embraer at a glance

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EMBRAER AT A GLANCE August 03rd, 2010

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Page 1: Embraer at a glance

EMBRAER ATA GLANCE

August 03rd, 2010

Page 2: Embraer at a glance

Evolution

• After World War ll - strategic national aircraft manufacturing project

• The creation of CTA and ITA• Embraer established in 1969

Origin and Development Privatization (1994)

• The integration of two cultures

Technological & Industrial

Entrepreneurial+

Page 3: Embraer at a glance

SUCCESSFUL BUSINESS

Aerospace Industry Fundamentals

3

Customer SatisfactionBase of our entrepreneurial action

HighTechnology

QualifiedPeople

FlexibilityCashIntensiveness

Global Presence

Page 4: Embraer at a glance

High Technology

Virtual Reality CenterIn operation since Feb 2000

Output: CATIA model for rib

Knowledge Based EngineeringAutomation of routine project activities

4

ErgonomicsAnalysis

Intelligent interface for structural

analysis and project

Output: wing model for structural analysis

Page 5: Embraer at a glance

High Technology

• Digital “Mock-up” – EMBRAER 170 • Structural Tension Simulations

5

• Digital “Mock-up” – EMBRAER 170 • Structural Tension Simulations

• Fluid Dynamics • Composite Materials

Page 6: Embraer at a glance

1678116853

6087

15192

4319 3849 4494

67378302

1033411048

12227 1278914493

17503

21843 21550

Qualified People

Number of Employees

6

4319 3849

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 jun

BRAZIL 15,832

USA 614 CHINA 48

FRANCE 235 SINGAPORE 52

April / 97 was the lowest level of employment – 3,200 peopleDec / 94 Embraer was privatized

(Not including JVs' employees in China (HEAI) - from 2003 on - and in Portugal (OGMA) - from 2005 on. These two sites have at the present time 237 and 1.505 employees, respectively)

Page 7: Embraer at a glance

Qualified People

Educational Levels*

High School

65 %

7

06/14/2010

Graduate

29%

Postgraduate

4%

Ph.D.

2%

* Brazilian Units

Minimum educational level – High School

Page 8: Embraer at a glance

Embraer Units - Brazil

Eugênio de Melo Unit - EGM

São José dos Campos - SPSão José dos Campos - SP

Faria Lima Unit - FL

BrazilSão José dos CamposEugênio de MeloGavião PeixotoBotucatuTaubaté

8

São José dos Campos - SPSão José dos Campos - SP

Taubaté Unit – Distribution Center

Taubaté - SPSão José dos Campos - SP

ELEB

Page 9: Embraer at a glance

Botucatu Unit - BOT Gavião Peixoto Unit - GPX

Embraer Units - Brazil

BrazilSão José dos CamposEugênio de MeloGavião PeixotoBotucatuTaubaté

9

Botucatu - SP Gavião Peixoto - SP

Page 10: Embraer at a glance

Embraer Units - Abroad

EUA

Embraer Aircraft Maintenance Services

Nashville, TN - USA

Embraer Aircraft Holding

Fort Lauderdale, FL - USA

10

EUAFort LauderdaleNashvilleMelbourneMesa

Melbourne, FL - USA

Embraer Executive Jet Service Center

Mesa, Arizona - USA

Embraer Executive Aircraft

Page 11: Embraer at a glance

Embraer Units - Abroad

Embraer Aviation Europe

Villepinte - France

Embraer Le Bourget Service Center

Le Bourget - France

FranceVillepinteLe Bourget

11

Villepinte - France

SingaporeSingapore

Embraer Asia Pacific

Singapore

Page 12: Embraer at a glance

Embraer Units - Abroad

ChinaBeijingHarbin

Embraer Harbin

Harbin - China

Embraer China

Beijing - China

12

PortugalAlverca

Harbin - China

OGMA

Alverca - Portugal

Embraer

Évora - Portugal

Page 13: Embraer at a glance

Business Areas

Commercial Aviation Market Defense Systems

13

Commercial Aviation Market Defense Systems

Executive Aviation Market

Page 14: Embraer at a glance

CommercialAircraft

Page 15: Embraer at a glance

ERJ 145 Family

37 Seats(1,750 nm range)

44 Seats(1,650 nm range)

15

50 Seats(2,000 nm range)

50 Seats(1,550 nm range)

(1,650 nm range)

