2004* 5o.Encontro Anual De Investidores Da Embraer Mercado Civil (DisponíVel Apenas Em InglêS)
2003* Road Show Sales Finance Nov 03 (ApresentaçãO Encontra Se DisponíVel Apenas Em InglêS)
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Transcript of 2003* Road Show Sales Finance Nov 03 (ApresentaçãO Encontra Se DisponíVel Apenas Em InglêS)
InstitutionalPresentation
November 2003
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.
Company Highlights
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
Global PresenceGlobal Presence
Located in São José dos Campos, BrazilDesigns and manufactures aircraft for the commercial, defense and corporate markets and provides after-sales supportFloor space: 3.05 million sq.ft Number of employees in São José dos Campos: 10,464
Parent Company
BRAZILBolivia
Argentina
Peru
Colombia
Urugua y
Paci
fic O
cea
n
São P aul o
Venezuela
Chi
le
Paraguay
Atla
ntic
Oce
an
BRAZILBolivia
Argentina
Peru
Colombia
Urugua y
Paci
fic O
cea
n
São P aul o
Venezuela
Chi
le
Paraguay
Atla
ntic
Oce
an
São José dos Campos
Global PresenceGlobal Presence
Located in Eugênio de Melo, a district of São José dos CamposThis unit has a total area of 3.6 million sq. ft., of which 527.050 sq.ft. are industrial buildings used in the development and manufacturing of tooling equipment, piping, as well as for performing welding, milling and wire looming operations
Embraer Eugênio de Melo
BRAZILBolivia
Argentina
Peru
Colombia
Urugua y
Paci
fic O
cea
n
São P aul o
Venezuela
Chi
le
Paraguay
Atla
ntic
Oce
an
BRAZILBolivia
Argentina
Peru
Colombia
Urugua y
Paci
fic O
cea
n
São P aul o
Venezuela
Chi
le
Paraguay
Atla
ntic
Oce
an
São José dos Campos
Global PresenceGlobal Presence
Located in Gavião Peixoto, BrazilManufacturing facility that will host the final assembly activities of the company´s corporate and defense aircraft, as well as a runway for flight testsSite area: 4.12 million sq.ft.Number of employees: 329Start-up of operations in October 2001
Embraer Gavião Peixoto
BRAZILBolivia
Argentina
Peru
Colombia
Urugua y
Paci
fic O
cea
n
São P aul o
Venezuela
Chi
le
Paraguay
Atla
ntic
Oce
an
BRAZILBolivia
Argentina
Peru
Colombia
Urugua y
Paci
fic O
cea
n
São P aul o
Venezuela
Chi
le
Paraguay
Atla
ntic
Oce
an
Gavião Peixoto
Global Presence
Operations in Brazil, USA, Europe, Asia and Austrália
BrasilGavião Peixoto
BotucatuSão José dos Campos
EUANashville
AtlantaPalm Beach Gardens
Fort LauderdaleFrança
Le Bourget
GBWeybridge China
BeijingHarbin
AustráliaMelbourne
CingapuraCingapura
April / 97: minimum of 3,200 people
12,227
6,087 4,319 4,4946,737
11,048
8,302
3,849
94 95 96 97 99 00 01 02
10,334
98
12,607
BRAZIL 11,779*
USA 484
CHINA 126
SINGAPORE 10EUROPE 199
AUSTRALIA 09
Sept 03
Number of Employees
* ELEB employees included
BusinessSegment
Diversification
Current SalesDistribution
FY2002
Expected Sales DistributionIn Five Years
