Natalie FowlerDeepa Jakkamsetti

Surapan LaosettanunRikiya Toyofuku

Venda Yuniarti

Embraer

Outline

Company History Presence in the world Values & Strategies Types of Aircraft Technology Environmental Issues Financials Current Events

In the mid 60’s, the government initiated research and a project for middle-sized aircraft.

In 1969, based on the progress of the project, Embraer opened its door controlled by Brazilian government.

Starting with Bandeirante, Embraer expanded its business arenas by acquiring and/or corroborating with local companies and European companies.

In 1994, Embraer was privatized. Currently, its business areas are Airline, Commercial

and Business Aviation, Defense Market and Aeronautical services. 17,265 employees: 94.1% are based in Brazil.

Company History

Over 5,000 aircraft produced in 92 countries

Certificated by EASA at the 100th executive jet in 2009

Two Diamond Certificates of Excellence in 2009

Presence in the world

Our people are what make us fly

We are here to serve our customers

Boldness and innovation are our hallmarks

Global presence is our frontier

We build a sustainable future

We strive for company excellence

Embraer - Values

Assess new developments and invest in the future of commercial aviation

Continue investing in and developing executive aviation

Boost the operations of the new corporate unit – Embraer Defense and Security

Expand into new business, based on investment feasibility studies and analyses

Continue implementing the Embraer Enterprise Excellence Program (P3E)

Invest in technology and innovation

Give even more incentive to best environmental practices

Embraer - Strategy

Types of Aircraft

Commercial (E-jets) Corporate

(Executive)

Military (Defense & Security) Agricultural Aviation

Types of Aircraft

Commercial (E-jets)

Commercial Jets - Portfolio

Commercial Jets - Customers

Commercial Jets - Customers

Types of Aircraft

Commercial (E-jets) Corporate

(Executive)

Executive Jets - Portfolio

Executive Jets - Customers

Types of Aircraft

Commercial (E-jets) Corporate

(Executive)

Military (Defense & Security)

Defense and Security - Portfolio

Embraer Defense & Security –Acquisitions and Partnerships

Embraer Defense & Security –Acquisitions and Partnerships

Defense and Security - Customers

Types of Aircraft

Commercial (E-jets) Corporate

(Executive)

Military (Defense & Security) Agricultural Aviation

Agricultural Aviation - Portfolio

Ipanema

Technology

AutoclaveVirtual Reality Center

Flight Simulator Aerodynamic Tunnel

Embraer Engineering and Technology Center USA will be built at the Melbourne International Airport in Florida◦ Will employ at least 200 engineers

P3E Program (Embraer Enterprise Excellence Program)◦ Promotes continuous process

improvement and adoption of best practices

Technology Programs

Climate Change

Oil Prices / Future Fuel

Safety

Security ATC Congestion

Passengers

Financial

Challenges in the Industry

Climate Change

Oil Prices / Future Fuel

Safety

Security ATC Congestion

Passengers

Financial

Technology Solutions

New aircraft• Active drag

reduction systems• Advanced Materials• New Engines

Aircraft Life-Cycle Management• Lean Development• Lower operational

costs• Green Life Cycle• Highly-integrated

products

Comfort & Onboard Features• Faster Boarding• New Systems• New Displays

Efficient Energy Management• Improved Electrical

Systems• Alternative Fuels• More efficient

aircraft

Safe Operation• Improved weather

systems• Integration of

human & machines controls

Secure Aircraft• Missile protection• Abnormal trajectory

detection• Engagement of

automatic control

Operation in High-density Environment• Pilot workload

management• Improved

integration with ATC• 4D Trajectories

Evolution & Innovation

Multidisciplinary Design

Optimization

Aircraft Health Management

Noise & Emissions

Interior Design & Comfort

Collaborative Product

Development

Advanced Aerodynamic

Tools & SolutionsAlternative

Fuels

Aircraft Software

Development

Advanced Structures

Composites / Smart Material

Design for Manufacturing & Automation

Energy Management

Design for Service

Environmental, Occupational Health, Safety and Quality Integrated Management System (SIG-MASSQ)

ISO 14001 – Environmental Management System Certification since 2002

Manage emissions & explore alternative fuel opportunities Develop programs, projects and strategic actions aligned

with the Committee of Environmental Risks CICEA - Internal Commission for the Conservation of Energy

and Water◦ Atmospheric Emissions Program◦ Wastewater treatment & monitoring program◦ Greenhouse Gas Emissions Inventory Program

