margins of construction contracts, adjusting revenue recognition based upon projected costs to completion. Were the total costs to be incurred to come in 10% below managements estimates, the amount of revenue
recognized in the year of 2015 would increase by US$207.0 million, and if the total costs were to be 10% above the estimate, the amount of revenue recognized would decrease by US$248.9 million.





54



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Financial Guarantees

Financial guarantees are granted at fair value and recognized as a reduction in sales, and subsequently recognized as sales revenue over the
period of the guarantee. On granting a financial guarantee, we evaluate the creditworthiness of the obligor and disclose on maximum exposure under the guarantee in Note 36.3  Joint liabilities co-obligation, responsibilities and commitments.
We monitor the obligors credit worthiness periodically and in the event of an official default (Chapter 11) or negotiation the exposure is recalculated based on the best estimate when and if the payments become probable and can be estimated
reliably, recognizing a provision. When an agreement is negotiated for payment of this allowance, the amounts assumed are reclassified to accounts payable. For further information, see Item 5E  Off-Balance Sheet Agreements.

Residual Value Guarantees

The
residual value guarantees granted on aircraft sales can be exercised at the end of a financing contract between a financial agent and the customer/operator of these aircraft. The guarantee are initially measured by fair value and are revised
quarterly to reflect any losses in relation to the fair value of these commitments. The residual value guarantees may be exercised if the quoted market value is lower than the future fair value guaranteed. The future fair value is estimated in
accordance with third party evaluation of the aircraft, including information from sale or leasing of similar aircraft on the secondary market. For further information, see Item 5E  Off-Balance Sheet Agreements.

Impairment

The impairment test
considers our medium and long-term strategic plan, brought to present value at the WACC rate compatible with the market and that reflects the shareholders expectations of return. In preparing or using this information, we use estimates, as
follows:



| | a) | Gross expected cash flow  the Management projected inflows and outflows based on past performance considering its business strategy and market development expectations. These projections also consider the
efficiency gains planned for the product cycle.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | Growth rate  the growth rates were reflected in the revenue flow budgeted by us, consistent with the forecasts included in industry reports.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------



| | c) | Discount rate  a WACC discount rate is used that reflects the expected return of investors at the time the calculation is made. This rate is also compared with the market to confirm its consistency.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Fair Value of Financial Instruments

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. We use our
judgment to select a variety of methods using assumptions based on market conditions at the end of each reporting period. The methods and calculations are the same as known techniques normally used by the financial market.





55



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Income Taxes

We are subject to income taxes in multiple jurisdictions. Significant judgment is required in determining the worldwide provision for income
taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. We also recognize liabilities based on estimates of whether additional taxes will be due. When the final tax outcome of these matters is
different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which the final amount is determined.

Because our tax is largely determined in Brazilian reais and our functional currency is the dollar, the income tax expense line is
highly sensitive to the effects of changes in exchange rates, particularly those due to changes in non-monetary assets.

If the real had
devalued or appreciated by 10% against the dollar in relation to the actual exchange rate at December 31, 2015, the deferred income tax expense would have been higher or lower by approximately US$ 130.2 million.

Post-employment medical benefit plan

We and certain of our subsidiaries have a post-employment medical benefit plan that provides medical care to retired employees. To identify the
future exposure of this benefit and therefore its measurement in the financial statements, we and our subsidiaries use assumptions that are usually based on statistical data, often observed internally or supplied by institutes or entities dedicated
to this type of activity.

Principal Operating Data and Components of Our Statement of Income

Operating Data

The following chart
sets forth statistical data for our deliveries of our aircraft at the end of the respective periods. Deliveries consist of aircraft that have been delivered to customers and for which the corresponding revenue has been recognized. Our backlog
consists of all firm orders that have not yet been delivered. A firm order is a contractual commitment from a customer, customarily accompanied by a down payment, for which we have reserved a place on one of our production lines. See Item
5D.Trend Information for certain information on our firm orders and options.



56



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|                                     |  |                                       |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|------------------------------------ |  | ------------------------------------- | --- |  | ---- |  | --- | ---- |  |  | ---- |  |  | ---- | --- |  |  |  | --- | 
|                                     |  | At and for the year endedDecember 31, |    
|Other Data:                          |  | 2015                                  |     |  | 2014 |  |     | 2013 |  |  | 2012 |  |  | 2011 |    
|Aircraft delivered during period:    |  |                                       |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|To the Commercial Aviation Market    |  |                                       | 101 |  |      |  | 92  |      |  |  | 90   |  |  |      | 106 |  |  |  | 105 | 
|ERJ 145                              |  |                                       |    |  |      |  |    |      |  |  |     |  |  |      |    |  |  |  | 2   | 
|EMBRAER 170                          |  |                                       | 2   |  |      |  | 1   |      |  |  | 4    |  |  |      | 1   |  |  |  | 1   | 
|EMBRAER 175                          |  |                                       | 82  |  |      |  | 62  |      |  |  | 24   |  |  |      | 20  |  |  |  | 10  | 
|EMBRAER 190                          |  |                                       | 8   |  |      |  | 19  |      |  |  | 45   |  |  |      | 62  |  |  |  | 68  | 
|EMBRAER 195                          |  |                                       | 9   |  |      |  | 10  |      |  |  | 17   |  |  |      | 23  |  |  |  | 24  | 
|To the Defense & Security Market     |  |                                       | 20  |  |      |  | 7   |      |  |  | 6    |  |  |      | 16  |  |  |  |    | 
|EMB 145 AEW&C/RS/MP(2)               |  |                                       | 1   |  |      |  |    |      |  |  |     |  |  |      | 2   |  |  |  |    | 
|EMB 312 Tucano/AL-X/ Super Tucano(1) |  |                                       | 19  |  |      |  | 7   |      |  |  | 6    |  |  |      | 14  |  |  |  |    | 
|To the Executive Jets Market         |  |                                       | 120 |  |      |  | 116 |      |  |  | 119  |  |  |      | 99  |  |  |  | 99  | 
|Legacy 600/650                       |  |                                       | 12  |  |      |  | 18  |      |  |  | 23   |  |  |      | 19  |  |  |  | 13  | 
|Legacy 450/500                       |  |                                       | 23  |  |      |  | 3   |      |  |  |      |  |  |      |     |  |  |  |     | 
|EMBRAER 145/170/190 Shuttle          |  |                                       |    |  |      |  |    |      |  |  | 2    |  |  |      | 1   |  |  |  |    | 
|Phenom 100                           |  |                                       | 12  |  |      |  | 19  |      |  |  | 30   |  |  |      | 29  |  |  |  | 41  | 
|Phenom 300                           |  |                                       | 70  |  |      |  | 73  |      |  |  | 60   |  |  |      | 48  |  |  |  | 42  | 
|Lineage 1000                         |  |                                       | 3   |  |      |  | 3   |      |  |  | 4    |  |  |      | 2   |  |  |  | 3   | 
|To the General Aviation Market       |  |                                       | 19  |  |      |  | 38  |      |  |  | 60   |  |  |      | 62  |  |  |  | 54  | 
|Light Propeller Aircraft             |  |                                       | 19  |  |      |  | 38  |      |  |  | 60   |  |  |      | 62  |  |  |  | 54  | 
|                                     |  |                                       |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|Total delivered                      |  |                                       | 260 |  |      |  | 253 |      |  |  | 275  |  |  |      | 283 |  |  |  | 258 | 
|                                     |  |                                       |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 



|(1) | Recorded for under the percentage of completion method.
|--- | -------------------------------------------------------

Revenue

We generate revenues from the sale of aircraft and spare parts as well as from providing maintenance and repair, training and other product
support services. Of total revenues in 2015, 70.0% are generated through aircraft deliveries. Revenue arising from the sale of commercial and executive aircraft is denominated in U.S. dollars. In 2015, total Defense & Security revenue
included 47.4% of revenue denominated in foreign currency, predominantly in U.S. dollars, and 52.6% denominated in Brazilian reais. In addition, we generate revenue from our Other Related Businesses, which include single-source supply of
structural parts and mechanical and hydraulic systems to other aircraft manufacturers, and general aviation propeller aircraft, such as crop dusters, which are also referred to as light aircraft.

For the sales of our commercial aircraft, we customarily receive a deposit upon signing of the purchase agreement and progress payments in the
amount of 5% of the sales price of the aircraft 18 months before scheduled delivery, another 5% twelve months before scheduled delivery and another 5% six months before scheduled delivery. For the EMBRAER 170/190 jet family, we receive an additional
5% progress payment 24 months before scheduled delivery. We typically receive the remaining amount of the sales price upon delivery of the aircraft. The deposits and the progress payments are for the most part nonrefundable in the event orders are
cancelled. Payments in advance of delivery are recorded under advances from customers as a liability on our statement of financial position and, when we deliver the aircraft, these payments are recorded against trade account receivables of such
aircraft. For sales of our executive jets, we customarily receive a deposit at the time of order, progress payments totaling 15% to 30% of the aircraft price, and the full payment of the balance is due upon delivery. We generally receive between
US$10,000 and US$200,000 for each option to purchase an executive jet. See Item 5A.Operating ResultsCritical Accounting EstimatesSales and Other Operating Revenues.

Our sales contracts with our Executive Jets segment customers include adjustments for inflation as measured by U.S. CPI, and our sales
contracts with our Commercial Aviation and Defense & Security segment customers include adjustments to the purchase price of the aircraft based on an escalation formula, which is based on a mix of indices related to raw material,
transportation equipment and labor costs. Specific to Defense & Security sales contracts with Brazilian customers, some national indices may be used to adjust the prices of the relevant contract. The deposits, progress payments and advance
payment (especially for Defense & Security projects) are nonrefundable. Once a customer decides to exercise an option, we account for it as a firm order, and we begin to receive the respective payments and recognize revenue upon delivery of
the aircraft or the contractual milestone.





57



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We recognize revenue from the sale of our defense aircraft, including the research and
development for specific programs, in accordance with the percentage of completion method. Certain contracts contain provisions for the redetermination of price based upon future economic conditions. Our defense customers continue to provide
customer advances, which are converted into revenue as we fulfill pre-determined stages of completion of the project, such as conception, development and design, and engineering, systems integration and customization. These installments are
nonrefundable for the most part.

Cost of Sales and Services

Cost of sales and services consists of the cost of the aircraft, spare parts and services rendered, comprising:



| |  |  | Raw materials.Substantially all materials costs are covered by contracts with suppliers. Prices under these contracts are generally adjusted based on an escalation formula which reflects, in part, inflation in
the United States.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Labor. These costs comprise salaries and related charges primarily in Brazilian reais.
| | - |  | --------------------------------------------------------------------------------------



| |  |  | Depreciation. Property, plant and equipment are depreciated over their useful lives, ranging from five to 48 years, on a straight-line basis. Depreciation of aircraft under operating leases is recorded in cost of
sales and services from the beginning of the lease term using the straight-line method over the estimated useful life and considering a residual value at the end of the lease term. For further information on depreciation, see Note 16 to our audited
consolidated financial statements as of and for the year ended December 31, 2015.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Amortization. Internally-generated intangible assets are amortized in accordance with the estimated sales of the series of aircraft. Intangible assets acquired from third parties are amortized on straight-line
bases over the estimated useful lives of the assets.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In accordance with the accounting standard for contingencies, we
accrue a liability for the obligations associated with product warranties at the aircraft delivery date, which is estimated based on historical experience and recorded in cost of sales and services.

We enter into transactions that represent multiple-element arrangements, such as training, technical assistance, spare parts and other
concessions. These costs are recognized when the product or service is provided to the customer.





58



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Results of Operations

The following table presents statement of income data by business segment for the periods indicated:



|                                                 |  |      |          |   |      |  |          |      |  |  |          |  
|------------------------------------------------ |  | ---- | -------- | - | ---- |  | -------- | ---- |  |  | -------- | -
|                                                 |  | 2015 |          |   | 2014 |  |          | 2013 | 
|Revenue                                          |  |      |          |   |      |  |          |      |  |  |          |  
|Commercial aviation                              |  |      | 3,348.7  |   |      |  | 3,163.3  |      |  |  | 3,307.0  |  
|Executive jets                                   |  |      | 1,718.6  |   |      |  | 1,591.5  |      |  |  | 1,644.5  |  
|Defense and security                             |  |      | 811.1    |   |      |  | 1,456.4  |      |  |  | 1,196.9  |  
|Other related businesses                         |  |      | 49.7     |   |      |  | 77.6     |      |  |  | 86.6     |  
|                                                 |  |      |          |   |      |  |          |      |  |  |          |  
|Total                                            |  |      | 5,928.1  |   |      |  | 6,288.8  |      |  |  | 6,235.0  |  
|Cost of sales and services                       |  |      |          |   |      |  |          |      |  |  |          |  
|Commercial aviation                              |  |      | (2,565.7 | ) |      |  | (2,542.2 | )    |  |  | (2,532.6 | )
|Executive jets                                   |  |      | (1,440.3 | ) |      |  | (1,299.6 | )    |  |  | (1,284.7 | )
|Defense and security                             |  |      | (785.4   | ) |      |  | (1,158.9 | )    |  |  | (951.2   | )
|Other related businesses                         |  |      | (25.4    | ) |      |  | (37.6    | )    |  |  | (50.4    | )
|                                                 |  |      |          |   |      |  |          |      |  |  |          |  
|Total                                            |  |      | (4,816.8 | ) |      |  | (5,038.3 | )    |  |  | (4,818.9 | )
|Gross profit                                     |  |      |          |   |      |  |          |      |  |  |          |  
|Commercial aviation                              |  |      | 783.0    |   |      |  | 621.1    |      |  |  | 774.4    |  
|Executive jets                                   |  |      | 278.3    |   |      |  | 291.9    |      |  |  | 359.8    |  
|Defense and security                             |  |      | 25.7     |   |      |  | 297.5    |      |  |  | 245.7    |  
|Other related businesses                         |  |      | 24.3     |   |      |  | 40.0     |      |  |  | 36.2     |  
|                                                 |  |      |          |   |      |  |          |      |  |  |          |  
|Total                                            |  |      | 1,111.3  |   |      |  | 1,250.5  |      |  |  | 1,416.1  |  
|Operating expenses                               |  |      |          |   |      |  |          |      |  |  |          |  
|Commercial aviation                              |  |      | (434.8   | ) |      |  | (321.2   | )    |  |  | (272.3   | )
|Executive jets                                   |  |      | (220.2   | ) |      |  | (229.6   | )    |  |  | (262.8   | )
|Defense and security                             |  |      | (119.1   | ) |      |  | (148.0   | )    |  |  | (154.1   | )
|Other related businesses                         |  |      | (5.7     | ) |      |  | (8.4     | )    |  |  | (13.5    | )
|Total                                            |  |      | (779.8   | ) |      |  | (707.2   | )    |  |  | (702.7   | )
|                                                 |  |      |          |   |      |  |          |      |  |  |          |  
|Operating profit before finance income (expense) |  |      | 331.5    |   |      |  | 543.3    |      |  |  | 713.4    |  

The following table sets forth statement of income information, and such information as a percentage of our
revenue, for the periods indicated:



|                                                   |  |                                      |          |   |      |  |       |      |  |  |          |   |  |  |       |   |  |  |          |   |  |  |       |  
|-------------------------------------------------- |  | ------------------------------------ | -------- | - | ---- |  | ----- | ---- |  |  | -------- | - |  |  | ----- | - |  |  | -------- | - |  |  | ----- | -
|Consolidated Statements of Income                  |  | 2015                                 |          |   | 2014 |  |       | 2013 | 
|                                                   |  | (in US$ million, except percentages) |         
|Revenue                                            |  |                                      | 5,928.1  |   |      |  | 100.0 | %    |  |  | 6,288.8  |   |  |  | 100.0 | % |  |  | 6,235.0  |   |  |  | 100.0 | %
|Cost of sales and services                         |  |                                      | (4,816.8 | ) |      |  | 81.3  |      |  |  | (5,038.3 | ) |  |  | 80.1  |   |  |  | (4,818.9 | ) |  |  | 77.3  |  
|Gross profit                                       |  |                                      | 1,111.3  |   |      |  | 18.7  |      |  |  | 1,250.5  |   |  |  | 19.9  |   |  |  | 1,416.1  |   |  |  | 22.7  |  
|Operating income (expense)                         |  |                                      | (779.8   | ) |      |  | 13.2  |      |  |  | (707.2   | ) |  |  | 11.2  |   |  |  | (702.7   | ) |  |  | 11.3  |  
|Administrative                                     |  |                                      | (182.0   | ) |      |  | 3.1   |      |  |  | (207.5   | ) |  |  | 3.3   |   |  |  | (210.5   | ) |  |  | 3.4   |  
|Selling                                            |  |                                      | (361.6   | ) |      |  | 6.1   |      |  |  | (419.9   | ) |  |  | 6.7   |   |  |  | (454.4   | ) |  |  | 7.3   |  
|Research                                           |  |                                      | (41.7    | ) |      |  | 0.7   |      |  |  | (47.1    | ) |  |  | 0.7   |   |  |  | (74.7    | ) |  |  | 1.2   |  
|Other operating income (expense), net              |  |                                      | (194.2   | ) |      |  | 3.3   |      |  |  | (32.6    | ) |  |  | 0.5   |   |  |  | 36.9     |   |  |  | 0.6   |  
|Equity in losses of associates                     |  |                                      | (0.3     | ) |      |  | 0.0   |      |  |  | (0.1     | ) |  |  | 0.0   |   |  |  |         |   |  |  | 0.0   |  
|                                                   |  |                                      |          |   |      |  |       |      |  |  |          |   |  |  |       |   |  |  |          |   |  |  |       |  
|Operating profit before financial income (expense) |  |                                      | 331.5    |   |      |  | 5.6   |      |  |  | 543.3    |   |  |  | 8.6   |   |  |  | 713.4    |   |  |  | 11.4  |  
|Financial expenses, net                            |  |                                      | (22.9    | ) |      |  | 0.4   |      |  |  | (24.5    | ) |  |  | 0.4   |   |  |  | (96.4    | ) |  |  | 1.5   |  
|Foreign exchange gain (loss), net                  |  |                                      | 27.6     |   |      |  | 0.5   |      |  |  | (14.9    | ) |  |  | 0.2   |   |  |  | (14.6    | ) |  |  | 0.2   |  
|                                                   |  |                                      |          |   |      |  |       |      |  |  |          |   |  |  |       |   |  |  |          |   |  |  |       |  
|Profit before taxes on income                      |  |                                      | 336.2    |   |      |  | 5.7   |      |  |  | 503.9    |   |  |  | 8.0   |   |  |  | 602.4    |   |  |  | 9.7   |  
|Income taxes expense (benefit)                     |  |                                      | (255.4   | ) |      |  | 4.3   |      |  |  | (156.2   | ) |  |  | 2.5   |   |  |  | (256.4   | ) |  |  | 4.1   |  
|                                                   |  |                                      |          |   |      |  |       |      |  |  |          |   |  |  |       |   |  |  |          |   |  |  |       |  
|Net income                                         |  |                                      | 80.8     |   |      |  | 1.4   |      |  |  | 347.7    |   |  |  | 5.5   |   |  |  | 346.0    |   |  |  | 5.5   |  
|                                                   |  |                                      |          |   |      |  |       |      |  |  |          |   |  |  |       |   |  |  |          |   |  |  |       |  
|Attributable to:                                   |  |                                      |          |   |      |  |       |      |  |  |          |   |  |  |       |   |  |  |          |   |  |  |       |  
|Owners of Embraer                                  |  |                                      | 69.2     |   |      |  | 1.2   |      |  |  | 334.7    |   |  |  | 5.3   |   |  |  | 342.0    |   |  |  | 5.5   |  
|Non-Controlling Interest                           |  |                                      | 11.6     |   |      |  | 0.2   |      |  |  | 13.0     |   |  |  | 0.2   |   |  |  | 4.0      |   |  |  | 0.1   |  





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2015 Compared with 2014

Revenue

Revenue decreased 5.7% to
US$5,928.1 million in 2015, from US$6,288.8 million in 2014. Revenue in the Commercial Aviation segment increased 5.9% to US$3,348.7, from US$3,163.3 million in 2014. Executive Jets revenue increased 8.0% to US$1,718.6 million in 2015, from
US$1,591.5 million in 2014. Defense & Security revenue declined 44.3% to US$811.1 million in 2015, from US$1,456.4 million in 2014. Other Related Businesses segment revenue declined 36.0% to US$49.7 million in 2015, from US$77.6 million in
2014.

Commercial Aviation revenues increased in 2015, primarily driven by a 9.8% increase in deliveries from 92 in 2014 to 101 in 2015.
The segments revenues increased at a lower rate than deliveries during the year due to a higher proportion of smaller E170 and E175 jets delivered relative to E190 and E195 models. In 2015, 83.2% of our deliveries in the Commercial Aviation
segment were E170 and E175 models, compared to 68.5% in 2014.

The increase of 8.0% in Executive Jets segment revenues in 2015 was
principally driven by an increase of 3.4% in the number of executive jets delivered during the year, as compared to 2014. During 2015, we delivered 120 executive jets (82 light jets and 38 large jets) compared to deliveries of 116 executive jets (92
light jets and 24 large jets) in 2014. In addition, we had a more favorable mix of deliveries during the year, with large jets comprising 31.7% of total deliveries in 2015, compared to 20.7% of deliveries in 2014. The growth in large jet deliveries
in 2015 was a result of the first full year of deliveries of our Legacy 500 mid-size jet and the entry into service in the fourth quarter of 2015 of our newest Legacy 450 mid-light jet.

Defense & Security segment revenues are accounted for under the percentage-of-completion method, and we continued to execute our
contracts with the Brazilian federal government, including the KC-390 development program, the Integrated Border Monitoring System (SISFRON) and the Geostationary Defense and Communications Satellite (SGDC) program. In addition, we continued to
deliver Super Tucano planes to the United States Air Force (USAF) under the Light Air Support (LAS) program, as well as deliver to a number of other militaries around the world. During 2015, Defense & Security segment revenues declined
44.3% to US$811.1 million, in response to the impact of a weaker Brazilian real on translation of part of the segments revenues denominated in reaisto U.S. dollars, cost base revisions on some contracts as a result of the
devaluation of the real versus the U.S. dollar, and contract adjustments reducing the pace of execution on some contracts.

Cost of Sales and
Services

Cost of sales and services decreased 4.4% to US$4,816.8 million in 2015, from US$5,038.3 million in 2014. The decline in cost
of sales was lower than the 5.7% decline in revenues in 2015, thus driving an increase in cost of sales and services as a percentage of revenue, to 81.3% in 2015 compared to 80.1% in 2014. This increase in cost of sales and services as a percentage
of revenue is largely due to cost base revisions on contracts in the Defense & Security segment related to the devaluation of the Brazilian realversus the U.S. dollar, combined with lower profitability on sales of jets in the
Executive Jets segment and inflation in our direct labor costs. These impacts were partially offset by ongoing efforts to improve productivity and efficiency, as well as the appreciation of the dollar against the real positively affecting the
Commercial Aviation and Executive Jets businesses.

Cost of sales and services in the Commercial Aviation segment increased 0.9% to
US$2,565.7 million in 2015, from US$2,542.2 million in 2014. The increase in cost of sales and services was lower than the 5.9% increase in revenues for the year principally due to a combination of a higher number of deliveries, the devaluation of
the Brazilian realversus the U.S. dollar and its impact on Brazilian-based direct labor and production efficiency gains. Gross margin in the Commercial Aviation segment increased from 19.6% in 2014 to 23.4% in 2015.



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Cost of sales and services in the Executive Jets segment increased 10.8% to US$1,440.3 million in
2015 from US$1,299.6 million in 2014. Cost of sales and services increased more than revenues in the segment during 2015, largely due to lower profitability on sales of executive jets as compared to 2014. This was partially offset by a higher
proportion of large jet deliveries. Gross margin in the Executive Jets segment declined from 18.3% in 2014 to 16.2% in 2015.

Cost of
sales and services in the Defense & Security segment declined 32.2% in 2015 to US$785.4 million from US$1,158.9 million in 2014. The decrease in cost of sales and services was lower than the 44.3% decline in revenues for the segment,
reflecting cost base revisions on percentage-of-completion contracts related to the depreciation of the Brazilian real versus the U.S. dollar. Gross margin in the Defense & Security segment fell from 20.4% in 2014 to 3.2% in 2015.

Cost of sales and services in Other Related Businesses decreased 32.4% to US$25.4 million in 2015, from US$37.6 million in 2014, while
revenues for this segment decreased 36.0% in 2015.

Gross Profit

As a result of the aforementioned factors, our gross profit decreased 11.1%, to US$1,111.3 million in 2015 from US$1,250.5 million in 2014. Our
gross margin decreased from 19.9% in 2014 to 18.7% in 2015.

Operating Income (Expense)

As further discussed below, operating expense increased 10.3% to US$779.8 million in 2015, from US$707.2 million in 2014. Operating expense as
a percentage of revenues increased to 13.2% in 2015 compared to 11.2% in 2014.

Administrative. Administrative expenses declined
12.3% to US$182.0 million in 2015, compared to US$207.5 million in 2014, as a result of ongoing efficiency initiatives and the appreciation of the dollar versus the real.

Selling. Selling expenses decreased 13.9% to US$361.6 million in 2015, from US$419.9 million in 2014. The decline in selling expenses
is largely explained by the appreciation of the dollar versus the real, though cost reductions also led to a portion of the decline in expenses.

Research.Research expenses fell 11.5% to US$41.7 million in 2015, from US$47.1 million in 2014. The reduction in research expenses is
principally due to the appreciation of the dollar against the real. Research expenses declined in 2015 across the majority of our business segments.

Other operating (expense) income, net. Other operating (expense) income, net was an expense of US$194.2 million in 2015, compared to
expense of US$32.6 million in 2014. The increase in other operating expenses is largely related to provisions booked in the fourth quarter of 2015 regarding financial guarantee obligations with Republic Airways Holdings (Republic), which filed for
Chapter 11 bankruptcy protection. Other operating expenses also included losses on the impairment of used aircraft, due to lower residual values of our old family of ERJ 135/140/145 aircraft, performed by third party appraisers.

As a result of the Republic Chapter 11 filing and related exposures from financial guarantee obligations, our 2015 results included a total
provision of US$100.9 million in connection with these obligations. These obligations were related to ERJ145 family jets in Republics fleet, and the provision amount was accounted for under Other operating income (expense), net. Actual
payments and cash disbursements for these provisioned obligations are expected to occur over the course of the coming years.

Equity in
loss of associates. Equity in loss of associates changed from a loss of US$0.1 million in 2014 to a loss of US$0.3 million in 2015.



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Operating Profit(Loss) Before Financial Income (Expense)

As a result of the aforementioned factors, our consolidated operating profit decreased 39.0% to US$331.5 million in 2015, from US$543.3 million
in 2014. Our operating margin decreased to 5.6% in 2015 from 8.6% in 2014.

Operating profit (loss) by segment for 2015 for the Commercial
Aviation, Executive Jets, Defense & Security and Other Related Businesses segments was US$348.1 million, US$58.1 million, (US$93.4) million and US$18.7 million, respectively. In 2014, the operating profit for these segments was US$299.9
million, US$62.3 million, US$149.5 million, and US$31.6 million, respectively. See Note 38 to our audited consolidated financial statements for operating profit by segment.

Financial income (expense), net

Financial expense, net decreased slightly from US$24.5 million in 2014 to US$22.9 million in 2015, largely driven by an increase of US$
9.4 million in interest income on receivables, an increase of US$ 1 million in interest income on cash and cash equivalents and financial investments, and a reduction of US$ 39.7 million in interest expense on taxes, social charges,
and contributions. This was partially offset by a US$ 31.6 million increase in financial expenses resulting from interest on loans and financing, due to higher average debt balances in 2015 as compared to 2014.

Foreign exchange gain (loss), net

Foreign exchange gain (loss), net changed to a gain of US$27.6 million in 2015 from a loss of US$14.9 million in 2014, reflecting net foreign
exchange rate changes on monetary assets and liabilities denominated in other currencies which are translated into our functional currency, the U.S. dollar.

Profit Before Taxes on Income

As a
result of the aforementioned factors, profit before taxes on income decreased 33.3% to US$336.2 million in 2015 from US$503.9 million in 2014.

Income
tax benefit (expense)

Income taxes represented an expense of US$255.4 million in 2015, compared to an expense of US$156.2 million in
2014. Income taxes increased despite lower profit before taxes on income in 2015 due principally to higher deferred income taxes and social contribution as compared to 2014. Higher deferred income taxes are explained by the impact of changes in the
real to dollar exchange rate over non-monetary assets in our balance sheet (primarily Inventory, Intangibles, and PP&E). In 2015, the difference between tax basis (Real) and functional currency measurement basis (US dollar) was (US$
202.4) million.

The average effective rate of current income tax and social contribution for the year ended December 31, 2015 was
35.5% as compared to 15.3% at December 31, 2014. Our effective tax rate, including deferred tax, increased to 76.0% in 2015 as compared to 31.0% in 2014.

Net Income

As a consequence of the
aforementioned factors, our consolidated net income after taxes decreased 79.3% to US$69.2 million in 2015 (excluding Non-Controlling Interest), from US$334.7 million in 2014. As a percent of revenue, net income after taxes declined to 1.2% in 2015
compared to 5.3% in 2013.



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2014 Compared with 2013

Revenue

Revenue increased 0.9% to
US$6,288.8 million in 2014, from US$6,235.0 million in 2013. Revenue in the Commercial Aviation segment decreased 4.4% to US$3,163.3 million in 2014, from US$3,307.0 million in 2013. Executive Jets revenues declined 3.2% to US$1,591.5 million in
2014, from US$1,644.5 million in 2013. Defense & Security revenues increased by 21.7% to US$1,456.4 million in 2014, from US$1,196.9 million in 2013. Other Related Businesses segment revenues decreased 10.4% to US$77.6 million in 2014, from
US$86.6 million in 2013.

Commercial Aviation revenues decreased in 2014, despite deliveries increasing by 2.2% to 92 in 2014, from 90 in
2013. The decline in revenue was principally driven by a less favorable product mix in the year, as a result of a higher proportion of smaller E170 and E175 jets delivered relative to E190 and E195 models. In 2014, 68.5% of our deliveries in the
Commercial Aviation segment were E170 and E175 models, compared to 31.1% in 2013.

The decrease in Executive Jets segment revenues in 2014
was largely driven by a decrease in the number of executive jets delivered during the year, as compared to 2013. During 2014, we delivered 116 executive jets (92 light jets and 24 large jets) compared to deliveries of 119 executive jets (90 light
jets and 29 large jets) in 2013, a decrease of 2.5%. In addition, we had a less positive mix of large jet deliveries in the year (20.7% of total deliveries in 2014, compared to 24.4% of total deliveries in 2013), which also impacted revenues in the
segment.

Defense & Security segment revenues are accounted for under the percentage-of-completion method, and we continued to
execute under our contracts with the Brazilian federal government, specifically the KC-390 development program as well as the Integrated Border Monitoring System (SISFRON) and the Geostationary Defense and Communications Satellite (SGDC) program, as
well as the Light Air Support (LAS) program with the United States Air Force (USAF). In addition, deliveries of the Super Tucano to militaries around the world and ongoing modernization programs with the Brazilian federal government continued apace,
helping to drive revenue growth of 21.7% to US$1,456.4 million, compared to US$1,196.9 million in 2013.

Cost of Sales and Services

Cost of sales and services increased 4.6% to US$5,038.3 million in 2014, from US$4,818.9 million in 2013. The 4.6% increase in cost of sales
was higher than the 0.9% growth in revenues in 2014, thus driving an increase in cost of sales and services as a percentage of revenue, to 80.1% in 2014 compared to 77.3% in 2013. This increase in cost of sales and services as a percentage of
revenue is largely due to a less favorable mix of deliveries in both the Commercial Aviation and Executive Jets segments, coupled with inflation in direct labor costs, partially offset by ongoing efforts to improve productivity and efficiency, the
appreciation of the dollar against the real, and stimulus packages implemented in Brazil.

Cost of sales and services in the
Commercial Aviation segment increased 0.4%, to US$2,542.2 million in 2014, from US$2,532.6 million in 2013. The increase in cost of sales and services compared to the decrease in revenues for the year of 4.3% due to a less favorable product and
services mix, as smaller E-Jet aircraft model deliveries as a proportion of total deliveries was higher in 2014 compared to 2013. Gross margin in the Commercial Aviation segment declined from 23.4% in 2013 to 19.6% in 2014.

Cost of sales and services in the Executive Jets segment increased 1.2% to US$1,299.6 million in 2014 from US$1,284.7 million in 2013. Cost of
sales and services increased while revenues declined 3.2% in this segment in 2014 due to the decline in total deliveries during the year as well as a less favorable mix, as light jets made up 79.3% of total deliveries in 2014 compared to 75.6% in
2013. Gross margin in the Executive Jets segment declined from 21.9% in 2013 to 18.3% in 2014.

Cost of sales and services in the
Defense & Security segment increased by 21.8% to US$1,158.9 million in 2014, from US$951.2 million in 2013. The increase in cost of sales and services was in line with the 21.7% increase in revenues in 2014. Gross margin in the
Defense & Security segment was 20.4% in 2014 and was 20.5% in 2013.

Cost of sales and services in Other Related Businesses
decreased 25.4% to US$37.6 million in 2014, from US$50.4 million in 2013, while revenues for this segment decreased 10.4% in 2014.



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Gross Profit

As a result of the aforementioned factors, our gross profit decreased 11.7%, to US$1,250.5 million in 2014 from US$1,416.1 million in 2013. Our
gross margin decreased from 22.7% in 2013 to 19.9% in 2014.

Operating Income (Expense)

As further discussed below, operating expense increased 0.7%, to US$707.2 million in 2014, from US$702.7 million in 2013. Operating expense as
a percentage of revenues remained stable at 11.3% in 2014 when compared with 2013.

Administrative. Administrative expenses
decreased 1.4%, to US$207.5 million in 2014, from US$210.5 million in 2013, as a result of ongoing efficiency initiatives combined with the appreciation of the dollar against the real, as well as the stimulus packages implemented in Brazil.

Selling. Selling expenses decreased 7.6% to US$419.9 million in 2014, compared to US$454.4 million in 2013. The decline in selling
expenses is due to expense reductions in the Commercial Aviation and Executive Jets segments, government fiscal benefits, and the appreciation of the dollar against the real.

Research.Research expenses declined 36.9% to US$47.1 million in 2014, from US$74.7 million in 2013. The decrease in this expense is
primarily explained by the launch of the E2 second generation E-Jets program, in which program costs are now capitalized to intangible assets instead of recognized as research expenses, following approval by our Board of Directors of the economic
viability of the program.

Other operating (expense) income, net. Other operating (expense) income, net changed from income
of US$36.9 million in 2013 to expense of US$32.6 million in 2014, mainly due to income in 2013 related to non-recurring factors resulting largely from reversals of provisions associated with the bankruptcy process of AMR Corporation that were
originally accounted for in 2011, and reversed following the more favorable final outcome of the AMR bankruptcy process.

Equity in
loss of associates. Equity in loss of associates changed from zero in 2013 to a loss of US$0.1 million in 2014.

Operating Profit Before Financial
Income (Expense)

As a result of the aforementioned factors, our consolidated operating profit decreased 23.8% to US$543.3 million in
2014, from US$713.4 million in 2013. Our operating margin decreased to 8.6% in 2014 from 11.4% in 2013.

As mentioned above regarding cost
of sales and services and operating income (expense), the operating profit by segment for 2014 for the Commercial Aviation, Executive Jets, Defense & Security and Other Related Businesses segments was US$299.9 million, US$62.3 million,
US$149.5 million and US$31.6 million, respectively. In 2013, the operating profit for these segments was US$502.0 million, US$97.0 million, US$91.6 million, and US$22.7 million, respectively. See Note 38 to our audited consolidated financial
statements for operating profit by segment.

Financial income (expense), net

Financial expense, net decreased from US$96.4 million in 2013 to US$24.5 million in 2014, due to greater financial income generated coupled
with lower expenses related to outstanding residual value guarantees, principally those related to the favorable resolution of the AMR bankruptcy process in 2013.



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Foreign exchange gain (loss), net

Foreign exchange gain (loss), net changed to a loss of US$14.9 million in 2014 from a loss of US$14.6 million in 2013, reflecting net foreign
exchange rate changes on monetary assets and liabilities denominated in other currencies which are translated into our functional currency, the U.S. dollar.

Profit Before Taxes on Income

As a
result of the aforementioned factors, profit before taxes on income decreased 16.4% to US$503.9 million in 2014 from US$602.4 million in 2013.

Income
tax benefit (expense)

Income taxes represented an expense of US$156.2 million in 2014, compared to an expense of US$256.4 million in
2013. Income taxes declined principally due to lower profit before taxes on income in 2014 as compared to 2013.

Our effective tax rate
decreased to 31.0% in 2014 as compared to 42.6% in 2013 due to lower deferred income taxes and social contribution in 2014 as compared to 2013, due to a decline in the impact of changes in the real to dollar exchange rate over non-monetary
assets (primarily Inventory, Intangibles and PP&E).

Net Income

As a consequence of the aforementioned factors, our consolidated net income after taxes increased 0.5% to US$347.7 million in 2014, from
US$346.0 million in 2013. As a percent of revenue, net income after taxes remained the same at 5.5% in 2014 compared to 2013.

Accounting
Pronouncements Not Yet Adopted

For a description of recently issued accounting pronouncements, see Note 4 to our consolidated
financial statements contained in Item 18. Financial Statements. We prepared our consolidated financial statements as of and for the year ended December 31, 2015 in accordance with IFRS, as issued by the IASB.



|5B. | Liquidity and Capital Resources
|--- | -------------------------------

Overview

Our liquidity needs arise principally from research, capital expenditures, principal and interest payments on our debt, working capital
requirements and distributions to shareholders. We generally rely on funds provided by operations, borrowings under our credit arrangements, cash contributions from risk-sharing partners, advance payments from customers and, to a lesser extent,
issuance of debt and equity securities in the capital markets in order to meet these needs. For further information, see Item 4C. Information on the CompanyBusiness OverviewSuppliers and Components; Risk-Sharing Arrangements
and Item 4C. Information on the CompanyBusiness OverviewCommercial Aviation BusinessProduction, New Orders and Options and Credit Facilities and Lines of Credit.

As of the date of this annual report, we believe that our traditional sources of funds are sufficient to meet our foreseeable working capital
requirements, including to (1) continue to improve the EMBRAER 170/190 jet family, the Phenom 100, the Phenom 300, the Lineage 1000 executive jets, and Legacy 450/500 executive jets, (2) further develop the E2 jet family, (3) make
other planned capital expenditures and (4) pay dividends and interest on shareholders equity. At this point, our access to liquidity sources has not been materially impacted by the current credit environment, and we do not expect that
such access will be materially impacted in the near future. However, there can be no assurance that our traditional sources of funds, or that the cost or availability of our credit facilities or future borrowing sources, will not be materially
impacted by the ongoing market disruptions.



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Our customers may reschedule deliveries, fail to exercise options or cancel firm orders as a
result of potential economic downturns or financial volatility in the commercial airline industry. In addition, our risk-sharing partners cash contributions are refundable under certain limited circumstances and we may need to find replacement
sources of capital.

Net Cash Generated by Operating Activities and Working Capital

2015

In 2015, net
cash generated by operating activities was US$862.5 million, compared to net cash generated by operating activities of US$482.3 million in 2014. The increase in cash flow from operating activities in 2015 is primarily a result of a decrease in
inventories and increases in trade accounts payable, advances from customers, and unearned income.

We had working capital of US$762.5
million at December 31, 2015 and US$923.9 million at December 31, 2014. Our working capital decreased in 2015 primarily as a result of the aforementioned factors described in the explanation for the variation in cash flow from operating
activities above.

2014

In 2014, net cash generated by operating activities was US$482.3 million, compared to net cash generated by operating activities of US$564.6
million in 2013. The decrease in the inflow of cash generated by operating activities in 2014 is primarily a result of an increase in working capital driven by increases in trade accounts receivable and Inventories as well as a decrease in Advances
from customers.

We had working capital of US$923.9 million at December 31, 2014 and US$330.8 million at December 31, 2013. Our
working capital increased in 2014 primarily as a result of the aforementioned impacts on cash generated by operating activities. During 2014, delays in payment cycles by some customers negatively affected our cash position and working capital by
increasing trade accounts receivables.

2013

In 2013, net cash generated by operating activities was US$564.6 million, compared to net cash generated by operating activities of US$693.0
million in 2012. The decrease in the inflow of cash generated by operating activities in 2013 is primarily a result of financial investments we made, which are short-term investments with maturity greater than three months that we expect to use in
our regular operations, and the reversal of financial guarantees, which were significantly higher in 2013 compared to 2012.

We had
working capital of US$330.8 million at December 31, 2013 and US$531.1 million at December 31, 2012. Our working capital decreased in 2013 primarily as a result of increases in trade accounts payable and taxes and payroll charges payable,
somewhat offset by an increase in inventories.

Net Cash Used in Investing Activities

2015

In 2015, net
cash used in investing activities was US$1,417.4 million, compared to net cash used in investing activities of US$671.5 million in 2014.

Net cash used in investing activities in 2015 increased primarily due to higher additions to property, plant and equipment as well as higher
additions to intangibles as compared to 2014. The increased spending on property, plant and equipment and intangibles during 2015 related in large part to the E-Jets E-2 development program as well as certain capacity expansion projects. In
addition, in 2015 we invested US$702.8 million in long-term bonds and securities following the June 2015 issuance of US$1,000.0 million in principal value of bonds with maturity in 2025. These cash outflows for investment activities were partially
offset by US$51.6 million in proceeds from sale of property, plant and equipment, consisting largely of monetization of used aircraft in sale transactions during 2015.



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2014

In 2014, net cash used in investing activities was US$671.4 million, compared to net cash used in investing activities of US$764.0 million in
2013.

Net cash used in investing activities in 2014 decreased as a result of of lower additions to property, plant and equipment when
compared to 2013, partially offset by higher additions to intangibles in 2014 as compared to 2013. Also, in 2014 we had no acquisitions of non-controlling interests, while in 2013 we spent US$17.3 million in the acquisition of all the
non-controlling interests in our subsidiary Atech Negócios e Tecnologia S.A. in Brazil. The higher spending on additions to intangibles was largely driven by higher development spending on our E-2 commercial jet program as well as the
continuation of our Legacy 500 and Legacy 450 executive jet programs.

2013

In 2013, net cash used in investing activities was US$764.0 million, compared to net cash used in investing activities of US$617.3 million in
2012.

Net cash used in investing activities in 2013 increased as a result of higher additions to intangibles and property, plant and
equipment when compared to 2012. We also spent US$17.3 million in the acquisition of all the non-controlling interests in our subsidiary Atech Negócios em Tecnologia S.A. in Brazil and in 2012 we spent US$17.4 million in the acquisition of a
non-controlling interest in our subsidiary Airholding SGPS S.A. in Portugal.

Net Cash Generated by Financing Activities and Total Debt

2015

In 2015, net
cash generated by financing activities was US$1,224.0 million, compared to net cash generated by financing activities of US$333.3 million in 2014. During 2015, we raised new financing proceeds of US$1.696.9 million compared to new borrowing of
US$798.6 million in 2014. The increase in borrowing during 2015 was largely due to the aforementioned bond issuance generating proceeds of US$996.8 million. Additionally, we repaid US$419.2 million of borrowings during 2015 as compared to repayment
of US$386.1 million in 2014. In 2015 we distributed US$60.9 million in interest on shareholders equity or dividends compared to US$99.3 million in 2014. We did not spend any amounts in connection with share repurchase programs during 2015.

On December 31, 2015, we had total debt of US$3,530.5 million under our financing arrangements described below, 93.8% of which was
long-term debt and 6.2% of which consisted of short-term debt. In comparison, we had total debt of US$2,508.1 million on December 31, 2014, consisting of 96.4% of long-term debt and 3.6% of which consisted of short-term debt.

2014

In 2014, net
cash generated by financing activities was US$333.3 million, compared to net cash generated by financing activities of US$192.5 million in 2013. During 2014, we raised new financing of US$798.6 million compared to new borrowing of US$890.8 million
in 2013. Furthermore, we also repaid US$386.1 million of borrowing during 2014 as compared to repayment of US$650.2 million during 2013. In 2014 we distributed US$99.3 million in interest on shareholders equity or dividends compared to US$71.4
million in 2013. We did not spend any amounts in connection with share repurchase programs during 2014.

On December 31, 2014, we had
total debt of US$2,508.1 million under our financing arrangements described below, 96.4% of which was long-term debt and 3.6% of which consisted of short-term debt. In comparison, we had total debt of US$2,194.3 million on December 31,
2013, consisting of 96.4% in long-term debt and 3.6% in short-term debt.



67



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2013

In 2013, net cash generated by financing activities was US$192.5 million, compared to net cash generated by financing activities of US$422.3
million in 2012. During 2013, we raised new financings of US$890.8 million compared to new borrowings of US$1,692.6 million in 2012. Furthermore, we also repaid US$650.2 million of our indebtedness in 2013 compared to debt repayments in the
aggregate amount of US$1,225.3 million in 2012. In 2013, we distributed US$71.4 million in interest on shareholders equity or dividends compared to US$59.5 million in 2012. In 2013, like in 2012, we did not spend any amounts in connection with
share buyback programs.

On December 31, 2013, we had total debt of US$2,194.3 million under our financing arrangements described
below, 96.4% of which was long-term debt and 3.6% of which consisted of short-term debt. In comparison, we had total debt of US$2,066.5million on December 31, 2012, consisting of 83.7% in long-term debt and 16.3% in short-term debt. Our total
debt increased in 2013 in comparison with 2012.

Credit Facilities and Lines of Credit

Long-term Facilities

In October
2006, our wholly owned finance subsidiary, Embraer Overseas Limited, or Embraer Overseas, issued US$400 million 6.375% guaranteed notes due 2017 and, as of December 31, 2015, US$239.3 million was outstanding (US$6.5 million in the
short-term), including principal and accrued interest. Interest will be paid semiannually. The notes are unconditionally guaranteed by us. The notes have been listed on the Luxembourg Stock Exchange. On March 30, 2007, we and Embraer Overseas
commenced an exchange offer to exchange the notes for new notes registered with the SEC. The exchange offer was successfully completed as of May 18, 2007 and, as a consequence, US$376.3 million or approximately 95% of the notes were registered.
The indenture under which the notes were issued contains customary covenants and restrictions such as limitation on liens, consolidation, merger or transfer of assets. By December 31, 2015, Embraer had repurchased and canceled 19,908
(5.0%) of these bonds, totaling US$15.2 million, with a face value of US$19.9 million. These bonds were purchased by Embraer Overseas through open market transactions. As described below, in September 2013 we completed an exchange offer in
which US$146.4 million in principal amount of our guaranteed notes due 2017 were exchanged for our guaranteed notes due 2023.

In October
2009, Embraer Overseas issued US$500 million 6.375% guaranteed notes due 2020 and, as of December 31, 2015, US$162.5 million was outstanding (US$2.4 million in the short-term), including principal and accrued interest. Interest will be paid
semiannually. The notes are unconditionally guaranteed by us. As described below, in September 2013 we completed an exchange offer in which US$337.2 million in principal amount of our guaranteed notes due 2020 were exchanged for our guaranteed notes
due 2023. In connection with the exchange offer, we received the requisite consents from holders of our guaranteed notes due 2020 to eliminate substantially all the restrictive covenants, certain events of default and related provisions contained in
the indenture under which the notes were issued, and we delisted our guaranteed notes due 2020 from the New York Stock Exchange.

In March
2011, we entered into certain credit facilities with the FINEP in the aggregate amount of US$24.0 million, to support the research and development expenses of the Legacy 500 aircraft, all of which were totally disbursed in 2011. The facility bears
interest at 3.5% per annum and is fully secured by a pledge of certain machines and equipment and by a bank standby letter of credit. The credit facility is repayable from May 2013 to April 2018. As of December 31, 2015, we had US$11.2
million outstanding under our credit facilities with the FINEP, of which US$4.8 million is due in the short-term, including principal and accrued interest. The FINEP credit facilities are denominated in reais, and amounts appearing herein
have been converted into U.S. dollars, our functional currency, for purposes of preparing our IFRS consolidated financial statements.

In
March 2011, we entered into certain credit facilities with the BNDES in the aggregate amount of US$114.1 million, to support the research and development expenses of the Legacy 500 aircraft, including conceptual study and project and development,
which were partially disbursed in 2012. The facility bears interest at TJLP plus 1.92% and 3.5% to 4.5% per annum and is fully secured by a pledge of certain machines and equipment and by a bank standby letter of credit. The credit facility is
repayable from May 2013 to April 2018. As of December 31, 2015, we had US$53.4 million outstanding under our credit facilities with the BNDES, of which US$23.0 million is due in the short-term, including principal and accrued interest. The
BNDES credit facilities are denominated in reais, and amounts appearing herein have been converted into U.S. dollars, our functional currency, for purposes of preparing our IFRS consolidated financial statements.





68



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In June 2012, we issued US$500 million 5.150% notes due 2022 and, as of December 31, 2015,
US$498.8 million was outstanding (US$1.1 million in the short-term), including principal and accrued interest. Interest will be paid semiannually. The notes are our unsecured and unsubordinated obligations. The notes have been registered with the
SEC and listed on the New York Stock Exchange. The indenture under which the notes were issued contains customary covenants and restrictions such as limitation on liens, consolidation, merger or transfer of assets.

As of December 31, 2015, we had US$271.2 million of total export credit notes outstanding, of which US$67.1 million is due in the
short-term, including principal and accrued interest. The facility bears interest 5.5% to 11.0% per annum. The export credit notes are denominated in reais, and amounts appearing herein have been converted into U.S. dollars, our
functional currency, for purposes of preparing our IFRS financial statements.

In March and April 2013, we signed credit agreements in the
form of BNDES pre-shipment export credit lines (BNDES PSI Subprograma Exportação de Pré-embarque) with four Brazilian financial institutions in the total aggregate amount of R$200.0 million, equivalent to US$51.2
million, with maturity in March and April of 2016. These facilities bear interest at 5.5% per annum. In August and September 2014, we signed additional agreements totaling R$100.0 million, equivalent to US$25.6 million, under this credit line,
with maturity in August 2017 and interest at 8.0% per annum. As of December 31, 2015, we had US$76.3 million total outstanding, of which US$50.7 million is due in the short-term, including principal and accrued interest. These facilities
are denominated in reais, and amounts appearing herein have been converted into U.S. dollars, our functional currency, for purposes of preparing our IFRS financial statements.

In August 2013, we signed a credit facility with the FINEP in the amount of R$303.9 million, equivalent to US$77.8 million, to support the
research and development expenses of the Legacy 450 aircraft, of which an aggregate of US$48.7 million was disbursed in 2013 and 2014. The facility bears interest at 3.5% per annum and is fully secured by a bank guarantee. The final maturity is
in September 2023. As of December 31, 2015, we had US$47.1 million outstanding, of which US$0.7 million is due in the short-term, including principal and accrued interest. The FINEP credit facilities are denominated in reais, and amounts
appearing herein have been converted into U.S. dollars, our functional currency, for purposes of preparing our IFRS financial statements.

In September 2013, we completed an exchange offer in which US$146.4 million in principal amount of our guaranteed notes with maturity in 2017
and US$337.2 million in principal amount of our guaranteed notes with maturity in 2020 were exchanged for approximately US$540.5 million in principal amount of notes issued by Embraer Overseas, with maturity in 2023. The notes due in 2023 are
unconditionally guaranteed by us and were issued pursuant to exemptions from SEC registration pursuant to Regulation S and Rule 144A under the Securities Act. The notes due in 2023 are subject to a registration rights agreement, pursuant to which we
have agreed to (i) exchange the notes within 270 days of their issuance for notes with the same terms and conditions which are registered with the SEC or (ii) file a resale shelf registration statement with the SEC on Form F-3. In June
2014, we filed a resale shelf registration statement accordingly. As of December 31, 2015, a total of US$499.9 million under our notes due 2023 was outstanding, of which US$8.9 million was due in the short-term, including principal and accrued
interest.

In December 2013, we signed a contract with BNDES to support project development in the total aggregate amount of R$1.4
billion, equivalent to US$361.5 million. The final maturity is in January 2022. The facility bears interest at 3.5% per annum and secured by guarantee deposits and by a bank stand by letter of credit. As of December 31, 2015, we had
US$346.2 million outstanding under this credit facility, of which US$29.7 million is due in the short-term, including principal and accrued interest. This BNDES credit facility is denominated in reais.

In June 2015, Embraer Netherlands Finance issued US$1,000 million 5.05% guaranteed notes due 2025 and, as of December 31, 2015, US$995.0
million was outstanding (US$2.1 million in the short-term), including principal and accrued interest. Interest will be paid semiannually. The notes are unconditionally guaranteed by us. The notes have been registered with the SEC and listed on the
New York Stock Exchange.



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We may from time to time seek to retire or purchase our outstanding debt, including our
guaranteed notes due 2017, 2020, 2022, 2023 and 2025, through cash purchases and/or exchanges for other securities, in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on
prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material, and notes repurchased may be cancelled or resold, but will only be resold in compliance with applicable
requirements or exemptions under the relevant securities laws.

We have various other long-term loans and credit agreements with aggregate
outstanding borrowings of US$385.4 million at December 31, 2015. See Note 20 to our audited consolidated financial statements for further information on these financing arrangements.

Some of our long-term financing agreements include customary covenants and restrictions, including those that require us to maintain:
(1) a maximum leverage ratio, calculated as net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, of 3.5:1 and (2) a minimum net debt service coverage ratio, calculated as EBITDA to financial expenses, of
2.25:1. Other restrictions included in our long-term financings include negative pledge covenants and restrictions on significant changes in control, sales of substantially all of our assets, dividend payments during events of default and certain
transactions with our affiliates. As of December 31, 2015, we were in compliance with all restrictive covenants contained in our financing agreements.

At December 31, 2015, US$344.4 million of our total debt was secured by a combination of mortgages on certain of our real estate, liens
on certain of our machinery and equipment, guarantee deposits and by a bank standby letter of credit.

For further information on our
loans and financings, including currency and maturity breakdowns and breakdowns between fixed and floating rate debt, see Note 20 to our audited consolidated financial statements as of and for the year ended December 31, 2015.

Recourse and Non-Recourse Debt

Total debt excludes non-recourse and recourse debt associated with customer financing arrangements transacted through special purposes
entities, or SPEs. In structured financings, an SPE purchases an aircraft from us, pays us the full purchase price on delivery or at the conclusion of the sales financing structure, and leases the related aircraft to the ultimate customer. A third
party financial institution facilitates the financing of an aircraft purchase through an SPE, and a portion of the credit risk remains with that third party. We may provide financial guarantees and/or residual value guarantees in favor of the
financial institution, as well as act as the equity participant in such financial structuring process.

Our audited condensed consolidated
financial statements at and for the year ended at December 31, 2015 contain balances related to recourse and non-recourse debt associated with customer financing arrangements of US$384.8 million and collateralized accounts receivable of
US$408.0 million. Of this debt, US$25.5 million is non-recourse for which we have no obligation as a debtor or guarantor, other than potential obligations under existing financial guarantees for the financed aircraft. The remaining US$359.3 million
of debt is recourse to us as a result of pending equity contributions and is partially secured by a pledge of a deposit with a financial institution. Our non-recourse and recourse debt is collateralized by the collateralized accounts receivables and
by the financed aircraft and, as a result, we do not anticipate a net cash outflow related to our non-recourse debt in the future. These financing transactions do not materially affect our income statement and cash flow data since the terms of the
leases and the loans are substantially the same.



|5C. | Research and Development, Patents and Licenses, etc.
|--- | ----------------------------------------------------

We incur research expenses related
to the creation of new technologies that may be applied to our aircraft. Such expenses are not associated with any particular aircraft and include the implementation of quality assurance initiatives, improvements to the productivity of production
lines and studies to determine the latest developments in technology and quality standards. Under IFRS, research costs are expensed as incurred in the research line item of our statement of income. Development costs in the Commercial Aviation and
Executive Jets segments are capitalized from the board approval for the relevant project until the final certification, while major development costs in the Defense segment are recorded based on the percentage of completion method.





70



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Research expenses totaled US$41.7 million in 2015 and US$47.1 million in 2014. This expenditure
remained stable because of the ongoing work of the company in researching new technologies.

In 2016, we expect to invest approximately
US$50.0 million in our research activities.

For information on our capital expenditures, comprising investments in development and
property, plant and equipment, see Item 4B. Information on the CompanyHistory and Development of the CompanyCapital Expenditures (Property, Plant and Equipment and Development).

Intellectual Property

Our
intellectual property, which includes utility patents, design patents, trade secrets, know-how and trademarks, is important to our business. We hold trademarks over our name and symbol and the names of our products, some of which are registered and
some of which are in the process of registration in a number of countries, including Brazil, the United States, Canada, Singapore, Hong Kong, China, the European Union and Japan. At December 31, 2015, we had more than 413 trademarks registered
or in the process of registration. Our trademarks are generally renewed at the end of their validity period, which usually runs from ten years from the date of application for registration. We do not believe that the loss of any of our trademarks
would have a material impact on our business or results of operations.

We develop our intellectual property in our research, development
and production process. Under the agreements we have with some of our suppliers and risk-sharing partners, they grant us access to information and technology necessary to better develop, manufacture and market our products.

We aim to protect our intellectual property rights resulting from investments in technical research and development.

We hold granted patents and patent applications relating to our technologies. Currently, we hold granted patents and patent applications from
the appropriate registries in Brazil, the United States, the European Union, Russia, Japan, India and China in connection with the various technologies of our products. We require that our suppliers and risk-sharing partners respect the intellectual
property rights of third parties, and we believe that we have the necessary intellectual property rights to conduct our business and operations.

Considering our utility and design patent portfolios, at December 31, 2015, we had filed 533 patent applications and had been granted 225
patents.

Innovation

We seek
to remain in the technological vanguard by constantly reinventing ourselves as we search for opportunities to transform our business, products, services and markets.

We view a focus on innovation as key to the competitiveness and sustainability of our business. For this reason, we created an innovation and
knowledge management area to reinforce our initiatives. The area is responsible for the promotion of innovative ideas aimed at the development of new businesses, products, technologies, services and processes. Our Innovation Management Model
contains the bases related to our innovation processes.

Our Innova Program is the main tool created by our innovation and knowledge
management area to promote innovation within Embraer. Innova is focused on creating, sustaining and spreading a favorable culture and environment of innovation. The main strategies are the use of tools and methodologies for the development of
innovation projects and recognition processes.





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Innova is a program that aims to stimulate Embraers culture of innovation and is part of
the company strategy to guarantee the sustainability of its businesses. This program manages the Green Light, Innova Challenge and Innovation Recognition processes.

The Green Light process evaluates innovative proposals presented voluntarily by employees and provides time and resources to them in order to
carry out the idea until its technical and economic feasibility is proven. If the proposals are approved, the innovative employees receive time and resources to develop their projects. More than 380 submitted ideas and 3 innovative projects have
been implemented since the creation of this process, in 2012, including the launch of Embraer Venture Capital. In 2015, 31 innovative projects were under development. At the beginning of 2016, more than 20 projects are under analysis to be submitted
to the board of directors in 2016. The Green Light process applies to any type of innovation: process, product, technology, services, marketing, management or new business.

The Innova Challenge is an internal crowdsourcing mechanism that stimulates ideas to resolve issues globally from different departments of the
company, and any employee in the world may participate in this process. By 2015 we had launched 32 challenges with more than 1,800 ideas in different challenges.

Under the Innovation Recognition process, in 2015, 866 employees were recognized for their 343 innovations, both spontaneous and stimulated.

In addition, nine management groups in the categories of manufacturing, engineering and the main office were acknowledged as the most
favorable environments for innovation in the company. Innovations developed during the last 5 years accounted for 49.0% of our net revenues in 2015.



|5D. | Trend Information
|--- | -----------------

Given the order activity over the last couple of years, during which
we received a significant amount of orders from U.S. carriers, particularly for 76-seat regional jets, we can anticipate fairly appropriately the production and delivery schedules for 2016 in the Commercial Aviation segment. We expect deliveries of
the E175 jet model to account for a greater share of total segment deliveries.

In the executive jet market, despite further record levels
of corporate profits, the number of high net worth individuals and near-record stock market levels in key geographies, the level of pre-owned aircraft for sale continues to pressure new aircraft demand and has impeded recovery in the segment. We
believe, however, that new executive jet product offerings, namely the Legacy 450 midsize jet, which will have its first full year of deliveries, and the Legacy 500 jet, which entered into service in 2014, will help us to increase our total
executive jet deliveries in 2016 as compared to 2015.

With respect to the Defense & Security segment, we expect to progress in
our execution of existing programs, including the KC-390, the Border Monitoring system (SISFRON), the Super Tucano LAS program and the satellite programs. However, due to part of revenues being denominated in reais, a lower expected average
realto U.S. dollar exchange rate is likely to pressure revenues as reported in U.S. dollars in the segment.

In light of this
scenario, in 2016 we expect to deliver 105 to 110 commercial jets, 75 to 85 light executive jets and 40 to 50 large executive jets.

The
following table summarizes our order book for the Commercial Aviation segment at December 31, 2015. Our total firm order backlog at that date, including executive jets and defense aircraft, was US$22.5 billion. The following tables set forth
our Commercial Aviation order book at December 31, 2015 by aircraft type, customer and country.



72



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|                    |  |             |     |  |         |  |     |            |  |  |                  |  |  |  |     | 
|------------------- |  | ----------- | --- |  | ------- |  | --- | ---------- |  |  | ---------------- |  |  |  | --- | 
|Commercial Aviation |  | Firm Orders |     |  | Options |  |     | Deliveries |  |  | FirmOrderBacklog | 
|EMB 120 Brasília    |  |             | 352 |  |         |  | 0   |            |  |  | 352              |  |  |  | 0   | 
|ERJ 135             |  |             | 108 |  |         |  | 0   |            |  |  | 108              |  |  |  | 0   | 
|ERJ 140             |  |             | 74  |  |         |  | 0   |            |  |  | 74               |  |  |  | 0   | 
|ERJ 145             |  |             | 708 |  |         |  | 0   |            |  |  | 708              |  |  |  | 0   | 
|EMBRAER 170         |  |             | 193 |  |         |  | 7   |            |  |  | 190              |  |  |  | 3   | 
|EMBRAER 175         |  |             | 500 |  |         |  | 296 |            |  |  | 331              |  |  |  | 169 | 
|EMBRAER 190         |  |             | 578 |  |         |  | 88  |            |  |  | 523              |  |  |  | 55  | 
|EMBRAER 195         |  |             | 166 |  |         |  | 3   |            |  |  | 147              |  |  |  | 19  | 
|EMBRAER 175E2      |  |             | 100 |  |         |  | 100 |            |  |  | 0                |  |  |  | 100 | 
|EMBRAER 190E2      |  |             | 77  |  |         |  | 85  |            |  |  | 0                |  |  |  | 77  | 
|EMBRAER 195E2      |  |             | 90  |  |         |  | 80  |            |  |  | 0                |  |  |  | 90  | 

The following tables set forth our Commercial Aviation order book at December 31, 2015 by aircraft type,
customer and country.

ERJ 135:



|                                     |  |             |     |  |           |  |     |                   |  |  |   | 
|------------------------------------ |  | ----------- | --- |  | --------- |  | --- | ----------------- |  |  | - | 
|Customer                             |  | Firm Orders |     |  | Delivered |  |     | Firm OrderBacklog | 
|American Eagle (USA)                 |  |             | 40  |  |           |  | 40  |                   |  |  |  | 
|British Midland (UK)                 |  |             | 3   |  |           |  | 3   |                   |  |  |  | 
|City Airline AB (Sweden)             |  |             | 2   |  |           |  | 2   |                   |  |  |  | 
|ExpressJet (USA)                     |  |             | 30  |  |           |  | 30  |                   |  |  |  | 
|Flandre Air (France)                 |  |             | 3   |  |           |  | 3   |                   |  |  |  | 
|Jet Magic (Ireland)                  |  |             | 1   |  |           |  | 1   |                   |  |  |  | 
|Luxair (Luxembourg)                  |  |             | 2   |  |           |  | 2   |                   |  |  |  | 
|Pan Européenne (France)              |  |             | 1   |  |           |  | 1   |                   |  |  |  | 
|Proteus (France)                     |  |             | 3   |  |           |  | 3   |                   |  |  |  | 
|Regional (France)                    |  |             | 3   |  |           |  | 3   |                   |  |  |  | 
|Republic Airways (USA)               |  |             | 15  |  |           |  | 15  |                   |  |  |  | 
|South African Airlink (South Africa) |  |             | 5   |  |           |  | 5   |                   |  |  |  | 
|Total                                |  |             | 108 |  |           |  | 108 |                   |  |  |  | 

ERJ 140:



|                       |  |            |    |  |           |  |    |                  |  |  |   | 
|---------------------- |  | ---------- | -- |  | --------- |  | -- | ---------------- |  |  | - | 
|Customer               |  | FirmOrders |    |  | Delivered |  |    | FirmOrderBacklog | 
|American Eagle (USA)   |  |            | 59 |  |           |  | 59 |                  |  |  |  | 
|Republic Airways (USA) |  |            | 15 |  |           |  | 15 |                  |  |  |  | 
|Total                  |  |            | 74 |  |           |  | 74 |                  |  |  |  | 

ERJ 145:



|                               |  |            |     |  |           |  |     |                  |  |  |   | 
|------------------------------ |  | ---------- | --- |  | --------- |  | --- | ---------------- |  |  | - | 
|Customer                       |  | FirmOrders |     |  | Delivered |  |     | FirmOrderBacklog | 
|Aerolitoral (Mexico)           |  |            | 5   |  |           |  | 5   |                  |  |  |  | 
|Air Caraïbes (Guadeloupe)      |  |            | 22  |  |           |  | 2   |                  |  |  |  | 
|Alitalia (Italy)               |  |            | 14  |  |           |  | 14  |                  |  |  |  | 
|American Eagle (USA)           |  |            | 118 |  |           |  | 118 |                  |  |  |  | 
|Axon (Greece)                  |  |            | 3   |  |           |  | 3   |                  |  |  |  | 
|British Midland (UK)           |  |            | 9   |  |           |  | 9   |                  |  |  |  | 
|British Regional Airlines (UK) |  |            | 23  |  |           |  | 23  |                  |  |  |  | 
|Brymon (UK)                    |  |            | 7   |  |           |  | 7   |                  |  |  |  | 
|China Southern (China)         |  |            | 6   |  |           |  | 6   |                  |  |  |  | 
|China Eastern Jiangsu (China)  |  |            | 5   |  |           |  | 5   |                  |  |  |  | 



73



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|                            |  |            |     |  |           |  |     |                  |  |  |   | 
|--------------------------- |  | ---------- | --- |  | --------- |  | --- | ---------------- |  |  | - | 
|Customer                    |  | FirmOrders |     |  | Delivered |  |     | FirmOrderBacklog | 
|China Eastern Wuhan (China) |  |            | 5   |  |           |  | 5   |                  |  |  |  | 
|Cirrus (Germany)            |  |            | 1   |  |           |  | 1   |                  |  |  |  | 
|ExpressJet (USA)            |  |            | 245 |  |           |  | 245 |                  |  |  |  | 
|ERA (Spain)                 |  |            | 2   |  |           |  | 2   |                  |  |  |  | 
|Flandre Air (France)        |  |            | 5   |  |           |  | 5   |                  |  |  |  | 
|GECAS (PB AirThailand)     |  |            | 2   |  |           |  | 2   |                  |  |  |  | 
|Hainan (China)              |  |            | 25  |  |           |  | 25  |                  |  |  |  | 
|KLM (The Netherlands)       |  |            | 2   |  |           |  | 2   |                  |  |  |  | 
|LOT Polish (Poland)         |  |            | 14  |  |           |  | 14  |                  |  |  |  | 
|Luxair (Luxembourg)         |  |            | 9   |  |           |  | 9   |                  |  |  |  | 
|Mesa (USA)                  |  |            | 36  |  |           |  | 36  |                  |  |  |  | 
|Nigeria (Nigeria) (1)       |  |            | 1   |  |           |  | 1   |                  |  |  |  | 
|Portugalia (Portugal)       |  |            | 8   |  |           |  | 8   |                  |  |  |  | 
|Proteus (France)            |  |            | 8   |  |           |  | 8   |                  |  |  |  | 
|Regional (France)           |  |            | 15  |  |           |  | 15  |                  |  |  |  | 
|Republic Airways (USA)      |  |            | 60  |  |           |  | 60  |                  |  |  |  | 
|Rheintalflug (Austria)      |  |            | 3   |  |           |  | 3   |                  |  |  |  | 
|Rio Sul (Brazil)            |  |            | 16  |  |           |  | 16  |                  |  |  |  | 
|Satena (Colombia) (1)       |  |            | 3   |  |           |  | 3   |                  |  |  |  | 
|Sichuan (China)             |  |            | 5   |  |           |  | 5   |                  |  |  |  | 
|Skyways (Sweden)            |  |            | 4   |  |           |  | 4   |                  |  |  |  | 
|Swiss (Switzerland)         |  |            | 25  |  |           |  | 25  |                  |  |  |  | 
|Transtates (USA)            |  |            | 22  |  |           |  | 22  |                  |  |  |  | 
|Total                       |  |            | 708 |  |           |  | 708 |                  |  |  |  | 



|(1) | Aircraft delivered by Embraer Defense and Security
|--- | --------------------------------------------------

EMBRAER 170:



|                                      |  |            |     |  |           |  |     |                  |  |  |   | 
|------------------------------------- |  | ---------- | --- |  | --------- |  | --- | ---------------- |  |  | - | 
|Customer                              |  | FirmOrders |     |  | Delivered |  |     | FirmOrderBacklog | 
|Airnorth (Australia)                  |  |            | 1   |  |           |  | 1   |                  |  |  |  | 
|Alitalia (Italy)                      |  |            | 6   |  |           |  | 6   |                  |  |  |  | 
|BA CityFlyer (UK)                     |  |            | 6   |  |           |  | 6   |                  |  |  |  | 
|Cirrus (Germany)                      |  |            | 1   |  |           |  | 1   |                  |  |  |  | 
|ECC Leasing (Ireland) (1)             |  |            | 6   |  |           |  | 6   |                  |  |  |  | 
|EgyptAir (Egypt)                      |  |            | 12  |  |           |  | 12  |                  |  |  |  | 
|Finnair (Finland)                     |  |            | 10  |  |           |  | 10  |                  |  |  |  | 
|GECAS (USA)                           |  |            | 9   |  |           |  | 9   |                  |  |  |  | 
|JAL (Japan)                           |  |            | 20  |  |           |  | 17  |                  |  |  | 3 | 
|Jetscape (USA)                        |  |            | 1   |  |           |  | 1   |                  |  |  |  | 
|LOT Polish (Poland)                   |  |            | 6   |  |           |  | 6   |                  |  |  |  | 
|Petro Air (Libya)                     |  |            | 2   |  |           |  | 2   |                  |  |  |  | 
|Regional (France)                     |  |            | 10  |  |           |  | 10  |                  |  |  |  | 
|Republic Airlines (USA)               |  |            | 48  |  |           |  | 48  |                  |  |  |  | 
|Satena (Colombia) (2)                 |  |            | 1   |  |           |  | 1   |                  |  |  |  | 
|Saudi Arabian Airlines (Saudi Arabia) |  |            | 15  |  |           |  | 15  |                  |  |  |  | 
|Sirte Oil (Libya)                     |  |            | 1   |  |           |  | 1   |                  |  |  |  | 
|Suzuyo (Japan)                        |  |            | 2   |  |           |  | 2   |                  |  |  |  | 
|TAME (Ecuador) (2)                    |  |            | 2   |  |           |  | 2   |                  |  |  |  | 
|US Airways (USA)                      |  |            | 28  |  |           |  | 28  |                  |  |  |  | 
|Virgin Australia (Australia)          |  |            | 6   |  |           |  | 6   |                  |  |  |  | 
|Total                                 |  |            | 193 |  |           |  | 190 |                  |  |  | 3 | 



|(1) | Customer is Embraers ECC Leasing, which delivered one aircraft to Cirrus, two to Gulf Air, two to Paramount and one to Satena (delivered by Embraer Defense and Security).
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Aircraft delivered by Embraer Defense and Security.
|--- | ---------------------------------------------------

|
|
|





74



---

EMBRAER 175:



|                          |  |            |     |  |           |  |     |                  |  |  |     | 
|------------------------- |  | ---------- | --- |  | --------- |  | --- | ---------------- |  |  | --- | 
|Customer                  |  | FirmOrders |     |  | Delivered |  |     | FirmOrderBacklog | 
|Air Canada (Canada)       |  |            | 15  |  |           |  | 15  |                  |  |  |    | 
|Aldus (Ireland)           |  |            | 5   |  |           |  |    |                  |  |  | 5   | 
|ECC Leasing (Ireland) (1) |  |            | 1   |  |           |  | 1   |                  |  |  |    | 
|Air Lease (USA)           |  |            | 8   |  |           |  | 8   |                  |  |  |    | 
|Alitalia (Italy)          |  |            | 2   |  |           |  | 2   |                  |  |  |    | 
|American Airlines (USA)   |  |            | 60  |  |           |  | 24  |                  |  |  | 36  | 
|CIT (USA)                 |  |            | 4   |  |           |  | 4   |                  |  |  |    | 
|Flybe (UK)                |  |            | 15  |  |           |  | 11  |                  |  |  | 4   | 
|GECAS (USA)               |  |            | 5   |  |           |  | 5   |                  |  |  |    | 
|Jetscape (USA)            |  |            | 4   |  |           |  | 4   |                  |  |  |    | 
|KLM (Netherlands)         |  |            | 17  |  |           |  |    |                  |  |  | 17  | 
|LOT Polish (Poland)       |  |            | 12  |  |           |  | 12  |                  |  |  |    | 
|Mesa (USA)                |  |            | 8   |  |           |  | 3   |                  |  |  | 5   | 
|Northwest (USA)           |  |            | 36  |  |           |  | 36  |                  |  |  |    | 
|Oman Air (Oman)           |  |            | 5   |  |           |  | 5   |                  |  |  |    | 
|Republic Airlines (USA)   |  |            | 141 |  |           |  | 113 |                  |  |  | 28  | 
|Royal Jordanian (Jordan)  |  |            | 2   |  |           |  | 2   |                  |  |  |    | 
|TRIP (Brazil)             |  |            | 5   |  |           |  | 5   |                  |  |  |    | 
|United Airlines (USA)     |  |            | 40  |  |           |  | 30  |                  |  |  | 10  | 
|Skywest (USA)             |  |            | 99  |  |           |  | 45  |                  |  |  | 54  | 
|Suzuyo (Japan)            |  |            | 8   |  |           |  | 6   |                  |  |  | 2   | 
|Undisclosed               |  |            | 8   |  |           |  | 0   |                  |  |  | 8   | 
|Total                     |  |            | 500 |  |           |  | 331 |                  |  |  | 169 | 



|(1) | Customer is Embraers ECC Leasing, which delivered one aircraft to Air Caraïbes
|--- | -------------------------------------------------------------------------------

EMBRAER 190:



|                          |  |            |    |  |           |  |    |                  |  |  |    | 
|------------------------- |  | ---------- | -- |  | --------- |  | -- | ---------------- |  |  | -- | 
|Customer                  |  | FirmOrders |    |  | Delivered |  |    | FirmOrderBacklog | 
|Aero Republica (Colombia) |  |            | 5  |  |           |  | 5  |                  |  |  |   | 
|Aeromexico (Mexico)       |  |            | 12 |  |           |  | 12 |                  |  |  |   | 
|Aldus (Ireland)           |  |            | 15 |  |           |  | 4  |                  |  |  | 11 | 
|Air Astana (Kazakhstan)   |  |            | 2  |  |           |  | 2  |                  |  |  |   | 
|Air Canada (Canada)       |  |            | 45 |  |           |  | 45 |                  |  |  |   | 
|Air Caraïbes (Guadeloupe) |  |            | 1  |  |           |  | 1  |                  |  |  |   | 
|Air Lease (USA)           |  |            | 23 |  |           |  | 23 |                  |  |  |   | 
|Air Moldova (Moldova)     |  |            | 1  |  |           |  | 1  |                  |  |  |   | 
|Augsburg (Germany)        |  |            | 2  |  |           |  | 2  |                  |  |  |   | 
|Austral (Argentina)       |  |            | 22 |  |           |  | 22 |                  |  |  |   | 
|AZAL (Azerbaijan)         |  |            | 6  |  |           |  | 4  |                  |  |  | 2  | 
|Azul (Brazil)             |  |            | 5  |  |           |  | 5  |                  |  |  |   | 
|BA CityFlyer (UK)         |  |            | 9  |  |           |  | 9  |                  |  |  |   | 
|BOC Aviation (Singapore)  |  |            | 14 |  |           |  | 14 |                  |  |  |   | 
|Conviasa (Venezuela)      |  |            | 16 |  |           |  | 16 |                  |  |  |   | 
|China Southern (China)    |  |            | 20 |  |           |  | 20 |                  |  |  |   | 
|CIT (USA)                 |  |            | 7  |  |           |  | 7  |                  |  |  |   | 
|Copa (Panama)             |  |            | 15 |  |           |  | 15 |                  |  |  |   | 
|Dniproavia (Ukraine)      |  |            | 5  |  |           |  | 5  |                  |  |  |   | 



75



---

|                             |  |            |     |  |           |  |     |                  |  |  |    | 
|---------------------------- |  | ---------- | --- |  | --------- |  | --- | ---------------- |  |  | -- | 
|Customer                     |  | FirmOrders |     |  | Delivered |  |     | FirmOrderBacklog | 
|ECC Leasing (Ireland) (1)    |  |            | 1   |  |           |  | 1   |                  |  |  |   | 
|Finnair (Finland)            |  |            | 12  |  |           |  | 12  |                  |  |  |   | 
|GECAS (USA)                  |  |            | 27  |  |           |  | 27  |                  |  |  |   | 
|Guizhou / Colorful (China)   |  |            | 7   |  |           |  | 2   |                  |  |  | 5  | 
|Hainan (China)               |  |            | 50  |  |           |  | 50  |                  |  |  |   | 
|Hebei (China)                |  |            | 7   |  |           |  | 6   |                  |  |  | 1  | 
|JAL (Japan)                  |  |            | 10  |  |           |  |    |                  |  |  | 10 | 
|JetBlue (USA)                |  |            | 88  |  |           |  | 64  |                  |  |  | 24 | 
|Jetscape (USA)               |  |            | 9   |  |           |  | 7   |                  |  |  | 2  | 
|Kenya Airways (Kenia)        |  |            | 10  |  |           |  | 10  |                  |  |  |   | 
|KLM (Netherlands)            |  |            | 24  |  |           |  | 24  |                  |  |  |   | 
|KunPeng (China)              |  |            | 5   |  |           |  | 5   |                  |  |  |   | 
|LAM (Mozambique)             |  |            | 2   |  |           |  | 2   |                  |  |  |   | 
|Lufthansa (Germany)          |  |            | 9   |  |           |  | 9   |                  |  |  |   | 
|M1 Travel (Lebanon)          |  |            | 8   |  |           |  | 8   |                  |  |  |   | 
|NAS Air (Saudi Arabia)       |  |            | 3   |  |           |  | 3   |                  |  |  |   | 
|NIKI (Áustria)               |  |            | 7   |  |           |  | 7   |                  |  |  |   | 
|Regional (France)            |  |            | 10  |  |           |  | 10  |                  |  |  |   | 
|Republic (USA)               |  |            | 2   |  |           |  | 2   |                  |  |  |   | 
|Taca (El Salvador)           |  |            | 11  |  |           |  | 11  |                  |  |  |   | 
|TAME (Ecuador) (2)           |  |            | 3   |  |           |  | 3   |                  |  |  |   | 
|TRIP (Brazil)                |  |            | 3   |  |           |  | 3   |                  |  |  |   | 
|US Airways (USA)             |  |            | 25  |  |           |  | 25  |                  |  |  |   | 
|Virgin Austrália (Australia) |  |            | 18  |  |           |  | 18  |                  |  |  |   | 
|Virgin Nigeria (Nigeria)     |  |            | 2   |  |           |  | 2   |                  |  |  |   | 
|Undisclosed                  |  |            |    |  |           |  |    |                  |  |  |   | 
|Total                        |  |            | 578 |  |           |  | 523 |                  |  |  | 55 | 



|(1) | Customer is Embraers ECC Leasing, which delivered one aircraft to Jet Blue (USA).
|--- | ----------------------------------------------------------------------------------

|(2) | Aircraft delivered by Embraer Defense and Security.
|--- | ---------------------------------------------------

EMBRAER 195:



|                            |  |            |     |  |           |  |     |                  |  |  |    | 
|--------------------------- |  | ---------- | --- |  | --------- |  | --- | ---------------- |  |  | -- | 
|Customer                    |  | FirmOrders |     |  | Delivered |  |     | FirmOrderBacklog | 
|Arkia (Israel)              |  |            | 1   |  |           |  |    |                  |  |  | 1  | 
|Aurigny (Guernsey)          |  |            | 1   |  |           |  | 1   |                  |  |  |   | 
|Azul (Brazil)               |  |            | 59  |  |           |  | 59  |                  |  |  |   | 
|Belavia (Belarus)           |  |            | 2   |  |           |  | 2   |                  |  |  |   | 
|BOC Aviation (Singapore)    |  |            | 1   |  |           |  | 1   |                  |  |  |   | 
|Flybe (UK)                  |  |            | 14  |  |           |  | 14  |                  |  |  |   | 
|GECAS (USA)                 |  |            | 12  |  |           |  | 12  |                  |  |  |   | 
|Globalia (Spanish)          |  |            | 12  |  |           |  | 12  |                  |  |  |   | 
|Hainan (China)              |  |            | 20  |  |           |  | 2   |                  |  |  | 18 | 
|Jetscape (USA)              |  |            | 2   |  |           |  | 2   |                  |  |  |   | 
|LOT Polish (Poland)         |  |            | 4   |  |           |  | 4   |                  |  |  |   | 
|Lufthansa (Germany)         |  |            | 34  |  |           |  | 34  |                  |  |  |   | 
|Montenegro (Montenegro)     |  |            | 1   |  |           |  | 1   |                  |  |  |   | 
|Royal Jordanian (Jordanian) |  |            | 2   |  |           |  | 2   |                  |  |  |   | 
|Trip (Brazil)               |  |            | 1   |  |           |  | 1   |                  |  |  |   | 
|Total                       |  |            | 166 |  |           |  | 147 |                  |  |  | 19 | 



76



---

EMBRAER 175  E2:



|              |  |            |     |  |           |  |   |                  |  |  |     | 
|------------- |  | ---------- | --- |  | --------- |  | - | ---------------- |  |  | --- | 
|Customer      |  | FirmOrders |     |  | Delivered |  |   | FirmOrderBacklog | 
|Skywest (USA) |  |            | 100 |  |           |  |  |                  |  |  | 100 | 
|Total         |  |            | 100 |  |           |  |  |                  |  |  | 100 | 

EMBRAER 190 E2:



|                  |  |            |    |  |           |  |   |                  |  |  |    | 
|----------------- |  | ---------- | -- |  | --------- |  | - | ---------------- |  |  | -- | 
|Customer          |  | FirmOrders |    |  | Delivered |  |   | FirmOrderBacklog | 
|Air Costa (India) |  |            | 25 |  |           |  |  |                  |  |  | 25 | 
|Aircastle (USA)   |  |            | 15 |  |           |  |  |                  |  |  | 15 | 
|ILFC (USA)        |  |            | 25 |  |           |  |  |                  |  |  | 25 | 
|ICBC (China)      |  |            | 10 |  |           |  |  |                  |  |  | 10 | 
|Hainan (China)    |  |            | 2  |  |           |  |  |                  |  |  | 2  | 
|Total             |  |            | 77 |  |           |  | 0 |                  |  |  | 77 | 

EMBRAER 195 E2:



|                  |  |            |    |  |           |  |   |                  |  |  |    | 
|----------------- |  | ---------- | -- |  | --------- |  | - | ---------------- |  |  | -- | 
|Customer          |  | FirmOrders |    |  | Delivered |  |   | FirmOrderBacklog | 
|Air Costa (India) |  |            | 25 |  |           |  |  |                  |  |  | 25 | 
|Aircastle (USA)   |  |            | 10 |  |           |  |  |                  |  |  | 10 | 
|Azul (Brazil)     |  |            | 30 |  |           |  |  |                  |  |  | 30 | 
|ILFC (USA)        |  |            | 25 |  |           |  |  |                  |  |  | 25 | 
|Total             |  |            | 90 |  |           |  | 0 |                  |  |  | 90 | 

For additional information regarding trends in our business, see Item 4C. Information on the
CompanyBusiness OverviewBusiness Strategies and Item 5A. Operating and Financial Review and ProspectsOperating ResultsCurrent Conditions and Future Trends in the Commercial Airline Industry and Executive Jet
Market. For risks affecting our business, see Item 3D. Key InformationRisk Factors.



|5E. | Off-Balance Sheet Arrangements
|--- | ------------------------------

In the normal course of our business, we enter into
certain off-balance sheet arrangements, including financial and residual value guarantees, trade-in obligations, product warranty commitments and operating leases. We also have a number of swap transactions that are described in Item 11.
Quantitative and Qualitative Disclosures about Market Risk. For a detailed description of our derivate instruments, see Note 8 to our consolidated financial statements as of and for the year ended December 31, 2015. See also Note 36
to our audited consolidated financial statements for additional information on our off-balance sheet arrangements. In addition, see Item 3D. Key InformationRisk FactorsRisks Relating to EmbraerSome of our aircraft sales may
be subject to financial and residual value guarantees and trade-in options that may require us to make significant cash disbursements in the future.

