2008* embraer day apresentação aviação executiva

9TH ANNUAL EMBRAER DAY

EMBRAER EXECUTIVE JETS MARKET OVERVIEW

LUÍS CARLOS AFFONSOEmbraer Executive Vice-President, Executive Jets

November 7th, 2008

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.

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.

EXECUTIVE JETS MARKET OVERVIEW

BIZJET ORDERS AND DELIVERIES

Source: Honeywell for historical data & Embraer proprietary anal

2nd half 2008 may be the worst semester since 2003

0

500

1,000

1,500

2,000

2,500

2000 2001 2002 2003 2004 2005 2006 2007

Un

its

(Ord

ers

& D

eliv

erie

s)B

oo

k-to

-bill

0.0

0.5

1.0

1.5

2.0

2.5

2008E

Orders

Deliveries

Book-to-bill


US BUSINESS AVIATION TRAFFIC

Source: JP Morgan - Business Jet Monthly - October, 2008

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

2001 2002 2003 2004 2005 2006 2007 2008 2009

% C

han

ge,

y/y

Aug/2008

Business Jets traffic growth compared to same month of the previous year

Deceleration as deep as Sept 11th, 2001All 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.

EUROPEAN BUSINESS JETS MOVEMENTS

Business Jets traffic growth compared to same month of the previous year

Sources: Eurocontrol Statfor (October/2008)

Traffic reduction is also an European realityAll 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


-10%

-5%

0%

5%

10%

15%

20%

25%

jan/07 may/07 sep/07 jan/08 may/08 sep/08

Gro

wth

yoy

(%)

FRACTIONAL MARKET

Fractional – Net shares negotiated

Source: Amstat, Oct 2nd ,20082008 may be a “lost year”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


jan/95 jan/96 jan/97 jan/98 jan/99 jan/00 jan/01 jan/02 jan/03 jan/04 jan/05 jan/06 jan/07 jan/08

-10

-5

0

5

10

15

20Net Shares

12 months moving average

Eq

uiv

alen

t A

ircr

aft

Source: Amstat, Oct 2nd ,2008

CHARTER OPERATORS

Sources: Honeywell, B&CA, other magazines articles and Embraer internal analysis

1st Half 2008

Europe: ~0%

USA: -15%

Charter Demand (annual growth rates)

2006 - 2007

Europe: 25 a 30%

USA: 15% to 20%

� Backlog estimate: ~ 500 orders and 295 options

Source: IMF (WEO) October 2007Source: IMF (WEO) April 9th 2008, Global Insight, April 2008 & Bloomberg, Jan 2008Loosing momentum after double digits growth in 2007All 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


Sources: UBS report Oct 2008 and JetNet

Source: IMF (WEO) October 2007Source: IMF (WEO) April 9th 2008, Global Insight, April 2008 & Bloomberg, Jan 2008


Inventory of used aircraft reaching historical peak

� Inventory record peak: more than 2,000 used a/c on sale� Percentage of active fleet at 13% and rising, but still below the 17% peak of late 2002

USED AIRCRAFT MARKET

Operators struggling for funding

� Credit crunch is challenging business growth.

� Financing is more expensive and selective.

FUNDING


Forecast

Trending Down: “The financial system is closer to disaster and is taking the World to the edge of a nasty recession” (The Economist, Sep 18th. 2008)

Source: The Economist, IMF, Global Insight, BEA – Nov 1st 2008

0

1

2

3

4

5

6

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Real GDP, Growth Rate, Year-on-Year %

Gro

wth

Rat

e %

*IMF World growth aggregate uses country weights calculated from Purchase Power Parity (PPP).

