Post on 03-Jul-2015
7th Annual U.S. Analyst & Investor
Meeting
Luís Carlos AffonsoEmbraer Executive Vice-President, Executive Aviation
New York - April 11th, 2007
Market Overview
Industry - New Jets Deliveries in 2006
N/A1-Eclipse
225%134Boeing
13%213188Bombardier
24%307247Cessna
20%6151Dassault
35%2720Embraer
27%11389Gulstream
-0,7%140141Raytheon
18%885750*Total
11%109Airbus
20062005 Var. (%)OEMs
2 years backlog for most popular modelsSource:: GAMA *Considers 1 AvCraft Envoy 3 delivery
Shifting demand towards non-traditional markets
Sources: AMSTAT, Embraer Analysis and Honeywell
Europe12.6%
North America
60.7%
M East &Africa
4.0%
Asia
12.8%
L. America9.8%
� Russia
70 aircraft expected to be sold by year-end
� Middle East
5.2% fleet growth since 2000
� Eastern Europe
19,1% fleet growth
� Latin America
significant light jets demand
� Asia
50% deliveries increase in 2005
Honeywell Survey
5 years buying expectations
Embraer Forecast - Main Demand Drivers
Stock Market Performance
Corporate Profits Individual Wealth
Macro-economic factors (GDP)
Sources: Global Insight – May & September 2006 and GAMA
World
Asia PacificNot including Japan
6.4%
Latin America
Africa
Middle East
Eastern Europe
2006e
North America
3.4%
Western Europe
2.6%
4.8%
5.6%
7.2%
5.3%
3.9 %
4.0%
5.1%
5.8%
4.2%
4.5%
2007-16e
3.0%2.1%
3.2 %
Worldwide deliveries of new executive jets
2006: + 18% 2007-2016e: + 3.7% (cagr)
“Premium” customers are under served
Lower number of destinations Greater door-to-door elapsed time
Sources: Back AOG, Embraer analysis,
USA Europe
76%
54%47%
71%
50%43%
19%
34%39%
18%
33%40%
5%12% 14% 11% 17% 17%
2000 2006 2010e 2000 2006 2010e
Network Low Cost Regional
RP
K (
%)
Hassle factor: growing delays
Sources: FAA 2005 and Eurocontrol 2006
Terrorism threat
Higher security levels
Poor passenger services
AVIÔES EM FILA
MIA
Heathrow airport after the London’s terrorist threat
Congestion
USA
73% of pax at 35 hubs
90% of delays at main hubs
Europe
13% flight delays increase in 2005
Current Offer – Charter vs. Airline
The right VLJ can fill the gap
Preliminary data
$0
$2
$4
$6
$8
$10
0 100 200 300 400 500 600 700
Stage Length (nm)
Ro
un
d T
rip
Pri
ce(U
S$
x 1,
000) Light bizjet average price
Airline – Full Fare
Sources: The Air Charter Guide; Expedia
Huge Gap
Industry answer: business models evolution
Source:: Embraer (adapted from Jet Solutions)
Fra
ctio
nal
Ow
ner
ship
Use
d F
ract
ion
al
Jet
card
s m
emb
ersh
ips
Air
craf
t M
anag
emen
t
Ch
arte
r O
n-D
eman
d
Sch
edu
led
Ch
arte
r
“Biz
av”
Air
lineTra
dit
ion
al O
wn
ersh
ip
Commercial Aviation
Cost
WONDAIR
� Branded Charter
� New Business models
� Air Taxi
2007-2016 Market Forecast (deliveries) - World
23%
22%
10%
12%
11%
12%
8%
2%
Product Categories
11,115 executive jets ���� US$ 169 billion in the next 10 years
ULTRA LARGE
ULTRA-LONG RANGE
LARGE
SUPER MID-SIZE
MID-SIZE
MID-LIGHT
LIGHT
VERY LIGHT
* additional air taxi demand of 2,500-3,000 units4%9%
7%
11%
16%
24%
23%
6%
US$Units
Source: Embraer Analysis
Forecast
0
200
400
600
800
1000
1200
1400
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
ULTRA LARGE
ULTRA-LONG RANGE
LARGE
SUPER MID-SIZE
MID-SIZE
MID-LIGHT
LIGHT
VERY LIGHT
2007-2016 Forecasted Delivery Profile
* additional air taxi demand of 2,500-3,000 units Source: Embraer Analysis
Vision
To become a major player in the Business Aviation Market by
2015 through innovative and differentiating product and service
solutions with added value to our customers and shareholders.
