2004 - presentation made in canada with canaccord capital

CanadaAnalyst &InvestorsMeeting

March 2004Canada

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

This presenta t ion inc ludes forward-look ing s ta tements or s ta tements about events or

c i rcumstances wh ich have no t occur red . We have based these fo rward-look ing s ta tements

largely on our current expectat ions and pro ject ions about fu ture events and f inanc ia l t rends

a f fec t ing our bus iness and our fu ture f inanc ia l per formance. These fo rward-look ing

s ta tements are sub jec t to r isks , uncer ta in t ies and assumpt ions, inc lud ing, among o ther

th ings: general economic, pol i t ica l and business condi t ions, both in Brazi l and in our

market .

The words “ be l ieves,” “ may,” “ will,” “ es t imates,” “ cont inues,” “ ant ic ipates,” “in tends, ”

“ expec ts” and s imi lar words are in tended to ident i fy forward-look ing s ta tements . We

under take no ob l igat ions to update publ ic ly or rev ise any forwar d-look ing s ta tements

because o f new in format ion, fu ture events or o ther fac tors . In light o f these r isks and

uncer ta in t ies , the forward-look ing events and c i rcumstances d iscussed in th is presenta t ion

might not occur. Our actual resul ts could d i f fer substant ia l ly f rom those ant ic ipated in our

fo rward-look ing s ta tements .

Forward Looking Statement

High Technology

Qualified People

Global Presence

Flexibility

Cash Intensiveness

Fundamentals

Aeronautical Industry Fundamentals

CUSTOMER SATISFACTION

Backbone of our entrepreneurial action

Airline Market Status, Trends

and Outlook

Share of US Domestic Passenger Enplanements

S o u r c e : A v S t a t A s s o c i a t e s , I n c . a n a l y s i s o f U . S . D O T d a t a .

91%84%

71%65%

16%19%

5% 9% 13% 16%3%

1980 1990 2000 2002

Majors Low Cost/New Entrants Regionals

Market Evolution - USA

Share of Intra-European RPKs

86% 82% 82% 81% 79% 78% 73% 73%

14% 17% 17% 17% 18% 17% 19% 19%

1%1% 1% 2% 4% 5%

1995 1996 1997 1998 1999 2000 2001 2002

Majors Low Cost Regionals

S o u r c e : A E A , E R A , A T I2002 Low Cost Data Est imated

Low Cost: easyJet + Go + Ryanair

Market Evolution - Europe

• Fundamental Correct ion – Not a Tradit ional Cycle

• Decreasing Average Fare Values

• Decreasing Capacity (USA)

• Increasing Low Cost Carrier Critical Mass

• Increasing Regional Jet Critical Ma s s

• Pressure on Exist ing W orldwide Airline Model

• Major USA Airl ines trying to re-invent the m selves

• Regional aff i l iates strongly being used as defensive tools

(point-to-point X hub and spoke)

• Low cost carriers also being inserted in the current “major”

airl ine model

An Industry in Transition

37 Seats

44 Seats

50 Seats

50 Seats (2,000 nm range)

Responding to Market Needs

Jan 1995 – 336 Routes

Jan 2003 – 944 RoutesSource: BACK OAG ( Southwest, Jetblue, Airtran and Frontier )

Low Cost Networks - USA

Source: BACK OAG ( Ryanair, easyjet, Buzz and GO)

Low Cost Networks - Europe

Capacity

Traditional Main Line Full Service Model

Regional Regional

Jet ModelJet Model

Low CostModel

. . . increase capacity to match market growth,

or/and expand their air services to secondary city pairs

LCC Next Steps...

.... Natural Growth, or Capacity Rightsizing,There is a need for adding another component

E - Jet

Regional

Jet Model

Traditional Main Line Full Service ModelR

Capacity

Low CostModel

Beyond the Current Model...

34 % of flights depart with loads

appropriate

for 100-110 seat aircraft27 % of flights depart

with loads appropriate

for 70-80 seat aircraft

Passengers per Departure

<50<50 5050 100100 140140

6060 7070 8080 9090 110110 120120 130130 >150>150

S o u r c e: Back ( U S D O T T 1 0 0 J a n - S e p 2 0 0 2 )

The Need for 70-110 Seat Jets in the USA

Replacement o f Ageing AircraftFleet in Service (61-120 seat segment - Dec/2002)

S o u r c e : F l e e t P C ( S c h e d u l e d A i r l i n e s , Ac t i ve in S e r v i c e a n d A l l P a s s e n g e r C o n f i g u r a t i o n)

0 - 5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 >30

Aircraft Age (Years)

689 aircraft with more than 20 years

(34 % of total fleet in service)