Flight hours: 17,000,000

Approximate number of carried passengers: 515,000,000

Number of countries in operation: 26

Page 16: Embraer at a glance

ERJ 145 Family Order Book

Firm Orders

Options Total DeliveriesFirm

Backlog

16

(July 2010)

OrdersOptions Total Deliveries Backlog

ERJ 135 108 - 108 108 -

ERJ 140 74 - 74 74 -

ERJ 145 708 - 708 703 5

Total 890 - 890 885 5

Page 17: Embraer at a glance

EMBRAER 170/190 Family

78 to 88 Seats – 2,000 nm RangeCertification – 4th Q/2004

70 to 80 Seats – 2,100 nm RangeCertification – 1st Q/2004

17

108 to 122 Seats – 2,200 nm RangeCertification – 2nd Q/2006

98 to 114 Seats – 2,400 nm RangeCertification – 3rd Q/2005

Certification – 4th Q/2004

Flight hours: 4,400,000

Approximate number of carried passengers: 205,000,000

Number of countries in operation: 39

Page 18: Embraer at a glance

EMBRAER 170/190 Family Order Book

18

Firm Orders Options Total DeliveriesFirm

Backlog

EMBRAER 170 191 50 241 179 12

EMBRAER 175 137 179 316 129 8

EMBRAER 190 457 373 830 290 167

EMBRAER 195 94 70 164 54 40

Total 879 672 1551 652 232

(as per July 2010)

Page 19: Embraer at a glance

Defense Systems

Page 20: Embraer at a glance

A-29 Super Tucano

• High-performance evolution of the proven EMB 312 Tucano

• State-of-the-art systems and advanced avionics

• Optimized for basic/advanced training and operational applications in hostile

20

and operational applications in hostile environments

• Operation from unprepared runways, day or night

Page 21: Embraer at a glance

AMX/A-1M

• Advanced and fighter lead-in training aircraft

21

• Baseline avionics architecture commonality with the Super Tucano

Page 22: Embraer at a glance

ISR Systems – Special Mission Aircraft

ISRIntelligence – Surveillance –

Reconnaissance

22

EMB 145 Multi Intel Airborne Ground Surveillance and

Strategic Intelligence

EMB 145 MP Maritime Patrol

EMB 145 AEW&CAirborne Early Warning & Control

Page 23: Embraer at a glance

EMBRAER KC-390

• New-generation military airlift and tanker aircraft

• More than 20 metric ton maximum payload

• Maximum range in excess of 3,300 nautical miles (about 6,200 km)

23

• Able to transport troops, vehicles and all kinds of cargo and to airdrop paratroops and cargo, including LAPES (low altitude parachute extraction system)

• Capable of operating from short and semi-prepared runways

• State-of-the-art avionics and full night vision goggles (NVG) compatibility

6,200 km)

• Optimized full fly-by-wire flight controls system

Page 24: Embraer at a glance

Executive Aviation Market

Page 25: Embraer at a glance

Phenom 100

25

* LRC speed. NBAA IFR (35 min) Reserves + 100 nm alternate; 4 occupants @ 200 lb (91 kg)

Phenom 100

Number of seats 6 – 8 (Occupants)

Range* 1,178 nm 2,182 km

Maximum Cruise Speed 390 ktas 722 km/h

MMO Mach 0.70

Maximum Operational Altitude 41,000 ft 12,500 m

Page 26: Embraer at a glance

Phenom 100

26

Page 27: Embraer at a glance

Phenom 300

Phenom 300

27

* NBAA IFR (35 min) Reserves + 100 nm alternate; 6 occupants @ 200 lb (91 kg)

Phenom 300

Number of seats 8 – 10 (occupants)