Legacy 600®
Embraer Product Portfolio
Very Light
Light
Mid-light
Mid-size
Super Mid-Size
Large
Ultra-Long Range
Ultra-large
Phenom 100®
2008
Lineage 1000®
2008
Phenom 300®
2009
illustrative purposes only
Legacy 600®
Legacy 600® – Floor Plan and Performance
Cabin Volume 1,650 ft3
Cabin Length 49.8 ft
Zone 1 Zone 2 Zone 3Galley
Range* 3,250 nm
MMO Mach 0.80
Max ceiling 41,000 ft
TOFL** 5,551 ft
Baggage
compartment
volume: 240 ft3
*8 passengers @ 200 lb, NBAA IFR reserves (200 nm alternate, 35 min of holding @ 5,000 ft) ** MTOW; ISA; Seal Level
Legacy 600® – Differential Features
LCY Operation (range: 1,800 nm)
HSD – Wifi Sound Quality Improved
EFB Class IICertified for Cannes
Outstanding Hot & High capability
100 aircraft, 19 countries, the right choice
The world discovers the Legacy 600®
March 2007
13%
12%12%10%
2002 2003 2004 2005 2007-2016
27
Deliveries growth of 35% in 2006
1013 13
20
15%
13.6%
December 2006
2006
Market share - super midsize category
Phenom 100®
Phenom 100® - Interior Design
illustrative purposes only
Phenom 100® - Floor Plan and Performance
Preliminary Data - illustrative purposes only
Baggage Compartment - 45 cu.ft
FWD Baggage Compartment - 5 cu.ft Wardrobe - 5 cu.ft
Range* 1,160 nm
VFR range ** 1,320 nm
MMO Mach 0.70
Max ceiling FL 410
TOFL*** 3,400 ft
* 4 occupants @ 200 lb, NBAA IFR reserves (100 nm alternative, 35 min) ** 4 occupants @ 200 lb, VFR 45 min reserves *** MTOW, ISA, Sea Level
Clients Testimony
Source: Embraer press-releases
“Combined with their great reputation for quality and durability,the Phenom’s fit our business model extremely well.” said Jim Burns, Magnum Jet’s CEO.
Mr. Jim Burns, CEO
“We are delighted to have Embraer as a key stakeholder in our business given its exemplary track record of innovation in aircraft design and production. ”
Mr. Dómhnal Slattery,Founder and Chairman
“The Phenom 100 is a perfect addition to our fleet ”
Mr. Matt Doyle,VP of Sales
illustrative purposes only
First Phenom 100® Assembly
Fuselage & wing arrival at Main Plant (SJK)
illustrative purposes only
Fuselage & wing junction
28 Mar 2007
First Phenom 100® Assembly
illustrative purposes only
Phenom 300®
by
Phenom 300® - Interior Design
illustrative purposes only
Phenom 300® - Floor Plan and Performance
Baggage Compartment - 66 cu.ft
FWD Baggage Compartment - 5 cu.ft Wardrobe - 5 cu.ft
Range* 1,800 nm
MMO Mach 0.78
* 6 occupants @ 200 lb, NBAA IFR reserves (100 nm alternative, 35 min) ** MTOW, ISA, Sea Level
Max ceiling FL 450
TOFL** 3,700 ft
Preliminary Data - illustrative purposes only
Phenom 300® - Totally New Designed Aircraft
High Availability - Low Turn-Around Time (TAT)
Single Point Refueling
Externally Serviced Lavatory
Brake-by-wire with standard anti-skid
illustrative purposes only
Phenom 300® - Expert Opinion
illustrative purposes only
27 Mar 2007
Phenom 300® - First Metal Cut
illustrative purposes only
More than 350 firm orders in 24 countriesDecember 2006
The world also discovers the Phenom Jets
illustrative purposes only
Lineage 1000®
Lineage 1000® - Interior
illustrative purposes only
Preliminary dataLayout Configuration – flexibility illustrative purposes only
Lineage 1000® - Interior Flexibility
Lineage 1000® - Interior
Produced by
Designed by
illustrative purposes only
Lineage 1000® - Interior
Produced by
Designed by
illustrative purposes only
Lineage 1000® - Interior
Produced by
Designed by
illustrative purposes only
Lineage 1000® - Interior
Produced by
Designed by
illustrative purposes only
Lineage 1000® - Interior
Produced by
Designed by
illustrative purposes only
Lineage 1000® - Interior
Produced by
Designed by
illustrative purposes only
Lineage 1000® - Performance
Range* 4,200 nm
MMO Mach 0.82
* 8 passengers @ 200 lb, NBAA IFR reserves (200 nm alternative, 35 min of holding @ 5,000 ft)) ** MTOW, ISA, Sea Level
Max ceiling 45,000 ft
TOFL** 6,660 ft
Preliminary Data - illustrative purposes only
Customer Support & Services
Customer Support & Services - Vision
To become a leading Support & Services provider in the
Business Aviation Market within 3 years through a solid
network, genuine customer relationship and best practices.