The Economist (Nov08) - World

IMF* - World

IMF revised World growth (PPP) in 2009e from 3.9% to 3.0% (Oct08)

Global Insight - World

WORLD GDP GROWTH RATES


Trending Down: “On the seized-up money markets, there is little to see except bank failures, emergency rescues and high anxiety in the credit markets” (The Economist, Oct 4th. 2008)

-2

-1

0

1

2

3

4

5

6

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Forecast

Gro

wth

Rat

e % Global Insight – USA

The Economist (Nov08) – USA

Source: The Economist, IMF, Global Insight, BEA – Nov 1st 2008

IMF - USA

US GDP GROWTH RATES

Real GDP, Growth Rate, Year-on-Year %

Long term growth in spite of market adjustment in the 2009-2013(e) period

EXECUTIVE AVIATION – SUMMARY

� Economic drivers short-term concerns

� Large industry backlogs

� Expansion of non-traditional markets

� Hassle factor driving customer dissatisfaction

� New business models bridging the gap between current alternatives

� Technological advances enabling new product launches

� Environmental concerns and infrastructure investments are barriers to be faced


Source: Embraer proprietary forecast and analysis. Amstat and GAMA for the historical data.

11,880 executive jets US$ 204 billion over the next 10 years��

2009-2018 MARKET FORECAST – WORLD DELIVERIES


* Forecast not including new business models demand: 1,800 to 2,800 units

Forecast

Deliv

eries

(in units)

-

200

400

600

800

1.000

1.200

1.400

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

ULTRA LARGE

ULTRA-LONG RANGE

LARGE

SUPER MID-SIZE

MID-SIZE

MID-LIGHT

LIGHT

ENTRY*

49% North America &

Caribbean

5,880 aircraftCAGR: -0.5%

7%Latin America*

800 aircraftCAGR: 5.7%

32%Europe

3,820 aircraftCAGR: -0.9%

9%Asia Pacific

1,020 aircraftCAGR: 8.6%

3%China

360 aircraftCAGR: 6.3%

2009-2018 MARKET FORECAST – WORLD DELIVERIES

EMBRAER EXECUTIVE JET 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.


PHENOM 100®

PHENOM 100® - INTERIOR AND PERFORMANCE

Illustrative purposes only - Preliminary data

Range* 1,160 nm

VFR range ** 1,320 nm

MMO Mach 0.70

Max ceiling 41,000 ft

TOFL*** 3,400 ft * 4 occupants @ 200 lb, NBAA IFR reserves (100 nm alternative, 35 min)

** 4 occupants @ 200 lb, VFR 45 min reserves *** MTOW, ISA, Sea Level

Baggage Capacity:

Fwd Compartment 5 cu.ft

Wardrobe 5 cu.ft

Aft Compartment 45 cu.ft


Phenom 100 production plants in Botucatu and Gavião Peixoto , Brazil

PHENOM 100® – AIRCRAFT PRODUCTION


Illustrative purposes only

PHENOM 100® – PROGRAM UPDATE


� Over 1,200 flight hours already performed for certification

� Close to 400 hours of maturity campaign

� Performance confirmed

� Static tests finished

� RVSM tests accomplished

� Function and Reliability campaign (300 hours) accomplished

� IFR operations (day and night) campaign accomplished

Final steps into Certification

� Flight Test

� Artificial ice shapes

� Failure cases

� Flap Control software certification

� Final Interior inspection with airplane S/N 005

PHENOM 100® – PROGRAM UPDATE

On schedule for 2nd semester first deliveryAll 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.

PHENOM 100

“Our overall impression was that the

Phenom 100 is very easy to fly,

having one of the most intuitive

cockpits of any business aircraft yet

produced, docile handling manners

and simple, reliable systems”

Fred George (B&CA, Oct 2008)

Entry into Service: 2nd half 2008

FAA Price: US$ 2.98 million** Jan 2005 economic conditions, FAA certification

PHENOM 300®

Illustrative purposes only - Preliminary data

* Some items are optional.

Range* 1,800 nm

MMO Mach 0.78


TOFL** 3,700 ft

* 6 occupants @ 200 lb, NBAA IFR reserves (100 nm alternative, 35 min) ** MTOW, ISA, Sea Level

Baggage Capacity:

Fwd Compartment 5 cu.ft

Wardrobe 5 cu.ft

Aft Compartment 66 cu.ft

PHENOM 300® - INTERIOR AND PERFORMANCE


April 29th, 2008

PHENOM 300® - FIRST FLIGHT



August 05th, 2008

SECOND PHENOM 300® - FIRST FLIGHT



Phenom 300 Program is steadily advancing

PHENOM 300® – AIRCRAFT PRODUCTION

3rd and 4th a/c assembly



THE WORLD DISCOVERS THE PHENOM JETS

Phenom Jets – over 800 firm orders in 44 countriesAll 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


