3 embraer day ny 2015 defesa-final_3

EMBRAER DEFENSE AND SECURITY

Jackson Schneider

October, 27th 2015

This information is property of Embraer and can not be used or reproduced without written permission.

Sales of Super Tucano to the US Air Force

Several Achievements in Recent Years

KC-390 Program

Brazilian Satellite Program

Sisfron Pilot Project

Brazilian F-39 Gripen Program


YTDSep

CAGR15%

Revenue Evolution

(US$ Millions)

Ref.: Sep, 2015.

New Challenges Started in 2015

This information is Embraer property and can not be used or reproduced without written authorization.

$ 1,100 - $1,250

$ 800 - $950

RevenueReduction

(US$ Millions)

50% BRL depreciationyear to date

Ref.: Sep, 2015.

Major Impacts in 2015


Ref.: Sep, 2015

2015E2014

*Atech Bradar Savis Visiona

Diversified Portfolio of Products

Revenues Breakdown by Product


BacklogEvolution

(US$ Billion)

Ref.: Sep, 2015.

Solid Backlog Despite 2015 Decline

This information is Embraer property and can not be used or reproduced without written authorization.

Book to BillAbove 1 X

Ref.: Sep, 2015.

50% BRL devaluation year to date

Backlog Reduction Driven by FX


Main Focus

Finalize KC-390 Development

Improve Operational Efficiency

Increase International Sales

Adjust Programs to Brazilian Government Budget


Main Focus



High Exposure to Brazil

* Estimated

Revenue Breakdown by Region


AM-X (A1-M)

A-4 (AF-1)

F-5

AEW&C5 a/c - (TBD)

Scaling Down Aircraft Modernization Programs

Reduced from 43 to 14 a/c

12 a/c1st batch

46 a/c - delivered

2nd batchReduced from 11 to 03 a/c -

ongoing

This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the companyThis information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company

Border Control & Protection (Sisfron)

• Integrated Systems Deployed and in Operation

• May 25th, 2015: demo to military attaches of 17 countries

This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company

Satellite & Remote Sensing

Brazil Satellite Development

• Communication module mating (payload): 4th Quarter 2015

• Satellite Vibration Test conclusion: 1st Quarter 2016

• Launch Window: September 2016 to February 2017

Satellite Remote Sensing

• Imagery service to develop large remote sensing projects in Brazil and abroad

• One contract already signed


Main Focus

Complete KC-390 Development



KC-390 Development: New Export Platform

• Around 85% of development concluded.

• Resumption of flight test campaign.

• Certification: From year end 2016 to 2H2017

• First delivery to Brazilian Air Force: From 1H2017 to 1H2018


KC-390: Certification Process Advances

Ground Test Vibration Successfully Completed





Main Focus


Broad Portfolio of Defense & Security Products


C2

VSAT

AIR SURV.RADAR

GROUND RADAR

SECONDARYRADAR

VHF RADIO(voice)

C2

C2 MOBILE

GROUND RADAR VSAT

C2 FIXED

SATCOM

HUB

C2

VOICE COMMUNICATION

ATC BACKUP

TRAINING CENTERC3I CENTERMAIN ATC SYSTEMMETEO

Legacy

Super Tucano

Combined Sales Strategy

VHF RADIO(voice)

AIR SURV.

RADAR


Photo: Senior Airman Ryan Callaghan/USAF

SUPER TUCANO – LAS

• Aircraft selected and contracted by the United States Air Force.

• 20 aircraft to be assembled at Jacksonville, FL.

• 12 aircraft delivered as of Oct 2015.

• High Fleet Availability.


Super Tucano: US Light Air Support Program (LAS)


High demand for Light Attack Platforms

SUPER TUCANO

99

25

8

12

18

16

21

Mali: 6 (NEW)

Ghana: 5 (NEW)

3

6

2

Super Tucano: Expanding our Footprint

Total Firm Orders

221


KC–390: Multitask Aircraft with Global Penetration

• Fire fighting• Military Transport• Air-to-Air Refueling• Search and Rescue• Medical Evacuation• Humanitarian Aid

Missions• Troop & Cargo

Airdropping

>>

Letters of intent from5 countries for 32 aircraft.

Launch customer: Brazilian Air Force 28 firm orders


Embraer Service and Support Footprint

Increasing Global Service Revenues

• 58 Contracts in place (+ 23% YoY)

• Backlog US$ 470 million (+ 77% YoY)


New Brazilian Fighter (F-39 Gripen)

Contract between Embraer and Saab effective and running

First group of 44 people in Sweden to ToT process – Oct 2015


• Contract between Embraer and Saab finalized (effective and running) – Sep 2015

• First group of 44 Brazilian engineers in Sweden – Oct 2015


SABER-M60

2011

2011

OrbiSAR – RFP

2014

SENTIR-M20 SABER-S200R

2015

SABER-M200 SABER-M200VIG

2017

COMINT

2015

2014

BradarSAR 3000

2016

2016

SAD

2017GRADE

Radar Portfolio Expansion


SKYFLOW AFTM (INDIA) - Air Traffic Flow Management Systems (ATFM)

42% deployedPhase I SAT finalized

Traffic Monitoring System


OGMA: Bigger Portfolio & Diversification

Service portfolio evolution and diversification(New MRO production line for commercial and executive aviationaftermarket reinforcement)

Investments in service capabilities (Construction of a new state of the art painting hangar, Ultra-High Pressure Waterjet Stripping for engine manufacturing)

Increasing aero structures manufacturing capabilities(Acquisition of an Automated Riveting Machine, new production methods and 5 Axe Automated Machine)


Main Focus


Improve Operational Efficiency




ModernizationA4, AMX and F-5

Final Assembly STStructural AssemblyWings: ST, KC-390Fuselage: KC-390

Final AssemblyKC-390

GPX Plant: Operational Gains

• Concentrate Operating Activities in the Gavião Peixoto (GPX) Site

• KC-390: Structure and Final Assembly Lines

• Gripen: New Gripen Design and Development Network

Gripen


Production cycle reduced by 40%

Efficiency Gains: Super Tucano Example

• Significant improvement in inventory turnover

• Lower production lead time


KC-390: Cost Reduction Initiatives

• Engineering costs: Fewer subcontractors and relocation to F-39 Gripen / E-2 Program.

• Production costs: Relocation to the E-2 Development Program.

• Administrative expenses: Downsized after reschedule.


KC-390: Resumption of Flight Test Campaign

October 26th, 2015

3 embraer day ny 2015 defesa-final_3

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