Market Opportunities - Global

70 – 78 Seats

78 – 86 Seats

98 - 106 Seats

108 – 118 Seats

Fleet Management Flexibility and Load Factor Optimization

E-conomics – Aircraft Commonality

Large Baggage

CompartmentMockup

Highest

Volume / Pax

Cross Section

Cross Section Comparison

EMBRAER 170/190

*Based on Total Operat ing Costs; Average OW net fare 500 s m USD 90; 600 s m 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 Operat ing Cost

500 s m for EMBRAER 170 /175

600 s m for EMBRAER 190 /195

E-conomics – Profitable by Design

E - Jet Model

N e w EmbraerE-Jet family

Regional Regional

Jet ModelJet ModelTraditional Main

Line Full Service Model

Low CostModel

Filling an Untapped Market

Roll Out – EMBRAER 190

Feb 9th, 2004

EMBRAER 190 RollOut Ceremony

March 12th, 2004

EMBRAER 190 1 s t Flight

Airline Market

Forecast

World (30-120 seat segment): 8 ,450 jets (US$180 bill ion)

World Deliveries by Segment - Jets

2014 - 2023

2004 - 2023

3,700 (*)TOTAL

1,25091 – 120

1,30061 – 90

1,15030 - 60

2004 - 2013Segment

Market Forecast 2004-2023

( * ) Open demand àà approximately 2,900 a/c

AsiaPacific

USA, Canada& Caribbean

30 - 120 Seats: 8,450 Jets

Europe,

Middle East

& Africa

Europe,

Middle East

& Africa

23%Latin

America &Caribbean

LatinAmerica &Caribbean

Market Forecast 2004-2023

Commercial Backlog

Backlog

7101,393502891Total

5311,150475675ERJ 145

741142094ERJ 140

1051297122ERJ 135

DeliveriesTotalOptionsFirm(as of December 31s t , 2003)

ERJ 145 Family Orderbook

260150110EMBRAER 190

550305245Total

453015EMBRAER 195

245125120EMBRAER 170

TotalOptionsFirm(as of December 31s t , 2003)