Environmental Management

Joined with Airbus and Boeing to develop non-carbon releasing jet fuels

In the 1970’s started biofuel research that has led to Brazil’s strong market in automobile biofuels

Recycling Program: newspapers, magazines, cardboard, plastic cups, PVC pipes, glass in general, debris from factory sweeping, metallic parts, aluminum cans, cloths and rags contaminated with inflammable materials, batteries (including cell phone ones) and fluorescent lamps

99% of hazardous waste is recycled or co-processed

Environmental Accomplishments

Reduction in Energy Usage

RevenueAfter slowing down in year 2009 and 2010 because of global financial crisis, Embraer’s revenue is expected to show a positive sign in 2011

Revenue BreakdownMost of the revenue comes from Commercial Aviation product and obtained from Europe and Asia Pacific

Firm BacklogAs of 2011, Embraer has US$15.4 Billion backlog orders that mostly for Commercial Aviation orders.

Financial Highlights for Fiscal Year 2011

Items 2011 ResultRevenue US$ 5,803

millionEBIT margin

5.5%

Cash position

US$ 445.7 million

Financial position show a relatively strong position and the company continued to manage its debt profile

4Q10 1Q11 2Q11 3Q11 4Q11

94.90% 89.90% 87.30%71.50%

84.80%

5.10% 10.10% 12.70%28.50%

15.20%

ST DebtLT Debt

Financial Highlights

Items US$ Million

Net Sales 5803Inc fr. Ops 318Net Income

112

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110

1000

2000

3000

4000

5000

6000

7000

0

100

200

300

400

500

600

700

800Net Sales (left axis)Inc fr Ops.

(right axis)

Net Income(rig

ht axis)

US$ Million

Collaboration of Embraer, Boeing, and Airbus on Aviation Biofuel Commercialization (3/22/2012)

◦ Signed MoU to work together on the development of aviation biofuels by supporting, promoting, and accelerating the availability of this new jet fuel sources

◦ The collaboration agreement supports the industry’s multi-pronged approach to continuously reduce the industry’s carbon emissions to achieve

carbon-neutral growth beyond 2020 reduction net CO2 emissions 50% by 2050 compared to 2005

Current Events

Canceled US Contract with Brazil's Embraer Stirs Confusion (1/3/2012)

◦ The US Air Force canceled a 355-million contract to purchase 20 military planes, the A-29 Super Tucano, produced by Embraer Defense and Security, for the Light Air Support (LAS) program.

◦ US blamed faulty paperwork for breaking off the deal but failed to cite specific problems

◦ “not satisfied with the quality of the documentation supporting the award decision,” Michael B. Donley, Air Force Secretary - (Feb 28)

◦ Resulted in reopens the bidding process between Embraer and Kansas-based Hawker Beechcraft Inc.,

Current Events

“Embraer is obviously a great company and the Super Tucano is a very fine aircraft … The United States is now in the midst of some internal processes but we remain interested.“

US Deputy Secretary of State William J. Burns(Reuters) 

“The Brazilian Government learned with surprise of the suspension of the bid process to purchase A-29 Super Tucano aircraft by the United States Air Force, in particular due to its manner and timing. This development is not considered conducive to strengthening relations between the two countries on defense affairs…The Brazilian Government will remain engaged in dialogue with American officials on the matter.”

Website of the Foreign Affairs Ministry - Brazil 

Current Events

Updated (3/26/2012)◦ Embraer still aims for 2nd shot at US jet contract

◦ Embraer expected a cancelled US Air Force contract for light attack aircraft to be re-tendered “within weeks”

◦ “If they keep the same requirements . . . we think we will have a great chance to win again,” said Mr. Luiz Carlos Aguiar, the head of Embraer Defense and Security

Current Events

Jackie Chan: Embraer Brand Ambassador (2/3/2012)

◦ Embraer is using  Jackie Chan, the star power of Hong Kong-born actor, as a brand ambassador to enter China’s business-jet market.

◦ “Over the next 10 years, we expect almost $17.5 billion of executive jets being delivered into China …The market is very big.” said Ernie Edwards, president of Embraer’s executive jet division

◦ Quick Fact China’s market for business jets has 156 planes in 2009 and expected to

grow to as many as 635 planes by 2021. current business jets market share of Embraer in China: 10 to 12% Embraer targeted Chinese business jet market share in 2021: 15 to 20%

Current Events

http://www.youtube.com/watch?v=NAf1EbvBCIs

Jackie Chan Embraer Promo Video

The End…