Defense
Revenue Diversification
30%30%
CommercialCommercial70%70%
CorporateJets
CustomerService
Defense5%
Customer Services
6%Corporate Aviation
6%
Commercial83%
DefenseMarket
Defense Products
Today
Embraer’s Airline Customers
&Orderbook
193
156
20
17
FirmBacklog
6871,371491880Total
5091,130465665ERJ 145
741142094ERJ 140
1041276121ERJ 135
DeliveriesTotalOptionsFirm
ERJ 145 Family Orderbook
(September 2003)
ERJ 145 Order Book (as of August 2003)COUNTRY CUSTOMER FIRM OPTIONS TOTAL DELIVERED FIRM
ORDERS BACKLOGAustria RHEINTALFLUG 3 0 3 3 0Brazil RIO-SUL 16 0 16 16 0China SICHUAN 5 0 5 5 0England MANX 23 3 26 23 0
BRITISH MIDLAND 11 5 16 9 2BRYMON 7 14 21 7 0
France REGIONAL 17 0 17 14 3FLANDRE AIR 7 6 13 5 2PROTEUS 11 1 12 8 3
Germany CIRRUS 1 0 1 1 0Greece AXON 3 0 3 3 0Guadaloupe AIR CARAIBES 2 0 2 2 0Italy ALITALIA 14 7 21 13 1Holland KLM EXEL 3 2 5 3 0Luxembourg LUXAIR 9 2 11 9 0Poland LOT POLISH 14 0 14 14 0Portugal PORTUGALIA 8 0 8 8 0Sweden SKYWAYS 4 10 14 4 0Switzerland CROSSAIR (SWISS) 25 15 40 25 0U.S.A. EXPRESS JET (COEX) 245 100 345 187 58
AMERICAN EAGLE 136 42 178 56 80WEXFORD 38 0 38 38 0REPUBLIC (Chautauqua) 9 70 79 7 2TRANSTATES 15 17 32 12 3MESA 36 45 81 32 4GATX 1 0 1 1 0GECAS (PB Air - Thailand) 2 0 2 2 0US AIRWAYS 0 132 132 0 0
T O T A L 665 471 1136 507 158
EMBRAER 170/190 Family Orderbook
260150110EMBRAER 190
553308245Total
453015EMBRAER 195
248128120EMBRAER 170
TotalOptionsFirm
(September 2003)
In 3Q03 - US$ 27.7 billion in total orders, including US$ 10.4 billion in firm orders
Backlog
US$ billion
10.410.37.99.010.711.4
6.44.13.01.2
17.316.8
11.313.2
12.712.7
11.3
0
5
10
15
20
25
30
1996 1997 1998 1999 2000 2001 2002 1Q03 2Q03 3Q03
OptionsFirm Orders
1.23.0
4.1
17.7
24.1 23.4 22.2
19.2
27.1 27.7
Airline Market Trends and
Outlook
Orlando José Ferreira NetoDirector of Market Intelligence
Scheduled airline services (aircraft from 19 up to 120 seats):Capacity share % by region
NorthAmerica54%North
America54%
Latin America
& Caribbean9%
Latin America
& Caribbean9%
Europe26%Europe26%
China1%
China1%
Africa &Middle East
4%Africa &
Middle East4%
Regional Airline Market
Fleet in Service
Turboprop 6262 Regional Jet 2402Total Fleet Turboprop 3047 Regional Jet 2292Total Fleet Turboprop 6262 Regional Jet 2402Total Fleet Turboprop 3047 Regional Jet 2292Total Fleet
1293Regional Jet
1244Turboprop
1293Regional Jet
1244Turboprop
168Regional Jet
348Turboprop
168Regional Jet
348Turboprop
66Regional Jet
181Turboprop
66Regional Jet
181Turboprop94Regional Jet
532Turboprop
94Regional Jet
532Turboprop
55Regional Jet
12Turboprop
55Regional Jet
12Turboprop
616Regional Jet
730Turboprop
616Regional Jet
730Turboprop
Asia/Pacific6%Asia/
Pacific6%
Source: OAG (Jan/2003), Fleet PC (Dec/2002)
Market Evolution - USA
Share of US Domestic Passenger Enplanements
Source: AvStat Associates, Inc. analysis of U.S. DOT data.
