executive aviation embraer day 2010 10_29
TRANSCRIPT
Embraer Day
Executive Aviation Overview
Luís Carlos AffonsoEmbraer Executive Vice-President, Executive Jets
São José dos Campos – October 29th, 2010
Forward Looking Statement
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.
Real GDP growth rate, YoY%
-3
-2
-1
0
1
2
3
4
520
02
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
World GDP
Source: The Economist, September 2010.
Gro
wth
Rat
e %
World Real GDP growth
Source 2009 2010 2011 2012 2013 2014 2015
The Economist – Sep’10 -2.2% 3.2% 2.4% 3.0% 3.1% 3.3% 3.2%
The Economist – Mar’10 -2.1% 2.7% 2.6% 3.0% 3.2% 2.3% 2.4%
The Economist – Jun’09 -3.1% 1.3% 2.4% 2.8% 3.0% NA NA
The Economist – Sep’10
The Economist – Jun’ 09
The Economist – Mar’10
World GDP growth rates
Financial
Nonfinancial
2007 avg
Low
Current
+96%
+7%
Source: BEA – Bureau of Economic Analysis and Embraer estimates – August 2010
U.S. Corporate Profits
Global Stock Markets return %
Highlighted area: >10% overall dropSource: Yahoo Finance, October 13th, 2010
SSE Composite (China)
IBOVESPA (Brazil)
S&P500 (US)
FTSE100 (UK)
RTS (Russia)
Stock markets
FAA - Total Monthly Flights (Thousands)
20052007
20062004
2008
2009
2010
130
140
150
160
170
180
190
200
210
220
230
Jan
Feb Mar
Apr
May Ju
n
Jul
Aug
Sep Oct
Nov
Dec
Source: FAA – May 2010
Business Jets Traffic – United States
2005
2007
2006
2004
20082009
2010
Eurocontrol - Total Monthly Flights (Thousands)
25
30
35
40
45
50
55
60
Jan
Feb Mar
Apr
May Ju
n
Jul
Aug
Sep Oct
Nov
Dec
Source: Eurocontrol – July 2010
Business Jets Traffic – Europe
0
500
1000
1500
2000
2500
3000
3500
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
9 9 0 0 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 10
Un
its
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
28%
% o
f ac
tive
fle
et
% for sale (per total fleet
in operation)
Business Jets For Sale
Source: Embraer analysis – October 2010
fleet older than 10 yrs
fleet from 6 to 10 yrs
fleet up to 5 yrs and positions
% for sale (per total fleet in operation)
up to 10 yrs % for sale
fleet up to 5 yrs
positions 15.0% / 10.5%
2647 jets / 896 jets
2008: Net increase of 1,100 a/c
2009: Net increase of 33 a/c
2010TD: Net decrease of 157 a/c
Used market: inventory
2011-2020 Market Forecast
Source: Embraer VAE analysis – Aug/2010.
10,000 jets and US$ 210 billion over the next 10 years
2011-20 Market Forecast – World Deliveries
43.2% North America &
Caribbean
US$ 90.5 BiCAGR: 6.3%
6.8%Latin America*
US$ 14.2 BiCAGR: 3.0%
33.3% EMEA
US$ 70.0 BiCAGR: 5.1%
16.7%Asia Pacific
US$ 35.0 BiCAGR: 11.7%
2011-2020 revenues forecast: 6.5% CAGR
6.8%China
US$ 14.3 BiCAGR: 12.3%
Source: Embraer VAE analysis – Aug/2010.
3.0%Brazil
US$ 6.3 BiCAGR: 2.1%
* La
tin A
mer
ica
incl
udin
g M
exic
o
** A
sia
Pac
ific
incl
udin
g C
hina
Vision
To become a major player in the Business Aviation Market by
2015 through innovative and differentiating product and
service solutions with added value to our customers and
shareholders.
Entry
Light
Mid-light
Mid-size
Super Mid-Size
Large
Ultra-Long Range
Ultra-large
Embraer Product Portfolio
Differentiated Support
Strong Economics
Pre
miu
m
Com
fort
High Reliability
Outsta
ndin
g
Perfo
rmance
Value Proposition
Advanced Technology &Innovations
* NBAA IFR (35 min) Reserves + 100 nm alternate; 4 occupants @ 200 lb (91 kg)* Basic configuration
41,000 ft
390 ktas
1,178 nm
Phenom 100
12,500 m
Mach 0.70
722 km/h
2,182 km
6 – 8 (Seats, Occupants)
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
Phenom 100®
Certified on schedule with all
targets achieved or exceeded
16
* NBAA IFR (35 min) Reserves + 100 nm alternate; 6 occupants @ 200 lb (91 kg)* Basic configuration
45,000 ft
453 ktas
1,971 nm
Phenom 300
13,700 m
Mach 0.78
839 km/h
3,650 km
8 – 11 (Seats, Occupants)
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
Phenom 300®
Certified on schedule with all
targets achieved or exceeded
17
Phenom 300®
18
Preliminary data
* Range @ M 0.80, 2 pilots + 4 pax (200lb), NBAA IFR res.
