13.

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 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.

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 applicable accounting standards, the Company has control and therefore has the right to consolidate the following entities:


Entity	Country	Participation Embraer Group			Participation noncontrolling
OGMA - Indústria Aeronática de Portugal S.A.	Portugal		65.0	%		35.0	%
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	%

Embraer group holds 51.0% of the entities Embraer CAE Training Services Ltd., Visiona Tecnologia Espacial S.A. and Embraer CAE Training Services. The powers described 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.

The financial position of the most significant entity of the group with non-controlling interests is summarized below, which is OGMA—Indústria Aeronáutica de Portugal S.A. Other entities combined represent less than 5% of consolidated profit before taxes on income.


	12.31.2018		12.31.2017		01.01.2017
Cash and cash equivalents		12.9		11.1		23.7
Current assets		168.9		207.9		155.1
Non current assets		61.0		66.0		55.4
Current liabilities		74.5		117.4		76.5
Non current liabilities		0.1		0.9		7.3
Noncontrolling interest		54.3		54.4		44.2

	12.31.2018		12.31.2017		12.31.2016
			(Restated)		(Restated)
Revenue		240.5		222.1		216.3
Net income for the year		9.6		12.3		11.2

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’ joint management of the entities’ relevant activities.

The Company accounts for the assets, liabilities, revenues and expenses relating to its involvement in the joint operations in accordance with the rights and obligations assigned to Embraer.


	12.31.2018			12.31.2017		01.01.2017
Cash and cash equivalents		1.3			1.2		1.4
Current assets		24.5			28.8		27.7
Non current assets		8.0			7.1		5.4
Current liabilities		13.1			48.2		24.6
Non current liabilities		41.5			4.4		25.4

	12.31.2018			12.31.2017		12.31.2016
				(Restated)		(Restated)
Revenue		48.4			42.0		47.4
Net income (loss) for the year		(5.4	)		0.1		(9.3	)