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Commercial Aviation UpdatePaulo Cesar Silva – President, Commercial Aviation
Nov/2011
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
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.
Forward Looking Statement
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Contents
Strategic Objectives
E-Jets Family
Market Outlook 2011-2030
Product Development
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
• $250 million EBIT
from Services and
Support in 2025
Strategic Objectives:
• Leadership in the
Commercial Aviation
up 120 seats
Products that satisfy market
needs (reliable, efficient,
comfort, performance and
economics)
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Individual Entertainment Systems
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Long Haul Flying & Dual Class
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Right-Sizing for Profitability
06:00
08:00
10:00
12:00
14:00
16:00
18:00
20:00
Jun/11Dec/08
Seats 2,064 1,140
E175
E175
E175
E175
E175
E175
E175
E175
E175
E175
E175
E175
E175
E175
E175
MD88
MD88
MD88
MD88
MD88
MD88
MD88
MD88
MD88
MD88
MD88
MD88
MD88
MD88
E175
New York - Washington
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
London City Airport Operation
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Growing from Smaller Jets
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
“The EMBRAER 190 fleet will be key in ensuring Kenya Airways
becomes the leading carrier on the continent, interlinking African cities
and, through our Nairobi hub, connecting Africa to the world,”
(Dr. Titus Naikuni, Group MD & CEO)
Building Frequency & Network
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Introducing Low Cost Air Travel
E-Jets Deploymenthelping airlines to be more efficient
Source: OAG (1Q11)
Right-sizing: 48%
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
More than 1,000 E-Jets ordered
More than 800 delivered
Commercial Aviation(as of Sep 30th., 2011)
Firm
Orders
EMBRAER 170 188
EMBRAER 175 189
EMBRAER 190 531
EMBRAER 195 110
E-Jets 1,018
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Market Confidence on E-Jets in 2011
Customer Firm Orders
Dniproavia 10 E190
TRIP 3 E190
Air North 1 E170
Alitalia 15 E175 + 5 E190
KLM 5 E190
CDB Leasing (China Southern) 10 E190
Air Astana 2 E190
Air Lease 10 E190
GECAS 8 E190
Kenya Airways 10 E190
Lufthansa 5 E195
Azul 11 E195
Undisclosed 1 E175
Jan-Oct/2011 96
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Market Share - World (Jets 61-120 seats)
Considering accumulated Net Orders up to Sep/11.
Embraer: 170/175/190/195 Sukhoi: Superjet 100
Bombardier: CRJ700/900/1000; CS100 Comac: ARJ-21
Airbus: A318 Antonov: An-148/158
Boeing: B737-600 Mitsubishi: MRJ90
0%
10%
20%
30%
40%
50%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Products that satisfy market needs
(reliable, efficient, comfort, performance
and economics)
Diversified customer base
Strategic Objectives:
• Leadership in the
Commercial Aviation
up 120 seats
• $250 million EBIT
from Services and
Support in 2025
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
E-Jets Customer Base (by Business Model)
Source: Embraer (Jun/2011)
32%
41%
27%
Regional Airlines
Network Airlines
(% of E-Jets Fleet+Backlog)
Low Cost Carriers
• Right-sizing
• New markets
• Right-sizing
• New Markets
• Natural Growth
• Right-sizing
E-Jets efficiency in all business models
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
E-Jets Global Presence
E170 E175 E190 E195
Source: OAG (3Q2011)
Diversified customer base across five continents
60 airlines in 40 countries
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Products that satisfy market needs
(reliable, efficient, comfort, performance
and economics)
Diversified customer base
Customer base expansion
through leasing companies
Strategic Objectives:
• Leadership in the
Commercial Aviation
up 120 seats
• $250 million EBIT
from Services and
Support in 2025
around
245 customers
worldwide
United States
Hawaiian Airlines
Southwest Airlines
Spirit Airlines
United Continental- Holdings
Canada
Air Canada
Sunwing Airlines
WestJet
Mexico
AeroMexico
interjet
volaris
Trinidad & Tobago
Caribbean Airlines
Brazil
Gol Airlines
TAM Airlines
Trip Linhas Aereas
Colombia
Avianca
France
Air Austral
Air France
Turkey
SunExpress
Germany
airberlin
XL Airways - Germany
Ireland
Aer Lingus
Norway
Norwegian Air - Shuttle
ASA
Spain
Air Europa
vueling
The Netherlands
KLM
transavia.com
Italy
Alitalia
Bulgaria
Bulgaria Air
Czech Republic
Travel Service, A. S.