Financial and Residual Value Guarantees

Financial guarantees are triggered if customers do not perform their obligation to service the debt during the term of the financing under the
relevant financing arrangements. Financial guarantees provide credit support to the guaranteed party to mitigate default-related losses. The underlying assets collateralize these guarantees. The value of the underlying assets may be adversely
affected by an economic or industry downturn. Upon an event of default, we are usually the agent for the guaranteed party for the refurbishment and remarketing of the underlying asset. We may be entitled to a fee for such remarketing services.
Typically a claim under the guarantee shall be made only upon surrender of the underlying asset for remarketing.



77



---

Residual value guarantees provide a third party with a specific guaranteed asset value at the end
of the financing agreement. In the event of a decrease in market value of the underlying asset, we shall bear the difference between the specific guaranteed amount and the actual fair market value. Our exposure is mitigated by the fact that, in
order to benefit from the guarantee, the guaranteed party has to maintain the underlying assets in order to meet stringent specific return conditions.

Assuming all customers supported by financial guarantees defaulted on their aircraft financing arrangements, and also assuming we were
required to pay the full aggregate amount of outstanding financial and residual value guarantees and were not able to remarket any of the aircraft to offset our obligations, our maximum unrecorded exposure under these guarantees (less provisions and
liabilities) would have been US$434.3 million as of December 31, 2015. For further discussion of these off-balance sheet arrangements, see Note 36 to our audited consolidated financial statements.

At December 31, 2015, we had US$245.2 million deposited in an escrow account as collateral for the financing of certain aircraft sold
where we serve as secondary guarantor. If the initial guarantor of the debt (an unrelated third party) is required to pay the lender, the initial guarantor will be entitled to the amount in the escrow account. The amount is returned in the form of
cash to us at maturity of the financing contracts (until 2021) if the aircraft purchaser does not default on the loan. The interest on the escrow account is added to the principal and recognized by us as financial income.

We allocated the deposits from the escrow account to 14-year structured notes with the depositary bank in order to earn a better interest
rate. This yield enhancement was obtained through a credit default swap (CDS) transaction, which provides the right of early redemption of the note in case of a credit event by us. Upon such a credit event, the note may be redeemed by the holder at
the greater of the notes market value or its original face amount, which would result in a loss to us of all interest accrued on such note to date. Credit events include obligation and payment defaults under the terms of the guarantees above
specified thresholds, events related to the restructuring of the obligations above a specified threshold, bankruptcy and a repudiation of and/or moratorium on the obligations above a specified threshold.

Residual value guarantees typically ensure that, at the exercise date (between 6 and 18 years after the aircraft delivery date), the relevant
aircraft will have a residual market value of a percentage of the original sale price. Most of our residual value guarantees are subject to a limitation (a cap) and, therefore, on average our guaranteed residual value is 17% of the
original sale price. In the event of a decrease in the market value of the underlying aircraft and an exercise by the purchaser of the residual value guarantee, we will bear the difference, if any, between the guaranteed residual value and the
market value of the aircraft at the time of exercise, limited to a cap. Our exposure is mitigated by the fact that the guaranteed party, in order to benefit from the guarantee, must make the aircraft meet specific return conditions. See Note 11 to
our audited consolidated financial statements.

We continuously re-evaluate our risk under our guarantees and trade-in obligations based
on a number of factors, including the estimated future market value of our aircraft based on third-party appraisals, including information developed from the sale or lease of similar aircraft in the secondary market, and the credit rating of
customers.

The following table provides quantitative data regarding guarantees we render to third parties. The maximum potential payments
represent the worst-case scenario and do not necessarily reflect the results expected by us. Estimated proceeds from performance guarantees and underlying assets represent the anticipated values of assets we could liquidate or receive from other
parties to offset our payments under guarantees.



78



---

|                                                                     |  |                   |        |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
|-------------------------------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | - |  | ---- | ------ | - |  |  | ------ | -
|                                                                     |  | At December 31,   |       
|                                                                     |  | 2015              |        |   | 2014 |  |        | 2013 |  |  | 2012   |   |  | 2011 |       
|                                                                     |  | (in US$ millions) |       
|Description                                                          |  |                   |        |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
|Maximum financial guarantees                                         |  |                   | 375.9  |   |      |  | 487.6  |      |  |  | 545.5  |   |  |      | 374.2  |   |  |  | 471.6  |  
|Maximum residual value guarantees                                    |  |                   | 300.6  |   |      |  | 307.5  |      |  |  | 359.9  |   |  |      | 372.7  |   |  |  | 542.2  |  
|Mutually exclusive exposure (1)                                      |  |                   | (107.4 | ) |      |  | (107.4 | )    |  |  | (94.7  | ) |  |      | (115.0 | ) |  |  | (209.8 | )
|Provisions and liabilities recorded(2)                               |  |                   | (134.8 | ) |      |  | (156.2 | )    |  |  | (155.3 | ) |  |      | (114.0 | ) |  |  | (121.2 | )
|Off-balance sheet exposure                                           |  |                   | 434.3  |   |      |  | 531.5  |      |  |  | 655.4  |   |  |      | 517.9  |   |  |  | 682.8  |  
|Estimated proceeds from performance guarantees and underlying assets |  |                   | 559.6  |   |      |  | 725.2  |      |  |  | 907.8  |   |  |      | 656.7  |   |  |  | 896.5  |  



|(1) | When an underlying asset is covered by mutually exclusive financial and residual value guarantees, the residual value guarantee may only be exercised if the financial guarantee has expired without having been exercised.
On the other hand, if the financial guarantee is exercised, the residual value guarantee is automatically terminated. After a financial guarantee expires without being exercised, there is an average three-month period in which a guaranteed party may
exercise the residual value guarantee. This means that our exposure to mutually exclusive financial and residual value guarantees covering a single underlying asset cannot be cumulative. Therefore, the maximum exposure shown in this line item is not
an aggregate amount of the combined value of mutually exclusive financial and residual value guarantees covering a single underlying asset.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Represents the sum of our financial and residual value guarantees (see Note 25 to our audited consolidated financial statements).
|--- | ---------------------------------------------------------------------------------------------------------------------------------

As discussed in Note 11 to our audited consolidated financial statements, as of December 31, 2015, 2014, 2013, 2012 and 2011, we
maintained escrow deposits in the total amount of US$245.2 million, US$251.7 million, US$261.4 million, US$275.8 million and US$268.4 million, respectively, in favor of third parties for whom we have provided financial and residual value guarantees
in connection with certain aircraft sales financing structures.

As of December 31, 2011, as a result of our customer American
Airlines filing for creditor protection under Chapter 11, we had recorded a provision of US$317.5 million to cover losses estimated in relation to our financial guarantee obligations to the vendor for 216 aircraft (ERJ 135, ERJ 140 and ERJ 145
models). During 2012, until the court approved the proposed bankruptcy terms, we made payments of US$59.7 million as a guarantee advance, which were presented as a reduction (disposals) to the provision established in 2011. The proposal for the
restructuring of American Airlines was filed on September 8, 2012 with the court, which approved the conditions proposed in the negotiations. As a result of the approval and formalization of the agreements between the parties, we recognized the
assets acquired and the obligations assumed in relation to the operation in the amount of US$149.6 million. The remaining balance for the additional provision for guarantee obligations was US$211.9 million as of December 31, 2012. On
November 29, 2013 the U.S. court approved the merger between U.S. Airways and American Airlines and its bankruptcy filing was finalized. Consequently, through this event, our obligation on financial guarantees by AMRs creditor has been
completed and part of the amount paid as advance financial guarantees to such creditor of US$71.4 million was returned to us and the remaining provision of US$111.9 million was reversed against the operating result. The residual value guarantees
were finalized along with American Airlines in exchange for concessions from contractual receivables and the amount of US$58.6 million was transferred from provisions to accounts payable in 2013. There was no remaining balance for the additional
provision as of December 31, 2015.

Because of a reorganization solicitation (Chapter 11) of the customer Republic Airways Holding,
filed on February 25, 2016 with the United States of America, the Company has made a provision of US$ 100.9 million, to cover losses related to obligations with financial guarantees offered to the main financing agent of the ERJ 140/145
aircraft, acquired by this customer. The management recognized a provision considering its best estimates based on the information contained in the reorganization filing document. See Note 25 to our audited consolidated financial statements for
further information.



79



---

Trade-in Obligations

We sometimes provide trade-in options to our customers in purchase agreements for new aircraft. These options provide customers with the right
to trade in aircraft upon the purchase and acceptance of a new aircraft. The trade-in price for commercial aircraft is determined in the manner discussed under Item 5A.Operating ResultsCritical Accounting EstimatesGuarantees
and Trade-In Rights. In 2015, we accepted 25 aircraft, with a total invoiced value of US$145.81 million, for trade-in pursuant to trade-in options. In the aggregate, we are currently subject to trade-in options relating to 31 aircraft, as a
result of trade-ins tied to contractual obligations with customers and to their taking delivery of certain new aircraft. In addition, other aircraft may become subject to trade-in due to new sales agreements. The trade-in price is determined based
on the new aircraft sold, as well as other factors, including a market value assessment performed by independent third party appraisers. See Note 36 to our audited consolidated financial statements for further information on our trade-in options.

We continue to monitor all trade-in commitments to anticipate any adverse economic impact they may have on our financial condition. We
may be required to accept trade-ins at prices that are slightly above the then-market price of the aircraft, which would result in financial loss for us when we resell the aircraft. Based on our current evaluation and on third-parties appraisals, we
believe that any aircraft accepted in connection with trade-in commitments may be sold or leased in the market without significant profits or losses. See Item 5A.Operating ResultsCritical Accounting EstimatesGuarantees.

Operating Leases

Where we operate
as the lessor under operating leases of aircraft through ECC, we assume a significant part of the risks and benefits of ownership, which are classified as operating leases. Payments made for operating leases are amortized to the statement of income
on the straight-line method over the contract period. Our parent company operating leases refer to telephone and computer equipment, and those relating to our subsidiaries in the United States relate to non-cancelable operating leases of land and
equipment. These leases expire at various dates through 2020. For more information on our operating leases, see Note 36 to our audited consolidated financial statements.

5F. Tabular Disclosure of Contractual Obligations

The following table and discussion provide additional disclosure regarding our material contractual obligations and commercial commitments as
of December 31, 2015:



|                               |  |                   |         |  |               |  |         |            |  |  |            |  |  |                 |         |  |  |  |         | 
|------------------------------ |  | ----------------- | ------- |  | ------------- |  | ------- | ---------- |  |  | ---------- |  |  | --------------- | ------- |  |  |  | ------- | 
|                               |  | Total             |         |  | Lessthan1year |  |         | 1  3years |  |  | 3  5years |  |  | Morethan 5years |        
|                               |  | (in US$ millions) |        
|Contractual Obligations        |  |                   |         |  |               |  |         |            |  |  |            |  |  |                 |         |  |  |  |         | 
|Loans and interest             |  |                   | 4,740.1 |  |               |  | 377.9   |            |  |  | 983.3      |  |  |                 | 580.3   |  |  |  | 2,798.6 | 
|Pension fund                   |  |                   | 109.0   |  |               |  | 10.9    |            |  |  | 21.8       |  |  |                 | 21.8    |  |  |  | 54.5    | 
|Capital lease obligations      |  |                   | 0.1     |  |               |  |        |            |  |  | 0.1        |  |  |                 |        |  |  |  |        | 
|Operating leases               |  |                   | 38.6    |  |               |  | 13.7    |            |  |  | 9.0        |  |  |                 | 10.6    |  |  |  | 5.3     | 
|Recourse and Non Recourse Debt |  |                   | 384.8   |  |               |  | 10.1    |            |  |  | 29.5       |  |  |                 | 338.6   |  |  |  | 6.6     | 
|Costumer advances              |  |                   | 907.9   |  |               |  | 748.5   |            |  |  | 121.9      |  |  |                 | 36.3    |  |  |  | 1.2     | 
|Contribution from suppliers    |  |                   |        |  |               |  |        |            |  |  |           |  |  |                 |        |  |  |  |        | 
|Suppliers                      |  |                   | 1,034.9 |  |               |  | 1,034.9 |            |  |  |           |  |  |                 |        |  |  |  |        | 
|Financial Guarantees           |  |                   | 293.1   |  |               |  | 161.5   |            |  |  | 41.8       |  |  |                 | 17.7    |  |  |  | 72.1    | 
|Other Liabilities              |  |                   | 266.0   |  |               |  | 3.4     |            |  |  | 120.2      |  |  |                 | 85.8    |  |  |  | 56.6    | 
|Total                          |  |                   | 7,774.5 |  |               |  | 2,360.9 |            |  |  | 1,327.6    |  |  |                 | 1,091.1 |  |  |  | 2,994.9 | 

The above table shows the sum of the outstanding principal and anticipated interest due at maturity date. For
fixed rate loans, the interest expenses were calculated based on the rate established in each debt contract. For floating rate loans, the interest expenses were calculated based on a market forecast for each period (LIBOR 6m  12m), dated on
December 31, 2015. This floating rate exposure is managed through derivatives operations. See Item 11. Quantitative and Qualitative Disclosures About Market Risk.



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The above table does not reflect contractual commitments related to trade-in options and
financial and residual value guarantees discussed in Item 5E.Off-Balance Sheet Arrangements above. See Item 3D. Key InformationRisk FactorsRisks Relating to Embraer Some of our aircraft sales may be subject
to financial and residual value guarantees and trade-in options that may require us to make significant cash disbursements in the future.

Other liabilities include taxes and payroll charges payable in the total amount of US$151.4 million at December 31, 2015. The above
table does not reflect any information about our derivative instruments, which are discussed more fully in Item 11. Quantitative and Qualitative Disclosures About Market Risk.

5G. Safe Harbor

See Special Note Regarding Forward-Looking Statements.



|ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
|------- | ------------------------------------------

6A. Directors and Senior
Management

We are managed by our Board of Directors (Conselho de Administração), composed of 11 members, and our
Board of Executive Officers (Diretoria), composed of no less than four and no more than 11 members (each an Executive Officer). We have a permanent Fiscal Council (Conselho Fiscal), which is composed of at least three and no more than
five members and an equal number of alternates.

There are no family relationships among the members of our Board of Directors and/or our
Board of Executive Officers.

Board of Directors

Our Board of Directors ordinarily meets eight times a year and extraordinarily when called by the Chairman. It has responsibility, among other
things, for establishing our general business policies and for electing our Executive Officers and supervising their management.

Our
Board of Directors is appointed by our shareholders for a two-year term, reelection being permitted, having three reserved seats as follows: (1) one acting member to be appointed by the Brazilian federal government, as holder of the
golden share, and (2) two acting members to be appointed by our employees. The remaining eight directors are elected in accordance with the slate voting or cumulative voting rules contained in our bylaws. See Item 10B.
Additional InformationMemorandum and Articles of AssociationBoard of DirectorsElection of Board of Directors for a detailed description of the rules and procedures regarding the nomination and election of our Board members.
There is no mandatory retirement age for our Directors.

Under the rules of the Novo Mercado, the members of our Board of Directors
have agreed to comply with the Novo Mercado Listing Rules and with the rules of the São Paulo Stock Exchange Arbitration Chamber before taking office, and for such purpose have executed a Statement of Consent from the Directors
(Termo de Anuência dos Administradores).

Set forth below are the names, ages, positions, the year first elected and brief
biographical descriptions of the members of our Board of Directors elected at our annual shareholders meeting held on April 15, 2015:



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|                                |  |     |    |  |          |                                    |                           |  |      |    
|------------------------------- |  | --- | -- |  | -------- | ---------------------------------- | ------------------------- |  | ---- | ---
|Name                            |  | Age |    |  | Position |                                    | Year FirstElected toBoard | 
|Alexandre Gonçalves Silva       |  |     | 71 |  |          | Chairman of the Board of Directors |                           |  | 2011 |    
|Sérgio Eraldo de Salles Pinto   |  |     | 51 |  |          | Member of the Board of Directors   |                           |  | 2009 |    
|Alexandre Magalhães Filho       |  |     | 63 |  |          | Member of the Board of Directors   |                           |  | 2015 |    
|Antonio Franciscangelis Neto    |  |     | 63 |  |          | Member of the Board of Directors   |                           |  | 2013 |    
|Cecília Mendes Garcez Siqueira  |  |     | 58 |  |          | Member of the Board of Directors   |                           |  | 2015 | (1)
|Herbert Claros da Silva         |  |     | 34 |  |          | Member of the Board of Directors   |                           |  | 2015 |    
|Israel Vainboim                 |  |     | 71 |  |          | Member of the Board of Directors   |                           |  | 2009 |    
|João Cox Neto                   |  |     | 52 |  |          | Member of the Board of Directors   |                           |  | 2011 |    
|Josué Christiano Gomes da Silva |  |     | 52 |  |          | Member of the Board of Directors   |                           |  | 2011 |    
|Pedro Wongtschowski             |  |     | 69 |  |          | Member of the Board of Directors   |                           |  | 2015 |    
|Samir Zraick                    |  |     | 75 |  |          | Member of the Board of Directors   |                           |  | 2006 |    

Alexandre Gonçalves Silva.Mr. Silva holds a BS in Mechanical Engineering from PUC Rio de
Janeiro. In his 40-year career, he has occupied positions in several areas, including 22 years as a CEO. Mr. Silva was CEO of GE in Brazil from 2001 to 2007 and since then, Mr. Silva has occupied positions on boards of directors of various
companies. Mr. Silva is Chairman of the Board of Directors of Embraer and an independent board member at Fibria Celulose, Alupar, Tecsis and Nitroquímica. Mr. Silva is a Pro Bono Director of AMCHAM Brazil and the Maria Cecilia
Souto Vidigal Foundation, Senior Advisor of Global Infrastructure Partners in New York and Board member of the American Chamber of Commerce since 2003. Mr. Silva is an independent member of the Board of Directors of Embraer.

Sérgio Eraldo de Salles Pinto.Mr. Salles Pinto has been CEO of Bozano Group since 2011 and he was an Executive Officer
from 2000 to 2010. From 1988 to 2000, he worked at several companies of Banco Bozano, Simonsen S.A. He was originally elected to the Board of Directors of Embraer in April 2009 and he is an independent member, being a member of the Human Resources
Committee and coordinator of the Audit and Risk Committee. Mr. Salles Pinto earned undergraduate degrees in Economics and Electrical Engineering from the Center of Unified Teaching of Brasília (CEUB) and the University of Brasília
(UnB), respectively. He holds a Masters degree in Economics from Fundação Getúlio VargasRio de Janeiro (EPGE) and a Masters degree in Administration from the Catholic University of Rio de Janeiro (PUC).
Mr. Salles Pinto is the President of Bozano Investimentos Gestora de Recursos, and a member of the Board of Directors of Netpoints, a member of the Board of Directors of Azul Linhas Aéreas and a member of the Board of Directors of Ouro
Preto Óleo e Gás.

Antonio Franciscangelis Neto.Mr. Franciscangelis is Secretary of Economy and Finance of the
Brazilian Air Force. Among other positions, Mr. Franciscangelis was Head of Office of the Brazilian Air Force Commander, Commander of 2nd / 5th Aviation Group; Head of Office of the Brazilian Air Forces COMDABRA; Assistant to the Deputy
Chief of the General Staff of the Armed Forces; Commander of Anapolis Air Base; Assistant to the Defense and Aeronautics Attaché at United States and Canada; Chief of the Brazilian Air Force Commission in Washington, DC; Chief of the 2nd, 1st
and 6th Subchefias of EMAER; Commander of the Air Force Instruction and Adaptation Center and Commander of the Brazilian Aerospace Defense Command. Among the main academic courses completed by Mr. Franciscangelis are the Aviator Officers
Formation CourseAFA; Officers Improvement CourseEAOAR; Graduation in Command and General Staff CourseECEMAR; Politics and Aerospace Strategy Course; Recycling in Economics and Finance Course (SEFA); Management and Business
Administration (MBA) at Getúlio Vargas Foundation FGV- RJ; Mirage F 103 Fighter Pilot and Air Defense Course; Fighter Leadership Course; the Brazilian Institute of Corporate Governance (IBGC) Course for board members.





|(1) | Cecília Mendes Garcez Siqueira was also a member of this committee from April, 2009 until April, 2011.
|--- | ------------------------------------------------------------------------------------------------------



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Alexandre Magalhães Filho.Mr. Magalhães Filho has a degree in
accounting sciences, with a specialization in budget performance. He has been an employee of Embraer since 1986, where he has held the following positions: 1986 to 2008, Budget Supervisor, Assistant Controllership Officer, and Pricing and Economic
Planning Manager; 2008 to 2010, Costs Manager. His current position is Tax, Cost and Accounting Procedures Manager, and he is in charge of cost, accounting and tax procedures, including products and services costing, accounting for 29 companies,
controllership and IFRS accounting consolidation for 50 companies in the Embraer group, and tax operations. Mr. Magalhães Filho sat on the Fiscal Council of : (i) Banco do Brasil Previdência Privada (BBPREV) from 1997 to 2009;
(ii) Embraer Prev  Sociedade de Previdência Complementar from 2010 to 2012, being reelected for the period 2015 to 2018; and (iii) Cooperativa dos Empregados da Embraer (Cooperemb) from 2009 to 2011, was elected to the Board of
Directors for the 2015-2017 term. Mr. Magalhães Filho was an alternate director for the representative of the Embraer Employees Investment Club (CIEMB) on the Board of Directors of Embraer from 2013 to 2015, and was elected as an acting
director for the 2015-2017 term.

Cecília Mendes Garcez Siqueira.Ms. Siqueira holds a degree in education and an MBA
in General BusinessTop Executives and Pension Plan Management, as well as a masters degree in business management. She has been an employee of BB since 1979, where she has held the following positions: 1979 to 2002, various positions;
2002 to 2010, Chief Planning Officer, and currently Chief Administrative Officer. Ms. Siqueira served on the Board of Directors of Neoenergia from 2002 to 2005, where she also acted as Coordinator of the HR Committee. From 2005 to 2008,
Ms. Siqueira served as Vice Chairman of the Board of Directors of CPFL Energia, where she also acted as Coordinator of the HR Committee. She served as a director of Embraer from 2008 to 2011, where she also sat on the Strategies and Risk
Committee. Ms. Siqueira also sat on the Board of Directors of Sauípe S.A. from 2011 to 2013. Ms. Siqueira is an independent member of the Board of Directors of Embraer.

Herbert Claros da Silva.Mr. da Silva works as a mechanical adjuster at the surface treatment area at the head office of Embraer
in São José dos Campos.

Israel Vainboim.Mr. Vainboim was a member of the Board of Directors of Itaú
Unibanco S.A. from 2009 to April 2015. He is a member of the Board of Directors of Cia. Iochpe-Maxion, member of the Decision-making Council of MAM (Museu de Arte Moderna de São Paulo), Chairman of the Fiscal Council of Albert Einstein
Hospital in São Paulo and Chairman of the Board of the Brazilian-Israeli Chamber of Commerce. Mr. Vainboim served at Unibanco in various capacities since 1969. Mr. Vainboim was also the President of Unibanco from 1988 to 1992 and
member of its Board of Directors until 2008. Mr. Vainboim was president of Unibanco Holdings S.A. from 1994 to 2007, Chairman of the Board of Directors and President of the Audit Committee of Unibanco Holdings S.A. from 2007 to February 2009.
He was first elected to the Board of Directors of Embraer in April 2009 and he is an independent member. Mr. Vainboim earned an undergraduate degree in Mechanical Engineering from the Federal University of Rio de Janeiro and holds an MBA from
Stanford University.

João Cox Neto. Mr. Cox has a degree in economics from the Federal University of Bahia and
extended his postgraduate studies in economics at the Université du Québec in Montréal Quebec, Canada, and the PSCs Oxford University. Mr. Cox speaks Portuguese, English, French and Spanish. Mr. Cox heads Cox
Investments & Advisory, a boutique investment firm providing M&A, financing and consulting services as well as holding interests in private equity funds. He was also a member of the Board of Directors of companies in various countries
(Brazil, Argentina, Netherlands and Israel), and acted as advisor for the CRSFNAppeals Council of the National Financial System, the Board of Directors of ABRASCA (Brazilian Association of Listed Companies) and IBRI (Brazilian Institute of
Investor Relations). Mr. Cox serves on the Board of Directors of Estácio de Sá S.A. Since April 1999 he has been deeply involved with the telecommunications industry, in the capacities of President, CEO or vice president. From
2006 to 2010, he served Claro, the second largest mobile operator in Brazil, as President, CEO or Vice-President. From April 1999 to August 2004 he served as Vice-President Finance and Investor Relations of Telemig Celular
Participações and Tele Norte Celular Participações, and at the same time was also the CEO of Telemig Celular and Amazonia Celular. In 2005 he served as Vice-Chairman of the Board of Directors of Cellcom, the largest
mobile operator in Israel. Mr. Cox maintains ties with the universities where he taught for several years at the undergraduate and graduate levels. Mr. Cox is an independent member of the Board of Directors of Embraer, also acting as a
member of the Human Resources Committee and the Audit and Risks Committee.



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Josué Christiano Gomes da Silva.Mr. Gomes da Silva is President of the
Companhia de Tecidos Norte de Minas  Coteminas, leader in the bed and bath segment, with production facilities throughout Brazil. Mr. Gomes da Silva is founder and chairman of the Board of Directors of Cantagalo General Grains S.A., a
company involved in production, marketing and logistics of grain, and member of the Board of Directors of Embraer. Mr. Gomes da Silva served as member of the Board of the Institute for Studies in Industrial DevelopmentIEDI, having chaired
the institute from 2005 to 2009, President Emeritus and Member of the Supreme Council of the Association of the Textile and Clothing IndustryABIT, having chaired the organization from 2005 to 2007, Third Vice-President of the Federation of
Industries of the State of São Paulo  FIESP, Vice-Chairman of the Business Council of Latin America  CEAL, Member of the Brazil-US CEOs Forum, Member of the Corporate Council of the Vanderbilt University Owen Graduate School of
Management, President of the International Textile Manufactures Federation  ITMF, and member of the Board of Visitors of the Institute of Cancer of São Paulo Octavio Frias de Oliveira  ICESP. Mr. Josué has a degree in
Civil Engineering from the Federal University of Minas Gerais, and a Bachelor of Law degree from Law School at Milton Campos. He won the Gold Medal (Founder Medal) at Vanderbilt University  United States, where he concluded his
Master degree in Business Administration  MBA.

Pedro Wongtschowski.Mr. Wongtschowski served as General Manager of
Oxiteno S.A. (1992-2006). From January 2007 to December 2012, he served as President of ULTRAPAR Participações S.A. , a public company doing business in the fields of fuel distribution (Ipiranga), LPG distribution (Ultragaz), bulk
liquid logistics (Ultracargo), and specialty chemicals manufacturing (Oxiteno). Mr. Wongtschowski is an independent director of Embraer.

Samir Zraick. Mr. Zraick was chief financial officer of Vale S.A., and head of its U.S. affiliate from 1971 to 1986, being
responsible for the financial formulation of Carajás Project. Subsequently, Mr. Zraick was a member of the Board of Directors of Vale during 2000 and served as a Special Advisor and member of Vales Strategic Committee from 2001 to
2004. Mr. Zraick served as Finance and Development Director of Caemi Mineração e Metalurgia S.A. from 1986 to 1998. Mr. Zraick was a member of the Board of Directors and Chairman of the Marketing Committee of Quebec Cartier
Mining, in Montreal, Quebec, Canada, from 1990 to 1999. He served as a Board Member of Canico Resources in Vancouver, British Columbia, Canada, from July 2004 to March 2006. He was first elected in March 2006 to the Board of Directors of Embraer and
he is an independent member.

Committees

Three committees were formed to assist the Board of Directors in its duties and responsibilities:



| |  |  | Strategies Committee: it has no executive power. The primary purpose of the Strategies Committee is to assist the Board of Directors in its functions. The members of our Board of Directors and Board of Executive
Officers may serve on this committee. The Strategies Committees responsibilities include aiding the Board of Directors in the formulation of our strategic plan. The current members of the Strategies Committee are Israel Vainboim (coordinator),
Alexandre Gonçalves Silva, Josué Christiano Gomes da Silva and Pedro Wongtschowski.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Audit and Risks Committee: See Item 6C.Board PracticesAudit and Risks Committee below.
| | - |  | ------------------------------------------------------------------------------------------



| |  |  | Human Resources Committee: the members are appointed by our Board of Directors. The members of our Board of Directors and Board of Executive Officers may serve on this committee. Its purpose is to assist the
Board of Directors in connection with human resources issues which include appointing and removing Executive Officers from office and designating their duties as provided by the bylaws, compensation and human relations policy, transferring of our
resources to employee associations, charity and recreational entities, the private security fund and foundation. The current members of the Human Resources Committee are João Cox Neto (coordinator), Alexandre Gonçalves da Silva,
Cecília Mendes Garcez Siqueira and Sérgio Eraldo de Salles Pinto.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | Conselho Fiscal: See Item 6C.Board PracticesAudit and Risks CommitteeConselho Fiscal below.
| | - |  | ------------------------------------------------------------------------------------------------

In the event an Executive Officer serves on the Strategies Committee and the Human Resources Committee, he will only be entitled to receive
the compensation corresponding to the higher paying position. The Directors appointed to serve on such Committees and on the Audit and Risks Committee may combine the compensation for each position so held.

Executive Officers

Our Executive
Officers are responsible for our day-to-day management. The Board of Executive Officers has responsibilities established by our bylaws and by the Board of Directors.

The terms of office for our Executive Officers are two years, with each Executive Officer eligible for reelection.

The vote of at least seven members of our Board of Directors is necessary to remove an Executive Officer.

Our bylaws forbid any Executive Officer from also serving at the same time as a member of our Board of Directors.

Under the rules of the Novo Mercado, our Executive Officers have agreed to comply with the Novo Mercado Listing Rules and to the
rules of the São Paulo Stock Exchange Arbitration Chamber before taking office and for such purpose have executed a Statement of Consent from the Executive Officers (Termo de Anuência dos Administradores).

Set forth below are the names, ages, positions, the year first elected and brief biographical descriptions of our current Executive Officers as of the date of
this annual report:



|                                 |  |     |  |                                                                           |  |                  
|-------------------------------- |  | --- |  | ------------------------------------------------------------------------- |  | -----------------
|Name                             |  | Age |  | Position                                                                  |  | Year FirstElected
|Frederico Pinheiro Fleury Curado |  | 54  |  | President and Chief Executive Officer                                     |  | 2007             
|Mauro Kern Junior                |  | 55  |  | Executive Vice President  Chief Operating Officer                        |  | 2015             
|Paulo Cesar de Souza e Silva     |  | 60  |  | Executive Vice President  Commercial Aviation                            |  | 2010             
|Jackson Medeiros de F. Schneider |  | 51  |  | Executive Vice President  Defense and Security                           |  | 2014             
|José Antonio de Almeida Filippo  |  | 55  |  | Executive Vice President  Chief Financial and Investor Relations Officer |  | 2012             
|Marco Tulio Pellegrini           |  | 57  |  | Executive Vice President  Executive Aviation                             |  | 2013             
|Terena Penteado Rodrigues        |  | 42  |  | Executive Vice President  General Counsel                                |  | 2013             

Frederico Pinheiro Fleury Curado.Mr. Curado Mr. Curado has been an Executive Officer of
Embraer S.A. since 1995, and President and Chief Executive Officer since 2007. He has a degree in Mechanical Aeronautical Engineering from ITA  Instituto Tecnológico de Aeronáutica and an M.B.A. from the University of São
Paulo. Besides his activities at Embraer, he is the Chairman of the Brazilian Chapter of the Brazil-US Business Council, a member of Brazils National Council for Industrial Development, a member of Brazils Economical and Social
Development Council and Vice-Chairman of the International Chamber of Commerce. He is also an independent board member at Transocean Ltd (NYSE:RIG) and at Iochpe-Maxion (BOVESPA:MYPK3). Mr. Curado has been awarded the Medals for Aeronautical
Merit and Foreign Relations by the Brazilian Government, and the Medal for Merit by the Brazilian Association of Military Engineering.





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Mauro Kern Junior. Since, January 2015, Mr. Kern was appointed Embraers Chief
Operating Officer. He joined Embraer in 1982 as a Mechanical Systems Engineer and served the company in the following years in several technical and managerial positions. In 1999, Mr. Kern joined the Embraer 170/190 program as its Chief
Engineer and Program Manager. In April 2007, he was appointed Embraers Executive Vice-President for the Airline Market In April 2011, Mr. Kern was appointed Embraers Executive Vice-President for Engineering and Technology.
Mr. Kern holds a Bachelors degree in Engineering from the University of Rio Grande do Sul.

Paulo Cesar de Souza e
Silva. Mr. Paulo Cesar Silva joined the company in 1997 and spent 13 years focusing and developing Embraers Customer Financing strategies. Since April 2010 he is the President & CEO of Embraer Commercial Aviation. As
Embraers representative at Aviation Working Group, an international industry organization dedicated to developing initiatives to foster and facilitate advanced aviation financing, Mr. Silva contributed to the development and
implementation of the Cape Town Treaty and the Aircraft Sector Understanding (ASU), which regulates the terms and conditions for Export Credit Agencies support. Both are key instruments to the airlines gaining access to efficient aircraft financing.
He is a member of the Conquistadores Del Cielo and Wings Club. Prior to joining Embraer, Mr. Silva held many executive positions within the international bank industry. He holds a bachelors degree in economics from Mackenzie University
(Sao PauloBrazil) and a MBA in Switzerland.

Jackson Medeiros F. Schneider. Mr. Schneider is Chief Executive Officer of
Embraer Defense & Security and previously he held the position of Executive Vice President of People, Institutional Relations, and Sustainability of Embraer. He has a Law degree from the University of BrasiliaUNB, and an MBA from the
Business School of São Paulo. He began his career in the Ministry of Justice (Brazilian Government). In the private sector, he was Deputy Director of Corporate Affairs of Unilever and Vice President of Human Resources, Legal Relations and
Corporate Affairs of Mercedes Benz Brazil. In addition, Mr. Schneider was President of ANFAVEA (Brazilian Vehicle Manufacturer Association) and ABIPLA (Brazilian Association of Manufacturers of Cleaning Products, and Related Items), as well as
a member of the Board of Tax Council of the Ministry of Economy and Finance, among other assignments. He is currently Vice President of the FIESP (State of São Paulo industry federation), and Board member of organizations including the
Biennial Foundation of São Paulo, the Ayrton Senna Institute, the AACD (association to support disabled children) and MASP (São Paulos Art Museum Assis Chateaubriand), among others.

José Antonio de Almeida Filippo. In June 2012, Mr. José Antonio de Almeida Filippo was elected CFO and Investor
Relations Executive Vice-President of Embraer. Mr. Filippo started his career at Gafisa Imobiliária, in which he held the position of CFO and Administrative Director. From 1995 to 2000 he held the Corporate Financial Manager position at
Reynolds AluminumLatasa. From 2000 to 2004, he held the position of CFO of Latin America at Ingersoll-Rand Company. From June 2004 to 2010 he held the position of CFO and Investors Relations Vice-President at CPFL Energia. Since March 2010, he
held the position of CFO of Companhia Brasileira de Distribuição (Grupo Pão de Açucar), before joining Embraer. Mr. Filippo has a degree in Civil Engineering from the Federal University of Rio de Janeiro in 1983,
with postgraduate studies in Finance at the Catholic University of Rio de Janeiro and IBMECBrazilian Institute of Capital Markets. He also participated in the Program Development and Management at the Harvard Business School in 1999.

Marco Tulio Pellegrini. In January 2014, Mr. Pellegrini was appointed President and CEO of Embraer Executive Jets, after having
served close to three years as Embraers Senior Vice President Operations and COO. His experience in the aerospace industry spans more than 25 years, most of which have been spent in senior management at Embraer. Prior to his roles in the
Executive Jets segment, Mr. Pellegrini was Embraers VP of New Programs  Airline Market and before that Vice President of Production and Industrial Strategy, responsible for manufacturing, manufacturing engineering, tooling and
industrial architecture. Mr. Pellegrini also served as VP of Market Intelligence for Executive Jets, responsible for product strategies, sales support, market assessment, marketing and competitive analysis for business aviation. He was formerly
responsible for industrial architecture and site selection of new Embraer facilities as Sr. Manager for Industrial Planning. Before joining Embraer, Mr. Pellegrini spent time at Vasp, a major Brazilian airline, as Sr. Manager for Quality
Assurance. In addition, he did a year-long training program at McDonnell Douglas Long Beach facility in the R&D and production liaison areas. Mr. Pellegrini holds a Masters degree of Science in Mechanical Engineering from
São Paulo University. After graduating from university, Mr. Pellegrini began his career as a manufacturing engineer at an automobile parts manufacturer.





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Terena Penteado Rodrigues. Mrs. Rodrigues holds a LL.B. from the University of
São Paulo Law School and an LL.M. from the Georgetown University Law Center (Washington, DC). She joined Embraer in 2004 as Legal Advisor, becoming Associate General Counsel for industry/regulatory and later for sales/aftermarket. She became
Senior Vice President, General Counsel & Compliance in 2012, and since April 2013 she is the Executive Vice President, General Counsel. Before Embraer, she worked as Senior Legal Counsel at United Technologies Corporation (Hartford, CT),
and as an International Associate at Wilmer, Cutler & Pickering (Washington, DC). Mrs. Rodrigues is a member of the New York and Brazilian Bar Associations.

6B. Compensation

Overview

Our Executive Officers, directors and fiscal council members are entitled to fixed compensation. In addition, our Executive Officers
are eligible to participate in our executive profit sharing plan, which provides them with variable compensation that is based on their and our performance and is limited to a percentage of our net income for the year.

For the fiscal year ended December 31, 2015, the aggregate compensation (including benefits in kind granted) that we paid to members of
the Board of Directors, the Audit and Risks Committee, the Fiscal Council and the Executive Officers for services in all capacities was US$11.7 million: US$2.7 million to members of the Board of Directors, US$0.3 million to members of the Fiscal
Council and US$8.7 million to the Executive Officers.

For the fiscal year ended December 31, 2015, members of our committees of the
Board of Directors, including our Audit and Risks Committee, received an aggregate additional compensation of US$0.3 million, which is included in the US$11.7 million compensation mentioned above.

In addition, in 2015, we contributed US$0.3 million for the payment of pension benefits to our Executive Officers. Members of our Board of
Directors and Fiscal Council do not receive such benefits. The board members, Fiscal Council members and Executive Officers did not receive any compensation (including benefits in kind) from any of our subsidiaries. At December 31, 2015, none
of the board members, Fiscal Council members or Executive Officers had any financial or other interests in any transaction involving us which was not in the ordinary course of our business.

In addition, on December 31, 2015, our Executive Officers owned an aggregate of 260,000 common shares, our board members held 1,303
common shares and our Fiscal Council owned one common share.

For additional information on our executive compensation, see Note 15.3 of
our consolidated financial statements as of and for the year ended December 31, 2015.

Stock Option Plan

At a special shareholders meeting held on April 19, 2010, our shareholders approved a second stock option plan for management and
employees, including those of our subsidiaries, subject to their continuous employment with us for at least two years. Our Board of Directors may choose employees and members of management who will be eligible to receive stock options, which are to
be awarded free of charge. Nevertheless, in extraordinary circumstances our Board of Directors may grant stock options to persons employed with us for less than two years with a view to hiring and retaining strategic personnel. Our Board of
Directors may also determine the terms of the stock option contracts. This second stock option plan has an indefinite period of duration and may be terminated at any time by our Board of Directors, after which no new options may be granted. However,
options granted prior to the termination of the plan will not be affected and may be exercised subject to the terms and conditions of the plan and respective stock option contract. Under the terms of this second stock option plan, we are authorized
to grant options to purchase up to 1.5% of our common shares, and the options vest as follows: 20% after one year following the date the options were granted; 30% after two years following the date the options were granted; and 50% after three years
following the date the options were granted. As of December 31, 2012, 6,510,000 options had been granted on April 30, 2010, at an exercise price of R$10.19 per share, 6,345,000 options had been granted on January 18, 2011, at exercise
prices of R$12.05 per share, 150,000 options had been granted on March 16, 2011, at exercise prices of R$12.89 per share, 4,860,000 options had been granted on January 23, 2012, at an exercise price of R$11.50 per share, 4,494,000 options
had been granted on March 20, 2013, at exercise prices of R$15.71 per share, 584,400 options had been granted on April 25, 2013, at exercise prices of R$16.81 per share.



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At a special shareholders meeting held on January 10, 2012, the second stock option
plan detailed above was amended to provide for a revised vesting schedule, such that options granted after January 10, 2012 vest as follows: 33% after three years following the date the options were granted; 33% after four years following the
date the options were granted; and 34% after five years following the date the options were granted. The exercise price of each option is to be set on the grant date as the weighted average trading price of the last 60 trading days and can be
adjusted by up to 30% to counteract any speculative activity in the market. Each option holder has up to five years from the date of grant to exercise options received prior to and during 2011, and up to seven years from the date of grant to
exercise options received after 2011. Option holders may only exercise options during the term of their employment with Embraer. This amendment does not affect the accounting for grants existing prior to this plan.

Phantom Shares Plan

In February 2014, we
adopted a new model of long-term incentive plan aligned with our remuneration policy. The new model is based on the granting of virtual shares to officers and management and has the main objective to attract and retain highly qualified staff to
ensure continuity of management and align the interest of officers and key personnel of the Company and its shareholders. Participants in the plan will receive two classes of virtual shares, 50% in the form of virtual restricted shares and 50% in
the form of virtual performance shares. We will pay the amount of the long-term incentive converting the virtual shares into reais by the average price of the Companys shares in the 10 trading sessions preceding the relevant
determination date three, four and five years after the grant of the virtual shares, respectively. On February 25, 2014, we approved a total benefit of US$13.0 million under the plan, equivalent to 1,570,698 virtual shares with a fair value of
US$6.6 million at December 31, 2015, equivalent to 892,567 virtual shares. On March, 3,2015 we approved the second grant with a total benefit of US$10.4 million under the plan, equivalent to 1,237,090 virtual shares with a fair value of US$
2.2 million at December 31, 2015, equivalent to 306,094 virtual shares. On March, 10, 2016 we approved the third grant with a total benefit of US$8.5 million under the plan, equivalent to 1,095,720 virtual shares. For more information on
this plan, see Note 30.2 of our audited consolidated financial statements for the year ended December 31, 2015.

Long-Term Incentive Plan

The objectives of our Long-Term Incentive Plan are the recruitment and retention of highly-qualified personnel and to allow those who can
contribute to our performance the opportunity to participate in our profits. We intend for incentives under the plan to promote continuity among our management and alignment of the interests of our executives with those of shareholders. Amounts
distributed are defined with reference to the market, under the conditions described in our Long-Term Incentive Plan.

Short-Term Variable Compensation
Policy

Our Short-Term Variable Compensation Policy is designed to promote the retention of executives and alignment of their interests
with those of shareholders. Goals with greater impact and importance for our company are given greater weight. We distribute short-term variable compensation to our eligible executives which is equal to a percentage of our operating profits.

Employee Profit Sharing Plan

We first
implemented a profit sharing plan in 1998 that linked employee profit sharing to dividend payments. In December 2008, the Board of Directors approved changes to the methodology for calculating the employee profit sharing. The new program, as amended
in 2008 by our Board of Directors, is now tied to our net income, calculated in accordance with IFRS, and to individual and business unit performance targets. Of the total amount reserved for the profit sharing program, 50% is distributed in equal
parts to all employees, while 50% is distributed proportionally to the employees salary.



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For the 2015, 2014, 2013, 2012 and 2011 fiscal years, we distributed US$37.9 million, US$47.8
million, US$57.2 million, US$36.1 million and US$33.4 million, respectively, to our employees under our profit sharing plan.

Defined Contribution
Pension Plan

We sponsor a defined contribution pension plan for employees, the participation in which is optional. The plan is managed
by EMBRAER PREV  Sociedade de Previdência Complementar. Contributions made by us to this plan in the years ended December 31, 2015, 2014, 2013, 2012 and 2011 were US$22.0 million, US$28.4 million, US$29.1 million, US$27.4 million
and US$28.4 million, respectively. For more information on our post-retirement benefits, see Note 27 to our audited consolidated financial statements.

We amended our healthcare plan for retired employees, considered a post-employment benefit. Under this healthcare plan, our employees who
retire have the option of remaining in the plan, contributing the full amount charged by the insurance company. However, due to certain rules for increases under Brazilian law, there could be times at which the contribution made by our retired
employees is insufficient to cover the medical plan expenses, which would represent exposure for us.

Actuarial studies are made annually
to identify the future exposure to be recorded as a provision. The provision recorded was US$57 million on December 31, 2012 and US$68.5 million on December 31, 2013, US$36.8 million on December 31, 2014 and US$22.5 million on
December 31, 2015. As of December 31, 2011, we had recorded no provision.

EAH sponsors a post-retirement healthcare plan, which
was amended in 2007 and employees hired as of that date do not qualify for this plan. The estimated pension and post-retirement healthcare costs for the beneficiaries and their dependents are recorded as a provision using the accrual method, based
on actuarial studies. The provision recorded was US$4.4 million on December 31, 2012 and US$2.5 million on December 31, 2013, US$4.4 million on December 31, 2014 and US$4.3 million on December 31, 2015.

The actuarial methods used comply with the generally accepted actuarial methods in force, in accordance with the projected unit credit method.

D&O Insurance

We maintain
directors and officers liability insurance in an amount of US$100 million. This insurance covers liabilities resulting from wrongful acts, including any act or omission committed or attempted by any officer or director acting in his or
her capacity as officer or director or any matter claimed against an officer or director solely due to his or her serving in such capacity.

6C. Board Practices

Our Board of Directors is appointed for a two-year term. See Item 6A.Directors and Senior
ManagementBoard of Directors.

The Executive Officers are elected by the Board of Directors. Our current Executive Officers
were elected on April 15, 2015, with a term of office until the meeting of our Board of Directors to be held following the annual general meeting of our shareholders in April 2017 to approve our financial statements for the fiscal year ended
December 31, 2016.

The members of our Board of Directors and our Executive Officers have a uniform two-year term and are eligible
for reelection. A vote of at least seven members of our Board of Directors is necessary to remove an Executive Officer. See Item 6A.Directors and Senior ManagementExecutive Officers.

None of our Directors is party to an employment agreement providing for benefits upon termination of term. All of our Executive Officers are
party to a service agreement setting forth the rights and obligations of the Executive Officers. If we terminate a service agreement with any of our Executive Officers, we will be required to pay a termination benefit to such Executive Officer
equivalent to 50% of his/her remaining annual compensation, provided that a minimum of six monthly wages of the annual compensation is paid.



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Audit and Risks Committee

Our Audit and Risks Committee may have up to five independent members and has no executive power. The primary purpose of the Audit and Risks
Committee is to assist the Board of Directors in its functions. The members of our Board of Directors may serve on the committee. The Audit and Risks Committees responsibilities include validation and submission to the Board of Directors of
guidelines for risk policy, verification of risk management policy compliance, supervision of activities performed by our independent auditors and monitoring the quality and integrity of internal controls and financial statements. Embraers
statutory Audit and Risks Committee is currently composed of four independent members of our Board of Directors. Because foreign private issuers are subject to local legislation which may prohibit the full Board of Directors from
delegating certain responsibilities to the audit committee, pursuant to Rule 10A-3, audit committees of foreign private issuers may be granted responsibilities, which may include advisory powers, with respect to such matters to the extent permitted
by law. Due to certain restrictions imposed by the Brazilian Corporate Law, our Audit and Risks Committee, unlike a U.S. audit committee, only has an advisory role and may only make recommendations for adoption by the full Board of
Directors, which is responsible for the ultimate vote and final decision. For example, our Audit and Risks Committee makes recommendations regarding the appointment of auditing firms, which are subject to a vote of the Board of Directors. Our Audit
and Risks Committee complies with Brazilian legal requirements (including for independent directors, as defined by Brazilian law).

Set forth below are the names, ages, position and the year first elected of the members of our Audit and Risks Committee appointed at our
Board of Directors meeting held on April 15, 2015.



|                              |  |     |  |                                  |  |                   |      |    
|----------------------------- |  | --- |  | -------------------------------- |  | ----------------- | ---- | ---
|Name                          |  | Age |  | Position                         |  | Year FirstElected |     
|Sergio Eraldo de Salles Pinto |  | 51  |  | Coordinator and Effective member |  |                   | 2011 |    
|Israel Vainboim               |  | 71  |  | Effective member                 |  |                   | 2011 |    
|Samir Zraick                  |  | 75  |  | Effective member                 |  |                   | 2011 |    
|João Cox Neto                 |  | 52  |  | Effective member                 |  |                   | 2015 | (1)

Fiscal Council (Conselho Fiscal)

Under the Brazilian Corporate Law, the Fiscal Council is a corporate body independent of management and a companys external
auditors. The Fiscal Council has not typically been equivalent to or comparable with a U.S. audit committee; its primary responsibility has been to monitor managements activities, review the financial statements, and report its findings to the
shareholders. In our case, our statutory Audit and Risks Committee, established in accordance with the Novo Mercado Listing Rules, will serve as our equivalent of a U.S. audit committee. See Item 6A.Directors and Senior
Management Committees.

Under the Brazilian Corporate Law, the Fiscal Council may not contain members who are members
of the Board of Directors or the executive committee, or who are our employees or employees of a controlled company or of a company of this group, or a spouse or relative of any member of our management. In addition, the Brazilian Corporate Law
requires that Fiscal Council members receive a remuneration of at least 10% of the average amount paid to each Executive Officer. The Brazilian Corporate Law requires a Fiscal Council to be composed of a minimum of three and a maximum of five
members and their respective alternates. Under the rules of the Novo Mercado, the members of the Fiscal Council have agreed to comply with the Novo Mercado Listing Rules and to the rules of the São Paulo Stock Exchange
Arbitration Chamber before taking office and for such purpose have executed a Statement of Consent from the Fiscal Council.



|(1) | João Cox Neto was also a member of this committee from April, 2011 until April, 2013.
|--- | -------------------------------------------------------------------------------------



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Our Fiscal Council is composed of three to five members who are elected at the annual
shareholders meeting, with terms lasting until the next annual shareholders meeting after their election. Under the Brazilian Corporate Law, in the event a company acquires control of another company, minority shareholders that in the
aggregate hold at least 10% of the voting shares also have the right to elect separately one member of the Fiscal Council. Such provision will not be applicable to us as long as we are subject to widespread control. Set forth below are the names,
ages, the year first elected and positions of the members of our Fiscal Council and respective alternates, elected at our annual shareholders meeting held on April 15, 2015.



|                                         |  |     |  |                  |  |                  
|---------------------------------------- |  | --- |  | ---------------- |  | -----------------
|Name                                     |  | Age |  | Position         |  | Year FirstElected
|Ivan Mendes do Carmo(1)                  |  | 53  |  | Effective member |  | 2008             
|Tarcísio Luiz Silva Fontenele            |  | 53  |  | Alternate        |  | 2001             
|José Mauro Laxe Vilela                   |  | 68  |  | Effective member |  | 2011             
|Wanderley Fernandes da Silva             |  | 42  |  | Alternate        |  | 2011             
|Taiki Hirashima                          |  | 75  |  | Effective member |  | 2004             
|Carla Alessandra Trematore               |  | 40  |  | Alternate        |  | 2013             
|Danielle Pinho Soares Alcântara Crema(2) |  | 37  |  | Effective member |  | 2015             
|Marcus Pereira Aucélio                   |  | 49  |  | Alternate        |  | 2013             
|Sandro Kohler Marcondes                  |  | 51  |  | Effective member |  | 2015             
|José Pedro da Broi                       |  | 57  |  | Alternate        |  | 2014             



|(1) | President of the Fiscal Council
|--- | -------------------------------

|(2) | Vice-President of the Fiscal Council
|--- | ------------------------------------

6D. Employees

The table below sets forth the number of our employees by category as of the dates indicated, and includes the employees of our consolidated
joint ventures and subsidiaries OGMA, HEAI, ECTS, EZ Air, AST (EUA), Atech, Bradar, Harpia, Visiona and Savis:



|                                    |  |                 |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|----------------------------------- |  | --------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ |  |  | ---- | ------ |  |  |  | ------ | 
|                                    |  | At December 31, |       
|                                    |  | 2015            |        |  | 2014 |  |        | 2013 |  |  | 2012   |  |  | 2011 |       
|Production Process                  |  |                 | 7,803  |  |      |  | 6,945  |      |  |  | 6,628  |  |  |      | 6,558  |  |  |  | 6,950  | 
|Research and Development            |  |                 | 6,069  |  |      |  | 5,948  |      |  |  | 5,914  |  |  |      | 5,245  |  |  |  | 4,463  | 
|Customer Support                    |  |                 | 3,846  |  |      |  | 3,797  |      |  |  | 3,737  |  |  |      | 3,269  |  |  |  | 3,035  | 
|Administrative  Production Support |  |                 | 2,115  |  |      |  | 2,006  |      |  |  | 2,067  |  |  |      | 2,367  |  |  |  | 2,218  | 
|Administrative  Corporate          |  |                 | 3,217  |  |      |  | 3,605  |      |  |  | 3,302  |  |  |      | 2,711  |  |  |  | 2,600  | 
|                                    |  |                 |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|Total                               |  |                 | 23,050 |  |      |  | 22,301 |      |  |  | 21,648 |  |  |      | 20,150 |  |  |  | 19,266 | 
|                                    |  |                 |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 

Approximately 76.7 % of our workforce is employed in Brazil. Most of our technical staff is trained at
leading Brazilian engineering schools, including ITA, located in São José dos Campos. A small percentage of our employees belong to one of two labor unions: the Sindicato dos Metalúrgicos (Union of Metallurgical Workers)
and the Sindicato dos Engenheiros do Estado de São Paulo (Union of Engineers of the State of São Paulo). Overall, union membership as a percentage of total workforce has declined significantly in past years. At December 31,
2000, approximately 74.1% of our employees were not affiliated with any unions, compared to 92.8% at December 31, 2015. We believe that relations with our employees are good.

We actively support the training and professional development of our employees. We have established a program at our facility in São
José dos Campos to provide newly graduated engineers with specialized training in aerospace engineering.



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6E. Share Ownership

At December 31, 2015, our board members and Executive Officers owned an aggregate of 261,303 of our common shares. None of the officers or
directors individually owns more than 1% of the outstanding common shares.

See Item 6B.CompensationStock Option
Plan for a description of our stock option plan applicable to our management and employees, including those of our subsidiaries.



|ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
|------- | -------------------------------------------------

7A. Major Shareholders

Shareholders

We have total
authorized capital of 1,000,000,000 shares, with a total aggregate of 740,465,044 common shares, including one special golden share held by the Brazilian federal government, issued and outstanding. The golden share provides the Brazilian
federal government with veto rights in certain specific circumstances. In addition, non-Brazilian shareholders may have their voting rights restricted in certain specific circumstances. See Item 10B. Additional InformationMemorandum and
Articles of AssociationDescription of Capital StockVoting Rights of Shares.

The following table sets forth share
ownership information for each significant shareholder that beneficially owns our equity securities and sets forth the aggregate shareholdings on the São Paulo Stock Exchange and the New York Stock Exchange at December 31, 2015:



|                                              |  |               |             |  |     |  |        | 
|--------------------------------------------- |  | ------------- | ----------- |  | --- |  | ------ | 
|                                              |  | Common Shares |            
|                                              |  | Shares        |             |  | (%) | 
|Oppenheimer Funds(1)                          |  |               | 96,611,874  |  |     |  | 13.05  | 
|Brandes Investment Partners, L.P.(2)          |  |               | 51,065,566  |  |     |  | 6.90   | 
|Baillie Gifford & Co.(3)                      |  |               | 50,923,552  |  |     |  | 6.88   | 
|BNDES Participações S.A.BNDESPAR(4)           |  |               | 39,762,489  |  |     |  | 5.37   | 
|União Federal/Brazilian federal government(5) |  |               | 1           |  |     |  | 0.00   | 
|Shares in company treasury                    |  |               | 3,513,742   |  |     |  | 0.47   | 
|Others                                        |  |               | 498,587,820 |  |     |  | 67.33  | 
|                                              |  |               |             |  |     |  |        | 
|Total                                         |  |               | 740,465,044 |  |     |  | 100.00 | 
|                                              |  |               |             |  |     |  |        | 



|(1) | Oppenheimer Funds is one of the largest asset management companies in the United States, and its controlled affiliates offer a broad range of products and services to individuals, corporations and institutions,
including mutual funds, separately managed accounts, investment management for institutions, hedge fund products, qualified retirement plans and sub-advisory investment-management services.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Brandes Investment Partners, L.P. is a 100% employee-owned independent investment advisory firm founded and co-owned by Charles Howard Brandes. The firm manages the Brandes series of mutual funds in addition to other
funds and caters to individual and institutions.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Baillie Gifford & Co., also known as Baillie Gifford International, L.L.C., is an Edinburgh, Scotland-based independent investment management firm. The firm is 100% owned by its senior partners. The firm
manages the Baillie Gifford series of funds in addition to other funds and caters to individuals and institutions.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(4) | BNDESPAR is a wholly-owned subsidiary of Banco Nacional de Desenvolvimento Econômico e SocialBNDES, the government-owned national development bank of Brazil.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

|(5) | The Brazilian federal government holds our golden share.
|--- | ----------------------------------------------------------

Other than as discussed
in Item 4B. Information on the CompanyHistory and Development of the Company, there have been no significant changes in percentage ownership by any major shareholder in the past three years.

On December 31, 2015, we had approximately 48,000 holders of common shares, including common shares in the form of ADSs. According to the
most accurate information available to us, on December 31, 2015, an aggregate of 107,265,942 common shares in the form of ADSs were held by 143 record holders, including DTC in the United States.



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7B. Related Party Transactions

The Brazilian Federal Government

The
Brazilian federal government, through its direct and indirect stakes in us and its ownership of our golden share, is one of our major shareholders. The issuance of the golden share was a requirement of the regulations
governing our privatization in 1994 and grants the Brazilian federal government veto rights over certain military-related programs and corporate actions (such as transfers of control and changes in our name, logo and corporate purposes). See
Item 10B. Additional InformationMemorandum and Articles of AssociationDescription of Capital StockVoting Rights of SharesGolden Share. As of February 28, 2016, in addition to the golden share, the
Brazilian federal government owned an indirect 5.4% stake in us through the BNDESPAR, a wholly-owned subsidiary of the Banco Nacional do Desenvolvimento Econômico e Social (the Brazilian Development Bank), which, in turn, is controlled by the
Brazilian federal government. As a result, for the purposes of this Form 20-Fs disclosure requirements, we consider transactions between Embraer and the Brazilian federal government or its agencies as falling within the definition of
related party transactions.

The Brazilian government plays an important role in our business activities, including as:



| |  |  | a major customer of our defense products (through the Brazilian Air Force);
| | - |  | ---------------------------------------------------------------------------



| |  |  | a source for research debt financing through technology development institutions such as the FINEP and the BNDES;
| | - |  | -----------------------------------------------------------------------------------------------------------------



| |  |  | an export credit agency (through the BNDES); and
| | - |  | ------------------------------------------------



| |  |  | a source of short-term and long-term financing and a provider of asset management and commercial banking services (through Banco do Brasil).
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------

See Item 5B. Operating and Financial Review and ProspectsLiquidity and Capital ResourcesCredit Facilities and Lines of
Credit, Item 4C. Information on the CompanyBusiness OverviewAircraft Financing Arrangements, Item 3D. Key InformationRisk FactorsRisks Relating to EmbraerAny decrease in Brazilian federal
government-sponsored customer financing, or increase in government-sponsored financing that benefits our competitors, may decrease the cost competitiveness of our aircraft and Item 3D. Key InformationRisk FactorsRisks
Relating to EmbraerThe Brazilian federal government may reduce funds available to our customers under government-sponsored financing programs. For more information regarding our related party transactions, see Note 15 to our audited
consolidated financial statements.

A Major Customer (Brazilian Federal Government)

The Brazilian federal government, principally through the Brazilian Air Force, has been a significant customer of Embraer since its inception.
For the year ended December 31, 2015, the Brazilian federal government, principally through the Brazilian Air Force, accounted for 59.0% or US$479.3 million of the revenue of our Defense & Security segment. In addition, as of
December 31, 2015, the Brazilian Air Force owed us US$ 350.4 million in trade account receivables and had a credit against us of US$ 143.6 million in customer advances. We expect to continue to be the primary source of new aircraft and spare
parts and services for the Brazilian federal government. For a description of our transactions with the Brazilian federal government, see Item 4C. Information on the CompanyBusiness OverviewDefense & Security
Business.

Financing Source

BNDES

We are borrowers under a number of credit facilities from the BNDES, the sole parent of BNDESPAR, one of our significant direct
shareholders and an affiliate of the Brazilian Federal Government. As of December 31, 2015, we had a total outstanding balance of loans borrowed from the BNDES in the aggregate amount of US$475.9 million. For further information on the amounts,
maturity dates and interest rates of the principal loans we have with the BNDES, see Item 5B. Operating and Financial Review and ProspectsLiquidity and Capital ResourcesCredit Facilities and Lines of Credit.





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FINEP

We maintain credit facilities with the FINEP, which as of December 31, 2015 had a total outstanding balance of US$61.5 million. These
loans were extended to us primarily to fund research and development expenses of the Phenom 100 and 300 aircraft and the Legacy 500 aircraft. For further information on the amounts, maturity dates and interest rates of the principal loans we have
with the FINEP, see Item 5B. Operating and Financial Review and ProspectsLiquidity and Capital ResourcesCredit Facilities and Lines of Credit.

Banco do Brasil

Banco do Brasil is a
publicly-listed, state-owned bank controlled by the Brazilian federal government. As of December 31, 2015, we maintained outstanding non-recourse and recourse debt with Banco do Brasil in the total amount of US$320.9 million, which is recorded
as a non-current liability on our statement of financial position. In addition, we maintained outstanding Export Credit Notes with Banco do Brasil in the total amount of US$76.9 million. For further information on the amounts, maturity dates and
interest rates of the principal loans we have with Banco do Brasil, see Item 5B. Operating and Financial Review and ProspectsLiquidity and Capital ResourcesCredit Facilities and Lines of Credit.

Caixa Econômica Federal

Caixa
Econômica Federal is a state-owned bank controlled by the Brazilian federal government. As of December 31, 2015, we maintained outstanding Export Credit Notes with Caixa Econômica Federal in the total amount of US$25.6 million. For
further information on the amounts, maturity dates and interest rates of the principal loans we have with Caixa Econômica Federal, see Item 5B. Operating and Financial Review and ProspectsLiquidity and Capital ResourcesCredit
Facilities and Lines of Credit.

Customer Financing by the BNDES

The Brazilian federal government has been an important source of export financing for our customers through the BNDES-exim program, managed by
the BNDES. Beginning in the second half of 2007, the BNDES started providing financing to our customers on financial terms and conditions which complied with the Aircraft Sector Understanding of the OECD. Brazil has been joined by Canada, the United
States and the European Union, among others, at the OECD, as a participant in the Sector Understanding on Export Credits for Civil Aircraft that aims to assure a level-playing field among the airframe manufacturers and
encourages manufacturers and airlines to focus on price and quality rather than on financial packages provided under government support (see Item 4C. Information on the CompanyBusiness OverviewAircraft Financing
Arrangements).

A Service Provider (Banco do Brasil)

At December 31, 2015, we maintained cash and cash equivalents of US$139.0 million with Banco do Brasil and several of its affiliates. At
that date, we also had deposited with Banco do Brasil an amount of US$320.9 million in cash and cash equivalents, which served as collateral for a loan extended by Banco do Brasil to one of our subsidiaries. Banco do Brasil has been a provider of
regular commercial banking and asset management services to us for many decades. These services include maintaining our checking account and managing exclusive investment funds in which we are the sole investor.



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7C. Interests of Experts and Counsel

Not applicable.

ITEM 
8. FINANCIAL INFORMATION

8A. Consolidated Statements and Other Financial Information

See Item 3A. Key InformationSelected Financial Data.

Legal Proceedings

Labor
Lawsuits. We are defendants in individual labor lawsuits, for which we are awaiting the decision of the Brazilian labor courts. Due to the immaterial amount involved in these legal proceedings, we do not believe that any liabilities related
to these individual labor lawsuits would have a material adverse effect on our financial condition or results of operations. See Note 23 and Note 26 of our audited consolidated financial statements for a further discussion of our labor lawsuits.

Tax Matters. We have challenged the constitutionality of certain Brazilian taxes and payroll charges, as well as
modifications and the increases in the rates and basis of calculation of such taxes and charges and have obtained writs of mandamus or injunctions to avoid their payments or recover past payments.

Interest on the total amount of unpaid taxes and payroll charges accrues monthly based on the Selic rate, the key lending rate of the Central
Bank, and we make an accrual to the interest income (expenses), net item of our statements of income. As of December 31, 2015, there was a US$48 million provision recorded as a liability (taxes and payroll charges) on our statement of financial
position in connection with litigation contingencies that we classify as representing probable losses to us. See Note 23 and Note 26 of our audited consolidated financial statements for a further discussion of these challenges.

SEC/DOJ Investigation.

In September, 2010, we received a subpoena from the Securities and Exchange Commission, or SEC, and associated inquiries from the U.S.
Department of Justice, or DOJ, concerning possible non-compliance with the U.S. Foreign Corrupt Practices Act, or FCPA, in relation to certain aircraft sales outside of Brazil. In response, we retained outside counsel to conduct an internal
investigation of sales in three countries.

In light of additional information, we voluntarily expanded the scope of the internal
investigation to include sales in other countries, reported on these matters to the SEC and the DOJ and otherwise cooperated with them. The U.S. government inquiries, related inquiries and developments in other countries and the Companys
internal investigation are continuous and we will continue to cooperate with the governmental authorities, as circumstances may require. We have begun discussions with the DOJ for a possible resolution of the allegations of non-compliance with the
FCPA. A resolution of the U.S. government inquiries, and related inquiries, proceedings and developments in other countries would result in fines, which may be substantial, and possibly other substantial sanctions and adverse consequences. Based
upon the opinion of its outside counsel, we believe that there is no adequate basis at this time for estimating accruals or quantifying any contingency with respect to these matters.





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In light of the above, we embarked on a comprehensive effort to improve and expand our compliance
program worldwide. This multi-year task involved reexamining every aspect of our compliance systems, and where appropriate, redesigning or adding to them. Some of the key enhancements include the creation of a Compliance Department, the appointment
of a Chief Compliance Officer reporting directly to the Risk and Audit Committee of the Board of Directors, the development of a program to monitor engagement of and payments to third parties, improvements to compliance policies, procedure and
controls, the enhancement of anonymous and other reporting channels, and the development of a comprehensive training and education program designed to maintain and reinforce a strong compliance culture at all levels of Embraer globally. We will
continue to promote enhancements and update its compliance program.

Other Proceedings. In addition, we are involved in
other legal proceedings, including tax disputes, all of which are in the ordinary course of business.

Our management does not believe
that any of our proceedings, if adversely determined, would materially or adversely affect our business, financial condition or results of operations. See Note 23 and Note 26 of our audited financial statements.

Dividends and Dividend Policy

Amounts Available
for Distribution

At each annual shareholders meeting, the Board of Directors is required to recommend how net profits for
the preceding fiscal year are to be allocated. For purposes of the Brazilian Corporate Law, net profits are defined as net income after income taxes and social contribution taxes for such fiscal year, net of any accumulated losses from prior fiscal
years and any amounts allocated to employees and managements participation in our profits, determined under IFRS. In accordance with the Brazilian Corporate Law and our bylaws, the amounts available for dividend distribution are the
amounts determined under IFRS in our parent company financial statements. Such amount for distribution is equal to our net income after taxes less any amounts allocated from such net income after taxes to:



| |  |  | the legal reserve;
| | - |  | ------------------



| |  |  | a contingency reserve for anticipated losses; and
| | - |  | -------------------------------------------------



| |  |  | an unrealized revenue reserve.
| | - |  | ------------------------------

For further information on amounts available for
distributions, see Note 29 to our audited consolidated financial statements.

We are required to maintain a legal reserve, to which we
must allocate 5% of net profits for each fiscal year until the amount for such reserve equals 20% of our paid-in capital. However, we are not required to make any allocations to our legal reserve in respect of any fiscal year in which it, when added
to our other established capital reserves, exceeds 30% of our capital. Net losses, if any, may be charged against the legal reserve. The balance of our legal reserve was US$3.1 million, which was equal to 0.002% of our paid-in capital at
December 31, 2015.

The Brazilian Corporate Law also provides for two additional, discretionary allocations of net profits that are
subject to approval by the shareholders at the annual meeting. First, a percentage of net profits may be allocated to a contingency reserve for anticipated losses that are deemed probable in future years. Any amount so allocated in a prior year must
be either reversed in the fiscal year in which the loss was anticipated if such loss does not in fact occur, or written off in the event that the anticipated loss occurs. Second, if the amount of unrealized revenue exceeds the sum of:



| |  |  | the legal reserve;
| | - |  | ------------------



| |  |  | the investment and working capital reserve;
| | - |  | -------------------------------------------



| |  |  | retained earnings; and
| | - |  | ----------------------



| |  |  | the contingency reserve for anticipated losses,
| | - |  | -----------------------------------------------





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Such excess amount may be allocated to an unrealized revenue reserve. Under the Brazilian
Corporate Law, unrealized revenue is defined as the sum of:



| |  |  | price-level restatement of statement of financial position accounts;
| | - |  | --------------------------------------------------------------------



| |  |  | the share of equity earnings of affiliated companies; and
| | - |  | ---------------------------------------------------------



| |  |  | profits from installment sales to be received after the end of the next succeeding fiscal year.
| | - |  | -----------------------------------------------------------------------------------------------

According to our bylaws and subject to shareholder approval, our Board of Directors may allocate to an investment and working capital reserve
up to 75% of our parent company adjusted net income after taxes under IFRS. The reserve may not exceed 80% of our capital. The purpose of the investment and working capital reserve is to make investments in fixed assets or increase our working
capital. This reserve may also be used to amortize our debts. We may also grant a participation in our net income to our management and employees. However, the allocation to the investment and working capital reserve or the participation of our
management and employees cannot reduce the mandatory distributable amount (discussed below). Otherwise, the amount in excess of our capital must be used to increase our capital or be distributed as a cash dividend. The balance of the investment and
working capital reserve may be used:



| |  |  | in the deduction of accumulated losses, whenever necessary;
| | - |  | -----------------------------------------------------------



| |  |  | in the distribution of dividends, at any time;
| | - |  | ----------------------------------------------



| |  |  | in the redemption, withdrawal, purchase or open market repurchase of shares, as authorized by law; and
| | - |  | ------------------------------------------------------------------------------------------------------



| |  |  | to increase our capital, including by means of an issuance of new shares.
| | - |  | -------------------------------------------------------------------------

The amounts
available for distribution may be further increased by a reversion of the contingency reserve for anticipated losses constituted in prior years but not realized, or further increased or reduced as a result of the allocations of revenues to or from
the unrealized revenue reserve. The amounts available for distribution are determined on the basis of financial statements prepared in accordance with the Brazilian Corporate Law method. We have no such contingency reserve.

At December 31, 2015, unappropriated retained earnings of R$3,549.3 million (equivalent to US$2,224.7 million) were recorded in our
statutory parent company books under IFRS. At December 31, 2015, such amounts are net of minimum dividends and interest on shareholders equity paid or payable, as determined by the Brazilian Corporate Law.

For further dividends information, see Note 29 to our audited consolidated financial statements.

Mandatory Distribution

The
Brazilian Corporate Law generally requires that the bylaws of each Brazilian corporation specify a minimum percentage of the amounts available for distribution by such corporation for each fiscal year that must be distributed to shareholders as
dividends, also known as the mandatory distributable amount. Under our bylaws, the mandatory distribution is based on a percentage of adjusted net income, not lower than 25%, rather than a fixed monetary amount per share. The Brazilian Corporate
Law, however, permits a publicly held company, such as Embraer, to suspend the mandatory distribution of dividends if the Board of Directors and report of the fiscal council to the shareholders meeting indicate that the distribution would be
inadvisable in view of Embraers financial condition. This suspension is subject to approval of holders of common shares. In this case, the Board of Directors shall file a justification for such suspension with the CVM. Profits not distributed
by virtue of the suspension mentioned above shall be attributed to a special reserve and, if not absorbed by subsequent losses, shall be paid as dividends as soon as the financial condition of such company permits such payments.





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Payment of Dividends

We are required by the Brazilian Corporate Law and by our bylaws to hold an annual shareholders meeting by the end of the fourth month
after the end of each fiscal year at which, among other things, the shareholders have to decide on the payment of an annual dividend. The payment of annual dividends is based on our parent company financial statements prepared under IFRS for the
relevant fiscal year. Brazilian companies like us are permitted to make a special distribution to shareholders referred to as interest on shareholders equity, which may be distributed in lieu of dividends as part of the mandatory distributable
amount. Such payments of interest on shareholders equity are treated as a tax-deductible expense for Brazilian income and social contribution tax purposes. Under the Brazilian Corporate Law, dividends generally are required to be paid within
60 days following the date the dividend was declared, unless a shareholders resolution sets forth another date of payment, which, in either case, must occur prior to the end of the fiscal year in which the dividend was declared. A shareholder
has a three-year period from the dividend payment date to claim dividends (or interest payments) in respect of its shares, after which the amount of the unclaimed dividends reverts to us.

The Brazilian Corporate Law permits a company to pay interim dividends out of preexisting and accumulated profits determined under IFRS for
the preceding fiscal year or semester, based on financial statements approved by its shareholders. According to our bylaws, the shareholders may declare, at any time, interim dividends based on the preexisting and accumulated profits, provided the
mandatory dividend has already been distributed to the shareholders. Our bylaws also permit us to prepare financial statements semiannually and for shorter periods. Our Board of Directors may approve the distribution of dividends calculated with
reference to those financial statements, even before they have been approved by the shareholders. However, such dividends cannot exceed the amount of capital reserves.

In general, shareholders who are not residents of Brazil must register with the Central Bank to have dividends, sales proceeds or other
amounts with respect to their shares eligible to be remitted outside of Brazil. The common shares underlying our ADSs will be held in Brazil by Banco Itaú S.A., also known as the custodian, as agent for the depositary, which will be the
registered owner on the records of the registrar for our shares. Our current registrar is Banco Itaú S.A. The depositary electronically registers the common shares underlying our ADSs with the Central Bank and, therefore, is able to have
dividends, sales proceeds or other amounts with respect to these shares eligible to be remitted outside Brazil.

Payments of cash
dividends and distributions, if any, will be made in Brazilian currency to the custodian on behalf of the depositary, which will then convert such proceeds into U.S. dollars and will cause such U.S. dollars to be delivered to the depositary for
distribution to holders of ADSs. Under current Brazilian law, dividends paid to shareholders who are not Brazilian residents, including holders of ADSs, will not be subject to Brazilian withholding income tax, except for dividends declared based on
profits generated prior to December 31, 1995. See Item 10E. Additional InformationTaxationMaterial Brazilian Tax Consequences.

History of Dividend and Interest on Shareholders Equity Payments and Dividend Policy

Law No. 9,249, dated December 26, 1995, as amended, provides for distribution of interest on shareholders equity as an
alternative form of payment to shareholders and treats those payments as a deductible expense for purposes of calculating Brazilian corporate income tax and social contribution on net profits. These distributions may be paid in cash. Such interest
is limited to the daily pro rata variation of the TJLP and cannot exceed the greater of:



| |  |  | 50% of net income (after the deduction of social contribution on net profits, but before taking into account the provision for corporate income tax and the amounts attributable to shareholders as net interest on
shareholders equity) for the period in respect of which the payment is made; or
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | 50% of the sum of retained profits and profit reserves as of the beginning of the period in respect of which the payment is made.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------

Any payment of interest on shareholders equity to holders of ADSs or common shares, whether or not they are Brazilian residents, is
subject to Brazilian withholding income tax at the rate of 15% or 25% if the beneficiary is resident in a tax haven jurisdiction, that is, a country or location that does not impose any income tax or which imposes such tax at a maximum rate of less
than 20%, or in which the domestic legislation imposes restrictions on the disclosure of the shareholding composition or the ownership of the investment (Tax Haven Holder). See Item 10E. Additional
InformationTaxationMaterial Brazilian Tax Consequences. The amount paid to shareholders as interest on shareholders equity, net of any withholding tax, may be included as part of any mandatory distributable amount.



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Under Brazilian law, we are obligated to distribute to shareholders an amount sufficient to
ensure that the net amount received by them, after payment by us of applicable Brazilian withholding taxes in respect of the distribution of interest on shareholders equity, plus the amount of declared dividends, is at least equal to the
mandatory distributable amount. When we distribute interest on net worth, and that distribution is not accounted for as part of the mandatory distribution, Brazilian withholding tax will apply. All payments to date were accounted for as part of the
mandatory distribution.

The following table sets forth the historical payments of dividends and historical payments of interest on
shareholders equity we have made to our shareholders:



|                         |  |                                        |  |                              |       |  |                      |  |      | 
|------------------------ |  | -------------------------------------- |  | ---------------------------- | ----- |  | -------------------- |  | ---- | 
|Date of Approval         |  | Period in which Profits were Generated |  | Total Amount of Distribution |      
|                         |  |                                        |  | (in R$ millions)             |       |  | (in US$ millions)(1) | 
|April 19, 2010(3)        |  | Full year of 2009                      |  |                              | 55.2  |  |                      |  | 31.7 | 
|June 10, 2010(2)         |  | First quarter of 2010                  |  |                              | 34.5  |  |                      |  | 19.2 | 
|September 16, 2010(2)    |  | Third quarter of 2010                  |  |                              | 21.7  |  |                      |  | 12.8 | 
|December 9, 2010(2)(4)   |  | Fourth quarter of 2010                 |  |                              | 144.7 |  |                      |  | 86.9 | 
|March 16, 2011(3)        |  | First quarter of 2011                  |  |                              | 43.4  |  |                      |  | 26.7 | 
|June 9, 2011(3)          |  | Second quarter of 2011                 |  |                              | 72.4  |  |                      |  | 46.4 | 
|September 4, 2011(3)     |  | Third quarter of 2011                  |  |                              | 65.1  |  |                      |  | 35.1 | 
|June 14, 2012(2)         |  | First semester of 2012                 |  |                              | 65.3  |  |                      |  | 32.3 | 
|September 13, 2012(2)    |  | Third quarter of 2012                  |  |                              | 50.8  |  |                      |  | 25.0 | 
|December 6, 2012(2)(5)   |  | Fourth quarter of 2012                 |  |                              | 36.3  |  |                      |  | 17.8 | 
|April 25, 2013(3)        |  | Full year of 2012                      |  |                              | 30.1  |  |                      |  | 15.0 | 
|March 11, 2013(2)        |  | First quarter of 2013                  |  |                              | 29.1  |  |                      |  | 14.4 | 
|June 13, 2013(2)         |  | Second quarter of 2013                 |  |                              | 29.1  |  |                      |  | 13.2 | 
|September 12 ,2013(2)    |  | Third quarter of 2013                  |  |                              | 29.2  |  |                      |  | 13.1 | 
|December 5, 2013(2)(6)   |  | Fourth quarter of 2013                 |  |                              | 65.8  |  |                      |  | 28.1 | 
|April 16, 2014(3)        |  | Full year of 2013                      |  |                              | 49.0  |  |                      |  | 20.9 | 
|March 11, 2014(2)        |  | First quarter of 2014                  |  |                              | 36.6  |  |                      |  | 16.2 | 
|June 10, 2014(2)         |  | Second quarter of 2014                 |  |                              | 36.7  |  |                      |  | 16.7 | 
|September 11, 2014(2)    |  | Third quarter of 2014                  |  |                              | 36.7  |  |                      |  | 14.9 | 
|December 4, 2014(2)(6)   |  | Fourth quarter of 2014                 |  |                              | 88.2  |  |                      |  | 33.1 | 
|April 15, 2015(3)        |  | Full year of 2014                      |  |                              | 16.1  |  |                      |  | 6.1  | 
|March 03, 2015(2)        |  | First quarter of 2015                  |  |                              | 29.4  |  |                      |  | 9.2  | 
|June 11, 2015(2)         |  | Second quarter of 2015                 |  |                              | 29.4  |  |                      |  | 9.5  | 
|August 06, 2015(2)       |  | Third quarter of 2015                  |  |                              | 29.4  |  |                      |  | 8.3  | 
|December 10, 2015(2) (7) |  | Fourth quarter of 2015                 |  |                              | 29.5  |  |                      |  | 7.5  | 



|(1) | Translated from nominal reais into U.S. dollars at the selling exchange rates in effect on the last date of the month in which the dividends were approved.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Represents interest on shareholders equity.
|--- | --------------------------------------------

|(3) | Represents dividend payments.
|--- | -----------------------------

|(4) | Amount declared in 2010 but paid in 2011.
|--- | -----------------------------------------

|(5) | Amount declared in 2012 but paid in 2013.
|--- | -----------------------------------------

|(6) | Amount declared in 2013 but paid in 2014.
|--- | -----------------------------------------

|(7) | Amount declared in 2015 but paid in 2016.
|--- | -----------------------------------------

In 2015, we distributed US$34.5 million in interest
on shareholders equity in connection with profits generated in the year ended December 31, 2015. No dividends were approved for 2015. Our Board of Directors declared interest on shareholders equity with respect to profits generated
during the first half of 2015, the third quarter of 2015 and the fourth quarter of 2015 (see Item 8A. Financial InformationMandatory Distribution).

