embraer day 2012 (melbourne) defense

This information is the property of Embraer and cannot be used or reproduced without written consent. Luiz Carlos Aguiar, CEOLuiz Carlos Aguiar, CEOLuiz Carlos Aguiar, CEOLuiz Carlos Aguiar, CEO

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

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.


AGENDA


Vision & MissionGeneral InformationResults and the FutureStrategic VisionMain Programs Status


VISION AND MISSION

EMBRAER DEFENSE AND SECURITY VISION AND MISSION

Mission

To protect people, territories and safeguard critical

assets, by developing tailored and business

integrated solutions in the Defense & Security

markets, and by providing results for customers and

stakeholders, partners and society.

Vision

To be the leader in providing defense & security solutions in

the Brazilian market and in those where Brazil has a very good

geopolitical relationship


EMBRAER DEFENSE AND SECURITY

Embraer Defense and Security: a new Embraer company established on 1st January 2011

Revenues 2011 US$ 852 million

1,647 employees

Presence in more than 40 countries



227

346

505 499

670

852900 - 950

6,0%7,0%

8,0%9,0%

12,6%

14,5% 15,5%

-7,0%

-5,0%

-3,0%

-1,0%

1,0%

3,0%

5,0%

7,0%

9,0%

11,0%

13,0%

15,0%

-

100

200

300

400

500

600

700

800

900

1.000

2006 2007 2008 2009 2010 2011 2012E (*)

Revenues (US$ Million) Participation (%)

CAGR33%

RESULTS: REVENUE AND EBIT

RevenueEvolution

(US$ Million)

EBIT (2011/2012): 9~12%

Ref.: August, 2012

CAGR 2012-2020

10%

1st semester

498


1,1 1,0

1,5

3,2 3,3 3,3

3,8

2006 2007 2008 2009 2010 2011 2012E

US$ Billion

RESULTS: BACKLOG

Backlog Evolution

(US$ Billion)

Ref.: December, 2012


REVENUE BREAKDOWN EVOLUTION

20122011

(*)

* Radar (Orbisat) C4I (Atech) UAV (Harpia and Santos Lab) Satellite (JV Embraer/Telebrás) Ref.: August, 2012

(*)

Services and Parts31%

Modernization25%

KC-39019%

ISR10%

Light Attack and Combat

9%

Radar, C4I, UAV6%

Services and Parts26%

Modernization20%

KC-39034%

Light Attack and Combat

16%

Radar, C4I, UAV4%


EMBRAER DEFENSE AND SECURITY STRATEGIC OBJECTIVES

To build a leadership position and to act as the main prime contractor in the Brazilian Defense and Security Industry Base

To expand the portfolio of products, services and technologies build through a combination of organic growth and acquisitions


• Other Brazilian companies

• Equipment suppliers

• Solutions development

Foreign Companies

Brazilian construction companies

Brazilian

Government

Projects

Brazilian priority supplies

• Brazilian supply chain strengthening• Technology development and retention

• Finance structuring• Highly qualified employment generation

• Technological spin-off

Main

Contractors

Supply of complementary

foreign equipment

Supply of base infrastructure

• EADS (Europe)• Fincantieri (Italy)• Finmeccanica (Italy)• Thales (France)• Elbit (Israel)• IAI (Israel)• BAE Systems (UK)• DCNS (France)• Boeing (USA)• Rockwell Collins (USA)• Indra (Spain)• Saab (Sweden)• ....

• Prime contractor

• Project management

• Finance structuring

• Solutions integrator

• Development and retention of technologies

• Services and logistics

Main Brazilian Defense and Security

Company:

Satellite

Prime Contractor

SISFRONIntegrated Borders

Monitoring System


To build a leadership position and to act as the main prime contractor in the Brazilian Defense and Security Industry Base

Aerial Defense


FUTURE PROJECTS – BRAZILIAN GOVERNMENT

NAVY SisGAAZ

SISFRON (phase 1)SISFRON (Full Scope)

Aerial Defense

Fighter Jet Tender

UAVs

Satellites

2013 2016 2020 2030

US 4 bn

US 2 bn

US 4 bn

ARMY

AIR FORCE

OTHER

US 4 bnUS 400-500 MM

US 1bn

US 400MM


FUTURE PROJECTS - BRAZILIAN GOVERNMENT

2013 Federal Initial Budget (*)

2013 budget(R$ million)

Air Force 4.600 KC-390 1.200 Air Traffi c Control 1.300 5 midsize helicopters(out of 50)

443

Aqcuisition & modernization of aircraft 596 Aircraft Maintenance & Supplies 500 Fuel & oil 307 Combat Readiness 74

(*) Investment Budget – Budget sent to congress for discussion(available at Ministry of Planning website)


Navy 3.700 PROSUB (submarine) 2.300 Combat Readiness 708 Aqcuisition & modernization of vessels 506 Patrol ship building 73