EMBRAER 170/190 Family Orderbook

Corporate Aircraft Market Status, Trends

and Outlook

Corporate Aviation: a crowded marketplace

L e a r 4 5 $ 1 0 , 3 M G L O B E x p $ 4 4 , 4 M

F 7 X $ 3 5 , 8 M

G 500 $ 3 7 , 5M

G 550 $ 4 5 , 8 M

G 400 $ 3 2 , 5 M

G L O B 5 0 0 0 $ 3 3 , 5 M

Chal 6 0 4 $ 2 4 , 9 M

F 9 0 0 C $ 3 0 , 4 M

F 9 0 0 E X $ 3 4 , 3 M

G 2 0 0 $ 2 0 , 2 M

C h a l 3 0 0 $ 1 7 , 4 M

F 5 0 E X $ 2 0 , 0 M

F 2 0 0 0 $ 2 2 , 6 M

H o r i z $ 1 8 , 0 M

C i t X $ 1 9 , 4 M

G 1 0 0 $ 1 1 , 8 M

L e a r 6 0 $ 1 2 , 7 M

8 0 0 X P $ 1 3 , 0 M

L 4 5 X R $ 1 0 , 8 M

E n c o r e $ 7 , 6 M

E x X L S $ 1 0 , 2 M

Lear 31 $6 .6M

B 4 0 0 A $ 6 , 6 M

B r a v o $ 5 , 7 M

C J 1 $ 4 , 0 M

C J 2 $ 5 , 2 M

P r e m i e r $ 5 , 6 M

S J 3 0 $ 5 , 5 M

S o v e r e i g n $ 1 3 , 5 M A C J $ 4 7 M

B B J 2 $ 6 5 M

B B J 1 $ 5 2 M

L A R G E U L O N G R A N G EL I G H T M I D L I G H TE N T R Y M I D S I Z E S U P E R M I D S I Z E G L O B A L

G 300 $ 2 5 , 5M

G 150 $ 1 3, 5 MLear 40 $ 7 ,7M

C J 3 $ 6 , 0 M

F 2 0 0 0 E X $ 2 3 , 8 M

L e g a c y $ 2 1 , 2 M

G 450 $ 3 3 , 0M

G 350 $ 2 7 , 5M

Note: Prices - BC&A May03Except for G 350

Legacy Competitive Environment

G 1 5 0 $ 1 3 , 5 M

G 1 0 0 $ 1 1 , 8 M

L e a r 6 0 $ 1 2 , 7 M

8 0 0 X P $ 1 3 , 0 M

S o v e r e i g n $ 1 3 , 5 M

M I D S I Z E

C i t a t i o n X $ 1 9 , 4 M H o r i z o n $ 1 8 , 0 M

S U P E R M I D- S I Z E

F 2 0 0 0 $ 2 2 , 6 M F 5 0 E X $ 2 0 , 0 M

C h a l 3 0 0 $ 1 7 , 4 M G 2 0 0 $ 2 0 , 2 M

F 2 0 0 0 E X $ 2 3 , 8 M L E G A C Y $ 2 1 , 2 M

F 9 0 0 E X $ 3 4 , 3 M F 9 0 0 C $ 3 0 , 4 M

C h a l 6 0 4 $ 2 4 , 9 M G l o b 5 0 0 0 $ 3 3 , 5 M

G 4 5 0 $ 3 3 , 0 M G 4 0 0 $ 3 2 , 5 M

G 3 5 0 $ 2 7 , 5 M G 3 0 0 $ 2 5 , 5 M

L A R G E

Note: Prices - BC&A May03

Except for G 350

Legacy - A New, Breakthrough Concept

Based on a proven airplane platform, The Legacy

Family provides the ideal balance of comfort,

performance and cost in three versions:

• Executive

• Shuttle

• Shuttle HC

Supermidsize category

10 20 30 40 50ft

m 3 6 9 12 15

Challenger 30023‘8”(7,22m)

25‘(7,62m)

Horizon

G20024‘6”

(7,46m)

42’6”(12,94m)

Large category

10 20 30 40 50ft

m 3 6 9 12 15

Falcon 200026‘4”

(8,01m)

G40041’

(12,49m)

42’6”(12,94m)

Market Forecast

DeliveriesCategory

1,250Super Mid-Size

900Large

975Mid-Size

Embraer Forecast (10yrs): 6,525 aircraft

3,400Other segments

9%2% E N T R Y

L I G H T

M I D L I G H T

M I D S I Z E

S U P E RM I D S I Z E

L A R G E

U L T R A L O N GR A N G E

G L O B A L

9%2% E N T R Y

L I G H T

L A R G E

G L O B A L

D e l i v e r i e s S h a r e

9%2% E N T R Y

L I G H T

M I D L I G H T

M I D S I Z E

L A R G E

G L O B A L

9%2% E N T R Y

L I G H T

L A R G E

G L O B A L

9%2% E N T R Y

L I G H T

M I D L I G H T

M I D S I Z E

L A R G E

G L O B A L

9%2% E N T R Y

L I G H T

L A R G E

G L O B A L

D e l i v e r i e s S h a r e

E N T R YL I G H T

M I D L I G H T

MIDSIZE

S U P E RMIDSIZE

L A R G E

G L O B A L

R e v e n u e S h a r e

E N T R YL I G H T

M I D L I G H T

MIDSIZE

S U P E RMIDSIZE

L A R G E

G L O B A L4%

E N T R YL I G H T

M I D L I G H T

MIDSIZE

S U P E RMIDSIZE

L A R G E

G L O B A L

R e v e n u e S h a r e

Defense Market

Defense Market Product Line

S U P E R T U C A N O A M X- T F-5 BR M2000 BR

E R J S / L E G A C Y E M B 1 4 5 A E W & C EMB 145 RS/AGS E M B 1 4 5 M P / A S W ( P- 99)

International leading position for Special Mission Aircraft

U.S. Army

ACS – Aerial Common Sensor

Replacement of the RC-12and RC-7 by a single and

more capable platform

EMBRAER is teamed with Lockheed Martin for the

ACS Program

U.S. Navy

Replacement of the EP-3 Aries II

The U.S. Navy joined the U.S. Army’s ACSProgram in July 2003

EMBRAER is teamed with Lockheed Martin for the EP-3

Replacement Program

Backlog & Delivery Forecast

Backlog

US$ bi l l ion

1.23.0 4.1

11.4 10.79.0

12.7 12.713.2

1996 1997 1998 1999 2000 2001 2002 2003

Options

Fi rm Orders

1.23.0

24.1 23.422.2

160 161

160170

1996 1997 1998 1999 2000 2001 2002 2003 2004 E 2005 E

Jet Deliveries

Deliveries Forecast

53% 48%

12% 15%

2004 2005

ERJ 145 Family EMBRAER 170 Family Corporate

53% 48%

12% 15%

2004 2005

ERJ 145 Family EMBRAER 170 Family Corporate

160 expected deliveries for 2004 and 170 for 2005

Global

Presence

Global Presence

Operations in Brazil, United States, Europe, Asia and Australia

BrazilGaviã o Peixoto

BotucatuSã o José dos Campos

USANashvi l le

Pa lm Beach GardensFort Lauderdale

FranceLe Bourget

ChinaBeijingHarb in

AustraliaMelbourne

SingaporeSingapore

Roll-out Ceremony

First Chinese made ERJ-145

Dec 16 th , 2003

Social Responsibility

Employees

3.8494.494

10.33411.048

12.22712.941

1996 1997 1998 1999 2000 2001 2002 2003

BRAZIL 12.086

USA 482

CHINA 165

Singapore 10EUROPE 189

AUSTRALIA 09

This Year:

