embraer day br 2014 defense

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Jackson Schneider, CEO February, 2014

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Page 1: Embraer Day BR 2014 Defense

Jackson Schneider, CEO February, 2014

Page 2: Embraer Day BR 2014 Defense

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: Embraer Day BR 2014 Defense

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

Main Programs Status

Results

Future projects

Page 4: Embraer Day BR 2014 Defense

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

OVER 52 ARMED FORCES IN 50 COUNTRIES

WITH REVENUES (2013) OF US$ 1,2 billion

Page 5: Embraer Day BR 2014 Defense

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.

Product Portfolio

UAVs Satellite Land

systems Radar

Modernization programs

ISR (Intelligence, Surveillance and Reconnaissance)

Light attack and

advanced training

Transport aircraft Tactical military transport

Services C4I

Page 6: Embraer Day BR 2014 Defense

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.

Command and Control systems

Air traffic

Management

Control

Systems of Systems

C4I

UAVs

Simulators

Modernization of avionics

systems

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 7: Embraer Day BR 2014 Defense

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.: Dez,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

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.

Page 8: Embraer Day BR 2014 Defense

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 9: Embraer Day BR 2014 Defense

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 aircraft First flight: End of 2014 Six countries Letters of intent totaling 60 aircraft

Embraer KC-390

Ref.: December, 2013

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 Critical Design Review in the first quarter of 2013.

Page 10: Embraer Day BR 2014 Defense

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.

Fuselage assembly in Gavião Peixoto

Embraer KC-390

Final assembly hangar in Gavião Peixoto with 17.000 m²

Wing assembly in Gavião Peixoto

Page 11: Embraer Day BR 2014 Defense

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

Actuators

Active Side Stick

Air Conditioning System Cabin 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 Assemblies

LG System Hydraulic Control

Components

Brake Control System

Steering Hydraulic Manifold Armor

Troop seats

and litters

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

Page 12: Embraer Day BR 2014 Defense

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

• 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.

• Total: 43 aircraft, 26 already received by Embraer for modernization.

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

A1-M

E-99

Page 13: Embraer Day BR 2014 Defense

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 billions

Brazilian Navy A-4

12 aircraft

2 prototypes at GPX-CS

First flight of a modernized AF-1 aircraft, from

the Brazilian Navy, in August

FAB F-5M 46 acft + 11 acft (2º batch)

46 delivered

Short-

term;

437

Medium-

term;

567

Long-

term;

505

F-5M A-4 (AF-1)

Page 14: Embraer Day BR 2014 Defense

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 15: Embraer Day BR 2014 Defense

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.

SISFRON

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

• High level of satisfaction with project execution among the Army’s Top Commanders.

The full scope of the Sisfron project will encompass the surveillance and protection of 16,886 kilometers of Brazilian land borders, stretching through 11 Brazilian states and 10 neighboring countries.

Page 16: Embraer Day BR 2014 Defense

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.

Satellite

Visiona Tecnologia Espacial SA signed the contract to provide geostationary satellite of the SGDC project. Kick-off meeting with all involved parties took place in early 2014.

Page 17: Embraer Day BR 2014 Defense

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

CAGR

27%

Revenue

Evolution

(US$ Millions)

Ref.: Dez, 2013

Page 18: Embraer Day BR 2014 Defense

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

Backlog

Evolution

(US$ Billions)

Ref.: Dez, 2013.

Page 19: Embraer Day BR 2014 Defense

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

Ref.: Dez, 2013

2013 2012

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

Page 20: Embraer Day BR 2014 Defense

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

NAVY

SisGAAZ

SISFRON (phase 1)

SISFRON (phase 2)

Fighter Jet Tender

UAVs

Satellites

2013 2016 2020 2030

ARMY

AIR

FORCE

OTHERS

SISFRON (subsequent phases)

KC-390

Page 21: Embraer Day BR 2014 Defense