We intend to declare and pay dividends and/or interest on shareholders equity, as required by the Brazilian Corporate Law and our
bylaws. Our Board of Directors may approve the distribution of dividends and/or interest on shareholders equity, calculated based on our semiannual or quarterly financial statements. The declaration of annual dividends, including dividends in
excess of the mandatory distribution, requires approval by the vote of the majority of the holders of our common stock. The amount of any distributions will depend on many factors, such as our results of operations, financial condition, cash
requirements, prospects and other factors deemed relevant by our Board of Directors and shareholders. Within the context of our tax planning, we may in the future continue to determine that it is to our benefit to distribute interest on
shareholders equity.



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8B. Significant Changes

No significant changes or events have occurred after the close of the statement of financial position date at December 31, 2015, other
than the events already described in this annual report, including the provisions relating to Republics Chapter 11 filing.



|ITEM 9. | THE OFFER AND LISTING
|------- | ---------------------

9A. Offer and Listing Details

Our ADSs are listed on the New York Stock Exchange, or NYSE, under the symbol ERJ. In addition, our common shares are traded on the
São Paulo Stock Exchange under the symbol EMBR3. Each ADS represents four common shares.

The reported high and low
closing prices in U.S. dollars for the ADSs on the NYSE for the periods indicated are set forth in the following table. Our ADSs began trading on the NYSE on June 5, 2006, with each ADS representing four common shares issued by us.



|                  |  |                              |       |  |     |  |       | 
|----------------- |  | ---------------------------- | ----- |  | --- |  | ----- | 
|                  |  | Price in U.S. dollarsper ADS |      
|                  |  | High                         |       |  | Low | 
|2010              |  |                              |       |  |     |  |       | 
|Year              |  |                              | 31.25 |  |     |  | 20.01 | 
|2011              |  |                              |       |  |     |  |       | 
|Year              |  |                              | 35.27 |  |     |  | 21.40 | 
|2012              |  |                              |       |  |     |  |       | 
|Year              |  |                              | 35.29 |  |     |  | 23.06 | 
|2013              |  |                              |       |  |     |  |       | 
|First quarter     |  |                              | 35.67 |  |     |  | 26.80 | 
|Second quarter    |  |                              | 38.58 |  |     |  | 32.35 | 
|Third quarter     |  |                              | 39.22 |  |     |  | 31.74 | 
|Fourth quarter    |  |                              | 35.33 |  |     |  | 29.36 | 
|Year              |  |                              | 39.22 |  |     |  | 26.80 | 
|2014              |  |                              |       |  |     |  |       | 
|First quarter     |  |                              | 36.48 |  |     |  | 29.86 | 
|Second quarter    |  |                              | 37.80 |  |     |  | 33.59 | 
|Third quarter     |  |                              | 39.97 |  |     |  | 36.87 | 
|Fourth quarter    |  |                              | 39.21 |  |     |  | 34.33 | 
|Year              |  |                              | 39.97 |  |     |  | 29.86 | 
|2015              |  |                              |       |  |     |  |       | 
|First quarter     |  |                              | 37.04 |  |     |  | 30.20 | 
|Second quarter    |  |                              | 32.65 |  |     |  | 29.65 | 
|Third quarter     |  |                              | 30.90 |  |     |  | 24.22 | 
|Fourth quarter    |  |                              | 31.99 |  |     |  | 25.53 | 
|Year              |  |                              | 37.04 |  |     |  | 24.22 | 
|Month ended:      |  |                              |       |  |     |  |       | 
|October 31, 2015  |  |                              | 29.37 |  |     |  | 25.53 | 
|November 30, 2015 |  |                              | 31.80 |  |     |  | 28.92 | 
|December 31, 2015 |  |                              | 31.99 |  |     |  | 28.56 | 
|January 31, 2016  |  |                              | 29.33 |  |     |  | 25.79 | 
|February 29, 2016 |  |                              | 30.34 |  |     |  | 27.37 | 



100



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The tables below set forth, for the periods indicated, the reported high and low closing prices
in nominal reais for the common shares on the São Paulo Stock Exchange. Our common shares began trading on the Novo Mercado segment of the São Paulo Stock Exchange on June 5, 2006.



|                  |  |                             |       |  |     |  |       | 
|----------------- |  | --------------------------- | ----- |  | --- |  | ----- | 
|                  |  | Nominalreaispercommon share |      
|                  |  | High                        |       |  | Low | 
|2011              |  |                             |       |  |     |  |       | 
|Year-end          |  |                             | 14.30 |  |     |  | 8.54  | 
|2012              |  |                             |       |  |     |  |       | 
|Year              |  |                             | 16.53 |  |     |  | 11.74 | 
|2013              |  |                             |       |  |     |  |       | 
|First quarter     |  |                             | 18.00 |  |     |  | 13.77 | 
|Second quarter    |  |                             | 21.25 |  |     |  | 16.01 | 
|Third quarter     |  |                             | 21.70 |  |     |  | 17.82 | 
|Fourth quarter    |  |                             | 19.05 |  |     |  | 16.35 | 
|Year              |  |                             | 21.70 |  |     |  | 13.77 | 
|2014              |  |                             |       |  |     |  |       | 
|First quarter     |  |                             | 21.15 |  |     |  | 18.27 | 
|Second quarter    |  |                             | 21.07 |  |     |  | 18.62 | 
|Third quarter     |  |                             | 24.15 |  |     |  | 20.44 | 
|Fourth quarter    |  |                             | 25.26 |  |     |  | 21.10 | 
|Year              |  |                             | 25.26 |  |     |  | 18.27 | 
|2015              |  |                             |       |  |     |  |       | 
|First quarter     |  |                             | 26.26 |  |     |  | 21.23 | 
|Second quarter    |  |                             | 25.20 |  |     |  | 22.45 | 
|Third quarter     |  |                             | 26.42 |  |     |  | 21.78 | 
|Fourth quarter    |  |                             | 30.40 |  |     |  | 25.08 | 
|Year              |  |                             | 30.40 |  |     |  | 21.23 | 
|Month ended:      |  |                             |       |  |     |  |       | 
|October 31, 2015  |  |                             | 28.28 |  |     |  | 25.08 | 
|November 30, 2015 |  |                             | 30.40 |  |     |  | 27.39 | 
|December 31, 2015 |  |                             | 30.19 |  |     |  | 28.40 | 
|January 31, 2016  |  |                             | 29.32 |  |     |  | 26.90 | 
|February 29, 2016 |  |                             | 30.20 |  |     |  | 27.26 | 

On March 24, 2016, the closing sale price for our common shares on the São Paulo Stock Exchange
was R$23.66, which is equivalent to US$25.61 per ADS. On the same date, the closing sale price for our ADSs on the NYSE was US$25.56. The ADSs are issued under a deposit agreement and JPMorgan Chase Bank serves as depositary under that agreement.



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9B. Plan of Distribution

Not applicable.

9C. Markets

Trading on the
São Paulo Stock Exchange

In 2000, the São Paulo Stock Exchange was reorganized through the execution of memoranda of
understanding by the Brazilian stock exchanges. Under the memoranda, all securities are now traded only on the São Paulo Stock Exchange, with the exception of electronically traded public debt securities and privatization auctions, which are
traded on the Rio de Janeiro Stock Exchange.

The common shares are listed and traded on the Novo Mercado segment of the São
Paulo Stock Exchange. Trades in our common shares on the São Paulo Stock Exchange settle in three business days after the trade date. Delivery of and payment for shares is made through the facilities of the CBLCCompanhia Brasileira
de Liquidação e Custódia (clearinghouse for the São Paulo Stock Exchange), which maintains accounts for member brokerage firms.

In order to better control volatility, the São Paulo Stock Exchange adopted a circuit breaker system pursuant to which
trading sessions may be suspended for a period of 30 minutes or one hour whenever the indices of this stock exchange fall below the limit of 10% and 15%, respectively, in relation to the closing value of the index registered in the previous trading
session.

The São Paulo Stock Exchange is less liquid than the NYSE and other major exchanges in the world. The São Paulo
Stock Exchange had an aggregate market capitalization of approximately R$1.91 trillion, equivalent to US$0.49 trillion at December 31, 2015. In comparison, the NYSE had a market capitalization of approximately US$ 17.8 trillion on the same
date. Although any of the outstanding shares of a listed company may trade on the São Paulo Stock Exchange, in most cases less than one-half of the listed shares are actually available for trading by the public, the remainder being held by
small groups of controlling persons, by governmental entities or by one principal shareholder. At December 31, 2015, we accounted for approximately 1.2 % of the market capitalization of all listed companies on the São Paulo Stock
Exchange.

There is also significantly greater concentration in the Brazilian securities markets than in the NYSE or other major
exchanges. During the one-year period ended December 31, 2015, the ten largest companies listed on the São Paulo Stock Exchange represented approximately 41.44% of the total market capitalization of all listed companies.

Trading on the São Paulo Stock Exchange by non-residents of Brazil is subject to limitations under Brazilian foreign
investment legislation.

Novo Mercado Corporate Governance Practices

In 2000, the São Paulo Stock Exchange introduced three special listing segments, known as Levels 1 and 2 of Differentiated Corporate
Governance Practices and the Novo Mercado, aiming at fostering a secondary market for securities issued by Brazilian companies with securities listed on the São Paulo Stock Exchange, by prompting such companies to follow good practices
of corporate governance. The listing segments were designed for the trading of shares issued by companies voluntarily undertaking to abide by corporate governance practices and disclosure requirements in addition to those already imposed by
Brazilian law. These rules generally increase shareholders rights and enhance the quality of information provided to shareholders.

To become a Level 1 (Nível 1) company, in addition to the obligations imposed by current Brazilian law, an issuer must agree
to (a) ensure that shares of the issuer representing 25% of its total capital are effectively available for trading, (b) adopt offering procedures that favor widespread ownership of shares whenever making a public offering,
(c) comply with minimum quarterly disclosure standards, (d) follow stricter disclosure policies, with regards to contracts with related parties, material contracts and transactions made by controlling shareholders, directors and officers
involving securities issued by the issuer, (e) submit any existing shareholders agreements and stock option plans to the São Paulo Stock Exchange, and (f) make a schedule of corporate events available to shareholders.





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To become a Level 2 (Nível 2) company, in addition to the obligations imposed by
current Brazilian law, an issuer must agree to (a) comply with all of the listing requirements for Level 1 companies, (b) grant tag-along rights for all shareholders in connection with a transfer of control of the company, offering the
same price paid per share for controlling block common shares and 80% of the price paid per share of controlling block preferred shares, (c) grant voting rights to holders of preferred shares in connection with certain corporate restructurings
and related party transactions, such as (1) any transformation of the company into another corporate form, (2) any merger, consolidation or spin-off of the company, (3) approval of any transactions between the company and its
controlling shareholder, including parties related to the controlling shareholder, (4) approval of any valuation of assets to be delivered to the company in payment for shares issued in a capital increase, (5) appointment of an expert firm
to ascertain the fair value of the company in connection with any deregistration and delisting tender offer, and (6) any changes to these voting rights, (d) have a Board of Directors composed of at least five members, of which 20% must be
independent directors, with a term limited to two years, (e) prepare annual financial statements in English, including cash flow statements, in accordance with international accounting standards, such as U.S. GAAP or IFRS, (f) if it elects
to delist from the Level 2 segment, hold a tender offer by the companys controlling shareholder (the minimum price of the shares to be offered will be determined by an appraisal process), and (g) adhere exclusively to the rules of the
São Paulo Stock Exchange Arbitration Chamber for resolution of disputes between the company and its investors.

To be
listed on the Novo Mercado, an issuer must meet all of the requirements described above, in addition to (a) issuing only voting shares and (b) granting tag-along rights for all shareholders in connection with a transfer of
control of the company, offering the same price paid per share for controlling block common shares. Our shares are listed on the Novo Mercado segment.

Regulation of Brazilian Securities Markets

The Brazilian securities markets are regulated by the CVM, which has regulatory authority over stock exchanges and the securities markets
generally, and by the Central Bank, which has, among other powers, licensing authority over brokerage firms and regulates foreign investment and foreign exchange transactions.

Under the Brazilian Corporate Law, a corporation is either public (companhia aberta), like us, or closely held
(companhia fechada). All public companies, including us, are registered with the CVM and are subject to reporting requirements. Our shares are listed and traded on the Novo Mercado segment of the São Paulo Stock
Exchange and may be traded privately subject to limitations.

We have the option to ask that trading in our securities on the
São Paulo Stock Exchange be suspended in anticipation of a material announcement. Trading may also be suspended on the initiative of the São Paulo Stock Exchange or the CVM, among other reasons, based on or due to a belief that the
company has provided inadequate information regarding a material event or has provided inadequate responses to the inquiries by the CVM or the São Paulo Stock Exchange.

Trading on the São Paulo Stock Exchange by non-residents of Brazil is subject to limitations under Brazilian foreign investment and tax
legislation. The Brazilian custodian for our common shares and the depositary for our ADSs have obtained an electronic certificate of registration from the Central Bank to remit U.S. dollars abroad for payments of dividends, any other cash
distributions, or upon the disposition of the shares and sales proceeds thereto. In the event that a holder of ADSs exchanges ADSs for common shares, the holder will be entitled to continue to rely on the depositarys electronic certificate of
registration for five business days after the exchange. Thereafter, the holder may not be able to obtain and remit U.S. dollars abroad upon the disposition of the common shares, or distributions relating to the common shares, unless the holder
obtains a new electronic certificate of registration or registers its investment in the common shares under Resolution No. 2,689.



103



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Disclosure Requirements

Pursuant to CVM Rule No. 358, of January 3, 2002, the CVM revised and consolidated the requirements regarding the disclosure and use
of information related to material facts and acts of publicly held companies, including the disclosure of information on the trading and acquisition of securities issued by publicly held companies.

These requirements include provisions that:



| |  |  | establish the concept of a material fact that gives rise to reporting requirements. Material facts include decisions made by the controlling shareholders, resolutions of the general meeting of shareholders and of
management of the company, or any other facts related to the companys business (whether occurring within the company or otherwise somehow related thereto) that may influence the price of its publicly traded securities, or the decision of
investors to trade such securities or to exercise any of such securities underlying rights;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | specify examples of facts that are considered to be material, which include, among others, the execution of shareholders agreements providing for the transfer of control, the entry or withdrawal of shareholders
that maintain any managing, financial, technological or administrative function with or contribution to the company, and any corporate restructuring undertaken among related companies;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | oblige the investor relations officer, controlling shareholders, other officers, directors, members of the audit committee and other advisory boards to disclose material facts;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | require simultaneous disclosure of material facts to all markets in which the corporations securities are admitted for trading;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------



| |  |  | require the acquirer of a controlling stake in a corporation to publish material facts, including its intentions as to whether or not to de-list the corporations shares, within one year;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | establish rules regarding disclosure requirements in the acquisition and disposal of a material stockholding stake; and
| | - |  | -----------------------------------------------------------------------------------------------------------------------



| |  |  | restrict the use of insider information.
| | - |  | ----------------------------------------

9D. Selling Shareholders

Not applicable.

9E. Dilution

Not applicable.

9F. Expenses of the Issue

Not applicable.

ITEM 
10. ADDITIONAL INFORMATION

10A. Share Capital

Not applicable.

10B. Memorandum and Articles of Association

Set forth below is certain information concerning our capital stock, and a brief summary of certain significant provisions of our bylaws, the
Brazilian Corporate Law, the relevant rules and regulations of the CVM, and the relevant rules of the Novo Mercado applicable to our capital stock. This description does not purport to be complete and is qualified by reference to our bylaws
and to Brazilian law.



104



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Corporate Purpose

We are corporation duly incorporated with a principal place of business and jurisdiction in the city of São José dos Campos,
São Paulo, Brazil, governed mainly by our bylaws and the Brazilian Corporate Law. Our corporate purpose, as stated in our bylaws, is to (1) design, build and market aircraft and aerospace materials and related accessories, components and
equipment, according to the highest standards of technology and quality, (2) perform and carry out technical activities related to the manufacturing and servicing of aerospace materials, (3) contribute to the training of technical
personnel as necessary for the aerospace industry, (4) engage in other technological, manufacturing and business activities in connection with the aerospace industry, and to provide services therefore, (5) design, build and trade
equipment, materials, systems, software, accessories and components for the defense, security and energy industries, as well as to perform and carry out technical activities related to such manufacturing and maintenance activities, according to the
highest standards of technology and quality, and (6) perform other technological, manufacturing and trade activities and services related to the defense, security and energy industries.

Description of Capital Stock

General

As of December 31, 2015, our capital stock consisted of a total of 740,465,044 common shares, without par value, including 3,513,740
common shares held in treasury and one special class of common share known as the golden share, held by the Brazilian federal government. Our bylaws authorize the Board of Directors to increase the capital stock up to 1,000,000,000
common shares without seeking specific shareholder approval. All our outstanding shares are fully paid. Our shareholders must approve at a shareholders meeting any capital increase that exceeds the above-referenced authorized amounts. Our
shareholders are not liable for further capital calls. Their liability is limited to the amount of any portion of our capital which they have subscribed but not fully paid in.

Share Buyback

Pursuant to our
bylaws, our Board of Directors approved on December 7, 2007 a share buyback program for our common shares, in compliance with Instrução CVM No. 10/80, for the purpose of adding value to our shareholders through the management
of our capital structure. We were authorized to buy back up to an aggregate of 16,800,000 common shares, representing approximately 2.3% of our outstanding capital, which totaled 740,465,044 common shares outstanding. The acquisition of the
shares was made on the São Paulo Stock Exchange and the common shares bought back will be kept in treasury form, and the treasury shares would not have any political or economic rights. The program was terminated on March 31, 2008.
A total of 16,800,000 shares were purchased at an average price of R$19.06 per share. See Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers.

On March 10, 2016, our Board of Directors approved a new share buyback program for our common shares, in compliance with
Instrução CVM No. 10/80. We were authorized to buy back up to an aggregate of 3,000,000 common shares, representing approximately 0.4% of our outstanding capital, which totaled 737,439,054 common shares outstanding on
March 10, 2016.

Common Shares

Each common share entitles the holder thereof to one vote at our annual and special shareholders meetings. Pursuant to our bylaws and the
São Paulo Stock Exchange listing agreement in connection with the listing of our shares on the Novo Mercado, we cannot issue shares without voting rights or with restricted voting rights.

The Brazilian Corporate Law and our bylaws require that all our shareholders meetings be called by publication of a notice in the
Diário Oficial do Estado de São Paulo (official government publication of the State of São Paulo), and in a newspaper of general circulation in the city in which our principal place of
business is located, currently the O Valein São José dos Campos, at least 30 days prior to the meeting, and in another newspaper of general circulation in São Paulo, where the
São Paulo Stock Exchange is located, currently the Valor Econômico. The quorum to hold general meetings of our shareholders at first call is the presence of shareholders representing 35% of the common shares; at second
call the meetings can be held with the presence of shareholders representing 25% of the common shares; and at third call the meeting can be held with the presence of any number of shareholders.



105



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According to our by-laws, in order to attend a shareholders meeting, a shareholder must
show the ownership of the shares it intends to vote by showing an identification document and a proof of share ownership. Our shareholders may be represented at shareholders meetings by (1) a proxy, issued within a one-year period prior
to the meeting, (2) one of our directors or officers, (3) a lawyer or (4) a financial institution. Investment funds must be represented by their administrator.

According to the Brazilian Corporate Law, the common shares are entitled to dividends in proportion to their share of the amount available for
distribution. See Item 8A. Financial InformationConsolidated Statements and Other Financial InformationDividends and Dividend Policy for a more complete description of payment of dividends on our shares. In addition, upon any
liquidation of the company, the common shares are entitled to return of capital in proportion to their share of our net worth.

According
to the Brazilian Corporate Law, neither our bylaws nor actions taken at a shareholders meeting may deprive a shareholder of the following rights:



| |  |  | the right to participate in the distribution of profits;
| | - |  | --------------------------------------------------------



| |  |  | the right to participate equally and proportionally in any remaining residual assets in the event of liquidation of the company;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------



| |  |  | preemptive rights in the event of issuance of shares, convertible debentures or warrants, except in some specific circumstances under Brazilian law described in Item 10D.Preemptive Rights;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the right to supervise our management in accordance with Article 109 of the Brazilian Corporate Law; and
| | - |  | --------------------------------------------------------------------------------------------------------



| |  |  | the right to appraisal rights in the cases specified in the Brazilian Corporate Law, which are described in Item 10D.Redemption and Right of Withdrawal.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

Golden Share

The golden share is held by
the Federative Republic of Brazil. For a discussion of the rights to which the golden share is entitled, see Item 10B.Voting Rights of SharesGolden Share.

Voting Rights of Shares

Each share of
common stock is generally empowered with one vote at general meetings of our shareholders. Pursuant to our bylaws and the São Paulo Stock Exchange listing agreement in connection with the listing of our shares on the Novo Mercado,
we cannot issue shares without voting rights or with restricted voting rights.

Limitations on the Voting Rights of Certain Holders of Common Shares

Our bylaws provide that, at any general meeting of our shareholders, no shareholder or group of shareholders, including brokers acting
on behalf of one or more holders of ADSs, may exercise votes representing more than 5% of the quantity of shares into which our capital stock is divided. Votes that exceed this 5% threshold will not be counted.

For purposes of our bylaws, two or more of our shareholders are considered to be a group of shareholders if:



| |  |  | they are parties in a voting agreement;
| | - |  | ---------------------------------------



| |  |  | one of them is, directly or indirectly, a controlling shareholder or controlling parent company of the other, or the others;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | they are companies directly or indirectly controlled by the same person/entity, or group of persons/entities, which may or may not be shareholders; or
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------



106



---

| |  |  | they are companies, associations, foundations, cooperatives and trusts, investment funds or portfolios, universalities of rights or any other forms of organization or undertaking (a) with the same administrators or
managers, or further (b) whose administrators or managers are companies that are directly or indirectly controlled by the same person/entity, or group of persons/entities, which may or may not be shareholders.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In the case of investment funds having a common administrator, only funds with policies of investment and of exercise of voting rights at
shareholders meetings that fall under the responsibility of the administrator on a discretionary basis will be considered to be a group of shareholders.

In addition, shareholders represented by the same proxy, administrator or representative on any account at any general meeting of our
shareholders will be considered to be a group of shareholders, except for holders of our ADSs when represented by the relevant depositary. All signatories to a shareholders agreement that addresses the exercise of voting rights will also be
considered to be a group of shareholders for purposes of the foregoing limitation.

This limitation on the voting rights of certain
holders of common shares is illustrated in the following table:



|                                                        |  |                                                   
|------------------------------------------------------- |  | --------------------------------------------------
|Equity Interest of Shareholder or Group of Shareholders |  | Voting Rights as a Percentage of our Capital Stock
|1%                                                      |  | 1%                                                
|2%                                                      |  | 2%                                                
|3%                                                      |  | 3%                                                
|4%                                                      |  | 4%                                                
|5%                                                      |  | 5%                                                
|>5%                                                     |  | 5%                                                

Limitation on the Voting Rights of Non-Brazilian Shareholders

In accordance with the edital (invitation to bid) issued by the Brazilian federal government in connection with the privatization of
Embraer in 1994, voting participation of non-Brazilian holders of Embraer common shares was limited to 40% of Embraer common shares.

Our
bylaws provide that, at any general meeting of our shareholders, non-Brazilian shareholders and groups of non-Brazilian shareholders may not exercise voting rights representing more than two-thirds of the total votes of all of the Brazilian
shareholders present at such meeting. The total number of votes that may be exercised by Brazilian shareholders and by non-Brazilian shareholders will be assessed after giving effect to the 5% voting limitation described above in Item
10B.Limitation on the Voting Rights of Certain Holders of Common Shares above. Votes of non-Brazilian shareholders that exceed this two-thirds threshold will not be counted. If the total vote of non-Brazilian shareholders at any general
meeting of our shareholders exceeds two-thirds of the votes that may be exercised by the Brazilian shareholders present at such meeting, the number of votes of each non-Brazilian shareholder will be proportionately reduced so that the total vote of
non-Brazilian shareholders does not exceed two-thirds of the total votes that can be exercised by Brazilian shareholders present at such shareholders meeting.

The fraction of two-thirds effectively limits the voting rights of non-Brazilian shareholders and groups of non-Brazilian shareholders to 40%
of our total share capital. The objective of this limitation is to ensure that Brazilian shareholders constitute a majority of the total votes cast at any general meeting of our shareholders. This limitation will effectively prevent our takeover by
non-Brazilian shareholders and limit the ability of non-Brazilian shareholders to effect control over us.

For purposes of our bylaws, the
following are considered to be Brazilian shareholders:



| |  |  | Brazilian individuals, whether native or naturalized, resident in Brazil or abroad;
| | - |  | -----------------------------------------------------------------------------------



| |  |  | legal private entities organized under the laws of Brazil that have their administrative head offices in Brazil and (a) do not have a foreign controlling parent company, unless the parent company meets the
requirements of clause (b) of this item, and (b) are controlled, directly or indirectly, by one or more Brazilian individuals, whether native or naturalized, resident in Brazil or abroad; and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



107



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| |  |  | investment funds or clubs organized under the laws of Brazil that have their administrative head office in Brazil and whose managers and/or investors holding the majority of their equity interests are persons/entities
referred to above.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

A Brazilian shareholder will be required to provide evidence to us and the depositary for the book-entry
registry that such shareholder satisfies the foregoing requirements and only after such evidence is given will such shareholder be included in the records of Brazilian shareholders.

For purposes of our bylaws, non-Brazilian shareholders are considered to be persons or legal entities, investment funds or clubs
and any other entities not composed of Brazilian shareholders and that cannot evidence that they satisfy the requirements to be considered Brazilian shareholders.

A group of shareholders, as defined above, will be considered to be non-Brazilian whenever one or more of its members is a
non-Brazilian shareholder.

The effect of this limitation on the voting rights of non-Brazilian shareholders (i.e., their
participation) is illustrated in the following table, where the column Non-Brazilian Shareholder Participation indicates the maximum percentage of votes a non-Brazilian shareholder may cast:



|                                    |  |                                         |  |                                           
|----------------------------------- |  | --------------------------------------- |  | ------------------------------------------
|Brazilian Shareholder Participation |  | Non-Brazilian Shareholder Participation |  | Non-Brazilian Shareholder Participation(1)
|(% of capital stock)                |  | (% of capital stock)                    |  | (%)                                       
|90                                  |  | 10                                      |  | 10.00                                     
|80                                  |  | 20                                      |  | 20.00                                     
|70                                  |  | 30                                      |  | 30.00                                     
|60                                  |  | 40                                      |  | 40.00                                     
|59                                  |  | 41                                      |  | 39.33                                     
|50                                  |  | 50                                      |  | 33.33                                     
|40                                  |  | 60                                      |  | 26.67                                     
|30                                  |  | 70                                      |  | 20.00                                     
|20                                  |  | 80                                      |  | 13.33                                     
|10                                  |  | 90                                      |  | 6.67                                      



|(1) | Number of votes calculated based on two-thirds of the Brazilian shareholders votes.
|--- | ------------------------------------------------------------------------------------

The
tables below illustrate, in different situations, the voting system that will apply at our shareholders meetings.

Example 1

All Brazilian shareholders hold less than 5% and non-Brazilian shareholders hold a total of 40%, but without any individual holdings higher
than 5%. This example shows a situation where the general restriction for non-Brazilian shareholders does not affect the voting ratio.



|                  |  |                   |     |  |                                              |  |     |                                                   |  |  |                |  |  |                         |     |     |  |  |      | 
|----------------- |  | ----------------- | --- |  | -------------------------------------------- |  | --- | ------------------------------------------------- |  |  | -------------- |  |  | ----------------------- | --- | --- |  |  | ---- | 
|Shareholder       |  | % SharesAttending |     |  | Effective % ofVotes After 5%Vote Restriction |  |     | Effective % ofVotes AfterNon-BrazilianRestriction |  |  | % ofValidVotes |  |  | Vote Ratio(Votes/Share) |    
|Brazilian A       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian B       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian C       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian D       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian E       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian F       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian G       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian H       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian I       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian J       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian K       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|Brazilian L       |  |                   | 5   |  |                                              |  | 5   |                                                   |  |  | 5              |  |  |                         | 5   |     |  |  | 1.00 | 
|                  |  |                   |     |  |                                              |  |     |                                                   |  |  |                |  |  |                         |     |     |  |  |      | 
|Total Brazilians  |  |                   | 60  |  |                                              |  | 60  |                                                   |  |  | 60             |  |  |                         | 60  |     |  |  | 1.00 | 
|Non-Brazilians(1) |  |                   | 40  |  |                                              |  | 40  |                                                   |  |  | 40             |  |  |                         | 40  | (2) |  |  | 1.00 | 
|                  |  |                   |     |  |                                              |  |     |                                                   |  |  |                |  |  |                         |     |     |  |  |      | 
|Total             |  |                   | 100 |  |                                              |  | 100 |                                                   |  |  | 100            |  |  |                         | 100 |     |  |  | 1.00 | 
|                  |  |                   |     |  |                                              |  |     |                                                   |  |  |                |  |  |                         |     |     |  |  |      | 



|(1) | Assumes that no individual non-Brazilian shareholder holds more than 5% of our capital. If a non-Brazilian shareholder holds more than 5% of our capital, such shareholder will also be subject to the 5% voting
restriction on such holding.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Two-thirds of 60 (total votes of the Brazilian shareholders after application of the 5% voting restriction) equals 40 votes.
|--- | ----------------------------------------------------------------------------------------------------------------------------



108



---

Example 2

One Brazilian shareholder holds more than 5% of our capital, the other Brazilian shareholders hold 5% and non-Brazilian shareholders hold a
total of 50%, but without any individual holdings higher than 5%.



|                  |  |                   |     |  |                                              |  |    |                                                   |  |  |                 |     |  |                         |        |  |  |  |      | 
|----------------- |  | ----------------- | --- |  | -------------------------------------------- |  | -- | ------------------------------------------------- |  |  | --------------- | --- |  | ----------------------- | ------ |  |  |  | ---- | 
|Shareholder       |  | % SharesAttending |     |  | Effective % ofVotes After 5%Vote Restriction |  |    | Effective % ofVotes AfterNon-BrazilianRestriction |  |  | % ofValid Votes |     |  | Vote Ratio(Votes/Share) |       
|Brazilian A       |  |                   | 20  |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 8.57   |  |  |  | 0.25 | 
|Brazilian B       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 8.57   |  |  |  | 1.00 | 
|Brazilian C       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 8.57   |  |  |  | 1.00 | 
|Brazilian D       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 8.57   |  |  |  | 1.00 | 
|Brazilian E       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 8.57   |  |  |  | 1.00 | 
|Brazilian F       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 8.57   |  |  |  | 1.00 | 
|Brazilian G       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 8.57   |  |  |  | 1.00 | 
|                  |  |                   |     |  |                                              |  |    |                                                   |  |  |                 |     |  |                         |        |  |  |  |      | 
|Total Brazilians  |  |                   | 50  |  |                                              |  | 35 |                                                   |  |  | 35.0            |     |  |                         | 59.99  |  |  |  | 1.00 | 
|Non-Brazilians(1) |  |                   | 50  |  |                                              |  | 50 |                                                   |  |  | 23.3            | (2) |  |                         | 40.00  |  |  |  | 0.47 | 
|                  |  |                   |     |  |                                              |  |    |                                                   |  |  |                 |     |  |                         |        |  |  |  |      | 
|Total             |  |                   | 100 |  |                                              |  | 85 |                                                   |  |  | 58.3            | (2) |  |                         | 100.00 |  |  |  | 0.58 | 
|                  |  |                   |     |  |                                              |  |    |                                                   |  |  |                 |     |  |                         |        |  |  |  |      | 



|(1) | Assumes that no individual non-Brazilian shareholder holds more than 5% of our capital. If a non-Brazilian shareholder holds more than 5% of our capital, such shareholder will also be subject to the 5% voting
restriction on such holding.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Two-thirds of 35 (total votes of the Brazilian shareholders after application of the 5% voting restriction) equals 23 votes.
|--- | ----------------------------------------------------------------------------------------------------------------------------

Example 3

No Brazilian shareholders hold
more than 5% of our capital, a non-Brazilian shareholder holds 30% and other non-Brazilian shareholders hold a total of 40%, but without any individual holdings higher than 5%.



|                  |  |                   |     |  |                                              |  |    |                                                   |  |  |                 |     |  |                         |       |  |  |  |      | 
|----------------- |  | ----------------- | --- |  | -------------------------------------------- |  | -- | ------------------------------------------------- |  |  | --------------- | --- |  | ----------------------- | ----- |  |  |  | ---- | 
|Shareholder       |  | % SharesAttending |     |  | Effective % ofVotes After 5%Vote Restriction |  |    | Effective % ofVotes AfterNon-BrazilianRestriction |  |  | % ofValid Votes |     |  | Vote Ratio(Votes/Share) |      
|Brazilian A       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 10.0  |  |  |  | 1.00 | 
|Brazilian B       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 10.0  |  |  |  | 1.00 | 
|Brazilian C       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 10.0  |  |  |  | 1.00 | 
|Brazilian D       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 10.0  |  |  |  | 1.00 | 
|Brazilian E       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 10.0  |  |  |  | 1.00 | 
|Brazilian F       |  |                   | 5   |  |                                              |  | 5  |                                                   |  |  | 5.0             |     |  |                         | 10.0  |  |  |  | 1.00 | 
|                  |  |                   |     |  |                                              |  |    |                                                   |  |  |                 |     |  |                         |       |  |  |  |      | 
|Total Brazilians  |  |                   | 30  |  |                                              |  | 30 |                                                   |  |  | 30.0            |     |  |                         | 60.0  |  |  |  | 1.00 | 
|Non-Brazilians A  |  |                   | 30  |  |                                              |  | 5  |                                                   |  |  | 2.2             | (2) |  |                         | 4.4   |  |  |  | 0.07 | 
|Non-Brazilians(1) |  |                   | 40  |  |                                              |  | 40 |                                                   |  |  | 17.8            | (2) |  |                         | 35.6  |  |  |  | 0.44 | 
|                  |  |                   |     |  |                                              |  |    |                                                   |  |  |                 |     |  |                         |       |  |  |  |      | 
|Total             |  |                   | 100 |  |                                              |  | 75 |                                                   |  |  | 50.0            |     |  |                         | 100.0 |  |  |  | 0.50 | 
|                  |  |                   |     |  |                                              |  |    |                                                   |  |  |                 |     |  |                         |       |  |  |  |      | 



|(1) | Assumes that no individual non-Brazilian shareholder (except Non-Brazilian A) holds more than 5% of our capital. If a non-Brazilian shareholder holds more than 5% of our capital, such shareholder will also be subject to
the 5% voting restriction on such holding.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Two-thirds of 30 (total votes of the Brazilian shareholders after application of the 5% voting restriction) equals 20 votes, proportionally divided between Non-Brazilian A and the other non-Brazilians.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





109



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Example 4

Two Brazilian shareholders holding more than 5% of our capital, three Brazilian shareholders holding 5% and non-Brazilian shareholders holding
a total of 30%, but without individual holdings higher than 5%.



|                  |  |                   |     |  |                                              |  |    |                                                    |  |  |                |     |  |                         |     |  |  |  |      | 
|----------------- |  | ----------------- | --- |  | -------------------------------------------- |  | -- | -------------------------------------------------- |  |  | -------------- | --- |  | ----------------------- | --- |  |  |  | ---- | 
|Shareholder       |  | % SharesAttending |     |  | Effective % ofVotes After 5%Vote Restriction |  |    | Effective % of VotesAfter Non-BrazilianRestriction |  |  | % ofValidVotes |     |  | Vote Ratio(Votes/Share) |    
|Brazilian A       |  |                   | 30  |  |                                              |  | 5  |                                                    |  |  | 5.0            |     |  |                         | 12  |  |  |  | 0.17 | 
|Brazilian B       |  |                   | 25  |  |                                              |  | 5  |                                                    |  |  | 5.0            |     |  |                         | 12  |  |  |  | 0.20 | 
|Brazilian C       |  |                   | 5   |  |                                              |  | 5  |                                                    |  |  | 5.0            |     |  |                         | 12  |  |  |  | 1.00 | 
|Brazilian D       |  |                   | 5   |  |                                              |  | 5  |                                                    |  |  | 5.0            |     |  |                         | 12  |  |  |  | 1.00 | 
|Brazilian E       |  |                   | 5   |  |                                              |  | 5  |                                                    |  |  | 5.0            |     |  |                         | 12  |  |  |  | 1.00 | 
|                  |  |                   |     |  |                                              |  |    |                                                    |  |  |                |     |  |                         |     |  |  |  |      | 
|Total Brazilians  |  |                   | 70  |  |                                              |  | 25 |                                                    |  |  | 25.0           |     |  |                         | 60  |  |  |  | 1.00 | 
|Non-Brazilians(1) |  |                   | 30  |  |                                              |  | 30 |                                                    |  |  | 16.7           | (2) |  |                         | 40  |  |  |  | 0.56 | 
|                  |  |                   |     |  |                                              |  |    |                                                    |  |  |                |     |  |                         |     |  |  |  |      | 
|Total             |  |                   | 100 |  |                                              |  | 55 |                                                    |  |  | 41.7           |     |  |                         | 100 |  |  |  | 0.42 | 
|                  |  |                   |     |  |                                              |  |    |                                                    |  |  |                |     |  |                         |     |  |  |  |      | 



|(1) | Assumes that no individual non-Brazilian shareholder (except Non-Brazilian A) holds more than 5% of our capital. If a non-Brazilian shareholder holds more than 5% of our capital, such shareholder will also be subject to
the 5% voting restriction on such holding.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(2) | Two-thirds of 25 (total votes of the Brazilian shareholders after application of the 5% voting restriction) equals 16.7 votes.
|--- | ------------------------------------------------------------------------------------------------------------------------------

Shareholders Agreement

In
connection with the merger of former Embraer with and into Embraer approved on March 31, 2006, Cia. Bozano, PREVI and SISTEL, the former controlling shareholders of former Embraer, terminated the shareholders agreement governing matters
relating to their equity ownership of former Embraer, and relinquished voting control over former Embraer in favor of all Embraer shareholders. As of the implementation of the merger, Cia. Bozano, PREVI and SISTEL no longer have the ability to
control the outcome of matters submitted to a vote of Embraer shareholders. Our bylaws prohibit any shareholder or group of shareholders from exercising voting control over us.

Golden Share

The golden share is held by
the Federative Republic of Brazil. The golden share is entitled to the same voting rights as the holders of common shares. In addition, the golden share entitles the holder thereof to veto rights over the following corporate actions:



| |  |  | change of our name and corporate purpose;
| | - |  | -----------------------------------------



| |  |  | modification and/or application of our logo;
| | - |  | --------------------------------------------



| |  |  | creation and/or alteration of military programs (whether or not involving Brazil);
| | - |  | ----------------------------------------------------------------------------------



| |  |  | development of third party skills in technology for military programs;
| | - |  | ----------------------------------------------------------------------



| |  |  | discontinuance of the supply of spare parts and replacement parts for military aircraft;
| | - |  | ----------------------------------------------------------------------------------------



| |  |  | transfer of our control;
| | - |  | ------------------------



| |  |  | any amendments to the list of corporate actions over which the golden share carries veto rights, including the right of the Brazilian federal government to appoint one acting member to our Board of Directors and the
right of our employees to appoint two acting members to our Board of Directors, and to the rights conferred to the golden share; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | changes to certain provisions of our bylaws pertaining to voting restrictions, rights of the golden share and the mandatory tender offer requirements applicable to holders of 35% or more of our outstanding shares.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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The matters listed above are subject to prior approval by our Board of Directors and the approval
within 30 days of the Brazilian federal government, as holder of the golden share. Such matters are also subject to prior notice to the Brazilian Ministry of Finance. In the absence of the approval of the Brazilian federal government within the
30-day period, the matter will be deemed to have been approved by our Board of Directors.

Disclosure of Significant Interest

Brazilian Requirements

Brazilian
law and our bylaws provide that all shareholders or groups of shareholders will be required to disclose, through notice to us and to the stock exchanges on which our securities are traded, the acquisition of shares that, together with those already
held by them, exceed 5% of our capital stock. A violation of this disclosure obligation could result in the suspension of rights, including voting rights, by a resolution of shareholders at a shareholders meeting.

Certain U.S. Legal Requirements

In addition, the U.S. Exchange Act imposes reporting requirements on shareholders or groups of shareholders who acquire beneficial ownership
(as such term is defined under Rule 13d-3 of the U.S. Exchange Act) of more than 5% of our common shares. In general, such shareholders must file, within ten days after such acquisition, a report of beneficial ownership with the SEC containing the
information prescribed by the regulations under the U.S. Exchange Act. This information is also required to be sent to us and to each U.S. securities exchange on which our common shares are traded. Shareholders should consult with their own legal
advisor regarding their reporting obligations under the U.S. Exchange Act.

Form and Transfer

As our shares are in registered book-entry form, the transfer of shares is governed by the rules of Article 35 of the Brazilian Corporate Law.
This Article provides that a transfer of shares is effected by an entry made by Banco Itaú S.A., also known as the registrar, in its books, by debiting the share account of the transferor and crediting the share account of the transferee.
Banco Itaú S.A. also performs all the services of safe-keeping and transfer of shares and related services for us.

Transfers of
shares by a non-Brazilian shareholder are made in the same way and executed by that shareholders local agent on the shareholders behalf except that if the original investment was registered with the Central Bank pursuant to Resolution
No. 2,689, the foreign investor must also seek amendment, if necessary, through its local agent, of the electronic registration to reflect the new ownership.

The São Paulo Stock Exchange operates as a central clearing system. A holder of our shares may choose, in its discretion, to
participate in this system and all shares elected to be put into this system will be deposited in the custody of the São Paulo Stock Exchange (through a Brazilian institution duly authorized to operate by the Central Bank and having a
clearing account with the São Paulo Stock Exchange). The fact that those shares are held in the custody of the São Paulo Stock Exchange will be reflected in our register of shareholders. Each participating shareholder will, in turn, be
registered in our register of beneficial shareholders maintained by the São Paulo Stock Exchange and will be treated in the same way as registered shareholders.

Board of Directors

Under the Brazilian
Corporate Law, the members of a companys Board of Directors must be shareholders of the company. There is no requirement as to the number of shares an individual must own in order to act as a member of the Board of Directors.

According to the Brazilian Corporate Law, our officers and directors are prohibited from voting on, or acting in, matters in which their
interests conflict with ours.



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Our bylaws provide that the shareholders are responsible for determining the global remuneration
of the members of our management bodies. Our Board of Directors is responsible for dividing such remuneration among the members of management. There are no specific provisions regarding the directors power to vote on their compensation in the
absence of an independent quorum.

With respect to the borrowing powers of the Board of Directors, the Board of Directors has the power to
authorize the borrowing of funds, either in the form of bonds, notes, commercial papers or other instruments of regular use in the market. Other financing arrangements, including bank loans, may be entered into by us upon the joint signatures of
(1) two Executive Officers, (2) one officer and one attorney-in-fact, or (3) two attorneys-in-fact.

There is no
requirement under the Brazilian Corporate Law or our bylaws that directors retire upon reaching a certain age. In addition, our bylaws do not provide for the re-election of directors at staggered intervals.

For a discussion of our Board of Directors, see Item 6A. Directors, Senior Management and EmployeesDirectors and Senior
ManagementBoard of Directors and Item 6C. Directors, Senior Management and EmployeesBoard Practices.

Election of
Board of Directors

The election of members of our Board of Directors, absent a request to adopt a cumulative voting system, will
be conducted under a system of slate voting whereby voting will be based on a slate of directors and no voting will be allowed on individual candidates. According to our bylaws, the current members of the board at the time of the election will
always be candidates as a slate for a new term of office. Our Board of Directors is appointed by our shareholders for a two-year term, having three reserved seats as follows: (1) one acting member to be appointed by the Brazilian federal
government, as holder of the golden share and (2) two acting members to be appointed by our employees. The remaining eight directors are elected in accordance with the slate voting or cumulative voting rules contained in our bylaws.
A person may participate in two or more different slates. Each shareholder may only vote on one slate and the slate that receives the highest number of votes shall be declared elected.

Any shareholder has a right to propose and submit other slates of members for election to the Board of Directors, other than the slate of
members provided according to our bylaws. Our bylaws also contain a provision whereby a shareholder that intends to appoint one or more members of the Board of Directors, other than the current members of the Board of Directors, must notify Embraer
in writing at least ten days prior to the general meeting at which the members of the Board of Directors will be elected, providing us with the name and resume of the candidate. In case we receive such a notification, we must disclose receipt and
the contents of such notification (1) immediately, electronically, to the CVM and the São Paulo Stock Exchange and (2) through a press release to our shareholders that must also be available on our website, within at least eight
days before the date of the general meeting.

Alternatively, the election of members of the Board of Directors may be conducted under a
system of cumulative voting. According to the regulations of the CVM and to our bylaws, adoption of a resolution for cumulative voting depends on a written request by shareholders representing at least 5% of our capital stock, submitted at least 48
hours in advance of the time for which the general shareholders meeting has been called. Under the cumulative voting system, each share is entitled to the same number of votes as the number of board members to be elected (subject to the
restriction on shareholders holding greater than 5% of the common shares and restrictions on non-Brazilian shareholders), and each shareholder is entitled to concentrate votes in just one member or to distribute the votes among more than one or all
of the members. Any vacant offices not filled due to a tie in the voting will be subject to a new vote, under the same process.



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Preemptive Rights

Each of our shareholders has a general preemptive right to subscribe for shares in the event of any capital increase, or securities convertible
into shares, in proportion to its shareholding, except in the event of the grant and exercise of any option to acquire shares of our capital stock. A period of at least 30 days following the publication of notice of the issuance of shares or
securities convertible into shares is allowed for exercise of the right, and the right is negotiable. According to the Brazilian Corporate Law and our bylaws, the Board of Directors may, in its discretion, eliminate the preemptive rights of the
shareholders in the event that we issue shares, debentures convertible into shares, or subscription warrants that will be offered either through a stock exchange or in a public offering, or through an exchange of shares in a public offering, the
purpose of which is to acquire control of another company, as established by law.

In the event of a capital increase by means of the
issuance of new shares, holders of ADSs, or of common shares, would, except under the circumstances described above, have preemptive rights to subscribe to any class of our newly issued shares. However, a holder may not be able to exercise the
preemptive rights relating to the common shares underlying the ADSs unless a registration statement under the Securities Act is effective with respect to those shares to which the rights relate or an exemption from the registration requirements of
the Securities Act is available. See Item 3D. Key InformationRisk FactorsRisks Relating to Our Common Shares and ADSsHolders of our ADSs might be unable to exercise preemptive rights with respect to the common shares.
We are not obligated to file such registration statement.

Redemption and Right of Withdrawal

According to our bylaws, our common shares will not be redeemable.

The Brazilian Corporate Law provides that, under limited circumstances, a shareholder has the right to withdraw his equity interest from the
company and to receive payment for the portion of shareholders equity attributable to his equity interest. This right of withdrawal may be exercised by our dissenting shareholders in the event that at least half of all voting shares
outstanding authorize us to:



| |  |  | reduce the mandatory distribution of dividends;
| | - |  | -----------------------------------------------



| |  |  | change our corporate purpose;
| | - |  | -----------------------------



| |  |  | merge into or consolidate with another company, subject to the conditions set forth in the Brazilian Corporate Law;
| | - |  | -------------------------------------------------------------------------------------------------------------------



| |  |  | transfer all of our shares to another company or receive shares of another company in order to make the company whose shares were transferred a wholly owned subsidiary of such other company, known as a merger of shares;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | acquire control of another company at a price which exceeds the limits set forth in the Brazilian Corporate Law;
| | - |  | ----------------------------------------------------------------------------------------------------------------



| |  |  | participate in a centralized group of companies as defined under the Brazilian Corporate Law and subject to the conditions set forth therein; or
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | conduct a spin-off that results in (a) a change of our corporate purposes, except if the assets and liabilities of the spun-off company are contributed to a company that is engaged in substantially the same
activities, (b) a reduction in the mandatory dividend or (c) any participation in a centralized group of companies, as defined under the Brazilian Corporate Law.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In addition, in the event that the entity resulting from a merger, incorporação de ações, as described
above, or a consolidation or a spin-off of a listed company fails to become a listed company within 120 days of the shareholders meeting at which such decision was taken, the dissenting shareholders may also exercise their right of withdrawal.

The Brazilian Corporate Law contains provisions that restrict withdrawal rights and allow companies to redeem their shares at their
economic value, subject to certain requirements. As our bylaws currently do not provide that our shares would be redeemable at their economic value, our shares would be redeemable at their book value, determined on the basis of the last statement of
financial position approved by the shareholders. If the shareholders meeting giving rise to withdrawal rights occurs more than 60 days after the date of the last approved statement of financial position, a shareholder may demand that its
shares be valued on the basis of a new statement of financial position that is as of a date within 60 days of such shareholders meeting.



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According to the Brazilian Corporate Law, in events of consolidation, merger,
incorporação de ações, participation in a group of companies, and acquisition of control of another company, the right to withdraw does not apply if the shares in question meet certain tests relating to market
liquidity and float. Shareholders would not be entitled to withdraw their shares if the shares are a component of a general stock index in Brazil or abroad and shares held by persons unaffiliated with the controlling shareholder represent more than
half of the outstanding shares of the relevant type or class.

Mechanism to Promote Dispersed Ownership of Our Shares

Our bylaws contain provisions that have the effect of avoiding concentration of our shares in the hands of an investor or a small group of
investors, in order to promote more dispersed ownership of our shares. To this end, these provisions place certain obligations on a shareholder or group of shareholders that becomes a holder of 35% or more of our total capital stock, or an Acquiring
Shareholder. Not later than 15 days after a shareholder becomes an Acquiring Shareholder, such shareholder must submit a request to the Brazilian federal government, through the Ministry of Finance, to make a public tender offer to acquire all of
our capital stock. The Brazilian federal government will have full discretion to accept or deny this request. The Acquiring Shareholder may not purchase any additional shares until the Brazilian federal government provides its opinion on the public
offer. If the request is accepted by the Brazilian federal government, the Acquiring Shareholder must make a public offer for all shares within 60 days of acceptance. The offer must be made in accordance with the CVM and the São Paulo Stock
Exchange regulations and the provisions of our bylaws. If the request is denied by the Brazilian federal government, the Acquiring Shareholder must sell all shares such Acquiring Shareholder owns in excess of 35% of our total capital stock within 30
days. Failure to comply with these provisions will subject the Acquiring Shareholder to the potential suspension of all voting rights inherent to the shares held by it, if a resolution to such effect is approved at a general meeting of our
shareholders called by our management. These provisions are not applicable to shareholders who become holders of 35% or more of our total capital stock in certain transactions specified in our bylaws as, for example, cancellation of our common
shares held in treasury.

The public tender offer must be (1) directed to all of our shareholders, (2) made through an auction
to take place on the São Paulo Stock Exchange, (3) launched at a set price calculated in accordance with the procedure set forth below, (4) paid upfront, in Brazilian currency, (5) made so as to assure equal treatment to all
shareholders, (6) irrevocable and not subject to any changes after publication of the bidding offer, and (6) based on a valuation report to be prepared in accordance with the rules set forth in our bylaws and in applicable CVM rules and
regulations.

The price to be offered for the shares in such public tender offer shall be calculated as follows:



| |  |  | Tender Offer Price = Value of the Share + Premium,
| | - |  | --------------------------------------------------

where:



| |  |  | Tender Offer Price corresponds to the acquisition price for each share issued by us in the public offering of shares provided hereunder.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Value of the Share corresponds to the greater of:
| | - |  | ---------------------------------------------------



| | (1) | the highest unit quotation obtained for the shares issued by us during the 12-month period prior to the tender offer among values recorded on any stock exchange on which the shares were traded;
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (2) | the highest price paid by the Acquiring Shareholder, during the 36-month period prior to the tender offer, for a share or tranche of shares issued by us;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------



| | (3) | the amount equivalent to 14.5 times our Consolidated Average EBITDA, as defined below, reduced by our net consolidated indebtedness, divided by the total number of shares issued by us; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (4) | the amount equivalent to 0.6 times the amount of our firm backlog orders, according to the last information disclosed by the latter, reduced by our net consolidated indebtedness, divided by the total number of shares
issued by us.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | Premium corresponds to 50% of the Value of the Share.
| | - |  | -------------------------------------------------------



| |  |  | Consolidated EBITDA is our consolidated operating profit before net financial expenses, income tax and social contribution, depreciation, depletion and amortization, as assessed based on the audited
statements for our most recent complete fiscal year.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Average Consolidated EBITDA is the arithmetic average of our consolidated EBITDA for the two most recent complete fiscal years.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------

The launch of a public tender offer does not preclude us or any of our shareholders from launching a competing public tender offer, in
accordance with applicable regulations.

Arbitration

Any disputes or controversies relating to the regulations of the Novo Mercado, our bylaws, the Brazilian Corporate Law, the rules
published by the CMN, the Central Bank, the CVM, any shareholders agreement filed at our headquarters, and other rules applicable to the Brazilian capital markets in general, must be submitted to arbitration conducted in accordance with the
rules of the São Paulo Stock Exchange Arbitration Chamber. According to Chapter 12 of such Rules, the parties may consensually agree to use another arbitration chamber or center to resolve their disputes. Any shareholder that becomes a holder
of shares representing our control must agree to comply with the rules of the São Paulo Stock Exchange Arbitration Chamber within 30 days of the acquisition of the shares. These provisions will not apply however, in the event of a dispute or
controversy related to a dispute or controversy deriving from the golden share.

Going Private Process

We may become a private company only if we or our controlling shareholders conduct a public tender offer to acquire all of our outstanding
shares subject to prior approval of the public offer by the Brazilian federal government, as holder of the golden share, and in accordance with the rules and regulations of the Brazilian Corporate Law and the CVM regulations and rules of the Novo
Mercado, if applicable. The minimum price offered for the shares in the public tender offer will correspond to the economic value of such shares, as determined by a valuation report issued by a specialized firm.

The valuation report must be prepared by a specialized and independent firm of recognized experience chosen by the shareholders representing
the majority of the outstanding shares (excluding, for such purposes, the shares held by the controlling shareholder, its partner and any dependents included in the income tax statement, should the controlling shareholders be an individual, treasury
shares, shares held by our affiliates and by other companies that are a part of our economic group, as well as blank votes) from a list of three institutions presented by our Board of Directors. All the expenses and costs incurred in connection with
the preparation of the valuation report must be paid for by the controlling shareholder.

Shareholders holding at least 10% of our
outstanding shares may require our management to call a special meeting of our shareholders to determine whether to perform another valuation using the same or a different valuation method. This request must be made within 15 days following the
disclosure of the price to be paid for the shares in the public offering. The shareholders who make such request, as well as those who vote in its favor, must reimburse us for any costs involved in preparing the new valuation, if the new valuation
price is not higher than the original valuation price. If the new valuation price is higher than the original valuation price, the public offering must be made at the higher price. If our shareholders determine to take us private and at that time we
are controlled by a shareholder holding less than 50% of our total capital stock or by a shareholder that is not a member of a group of shareholders (as defined in its bylaws), we must conduct the public tender offer, within the limits imposed by
law. In this case, we may only purchase shares from shareholders that have voted in favor of us becoming a private company after purchasing all shares from the other shareholders that did not vote in favor of such deliberation and that have accepted
the public tender offer.



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Delisting from theNovo Mercado

At any time, we may delist our shares from the Novo Mercado, provided that shareholders representing the majority of our shares approve
the action and that at least 30 days written notice is given to the São Paulo Stock Exchange. The decision of the shareholders must specify if the delisting will occur because the securities will no longer be traded on the Novo
Mercado, or because we are going private. Our delisting from the Novo Mercado will not result in the loss of our registration as a public company on the São Paulo Stock Exchange.

If we delist from the Novo Mercado, by decision taken at a shareholders meeting, any controlling shareholder or group of
controlling shareholders at the time, if any, must conduct a public offering for the acquisition of our outstanding shares, within a period of 90 days if we delist in order for its shares to be tradable outside the Novo Mercado, or within a
period of 120 days if we delist as a result of a corporate reorganization in which the surviving company is not listed on the Novo Mercado. The price per share shall be equivalent to the economic value of those shares as determined in a
valuation report prepared by a specialized and independent company of recognized experience, which will be chosen at a shareholders meeting from a list of three institutions presented by our Board of Directors, by an absolute majority of the
votes of the shareholders of our outstanding shares present at the meeting (excluding, for such purposes, the shares held by any controlling shareholder or group of shareholders at the time, if any, its partners and dependents included in our income
tax statement, should the controlling shareholder be an individual, treasury shares, shares held by our affiliates and by other companies that are a part of our economic group, as well as blank votes). All the expenses and costs incurred in
connection with the preparation of the valuation report must be paid by the controlling shareholder.

If we are subject to widespread
control at the time of our delisting from the Novo Mercado, either for our shares to be traded outside the Novo Mercado or as a result of a corporate reorganization, the shareholders that voted in favor of such deliberation must
conduct a public tender offer for the acquisition of our shares.

Pursuant to our bylaws, we may also be delisted if the São Paulo
Stock Exchange decides to suspend trading of our shares on the Novo Mercado due to our non-compliance with the Novo Mercado Regulations. In this case, the Chairman of the Board of Directors must call a shareholders meeting,
within two days of the determination by the São Paulo Stock Exchange, in order to replace all members of our Board of Directors. If the Chairman of the Board of Directors does not call the shareholders meeting, any shareholder may do
so. The new Board of Directors will be responsible for the compliance with the requirements that resulted in the delisting.

Additionally,
if we are delisted from the Novo Mercado (1) because a decision taken at a general meeting of our shareholders resulted in non-compliance with the Novo Mercado Regulations, the public tender offer must be conducted by the
shareholders that voted in favor of the deliberation, or (2) as a result of our non-compliance with the Novo Mercado Regulations resulting from acts of our management, we must conduct the public tender offer in order to become a private
company, within the limits imposed by law.

According to the Novo Mercado Regulations, in the event of a transfer of our
shareholding control within 12 months following our delisting from the Novo Mercado, the selling controlling shareholders and the acquirer must offer to acquire the remaining shares for the same price and terms offered to the selling
controlling shareholders, adjusted for inflation.

If our shares are delisted from the Novo Mercado, we will not be permitted to
have shares listed on the Novo Mercado for a period of two years after the delisting date, unless there is a change in our control after our delisting from the Novo Mercado.

According to the Novo Mercado Regulations, the São Paulo Stock Exchange may issue complementary rules to regulate the public
offering in the event of delisting in case a company has dispersed ownership.

Sarbanes Oxley Act of 2002

We maintain controls and procedures designed to ensure that we are able to collect the information required to disclose in the report we file
with the SEC, and to process, summarize and disclose the information within the periods specified in the rules of the SEC. We have filed the relevant officer certifications under Section 404 of the U.S. Sarbanes Oxley Act of 2002 regarding
internal controls over financial reporting as Exhibits 12.1 and 12.2 to this annual report.



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10C.  Material Contracts

None.

10D.  Exchange Controls

There are no restrictions on ownership of our common shares by individuals or legal entities domiciled or headquartered outside Brazil.
However, the registration of such investment with the Brazilian Central Bank is required and the right to convert dividend payments and proceeds from the sale of common shares into foreign currency and to remit such amounts outside Brazil is subject
to restrictions under foreign investment legislation.

Pursuant to Brazilian law, investors may invest in common shares under Resolution
No. 4,373, of September 29, 2014, issued by the Brazilian Monetary Council ( CVM ), governmental authority responsible for formulating the Brazilian monetary and credit policies. The rules of Resolution No. 4,373 allow foreign
investors to invest in almost all financial assets and to engage in almost all transactions available in the Brazilian financial and capital markets, provided that certain requirements are fulfilled. In accordance with
Resolution No. 4,373, the definition of foreign investor includes individuals, legal entities, mutual funds and other collective investment entities domiciled or headquartered abroad.

Pursuant to the Resolution No. 4,373, foreign investors must: (1) appoint at least one representative in Brazil with powers to
perform actions related to the foreign investment; (2) provide all required information that shall be sent by the representative to CVM through CVMs website; (3) be registered as a foreign investor with the CVM and the Brazilian tax
authorities; and (4) register the foreign investment with the Brazilian Central Bank.

Securities and other financial assets held by
foreign investors pursuant to Resolution No. 4,373 must be registered or maintained in deposit accounts or under the custody of an entity duly licensed by the Brazilian Central Bank or the CVM. In addition, securities trading for these
investors is restricted to transactions carried out in the stock exchanges or organized over-the-counter markets licensed by the CVM.

Under Resolution No. 4,373, foreign investors registered with the CVM may buy and sell securities on Brazilian stock exchanges or
organized over-the-counter markets without obtaining a separate certificate of registration for each transaction. Investors under these regulations are also generally entitled to favorable tax treatment.

Annex II to Resolution No. 4,373 provides for the issuance of depositary receipts in foreign markets in respect of Brazilian
issuers securities.

In connection with the equity offerings of our common shares, an electronic registration was issued in the name
of the depositary with respect to the ADSs and is maintained by the custodian on behalf of the depositary. This electronic registration was carried out through the Brazilian Central Bank Information System-SISBACEN. Pursuant to the registration, the
custodian and the depositary are able to convert dividends and other distributions with respect to the common shares represented by ADSs into foreign currency and remit the proceeds outside Brazil, to the holder of ADSs. In the event that a holder
of ADSs exchanges such ADSs for common shares, the custodian must update the registry of the investment with the Brazilian Central Bank within five business days after the exchange. In order to receive the common shares the investor must have a
registration with the Brazilian Central Bank and the CVM pursuant to Resolution 4,373. Until such registration has been obtained, the holder will not be able to receive the common shares.

In addition, if the foreign investor resides in a tax haven jurisdiction or is not an investor registered under Resolution
No. 4,373, the investor will be subject to less favorable Brazilian tax treatment than a holder of ADSs.

See Item 3D. Key
InformationRisk FactorsRisks Relating to our Common Shares and ADSsIf holders of ADSs exchange the ADSs for common shares, they risk losing the ability to remit foreign currency abroad and Brazilian tax advantages and
Item 10E. Additional InformationTaxationMaterial Brazilian Tax Consequences.



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10E. Taxation

The following discussion, subject to the limitations set forth below, summarizes certain Brazilian and United States tax considerations
relating to the ownership of our common shares or ADSs. This discussion does not purport to be a complete analysis of all tax considerations in those countries and does not address tax treatment of shareholders under the laws of other countries.
Shareholders who are resident in countries other than Brazil and the United States, along with shareholders that are resident in those two countries, are urged to consult with their own tax advisors as to which countries tax laws could be
relevant to them. This summary is based upon the tax laws of Brazil and the United States as in effect on the date of this annual report, which are subject to change, possibly with retroactive effect, and to differing interpretations. Any change in
such law may change the consequences described below.

Although there presently is no income tax treaty between Brazil and the United
States, the tax authorities of the two countries have had discussions that may culminate in such a treaty. No assurance can be given, however, as to if or when a treaty will enter into force or how it will affect the U.S. holders of common shares or
ADSs.

Material Brazilian Tax Consequences

General.The following discussion summarizes the principal Brazilian tax consequences of the acquisition, ownership and disposition of common shares or
ADSs, as the case may be, by a holder that is not considered domiciled in Brazil (Non-Brazilian Holder), for purposes of Brazilian taxation.

This discussion is not a comprehensive discussion of all the tax considerations that may be relevant to a decision to purchase our common
shares or ADSs and is not applicable to all categories of investors, some of which may be subject to special rules, and does not specifically address all of the Brazilian federal income tax considerations applicable to any particular holder. It is
based on the tax laws of Brazil as in effect on the date of this report, which are subject to change, possibly with retroactive effect, and to differing interpretations. Each prospective purchaser is urged to consult his own tax advisor about the
particular Brazilian federal income tax consequences of an investment in our common shares or ADSs.

Taxation of Dividends .
Dividends, including stock dividends and other dividends paid in kind, paid by us to the depositary in respect of the ADSs, or to a Non-Brazilian Holder in respect of the common shares, are currently not subject to income withholding tax, provided
that they are paid out of profits generated as of January 1, 1996. Dividends paid from profits generated before January 1, 1996 may be subject to Brazilian withholding income tax at variable rates, according to the tax legislation
applicable to each corresponding year.

In this context, it should be noted that Law No. 11,638 dated December 28, 2007
significantly altered the Brazilian corporate law in order to align the generally accepted Brazilian accounting standards more closely with the International Financial Reporting Standards (IFRS). Nonetheless, Law No. 11,941 dated
May 27, 2009 introduced the Transitory Tax Regime (RTT) in order to render neutral, from a tax perspective, all of the changes provided by Law 11,638. Under the RTT, for tax purposes, legal entities should observe the accounting
methods and criteria as in force on December 31, 2007.

Profits determined pursuant to Law 11,638/07 (IFRS Profits) may
differ from the profits calculated pursuant to the accounting methods and criteria as in force on December 31, 2007 (2007 Profits).

While it was a general market practice to distribute exempted dividends with reference to the IFRS Profits, Normative Ruling No. 1,397,
issued by the Brazilian tax authorities on September 16, 2013, has established that legal entities should observe the accounting methods and criteria in force on December 31, 2007, or 2007 Profits, in order to determine the amount of
profits that could be distributed as exempted income to its beneficiaries.



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Any profits paid in excess of said 2007 Profits (Excess Dividends) should, in the tax
authorities view and in the specific case of non-resident beneficiaries, be subject to the following rules of taxation: (i) 15% withholding income tax (WHT), in case of case of beneficiaries domiciled abroad, but not in Low or
Nil Tax Jurisdiction (as defined below), and (ii) 25% WHT, in case of beneficiaries domiciled in Low or Nil Tax Jurisdiction (as defined below).

In order to mitigate potential disputes on the subject, Law No. 12,973, dated May 13, 2014, in addition to revoking the RTT,
introduced a new set of tax rules, or the New Tax Regime, including new provisions with respect to Excess Dividends. Under these new provisions: (i) Excess Dividends related to profits assessed from 2008 to 2013 will be exempt;
(ii) potential disputes remain concerning the Excess Dividends related to 2014 profits, unless our company voluntarily elects to apply the New Tax Regime in 2014; and (iii) as of 2015, once the New Tax Regime is mandatory and has
completely replaced the RTT, dividends should be considered fully exempt.

Taxation of Gains . According to Law No. 10,833,
enacted on December 29, 2003,capital gains realized on the sale or disposition of assets located in Brazil by a Non-Brazilian Holder, regardless of whether the sale or the disposition is made to another non-Brazilian resident or to a Brazilian
resident, is subject to taxation in Brazil. Accordingly, on the disposition of the common shares, which are considered assets located in Brazil, the Non-Brazilian Holder will be subject to income tax on the gains assessed, following the rules
described below, regardless of whether the transactions are conducted in Brazil or abroad and with a Brazilian resident or not. Regarding the ADSs, although the matter is not free from doubt, arguably the gains realized by a Non-Brazilian Holder on
the disposition of ADSs to another non-Brazilian resident are not taxed in Brazil, based on the argument that ADSs would not constitute assets located in Brazil for purposes of Law No. 10,833/03. However, we cannot assure of how Brazilian
courts would interpret the definition of assets located in Brazil in connection with the taxation of gains realized by a Non-Brazilian Holder on the disposition of ADSs to another non-Brazilian resident. Thus, the gain on a disposition of ADSs by a
Non-Brazilian Holder to a resident in Brazil (or even to a non-Brazilian resident in the event that courts determine that ADSs would constitute assets located in Brazil) may be subject to income tax in Brazil according to the rules described below
for ADSs or those applicable to the disposition of common shares, when applicable. It is important to clarify that, for purposes of Brazilian taxation, the income tax rules on gains related to disposition of preferred shares or ADSs can vary
depending on the domicile of the Non-Brazilian holder, the form by which such Non-Brazilian holder has registered its investment with the Central Bank and/or how the disposition is carried out, as described below.

The deposit of common shares in exchange for ADSs may be subject to Brazilian income tax on capital gains at the rate of 15% or 25%, in case
of a Non-Brazilian Holder located in a Low or Nil Tax Jurisdiction (as defined below), if the acquisition cost of the common shares is lower than (1) the average price per common share on a Brazilian stock exchange on which the greatest number
of such shares were sold on the day of deposit or (2) if no common shares were sold on that day, the average price on the Brazilian stock exchange on which the greatest number of common shares were sold in the 15 trading sessions immediately
preceding such deposit. In such case, the difference between the average price of the common shares, calculated as above, and the corresponding acquisition cost, may be considered a capital gain. In some circumstances, there may be arguments to
support that such taxation is not applicable in case of Non-Brazilian Holders registered under Resolution No. 4,373 (4,373 Holder) that are not Tax Haven Holdersand is not resident in a Low or Nil Tax Jurisdiction (as defined
below). The withdrawal of ADSs in exchange for common shares should not be considered as giving rise to a capital gain subject to Brazilian income tax, as far as the regulatory rules in respect to the registration of the investment before the
Central Bank are duly observed.

Gains assessed on the disposition of common shares carried out on the Brazilian stock exchange (which
includes the transactions carried out on the organized over-the-counter market):



| |  |  | are exempt from income tax when assessed by a Non-Brazilian Holder that (i) is a 4,373 Holder and (ii) is not resident in a Low or Nil Tax Jurisdiction (as defined below); or
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | are subject to income tax at a rate of 15% in any other case, including the gains assessed by a Non-Brazilian Holder that (i) is not a 4,373 Holder and/or or (ii) is a 4,373 Holder resident in a Low or Nil Tax
Jurisdiction (as defined below). In these cases, a withholding income tax of 0.005% on the sale value shall be applicable and can be later offset with the eventual income tax due on the capital gain.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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Any other gains assessed on a disposition of the common shares that is not carried out on
Brazilian stock exchanges are subject to income tax at a rate of 15%, except for a resident of a Low or Nil Tax Jurisdiction (as defined below) , which, in this case, is subject to income tax at a rate of 25%. In case the gains are related to
transactions conducted on the Brazilian non-organized over-the-counter market with intermediation, the withholding income tax of 0.005% on the sale value shall also be applicable and can be offset with the eventual income tax due on the capital
gain.

In the case of a redemption of common shares or ADSs or a capital reduction by a Brazilian corporation, the positive difference
between the amount effectively received by the Non-Brazilian Holder and the acquisition cost of the common shares or ADSs redeemed is treated as capital gain derived from sale or exchange of common shares not carried out in a Brazilian stock
exchange market and is therefore subject to income tax at the rate of 15%, or 25%, as the case may be.

As a general rule, the gains
realized as a result of a disposition transaction of common shares or ADSs are determined by the difference between the amount realized on the sale or exchange of the shares or ADSs and their acquisition cost.

There can be no assurance that the current preferential treatment for Non-Brazilian holder of ADSs and 4,373 Holder of preferred shares will
continue.

Any exercise of preemptive rights relating to the common shares or ADSs will not be subject to Brazilian income tax. Any gain
on the sale or assignment of preemptive rights relating to our common shares or the ADSs by a Non-Brazilian Holder of common shares will be subject to Brazilian income taxation according to the same rules applicable to the sale or disposition of
these shares.

Taxation on Interest on Shareholders Equity . (see Item 8A. Financial InformationConsolidated
Statements and Other Financial InformationDividends and Dividend PolicyHistory of Dividend and Interest on Shareholders Equity Payments and Dividend Policy).

In accordance with Law No. 9,249, dated December 26, 1995, as amended, Brazilian corporations may make payments to shareholders
characterized as distributions of interest on the companys shareholders equity as an alternative to making dividend distributions. Such interest are calculated by reference to the TJLP as determined by the Central Bank from time to time
and, for tax purposes, cannot exceed the greater of:



| |  |  | 50% of net income (after the social contribution on net profits but before taking such distribution and the provision for corporate income tax into account) related to the period in respect of which the payment is made;
and
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | 50% of the sum of retained profits and profit reserves as of the date of the beginning of the period in respect of which the payment is made.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------



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The Brazilian Corporate Law establishes that interest attributed to shareholders equity in
respect of the common shares paid to shareholders who are Non-Brazilian holders, including Non-Brazilian holders of ADSs, are subject to Brazilian withholding income tax at the rate of 15%, 25% in case of a resident of a Low or Nil Tax Jurisdiction
(as defined below) or where applicable local laws impose restrictions on the disclosure of the shareholding composition or the ownership of investments or the ultimate beneficiary of the income derived from transactions carried out and attributable
to a Non-Brazilian holder. The distribution of interest on shareholders equity may be determined by our board of directors. We cannot assure you that our board of directors will not determine that future distributions of profits may be made by
means of interest on shareholders equity instead of by means of dividends.

The amounts paid as distribution of interest on
shareholders equity are deductible for corporate income tax and social contribution on profits purposes, both of which are taxes levied on our profits, as far as the limits and rules described above are observed by us.

Low or Nil Taxation Jurisdictions.On June 4, 2010, Brazilian tax authorities enacted Normative Ruling No. 1,037 listing
(i) the countries and jurisdictions considered as Low or Nil Taxation Jurisdiction or where the local legislation does not allow access to information related to the shareholding composition of legal entities, to their ownership or to the
identity of the effective beneficiary of the income attributed to non-residents and (ii) the privileged tax regimes, which definition is provided by Law No. 11,727, of June 23, 2008. On December 12, 2014 the Brazilian Revenue
Service issued Rule 488 reducing the concept of Tax Favorable Jurisdictions to those that tax the income below the rate of 17% (previous concept adopted a 20% maximum rate for that purpose), which will probably result in an amendment to the list
provided under Normative Ruling No. 1,037. However, please note that Rule 488 does not apply to 4,373 Holders.

Although we believe
that the best interpretation of the current tax legislation could lead to the conclusion that the above mentioned privileged tax regime concept should apply solely for purposes of Brazilian transfer pricing and thin capitalization rules,
we cannot assure you that subsequent legislation or interpretations by the Brazilian tax authorities regarding the definition of a privileged tax regime provided by Law No. 11,727 will also apply to a Non-Brazilian Holder on
payments of interest on shareholders equity.

Notwithstanding the above, we recommend that you consult your own tax advisors
regarding the consequences of the implementation of Law No. 11,727, Normative Ruling No. 1,037,Rule 488. If the Brazilian tax authorities determine that the concept of privileged tax regime applies to WHT levied on payments
made to a Non-Brazilian Holder, the WHT applicable to such payments could be assessed at a rate up to 25.0%.

Taxation on Foreign
Exchange Transactions (IOF/Exchange). Pursuant to Decree No. 6,306/07, the conversion into foreign currency or the conversion into Brazilian currency of the proceeds received or remitted by a Brazilian entity from a foreign
investment in the Brazilian securities market, including those in connection with the investment by a Non-Brazilian holder in the preferred shares and ADSs may be subject to the Tax on Foreign Exchange Transactions, or IOF/Exchange. Currently
applicable rate for most foreign currency exchange transactions is 0.38%.

However, currency exchange transactions carried out for the
inflow of resources into Brazil by a 4,373 Holder are subject to IOF/Exchange at (i) 0% rate in case of variable income transactions carried out on the Brazilian stock, futures and commodities exchanges, as well as in the acquisitions of shares
of Brazilian publicly-held companies in public offerings or subscription of shares related to capital contributions, provided that the issuer company has registered its shares for trading in the stock exchange (ii) 0% for the outflow of
resources from Brazil related to these type of investments, including payments of dividends and interest on shareholders equity and the repatriation of funds invested in the Brazilian market. Furthermore, the IOF/Exchange is currently levied
at a 0% rate on the withdrawal of ADSs into shares.

In any case, the Brazilian federal government may increase the rate at any time, up
to 25.0%. However, any increase in rates may only apply to future transactions.

Tax on Transactions Involving Bonds and Securities
(IOF/Bonds). Pursuant to Decree 6,306/07the IOF/Bonds may be imposed on any transactions involving bonds and securities, even if the transactions are carried out on a Brazilian stock exchange. The rate of IOF/Bonds applicable to
transactions involving common shares is currently zero. In particular, the IOF/Bond also levies at a zero percent rate on the transfer of shares traded on the Brazilian stock exchange with the purpose of the issuance of depositary receipts to be
traded outside Brazil. The Brazilian federal government may increase the rate of the IOF/Bonds at any time by up to 1.5% per day of the transaction amount, but only in respect of future transactions.



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Other Brazilian Taxes . There are no Brazilian federal inheritance, gift or succession
taxes applicable to the ownership, transfer or disposition of common shares or ADSs by a Non-Brazilian Holder. Gift and inheritance taxes, however, may be levied by some states of Brazil on gifts made or inheritances bestowed by Non-Brazilian
Holders to individuals or entities resident or domiciled within such states in Brazil. There are no Brazilian stamp, issue, registration or similar taxes or duties payable by holders of common shares or ADSs.

Material U.S. Federal Income Tax Consequences

The following discussion, subject to the limitations and conditions set forth herein, summarizes certain U.S. federal income tax consequences
of the purchase, ownership and disposition of Embraer common shares and ADSs. This discussion only applies to beneficial owners of Embraer common shares or ADSs that are U.S. Holders (as defined below) that hold common shares or ADSs of
Embraer as capital assets (generally for investment purposes). This discussion does not address all aspects of U.S. federal income taxation that may be applicable to a U.S. Holder, including, gift, estate, alternative minimum and Medicare
contribution tax consequences, or the tax consequences to U.S. Holders subject to special treatment under U.S. federal income tax law, including:



| |  |  | partnerships and other entities classified as partnerships for U.S. federal income tax purposes;
| | - |  | ------------------------------------------------------------------------------------------------



| |  |  | tax-exempt entities;
| | - |  | --------------------



| |  |  | dealers and traders in securities or foreign currencies;
| | - |  | --------------------------------------------------------



| |  |  | insurance companies;
| | - |  | --------------------



| |  |  | certain financial institutions;
| | - |  | -------------------------------



| |  |  | persons who own Embraer common shares or ADSs as part of an integrated investment, including a straddle, hedging or conversion transaction, comprising the Embraer common shares or ADSs and one or more other positions
for tax purposes;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | persons whose functional currency is not the U.S. dollar for U.S. federal income tax purposes;
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | persons who actually or constructively own 10% or more of Embraers voting stock;
| | - |  | ---------------------------------------------------------------------------------



| |  |  | persons who acquired Embraer common shares or ADSs pursuant to the exercise of any employee stock option or otherwise as compensation; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | persons holding Embraer common shares or ADSs in connection with a trade or business conducted outside the United States.
| | - |  | -------------------------------------------------------------------------------------------------------------------------

In addition, there is no discussion of state, local, or non-U.S. tax considerations of the purchase, ownership and disposition of Embraer
common shares or ADSs. The discussion is based upon the provisions of the Internal Revenue Code of 1986, as amended, or Code, its legislative history, existing final, temporary, and proposed U.S. Treasury regulations, rulings and other
pronouncements of the U.S. Internal Revenue Service, or IRS, and judicial decisions as of the date of this annual report. Such authorities may be repealed, revoked or modified (with possible retroactive effect) so as to result in U.S. federal income
tax consequences different from those discussed below.

This discussion is also based in part on the representations of the depositary and
the assumption that each obligation in the deposit agreement and any related agreement will be performed in accordance with its terms.

Shareholders are urged to consult their own independent tax advisors concerning the U.S. federal income tax consequences of the ownership
of Embraer common shares and ADSs in light of their particular situations, as well as any consequences arising under the laws of any other taxing jurisdiction.



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As used herein, the term U.S. Holder means a beneficial owner of Embraer common
shares or ADSs representing Embraer common shares that is (1) an individual who is a citizen or resident of the United States, (2) a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the
United States, any State or the District of Columbia, (3) an estate the income of which is subject to U.S. federal income taxation regardless of its source or (4) a trust (i) that is subject to the supervision of a court within the
United States and the control of one or more U.S. persons as described in Section 7701(a)(30) of the Code or (ii) that has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person. Except where
specifically described below, this discussion assumes that we are not a controlled foreign corporation or a passive foreign investment company, or PFIC, in either case, for U.S. federal income tax purposes.

If a partnership (or an entity treated as a partnership for U.S. federal income tax purposes) holds Embraer common shares or ADSs, the tax
treatment of such partnership and each partner will generally depend upon the status of the partner in such partnership. Partnerships that hold Embraer common shares or ADSs, and partners of a partnership holding such common shares or ADSs, are
urged to consult their own tax advisors regarding the consequences of the purchase, ownership and disposition of Embraer common shares or ADSs.

In general, for U.S. federal income tax purposes, a U.S. Holder who is a beneficial owner of an ADS will be treated as the owner of the
underlying Embraer common shares that are represented by such ADS. The U.S. Treasury has expressed concerns that parties to whom ADSs are pre-released before shares are delivered to the depositary, or intermediaries in the chain of ownership between
holders of ADSs and the issuer of the security underlying the ADSs, may be taking actions that are inconsistent with the claiming of foreign tax credits by holders of ADSs. Accordingly, the creditability of any Brazilian taxes could be affected by
actions taken by such parties or intermediaries. Deposits or withdrawals of underlying shares by U.S. Holders for ADSs will not be subject to U.S. federal income tax.