45,000ft
470ktas
2,300nm
Legacy 450
13,700m
Mach 0.83
870 km/h
4,260km
7 – 9 passengers + 2 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of occupants
Legacy 450
19
Preliminary data
45,000ft
470ktas
3,000nm
Legacy 500
13,700m
Mach 0.83
870 km/h
5,560km
8 – 12 passengers + 2 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of occupants
* Range @ LRC, 2 pilots + 4 pax (200lb), NBAA IFR res, 200nm alt airport
Legacy 500
20
Legacy 500
illustrative purposes only
Legacy 600®
* NBAA Reserves (4 pax, 0.74 M, ISA)
41,000 ft
459 ktas
3,400 nm
Legacy 600
12,500 m
Mach 0.80
850 km/h
6,297 km
13 – 14 (Seats, Occupants)+3 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
22
* NBAA Reserves (4 pax, 0.74 M, ISA)
41,000 ft
459 ktas
3,900 nm
Legacy 650
12,500 m
Mach 0.80
850 km/h
7,223 km
13 – 14 (Seats, Occupants) + 3 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
Legacy 650®
Certified on schedule with all
targets achieved or exceeded
23
Legacy 650®
24
Lineage 1000®
* NBAA IFR (35 min) Reserves + 200 nm alternate; 8 passengers @ 200 lb
41,000 ft
470 ktas
4,400 nm
Lineage 1000
12,500 m
Mach 0.82
870 km/h
8,149 km
13 – 19 (Seats, Occupants)+3 crew
Maximum Operational Altitude
MMO
Maximum Cruise Speed
Range*
Number of seats
Certified on schedule with all
targets achieved or exceeded
25
Lineage 1000®
Customer Support & Services
� Service Centers Network - global coverage
� Logistics and Parts Support – global coverage
� Field and Product Support
� Customer Care Program - EEC
� Training Programs – total solution
Customer Support Solution
Over U$ 100 millioninvestment
Embraer Service Center
Contracted Authorized NetworkPresence in 38 locations
Service Centers Network
Complete and timely assistance to executive jet customers
Embraer Contact Center
Customer Relationship Web Portal
� Technical Publications
� AHeAD (Health Monitoring)
� Operational Software
� Flight Docs (MaintenanceControl
� Customer Forum
� Parts E-commerce
� Warranty
� Embraer Parts Exchange Program
� Embraer Executive Care Management
� Web Based Training Learning Management System
Integrated relationship tools to enhance customers experience
2009 Performance and 2010 Guidance
Source: GAMA reports – Embraer analysis – Feb/10
2009 Performance - Revenue share (US$)
Others
Hawker-Beech
Embraer
Gulfstream
Dassault
Cessna
Bombardier27% 29% 29% 28% 28% 28%
15%18% 18% 19% 19%
13%
17% 11% 11% 12% 12%18%
26% 23% 22% 23% 24% 21%
2,7%3,4% 3,8% 4,6% 4,1% 6,4%
10%10% 8% 8% 8%
6%8%
6%8% 5%5%2%
2004 2005 2006 2007 2008 2009
% O
EM
Sh
are
– T
ota
l R
eve
nu
es
US$
$13.2bi$10.2bi $17.2 bi$16.6bi $19.3bi $22.2bi
Revenue (US$ - based on B&CA list prices)
Source: GAMA reports – Embraer analysis – Feb/10
2009 Performance - Deliveries share (units)
22% 25% 24% 22% 21% 20%
31%33% 35% 37% 40%
33%
11% 7% 7% 7% 6%
9%
13% 12% 13% 13% 14%
11%
2,2% 2,7% 3,1% 3,5% 3,3%14,0%
20% 19% 16% 16% 14% 11%
2%2%3%2%1% 1%
2004 2005 2006 2007 2008 2009
% O
EM
Sh
are
– T
ota
l u
nit
s
Units
1,040885749 1,154582 870
Others
Hawker-Beech
Embraer
Gulfstream
Dassault
Cessna
Bombardier
Guidance 2010 – Executive Jets
2010
units 120
2010
units 17
Revenue: US$ 1.1 billion* Includes Shuttle version
Relevant Facts – NetJets Sale
Phenom 300 order: 50 firms + 75 options; US$ 1+ billion
� Future base for Embraer Executive Jets in the US (2010),
located at the Melbourne International Airport, in Florida.
� Final assembly, a paint booth and delivery hangars for the
Phenom 100 and Phenom 300 executive jets.
� Customer design center for all models.
� Employment: at least 200 workers at an average annual wage of $50,000. More jobs could follow if the company decides to expand the project in the future.
� Head up by Mr. Phil Krull, Managing
Director
� Investment of US$50 million
Melbourne Facility
All images 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.The information contained herein is subject to the disclaimer presented in the last page of this document/presentation.This presentation is the property of Embraer-Empresa Brasileira de Aeronáutica S.A.("Embraer") and shall not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent.
Thank You!
THANK YOU !
This presentation is the property of Embraer - Empresa Brasileira de Aeronáutica S.A. ("Embraer") and
shall not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent.
Embraer reserves the right to revise this document whenever occasioned by product improvements,
governmental regulations or other good cause.
All images: 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 the technical
description and represent the only binding guarantee.
In the event of any conflict between this presentation and the technical description, the technical
description shall govern.