embraer investors conference - june 18, 2013
DESCRIPTION
TRANSCRIPT
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Embraer Investors
Conference
Luís Carlos Affonso Chief Operating Officer Commercial Aviation
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Customers on Every Continent
E-Jets | 65+ Airlines. 47+ Countries. 950+ in Service.
Leadership in the 60 to 120-Seat Segment
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Share - Net Orders
Comac
Sukhoi
Others
Bombardier
E-Jets
42%
26%
13%
12% 7%
Source: EMBRAER and OEMs (as of May 2013)
Share - Deliveries Others
Bombardier
E-Jets
61% 33%
6%
Wide Range of Applications
>> Source: Embraer (% of E-Jets Fleet+Backlog as of May/2013)
Regional
Full-Service
LCC
20%
48% 32%
>> Source: Embraer (as of May 2013)
A Global Market Success 1,200+ firm E-Jet orders
950+ deliveries
1999 2001 2003 2005 2007 2009 2011 2013
60 112
245
440
764
862
1,051
Net Orders
46
118
334
605
802
Deliveries
1,200 +
950+
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E-Jets | Continually Evolving
New Avionics
Functionalities
Interior
Improvements
SHM / PHM
2015
2012
Noise
Improvement
Package
2011
Steep
Climb 2008
ETOPS 120’ E190
Electronic Flight Bag
2013/2014
Maintenance
Improvements
Fuel Burn
Reduction
2009 Steep
Approach
ADSB-out
> > > > > >
2013 YTD
396 Firm & Options
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E-Jet Orders
30 E-Jets 5 x E175 – firm orders
10 x E190 – firm orders
15 x E-Jets – purchase rights
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94 E-Jets 47 x E175 – firm orders
47 x E175 – options
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70 E-Jets 30 x E175 – firm orders
40 x E175 – options
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2 E-Jets 2 x E190 – firm orders
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200 E-Jets 40 x E175 – firm orders
60* x E175 – firm reconfirmable
100 x E175 – options
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* reconfirmable orders subject to CPA agreement
Today’s E-Jets Announcements
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7 x E190 for Conviasa
4 x E170 for JAL (previously
undisclosed)
1 x E190 for Air Costa (previously
undisclosed), plus
2 x E170 pre-owned leased from
ECC
1 x E175 for Air Lituanica pre-owned
leased from ECC
E-Jets | The Future
Availability of new, efficient
engines
Interaction with our
customer base
Opportunities for
maintenance cost reduction
Airbus and Boeing re-engine
E-Jets 2nd
Generation E-Jets
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Introducing the E-Jets E2
Right Capacities to Match Market Demand
70
80
90
100
110
120
130
+1 row
same
+3 rows
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20%
20%
97 Seats DC
106 Seats SC E190-E2
118 Seats DC 132 Seats SC
E195-E2
80 Seats DC 88 Seats SC E175-E2
E2 New Features | Not Just a Re-engine
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E175-E2 E190-E2 & E195-E2
New Wing
More efficient, high aspect ratio
metallic wing. Raked wing tip.
Improved Avionics
4 larger 13”x10” displays
and touchscreen controls
Main Landing Gear
Enabling larger engines. Gear
doors for improved fuel efficiency
Optimized Wing/Engine
Different wing and engine combinations for E175-E2 and E190/195-E2
New Engines
Larger fan diameter and
improved fuel efficiency
4th Gen Full Fly-by-Wire
digital closed-loop control
to improve flying qualities
and boost fuel efficiency
New Interior
nicer PAX experience
and more overhead
bin volume New Stabilizers
lower drag & weight
Evolution of other systems: Flight Controls, Hydraulics, Steering, Bleed and Ice Protection
E2 New Features | Not Just a Re-engine
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APU
with higher starting/operating
altitude and air inlet door
for reduced drag Air Conditioning
higher capacity and improved control
Developed in partnership with
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Outstanding 4 abreast cross-section
New “Look and Feel”
“Wheels first” & bigger overhead bins
Connectivity and wireless IFE
Environmentally-friendly materials
Easy reconfiguration modularity
Interior Design
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Na:
Range
E190-E2
E195-E2
E175-E2
Range (NM)
Full PAX (SC), LRC, typical
reserves, 100 nm alternate 1, 920 1,920
E175 E175-E2
2,350 2,800
E190 E190-E2
2,000 2,000
E195 E195-E2
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The right data available at the right place and at the right time.
E-Jets E2 | an “e-Enabled” Aircraft
Operations Maintenance
Passenger
Experience
On Ground and Inflight :
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E-Jets & E-Jets E2 Pilot Commonality
Highest Commonality among
E-Jets E2 models (AAA)
Fewer than 3 days transition training
between the two E-Jet generations
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Full Flight Simulator or High- Level
Flight Training Device Not required
Avionics | Honeywell Primus Epic 2
Touchscreen Controls
Four Larger 13”x10” Displays
Graphical Flight Planning
Next Generation FMS
Cockpit Display of Traffic Information (CDTI)
SmartRunway™ and SmartLanding™ Synthetic Vision
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Engines | PW1700G and PW1900G Total system design for maximum efficiency. Much more than just the gear.
