third annual analyst & investor meeting - corporate presentation
TRANSCRIPT
EmbraerThird Annual
Investor MeetingSão José dos Campos
Nov. 21-22, 2002
Maurício BotelhoPresident & CEO
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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 press releasemight not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements.
CompanyHighlights
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Highlights
?One of the world’s major commercial
aircraft manufacturers
?Significant market share
?Global customer base
?Renamed international partners
?Excellent financial performance
?Brazil’s largest exporter in 1999, 2000
and 2001
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High Technology
Qualified People
Global Presence
Flexibility
Capital Intensiveness
Fundaments?Fundaments of the Aeronautical Industry
CUSTOMER SATISFACTION
Backbone of our entrepreneurial action
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A Socially Responsible Company
?ISO 14001 and OHS18001 certification
?Social and Community - Focus on Education:
?Instituto Embraer de Educação e Pesquisa
?Professional development & Training
?Cultural Projects
?Global Sector Leader in Dow Jones Sustainability Index.
CorporateGrowthStrategy
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Growth-Oriented Company
1995 1995 –– 19981998
•• TurnaroundTurnaround
•• Regain credibilityRegain credibility
•• Develop the Regional Jet Develop the Regional Jet
MarketMarket
•• ProfitabilityProfitability
1999 1999 –– 20012001
•• Expand market share through:Expand market share through:•• Expansion of the ERJ145 Expansion of the ERJ145 family and development of family and development of the EMBRAER 170 familythe EMBRAER 170 family•• Development of the Development of the Business Jet FamilyBusiness Jet Family
•• Access to global capital Access to global capital marketsmarkets•• Profitability Profitability
Strategic FocusStrategic Focus
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Growth Strategy
??Revenue diversification:Revenue diversification:
??GeographicGeographic
??Business SegmentsBusiness Segments
?? Geographic diversification of assetsGeographic diversification of assets
??Organic growth and other opportunitiesOrganic growth and other opportunities
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Revenue Diversification
Commercial87%
Defense4%
Corporate 3%
Parts and Services
6%
Current SalesBreakdown
FY2001
Expected Sales BreakdownIn five years
CorporateJets
CustomerService
Defense
Commercial70%
30%
GrowthOpportunities
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Commercial Aviation
??Rising US regional enplanements: Rising US regional enplanements: passenger preferencepassenger preference
??Regional traffic growth: turboprop Regional traffic growth: turboprop replacement & longer range of RJsreplacement & longer range of RJs
??Scope Clauses flexibilizationScope Clauses flexibilization
??New generation of 70New generation of 70--110 jets vs ageing 110 jets vs ageing fleetfleet
??Rightsizing capacity vs demandRightsizing capacity vs demand
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??A niche playerA niche player
??Based on a consolidated airframe, with Based on a consolidated airframe, with more than 600 aircrafts in operationmore than 600 aircrafts in operation
??Represents value for customers:Represents value for customers:
??Comfort, performance, cost efficiency Comfort, performance, cost efficiency and reliabilityand reliability
Legacy – New Entrant
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Defense Growth Strategy
?? Market the existing programs to Market the existing programs to other Air Forcesother Air Forces
??Develop new technology Develop new technology
??Explore synergies with our strategic Explore synergies with our strategic partners (Dassault, Thales, Snecma partners (Dassault, Thales, Snecma and EADS)and EADS)
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Defense Products
Combat
ALX / Super Tucano
F-5 BR
AMX / AMX-T
Training
ALX / Super Tucano
Systems
AMX-T
Intelligence, Surveillance &Reconnaissance
EMB 145 AEW&C
EMB 145 AGS
EMB 145 MP / ASW
Transport
EMB 135/145
EMB 120K
Legacy
Systems & Services
IntegratedGround Command& Control
IntegratedSystems
Data-Link
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??Service a global growing fleet Service a global growing fleet
??Expand geographical reachExpand geographical reach
??Total Care SolutionsTotal Care Solutions
Customer Service Growth Strategy