Distributions on Embraer Common Shares or ADSs

For U.S. federal income tax purposes, the gross amount of any distributions (including distributions of notional interest charges attributed to
shareholders equity) paid to U.S. Holders of Embraer common shares or ADSs (including Brazilian withholding taxes imposed on such distributions) will be treated as a dividend, to the extent paid out of current or accumulated earnings and
profits of Embraer as determined under U.S. federal income tax principles. Such a dividend will be includable in the gross income of a U.S. Holder as ordinary income on the date received or accrued by the U.S. Holder. To the extent that the amount
of any distribution exceeds Embraers current and accumulated earnings and profits for a taxable year (as determined under U.S. federal income tax principles), the distribution will first be treated as a tax-free return of capital to the extent
of a U.S. Holders adjusted tax basis in the Embraer common shares or ADSs, and thereafter as capital gain. Because we do not expect to maintain earnings and profits in accordance with U.S. federal income tax principles, U.S. Holders should
expect that a distribution will be treated as a dividend for U.S. federal income tax purposes.

Dividends paid by Embraer will not be
eligible for the dividends received deduction allowed to corporations under the Code.

The amount of any cash distribution paid in
reais will be included in a U.S. Holders gross income in an amount equal to the U.S. dollar value of the reais calculated by reference to the exchange rate in effect on the date the dividend is received or accrued by the U.S.
Holder, in the case of Embraer common shares, and by the depositary, in the case of ADSs, regardless of whether the reais are converted into U.S. dollars. If the reais received as a dividend are not converted into U.S. dollars on the
date of receipt, a U.S. Holder will have a tax basis in the reais equal to their U.S. dollar value on the date of receipt. Any gain or loss realized on a subsequent conversion or other disposition of the reais will be treated as U.S.
source ordinary income or loss for U.S. federal income tax purposes.

Subject to the discussion above regarding concerns expressed by the
U.S. Treasury and a number of other complex limitations and conditions, a U.S. Holder will generally be entitled to claim a U.S. foreign tax credit in respect of any Brazilian withholding taxes imposed on dividends received on Embraers common
shares or ADSs. U.S. Holders who do not elect to claim a credit for foreign taxes may instead claim a deduction in respect of such Brazilian withholding taxes. Dividends received with respect to the Embraer common shares or ADSs will be treated as
foreign source income for U.S. federal income tax purposes, and will be passive category income for purposes of calculating foreign tax credits in most cases, subject to various limitations. The rules relating to computing foreign tax
credits or deducting foreign income taxes are extremely complex, and U.S. Holders are urged to consult their own independent tax advisors regarding the availability of foreign tax credits with respect to any Brazilian withholding taxes in regards of
dividends paid on Embraers common shares or ADSs.



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Subject to certain exceptions for short-term and hedged positions, the amount of dividends
received by certain non-corporate U.S. holders (including individuals) with respect to the Embraer common shares or ADSs may be eligible for a reduced rate of taxation if the dividends represent qualified dividend income. Dividends paid
on the Embraer common shares or ADSs will be treated as qualified dividend income if (1) the Embraer common shares or ADSs are readily tradable on an established securities market in the United States and (2) Embraer was not in the year
prior to the year in which the dividend was paid (with respect to a U.S. Holder that held Embraer common shares or ADSs), and is not in the year in which the dividend is paid, a passive foreign investment company, or PFIC. Under guidance issued by
the IRS, the ADSs of Embraer should qualify as readily tradable on an established securities market in the United States so long as they are listed on the NYSE. In the case of Embraer common shares held directly by U.S. Holders and not underlying an
ADS, it is not clear whether dividends paid with respect to such shares will represent qualified dividend income. U.S. Holders holding Embraer common shares directly and not through an ADS are urged to consult their own independent tax
advisors.

Based on its audited financial statements as well as relevant market and shareholder data, Embraer believes that it was not a
PFIC for U.S. federal income tax purposes with respect to its 2015 taxable year. In addition, based on Embraers audited or projected financial statements and current expectations regarding the value and nature of its assets, the sources and
nature of its income, and relevant market and shareholder data, Embraer does not anticipate becoming a PFIC for its 2016 taxable year. However, because this determination is based on the nature of Embraers income and assets from time to time,
involves the application of complex tax rules, and since Embraers view is not binding in the courts or the IRS, no assurances can be provided that Embraer [(or its predecessor)] will not be considered a PFIC for the current, or any past or
future tax year. The potential application of the PFIC rules is further discussed below.

Sale, Exchange or Other Taxable Disposition of Embraer
Common Shares or ADSs

A U.S. Holder will recognize a taxable gain or loss on any sale, exchange or other taxable disposition of
Embraer common shares or ADSs in an amount equal to the difference between the amount realized on the sale, exchange or other taxable disposition and the U.S. Holders adjusted tax basis (determined in U.S. dollars) in the Embraer common shares
or ADSs. Such gain or loss will generally be capital gain or loss and will be long-term capital gain or loss if the Embraer common shares or ADSs have a holding period of more than one year. Certain non-corporate U.S. Holders (including individuals)
may be eligible for preferential rates of U.S. federal income tax in respect of long-term capital gains. The deductibility of capital losses is subject to limitations under the Code.

Any gain or loss recognized by a U.S. Holder from the sale, exchange or taxable disposition of Embraer common shares or ADSs generally will be
gain or loss from U.S. sources for U.S. foreign tax credit purposes. Consequently, if a Brazilian withholding tax or capital gains tax is imposed pursuant to a sale of Embraer common shares or ADSs, U.S. Holders who do not have sufficient foreign
source income might not be able to derive effective U.S. foreign tax credit benefit in respect of such Brazilian withholding tax or capital gains tax. The rules relating to foreign tax credits, including the amount of foreign income taxes that may
be claimed as a credit in any given year, are extremely complex and subject to limitations. U.S. Holders are urged to consult their own independent tax advisor regarding the application of the foreign tax credit rules to their particular
circumstances.

Deposits and withdrawals of Embraer common shares in exchange for ADSs will not result in the realization of gain or loss
for U.S. federal income tax purposes.

Passive Foreign Investment Company Rules

If, during any taxable year of a non-U.S. corporation, 75% or more of the corporations gross income consists of certain types of
passive income, or the average value during a taxable year of the passive assets of the corporation (generally assets that generate passive income) is 50% or more of the average value of all the corporations assets, the
corporation will be treated as a PFIC under U.S. federal income tax law. If a corporation is treated as a PFIC, a U.S. Holder may be subject to increased tax liability upon the sale of its stock, or upon the receipt of certain dividends, unless such
U.S. Holder makes an election to be taxed currently on its pro rata portion of the corporations income, whether or not such income is distributed in the form of dividends, or otherwise makes a mark-to-market election with
respect to the corporations stock as permitted by the Code. Currently, a U.S. Holder who owns common shares or ADSs in any year that Embraer is a PFIC in excess of certain de minimis amounts and fails to qualify for certain other exemptions
would be required to file IRS Form 8621 to report such holdings. In addition, as discussed above, a U.S. Holder would not be entitled to (if otherwise eligible for) the preferential reduced rate of tax payable on certain dividend income. As stated
above, although no assurances can be given, based on Embraers operations, projections and business plans and the other items discussed above, Embraer does not believe that it (or its predecessor) was or currently is a PFIC, and does not expect
to become a PFIC for subsequent taxable years.





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U.S. Holders are urged to consult their own independent tax advisors regarding the potential
application of the PFIC rules and related reporting requirements to the common shares or ADSs and the availability and advisability of making an election to avoid the adverse tax consequences of the PFIC rules should Embraer be considered a PFIC for
any taxable year.

Information Reporting and Backup Withholding

In general, payments of dividends on Embraer common shares or ADSs, and payments of the proceeds of the sale, exchange or other disposition of
Embraer common shares or ADSs, paid within the United States or through certain U.S.-related financial intermediaries to a U.S. Holder may be subject to information reporting and backup withholding at a current maximum rate of 28% unless the U.S.
Holder (1) is a corporation or other exempt recipient or (2) in the case of backup withholding, provides an accurate taxpayer identification number and certifies that no loss of exemption from backup withholding has occurred. Backup
withholding is not an additional tax. The amount of any backup withholding from a payment to a U.S. Holder will be allowed as a refund or a credit against the U.S. Holders U.S. federal income tax liability, provided the required information is
timely provided to the IRS. A U.S. Holder generally may obtain a refund of any amounts withheld under the backup withholding rules that exceed its U.S. federal income tax liability by filing a timely refund claim with the IRS.

In addition, certain U.S. Holders are required to report to the IRS information relating to an interest in the shares or ADSs, subject to
exceptions (including an exception for shares or ADSs held in accounts maintained by certain financial institutions), by attaching a complete IRS Form 8938, Statement of Specified Foreign Financial Assets, with its tax return for each year in which
it held an interest in the shares or ADSs. U.S. Holders are urged to consult their own tax advisors regarding the effect, if any, of this information reporting requirement on their acquisition, ownership and disposition of the shares or ADSs.

10F.  Dividends and Paying Agents

Not applicable.

10G.  Statements by Experts

Not applicable.

10H.  Documents on Display

We are subject to the periodic reporting and other informational requirements of the Exchange Act. Accordingly, we are required to file reports
and other information with the SEC. You may inspect and obtain copies, at prescribed rates, of reports and other information filed by us with the SEC at its Public Reference Room maintained at 100 F Street, N.E., Washington, D.C. 20549. You may
obtain information on the operation of the Public Reference Room by calling the SEC in the United States at 1-800-SEC-0330. You may also inspect and copy this material at the offices of the New York Stock Exchange, Inc., 20 Broad Street, New York,
New York 10005.

We file our annual report on Form 20-F, including our financial statements, and other reports, including our reports on
Form 6-K, electronically with the SEC. These filings are available at www.sec.gov. We also file financial statements and other periodic reports electronically with the CVM at its website, www.cvm.gov.br. Copies of our annual reports on Form 20-F and
documents referred to in this annual report and our bylaws will be available for inspection upon request at our headquarters at Av. Brigadeiro Faria Lima, 2170, 12227-901 São José dos Campos, São Paulo State, Brazil.



125



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10I.  Subsidiary Information

Not required.

ITEM 
11.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to various market
risks, primarily related to potential loss arising from adverse changes in interest rates and foreign currency exchange rates. We have established policies and procedures to manage sensitivity to interest rate and foreign currency exchange rate
risk. These procedures include the monitoring of our levels of exposure to each market risk, including an analysis based on forecast of future cash flows, the funding of variable rate assets with variable rate liabilities, and limiting the amount of
fixed rate assets which may be funded with floating rate liabilities. We may also use derivative financial instruments to mitigate the effects of interest rate fluctuations and to reduce our exposure to exchange rate risk. The following sections
address the significant market risks associated with our financial activities.

Interest Rate Risk

Our exposure to market risk for interest rate fluctuations principally relates to changes in the market interest rates of our U.S.
dollar-denominated and real-denominated monetary assets and liabilities, principally our short- and long-term debt obligations. Increases and decreases in prevailing interest rates generally translate into increases and decreases in interest
expense. Additionally, the fair values of interest rate-sensitive instruments are also affected by general market conditions.

Our short
and long-term debt obligations totaled US$3,530.5 million at December 31, 2015 and were denominated in U.S. dollars, Brazilian reais and Euros. Of the total amount of debt denominated in U.S. dollars (i.e., US$2,700.7 million),
approximately US$2,420.8 million was subject to fixed rates. The remaining floating rate U.S. dollar-denominated debt was indexed to LIBOR. Of our US$807.6 million Brazilian real-denominated debt at December 31, 2015, US$22.5 million
bears interest at a variable rate based on the TJLP, and US$785.1 million bears interest at a fixed rate of 5.78% per annum. The TJLP was 7.0% per annum at December 31, 2015. Our Euro-denominated debt totaled US$22.2 million at fixed
rate at December 31, 2015.

The table below provides information about our short-term debt obligations as of December 31, 2015
that are sensitive to changes in interest rates and foreign currency exchange rates.



|                             |  |                                        |      |       |                         |  |       |                 |  |  |       | 
|---------------------------- |  | -------------------------------------- | ---- | ----- | ----------------------- |  | ----- | --------------- |  |  | ----- | 
|                             |  | Weighted Average Interest Rate 2015(1) |      |       | Total AmountOutstanding |  |       | Total FairValue | 
|Short-Term Debt              |  | (%)                                    |      |       | (in US$ millions)       | 
|U.S. dollars (fixed rate)    |  |                                        | 5.58 |       |                         |  | 27.4  |                 |  |  | 27.4  | 
|U.S. dollars (LIBOR indexed) |  |                                        | 2.36 |       |                         |  | 8.3   |                 |  |  | 8.3   | 
|Euro (fixed rate)            |  |                                        | 1.79 |       |                         |  | 6.9   |                 |  |  | 6.9   | 
|Euro (EURIBOR indexed)       |  |                                        |     |       |                         |  |      |                 |  |  |      | 
|Reais(fixed rate)            |  |                                        | 5.60 |       |                         |  | 168.1 |                 |  |  | 168.1 | 
|Reais (CDI indexed)          |  |                                        |     |       |                         |  |      |                 |  |  |      | 
|Reais (TJLP indexed)         |  |                                        | 7.58 |       |                         |  | 8.6   |                 |  |  | 8.6   | 
|                             |  |                                        |      |       |                         |  |       |                 |  |  |       | 
|Total short-term debt        |  |                                        |      | 219.3 |                         |  |       | 219.3           | 
|                             |  |                                        |      |       |                         |  |       |                 |  |  |       | 



|(1) | The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term), it does not represent the indexed rates in December 31, 2015.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



126



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The table below provides information about our long-term debt obligations as of December 31,
2015 that are sensitive to changes in interest rates and foreign currency exchange rates:



|                             |  |                                     |      |         |                        |  |         |       |  |  |       |       |  |      |       |       |      |  |      |                     |  |  |                |         |  |  |        |         |  |  |        | 
|---------------------------- |  | ----------------------------------- | ---- | ------- | ---------------------- |  | ------- | ----- |  |  | ----- | ----- |  | ---- | ----- | ----- | ---- |  | ---- | ------------------- |  |  | -------------- | ------- |  |  | ------ | ------- |  |  | ------ | 
|                             |  | WeightedAverageInterest Rate2015(1) |      |         | TotalAmountOutstanding |  |         | 2017  |  |  | 2018  |       |  | 2019 |       |       | 2020 |  |      | 2021 andthere-after |  |  | TotalFairValue |        
|Long-Term Debt               |  |                                     | (%)  |         |                        |  |         |       |  |  |       |       |  |      |       |       |      |  |      |                     |  |  |                |         |  |  |        |         |  |  |        | 
|U.S. dollars (fixed rate)    |  |                                     | 5.58 |         |                        |  | 2,393.2 |       |  |  | 245.3 |       |  |      | 0.4   |       |      |  | 0.3  |                     |  |  | 160.5          |         |  |  | 1986.7 |         |  |  | 2545.5 | 
|U.S. dollars (LIBOR indexed) |  |                                     | 2.36 |         |                        |  | 271,7   |       |  |  | 2.0   |       |  |      | 2.0   |       |      |  | 20.1 |                     |  |  | 2.1            |         |  |  | 245.5  |         |  |  | 271.7  | 
|Euro (fixed rate)            |  |                                     | 1.79 |         |                        |  | 15.3    |       |  |  | 3.0   |       |  |      | 9.7   |       |      |  | 1.3  |                     |  |  | 1.3            |         |  |  |       |         |  |  | 15.3   | 
|Euro (EURIBOR indexed)       |  |                                     |     |         |                        |  |        |       |  |  |      |       |  |      |      |       |      |  |     |                     |  |  |               |         |  |  |       |         |  |  |       | 
|Reais(fixed rate)            |  |                                     | 5.60 |         |                        |  | 617,0   |       |  |  | 165.6 |       |  |      | 229.0 |       |      |  | 78.5 |                     |  |  | 64.0           |         |  |  | 79.9   |         |  |  | 617.0  | 
|Reais (CDI indexed)          |  |                                     |     |         |                        |  |        |       |  |  |      |       |  |      |      |       |      |  |     |                     |  |  |               |         |  |  |       |         |  |  |       | 
|Reais (TJLP indexed)         |  |                                     | 7.58 |         |                        |  | 13,9    |       |  |  | 8.6   |       |  |      | 3.5   |       |      |  | 0.5  |                     |  |  | 0.5            |         |  |  | 0.8    |         |  |  | 13.9   | 
|                             |  |                                     |      |         |                        |  |         |       |  |  |       |       |  |      |       |       |      |  |      |                     |  |  |                |         |  |  |        |         |  |  |        | 
|Total long-term debt         |  |                                     |      | 3,311.1 |                        |  |         | 424.5 |  |  |       | 244.6 |  |      |       | 100.7 |      |  |      | 228.4               |  |  |                | 2,312.9 |  |  |        | 3,463.4 | 
|                             |  |                                     |      |         |                        |  |         |       |  |  |       |       |  |      |       |       |      |  |      |                     |  |  |                |         |  |  |        |         |  |  |        | 



|(1) | The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term), it does not represent the indexed rates in December 31, 2015.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In order to manage our interest rate risk on our monetary liabilities, we have entered into a number of swaps, which effectively convert
US$605.6 million of our fixed interest rate, Brazilian real-denominated debt into floating interest rate, Brazilian real-denominated obligations and convert US$3.8 million of our floating interest rate, U.S. dollar-denominated debt to fixed interest
rate, U.S. dollar-denominated obligations.

The table below provides information about our short-term debt obligations as of
December 31, 2015, after considering the effects of the above mentioned derivative transactions:



|                             |  |                                      |      |  |                         |  |                   |                  |  |  |       | 
|---------------------------- |  | ------------------------------------ | ---- |  | ----------------------- |  | ----------------- | ---------------- |  |  | ----- | 
|                             |  | Weighted AverageInterestRate 2015(1) |      |  | Total AmountOutstanding |  |                   | Total Fair Value | 
|Short-Term Debt              |  |                                      | (%)  |  |                         |  | (in US$ millions) |                 
|U.S. dollars (fixed rate)    |  |                                      | 5.58 |  |                         |  | 27.8              |                  |  |  | 27.8  | 
|U.S. dollars (LIBOR indexed) |  |                                      | 2.37 |  |                         |  | 7.9               |                  |  |  | 7.9   | 
|Euro (fixed rate)            |  |                                      | 1.79 |  |                         |  | 6.9               |                  |  |  | 6.9   | 
|Euro (EURIBOR indexed)       |  |                                      |     |  |                         |  |                  |                  |  |  |      | 
|Reais(fixed rate)            |  |                                      | 8.89 |  |                         |  | 29.4              |                  |  |  | 29.4  | 
|Reais (CDI indexed)          |  |                                      | 5.67 |  |                         |  | 138.7             |                  |  |  | 138.7 | 
|Reais (TJLP indexed)         |  |                                      | 7.58 |  |                         |  | 8.6               |                  |  |  | 8.6   | 
|                             |  |                                      |      |  |                         |  |                   |                  |  |  |       | 
|Total short-term debt        |  |                                      |      |  |                         |  | 219.3             |                  |  |  | 219.3 | 
|                             |  |                                      |      |  |                         |  |                   |                  |  |  |       | 



|(1) | The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term), it does not represent the indexed rates in December 31, 2015.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------



127



---

The table below provides information about our long-term debt obligations as of December 31,
2015, after considering the effects of the above mentioned derivative transactions:



|                             |  |                                     |      |         |                        |  |                   |       |  |  |       |       |  |      |       |       |      |  |      |                    |  |  |                |         |  |  |         |         |  |  |         | 
|---------------------------- |  | ----------------------------------- | ---- | ------- | ---------------------- |  | ----------------- | ----- |  |  | ----- | ----- |  | ---- | ----- | ----- | ---- |  | ---- | ------------------ |  |  | -------------- | ------- |  |  | ------- | ------- |  |  | ------- | 
|                             |  | WeightedAverageInterest Rate2015(1) |      |         | TotalAmountOutstanding |  |                   | 2017  |  |  | 2018  |       |  | 2019 |       |       | 2020 |  |      | 2021 andthereafter |  |  | TotalFairValue |        
|Long-Term Debt               |  |                                     | (%)  |         |                        |  | (in US$ millions) |      
|U.S. dollars (fixed rate)    |  |                                     | 5.58 |         |                        |  | 2,396.6           |       |  |  | 245.7 |       |  |      | 0.8   |       |      |  | 0.8  |                    |  |  | 161.0          |         |  |  | 1,988.3 |         |  |  | 2,548.9 | 
|U.S. dollars (LIBOR indexed) |  |                                     | 2.37 |         |                        |  | 268.3             |       |  |  | 1.6   |       |  |      | 1.6   |       |      |  | 19.6 |                    |  |  | 1.6            |         |  |  | 243.9   |         |  |  | 268.3   | 
|Euro (fixed rate)            |  |                                     | 1.79 |         |                        |  | 15.3              |       |  |  | 3.0   |       |  |      | 9.7   |       |      |  | 1.3  |                    |  |  | 1.3            |         |  |  |        |         |  |  | 15.3    | 
|Euro (EURIBOR indexed)       |  |                                     |     |         |                        |  |                  |       |  |  |      |       |  |      |      |       |      |  |     |                    |  |  |               |         |  |  |        |         |  |  |        | 
|Reais (fixed rate)           |  |                                     | 8.89 |         |                        |  | 150.1             |       |  |  | 40.6  |       |  |      | 104.4 |       |      |  | 5.1  |                    |  |  |               |         |  |  |        |         |  |  | 150.1   | 
|Reais (CDI indexed)          |  |                                     | 5.67 |         |                        |  | 466.9             |       |  |  | 125.0 |       |  |      | 124.6 |       |      |  | 73.4 |                    |  |  | 64.0           |         |  |  | 79.9    |         |  |  | 466.9   | 
|Reais (TJLP indexed)         |  |                                     | 7.58 |         |                        |  | 13.9              |       |  |  | 8.6   |       |  |      | 3.5   |       |      |  | 0.5  |                    |  |  | 0.5            |         |  |  | 0.8     |         |  |  | 13.9    | 
|                             |  |                                     |      |         |                        |  |                   |       |  |  |       |       |  |      |       |       |      |  |      |                    |  |  |                |         |  |  |         |         |  |  |         | 
|Total long-term debt         |  |                                     |      | 3,311.1 |                        |  |                   | 424.5 |  |  |       | 244.6 |  |      |       | 100.7 |      |  |      | 228.4              |  |  |                | 2,312.9 |  |  |         | 3,463.4 | 
|                             |  |                                     |      |         |                        |  |                   |       |  |  |       |       |  |      |       |       |      |  |      |                    |  |  |                |         |  |  |         |         |  |  |         | 



|(1) | The interest rate refers exclusively to the weighted average of our indebtedness (short-term and long-term), it does not represent the indexed rates in December 31, 2015.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Foreign Exchange Rate Risk

In managing
our foreign currency risk, we focus on balancing our non-U.S. dollar-denominated assets against our non-U.S. dollar-denominated liabilities plus shareholders equity in relation to our forecasts of future cash flows. Beyond the foreign currency
exposure related to our debt obligations as summarized above, we also have other assets and liabilities denominated in currencies other than the U.S. dollar. These monetary assets and liabilities are primarily cash and cash equivalents, financial
assets, accounts receivable and payable, deferred income taxes, dividends and certain other assets and liabilities and are primarily denominated in Brazilian reais. The effects on such assets and liabilities of the appreciation or devaluation
of other foreign currencies against the U.S. dollar result in foreign exchange gains (losses) recognized as interest income (expense), net. The translation gains and losses arising from the remeasurement of our financial statements to U.S. dollars
are recognized on our Statement of Income as foreign exchange gain (loss), net.

Our cash flow exposure comes as a result of the fact that
approximately 8.0% of our net revenues and 15.0% of our total costs are denominated in reais.Having more real denominated costs than revenues generates such exposure. For further information on our hedges and derivate instruments, see
Note 8 to our audited consolidated financial statements as of and for the year ended December 31, 2015.

The table below provides
information about our assets and liabilities exposed to foreign currency risk as of December 31, 2015, as well as the derivative transactions outstanding at the same date:



|                                                    |  |                        |                   |  |                                                                       |  |         |      |  |  |      |  |  |      |     |  |      |  |     |            |  |  |                |  |  |  |     |  |  |  |         | 
|--------------------------------------------------- |  | ---------------------- | ----------------- |  | --------------------------------------------------------------------- |  | ------- | ---- |  |  | ---- |  |  | ---- | --- |  | ---- |  | --- | ---------- |  |  | -------------- |  |  |  | --- |  |  |  | ------- | 
|                                                    |  |                        |                   |  | Financial instruments indexed to currencies other than the U.S.dollar | 
|                                                    |  |                        |                   |  | Outstanding Amount by Year of Maturity                                | 
|                                                    |  | TotalOutstandingAmount |                   |  | 2016                                                                  |  |         | 2017 |  |  | 2018 |  |  | 2019 |     |  | 2020 |  |     | Thereafter |  |  | TotalFairValue | 
|                                                    |  |                        | (in US$ millions) | 
|ASSETS                                              |  |                        |                   |  |                                                                       |  |         |      |  |  |      |  |  |      |     |  |      |  |     |            |  |  |                |  |  |  |     |  |  |  |         | 
|Cash and cash equivalents and financial investments |  |                        |                   |  |                                                                       |  |         |      |  |  |      |  |  |      |     |  |      |  |     |            |  |  |                |  |  |  |     |  |  |  |         | 
|In Reais                                            |  |                        | 1,015.9           |  |                                                                       |  | 1,015.9 |      |  |  |     |  |  |      |    |  |      |  |    |            |  |  |               |  |  |  |    |  |  |  | 1,015.9 | 
|In Euro                                             |  |                        | 16.0              |  |                                                                       |  | 16.0    |      |  |  |     |  |  |      |    |  |      |  |    |            |  |  |               |  |  |  |    |  |  |  | 16.0    | 
|In Other Currencies                                 |  |                        | 91.0              |  |                                                                       |  | 91.0    |      |  |  |     |  |  |      |    |  |      |  |    |            |  |  |               |  |  |  |    |  |  |  | 91.0    | 
|Trade accounts receivable                           |  |                        |                   |  |                                                                       |  |         |      |  |  |      |  |  |      |     |  |      |  |     |            |  |  |                |  |  |  |     |  |  |  |         | 
|In Reais                                            |  |                        | 65.8              |  |                                                                       |  | 65.8    |      |  |  |     |  |  |      |    |  |      |  |    |            |  |  |               |  |  |  |    |  |  |  | 65.8    | 
|In Euro                                             |  |                        | 98.7              |  |                                                                       |  | 98.7    |      |  |  |     |  |  |      |    |  |      |  |    |            |  |  |               |  |  |  |    |  |  |  | 98.7    | 
|In Other Currencies                                 |  |                        | 1.1               |  |                                                                       |  | 1.1     |      |  |  |     |  |  |      |    |  |      |  |    |            |  |  |               |  |  |  |    |  |  |  | 1.1     | 
|Deferred income tax assets                          |  |                        |                   |  |                                                                       |  |         |      |  |  |      |  |  |      |     |  |      |  |     |            |  |  |                |  |  |  |     |  |  |  |         | 
|In Reais                                            |  |                        |                  |  |                                                                       |  |        |      |  |  |     |  |  |      |    |  |      |  |    |            |  |  |               |  |  |  |    |  |  |  |        | 
|In Euro                                             |  |                        | 13.1              |  |                                                                       |  | 1.2     |      |  |  | 1.2  |  |  |      | 1.2 |  |      |  | 1.1 |            |  |  | 1.2            |  |  |  | 7.2 |  |  |  | 13.1    | 
|In Other Currencies                                 |  |                        | 4.3               |  |                                                                       |  | 0.4     |      |  |  | 0.4  |  |  |      | 0.4 |  |      |  | 0.4 |            |  |  | 0.4            |  |  |  | 2.3 |  |  |  | 4.3     | 



128



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|                                             |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|-------------------------------------------- |  | ---------------------------------------------------------------------- | ----------------- | - | -------------------------------------- |  | ------- | ---- |  |  | ------ | - |  | ---- | ------ | - | ---- |  | ------ | ---------- |  |  | -------------- | - |  |  | ------ | - |  |  | -------- | -
|                                             |  | Financial instruments indexed to currencies other than the U.S. dollar |                  
|                                             |  |                                                                        |                   |   | Outstanding Amount by Year of Maturity | 
|                                             |  | TotalOutstandingAmount                                                 |                   |   | 2016                                   |  |         | 2017 |  |  | 2018   |   |  | 2019 |        |   | 2020 |  |        | Thereafter |  |  | TotalFairValue |  
|                                             |  |                                                                        | (in US$ millions) |  
|Other assets                                 |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|InReais                                      |  |                                                                        | 251.7             |   |                                        |  | 141.9   |      |  |  | 109.8  |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 251.7    |  
|In Euro                                      |  |                                                                        | 20.1              |   |                                        |  | 10.4    |      |  |  | 9.7    |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 20.1     |  
|In Other Currencies                          |  |                                                                        | 3.4               |   |                                        |  | 3.4     |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 3.4      |  
|Total assets in Reais                        |  |                                                                        | 1,333.4           |   |                                        |  | 1,223.6 |      |  |  | 109.8  |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 1,333.4  |  
|Total assets in Euro                         |  |                                                                        | 147.9             |   |                                        |  | 126.3   |      |  |  | 10.9   |   |  |      | 1.2    |   |      |  | 1.1    |            |  |  | 1.2            |   |  |  | 7.2    |   |  |  | 147.9    |  
|Total assets in Other Currencies             |  |                                                                        | 99.8              |   |                                        |  | 95.9    |      |  |  | 0.4    |   |  |      | 0.4    |   |      |  | 0.4    |            |  |  | 0.4            |   |  |  | 2.3    |   |  |  | 99.8     |  
|LIABILITIES                                  |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|Loans                                        |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|In Reais                                     |  |                                                                        | 807.6             |   |                                        |  | 176.7   |      |  |  | 174.2  |   |  |      | 232.5  |   |      |  | 79.0   |            |  |  | 64.4           |   |  |  | 80.8   |   |  |  | 807.6    |  
|In Euro                                      |  |                                                                        | 22.2              |   |                                        |  | 6.9     |      |  |  | 3.0    |   |  |      | 9.7    |   |      |  | 1.3    |            |  |  | 1.3            |   |  |  |       |   |  |  | 22.2     |  
|In Other Currencies                          |  |                                                                        |                  |   |                                        |  |        |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  |         |  
|Accounts payable to suppliers                |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|In Reais                                     |  |                                                                        | 83.9              |   |                                        |  | 83.9    |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 83.9     |  
|In Euro                                      |  |                                                                        | 102.3             |   |                                        |  | 102.3   |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 102.3    |  
|In Other Currencies                          |  |                                                                        | 5.9               |   |                                        |  | 5.9     |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 5.9      |  
|Customer advances                            |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|In Reais                                     |  |                                                                        | 203.7             |   |                                        |  | 203.7   |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 203.7    |  
|Other accounts payable & accrued liabilities |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|In Reais                                     |  |                                                                        | 341.5             |   |                                        |  | 246.9   |      |  |  | 94.6   |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 341.5    |  
|In Euro                                      |  |                                                                        | 48.8              |   |                                        |  | 31.5    |      |  |  | 17.3   |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 48.8     |  
|In Other Currencies                          |  |                                                                        | 4.7               |   |                                        |  | 4.5     |      |  |  | 0.2    |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 4.7      |  
|Taxes and payroll charges payable            |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|In Reais                                     |  |                                                                        | 166.0             |   |                                        |  | 84.5    |      |  |  | 24.5   |   |  |      | 16.6   |   |      |  | 9.0    |            |  |  | 5.6            |   |  |  | 25.8   |   |  |  | 166.0    |  
|In Euro                                      |  |                                                                        | 5.8               |   |                                        |  | 5.8     |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 5.8      |  
|In Other Currencies                          |  |                                                                        | 0.2               |   |                                        |  | 0.2     |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 0.2      |  
|Accrued taxes on income                      |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|In Reais                                     |  |                                                                        | 53.8              |   |                                        |  | 53.8    |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 53.8     |  
|In Euro                                      |  |                                                                        | 9.9               |   |                                        |  | 9.9     |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 9.9      |  
|In Other Currencies                          |  |                                                                        | 3.0               |   |                                        |  | 3.0     |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 3.0      |  
|Deferred income tax liabilities              |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|In Reais                                     |  |                                                                        | 1,528.5           |   |                                        |  | 138.7   |      |  |  | 138.4  |   |  |      | 138.4  |   |      |  | 131.1  |            |  |  | 141.4          |   |  |  | 840.5  |   |  |  | 1,528.5  |  
|In Euro                                      |  |                                                                        | 10.7              |   |                                        |  | 1.0     |      |  |  | 1.0    |   |  |      | 1.0    |   |      |  | 0.9    |            |  |  | 1.0            |   |  |  | 5.8    |   |  |  | 10.7     |  
|In Other Currencies                          |  |                                                                        | 2.4               |   |                                        |  | 0.2     |      |  |  | 0.2    |   |  |      | 0.2    |   |      |  | 0.2    |            |  |  | 0.2            |   |  |  | 1.4    |   |  |  | 2.4      |  
|Accrued dividends                            |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|In Reais                                     |  |                                                                        | 2.7               |   |                                        |  | 2.7     |      |  |  |       |   |  |      |       |   |      |  |       |            |  |  |               |   |  |  |       |   |  |  | 2.7      |  
|Contingencies                                |  |                                                                        |                   |   |                                        |  |         |      |  |  |        |   |  |      |        |   |      |  |        |            |  |  |                |   |  |  |        |   |  |  |          |  
|In Reais                                     |  |                                                                        | 28.8              |   |                                        |  | 9.9     |      |  |  | 1.8    |   |  |      | 1.8    |   |      |  | 1.8    |            |  |  | 1.8            |   |  |  | 11.7   |   |  |  | 28.8     |  
|In Euro                                      |  |                                                                        | 7.7               |   |                                        |  | 0.1     |      |  |  | 0.7    |   |  |      | 0.7    |   |      |  | 0.7    |            |  |  | 0.7            |   |  |  | 4.8    |   |  |  | 7.7      |  
|Total liabilities in Reais                   |  |                                                                        | 3,216.5           |   |                                        |  | 1,000.8 |      |  |  | 433.5  |   |  |      | 389.3  |   |      |  | 220.9  |            |  |  | 213.2          |   |  |  | 958.8  |   |  |  | 3,216.5  |  
|Total liabilities in Euro                    |  |                                                                        | 207.4             |   |                                        |  | 157.5   |      |  |  | 22.0   |   |  |      | 11.4   |   |      |  | 2.9    |            |  |  | 3.0            |   |  |  | 10.6   |   |  |  | 207.4    |  
|Total liabilities in Other Currencies        |  |                                                                        | 16.2              |   |                                        |  | 13.8    |      |  |  | 0.4    |   |  |      | 0.2    |   |      |  | 0.2    |            |  |  | 0.2            |   |  |  | 1.4    |   |  |  | 16.2     |  
|Total exposure in Reais                      |  |                                                                        | (1,883.1          | ) |                                        |  | 222.8   |      |  |  | (323.7 | ) |  |      | (389.3 | ) |      |  | (220.9 | )          |  |  | (213.2         | ) |  |  | (958.8 | ) |  |  | (1,883.1 | )
|Total exposure in Euro                       |  |                                                                        | (59.5             | ) |                                        |  | (31.2   | )    |  |  | (11.1  | ) |  |      | (10.2  | ) |      |  | (1.8   | )          |  |  | (1.8           | ) |  |  | (3.4   | ) |  |  | (59.5    | )
|Total exposure in Other Currencies           |  |                                                                        | 83.6              |   |                                        |  | 82.1    |      |  |  |       |   |  |      | 0.2    |   |      |  | 0.2    |            |  |  | 0.2            |   |  |  | 0.9    |   |  |  | 83.6     |  



129



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Credit Risk

We may incur losses if counterparties to our various contracts do not pay amounts that are owed to us. In that regard, our primary credit risk
derives from the sales of aircraft, spare parts and related services to customers, including the financial obligations related to those sales in the cases where we provide guarantees for the benefit of the providers of finance to the aircraft
purchases of our customers. We are also exposed to the credit risk of the counterparties to our financial derivative contracts.

Financial
instruments which may potentially subject us to credit risk concentration include (1) cash and cash equivalents, (2) trade and other accounts receivable, (3) customer commercial financing, (4) advances to suppliers and
(5) financial derivative contracts. We seek to limit our credit risk associated with cash and cash equivalents by placing the investments we make with those instruments with investment grade-rated institutions in short-term securities and
mutual funds. With respect to trade accounts receivable and customer commercial financing, we seek to limit our credit risk by performing ongoing credit evaluations. All such customers are currently meeting their commitments with us, are operating
within the established credit limits that we assign to them and are considered by management to represent an acceptable credit risk level to us. Advances to suppliers are made only to select, long-standing suppliers. The financial condition of those
suppliers is analyzed on an ongoing basis with a view to limiting credit risk. We address credit risk related to derivative instruments by restricting the counterparties of such derivatives to major financial institutions.

We may also have credit risk related to the sale of aircraft during the period in which their purchasers are finalizing the financing
arrangements for their aircraft purchases from us. In order to try to minimize these risks, customer credit analyses are continuously monitored and we work closely with financial institutions to facilitate customer aircraft financing.

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

12A. Debt Securities

Not applicable.

12B. Warrants and Rights

Not applicable.

12C. Other Securities

Not applicable.

12D. American Depositary Shares





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Depositary Fees and Charges

The depositary may charge, and collect from, (i) each person to whom ADSs are issued, including, without limitation, issuances against
deposits of shares, issuances in respect to share distributions, rights and other distributions, issuances pursuant to a stock dividend or stock split declared by us, or issuances pursuant to a merger, exchange of securities or any other transaction
or event affecting the ADSs or the deposited securities, and (ii) each person surrendering ADSs for withdrawal of deposited securities or whose ADSs are cancelled or reduced for any other reason, U.S.$5.00 for each 100 ADSs (or portion thereof)
issued, delivered, reduced, cancelled or surrendered (as the case may be) plus any additional fees charged by any governmental authorities or other institutions such as the Companhia Brasileira de Liquidação e Custódia (the
Brazilian Clearing and Depositary Corporation) or the BM&FBOVESPA S.A.  Bolsa de Valores, Mercadorias e Futuros, the stock exchange on which the shares are registered for trading. The depositary may sell (by public or private sale)
sufficient securities and property received in respect of share distributions, rights and other distributions prior to such deposit to pay such charge.

The following additional charges shall be incurred by ADS Holders, by any party depositing or withdrawing shares or by any party surrendering
ADSs, to whom ADSs are issued (including, without limitation, issuances pursuant to a stock dividend or stock split declared by us or an exchange of stock regarding the ADSs or the deposited securities or a distribution of ADSs pursuant to section
10 of the deposit agreement, whichever is applicable:



| |  |  | a fee of $.02 or less per ADS for any cash distribution made pursuant to the deposit agreement;
| | - |  | -----------------------------------------------------------------------------------------------



| |  |  | a fee of U.S.$1.50 per ADS or ADSs or transfers made pursuant to section 3 of the deposit agreement;
| | - |  | ----------------------------------------------------------------------------------------------------



| |  |  | a fee for the distribution or sale of securities pursuant to section 10 of the deposit agreement, such fee being in an amount equal to the fee for the execution and delivery of ADSs, referred to above which would have
been charged as a result of the deposit of such securities (for purposes of section 7 of the deposit agreement treating all such securities as if they were shares) but which securities or the net cash proceeds from the sale thereof are instead
distributed by the depositary to ADS holders entitled thereto;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | any other charge payable by any of the depositary, any of the depositarys agents, including, without limitation, the custodian, or the agents of the depositarys agents in connection with the servicing of our
common shares or other deposited securities (which charge shall be assessed against registered holders of our ADSs as of the record date or dates set by the depositary and shall be payable at the sole discretion of the depositary by billing such
registered holders or by deducting such charge from one or more cash dividends or other cash distributions);
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | an aggregate fee of U.S.$.02 per ADS per calendar year (or portion thereof) for the services performed by the depositary in administering the ADSs (which fee may be charged on a periodic basis during each calendary year
and shall be assessed against holders as of the record date or record dates set by the depositary during each calendar year and shall be payable at the sole discretion of the depositary by billing such holders or by deducing such charge from one or
more cash dividends or other cash distributions); and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | a fee for the reimbursement of such fees, charges and expenses as are incurred by the depositary and/or any of its agents (including, without limitation, the custodian and expenses incurred on behalf of holders in
connection with compliance with foreign exchange control regulations or any law or regulation relating to foreign investment) in connection with the servicing of the shares or other deposited securities, the sale of securities (including, without
limitation, deposited securities), the delivery of deposited securities or otherwise in connection with the depositarys or its custodians compliance with applicable law, rule or regulation (which fees and charges shall be assessed on a
proportionate basis against holders as of the record date or dates set by the depositary and shall be payable at the sole discretion of the depositary by billing such holders or by deducting such charge from one or more cash dividends or other cash
distributions).
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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We will pay all other charges and expenses of the depositary and any agent of the depositary
(except the custodian) pursuant to agreements from time to time between us and the depositary, except:



| |  |  | stock transfer or other taxes and other governmental charges (which are payable by holders or persons depositing shares);
| | - |  | -------------------------------------------------------------------------------------------------------------------------



| |  |  | cable, telex and facsimile transmission and delivery charges incurred at the request of persons depositing, or holders delivering shares, ADSs or deposited securities (which are payable by such persons or holders);
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | transfer or registration fees for the registration or transfer of deposited securities on any applicable register in connection with the deposit or withdrawal of deposited securities (which are payable by persons
depositing shares or holders withdrawing deposited securities; there are no such fees in respect of the shares as of the date of the deposit agreement); and
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | in connection with the conversion of foreign currency into U.S. dollars, JPMorgan Chase Bank, N.A. (JPMorgan) shall deduct out of such foreign currency the fees, expenses and other charges charged by it
and/or its agent (which may be a division, branch or affiliate) so appointed in connection with such conversion, JPMorgan and/or its agent may act as principal for such conversion of foreign currency.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Such charges may at any time and from time to time be changed by agreement between us and the depositary.

Depositary Payments for the Year December 31, 2015

In 2015, JPMorgan Chase Bank paid US$ 2.4 million in connection with investor relations related expenses of Embraer incurred in 2015 that
are eligible for reimbursement from JPMorgan Chase Bank under our contractual arrangements with that entity.

PART II



|ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
|-------- | -----------------------------------------------

No matters to report.



|ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
|-------- | ----------------------------------------------------------------------------

Material Modifications
to the Rights of Security Holders

Not applicable.

Use of Proceeds

Not applicable.



|ITEM 15. | CONTROLS AND PROCEDURES
|-------- | -----------------------

Disclosure Controls and Procedures

Disclosure controls and procedures refers to the controls and other procedures adopted by us that are designed to ensure that information
required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SECs rules and forms, and that such information required to
be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as
appropriate to allow timely decisions regarding required disclosures.

Our President and CEO, Frederico Pinheiro Fleury Curado, and our
executive vice-president and chief financial and investor relations officer, José Antonio de Almeida Filippo, after evaluating, together with management, the effectiveness of the design and operation of our disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2015, the end of the period covered by this annual report, concluded that, as of such date, our disclosure control and procedures were effective to ensure information
required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms, and were effective in ensuring that such
information is accumulated and communicated to our management, including our CEO and chief financial officer, as appropriate to allow timely decisions regarding required disclosures.



132



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Managements Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f)
and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is a process designed to provide reasonable assurance to our management and Board of Directors regarding the reliability of financial reporting and the preparation
of our financial statements for external purposes in accordance with generally accepted accounting principles.

Because of its inherent
limitations, internal control over financial reporting may not prevent or detect misstatements. Effective internal control over financial reporting cannot, and does not, provide absolute assurance of achieving our control objectives. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2015. In making this
assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal ControlIntegrated Framework (2013). Based on this assessment, our management concluded that, as
of December 31, 2015, our internal control over financial reporting was effective based on those criteria.

Attestation Report of the Registered
Public Accounting Firm

The effectiveness of our internal control over financial reporting as of December 31, 2015 has been
audited by KPMG Auditores Independentes, an independent registered public accounting firm, as stated in their report which appears herein on page F-2.

Changes in Internal Control over Financial Reporting

Our risks and internal controls department periodically evaluates our internal controls for the main cycles, documenting the processes used in
each cycle, identifying opportunities and suggesting improvements for the existing control mechanisms. There was no change in our internal controls over financial reporting that occurred during the period covered by this annual report that has
materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.



|ITEM 16.A  AUDIT | COMMITTEE FINANCIAL EXPERT
|---------------- | --------------------------

Our Board of Directors has determined that Mr. Sergio
Eraldo de Salles Pinto, an effective member of our statutory Audit and Risks Committee is an audit committee financial expert as defined by current SEC rules. For a discussion of the role of our Audit and Risks Committee, see Item
6C. Directors, Senior Management and EmployeesBoard PracticesAudit and Risks Committee.



|ITEM 16.B  CODE | OF ETHICS
|--------------- | ---------

Our Board of Directors has adopted a Code of Ethics and Conduct applicable to
our directors, officers and employees worldwide, including our principal executive officer, principal financial officer and controller. A copy of our Code of Ethics and Conduct has been filed as Exhibit 11.1 to this annual report.



|ITEM 16.C  PRINCIPAL | ACCOUNTANT FEES AND SERVICES
|-------------------- | ----------------------------

The following table sets forth by category of service the
total fees for services performed by KPMG Auditores Independentes during the fiscal years ended December 31, 2014 and 2015:





133



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|                                       |  |                        |         |  |      |  |         | 
|-------------------------------------- |  | ---------------------- | ------- |  | ---- |  | ------- | 
|Principal accountant fees and services |  | Year endedDecember 31, |        
|                                       |  | 2015                   |         |  | 2014 | 
|                                       |  | (in US$ thousands)     |        
|Audit Fees                             |  |                        | 2,511.0 |  |      |  | 2,873.0 | 
|Audit-Related Fees                     |  |                        | 106.0   |  |      |  | 61.0    | 
|Tax Fees                               |  |                        | 33.0    |  |      |  | 37.0    | 
|                                       |  |                        |         |  |      |  |         | 
|All Other Fees                         |  |                        | 0       |  |      |  | 2.0     | 
|                                       |  |                        |         |  |      |  |         | 
|Total                                  |  |                        | 2,650.0 |  |      |  | 2,973.0 | 
|                                       |  |                        |         |  |      |  |         | 

Audit Fees

Audit fees consisted of the aggregate fees in connection with (1) the audit of annual financial statements and quarterly limited reviews
under Brazilian GAAP and IFRS as issued by the IASB, which are published in Brazil and United States (filed with the SEC on Form 6-K), (2) annual consolidated financial statements under IFRS as issued by the IASB, (3) statutory audits of
subsidiaries and (4) issuance of comfort letter related to the Companys issuance of Notes in 2015.

Audit-Related Fees

Audit-related fees consisted mainly of the aggregate fees in connection with compliance services provided to the Company and some of our
subsidiaries related to documents filed with regulatory and government agencies.

Tax Fees

Tax fees consisted of the aggregate fees in connection with tax compliance services for some of our subsidiaries.

All Other Fees

All other fees consisted
refer to miscellaneous permitted services rendered in 2014 for some subsidiaries.

Pre-Approval Policies and Procedures

Our Board of Directors approves all audit and audit-related services provided by KPMG Auditores Independentes. Any services provided by KPMG
Auditores Independentes that are not specifically included within the scope of the audit must be pre-approved by our Audit and Risks Committee in advance of any engagement. Pursuant to Rule 2-01 of Regulation S-X, audit committees are permitted to
approve certain fees for audit-related services, tax services and other services pursuant to a de minimis exception prior to the completion of an audit engagement. In 2015, 2014, 2013, and 2012 none of the fees paid to KPMG Auditores
Independentes and in 2011 to PricewaterhouseCoopers Auditores Independentes, were approved pursuant to the de minimis exception.



|ITEM 16.D  EXEMPTIONS | FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
|--------------------- | -----------------------------------------------

None.



|ITEM 16.E  PURCHASES | OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
|-------------------- | ------------------------------------------------------------

On March 10, 2016,
our Board of Directors approved a new share buyback program for our common shares, in compliance with Instrução CVM No. 10/80. We were authorized to buy back up to an aggregate of 3,000,000 common shares, representing
approximately 0.4% of our outstanding capital, which totaled 737,439,054 common shares outstanding on March 10, 2016.





134



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|ITEM 16.F  CHANGE  IN  REGISTRANTS  CERTIFYING  ACCOUNTANT | 
|----------------------------------------------------------- | 

Not applicable.



|ITEM 16.G  CORPORATE  GOVERNANCE | 
|-------------------------------- | 

We are subject to NYSE corporate governance listing standards. As a foreign private
issuer, the standards applicable to us are considerably different than the standards applied to U.S. listed companies. Under the NYSE rules, we are required only to: (1) have an audit committee or audit board, pursuant to an applicable
exemption available to foreign private issuers, that meets certain requirements, as discussed below, (2) provide prompt certification by our CEO of any material non-compliance with any corporate governance rules and (3) provide a brief
description of the significant differences between our corporate governance practices and the NYSE corporate governance practice required to be followed by U.S. listed companies. The discussion of the significant differences between our corporate
governance practices and those required of U.S. listed companies follows below.

Majority of Independent Directors

The NYSE rules require that a majority of the Board must consist of independent Directors. Independence is defined by various criteria,
including the absence of a material relationship between the director and the listed company, which independence must be affirmatively determined by the Board of Directors. Likewise, the Novo MercadoListing Rules requires that at least 20%
of the members of the Board of Directors of a company listed on the Novo Mercado segment of the São Paulo Stock Exchange be independent. Independence of Board members in accordance with the Novo Mercado Listing Rules is defined
by criteria similar to those set forth in the NYSE rules.

With the exception of Mr. Antonio Franciscangelis Neto (the representative
of the Brazilian federal government, through the governments ownership of the golden share), Mr. Alexandre Magalhães Filho and Herbert Claros da Silva (both representatives of our employees), all the current members of
our Board of Directors have declared that they are independent for purposes of the Novo Mercado Listing Rules. Our Directors meet the qualification requirements of the Brazilian Corporate Law, the CVM requirements and the Novo Mercado Listing Rules.

The Brazilian Corporate Law and our bylaws require that our Directors be elected by our shareholders at a general shareholders
meeting. The election of members of our Board of Directors, absent a request to adopt a cumulative voting system, will be conducted under a system of slate voting whereby voting will be based on a slate of Directors and no voting will be allowed on
individual candidates. According to our bylaws, the Board of Directors will nominate a slate for the subsequent term of office. Our Board of Directors is appointed by our shareholders for a two-year term, having three reserved seats as follows:
(1) one acting member to be appointed by the Brazilian federal government, as holder of the golden share and (2) two acting members to be appointed by our employees. The remaining eight Directors are elected in accordance with
the slate voting or cumulative voting rules contained in our bylaws. A person may participate in two or more different slates. Each shareholder may only vote on one slate and the slate that receives the highest number of votes shall be declared
elected. See Item 10B. Additional InformationMemorandum and Articles of AssociationBoard of DirectorsElection of Board of Directors.

Executive Sessions

NYSE rules require
that the non-management directors must meet at regularly scheduled executive sessions without management. The Brazilian Corporate Law does not have a similar provision. According to the Brazilian Corporate Law, up to one-third of the members of the
Board of Directors can be elected from management. The remaining non-management directors are not expressly empowered to serve as a check on management and there is no requirement that those directors meet regularly without management. As a result,
the non-management directors on our board do not typically meet in executive session.



135



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Nominating/Corporate Governance Committee

NYSE rules require that listed companies have a Nominating/Corporate Governance Committee composed entirely of independent directors and
governed by a written charter addressing the committees required purpose and detailing its required responsibilities, which include, among other things, identifying and selecting qualified board member nominees and developing a set of
corporate governance principles applicable to the company. We are not required under applicable Brazilian law to have a Nominating Committee/Corporate Governance Committee, and accordingly, to date, have not established such a committee. The
directors are elected by our shareholders at a general shareholders meeting. Our corporate governance practices are adopted by the entire board.

Compensation Committee

NYSE rules
require that listed companies have a Compensation Committee composed entirely of independent directors and governed by a written charter addressing the committees required purpose and detailing its required responsibilities, which include,
among other things, reviewing corporate goals relevant to CEO compensation, evaluating CEO performance and approving CEO compensation levels and recommending to the board non-CEO compensation, incentive-compensation and equity-based plans. We are
not required under applicable Brazilian law to have a Compensation Committee. Under the Brazilian Corporate Law, the total amount available for compensation of our directors and Executive Officers and for profit-sharing payments to our Executive
Officers is established by our shareholders at the annual general meeting. The Board of Directors is then responsible for determining the individual compensation and profit sharing of each Executive Officer, as well as the compensation of our board
and committee members. In making such determinations, the board reviews the performance of the Executive Officers, including the performance of our CEO.

Audit Committee

NYSE rules require that
listed companies have an audit committee that (1) is composed of a minimum of three independent directors who are all financially literate, (2) complies with the SEC rules regarding audit committees for listed companies, (3) has at
least one member who has accounting or financial management expertise and (4) is governed by a written charter addressing the committees required purpose and detailing its required responsibilities. We have an Audit and Risks Committee
which meets the requirements of Rule 10A-3 under the U.S. Securities Exchange Act of 1934. We do not claim an exemption from the listing standards for audit committees.

Embraers statutory Audit and Risks Committee is composed of independent members of our Board of Directors. Because foreign
private issuers are subject to local legislation which may prohibit the full Board of Directors from delegating certain responsibilities to the audit committee, pursuant to Rule 10A-3, audit committees of foreign private issuers may be granted
responsibilities, which may include advisory powers, with respect to such matters to the extent permitted by law. Due to certain restrictions imposed by the Brazilian Corporate Law, our Audit and Risks Committee, unlike a U.S. audit committee, only
has an advisory role and may only make recommendations for adoption by the full Board of Directors, which is responsible for the ultimate vote and final decision. For example, our Audit and Risks Committee makes recommendations regarding
the appointment of auditing firms, which are subject to a vote of the Board of Directors. Our Audit and Risks Committee complies with Brazilian legal requirements (including independent directors, as defined by Brazilian law).

Shareholder Approval of Equity Compensation Plans

NYSE rules require that shareholders be given the opportunity to vote on all equity compensation plans and material revisions thereto, with
limited exceptions. Under the Brazilian Corporate Law, shareholders must approve all stock option plans. In addition, any issuance of new shares that exceeds our authorized share capital is subject to shareholder approval.



136



---

Corporate Governance Guidelines

NYSE rules require that listed companies adopt and disclose corporate governance guidelines. In addition to being subject to the Novo
Mercado Regulations that include rules on corporate governance, we have not adopted any formal corporate governance guidelines. We have adopted and observe a disclosure policy, our Policy on Publicizing Acts or Relevant Facts, which requires the
public disclosure of all relevant information pursuant to guidelines set forth by the CVM, as well as an insider trading policy, our Policy on Securities Transactions, which, among other things, establishes black-out periods and requires insiders to
inform management of all transactions involving our securities.

Code of Business Conduct and Ethics

NYSE rules require that listed companies adopt and disclose a code of business conduct and ethics for directors, officers and employees, and
promptly disclose any waivers of the code for directors or Executive Officers. Applicable Brazilian law does not have a similar requirement. However, we adopted a Code of Ethics and Conduct applicable to our officers, directors and employees
worldwide, including at the subsidiary level. We believe this code substantially addresses the matters required to be addressed pursuant to the NYSE rules. A copy of our Code of Ethics and Conduct has been filed as Exhibit 11.1 to this annual
report. For a further discussion of our Code of Ethics and Conduct, see Item 16.B Code of Ethics. We review our Code of Ethics every two years. The last version of the Code of Ethics was the
4thEdition reviewed on September 11, 2014.

Internal Audit Function

NYSE rules require that listed companies maintain an internal audit function to provide management and the audit committee with ongoing
assessments of the companys risk management processes and system of internal control. Our internal audit reports to the Audit and Risks Committee, and risk management and internal control report to the Chief Financial Officer, respectively,
assuring the necessary independence and competence to assess the design of our internal control over financial reporting, as well as to test its effectiveness as required by Section 404 of the Sarbanes-Oxley Act of 2002.



|ITEM 16.H | MINE SAFETY DISCLOSURE
|--------- | ----------------------

Not applicable.

PART III



|ITEM 17. | FINANCIAL STATEMENTS
|-------- | --------------------

We have responded to Item 18 in lieu of responding to this
item.



|ITEM 18. | FINANCIAL STATEMENTS
|-------- | --------------------

Our audited consolidated financial statements, together with the
report of the Independent Registered Public Accounting Firm thereon, are filed as part of this annual report and are located following the signature page hereof.



137



---

|ITEM 19. | EXHIBITS
|-------- | --------



|              |  |                                                                                                                                                                                                                                                                                                                                                                            
|------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description                                                                                                                                                                                                                                                                                                                                                                
|              | 
|1.1           |  | Bylaws of Embraer approved at the Annual and Special Shareholders Meeting held on March 8, 2013, incorporated herein by reference from Form 6-K furnished on March 11, 2013. (English
translation).                                                                                                                                                                       
|              | 
|2.1           |  | Form of Amended and Restated Deposit Agreement, as amended, among Embraer S.A., JP Morgan Chase Bank, N.A., as depositary, and the Holders from time to time of American Depositary Shares issued thereunder, including the Form of
American Depositary Receipts, incorporated herein by reference from Exhibit 9(a)(2) to Embraers Registration Statement No. 333-133162.
|              | 
|2.2           |  | The registrant hereby agrees to furnish to the SEC, upon request, copies of instruments defining the rights of holders of long-term debt of the registrant and its consolidated subsidiaries and for any of its unconsolidated
subsidiaries for which financial statements are required to be filed.                                                                       
|              | 
|8.1           |  | List of Embraers subsidiaries.                                                                                                                                                                                                                                                                                                                                            
|              | 
|11.1          |  | Code of Ethics and Conduct, dated September 11, 2014.                                                                                                                                                                                                                                                                                                                      
|              | 
|12.1          |  | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.                                                                                                                                                                                                                                                                                                         
|              | 
|12.2          |  | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.                                                                                                                                                                                                                                                                                                         
|              | 
|13.1          |  | Section 1350 Certification of Chief Executive Officer.                                                                                                                                                                                                                                                                                                                     
|              | 
|13.2          |  | Section 1350 Certification of Chief Financial Officer.                                                                                                                                                                                                                                                                                                                     
|              | 
|15.1          |  | Consent of KPMG Auditores Independentes.                                                                                                                                                                                                                                                                                                                                   



138



---

SIGNATURES

The Registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the
undersigned to sign this annual report on its behalf.



EMBRAER S.A.By:

/S/ FREDERICO PINHEIRO FLEURY CURADOName: Frederico Pinheiro Fleury Curado
Title: President and Chief Executive Officer




By:

/S/ JOSÉ ANTONIO DE ALMEIDA FILIPPOName: José Antonio de Almeida Filippo
Title: Executive Vice-Presidentand Chief Financial and
Investor Relations Officer


Date: March 28, 2016



---

Embraer S.A.

Consolidated Financial Statements at

December 31,
2015

and Report of Independent Registered

Public Accounting Firm



F-1



---





INDEX TO THE FINANCIAL STATEMENTS



|                                                                                                      |  |      |      | 
|----------------------------------------------------------------------------------------------------- |  | ---- | ---- | 
|                                                                                                      |  | Page |     
|Index to Financial Statements                                                                         |  |      | F-2  | 
|Consolidated Statements of Financial Position as of December 31, 2015 and 2014                        |  |      | F-4  | 
|Consolidated Statements of Income for the Years Ended December 31, 2015, 2014 and 2013                |  |      | F-6  | 
|Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2015, 2014 and
2013  |  |      | F-7  | 
|Consolidated Statements of Shareholders Equity for the Years Ended December 
31, 2015, 2014 and 2013 |  |      | F-8  | 
|Consolidated Statements of Cash Flows for the Years Ended December 31, 2015, 2014 and 2013            |  |      | F-9  | 
|Notes to the Consolidated Financial Statements                                                        |  |      | F-10 | 



F-2



---

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Embraer S.A.

We have audited the accompanying consolidated statements of financial position of Embraer S.A. and subsidiaries (the Company) as
of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, shareholders equity, and cash flows for each of the years in the three-year period ended December 31, 2015. We also have audited
Embraer S.A.s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal ControlIntegrated Framework(2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). Embraer S.A.s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the
effectiveness of internal control over financial reporting, included in the accompanying Managements Annual Report on Internal Control over Financial Reporting under item 15 of the Companys Form 20-F. Our responsibility is to express an
opinion on these consolidated financial statements and an opinion on the Companys internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material
respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made
by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe
that our audits provide a reasonable basis for our opinions.

A companys internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal
control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets
that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly,
in all material respects, the financial position of Embraer S.A. and subsidiaries as of December 31, 2015 and 2014, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31,
2015, in conformity with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). Also in our opinion, Embraer S.A. maintained, in all material respects, effective internal control over
financial reporting as of December 31, 2015, based on criteria established in Internal ControlIntegrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)
..

/s/ KPMG Auditores Independentes

São José dos
Campos, Brazil

March 28, 2016



F-3



---

Embraer S.A.

Consolidated Statements of Financial Position at December 31, 2015 and 2014

In millions of dollars





|                                            |  |      |  |            |          |  |            |  |          | 
|------------------------------------------- |  | ---- |  | ---------- | -------- |  | ---------- |  | -------- | 
|ASSETS                                      |  | Note |  | 12.31.2015 |          |  | 12.31.2014 | 
|CURRENT                                     |  |      |  |            |          |  |            |  |          | 
|Cash and cash equivalents                   |  | 5    |  |            | 2,165.5  |  |            |  | 1,713.0  | 
|Financial investments                       |  | 6    |  |            | 622.6    |  |            |  | 710.6    | 
|Trade accounts receivable, net              |  | 7    |  |            | 781.9    |  |            |  | 696.9    | 
|Derivative financial instruments            |  | 8    |  |            | 5.2      |  |            |  | 5.2      | 
|Customer and commercial financing           |  | 9    |  |            | 10.8     |  |            |  | 13.6     | 
|Collateralized accounts receivable          |  | 10   |  |            | 91.4     |  |            |  | 9.0      | 
|Inventories                                 |  | 12   |  |            | 2,314.6  |  |            |  | 2,405.3  | 
|Income tax and social contribution          |  |      |  |            | 130.2    |  |            |  | 89.2     | 
|Other assets                                |  | 13   |  |            | 289.4    |  |            |  | 167.9    | 
|                                            |  |      |  |            |          |  |            |  |          | 
|                                            |  |      |  |            | 6,411.6  |  |            |  | 5,810.7  | 
|                                            |  |      |  |            |          |  |            |  |          | 
|NON-CURRENT                                 |  |      |  |            |          |  |            |  |          | 
|Financial investments                       |  | 6    |  |            | 749.6    |  |            |  | 45.8     | 
|Trade accounts receivable                   |  | 7    |  |            | 1.5      |  |            |  | 6.9      | 
|Derivative financial instruments            |  | 8    |  |            | 9.2      |  |            |  | 12.7     | 
|Customer and commercial financing           |  | 9    |  |            | 45.4     |  |            |  | 55.0     | 
|Collateralized accounts receivable          |  | 10   |  |            | 316.6    |  |            |  | 416.6    | 
|Guarantee deposits                          |  | 11   |  |            | 577.3    |  |            |  | 582.0    | 
|Deferred income tax and social contribution |  | 24.1 |  |            | 4.5      |  |            |  | 8.1      | 
|Other assets                                |  | 13   |  |            | 119.8    |  |            |  | 186.1    | 
|                                            |  |      |  |            |          |  |            |  |          | 
|                                            |  |      |  |            | 1,823.9  |  |            |  | 1,313.2  | 
|Investments                                 |  |      |  |            | 1.2      |  |            |  | 0.4      | 
|Property, plant and equipment, net          |  | 16   |  |            | 2,027.4  |  |            |  | 2,025.8  | 
|Intangible assets, net                      |  | 17   |  |            | 1,405.4  |  |            |  | 1,260.9  | 
|                                            |  |      |  |            |          |  |            |  |          | 
|                                            |  |      |  |            | 5,257.9  |  |            |  | 4,600.3  | 
|                                            |  |      |  |            |          |  |            |  |          | 
|TOTAL ASSETS                                |  |      |  |            | 11,669.5 |  |            |  | 10,411.0 | 
|                                            |  |      |  |            |          |  |            |  |          | 

The accompanying notes are an integral part of these consolidated financial statements.



F-4



---

Embraer S.A.

Consolidated Statements of Financial Position at December 31, 2015 and 2014

In millions of dollars





|                                            |  |      |  |            |          |   |            |  |          |  
|------------------------------------------- |  | ---- |  | ---------- | -------- | - | ---------- |  | -------- | -
|LIABILITIES                                 |  | Note |  | 12.31.2015 |          |   | 12.31.2014 | 
|CURRENT                                     |  |      |  |            |          |   |            |  |          |  
|Trade accounts payable                      |  | 19   |  |            | 1,034.9  |   |            |  | 980.6    |  
|Loans and financing                         |  | 20   |  |            | 219.4    |   |            |  | 89.7     |  
|Non-recourse and recourse debt              |  | 10   |  |            | 10.1     |   |            |  | 10.3     |  
|Other payables                              |  | 21   |  |            | 291.1    |   |            |  | 324.5    |  
|Advances from customers                     |  | 22   |  |            | 743.8    |   |            |  | 652.5    |  
|Derivative financial instruments            |  | 8    |  |            | 12.3     |   |            |  | 15.4     |  
|Taxes and payroll charges payable           |  | 23   |  |            | 70.8     |   |            |  | 125.6    |  
|Income tax and social contribution          |  |      |  |            | 118.1    |   |            |  | 8.6      |  
|Financial guarantee and residual value      |  | 25   |  |            | 161.5    |   |            |  | 29.5     |  
|Dividends payable                           |  |      |  |            | 2.7      |   |            |  | 37.3     |  
|Unearned income                             |  |      |  |            | 320.0    |   |            |  | 183.5    |  
|Provisions                                  |  | 26.1 |  |            | 95.7     |   |            |  | 95.4     |  
|                                            |  |      |  |            |          |   |            |  |          |  
|                                            |  |      |  |            | 3,080.4  |   |            |  | 2,552.9  |  
|                                            |  |      |  |            |          |   |            |  |          |  
|NON-CURRENT                                 |  |      |  |            |          |   |            |  |          |  
|Loans and financing                         |  | 20   |  |            | 3,311.1  |   |            |  | 2,418.4  |  
|Non-recourse and recourse debt              |  | 10   |  |            | 374.7    |   |            |  | 389.7    |  
|Other payables                              |  | 21   |  |            | 39.6     |   |            |  | 87.6     |  
|Advances from customers                     |  | 22   |  |            | 164.1    |   |            |  | 176.1    |  
|Taxes and payroll charges payable           |  | 23   |  |            | 80.6     |   |            |  | 144.1    |  
|Deferred income tax and social contribution |  | 24.1 |  |            | 417.3    |   |            |  | 270.4    |  
|Financial guarantee and residual value      |  | 25   |  |            | 131.6    |   |            |  | 208.5    |  
|Unearned income                             |  |      |  |            | 117.5    |   |            |  | 145.4    |  
|Provisions                                  |  | 26.1 |  |            | 108.9    |   |            |  | 153.1    |  
|                                            |  |      |  |            |          |   |            |  |          |  
|                                            |  |      |  |            | 4,745.4  |   |            |  | 3,993.3  |  
|                                            |  |      |  |            |          |   |            |  |          |  
|TOTAL LIABILITIES                           |  |      |  |            | 7,825.8  |   |            |  | 6,546.2  |  
|                                            |  |      |  |            |          |   |            |  |          |  
|SHAREHOLDERS EQUITY                        |  |      |  |            |          |   |            |  |          |  
|Capital                                     |  | 29.1 |  |            | 1,438.0  |   |            |  | 1,438.0  |  
|Treasury shares                             |  | 29.3 |  |            | (38.4    | ) |            |  | (60.1    | )
|Revenue reserves                            |  |      |  |            | 2,456.3  |   |            |  | 2,429.5  |  
|Share-based remuneration                    |  |      |  |            | 35.4     |   |            |  | 33.1     |  
|Accumulated other comprehensive loss        |  |      |  |            | (149.5   | ) |            |  | (75.7    | )
|                                            |  |      |  |            |          |   |            |  |          |  
|                                            |  |      |  |            | 3,741.8  |   |            |  | 3,764.8  |  
|                                            |  |      |  |            |          |   |            |  |          |  
|Non-controlling interest                    |  |      |  |            | 101.9    |   |            |  | 100.0    |  
|                                            |  |      |  |            |          |   |            |  |          |  
|TOTAL SHAREHOLDERS EQUITY                  |  |      |  |            | 3,843.7  |   |            |  | 3,864.8  |  
|                                            |  |      |  |            |          |   |            |  |          |  
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY  |  |      |  |            | 11,669.5 |   |            |  | 10,411.0 |  
|                                            |  |      |  |            |          |   |            |  |          |  

The accompanying notes are an integral part of these consolidated financial statements.



F-5



---

Embraer S.A.

Consolidated Statements of Income

Years Ended

In millions of U.S. dollars





|                                                 |  |      |  |            |          |   |            |  |          |            |  |  |          |  
|------------------------------------------------ |  | ---- |  | ---------- | -------- | - | ---------- |  | -------- | ---------- |  |  | -------- | -
|                                                 |  | Note |  | 12.31.2015 |          |   | 12.31.2014 |  |          | 12.31.2013 | 
|REVENUE                                          |  |      |  |            | 5,928.1  |   |            |  | 6,288.8  |            |  |  | 6,235.0  |  
|Cost of sales and services                       |  |      |  |            | (4,816.8 | ) |            |  | (5,038.3 | )          |  |  | (4,818.9 | )
|                                                 |  |      |  |            |          |   |            |  |          |            |  |  |          |  
|GROSS PROFIT                                     |  |      |  |            | 1,111.3  |   |            |  | 1,250.5  |            |  |  | 1,416.1  |  
|Operating Income (expense)                       |  |      |  |            |          |   |            |  |          |            |  |  |          |  
|Administrative                                   |  |      |  |            | (182.0   | ) |            |  | (207.5   | )          |  |  | (210.5   | )
|Selling                                          |  |      |  |            | (361.6   | ) |            |  | (419.9   | )          |  |  | (454.4   | )
|Research                                         |  |      |  |            | (41.7    | ) |            |  | (47.1    | )          |  |  | (74.7    | )
|Other operating income (expense), net            |  | 33   |  |            | (194.2   | ) |            |  | (32.6    | )          |  |  | 36.9     |  
|Equity in income (losses) of associates          |  |      |  |            | (0.3     | ) |            |  | (0.1     | )          |  |  |         |  
|                                                 |  |      |  |            |          |   |            |  |          |            |  |  |          |  
|OPERATING PROFIT BEFORE FINANCIAL INCOME         |  |      |  |            | 331.5    |   |            |  | 543.3    |            |  |  | 713.4    |  
|Financial income (expense), net                  |  | 34   |  |            | (22.9    | ) |            |  | (24.5    | )          |  |  | (96.4    | )
|Foreign exchange gain, net                       |  | 35   |  |            | 27.6     |   |            |  | (14.9    | )          |  |  | (14.6    | )
|                                                 |  |      |  |            |          |   |            |  |          |            |  |  |          |  
|PROFIT BEFORE TAXES ON INCOME                    |  |      |  |            | 336.2    |   |            |  | 503.9    |            |  |  | 602.4    |  
|Income tax expense                               |  | 24.2 |  |            | (255.4   | ) |            |  | (156.2   | )          |  |  | (256.4   | )
|                                                 |  |      |  |            |          |   |            |  |          |            |  |  |          |  
|NET INCOME FOR THE YEAR                          |  |      |  |            | 80.8     |   |            |  | 347.7    |            |  |  | 346.0    |  
|                                                 |  |      |  |            |          |   |            |  |          |            |  |  |          |  
|Attributable to :                                |  |      |  |            |          |   |            |  |          |            |  |  |          |  
|Owners of Embraer                                |  |      |  |            | 69.2     |   |            |  | 334.7    |            |  |  | 342.0    |  
|Non-controlling interest                         |  |      |  |            | 11.6     |   |            |  | 13.0     |            |  |  | 4.0      |  
|Weighted average number of shares (in thousands) |  |      |  |            |          |   |            |  |          |            |  |  |          |  
|Basic                                            |  | 31   |  |            | 730,205  |   |            |  | 733,677  |            |  |  | 729,001  |  
|Diluted                                          |  | 31   |  |            | 733,569  |   |            |  | 737,463  |            |  |  | 733,796  |  
|Earnings per share-basic in US$                  |  | 31   |  |            | 0.0947   |   |            |  | 0.4562   |            |  |  | 0.4691   |  
|Earnings per share-diluted in US$                |  | 31   |  |            | 0.0943   |   |            |  | 0.4538   |            |  |  | 0.4661   |  

The accompanying notes are an integral part of these consolidated financial statements.



F-6



---

Embraer S.A.

Consolidated Statements of Comprehensive Income

Years Ended

(In millions of U.S. dollars)





|                                                            |  |            |       |   |            |  |       |            |  |  |       |  
|----------------------------------------------------------- |  | ---------- | ----- | - | ---------- |  | ----- | ---------- |  |  | ----- | -
|                                                            |  | 12.31.2015 |       |   | 12.31.2014 |  |       | 12.31.2013 | 
|NET INCOME                                                  |  |            | 80.8  |   |            |  | 347.7 |            |  |  | 346.0 |  
|ITEMS THAT ARE OR MAY BE RECLASSIFIED SUBSEQUENTLY TO       |  |            |       |   |            |  |       |            |  |  |       |  
|PROFIT AND LOSS                                             |  |            |       |   |            |  |       |            |  |  |       |  
|Actuarial gain (loss) on post-employment benefit obligation |  |            | 3.0   |   |            |  | (0.8  | )          |  |  | (7.4  | )
|Translation adjustments                                     |  |            | (86.8 | ) |            |  | (51.5 | )          |  |  | 9.0   |  
|Put options of minority interest                            |  |            |      |   |            |  |      |            |  |  | 1.1   |  
|Financial instruments for hedge accounting                  |  |            | 0.3   |   |            |  |      |            |  |  |      |  
|Financial instruments available for sale                    |  |            |      |   |            |  | (1.1  | )          |  |  | (0.9  | )
|                                                            |  |            |       |   |            |  |       |            |  |  |       |  
|OTHER COMPREHENSIVE INCOME, NET OF TAX EFFECTS (i)          |  |            | (83.5 | ) |            |  | (53.4 | )          |  |  | 1.8   |  
|                                                            |  |            |       |   |            |  |       |            |  |  |       |  
|TOTAL OF COMPREHENSIVE INCOME                               |  |            | (2.7  | ) |            |  | 294.3 |            |  |  | 347.8 |  
|                                                            |  |            |       |   |            |  |       |            |  |  |       |  
|Attributable to:                                            |  |            |       |   |            |  |       |            |  |  |       |  
|Owners of Embraer                                           |  |            | (4.6  | ) |            |  | 292.9 |            |  |  | 344.4 |  
|Non-controlling interest                                    |  |            | 1.9   |   |            |  | 1.4   |            |  |  | 3.4   |  
|                                                            |  |            |       |   |            |  |       |            |  |  |       |  
|                                                            |  |            | (2.7  | ) |            |  | 294.3 |            |  |  | 347.8 |  
|                                                            |  |            |       |   |            |  |       |            |  |  |       |  



|(i) | items presented above are net of deferred income tax.
|--- | -----------------------------------------------------

The accompanying notes are an integral part of these
consolidated financial statements.



F-7



---

Embraer S.A.

Consolidated Statements of Shareholders Equity

Years Ended

(In millions of U.S. dollars)





|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|---------------------------------------------------- |  | ------- | ------- |  | -------------- |  | ------ | ----------------------- |  |  | ----------------- |  |  | -------------------------------------- | ---- |  | --------------------------- |  | ----- | ------------------------------ |  |  | ---------------- |  |  | ------------------------------------------------ | ------- |  | ------------------------------------------------------ |  | ------ | ------------------------------- |  |  | ------------------------------------ | - |  | ----------------------- | ----- | - | ----------------------- |  | ------ | ------------------------ |  |  | ---- | - |  |  | ------- | - |  |  | ----- | - |  |  | ------- | -
|                                                     |  |         |         |  |                |  |        |                         |  |  | Revenue reserves  |  |  | Accumulated other comprehensive (loss) |      |  |                             |  |       |                                |  |  |                  | 
|                                                     |  | Capital |         |  | Treasuryshares |  |        | Share-basedremuneration |  |  | Investmentsubsidy |  |  | LegalReserve                           |      |  | Additionalproposeddividends |  |       | Forinvestmentandworkingcapital |  |  | Retainedearnings |  |  | Result intransactionswith noncontrollinginterest |         |  | Actuarialgain (loss)on postemploymentbenefitobligation |  |        | Cumulativetranslationadjustment |  |  | Othercumulativetranslationadjustment |   |  | Totalshareholdersequity |       |   | Non-controllinginterest |  |        | Totalshareholdersequity | 
|AT DECEMBER 31, 2012                                 |  |         | 1,438.0 |  |                |  | (154.2 | )                       |  |  | 21.0              |  |  |                                        | 36.9 |  |                             |  | 148.7 |                                |  |  |                 |  |  |                                                  | 1,794.7 |  |                                                        |  |       |                                 |  |  | 5.6                                  |   |  |                         | (36.7 | ) |                         |  | 4.3    |                          |  |  |     |   |  |  | 3,258.3 |   |  |  | 92.0  |   |  |  | 3,350.3 |  
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|Net income for the year                              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | 342.0  |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | 342.0   |   |  |  | 4.0   |   |  |  | 346.0   |  
|Actuarial loss on post employment benefit obligation |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         | (7.4  | ) |                         |  |       |                          |  |  |     |   |  |  | (7.4    | ) |  |  |      |   |  |  | (7.4    | )
|Translation adjustments                              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  | 9.9    |                          |  |  |     |   |  |  | 9.9     |   |  |  | (0.9  | ) |  |  | 9.0     |  
|PUT options of non-controlling interest              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  | 1.1  |   |  |  | 1.1     |   |  |  |      |   |  |  | 1.1     |  
|Financial instruments available for sale             |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  | (0.9 | ) |  |  | (0.9    | ) |  |  |      |   |  |  | (0.9    | )
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|Total comprehensive income                           |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | 342.0  |                                 |  |  |                                     |   |  |                         | (7.4  | ) |                         |  | 9.9    |                          |  |  | 0.2  |   |  |  | 344.7   |   |  |  | 3.1   |   |  |  | 347.8   |  
|Share-based remuneration                             |  |         |        |  |                |  |       |                         |  |  | 6.8               |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | 6.8     |   |  |  |      |   |  |  | 6.8     |  
|Stock options grants exercised                       |  |         |        |  |                |  | 50.4   |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (27.1  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | 23.3    |   |  |  |      |   |  |  | 23.3    |  
|Acquisition of non controlling interest              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  | (9.8                                 | ) |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | (9.8    | ) |  |  | 3.5   |   |  |  | (6.3    | )
|Allocation of profits:                               |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|Investment in subsidy                                |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        | 3.2  |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (3.2   | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  |        |   |  |  |      |   |  |  |        |  
|Legal reserve                                        |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  | 16.6  |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (16.6  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  |        |   |  |  |      |   |  |  |        |  
|Interest on own capital                              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (68.8  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | (68.8   | ) |  |  |      |   |  |  | (68.8   | )
|Dividends                                            |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (20.9  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | (20.9   | ) |  |  |      |   |  |  | (20.9   | )
|Reserve for investments and working capital          |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  | 205.4   |  |                                                        |  | (205.4 | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  |        |   |  |  |      |   |  |  |        |  
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|AT DECEMBER 31, 2013                                 |  |         | 1,438.0 |  |                |  | (103.8 | )                       |  |  | 27.8              |  |  |                                        | 40.1 |  |                             |  | 165.3 |                                |  |  |                 |  |  |                                                  | 2,000.1 |  |                                                        |  |       |                                 |  |  | (4.2                                 | ) |  |                         | (44.1 | ) |                         |  | 14.2   |                          |  |  | 0.2  |   |  |  | 3,533.6 |   |  |  | 98.6  |   |  |  | 3,632.2 |  
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|Net income for the year                              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | 334.7  |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | 334.7   |   |  |  | 13.0  |   |  |  | 347.7   |  
|Actuarial loss on post employment benefit obligation |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         | (0.8  | ) |                         |  |       |                          |  |  |     |   |  |  | (0.8    | ) |  |  |      |   |  |  | (0.8    | )
|Translation adjustments                              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  | (39.9  | )                        |  |  |     |   |  |  | (39.9   | ) |  |  | (11.6 | ) |  |  | (51.5   | )
|Financial instruments available for sale             |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  | (1.1 | ) |  |  | (1.1    | ) |  |  |      |   |  |  | (1.1    | )
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|Total comprehensive income                           |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | 334.7  |                                 |  |  |                                     |   |  |                         | (0.8  | ) |                         |  | (39.9  | )                        |  |  | (1.1 | ) |  |  | 292.9   |   |  |  | 1.4   |   |  |  | 294.3   |  
|Share-based remuneration                             |  |         |        |  |                |  |       |                         |  |  | 5.3               |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | 5.3     |   |  |  |      |   |  |  | 5.3     |  
|Stock options grants exercised                       |  |         |        |  |                |  | 43.7   |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (23.6  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | 20.1    |   |  |  |      |   |  |  | 20.1    |  
|Allocation of profits:                               |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|Investment in subsidy                                |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        | 0.6  |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (0.6   | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  |        |   |  |  |      |   |  |  |        |  
|Legal reserve                                        |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  | 15.0  |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (15.0  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  |        |   |  |  |      |   |  |  |        |  
|Interest on own capital                              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (81.0  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | (81.0   | ) |  |  |      |   |  |  | (81.0   | )
|Dividends                                            |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (6.1   | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | (6.1    | ) |  |  |      |   |  |  | (6.1    | )
|Reserve for investments and working capital          |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  | 208.4   |  |                                                        |  | (208.4 | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  |        |   |  |  |      |   |  |  |        |  
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|AT DECEMBER 31, 2014                                 |  |         | 1,438.0 |  |                |  | (60.1  | )                       |  |  | 33.1              |  |  |                                        | 40.7 |  |                             |  | 180.3 |                                |  |  |                 |  |  |                                                  | 2,208.5 |  |                                                        |  |       |                                 |  |  | (4.2                                 | ) |  |                         | (44.9 | ) |                         |  | (25.7  | )                        |  |  | (0.9 | ) |  |  | 3,764.8 |   |  |  | 100.0 |   |  |  | 3,864.8 |  
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|Net income for the year                              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | 69.2   |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | 69.2    |   |  |  | 11.6  |   |  |  | 80.8    |  
|Actuarial loss on post employment benefit obligation |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         | 3.0   |   |                         |  |       |                          |  |  |     |   |  |  | 3.0     |   |  |  |      |   |  |  | 3.0     |  
|Translation adjustments                              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  | (77.1  | )                        |  |  |     |   |  |  | (77.1   | ) |  |  | (9.7  | ) |  |  | (86.8   | )
|Financial instruments                                |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  | 0.3  |   |  |  | 0.3     |   |  |  |      |   |  |  | 0.3     |  
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|Total comprehensive income                           |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | 69.2   |                                 |  |  |                                     |   |  |                         | 3.0   |   |                         |  | (77.1  | )                        |  |  | 0.3  |   |  |  | (4.6    | ) |  |  | 1.9   |   |  |  | (2.7    | )
|Share-based remuneration                             |  |         |        |  |                |  |       |                         |  |  | 2.3               |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  |       |                                 |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | 2.3     |   |  |  |      |   |  |  | 2.3     |  
|Stock options grants exercised                       |  |         |        |  |                |  | 21.7   |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (14.5  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | 7.2     |   |  |  |      |   |  |  | 7.2     |  
|Allocation of profits:                               |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|Investment in subsidy                                |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        | 0.9  |  |                             |  |      |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (0.9   | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  |        |   |  |  |      |   |  |  |        |  
|Legal reserve                                        |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  | 3.1   |                                |  |  |                 |  |  |                                                  |        |  |                                                        |  | (3.1   | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  |        |   |  |  |      |   |  |  |        |  
|Interest on own capital                              |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  | 6.6              |  |  |                                                  |        |  |                                                        |  | (34.5  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  | (27.9   | ) |  |  |      |   |  |  | (27.9   | )
|Reserve for investments and working capital          |  |         |        |  |                |  |       |                         |  |  |                  |  |  |                                        |     |  |                             |  |      |                                |  |  |                 |  |  |                                                  | 16.2    |  |                                                        |  | (16.2  | )                               |  |  |                                     |   |  |                         |      |   |                         |  |       |                          |  |  |     |   |  |  |        |   |  |  |      |   |  |  |        |  
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  
|AT DECEMBER 31, 2015                                 |  |         | 1,438.0 |  |                |  | (38.4  | )                       |  |  | 35.4              |  |  |                                        | 41.6 |  |                             |  | 183.4 |                                |  |  | 6.6              |  |  |                                                  | 2,224.7 |  |                                                        |  |       |                                 |  |  | (4.2                                 | ) |  |                         | (41.9 | ) |                         |  | (102.8 | )                        |  |  | (0.6 | ) |  |  | 3,741.8 |   |  |  | 101.9 |   |  |  | 3,843.7 |  
|                                                     |  |         |         |  |                |  |        |                         |  |  |                   |  |  |                                        |      |  |                             |  |       |                                |  |  |                  |  |  |                                                  |         |  |                                                        |  |        |                                 |  |  |                                      |   |  |                         |       |   |                         |  |        |                          |  |  |      |   |  |  |         |   |  |  |       |   |  |  |         |  

The accompanying notes are an integral part of these consolidated financial statements.