(October 2008)


FAA Price: US$ 6.85 million** Jan 2005 economic conditions, FAA certification

LEGACY 450 AND LEGACY 500

6 ft

(1.82 m)

6 ft 10 in

( 2.08 m)

Full stand-up cabin with flat floor

CROSS SECTION


Preliminary data - illustrative purpose only

OEM web sites and advertising material - B&CA 2007 Purchase Planning Handbook – Conklin & de Decker Aircraft comparator 2007/2008

LEGACY 500G 150 SovereignHawker 900 XP

External Baggage

Overa

ll C

abin

Length

Learjet 85

LEGACY 500 - FLOOR PLAN

Preliminary Data

Challenger 300

Hawker 4000

Super MidSize Jets

THE INFORMATION HEREIN IS SUBJECT TO THE DISCLAIMER PRESENTED IN THE LAST PAGE OF THIS DOCUMENT. THIS PRESENTATION IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED, OR USED IN ANY MANNER, EXCEPT WITH EMBRAER´S PRIOR WRITTEN CONSENT.

LEGACY 450

Inte

rior

Cabin

Length

Learjet 45 XR

Citation XLS+ Hawker 750

External Baggage

LEGACY 450 - FLOOR PLAN

OEM web sites and advertising material - B&CA 2008 Purchase Planning Handbook – Conklin & de Decker Aircraft comparator 2007/2008

Preliminary Data

G 150Lear 60

THE INFORMATION HEREIN IS SUBJECT TO THE DISCLAIMER PRESENTED IN THE LAST PAGE OF THIS DOCUMENT. THIS PRESENTATION IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED, OR USED IN ANY MANNER, EXCEPT WITH EMBRAER´S PRIOR WRITTEN CONSENT.

INTERIOR DESIGN


Illustrative purpose only

Range = 2,300 nm

PERFORMANCE – RANGE CIRCLES

Preliminary data

Range = 3,000 nm


4 Pax @ 200 lb, 2 Pilots @ 200 lb, 85% annual winds, SL, ISA, NBAA reserves with 200 nm alternate, 3% allowance

Extensive Situational Awareness - Intuitive User Interface

AVIONICS – ROCKWELL COLLINS PRO LINE FUSION™

� State-of-the-art technology

� Integrated avionics

� Displays with advanced graphical capabilities

� SVS

� Auto-throttle

� Paperless cockpit capability

� HUD (Optional)

� EVS (Optional)


Preliminary data - illustrative purpose only

LEGACY 450 & LEGACY 500 SUPPLIERS


Avionics

Engine; APU; Air Conditioning Pack

Pneumatic System;Wheels & brakes

Pax Seats

Undisclosed

Central FuselageLanding Gear

Thrust Lever;Rudder Pedals

Rear Fuselage & Pylon

Monuments; Linings

Insulation

Oxygen SystemElectric Power

DistributionPilot Seats

Air Data System

Electric Power Generation

Interior Design

Fuel; Flight Controls;Hydraulic Generation

Nose Wheel SteeringLanding Gear ControlHydraulic Systems Control

JOINT DEFINITION PHASE

� Joint Definition Phase kick-off meeting at Embraer (July 9th, 2008)

� Around 400 engineers and designers already engaged in the Program

WIND TUNNEL TESTS – 2nd CAMPAIGN

� Subsonic tests – Calspan (US) � Transonic tests – NLR (Netherlands)

� W/T tests for structural loads TsAgi (Russia)

US$ 750 millionInvestment

2nd Semester 2012

Legacy 500 Legacy 450Item

2nd Semester 2013Entry into Service

Preliminary data


PROGRAM DATA

LEGACY 450 AND LEGACY 500


Launch Price: US$ 18.4 million** Jan 2008 economic conditions, FAA certification


Launch Price: US$ 15.25 million** Jan 2008 economic conditions, FAA certification

LEGACY 600®

LEGACY 600® – INTERIOR AND PERFORMANCE

Cabin Volume 1,650 ft3

Cabin Length 49.8 ft

Baggage Volume 240 ft3

Range* 3,400 nm

MMO Mach 0.80


TOFL** 5,551 ft*4 passengers @ 200 lb, NBAA IFR reserves (200 nm alternate, 35 min of holding @ 5,000 ft)

