Embraer : announces the resolution of case with the US and Brazilian authorities

As part of the settlement, the company has agreed to retain an external and independent monitorship for up to three years, to ensure full compliance with the settlement terms. The company has also agreed to payments in an aggregate amount of close to $206 million to the U.S. and Brazilian authorities. The settlement further provides that as long as the terms of the agreements are fully honored, no charges will be brought against the company.

This inquiry began in 2010 when Embraer was questioned by American authorities regarding potential nonconformities related to certain commercial transactions abroad. The company then undertook a wide internal investigation, led independently by external law firms.

From the beginning, Embraer took the matter seriously and fully cooperated with the investigation. As events unfolded, the company voluntarily expanded its scope and shared the results with the appropriate authorities.

As part of its commitment to disclose material information to investors, the company has reported the progress of the investigations to the financial markets and to the regulatory agencies in Brazil and the United States. Please refer to the company's prior disclosures for further information related to the investigations.

The company recently concluded its internal investigation after six years of intensive effort. Hundreds of thousands of documents were analyzed and more than 100 interviews with employees and third parties were conducted. As part of the settlement documentation, the investigation determined that the company was responsible for misdeeds in four transactions between 2007 and 2011 in Saudi Arabia, India, Mozambique and the Dominican Republic. Those transactions involved the sale of 16 aircraft.

The company acknowledges responsibility for the conduct of its employees and agents according to the facts ascertained in the investigation. Embraer deeply regrets this conduct. The company has learned from this experience and will be stronger as it moves forward and continues its nearly 50 years of successful existence in which it has delivered more than 8,000 aircraft in over 90 countries.

The Brazilian Federal Prosecution Service has been conducting its own investigations in parallel and is filing lawsuits against certain individuals. Embraer is not party to these lawsuits.

For many years, Embraer has been improving and expanding its global compliance program for the continuous enhancement of its systems and internal controls. The company conducts ongoing training for its employees and business partners. Company staff members are required to attend workshops and seminars on ethics and integrity and to review relevant case studies. Nearly 400 business partners have been trained in these exercises as well. As a result of its efforts, Embraer has been regularly listed on the Dow Jones Sustainability Index (DJSI) of the New York Stock Exchange (NYSE) and on BM&FBovespa's Corporate Sustainability Index (ISE).​