Embraer S.A. Material Fact

The Company is revising its 2015 Guidance for Total Revenues, EBIT margin, and EBITDA margin. Consolidated Revenues for the year are now expected to stay within a range of US$ 5.8 - US$ 6.3 billion, a reduction from the previous range of US$ 6.1 - US$ 6.6 billion. The decline in Revenue guidance for the year is due to a US$ 300 million reduction in expected revenues in the Defense & Security segment, which Embraer now expects to end 2015 within US$ 800 - US$ 950 million. This reduction is driven by the combination of the negative impact of continued devaluation of the Brazilian real versus the U.S. dollar and a slower pace of development work on certain Defense & Security contracts.

Despite lower revenues for the year, the Company's guidance for EBIT and EBITDA remains unchanged, within a range of US$ 490 - US$ 560 million and US$ 730 - US$ 860 million, respectively, due primarily to the positive impact from the devaluation of the real versus the U.S. dollar on Embraer's consolidated margins. EBIT margin guidance is now revised up to 8.5% - 9,0% from a previous range of 8.0% - 8.5%, and EBITDA margin guidance raised to 12.6% - 13.6% from 12.0 - 13.0%

The Company reiterates all other aspects of its 2015 Guidance.