embraer day ny 2011 - defense and security

IMD 082-A11

New York, November 4th, 2011

Luiz Carlos Aguiar

CEO

Embraer Day 2011

EMBRAER PROPRIETARY INFORMATION2IMD 082-A11

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.


General Information

Results and the Future

Strategic Vision

Main Programs Status

Agenda


Embraer Defense and Security

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

Revenues around US$ 750 million including services (est. 2011)

Approximately 1,500 employees

Presence in more than 40 countries


Embraer Defense and Security Results

EBIT

Evolution(%)

Revenue

Evolution(US$ Million)

Ref.: October, 2011

1.1 1

1.5

3.2 3.33.5

0

1

2

3

4

2006 2007 2008 2009 2010 3T11

US

$ (B

illio

n)

Backlog

Evolution(US$ Billion)

6.3

12.4 12.211.4

13.4

0

2

4

6

8

10

12

14

16

2006 2007 2008 2009 2010

(%)

670499505346227

9%

8%7%

6%

12.6%

0

100

200

300

400

500

600

700

800

2006 2007 2008 2009 2010

US

$ (M

illio

n)

0%

3%

6%

9%

12%

15%

Par

tici

pat

ion

(%

)

GAGR

31%


Revenue Breakdown Evolution

2011

2020

New Business

Airport Management SystemsSisGAAz (“Blue Amazon” Integrated Management System)

Security of Critical Infrastructure

Public Security (sporting events, cities, states)

Services

11%

Modernization

30%

Radar, C4I, UAV,

MRO

25%

Light Attack

9%

ISR

9%

KC-390

16%

Ref.: October, 2011

Transport

4%

Light Attack and

Combat

9%

KC-390

34%

Radar, C4I, UAV,

MRO

18%

New Business

14%

Sisfron, Satellite

10%

Services

11%


Embraer Defense and Security: Vision and Mission

Vision

To be the leader in providing solutions

for the Brazilian Defense & Security

market, and where Brazil exercises a

strong geopolitical influence.

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.


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

To diversify our target markets and our

customer base


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


Main Company in the Industry’s Productive Chain in Brazil

• Other Brazilian

companies

• Equipment

suppliers

• Solutions

development

Foreign

Companies

Brazilian

construction

companies

SISFRON

Integrated BordersMonitoring

System

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

To build a leadership position and to act as the main prime contractor

in the Brazilian Defense and Security Industry Base


Growth Through Acquisitions and Partnerships

To expand the portfolio of products, services and technologies build

through a combination of organic growth and acquisitions

Command and

Control

Air Traffic

Management

Systems

Police

Intelligence

System

Remote Sensing

Ground Radars

Mission Systems

MRO

Aerostructures

UAV

Simulators

Modernization of

avionics systems

Mini-UAVs

Aerial Systems

UAVs

Public Security

Systems

Weapon Systems

for Armored

Vehicles

Simulators

Logistics and

Management

Systems

Control Commercial Agreement Minority Participation

(*) Embraer Defense and Security has the joint control of Atech Negócios em Tecnologias S/A Ref.: October, 2011

*HARPIA


New portfolio

HARPIA

Command and Control Systems

Onboard Systems

Simulation Systems

Electronic Warfare Systems

Intelligence Systems

Air Traffic Management and Control Systems

JV with Elbit/AEL Sistemas where Embraer

Defense and Security has a major participation

UAS, simulators and modernization of avionics systems

Air, ground and sea surveillance radars

Remote sensing

Security of Critical

Infrastructure

Public Security

(sporting events,

cities, states)

Airport Management

Systems

SISFRON

SisGAAZ

Services

Engine and Component Maintenance

Overhaul and Modernization

Aerostructure Manufacturing and Assembling

System of Systems

UAV’s

Radar


Embraer Defense and Security

Light attack and advanced

trainingTransport of authorities

Modernization programs Tactical military transportServices

ISR (Intelligence, Surveillance and Reconnaissance)

Embraer Defense and Security, partners and affiliated companies

System of Systems

UAV’s

Radar

HARPIA


Embraer Defense and Security Corporate Presence

Alverca (Portugal)MRO

Abu Dhabi (UAE)

Commercial presence

Singapore

Commercial officeBrasília (Brazil)Commercial office

Harpia Sistemas headquarter

Rio de Janeiro (Brazil)Commercial presence

São Paulo (Brazil)Headquarters

Atech S.A headquarters

São José dos Campos (Brasil)Engineering, programs, industrial operations,

customer support and services

Orbisat headquarters

Eugênio de Melo (Brasil)KC-390 Program

Engineering

Campinas (Brazil)Orbisat (engineering and operations)