91%84%
71% 65%
7%16%
19%
5% 9% 13% 16%3%
0%
20%
40%
60%
80%
100%
1980 1990 2000 2002
Majors Low Cost/New Entrants Regionals
Share of Intra-European RPKs
86% 82% 82% 81% 79% 78% 73% 73%
8%
14% 17% 17% 17% 18% 17% 19% 19%
8%1%
1% 1% 2% 4% 5%
0%
20%
40%
60%
80%
100%
1995 1996 1997 1998 1999 2000 2001 2002
Majors Low Cost Regionals
Source: AEA, ERA, ATI2002 Low Cost Data Estimated
Low Cost: easyJet + Go + Ryanair
Market Evolution - Europe
-3% -1% -1% -3% -2%
-33%
-18%-13%
-6%-12% -10% -7%
-11% -8% -7% -7% -7%
29%
13%
2%
14%
-2%
17%9% 7%
2% 2% 1%6%
13%5%
14%
2%
15% 18%23%
34% 32% 34%27%
20%
71%
37%
28%
41%
31%
-21%
3%0%5%
-23%
-2%
Jan/
01 Feb
Mar
Apr
May
Jun/
01 Jul
Aug Se
p
Oct
Nov
Dec
/01
Year
200
1
jan/
02 Feb
Mar
Apr
May
jun/
02 Jul
Aug Se
p
Oct
Nov Dec
Year
200
2
RPM
Gro
wth
- Yr
/Yr %
Cha
nge
Domestic ATA Regional RAA
Source: Top Regionals, RAA, ATA
Airline Market - USA
12%
4% 4%5%
-1%
5%4% 4%
-3%
-12%-13%-13% -12%
-9% -9% -9%
-6%
-9% -10%-7%
-2%
8%6%
9%
-5%
13%
7%9%
4%
9% 8% 8%
4%6% 6% 8%
10% 10%8%
4% 4% 4%6%
13%
18%
13%15%
9%
0,3%
5%
2%
-5%
Jan/
01 Feb
Mar Ap
r
May
Jun/
01 Jul
Aug
Sep
Oct
Nov
Dec/
01
Year
200
1
Jan/
02 Feb
Mar Ap
r
May
Jun/
02 Jul
Aug
Sep
Oct
Nov
Dec
Year
200
2
RPK
Gro
wth
- Yr
/Yr %
Cha
nge
Intra European+Domestic AEA Regional ERAA
Airline Market - Europe
Source: ERAA, AEA
Source: Back OAG (American, Continental, Delta, United, and US Airways)
Turboprop ReplacementJet Replacement
Industry in Transition after Sep 11th
Rightsizing Capacity vs. Demand: Routes Transferred to RJs
Source: Back OAG Air France, Alitalia and British Airways
Rightsizing Capacity vs. Demand: Routes Transferred to RJs
Turboprop ReplacementJet Replacement
Industry in Transition after Sep 11th
Source:
US Domestic Yield Evolution
10
11
12
13
14
15
16
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Yiel
d (U
S¢/R
PM)
1998 1999 2000 2001 2002 2003
An Industry in Transition
• Fundamental Correction – Not a Traditional Cycle
• Decreasing Average Fare Values
• Decreasing Capacity (USA)
• Increasing Low Cost Carrier Critical Mass
• Increasing Regional Jet Critical Mass
• Pressure on Existing Worldwide Airline Model
• Major USA Airlines re-inventing themselves
• Regional affiliates strongly being used as defensive tools (point-to-point X hub and spoke)