Army 2.100 SISFRON 200 Combat Readiness 365 Logistic 353 Aqcuisition & modernization of equip. 212 Guarani Vehicles(48 out of 2.044)

90

ASTROS 2020 90 ProtegerStrategic Infrastructure Protection

44


Brazilian Army Priorities

SISFRON

Integrated Borders Monitoring System

Estimate: US$ 4 bi

Comprising radars, communication networks,

C4I, unmanned air vehicles (UAV) and armored vehicles

Satellite

Estimate: US$ 400 M

Participation in the first Brazilian Geostationary

Satellite

Embraer won the 1st phase of SISFRON,

comprised of a 650km border

between Brazil, Paraguay and

Bolivia


GROWTH THROUGH ACQUISITIONS AND PARTNERSHIPS

Command and Control

Air Traffic Management

Systems

Police Intelligence

System

UAV

Simulators

Modernization of avionics systems

Mini-UAVs

HARPIA

MRO

Aerostructures

Remote Sensing

Ground Radars

Mission Systems

Satellite

Control

Commercial Agreement


To expand the portfolio of products, services and technologies built through a combination of organic growth and acquisitions

VISIONA

50% 90% 65% 51% NA 51%



Embraer Defense and Security, Partners and Affiliated Companies

Light attack and advanced training

Transport of authorities

Modernization programs

ISR (Intelligence, Surveillance and Reconnaissance)

Services Tactical military transport

UAV’s

HARPIA

System of Systems Radar Satellite

VISIONA


Alverca (Portugal)MRO

Abu Dhabi (UAE)Commercial presence

SingaporeCommercial office

Brasília (Brazil)Commercial office

Harpia Sistemas headquarter

Rio de Janeiro (Brazil)Commercial presence

São Paulo (Brazil)HeadquartersAtech S.A headquarters

São José dos Campos (Brazil)Engineering, programs, industrial operations, customer support and servicesOrbisat headquarters

Campinas (Brazil)Orbisat (engineering and operations)

Gavião Peixoto (Brazil)Industrial operations

Service center

Villepinte (France)Logistic support

Washington DC (USA)Commercial presence

CORPORATE PRESENCE

Ref.: December, 2011

Eugênio de Melo (Brazil)KC-390 ProgramEngineering


PORTFOLIO – SUPER TUCANO

Firm orders: 190 aircraft

Brazil: 99

Colombia: 25

Dominican Republic: 8

Chile: 12

Ecuador: 18

Indonesia: 16

Greystone (TACAir): 1

Undisclosed: 11

Deliveries: 168 aircraft

Medium-term2,000 Short-term

800

Long-term700

Super Tucano Addressable Market Forecast 2020 (US$ million)

Total Market Forecast:300 aircraft

US$ 3.5 billion

Pursuing USAF Pursuing USAF Light Air Support Light Air Support

competitioncompetition

Ref.: August, 2012

Partnership with Boeing to provide weapons

integration, increasing capabilities of the

aircraft.


MODERNIZATION PROGRAMS


Total Market Forecast*:234 aircraft

US$ 1.6 billion

Modernization Addressable Market Forecast 2025 (US$ million)

Brazilian Navy A-4

12 aircraft

Two prototype at GPX-CS

Brazilian Air Force A-1M

43 aircraft

Fourteen received by Embraer for the modernization

Brazilian Air Force F-5M

46 a/c + 11 a/c (2nd batch)

45 already delivered

Short-term527

Medium-term505

Long-term567

* Forecast considering the market for F-5 and Tucano modernization

Ref.: August, 2012


Embraer Jets to Defense and Government customers operating in 12 countries

Presence in Latin America, Europe, Africa and Asia

58 Embraer Jets in operation

Embraer Defense and Security signed a contract with the Brazilian

Air Force to provide logistics support and services for the fleet of

24 aircraft of the ERJ-145

Brazil

Panama

India

Angola

Ecuador

Belgium

Pakistan

Nigeria

Colombia

Greece

Thailand

Equatorial Guinea

Embraer ISR Systems: 18 aircraft:

Brazilian Air Force: 8

Hellenic Air Force: 4

Mexican Air Force: 3

DRDO/CABS (India): 3

16 aircraft in operation

TRANSPORT OF AUTHORITIES AND EMBRAER ISR SYSTEMS

This information is the property of Embraer and cannot be used or reproduced without written consent.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 in 2014Six countriesLetters of intent totalizing 60 aircraft

EMBRAER KC-390

Ref.: August, 2012

Boeing and Embraer signed an agreement to share technical knowledge and evaluate markets for joint sales efforts.

The Brazilian Air Force (FAB) and Embraer concluded the Preliminary Design Review. The next major contractual event will be the project’s Critical Design Review in 2013.


COCKPIT KC-390


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

Integrated Power Plant System (IPPS)

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: MAIN PARTNERS AND SUPPLIERS

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