United Kingdom
Thomas Cook
Russia
S7 Airlines
South Africa
South African - Airways
Kenya
Kenya Airways
Ethiopia
Ethiopian Airlines
United Arab Emirates
Air Arabia
Etihad
China
Air China
Air Macau
China Eastern- Airlines
China Southern
Hainan Airlines
Shanghai Airlines
Sichuan Airlines
Spring Airlines
Xiamen Airlines
India
GoAir
Kingfisher Airlines
SpiceJet
Indonesia
Garuda Indonesia
Japan
Skymark Airlines
Kazakhstan
Air Astana
Sri Lanka
Mihin Lanka
SriLankan Airlines
Malaysia
AirAsia
Vietnam
Vietnam Airlines
Korea
Asiana Airlines
Korean Air
Mongolia
MIAT Mongolian Airlines
Thailand
Orient Thai Airlines
Australia
Virgin Australia
New Zealand
Air New Zealand
Air Lease Customer Base:
around
60 customers
worldwide
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
E-Jets supported by Leasing Companies
Source: Embraer, as of September 2011
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
0 Leased
28 Leased
(24%)
141 Leased
(29%)
170 Leased
(28%)
233 Leased
(29%)
70 Leased
(33%)
107 Leased
(32%)
189 Leased
(27%)
Backlog as of July 2011Source: ACAS, Embraer’s Sales Financing
E-Jets Operating Lease Fleet Evolution
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
Products that satisfy market needs
(reliable, efficient, comfort, performance
and economics)
Diversified customer base
Customer base expansion through
leasing companies
Excellence in Customer
Experience (ECE)
Strategic Objectives:
• Leadership in the
Commercial Aviation
up 120 seats
• $250 million EBIT
from Services and
Support in 2025
THIS INFORMATION IS EMBRAER PROPERTY AND CANNOT BE USED OR REPRODUCED WITHOUT WRITTEN AUTHORIZATION
Services Portfolio Enhancement: e-Solutions
Flight Ops, Technical &
Maintenance:
Up-to-date information
anywhere
• maintenance & operations
technical publications
Material:
Streamline your purchasing
process
• e-commerce, e-pool, order
tracking and B2B
integration
Manage your E-Jets fleet
health
• health monitoring system
and troubleshooting
THIS INFORMATION IS EMBRAER PROPERTY AND CANNOT BE USED OR REPRODUCED WITHOUT WRITTEN AUTHORIZATION
Global Presence: MRO Network
25 Service Centers
28 in 2012
Updated: November 2011
THIS INFORMATION IS EMBRAER PROPERTY AND CANNOT BE USED OR REPRODUCED WITHOUT WRITTEN AUTHORIZATION
ECE Project: Customer Care Center
Illustrative pictures
•Will provide 24/7, fast, integrated
and comprehensive solutions
with clear and accessible status
information for customers,
covering Technical (AOG,
Routine, Tech Pubs and MRB)
and Logistics (Parts and
Shipment)
•Single point of contact for all
technical and material inquires
• And, on-demand on-site support
and aircraft recovery services
(Go/Rescue Team)
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
www.embraercommercialjets.com/marketoutlook
global overview
Trends andanalysis
Market Outlook 2011-2030
Environmental Pressure Emissions and noise restrictions getting tougher
Development of new technologies (retirement of older jets)
Use of alternative fuels, lower fuel consumption and emissions
Business EfficiencyMore consolidations & mergers and fewer start-ups
Capacity management and cost reduction
Match aircraft capacity to market demand (right-sizing)
Increased Disposable IncomeMiddle class expansion
New markets opportunities for smaller jets
Increased CompetitionMore air services liberalization (Asia and East Europe)
LCC’s expansion (mostly in Asia)
Weak revenue environment
Growth of Emerging Markets Balance of global economic power shifting to East and South
Medium and small cities driving economic growth
Long term air transport demand growth
Global Trends
The information contained herein is property of Embraer and shall not be copied or used without Embraer s written consent
5.2% annual world RPK growth
7.5% China
7.2% Latin America
6.9% Middle East
6.1% Asia Pacific
5.9% CIS
5.4% Africa
4.4% Europe
3.5% North America
Market Outlook 2011-2030
market forecast
By thenumbers
Market Outlook 2011-2030
Projected Deliveries by Segment
31,435 new aircraft deliveries total market value of US$ 3 tri*
7,225 aircraft
(23%)
* At list price
60 Airlines. 40 Countries
Embraer E-Jets