Building Up Experience
37 years of customer support
� Maintenance Services � Parts Support & Repairs� Field & Technical Support � Training Program� Embraer Executive Care programs
Integrated Solutions
Service Centers Network - global coverage4 new owned service centers: 3 in US and 1 in Europe; in addition to 3 existing ones
Authorized service centers network expansion to up to 38 locations
Logistics and Parts SupportDistribution Centers with mixed own and third party Logistics
Phenom Jets Partner: UPS
Field and Product SupportMaintenance Tracking and Planning Service unveiling (Flightdocs)
Call Center evolution into a Contact Center concept by middle 2008
Training ProgramsPhenom Jets: Embraer x CAE Joint Venture
Training Centers: 2 in USA and 1 in Europe
Executive Care Programs
Customer Support Solution (NBAA 2006)
Preliminary Data
Service Network for Embraer Executive Jets
Worldwide Network (middle 2008): 45 Service Centers
7 Embraer Wholly Owned
38 Authorized Service Centers
Preliminary Data
Sales Financing Solutions
Sales Financing Solutions
Embraer announced a joint referral program with
Bank of America to finance business jets for
Embraer’s customers.
� Phenom and Legacy jets financing
� expedited credit decisions
� promotional events & materials joint work
Deal with U.S. Bank includes customized
financing for Embraer’s U.S. business jet
customers along with a Multi Service Aviation
Affinity Card.
� Custom financing solutions for Phenom,
Legacy and Lineage buyers
� Multi Service Aviation Affinity Card with
rewards program
Sales and Production Plan
Results and Production Plan
2005 2006 2005 2006 2005 2006
Bookings(US$ billion)
Results - Embraer Executive Jets
Revenues(US$ billion)
0.3
0.6 ~ 0.6
~ 2.0
US GAAP unaudited numbers
Executive Aviation Share of Total
Embraer Revenue(%)
7.3% 15.3%
2007
Legacy 600®
200620052004
25 - 30272013 (units)
Expected Production Plan - Legacy 600®
illustrative purposes only
Expected Production Plan - Jatos Phenom
2009
2008
120 - 150
15 - 20 (units)
(units)
Phenom 100®
Phenom 100®& Phenom 300®
illustrative purposes only
20092008
3 - 4up to 2 (units)
Lineage 1000®
Expected Production Plan - Lineage 1000®
illustrative purposes only
Thank You !
This presentation is the property of Embraer - Empresa Brasileira de Aeronáutica S.A. ("Embraer") and shall
not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent.
Embraer reserves the right to revise this document whenever occasioned by product improvements,
governmental regulations or other good cause.
All images: figures, finishing materials and colors are for illustration purpose only, and may not represent the
real and final product accurately.
Some features are optional items not included in the baseline aircraft and are subject to price increase and
lead-time analysis.
All data presented shall not be used as guarantee. Guaranteed specifications are listed in the technical
description and represent the only binding guarantee.
In the event of any conflict between this presentation and the technical description, the technical description
shall govern.