Range* 1,971 nm 3,650 km

Maximum Cruise Speed 453 ktas 839 km/h

MMO Mach 0.78

Maximum Operational Altitude 45,000 ft 13,700 m

Page 28: Embraer at a glance

Phenom 300

28

Page 29: Embraer at a glance

Legacy 450

Legacy 450

All preliminary data

29

Legacy 450

Number of occupants 7 – 9 passengers + 2 crew

Range* 2,300nm 4,260km

Maximum Cruise Speed 470ktas 870 km/h

MMO Mach 0.83

Maximum Operational Altitude 45,000ft 13,700m

* Range @ M 0.80, 2 pilots + 4 pax (200lb), NBAA IFR res.

Page 30: Embraer at a glance

Legacy 450

Preliminary concepts

30

Page 31: Embraer at a glance

Legacy 500

Legacy 500

All preliminary data

31

Legacy 500

Number of occupants 8 – 12 passengers + 2 crew

Range* 3,000nm 5,560km

Maximum Cruise Speed 470ktas 870 km/h

MMO Mach 0.83

Maximum Operational Altitude 45,000ft 13,700m

* Range @ LRC, 2 pilots + 4 pax (200lb), NBAA IFR res, 200nm alt airport

Page 32: Embraer at a glance

Legacy 500

Preliminary concepts

32

Page 33: Embraer at a glance

Legacy 600

33

* NBAA Reserves (4 pax, MTOW, LRC, ISA)

Legacy 600

Number of seats 13 – 14 passengers + 3 crew

Range* 3,400 nm 6,297 km

Maximum Cruise Speed 455 ktas 843 km/h

MMO Mach 0.80

Maximum Operational Altitude 41,000 ft 12,500 m

Page 34: Embraer at a glance

Legacy 600

34

Page 35: Embraer at a glance

Legacy 650

35

* NBAA Reserves (4 pax, MTOW, LRC, ISA)

Legacy 650

Number of seats 13 – 14 passengers + 3 crew

Range* 3,900 nm 7,223 km

Maximum Cruise Speed 459 ktas 850 km/h

MMO Mach 0.80

Maximum Operational Altitude 41,000 ft 12,500 m

Page 36: Embraer at a glance

Legacy 650

36

Page 37: Embraer at a glance

Lineage 1000

Lineage 1000

37

Lineage 1000

Number of seats 13 – 19 passengers + 3 crew

Range* 4,400 nm 8,149 km

Maximum Cruise Speed 470 ktas 870 km/h

MMO Mach 0.82

Maximum Operational Altitude 41,000 ft 12,500 m

* NBAA IFR (35 min) Reserves + 200 nm alternate; 3 crew plus 8 passengers @ 200 lb; M 0.78

Page 38: Embraer at a glance

Lineage 1000 – Lounge

38

Page 39: Embraer at a glance

Embraer Environmental InitiativesInitiatives

Page 40: Embraer at a glance

Achievements in Environmental Initiatives

ISO 14001 since 2002 � First in the Industry

40

Ipanema: First certified and serialized 100% biofuel powered aircraft

Gavião Peixoto facility reforestation project:• 600,000 trees• 350 hectare area

Page 41: Embraer at a glance

Design & Aerodynamics Structures

Environmentally Friendly Research Programs

41

Powerplants

Biofuels

Systems

Page 42: Embraer at a glance

Economic-Financial Performance

Page 43: Embraer at a glance

Capital Structure

BOVESPA

52,8%

THORNBURG

INVESTM ENT

FRANKLIN

RESOURCES

IN

6,6%

BLACKROK

5,9%

BOVESPA

OUTROS

27,5%

BNDESPAR

Common (Voting) Shares: 723,665,044 (100%)

43

NYSE

47,2%

52,8%

August 03rd, 2010

NYSE

OUTROS

16,5%

OPPENHEIM

ER FUND'S

6,4%

6,3% BNDESPAR

5,5%

PREVI

13,9%

GRUPO

BOZANO

6,1%

* União Federal inclui uma ação ordinária de classe especial (Golden Share)