• Low cost carriers being inserted in the current airline model
3. Optimization of Old and Inefficient NarrowbodyServices
• Rightsizing aircraft capacity with demand
• Long & thin routes• New market opportunities• Profit potential
Sustaining Regional Jet Growth
1. Turboprop Substitution• Productivity improvements
• Passenger jet preference
2. Frequency, Frequency . . .
Regional Jet Networks - USA
Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
Jan 1995 – 76 Routes
Jan 2003 – 1874 Routes
Jan 1995 – 104 Routes
Jan 2003 – 1072 Routes
Regional Jet Networks - Europe
Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
High Frequency Services
From Manchester, UK Airlines: BDTo Edinburgh, UKDate Jan/2003
Days Depart Arrive Eqp Stop Duration
xSaSu 7:00a MAN 07:55a EDI ER3 0 00:55
xSaSu 8:55a MAN 09:50a EDI ER4 0 00:55
xSaSu 12:15a MAN 01:15p EDI ER4 0 01:00
xSaSu 5:00p MAN 06:00p EDI ER4 0 01:00
xSaSu 7:55p MAN 08:50p EDI ER4 0 00:55
Jet Complement
From Düsseldorf, Germany Airlines: AZTo Milan, ItalyAircraft type: 50 seats Regional Jets January 2003
Origin Destination Range Eqp Days of Departure Arrival(km) Operation
07:45p
05:30p
11:45a
07:00a
08:35p
04:10p
11:45a
07:00a
daily
daily
daily
daily
daily
daily
daily
daily
09:20p
07:05p
01:15p
08:30a
10:10p
05:45p
01:20a
08:35a
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
ERJ 145644MXP
A319644MXP
A319644MXP
ERJ 145644MXP
ERJ 145644MXP
ERJ 145644MXP
ERJ 145644MXP
MD80644MXP
07:45p
05:30p
11:45a
07:00a
08:35p
04:10p
11:45a
07:00a
daily
daily
daily
daily
daily
daily
daily
daily
09:20p
07:05p
01:15p
08:30a
10:10p
05:45p
01:20a
08:35a
DUS
DUS
DUS
DUS
DUS
DUS
DUS
DUS
ERJ 145644MXP
A319644MXP
A319644MXP
ERJ 145644MXP
ERJ 145644MXP
ERJ 145644MXP
ERJ 145644MXP
MD80644MXP
Janu
ary
2002
Janu
ary
2003
Jet Replacement (Rightsizing)
Orig Dest Duration Range Eqp Monthly FrequenciesJan 02 Aug02 Jan03
BHX FRA 01:40 766 A319 49 47 0ER4 56 26 76
BHX GLA 01:00 415 A319 127 114 0ER4 54 58 57
BHX AMS 01:15 443 B737 4 43 0RJ 95 61 84
BHX DUS 01:20 597 B737 79 74 0ER4 26 33 29
BHX EDI 01:00 402 A319 149 152 0ER4 32 0 34
From Birmingham, UK Airlines: BATo EuropeDate Jan/2003
Responding to Market Needs
37 Seats
44 Seats
50 Seats
• Same engine (AE 3007) hardware
• Same systems and components
• Same ERJ crew type rating
• Common maintenance and training procedures
• Common ground support equipment
Aircraft Commonality
ERJ’s share 95% parts, systems and training commonality within the aircraft family
FA 05/May/03
The ERJ 135/140/145 Family Operators havethe necessary infrastructure to support
ERJ 145XR operations
Interior – Cross-Section
(.41 m)
(.44 m)
17.3 in
16.1 in
73.0in(1.85 m)
(2.53 m)99.5 in
CRJ200
(.44 m)
17.0 in
(.43 m)
83.0 in(2.10 m)
72.0 in(1.82 m)
17.3 in
ERJ 145
Exclusive businessman’s dream premium single seats.One additional inch in aisle width allows easier passenger access.11% more cabin width per seat provides more shoulder clearance.
ERJ 145 advantages:
3 abreast grants passengers their most desirable seat.
Typical OEWTypical Mission ReservesA1/3 EnginePax @ JAR-OPS RulesISANo wind
ERJ 135: Steep Approach CapableRange from LCY 350 – 600 nm
Field Performance
“Overall, the ERJ 145 has the lowest per trip costs (of all compared aircraft in its class) ...”
AIRCRAFT ECONOMICS -issue 47 - Jan/Feb 2000
As seen from the Aircraft Economics final comparison chart the ERJ 145 has 8.8% lower DOC per trip than the CRJ200.
Operating Cost
Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category.
The Aircraft Commerce magazine article confirms the operating costs advantage of the ERJ 145 to be around 10% better than the CRJ200.
The ERJ 145 offers aircraft-mile costs between 9% and 11% better than the CRJ.
AIRCRAFT COMMERCE issue 6 - Jul/Aug 1999
Operating Cost
Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category.
Aircraft Economics magazine article credits again operating costs advantage to the ERJ 145 over the CRJ200.
The ERJ 145 offers 7% better aircraft-mile costs than the CRJ200.
AIRCRAFT ECONOMICS issue 61 - Jan/Feb 2002
Operating CostMajor airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category.
