paris air show - defense market

23
DB2 082-A07 Defense Market Analysts & Investors Meeting June 20th, 2007 Paris

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Page 1: Paris Air Show - Defense Market

DB2 082-A07

DefenseMarket

Analysts & Investors MeetingJune 20th, 2007

Paris

Page 2: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 2

Defense Products and Market Segments

Intelligence, Surveillance andReconaissance

Training Combat

Transport Systems & Services

Page 3: Paris Air Show - Defense Market

DB2 082-A07

DefensePrograms

Update

Page 4: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 4

Defense Programs Update

SUPER TUCANO

Brazilian Air Force99 aircraft

Deliveries: 49

Colombian Air Force25 aircraft

First export contractDeliveries: 9

Page 5: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 5

Defense Programs Update

Brazilian Air Force F-5 Modernization Program

[ Total Fleet: 46 aircraft

[ 13 were already delivered to Brazilian Air Force

Brazilian Air Force AMX Modernization Program

[ Total Fleet: 53 aircraft

[ Development Phase

Page 6: Paris Air Show - Defense Market

DB2 082-A07

Market Outlook

Page 7: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 7

Government TransportImportant market potential for replacement of ageingfleets of transport aircraft used by:

[Federal and state/provincial governments

[Armed Forces

[State owned companies

for:

[Authorities and personnel transportation

[Transport Pilot Training

[Liasion

Examples[Latin America

Fleet: 341 aircraft (80% with more than 20 years)[Africa

Fleet: 245 aircraft (65% with more than 20 years)

Page 8: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 8

High Performance Turboprop MarketMarket Outlook

Up to 2020Potential for 700+ Aircraft

[ US Market not included

Training45%

Training/ COIN27%

Other Applications

2%

COIN26%

Page 9: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 9

High Performance Turboprop MarketMarket Outlook

Up to 2020Potential for 700+ Aircraft

[ US Market not included

Training45%

Training/ COIN27%

Other Applications

2%

COIN26%

Fleet reduction and consolidation trend

Significant fleetexpansion trend

Small fleetexpansion trend

Page 10: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 10

ISR Market

Market OutlookUp to 2020

Potential for 230+ Manned Platforms

[ US Market not included[ European AGS not included

AEW&C23%

AGS4%

MP60%

Multi-Intel13%

Page 11: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 11

ISR Market

Market OutlookUp to 2020

Potential for 230+ Manned Platforms

[ US Market not included[ European AGS not included

AEW&C23%

AGS4%

MP60%

Multi-Intel13%

Fleet expansion trend

Total fleet reduction and consolidation trend

Fleet stabilization

Reduction and transference to Multi-

intel segment

Page 12: Paris Air Show - Defense Market

DB2 082-A07

EMBRAER C-390

Brief Market and Concept Study Presentation

Page 13: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 13

Military Transport Aircraft

Missions

[ Troops and cargo transport

[ Troops and cargo air delivery

[ In flight refueling

[ Medical evacuation

Page 14: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 14

Military Transport Aircraft

Utility or Light

Medium

Heavy

Super Heavy

Market Segmentation

Study

Page 15: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 15

Military Transport Aircraft

Medium – 5 to 10 tons payload

Fokker F-27

HS 748 AN-24/26/32

Alenia G-222

NAMC YS-11

Out of Production In Production

Alenia C-27J

EADS/CASA C-295

Antonov An-74

EADS/CASA CN-235

Market Segmentation

Page 16: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 16

Military Transport Aircraft

Heavy – 10 to 20 tons payload

Market Segmentation

C-130A/B/E/H C-160 Transal

Antonov AN-12 Kawasaki C-1

Out of Production

Lockheed Martin C-130J

In Production

Page 17: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 17

Military Transport Global Fleet

[ Global fleet with maximum payload from 5 to 20 metric tons totals 2,802 aircraft, not including China, North Korea, Iran and Cuba

[ All aircraft in operation for 25 years or more are considered candidates for replacement

[ Global fleet with maximum payload from 5 to 20 metric tons totals 2,802 aircraft, not including China, North Korea, Iran and Cuba

[ All aircraft in operation for 25 years or more are considered candidates for replacement

Global fleet = 2,802 aircraft

CN-235158

An-2473

Outros317

C-1301374

An-26277

An-32229

C-160171

An-12138

G 22265

Page 18: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 18

Military Transport Global Market

Addressable Market

Without USA, Russia,Ukraine

Fleet Above 25 Years

Global Fleet2,802 Aircraft

1,613 Aircraft (91 countries)

1,008 Aircraft (88 countries)

695 Aircraft (77 countries)

A400MMax. 37.0 tons€ 100 million

C-130JMax. 19.1 tonsUS$ 80 million

C-27JMax. 10.2 tonsUS$ 35 million

C-130 ModernizationsLimited advantagesUp to US$ 32 million

An-72/74Max. 10.0 tons

* Only modernization packages resulting in increased platform useful life are considered

Page 19: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 19

EMBRAER C-390: Basic Design Requirements

[ Tactical Cargo Aircraft with rear ramp, capable of• Transporting palletized cargo, containers, troops,

vehicles, etc.• Airdropping paratroops and cargo, including

LAPES• Being configured for MEDEVAC• Being configured as tanker for in-flight refueling,

and also being refueled in flight[ Able to carry 1 Patria AMV 8x8, or 1 LAV-25, or 1

EE-11 Urutu, or 3 HMMWV[ State-of-the-art avionics, NVG compatible, all

weather, day and night[ Able to operate from short, semi-prepared

runways[ FAA Part 25 certified

ILS

Take

off1

RE

V

A

ILS

Take

off1

RE

V

A

Page 20: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 20

EMBRAER C-390 - Competitive Insertion

Over 6,000 km(or 3,200 nm)

Maximum Range

YesFly-by-wire

US$ 50.0 million

Estimated Price

460 ktMach 0.80

Maximum Cruise Speed

36,000 ftMaximum Operating Altitude

19.0 tonMaximum Payload

Page 21: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 21

EMBRAER C-390

Business Model – Potential Funding Sources

[ Brazilian Government

[ Industrial Partners/Countries/Clients

[ Suppliers

[ Risk-sharing Investors

Page 22: Paris Air Show - Defense Market
Page 23: Paris Air Show - Defense Market

DB2098-A07 EMBRAER PROPRIETARY INFORMATION 23