** MTOW; ISA; Seal Level

The only 3 cabin zones aircraft in its categoryAll 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


THE WORLD DISCOVERS THE LEGACY 600®

(October 2008)

155 aircraft, 24 countries, the right choiceAll 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


Taller Cabin

LEGACY 600® – ENHANCED INTERIOR

� 6ft – 1.83m cabin

(2" – 5 cm taller)

� Slim valance

� New seats

� Widescreen 17”

monitors

� Portable audio

input

Illustrative purposes only - some items may be optional


Deliveries growth of 33% in 2007

2002 2003 2004 2005 2006 2007

(July 2008)

15 %

13.6%

13%

12%12%

10%

13 a/c13 a/c10 a/c

27 a/c

20 a/c

MARKET SHARE – SUPER MIDSIZE CATEGORY


36 a/c

15 %

3Q2008

25 a/c

Price: US$ 27.45 million* * 2010 economic conditions , FAA certification

LINEAGE 1000®

LINEAGE 1000® – INTERIOR AND PERFORMANCE

Zone 1

Crew Lavatory

Galley

Zone 2

Zone 3

Zone 4

Zone 5

Baggage Compartment

Lavatory

Produced by

Designed by


Welcome Area &

Crew Lounge

Range* 4,200 nm

MMO Mach 0. 82


TOFL** 6,660 ft

* 8 passengers @ 200 lb,LRC, NBAA IFR reserves (200 nm alternative, 35 min of holding @ 5,000 ft))

** MTOW, ISA, Sea Level


Lineage Program is steadily advancing

LINEAGE 1000® – AIRCRAFT PRODUCTION

Interior Completion at PATS, a division of DeCrane Aerospace, in US

1st aircraft back to Brazil

Other 3 aircraft at PATS

5th and 6th a/c assembly



Price: US$ 42.95 million** Jan 2006 economic conditions, baseline configuration, FAA certification

CUSTOMER SUPPORT& SERVICES

CUSTOMER SUPPORT SOLUTION

� Service Centers Network - global coverage

� 7 Embraer service centers

� Authorized service centers network expansion

� Logistics and Parts Support

� Embraer Distribution Centers and third-party Logistics

� Phenom Jets US Logistics Partner: UPS

� Field and Product Support

� Maintenance Tracking and Planning Service

� Call Center evolution into a Contact Center

� Training Programs

� Phenom Jets: Embraer & CAE Joint Venture

� Phenom Jets Training Centers in USA and in Europe

� Executive Care Programs


EMBRAER OWNED US SERVICE CENTERS (opening ceremonies)


FLL - Fort Lauderdale, FL ( 27 Oct)

IWA - Williams Gateway, AZ (15 Sep)

BDL – Bradley, CT ( 2 Oct)

PHENOM 100® & PHENOM 300® TRAINING


� 1st Maintenance Training concluded in September

� 1st Phenom 100 Customer concluded Pilot Training in October

EMBRAER / UPS WAREHOUSE - LOUISVILLE INTL AIRPORT

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 lastpage 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.


RESULTS

2005 2006 2007 2005 2006 2007 2005 2006 2007

Bookings

(US$ billion)

~ 0.6

~ 2.0

Executive Aviation Share of Total Embraer

Revenue(%)

7.3%

15.5%

~ 3.5

16.0%

77%

3%

0.6

RESULTS – EMBRAER EXECUTIVE JETS

Revenues

(US$ billion)

0.3

US GAAP unaudited numbers

0.84

44%


Firm order backlog is around US$ 7 billion

NEW EMBRAER FACILITY IN THE US

� Located at the Melbourne International Airport, in Melbourne, Florida

� Future base for Embraer Executive Jets activities in the US

� Includes final assembly, a paint booth, and delivery hangars for the Phenom

100 and Phenom 300 executive jets

� Customer design center for all models

� Investment of approximately US$ 50 million

� Investment and growth plans for Embraer’s units in Brazil remain unchangedAll 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


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.

2008* embraer day apresentação aviação executiva

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