emb day defense & security oct2013

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Luiz Carlos Aguiar, CEO August,2013

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Page 1: Emb day defense & security oct2013

Luiz Carlos Aguiar, CEO

August,2013

Page 2: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Forward looking statement

This presentation includes forward-looking statements or statements about

events or circumstances which have not occurred. We have based these

forward-looking statements largely on our current expectations and

projections about future events and financial trends affecting our business

and our future financial performance. 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 market.

The words “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,”

“intends,” “expects” and similar words are intended to identify forward-

looking statements. We undertake no obligations 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 presentation

might not occur. Our actual results could differ substantially from those

anticipated in our forward-looking statements.

Page 3: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Agenda

General Information

2013 Highlights

Results

Future projects

Main Programs Status

Page 4: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

General information

� Established on 1st January 2011

� Revenues (2012) of US$ 1,056 billion

� Total of more than 1,600 employees

� Presence in more than 48 countries and 50 Air Forces operating our products and systems

Page 5: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

2013 Highlights (1/3)

• The U.S. Air Force (USAF) selected the A-29 Super Tucano for its Light Air Support (LAS) program. The selection was further validated by the GAO (General Accountability Office) of the United States.

• Facilities in Jacksonville, where the A-29 aircraft for the LAS will be built, are being completed. Local leadership and local plant workers were hired.

• Critical Design Review (CDR) of the KC-390 military transport aircraft was successfully concluded.

• Embraer and Boeing announced a partnership for sales and marketing of Embraer’s KC-390 in selected markets.

• Embraer and Brazilian Air Force (FAB) signed a contract to modernize five EMB 145 AEW&C, designated E-99 at FAB, approximately US$ 215 million.

• Embraer and FAB also signed a contract to provide logistics support and services for its fleet of 92 A-29 Super Tucano aircraft.

Page 6: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

2013 Highlights (2/3)

• Delivery of the first modernized A-1 (A-1M) fighter jet to FAB.

• Delivery of three A-29 Super Tucano to the National Air Force of Angola, as part of a total order for six aircrafts.

• First flight of a modernized AF-1 aircraft, from the Brazilian Navy, in August.

• Acquisition of the remaining 50% stake of Atech Negócios em TecnologiaS.A.

• Savis concluded the selection of the main suppliers for all subsystems of the SISFRON Project

• Visiona Tecnologia Espacial SA concluded the selection process of suppliers of the satellite and the launcher for the SGDC project

Page 7: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Results: Revenue & EBIT

CAGR29%

Revenue Evolution

(US$ Millions)

EBIT (2011/2012): 9~11%

Ref.: September, 2013

851 YTD Sept

Page 8: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Results: consistent revenue growth

Ref.: September, 2013

Page 9: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Results: Backlog

BacklogEvolution

(US$ Billions)

Ref.: September, 2013. Includes sales announced during LAAD 2013.

Page 10: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Revenue Breakdown Evolution (1/2)

Ref.: September, 2013

2013E2012

* Radar (Orbisat)C4I (Atech)UAV (Harpia)Satellite (JV Embraer/Telebrás)Savis (SISFRON)

Page 11: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Brazilian government future projects (1/2)

NAVY

SisGAAZ

SISFRON (phase 1)

SISFRON (phase 2)

Aerial Defense

Fighter Jet Tender

UAVs

Satellites

2013 2016 2020 2030

ARMY

AIR FORCE

OTHERS US 550MM

Contract negotiation phase

US 4 bn

US 2 bn

US 4 bn

US 1bn

US 420 MM

SISFRON (subsequent phases)

Page 12: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

2013 Federal Budget – Main projects

% of EDS Projects in the Federal Budget : 27%

Brazilian government future projects (2/2)

Page 13: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Partnerships

Command and Control systems

Air trafficManagement

Control

Systems of Systems

C4I

UAVs

Simulators

Modernizationof avionicssystems

Land Defense Systems

integration

SISFRON

implementation

MRO

Aero

structures

Remote Sensing

Aerial Surveillance

Radar

Satellite Geostationary of

Defense and Communications

(SGDC)

