2005 - defense market and corporate overview
TRANSCRIPT
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March 29, 2005
5th U.S. Analyst and Investor Meeting
Maurício BotelhoPresident & CEO
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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
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HighTechnology
QualifiedPeople
Global Presence Flexibility
CashIntensiveness
Fundamentals
Aeronautical Industry Fundamentals
CUSTOMER SATISFACTIONBackbone of our entrepreneurial action
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Customer SatisfactionBackbone of our entrepreneurial action
Aerospace Industry Fundamentals
HighTechnology
QualifiedPeople
Global Presence
FlexibilityCashIntensiveness
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The Outcome of WorldWar ll - strategicnational aircraft
manufacturing projectThe creation of CTA
and ITAEmbraer established in
Origin and Development Privatization (1994)• The Integration of two Cultures
Technological& Industrial
Entrepreneurial+
Evolution
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Highlights
• One of the world’s major commercialaircraft manufacturers
• Significant market share
• Global customer base
• Renowned international partners
• Excellent financial performance
• Brazil’s largest exporter in 1999, 2000 and 2001
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Customer Diversification
Civil & Defense Aircraft flying in 58 countries on 5 continents
EMBRAER 170/175/190/195
ERJ 135/140/145
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Product Diversification
70’s 90’s 00’s80’s
BANDEIRANTE(EMB 110/111)
TUCANO(EMB 312)
BRASÍLIA(EMB 120)
ERJ 145
AEW&C/ RS/ MP
ERJ 135
EMB 326
EMB 321
EMB 121
AMX
BRASÍLIA(EMB 120)
ERJ 140
AL X(EMB 314)
LEGACY
ERJ 145
ERJ 135
ERJ 140
EMBRAER 170EMBRAER 175
EMBRAER 190EMBRAER 195
AMX-TAEW&C/ RS/ MP
AL X(EMB 314)
AMX
ERJ 145 XR
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Partnering as a Strategy
• 4 partners• 350 supliers
• 16 partners• 22 supliers
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Defense Market
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Defense Market Products
Systems& Services
Training Intelligence, Surveillance andReconnaissance
Combat Transport
Integrated Market Approach
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Super Tucano
• High-performance evolution of theproven EMB 312 Tucano
• State-of-the-art systems and advanced avionics
• Optimized for advanced training and operational applications in hostile environments
• Can operate from unpreparedrunways, day or night
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AMX/ A-1M
• Advanced and fighter lead-in training aircraft
• Developed by Embraer for modern Training / Combat requirements
• Baseline avionics architecture commonality with the Super Tucano
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Special Mission AircraftAIR GROUND SEA
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EMB 145 AEW&C
• The AEW&C (Airborne EarlyWarning & Control) is equippedwith a state-of-the-art AirSurveillance Radar, Command, Control & Communication Systemand Data-Link
• A perfect blend of Embraer’s proven, reliable and economic ERJ 145 platform
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EMB 145 RS/AGS
• An advanced asset capable of providing real-time imagery and electronicintelligence over ground objectives
• It features an advanced Synthetic Aperture Radar (SAR), for day or nightand all-weather imagery of large areas, plus other sophisticated sensors
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P-99
• New generation aircraft for missions ranging from MaritimePatrol to complex and demandingAnti-Surface and Anti-Submarine operations
• Features a maritime and groundsurveillance radar, plus othersophisticated sensors like FLIR and Data-Link
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ACS – Aerial Common Sensor
• Embraer will be responsible to supply theplatform of the Aerial Common Sensor aircraft ordered by the U.S. Army
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Backlog and Delivery Forecast
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ERJ 145 Family Orderbook (as of December, 2004)
103
66
20
17
FirmBacklo
g
7981,237336901Total
618998314684ERJ 145
741142094ERJ 140
1061252123ERJ 135
DeliveriesTotal
OptionsFirm
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EMBRAER 170/190 Family Orderbook (as of December, 2004)
15-352015EMBRAER 195
297
155
15
112
Firm
Backlog
46755427343Total
-385230155EMBRAER 190
---15EMBRAER 175
46335177158EMBRAER 170
DeliveriesTotal
OptionsFirm
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Backlog
US$ 27.6 billion in total orders, including US$ 10.1 billion in firm orders
US$ billion
Firm Orders
Options
6.4
11.4 10.79
10.6 10.1
11.3
12.7 12.713.2
17.5 17.5
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
0.6 1.2
4.1
17.7
24.1 23.4 22.1
28.1 27.6
3
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Jet Deliveries Forecast
4
3 2
59
96
1 6 0 161
131
1 0 1
1 4 8 1 4 5 1 4 5
1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 E 2 0 0 6 E
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Projected Deliveries
60%
36%
15%
31%
50%
73%
9% 14% 12%
2004 2005E 2006E
ERJ 145 Family EMBRAER 170 Family Corporate Aircraft
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Investor RelationsPhone: + 5512 [email protected]