F-8



---

Embraer S.A.

Notes to the Consolidated Statements of Cash Flows

Years Ended

(In millions of U.S. dollars)





|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  
|-------------------------------------------------------------- |  | ---- |  | ---------- | -------- | - | ---------- |  | ------- | ---------- |  |  | ------- | -
|                                                               |  | Note |  | 12.31.2015 |          |   | 12.31.2014 |  |         | 12.31.2013 | 
|OPERATING ACTIVITIES                                           |  |      |  |            |          |   |            |  |         |           
|Net income for the year                                        |  |      |  |            | 80.8     |   |            |  | 347.7   |            |  |  | 346.0   |  
|ADJUSTMENT TO NET INCOME FOR ITEMS NOT AFFECTING CASH          |  |      |  |            |          |   |            |  |         |           
|Depreciation                                                   |  | 16   |  |            | 161.9    |   |            |  | 168.9   |            |  |  | 145.8   |  
|Amortization                                                   |  | 17   |  |            | 154.9    |   |            |  | 117.4   |            |  |  | 144.8   |  
|Contribution from suppliers                                    |  |      |  |            | (33.8    | ) |            |  | (25.2   | )          |  |  | (26.0   | )
|Allowance (reversal) for inventory obsolescence                |  |      |  |            | 7.6      |   |            |  | (5.3    | )          |  |  | 13.4    |  
|Inventory and PPE provision for adjustment to realizable value |  |      |  |            | (5.8     | ) |            |  | 22.0    |            |  |  | 28.6    |  
|Provision (reversal) for doubtful accounts                     |  |      |  |            | 7.4      |   |            |  | (1.9    | )          |  |  | (4.8    | )
|Gains (losses) on fixed assets disposal                        |  |      |  |            | 49.6     |   |            |  | 15.6    |            |  |  | 7.7     |  
|Deferred income tax and social contribution                    |  | 24.2 |  |            | 136.2    |   |            |  | 79.1    |            |  |  | 192.6   |  
|Accrued interest                                               |  |      |  |            | 32.4     |   |            |  | 16.4    |            |  |  | (2.4    | )
|Equity in the losses (gain) of associates                      |  |      |  |            | 0.3      |   |            |  | 0.1     |            |  |  | 3.6     |  
|Share-based remuneration                                       |  |      |  |            | 2.3      |   |            |  | 5.3     |            |  |  | 6.8     |  
|Foreign exchange gain (loss), net                              |  | 35   |  |            | (31.3    | ) |            |  | 11.9    |            |  |  | 1.9     |  
|Residual value guarantee                                       |  | 25   |  |            | 0.3      |   |            |  | 19.1    |            |  |  | 21.3    |  
|Other                                                          |  |      |  |            | (10.3    | ) |            |  | (12.3   | )          |  |  | (7.4    | )
|CHANGES IN ASSETS:                                             |  |      |  |            |          |   |            |  |         |           
|Financial investments                                          |  |      |  |            | (70.4    | ) |            |  | 150.9   |            |  |  | (443.7  | )
|Derivative financial instruments                               |  |      |  |            | 0.4      |   |            |  | 14.3    |            |  |  | 18.4    |  
|Collateralized accounts receivable and accounts receivable     |  |      |  |            | (73.2    | ) |            |  | (149.1  | )          |  |  | (40.0   | )
|Customer and commercial financing                              |  |      |  |            | 12.4     |   |            |  | 5.1     |            |  |  | 35.9    |  
|Inventories                                                    |  |      |  |            | 137.2    |   |            |  | (108.8  | )          |  |  | (157.2  | )
|Other assets                                                   |  |      |  |            | (208.9   | ) |            |  | (107.2  | )          |  |  | 60.1    |  
|CHANGES IN LIABILITIES:                                        |  |      |  |            |          |   |            |  |         |           
|Trade accounts payable                                         |  |      |  |            | 72.1     |   |            |  | (27.8   | )          |  |  | 258.4   |  
|Non-recourse and recourse debt                                 |  |      |  |            | (15.2    | ) |            |  | (0.3    | )          |  |  |        |  
|Other payables                                                 |  |      |  |            | (71.1    | ) |            |  | 10.3    |            |  |  | 125.7   |  
|Contribution from suppliers                                    |  |      |  |            | 140.0    |   |            |  | 151.8   |            |  |  | 84.5    |  
|Advances from customers                                        |  |      |  |            | 136.1    |   |            |  | (167.6  | )          |  |  | 50.4    |  
|Taxes and payroll charges payable                              |  |      |  |            | 63.0     |   |            |  | (52.1   | )          |  |  | (62.5   | )
|Financial guarantees                                           |  |      |  |            | 54.8     |   |            |  | (74.6   | )          |  |  | (312.2  | )
|Other provisions                                               |  |      |  |            | 24.1     |   |            |  | 24.4    |            |  |  | 42.0    |  
|Unearned income                                                |  |      |  |            | 108.7    |   |            |  | 54.2    |            |  |  | 32.9    |  
|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  
|NET CASH GENERATED IN OPERATING ACTIVITIES                     |  |      |  |            | 862.5    |   |            |  | 482.3   |            |  |  | 564.6   |  
|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  
|INVESTING ACTIVITIES                                           |  |      |  |            |          |   |            |  |         |           
|Acquisition of property, plant and equipment                   |  | 16   |  |            | (341.5   | ) |            |  | (283.7  | )          |  |  | (437.6  | )
|Proceeds from sale of property, plant and equipment            |  |      |  |            | 51.6     |   |            |  |        |            |  |  | 0.2     |  
|Additions to intangible assets                                 |  | 17   |  |            | (427.6   | ) |            |  | (415.4  | )          |  |  | (316.6  | )
|Investments in associates                                      |  |      |  |            | (1.3     | ) |            |  | (0.5    | )          |  |  |        |  
|Business acquisitions, net of cash acquired                    |  |      |  |            |         |   |            |  |        |            |  |  | 2.5     |  
|Acquisition of non controlling interest                        |  |      |  |            |         |   |            |  |        |            |  |  | (17.3   | )
|Proceeds from (investments in) financial investments           |  |      |  |            | (702.8   | ) |            |  | 28.1    |            |  |  | 4.8     |  
|Restricted cash reserved for construction of assets            |  |      |  |            | 4.2      |   |            |  |        |            |  |  |        |  
|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  
|NET CASH USED IN INVESTING ACTIVITIES                          |  |      |  |            | (1,417.4 | ) |            |  | (671.5  | )          |  |  | (764.0  | )
|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  
|FINANCING ACTIVITIES                                           |  |      |  |            |          |   |            |  |         |           
|Repayment of borrowings                                        |  |      |  |            | (419.2   | ) |            |  | (386.1  | )          |  |  | (650.2  | )
|Proceeds from borrowings                                       |  |      |  |            | 1,696.9  |   |            |  | 798.6   |            |  |  | 890.8   |  
|Dividends and interest on own capital                          |  |      |  |            | (60.9    | ) |            |  | (99.3   | )          |  |  | (71.4   | )
|Proceeds from stock options exercised                          |  |      |  |            | 7.2      |   |            |  | 20.1    |            |  |  | 23.3    |  
|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  
|NET CASH GENERATED IN FINANCING ACTIVITIES                     |  |      |  |            | 1,224.0  |   |            |  | 333.3   |            |  |  | 192.5   |  
|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  
|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  
|INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               |  |      |  |            | 669.1    |   |            |  | 144.1   |            |  |  | (6.9    | )
|Effects of exchange rate changes on cash and cash equivalents  |  |      |  |            | (216.6   | ) |            |  | (114.8  | )          |  |  | (106.4  | )
|Cash and cash equivalents at the beginning of the year         |  |      |  |            | 1,713.0  |   |            |  | 1,683.7 |            |  |  | 1,797.0 |  
|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  
|CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR               |  |      |  |            | 2,165.5  |   |            |  | 1,713.0 |            |  |  | 1,683.7 |  
|                                                               |  |      |  |            |          |   |            |  |         |            |  |  |         |  

The accompanying notes are an integral part of these consolidated financial statements.



F-9



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In millions of U.S. dollars, unless otherwise stated





|1. | Operations
|-- | ----------

Embraer S.A. (Embraer or the Company) is a
publicly-held company incorporated under the laws of the Federative Republic of Brazil with headquarters in São José dos Campos, State of São Paulo, Brazil. The corporate purpose of the Company is:



| | (i) | To design, build and market aircraft and aerospace materials and related accessories, components and equipment, according to the highest standards of technology and quality;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | To perform and carry out technical activities related to the manufacturing and servicing of aerospace materials;
| | ---- | ----------------------------------------------------------------------------------------------------------------



| | (iii) | To contribute to the training of technical personnel as necessary for the aerospace industry;
| | ----- | ---------------------------------------------------------------------------------------------



| | (iv) | To engage in and provide services for other technological, manufacturing and business activities in connection with the aerospace industry;
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------



| | (v) | To design, build and trade in equipment, materials, systems, software, accessories and components for the defense, security and power industries, as well as perform and carry out technical activities related to the
manufacturing and servicing thereof, in accordance with the highest technological and quality standards; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (vi) | To conduct other technological, manufacturing, trading and services activities related to the defense, security and power industries.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------

The Companys shares are listed on the enhanced corporate governance segment of the Stock Exchange in Brazil
(BM&FBOVESPA), known as the New Market (Novo Mercado). Embraer S.A. also has American Depositary Shares (evidenced by American Depositary ReceiptsADRs) which are registered with the Securities and Exchange
Commission (SEC) and are listed on the New York Stock Exchange (NYSE). The Company has no controlling group and its capital is comprised entirely of common shares.

These consolidated financial statements were approved by the Companys Board of Directors on February 26, 2016.



|2. | Presentation of the Financial Statements and Accounting Practices
|-- | -----------------------------------------------------------------



|2.1 | Presentation and preparation of the financial statements
|--- | --------------------------------------------------------

The consolidated financial
statements have been prepared in conformity with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) which include (i) IFRS, (ii) the International
Accounting Standard (IAS), and (iii) the International Financial Reporting Interpretations Committee (IFRIC) or its predecessor, the Standing Interpretations Committee (SIC).



|2.1.1 | Basis of preparation
|----- | --------------------

These consolidated financial statements have been prepared under
the historical cost convention except when the item requires different criteria and adjusted to reflect assets and liabilities measured at fair value through profit or loss or marked to market when available for sale.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management of the Company
to exercise its judgment in the process of applying the Companys accounting policies. These consolidated financial statements include accounting estimates for certain assets, liabilities and other transactions.

The areas which involve a higher degree of judgment or complexity, or assumptions and estimates significant to the consolidated financial
statements are disclosed in Note 3.



F-10



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|2.1.2 | Consolidation
|----- | -------------

The consolidated financial statements include
the balances of the December 31, 2015 financial statements of the Company and all subsidiaries directly or indirectly controlled by Embraer, special purpose entities (SPEs) controlled by the Company has control, exclusive investment funds (FIE)
and participation investment funds (FIP). Jointly controlled entities (joint ventures) are not consolidated and are presented as Investments and accounted for by the equity method. Joint operations are consolidated in proportion the investment.

All accounts and balances arising from transactions between consolidated entities are eliminated.



|a) | Subsidiaries
|-- | ------------

Subsidiaries are all entities (including SPEs) whose financial and
operating policies can be directed by the Company and normally evidenced by rights contractually established. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the
Company controls another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Company.

Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions, that is, as
transactions with the owners in their capacity as owners. The difference between the fair value of any consideration paid and the relevant share of the carrying value of the subsidiarys net assets acquired is recorded in equity. Gains or
losses on disposals to non-controlling interests are also recorded in equity.



|b) | Consortia
|-- | ---------

The activities of consortia are governed by specific regulations and although
mandatory accounting controls apply to consortia, the entries are posted in the accounts of the members of a consortium in accordance with the proportion of the consortium attributed to each member. Such accounts of members that are subsidiaries of
Embraer are consolidated in the Companys financial statements.



|2.1.3 | Interest in other entities
|----- | --------------------------

Interest in other entities is not
consolidated in the consolidated financial statements. As of December 31, 2015, these comprise AEL Sistemas SAAEL, domiciled in Porto Alegre, Brazil, in which Embraer Defesa e Segurança Participações S.A.
has a 25% interest. AEL ́s main activities are research, development, manufacture and sales of electronic components: electronic equipment used in aviation and software programs. Despite its 25% interest, Embraer Defesa e Segurança
Participações S.A. does not have significant influence in AEL, and the investment is therefore classified as a non-current financial instrument asset, measured at fair value, and changes in valuation are recognized in other
comprehensive income and presented in shareholders equity.



F-11



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|2.1.4 | Companys corporate structure
|----- | -----------------------------



|                                                     |  |                           |  |                |  |                                                                                                                
|---------------------------------------------------- |  | ------------------------- |  | -------------- |  | ---------------------------------------------------------------------------------------------------------------
|Entity                                               |  | ParticipationEmbraerGroup |  | Country        |  | Core activities                                                                                                
|ECC do Brasil Participações S.A.                     |  | 99,9%                     |  | Brazil         |  | No operations                                                                                                  
|                                                     |  |                           |  |                |  |                                                                                                                
|ELEB  Equipamentos Ltda.                            |  | 99,9%                     |  | Brazil         |  | Sale of hydraulic and mechanical equipment for the aviation industry                                           
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Aircraft Holding Inc.                        |  | 100%                      |  | EUA            |  | Concentrates corporate activities in the USA                                                                   
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Aircraft Customer Services, Inc.             |  | 100%                      |  | EUA            |  | Sale of spare parts and support services in North America and the Caribbean                                    
|Embraer Aircraft Maintenance Services Inc.           |  | 100%                      |  | EUA            |  | Maintenance of aircraft and components                                                                         
|Embraer Executive Jet Services, LLC                  |  | 100%                      |  | EUA            |  | After sale support and aircraft maintenance                                                                    
|Embraer Services Inc.                                |  | 100%                      |  | EUA            |  | Support to the Defense and Commercial segments in the United States of America                                 
|Embraer Executive Aircraft, Inc.                     |  | 100%                      |  | EUA            |  | Final assembly and delivery of executive jets                                                                  
|Embraer Engineering & Technology Center USA, Inc.    |  | 100%                      |  | EUA            |  | Engineering services related to aircraft research and development                                              
|Aero Seating Technologies LLC                        |  | 100%                      |  | EUA            |  | Production and maintenance of aircraft seats                                                                   
|Embraer Defense and Security Inc.                    |  | 100%                      |  | EUA            |  | Supply of Super Tucano aircraft to the American Air Force (LAS)                                                
|Embraer Training Services                            |  | 100%                      |  | EUA            |  | Comprises corporate and institutional activities                                                               
|Embraer CAE Training Services LLC                    |  | 51,0%                     |  | EUA            |  | Pilot, mechanic and crew training                                                                              
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Austrália PTY Ltd.                           |  | 100%                      |  | Austrália      |  | No operations                                                                                                  
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Aviation Europe SAS                          |  | 100%                      |  | France         |  | Concentrates corporate activities abroad, specifically Europe                                                  
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Aviation International SAS                   |  | 100%                      |  | France         |  | Sale of parts and after sale services in Europe, Africa and the Middle East                                    
|Embraer Europe SARL                                  |  | 100%                      |  | France         |  | Commercial representation of the Company in Europe, Africa and the Middle East                                 
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Credit Ltd.                                  |  | 100%                      |  | EUA            |  | Support to aircraft commercialization operations                                                               
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Defesa & Segurança Participações S.A.        |  | 99,9%                     |  | Brazil         |  | Coordinates investments in the Defense & Security segments                                                     
|                                                     |  |                           |  |                |  |                                                                                                                
|AEL Sistemas S.A.                                    |  | 25,0%                     |  | Brazil         |  | Research and development of aviation technology and software programs                                          
|Atech Negócios em Tecnologias S.A.                   |  | 99,9%                     |  | Brazil         |  | Development and control, communications, computer and intelligence services                                    
|Bradar Indústria S.A.                                |  | 95,0%                     |  | Brazil         |  | Develops remote sensing and surveillance technology                                                            
|Bradar Aerolevantamento Ltda                         |  | 25,0%                     |  | Brazil         |  | Aerial survey, mapping and remote sensing services                                                             
|Harpia Sistemas S.A.                                 |  | 51,0%                     |  | Brazil         |  | Operates in the unmanned aerial vehicles (UAVs) market                                                         
|Visiona Tecnologia Espacial S.A.                     |  | 51,0%                     |  | Brazil         |  | Supply of the Brazilian Governments Geostationary Defense and Strategic
Communications Satellite System (SGDC)
|Visiona Internacional B.V.                           |  | 100%                      |  | Holland        |  | Integration and supply of the Brazilian Governments (SGDC) System.                                            
|SAVIS Tecnologia e Sistemas S.A.                     |  | 99,9%                     |  | Brazil         |  | Operates in Defense and Security with the Brazilian Government                                                 
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer GPX Ltda                                     |  | 99,9%                     |  | Brazil         |  | Aircraft maintenance services                                                                                  
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Netherlands Finance B.V.                     |  | 100%                      |  | Holland        |  | Financial operations raising and investing funds of the Embraer Group                                          
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Netherlands B.V.                             |  | 100%                      |  | Holland        |  | Concentrates corporate activities abroad                                                                       
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Asia Pacific PTE. Ltd.                       |  | 100%                      |  | Singapore      |  | After sale services and support in Asia                                                                        
|Airholding SGPS S.A.                                 |  | 99,9%                     |  | Portugal       |  | Coordinates investments in subsidiaries in Portugal                                                            
|Indústria Aeronáutica de Portugal S.A.               |  | 65,0%                     |  | Portugal       |  | Aviation maintenance and production                                                                            
|ECC Leasing Co. Ltd.                                 |  | 100%                      |  | Ireland        |  | Leasing and commercialization of used aircraft                                                                 
|Embraer CAE Training Services Ltd.                   |  | 51,0%                     |  | United Kingdom |  | Pilot, mechanic and crew training                                                                              
|Embraer PortugalSGPS S.A.                           |  | 100%                      |  | Portugal       |  | Coordinates investments and economic activities in subsidiaries in Portugal                                    
|EmbraerPortugal Estruturas Metálicas S.A            |  | 100%                      |  | Portugal       |  | Fabrication of steel parts and products for the aviation industry                                              
|EmbraerPortugal Estruturas em Compósitos S.A.       |  | 100%                      |  | Portugal       |  | Fabrication of composite parts and products for the aviation industry                                          
|Embraer (China) Aircraft Technical Services Co. Ltd. |  | 100%                      |  | China          |  | Sales and maintenance for after sales support in China                                                         
|EZ Air Interior Limited                              |  | 50,0%                     |  | Ireland        |  | Fabrication of interiors for commercial aircraft                                                               
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Overseas Ltd.                                |  | 100%                      |  | Cayman Islands |  | Financial operations raising and investing funds of the Embraer Group                                          
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Representation LLP                           |  | 99,0%                     |  | EUA            |  | Commercial and institutional representation of the Company                                                     
|                                                     |  |                           |  |                |  |                                                                                                                
|Embraer Spain Holding Co. SL                         |  | 100%                      |  | Spain          |  | Concentrates corporate activities abroad                                                                       
|                                                     |  |                           |  |                |  |                                                                                                                
|Harbin Embraer Aircraft Industry Company Ltd.        |  | 51,0%                     |  | China          |  | Fabrication of aircraft for the Chinese market                                                                 
|ECC Investment Switzerland AG                        |  | 100%                      |  | Switzerland    |  | Coordinates investments in subsidiaries abroad                                                                 
|ECC Insurance & Finance Co.                          |  | 100%                      |  | Cayman Islands |  | Covers financial guarantees offered in aircraft sale structuring                                               
|Embraer Finance Ltd.                                 |  | 100%                      |  | Cayman Islands |  | Support to the Company in structuring specific operations                                                      
|Embraer Merco S.A. (EMS)                             |  | 100%                      |  | Uruguay        |  | No operations                                                                                                  
|                                                     |  |                           |  |                |  |                                                                                                                
|Indústria Aeronáutica Neiva Ltda                     |  | 99,9%                     |  | Brazil         |  | No operations                                                                                                  
|                                                     |  |                           |  |                |  |                                                                                                                



F-12



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





Special Purpose CompaniesSPEsthe Company organizes some of its
aircraft sale financing transactions through SPEs, in which the Company has no direct or indirect interest. Although it has no equity interests, as the Company controls all the SPEs operations or takes a majority share of their risks and
rewards, the SPEs are consolidated in the financial statements of the Parent Company (Embraer S.A.). The consolidated SPEs are: PM Limited, Refine Inc., RS Limited, River One Ltd. and Table Inc. Other SPEs in which Embraer has no control or
continuous involvement have not been consolidated, based on technical analyses made by Management. Apart from the consolidated SPEs mentioned, Embraer has no significant risks attributed to other structured operations involving SPEs.

Consortium Tepro  a consortium formed by Savis Tecnologia e Sistemas S.A. and Bradar Indústria S.A., companies controlled
by Embraer Defesa e Segurança Participações S.A., created to assist the Brazilian Army in November 2012 in implementation of the first phase of the Integrated Frontier Monitoring System (Sistema Integrado de Monitoramento de
FronteirasSisfron). Located in Campinas  SP, the consortium is 93.5% owned by Savis and 6.5% owned by Bradar.

Exclusive
Investment Fundsin connection with its business strategies, the Company has investments in exclusive funds, which are consolidated in the financial statements. The balances of marketable securities and investments maintained through these
funds are recorded in cash and cash equivalents or financial investments, based on the original maturities of the securities and the fund investment strategies, which take into account immediate liquidity (Note 5 and 6).

Equity investment fund (FIP) An Embraer initiative in conjunction with BNDES, FINEP and Desenvolve SP, created with the
aim of strengthening the aerospace supply chain, aerospace, defense and security and promoting integration of systems related to these sectors through support for small and medium enterprises. The transaction is not consolidated in the
Companys financial statements, but its results are presented in the equity line.



|2.2 | Summary of significant accounting policies
|--- | ------------------------------------------

The relevant accounting policies adopted in
the preparation of these financial statements are presented below. Non-disclosure of relevant accounting practices could compromise correct interpretation of the financial statements, either because the international accounting standards offer more
than one treatment option or due to the complexity of the operation. The accounting policies used by the Company are:



|2.2.1 | Functional and presentation currency
|----- | ------------------------------------

A Companys
functional currency is the currency of the primary economic environment in which it is inserted and must be the currency that best reflects the business and operations of the Company. Based on this analysis, management has concluded that the US
Dollar (US $ or Dollar) is its functional currency, based on analysis of the following indicators:



| |  |  | Currency that most influences the prices of goods and services; this is the currency in which the sales price of its goods and services are expressed and settled;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Currency of the country whose competitive forces and regulations most influence the Companys business;
| | - |  | -------------------------------------------------------------------------------------------------------



| |  |  | Currency that most influences the costs of providing goods or services, i.e., the currency in which the Companys costs are normally expressed and settled;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Currency in which the Company largely obtains funds for financial operations and in which it normally receives for its sales and accumulates cash;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------



|2.2.2 | Transactions in foreign currencies
|----- | ----------------------------------

Transactions in other
currencies (other than the functional currency) are translated into the functional currency at the foreign exchange rates in force on the transaction dates and subsequently updated at the exchange rates of the reporting dates in the case of
subsequent measurement. Foreign exchange gains and losses resulting from this conversion (in relation to monetary assets and liabilities indexed in currencies other than the functional currency) are recognized in the income statement as monetary and
exchange variations, net.



F-13



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|2.2.3 | Translation of subsidiaries financial statements
|----- | -------------------------------------------------

Transactions in other currencies (other than the functional currency) are translated into the functional currency at the foreign exchange
rates in force on the transaction dates and subsequently updated at the exchange rates of the reporting dates in the case of subsequent measurement. Foreign exchange gains and losses resulting from this conversion (in relation to monetary assets and
liabilities indexed in currencies other than the functional currency) are recognized in the income statement as monetary and exchange variations, net.



|2.2.4 | Financial Instruments
|----- | ---------------------



| | a) | Financial assets
| | -- | ----------------

The Company classifies its financial assets in the following
categories: (i) measured at fair value through profit or loss, including assets held for trading (ii) available for sale, (iii) held to maturity and (iv) loans and receivables. The classification depends on the purpose for which
the financial assets were acquired. Management decides on the classification of its financial assets at initial recognition.

Financial
assets are initially recognized at fair value plus transaction costs not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognized at fair value, and transaction costs are
expensed in the statement of income.

Financial assets are derecognized when the rights to receive cash flows have expired or have been
transferred. Derecognition occurs if the Company has transferred substantially all risks and rewards of the asset ownership.



| | b) | Classification and measurement
| | -- | ------------------------------



| | b.1) | Financial assets measured at fair value through profit or loss
| | ---- | --------------------------------------------------------------

Financial assets
measured at fair value through profit or loss are those held for active and frequent trading and are classified as current assets. Gains and losses resulting from differences in the fair value are presented in the statement of income in financial
income in the period in which they occur.

The fair values of publicly quoted investments are based on the current purchase and sale
prices. In the case of financial assets without an active market or not publicly quoted, the Company uses valuation techniques to calculate the fair value. These methods include comparison with recent transactions with third parties, reference to
other substantially similar instruments, analysis of discounted cash flows and options pricing models that prioritize market information and minimize information generated by Management.



| | b.2) | Financial assets available for sale
| | ---- | -----------------------------------

Financial assets available for sale are
non-derivative instruments classified in this category. They are included in non-current assets, unless Management intends to dispose of the investment within 12 months after the statement of financial position date and are recorded at fair value.



| | b.3) | Investments held to maturity
| | ---- | ----------------------------

Investments in non-derivative instruments that the
Company has the ability and intention to hold until maturity are classified as investments held to maturity and are measured initially at fair value, including the transaction cost, and subsequently at amortized cost.



| | b.4) | Loans and receivables
| | ---- | ---------------------

The Companys loans and receivables include trade accounts
receivable, financing of customers and other receivables and are not subject to the use of fair value. Interest on loans and receivables is calculated by the effective interest rate method and recognized in the income statement as financial income
(expense), net.



F-14



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





| | c) | Adjustment to fair market value
| | -- | -------------------------------

The Company evaluates if there is objective evidence at
the balance sheet date that a financial asset or financial group is recognized at an amount higher than its recoverable amount. If applicable, a provision is recognized for impairment of the asset.



|2.2.5 | Cash and cash equivalents and short-term investments
|----- | ----------------------------------------------------

Cash and
cash equivalents include cash in hand, cash in transit (amounts paid by our customers or debtors that are pending release by the intervening bank at the reporting date), bank deposits and highly liquid short-term investments, usually maturing within
90 days of the investment date, readily convertible into a known amount of cash and subject to an insignificant risk of change in value.

Amounts related to cash and cash equivalents, which, however, are not available for use by the Company, are presented within other assets in
the consolidated financial statements. Other financial investments whose maturity from the acquisition date is more than 90 days are presented as financial investments.



|2.2.6 | Trade accounts receivable
|----- | -------------------------

Trade accounts receivable are
recognized initially at present value and include revenues recorded using percentage-of-completion of the project method based on the incurred costs or physical progress of contracts, and are presented net of advances from customers and any
provision for doubtful accounts.

An allowance for doubtful trade accounts receivable is recorded when there is objective evidence that
the Company will not be able to recover all the amounts owed by its customers. Significant financial difficulties of the debtor, probability of the debtor filing for bankruptcy or reorganization proceedings and failure to pay or default are
considered indicators that the trade receivables are impaired. The amount of the provision is the difference between the carrying amount and the recoverable amount.

The present value calculation, where applicable, is made on the date of the transaction based on an interest rate that reflects the timing and
market conditions at the time.



|2.2.7 | Derivative financial instruments and hedge operations
|----- | -----------------------------------------------------

The
Company uses derivative instruments to protect its operations against the risk of fluctuations in foreign exchange and interest rates; they are not used for speculative purposes.

Gains and losses on derivative transactions are recorded monthly in profit or loss, taking into account the realizable value of these
instruments (market value). The provision for unearned gains and losses is recognized in the statement of financial position under derivative financial instruments, and the counterpart in profit and loss under financial income (expense), net, (Note
34), except for operations to hedge exposure to changes in exchange rate or designated as hedge accounting.

Embedded derivatives are
separated from their host contracts and are measured at their fair values provided they meet the derivative definition.



|2.2.8 | Hedge accounting
|----- | ----------------

Specific derivative transactions contracted to
protect the company against financial risks. These derivatives are accounted for in a different way, seeking to eliminate the effects of the volatility caused by such risks.

On initial designation of the hedge, the Company formally documents the relationship between hedging instruments and hedged items, including
the risk management objectives and the strategy for conducting the transaction, together with the methods used to evaluate the effectiveness of the relationship. The Company continually assesses the contract to conclude whether the instrument is
highly effective in offsetting changes in fair value of the hedged items during the period for which the hedge is designated, and whether the actual results of each hedge are within an effectiveness range of 80% to 125%.





F-15



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The Company has derivative financial instruments designated as fair value hedges and cash
flow hedges, as follows:



| | a) | Fair value hedges
| | -- | -----------------

Changes in the fair value of derivatives designated as hedges are
recorded in the statement of income, together with any changes in the fair value of the hedged asset or liability attributable to the hedged risk. The Company only uses fair value hedge accounting to hedge fixed interest risk on borrowings.

If the hedge no longer meets the hedge accounting criteria, the fair value of the instrument continues to be recognized in the statement of
income and the fair value of the hedged item is treated as if it were not hedged and amortized to profit or loss over the period to maturity.



| | b) | Cash flow hedges
| | -- | ----------------

The Company uses hedge accounting for cash flow hedges in order to
protect itself from cash flow variations attributed to exchange rate variation risk related to a transaction that is likely to affect the Companys results.

The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognized in shareholders equity
under other comprehensive income. The gain or loss related to the ineffective portion is recognized in profit or loss as financial income (expense).

Amounts accumulated in equity are reclassified to the statement of income in the periods in which the hedged item affects profit or loss.
However, when the forecasted transaction that is hedged results in the recognition of a non-financial asset, the gains and losses previously deferred in equity are transferred from equity and included in the initial measurement of the cost of the
asset.

When a cash flow hedge instrument is settled, or no longer meets the criteria for hedge accounting, any cumulative gain or loss in
equity at that time is realized against profit or loss (in the same line as the hedged item) in line with realization of the hedged operation against profit and loss. When the hedged transaction is no longer expected to occur, the gain or loss in
equity is immediately transferred to profit or loss for the year under financial income (expense).



|2.2.9 | Customer and commercial financing
|----- | ---------------------------------

These relate to financing
granted to customers on the sale of certain aircraft and are measured at the amortized cost, by the effective interest rate method.



|2.2.10 | Collateralized accounts receivable and recourse and non-recourse debt
|------ | ---------------------------------------------------------------------

In structured sales operations, the Company established a Specific Purpose Entity (SPE), which obtained funds from a financial institution,
bought aircraft and paid the Company. In turn, this SPE structured financing for the end customer. In view of the right to receive from the end customer for the structured financing, the debt in relation to the funds obtained by the SPE from the
financial institution is registered as a recourse and non-recourse debt and the corresponding anticipated financial flow as collateralized accounts receivable.

In certain other transactions, the customer financed the purchase of an aircraft through a financing agent and the Company provided guarantees
for such financing. The Company therefore recognized the asset and liability flow for such transactions. The financial guarantee is eliminated in line with repayment of the financing.



|2.2.11 | Inventories
|------ | -----------

The Companys inventories are largely
comprised of raw material, work in progress, spare parts and finished products. In general, raw material is valued at acquisition cost and work in progress and finished goods at production cost, which comprises raw materials, direct labor, other
direct costs and general related production costs. Except for used aircraft, inventories are written down by the average cost method.

The
Company periodically assesses the net realizable value of its inventories, namely the sales price less selling costs. If this amount is lower than the acquisition or production cost at which the inventory was initially recognized, the inventory
value is reduced to the realizable value.

Based on Management estimates, a provision is recorded for potential losses when spare parts
are classified as obsolete or are held in quantities that are in excess of potential demand





F-16



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|2.2.12 | Income tax and social contribution
|------ | ----------------------------------

Tax expenses for the year
comprise current and deferred income tax. Income tax is recognized in the statements of income, except the portion of deferred income tax related to items recognized directly in shareholders equity in other comprehensive income.

The current income tax is calculated at the nominal rates of each country, totaling 34% in Brazil, composed of 25% income tax and 9% social
contribution on net income.

Deferred income tax is recognized on temporary differences arising between the tax and accounting bases of
assets and liabilities.

Elimination of the Transitional tax regime (Regime Tributário de
Transição RTT)

Since the adoption of international accounting standards in
its financial statements from 2008, and in line with the 2009 Transitional Tax Regime (RTT), the Company has calculated its income tax and social contribution on net income based on the accounting practices in force to December 31, 2007.

In November 2013, the Brazilian Internal Revenue issued Provisional Measure no 627, converted into Law no 12.973 in May 2014,
introduced changes to the Brazilian tax laws in relation to the effects of application of the international standards and applying the respective treatment to Income Tax and Social Contribution on Net Income.

The Company has applied this legislation and the related regulatory instructions as from 2015. No material effects have been identified in
relation to application of the international accounting standards. Accordingly, 2015 was marked by the elimination of the RTT.



|2.2.13 | Investments
|------ | -----------

Investments in associates are recorded and valued
in the consolidated financial statements using the equity method of accounting. In the case of exchange variations on foreign investments that use a functional currency other than that used by the Parent Company, such exchange variations are
recognized on Currency Translation Adjustments on equity, and are only recognized in Profit and Loss when the investment is sold or expensed.

Unrealized profits on transactions with subsidiaries are completely eliminated in equity calculations, on both sales from the subsidiary to
the Parent Company and sales between subsidiaries. Unrealized profits between the Parent Company and its subsidiaries are eliminated in the Parent Companys Profit and Loss on sales and cost of sales accounts.

Investments in associated entities over which the Parent Company has significant influence are presented in the Others line within
the investment group and measured by the equity method.

The investments in entities and Joint Ventures are measured and recognized by the
equity method.



|2.2.14 | Property, plant and equipment
|------ | -----------------------------

Property, plant and equipment are
recorded at purchase, formation or construction cost, less accumulated depreciation and impairment losses.

Depreciation is calculated by
the straight-line method based on the assets estimated useful life (Note 16). Land is not depreciated.

Subsequent costs are
included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured
reliably.

The Company estimates the residual value for certain aircraft and spare parts included in the Exchange Pool Program. The
Company does not attribute residual values to other assets as assets sold are not usually written off.





F-17



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The items comprising property, plant and equipment are summarized below:



| | a) | Landmainly comprises areas on which the industrial, engineering and administrative buildings are located.
| | -- | ----------------------------------------------------------------------------------------------------------



| | b) | Buildings and land improvementsmainly plants, engineering departments and offices, and land improvements include parking lots, road systems and water and sewage networks.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | Facilitiescomprise auxiliary industrial facilities that directly or indirectly support the Companys industrial operations, as well as facilities of the engineering and administrative departments.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | d) | Machinery and equipmentmachinery and other equipment directly or indirectly used in the manufacturing process.
| | -- | ---------------------------------------------------------------------------------------------------------------



| | e) | Furniture and fixturesfurniture and fixtures used in the production, engineering and administrative departments.
| | -- | -----------------------------------------------------------------------------------------------------------------



| | f) | Vehiclesmainly industrial vehicles and automobiles.
| | -- | ----------------------------------------------------



| | g) | Aircraftmainly aircraft leased to airlines, and those used by the parent company to assist in testing new projects.
| | -- | --------------------------------------------------------------------------------------------------------------------



| | h) | Computers and peripherals information technology equipment used mainly in the production process, engineering and administration.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------



| | i) | Toolingtools used in the Companys production process.
| | -- | -------------------------------------------------------



| | j) | Property, plant and equipment in progress construction works to expand the manufacturing plants and aircraft maintenance centers.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------



| | k) | Exchange pool programa spare parts pool for the exclusive use of customers who are included in the Exchange Pool Program and aircraft still under warranty. These spare parts are used for customer service,
whereby these customers are allowed to exchange a damaged component for one in working condition, as defined in the contract.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2.2.15 | Intangible assets
|------ | -----------------



| | a) | Development
| | -- | -----------

Research costs are recorded as an expense when they are incurred. Project
costs, comprised mainly of expenditure on product development, including drawings, engineering designs and construction of prototypes, are recorded as intangible assets when it is probable that the projects will generate future benefits, taking into
account their commercial and technological feasibility, availability of technological and financial resources, and only if the cost can be reliably measured.

Capitalized development costs are amortized from the time at which benefits begin to accrue (units produced), based on estimated aircraft
sales, and the amortized amounts are appropriated to production cost. These estimates are reviewed on an annual basis.

The Company has
agreements with certain key suppliers, hereby denominated partners, who participate in the Companys research and development projects by contributing cash. The Company records such contributions as liabilities on receipt and as the milestones
are completed and the amounts are consequently no longer subject to return, they are recorded as a reduction of development expenditures capitalized in intangible assets and amortized on the aircraft production series.



| | b) | Computer software
| | -- | -----------------

Software licenses are capitalized and amortized over their estimated
useful lives.

Costs associated with maintaining computer software programs are recognized as expense as incurred. Development costs
directly attributable to identifiable and unique software, controlled by the Company and that is expected to generate benefits greater than the costs for more than one year, are recorded in intangible assets.





F-18



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





| | c) | Intangible assets acquired in business combinations
| | -- | ---------------------------------------------------

Identified intangible assets
acquired in business combinations are recognized at fair value at the acquisition date. This group includes:



| | c.1) | Goodwillrecorded in the consolidated financial statements as an intangible asset and not subject to amortization, as it is realizable on disposal of the investment. It is tested at least annually for
impairment. If it is noted that the goodwill will not be fully recoverable, the amount of the impairment is recorded in the statement of income. Recognized impairment losses on goodwill are not reversed.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c.2) | Trademarksacquired in business combinations are recognized at fair value at the acquisition date. Trademarks have defined useful lives and are amortized on the straight-line method over their estimated
useful life.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c.3) | Product developmentfrom business combinations when these represent significant value to the Company. Product development assets have a defined useful life and are amortized according to the estimated useful
life of the product.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c.4) | Firm ordersorders or production orders awaiting execution acquired in business combinations are measured and recorded at fair value at the acquisition date and amortized over the delivery period specified
in the contracts.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2.2.16 | Impairment
|------ | ----------

Non-current assets, specifically investments in
subsidiaries, the Companys property, plant and equipment and intangible assets, are initially measured at acquisition or construction cost. However, if there are indications that the value of such assets will not be recoverable in the future,
they are tested for impairment. The indicators are analyzed every quarter, however, even in the absence of such indicators, the Company calculates impairment at the end of each year for all CGUs whose intangible assets originated from product
development and goodwill for future profitability originated on the acquisition of new business processes.

For purposes of assessing the
realizable value, assets are grouped in cash-generating units (CGUs), taking into consideration the companys business model and its monitoring of cash flows. In general, the CGUs are defined in accordance with the families/platforms of the
aircraft or other goods and services produced by a Group company, irrespective of its geographic location.

Except for CGUs for aircraft
which may use market value to calculate the recoverable value of a CGU, the Company applies the value in use concept, using the cash flow projections before income tax and social contribution, discounted at the WACC rate, which reflects the
investors expectations of return. The cash flow projection for each CGU takes into account the Companys medium and long-term strategic plan, based on the characteristics and expectations of the business.

Any impairment of a CGU is recognized in Other Operating Expense on a pro rata basis depending on the assets of the subsidiaries that operate
in that CGU.



|2.2.17 | Loans and financing
|------ | -------------------

Loans are recognized initially at fair
value, net of transaction costs, and subsequently carried at amortized cost (plus charges and interest on a pro rata basis), taking into account the effective interest rate on each transaction.

Loans are classified as current liabilities, unless the Company has an unconditional right to defer settlement of the liability for at least
12 months after the reporting date.



|2.2.18 | Leases
|------ | ------

Determination of whether an arrangement is or contains a
lease is based on the substance of the transaction and requires an assessment of whether the arrangement transfers the risks and benefits of assets or only conveys the right to use the asset.





F-19



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





| | a) | Aircraft leases
| | -- | ---------------

Aircraft available for lease or leased under operating leases are
recorded as property, plant and equipment and depreciated over their estimated useful lives. The rental income is recorded by the straight-line method over the lease period.



| | b) | Other leases
| | -- | ------------

Other leases in which the Company holds substantially all the risks and
benefits of ownership are classified as finance leases. Finance leases are recorded as a financed purchase, initially by recording a fixed asset and a financial liability (lease). Property, plant and equipment acquired under finance leases are
depreciated at the rates mentioned in Note 16.

Other leases in which a significant part of the risks and benefits of ownership are
assumed by the lessor are classified as operating leases. Payments made for operating leases are appropriated to the statement of income on the straight-line method over the contract period.



|2.2.19 | Borrowing costs
|------ | ---------------

Borrowing costs attributable to the
construction or production of assets that will not be ready for use for a considerable time are capitalized as part of the cost of the asset. These costs are allocated based on the average rate of all outstanding loans, weighted in accordance with
additions in the period of the assets. Borrowing costs are interest and other charges incurred by the Company in obtaining a loan.



|2.2.20 | Advances from customers
|------ | -----------------------

These refer basically to advances,
mostly denominated in dollars, Embraers functional currency, received from customers prior to the delivery of the aircraft.



|2.2.21 | Financial guarantees and residual value guarantees
|------ | --------------------------------------------------

In certain
cases, the Company grants financial or residual value guarantees on delivery of its aircraft, as part of the aircraft financing structure. The residual amount is guaranteed to the lender based on the expected future value of the aircraft at the end
of the funding, subject to a maximum limit, agreed by contract.

Financial guarantees are calculated at the time of delivery of the
aircraft and recognized as a reduction in sales revenue against deferred income. The income is realized in profit or loss over the aircraft financing period and all deferred income is recognized by the end of that period.

To cover the risk of losses on such guarantees, the Company may record an additional provision in the event of significant circumstances such
as a customer filing for Chapter 11, based on the best estimate of potential losses (Note 25).

In some cases, the Company holds
guarantees in the form of deposits in favor of third parties to whom financial and residual value guarantees have been provided as part of aircraft financing structures (Note 11).



|2.2.22 | Dividends and interest on own capital
|------ | -------------------------------------

Under the bylaws,
shareholders are entitled to dividends or interest on own capital equivalent to 25% of net income for the year, adjusted in accordance with the bylaws. The calculation takes into account the interest on own capital net of withholding tax.

Proposed distributions of dividends to shareholders are recorded as a liability in the financial statements at the end of the year. Any amount
over and above the minimum mandatory dividend is recognized in a specific account as additional dividends proposed in the revenue reserve in shareholders equity, until it is approved by the shareholders, at which point the reserve is reversed
against a liability in the consolidated financial statements.

Interest on own capital paid or provisioned is recorded as a financial
expense for tax purposes. However, for purposes of these consolidated financial statements, the amount is disclosed as distribution of net income for the year, and the gross amount is reclassified to shareholders equity, at the gross amount.





F-20



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|2.2.23 | Unearned income
|------ | ---------------

Amounts received from customers, without the
possibility of return, for the spare parts, training, technical representatives and other commitments established in sales contracts for aircraft already delivered. Amounts are deferred on delivery of the aircraft and the unearned income is
recognized when the service is rendered or the product is delivered to the customer.

This also refers to deferred revenues from defense
contracts for which the contractual milestones have not yet been completed. Revenue is recognized when the step is completed and the costs are recorded.



|2.2.24 | Provisions, contingent assets and liabilities, legal obligations and judicial deposits
|------ | --------------------------------------------------------------------------------------

Provisions  provisions are recognized based on the judgment of the Companys Management and its legal counsel, the nature of the
lawsuits, legal precedent, complexity and court interpretations, whenever the loss is considered probable, when such loss would result in a probable outflow of resources to settle the obligations and when the amounts involved can be measured with a
reasonable degree of certainty. The amounts provided represent the Companys best estimate of the anticipated outflow of resources.

Contingent assets  are not recognized except when the Company concludes that the gain is virtually certain, has the right to real
guarantees or has received a favorable and unappealable legal decision.

Contingent liabilities  amounts for which disbursement is
classified as possible are not recorded in the accounts, but merely disclosed in the financial statements. Where the probability of loss is classified as remote, neither provision nor disclosure are required.

Legal obligationsresult from tax liabilities, the legality or constitutionality of which is under appeal. The related amounts are fully
provided for.

Court-mandated escrow depositsare recorded as other assets.



|2.2.25 | Post-retirement benefits
|------ | ------------------------



| | a) | Defined contribution
| | -- | --------------------

The Company provides defined contribution pension plans for its
employees. For the companies incorporated in Brazil, these are managed by EMBRAER PREVSociedade de Previdência Complementar.



| | b) | Post-retirement healthcare benefits
| | -- | -----------------------------------

The Company and some of its subsidiaries provide
healthcare benefits to retired employees.

The planned costs of offering post-retirement healthcare benefits and coverage for dependents
are recorded as a provision during the period of employment based on actuarial studies conducted to identify future exposure, based on the following main premises:



| | i) | Discount ratebrings future benefit flows to present value and is defined based on the ratio of Brazilian government securities;
| | -- | --------------------------------------------------------------------------------------------------------------------------------



| | ii) | Medical costs increase raterepresents the increase in the value of medical care and is not applied linearly, as the companies historically tend to take measures to reduce the cost, or even change health
plan providers;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii) | Morbidity rate (aging factor)measures the increased use of health plans in light of the aging population;
| | ---- | ----------------------------------------------------------------------------------------------------------



| | iv) | Mortality rateuses the RP-2000 generational table provided by Society of Actuaries (SOA), which shows the rate by age and sex;
| | --- | -------------------------------------------------------------------------------------------------------------------------------



| | v) | Probability of Retirementestimates the probability of retirement by age group;
| | -- | -------------------------------------------------------------------------------



| | vi) | Churn rateuses the T-3 Table Service available from the Society of Actuaries (SOA), which shows the average rate of termination of employees by age.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------



F-21



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The Company recognizes changes in the provision for the plan against other comprehensive
income in equity, net of taxes, to the extent that there are changes in the assumptions and against profit or loss if there are changes in the costs of the current benefit plan or in the plans contractual characteristics.

This provision is reviewed annually at the reporting date.



|2.2.26 | Product warranties
|------ | ------------------

Warranty expenditure on aircraft and spare
parts is estimated on delivery of these products. The estimates are based on historical facts that include warranty claims and repair and replacement costs, warranties given by the suppliers and contractual coverage period. The coverage period
varies from 3 to 5 years.

The Company may be obliged to modify the product to meet the requirements of the certification authorities, or
after delivery, due to improvements or to the aircrafts performance. The costs of such modifications are provisioned when the new requirements or improvements are requested and known.



|2.2.27 | Share Based Payment
|------ | -------------------

The Executive Remuneration Policy (PRE),
determines that the remuneration of the Companys management shall be granted as a Long Term Incentive (ILP in Portuguese) with the objective of retaining and attracting qualified personnel who will make an effective contribution to the
Companys performance. The Company provides two types of share-based remuneration in the form of LTIs:

i) stock options plan
(capital instruments based on the Companys share issues). In this modality, the program participants receive stock options in return for the services provided, the fair value of which is calculated based on the Black & Scholes pricing
model and recognized on a linear basis in the statements of income during the acquisition period, which is the period during which the acquisition criteria are met;

ii) cash-settled phantom shares plan in which the amounts attributed to the services provided by the participants are converted into virtual
share units based on the market value of the Companys shares. At the end of the acquisition period the participant receives the quantity of virtual shares converted into Reais, at the shares current market value. The company
recognizes the obligation during the acquisition period (quantity of virtual shares proportional to the period) in the same group as the participants normal remuneration. This obligation is presented as an account payable to employees and the
fair value is calculated based on the market price of the shares and registered as financial income (expense) in the statements of income. The phantom shares plan is a cash-settled share-based payment transaction; therefore, it has no impact on the
calculation of diluted earnings per share.



|2.2.28 | Government grants
|------ | -----------------

Government Grants are recognized against the
expenses for which the resources were used. Government grants advanced for investments in research and development are registered as deferred income and recognized in profit or loss to the extent that the resources are invested and the contractual
milestones are met, as a reduction of research expenses.

The government grants to acquire property, plant and equipment, will be
recognized as a obligation on the liability until the milestones defined by the conceiving entity are attended. On the moment these milestones are achieved, the grant shall be recognized as deferred revenue. This deferred revenue shall be recognized
on profit and loss as a reduction on the depreciation expense which this grant shall subside on the same proportion that this expense is recognized.



|2.2.29 | Earnings per share
|------ | ------------------

Basic earnings per common share are computed
by dividing net income attributable to Embraer shareholders by the weighted average number of common shares outstanding during the period.

Diluted earnings per share are computed by adjusting the number of shares outstanding to include the number of additional shares that would
have been outstanding had the potentially dilutive shares attributable to stock options been put into circulation during the respective periods.





F-22



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|2.2.30 | Revenue recognition
|------ | -------------------

Revenue comprises the fair value of the
remuneration received or to be received for the sale of products and services in the normal course of business. Revenue is presented net of taxes, returns, reductions and discounts, and in the consolidated financial statements, after eliminating
intercompany sales.



| | a) | Revenue from aircraft, spare parts and services
| | -- | -----------------------------------------------

Revenue from sales of commercial,
executive and other aircraft, spare parts and services is generally recognized at the time of delivery or shipment, when the service is provided, when the risks and benefits are transferred to the customer and when all the conditions for recognition
are met.

When the sale of aircraft does not meet the contractual obligations at the time of the delivery, related revenue is deferred and
accounted for as unearned income until the obligations are met.



| | b) | Revenue with multiple elements
| | -- | ------------------------------

Revenue from aircraft sale contracts involving the
supply of spare parts, training and technical representation is recognized at its fair value when the product or service is delivered or provided to the customer.



| | c) | Revenue from Exchange Pool Program
| | -- | ----------------------------------

Revenue from the Exchange Pool Program is recognized
monthly during the contractual period and consists of a fixed charge and a variable charge directly related to the hours effectively flown by the aircraft under the program.



| | d) | Revenue from construction contracts
| | -- | -----------------------------------

Certain transactions in the Defense &
Security segment are construction contracts, and revenues are recognized by the Percentage-of-completion (POC) method, by incurred costs or physical progress and also through recognition upon delivery or shipment. Some contracts contain provisions
for price adjustment based on pre-established indices and these are recognized on an accrual basis. Adjustments of revenue recognition relating to sales of the Defense & Security segment contracts is based on Managements best
estimates as they arise.



| | e) | Revenue from operating leases
| | -- | -----------------------------

The Company also recognizes the revenue from aircraft
rental as operating leases, proportional to the lease period.



|2.2.31 | Cost of sales and services
|------ | --------------------------

Cost of sales and services consists
of the cost of the aircraft, spare parts and services rendered, comprising:



| | a) | Materialsubstantially all material cost are covered by contracts with suppliers. Prices under these contracts are generally adjusted based on escalation formulas which reflect, in part, inflation in the
United States.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | Labor comprises salaries and related charges, primarily in Brazilian reais.
| | -- | ----------------------------------------------------------------------------



| | c) | DepreciationThe Companys fixed assets are depreciated using the straight-line basis over their useful lives.
| | -- | --------------------------------------------------------------------------------------------------------------



| | d) | Amortization Internally generated intangible assets are amortized in accordance with the estimated sales of the series of aircraft. Intangible assets acquired from third parties are amortized on
straight-line bases over their estimated useful lives.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | e) | Product warranties The Company estimates and records a liability for guarantee obligations related to its products on the date of delivery of the aircraft, based on historical experience and recorded as
cost of goods sold.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | f) | Multiple elements arrangements The Company enters into transactions that represent multiple-element arrangements, such as for providing training, technical assistance, spare parts and other concessions.
These costs are recognized when the product or service is delivered or provided to the customer.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-23



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|2.2.32 | Employee profit sharing plan
|------ | ----------------------------

The Company provides a profit
sharing plan for its employees, which is linked to performance targets set in action plans set and agreed at the beginning of each year. The profit sharing is equivalent to 12.5% of the net income for the period calculated in accordance with the
IFRS. Provisions are recognized monthly by applying the agreed percentage to the payroll of the company, recognized in the profit or loss accounts related to the job performed by each employee.

Over the total amount of the profit sharing, 50% is divided equally among all the employees and the other 50% in proportion to each
employees salary.



|2.2.33 | Financial income and expenses and foreign exchange gains/losses
|------ | ---------------------------------------------------------------

Financial income and expenses principally comprise earnings on short-term investments, financial charges on loans, tax updates and foreign
exchange gains/losses on assets and liabilities expressed in currencies other than the functional currency (dollar), on an accrual basis.

Changes in the fair value of the residual value guarantees and profit or loss on the provision and implementation of derivative financial
capitalized are also recorded as financial revenue (expense).

Financial income and expense exclude borrowing costs attributable to
acquisitions, buildings or the contribution of qualifying assets that require a substantial period of time to be ready for use or sale.



|2.2.34 | Statement of cash flows
|------ | -----------------------

The statement of cash flows was
prepared using the indirect method.



|2.2.35 | Segment reporting
|------ | -----------------

Operating segment information is presented in
a manner consistent with the internal reports provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources among and assessing the performance of the operating segments and for
making strategic decisions, is the chief executive officer.



|3. | Critical accounting estimates
|-- | -----------------------------

Preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make estimates and adopt assumptions that affect the reported amounts of assets and liabilities, revenue and expense and their disclosure. Therefore, variables and assumptions
derived from past experience and other factors deemed relevant were used in preparing accompanying financial statements included in this report. These estimates and assumptions are reviewed on an ongoing basis and the changes to accounting estimates
are recognized in the period in which the estimates are revised.

The significant accounting policies, including the variables and
assumptions used in the estimates, and the relevant sensitivity of those judgments to different scenarios and conditions are described below:



|3.1. | Sales revenues
|---- | --------------

In the Defense & Security segment, a significant portion of
revenue is derived from long-term development and construction contracts with the Brazilian and foreign governments, and revenue is recognized by the Percentage-of-completion (POC) method, using incurred costs or physical progress as a reference for
revenue measurement. In the case of contracts measured at incurred costs, the anticipated margin of the contract is reassessed periodically, taking into account cost incurred and the projected completion costs. In the event of variations in this
margin, revenue already recognized in relation to such contracts is adjusted, taking into account the effects of the change in margin on costs already incurred. If the total costs of contracts in progress had been 10% lower than Managements
estimates, the revenue recognized in 2015 would have increased by US$ 207.0; if costs had been 10% higher than Managements estimates, there would have been a drop of US$ 248.9 in the revenue recognized.





F-24



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|3.2. | Financial guarantees
|---- | --------------------

Financial guarantees are granted at fair value and recognized as a
reduction in sales, and subsequently recognized as sales revenue over the period of the guarantee. On granting a financial guarantee, the Company evaluates the creditworthiness of the obligor and discloses its maximum exposure under the guarantee in
Note 36.3  Joint liabilities co-obligation, responsibilities and commitments. The Company monitors the obligors credit worthiness periodically and in the event of an official default (Chapter 11) or negotiation the exposure is
recalculated based on the best estimate when and if the payments become probable and can be estimated reliably, recognizing a provision. When an agreement is negotiated for payment of this allowance, the amounts assumed are reclassified to accounts
payable.



|3.3. | Residual value guarantees
|---- | -------------------------

The residual value guarantees granted on aircraft sales can
be exercised at the end of a financing contract between a financial agent and the customer/operator of these aircraft. The guarantee are initially measured by fair value and are revised quarterly to reflect any losses in relation to the fair value
of these commitments. The residual value guarantees may be exercised if the quoted market value is lower than the future fair value guaranteed. The future fair value is estimated in accordance with third party evaluation of the aircraft, including
information from sale or leasing of similar aircraft on the secondary market.



|3.4. | Impairment
|---- | ----------

The impairment test considers the Companys medium and long-term
strategic plan, brought to present value at the WACC rate compatible with the market and that reflects the shareholders expectations of return. In preparing or using this information, the Company uses estimates, as follows:



| | a) | Gross expected cash flowthe Management projected inflows and outflows based on past performance considering its business strategy and market development expectations. These projections also consider the
efficiency gains planned for the product cycle;
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | Growth ratesthe growth rates were reflected in the revenue flow budgeted by the Company, consistent with the forecasts included in industry reports
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | Discount Ratesa WACC discount rate is used that reflects the expected return of investors at the time the calculation is made. This rate is also compared with the market to confirm its consistency;
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3.5. | Fair value of financial instruments
|---- | -----------------------------------

The fair value of financial instruments that are
not traded in an active market is determined by using valuation techniques. The Company uses its judgment to select a variety of methods using assumptions based on market conditions at the end of each reporting period. The methods and calculations
are the same as known techniques normally used by the financial market.



|3.6. | Income taxes
|---- | ------------

The Company is subject to income taxes in multiple jurisdictions.
Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company also recognizes liabilities based on estimates
of whether additional taxes will be due. When the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in
which the final amount is determined.

Because the Companys tax is largely determined in Brazilian reais and its functional
currency is the dollar, the income tax expense line is highly sensitive to the effects of changes in exchange rates, particularly those due to changes in non-monetary assets.

If the real had devalued or appreciated by 10% against the dollar in relation to the actual exchange rate at December 31, 2015, the
deferred income tax expense would have been higher or lower by approximately US$ 130.2 million.





F-25



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|3.7. | Post-retirement benefits
|---- | ------------------------

The Company and certain of its subsidiaries have a
post-employment medical benefit plan that provides medical care to retired employees. To identify the future exposure of this benefit and therefore its measurement in the financial statements, the Company and its subsidiaries use assumptions that
are usually based on statistical data, often observed internally or supplied by institutes or entities dedicated to this type of activity.

Considering that these actuarial studies use premises such as discount rate, medical cost increase rate, morbidity rate (aging factor),
mortality table, retirement probability and dismissal rate, largely based on statistical data, the definition of any reasonably possible change is very subjective. In this respect, an increase of 0.5% in the discount rate used in the actuarial
calculation of the post-employment medical benefit granted by the Company would reduce its exposure at December 31, 2015 by US$ 1.5, while a reduction of 0.5% would increase the exposure by US$ 1.3. In the case of the medical cost growth rate,
a 1% increase in the actuarial calculation would increase the Companys exposure by US$ 3.1 and a 1% reduction would reduce its exposure by US$ 2.6.



|4. | Accounting pronouncements not yet adopted
|-- | -----------------------------------------

Standards and amendments to existing
standards mentioned in this section have been published, but implementation is not mandatory for the year ended December 31, 2015, and the Company has not early adopted the amendments in these Financial Statements.

The accounting pronouncements presented below may be relevant to the Company on the future, for this reason adoption projects are in course
for each of them, not being possible to estimate the adoption effects of the adoption until these projects are concluded:



| |  |  | IFRS 9Financial Instruments: covers the classification, measurement and recognition of financial assets and liabilities. IFRS 9 requires the classification of financial assets in two categories: measured at fair
value and measured at amortized cost. The classification is defined on initial recognition. The basis for classification depends on the entitys business model and the contractual characteristics of the cash flow of the financial instruments.
With regard to the financial liability, the standard maintains most of the requirements established by IAS 39. The major change is that in cases in which the fair value option is adopted for financial liabilities, the portion of the fair value
related to the entitys own credit risk is registered as Other Comprehensive Income and not in profit or loss, except where it results in an accounting inconsistency. First time adoption of IFRS 9 could affect the classification and measurement
of the Companys financial assets, depending on the composition of the portfolio at the implementation date. The standard is applicable from January 1, 2018.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | IFRS 15Revenue from Contracts with Customers: it addresses a single new model for recognition of revenue from contracts with customers, based on five steps for determining when to recognize the revenue, and at
what amount. The model specifies that revenue should be recognized when an entity transfers control of goods and services to the customer, at the amount that the entity expects to be entitled to receive. In order to conclude as to the potential
impact on the Financial Statements, the Company has initiated a project to assess the new model introduced by the accounting pronouncement and its application to existing transactions. The project first identified the possibility of changes in the
numbers of performance obligations, as well as a change in the distribution of the total revenue over its performance obligations. The standard is applicable from January 1, 2018.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | IFRS 16Leases: introduces new concepts from the lessees perspective. The model proposed by this standard requires the lessee to recognize all leases in the balance sheet in a Fixed Assets
right-of-use account, against a liability account, measured at present value on initial recognition. The model proposed by the standard makes no significant changes in respect of recognition in the accounts by the lessor. The Company is
analyzing the new model introduced by the accounting pronouncement and its application to existing transactions. The standard is applicable from January 1, 2019.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Other accounting standards have been amended or are in the process of amendment and will come into effect in the coming years, however these
have not been mentioned, as the company does not expect them to result in significant impacts.





F-26



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|5. | Cash and cash equivalents
|-- | -------------------------



|                      |  |            |         |  |            |  |         | 
|--------------------- |  | ---------- | ------- |  | ---------- |  | ------- | 
|                      |  | 12.31.2015 |         |  | 12.31.2014 | 
|Cash and banks        |  |            | 379.5   |  |            |  | 230.6   | 
|                      |  |            |         |  |            |  |         | 
|                      |  |            | 379.5   |  |            |  | 230.6   | 
|                      |  |            |         |  |            |  |         | 
|Cash equivalents      |  |            |         |  |            |  |         | 
|Private securities(i) |  |            | 565.8   |  |            |  | 973.4   | 
|Fixed deposits(ii)    |  |            | 919.3   |  |            |  | 507.5   | 
|Investment funds      |  |            |        |  |            |  | 1.5     | 
|Structured Notes(iii) |  |            | 300.9   |  |            |  |        | 
|                      |  |            |         |  |            |  |         | 
|                      |  |            | 1,786.0 |  |            |  | 1,482.4 | 
|                      |  |            |         |  |            |  |         | 
|                      |  |            | 2,165.5 |  |            |  | 1,713.0 | 
|                      |  |            |         |  |            |  |         | 



|(i) | Investment in Bank Deposit Certificates  CDBs and Repurchase AgreementsREPO issued by Brazilian financial institutions, with original maturities of 90 days or less, for which there are no penalties on
remuneration if the Company decides to terminate the transaction before the original maturity date.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | Fixed term deposits in US Dollars with original maturities of 90 days or less.
|---- | ------------------------------------------------------------------------------

|(iii) | Structured Note issued by an investment grade financial institution, maturing within 90 days from the issue date, subject to the credit risk of Brazilian government debt securities issued in Brazil.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|6. | Financial investments
|-- | ---------------------



|                      |  |                                                  |       |  |                 |  |       |                   |  |  |       |  |  |                                                  |         |  |                 |  |       |                   |  |  |       |  |  |  |     |  |  |  |       | 
|--------------------- |  | ------------------------------------------------ | ----- |  | --------------- |  | ----- | ----------------- |  |  | ----- |  |  | ------------------------------------------------ | ------- |  | --------------- |  | ----- | ----------------- |  |  | ----- |  |  |  | --- |  |  |  | ----- | 
|                      |  | 12.31.2015                                       |       |  | 12.31.2014      | 
|                      |  | Assetsmeasured atfair valuethrough profitor loss |       |  | Held tomaturity |  |       | Availablefor sale |  |  | Total |  |  | Assetsmeasured atfair valuethrough profitor loss |         |  | Held tomaturity |  |       | Availablefor sale |  |  | Total | 
|Financial instruments |  |                                                  |       |  |                 |  |       |                   |  |  |       |  |  |                                                  |         |  |                 |  |       |                   |  |  |       |  |  |  |     |  |  |  |       | 
|Private securities    |  |                                                  | 393.2 |  |                 |  |      |                   |  |  |      |  |  |                                                  | 393.2   |  |                 |  | 412.4 |                   |  |  |      |  |  |  |    |  |  |  | 412.4 | 
|Structured Notes(i)   |  |                                                  |      |  |                 |  | 702.9 |                   |  |  |      |  |  |                                                  | 702.9   |  |                 |  |      |                   |  |  |      |  |  |  |    |  |  |  |      | 
|Money market funds    |  |                                                  | 229.0 |  |                 |  |      |                   |  |  |      |  |  |                                                  | 229.0   |  |                 |  | 287.9 |                   |  |  |      |  |  |  |    |  |  |  | 287.9 | 
|Investment funds      |  |                                                  | 0.1   |  |                 |  |      |                   |  |  |      |  |  |                                                  | 0.1     |  |                 |  | 9.0   |                   |  |  |      |  |  |  |    |  |  |  | 9.0   | 
|Public securities     |  |                                                  |      |  |                 |  | 0.1   |                   |  |  |      |  |  |                                                  | 0.1     |  |                 |  |      |                   |  |  | 1.1   |  |  |  |    |  |  |  | 1.1   | 
|Other                 |  |                                                  | 0.2   |  |                 |  | 44.7  |                   |  |  | 2.0   |  |  |                                                  | 46.9    |  |                 |  | 0.3   |                   |  |  | 43.1  |  |  |  | 2.6 |  |  |  | 46.0  | 
|                      |  |                                                  |       |  |                 |  |       |                   |  |  |       |  |  |                                                  |         |  |                 |  |       |                   |  |  |       |  |  |  |     |  |  |  |       | 
|                      |  |                                                  | 622.5 |  |                 |  | 747.7 |                   |  |  | 2.0   |  |  |                                                  | 1,372.2 |  |                 |  | 709.6 |                   |  |  | 44.2  |  |  |  | 2.6 |  |  |  | 756.4 | 
|                      |  |                                                  |       |  |                 |  |       |                   |  |  |       |  |  |                                                  |         |  |                 |  |       |                   |  |  |       |  |  |  |     |  |  |  |       | 
|Current portion       |  |                                                  | 622.5 |  |                 |  | 0.1   |                   |  |  |      |  |  |                                                  | 622.6   |  |                 |  | 709.6 |                   |  |  | 1.0   |  |  |  |    |  |  |  | 710.6 | 
|Non-current           |  |                                                  |      |  |                 |  | 747.6 |                   |  |  | 2.0   |  |  |                                                  | 749.6   |  |                 |  |      |                   |  |  | 43.2  |  |  |  | 2.6 |  |  |  | 45.8  | 



|(i) | Structured Note issued by an investment grade financial institution, according to the evaluation of management, subject to the credit risk of Brazilian government debt securities issued in Brazil.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The weighted average interest rates at December 31, 2015 for cash equivalents in reais and in dollars were 14.70% p.a. and 1.71%
p.a. (11.14% p.a. and 1.27% p.a. at December 31, 2014), respectively.



|7. | Trade accounts receivable, net
|-- | ------------------------------



|                                |  |  |       |   |  |  |       |  
|------------------------------- |  |  | ----- | - |  |  | ----- | -
|Foreign customers               |  |  | 441.2 |   |  |  | 435.0 |  
|Brazilian Air Force             |  |  | 350.4 |   |  |  | 277.3 |  
|Domestic customers              |  |  | 39.1  |   |  |  | 34.4  |  
|                                |  |  |       |   |  |  |       |  
|                                |  |  | 830.7 |   |  |  | 746.7 |  
|                                |  |  |       |   |  |  |       |  
|Allowance for doubtful accounts |  |  | (47.3 | ) |  |  | (42.9 | )
|                                |  |  |       |   |  |  |       |  
|                                |  |  | 783.4 |   |  |  | 703.8 |  
|                                |  |  |       |   |  |  |       |  
|Current portion                 |  |  | 781.9 |   |  |  | 696.9 |  
|Non-current portion             |  |  | 1.5   |   |  |  | 6.9   |  



F-27



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The changes to the allowance for doubtful accounts are summarized as follows:



|                           |  |            |       |   |            |  |       |  
|-------------------------- |  | ---------- | ----- | - | ---------- |  | ----- | -
|                           |  | 12.31.2015 |       |   | 12.31.2014 | 
|Beginning balance          |  |            | (42.9 | ) |            |  | (47.1 | )
|Additions                  |  |            | (13.4 | ) |            |  | (6.0  | )
|Reversal                   |  |            | 2.4   |   |            |  | 5.1   |  
|Disposals                  |  |            | 3.6   |   |            |  | 2.8   |  
|Foreign exchange variation |  |            | 3.0   |   |            |  | 2.3   |  
|                           |  |            |       |   |            |  |       |  
|Ending balance             |  |            | (47.3 | ) |            |  | (42.9 | )
|                           |  |            |       |   |            |  |       |  

The net amount of accounts receivable denominated in the following currencies is:



|             |  |            |       |  |            |  |       | 
|------------ |  | ---------- | ----- |  | ---------- |  | ----- | 
|             |  | 12.31.2015 |       |  | 12.31.2014 | 
|U.S. dollars |  |            | 617.8 |  |            |  | 508.0 | 
|Euros        |  |            | 98.7  |  |            |  | 116.8 | 
|Reais        |  |            | 65.8  |  |            |  | 77.9  | 
|Other        |  |            | 1.1   |  |            |  | 1.1   | 
|             |  |            |       |  |            |  |       | 
|             |  |            | 783.4 |  |            |  | 703.8 | 
|             |  |            |       |  |            |  |       | 

At December 31, 2015, the accounts receivable of US$ 697.4 (US$ 615.3 at December 31, 2014) were
current and not past due. There were accounts receivable overdue, but not impaired, for the period presented, related to independent customers with no recent history or expectation of default. The analysis of past due accounts receivable is
presented below:



|                    |  |            |      |  |            |  |      | 
|------------------- |  | ---------- | ---- |  | ---------- |  | ---- | 
|                    |  | 12.31.2015 |      |  | 12.31.2014 | 
|Up to 90 days       |  |            | 45.6 |  |            |  | 48.4 | 
|From 91 to 180 days |  |            | 16.3 |  |            |  | 13.3 | 
|More than 180 days  |  |            | 24.1 |  |            |  | 26.8 | 
|                    |  |            |      |  |            |  |      | 
|                    |  |            | 86.0 |  |            |  | 88.5 | 
|                    |  |            |      |  |            |  |      | 

Unbilled accounts receivable recognized by the POC method for the Defense and Security segment totaled US$
504.3 at December 31, 2015 (US$ 519.2 at December 31, 2014). Revenues recorded in 2015 were US$ 754.8 (US$ 1,364.9 at December 31, 2014). Costs related to construction contracts using the POC method totaled US$ 713.3 in 2015 (US$
1,072.7 at December 31, 2014).



|8. | Derivative financial instruments
|-- | --------------------------------

Derivative financial instruments are contracted to
protect the Companys operations from exchange and interest rate fluctuations and are not used for speculation.

As of
December 31, 2015, the Company had derivative financial instruments such as interest rate swaps and, purchase options, currency put and call options and non-deliverable forwards (NDF).

Swaps are contracted to exchange a floating rate loan to a fixed rate loan or to exchange cash flows in dollars to cash flows in reais,
or vice versa and to exchange Euros for dollars or vice versa according to the need to protect the transactions. The fair value of these instruments is measured at the future flow, determined by applying the contractual rates up to maturity and
discounted to present value on the date of the consolidated financial statements at the current market rates.

Cash flow hedges are
contracted to protect highly probable cash flows denominated in reais related to salaries and health plan expenses against exchange rate variations. The related cash flows are expected to occur on a monthly basis between January 2015 and
December 2016. The financial instrument normally used by the Company for this type of transaction is the zero-cost collar, which consists of buying put options and selling call options contracted with the same counterparty and with zero net premium.
The fair value of these instruments is determined in accordance with the observable market pricing model (through market information providers) and widely used by market players to measure similar instruments. When the dollar closing rate of is
between the put and call exercise values, the fair value reflects the extrinsic value of the option, i.e., the value that is directly connected to the time remaining to maturity. The projected cash flows will affect the income statement according to
the accrual period.



F-28



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





Non-deliverable forwards are contracted to protect the Company against the risk of
fluctuations in exchange rates. The fair value is determined in accordance with the observable market pricing model.

As of
December 31, 2015, the Company did not have any derivative contracts subject to margin calls.



|                                                  |  |               |  |                   |  |                 |      |  |            |  |      |            |  |  |      |  
|------------------------------------------------- |  | ------------- |  | ----------------- |  | --------------- | ---- |  | ---------- |  | ---- | ---------- |  |  | ---- | -
|Purpose                                           |  | Risk          |  | Counterparty      |  | Settlement date |      |  | 12.31.2015 |  |      | 12.31.2014 | 
|Recourse and non-recourse debt(i)                 |  | Interest rate |  | Natixis           |  |                 | 2022 |  |            |  | 13.2 |            |  |  | 17.9 |  
|Export financing(ii)                              |  | Interest rate |  | Itau BBA          |  |                 | 2016 |  |            |  | (0.3 | )          |  |  | (2.4 | )
|                                                  |  |               |  | Votorantim        |  |                 | 2017 |  |            |  | (1.3 | )          |  |  | (2.5 | )
|                                                  |  |               |  | Citibank          |  |                 | 2016 |  |            |  | (0.2 | )          |  |  | (1.3 | )
|                                                  |  |               |  | Santander         |  |                 | 2017 |  |            |  | (0.2 | )          |  |  | (0.8 | )
|                                                  |  |               |  | Société Générale  |  |                 | 2016 |  |            |  | (0.2 | )          |  |  | (0.6 | )
|                                                  |  |               |  | Bradesco          |  |                 | 2016 |  |            |  | (0.2 | )          |  |  | (0.6 | )
|Acquisition of property, plant and equipment(iii) |  | Interest rate |  | Compass Bank      |  |                 | 2024 |  |            |  | (0.4 | )          |  |  | (0.4 | )
|Brazilian Real expenses(iv)                       |  | Exchange rate |  | Itau BBA          |  |                 | 2016 |  |            |  | 0.6  |            |  |  | (0.4 | )
|                                                  |  |               |  | Citibank          |  |                 | 2015 |  |            |  |     |            |  |  | (1.1 | )
|                                                  |  |               |  | Santander         |  |                 | 2015 |  |            |  |     |            |  |  | (0.6 | )
|                                                  |  |               |  | Votorantim        |  |                 | 2016 |  |            |  | 0.2  |            |  |  | (1.5 | )
|Brazilian Real expenses                           |  | Exchange rate |  | Itau BBA          |  |                 | 2015 |  |            |  |     |            |  |  | (0.7 | )
|                                                  |  |               |  | Votorantim        |  |                 | 2015 |  |            |  |     |            |  |  | (0.4 | )
|Export financing(v)                               |  | Interest rate |  | Itaú BBA          |  |                 | 2016 |  |            |  | (0.2 | )          |  |  | (0.1 | )
|                                                  |  |               |  | Bradesco          |  |                 | 2016 |  |            |  | (0.1 | )          |  |  | (0.1 | )
|                                                  |  |               |  | Votorantim        |  |                 | 2017 |  |            |  | (0.7 | )          |  |  | (0.4 | )
|                                                  |  |               |  | Bofa Merril Lynch |  |                 | 2018 |  |            |  |     |            |  |  | (0.1 | )
|                                                  |  |               |  | Santander         |  |                 | 2017 |  |            |  | (0.7 | )          |  |  | (0.5 | )
|Project Development(v)                            |  | Interest rate |  | Itaú BBA          |  |                 | 2023 |  |            |  | (0.6 | )          |  |  | (0.1 | )
|                                                  |  |               |  | Votorantim        |  |                 | 2022 |  |            |  | (1.2 | )          |  |  | (0.3 | )
|                                                  |  |               |  | Bofa Merril Lynch |  |                 | 2022 |  |            |  | (1.2 | )          |  |  | (0.1 | )
|                                                  |  |               |  | Santander         |  |                 | 2023 |  |            |  | (2.4 | )          |  |  | (0.1 | )
|                                                  |  |               |  | HSBC              |  |                 | 2022 |  |            |  | (0.8 | )          |  |  |     |  
|                                                  |  |               |  | Société Générale  |  |                 | 2022 |  |            |  | (0.6 | )          |  |  |     |  
|                                                  |  |               |  | Safra             |  |                 | 2022 |  |            |  | (0.3 | )          |  |  |     |  
|                                                  |  |               |  | Morgan Stanley    |  |                 | 2022 |  |            |  | (0.2 | )          |  |  |     |  
|Export financing(vi)                              |  | Exchange rate |  | Santander Totta   |  |                 | 2015 |  |            |  |     |            |  |  | (0.3 | )
|                                                  |  |               |  | Société Générale  |  |                 | 2016 |  |            |  | (0.4 | )          |  |  |     |  
|Options(vii)                                      |  | Interest rate |  | Citibank          |  |                 | 2022 |  |            |  | 0.3  |            |  |  |     |  
|                                                  |  |               |  |                   |  |                 |      |  |            |  |      |            |  |  |      |  
|                                                  |  |               |  |                   |  |                 |      |  |            |  | 2.1  |            |  |  | 2.5  |  
|                                                  |  |               |  |                   |  |                 |      |  |            |  |      |            |  |  |      |  



|(i) | Derivative financial instruments (swaps), which converted the amount of R$ 423.4 million, equivalent to US$ 108.4 for recourse and non-recourse debt, from an average fixed interest rate of 6.05% p.a., into a
floating rate equivalent to LIBOR 6 month + 1.19% p.a.;
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | Derivative financial instruments (swaps) that converted an export modality debt of R$ 672.0 million, equivalent to US$ 172.1, from an average fixed interest rate of 5.92% p.a. to an average rate weighted floating
rate equivalent to 65.17% p.a. of the CDI (Interbank Deposit Certificate);
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) | Derivative financial instruments (swaps), relating to a transaction of R$ 17.5 million, equivalent to US$ 4.5, which converted funding transactions subject to LIBOR 1 month + 2.63% p.a. floating interest rates to a
fixed interest rate of 5.23% p.a.;
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) | Zero-cost collar derivative financial instruments, designated as cash flow hedges, of R$ 1.230.2 million, equivalent to US$ 359.7, through a purchase of a put option with an exercise price of R$ 3.4200 and sales of
CALL with an average weighted exercise price of R$ 6.3445;
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(v) | Derivative financial instruments (interest swaps), designated as cash flow hedge accounting, of R$ 1,915.5 million, equivalent to US $ 490.6, of the Export and Project Development debt lines, subject to a weighted
average fixed interest rate of 4.49% p.a. to a weighted average floating rate equivalent to 34.70% of the CDI (Interbank Deposit Certificate).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vi) | Derivative financial instruments (non-deliverable forwards), amounting to US$ 50.0, equivalent to R$ 195.2 million, relating to dollar to Euro currency exchanges.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vii) | Derivative financial instruments in the form of purchase (CALL) options, the underlying asset for which is the floating LIBOR 6 month interest rate. with exercise values from 2.80% p.a.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-29



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





At December 31, 2015 and December 31, 2014, the fair value of derivative financial
instruments was presented in the Statement of Financial Position as follows:



|                |  |            |       |   |            |  |       |  
|--------------- |  | ---------- | ----- | - | ---------- |  | ----- | -
|                |  | 12.31.2015 |       |   | 12.31.2014 | 
|Assets          |  |            |       |   |            |  |       |  
|Current portion |  |            | 5.2   |   |            |  | 5.2   |  
|Non-current     |  |            | 9.2   |   |            |  | 12.7  |  
|Liabilities     |  |            |       |   |            |  |       |  
|Current portion |  |            | (12.3 | ) |            |  | (15.4 | )
|                |  |            |       |   |            |  |       |  
|Total           |  |            | 2.1   |   |            |  | 2.5   |  
|                |  |            |       |   |            |  |       |  



|9. | Customer and commercial financing
|-- | ---------------------------------

Customer and commercial financing refers to the
partial financing of certain aircraft sales by the Company, mainly dollar-denominated, at average interest rates at December 31, 2015 of 5.06% p.a. (December 31, 2014  5.07% p.a.) , secured on the aircraft covered by the financing and at
present value when applicable. The maturities are monthly, quarterly and half-yearly, classified as follows:



|                    |  |            |      |  |            |  |      | 
|------------------- |  | ---------- | ---- |  | ---------- |  | ---- | 
|                    |  | 12.31.2015 |      |  | 12.31.2014 | 
|Current portion     |  |            | 10.8 |  |            |  | 13.6 | 
|Non-current portion |  |            | 45.4 |  |            |  | 55.0 | 
|                    |  |            |      |  |            |  |      | 
|                    |  |            | 56.2 |  |            |  | 68.6 | 
|                    |  |            |      |  |            |  |      | 

At December 31, 2015, the amount of US$ 0.8 was accrued for losses in accordance with Company policy and
at December 31, 2014, the customer and commercial financing portfolio was current and not past due.