Employees

Foccus on Training

More than US$ 96 million invested intraining and development in the last 5 years

21 18 1425

1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

In–house courses:

• 18 - month graduate course in Aeronautical Engineering

• 2 - year MBA course focused on international trade

US$ million

Health & Environment

EnvironmentISO 14001 Certificate

(Mar/2002)

Health & SecurityCertification OHSAS 18001

(Mar/2002)

2003FinancialResults

Delivery of jets

160 161

1996 1997 1998 1999 2000 2001 2002 2003

Net Revenues and Gross Margin

77% 36% 50% 6%A n n u a l

V a r i a t i o n

2,143.5

1,353.5

1,837.3

2,927.0

2,525.82,762.2

39.4%39.6%

32,0%32,0%

1998 1999 2000 2001 2002 2003

US$ mill ion

Net Revenue per Segment and Market

E x p o r t s

Brazi l

Defense

Aviation

Customer

Services and

other related

business

Executive

Aviation

Commercial

Aviation

REVENUES PER SEGMENT

FY2003

GEOGRAPHIC BREAKDOWN

FY 2003

12 .8%

1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

Income from Operations

250% 114% 26% 41%A n n u a l

V a r i a t i o n-28%

US$ mill ion

Net Income

4 ,618% 61% 37% 2%A n n u a l

V a r i a t i o n -32%

328.4320.7

11.2%11.6%

1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3

US$ mill ion

Foreign Currency

Brazilian Currency

Total Debt of US$1,043.7 mill ion

Considering Currency Swaps:

Average cost in R$ = 16.7% pa (76.5% CDI)

Average cost in US$ = 4.6 % pa

Debt Maturity

2 0 61 1 5

1 0 51 0 1

1 0 4 4

Total Short Term 2005 2006 2007 2008 on

In US$ mil l ion

S h o r t T e r m

5 0 %L o n g T e r m

Loan Average Maturity : 2 years and 2 months

Net Cash (Debt) Position

US$ mill ion

222104

-333-415

1998 1999 2000 2001 2002 Mar .31 ,

31,2003

Sep.31 ,

Dec.31 ,

Short-term Trade Accounts Receivable

US$ mill ion

117160

1999 2000 2001 2002 Mar.31,2003 June 30,

Sep. 30,

Dec. 31,

Inventories

1 0 2 1 1 0 2 9

1 1 7 31 1 2 7

1 0 3 8

1999 2000 2001 2002 Mar . 31 ,

J u n e 3 0 ,

S e p . 3 0 ,

D e c . 3 1 ,

US$ mill ion

Capex and Productivity

US$ mill ion

PP&E & R&D

173.2158.5

1999 2000 2001 2002 2003

P P & E

Planned Investments

R&D Tota l

- Commercial Aviation

- Corporate Aviation

- Others

Defence

20052004

Product ivi ty and P P & E 64 81

T O T A L 280 254

US$ mill ion

Defence Investments are funded by thei r contracts and are not inc luded

in the R & D e x p e n s e s, but in Cost of Sales and Serv ices.

2004 - presentation made in canada with canaccord capital

e s t i

e n t s o r s t

i n t i e s

n t e n d s

e d e c r e

i e v e s

g e n e r

e c o n o

Documents

specialty minerals and metals canaccord genuity corp ... ·...

paving a path to a refinery restart - swiss resource...

pgx has developed a market leading reputation primed for...

sr. historical p/nav (5% fwd. curve gold) · 2020-03-24 ·...

(aim: bpc) the bahamas · following limitations. this...

introducing quintessential indian sandalwood management...

(aim: bpc) the bahamas - bahamas petroleum company plc ·...

initiation of coverage first cobalt corp. · canaccord...

canaccord genuity musculoskeletal conference and … ·...

canaccord capital inc. reports fourth quarter … 07... ·...

initiation of coverage euro manganese incorporated specialty...

first quarter - canaccord genuity · 1 canaccord financial...

canaccord genuity investor presentation

our business ideas canaccord stands out as a premier...

canaccord conference presentation

canaccord genuity global resources conference

raising target price oil and gas, exploration and production...

junq'19 report - westgold resources limited€¦ ·...

railway capital of canada

canaccord mar 4 09