ai eng april 11
DESCRIPTION
Corporate Presentation April 11TRANSCRIPT
April 25th, 2011
EMBRAER ATA GLANCE
• After World War ll - strategic national aircraft manufacturing project
• The creation of CTA and ITA• Embraer established in 1969
Origin and Development Privatization (1994)
• The integration of two cultures
Technological
& IndustrialEntrepreneurial+
Evolution
Customer SatisfactionBase of our entrepreneurial action
SUCCESSFUL BUSINESS
Aerospace Industry Fundamentals
HighTechnology
Qualified
PeopleFlexibilityCash
Intensiveness
Global Presence
High Technology
ErgonomicsAnalysis
Virtual Reality CenterIn operation since Feb 2000
Intelligent interface for structural
analysis and project
Output: CATIA model for rib
Output: wing model for structural analysis
Knowledge Based EngineeringAutomation of routine project activities
High Technology
• Digital “Mock-up” – EMBRAER 170 • Structural Tension Simulations
• Fluid Dynamics • Composite Materials
17253
2155021843
17503
144931278912227
1104810334
83026737
449438494319
15192
6087
16853 17149
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
mar
/11
BRAZIL 16,099
USA 793 CHINA 53
FRANCE 250 SINGAPORE 58
April / 97 was the lowest level of employment – 3,200 people
Qualified People
Dec / 94 Embraer
was privatized
Number of Employees
(Not including JVs' employees in China (HEAI) - from 2003 on - and in Portugal (OGMA) - from 2005 on. These two sites have at the present time 221 and 1.507 employees, respectively)
Qualified People
Educational Levels*
06/14/2010
Graduate29%
Postgraduate4%
Ph.D.2%
High School65 %
* Brazilian Units
Minimum educational level – High School
Embraer Units - Brazil
Eugênio de Melo Unit - EGM
São José dos Campos - SPSão José dos Campos - SP
Faria Lima Unit - FL
BrazilSão José dos CamposEugênio de MeloGavião PeixotoBotucatuTaubaté
Taubaté Unit – Distribution Center
Taubaté - SPSão José dos Campos - SP
ELEB Unit - Equipment
Botucatu - SP
Botucatu Unit - BOT Gavião Peixoto Unit - GPX
Gavião Peixoto - SP
Embraer Units - Brazil
BrazilSão José dos CamposEugênio de MeloGavião PeixotoBotucatuTaubaté
Embraer Units - Abroad
USAFort LauderdaleNashvilleMelbourneMesaWindsor Locks
Embraer Aircraft Maintenance Services
Nashville, TN - USA
Embraer Aircraft Holding
Fort Lauderdale, FL - USA
Melbourne, FL - USA
Embraer Executive Aircraft
Embraer Units - Abroad
USAFort LauderdaleNashvilleMelbourneMesaWindsor Locks
Embraer Executive Jet Services
Mesa, Arizona - USA
Embraer Executive Jet Services
Windsor Locks, Connecticut - USA
Fort Lauderdale, FL - USA
Embraer Executive Jet Services
Embraer Units - Abroad
Embraer Aviation Europe
Villepinte - France
Embraer Le Bourget Service Center
Le Bourget - France
FranceVillepinteLe Bourget
SingaporeSingapore
Embraer Asia Pacific
Singapore
Embraer Units - Abroad
ChinaBeijingHarbin
PortugalAlverca
Embraer Harbin
Harbin - China
OGMA
Alverca - Portugal
Embraer China
Beijing - China
Embraer
Évora - Portugal
Business Areas
Commercial Aviation Market Defense and Security Market
Executive Aviation Market