At December 31, 2015, the
long-term customer financing maturities were as follows:



|                |  |  |      | 
|--------------- |  |  | ---- | 
|Year            |  |  |     
|2017            |  |  | 10.8 | 
|2018            |  |  | 8.3  | 
|2019            |  |  | 5.1  | 
|2020            |  |  | 5.4  | 
|Thereafter 2020 |  |  | 15.8 | 
|                |  |  |      | 
|                |  |  | 45.4 | 
|                |  |  |      | 



|10. | Collateralized accounts receivable and recourse and non-recourse debt
|--- | ---------------------------------------------------------------------



|10.1. | Collateralized accounts receivable
|----- | ----------------------------------



|                                          |  |            |       |   |            |  |       | 
|----------------------------------------- |  | ---------- | ----- | - | ---------- |  | ----- | 
|                                          |  | 12.31.2015 |       |   | 12.31.2014 | 
|Estimated residual value of leased assets |  |            | 227.8 |   |            |  | 184.6 | 
|Minimum lease payments receivable         |  |            | 187.8 |   |            |  | 241.0 | 
|Impairment(i)                             |  |            | (7.6  | ) |            |  |      | 
|                                          |  |            |       |   |            |  |       | 
|Investment in sales-type lease            |  |            | 408.0 |   |            |  | 425.6 | 
|                                          |  |            |       |   |            |  |       | 
|Current portion                           |  |            | 91.4  |   |            |  | 9.0   | 
|Non-current portion                       |  |            | 316.6 |   |            |  | 416.6 | 



|(i) | The amount recognized relates to the devaluation of assets linked to structured financing.
|--- | ------------------------------------------------------------------------------------------



F-30



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





At December 31, 2015, the maturities of the amounts classified as non-current assets are
as follows:



|                |  |  |       | 
|--------------- |  |  | ----- | 
|Year            |  |  |      
|2017            |  |  | 17.1  | 
|2018            |  |  | 48.1  | 
|2019            |  |  | 30.5  | 
|2020            |  |  | 44.5  | 
|Thereafter 2020 |  |  | 176.4 | 
|                |  |  |       | 
|                |  |  | 316.6 | 
|                |  |  |       | 



|10.2. | Recourse and non-recourse debt
|----- | ------------------------------



|                    |  |            |       |  |            |  |       | 
|------------------- |  | ---------- | ----- |  | ---------- |  | ----- | 
|                    |  | 12.31.2015 |       |  | 12.31.2014 | 
|Recourse debt       |  |            | 359.3 |  |            |  | 368.7 | 
|Non recourse debt   |  |            | 25.5  |  |            |  | 31.3  | 
|                    |  |            |       |  |            |  |       | 
|                    |  |            | 384.8 |  |            |  | 400.0 | 
|                    |  |            |       |  |            |  |       | 
|Current portion     |  |            | 10.1  |  |            |  | 10.3  | 
|Non-current portion |  |            | 374.7 |  |            |  | 389.7 | 

At December 31, 2015, the maturities of the amounts classified as non-current liabilities were as
follows:



|                |  |  |       | 
|--------------- |  |  | ----- | 
|Year            |  |  |      
|2017            |  |  | 17.1  | 
|2018            |  |  | 12.3  | 
|2019            |  |  | 332.6 | 
|2020            |  |  | 5.9   | 
|Thereafter 2020 |  |  | 6.8   | 
|                |  |  |       | 
|                |  |  | 374.7 | 
|                |  |  |       | 



|11. | Guarantee Deposits
|--- | ------------------



|                               |  |            |       |  |            |  |       | 
|------------------------------ |  | ---------- | ----- |  | ---------- |  | ----- | 
|                               |  | 12.31.2015 |       |  | 12.31.2014 | 
|Sales financing guarantees(i)  |  |            | 320.7 |  |            |  | 321.8 | 
|Sales structure guarantees(ii) |  |            | 245.2 |  |            |  | 251.7 | 
|Others                         |  |            | 11.4  |  |            |  | 8.5   | 
|                               |  |            |       |  |            |  |       | 
|                               |  |            | 577.3 |  |            |  | 582.0 | 
|                               |  |            |       |  |            |  |       | 



|(i) | Financial investments denominated in US dollars, tied to sale financing structures until the completion of such structures. These investments earn interest at the annual LIBOR rate
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(ii) | US dollar amounts deposited in an escrow account as collateral for the financing of certain aircraft sold where Embraer serves as secondary guarantor. If the initial guarantor of the debt (unrelated party) is required
to pay the lender, the initial guarantor will be entitled to the amount in the escrow account in proportion to their guarantee. The amount is returned in the form of cash to the Company at maturity of the financing contracts (from 2016 to 2021) if
the aircraft purchaser does not default on the loan. The interest on the escrow account is added to the principal and recognized by the Company as financial income.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In 2004, seeking to ensure profitability compatible with the term of the guarantee, the Company invested principal of US$ 123.4 in 14-year
structured notes. This yield enhancement was obtained through a credit default swap (CDS), a transaction which provides the right of early redemption of the note in the case of default by the Company. Upon such default, the note may be redeemed by
the holder at its market value or its original face value, which would result in a loss to the Company of all interest accrued to that date.

Default events that can bring forward the due date for the notes include: (a) bankruptcy or insolvency of the Company and (b) failure
to pay or restructuring of Company debts in financing contracts.

In the event of default, the maturity dates of these notes will be brought
forward and the notes will be realized at market value, limited to a minimum of the amounts originally invested. Any amount by which the market value exceeds the amount invested will be paid to the Company in the form of bonds, or loans of that
amount.



F-31



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





At 31 December 2015 the guarantor to whom the guarantees are linked was in compliance.



|12. | Inventories
|--- | -----------



|                                                  |  |            |         |   |            |  |         |  
|------------------------------------------------- |  | ---------- | ------- | - | ---------- |  | ------- | -
|                                                  |  | 12.31.2015 |         |   | 12.31.2014 | 
|Raw materials                                     |  |            | 914.7   |   |            |  | 996.1   |  
|Work-in-process                                   |  |            | 712.1   |   |            |  | 649.0   |  
|Spare parts                                       |  |            | 379.1   |   |            |  | 357.3   |  
|Finished goods(i)                                 |  |            | 159.7   |   |            |  | 157.6   |  
|Advances to suppliers                             |  |            | 80.8    |   |            |  | 92.5    |  
|Used aircraft available for sales(ii)             |  |            | 74.6    |   |            |  | 47.9    |  
|Held by third parties                             |  |            | 72.8    |   |            |  | 135.3   |  
|Inventory in transit                              |  |            | 64.9    |   |            |  | 93.1    |  
|Consumption materials                             |  |            | 42.5    |   |            |  | 40.9    |  
|Provision for adjustment to realizable value(iii) |  |            | (25.4   | ) |            |  | (8.0    | )
|Provision for obsolescence(iv)                    |  |            | (161.2  | ) |            |  | (156.4  | )
|                                                  |  |            |         |   |            |  |         |  
|                                                  |  |            | 2,314.6 |   |            |  | 2,405.3 |  
|                                                  |  |            |         |   |            |  |         |  



|(i) | The following aircraft were held in the finished products inventory:
|--- | --------------------------------------------------------------------



| |  |  | At December 31, 2015: four Legacy 500, two Legacy 650, two Phenom 100, four Phenom 300, one Lineage and one Ipanema; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------



| |  |  | At December 31, 2014: two EMBRAER 190, two Legacy 650, three Phenom 100, three Phenom 300, one Lineage and ten Ipanema.
| | - |  | -----------------------------------------------------------------------------------------------------------------------

Of the total aircraft inventories at December 31, 2015, one Legacy 500 and two Legacy 650 had been delivered by
March 09, 2016.



|(ii) | The following used aircraft were held in inventory as available for sale:
|---- | -------------------------------------------------------------------------



| |  |  | At December 31, 2015: one Legacy 600, two Legacy 650, three Phenom 100 and two Phenom 300; and
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | At December 31, 2014: one Legacy 650, one Phenom 100, three Phenom 300 and one Challenger 604.
| | - |  | ----------------------------------------------------------------------------------------------



|(iii) | Refers to the provision recorded for adjustments to the realizable value of used aircraft, as follows:
|----- | ------------------------------------------------------------------------------------------------------



|                  |  |            |       |   |            |  |       |  
|----------------- |  | ---------- | ----- | - | ---------- |  | ----- | -
|                  |  | 12.31.2015 |       |   | 12.31.2014 | 
|Beginning balance |  |            | (8.0  | ) |            |  | (19.2 | )
|Additions         |  |            | (18.8 | ) |            |  | (8.2  | )
|Disposals         |  |            | 1.4   |   |            |  | 19.4  |  
|                  |  |            |       |   |            |  |       |  
|Ending balance    |  |            | (25.4 | ) |            |  | (8.0  | )
|                  |  |            |       |   |            |  |       |  



|(iv) | A provision was recorded for items without activity for over two years and with no planned use in the production program, as well as to cover expected losses from excess inventories or obsolete work in process, except
for inventories of spare parts, for which the provision is based on technical obsolescence of items without activity for over two years. Changes in the provision for obsolescence were as follows:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                      |  |            |        |   |            |  |        |  
|--------------------- |  | ---------- | ------ | - | ---------- |  | ------ | -
|                      |  | 12.31.2015 |        |   | 12.31.2014 | 
|Beginning balance     |  |            | (156.4 | ) |            |  | (160.8 | )
|Additions             |  |            | (52.9  | ) |            |  | (79.5  | )
|Disposals             |  |            | 43.8   |   |            |  | 83.5   |  
|Reversals             |  |            | 1.5    |   |            |  | 1.3    |  
|Foreign exchange loss |  |            | 2.8    |   |            |  | (0.9   | )
|                      |  |            |        |   |            |  |        |  
|Ending balance        |  |            | (161.2 | ) |            |  | (156.4 | )
|                      |  |            |        |   |            |  |        |  



F-32



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|13. | Other Assets
|--- | ------------



|                                         |  |            |       |  |            |  |       | 
|---------------------------------------- |  | ---------- | ----- |  | ---------- |  | ----- | 
|                                         |  | 12.31.2015 |       |  | 12.31.2014 | 
|Taxes recoverable(i)                     |  |            | 122.1 |  |            |  | 120.2 | 
|Advances for services to be rendered(ii) |  |            | 116.6 |  |            |  | 49.3  | 
|Court-mandated escrow deposits(iii)      |  |            | 49.0  |  |            |  | 76.6  | 
|Credit with suppliers(iv)                |  |            | 41.1  |  |            |  | 31.6  | 
|Prepaid expenses                         |  |            | 30.0  |  |            |  | 24.8  | 
|Advances to employees                    |  |            | 11.3  |  |            |  | 16.8  | 
|Loan with a joint operation(v)           |  |            | 8.2   |  |            |  | 9.0   | 
|Compulsory loan                          |  |            | 1.0   |  |            |  | 1.0   | 
|Collateral pledge                        |  |            | 0.7   |  |            |  | 0.9   | 
|Advances of commissions                  |  |            |      |  |            |  | 4.5   | 
|Indemnity assets                         |  |            |      |  |            |  | 1.9   | 
|Other                                    |  |            | 29.2  |  |            |  | 17.4  | 
|                                         |  |            |       |  |            |  |       | 
|                                         |  |            | 409.2 |  |            |  | 354.0 | 
|                                         |  |            |       |  |            |  |       | 
|Current portion                          |  |            | 289.4 |  |            |  | 167.9 | 
|Non-current portion                      |  |            | 119.8 |  |            |  | 186.1 | 



|(i) | Taxes recoverable
|--- | -----------------



|                                                                               |  |            |       |  |            |  |       | 
|------------------------------------------------------------------------------ |  | ---------- | ----- |  | ---------- |  | ----- | 
|                                                                               |  | 12.31.2015 |       |  | 12.31.2014 | 
|Income tax and contribution for social security on net income withheld         |  |            | 6.8   |  |            |  | 9.4   | 
|ICMS (State Value-added Tax) and IPI (Excise Tax)                              |  |            | 60.1  |  |            |  | 69.2  | 
|PIS (Social Integration Program) and COFINS (Contribution for Social Security) |  |            | 36.3  |  |            |  | 19.3  | 
|Others                                                                         |  |            | 18.9  |  |            |  | 22.3  | 
|                                                                               |  |            |       |  |            |  |       | 
|                                                                               |  |            | 122.1 |  |            |  | 120.2 | 
|                                                                               |  |            |       |  |            |  |       | 
|Current portion                                                                |  |            | 67.5  |  |            |  | 69.4  | 
|Non-current portion                                                            |  |            | 54.6  |  |            |  | 50.8  | 



|(ii) | Refers mainly to advances to the supplier hired by the subsidiary Visiona to launch the geostationary satellite.
|---- | ----------------------------------------------------------------------------------------------------------------



|(iii) | Court-mandated escrow deposits relate to amounts deposited in connection with pending legal actions, substantially federal taxes and contributions where a liability has been established, as described in Note 23.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(iv) | Refers to rework carried out on products supplied by third parties, to be reimbursed in accordance with contractual agreements and credits negotiated with certain suppliers that will be consumed over time.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(v) | Refers to the joint operation of the Embraer Group (2.1.4), in which only assets and liabilities under the Companys responsibility are consolidated. Thus, the amount presented refers to the balance of the
intercompany loan receivable from the other partner of EZ Air Interior Limited.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|14. | Interest in entities
|--- | --------------------



| | (i) | Wholly owned subsidiaries and special purpose entities
| | --- | ------------------------------------------------------

Wholly-owned subsidiaries and
special purpose entities (SPEs) controlled directly or indirectly by the Company and jointly controlled entities are described in the notes 2.1.2 and 2.1.3 and are consolidated into the Embraer group.

There are no contractual or legal restrictions on the Companys access to assets or settlement of liabilities of the wholly owned
subsidiaries of the group.



F-33



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





There are inherent risks to the operations of these entities, the most significant of which
are described below:



| |  |  | Economic Risks: potential losses from fluctuations in market conditions (price of products, exchange rate and interest);
| | - |  | ------------------------------------------------------------------------------------------------------------------------



| |  |  | Operational risk: potential losses resulting from the emergence of new technologies or failure of current processes;
| | - |  | --------------------------------------------------------------------------------------------------------------------



| |  |  | Credit risk: potential losses that might occur if a third party (customer) becomes unable to meet its obligations; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------



| |  |  | Liquidity risk: financial inability to meet financial obligations.
| | - |  | ------------------------------------------------------------------



| | (ii) | Subsidiaries with participation of non-controlling shareholders
| | ---- | ---------------------------------------------------------------

Non-controlling
shareholders have interests in the group entities listed below, however, based on contractual agreements and analysis of the current accounting standards, the Company has control and therefore has the right to consolidate these entities:



|                                              |  |                          |  |                            |      |   |                             |  |      |  
|--------------------------------------------- |  | ------------------------ |  | -------------------------- | ---- | - | --------------------------- |  | ---- | -
|Entity                                        |  | Country                  |  | ParticipationEmbraer Group |      |   | Participationnoncontrolling | 
|Bradar Indústria S.A.                         |  | Brazil                   |  |                            | 95.0 | % |                             |  | 5.0  | %
|OGMAIndústria Aeronática de Portugal S.A.    |  | Portugal                 |  |                            | 65.0 | % |                             |  | 35.0 | %
|Harbin Embraer Aircraft Industry Company Ltd. |  | China                    |  |                            | 51.0 | % |                             |  | 49.0 | %
|Embraer CAE Training Services Ltd.            |  | United Kingdom           |  |                            | 51.0 | % |                             |  | 49.0 | %
|Visiona Tecnologia Espacial S.A.              |  | Brazil                   |  |                            | 51.0 | % |                             |  | 49.0 | %
|Embraer CAE Training Services                 |  | United States of America |  |                            | 51.0 | % |                             |  | 49.0 | %
|Harpia Sistemas S.A.                          |  | Brazil                   |  |                            | 51.0 | % |                             |  | 49.0 | %
|EZ Air Interior Limited                       |  | Ireland                  |  |                            | 50.0 | % |                             |  | 50.0 | %
|Bradar Aerolevantamento Ltda                  |  | Brazil                   |  |                            | 25.0 | % |                             |  | 75.0 | %

Although the Embraer group holds 51.0% of the entities Harbin Embraer Aircraft Industry Company Ltd., Embraer
CAE Training Services Ltd., and Visiona Tecnologia Espacial S.A., the powers enumerated in the contractual agreements show that the Board of Directors is mainly comprised of Embraer representatives and the Embraer Group directs the principal
operating activities of the entity.

An agreement with Bradar Aerolevantamento Ltda. assigns to Embraer S.A. an irrevocable option to
purchase all the shares of the non-controlling interests. This option is exercisable at any time and can be transferred to any person, which determines the control of Bradar Aerolevantamento by the Embraer group, despite holding only 25% of its
capital.

The financial position of the group entities that have non-controlling interests is summarized below:



|                         |  |            |       |  |            |  |       | 
|------------------------ |  | ---------- | ----- |  | ---------- |  | ----- | 
|                         |  | 12.31.2015 |       |  | 12.31.2014 | 
|Cash and cash equivalent |  |            | 87.2  |  |            |  | 106.4 | 
|Current assets           |  |            | 286.7 |  |            |  | 329.0 | 
|Non current assets       |  |            | 134.3 |  |            |  | 126.0 | 
|Current liabilities      |  |            | 141.6 |  |            |  | 163.8 | 
|Non current liabilities  |  |            | 25.7  |  |            |  | 49.4  | 
|Noncontrolling interest  |  |            | 101.9 |  |            |  | 100.0 | 
|Revenue                  |  |            | 292.8 |  |            |  | 323.8 | 
|Net income for the year  |  |            | 23.8  |  |            |  | 25.0  | 

Group subsidiaries with non-controlling interests are subject to the same risks as the wholly owned
subsidiaries.



| | (iii) | Jointly controlled entity
| | ----- | -------------------------

EZ Air Interior Limited is a joint operation between the
Embraer group and Zodiac Aerospace and shares with the other members the joint management of the relevant activities of the entities.



F-34



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The net assets and liabilities of the joint operations are recognized in consolidation in
accordance with the rights and obligations assigned to Embraer.



|                         |  |            |      |   |            |  |      |  
|------------------------ |  | ---------- | ---- | - | ---------- |  | ---- | -
|                         |  | 12.31.2015 |      |   | 12.31.2014 | 
|Cash and cash equivalent |  |            | 1.8  |   |            |  | 1.4  |  
|Current assets           |  |            | 26.2 |   |            |  | 20.0 |  
|Non current assets       |  |            | 5.1  |   |            |  | 4.3  |  
|Current liabilities      |  |            | 18.5 |   |            |  | 11.8 |  
|Non current liabilities  |  |            | 20.4 |   |            |  | 15.9 |  
|Revenue                  |  |            | 31.2 |   |            |  | 18.7 |  
|Net loss for the year    |  |            | (3.8 | ) |            |  | (2.5 | )



| | (iv) | Interests in other companies
| | ---- | ----------------------------

Interest in other companies in the Embraer Group is
represented only by the 25% participation of Embraer Defesa & Segurança Participações S.A. in AEL Sistemas SA. Despite this interest, the Embraer Group does not have significant influence on the management of this
entity, and therefore the investment is measured as a financial instrument in the consolidated financial statements at fair value. At December 31, 2015 and December 31, 2014 the balances were US$ 1.9 and US$ 2.5, respectively.



|15. | Related Parties
|--- | ---------------



|15.1. | Related party transactions
|----- | --------------------------

The table below summarizes balances and transactions with
related parties outside the group and refers mainly to:



| |  |  | assets: (i) accounts receivable for spare parts, aircraft sales and product development, under conditions agreed between the parties, considering the volumes, risks involved and corporate policies (ii) mutual
loans to subsidiaries abroad with interest rates compatible with those used by the Company on acquiring resources in foreign currencies (iii) balances of financial investments; and (iv) bank deposits;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | liabilities: (i) purchase of aircraft components and spare parts, under conditions agreed between the parties, considering the volumes, risks involved and corporate policies (ii) advances received on account
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | of sales contracts, according to contractual agreements; (iii) commission for sale of aircraft and spare parts (iv) financing for research and product development at market rates for this kind of financing
(v) loans and financing; and (vi) mutual loan contracts with the subsidiaries abroad with interest rates equivalent to those used by the Company to acquire similar funding (vii) export financing; and
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | amounts in profit or loss: (i) purchases and sales of aircraft, components and spare parts and development of products for the defense and security market; (ii) financial income from financial investments and
mutual loans; (iii) supplementary pension plan.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|15.1.1 | December 31, 2015
|------ | -----------------



|                                                           |  |         |       |  |             |  |       |                  |  |  |                  |  |  |  |       |  |  |  |       |   |  |  |       |  
|---------------------------------------------------------- |  | ------- | ----- |  | ----------- |  | ----- | ---------------- |  |  | ---------------- |  |  |  | ----- |  |  |  | ----- | - |  |  | ----- | -
|                                                           |  | Current |       |  | Non-current |  |       | FinancialResults |  |  | OperatingResults | 
|                                                           |  | Assets  |       |  | Liabilities |  |       | Assets           |  |  | Liabilities      |  |  | 
|Banco do Brasil S.A.                                       |  |         | 141.3 |  |             |  | 2.5   |                  |  |  | 328.7            |  |  |  | 396.3 |  |  |  | 4.4   |   |  |  |      |  
|Banco Nacional de Desenvolvimento Econômico e SocialBNDES |  |         |      |  |             |  | 154.1 |                  |  |  |                 |  |  |  | 386.1 |  |  |  | (20.3 | ) |  |  |      |  
|Caixa Econômica Federal                                    |  |         | 248.1 |  |             |  | 25.7  |                  |  |  |                 |  |  |  |      |  |  |  | 27.3  |   |  |  |      |  
|Brazilian Air Force                                        |  |         | 350.4 |  |             |  | 143.6 |                  |  |  |                 |  |  |  |      |  |  |  |      |   |  |  | (84.9 | )
|Embraer PrevSociedade de Previdência Complementar         |  |         |      |  |             |  |      |                  |  |  |                 |  |  |  |      |  |  |  |      |   |  |  | (22.6 | )
|Empresa Portuguesa de DefesaEMPORDEF                      |  |         |      |  |             |  |      |                  |  |  |                 |  |  |  | 5.8   |  |  |  |      |   |  |  |      |  
|Brazilian Army                                             |  |         | 4.2   |  |             |  |      |                  |  |  |                 |  |  |  |      |  |  |  |      |   |  |  | (4.6  | )
|Financiadora de Estudo e ProjetosTotalFINEP               |  |         |      |  |             |  | 7.2   |                  |  |  |                 |  |  |  | 54.3  |  |  |  | (2.6  | ) |  |  |      |  
|Telecomunicações Brasileiras S.A.Telebrás                 |  |         | 61.4  |  |             |  | 150.6 |                  |  |  |                 |  |  |  |      |  |  |  |      |   |  |  | 21.5  |  
|                                                           |  |         |       |  |             |  |       |                  |  |  |                  |  |  |  |       |  |  |  |       |   |  |  |       |  
|                                                           |  |         | 805.4 |  |             |  | 483.7 |                  |  |  | 328.7            |  |  |  | 842.5 |  |  |  | 8.8   |   |  |  | (90.6 | )
|                                                           |  |         |       |  |             |  |       |                  |  |  |                  |  |  |  |       |  |  |  |       |   |  |  |       |  



F-35



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|15.1.2 | December 31, 2014
|------ | -----------------



|                                                           |  |         |       |  |             |  |       |                  |  |  |                  |  |  |  |       |  |  |  |       |   |  |  |       |  
|---------------------------------------------------------- |  | ------- | ----- |  | ----------- |  | ----- | ---------------- |  |  | ---------------- |  |  |  | ----- |  |  |  | ----- | - |  |  | ----- | -
|                                                           |  | Current |       |  | Non-current |  |       | FinancialResults |  |  | OperatingResults | 
|                                                           |  | Assets  |       |  | Liabilities |  |       | Assets           |  |  | Liabilities      |  |  | 
|Banco do Brasil S.A.                                       |  |         | 240.7 |  |             |  | 1.4   |                  |  |  | 320.5            |  |  |  | 396.4 |  |  |  | 60.8  |   |  |  |      |  
|Banco Nacional de Desenvolvimento Econômico e SocialBNDES |  |         |      |  |             |  | 50.9  |                  |  |  |                 |  |  |  | 386.8 |  |  |  | (14.9 | ) |  |  |      |  
|Brazilian Air Force                                        |  |         | 277.3 |  |             |  | 198.5 |                  |  |  |                 |  |  |  |      |  |  |  |      |   |  |  | 89.1  |  
|Caixa Econômica Federal                                    |  |         | 247.2 |  |             |  | 0.1   |                  |  |  |                 |  |  |  | 37.6  |  |  |  | 24.7  |   |  |  |      |  
|Embraer PrevSociedade de Previdência Complementar         |  |         |      |  |             |  |      |                  |  |  |                 |  |  |  |      |  |  |  |      |   |  |  | (29.2 | )
|Empresa Portuguesa de DefesaEMPORDEF                      |  |         |      |  |             |  |      |                  |  |  |                 |  |  |  | 6.3   |  |  |  |      |   |  |  |      |  
|Brazilian Army                                             |  |         | 17.4  |  |             |  |      |                  |  |  |                 |  |  |  |      |  |  |  |      |   |  |  | 12.3  |  
|Financiadora de Estudo e ProjetosFINEP                    |  |         |      |  |             |  | 9.5   |                  |  |  |                 |  |  |  | 88.1  |  |  |  | (2.0  | ) |  |  |      |  
|Telecomunicações Brasileiras S.A.Telebrás                 |  |         | 46.5  |  |             |  | 20.3  |                  |  |  |                 |  |  |  | 79.5  |  |  |  |      |   |  |  | 31.9  |  
|                                                           |  |         |       |  |             |  |       |                  |  |  |                  |  |  |  |       |  |  |  |       |   |  |  |       |  
|                                                           |  |         | 829.1 |  |             |  | 280.7 |                  |  |  | 320.5            |  |  |  | 994.7 |  |  |  | 68.6  |   |  |  | 104.1 |  
|                                                           |  |         |       |  |             |  |       |                  |  |  |                  |  |  |  |       |  |  |  |       |   |  |  |       |  



|15.1.3 | December 31, 2013
|------ | -----------------



|                                                           |  |                  |       |   |                  |  |       |  
|---------------------------------------------------------- |  | ---------------- | ----- | - | ---------------- |  | ----- | -
|                                                           |  | FinancialResults |       |   | OperatingResults | 
|Banco do Brasil S.A.                                       |  |                  | 47.1  |   |                  |  |      |  
|Banco Nacional de Desenvolvimento Econômico e SocialBNDES |  |                  | (18.3 | ) |                  |  |      |  
|Brazilian Air Force                                        |  |                  |      |   |                  |  | 130.3 |  
|Caixa Econômica Federal                                    |  |                  | 7.9   |   |                  |  |      |  
|Embraer PrevSociedade de Previdência Complementar         |  |                  |      |   |                  |  | (29.1 | )
|Brazilian Army                                             |  |                  |      |   |                  |  | 5.7   |  
|Financiadora de Estudo e ProjetosFINEP                    |  |                  | (1.7  | ) |                  |  |      |  
|Telecomunicações Brasileiras S.A.Telebrás                 |  |                  |      |   |                  |  | 3.7   |  
|                                                           |  |                  |       |   |                  |  |       |  
|                                                           |  |                  | 35.0  |   |                  |  | 110.6 |  
|                                                           |  |                  |       |   |                  |  |       |  



|15.2. | Brazilian Federal Government
|----- | ----------------------------

Through its direct and indirect interests and on account
of holding a golden share, the Brazilian Federal Government is a significant shareholder. At December 31, 2015, in addition to its golden share, the Brazilian Federal Government held an indirect stake of 5.37% in the
Companys capital through BNDESPAR, a wholly-owned subsidiary of the Banco Nacional do Desenvolvimento Econômico e SocialBNDES (the Brazilian Development Bank, or BNDES), which, in turn, is controlled by the Brazilian
Federal Government. Consequently, transactions between Embraer and the Brazilian Federal Government or its agencies meet the definition of related party transactions.

The Brazilian government plays a key role in the Companys business activities, including as:



| |  |  | a major customer for defense products (through the Brazilian Air Force);
| | - |  | ------------------------------------------------------------------------



| |  |  | a source of research and development financing through technology development institutions such as FINEP and the BNDES;
| | - |  | -----------------------------------------------------------------------------------------------------------------------



| |  |  | an export credit agency (through the BNDES); and
| | - |  | ------------------------------------------------



| |  |  | a source of short-term and long-term financing and a provider of asset management and commercial banking services (through Banco do Brasil).
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------



F-36



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|15.3. | Remuneration of key management personnel:
|----- | -----------------------------------------



|                           |  |            |      |  |            |  |      | 
|-------------------------- |  | ---------- | ---- |  | ---------- |  | ---- | 
|                           |  | 12.31.2015 |      |  | 12.31.2014 | 
|Short-term benefits(i)     |  |            | 10.2 |  |            |  | 15.9 | 
|Share based payment        |  |            | 6.9  |  |            |  | 5.8  | 
|Labor contract termination |  |            | 0.7  |  |            |  | 1.2  | 
|                           |  |            |      |  |            |  |      | 
|Total remuneration         |  |            | 17.8 |  |            |  | 22.6 | 
|                           |  |            |      |  |            |  |      | 



|(i) | Includes salaries and social security contributions.
|--- | ----------------------------------------------------

Key Management includes members of the
statutory Board of Directors and Executive Directors.

No post-retirement or long-term benefits were recognized in 2015 and 2014.



|16. | Property, Plant and Equipment
|--- | -----------------------------

The annual weighted average rates by asset class are
shown below. This information is based on the consolidated depreciation of the assets recognized in the year, compared, after annualization and elimination of any non-typical movement, to the net balance of the assets in the previous year:



|                             |  |                           |      |   |            |  |      |  
|---------------------------- |  | ------------------------- | ---- | - | ---------- |  | ---- | -
|Class of assets              |  | Weighted average rate (%) |     
|                             |  | 12.31.2015                |      |   | 12.31.2014 | 
|Buildings and improvements   |  |                           | 3.8  | % |            |  | 4.0  | %
|Installations                |  |                           | 7.9  | % |            |  | 8.9  | %
|Machinery and equipment      |  |                           | 12.8 | % |            |  | 11.8 | %
|Furniture and fixtures       |  |                           | 12.8 | % |            |  | 13.6 | %
|Vehicles                     |  |                           | 26.2 | % |            |  | 19.6 | %
|Aircraft                     |  |                           | 10.5 | % |            |  | 12.3 | %
|Computers and peripherals    |  |                           | 26.6 | % |            |  | 26.0 | %
|Tooling                      |  |                           | 12.4 | % |            |  | 10.2 | %
|Exchange pool program assets |  |                           | 4.9  | % |            |  | 7.6  | %



F-37



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                            |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|--------------------------------------------- |  | ---- | ---- |  | ------------------------- |  | ------ | ------------- |  |  | --------------------- | - |  | -------------------- | ------ | - | -------- |  | ----- | ------------ |  |  | ----------------------- | - |  | ------- | ------ | - | ----------- |  | ------ | -------------------------- |  |  | -------------------------- | - |  | ----- | ----- | - |  |  | ------ | - |  |  | ------ | - |  |  | -------- | -
|                                              |  | Land |      |  | Buildings andimprovements |  |        | Installations |  |  | Machineryandequipment |   |  | Furnitureandfixtures |        |   | Vehicles |  |       | Aircraft (i) |  |  | Computersandperipherals |   |  | Tooling |        |   | Otherassets |  |        | Exchange poolprogramassets |  |  | Constructioninprogress(ii) |   |  | Total |      
|Cost
At December 31, 2014                     |  |      | 11.0 |  |                           |  | 577.6  |               |  |  | 145.3                 |   |  |                      | 741.3  |   |          |  | 65.7  |              |  |  | 16.0                    |   |  |         | 521.3  |   |             |  | 163.0  |                            |  |  | 420.0                      |   |  |       | 34.4  |   |  |  | 586.3  |   |  |  | 129.9  |   |  |  | 3,411.8  |  
|Additions                                     |  |      |     |  |                           |  | 1.6    |               |  |  |                      |   |  |                      | 65.1   |   |          |  | 2.5   |              |  |  | 0.8                     |   |  |         | 23.6   |   |             |  | 13.0   |                            |  |  | 81.7                       |   |  |       | 9.9   |   |  |  | 71.6   |   |  |  | 71.7   |   |  |  | 341.5    |  
|Disposals                                     |  |      |     |  |                           |  | (0.1   | )             |  |  | (0.1                  | ) |  |                      | (5.5   | ) |          |  | (0.5  | )            |  |  | (0.4                    | ) |  |         | (158.6 | ) |             |  | (2.2   | )                          |  |  | (1.9                       | ) |  |       |      |   |  |  | (13.7  | ) |  |  | (2.2   | ) |  |  | (185.2   | )
|Impairment                                    |  |      |     |  |                           |  |       |               |  |  |                      |   |  |                      |       |   |          |  |      |              |  |  |                        |   |  |         | (11.6  | ) |             |  |       |                            |  |  |                           |   |  |       |      |   |  |  |       |   |  |  |       |   |  |  | (11.6    | )
|Reclassifications*                            |  |      |     |  |                           |  | 40.6   |               |  |  | 7.1                   |   |  |                      | 66.5   |   |          |  | 3.5   |              |  |  | 1.0                     |   |  |         | (50.7  | ) |             |  | (9.0   | )                          |  |  | 33.9                       |   |  |       | (21.3 | ) |  |  | (6.1   | ) |  |  | (122.3 | ) |  |  | (56.8    | )
|Translation adjustments                       |  |      |     |  |                           |  | (3.2   | )             |  |  | (0.5                  | ) |  |                      | (14.1  | ) |          |  | (0.7  | )            |  |  | (0.4                    | ) |  |         | (0.5   | ) |             |  | (1.6   | )                          |  |  | (0.2                       | ) |  |       | (0.2  | ) |  |  | (15.5  | ) |  |  | (1.3   | ) |  |  | (38.2    | )
|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                            |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|At December 31, 2015                          |  |      | 11.0 |  |                           |  | 616.5  |               |  |  | 151.8                 |   |  |                      | 853.3  |   |          |  | 70.5  |              |  |  | 17.0                    |   |  |         | 323.5  |   |             |  | 163.2  |                            |  |  | 533.5                      |   |  |       | 22.8  |   |  |  | 622.6  |   |  |  | 75.8   |   |  |  | 3,461.5  |  
|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                            |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|Accumulated depreciation
At December 31, 2014 |  |      |     |  |                           |  | (165.3 | )             |  |  | (93.9                 | ) |  |                      | (352.0 | ) |          |  | (34.6 | )            |  |  | (11.8                   | ) |  |         | (217.6 | ) |             |  | (119.5 | )                          |  |  | (207.8                     | ) |  |       | (9.4  | ) |  |  | (174.1 | ) |  |  |       |   |  |  | (1,386.0 | )
|Depreciation                                  |  |      |     |  |                           |  | (15.9  | )             |  |  | (4.0                  | ) |  |                      | (49.9  | ) |          |  | (4.0  | )            |  |  | (1.1                    | ) |  |         | (31.9  | ) |             |  | (11.5  | )                          |  |  | (26.2                      | ) |  |       |      |   |  |  | (17.4  | ) |  |  |       |   |  |  | (161.9   | )
|Disposals                                     |  |      |     |  |                           |  |       |               |  |  |                      |   |  |                      | 0.8    |   |          |  | 0.3   |              |  |  |                        |   |  |         | 75.1   |   |             |  | 1.4    |                            |  |  | 0.4                        |   |  |       |      |   |  |  | 5.9    |   |  |  |       |   |  |  | 83.9     |  
|Reclassifications*                            |  |      |     |  |                           |  | (0.5   | )             |  |  | 0.5                   |   |  |                      |       |   |          |  |      |              |  |  |                        |   |  |         | 17.7   |   |             |  |       |                            |  |  |                           |   |  |       |      |   |  |  |       |   |  |  |       |   |  |  | 17.7     |  
|Translation adjustments                       |  |      |     |  |                           |  | 0.9    |               |  |  | 0.2                   |   |  |                      | 11.6   |   |          |  | 0.4   |              |  |  | 0.4                     |   |  |         | 0.3    |   |             |  | 0.9    |                            |  |  | 0.2                        |   |  |       |      |   |  |  | (2.7   | ) |  |  |       |   |  |  | 12.2     |  
|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                            |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|At December 31, 2015                          |  |      |     |  |                           |  | (180.8 | )             |  |  | (97.2                 | ) |  |                      | (389.5 | ) |          |  | (37.9 | )            |  |  | (12.5                   | ) |  |         | (156.4 | ) |             |  | (128.7 | )                          |  |  | (233.4                     | ) |  |       | (9.4  | ) |  |  | (188.3 | ) |  |  |       |   |  |  | (1,434.1 | )
|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                            |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|Net
At December 31, 2014                      |  |      | 11.0 |  |                           |  | 412.3  |               |  |  | 51.4                  |   |  |                      | 389.3  |   |          |  | 31.1  |              |  |  | 4.2                     |   |  |         | 303.7  |   |             |  | 43.5   |                            |  |  | 212.2                      |   |  |       | 25.0  |   |  |  | 412.2  |   |  |  | 129.9  |   |  |  | 2,025.8  |  
|At December 31, 2015                          |  |      | 11.0 |  |                           |  | 435.7  |               |  |  | 54.6                  |   |  |                      | 463.8  |   |          |  | 32.6  |              |  |  | 4.5                     |   |  |         | 167.1  |   |             |  | 34.5   |                            |  |  | 300.1                      |   |  |       | 13.4  |   |  |  | 434.3  |   |  |  | 75.8   |   |  |  | 2,027.4  |  



|                          |  |      |      |   |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|------------------------- |  | ---- | ---- | - | ------------------------- |  | ------ | ------------- |  |  | --------------------- | - |  | -------------------- | ------ | - | -------- |  | ----- | ------------ |  |  | ----------------------- | - |  | ------- | ------ | - | ----------- |  | ------ | -------------------------- |  |  | --------------------------- | - |  | ----- | ----- | - |  |  | ------ | - |  |  | ------ | - |  |  | -------- | -
|                          |  | Land |      |   | Buildings andimprovements |  |        | Installations |  |  | Machineryandequipment |   |  | Furnitureandfixtures |        |   | Vehicles |  |       | Aircraft (i) |  |  | Computersandperipherals |   |  | Tooling |        |   | Otherassets |  |        | Exchange poolprogramassets |  |  | Constructioninprogress (ii) |   |  | Total |      
|Cost
At December 31, 2013 |  |      | 11.1 |   |                           |  | 520.6  |               |  |  | 134.1                 |   |  |                      | 646.6  |   |          |  | 59.8  |              |  |  | 15.9                    |   |  |         | 574.7  |   |             |  | 147.6  |                            |  |  | 387.2                       |   |  |       | 35.8  |   |  |  | 576.9  |   |  |  | 152.4  |   |  |  | 3,262.7  |  
|Additions                 |  |      |     |   |                           |  | 1.7    |               |  |  |                      |   |  |                      | 59.9   |   |          |  | 4.5   |              |  |  | 0.6                     |   |  |         | 19.5   |   |             |  | 12.1   |                            |  |  | 45.6                        |   |  |       | 15.8  |   |  |  | 36.7   |   |  |  | 87.3   |   |  |  | 283.7    |  
|Disposals                 |  |      |     |   |                           |  | (0.1   | )             |  |  |                      |   |  |                      | (4.5   | ) |          |  | (0.4  | )            |  |  | (0.3                    | ) |  |         |       |   |             |  | (0.5   | )                          |  |  | (8.2                        | ) |  |       |      |   |  |  | (11.4  | ) |  |  | (1.2   | ) |  |  | (26.6    | )
|Impairment                |  |      |     |   |                           |  |       |               |  |  |                      |   |  |                      |       |   |          |  |      |              |  |  |                        |   |  |         | (10.8  | ) |             |  |       |                            |  |  |                            |   |  |       |      |   |  |  |       |   |  |  |       |   |  |  | (10.8    | )
|Reclassifications*        |  |      |     |   |                           |  | 61.4   |               |  |  | 11.6                  |   |  |                      | 55.9   |   |          |  | 2.4   |              |  |  | 0.3                     |   |  |         | (65.3  | ) |             |  | 5.0    |                            |  |  | (4.0                        | ) |  |       | (20.0 | ) |  |  | 10.8   |   |  |  | (105.1 | ) |  |  | (47.0    | )
|Translation adjustments   |  |      | (0.1 | ) |                           |  | (6.0   | )             |  |  | (0.4                  | ) |  |                      | (16.6  | ) |          |  | (0.6  | )            |  |  | (0.5                    | ) |  |         | 3.2    |   |             |  | (1.2   | )                          |  |  | (0.6                        | ) |  |       | 2.8   |   |  |  | (26.7  | ) |  |  | (3.5   | ) |  |  | (50.2    | )
|                          |  |      |      |   |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|At December 31, 2014      |  |      | 11.0 |   |                           |  | 577.6  |               |  |  | 145.3                 |   |  |                      | 741.3  |   |          |  | 65.7  |              |  |  | 16.0                    |   |  |         | 521.3  |   |             |  | 163.0  |                            |  |  | 420.0                       |   |  |       | 34.4  |   |  |  | 586.3  |   |  |  | 129.9  |   |  |  | 3,411.8  |  
|                          |  |      |      |   |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|Accumulated depreciation  |  |      |      |   |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|At December 31, 2013      |  |      |     |   |                           |  | (151.3 | )             |  |  | (90.1                 | ) |  |                      | (330.7 | ) |          |  | (31.9 | )            |  |  | (11.6                   | ) |  |         | (191.5 | ) |             |  | (110.8 | )                          |  |  | (188.3                      | ) |  |       | (1.1  | ) |  |  | (162.1 | ) |  |  |       |   |  |  | (1,269.4 | )
|Depreciation              |  |      |     |   |                           |  | (14.8  | )             |  |  | (3.9                  | ) |  |                      | (37.0  | ) |          |  | (3.7  | )            |  |  | (0.8                    | ) |  |         | (47.0  | ) |             |  | (9.5   | )                          |  |  | (20.2                       | ) |  |       |      |   |  |  | (32.0  | ) |  |  |       |   |  |  | (168.9   | )
|Disposals                 |  |      |     |   |                           |  |       |               |  |  |                      |   |  |                      | 4.6    |   |          |  | 0.5   |              |  |  | 0.1                     |   |  |         |       |   |             |  | 0.3    |                            |  |  | 0.6                         |   |  |       |      |   |  |  | 4.8    |   |  |  |       |   |  |  | 10.9     |  
|Reclassifications*        |  |      |     |   |                           |  |       |               |  |  |                      |   |  |                      |       |   |          |  |      |              |  |  |                        |   |  |         | 20.8   |   |             |  |       |                            |  |  |                            |   |  |       | (8.3  | ) |  |  |       |   |  |  |       |   |  |  | 12.5     |  
|Translation adjustments   |  |      |     |   |                           |  | 0.8    |               |  |  | 0.1                   |   |  |                      | 11.1   |   |          |  | 0.5   |              |  |  | 0.5                     |   |  |         | 0.1    |   |             |  | 0.5    |                            |  |  | 0.1                         |   |  |       |      |   |  |  | 15.2   |   |  |  |       |   |  |  | 28.9     |  
|                          |  |      |      |   |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|At December 31, 2014      |  |      |     |   |                           |  | (165.3 | )             |  |  | (93.9                 | ) |  |                      | (352.0 | ) |          |  | (34.6 | )            |  |  | (11.8                   | ) |  |         | (217.6 | ) |             |  | (119.5 | )                          |  |  | (207.8                      | ) |  |       | (9.4  | ) |  |  | (174.1 | ) |  |  |       |   |  |  | (1,386.0 | )
|                          |  |      |      |   |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|Net                       |  |      |      |   |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|At December 31, 2013      |  |      | 11.1 |   |                           |  | 369.3  |               |  |  | 44.0                  |   |  |                      | 315.9  |   |          |  | 27.9  |              |  |  | 4.3                     |   |  |         | 383.2  |   |             |  | 36.8   |                            |  |  | 198.9                       |   |  |       | 34.7  |   |  |  | 414.8  |   |  |  | 152.4  |   |  |  | 1,993.3  |  
|At December 31, 2014      |  |      | 11.0 |   |                           |  | 412.3  |               |  |  | 51.4                  |   |  |                      | 389.3  |   |          |  | 31.1  |              |  |  | 4.2                     |   |  |         | 303.7  |   |             |  | 43.5   |                            |  |  | 212.2                       |   |  |       | 25.0  |   |  |  | 412.2  |   |  |  | 129.9  |   |  |  | 2,025.8  |  



F-38



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|--------------------------------------------- |  | ---- | ---- |  | ------------------------- |  | ------ | ------------- |  |  | --------------------- | - |  | -------------------- | ------ | - | -------- |  | ----- | ------------ |  |  | ----------------------- | - |  | ------- | ------ | - | ----------- |  | ------ | -------------------------- |  |  | --------------------------- | - |  | ----- | ----- | - |  |  | ------ | - |  |  | ------ | - |  |  | -------- | -
|                                              |  | Land |      |  | Buildings andimprovements |  |        | Installations |  |  | Machineryandequipment |   |  | Furnitureandfixtures |        |   | Vehicles |  |       | Aircraft (i) |  |  | Computersandperipherals |   |  | Tooling |        |   | Otherassets |  |        | Exchange poolprogramassets |  |  | Constructioninprogress (ii) |   |  | Total |      
|Cost
At December 31, 2012                     |  |      | 11.1 |  |                           |  | 443.0  |               |  |  | 127.8                 |   |  |                      | 512.1  |   |          |  | 54.4  |              |  |  | 15.6                    |   |  |         | 588.1  |   |             |  | 128.2  |                            |  |  | 327.6                       |   |  |       | 67.3  |   |  |  | 460.3  |   |  |  | 136.6  |   |  |  | 2,872.1  |  
|Additions                                     |  |      |     |  |                           |  | 4.1    |               |  |  |                      |   |  |                      | 79.5   |   |          |  | 3.2   |              |  |  | 0.6                     |   |  |         | 61.5   |   |             |  | 18.8   |                            |  |  | 49.8                        |   |  |       | 11.3  |   |  |  | 85.6   |   |  |  | 127.0  |   |  |  | 441.4    |  
|Additions business combination               |  |      |     |  |                           |  |       |               |  |  |                      |   |  |                      |       |   |          |  |      |              |  |  |                        |   |  |         |       |   |             |  | 0.3    |                            |  |  |                            |   |  |       |      |   |  |  |       |   |  |  |       |   |  |  | 0.3      |  
|Disposals                                     |  |      |     |  |                           |  |       |               |  |  | (0.1                  | ) |  |                      | (5.8   | ) |          |  | (1.0  | )            |  |  | (0.8                    | ) |  |         | (0.5   | ) |             |  | (1.6   | )                          |  |  |                            |   |  |       | (1.1  | ) |  |  | (0.8   | ) |  |  | (2.2   | ) |  |  | (13.9    | )
|Impairment                                    |  |      |     |  |                           |  |       |               |  |  |                      |   |  |                      |       |   |          |  |      |              |  |  |                        |   |  |         | (14.1  | ) |             |  |       |                            |  |  |                            |   |  |       |      |   |  |  |       |   |  |  |       |   |  |  | (14.1    | )
|Reclassifications*                            |  |      |     |  |                           |  | 72.0   |               |  |  | 6.5                   |   |  |                      | 56.6   |   |          |  | 2.3   |              |  |  | 0.3                     |   |  |         | (59.8  | ) |             |  | 0.1    |                            |  |  | 9.6                         |   |  |       | (43.0 | ) |  |  | 42.6   |   |  |  | (114.7 | ) |  |  | (27.5    | )
|Translation adjustments                       |  |      |     |  |                           |  | 1.5    |               |  |  | (0.1                  | ) |  |                      | 4.2    |   |          |  | 0.9   |              |  |  | 0.2                     |   |  |         | (0.5   | ) |             |  | 1.8    |                            |  |  | 0.2                         |   |  |       | 1.3   |   |  |  | (10.8  | ) |  |  | 5.7    |   |  |  | 4.4      |  
|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|At December 31, 2013                          |  |      | 11.1 |  |                           |  | 520.6  |               |  |  | 134.1                 |   |  |                      | 646.6  |   |          |  | 59.8  |              |  |  | 15.9                    |   |  |         | 574.7  |   |             |  | 147.6  |                            |  |  | 387.2                       |   |  |       | 35.8  |   |  |  | 576.9  |   |  |  | 152.4  |   |  |  | 3,262.7  |  
|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|Accumulated depreciation
At December 31, 2012 |  |      |     |  |                           |  | (137.9 | )             |  |  | (87.3                 | ) |  |                      | (309.8 | ) |          |  | (29.1 | )            |  |  | (11.3                   | ) |  |         | (155.3 | ) |             |  | (104.9 | )                          |  |  | (169.9                      | ) |  |       | (1.3  | ) |  |  | (126.9 | ) |  |  |       |   |  |  | (1,133.7 | )
|Depreciation                                  |  |      |     |  |                           |  | (13.1  | )             |  |  | (3.0                  | ) |  |                      | (23.5  | ) |          |  | (3.4  | )            |  |  | (0.9                    | ) |  |         | (50.6  | ) |             |  | (7.4   | )                          |  |  | (18.0                       | ) |  |       |      |   |  |  | (25.9  | ) |  |  |       |   |  |  | (145.8   | )
|Disposals                                     |  |      |     |  |                           |  |       |               |  |  | 0.1                   |   |  |                      | 4.8    |   |          |  | 0.9   |              |  |  | 0.8                     |   |  |         | 0.5    |   |             |  | 1.4    |                            |  |  |                            |   |  |       |      |   |  |  | 0.7    |   |  |  |       |   |  |  | 9.2      |  
|Reclassifications*                            |  |      |     |  |                           |  |       |               |  |  |                      |   |  |                      | (0.3   | ) |          |  |      |              |  |  |                        |   |  |         | 13.8   |   |             |  | 0.5    |                            |  |  | (0.3                        | ) |  |       | 0.2   |   |  |  |       |   |  |  |       |   |  |  | 13.9     |  
|Translation adjustments                       |  |      |     |  |                           |  | (0.3   | )             |  |  | 0.1                   |   |  |                      | (1.9   | ) |          |  | (0.3  | )            |  |  | (0.2                    | ) |  |         | 0.1    |   |             |  | (0.4   | )                          |  |  | (0.1                        | ) |  |       |      |   |  |  | (10.0  | ) |  |  |       |   |  |  | (13.0    | )
|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|At December 31, 2013                          |  |      |     |  |                           |  | (151.3 | )             |  |  | (90.1                 | ) |  |                      | (330.7 | ) |          |  | (31.9 | )            |  |  | (11.6                   | ) |  |         | (191.5 | ) |             |  | (110.8 | )                          |  |  | (188.3                      | ) |  |       | (1.1  | ) |  |  | (162.1 | ) |  |  |       |   |  |  | (1,269.4 | )
|                                              |  |      |      |  |                           |  |        |               |  |  |                       |   |  |                      |        |   |          |  |       |              |  |  |                         |   |  |         |        |   |             |  |        |                            |  |  |                             |   |  |       |       |   |  |  |        |   |  |  |        |   |  |  |          |  
|Net
At December 31, 2012                      |  |      | 11.1 |  |                           |  | 305.1  |               |  |  | 40.5                  |   |  |                      | 202.3  |   |          |  | 25.3  |              |  |  | 4.3                     |   |  |         | 432.8  |   |             |  | 23.3   |                            |  |  | 157.7                       |   |  |       | 66.0  |   |  |  | 333.4  |   |  |  | 136.6  |   |  |  | 1,738.4  |  
|At December 31, 2013                          |  |      | 11.1 |  |                           |  | 369.3  |               |  |  | 44.0                  |   |  |                      | 315.9  |   |          |  | 27.9  |              |  |  | 4.3                     |   |  |         | 383.2  |   |             |  | 36.8   |                            |  |  | 198.9                       |   |  |       | 34.7  |   |  |  | 414.8  |   |  |  | 152.4  |   |  |  | 1,993.3  |  



|* | Non-cash transactions. In the column Aircraft this amount relates to aircraft owned by Embraers subsidiary ECC Leasing. The balances relating to the aircraft were transferred between property plant and
equipment and inventory.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(i) | The aircraft are used for testing, shuttle and operating leases and are adjusted to the fair value, when applicable. The following aircraft are held:
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | December 31, 2015: 28 ERJ 135, nine ERJ 145, six EMBRAER 170, one EMBRAER 175, one EMBRAER 190, one EMBRAER 120, one 690B, and; and
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------



| |  |  | December 31, 2014: 41 ERJ 135, 17 ERJ 145, seven EMBRAER 170, one EMBRAER 175, two EMBRAER 190, one EMBRAER 120, one Legacy 600, one 690B, and one EMB-810C.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------



|(ii) | Refers mainly to construction projects to expand installed capacity for the manufacture of new products.
|---- | --------------------------------------------------------------------------------------------------------



F-39



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





Financial charges of US$ 0.7 on funds invested in fixed were capitalized in the year ended
December 31, 2015 (at December 31, 2014, there were no financial charges on funds invested in fixed assets).

At
December 31, 2015, property, plant and equipment of US$ 113.7 were pledged as collateral for loans, financing and labor contingencies. (December 31, 2014, US$ 189.4).



|17. | Intangible Assets
|--- | -----------------

Internally developed intangible assets relate to expenditure incurred
in developing new aircraft, including support services, production labor, materials and direct labor allocated to the construction of aircraft prototypes or significant components, and also the use of advanced technologies to make the aircraft
lighter, quieter, more comfortable and energy-efficient and to reduce emissions, in addition to speeding up design and manufacture, while optimizing the use of resources.



|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |       |   |  |  |      |   |  |  |          |  
|------------------------------------------- |  | -------------------- | ------- | - | ------------------------- |  | ------- | ------------------- |  |  | ----- | - |  | ----------- | ---- |  | -------- |  | ---- | -------- |  |  | ------ | - |  | ----- | ----- | - |  |  | ---- | - |  |  | -------- | -
|                                            |  | Internally developed |         |   | Acquired from third party | 
|                                            |  | Commercial           |         |   | Executive                 |  |         | Defense andSecurity |  |  | Other |   |  | Development |      |  | Software |  |      | Goodwill |  |  | Other  |   |  | Total |      
|Intangible cost                             |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |       |   |  |  |      |   |  |  |          |  
|At December 31, 2014                        |  |                      | 1,113.6 |   |                           |  | 1,162.8 |                     |  |  | 25.6  |   |  |             | 24.5 |  |          |  | 12.1 |          |  |  | 235.9  |   |  |       | 38.3  |   |  |  | 22.6 |   |  |  | 2,635.4  |  
|Additions                                   |  |                      | 302.5   |   |                           |  | 86.1    |                     |  |  |      |   |  |             | 11.6 |  |          |  |     |          |  |  | 27.4   |   |  |       |      |   |  |  |     |   |  |  | 427.6    |  
|Contributions from suppliers                |  |                      | (140.0  | ) |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  |     |          |  |  |       |   |  |       |      |   |  |  |     |   |  |  | (140.0   | )
|Translation adjustments                     |  |                      |        |   |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  | (2.0 | )        |  |  |       |   |  |       | (21.9 | ) |  |  | 1.1  |   |  |  | (22.8    | )
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |       |   |  |  |      |   |  |  |          |  
|At December 31, 2015                        |  |                      | 1,276.1 |   |                           |  | 1,248.9 |                     |  |  | 25.6  |   |  |             | 36.1 |  |          |  | 10.1 |          |  |  | 263.3  |   |  |       | 16.4  |   |  |  | 23.7 |   |  |  | 2,900.2  |  
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |       |   |  |  |      |   |  |  |          |  
|Acumulated amortization                     |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |       |   |  |  |      |   |  |  |          |  
|At December 31, 2014                        |  |                      | (871.6  | ) |                           |  | (326.4  | )                   |  |  | (25.6 | ) |  |             |     |  |          |  | (5.4 | )        |  |  | (143.0 | ) |  |       |      |   |  |  | (2.5 | ) |  |  | (1,374.5 | )
|Amortization                                |  |                      | (71.0   | ) |                           |  | (65.5   | )                   |  |  |      |   |  |             |     |  |          |  |     |          |  |  | (17.9  | ) |  |       |      |   |  |  | (0.5 | ) |  |  | (154.9   | )
|Amortization of contribution from suppliers |  |                      | 19.0    |   |                           |  | 14.8    |                     |  |  |      |   |  |             |     |  |          |  |     |          |  |  |       |   |  |       |      |   |  |  |     |   |  |  | 33.8     |  
|Translation adjustments                     |  |                      |        |   |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  | 0.8  |          |  |  |       |   |  |       |      |   |  |  |     |   |  |  | 0.8      |  
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |       |   |  |  |      |   |  |  |          |  
|At December 31, 2015                        |  |                      | (923.6  | ) |                           |  | (377.1  | )                   |  |  | (25.6 | ) |  |             |     |  |          |  | (4.6 | )        |  |  | (160.9 | ) |  |       |      |   |  |  | (3.0 | ) |  |  | (1,494.8 | )
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |       |   |  |  |      |   |  |  |          |  
|Intangible, net                             |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |       |   |  |  |      |   |  |  |          |  
|At December 31, 2014                        |  |                      | 242.0   |   |                           |  | 836.4   |                     |  |  |      |   |  |             | 24.5 |  |          |  | 6.7  |          |  |  | 92.9   |   |  |       | 38.3  |   |  |  | 20.1 |   |  |  | 1,260.9  |  
|At December 31, 2015                        |  |                      | 352.5   |   |                           |  | 871.8   |                     |  |  |      |   |  |             | 36.1 |  |          |  | 5.5  |          |  |  | 102.4  |   |  |       | 16.4  |   |  |  | 20.7 |   |  |  | 1,405.4  |  



|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |  |  |  |      |   |  |  |          |  
|------------------------------------------- |  | -------------------- | ------- | - | ------------------------- |  | ------- | ------------------- |  |  | ----- | - |  | ----------- | ---- |  | -------- |  | ---- | -------- |  |  | ------ | - |  | ----- | ---- |  |  |  | ---- | - |  |  | -------- | -
|                                            |  | Internally developed |         |   | Acquired from third party | 
|                                            |  | Commercial           |         |   | Executive                 |  |         | Defense andSecurity |  |  | Other |   |  | Development |      |  | Software |  |      | Goodwill |  |  | Other  |   |  | Total |     
|Intangible cost                             |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |  |  |  |      |   |  |  |          |  
|At December 31, 2013                        |  |                      | 1,043.8 |   |                           |  | 1,027.9 |                     |  |  | 25.6  |   |  |             | 11.8 |  |          |  | 15.0 |          |  |  | 206.2  |   |  |       | 38.3 |  |  |  | 22.8 |   |  |  | 2,391.4  |  
|Additions                                   |  |                      | 203.2   |   |                           |  | 169.8   |                     |  |  |      |   |  |             | 12.7 |  |          |  |     |          |  |  | 29.7   |   |  |       |     |  |  |  |     |   |  |  | 415.4    |  
|Contributions from suppliers                |  |                      | (133.4  | ) |                           |  | (52.0   | )                   |  |  |      |   |  |             |     |  |          |  |     |          |  |  |       |   |  |       |     |  |  |  |     |   |  |  | (185.4   | )
|Reclassifications                           |  |                      |        |   |                           |  | 17.1    |                     |  |  |      |   |  |             |     |  |          |  |     |          |  |  |       |   |  |       |     |  |  |  |     |   |  |  | 17.1     |  
|Translation adjustments                     |  |                      |        |   |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  | (2.9 | )        |  |  |       |   |  |       |     |  |  |  | (0.2 | ) |  |  | (3.1     | )
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |  |  |  |      |   |  |  |          |  
|At December 31, 2014                        |  |                      | 1,113.6 |   |                           |  | 1,162.8 |                     |  |  | 25.6  |   |  |             | 24.5 |  |          |  | 12.1 |          |  |  | 235.9  |   |  |       | 38.3 |  |  |  | 22.6 |   |  |  | 2,635.4  |  
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |  |  |  |      |   |  |  |          |  
|Acumulated amortization                     |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |  |  |  |      |   |  |  |          |  
|At December 31, 2013                        |  |                      | (825.5  | ) |                           |  | (296.4  | )                   |  |  | (24.8 | ) |  |             |      |  |          |  | (5.4 | )        |  |  | (128.1 | ) |  |       |     |  |  |  | (2.1 | ) |  |  | (1,282.3 | )
|Amortization                                |  |                      | (65.7   | ) |                           |  | (35.6   | )                   |  |  | (0.8  | ) |  |             |     |  |          |  |     |          |  |  | (14.9  | ) |  |       |     |  |  |  | (0.4 | ) |  |  | (117.4   | )
|Amortization of contribution from suppliers |  |                      | 19.6    |   |                           |  | 5.6     |                     |  |  |      |   |  |             |     |  |          |  |      |          |  |  |        |   |  |       |     |  |  |  |      |   |  |  | 25.2     |  
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |  |  |  |      |   |  |  |          |  
|At December 31, 2014                        |  |                      | (871.6  | ) |                           |  | (326.4  | )                   |  |  | (25.6 | ) |  |             |     |  |          |  | (5.4 | )        |  |  | (143.0 | ) |  |       |     |  |  |  | (2.5 | ) |  |  | (1,374.5 | )
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |  |  |  |      |   |  |  |          |  
|Intangible, net                             |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |  |  |  |      |   |  |  |          |  
|At December 31, 2013                        |  |                      | 218.3   |   |                           |  | 731.5   |                     |  |  | 0.8   |   |  |             | 11.8 |  |          |  | 9.6  |          |  |  | 78.1   |   |  |       | 38.3 |  |  |  | 20.7 |   |  |  | 1,109.1  |  
|At December 31, 2014                        |  |                      | 242.0   |   |                           |  | 836.4   |                     |  |  |      |   |  |             | 24.5 |  |          |  | 6.7  |          |  |  | 92.9   |   |  |       | 38.3 |  |  |  | 20.1 |   |  |  | 1,260.9  |  



F-40



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |   |  |  |      |   |  |  |          |  
|------------------------------------------- |  | -------------------- | ------- | - | ------------------------- |  | ------- | ------------------- |  |  | ----- | - |  | ----------- | ---- |  | -------- |  | ---- | -------- |  |  | ------ | - |  | ----- | ---- | - |  |  | ---- | - |  |  | -------- | -
|                                            |  | Internally developed |         |   | Acquired from third party | 
|                                            |  | Commercial           |         |   | Executive                 |  |         | Defense andSecurity |  |  | Other |   |  | Development |      |  | Software |  |      | Goodwill |  |  | Other  |   |  | Total |     
|Intangible cost                             |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |   |  |  |      |   |  |  |          |  
|At December 31, 2012                        |  |                      | 996.8   |   |                           |  | 845.8   |                     |  |  | 25.6  |   |  |             |     |  |          |  | 14.7 |          |  |  | 175.0  |   |  |       | 39.4 |   |  |  | 21.8 |   |  |  | 2,119.1  |  
|Additions                                   |  |                      | 98.8    |   |                           |  | 171.8   |                     |  |  |      |   |  |             | 11.8 |  |          |  |     |          |  |  | 34.3   |   |  |       | (1.1 | ) |  |  | 1.0  |   |  |  | 316.6    |  
|Additions business combination             |  |                      |        |   |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  | 2.9  |          |  |  |       |   |  |       |     |   |  |  |     |   |  |  | 2.9      |  
|Contributions from suppliers                |  |                      | (51.8   | ) |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  |     |          |  |  |       |   |  |       |     |   |  |  |     |   |  |  | (51.8    | )
|Disposals                                   |  |                      |        |   |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  |     |          |  |  | (3.1   | ) |  |       |     |   |  |  |     |   |  |  | (3.1     | )
|Reclassifications                           |  |                      |        |   |                           |  | 10.3    |                     |  |  |      |   |  |             |     |  |          |  |     |          |  |  |       |   |  |       |     |   |  |  |     |   |  |  | 10.3     |  
|Translation adjustments                     |  |                      |        |   |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  | (2.6 | )        |  |  |       |   |  |       |     |   |  |  |     |   |  |  | (2.6     | )
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |   |  |  |      |   |  |  |          |  
|At December 31, 2013                        |  |                      | 1,043.8 |   |                           |  | 1,027.9 |                     |  |  | 25.6  |   |  |             | 11.8 |  |          |  | 15.0 |          |  |  | 206.2  |   |  |       | 38.3 |   |  |  | 22.8 |   |  |  | 2,391.4  |  
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |   |  |  |      |   |  |  |          |  
|Acumulated amortization                     |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |  
|At December 31, 2012                        |  |                      | (785.1  | ) |                           |  | (235.4  | )                   |  |  | (24.0 | ) |  |             |     |  |          |  | (2.4 | )        |  |  | (112.7 | ) |  |       |     |   |  |  | (0.7 | ) |  |  | (1,160.3 | )
|Amortization                                |  |                      | (59.9   | ) |                           |  | (67.4   | )                   |  |  | (0.8  | ) |  |             |     |  |          |  |     |          |  |  | (15.3  | ) |  |       |     |   |  |  | (1.4 | ) |  |  | (144.8   | )
|Additions business combination             |  |                      |        |   |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  | (2.9 | )        |  |  | (0.1   | ) |  |       |     |   |  |  |     |   |  |  | (3.0     | )
|Amortization of contribution from suppliers |  |                      | 19.5    |   |                           |  | 6.6     |                     |  |  |      |   |  |             |     |  |          |  |     |          |  |  |       |   |  |       |     |   |  |  |     |   |  |  | 26.1     |  
|Reclassifications                           |  |                      |        |   |                           |  | (0.2    | )                   |  |  |      |   |  |             |     |  |          |  |     |          |  |  |       |   |  |       |     |   |  |  |     |   |  |  | (0.2     | )
|Translation adjustments                     |  |                      |        |   |                           |  |        |                     |  |  |      |   |  |             |     |  |          |  | (0.1 | )        |  |  |       |   |  |       |     |   |  |  |     |   |  |  | (0.1     | )
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |   |  |  |      |   |  |  |          |  
|At December 31, 2013                        |  |                      | (825.5  | ) |                           |  | (296.4  | )                   |  |  | (24.8 | ) |  |             |     |  |          |  | (5.4 | )        |  |  | (128.1 | ) |  |       |     |   |  |  | (2.1 | ) |  |  | (1,282.3 | )
|                                            |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |   |  |  |      |   |  |  |          |  
|Intangible, net                             |  |                      |         |   |                           |  |         |                     |  |  |       |   |  |             |      |  |          |  |      |          |  |  |        |   |  |       |      |   |  |  |      |   |  |  |          |  
|At December 31, 2012                        |  |                      | 211.7   |   |                           |  | 610.4   |                     |  |  | 1.6   |   |  |             |     |  |          |  | 12.3 |          |  |  | 62.3   |   |  |       | 39.4 |   |  |  | 21.1 |   |  |  | 958.8    |  
|At December 31, 2013                        |  |                      | 218.3   |   |                           |  | 731.5   |                     |  |  | 0.8   |   |  |             | 11.8 |  |          |  | 9.6  |          |  |  | 78.1   |   |  |       | 38.3 |   |  |  | 20.7 |   |  |  | 1,109.1  |  

In the year ended December 31, 2015, the Company capitalized US$ 11.4 of the interest incurred on
financing of intangible assets. (December 31, 2014 US$ 9.1).



|18. | Impairment test
|--- | ---------------

The Company assessed its cash-generating units (CGUs) at
December 31, 2015, without identifying any indication of impairment, except for certain aircraft in property, plant and equipment. Impairment calculated for aircraft is recognized in the Commercial Aviation or Executive Aviation operating
segments, according to their characteristics. CGUs holding intangible assets were also tested for impairment at December 31, 2015, irrespective of the absence of indications of losses. No indication of impairment was identified.

In this calculation, a discount rate (expectation of return for investors) was applied on the cash-flows presented in the Companys
Strategic Plan.

Goodwill based on future profitability related to the acquisition of subsidiaries was tested on a pro rata basis together
with other fixed and intangible assets allocated to the CGUs in which these subsidiaries operate. No impairment adjustment was identified.



|19. | Trade accounts payable
|--- | ----------------------



|                   |  |            |         |  |            |  |       | 
|------------------ |  | ---------- | ------- |  | ---------- |  | ----- | 
|                   |  | 12.31.2015 |         |  | 12.31.2014 | 
|Foreign suppliers  |  |            | 661.5   |  |            |  | 622.9 | 
|Risk partners(i)   |  |            | 321.6   |  |            |  | 282.1 | 
|Domestic suppliers |  |            | 51.8    |  |            |  | 75.6  | 
|                   |  |            |         |  |            |  |       | 
|                   |  |            | 1,034.9 |  |            |  | 980.6 | 
|                   |  |            |         |  |            |  |       | 



|(i) | The Companys risk-sharing suppliers/partners develop and produce significant aircraft components, including engines, hydraulic components, avionics, wings, tail sections, interior components and fuselage parts.
Certain contracts between the Company and these risk-sharing suppliers/partners are long-term and include deferral of payments for components and systems for a negotiated term after delivery. Once the risk-sharing suppliers/partners have been
selected and the aircraft development and production program has commenced, changing suppliers is more challenging. For example, in the case of engines, the aircraft is specially designed to accommodate a given component, which cannot be easily
replaced by another supplier without incurring delays and significant additional expense. This dependence makes the Company vulnerable to the performance, quality and financial position of its risk-sharing suppliers/partners.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-41



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|20. | Loans and Financing
|--- | -------------------



|                              |  |          |  |                                     |  |                                     |  |          |          |  |            |  |         |            |  |  |         | 
|----------------------------- |  | -------- |  | ----------------------------------- |  | ----------------------------------- |  | -------- | -------- |  | ---------- |  | ------- | ---------- |  |  | ------- | 
|                              |  | Currency |  | Contractual interest rate%         |  | Effective interest rate%           |  | Maturity |          |  | 12.31.2015 |  |         | 12.31.2014 | 
|Other currencies:             |  |          |  | 1.25% to 6.38%                      |  | 1.25% to 7.42%                      |  |          | 2025     |  |            |  | 2,413.7 |            |  |  | 1,402.4 | 
|Working capital               |  | US$      |  | Libor 6M + 1.35%                    |  | Libor 6M + 1.35%                    |  |          | 2019     |  |            |  | 18.0    |            |  |  | 18.0    | 
|                              |  |          |  | Libor 3M + 2.25%                    |  | Libor 3M + 2.25%                    |  |          | 2026     |  |            |  | 206.4   |            |  |  | 101.9   | 
|                              |  | Euro     |  | 1.00% a 3.37%                       |  | 1.00% a 3.37%                       |  |          | 2020     |  |            |  | 22.2    |            |  |  | 82.4    | 
|Project development           |  | US$      |  | 6.08%                               |  | 6.08%                               |  |          | 2015     |  |            |  |        |            |  |  | 0.2     | 
|Property, plant and equipment |  | US$      |  | 2.13%Libor 1M + 2.44%               |  | 2.13%Libor 1M + 2.44%               |  |          | 20302035 |  |            |  | 62.5    |            |  |  | 64.4    | 
|Finance leasing               |  | US$      |  | Libor 6M + 3.40%                    |  | Libor 6M + 3.40%                    |  |          | 2017     |  |            |  | 0.1     |            |  |  | 0.1     | 
|                              |  |          |  |                                     |  |                                     |  |          |          |  |            |  |         |            |  |  |         | 
|In local currency:            |  |          |  |                                     |  |                                     |  |          |          |  |            |  | 2,722.9 |            |  |  | 1,669.4 | 
|                              |  |          |  |                                     |  |                                     |  |          |          |  |            |  |         |            |  |  |         | 
|Export Financing              |  | R$       |  | 5.50% to 8.00%                      |  | 5.5% to 8.00%                       |  |          | 2017     |  |            |  | 76.3    |            |  |  | 113.2   | 
|Project development           |  | R$       |  | 3.50 % to 5.50%TLPJ + 1.92% a 5.00% |  | 3.50 % to 5.50%TLPJ + 1.92% a 5.00% |  |          | 20232022 |  |            |  | 459.4   |            |  |  | 420.6   | 
|Credit Note for Exportation   |  | R$       |  | 5.50% to 11.00%                     |  | 5.5% to 11.00%                      |  |          | 2019     |  |            |  | 271.2   |            |  |  | 304.8   | 
|Working capital               |  | R$       |  | 15.39% to 17.00%                    |  | 15.39% to 17.00%                    |  |          | 2015     |  |            |  | 0.7     |            |  |  |        | 
|Finance leasing               |  | R$       |  | CDI + 1.20%                         |  | CDI + 1.20%                         |  |          | 2016     |  |            |  |        |            |  |  | 0.1     | 
|                              |  |          |  |                                     |  |                                     |  |          |          |  |            |  |         |            |  |  |         | 
|                              |  |          |  |                                     |  |                                     |  |          |          |  |            |  | 807.6   |            |  |  | 838.7   | 
|                              |  |          |  |                                     |  |                                     |  |          |          |  |            |  |         |            |  |  |         | 
|Total                         |  |          |  |                                     |  |                                     |  |          |          |  |            |  | 3,530.5 |            |  |  | 2,508.1 | 
|                              |  |          |  |                                     |  |                                     |  |          |          |  |            |  |         |            |  |  |         | 
|Current portion               |  |          |  |                                     |  |                                     |  |          |          |  |            |  | 219.4   |            |  |  | 89.7    | 
|Non-current portion           |  |          |  |                                     |  |                                     |  |          |          |  |            |  | 3,311.1 |            |  |  | 2,418.4 | 

In October 2006, the Companys wholly-owned finance subsidiary Embraer Overseas Limited, which only
performs financial operations, issued US$ 400.0 in Guaranteed Notes at 6.375% p.a. due on January 24, 2017 in an offering subsequently registered with the SEC. In October 2009, Embraer Overseas Limited issued US$ 500.0 in guaranteed notes at
6.375% p.a., due on January 15, 2020. Both operations are fully and unconditionally guaranteed by the Parent Company.

Between August
and September 2013, through its subsidiary Embraer Overseas Limited, Embraer S.A. made an offer to exchange existing bonds maturing in 2017 and 2020 for New Notes maturing in 2023. In the case of bonds maturing in 2017 the exchange offer
resulted in US$ 146.4 of the aggregate principal of existing notes and US$ 337.2 of the aggregate principal of the 2020 Notes, representing approximately 54.95% of the Notes exchanged. The total of the exchange offer, taking into account the effects
of the exchange price on the negotiations and the total New Notes issued closed at approximately US$ 540.5 in principal at a rate of 5.696%, maturing on September 16, 2023.

The separate financial statements of Embraer Oversas Limited are not provided, because the issuer is a fully-owned finance subsidiary of the
Company and the Company fully and unconditionally guarantees the securities. There are no significant restrictions on the ability of the Parent Company to obtain funds from its subsidiaries by dividend or loan.

On June 15, 2012, Embraer S.A. raised funds by issuing guaranteed notes, maturing on June 15, 2022, through an overseas offer of US$
500 at a rate of 5.15% a year.

In February 2013, Embraer S.A. contracted loans of R$ 712.0 million, equivalent to US$ 229.5, in the
form of Export Credit Notes for the purpose of investing in export activities and the production of goods for export, at a fixed rate of 5.50% p.a. At December 31, 2015 the amount still outstanding was R$ 437 million, equivalent to US$
111.9 million.

On March and April, 2013, Embraer S.A. contracted a loan of R$ 200.0 million, equivalent to US$ 51.2, at a fixed rate
of 5.50% p.a., through the BNDES Investment Support  BNDES PSI  Pre-Shipment Subprogram (Programa BNDES de Sustentação do Investimento  BNDES PSI Subprograma Exportação de
Pré-embarque)funding line, for investment in export production activities.

In August 2013, Embraer S.A. contracted financing
totaling approximately R$ 303.9 million, equivalent to US$ 77.8, at a rate fixed 3.50% per annum, from the Financier of Studies and Projects (Financiadora de Estudos e Projetos  FINEP) for use in the research and new product
development program. At December 31, 2015 the Company had received the amount of R$ 190.3 million equivalent to US$ 48.7 million.



F-42



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





In December 2013, Embraer S.A. signed a contract with the BNDES for use in developments
projects in the amount of approximately R$ 1.4 billion, equivalent to US$ 361.5, received in full by December 31, 2015.

In June
2015, the Companys wholly-owned finance subsidiary Embraer Netherlands Finance B.V, which only performs financial operations, issued US$ 1 billion in Guaranteed Notes at 5.05% p.a., due on June 15, 2025, in an offering subsequently
registered with the SEC. This operation is fully and unconditionally guaranteed by the Parent Company.

The separate financial
statements of Embraer Netherlands Finance B.V are not provided, because the issuer is a fully-owned finance subsidiary of the Company and the Company fully and unconditionally guarantees the securities. There are no significant restrictions on the
ability of the Parent Company to obtain funds from its subsidiaries by dividend or loan.

In December 2015, Embraer SA contracted loans of
R$ 685 million, equivalent to US$ 175.4, at a weighted average rate of 10.96% a year, in the form of Export Credit Notes in order to invest in export and production of goods for export.

At December 31, 2015, the maturities of the long-term financing agreements are as follows:



|           |  |  |         | 
|---------- |  |  | ------- | 
|Year       |  |  |        
|2017       |  |  | 424.3   | 
|2018       |  |  | 244.7   | 
|2019       |  |  | 100.8   | 
|2020       |  |  | 228.5   | 
|After 2020 |  |  | 2,312.8 | 
|           |  |  |         | 
|           |  |  | 3,311.1 | 
|           |  |  |         | 



|20.1. | Currency analysis
|----- | -----------------

Total debt is denominated in the following currencies:



|               |  |            |         |  |            |  |         | 
|-------------- |  | ---------- | ------- |  | ---------- |  | ------- | 
|               |  | 12.31.2015 |         |  | 12.31.2014 | 
|Loans          |  |            |         |  |            | 
|US dollar      |  |            | 2,700.7 |  |            |  | 1,587.0 | 
|Brazilian Real |  |            | 807.6   |  |            |  | 838.7   | 
|Euro           |  |            | 22.2    |  |            |  | 82.4    | 
|               |  |            |         |  |            |  |         | 
|               |  |            | 3,530.5 |  |            |  | 2,508.1 | 
|               |  |            |         |  |            |  |         | 



|20.2. | Interest and guarantees
|----- | -----------------------

At December 31, 2015, loans denominated in US dollars (75%
of the total) are mainly subject to fixed interest rates. The weighted average rate was 5.26% p.a. (5.56% p.a. at December 31, 2014). Additionally, as at December 31, 2015, the Company had loans denominated in Euros (2% of the total),
subject to fixed interest at an average annual weighted rate of 5.68% p.a. (6.221% p.a. at December 31, 2014).

At December 31,
2015, loans denominated in Reais (23% of the total) are subject to fixed interest rates or interest based on the Brazilian Long-term Interest Rate (TJLP). The weighted average rate at December 31, 2015 was 6.43% p.a. (6.01%
p.a. at December 31, 2014).

At December 31, 2015, loans demoninated in euros (1% of the total) were predominantly subject to
fixed charges and weighted average rate of 1.79% pa (2.91% pa at December 31, 2014).

Real estate, machinery, equipment, commercial
pledges and bank guarantees totaling US$ 471.3 as at December 31, 2015 (US$ 461.9 at December 31, 2014) were provided as collateral for loans.



F-43



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|20.3. | Restrictive clauses
|----- | -------------------

The long-term financing agreements are subject to restrictive
clauses, consistent with normal market practices, which establish control over the degree of leverage through the ratio of total consolidated indebtedness/EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, as defined), as well
as limits for debt service cover based on EBITDA/net financial expense. Agreements also include customary restrictions on the creation of new encumbrances on assets, significant changes in control of the Company, sale of assets and payment of
dividends in excess of the minimum mandatory dividend in the event of default on financing, and transactions with affiliated companies.