Page 44: Embraer at a glance

160 161148 141

169

204

244

Evolution of Aircraft Deliveries

2nd Semester 2010: 110 aircraft delivered

44

32

96

131

101

148 141130

110

4

60

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2S10

Actual

Page 45: Embraer at a glance

Net Revenue (U.S. GAAP)

US$ million

Actual

5,466

6,335

5,245

3,8073,830

3,441

45

764

1,354

3,441

2,144

2,526

2,9272,762

1,837

1,354

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2Q10

Page 46: Embraer at a glance

Revenue per Segment

Aviation Services

and Others

12%

Revenue per Segment (2Q2010)

Revenue by Region (2009)

Others

6%

Asia Pacific

21%

Europe

32%

46

Commercial

Aviation

53%

Defense

Systems

19%

Executive

Aviation

12%

21%

Brazil

11%North America

23%

Latin America

7%

Page 47: Embraer at a glance

321 328

380

446

390,1

489

388,7

Net Income (U.S. GAAP)

US$ million

Actual

47

3

145

235

321 328

223

136

249

70

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2Q10

Page 48: Embraer at a glance

Investments

213

234239

197

144

US$ million

48

51

7389

103

45

93

113

144

2004 2005 2006 2007 2008 2009

Property, Plant and Equipment Research & Development

Page 49: Embraer at a glance

15,2

16,6

20,9

18,8

14,8

11,4

Backlog

US$ billion

2nd Quarter 2010 – US$ 15,2 billion in firm orders

49

10,410,19

10,711,4

6,4

4,13

1,20,6

10,6

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2Q10

Firm Orders

Page 50: Embraer at a glance

US$ million

Exports

4,053

3,2693,267

2,007

3,348

2,396

2,8972,702

5,733

4,737

2,580

3,766

2,957

2,2131,7371,843 1,992

1,9671,780

50

Embraer accounted for 1,99% of Brazilian exports through May 2010.

(*)Source: Foreign Trade Department Secretary.

16462,007

1,692

1,173916

1,737

881

1,8431,377

1,1781,220 1,302

1,992

830

1,4741,9671,780

1,0561,529

1,356

705

1,1751,0541,325

514292

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2Q10

Exports Imports Trade Balance

Page 51: Embraer at a glance

• Salaries: R$ 1,217 million

• Variable Income: R$ 89 million*

• Benefits: R$ 214 million

Benefits

Employee Benefits

Life Insurance

51

*not counting the employees of its subsidiaries OGMA and HEAI.

Data base reference 2009* Data base reference 2008

Life Insurance

1,8%

Dental and

Health

Assistance

50,5%

Retirement

11,3%

Others

7,3%

Transportation

15,4%

Meals

13,7%

Page 52: Embraer at a glance

Thank you!

52

Page 53: Embraer at a glance

This document may contain projections, statements and estimates regarding circumstances or events yet to take place. Those projections and estimates are based largely on current expectations, forecasts on future events and financial tendencies that affect Embraer’s businesses. Those

53

estimates are based largely on current expectations, forecasts on future events and financial tendencies that affect Embraer’s businesses. Those estimates are subject to risks, uncertainties and suppositions that include, among others: general economic, political and trade conditions in Brazil and in those markets where Embraer does business; expectations on industry trends; the Company’s investment plans; its capacity to develop and deliver products on the dates previously agreed upon, and existing and future governmental regulations. The words “believe”, “may”, “is able”, “will be able”, “intend”, “continue”, “anticipate”, “expect” and other similar terms are supposed to identify potentialities. Embraer does not feel compelled to publish updates nor to revise any estimates due to new information, future events or any other facts. In view of the inherent risks and uncertainties, such estimates, events and circumstances may not take place. The actual results can therefore differ substantially from those previously published as Embraer expectations. Embraer reserves the right to revise this document whenever occasioned by product improvements, governmental regulations or other good cause. All figures, finishing materials and colors are for illustration purpose only, and may not represent the real and final product accurately. Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis. All data presented shall not be used as guarantee. Guaranteed specifications are listed in section 4 of the preliminary technical description and represent the only binding guarantee.