Composite
fan case
Very high bypass
light-weight fan
Fan Drive
Gear System
(FDGS)
High efficiency advanced HPT
Advanced aerodynamics;
durability technologies
3-stage
high-speed LPT
2/3-stage
high-speed
LPC
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Main Systems Suppliers
New Generation
Power Plant
Improved Avionics Flaps and Slats Actuation
Systems; AMS
Horizontal Stabilizer
Actuation System
Wheels & Brakes;
APU; Electrical System Fly-by-wire
Primary Flight Controls
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Main Structures Suppliers
Ailerons and Spoilers
Aft fuselage segments,
rudder and elevators
Vertical and horizontal
stabilizers
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A Quiet Family
Up to 3% additional reduction in aircraft cash operating cost via lower noise fees,
direct flight tracks and curfew extensions
65% Reduction in Noise Contour, Paris - Charles De Gaulle Airport
>> E190-E2 equipped with PW1900G
E190-E2
* E-Jets baseline - 2,600FH/year; 1.5FH/FC; 10 years DMC; NPV(9%,10years)
Savings of $1M to $1.5M* per aircraft over 10 years
Maintenance Cost Advantage 15% Lower Maintenance Cost
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Increased systems reliability Reduction of spare parts cost
Improved corrosion protection
Structural robustness at EIS
Longer intervals (850FH / 8,500FH)
Advanced health monitoring system
Competitive comprehensive service
portfolio
Fuel Burn Improvements Fuel Burn per Seat
E175-E2 (80 seats) vs. E175 (76 seats)
E190-E2 (97 seats) vs. E190 (97 seats)
E195-E2 (118 seats) vs. E195 (106 seats)
-16%
-23%
-16%
0%
-5%
-10%
-15%
-20%
-25%
>> >> Target values for 600 nm sector; Dual Class configuration;
2Sh
ow
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Competitive Scenario
180+
160
140
120
100
80
SSJ95/100
MRJ90 ARJ21
CRJ900
CRJ1000
CRJ700
Capacity
(Single Class)
737-7 MAX A319neo
A320neo
737-8MAX
CS100
CS300
E175-E2
E190-E2
E195-E2
Applications & Market Size
20-Year Market Forecast (70 to 130-seat Jets) - 6,400 Deliveries *
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Most efficient “hub feeder”
Lower cost-per-seat than current Turboprops
Efficient complement to narrowbody operations
New market developer
Capacity growth for current E-Jet operators
Similar cost-per-seat to A320neo and 737-8 Max
Low Cost operation in mid-density markets
E190-E2
E195-E2
E175-E2
* Embraer market forecast
Program Investment
Embraer investment on research, development and CAPEX for the E-Jets E2 family
will be US$ 1.7 billion
Investment will be supported by Embraer’s cash generation and debt.
Investments span from 2013 to 2020 with more concentration in 2014 - 2017
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2Sh
ow
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Industrial Architecture Use of current instalations with minimised CAPEX impact
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Flight
Preparation
Final
Assembly
Delivery
Structural Assembly,
Fuselage Junction
Wing to Fuselage
Junction and
Pre-equipping
EGM
BOT
ELEB
Evora
External Suppliers
Painting
Components and
Structures
Aircraft
Manufacturing Strategy Design for automation, minimizing labor costs and improving quality
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List Prices (US$ million)
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Preliminary Information as of January, 2013 -- US$ 3.3/USGal, 10 years NPV @ 9% rate
Better Fuel Consumption Gain
• E175 E2: US$ 4.8M
• E190 E2: US$ 7.0M
• E195 E2: US$ 6.5M
Maintenance Cost Reduction Gain
• US$ 1.0~1.5M
E175 AR (8E5): 42.9
E190 AR (10E5):47.4
E195 AR (10E5): 50.1
E-Jets
E175-E2 46.8
E190-E2 53.6
E195-E2 60.4
delta: 3.9 M
delta: 6.2 M
delta: 10.3 M
E-Jets E2
Seat Capacity Increase Gain
• E175 E2: US$ 1.6M (4 seats)
• E195 E2: US$ 4.8M (12 seats)
Entry into Service
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E195-E2 EIS | 2019
E190-E2 EIS | 1H 2018
E175-E2 EIS | 2020
E-Jets E2 are designed to maximize ease of Services & Support
High Standard of Global Services & Support
e-solutions Technical Support Field Support Flight Operations
Training Maintenance Material Aircraft Modification
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Maintenance Services Segmentation
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26% 54%
20%
14%
47% 39%
Operators with mixed models
Operators with own maintenance
Operators contracting maintenance
Upside potential for E-Jets E2 maintenance services
E-Jets E-Jets E2 Projection
E-Jets E2 | a Generational Leap led by New Technology
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E2 Launch Customers
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Launch Customers SkyWest Inc. 200 E-Jets E2 100 x E175-E2 – firm orders 100 x E175-E2 – purchase rights
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Launch Customers - LOI ILFC 100 E-Jets E2 25 x E190-E2 and 25 x E195-E2 – orders 25 x E190-E2 and 25 x E195-E2 – options
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Undisclosed Customers with LOIs
5 Airlines from Europe; Latin America; Africa & Asia 65 orders
365
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65
200 100 100 Firm Orders plus 100 Purchase Rights + LOIs for 115 Orders plus 50 Options