100% 51% 65% 90% 100% 51%

Page 14: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Partnerships from 2011 to 2013

YTD Sept

40,6

YTD Sept

36,9

Page 15: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Integrated portfolio

UAVs SatelliteLand

systemsRadar

Modernization programs

ISR (Intelligence, Surveillance and Reconnaissance)

Light attack and

advanced training

Transport aircraftTactical military transport

ServicesC4I

Page 16: Emb day defense & security oct2013

ISR Family

Page 17: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

ISR Family

EMB 145 MP

Maritime Patrol

18 aircraft, 17 in operation

8 aircraft

4 aircraft

3 aircraft

3 aircraft

EMB 145 AEW&C

(India)

EMB 145 AGS

Remote Sensing, Air-to-Ground

Surveillance

EMB 145 AEW&C

Airborne Early Warning and Control

Ref.: July,2013

Page 18: Emb day defense & security oct2013

A-29Super Tucano

Page 19: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Brazil: 99

Colombia: 25

Dominican Republic: 8

Chile: 12

Ecuador: 18

Indonesia: 16

Greystone (TacAir): 1

Mauritania: 2

Burkina Faso: 3

Angola: 6

USA: 20

A-29 Super Tucano

•Firm orders: more than 210 aircraft

•More than 170 aircraft delivered

Ref.: July,2013

Medium-term

2,000 Short-term

800

Long-term

700

Super Tucano Addressable Market Forecast 2020 (US$ million)

Total Market Forecast:300 aircraft

US$ 3.5 billion

Page 20: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

LAS – Jacksonville/USA

• Highly experienced personnel• Strong local leadership• 1st Delivery: End of 1°Sem 2014• New distribution channels: BPC and FMS

Page 21: Emb day defense & security oct2013

Modernization programs

Page 22: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Modernization program

Modernization addressable market Forecast 2025 (US$ million)

Total Market Forecast*:

228 aircraft / US$ 1.5 billion

Total market forecast:

228 aircraft/ US$ 1.5 billion

* Considerando modernização do Tucano

Brazil Navy A-4

12 aircraft2 prototypes at GPX-CS

FAB A-1M

43 aircraft18 received by Embraer for modernization

FAB F-5M

46 acft + 11 acft (2º batch)46 delivered

FAB E-99

5 aircraft EMB 145 AEW&C

F-5M A1-M A-4

Short-

term;

437

Medium-

term;

567

Long-

term;

505

Ref.: July,2013

Page 23: Emb day defense & security oct2013

KC-390

Page 24: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

This information is the property of Embraer and cannot be used or reproduced without written consent.

Chile (6)

Portugal (6)

Czech Rep. (2)

Brazil (28)

Colombia (12)

Argentina (6)

Total Market Forecast 2025:

700 aircraft

US$ 50+ bi

A new tactical military transport and tanker aircraftFirst flight: End of 2014Six countriesLetters of intent totaling 60 aircraft

Embraer KC-390

Ref.: September, 2013

Boeing and Embraer signed anagreement to share technicalknowledge and evaluate marketsfor joint sales efforts.

The Brazilian Air Force (FAB) andEmbraer concluded the CriticalDesign Review in the first quarterof 2013.

Page 25: Emb day defense & security oct2013

Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

Mission Computer,DIRCM,

HUD, SPS

Wing Air Refueling Pod System

Cargo Handling and Aerial Delivery System

Landing Gear Legs

Throttle Control Quadrant (TCQ)

FBW Primary and Spoiler Flight Control System and ActuatorsActive Side Stick

Air Conditioning SystemCabin Pressure Control

System

Basic Avionics

Tactical Radar System

Liferaft and Maritime ELT

System

Pilot / Co-pilot / ACM and Loadmaster Seats

Emergency electrical system

Wheels and Brakes AssembliesLG System Hydraulic Control ComponentsBrake Control System Steering Hydraulic ManifoldArmor

Troop seats and litters

EMBRAER KC-390: PARCEIROS E FORNECEDORESKC-390: Main partners and suppliers

Page 26: Emb day defense & security oct2013