2002
2001
2000
1999
199819971996
19950
100.000
200.000
300.000
400.000
100 300 500 700 900 1100 1300
Sector Distance (Miles)
Annual Flights
Evolution to Longer Stage Lengths
Embraer’s answer to the market request for longer range missionsEmbraer’s answer to the market
request for longer range missions
First Delivery 24th October 2002
First Delivery 24th October 2002
Introducing the ERJ 145 XR Version
FA 05/May/03
ERJ 145 XR2,000 nm Range
ERJ 145 XR2,000 nm Range
RJ Network – USA (Oct/2003)
Source: Back OAG (ERJ 145/140/135, CRJ-100/200, 328Jet routes)
< 2 Hours
2 to 3 Hours
> 3 HoursRegional Jets
Routes< 2 Hours
2 - 3 Hours> 3 Hours
Total68%23%
GrowthJan - Oct 2003
9%78%
• lower fuel consumption• superior single engine ceiling• VMO, MMO and VFE increases
• increased range • better field performance• improved hot & high operation
AE3007A1E engineAE3007A1E engine
WingletWinglet
Supplementary fuel tank insidewing to fuselage fairings
Supplementary fuel tank insidewing to fuselage fairings
Reinforced fuselage structureto allow higher design weightsReinforced fuselage structureto allow higher design weights
ERJ 145 XR Design Features
ERJ 145 XR2,000 nm
Houston
Evolution of RegionalNew Nonstop Market Opportunities
FAR Reserves
Taxi allowance14 minutes
Air Maneuvers3 minutes
Long Range Cruise
Pax Weight & Baggage 90.7 kg (200 lb)
85% Annual Winds
Range Capability from Denver
BOW with thrust reverser
Airp. temp. @ 36ºC (99% summer reliability)
Airp. temp. @ 28ºC(85% summer reliability)
ERJ 145 XR
ERJ 145 Family offers outstanding performance from Hot & High airports
1340 nm
.
Maximum Take Off Weight 24,100 kg 22,000 kg 24,041 kg
Maximum Landing Weight 20,000 kg 19,300 kg 21,319 kg
Maximum Zero Fuel Weight 18,500 kg 17,900 kg 19,958 kg
Basic Operating Weight 12,838 kg ¹ 12,361 kg ¹ 13,834 kg
Maximum Fuel Load 6,032 kg 5,187 kg 6,489 kg
Maximum Payload 5,662 kg 5,539 kg 6,124 kg
Maximum Useful Load 11,262 kg 9,639 kg 10,207 kg
Structural Design Efficiency ² 0.88 0.78 0.74
Standard Single Class Seating 50 50 50
Design Weights
†
¹ Includes reinforced cockpit door and all typical options such as thrust reversers, navigation equipment, etc.² Structural Design Efficiency = Max Useful Load / Basic Operating Weight
ERJ 145 LR CRJ200 LRERJ 145 XR
6% better
19% better
ERJ 145 LR is almost 6% better than CRJ200 in Structural Design Efficiency. ERJ 145XR is 19% better than CRJ200 in SDE, leading therefore to lower operating costs.
Engines AE3007 A1E AE3007 A1 CF34-3B1
Block Time 80 min 80 min 80 minISA enroute, max pax @ 90.7 kg14 min taxi, FAR reserves, 100 nm alternate
Block Fuel 1,309 kg 1,304 kg 1,315 kgISAenroute, max pax @ 90.7 kg14 min taxi, FAR reserves, 100 nm alternate
Take Off Field Length 1,460 m 1,435 m 1,455 mISA, SL, max pax @ 90.7 kgFAR reserves, 100 nm alternate
Landing Field Length 1,315 m 1,315 m 1,415 mISA, SL, max pax @ 90.7 kgFAR reserves, 100 nm alternate
ERJ 145 XR CRJ200 LR50 pax 50 pax
ERJ 145 LR50 pax
400 nm sector
Performance - Mission
Block Times and Block Fuels are about the same for all models.
234 234 234
155 155 155
271 281 310
39 4043
0
100
200
300
400
500
600
700
800
ERJ 145 LR50 seats
ERJ 145 XR50 seats
CRJ200 LR50 seats
CO
C/T
rip (U
S$)
CREW FUEL MAINTENANCE FEES
COC per Trip
699 710742
500 sm sector
ERJ 145 XR offers further advantages at no additional operatingcost with regard to LR version.
Economic Assumptions (USA)Utilization 2,500 FH/yearFuel price 0.75 USD/USGalFuel density 6.7 lb/USGalCrew Function of Block TimeLanding fees Function of MLWMaintenance Period 5 yearsMaint, Labor 25.00 USD/MH
ERJ 145 XR Compared to CRJ 200 LR - SUMMARY
List Prices (K US$ - e.c. Dec 2002)
Performance
• Lower Basic Operating Weight
• Better SDE (Structural Design Efficiency)
• More integrated systems
• ERJ 145 XR : 21,300• CRJ 200 LR : 23,200
• Higher range @ 50 pax• Better Hot & High performance
Design
• Lower approach speeds
• Better short field performance
Operational Characteristics
Economics• Better Operating Costs
Range*1,750 nm
CRJ200 LR
ERJ 145 XR
Range*2,000 nm
* @ MTOW, LRC, 50 pax @ 90.7 kg.