CommercialAircraft
ERJ 145 Family
50 Seats(2,000 nm range)
50 Seats(1,550 nm range)
37 Seats(1,750 nm range)
44 Seats(1,650 nm range)
Flight hours: 18,200,000
Approximate number of carried passengers: 550,000,000
Number of countries in operation: 17
ERJ 145 Family Order Book
(as of 31th Mar 2011)
Firm
OrdersOptions Deliveries
Firm
Backlog Total
ERJ 135 108 - 108 - 108
ERJ 140 74 - 74 - 74
ERJ 145 708 - 706 2 708
Total 890 - 888 2 890
EMBRAER 170/190 Family
108 to 122 Seats – 2,200 nm RangeCertification – 2nd Q/2006
98 to 114 Seats – 2,400 nm RangeCertification – 3rd Q/2005
78 to 88 Seats – 2,000 nm RangeCertification – 4th Q/2004
70 to 80 Seats – 2,100 nm RangeCertification – 1st Q/2004
Flight hours: 5,500,000
Approximate number of carried passengers: 262,000,000
Number of countries in operation: 39
EMBRAER 170/190 Family Order Book
Firm Orders Options DeliveriesFirm
BacklogTotal
EMBRAER 170 191 35 182 9 226
EMBRAER 175 189 290 135 54 479
EMBRAER 190 502 335 332 170 837
EMBRAER 195 105 45 70 35 150
Total 987 705 719 268 1692
(as of 31th Mar 2011)
Defense and Security Market
A-29 Super Tucano
• High-performance evolution of the proven EMB 312 Tucano
• State-of-the-art systems and advanced avionics
• Optimized for basic/advanced training and operational applications in hostile environments
• Operation from unprepared runways, day or night
AMX/A-1M
• Advanced and fighter lead-in training aircraft
• Baseline avionics architecture commonality with the Super Tucano
ISR Systems – Special Mission Aircraft
EMB 145 Multi Intel
Airborne Ground Surveillance and
Strategic Intelligence
EMB 145 MP
Maritime Patrol
EMB 145 AEW&C
Airborne Early Warning & Control
ISRIntelligence – Surveillance –
Reconnaissance
EMBRAER KC-390
• Able to transport troops, vehicles and all kinds of cargo and to airdrop paratroops and cargo, including LAPES (low altitude parachute extraction system)
• Capable of operating from short and semi-prepared runways
• State-of-the-art avionics and full night vision goggles (NVG) compatibility
• New-generation military airlift and tanker aircraft
• More than 20 metric ton maximum payload
• Maximum range in excess of 3,300 nautical miles (about 6,200 km)
• Optimized full fly-by-wire flight controls system
Executive Aviation Market
26* LRC speed. NBAA IFR (35 min) Reserves + 100 nm alternate; 4 occupants @ 200 lb (91 kg)
41,000 ft
390 ktas
1,178 nm
Phenom 100
12,500 m
Mach 0.70
722 km/h
2,182 km
6 – 8 (Occupants)
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
Phenom 100
27
Phenom 100
28* NBAA IFR (35 min) Reserves + 100 nm alternate; 6 occupants @ 200 lb (91 kg)
Phenom 300
45,000 ft
453 ktas
1,971 nm
Phenom 300
13,700 m
Mach 0.78
839 km/h
3,650 km
8 – 10 (occupants)
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
29
Phenom 300
30
Legacy 450
45,000ft
470ktas
2,300nm
Legacy 450
13,700m
Mach 0.83
870 km/h
4,260km
7 – 9 passengers + 2 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of occupants
* Range @ M 0.80, 2 pilots + 4 pax (200lb), NBAA IFR res.