As at December 31, 2015, the Company was in compliance with all the restrictive clauses.



|21. | Other payables
|--- | --------------



|                                    |  |            |       |  |            |  |       | 
|----------------------------------- |  | ---------- | ----- |  | ---------- |  | ----- | 
|                                    |  | 12.31.2015 |       |  | 12.31.2014 | 
|Provisions related to payroll(i)    |  |            | 97.2  |  |            |  | 128.1 | 
|Other accounts payable(ii)          |  |            | 94.5  |  |            |  | 73.2  | 
|Contractual obligations(iii)        |  |            | 71.3  |  |            |  | 122.7 | 
|Commissions                         |  |            | 21.9  |  |            |  | 23.7  | 
|Provision employee profit sharing   |  |            | 17.8  |  |            |  | 32.0  | 
|Long-term incentive(iv)             |  |            | 9.8   |  |            |  | 4.0   | 
|Insurance                           |  |            | 8.1   |  |            |  | 6.0   | 
|Accrued materials(v)                |  |            | 4.2   |  |            |  | 5.9   | 
|Brazilian air force                 |  |            | 2.6   |  |            |  | 2.2   | 
|Non controlling interest option(vi) |  |            | 2.2   |  |            |  | 2.4   | 
|Security deposit                    |  |            | 0.9   |  |            |  | 11.6  | 
|Financial credit                    |  |            | 0.2   |  |            |  | 0.3   | 
|                                    |  |            |       |  |            |  |       | 
|                                    |  |            | 330.7 |  |            |  | 412.1 | 
|                                    |  |            |       |  |            |  |       | 
|Current portion                     |  |            | 291.1 |  |            |  | 324.5 | 
|Non-current portion                 |  |            | 39.6  |  |            |  | 87.6  | 



|(i) | Refers to the accrued vacation and related charges recorded in the consolidated financial statements;
|--- | -----------------------------------------------------------------------------------------------------

|(ii) | Primarily expenses incurred at the reporting date, with payments occurring within one month;
|---- | --------------------------------------------------------------------------------------------

|(iii) | Mainly amounts recorded to cover maintenance costs of aircraft under operating lease agreements and contractual commitments assumed on the sale of new aircraft or closing of financial residual value guarantees;
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) | Refers to the Long Term Incentive (LTI) granted to Company employees in the form of virtual shares, as described in Note 30Share-based compensation;
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------

|(v) | Accessories or components to be installed in aircraft already delivered, in accordance with the contracts; and
|--- | --------------------------------------------------------------------------------------------------------------

|(vi) | Refers to options of non-controlling interests (for which the right to exercise has not yet occurred) which may require some or all of their interest in the investees to be purchased by the Company.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|22. | Advances from customers
|--- | -----------------------



|                            |  |            |       |  |            |  |       | 
|--------------------------- |  | ---------- | ----- |  | ---------- |  | ----- | 
|                            |  | 12.31.2015 |       |  | 12.31.2014 | 
|Denominated in U.S. dollars |  |            | 704.2 |  |            |  | 596.8 | 
|Denominated in Reais        |  |            | 203.7 |  |            |  | 231.8 | 
|                            |  |            |       |  |            |  |       | 
|                            |  |            | 907.9 |  |            |  | 828.6 | 
|                            |  |            |       |  |            |  |       | 
|Current portion             |  |            | 743.8 |  |            |  | 652.5 | 
|Non-current portion         |  |            | 164.1 |  |            |  | 176.1 | 

The balance of advances from customers related to construction contracts using the POC method is US$ 361.2, at
December 31, 2015 (US$ 203.6 at December 31, 2014).



F-44



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|23. | Taxes and payroll charges payable
|--- | ---------------------------------

The Company is challenging, through both
administrative and judicial proceedings, the constitutionality of the tax calculation base and its expansion, as well as the rate increase on certain taxes, social contributions and charges, with the aim of ensuring its right to withhold payment or
recover amounts paid in previous years. By means of such administrative and judicial proceedings, the Company has obtained injunctions and similar measures to suspend collection or offset payment of taxes and social contributions and charges.
Provisions have been recorded for taxes not collected, as a result of preliminary legal decisions, and updated based on changes in the SELIC interest rate, pending a final and definitive decision.



|                                                    |  |            |       |  |            |  |       | 
|--------------------------------------------------- |  | ---------- | ----- |  | ---------- |  | ----- | 
|                                                    |  | 12.31.2015 |       |  | 12.31.2014 | 
|INSS (social security contribution)(i)              |  |            | 92.9  |  |            |  | 123.8 | 
|Taxes refinancing program(ii)                       |  |            | 21.9  |  |            |  | 95.5  | 
|IRRF (income tax withholding income tax)            |  |            | 14.9  |  |            |  | 20.4  | 
|PIS and COFINS(iii)                                 |  |            | 7.3   |  |            |  | 9.8   | 
|FGTS (government employee severance indemnity fund) |  |            | 5.2   |  |            |  | 6.8   | 
|IPI (manufacturing tax)                             |  |            | 1.3   |  |            |  | 2.6   | 
|Others                                              |  |            | 7.9   |  |            |  | 10.8  | 
|                                                    |  |            |       |  |            |  |       | 
|                                                    |  |            | 151.4 |  |            |  | 269.7 | 
|                                                    |  |            |       |  |            |  |       | 
|Current portion                                     |  |            | 70.8  |  |            |  | 125.6 | 
|Non-current portion                                 |  |            | 80.6  |  |            |  | 144.1 | 



|(i) | This refers to the increase in the work-related accident insurance (SAT) rate. The Company is challenging the legality of the levy and absence of technical criteria for such rates since 1995, the liability
for which is suspended following a lower court decision in a civil suit. The Company received a favorable decision in November 2013 and is awaiting judgment of the appeal filed by the Treasury. The amount involved is US$ 42.6 at December 31,
2015 (US$ 72.4 at December 31, 2014).
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Company has also filed an application for advance relief, claiming waiver of
the standards that govern the Accident Prevention Factor (FAP).

The advance relief was granted in March 2011, suspending the liability for
the tax credit, and revoked in September 2012. The Company made the court-mandated escrow deposit, maintaining the suspension of the FAP tax credit liability for 2010 and 2011 of US$ 8.6. Suspension of the FAP tax credit liability was granted in
September 2014and the Company is awaiting judgment of the appeal filed by the Treasury.

With regard to 2013 and 2012, the amounts involved
are still suspended due to filing of an administrative appeal disputing the indices used in the Accident Prevention Factor. The amount involved at December 31, 2015, is US$ 27.3, for which a provision has been recorded (US$ 29.3 at
December 31, 2014).

Additionally, in February, 2009, the Company filed a suit contesting the payment of social security on paid notice
of dismissal and other indemnity payments. As a result of a lower court decision, the amounts relating to paid notice and certain indemnity payments were excluded from the calculation base for the employers social security contribution and a
provision was recorded, pending a final successful outcome of the court case. In October 2015 the Company obtained partial success in the dispute in relation to the employers portion of the Social Security on the paid notice, and therefore
reduced the amount of the provision in relation to US$ 2.1. Currently the remaining amount involved in the dispute in respect of the notice established in the collective agreement is US$ 7.1 at December 31, 2015 (US$ 11.9 at December 31,
2014).



|(ii) | The Company included in taxes refinancing program debts previously under dispute in the judicial and administrative spheres in relation to recognition of the constitutional immunity of social contribution tax on exports
as well as the tax basis and tax rates on certain and specific remittances abroad.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The total amount of the debt, net of the
escrow deposit, was US$ 101.8 in December 2013, paid in 30 monthly installments, in relation to the consolidation in November 2009, plus the Selic rate for the period. The remaining amount at December 31, 2015 was US$ 20.9 (US$ 93.6 at
December 31, 2014).



|(iii) | This refers to contributions to the PIS/PASEP fund (Social Integration Program / Public Servant Fund). The dispute, involving the calculation base for the non-cumulative system, was included under the terms of Law
no 11941/09, and the suit was withdrawn. The Company continues to contest criteria for application of the benefits of refinancing in the ambit of the legal dispute.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The other suit disputes the inclusion of the foreign exchange variation in the PASEP calculation base and an appeal decision is awaited. The
amount involved in the suit is US$ 2.7 (US$ 3.8 at December 31, 2014).

With respect to the litigation issues mentioned above, the
remaining provisions will be kept until there is a final outcome and no further appeals can be made.



F-45



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|24. | Income Taxes
|--- | ------------

As the tax basis for the majority of the Companys assets and
liabilities is maintained in Reais and the accounting basis is measured in US dollars (functional currency), the fluctuations in the exchange rate significantly impacted the tax basis and, in turn, the deferred income tax expense (benefit).

Based on the expectation of future taxable income, the Company recorded deferred tax assets based on tax losses carryforwards.

Credits relating to temporary differences on non-deductible provisions, represented by labor contingencies, provisions and disputed taxes will
be realized as such proceedings are concluded.



|24.1. | Deferred taxes
|----- | --------------

The components of deferred tax assets and liabilities are as follows:



|                                                                                          |  |            |        |   |            |  |        |            |  |  |        |  
|----------------------------------------------------------------------------------------- |  | ---------- | ------ | - | ---------- |  | ------ | ---------- |  |  | ------ | -
|                                                                                          |  | 12.31.2015 |        |   | 12.31.2014 |  |        | 12.31.2013 | 
|Temporarily non-deductible provisions                                                     |  |            | (2.8   | ) |            |  | (64.9  | )          |  |  | (69.8  | )
|Tax loss carryforwards                                                                    |  |            | 20.5   |   |            |  | 17.9   |            |  |  | 22.3   |  
|Difference between tax basis (Real) and functional currency measurement basis (US dollar) |  |            | (407.1 | ) |            |  | (204.7 | )          |  |  | (123.7 | )
|Gains not realized from sales of Parent Company to subsidiairies                          |  |            | 19.9   |   |            |  | 28.0   |            |  |  | 19.4   |  
|Effect of differences by fixed asset                                                      |  |            | (36.1  | ) |            |  | (31.0  | )          |  |  | (29.7  | )
|Differences between basis: account x tax                                                  |  |            | (7.2   | ) |            |  | (7.6   | )          |  |  | (19.2  | )
|                                                                                          |  |            |        |   |            |  |        |            |  |  |        |  
|Deferred tax assets (liabilities), net                                                    |  |            | (412.8 | ) |            |  | (262.3 | )          |  |  | (200.7 | )
|                                                                                          |  |            |        |   |            |  |        |            |  |  |        |  
|Total deferred tax asset                                                                  |  |            | 4.5    |   |            |  | 8.1    |            |  |  | 8.5    |  
|Total deferred tax liability                                                              |  |            | (417.3 | ) |            |  | (270.4 | )          |  |  | (209.2 | )



F-46



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The changes in deferred income tax that affected profit and loss were as follows:



|                                                                                          |  |                            |        |   |                          |  |       |       |  |  |        |  
|----------------------------------------------------------------------------------------- |  | -------------------------- | ------ | - | ------------------------ |  | ----- | ----- |  |  | ------ | -
|                                                                                          |  | From thestatementof income |        |   | Othercomprehensiveincome |  |       | Total | 
|At December 31, 2012                                                                      |  |                            | (22.3  | ) |                          |  | 8.7   |       |  |  | (13.6  | )
|                                                                                          |  |                            |        |   |                          |  |       |       |  |  |        |  
|Temporarily non-deductible provisions                                                     |  |                            | (64.8  | ) |                          |  | 4.8   |       |  |  | (60.0  | )
|Tax loss carryforwards                                                                    |  |                            | (4.7   | ) |                          |  |      |       |  |  | (4.7   | )
|Difference between tax basis (Real) and functional currency measurement basis (US dollar) |  |                            | (91.1  | ) |                          |  |      |       |  |  | (91.1  | )
|Provision Gain not realized at sales from Controlling company to subsidiairies            |  |                            | 2.9    |   |                          |  |      |       |  |  | 2.9    |  
|Effect of differences by fixed asset                                                      |  |                            | (7.2   | ) |                          |  |      |       |  |  | (7.2   | )
|Differences between basis: account x tax                                                  |  |                            | (27.8  | ) |                          |  | 0.8   |       |  |  | (27.0  | )
|                                                                                          |  |                            |        |   |                          |  |       |       |  |  |        |  
|At December 31, 2013                                                                      |  |                            | (215.0 | ) |                          |  | 14.3  |       |  |  | (200.7 | )
|                                                                                          |  |                            |        |   |                          |  |       |       |  |  |        |  
|Temporarily non-deductible provisions                                                     |  |                            | (3.4   | ) |                          |  |      |       |  |  | (3.4   | )
|Tax loss carryforwards                                                                    |  |                            | (1.7   | ) |                          |  |      |       |  |  | (1.7   | )
|Difference between tax basis (Real) and functional currency measurement basis (US dollar) |  |                            | (81.0  | ) |                          |  |      |       |  |  | (81.0  | )
|Gains not realized from sales of Parent Company to subsidiairies                          |  |                            | 10.9   |   |                          |  |      |       |  |  | 10.9   |  
|Effect of differences by fixed asset                                                      |  |                            | (4.8   | ) |                          |  |      |       |  |  | (4.8   | )
|Differences between basis: account x tax                                                  |  |                            | 1.3    |   |                          |  | 17.1  |       |  |  | 18.4   |  
|                                                                                          |  |                            |        |   |                          |  |       |       |  |  |        |  
|At December 31, 2014                                                                      |  |                            | (293.7 | ) |                          |  | 31.4  |       |  |  | (262.3 | )
|                                                                                          |  |                            |        |   |                          |  |       |       |  |  |        |  
|Temporarily non-deductible provisions                                                     |  |                            | 62.1   |   |                          |  |      |       |  |  | 62.1   |  
|Tax loss carryforwards                                                                    |  |                            | 2.6    |   |                          |  |      |       |  |  | 2.6    |  
|Difference between tax basis (Real) and functional currency measurement basis (US dollar) |  |                            | (202.4 | ) |                          |  |      |       |  |  | (202.4 | )
|Gains not realized from sales of Parent Company to subsidiairies                          |  |                            | (8.1   | ) |                          |  |      |       |  |  | (8.1   | )
|Effect of differences by fixed asset                                                      |  |                            | (5.0   | ) |                          |  |      |       |  |  | (5.0   | )
|Differences between basis: account x tax                                                  |  |                            | 14.6   |   |                          |  | (14.3 | )     |  |  | 0.3    |  
|                                                                                          |  |                            |        |   |                          |  |       |       |  |  |        |  
|At December 31, 2015                                                                      |  |                            | (429.9 | ) |                          |  | 17.1  |       |  |  | (412.8 | )
|                                                                                          |  |                            |        |   |                          |  |       |       |  |  |        |  



|24.2. | Reconciliation of income tax expense
|----- | ------------------------------------



|                                                                                          |  |            |        |   |            |  |        |            |  |  |        |  
|----------------------------------------------------------------------------------------- |  | ---------- | ------ | - | ---------- |  | ------ | ---------- |  |  | ------ | -
|                                                                                          |  | 12.31.2015 |        |   | 12.31.2014 |  |        | 12.31.2013 | 
|Profit before taxation                                                                    |  |            | 336.2  |   |            |  | 503.9  |            |  |  | 602.4  |  
|                                                                                          |  |            |        |   |            |  |        |            |  |  |        |  
|Income tax and social contribution expense at the nominal Brazilian enacted tax rate34%  |  |            | (114.3 | ) |            |  | (171.3 | )          |  |  | (204.8 | )
|                                                                                          |  |            |        |   |            |  |        |            |  |  |        |  
|Tax on profits of overseas subsidiaries                                                   |  |            | (5.7   | ) |            |  | (6.3   | )          |  |  | (8.5   | )
|Difference between tax basis (Real) and functional currency measurement basis (US dollar) |  |            | (202.4 | ) |            |  | (81.0  | )          |  |  | (91.1  | )
|Research and development tax incentives                                                   |  |            | 44.9   |   |            |  | 78.3   |            |  |  | 80.2   |  
|Interest on own capital                                                                   |  |            | 12.5   |   |            |  | 28.1   |            |  |  | 23.6   |  
|Fiscal credits (recognized and non recognized) and tax rate                               |  |            | (1.5   | ) |            |  | 4.6    |            |  |  | (63.6  | )
|Other difference between IFRS and fiscal basis                                            |  |            | 5.1    |   |            |  | (1.3   | )          |  |  | 6.7    |  
|Other                                                                                     |  |            | 6.0    |   |            |  | (7.3   | )          |  |  | 1.1    |  
|                                                                                          |  |            |        |   |            |  |        |            |  |  |        |  
|                                                                                          |  |            | (141.1 | ) |            |  | 15.1   |            |  |  | (51.6  | )
|                                                                                          |  |            |        |   |            |  |        |            |  |  |        |  
|Income tax and social contribution income (expense) benefit as reported                   |  |            | (255.4 | ) |            |  | (156.2 | )          |  |  | (256.4 | )
|                                                                                          |  |            |        |   |            |  |        |            |  |  |        |  
|Current income tax and social contribution (expense) benefit as reported                  |  |            | (119.2 | ) |            |  | (77.1  | )          |  |  | (63.8  | )
|Deferred income tax and social contribution income (expense) benefit as reported          |  |            | (136.2 | ) |            |  | (79.1  | )          |  |  | (192.6 | )

The effective tax rate for the year ended December 31, 2015 was 76.0% as compared to 31.0% at
December 31, 2014.

The average effective rate of current income tax and social contribution for the year ended December 31, 2015
was 35.5% as compared to 15.3% at December 31, 2014.



|25. | Financial Guarantees and Residual Value Guarantees
|--- | --------------------------------------------------



|                                      |  |            |       |  |            |  |       | 
|------------------------------------- |  | ---------- | ----- |  | ---------- |  | ----- | 
|                                      |  | 12.31.2015 |       |  | 12.31.2014 | 
|Financial guarantee of residual value |  |            | 94.7  |  |            |  | 94.4  | 
|Accounts payable (i)                  |  |            | 57.4  |  |            |  | 81.8  | 
|Financial guarantee                   |  |            | 40.1  |  |            |  | 61.8  | 
|Additional provision (i)              |  |            | 100.9 |  |            |  |      | 
|                                      |  |            |       |  |            |  |       | 
|                                      |  |            | 293.1 |  |            |  | 238.0 | 
|                                      |  |            |       |  |            |  |       | 
|Current portion                       |  |            | 161.5 |  |            |  | 29.5  | 
|Non-current portion                   |  |            | 131.6 |  |            |  | 208.5 | 



F-47



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The activity on the financial guarantees and residual guarantees is shown below:



|                        |  |                    |       |   |                                   |  |      |                    |  |  |                        |   |  |       |        |   |  |  |        |  
|----------------------- |  | ------------------ | ----- | - | --------------------------------- |  | ---- | ------------------ |  |  | ---------------------- | - |  | ----- | ------ | - |  |  | ------ | -
|                        |  | Financialguarantee |       |   | Financialguaranteeofresidualvalue |  |      | Accountspayable(i) |  |  | Additionalprovision(i) |   |  | Total |       
|At December 31, 2012    |  |                    | 54.5  |   |                                   |  | 59.5 |                    |  |  | 258.5                  |   |  |       | 211.9  |   |  |  | 584.4  |  
|                        |  |                    |       |   |                                   |  |      |                    |  |  |                        |   |  |       |        |   |  |  |        |  
|Additions               |  |                    | 30.6  |   |                                   |  | 0.8  |                    |  |  | 3.8                    |   |  |       | 6.7    |   |  |  | 41.9   |  
|Disposals               |  |                    |      |   |                                   |  |     |                    |  |  | (121.4                 | ) |  |       | (66.4  | ) |  |  | (187.8 | )
|Reversals               |  |                    |      |   |                                   |  |     |                    |  |  | (2.7                   | ) |  |       | (170.5 | ) |  |  | (173.2 | )
|Market value            |  |                    |      |   |                                   |  | 21.3 |                    |  |  |                       |   |  |       | 18.3   |   |  |  | 39.6   |  
|Guarantee amortization  |  |                    | (11.4 | ) |                                   |  |     |                    |  |  |                       |   |  |       |       |   |  |  | (11.4  | )
|                        |  |                    |       |   |                                   |  |      |                    |  |  |                        |   |  |       |        |   |  |  |        |  
|At December 31, 2013    |  |                    | 73.7  |   |                                   |  | 81.6 |                    |  |  | 138.2                  |   |  |       |       |   |  |  | 293.5  |  
|                        |  |                    |       |   |                                   |  |      |                    |  |  |                        |   |  |       |        |   |  |  |        |  
|Additions               |  |                    | 1.2   |   |                                   |  |     |                    |  |  | 4.0                    |   |  |       |       |   |  |  | 5.2    |  
|Disposals               |  |                    |      |   |                                   |  | (6.3 | )                  |  |  | (60.4                  | ) |  |       |       |   |  |  | (66.7  | )
|Market value            |  |                    |      |   |                                   |  | 19.1 |                    |  |  |                       |   |  |       |       |   |  |  | 19.1   |  
|Guarantee amortization  |  |                    | (13.1 | ) |                                   |  |     |                    |  |  |                       |   |  |       |       |   |  |  | (13.1  | )
|                        |  |                    |       |   |                                   |  |      |                    |  |  |                        |   |  |       |        |   |  |  |        |  
|At December 31, 2014    |  |                    | 61.8  |   |                                   |  | 94.4 |                    |  |  | 81.8                   |   |  |       |       |   |  |  | 238.0  |  
|                        |  |                    |       |   |                                   |  |      |                    |  |  |                        |   |  |       |        |   |  |  |        |  
|Additions               |  |                    |      |   |                                   |  |     |                    |  |  | 3.0                    |   |  |       | 114.0  |   |  |  | 117.0  |  
|Disposals               |  |                    |      |   |                                   |  |     |                    |  |  | (40.5                  | ) |  |       |       |   |  |  | (40.5  | )
|Re-measurement (ii)     |  |                    | (9.0  | ) |                                   |  |     |                    |  |  |                       |   |  |       |       |   |  |  | (9.0   | )
|Reclassifications (iii) |  |                    |      |   |                                   |  |     |                    |  |  | 13.1                   |   |  |       | (13.1  | ) |  |  |       |  
|Market value            |  |                    |      |   |                                   |  | 0.3  |                    |  |  |                       |   |  |       |       |   |  |  | 0.3    |  
|Guarantee amortization  |  |                    | (12.7 | ) |                                   |  |     |                    |  |  |                       |   |  |       |       |   |  |  | (12.7  | )
|                        |  |                    |       |   |                                   |  |      |                    |  |  |                        |   |  |       |        |   |  |  |        |  
|At December 31, 2015    |  |                    | 40.1  |   |                                   |  | 94.7 |                    |  |  | 57.4                   |   |  |       | 100.9  |   |  |  | 293.1  |  
|                        |  |                    |       |   |                                   |  |      |                    |  |  |                        |   |  |       |        |   |  |  |        |  



| | (i) | Accounts payable and additional provision:
| | --- | ------------------------------------------



| |  |  | American AirlinesRefers to liabilities assumed as a result of the acquisition of certain assets of American Airlines in 2012. At December 31, 2015 the obligation assumed in accounts payable was US$ 57.4
(December 31, 2014  US$ 81.0)
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | On February 25, 2016, the Companys customer Republic Airways Holding, flilled for bankruptcy protection (Chapter 11) with the United States of America Court. As a result of this filling, the Company
recognized a provision US$ 100.9, to cover losses related to obligations with financial guarantees offered to the main financing agent to the ERJ 140/145 aircraft acquired by this customer. Management recognized the provision considering its best
estimates based on the information contained on the reorganization filling document.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (ii) | The Company granted FLDG guarantees for certain ERJ 145 aircraft in prior year sales drives. Until the third quarter of 2015, such guarantees were measured based on the maximum exposure model calculated on the principal
to be paid to the lender by the customer for each aircraft. A new model, the Guarantee Pool, was set up for such guarantees in the fourth quarter of 2015, to ensure the best negotiation for both parties. In the new model, the maximum
exposure was fixed at an amount agreed by the customer, the Company and the lender, without changing the coverage time of guarantees granted previously and including new sales in the guarantee in line with deliveries. Taking into account that the
maximum exposure in 2015 was fixed at a lower amount than previously recognized, the balance registered in the liability for the FLDG guarantee was adjusted in accordance with the new model.
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | Refers to the transfer of financial guarantees held between provisions and accounts payable due to formalization by the parties of the exercise of such guarantees.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------





F-48



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|26. | Provisions and contingent liabilities
|--- | -------------------------------------



|26.1. | Provisions
|----- | ----------



|                                           |  |            |       |  |            |  |       | 
|------------------------------------------ |  | ---------- | ----- |  | ---------- |  | ----- | 
|                                           |  | 12.31.2015 |       |  | 12.31.2014 | 
|Product warranties (i)                     |  |            | 95.7  |  |            |  | 87.3  | 
|Provisions for labor, taxes and civil (ii) |  |            | 49.9  |  |            |  | 80.4  | 
|Post retirement benefits                   |  |            | 26.8  |  |            |  | 41.2  | 
|Taxes                                      |  |            | 16.9  |  |            |  | 25.3  | 
|Environmental provision (iii)              |  |            | 1.7   |  |            |  | 4.3   | 
|Other                                      |  |            | 13.6  |  |            |  | 10.0  | 
|                                           |  |            |       |  |            |  |       | 
|                                           |  |            | 204.6 |  |            |  | 248.5 | 
|                                           |  |            |       |  |            |  |       | 
|Current portion                            |  |            | 95.7  |  |            |  | 95.4  | 
|Non-current portion                        |  |            | 108.9 |  |            |  | 153.1 | 



|(i) | Recorded to cover product-related expenditure, including warranties and contractual obligations to implement improvements to aircraft delivered in order to meet performance targets.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | Provisions for labor, tax or civil contingencies, as shown in the table below Note 26.1.1.
|---- | ------------------------------------------------------------------------------------------

|(iii) | The Company maintains allowances for spending on soil research and potential environmental recovery services.
|----- | -------------------------------------------------------------------------------------------------------------



|26.1.1 | Labor, tax and civil provisions
|------ | -------------------------------



|                                   |  |            |      |  |            |  |      | 
|---------------------------------- |  | ---------- | ---- |  | ---------- |  | ---- | 
|                                   |  | 12.31.2015 |      |  | 12.31.2014 | 
|Tax related                        |  |            |      |  |            |  |      | 
|PIS and COFINS(i)                  |  |            | 16.3 |  |            |  | 12.7 | 
|Social security contributions (ii) |  |            | 6.8  |  |            |  | 9.9  | 
|ICMS(iii)                          |  |            | 3.3  |  |            |  | 4.6  | 
|FUNDAF (iv)                        |  |            | 3.1  |  |            |  | 4.6  | 
|Import taxes (v)                   |  |            | 1.5  |  |            |  | 2.2  | 
|Others                             |  |            | 0.4  |  |            |  | 0.7  | 
|                                   |  |            | 31.4 |  |            |  | 34.7 | 
|Labor related                      |  |            |      |  |            |  |      | 
|Plurimas 461/1379 (vi)             |  |            | 7.0  |  |            |  | 9.8  | 
|Reintegration (vii)                |  |            | 2.3  |  |            |  | 2.7  | 
|Indemnity (viii)                   |  |            | 1.7  |  |            |  | 3.4  | 
|Third parties                      |  |            | 0.3  |  |            |  | 0.3  | 
|Others                             |  |            | 5.3  |  |            |  | 27.4 | 
|                                   |  |            | 16.6 |  |            |  | 43.6 | 
|Civil related                      |  |            |      |  |            |  |      | 
|Indemnity (ix)                     |  |            | 1.9  |  |            |  | 2.1  | 
|                                   |  |            | 1.9  |  |            |  | 2.1  | 
|                                   |  |            |      |  |            |  |      | 
|                                   |  |            | 49.9 |  |            |  | 80.4 | 
|                                   |  |            |      |  |            |  |      | 
|Current portion                    |  |            | 20.0 |  |            |  | 17.5 | 
|Non-current portion                |  |            | 29.9 |  |            |  | 62.9 | 



|(i) | The Company calculated credits on the contributions related to PIS and COFINS in certain operations and is awaiting the conclusion of the administrative suit to assess the appropriate legal measures.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | The Company was notified by the authorities for failing to withhold social security contributions from service providers. These lawsuits are at the 2nd court level. The Company was also notified to pay work-related
environmental risk allowances. This dispute resulted in a favorable decision for the Company, which now awaits a pronouncement by the Treasury.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) | The Company is contesting in the administrative sphere the Deficiency and Penalty Notice (Auto de Infração e Imposição de MultaAIIM) issued by the State of São Paulo for
the collection of ICMS (Imposto sobre Circulação de Mercadorias e Serviços) on telecommunication services, on the understanding that the services to which the AIIM refers are not subject to ICMS. There has been no
decision to date in respect of the Companys motion to deny.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iv) | In March 2005, a Deficiency and Penalty Notice (AIIM) was filed against the Company, demanding payment of the Treasury Management Modernization Fund (Fundo de Modernização da Administração
FazendáriaFUNDAF) contribution. As a result of this notification, the Company filed a tax debt annulment lawsuit at the 1st court level, which was partially judged in the Companys favor. The lawsuit is at the 2nd court level,
for consideration of the Appeal and the Voluntary Appeal.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(v) | Two Deficiency and Penalty Notices issued against the Company involving the drawback regime. The first was filed due to alleged violation of the deadline for compliance with the drawback and the second discusses
possible differences in relation to the tax classification of certain products. Both disputes are running in the courts and are respectively, in the Special Appeal analysis phase in the Federal Supreme CourtSTJ (Supremo Tribunal de
Justiça) and awaiting an appeal judgment by the Federal Regional CourtTRF (Tribunal Regional Federal).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vi) | Refers to claims for backdated salary increases and productivity payments, brought by former employees.
|---- | -------------------------------------------------------------------------------------------------------

|(vii) | Suits brought by former employees claiming reinstatement with the Company for various reasons.
|----- | ----------------------------------------------------------------------------------------------

|(viii) | Indemnity claims in connection with alleged work-related accidents, pain and suffering, etc.
|------ | --------------------------------------------------------------------------------------------

|(ix) | Other indemnity claims brought by parties that had some kind of legal relationship with the Company.
|---- | ----------------------------------------------------------------------------------------------------



F-49



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The tax, labor and civil provisions are recorded in accordance with the Companys
accounting policy (see note 2.2.24 of the December 31, 2015 consolidated financial statements), and the amounts shown here represent the estimated amounts that the Companys legal department and its external counsel expect the Company to
have to disburse to settle the lawsuits.

Change in provision:



|                        |  |                   |       |   |                        |  |       |                                |  |  |       |   |  |                      |       |   |       |  |      |       |  |  |       |   |  |  |       |  
|----------------------- |  | ----------------- | ----- | - | ---------------------- |  | ----- | ------------------------------ |  |  | ----- | - |  | -------------------- | ----- | - | ----- |  | ---- | ----- |  |  | ----- | - |  |  | ----- | -
|                        |  | Productwarranties |       |   | Postretirementbenefits |  |       | ProvisionsLabor,Taxes andCivil |  |  | Taxes |   |  | Environmentprovision |       |   | Other |  |      | Total | 
|At December 31,2012     |  |                   | 110.6 |   |                        |  | 61.4  |                                |  |  | 62.8  |   |  |                      | 4.2   |   |       |  |     |       |  |  | 14.6  |   |  |  | 253.6 |  
|                        |  |                   |       |   |                        |  |       |                                |  |  |       |   |  |                      |       |   |       |  |      |       |  |  |       |   |  |  |       |  
|Additions               |  |                   | 98.0  |   |                        |  | 15.0  |                                |  |  | 21.0  |   |  |                      | 4.0   |   |       |  | 5.8  |       |  |  | 10.9  |   |  |  | 154.7 |  
|Interest                |  |                   |      |   |                        |  | 4.7   |                                |  |  | 4.1   |   |  |                      |      |   |       |  |     |       |  |  |      |   |  |  | 8.8   |  
|Used/payments           |  |                   | (68.5 | ) |                        |  | (3.1  | )                              |  |  | (2.0  | ) |  |                      |      |   |       |  |     |       |  |  |      |   |  |  | (73.6 | )
|Reversals               |  |                   | (35.1 | ) |                        |  |      |                                |  |  | (9.6  | ) |  |                      | (1.0  | ) |       |  |     |       |  |  | (16.2 | ) |  |  | (61.9 | )
|Translation adjustments |  |                   | (1.1  | ) |                        |  | (7.0  | )                              |  |  | (7.4  | ) |  |                      | 0.1   |   |       |  | (0.5 | )     |  |  | (1.5  | ) |  |  | (17.4 | )
|                        |  |                   |       |   |                        |  |       |                                |  |  |       |   |  |                      |       |   |       |  |      |       |  |  |       |   |  |  |       |  
|At December 31, 2013    |  |                   | 103.9 |   |                        |  | 71.0  |                                |  |  | 68.9  |   |  |                      | 7.3   |   |       |  | 5.3  |       |  |  | 7.8   |   |  |  | 264.2 |  
|                        |  |                   |       |   |                        |  |       |                                |  |  |       |   |  |                      |       |   |       |  |      |       |  |  |       |   |  |  |       |  
|Additions               |  |                   | 89.2  |   |                        |  | 3.0   |                                |  |  | 31.2  |   |  |                      | 18.0  |   |       |  | 2.1  |       |  |  | 5.0   |   |  |  | 148.5 |  
|Interest                |  |                   |      |   |                        |  | 4.8   |                                |  |  | 5.0   |   |  |                      |      |   |       |  |     |       |  |  |      |   |  |  | 9.8   |  
|Used/payments           |  |                   | (64.1 | ) |                        |  | (0.7  | )                              |  |  | (9.8  | ) |  |                      |      |   |       |  | (2.5 | )     |  |  | (3.0  | ) |  |  | (80.1 | )
|Reversals               |  |                   | (38.9 | ) |                        |  | (30.0 | )                              |  |  | (7.2  | ) |  |                      |      |   |       |  |     |       |  |  |      |   |  |  | (76.1 | )
|Translation adjustments |  |                   | (2.8  | ) |                        |  | (6.9  | )                              |  |  | (7.7  | ) |  |                      |      |   |       |  | (0.6 | )     |  |  | 0.2   |   |  |  | (17.8 | )
|                        |  |                   |       |   |                        |  |       |                                |  |  |       |   |  |                      |       |   |       |  |      |       |  |  |       |   |  |  |       |  
|At December 31, 2014    |  |                   | 87.3  |   |                        |  | 41.2  |                                |  |  | 80.4  |   |  |                      | 25.3  |   |       |  | 4.3  |       |  |  | 10.0  |   |  |  | 248.5 |  
|                        |  |                   |       |   |                        |  |       |                                |  |  |       |   |  |                      |       |   |       |  |      |       |  |  |       |   |  |  |       |  
|Additions               |  |                   | 84.4  |   |                        |  | (4.7  | )                              |  |  | 14.1  |   |  |                      | 1.0   |   |       |  | 1.0  |       |  |  | 5.0   |   |  |  | 100.8 |  
|Interest                |  |                   |      |   |                        |  | 3.1   |                                |  |  | 4.7   |   |  |                      |      |   |       |  |     |       |  |  |      |   |  |  | 7.8   |  
|Reclassifications       |  |                   |      |   |                        |  |      |                                |  |  | 0.1   |   |  |                      |      |   |       |  |     |       |  |  |      |   |  |  | 0.1   |  
|Used/payments           |  |                   | (53.9 | ) |                        |  | (1.1  | )                              |  |  | (21.5 | ) |  |                      | (10.0 | ) |       |  |     |       |  |  | (3.0  | ) |  |  | (89.5 | )
|Reversals               |  |                   | (22.3 | ) |                        |  |      |                                |  |  | (11.5 | ) |  |                      |      |   |       |  | (2.0 | )     |  |  |      |   |  |  | (35.8 | )
|Translation adjustments |  |                   | 0.2   |   |                        |  | (11.7 | )                              |  |  | (16.4 | ) |  |                      | 0.6   |   |       |  | (1.6 | )     |  |  | 1.6   |   |  |  | (27.3 | )
|                        |  |                   |       |   |                        |  |       |                                |  |  |       |   |  |                      |       |   |       |  |      |       |  |  |       |   |  |  |       |  
|At December 31, 2015    |  |                   | 95.7  |   |                        |  | 26.8  |                                |  |  | 49.9  |   |  |                      | 16.9  |   |       |  | 1.7  |       |  |  | 13.6  |   |  |  | 204.6 |  
|                        |  |                   |       |   |                        |  |       |                                |  |  |       |   |  |                      |       |   |       |  |      |       |  |  |       |   |  |  |       |  



|26.2. | Contingent liabilities
|----- | ----------------------

Contingent liabilities are amounts
classified as possible losses, in accordance with the Companys accounting policy, in the opinion of the Companys legal department, supported by its external counsel. When the contingent asset arises from the same set of circumstances as
an existing provision, the type of the corresponding provision is indicated at the end of the description. All the Companys contingent liabilities are listed below:



| |  |  | The administrative dispute regarding the tax assessment which addresses the accounting for and recognition of compensation in the Administrative Appeals Council, related Income Tax and Social Contribution is ongoing.
The total amount at December 31, 2015 is US$ 27.6 (US$ 37.9 at December 31, 2014).
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | In September, 2010, the Company received a subpoena from the SEC and associated inquiries from the U.S. Department of Justice, or DOJ, concerning possible non-compliance with the U.S. Foreign Corrupt Practices Act in
relation to certain aircraft sales outside of Brazil. In response, the Company retained external counsel to conduct an internal investigation of sales in three countries.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-50



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





In the light of additional information, the Company voluntarily expanded the scope of the
internal investigation to include sales in other countries, reported on these matters to the SEC and the DOJ and otherwise cooperated with them. The U.S. government inquiries, related inquiries and developments in other countries and the
Companys internal investigation are ongoing and the Company will continue to cooperate with the appropriate authorities as the circumstances require. The Company started discussions with the DOJ with the objective of settling by resolution the
investigations related to non-conformity with the FCPA. Any action in these or other inquiries and related developments and proceedings in other countries may result in substantial fines for the Company and other sanctions or significant adverse
consequences. Based upon the opinion of its external counsel, the Company believes that there is no adequate basis at this time for estimating accruals or quantifying any contingency with respect to these matters.

In light of the above, we embarked on a comprehensive effort to improve and expand our compliance program worldwide. This multi-year task
involved reexamining every aspect of our compliance systems, and where appropriate, redesigning or adding to them. Some of the key enhancements include the creation of a Compliance Department, the appointment of a Chief Compliance Officer reporting
directly to the Risk and Audit Committee of the Board of Directors, the development of a program to monitor engagement of and payments to third parties, improvements to compliance policies, procedure and controls, the enhancement of anonymous and
other reporting channels, and the development of a comprehensive training and education program designed to maintain and reinforce a strong compliance culture at all levels of Embraer globally. The Company will continue to promote enhancements and
update its compliance program.



| |  |  | The Company has contingent liabilities amounting to US$ 10.2 at December 31, 2015 related to labor suits (US$ 15.3 on December, 2014).
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------



|27. | Post-retirement benefits
|--- | ------------------------



|                                          |  |            |      |  |            |  |      | 
|----------------------------------------- |  | ---------- | ---- |  | ---------- |  | ---- | 
|                                          |  | 12.31.2015 |      |  | 12.31.2014 | 
|Medical benefits plan Brazil              |  |            | 22.5 |  |            |  | 36.8 | 
|Medical benefits plan subsidiaries abroad |  |            | 4.3  |  |            |  | 4.4  | 
|                                          |  |            |      |  |            |  |      | 
|Post-retirement benefits                  |  |            | 26.8 |  |            |  | 41.2 | 
|                                          |  |            |      |  |            |  |      | 



|27.1. | Post-retirement healthcare benefits provided by the Company in Brazil
|----- | ---------------------------------------------------------------------

The Company amended its healthcare plan for retired employees, classified as a post-employment benefit. Under this healthcare plan, employees
who retire from the Company have the option of remaining in the plan, contributing the full amount charged by the insurance company. However, due to certain rules for increases under Brazilian law, there could be times at which the contribution made
by the retired employees is insufficient to cover the medical plan expenses, which would represent exposure for the Company.

In 2014 the
Company announced changes in employee participation in the health care plan with regard to the contribution table. These changes have been challenged by the Union, which obtained an injunction suspending the change in the amounts charged to eligible
employees, however, the change was applied for employees assisted by the benefit. In the case of other plan participants, the Company has not reviewed its exposure, and is awaiting a legal decision to proceed with a possible change of employee
participation policy in the health care plan.

The rational of this recognition is described in the accounting policy (Note
2.2.26b). The amounts recognized in the statement of financial position are:



|                                                   |  |            |       |   |            |  |       |  
|-------------------------------------------------- |  | ---------- | ----- | - | ---------- |  | ----- | -
|                                                   |  | 12.31.2015 |       |   | 12.31.2014 | 
|Benefit obligationbeginning of year               |  |            | 36.8  |   |            |  | 68.5  |  
|Cost of service                                    |  |            |      |   |            |  | 0.7   |  
|Interest on the value of the obligation            |  |            | 2.9   |   |            |  | 4.5   |  
|Actuarial gain (loss) from demographic assumptions |  |            | (1.1  | ) |            |  | (0.1  | )
|Actuarial gain (loss) from financial assumptions   |  |            |      |   |            |  | 1.7   |  
|Benefits paid directly by the company              |  |            | (3.1  | ) |            |  | (0.5  | )
|Cost incurred serviceplan amendments              |  |            | (1.1  | ) |            |  | (30.0 | )
|Translation adjustments                            |  |            | (11.9 | ) |            |  | (8.0  | )
|                                                   |  |            |       |   |            |  |       |  
|Benefit obligationend of year                     |  |            | 22.5  |   |            |  | 36.8  |  
|                                                   |  |            |       |   |            |  |       |  



F-51



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The main actuarial assumptions were as follows:



|                                         |  |            |      |   |            |  |      |  
|---------------------------------------- |  | ---------- | ---- | - | ---------- |  | ---- | -
|                                         |  | 12.31.2015 |      |   | 12.31.2014 | 
|Discount rate                            |  |            | 12.6 | % |            |  | 11.8 | %
|Inflation                                |  |            | 5.0  | % |            |  | 5.2  | %
|Growth rate of medical costs (next year) |  |            | 11.0 | % |            |  | 11.2 | %
|Growth of (long term) medical cost rate  |  |            | 6.0  | % |            |  | 6.2  | %



|27.2. | Post-retirement healthcare benefits provided by subsidiaries abroad
|----- | -------------------------------------------------------------------

Embraer Aircraft Holding sponsors a post-retirement healthcare plan for employees hired up to 2007. The expected costs of pension and provision
of post-employment medical benefit for the employee concerned and their dependents are provided on an accrual basis based on actuarial studies and the calculation is reviewed annually.

The changes in the post-retirement benefits are summarized as follows:



|                                           |  |                               |      |   |            |  |      |            |  |  |      |  
|------------------------------------------ |  | ----------------------------- | ---- | - | ---------- |  | ---- | ---------- |  |  | ---- | -
|                                           |  | Other Post retirementBenefits |     
|                                           |  | 12.31.2015                    |      |   | 12.31.2014 |  |      | 12.31.2013 | 
|Benefits Obligationsbeginning of the year |  |                               | 4.4  |   |            |  | 2.5  |            |  |  | 4.4  |  
|Interest cost                              |  |                               | (0.2 | ) |            |  | 0.3  |            |  |  | 0.3  |  
|Actuarial loss                             |  |                               | 0.2  |   |            |  | 1.7  |            |  |  | (2.0 | )
|Benefits paid to participants              |  |                               | (0.1 | ) |            |  | (0.1 | )          |  |  | (0.2 | )
|                                           |  |                               |      |   |            |  |      |            |  |  |      |  
|Benefits Obligationsend of year           |  |                               | 4.3  |   |            |  | 4.4  |            |  |  | 2.5  |  
|                                           |  |                               |      |   |            |  |      |            |  |  |      |  

The changes in plan assets were as follows:



|                                                |  |                               |      |   |            |  |      |            |  |  |      |  
|----------------------------------------------- |  | ----------------------------- | ---- | - | ---------- |  | ---- | ---------- |  |  | ---- | -
|                                                |  | Other Post retirementBenefits |     
|                                                |  | 12.31.2015                    |      |   | 12.31.2014 |  |      | 12.31.2013 | 
|Fair value of plan assetsbeginning of the year |  |                               | 1.1  |   |            |  | 1.2  |            |  |  | 1.1  |  
|Actual return on plan assets                    |  |                               |     |   |            |  | 0.1  |            |  |  | 0.3  |  
|Benefits paid to participants                   |  |                               | (0.2 | ) |            |  | (0.2 | )          |  |  | (0.2 | )
|                                                |  |                               |      |   |            |  |      |            |  |  |      |  
|Fair value of plan assetsend of year           |  |                               | 0.9  |   |            |  | 1.1  |            |  |  | 1.2  |  
|                                                |  |                               |      |   |            |  |      |            |  |  |      |  

The fair value of the plan assets is measured based on Level 1 inputs in accordance with the accounting
standard for fair value measurements. There has been no change since the prior year in the valuation techniques and level of inputs. The net prepaid (accrued) benefit costs are summarized as follows:



|                             |  |                               |      |   |            |  |      |            |  |  |      |  
|---------------------------- |  | ----------------------------- | ---- | - | ---------- |  | ---- | ---------- |  |  | ---- | -
|                             |  | Other Post retirementBenefits |     
|                             |  | 12.31.2015                    |      |   | 12.31.2014 |  |      | 12.31.2013 | 
|Accrued costUnfunded status |  |                               | (4.3 | ) |            |  | (4.4 | )          |  |  | (2.5 | )
|                             |  |                               |      |   |            |  |      |            |  |  |      |  
|                             |  |                               | (4.3 | ) |            |  | (4.4 | )          |  |  | (2.5 | )
|                             |  |                               |      |   |            |  |      |            |  |  |      |  

The principal actuarial assumptions utilized were as follows:



|                              |  |                               |      |   |            |  |      |            |  |  |      |  
|----------------------------- |  | ----------------------------- | ---- | - | ---------- |  | ---- | ---------- |  |  | ---- | -
|                              |  | Other Post retirementBenefits |     
|                              |  | %                             |      |   | %          |  |      | %          | 
|                              |  | 12.31.2015                    |      |   | 12.31.2014 |  |      | 12.31.2013 | 
|Average discount rate         |  |                               | 4.00 | % |            |  | 4.75 | %          |  |  | 3.75 | %
|Net periodic benefit cost     |  |                               | 4.25 | % |            |  | 4.00 | %          |  |  | 4.75 | %
|Rate of compensation increase |  |                               | 5.50 | % |            |  | 5.50 | %          |  |  | 5.50 | %



F-52



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The components of net periodic benefit cost were as follows:



|                               |  |            |      |   |            |  |      |            |  |  |      |  
|------------------------------ |  | ---------- | ---- | - | ---------- |  | ---- | ---------- |  |  | ---- | -
|                               |  | 12.31.2015 |      |   | 12.31.2014 |  |      | 12.31.2013 | 
|Service cost                   |  |            | (0.1 | ) |            |  | (0.1 | )          |  |  | (0.1 | )
|Interest cost                  |  |            | (0.2 | ) |            |  | (0.2 | )          |  |  | (0.2 | )
|Expected return on plan assets |  |            |     |   |            |  | 0.1  |            |  |  | 0.1  |  
|                               |  |            |      |   |            |  |      |            |  |  |      |  
|Net periodic cost              |  |            | (0.3 | ) |            |  | (0.2 | )          |  |  | (0.2 | )
|                               |  |            |      |   |            |  |      |            |  |  |      |  
|Net cost                       |  |            | (0.3 | ) |            |  | (0.2 | )          |  |  | (0.2 | )
|                               |  |            |      |   |            |  |      |            |  |  |      |  

The net benefit cost (benefit) is included in selling expenses and administrative expenses.

The composition of plan assets, was as follows:



|                                          |  |            |     |   |            |  |     |            |  |  |     |  
|----------------------------------------- |  | ---------- | --- | - | ---------- |  | --- | ---------- |  |  | --- | -
|                                          |  | 12.31.2015 |     |   | 12.31.2014 |  |     | 12.31.2013 | 
|Mutual funds invested primarily in stocks |  |            | 98  | % |            |  | 98  | %          |  |  | 98  | %
|Mutual funds invested primarily in bonds  |  |            | 1   | % |            |  | 1   | %          |  |  | 1   | %
|Othercash                                |  |            | 1   | % |            |  | 1   | %          |  |  | 1   | %
|                                          |  |            |     |   |            |  |     |            |  |  |     |  
|                                          |  |            | 100 | % |            |  | 100 | %          |  |  | 100 | %
|                                          |  |            |     |   |            |  |     |            |  |  |     |  

The benefit payments, which reflect expected future service, are expected to be paid to participants under the
post-retirement medical plan as follows:



|          |  |                                |      | 
|--------- |  | ------------------------------ | ---- | 
|Year      |  | Other benefits post retirement |     
|2016      |  |                                | 1.0  | 
|2017      |  |                                | 1.1  | 
|2018      |  |                                | 1.3  | 
|2019      |  |                                | 1.5  | 
|2020      |  |                                | 1.7  | 
|20212024 |  |                                | 12.4 | 
|          |  |                                |      | 
|          |  |                                | 19.0 | 
|          |  |                                |      | 

For measurement purposes, an annual rate of increase in the per capita cost of covered health and dental care
benefits of 7% was assumed. The rate is expected to decrease to 5% in 2015. Assumed healthcare cost trend rates have a significant effect on the amounts reported for the post-retirement healthcare plan. A one percentage point change in assumed
healthcare cost trend rates would not have material effects on the post-retirement benefit.



|27.3. | Defined contribution pension plan
|----- | ---------------------------------

The Company and certain
subsidiaries sponsor a defined contribution pension plan for their employees, in which participation is optional. The Companys contributions to the plan for the years ended December 31, 2015 and 2014 were US$ 22.0 and US$ 28.4
respectively.



|28. | Financial Instruments
|--- | ---------------------



|28.1. | Financial instruments by category
|----- | ---------------------------------



|                                              |  |            |  |                      |         |  |                                            |  |         |                   |  |  |                            |  |  |                                      |       |  |       |  |         |  |  |  |         | 
|--------------------------------------------- |  | ---------- |  | -------------------- | ------- |  | ------------------------------------------ |  | ------- | ----------------- |  |  | -------------------------- |  |  | ------------------------------------ | ----- |  | ----- |  | ------- |  |  |  | ------- | 
|                                              |  | 12.31.2015 | 
|                                              |  | Note       |  | Loans andreceivables |         |  | Measured atfair valuethrough profitor loss |  |         | Availablefor sale |  |  | Investmentsheld tomaturity |  |  | Liabilitiesmeasured atamortised cost |       |  | Total | 
|Assets                                        |  |            |  |                      |         |  |                                            |  |         |                   |  |  |                            |  |  |                                      |       |  |       |  |         |  |  |  |         | 
|Cash and cash equivalents                     |  | 5          |  |                      |        |  |                                            |  | 2,165.5 |                   |  |  |                           |  |  |                                      |      |  |       |  |        |  |  |  | 2,165.5 | 
|Financial investments                         |  | 6          |  |                      |        |  |                                            |  | 622.5   |                   |  |  | 2.0                        |  |  |                                      | 747.7 |  |       |  |        |  |  |  | 1,372.2 | 
|Collateralized accounts receivable            |  | 10         |  |                      | 408.0   |  |                                            |  |        |                   |  |  |                           |  |  |                                      |      |  |       |  |        |  |  |  | 408.0   | 
|Trade accounts receivable, net                |  | 7          |  |                      | 783.4   |  |                                            |  |        |                   |  |  |                           |  |  |                                      |      |  |       |  |        |  |  |  | 783.4   | 
|Customer and commercial financing             |  | 9          |  |                      | 56.2    |  |                                            |  |        |                   |  |  |                           |  |  |                                      |      |  |       |  |        |  |  |  | 56.2    | 
|Derivative financial instruments              |  | 8          |  |                      |        |  |                                            |  | 14.4    |                   |  |  |                           |  |  |                                      |      |  |       |  |        |  |  |  | 14.4    | 
|                                              |  |            |  |                      |         |  |                                            |  |         |                   |  |  |                            |  |  |                                      |       |  |       |  |         |  |  |  |         | 
|                                              |  |            |  |                      | 1,247.6 |  |                                            |  | 2,802.4 |                   |  |  | 2.0                        |  |  |                                      | 747.7 |  |       |  |        |  |  |  | 4,799.7 | 
|                                              |  |            |  |                      |         |  |                                            |  |         |                   |  |  |                            |  |  |                                      |       |  |       |  |         |  |  |  |         | 
|Liabilities                                   |  |            |  |                      |         |  |                                            |  |         |                   |  |  |                            |  |  |                                      |       |  |       |  |         |  |  |  |         | 
|Loans and financing                           |  | 20         |  |                      |        |  |                                            |  | 483.9   |                   |  |  |                           |  |  |                                      |      |  |       |  | 3,046.5 |  |  |  | 3,530.4 | 
|Trade accounts payable and others liabilities |  |            |  |                      |        |  |                                            |  | 9.8     |                   |  |  |                           |  |  |                                      |      |  |       |  | 1,740.6 |  |  |  | 1,750.4 | 
|Financial guarantee of residual value         |  | 25         |  |                      |        |  |                                            |  | 94.7    |                   |  |  |                           |  |  |                                      |      |  |       |  | 198.4   |  |  |  | 293.1   | 
|Capital lease                                 |  | 20         |  |                      |        |  |                                            |  |        |                   |  |  |                           |  |  |                                      |      |  |       |  | 0.1     |  |  |  | 0.1     | 
|Derivative financial instruments              |  | 8          |  |                      |        |  |                                            |  | 12.3    |                   |  |  |                           |  |  |                                      |      |  |       |  |        |  |  |  | 12.3    | 
|                                              |  |            |  |                      |         |  |                                            |  |         |                   |  |  |                            |  |  |                                      |       |  |       |  |         |  |  |  |         | 
|                                              |  |            |  |                      |        |  |                                            |  | 600.7   |                   |  |  |                           |  |  |                                      |      |  |       |  | 4,985.6 |  |  |  | 5,586.3 | 
|                                              |  |            |  |                      |         |  |                                            |  |         |                   |  |  |                            |  |  |                                      |       |  |       |  |         |  |  |  |         | 



F-53



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|                                              |  |            |    |  |                      |  |         |                                           |  |                   |  |  |                            |  |  |                                      |      |  |       |  |         |  |  |  |         |  |  | 
|--------------------------------------------- |  | ---------- | -- |  | -------------------- |  | ------- | ----------------------------------------- |  | ----------------- |  |  | -------------------------- |  |  | ------------------------------------ | ---- |  | ----- |  | ------- |  |  |  | ------- |  |  | 
|                                              |  | 12.31.2014 |   
|                                              |  | Note       |    |  | Loans andreceivables |  |         | Measured atfair valuethroughprofitor loss |  | Availablefor sale |  |  | Investmentsheld tomaturity |  |  | Liabilitiesmeasured atamortised cost |      |  | Total | 
|Assets                                        |  |            |    |  |                      |  |         |                                           |  |                   |  |  |                            |  |  |                                      |      |  |       |  |         |  |  |  |         | 
|Cash and cash equivalents                     |  |            | 5  |  |                      |  |        |                                           |  | 1,713.0           |  |  |                           |  |  |                                      |     |  |       |  |        |  |  |  | 1,713.0 | 
|Financial investments                         |  |            | 6  |  |                      |  |        |                                           |  | 709.6             |  |  | 2.6                        |  |  |                                      | 44.2 |  |       |  |        |  |  |  | 756.4   | 
|Collateralized accounts receivable            |  |            | 10 |  |                      |  | 425.6   |                                           |  |                  |  |  |                           |  |  |                                      |     |  |       |  |        |  |  |  | 425.6   | 
|Trade accounts receivable, net                |  |            | 7  |  |                      |  | 703.8   |                                           |  |                  |  |  |                           |  |  |                                      |     |  |       |  |        |  |  |  | 703.8   | 
|Customer and commercial financing             |  |            | 9  |  |                      |  | 68.6    |                                           |  |                  |  |  |                           |  |  |                                      |     |  |       |  |        |  |  |  | 68.6    | 
|Derivative financial instruments              |  |            | 8  |  |                      |  |        |                                           |  | 17.9              |  |  |                           |  |  |                                      |     |  |       |  |        |  |  |  | 17.9    | 
|                                              |  |            |    |  |                      |  |         |                                           |  |                   |  |  |                            |  |  |                                      |      |  |       |  |         |  |  |  |         | 
|                                              |  |            |    |  |                      |  | 1,198.0 |                                           |  | 2,440.5           |  |  | 2.6                        |  |  |                                      | 44.2 |  |       |  |        |  |  |  | 3,685.3 | 
|                                              |  |            |    |  |                      |  |         |                                           |  |                   |  |  |                            |  |  |                                      |      |  |       |  |         |  |  |  |         | 
|Liabilities                                   |  |            |    |  |                      |  |         |                                           |  |                   |  |  |                            |  |  |                                      |      |  |       |  |         | 
|Loans and financing                           |  |            | 20 |  |                      |  |        |                                           |  |                  |  |  |                           |  |  |                                      |     |  |       |  | 2,507.9 |  |  |  | 2,507.9 | 
|Trade accounts payable and others liabilities |  |            |    |  |                      |  |        |                                           |  | 4.0               |  |  |                           |  |  |                                      |     |  |       |  | 1,788.7 |  |  |  | 1,792.7 | 
|Financial guarantee of residual value         |  |            | 25 |  |                      |  |        |                                           |  | 94.4              |  |  |                           |  |  |                                      |     |  |       |  | 143.6   |  |  |  | 238.0   | 
|Capital lease                                 |  |            | 20 |  |                      |  |        |                                           |  |                  |  |  |                           |  |  |                                      |     |  |       |  | 0.2     |  |  |  | 0.2     | 
|Derivative financial instruments              |  |            | 8  |  |                      |  |        |                                           |  | 15.4              |  |  |                           |  |  |                                      |     |  |       |  |        |  |  |  | 15.4    | 
|                                              |  |            |    |  |                      |  |         |                                           |  |                   |  |  |                            |  |  |                                      |      |  |       |  |         |  |  |  |         | 
|                                              |  |            |    |  |                      |  |        |                                           |  | 113.8             |  |  |                           |  |  |                                      |     |  |       |  | 4,440.4 |  |  |  | 4,554.2 | 
|                                              |  |            |    |  |                      |  |         |                                           |  |                   |  |  |                            |  |  |                                      |      |  |       |  |         |  |  |  |         | 



|28.2. | Fair value of financial instruments
|----- | -----------------------------------

The fair value of the
Companys financial assets and liabilities was determined using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to generate estimates of fair
values. Consequently, the estimates presented below are not necessarily indicative of the amounts that might be realized in a current market exchange. The use of different assumptions and/or methodologies could have a material effect on the
estimated realizable values.

The following methods were used to estimate the fair value of each category of financial instrument for
which it is possible to estimate the fair value.

The carrying amounts of cash, financial investments, accounts receivable, other
financial assets and current liabilities are approximately their fair values. The fair value of securities held to maturity is estimated by the discounted cash flow methodology. The fair value of non-current loans is based on the value of the
contractual cash flows. The discount rate used, when applicable, is based on the future market yield curve for the cash flows of each liability.

The Company considers fair value to be the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the
risks inherent in the inputs to the valuation technique. The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, the Company utilizes valuation
techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observable inputs. A fair value hierarchy is used to prioritize the inputs used to
measure fair value. The three Levels of the fair value hierarchy are as follows:



| |  |  | Level 1quoted prices are available in active markets for identical assets or liabilities at the reporting period. Active markets are those in which transactions for the asset or liability occur in
sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives and listed equities.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Level 2pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported date. However, they can be directly or
indirectly observable at the statement of financial position date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various
assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these
assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category
include non-exchange traded derivatives such as swaps or over-the-counter forwards and options.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-54



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





| |  |  | Level 3pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in Managements
best estimate of fair value. At each balance sheet date, the Company performs an analysis of all instruments and includes in Level 3 all of those whose fair value is based on significant unobservable inputs.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The following table lists the Companys financial assets and liabilities by level within the fair value hierarchy. The Companys
assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.



|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 
|--------------------------------------------- |  | ---------- | -- |  | ------------------------------------------------------------------------------- |  | ----- | ------------------------------------------ |  |  | --------- |  |  | --------- | ---- |  |  |  | ------- |  |  |  | ------- |  |  |  | ------- |  |  |  | ------- | 
|                                              |  | 12.31.2015 |   
|                                              |  |            |    |  | Fair value of financial instrumentsmeasured at fair value through profit orloss |  |       | Fair valueof the otherfinancialinstruments |  |  | Fairvalue |  |  | Bookvalue |     
|                                              |  | Note       |    |  | Level 1                                                                         |  |       | Level 2                                    |  |  | Level 3   |  |  | Total     |      |  |  | 
|Assets                                        |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         | 
|Cash and cash equivalents                     |  |            | 5  |  |                                                                                 |  | 379.6 |                                            |  |  | 1,785.9   |  |  |           |     |  |  |  | 2,165.5 |  |  |  |        |  |  |  | 2,165.5 |  |  |  | 2,165.5 | 
|Financial investments                         |  |            | 6  |  |                                                                                 |  | 0.1   |                                            |  |  | 622.4     |  |  |           |     |  |  |  | 622.5   |  |  |  | 749.7   |  |  |  | 1,372.2 |  |  |  | 1,372.2 | 
|Collateralized accounts receivable            |  |            | 10 |  |                                                                                 |  |      |                                            |  |  |          |  |  |           |     |  |  |  |        |  |  |  | 408.0   |  |  |  | 408.0   |  |  |  | 408.0   | 
|Trade accounts receivable, net                |  |            | 7  |  |                                                                                 |  |      |                                            |  |  |          |  |  |           |     |  |  |  |        |  |  |  | 783.4   |  |  |  | 783.4   |  |  |  | 783.4   | 
|Customer and commercial financing             |  |            | 9  |  |                                                                                 |  |      |                                            |  |  |          |  |  |           |     |  |  |  |        |  |  |  | 56.2    |  |  |  | 56.2    |  |  |  | 56.2    | 
|Derivative financial instruments              |  |            | 8  |  |                                                                                 |  |      |                                            |  |  | 14.4      |  |  |           |     |  |  |  | 14.4    |  |  |  |        |  |  |  | 14.4    |  |  |  | 14.4    | 
|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 
|                                              |  |            |    |  |                                                                                 |  | 379.7 |                                            |  |  | 2,422.7   |  |  |           |     |  |  |  | 2,802.4 |  |  |  | 1,997.3 |  |  |  | 4,799.7 |  |  |  | 4,799.7 | 
|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 
|Liabilities                                   |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         | 
|Loans and financing                           |  |            | 20 |  |                                                                                 |  |      |                                            |  |  | 483.9     |  |  |           |     |  |  |  | 483.9   |  |  |  | 3,046.5 |  |  |  | 3,669.8 |  |  |  | 3,530.4 | 
|Trade accounts payable and others liabilities |  |            |    |  |                                                                                 |  | 9.8   |                                            |  |  |          |  |  |           |     |  |  |  | 9.8     |  |  |  | 1,740.6 |  |  |  | 1,750.4 |  |  |  | 1,750.4 | 
|Financial guarantee and of residual value     |  |            | 25 |  |                                                                                 |  |      |                                            |  |  |          |  |  |           | 94.7 |  |  |  | 94.7    |  |  |  | 198.4   |  |  |  | 293.1   |  |  |  | 293.1   | 
|Capital lease                                 |  |            | 20 |  |                                                                                 |  |      |                                            |  |  |          |  |  |           |     |  |  |  |        |  |  |  | 0.1     |  |  |  | 0.1     |  |  |  | 0.1     | 
|Derivative financial instruments              |  |            | 8  |  |                                                                                 |  |      |                                            |  |  | 12.3      |  |  |           |     |  |  |  | 12.3    |  |  |  |        |  |  |  | 12.3    |  |  |  | 12.3    | 
|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 
|                                              |  |            |    |  |                                                                                 |  | 9.8   |                                            |  |  | 496.2     |  |  |           | 94.7 |  |  |  | 600.7   |  |  |  | 4,985.6 |  |  |  | 5,725.7 |  |  |  | 5,586.3 | 
|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 



|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 
|--------------------------------------------- |  | ---------- | -- |  | ------------------------------------------------------------------------------- |  | ----- | ------------------------------------------ |  |  | --------- |  |  | --------- | ---- |  |  |  | ------- |  |  |  | ------- |  |  |  | ------- |  |  |  | ------- | 
|                                              |  | 12.31.2014 |   
|                                              |  |            |    |  | Fair value of financial instrumentsmeasured at fair value through profit orloss |  |       | Fair valueof the otherfinancialinstruments |  |  | Fairvalue |  |  | Bookvalue |     
|                                              |  | Note       |    |  | Level 1                                                                         |  |       | Level 2                                    |  |  | Level 3   |  |  | Total     |      |  |  | 
|Assets                                        |  |            |    |  |                                                                                 |  |       |                                           
|Cash and cash equivalents                     |  |            | 5  |  |                                                                                 |  | 232.2 |                                            |  |  | 1,480.8   |  |  |           |     |  |  |  | 1,713.0 |  |  |  |        |  |  |  | 1,713.0 |  |  |  | 1,713.0 | 
|Financial investments                         |  |            | 6  |  |                                                                                 |  | 0.8   |                                            |  |  | 708.8     |  |  |           |     |  |  |  | 709.6   |  |  |  | 46.8    |  |  |  | 756.4   |  |  |  | 756.4   | 
|Collateralized accounts receivable            |  |            | 10 |  |                                                                                 |  |      |                                            |  |  |          |  |  |           |     |  |  |  |        |  |  |  | 425.6   |  |  |  | 425.6   |  |  |  | 425.6   | 
|Trade accounts receivable, net                |  |            | 7  |  |                                                                                 |  |      |                                            |  |  |          |  |  |           |     |  |  |  |        |  |  |  | 703.8   |  |  |  | 703.8   |  |  |  | 703.8   | 
|Customer and commercial financing             |  |            | 9  |  |                                                                                 |  |      |                                            |  |  |          |  |  |           |     |  |  |  |        |  |  |  | 68.6    |  |  |  | 68.6    |  |  |  | 68.6    | 
|Derivative financial instruments              |  |            | 8  |  |                                                                                 |  |      |                                            |  |  | 17.9      |  |  |           |     |  |  |  | 17.9    |  |  |  |        |  |  |  | 17.9    |  |  |  | 17.9    | 
|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 
|                                              |  |            |    |  |                                                                                 |  | 233.0 |                                            |  |  | 2,207.5   |  |  |           |     |  |  |  | 2,440.5 |  |  |  | 1,244.8 |  |  |  | 3,685.3 |  |  |  | 3,685.3 | 
|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 
|Liabilities                                   |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         | 
|Loans and financing                           |  |            | 20 |  |                                                                                 |  |      |                                            |  |  |          |  |  |           |     |  |  |  |        |  |  |  | 2,507.9 |  |  |  | 2,661.5 |  |  |  | 2,507.9 | 
|Trade accounts payable and others liabilities |  |            |    |  |                                                                                 |  | 4.0   |                                            |  |  |          |  |  |           |     |  |  |  | 4.0     |  |  |  | 1,788.7 |  |  |  | 1,792.7 |  |  |  | 1,792.7 | 
|Financial guarantee and of residual value     |  |            | 25 |  |                                                                                 |  |      |                                            |  |  |          |  |  |           | 94.4 |  |  |  | 94.4    |  |  |  | 143.6   |  |  |  | 238.0   |  |  |  | 238.0   | 
|Capital lease                                 |  |            | 20 |  |                                                                                 |  |      |                                            |  |  |          |  |  |           |     |  |  |  |        |  |  |  | 0.2     |  |  |  | 0.2     |  |  |  | 0.2     | 
|Derivative financial instruments              |  |            | 8  |  |                                                                                 |  |      |                                            |  |  | 15.4      |  |  |           |     |  |  |  | 15.4    |  |  |  |        |  |  |  | 15.4    |  |  |  | 15.4    | 
|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 
|                                              |  |            |    |  |                                                                                 |  | 4.0   |                                            |  |  | 15.4      |  |  |           | 94.4 |  |  |  | 113.8   |  |  |  | 4,440.4 |  |  |  | 4,707.8 |  |  |  | 4,554.2 | 
|                                              |  |            |    |  |                                                                                 |  |       |                                            |  |  |           |  |  |           |      |  |  |  |         |  |  |  |         |  |  |  |         |  |  |  |         | 





F-55



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|                     |  |                                                                                      |      |  
|-------------------- |  | ------------------------------------------------------------------------------------ | ---- | -
|                     |  | Fair value of liabilities measurementusing significant unobservable inputs (level 3) |     
|At December 31,2013  |  |                                                                                      | 81.6 |  
|                     |  |                                                                                      |      |  
|Disposal             |  |                                                                                      | (6.3 | )
|Market value         |  |                                                                                      | 19.1 |  
|                     |  |                                                                                      |      |  
|At December 31,2014  |  |                                                                                      | 94.4 |  
|                     |  |                                                                                      |      |  
|Market value         |  |                                                                                      | 0.3  |  
|                     |  |                                                                                      |      |  
|At December 31, 2015 |  |                                                                                      | 94.7 |  



|28.3. | Financial risk management policy
|----- | --------------------------------

The Company has and follows a
risk management policy, which involves the diversification of transactions and counterparties, with the objective of mapping the risks related to the financial transactions, as well as the operational directives related to these financial
transactions. The policy provides for regular monitoring and management of the nature and general situation of the financial risks in order to assess the results and the financial impact on cash flows. The credit limits and risk rating of the
counterparties are also reviewed periodically.

The Companys risk management policy is part of the financial management policy
established by the Executive Directors and approved by to the Board of Directors, and provides for monitoring by a Financial Management Committee. Under this policy, the market risks are mitigated when there is no counterparty in the Companys
operations and when it is considered necessary to support the corporate strategy. The Companys internal control procedures provide for consolidated monitoring and supervision of the financial results and of the impact on cash flows.

The Financial Management Committee assists the Financial Department in examining and reviewing information in relation to the economic
scenario and its potential impact on the Companys operations, including significant risk management policies, procedures and practices.

The financial risk management policy includes the use of derivative financial instruments to mitigate the effects of interest rate fluctuations
and to reduce the exposure to exchange rate risk. The use of these instruments for speculative purposes is forbidden.



|28.3.1 | Capital risk management
|------ | -----------------------

The Company uses capital management to
ensure the continuity of its investment program and offer a return to its shareholders and benefits to its stakeholders and also to maintain an optimized capital structure in order to reduce costs.

The Company may review its dividends payment policy, pay back capital to the shareholders, issue new shares or sell assets in order to
maintain or adjust its capital structure (to reduce indebtedness, for instance).

Liquidity and the leverage level are constantly
monitored in order to mitigate refinance risk and to maximize the return to the shareholders. The ratio between the liquidity and the return to the shareholders may be changed pursuant to the assessment of the Board of Directors.

The Companys capital management may be modified to adjust to changes in the economic scenario or strategic repositioning of the Company.

At December 31, 2015, cash and cash equivalents and financial investments exceeded US$ 7.2 than the Companys financial
indebtedness and at December 31, 2014 cash and cash equivalents and financial investments were lower than the Companys financial indebtedness by US$ 38.7.

Of the total financial indebtedness as of December 31, 2015, 6.2% was short-term (3.6% at December 31, 2014) and the average
weighted term was equivalent to 6.2 years (5.4 years at December 31, 2014). The Companys own capital accounted for 32.9% of the total liabilities at December 31, 2015 and 37.1% at December 31, 2014.





F-56



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|28.3.2 | Credit risk
|------ | -----------

Credit risk is the risk of a transaction
negotiated between counterparties not meeting an obligation established in a financial instrument, or in negotiation of sales to customers, leading to a financial loss. The Company is exposed to credit risk in its operational activities, cash held
in banks and other investments in financial instruments held in financial institutions.



| |  |  | Financial investments
| | - |  | ---------------------

The credit risk of cash and financial investments, which
is managed by the Companys Financial Department, is in compliance with the risk management policy. The credit limit of counterparties is reviewed on a daily basis in order to minimize concentration of risks and mitigate financial losses due to
the bankruptcy of a counterparty. The Financial Management Committee assists the Financial Department in examining and reviewing operations with counterparties.



| |  |  | Accounts receivable
| | - |  | -------------------

The Company may incur losses on amounts receivable from
sales of spare parts and services and customer credit ratings are analyzed continuously in order to reduce this risk. The Company may also be subject to credit risk on accounts receivable from aircraft sales until the financing structure has been
completed. To minimize this credit risk, the Company operates with financial institutions to facilitate structuring of the financing.

To
cover possible losses on doubtful accounts, the Company has recorded an allowance considered sufficient by management to cover expected losses on realization of the receivables.

The following tables present the credit risk classification of the respective counterparty of the financial investment (including cash) and
other financial assets held by the Company.



| | a) | Credit risk for counterparty with external assessment
| | -- | -----------------------------------------------------



|                                 |  |            |         |  |            |  |         | 
|-------------------------------- |  | ---------- | ------- |  | ---------- |  | ------- | 
|                                 |  | 12.31.2015 |         |  | 12.31.2014 | 
|Cash and cash equivalents        |  |            | 2,165.5 |  |            |  | 1,713.0 | 
|Financial investments            |  |            | 1,372.2 |  |            |  | 756.4   | 
|Derivative financial instruments |  |            | 14.4    |  |            |  | 17.9    | 
|                                 |  |            |         |  |            |  |         | 
|Total                            |  |            | 3,552.1 |  |            |  | 2,487.3 | 
|                                 |  |            |         |  |            |  |         | 
|Based on external appraisal:     |  |            |         |  |            |  |         | 
|AAA                              |  |            | 1,975.3 |  |            |  | 1,598.9 | 
|AA                               |  |            | 163.9   |  |            |  | 49.0    | 
|A                                |  |            | 559.6   |  |            |  | 60.0    | 
|BBB                              |  |            | 765.4   |  |            |  | 779.1   | 
|BB                               |  |            | 87.7    |  |            |  |        | 
|N/A                              |  |            | 0.2     |  |            |  | 0.3     | 
|                                 |  |            |         |  |            |  |         | 
|Total                            |  |            | 3,552.1 |  |            |  | 2,487.3 | 
|                                 |  |            |         |  |            |  |         | 



|N/A |  Not available: no observable input to credit assessment
|--- | ---------------------------------------------------------





F-57



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





| | b) | Credit risk for counterparties without external evaluation
| | -- | ----------------------------------------------------------



|                                   |  |            |         |  |            |  |         | 
|---------------------------------- |  | ---------- | ------- |  | ---------- |  | ------- | 
|                                   |  | 12.31.2015 |         |  | 12.31.2014 | 
|Collateralized accounts receivable |  |            | 408.0   |  |            |  | 425.6   | 
|Trade accounts receivable, net     |  |            | 783.4   |  |            |  | 703.8   | 
|Customer and commercial financing  |  |            | 56.2    |  |            |  | 68.6    | 
|                                   |  |            |         |  |            |  |         | 
|Total                              |  |            | 1,247.6 |  |            |  | 1,198.0 | 
|                                   |  |            |         |  |            |  |         | 
|Based on internal appraisal:       |  |            |         |  |            |  |         | 
|Group 1                            |  |            | 4.0     |  |            |  | 1.7     | 
|Group 2                            |  |            | 87.6    |  |            |  | 88.5    | 
|Group 3                            |  |            | 1,156.0 |  |            |  | 1,107.8 | 
|                                   |  |            |         |  |            |  |         | 
|Total                              |  |            | 1,247.6 |  |            |  | 1,198.0 | 
|                                   |  |            |         |  |            |  |         | 



Group 1: New
customers (less than one year)

Group 2: Customers (more than one year) impaired

Group 3: Customers (more than one year) not impaired



|28.3.3 | Liquidity risk
|------ | --------------

This is the risk of the Company not having
sufficient liquid funds to honor its financial commitments as a result of a mismatch of terms or volumes of estimated receipts and payments.

Projections and assumptions are established to manage the liquidity of cash in dollars and reais, based on contracts for future
disbursements and receipts, and monitored daily by the Company. Accordingly, possible mismatches are detected well in advance allowing the Company to adopt mitigation measures to reduce risks and financial cost.

The following table provides additional information related to authorization of undiscounted contractual obligations and commercial
commitments and their respective maturities:



|                               |  |          |         |  |                  |  |         |                  |  |  |                   |  |  |                    |         |  |  |  |         | 
|------------------------------ |  | -------- | ------- |  | ---------------- |  | ------- | ---------------- |  |  | ----------------- |  |  | ------------------ | ------- |  |  |  | ------- | 
|                               |  | CashFlow |         |  | Lessthan oneyear |  |         | One tothreeyears |  |  | Three tofiveyears |  |  | Morethan fiveyears |        
|At December 31, 2015           |  |          |         |  |                  |  |         |                  |  |  |                   |  |  |                    |         |  |  |  |         | 
|Loans and financing            |  |          | 4,740.1 |  |                  |  | 377.9   |                  |  |  | 983.3             |  |  |                    | 580.3   |  |  |  | 2,798.6 | 
|Suppliers                      |  |          | 1,034.9 |  |                  |  | 1,034.9 |                  |  |  |                  |  |  |                    |        |  |  |  |        | 
|Recourse and non recourse debt |  |          | 384.8   |  |                  |  | 10.1    |                  |  |  | 29.4              |  |  |                    | 338.5   |  |  |  | 6.8     | 
|Financial guarantees           |  |          | 293.1   |  |                  |  | 161.5   |                  |  |  | 41.8              |  |  |                    | 17.7    |  |  |  | 72.1    | 
|Other liabilities              |  |          | 266.0   |  |                  |  | 3.4     |                  |  |  | 120.2             |  |  |                    | 85.8    |  |  |  | 56.6    | 
|Capital lease                  |  |          | 0.1     |  |                  |  |        |                  |  |  | 0.1               |  |  |                    |        |  |  |  |        | 
|                               |  |          |         |  |                  |  |         |                  |  |  |                   |  |  |                    |         |  |  |  |         | 
|Total                          |  |          | 6,719.0 |  |                  |  | 1,587.8 |                  |  |  | 1,174.8           |  |  |                    | 1,022.3 |  |  |  | 2,934.1 | 
|                               |  |          |         |  |                  |  |         |                  |  |  |                   |  |  |                    |         |  |  |  |         | 
|At December 31, 2014           |  |          |         |  |                  |  |         |                  |  |  |                   |  |  |                    |         |  |  |  |         | 
|Loans and financing            |  |          | 3,279.9 |  |                  |  | 195.0   |                  |  |  | 1,079.0           |  |  |                    | 320.5   |  |  |  | 1,685.4 | 
|Suppliers                      |  |          | 980.6   |  |                  |  | 980.6   |                  |  |  |                  |  |  |                    |        |  |  |  |        | 
|Recourse and non recourse debt |  |          | 400.0   |  |                  |  | 10.3    |                  |  |  | 328.8             |  |  |                    | 32.1    |  |  |  | 28.8    | 
|Financial guarantees           |  |          | 238.0   |  |                  |  | 29.5    |                  |  |  | 42.1              |  |  |                    | 14.8    |  |  |  | 151.6   | 
|Other liabilities              |  |          | 386.1   |  |                  |  | 85.5    |                  |  |  | 118.4             |  |  |                    | 111.4   |  |  |  | 70.8    | 
|Capital lease                  |  |          | 0.3     |  |                  |  | 0.2     |                  |  |  | 0.1               |  |  |                    |        |  |  |  |        | 
|                               |  |          |         |  |                  |  |         |                  |  |  |                   |  |  |                    |         |  |  |  |         | 
|Total                          |  |          | 5,284.9 |  |                  |  | 1,301.1 |                  |  |  | 1,568.4           |  |  |                    | 478.8   |  |  |  | 1,936.6 | 
|                               |  |          |         |  |                  |  |         |                  |  |  |                   |  |  |                    |         |  |  |  |         | 

The table above shows the outstanding principal and interest if applicable at the maturity dates. In the case
of the fixed rate liabilities, interest expense was calculated based on the rate established in each debt contract. Interest expense on floating rate liabilities was calculated based on a market forecast for each period (e.g. LIBOR 6m12m).





F-58



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|28.3.4 | Market risk
|------ | -----------



| | a) | Interest rate risk
| | -- | ------------------

This risk arises from the possibility of the Company incurring
losses on account of interest rate fluctuations that increase the financial expense of liabilities subject to floating interest rates, reducing the income on assets subject to floating rates and / or fluctuations in fair value when calculating the
price of assets or liabilities marked to market at fixed rates.

The lines of the Financial Statements most affected by interest risks
are:



| |  |  | Cash, cash equivalents and financial investmentsCompany policy for managing the risk of fluctuations in interest rates on financial investments is to measure market risk by the Value-At-RiskVAR methodology,
analyzing a variety of risk factors that might affect the return on the investments. The financial income determined in the period already reflects the effects of marking the assets in the Brazilian and foreign investment portfolios to market.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Loans and financingthe Company uses derivative contracts to hedge against the risk of fluctuations in interest rates on certain transactions, and also continuously monitors market interest rates to evaluate the
potential need to contract new derivative transactions to protect against the risk of volatility in these rates.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

At
December 31, 2015, the Companys cash, cash equivalents, financial investments and loans and financing were indexed as follows:



|                                                 |  |           |         |  |            |  |       |        |  |  |         |  |  |        |       |   |   |  |         |  |  |  |        |  
|------------------------------------------------ |  | --------- | ------- |  | ---------- |  | ----- | ------ |  |  | ------- |  |  | ------ | ----- | - | - |  | ------- |  |  |  | ------ | -
|Without derivative effect                        |  | Pre-fixed |         |  | Post-fixed |  |       | Total  | 
|                                                 |  | Amount    |         |  | %          |  |       | Amount |  |  | %       |  |  | Amount |       |   | % | 
|Cash, cash equivalents and financial investments |  |           | 1,367.5 |  |            |  | 38.66 | %      |  |  | 2,170.2 |  |  |        | 61.34 | % |   |  | 3,537.7 |  |  |  | 100.00 | %
|Loans and financing                              |  |           | 3,228.1 |  |            |  | 91.43 | %      |  |  | 302.4   |  |  |        | 8.57  | % |   |  | 3,530.5 |  |  |  | 100.00 | %
|                                                 |  |           |         |  |            |  |       |        |  |  |         |  |  |        |       |   |   |  |         |  |  |  |        |  
|With derivative effect                           |  | Pre-fixed |         |  | Post-fixed |  |       | Total  | 
|                                                 |  | Amount    |         |  | %          |  |       | Amount |  |  | %       |  |  | Amount |       |   | % | 
|Cash, cash equivalents and financial investments |  |           | 1,367.5 |  |            |  | 38.66 | %      |  |  | 2,170.2 |  |  |        | 61.34 | % |   |  | 3,537.7 |  |  |  | 100.00 | %
|Loans and financing                              |  |           | 3,031.5 |  |            |  | 85.87 | %      |  |  | 499.0   |  |  |        | 14.13 | % |   |  | 3,530.5 |  |  |  | 100.00 | %

At December 31, 2015, the Companys cash equivalents and post -fixed financing were indexed as
follows:



|                                           |        |                          |         |   |                       |  |        |   |  |   |         |  |  |  |        |  
|------------------------------------------ | ------ | ------------------------ | ------- | - | --------------------- |  | ------ | - |  | - | ------- |  |  |  | ------ | -
|                                           |        | Without derivativeeffect |         |   | With derivativeeffect | 
|                                           | Amount |                          |         | % |                       |  | Amount |   |  | % |        
|Cash equivalents and financial investments |        |                          | 2,170.2 |   |                       |  | 100.00 | % |  |   | 2,170.2 |  |  |  | 100.00 | %
|CDI                                        |        |                          | 565.8   |   |                       |  | 26.07  | % |  |   | 565.8   |  |  |  | 26.07  | %
|Libor                                      |        |                          | 1,604.4 |   |                       |  | 73.93  | % |  |   | 1,604.4 |  |  |  | 73.93  | %
|                                           |        |                          |         |   |                       |  |        |   |  |   |         |  |  |  |        |  
|Loans and financing                        |        |                          | 302.4   |   |                       |  | 100.00 | % |  |   | 499.0   |  |  |  | 100.00 | %
|TJLP                                       |        |                          | 22.4    |   |                       |  | 7.41   | % |  |   | 22.4    |  |  |  | 4.49   | %
|Libor                                      |        |                          | 280.0   |   |                       |  | 92.59  | % |  |   | 73.6    |  |  |  | 14.75  | %
|CDI                                        |        |                          |        |   |                       |  | 0.00   | % |  |   | 403.0   |  |  |  | 80.76  | %



| | b) | Foreign exchange rate risk
| | -- | --------------------------

The Companys functional currency is the US dollar.