0
50
100
150
200
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
ERJ145LR
Source: US DoT O&D data, 2Q, 2002, EmbraerStage Length – Miles
US Domestic Passenger DemandPa
ssen
gers
per
Day
Eac
h W
ay
ERJ145ER
ERJ135 ER ERJ135 LR
ERJ 145 Family Positioning
ERJ145 XR
Opportunities Beyond the
Current Airline Model
Seat Capacity
25 50 75 100 125 150 175+
B75
7
B73
7
A32
0
A31
9
CR
J
B75
7
B73
7
B73
7
B73
7
ERJ
B75
7
B73
7
MD
80
ERJ +
CR
J
B75
7
B73
7M
D80
B73
7
ERJ +
CR
J
B75
7
A32
0
MD
80B
737
A32
0
B73
7A
319
ERJ +
CR
J
B75
7
A31
9
A32
0
ERJ +
CR
J
70 to
110 Seats
Widening Seat Capacity Gap - USA
No Artificial Constraints in Europe
25 50 75 100 125 150 175+Seating Capacity
37 – 8037 37 –– 8080 103 – 270+103 103 –– 270+270+
37 – 8537 37 –– 8585 112 – 206+112 112 –– 206+206+
50 – 7050 50 –– 7070 109 – 169+109 109 –– 169+169+
44 – 7044 44 –– 7070 131 – 283+131 131 –– 283+283+
50 - 8050 50 -- 8080 108 – 189+108 108 –– 189+189+
110 – 180+110 110 –– 180+180+50 50 –– 111111
50 – 213+50 50 –– 213+213+
70 to110 Seats
70 to110 Seats
34% of flights depart with loads
appropriate
for 100-110 seat aircraft27% of flights depart
with loads appropriate
for 70-80 seat aircraft
The Need for 70-110 Seat Jets
Passengers per Departure<50<50 5050 100100 140140
17%
3%
2%
4%
9%
14%
17%
13%
8%7%
4%
2%
Per
cent
age
of
Tota
l Dep
artu
re
6060 7070 8080 9090 110110 120120 130130 >150>150Source: Back (US DOT T100 Jan-Sep 2002)
Rightsizing and Frequency IncreaseAverage Daily Frequency by City-pairRoutes operated by Jet Aircraft from 91 – 175 seats up to 2000 nm
Source: OAG (Jan/2003)
Market Opportunities - Global
33%
27%
20%
12%
7%
0 - 0,5 0,5 - <2 2 - < 5 5 - <10 >=10
Average Daily Frequency
City
Pai
rs
5150 city pairs with less than 2 average daily frequency
Replacement of Ageing AircraftFleet in Service (61-120 seat segment - Dec/2002)
Source: Fleet PC (Scheduled Airlines, Active in Service and All Passenger Configuration)
Market Opportunities - Global
372
208
108
277
330
453
304
0
100
200
300
400
500
0 - 5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 >30
Aircraft Age (Years)
Num
ber o
f Airc
raft
689 aircraft with more than 20 years(34 % of total fleet in service)
70 – 78 Seats
78 – 86 Seats
98 - 106 Seats
108 – 118 Seats
Introducing the E- Jets
E-ngineering – 21st Century Aircraft
Applying Technology . . .
• Virtual reality tools
• On-board CMC
• Fly-by-wire
• Full redundant FADEC
• Fully digital “quiet&dark” cockpit
• Top systems/avionics integration
• World-class parterships
• Smart use of composite materials.
…to create value to Customer• Reduced time to market
• Reduced pilot workload
• High strutural design efficiency
• Minimum down time (TAT, checks)
• Easy maintenance diagnosis
• Low maintenance cost
• Reduced fuel consumption
• Cross crew qualification (CCQ)
• Easy aircraft handling
• Optimized mission performance
• High schedule realiabilty.