All preliminary data
31
Legacy 450
Preliminary concepts
32
Legacy 500
45,000ft
470ktas
3,000nm
Legacy 500
13,700m
Mach 0.83
870 km/h
5,560km
8 – 12 passengers + 2 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of occupants
* Range @ LRC, 2 pilots + 4 pax (200lb), NBAA IFR res, 200nm alt airport
All preliminary data
33
Legacy 500
Preliminary concepts
34* NBAA Reserves (4 pax, MTOW, LRC, ISA)
41,000 ft
455 ktas
3,400 nm
Legacy 600
12,500 m
Mach 0.80
843 km/h
6,297 km
13 – 14 passengers + 3 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
Legacy 600
35
Legacy 600
36* NBAA Reserves (4 pax, MTOW, LRC, ISA)
41,000 ft
459 ktas
3,900 nm
Legacy 650
12,500 m
Mach 0.80
850 km/h
7,223 km
13 – 14 passengers + 3 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
Legacy 650
37
Legacy 650
38
Lineage 1000
41,000 ft
470 ktas
4,400 nm
Lineage 1000
12,500 m
Mach 0.82
870 km/h
8,149 km
13 – 19 passengers + 3 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
* NBAA IFR (35 min) Reserves + 200 nm alternate; 3 crew plus 8 passengers @ 200 lb; M 0.78
39
Lineage 1000 – Lounge
Embraer Environmental Initiatives
Achievements in Environmental Initiatives
Ipanema: First certified and serialized 100% biofuelpowered aircraft
Gavião Peixoto facility reforestation project:• 600,000 trees• 350 hectare area
ISO 14001 since 2002 � First in the Industry
Powerplants
Design & Aerodynamics
Biofuels
Structures
Systems
Environmentally Friendly Research Programs
Economic-Financial Performance
Capital Structure
Common (Voting) Shares: 723,665,044 (100%)
* Include one special class voting share for Brazilian Government (Golden Share) As per February, 2011
NYSE OTHERS 35,58%
OPPENHEIMER FUND'S 9,21%
THORNBURG INVESTMENT 6,47%
PREVI 12,62%
BOZANO GROUP 6,04%
BNDES 5,49%
BOVESPA OTHERS 24,59%
NYSE 51,26%
BOVESPA 48,74%
Evolution of Aircraft Deliveries
122
88
135
127
103
133
165
125
101
20
913 13 14
27
36 37
2119
22
98
126
6
2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q11
Commercial Jets Executive Large Jets* Executive Light Jets**
*Legacy and Lineage **Phenom
7641.354
1.837
2.762 2.9272.526
2.144
3.4413.830 3.807
5.245
6.335
5.466 5.355
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net Sales - U.S. GAAP
US$ million
Actual
Revenue per Segment
Commercial
Aviation
53%
Executive
Aviation
21%
Defense and
Security
13%
Aviation
Services
11%
Others
2%
Revenue per Segment
2010
Revenue by Region
2010
Asia Pacific
22%
Others
4%Europe
33%
Brazil
13%North America
13%
Latin America
15%
3
145
235
321 328
223
136
380
446489
249
347389390
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net Income - U.S. GAAP
US$ million
Actual
Investments
5173
89
213234
103
45
93113
239
197
144
2004 2005 2006 2007 2008 2009
US$ millions
Properties, Plants and Equipment
Research & Development
15.616.6
20.9
18.8
14.8
10.410.110.69
10.711.4
6.4
4.13
1.2
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Backlog
US$ billion
4Q10 – US$ 15.6 billion in firm orders
** Accumulated until 4Q10
1.173
1.692
2.7022.897
2.396
2.007
3.348 3.267 3.269
4737
5.733
4.0534.160
8811.178
1.377
1.843
1.220 1.302
1.9921.737
2.213
2957
3.766
2.580 2.514
292514
1.3251.054
1.175
705
1.3561.529
1.056
17801967
1.4741.646
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
US$ million
Embraer accounted for 2.06% of Brazilian exports through December 2010
(*) Source: Foreign Trade Department Secretary
Exports
Trade Balance Imports Exports
Thank you!
This document may contain projections, statements and estimates regarding circumstances or events yet to take place. Those projections and estimates are based largely on current expectations, forecasts on future events and financial tendencies that affect Embraer’s businesses. Those estimates are subject to risks, uncertainties and suppositions that include, among others: general economic, political and trade conditions in Brazil and in those markets where Embraer does business; expectations on industry trends; the Company’s investment plans; its capacity to develop and deliver products on the dates previously agreed upon, and existing and future governmental regulations. The words “believe”, “may”, “is able”, “will be able”, “intend”, “continue”, “anticipate”, “expect” and other similar terms are supposed to identify potentialities. Embraer does not feel compelled to publish updates nor to revise any estimates due to new information, future events or any other facts. In view of the inherent risks and uncertainties, such estimates, events and circumstances may not take place. The actual results can therefore differ substantially from those previously published as Embraer expectations. Embraer reserves the right to revise this document whenever occasioned by product improvements, governmental regulations or other good cause. All figures, finishing materials and colors are for illustration purpose only, and may not represent the real and final product accurately. Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis. All data presented shall not be used as guarantee. Guaranteed specifications are listed in section 4 of the preliminary technical description and represent the only binding guarantee.