Consequently, the Companys operations which are most exposed to foreign exchange gains/losses are those denominated in Reais
(labor costs, tax issues, local expenses, financial investments and loans and financing) as well as investments in subsidiaries in currencies other than the US dollar.





F-59



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





Company policy for protection against foreign exchange risks on assets and liabilities is
mainly based on seeking to maintain a balance between assets and liabilities indexed in each currency and daily management of foreign currency purchases and sales to ensure that, on realization of the transactions contracted, this natural hedge will
occur. This policy minimizes the effect of exchange rate changes on assets and liabilities already contracted, but does not protect against the risk of fluctuations in future results due to the appreciation or depreciation of the Real that
can, when measured in dollars, show an increase or reduction of the share of costs denominated in Reais.

Under certain market
conditions, the Company may protect itself against potential future mismatches of expenses and revenues denominated in foreign currency, to minimize the effects of future exchange variations on the Companys profit or loss.

Efforts to minimize the foreign exchange risk for rights and liabilities denominated in currencies other than the functional currency may
involve transactions with derivatives, such as swaps, exchange options and Non-Deliverable Forwards (NDF) (Note 8).



|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|--------------------------------------------------- |  | -------------------------------------------- | ------- | - | ----------------------------------------- |  | ------- | ---------- |  |  | ---------- | - |  |  | ------- | -
|                                                    |  | Without the effect ofderivative transactions |         |   | With the effect ofderivative transactions | 
|                                                    |  | 12.31.2015                                   |         |   | 12.31.2014                                |  |         | 12.31.2015 |  |  | 12.31.2014 |  
|Loans and financing                                 |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Brazilian reais                                     |  |                                              | 807.6   |   |                                           |  | 838.7   |            |  |  | 807.6      |   |  |  | 838.7   |  
|U.S. dollars                                        |  |                                              | 2,700.7 |   |                                           |  | 1,587.0 |            |  |  | 2,700.7    |   |  |  | 1,587.0 |  
|Euro                                                |  |                                              | 22.2    |   |                                           |  | 82.4    |            |  |  | 22.2       |   |  |  | 82.4    |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|                                                    |  |                                              | 3,530.5 |   |                                           |  | 2,508.1 |            |  |  | 3,530.5    |   |  |  | 2,508.1 |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Trade accounts payable                              |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Brazilian reais                                     |  |                                              | 83.9    |   |                                           |  | 114.7   |            |  |  | 83.9       |   |  |  | 114.7   |  
|U.S. dollars                                        |  |                                              | 842.8   |   |                                           |  | 770.1   |            |  |  | 842.8      |   |  |  | 770.1   |  
|Euro                                                |  |                                              | 102.3   |   |                                           |  | 95.2    |            |  |  | 102.3      |   |  |  | 95.2    |  
|Other currencies                                    |  |                                              | 5.9     |   |                                           |  | 0.6     |            |  |  | 5.9        |   |  |  | 0.6     |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|                                                    |  |                                              | 1,034.9 |   |                                           |  | 980.6   |            |  |  | 1,034.9    |   |  |  | 980.6   |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Total (1)                                           |  |                                              | 4,565.4 |   |                                           |  | 3,488.7 |            |  |  | 4,565.4    |   |  |  | 3,488.7 |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Cash and cash equivalents and financial investments |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Brazilian reais                                     |  |                                              | 1,015.9 |   |                                           |  | 1,392.3 |            |  |  | 1,015.9    |   |  |  | 1,392.3 |  
|U.S. dollars                                        |  |                                              | 2,414.8 |   |                                           |  | 1,011.8 |            |  |  | 2,414.8    |   |  |  | 1,011.8 |  
|Euro                                                |  |                                              | 16.0    |   |                                           |  | 11.0    |            |  |  | 16.0       |   |  |  | 11.0    |  
|Other currencies                                    |  |                                              | 91.0    |   |                                           |  | 54.3    |            |  |  | 91.0       |   |  |  | 54.3    |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|                                                    |  |                                              | 3,537.7 |   |                                           |  | 2,469.4 |            |  |  | 3,537.7    |   |  |  | 2,469.4 |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Trade accounts receivable:                          |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Brazilian reais                                     |  |                                              | 65.8    |   |                                           |  | 78.0    |            |  |  | 65.8       |   |  |  | 78.0    |  
|U.S. dollars                                        |  |                                              | 617.8   |   |                                           |  | 508.0   |            |  |  | 617.8      |   |  |  | 508.0   |  
|Euro                                                |  |                                              | 98.7    |   |                                           |  | 116.8   |            |  |  | 98.7       |   |  |  | 116.8   |  
|Other currencies                                    |  |                                              | 1.1     |   |                                           |  | 1.0     |            |  |  | 1.1        |   |  |  | 1.0     |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|                                                    |  |                                              | 783.4   |   |                                           |  | 703.8   |            |  |  | 783.4      |   |  |  | 703.8   |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Total (2)                                           |  |                                              | 4,321.1 |   |                                           |  | 3,173.2 |            |  |  | 4,321.1    |   |  |  | 3,173.2 |  
|                                                    |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Net exposure (12):                                 |  |                                              |         |   |                                           |  |         |            |  |  |            |   |  |  |         |  
|Brazilian reais                                     |  |                                              | (190.2  | ) |                                           |  | (516.9  | )          |  |  | (190.2     | ) |  |  | (516.9  | )
|U.S. dollars                                        |  |                                              | 510.9   |   |                                           |  | 837.3   |            |  |  | 510.9      |   |  |  | 837.3   |  
|Euro                                                |  |                                              | 9.8     |   |                                           |  | 49.8    |            |  |  | 9.8        |   |  |  | 49.8    |  
|Other currencies                                    |  |                                              | (86.2   | ) |                                           |  | (54.7   | )          |  |  | (86.2      | ) |  |  | (54.7   | )

The Company has other financial assets and liabilities that are also influenced by foreign exchange variations
that are not included in the table above. They are used to minimize exposure in the currencies presented.





F-60



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|28.4 | Sensitivity analysis
|---- | --------------------

In order to present positive and negative variations of 25% and
50% in the risk variable considered, a sensitivity analysis of the financial instruments, including derivatives, is presented below describing the effects on the monetary and foreign exchange variations on the financial income and expense determined
on the balances recorded at December 31, 2015, in the event of the occurrence of such variations in the risk component.

However,
statistical simplifications were made in isolating the variability of the risk factors in question. Consequently, the following estimates do not necessarily represent the amounts that might be determined in future financial statements. The use of
different hypotheses and/or methodologies could have a material effect on the estimates presented below.



|28.4.1 | Methodology
|------ | -----------

Assuming that the balances remain constant, the Company calculates the
interest and exchange variation differential for each of the projected scenarios.

Evaluation of the amounts exposed to interest rate risk
considers only the risks for the financial statement. Operations subject to prefixed interest rates were not included. The probable scenario is based on the Companys estimates for each of the variables indicated, and positive and negative
variations of 25% and 50% were applied to the rates in force as of the reporting date.

In the sensitivity analysis of derivative
contracts, positive and negative variations of 25% and 50% were applied to the market yield curve (BM&FBOVESPA) as of the reporting date.



|28.4.2 | Interest risk factor
|------ | --------------------



|                                           |  |            |  |                             |         |   |                                            |  |       |      |  |  |                  |   |  |      |       |   |      |  |       |   |  |  |       |  
|------------------------------------------ |  | ---------- |  | --------------------------- | ------- | - | ------------------------------------------ |  | ----- | ---- |  |  | ---------------- | - |  | ---- | ----- | - | ---- |  | ----- | - |  |  | ----- | -
|                                           |  |            |  |                             |         |   | Additional variations in book balances (*) | 
|                                           |  | Riskfactor |  | Amountsexposed at12.31.2015 |         |   | -50%                                       |  |       | -25% |  |  | Probablescenario |   |  | +25% |       |   | +50% | 
|Cash equivalents and financial investments |  | CDI        |  |                             | 565.8   |   |                                            |  | (39.3 | )    |  |  | (19.0            | ) |  |      | 1.4   |   |      |  | 21.8  |   |  |  | 42.1  |  
|                                           |  |            |  |                             |         |   |                                            |  |       |      |  |  |                  |   |  |      |       |   |      |  |       |   |  |  |       |  
|Net impact                                 |  | CDI        |  |                             | 565.8   |   |                                            |  | (39.3 | )    |  |  | (19.0            | ) |  |      | 1.4   |   |      |  | 21.8  |   |  |  | 42.1  |  
|Cash equivalents and financial investments |  | LIBOR      |  |                             | 1,604.4 |   |                                            |  | (3.9  | )    |  |  | (0.9             | ) |  |      | 2.0   |   |      |  | 5.0   |   |  |  | 8.0   |  
|Loans and financing                        |  | LIBOR      |  |                             | 280.0   |   |                                            |  | 0.7   |      |  |  | 0.2              |   |  |      | (0.4  | ) |      |  | (0.9  | ) |  |  | (1.4  | )
|                                           |  |            |  |                             |         |   |                                            |  |       |      |  |  |                  |   |  |      |       |   |      |  |       |   |  |  |       |  
|Net impact                                 |  | LIBOR      |  |                             | 1,324.4 |   |                                            |  | (3.2  | )    |  |  | (0.7             | ) |  |      | 1.6   |   |      |  | 4.1   |   |  |  | 6.6   |  
|Loans and financing                        |  | TJLP       |  |                             | 22.4    |   |                                            |  | 0.7   |      |  |  | 0.3              |   |  |      | (0.1  | ) |      |  | (0.5  | ) |  |  | (0.9  | )
|                                           |  |            |  |                             |         |   |                                            |  |       |      |  |  |                  |   |  |      |       |   |      |  |       |   |  |  |       |  
|Net impact                                 |  | TJLP       |  |                             | (22.4   | ) |                                            |  | 0.7   |      |  |  | 0.3              |   |  |      | (0.1  | ) |      |  | (0.5  | ) |  |  | (0.9  | )
|Rates considered                           |  | CDI        |  |                             | 14.15   | % |                                            |  | 7.20  | %    |  |  | 10.80            | % |  |      | 14.40 | % |      |  | 18.00 | % |  |  | 21.60 | %
|Rates considered                           |  | LIBOR      |  |                             | 0.61    | % |                                            |  | 0.37  | %    |  |  | 0.56             | % |  |      | 0.74  | % |      |  | 0.93  | % |  |  | 1.11  | %
|Rates considered                           |  | TJLP       |  |                             | 6.50    | % |                                            |  | 3.50  | %    |  |  | 5.25             | % |  |      | 7.00  | % |      |  | 8.75  | % |  |  | 10.50 | %



|(*) | The positive and negative variations of 25% and 50% were applied on the rates in effect at 12.31.2015
|--- | -----------------------------------------------------------------------------------------------------



|28.4.3 | Foreign exchange risk factor
|------ | ----------------------------



|                                                 |  |            |     |        |                             |  |         |                                            |  |  |        |        |  |                  |        |        |      |  |       |        |  |  |        |        |  |  |        |  
|------------------------------------------------ |  | ---------- | --- | ------ | --------------------------- |  | ------- | ------------------------------------------ |  |  | ------ | ------ |  | ---------------- | ------ | ------ | ---- |  | ----- | ------ |  |  | ------ | ------ |  |  | ------ | -
|                                                 |  |            |     |        |                             |  |         | Additional variations in book balances (*) | 
|                                                 |  | Riskfactor |     |        | Amountsexposed at12.31.2015 |  |         | -50%                                       |  |  | -25%   |        |  | Probablescenario |        |        | +25% |  |       | +50%   | 
|Assets                                           |  |            |     |        |                             |  | 1,359.4 |                                            |  |  | 645.7  |        |  |                  | 288.9  |        |      |  | (68.0 | )      |  |  | (424.8 | )      |  |  | (781.6 | )
|Cash, cash equivalents and financial investments |  |            | BRL |        |                             |  | 1,015.9 |                                            |  |  | 482.5  |        |  |                  | 215.9  |        |      |  | (50.8 | )      |  |  | (317.5 | )      |  |  | (584.1 | )
|Other assets                                     |  |            | BRL |        |                             |  | 343.5   |                                            |  |  | 163.2  |        |  |                  | 73.0   |        |      |  | (17.2 | )      |  |  | (107.3 | )      |  |  | (197.5 | )
|Liabilities                                      |  |            |     |        |                             |  | 1,427.9 |                                            |  |  | (678.2 | )      |  |                  | (303.4 | )      |      |  | 71.4  |        |  |  | 446.2  |        |  |  | 820.9  |  
|Loans and financing                              |  |            | BRL |        |                             |  | 807.6   |                                            |  |  | (383.6 | )      |  |                  | (171.6 | )      |      |  | 40.4  |        |  |  | 252.4  |        |  |  | 464.3  |  
|Other liabilities                                |  |            | BRL |        |                             |  | 620.3   |                                            |  |  | (294.6 | )      |  |                  | (131.8 | )      |      |  | 31.0  |        |  |  | 193.8  |        |  |  | 356.6  |  
|                                                 |  |            |     |        |                             |  |         |                                            |  |  |        |        |  |                  |        |        |      |  |       |        |  |  |        |        |  |  |        |  
|Net impact                                       |  |            |     |        |                             |  | (68.5   | )                                          |  |  | (32.5  | )      |  |                  | (14.5  | )      |      |  | 3.4   |        |  |  | 21.4   |        |  |  | 39.3   |  
|Exchange rate considered                         |  |            |     | 3.9048 |                             |  |         | 2.0500                                     |  |  |        | 3.0750 |  |                  |        | 4.1000 |      |  |       | 5.1250 |  |  |        | 6.1500 | 



|(*) | The positive and negative variations of 25% and 50% were applied on the rates in effect at 12.31.2015
|--- | -----------------------------------------------------------------------------------------------------



F-61



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|28.4.4 | Derivative contracts
|------ | --------------------



|                               |  |               |  |                             |        |   |                                            |  |        |      |  |  |                  |   |  |      |        |   |      |  |        |   |  |  |        |  
|------------------------------ |  | ------------- |  | --------------------------- | ------ | - | ------------------------------------------ |  | ------ | ---- |  |  | ---------------- | - |  | ---- | ------ | - | ---- |  | ------ | - |  |  | ------ | -
|                               |  |               |  |                             |        |   | Additional variations in book balances (*) | 
|                               |  | Risk factor   |  | Amountsexposed at12.31.2015 |        |   | -50%                                       |  |        | -25% |  |  | Probablescenario |   |  | +25% |        |   | +50% | 
|Interest swap                  |  | LIBOR         |  |                             | 12.8   |   |                                            |  |       |      |  |  |                 |   |  |      |       |   |      |  |       |   |  |  |       |  
|Interest swapfair value hedge |  | CDI           |  |                             | (9.0   | ) |                                            |  | 30.6   |      |  |  | 14.1             |   |  |      | (0.9   | ) |      |  | (12.3  | ) |  |  | (23.0  | )
|Interest swap                  |  | CDI           |  |                             | (2.4   | ) |                                            |  | 3.9    |      |  |  | 1.9              |   |  |      | (0.1   | ) |      |  | (1.7   | ) |  |  | (3.4   | )
|Hedge designated as cash flow  |  | US$/R$        |  |                             | 0.8    |   |                                            |  | 117.9  |      |  |  | 36.5             |   |  |      | (1.7   | ) |      |  | (11.1  | ) |  |  | (37.2  | )
|Foreign Exchange option        |  | Object -price |  |                             | 0.3    |   |                                            |  | (0.7   | )    |  |  | (0.6             | ) |  |      | (0.5   | ) |      |  | (0.3   | ) |  |  | (0.2   | )
|Other derivatives              |  | Preço-objeto  |  |                             | (0.4   | ) |                                            |  | 13.9   |      |  |  | 5.1              |   |  |      | 0.7    |   |      |  | (1.9   | ) |  |  | (3.6   | )
|                               |  |               |  |                             |        |   |                                            |  |        |      |  |  |                  |   |  |      |        |   |      |  |        |   |  |  |        |  
|Total                          |  |               |  |                             | 2.1    |   |                                            |  | 165.6  |      |  |  | 57.0             |   |  |      | (2.5   | ) |      |  | (27.3  | ) |  |  | (67.4  | )
|Rate considered                |  | LIBOR         |  |                             | 0.61   | % |                                            |  | 0.37   | %    |  |  | 0.56             | % |  |      | 0.74   | % |      |  | 0.93   | % |  |  | 1.11   | %
|Rate considered                |  | CDI           |  |                             | 14.15  | % |                                            |  | 7.20   | %    |  |  | 10.80            | % |  |      | 14.40  | % |      |  | 18.00  | % |  |  | 21.60  | %
|Rate considered                |  | US$/R$        |  |                             | 3.9048 |   |                                            |  | 2.0500 |      |  |  | 3.0750           |   |  |      | 4.1000 |   |      |  | 5.1250 |   |  |  | 6.1500 |  
|Object-price considered        |  | Object -price |  |                             | 1.09   |   |                                            |  | 0.53   |      |  |  | 0.80             |   |  |      | 1.06   |   |      |  | 1.33   |   |  |  | 1.59   |  



|(*) | The positive and negative variations of 25% and 50% were applied on the rates in effect at 12.31.2015
|--- | -----------------------------------------------------------------------------------------------------



|28.4.5 | Residual Value Guarantees
|------ | -------------------------

The residual value guarantees are reported in a manner
similar to financial derivative instruments.

Based on residual value guarantee contracts in force, the Company ascertains any changes in
values based on third party appraisals. The probable scenario is based on the Companys expectation of recording the provisions on a statistical basis, and the positive and negative variations of 25% and 50% have been applied to the third party
appraisals at the balance sheet date.



|                                      |  |                             |      |  |                                        |  |        |      |  |  |                  |   |  |      |      |   |      |  |      |  |  |  |      | 
|------------------------------------- |  | --------------------------- | ---- |  | -------------------------------------- |  | ------ | ---- |  |  | ---------------- | - |  | ---- | ---- | - | ---- |  | ---- |  |  |  | ---- | 
|                                      |  |                             |      |  | Additional variations in book balances | 
|                                      |  | Amountsexposed at12.31.2015 |      |  | -50%                                   |  |        | -25% |  |  | Probablescenario |   |  | +25% |      |   | +50% | 
|Financial guarantee of residual value |  |                             | 94.7 |  |                                        |  | (165.9 | )    |  |  | (107.4           | ) |  |      | (0.7 | ) |      |  | 56.2 |  |  |  | 69.3 | 
|                                      |  |                             |      |  |                                        |  |        |      |  |  |                  |   |  |      |      |   |      |  |      |  |  |  |      | 
|Total                                 |  |                             | 94.7 |  |                                        |  | (165.9 | )    |  |  | (107.4           | ) |  |      | (0.7 | ) |      |  | 56.2 |  |  |  | 69.3 | 
|                                      |  |                             |      |  |                                        |  |        |      |  |  |                  |   |  |      |      |   |      |  |      |  |  |  |      | 

If a provision is considered insufficient to cover the probable execution of the guarantees, it is increased
to adjust it to the Companys exposure at the reporting period.



|29. | Shareholders equity
|--- | --------------------



|29.1 | Capital
|---- | -------

The authorized capital is divided into 1,000,000,000 common shares. The
Companys subscribed and paid up capital at December 31, 2015 was US$ 1,438.0 and was comprised of 740,465,044 common shares, without par value, of which 3,513,740 shares were held in Treasury.



|29.2 | Brazilian Government Golden Share
|---- | ---------------------------------

The Federal Government holds one golden
share with the same voting rights as other holders of common shares but which grants it certain additional rights as established in article 9 of the Companys bylaws, including veto rights over decisions pertaining to the following
matters:

IChange of the Companys name or its corporate objective;

IIAlteration and/or application of the Companys logo;



F-62



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





IIICreation and/or modification of military programs (whether or not the Federal
Republic of Brazil is involved);

IVTraining third parties in technology for military programs;

VInterruption of the supply of maintenance and spare parts for military aircraft;

VITransfer of control of the Companys stock control; and

VIIAny changes in (i) article 9 of the Companys bylaws, article 4, the main clause of art. 10, articles 11, 14 e 15, sub-item
III of art. 18, paragraphs 1 and 2 of art. 27, sub-item X of art. 33, sub-item XII of art. 39 or Chapter VII of the Companys bylaws, or (ii) the rights attributed by the bylaws to the special class share.



|29.3 | Treasury Shares
|---- | ---------------

Common shares acquired by April 4, 2008, using resources from the
investment reserve and working capital. This operation was conducted in accordance with rules approved by the Statutory Board of Directors in a meeting held on December 7, 2007 and corresponds to 3,513,740 common shares and US$ 38.4 as of
December 31, 2015. These shares lose voting and economic rights during the period in which they are held in Treasury.



|                                      |  |     |       |   |          |  |            |                 |  |  |       | 
|------------------------------------- |  | --- | ----- | - | -------- |  | ---------- | --------------- |  |  | ----- | 
|                                      |  | USD |       |   | Quantity |  |            | Sharevalue(USD) | 
|In the beggining of the year          |  |     | 60.1  |   |          |  | 5,494,583  |                 |  |  | 10.94 | 
|Used for share based compensation (i) |  |     | (21.7 | ) |          |  | (1,980,843 | )               |  |  | 10.94 | 
|                                      |  |     |       |   |          |  |            |                 |  |  |       | 
|At December 31, 2015                  |  |     | 38.4  |   |          |  | 3,513,740  |                 |  |  | 10.94 | 
|                                      |  |     |       |   |          |  |            |                 |  |  |       | 



|(i) | The beneficiaries of the shares used in the share-based compensation plan include the Statutory Board of Directors, Executive Directors and certain employees.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------

At December 31, 2015, the market value of the shares held in Treasury was US$ 25.9 (December 31, 2014US$ 50.6).



|29.4 | Investment subsidy reserve
|---- | --------------------------

This reserve was formed pursuant to article 195-A of
Brazilian Corporate Law (as amended by Law 11,638, of 2007) and corresponds to the appropriation of the portion of retained earnings derived from government subsidies received by the Company, which cannot be distributed to shareholders in the form
of dividends, recognized in the statements of income in the same line as the investments.

These subsidies are not included in the
calculation of the minimum mandatory dividends.



|29.5 | Statutory reserve
|---- | -----------------

The statutory reserve is recorded annually as an appropriation of 5%
of the net income for the year. The reserve may not exceed 20% of capital, or 30% of capital and capital reserves.



|29.6 | Interest on own capital
|---- | -----------------------

Interest on own capital is allocated to dividends and approved
by the Statutory Board of Directors as follows:



| |  |  | In meeting held on March 03, 2015, the Statutory Board of Directors approved the distribution of interest on own capital for the first quarter of 2015 in the amount of US$ 9.2, corresponding to US$ 0.01 per
share. Payment of interest on own capital is subject to withholding tax at 15%. The payment was made on April 14, 2015.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | In meeting held on June 11, 2015, the Statutory Board of Directors approved the distribution of interest on own capital for the second quarter of 2015 in the amount of US$ 9.5, corresponding to US$ 0.01 per
share. The interest on own capital payment is subject to 15% of income tax. The payment was made on July 13, 2015.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | In meeting held on August 06, 2015, the Statutory Board of Directors approved the distribution of interest on own capital for the fourth quarter of 2015 in the amount of US$ 8.3, corresponding to US$ 0.01 per
share. The interest on own capital payment is subject to 15% of income tax. The payment was made on October 14, 2015.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-63



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





| |  |  | In meeting held on December 10, 2015, the Statutory Board of Directors approved the distribution of interest on own capital for the fourth quarter of 2015 in the amount of US$ 7.6, corresponding to US$
0.01 per share. The interest on own capital payment is subject to 15% of income tax. The payment was made on January 13, 2016.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Interest on own capital approved or paid during the ínterim periods is treated as an advance on the mandatory dividends and is adjusted
in the last quarter of the year to total a 25% participation in the companys results in accordance with the bylaws.



|29.7 | Proposed dividends
|---- | ------------------

The determination of the annual dividends,
subject to the approval of the shareholders at the Annual General Meeting, is presented in reais as Brazilian Corporate Law establishes that all dividends are determined and paid based on actual amounts in the legal books, as shown below:



|                                                               |  |            |       |   |            |  |       |            |  |  |       |  
|-------------------------------------------------------------- |  | ---------- | ----- | - | ---------- |  | ----- | ---------- |  |  | ----- | -
|Brazilian millionReais                                         |  | 31.12.2015 |       |   | 12.31.2014 |  |       | 12.31.2013 | 
|Net income for the year                                        |  |            | 241.6 |   |            |  | 796.1 |            |  |  | 777.7 |  
|Investment Subsidy                                             |  |            | (2.5  | ) |            |  | (1.6  | )          |  |  | (6.2  | )
|Legal Reserve                                                  |  |            | (12.1 | ) |            |  | (39.8 | )          |  |  | (38.9 | )
|                                                               |  |            |       |   |            |  |       |            |  |  |       |  
|                                                               |  |            | 227.0 |   |            |  | 754.7 |            |  |  | 732.6 |  
|                                                               |  |            |       |   |            |  |       |            |  |  |       |  
|Minimun mandatory dividend (25%)                               |  |            | 56.7  |   |            |  | 188.7 |            |  |  | 183.2 |  
|                                                               |  |            |       |   |            |  |       |            |  |  |       |  
|Dividends:                                                     |  |            |       |   |            |  |       |            |  |  |       |  
|Interest on own capital, net of tax                            |  |            | 76.5  |   |            |  | 172.6 |            |  |  | 134.2 |  
|Proposed dividends                                             |  |            |      |   |            |  | 16.1  |            |  |  | 49.0  |  
|Interest on own capital, exceeding of the minimum required (i) |  |            | 25.5  |   |            |  |      |            |  |  |      |  
|                                                               |  |            |       |   |            |  |       |            |  |  |       |  
|Total stockholder remuneration                                 |  |            | 102.0 |   |            |  | 188.7 |            |  |  | 183.2 |  
|Payments of the year                                           |  |            | (76.5 | ) |            |  | (95.8 | )          |  |  | (76.6 | )
|                                                               |  |            |       |   |            |  |       |            |  |  |       |  
|Total shareholders remuneration of period                      |  |            | 25.5  |   |            |  | 92.9  |            |  |  | 106.6 |  
|Total shareholders remuneration of previous period             |  |            | 0.1   |   |            |  | 0.1   |            |  |  | 0.1   |  
|                                                               |  |            |       |   |            |  |       |            |  |  |       |  
|Total shareholders remunerationin millions of Brazilian reais |  |            | 25.6  |   |            |  | 92.9  |            |  |  | 106.7 |  
|                                                               |  |            |       |   |            |  |       |            |  |  |       |  
|Total shareholders remunerationin millions of US$             |  |            | 6.6   |   |            |  | 35.0  |            |  |  | 45.5  |  



|29.7.1 | Investment and working capital reserve
|------ | --------------------------------------

The purpose of this reserve is to shield
funds which might otherwise be subject to distribution and are earmarked for: (i) investments in property, plant and equipment, without detriment to retained earnings, pursuant to art. 196 of Law 6,404/76; and (ii) the Companys
working capital (iii) redeem, reimburse or purchase shares of the Company and (iv) be distributed to the shareholders.



|29.7.2 | Other Comprehensive Income
|------ | --------------------------

Consists of the following adjustments:



| |  |  | Profit or loss on operations with non-controlling interests: refers to non-controlling interests of the Companys subsidiaries.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------



| |  |  | Gains (losses) on post-employment benefits: refers to actuarial gains (losses) on healthcare plans sponsored by the Company;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------



| |  |  | Cumulative translation adjustment: foreign exchange gains/losses resulting from translation of the consolidated financial statements in the functional currency to the presentation currency (Real) and foreign exchange
gains/losses resulting from translation of the foreign subsidiaries financial statements, measured in other functional currencies to the Companys functional currency (dollar); and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Other comprehensive income: unrealized actuarial gains (losses) resulting from the healthcare plans sponsored by the Company and the fair value variation of financial instruments available for sale.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-64



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|30. | Share-based compensation
|--- | ------------------------

In February 2014, the Board of Directors approved the revision
of the Executive Remuneration Policy (ERP), applicable to all executive officers and other Company executives. The elements of executive compensation include the Long Term Incentive (LTI) main objectives of which are (i) to maintain and attract
highly qualified personnel for the Company, (ii) assure people that can contribute to improving the Companys performance of the right to participate in the results of their contribution, (iii) in addition to ensuring the continuity
of the Companys management by aligning the interests of executives with those of shareholders. The Company currently has two LTI modes: stock options and virtual shares.



|30.1. | Stock Option
|----- | ------------

Program for the granting of stock options, for the
executives of the Company or its subsidiaries, who may exercise their right in two ways: grants awarded to 2011: I) 20% after 1 year, II) 30% after 2 years and III) 50% after 3 years; and grants awarded from 2012: I) 33% after 3 years, II) 33% after
4 years and III) 34% after 5 years, all in relation to the grant date of each option.

The exercise price of each option is set on the
grant date at the weighted average stock option price of the last sixty trading days, and may be adjusted by up to 30% to offset any speculation. The participant will have a maximum exercise period of five years for option granted to 2011 and seven
years for the others, starting from the grant date.

The grants awarded are summarized below:



|                           |  |                                   |           |  |           |  |            |              |  |  |             |   |  |           |           |  |                                  |  |        |                                   |  |  |       |  |  |  |       | 
|-------------------------- |  | --------------------------------- | --------- |  | --------- |  | ---------- | ------------ |  |  | ----------- | - |  | --------- | --------- |  | -------------------------------- |  | ------ | --------------------------------- |  |  | ----- |  |  |  | ----- | 
|                           |  | 12.31.2015in thousands of options |           |  |           |  |            |              | 
|                           |  | Grants                            |           |  | Exercised |  |            | Canceled (i) |  |  | Outstanding |   |  | Exercible |           |  | WeightedaverageexercisePrice (R$ |  |        | WeightedaverageexercisePrice(US$) | 
|Grants on January 23, 2012 |  |                                   | 4,860,000 |  |           |  | (1,335,260 | )            |  |  | (630,000    | ) |  |           | 2,894,740 |  |                                  |  | 60,640 |                                   |  |  | 11.50 |  |  |  | 11.50 | 
|Grants on March 20, 2013   |  |                                   | 4,494,000 |  |           |  | (270,000   | )            |  |  | (609,000    | ) |  |           | 3,615,000 |  |                                  |  |       |                                   |  |  | 15.71 |  |  |  | 15.71 | 
|                           |  |                                   |           |  |           |  |            |              |  |  |             |   |  |           |           |  |                                  |  |        |                                   |  |  |       |  |  |  |       | 
|As of December 31, 2015    |  |                                   | 9,354,000 |  |           |  | (1,605,260 | )            |  |  | (1,239,000  | ) |  |           | 6,509,740 |  |                                  |  | 60,640 |                                   |  |  |       |  |  |  |       | 
|                           |  |                                   |           |  |           |  |            |              |  |  |             |   |  |           |           |  |                                  |  |        |                                   |  |  |       |  |  |  |       | 



|(i) | The cancellations refer to shares granted to executives or employees who no longer work for the Company. Additionally, on April 16, 2014, there was a cancellation of the grants awarded to members of the Board of
Directors, with payment of compensation to plan participants.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|30.2. | Phantom shares plan
|----- | -------------------

The new model is based on the granting of virtual shares to
directors and managers and the main objective is to attract and keep in the Company and its subsidiaries, highly qualified staff to ensure continuity of management and align the interests of directors and key personnel of the Company and controlled
entities to those of the Companys shareholders.

The value of the LTI will be converted at the average price of the Companys
shares considering the last 30 trading days by determining the quantity of virtual shares allocated to each participant, divided into two classes, with 50% in the form of restricted virtual shares and 50% in the form of virtual performance shares.
The Company will pay the LTI by converting the quantity of virtual shares into Reais at the average quoted price (weighted by trading volume) of the Companys shares in the last 10 trading days, as follows:



| |  |  | restricted virtual shares: (i) 33% on the third anniversary of the grant date; (ii) 33% on the fourth anniversary of the grant date, and (iii) 34% on the fifth anniversary of the grant date; and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Virtual performance AP: 100% on the third anniversary of the grant date, provided the economic value added EVA accumulated in the three preceding years is positive.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

The amounts resulting from conversion of virtual shares will be added to the amounts equivalent to dividends and interest on own capital
effectively paid by the Company during the vesting period.



F-65



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





The fair value of virtual shares is determined based on the average price (weighted by
trading volume) of the Companys shares for the last 10 trading days prior to the close of the period, applied to the number of virtual shares assigned to each participant in proportion to the vesting period.



| |  |  | On February 25, 2014, the Company granted an LTI of US$ 13.0, equivalent to 1,570,698 virtual shares, whose fair value at December 31, 2015 totaled US$ 6.6, equivalent to 892,567 virtual shares.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | On March 03, 2015, the Company granted an LTI of US$ 10.4, equivalent to 1,237,090 virtual shares, whose fair value at December 31, 2015 totaled US$ 2.2, equivalent to 306,094 virtual shares.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|31. | Earnings per Share
|--- | ------------------



|31.1 | Basic
|---- | -----

Basic earnings per common share is computed by dividing
net income for the year by the weighted average number of shares outstanding during the period, excluding shares acquired by the Company and held in Treasury.



|                                                 |  |            |         |  |            |  |         |            |  |  |         | 
|------------------------------------------------ |  | ---------- | ------- |  | ---------- |  | ------- | ---------- |  |  | ------- | 
|                                                 |  | 12.31.2015 |         |  | 12.31.2014 |  |         | 12.31.2013 | 
|Net income attributable to owners of Embraer     |  |            | 69.2    |  |            |  | 334.7   |            |  |  | 342.0   | 
|Weighted average number of shares (in thousands) |  |            | 730,205 |  |            |  | 733,677 |            |  |  | 729,001 | 
|                                                 |  |            |         |  |            |  |         |            |  |  |         | 
|Basic earnings per shareU.S. dollars            |  |            | 0.0947  |  |            |  | 0.4562  |            |  |  | 0.4691  | 



|31.2 | Diluted
|---- | -------

Diluted earnings per share are calculated by adjusting
the weighted average number of common shares outstanding to assume conversion of all potentially dilutive shares. The Company has only one category of potentially dilutive shares, with options to purchase shares, for which a calculation is made to
determine the number of shares that could be acquired at fair value (determined as the average market price of the Companys share), based on the monetary value of subscription rights attached options to purchase shares in circulation. The
number of shares calculated as described above is compared with the number of shares issued, assuming the exercise of share purchase options.



|                                                              |  |            |         |  |            |  |         |            |  |  |         | 
|------------------------------------------------------------- |  | ---------- | ------- |  | ---------- |  | ------- | ---------- |  |  | ------- | 
|                                                              |  | 12.31.2015 |         |  | 12.31.2014 |  |         | 12.31.2013 | 
|Net income attributable to owners of Embraer                  |  |            | 69.2    |  |            |  | 334.7   |            |  |  | 342.0   | 
|Weighted average number of shares (in thousands)diluted      |  |            | 730,205 |  |            |  | 733,677 |            |  |  | 729,001 | 
|                                                              |  |            |         |  |            |  |         |            |  |  |         | 
|Dilution for the issuance of stock options (in thousands) (i) |  |            | 3,364   |  |            |  | 3,786   |            |  |  | 4,795   | 
|Weighted average number of shares (in thousands)diluted      |  |            | 733,569 |  |            |  | 737,463 |            |  |  | 733,796 | 
|Diluted earnings per shareU.S. dollars                       |  |            | 0.0943  |  |            |  | 0.4538  |            |  |  | 0.4661  | 



|(i) | Refers to the effect of potentially dilutive shares for December 31, 2015.
|--- | --------------------------------------------------------------------------

At
December 31, 2015, there were no anti-dilutive effects.



F-66



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|32. | Revenue (expenses) by type
|--- | --------------------------

The Company opted to present the statements of income by
function. The table below shows the detailed costs and expenses by nature:



|                                         |  |            |          |   |            |  |          |            |  |  |          |  
|---------------------------------------- |  | ---------- | -------- | - | ---------- |  | -------- | ---------- |  |  | -------- | -
|                                         |  | 12.31.2015 |          |   | 12.31.2014 |  |          | 12.31.2013 | 
|As presented as statements of Income:    |  |            |          |   |            |  |          |            |  |  |          |  
|Revenue                                  |  |            | 5,928.1  |   |            |  | 6,288.8  |            |  |  | 6,235.0  |  
|Cost of sales and services               |  |            | (4,816.8 | ) |            |  | (5,038.3 | )          |  |  | (4,818.9 | )
|Administrative                           |  |            | (182.0   | ) |            |  | (207.5   | )          |  |  | (210.5   | )
|Selling                                  |  |            | (361.6   | ) |            |  | (419.9   | )          |  |  | (454.4   | )
|Research                                 |  |            | (41.7    | ) |            |  | (47.1    | )          |  |  | (74.7    | )
|Other income (expenses), net             |  |            | (194.2   | ) |            |  | (32.6    | )          |  |  | 36.9     |  
|Equity in losses on associates           |  |            | (0.3     | ) |            |  | (0.1     | )          |  |  |         |  
|                                         |  |            |          |   |            |  |          |            |  |  |          |  
|Operating profit before financial income |  |            | 331.5    |   |            |  | 543.3    |            |  |  | 713.4    |  
|                                         |  |            |          |   |            |  |          |            |  |  |          |  
|Revenue (expenses) by nature:            |  |            |          |   |            |  |          |            |  |  |          |  
|Revenue from sales of goods              |  |            | 5,268.6  |   |            |  | 5,310.1  |            |  |  | 5,399.7  |  
|Revenue from sales of services           |  |            | 769.4    |   |            |  | 1,102.4  |            |  |  | 955.4    |  
|Sales deductions and tax on revenue      |  |            | (109.9   | ) |            |  | (123.7   | )          |  |  | (120.1   | )
|Material cost                            |  |            | (4,500.0 | ) |            |  | (4,752.0 | )          |  |  | (4,528.3 | )
|Depreciation                             |  |            | (161.9   | ) |            |  | (168.9   | )          |  |  | (145.8   | )
|Amortization                             |  |            | (154.9   | ) |            |  | (117.4   | )          |  |  | (144.8   | )
|Personnel expenses                       |  |            | (294.9   | ) |            |  | (320.3   | )          |  |  | (340.0   | )
|Selling expenses                         |  |            | (66.4    | ) |            |  | (82.2    | )          |  |  | (113.3   | )
|Other operating (expense) income         |  |            | (418.5   | ) |            |  | (304.7   | )          |  |  | (249.4   | )
|                                         |  |            |          |   |            |  |          |            |  |  |          |  
|Operating profit before financial income |  |            | 331.5    |   |            |  | 543.3    |            |  |  | 713.4    |  
|                                         |  |            |          |   |            |  |          |            |  |  |          |  



|33. | Other operating income (expense), net
|--- | -------------------------------------



|                                             |  |            |        |   |            |  |       |            |  |  |       |  
|-------------------------------------------- |  | ---------- | ------ | - | ---------- |  | ----- | ---------- |  |  | ----- | -
|                                             |  | 12.31.2015 |        |   | 12.31.2014 |  |       | 12.31.2013 | 
|Contractual fines revenue(i)                 |  |            | 17.3   |   |            |  | 31.6  |            |  |  | 40.8  |  
|Royalties                                    |  |            | 12.9   |   |            |  | 12.3  |            |  |  | 11.5  |  
|Recovery of expenses                         |  |            | 10.4   |   |            |  | 12.1  |            |  |  | 11.0  |  
|Extemporaneous credits(ii)                   |  |            | 8.4    |   |            |  |      |            |  |  |      |  
|Other sales                                  |  |            | 7.9    |   |            |  | 7.3   |            |  |  | 6.4   |  
|Provision for contingencies                  |  |            | 0.6    |   |            |  | (4.0  | )          |  |  | (14.9 | )
|Post-retirement benefits                     |  |            | 1.1    |   |            |  | 29.1  |            |  |  |      |  
|Aircraft maintenance third parties           |  |            |       |   |            |  |      |            |  |  | (1.0  | )
|Refis Installments (tax recovery program)    |  |            |       |   |            |  |      |            |  |  | (37.0 | )
|Environmental provision                      |  |            | (1.0   | ) |            |  | (2.1  | )          |  |  | (5.8  | )
|Pre operating expenses                       |  |            | (0.6   | ) |            |  | (0.2  | )          |  |  | (1.4  | )
|Product modifications                        |  |            | (3.3   | ) |            |  | (4.6  | )          |  |  | (3.7  | )
|Flight safety standards                      |  |            | (4.4   | ) |            |  | (5.2  | )          |  |  | (3.8  | )
|Aircraft maintenance and flights costsfleet |  |            | (4.7   | ) |            |  | (4.6  | )          |  |  | (2.9  | )
|Expenses system project                      |  |            | (9.5   | ) |            |  | (16.8 | )          |  |  | (17.6 | )
|Training and development                     |  |            | (10.8  | ) |            |  | (12.1 | )          |  |  | (14.1 | )
|Contractual fines(iii)                       |  |            | (11.5  | ) |            |  | (17.1 | )          |  |  | (2.8  | )
|Gain on disposal of assets(iv)               |  |            | (22.4  | ) |            |  |      |            |  |  | (3.5  | )
|Taxes on other outputs                       |  |            | (33.5  | ) |            |  | (37.6 | )          |  |  | (30.8 | )
|Assets devaluation(v)                        |  |            | (44.4  | ) |            |  | (10.4 | )          |  |  | (14.2 | )
|Corporate projects                           |  |            | (52.4  | ) |            |  | (21.4 | )          |  |  | (11.4 | )
|Financial guarantee(vi)                      |  |            | (100.9 | ) |            |  | 28.2  |            |  |  | 152.7 |  
|Others                                       |  |            | 46.6   |   |            |  | (17.1 | )          |  |  | (20.6 | )
|                                             |  |            |        |   |            |  |       |            |  |  |       |  
|                                             |  |            | (194.2 | ) |            |  | (32.6 | )          |  |  | 36.9  |  
|                                             |  |            |        |   |            |  |       |            |  |  |       |  



|(i) | Substantially fines charged to customers for cancellation of sales contracts, mainly in the executive segment, in accordance with the contract.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------

|(ii) | Refers to extemporaneous PIS and Cofins tax credits which are recognized when the Company meets the legal and documentary conditions for such credits.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) | Refers to contractual penalties to be paid to customers and suppliers due to failure to comply with contractual conditions.
|----- | ---------------------------------------------------------------------------------------------------------------------------

|(iv) | Refers to losses incurred in the monetization of assets of 16 aircraft in the subsidiary ECC Leasing. The operation relates to a realization of assets in the financial market for the sale of the lease cash flows and
transfer of the aircraft to the buyer.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(v) | Impairment of assets related to certain aircraft in fixed assets (Note 16.2.), with the residual value and minimum lease payments in collateralized accounts receivable (Note 10.1).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(vi) | In 2015 were made additional provision regarding financial guarantees because of exposure caused by customers in reorganization (Chapter 11) process as described on Note 25.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-67



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|34. | Financial income (expense), net
|--- | -------------------------------



|                                                                |  |            |        |   |            |  |        |            |  |  |        |  
|--------------------------------------------------------------- |  | ---------- | ------ | - | ---------- |  | ------ | ---------- |  |  | ------ | -
|                                                                |  | 12.31.2015 |        |   | 12.31.2014 |  |        | 12.31.2013 | 
|Financial income:                                               |  |            |        |   |            |  |        |            |  |  |        |  
|Interest on cash and cash equivalents and financial investments |  |            | 146.9  |   |            |  | 145.9  |            |  |  | 106.1  |  
|Interest on receivables                                         |  |            | 38.5   |   |            |  | 29.1   |            |  |  | 31.9   |  
|Taxes over financial revenue                                    |  |            | (6.6   | ) |            |  |       |            |  |  |       |  
|Other                                                           |  |            | 2.0    |   |            |  | 2.6    |            |  |  | 19.8   |  
|                                                                |  |            |        |   |            |  |        |            |  |  |        |  
|Total financial income                                          |  |            | 180.8  |   |            |  | 177.6  |            |  |  | 157.8  |  
|                                                                |  |            |        |   |            |  |        |            |  |  |        |  
|Financial expenses:                                             |  |            |        |   |            |  |        |            |  |  |        |  
|IOF(tax on financial transactions)                             |  |            | (2.0   | ) |            |  | (3.1   | )          |  |  | (3.5   | )
|Financial restructuring costs                                   |  |            | (0.7   | ) |            |  | (1.0   | )          |  |  | (1.9   | )
|Interest on taxes, social charges and contributions             |  |            | (12.4  | ) |            |  | (52.1  | )          |  |  | (34.9  | )
|Residual value guarantee                                        |  |            | (13.6  | ) |            |  | (19.1  | )          |  |  | (79.7  | )
|Interest on loans and financing                                 |  |            | (164.6 | ) |            |  | (133.0 | )          |  |  | (128.3 | )
|Other                                                           |  |            | (10.6  | ) |            |  | 15.0   |            |  |  | (11.2  | )
|                                                                |  |            |        |   |            |  |        |            |  |  |        |  
|Total financial expenses                                        |  |            | (203.9 | ) |            |  | (193.3 | )          |  |  | (259.5 | )
|                                                                |  |            |        |   |            |  |        |            |  |  |        |  
|Derivative instruments                                          |  |            | 0.2    |   |            |  | (8.8   | )          |  |  | 5.3    |  
|                                                                |  |            |        |   |            |  |        |            |  |  |        |  
|Financial income (expenses), net                                |  |            | (22.9  | ) |            |  | (24.5  | )          |  |  | (96.4  | )
|                                                                |  |            |        |   |            |  |        |            |  |  |        |  



|35. | Foreign exchange gains (losses), net
|--- | ------------------------------------



|                                                    |  |            |        |   |            |  |        |            |  |  |        |  
|--------------------------------------------------- |  | ---------- | ------ | - | ---------- |  | ------ | ---------- |  |  | ------ | -
|                                                    |  | 12.31.2015 |        |   | 12.31.2014 |  |        | 12.31.2013 | 
|Monetary and foreign exchange variations            |  |            |        |   |            |  |        |            |  |  |        |  
|Assets:                                             |  |            |        |   |            |  |        |            |  |  |        |  
|Cash and cash equivalents and financial investments |  |            | (374.0 | ) |            |  | (164.6 | )          |  |  | (189.4 | )
|Tax credits                                         |  |            | (67.9  | ) |            |  | (24.9  | )          |  |  | (24.2  | )
|Trade accounts receivable                           |  |            | (13.8  | ) |            |  | (28.5  | )          |  |  | (8.0   | )
|Other                                               |  |            | (54.7  | ) |            |  | (26.5  | )          |  |  | (30.4  | )
|                                                    |  |            |        |   |            |  |        |            |  |  |        |  
|                                                    |  |            | (510.4 | ) |            |  | (244.5 | )          |  |  | (252.0 | )
|                                                    |  |            |        |   |            |  |        |            |  |  |        |  
|Liabilities:                                        |  |            |        |   |            |  |        |            |  |  |        |  
|Loans and financing                                 |  |            | 278.9  |   |            |  | 106.8  |            |  |  | 109.9  |  
|Advances from customers                             |  |            | 63.9   |   |            |  | 10.8   |            |  |  | 48.6   |  
|Taxes and charges payable                           |  |            | 71.8   |   |            |  | 37.2   |            |  |  | 52.5   |  
|Provisions                                          |  |            | 59.4   |   |            |  | 34.4   |            |  |  | 27.5   |  
|Accounts payable                                    |  |            | 39.3   |   |            |  | 33.4   |            |  |  | (1.0   | )
|Suppliers                                           |  |            | 20.5   |   |            |  | 5.6    |            |  |  | 6.6    |  
|Provisions for contingencies                        |  |            | 8.8    |   |            |  | 5.6    |            |  |  | 4.6    |  
|Deferred taxes                                      |  |            | (0.1   | ) |            |  |       |            |  |  |       |  
|Other                                               |  |            | (0.8   | ) |            |  | (1.2   | )          |  |  | 1.4    |  
|                                                    |  |            |        |   |            |  |        |            |  |  |        |  
|                                                    |  |            | 541.7  |   |            |  | 232.6  |            |  |  | 250.1  |  
|                                                    |  |            |        |   |            |  |        |            |  |  |        |  
|Net monetary and foreign exchange variations        |  |            | 31.3   |   |            |  | (11.9  | )          |  |  | (1.9   | )
|                                                    |  |            |        |   |            |  |        |            |  |  |        |  
|Derivative instruments                              |  |            | (3.7   | ) |            |  | (3.0   | )          |  |  | (12.7  | )
|                                                    |  |            |        |   |            |  |        |            |  |  |        |  
|Foreign exchange gain (loss), net                   |  |            | 27.6   |   |            |  | (14.9  | )          |  |  | (14.6  | )
|                                                    |  |            |        |   |            |  |        |            |  |  |        |  



F-68



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|36. | Responsibilities and Commitments
|--- | --------------------------------



|36.1 | Trade-ins
|---- | ---------

The Company has offered 31 trade-in aircraft options.
Trade-in transactions are directly tied to contractual obligations with the customer and the purchase of new aircraft. The exercise of the trade-in option is dependent on the customer complying with all the contractual clauses. These options
establish that the price of the asset given in payment may be put towards the purchase price of a new and more up-to-date aircraft model produced by the Company. The Company continuously monitors all trade-in commitments in order to anticipate any
adverse economic impact. Based on the current evaluation of the Company and third-party independent appraisals, the Company believes that any aircraft accepted under trade-in may be sold or leased in the market without significant losses.



|36.2 | Leases
|---- | ------

In the Parent Company the operating leases refer to
telephone and computer equipment and in the subsidiaries, to operating leases for buildings and land, machinery, vehicles and computer equipment. At December 31, 2015 the amounts recognized totaled US$ 17.3, at December 31, 2014 US$ 15.9
and at December 31, 2013 US$ 19.4. These leases expire at various dates through 2038.

At December 31, 2015, the Company has
operating leases with payments scheduled as follows:



|           |  |  |      | 
|---------- |  |  | ---- | 
|Year       |  |  |     
|2016       |  |  | 13.7 | 
|2017       |  |  | 9.0  | 
|2018       |  |  | 5.6  | 
|2019       |  |  | 5.0  | 
|After 2019 |  |  | 5.3  | 
|           |  |  |      | 
|Total      |  |  | 38.6 | 
|           |  |  |      | 



|36.3 | Financial Guarantees
|---- | --------------------

The table below provides quantitative data on the Companys
financial guarantees provided to third parties. The maximum potential payments (off balance sheet exposure) represent the worst-case scenario and do not necessarily reflect the results expected by the Company. Estimated proceeds from performance
guarantees and underlying assets represent the anticipated values of assets the Company could liquidate or receive from other parties to offset its payments under guarantees.



|                                                                   |  |            |        |   |            |  |        |  
|------------------------------------------------------------------ |  | ---------- | ------ | - | ---------- |  | ------ | -
|                                                                   |  | 12.31.2015 |        |   | 12.31.2014 | 
|Maximum financial guarantees                                       |  |            | 375.9  |   |            |  | 487.6  |  
|Maximum residual value guarantees                                  |  |            | 300.6  |   |            |  | 307.5  |  
|Mutually exclusive exposure (i)                                    |  |            | (107.4 | ) |            |  | (107.4 | )
|Provisions and liabilities recorded (Note 25)                      |  |            | (134.8 | ) |            |  | (156.2 | )
|                                                                   |  |            |        |   |            |  |        |  
|Off-balance sheet exposure                                         |  |            | 434.3  |   |            |  | 531.5  |  
|                                                                   |  |            |        |   |            |  |        |  
|Estimated proceeds from financial guarantees and underlying assets |  |            | 559.6  |   |            |  | 725.2  |  
|                                                                   |  |            |        |   |            |  |        |  



|(i) | When an underlying asset is covered by mutually exclusive financial and residual value guarantees, the residual value guarantee may only be exercised if the financial guarantee has expired without having been exercised.
On the other hand, if the financial guarantee is exercised, the residual value guarantee is automatically terminated.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

This
exposure is reduced by the fact that, to benefit from the guarantee, the counterparty must ensure that the aircraft complies with rigid conditions for its return.





F-69



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|36.4 | Insurance cover
|---- | ---------------

The Company contracts different types of insurance policies to protect
assets in the event of any accident that might cause significant losses. Policies are also contracted for risks subject to compulsory insurance, either legally or contractually.

The Company and its subsidiaries have civil liability insurance for their operations in Brazil and abroad, with coverage and conditions that
management considers appropriate to the risks involved.

To cover substantial damage to assets and loss of earnings of its operations in
Brazil and abroad, the Company has insured an amount of US$ 6.8 billion.



|37. | Supplemental Cash Flow information
|--- | ----------------------------------



|37.1 | Payments made during the year and transactions not affecting cash and cash equivalents
|---- | --------------------------------------------------------------------------------------



|                                                                                |  |            |       |   |            |  |       |            |  |  |       |  
|------------------------------------------------------------------------------- |  | ---------- | ----- | - | ---------- |  | ----- | ---------- |  |  | ----- | -
|                                                                                |  | 12.31.2015 |       |   | 12.31.2014 |  |       | 12.31.2013 | 
|Payments made during the year:                                                  |  |            |       |   |            |  |       |            |  |  |       |  
|Interest                                                                        |  |            | 153.7 |   |            |  | 114.9 |            |  |  | 130.9 |  
|Income tax and social contribution                                              |  |            | 33.4  |   |            |  | 56.2  |            |  |  | 68.3  |  
|Non-cash financing and investing transactions                                   |  |            |       |   |            |  |       |            |  |  |       |  
|Additions to property, plant and equipment, with transfer to inventory-aircrafr |  |            |      |   |            |  | 9.1   |            |  |  |      |  
|Write off on Property, Plant and Equipment by transfer to pool parts inventory  |  |            | (5.8  | ) |            |  |      |            |  |  |       |  
|Disposals property, plant and equipment for providing for the sale of inventory |  |            | (45.9 | ) |            |  | (56.6 | )          |  |  | (42.1 | )
|Transfer of inventory to fixed assets                                           |  |            |      |   |            |  |      |            |  |  | 39.9  |  
|Government grants (i)                                                           |  |            | (55.3 | ) |            |  |      |            |  |  |      |  



|(i) | Refers to the grant received by subsidiaries of the group, initially recognized as debts to the moment that the conditions set by the grantor are met. At this time the amount were reclassified to deferred revenue.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|38. | Segment information
|--- | -------------------

Management defined the Companys operating segments based on
the reports used for strategic decision making, reviewed by the chief operating decision-maker.

The chief operating decision-maker
analyzed the business, dividing it geographically and in terms of markets for specific products. From a geographic perspective, Management considers the performance of the operations in Brazil, North America, Latin America, Asia Pacific, Europe and
Others.

From a product perspective, the analysis considers the following market segments:



|38.1 | Commercial aviation business
|---- | ----------------------------

The Commercial Aviation business
mainly involves the development, production and sale of commercial jets and rendering of support services, particularly in the regional aviation segment and aircraft leases.



| |  |  | ERJ 145 family, comprising the ERJ 135, ERJ 140 and ERJ 145 jets, certified to operate with 37, 44 and 50 seats, respectively.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------



| |  |  | EMBRAER 170/190 family, comprising the EMBRAER 170, a 70-seat jet, EMBRAER 175, a 76-seat jet, EMBRAER 190, a 100-seat jet and the EMBRAER 195, a 108-seat jet. The EMBRAER 170 model has been operating commercially since
2004, the EMBRAER 175 and EMBRAER 190 models started commercial operations in 2006, and the EMBRAER 195 model in 2007.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | E-Jets E2, the second generation of the E-Jets family of commercial aircraft, consists of three new aircraftE175-E2 with capacity of up to 88 seats, E190-E2 with up to 106 seats and E195-E2 reaching up to 132
seats in a typical single-class configuration. The E190-E2 will enter service in the first half of 2018. The E195-E2 is scheduled to enter service in 2019 and the E175-E2 in 2020.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-70



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





|38.2 | Defense and security business
|---- | -----------------------------

The defense and security business operations mainly
involve research, development, production, modification and support for military defense and security aircraft, as well as a wide range of products and integrated solutions that include state-of-the-art radars, special space systems (satellites) and
advanced information and communications systems, such as Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance, or C4ISR systems.

The expansion and diversification of the portfolio, previously focused on military aircraft, was made possible by a strategy of partnerships,
acquisitions and organic growth.

The Companys principal customer is currently the Brazilian Defense Ministry and, in particular,
the Brazilian Air Force, although the diversification of the portfolio has resulted in a corresponding diversification of customers: the Brazilian Army and Navy and the Communications Ministry, as well as a growing international presence of our
products and solutions.

The main products of the portfolio of Defense and Security are as follows:



| |  |  | Light Attack and Advanced Training Aircraft (Super Tucano)  the Super Tucano is a military turboprop that combines training and operational capacities with low acquisition and operation costs. The Super Tucano has
the operational capacities for frontier surveillance, proximity aerial support and counter insurgence missions (COIN). There are currently more than 230 firm orders for the Super Tucano, of which more than 190 aircraft have already been delivered.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Aircraft Modernization  The company offers aircraft upgrade services and actually operates four contracted programs. The first is known as F-5BR, focused on the structural and electronic upgrading of the Brazilian
Air Forces F-5 jet. The second, A-1M, consists on upgrading of the AMX, an advanced ground attack jet, for the Brazilian Air Force. The third program, contracted by the Brazilian Navy, is to revitalize and incorporate new technologies to the
A-4 Skyhawk aircraft (denominated AF-1 by the customer). In the fourth program, with the Brazilian Air Force, the Company was contracted to upgrade the EMB 145 AEW&C aircraft.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The ISR family (Intelligence, Surveillance and Reconnaissance), based on the ERJ 145 platform, includes the EMB 145 AEW&C  Anticipated Aerial Alert and Control, EMB 145 Multi Intel  Remote Sensing and
Air-Ground Surveillance and EMB 145 MP  Sea Patrol and Anti Submarine War models. Originally developed to serve the SIVAM program, versions have been ordered by the Greek, Mexican and Indian governments.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | KC-390 is a joint project between the Brazilian Air Force and Embraer to develop and produce tactical military transportation and aerial refueling and represents a significant advance in terms of technology and
innovation for the airspace industry. The aircraft is designed to establish new standards in its category, with lower operating costs and the flexibility to execute a variety of missions, including troop carriage and transportation, air delivery,
aerial refueling, search and rescue and aerial fire-fighting and combat.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Transportation of Authorities and Special Missions  Derived from the commercial and executive aircraft platforms, these are aircraft used to transport government authorities or to carry out special missions.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Radars  solutions offered through Bradar, a technology-based industry specialized in developing and producing radars for Remote Sensing and Defense, include radar for anti-aircraft artillery, surveillance of
terrestrial activity, military and civil air traffic control, a communications intelligence system and synthetic aperture radar for cartography and precision monitoring services.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-71



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





| |  |  | Software and Systems Development  combining the expertise of Atech  Negócios em Tecnologia S.A. and investments by Embraer in system development and integration, we provide specialized
engineering services for the development, installation, revitalization and maintenance of critical control, defense and monitoring systems, as well as the machinery and equipment required for the services.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Frontier monitoring and protection of strategic structures  Based on its experience in systems integration, and through its wholly owned subsidiary Savis, Embraer is dedicated to developing, designing, certifying,
producing, integrating and implementing systems and services in the field of frontier monitoring and control and protection of critical infra-structures.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | SatellitesVisiona Space Technology  a joint venture between Embraer and Telebraswas hired to provide and integrate the Brazilian Geostationary Defense and Communications Satellite system (SGDC), to
meet the satellite communications requirements of the Brazilian government, including the National Broadband Program and a wide range of strategic defense transmissions, as well as the assimilation of technologies, marking Embraers presence in
this market. We also provide services of supply and analysis of satellite images with the objective of developing major sensing projects in Brazil and neighboring countries.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Support Servicesin addition to its experience in proposing support solutions to customer for products developed by Embraer, Ogma (Embraers subsidiary in Portugal) offers MRO services (Maintenance, Repair and
Overhaul) for a wide range of commercial, executive and defense aircraft, aircraft components and engines. It is also a significant supplier of steel and composite aviation structures to several aircraft manufacturers.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|38.3 | Executive Jet business
|---- | ----------------------

Executive Aviation market operations comprise the development,
production and sale of executive jets and the provision of support services and aircraft leases of the following product lines:



| |  |  | Legacy 600 and Legacy 650executive jets in the super midsize and large categories, deliveries of which started in 2002 and 2010, respectively.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Legacy 450 and Legacy 500executive jets in the Midlight and Midsize categories, deliveries of which started in 2014 and 2015, respectively.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Phenom familyexecutive jets in the Entry Jet and Light Jet categories, respectively. The first deliveries of the Phenom 100 were made in 2008, and deliveries of the Phenom 300 started in 2009.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Lineage 1000an ultra-large executive jet. Deliveries of this model started in 2009.
| | - |  | ------------------------------------------------------------------------------------



|38.4 | Other
|---- | -----

Operations in this segment relate to the supply of structural parts and
mechanical and hydraulic systems, and production of agricultural crop-spraying aircraft.

Statement of income data by operating segment
 year ended December 31, 2015:



|                                                   |  |                    |          |   |                     |  |        |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  |          |  
|-------------------------------------------------- |  | ------------------ | -------- | - | ------------------- |  | ------ | ----------------- |  |  | -------- | - |  | ----------- | ----- | - | ----- |  | ------ | - |  |  | -------- | -
|                                                   |  | CommercialAviation |          |   | Defense andSecurity |  |        | ExecutiveAviation |  |  | Other    |   |  | Unallocated |       |   | Total | 
|Revenue                                            |  |                    | 3,348.7  |   |                     |  | 811.1  |                   |  |  | 1,718.6  |   |  |             | 49.7  |   |       |  |       |   |  |  | 5,928.1  |  
|Cost of sales and services                         |  |                    | (2,565.7 | ) |                     |  | (785.4 | )                 |  |  | (1,440.3 | ) |  |             | (25.4 | ) |       |  |       |   |  |  | (4,816.8 | )
|Gross profit                                       |  |                    | 783.0    |   |                     |  | 25.7   |                   |  |  | 278.3    |   |  |             | 24.3  |   |       |  |       |   |  |  | 1,111.3  |  
|Gross profit %                                     |  |                    | 23.4     | % |                     |  | 3.2    | %                 |  |  | 16.2     | % |  |             | 48.9  | % |       |  |        |   |  |  | 18.7     | %
|Operating income (expense)                         |  |                    | (434.9   | ) |                     |  | (119.1 | )                 |  |  | (220.2   | ) |  |             | (5.6  | ) |       |  |       |   |  |  | (779.8   | )
|Operating profit before financial income (expense) |  |                    | 348.1    |   |                     |  | (93.4  | )                 |  |  | 58.1     |   |  |             | 18.7  |   |       |  |       |   |  |  | 331.5    |  
|Financial income (expense), net                    |  |                    |          |   |                     |  |        |                   |  |  |          |   |  |             |       |   |       |  | (22.9  | ) |  |  | (22.9    | )
|Foreign exchange gain (loss), net                  |  |                    |          |   |                     |  |        |                   |  |  |          |   |  |             |       |   |       |  | 27.6   |   |  |  | 27.6     |  
|Profit before taxes on income                      |  |                    |          |   |                     |  |        |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  | 336.2    |  
|Income tax expense                                 |  |                    |          |   |                     |  |        |                   |  |  |          |   |  |             |       |   |       |  | (255.4 | ) |  |  | (255.4   | )
|                                                   |  |                    |          |   |                     |  |        |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  |          |  
|Net income                                         |  |                    |          |   |                     |  |        |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  | 80.8     |  
|                                                   |  |                    |          |   |                     |  |        |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  |          |  





F-72



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





In the Commercial Aviation segment, one customer individually contributed an share of 11% of
net revenue in 2015 with an approximate value of US$ 669.9.

Revenue by geographic area  year ended December 31,2015:



|                             |  |                    |         |  |                     |  |       |                   |  |  |         |  |  |       |      |  |  |  |         | 
|---------------------------- |  | ------------------ | ------- |  | ------------------- |  | ----- | ----------------- |  |  | ------- |  |  | ----- | ---- |  |  |  | ------- | 
|                             |  | CommercialAviation |         |  | Defense andSecurity |  |       | ExecutiveAviation |  |  | Other   |  |  | Total |     
|North America                |  |                    | 2,452.7 |  |                     |  | 177.2 |                   |  |  | 1,226.6 |  |  |       | 30.1 |  |  |  | 3,886.6 | 
|Europe                       |  |                    | 316.5   |  |                     |  | 84.8  |                   |  |  | 218.3   |  |  |       | 7.3  |  |  |  | 626.9   | 
|Asia Pacific                 |  |                    | 307.8   |  |                     |  | 33.2  |                   |  |  | 149.2   |  |  |       |     |  |  |  | 490.2   | 
|Latin America, except Brazil |  |                    | 89.8    |  |                     |  | 21.7  |                   |  |  | 38.7    |  |  |       |     |  |  |  | 150.2   | 
|Brazil                       |  |                    | 145.3   |  |                     |  | 479.3 |                   |  |  | 72.6    |  |  |       | 12.3 |  |  |  | 709.5   | 
|Other                        |  |                    | 36.6    |  |                     |  | 14.9  |                   |  |  | 13.2    |  |  |       |     |  |  |  | 64.7    | 
|                             |  |                    |         |  |                     |  |       |                   |  |  |         |  |  |       |      |  |  |  |         | 
|Total                        |  |                    | 3,348.7 |  |                     |  | 811.1 |                   |  |  | 1,718.6 |  |  |       | 49.7 |  |  |  | 5,928.1 | 
|                             |  |                    |         |  |                     |  |       |                   |  |  |         |  |  |       |      |  |  |  |         | 

Assets by operating segmentyear ended December 31, 2015:



|                              |  |                    |         |  |                     |  |       |                   |  |  |         |  |  |             |       |  |       |  |       |  |  |  |         | 
|----------------------------- |  | ------------------ | ------- |  | ------------------- |  | ----- | ----------------- |  |  | ------- |  |  | ----------- | ----- |  | ----- |  | ----- |  |  |  | ------- | 
|                              |  | CommercialAviation |         |  | Defense andSecurity |  |       | ExecutiveAviation |  |  | Other   |  |  | Unallocated |       |  | Total | 
|Trade accounts receivable     |  |                    | 157.3   |  |                     |  | 552.7 |                   |  |  | 66.9    |  |  |             | 6.5   |  |       |  |      |  |  |  | 783.4   | 
|Property, plant and equipment |  |                    | 848.1   |  |                     |  | 413.5 |                   |  |  | 730.3   |  |  |             | 35.5  |  |       |  |      |  |  |  | 2,027.4 | 
|Intangible assets             |  |                    | 352.4   |  |                     |  |      |                   |  |  | 871.6   |  |  |             | 78.9  |  |       |  | 102.5 |  |  |  | 1,405.4 | 
|                              |  |                    |         |  |                     |  |       |                   |  |  |         |  |  |             |       |  |       |  |       |  |  |  |         | 
|Total                         |  |                    | 1,357.8 |  |                     |  | 966.2 |                   |  |  | 1,668.8 |  |  |             | 120.9 |  |       |  | 102.5 |  |  |  | 4,216.2 | 
|                              |  |                    |         |  |                     |  |       |                   |  |  |         |  |  |             |       |  |       |  |       |  |  |  |         | 

Assets by geographic areayear ended December 31, 2015:



|                              |  |              |       |  |        |  |         |             |  |  |        |  |  |       |         |  |  |  |         | 
|----------------------------- |  | ------------ | ----- |  | ------ |  | ------- | ----------- |  |  | ------ |  |  | ----- | ------- |  |  |  | ------- | 
|                              |  | NorthAmerica |       |  | Europe |  |         | AsiaPacific |  |  | Brazil |  |  | Total |        
|Trade accounts receivable     |  |              | 82.8  |  |        |  | 495.0   |             |  |  | 9.9    |  |  |       | 195.7   |  |  |  | 783.4   | 
|Property, plant and equipment |  |              | 347.1 |  |        |  | 562.1   |             |  |  | 59.5   |  |  |       | 1,058.7 |  |  |  | 2,027.4 | 
|Intangible assets             |  |              | 15.8  |  |        |  | 3.0     |             |  |  | 0.1    |  |  |       | 1,386.5 |  |  |  | 1,405.4 | 
|                              |  |              |       |  |        |  |         |             |  |  |        |  |  |       |         |  |  |  |         | 
|Total                         |  |              | 445.7 |  |        |  | 1,060.1 |             |  |  | 69.5   |  |  |       | 2,640.9 |  |  |  | 4,216.2 | 
|                              |  |              |       |  |        |  |         |             |  |  |        |  |  |       |         |  |  |  |         | 

Statement of income data by operating segment  year ended December 31, 2014:



|                                                   |  |                    |          |   |                     |  |          |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  |          |  
|-------------------------------------------------- |  | ------------------ | -------- | - | ------------------- |  | -------- | ----------------- |  |  | -------- | - |  | ----------- | ----- | - | ----- |  | ------ | - |  |  | -------- | -
|                                                   |  | CommercialAviation |          |   | Defense andSecurity |  |          | ExecutiveAviation |  |  | Other    |   |  | Unallocated |       |   | Total | 
|Revenue                                            |  |                    | 3,163.3  |   |                     |  | 1,456.4  |                   |  |  | 1,591.5  |   |  |             | 77.6  |   |       |  |       |   |  |  | 6,288.8  |  
|Cost of sales and services                         |  |                    | (2,542.2 | ) |                     |  | (1,158.9 | )                 |  |  | (1,299.6 | ) |  |             | (37.6 | ) |       |  |       |   |  |  | (5,038.3 | )
|Gross profit                                       |  |                    | 621.1    |   |                     |  | 297.5    |                   |  |  | 291.9    |   |  |             | 40.0  |   |       |  |       |   |  |  | 1,250.5  |  
|Gross profit %                                     |  |                    | 19.6     | % |                     |  | 20.4     | %                 |  |  | 18.3     | % |  |             | 51.5  | % |       |  |        |   |  |  | 19.9     | %
|Operating income (expense)                         |  |                    | (321.2   | ) |                     |  | (148.0   | )                 |  |  | (229.6   | ) |  |             | (8.4  | ) |       |  |       |   |  |  | (707.2   | )
|Operating profit before financial income (expense) |  |                    | 299.9    |   |                     |  | 149.5    |                   |  |  | 62.3     |   |  |             | 31.6  |   |       |  |       |   |  |  | 543.3    |  
|Financial income (expense), net                    |  |                    |         |   |                     |  |         |                   |  |  |         |   |  |             |      |   |       |  | (24.5  | ) |  |  | (24.5    | )
|Foreign exchange gain (loss), net                  |  |                    |         |   |                     |  |         |                   |  |  |         |   |  |             |      |   |       |  | (14.9  | ) |  |  | (14.9    | )
|Profit before taxes on income                      |  |                    |          |   |                     |  |          |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  | 503.9    |  
|Income tax expense                                 |  |                    |         |   |                     |  |         |                   |  |  |         |   |  |             |      |   |       |  | (156.2 | ) |  |  | (156.2   | )
|                                                   |  |                    |          |   |                     |  |          |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  |          |  
|Net income                                         |  |                    |          |   |                     |  |          |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  | 347.7    |  
|                                                   |  |                    |          |   |                     |  |          |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  |          |  





F-73



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





Revenue by geographic area  year ended December 31, 2014:



|                             |  |                    |         |  |                     |  |         |                   |  |  |         |  |  |       |      |  |  |  |         | 
|---------------------------- |  | ------------------ | ------- |  | ------------------- |  | ------- | ----------------- |  |  | ------- |  |  | ----- | ---- |  |  |  | ------- | 
|                             |  | CommercialAviation |         |  | Defense andSecurity |  |         | ExecutiveAviation |  |  | Other   |  |  | Total |     
|North America                |  |                    | 2,065.0 |  |                     |  | 199.5   |                   |  |  | 739.3   |  |  |       | 53.6 |  |  |  | 3,057.4 | 
|Europe                       |  |                    | 624.7   |  |                     |  | 100.0   |                   |  |  | 168.4   |  |  |       | 3.9  |  |  |  | 897.0   | 
|Asia Pacific                 |  |                    | 155.4   |  |                     |  | 78.5    |                   |  |  | 353.3   |  |  |       | 0.1  |  |  |  | 587.3   | 
|Latin America, except Brazil |  |                    | 64.7    |  |                     |  | 47.3    |                   |  |  | 110.7   |  |  |       |     |  |  |  | 222.7   | 
|Brazil                       |  |                    | 73.9    |  |                     |  | 1,004.5 |                   |  |  | 207.1   |  |  |       | 20.0 |  |  |  | 1,305.5 | 
|Other                        |  |                    | 179.6   |  |                     |  | 26.6    |                   |  |  | 12.7    |  |  |       |     |  |  |  | 218.9   | 
|                             |  |                    |         |  |                     |  |         |                   |  |  |         |  |  |       |      |  |  |  |         | 
|Total                        |  |                    | 3,163.3 |  |                     |  | 1,456.4 |                   |  |  | 1,591.5 |  |  |       | 77.6 |  |  |  | 6,288.8 | 
|                             |  |                    |         |  |                     |  |         |                   |  |  |         |  |  |       |      |  |  |  |         | 

Assets by operating segmentyear ended December 31, 2014:



|                              |  |                    |         |  |                     |  |       |                   |  |  |         |  |  |             |       |  |       |  |      |  |  |  |         | 
|----------------------------- |  | ------------------ | ------- |  | ------------------- |  | ----- | ----------------- |  |  | ------- |  |  | ----------- | ----- |  | ----- |  | ---- |  |  |  | ------- | 
|                              |  | CommercialAviation |         |  | Defense andSecurity |  |       | ExecutiveAviation |  |  | Other   |  |  | Unallocated |       |  | Total | 
|Trade accounts receivable     |  |                    | 145.3   |  |                     |  | 515.8 |                   |  |  | 28.7    |  |  |             | 14.0  |  |       |  |     |  |  |  | 703.8   | 
|Property, plant and equipment |  |                    | 893.8   |  |                     |  | 382.2 |                   |  |  | 747.1   |  |  |             | 2.7   |  |       |  |     |  |  |  | 2,025.8 | 
|Intangible assets             |  |                    | 242.0   |  |                     |  |      |                   |  |  | 836.3   |  |  |             | 89.6  |  |       |  | 93.0 |  |  |  | 1,260.9 | 
|                              |  |                    |         |  |                     |  |       |                   |  |  |         |  |  |             |       |  |       |  |      |  |  |  |         | 
|Total                         |  |                    | 1,281.1 |  |                     |  | 898.0 |                   |  |  | 1,612.1 |  |  |             | 106.3 |  |       |  | 93.0 |  |  |  | 3,990.5 | 
|                              |  |                    |         |  |                     |  |       |                   |  |  |         |  |  |             |       |  |       |  |      |  |  |  |         | 

Assets by geographic areayear ended December 31, 2014:



|                              |  |              |       |  |        |  |         |             |  |  |        |  |  |       |         |  |  |  |         | 
|----------------------------- |  | ------------ | ----- |  | ------ |  | ------- | ----------- |  |  | ------ |  |  | ----- | ------- |  |  |  | ------- | 
|                              |  | NorthAmerica |       |  | Europe |  |         | AsiaPacific |  |  | Brazil |  |  | Total |        
|Trade accounts receivable     |  |              | 78.1  |  |        |  | 384.5   |             |  |  | 8.8    |  |  |       | 232.4   |  |  |  | 703.8   | 
|Property, plant and equipment |  |              | 352.8 |  |        |  | 665.9   |             |  |  | 55.6   |  |  |       | 951.5   |  |  |  | 2,025.8 | 
|Intangible assets             |  |              | 12.7  |  |        |  | 3.0     |             |  |  | 0.1    |  |  |       | 1,245.1 |  |  |  | 1,260.9 | 
|                              |  |              |       |  |        |  |         |             |  |  |        |  |  |       |         |  |  |  |         | 
|Total                         |  |              | 443.6 |  |        |  | 1,053.4 |             |  |  | 64.5   |  |  |       | 2,429.0 |  |  |  | 3,990.5 | 
|                              |  |              |       |  |        |  |         |             |  |  |        |  |  |       |         |  |  |  |         | 

Statement of income data by operating segmentyear ended December 31, 2013:



|                                                   |  |                    |          |   |                     |  |         |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  |          |  
|-------------------------------------------------- |  | ------------------ | -------- | - | ------------------- |  | ------- | ----------------- |  |  | -------- | - |  | ----------- | ----- | - | ----- |  | ------ | - |  |  | -------- | -
|                                                   |  | CommercialAviation |          |   | Defense andSecurity |  |         | ExecutiveAviation |  |  | Other    |   |  | Unallocated |       |   | Total | 
|Revenue                                            |  |                    | 3,307.0  |   |                     |  | 1,196.9 |                   |  |  | 1,644.5  |   |  |             | 86.6  |   |       |  |       |   |  |  | 6,235.0  |  
|Cost of sales and services                         |  |                    | (2,532.6 | ) |                     |  | (951.2  | )                 |  |  | (1,284.7 | ) |  |             | (50.4 | ) |       |  |       |   |  |  | (4,818.9 | )
|Gross profit                                       |  |                    | 774.4    |   |                     |  | 245.7   |                   |  |  | 359.8    |   |  |             | 36.2  |   |       |  |       |   |  |  | 1,416.1  |  
|Gross profit %                                     |  |                    | 23.4     | % |                     |  | 20.5    | %                 |  |  | 21.9     | % |  |             | 41.8  | % |       |  |        |   |  |  | 22.7     | %
|Operating income ( expense )                       |  |                    | (272.3   | ) |                     |  | (154.1  | )                 |  |  | (262.8   | ) |  |             | (13.5 | ) |       |  |       |   |  |  | (702.7   | )
|Operating profit before financial income (expense) |  |                    | 502.1    |   |                     |  | 91.6    |                   |  |  | 97.0     |   |  |             | 22.7  |   |       |  |       |   |  |  | 713.4    |  
|Financial income (expense), net                    |  |                    |         |   |                     |  |        |                   |  |  |         |   |  |             |      |   |       |  | (96.4  | ) |  |  | (96.4    | )
|Foreign exchange gain (loss), net                  |  |                    |         |   |                     |  |        |                   |  |  |         |   |  |             |      |   |       |  | (14.6  | ) |  |  | (14.6    | )
|Profit before taxes on income                      |  |                    |          |   |                     |  |         |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  | 602.4    |  
|Income tax expense                                 |  |                    |         |   |                     |  |        |                   |  |  |         |   |  |             |      |   |       |  | (256.4 | ) |  |  | (256.4   | )
|                                                   |  |                    |          |   |                     |  |         |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  |          |  
|Net income                                         |  |                    |          |   |                     |  |         |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  | 346.0    |  
|                                                   |  |                    |          |   |                     |  |         |                   |  |  |          |   |  |             |       |   |       |  |        |   |  |  |          |  



F-74



---

Embraer S.A.

Notes to the Consolidated Financial Statements

In
millions of U.S. dollars, unless otherwise stated





Revenue by geographic area  year ended December 31, 2013:



|                             |  |                    |         |  |                     |  |         |                   |  |  |         |  |  |       |      |  |  |  |         | 
|---------------------------- |  | ------------------ | ------- |  | ------------------- |  | ------- | ----------------- |  |  | ------- |  |  | ----- | ---- |  |  |  | ------- | 
|                             |  | CommercialAviation |         |  | Defense andSecurity |  |         | ExecutiveAviation |  |  | Other   |  |  | Total |     
|North America                |  |                    | 1,089.4 |  |                     |  | 26.4    |                   |  |  | 632.2   |  |  |       | 59.7 |  |  |  | 1,807.7 | 
|Europe                       |  |                    | 916.4   |  |                     |  | 166.9   |                   |  |  | 290.6   |  |  |       |     |  |  |  | 1,373.9 | 
|Asia Pacific                 |  |                    | 546.3   |  |                     |  | 71.0    |                   |  |  | 336.6   |  |  |       |     |  |  |  | 953.9   | 
|Latin America, except Brazil |  |                    | 457.9   |  |                     |  | 16.3    |                   |  |  | 6.3     |  |  |       |     |  |  |  | 480.5   | 
|Brazil                       |  |                    | 103.5   |  |                     |  | 848.5   |                   |  |  | 357.7   |  |  |       | 26.9 |  |  |  | 1,336.6 | 
|Other                        |  |                    | 193.5   |  |                     |  | 67.8    |                   |  |  | 21.1    |  |  |       |     |  |  |  | 282.4   | 
|                             |  |                    |         |  |                     |  |         |                   |  |  |         |  |  |       |      |  |  |  |         | 
|Total                        |  |                    | 3,307.0 |  |                     |  | 1,196.9 |                   |  |  | 1,644.5 |  |  |       | 86.6 |  |  |  | 6,235.0 | 
|                             |  |                    |         |  |                     |  |         |                   |  |  |         |  |  |       |      |  |  |  |         | 



|39. | Subsequent event
|--- | ----------------



| |  |  | In February, 2016, Embraer trhough its whole owned subsidiary Embraer Defesa e Segurança Participações S.A. acquire the totality of the non-controlling interests of its subsidiary Bradar
Indústria S.A. Consenquently, the ownership of Bradar Indústria S.A. capital went from 95% to 100%.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | In March, 2016 Embraer announced the consolidation of the operations for two of its wholly owned subsidiaries Bradar Indústria S.A. and Savis Tecnologias e Sistemas S.A., through its wholly owned subsidiary
Embraer Defesa e Segurança Participações S.A. The consolidation process will take place in 2016 and will allow the company to provide integrate solutions with great potential to the abroad and national market, contributing to
the diversification of customer basis for Embraer Defense and Security by widing its products and services portfolio.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



F-75