Two’s Company – Three’s a Crowd
Everyone gets a window or aisle seat.
E-rgonomics – Cabin Spaciousness
Everything you expect…
… in a First Class cabin
• Single seat
• Exclusive environment
• Partition
• Stowage
• Catering
• Seat comfort
• Exclusive lavatory
Everything you DON’T expect…… in an Economy cabin
• Middle seat X
X• Cramped seating
X• Narrow aisle
X• Single lavatory
X• Limited baggage space
X• Limited catering capabilities
• “Cattle” feeling X
E-conomics – Profitable by Design
*Based on Total Operating Costs; Average OW net fare 500 sm USD 90; 600 sm USD 98
USA Environment
EMBRAER 170 78 seat
EMBRAER 17586 seats
EMBRAER 190106 seats
EMBRAER 195118 seats
PROFITBREAK-EVEN*
40 PAX (51%) 38 PAX
44 PAX (51%) 42 PAX
57 PAX (54%) 49 PAX
62 PAX (53%) 56 PAX
*Based on Total Operating Cost500 sm for EMBRAER 170/175600 sm for EMBRAER 190/195
EC 05/May/03
EMBRAER 190
EMBRAER 170
EMBRAER 195
EMBRAER 175
FAR Domestic Reserves
Taxi allowance14 minutes
Air Maneuvers3 minutes
CruiseISA
Wind85% Annual Reliability
Pax Weight & Baggage90.7 kg (200 lb)
E-fficiency – Range from Dallas
Typical European OEWTypical Mission ReservesE5A1 EnginePax @ 90.7 kg (200 lb)ISANo wind
EMBRAER 170: The best field performerRange from LCY 600 nm
E-fficiency – Field Performance
EmbraerMarket
Forecast
World (30-120 seat segment): 8,610 jets (US$180 billion)
4,750
1,7001,6001,450
2014 - 2023
8,450
2,9502,9002,600
2004 - 2023
3,700TOTAL
1,25091 – 1201,30061 – 901,15030 - 60
2004 - 2013Segment
World Deliveries by Segment - Jets
Market Forecast 2004-2023
AsiaPacific
4806%
AsiaPacific
4806%
China6358%
China6358%
USA, Canada& Caribbean
4,74056%
USA, Canada& Caribbean
4,74056%
30 - 120 Seats: 8,450 Jets
Europe, Middle East
& Africa1,97023%
Europe, Middle East
& Africa1,97023%Latin
America6257%
LatinAmerica
6257%
Market Forecast 2004-2023
2004-2023Sources 30-60 61-90 91-120 Total 30-60 61-90 91-120 Total TotalAirclaims 1794 1135 914 3843 1071 2428 1886 5385 9228
Bombardier 1677 1555 3232 2183 3152 5335 8567Rolls-Royce 1394 1113 589 3096 1510 1799 932 4241 7337
Snecma 1786 805 899 3490 1867 904 1075 3846 7336GE 1194 797 950 2941 1250 898 1134 3282 6223
Boeing 1337 562 1300 3199 1399 659 1554 3612 6811Average 1530 995 930 3455 1547 1640 1316 4503 7958
Embraer 1150 1300 1250 3700 1450 1600 1700 4750 8450
2004-2013 2014-2023
Market Forecast (Jets)
Embraer forecast is more conservative whencompared to other forecast sources
World (Total Deliveries)External Sources
30 - 60 Seats: 2,600 Jets
Embraer Market Forecast 2004-2023
Europe, Middle East
& Africa355
14%
Europe, Middle East
& Africa355
14%
USA, Canada& Caribbean
1,870 (840 + 1030)71%
USA, Canada& Caribbean
1,870 (840 + 1030)71%
China2008%
China2008%
AsiaPacific
803%
AsiaPacific
803%
LatinAmerica
954%
LatinAmerica
954%
45%
50%
5%
Embraer Bombardier Others
North America
30-60 SegmentCurrent Market Share
ERJ 145 XR Potential Market in 10 years
North America
New DeliveriesTotal 30-60 Segment
840 to 1100 Aircraft
380 to 500ERJ 145 Family
North America
New Deliveries
ERJ 145 XR Market Potential
25% - 30% of total ERJ 145 Family Deliveries
100 to 150 Aircraft
210 to 300 Aircraft in 20 years