Gavião Peixoto (Brazil)Industrial operations

Service center

Villepinte (France)Logistic support

Washington DC (USA)Commercial presence

Ref.: October, 2011


Diversify Markets and Customer Base

To diversify our target markets and our customer base

Security of Critical

Infrastructure

Public Security (sporting events, cities, states)

Airport Management

Systems

Satellite


Portfolio – Super Tucano

Firm orders: 180 aircraft

Brazil: 99

Colombia: 25

Dominican Republic: 8

Chile: 12

Ecuador: 18

Indonesia: 8

Greystone (TACAir): 1

Undisclosed: 9

Deliveries: 156 aircraft

Super Tucano Addressable Market Forecast

2020 (US$ million)

Pursuing USAF Light Air Support

competition

Total Market Forecast:

300 aircraft

US$ 3.5 billion

Medium-term

2,000 Short-term

800

Long-term

700

Ref.: October, 2011

http://www.builtforthemission.com/


Modernization Programs

A1-MF-5M A-4

Brazilian Navy A-4

12 aircraft

Two prototype at GPX-CS

Brazilian Air Force A-1M

43 aircraft

Five received by Embraer for the modernization

Brazilian Air Force F-5M

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

44 already deliveredTotal Market Forecast*:

234 aircraft

US$ 1.6 billion

Modernization Addressable Market Forecast 2025 (US$ million)

Short-term

527

Medium-term

505

Long-term

567

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

Ref.: October, 2011


Transport of Authorities and Embraer ISR Systems

Brazil

Panama

India

Angola

Ecuador

Belgium

Pakistan

Nigeria

Colombia

Greece

Thailand

Equatorial Guinea

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 ISR Systems: 18 aircraft:

Brazilian Air Force: 8

Hellenic Air Force: 4

Mexican Air Force: 3

DRDO/CABS (India): 3

15 aircraft in operation

*ISR = Intelligence, Surveillance and Reconnaissance

Ref.: October, 2011


EMBRAER KC-390

A new tactical military transport and

tanker aircraft

First flight in 2014

Six countries

Letters of intent totalizing 60 aircraft

Brazil

(28)

Colombia

(12)

Argentina

(6)

Chile

(6)

Portugal

(6)

Czech Rep.

(2)

Total Market Forecast 2025:

700 aircraft

US$ 50+ bi

Ref.: October, 2011


EMBRAER KC-390: Main partners and suppliers

Mission

Computer

Wing Air Refueling Pod

System

Cargo Handling and Aerial Delivery System

Landing Gear

LegsThrottle Control

Cockpit Controls

Pedals

FBW Primary and Spoiler

Flight Control System

and Actuators

Integrated Power Plant

System (IPPS)

Air Conditioning System

Cabin Pressure Control System

Wheels and Brakes Assemblies

LG System Hydraulic Control Components

Brake Control System

Steering Hydraulic Manifold

Basic Avionics

Tactical Radar System

Liferaft and Maritime ELT System

Pilot / Co-pilot / ACM and Loadmaster Seats

-DIRCM

-HUD

-SPS

HUD

Ref.: October, 2011

http://www.eleb.net/index.php

http://www.baesystems.com/index.htm

http://rockwellcollins.com/

http://www.google.com.br/imgres?imgurl=http://www.ellidiss.com/png/s_hispano_suiza_logo.gif&imgrefurl=http://www.ellidiss.com/stood_users.asp&usg=__i6DQ5Cwy-VRJsO8wmGQJjIu6Z38=&h=38&w=175&sz=4&hl=pt-BR&start=12&zoom=1&tbnid=Bhp3Obs5hwJMGM:&tbnh=22&tbnw=100&ei=ibSlTvDdLI7UgAeShYGyBQ&prev=/search%3Fq%3DHispano%2BSuiza%2Blogo%26um%3D1%26hl%3Dpt-BR%26safe%3Dactive%26sa%3DN%26tbm%3Disch&um=1&itbs=1

http://www.selexgalileo.com/SelexGalileo/EN/index.sdo;jsessionid=BC65FA749160FD5B9C69F2C64623CD48.fnm_prd_srv1

http://www.goodrich.com/vgn-ext-templating/v/index.jsp?vgnextoid=0b18984786956110VgnVCM10000068f57eaaRCRD