2004* 5o.encontro anual de investidores da embraer panorama industrial (disponível apenas em...

Development and Industry

Satoshi YokotaExecutive VP

November 2004

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

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.

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Agenda

QIndustrial Activities

QAdvanced Design & Product Development

QEngineering Capabilities

QIndustrial Capabilities

QManufacturing Strategies

QLogistics Strategies

QRisk Sharing Partners Management

QQualified People

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Activities

Supply ChainSupply Chain

ManufacturingManufacturingEngineeringEngineering

Product IntegrityProduct Integrity

AdvancedAdvanced DesignDesignProductProduct DevelopmentDevelopment

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Industrial Sites (1)

Harbin

Faria Lima

ELEBSantos EGM

Worldwide Industrial Sites

West Palm Beach

NeivaGavião Peixoto

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Sites (2)

Gavião Peixoto646 employees

Faria Lima / SJK 10,386 employees

Neiva / Botucatu1,355 employees

Eugênio de Melo / SJK883 employees

Santos – Warehouse

BrazilFaria LimaEugenio de MeloELEBNeivaGavião PeixotoSantos

ELEB / SJK535 employees

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Sites (3)

ChinaHarbin

USAWest Palm Beach

Engineering Office

Production of ERJ 145 FamilyStarted up in April 2003

Harbin165 employees

West Palm Beach58 employees

Advanced Design & Product

Development

November 2004

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Product Development

BANDEIRANTE(EMB 110/111)

TUCANO(EMB 312)

BRASÍLIA(EMB 120)

ERJ 145ERJ 135

AL X(EMB 314)

AMX

SIVAMAEW&C Grécia

AEW&C México

LEGACY

ERJ 145 XR

EMBRAER 170EMBRAER 175

EMBRAER 195

ERJ 140

EMBRAER 190

Join Definition Serial Production Phase-OutDesign and Certification

Engineering Capabilities

November 2004

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (1)

Virtual Reality Center

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (2)

Intelligent interface for structural analysis and design

Output: CATIA model for rib

Output: wing model for structural analysis

Knowledge Based Engineering

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

DMU Image Real Image

Digital Mock-up

Engineering Capabilities (3)

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (4)

Bird Impact Tests

Real TestAnalysis

Results Comparison

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (5)

C.F.D. - Computation Fluid Dynamic

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (6)

Results Comparison

Real Test

AnalysisWater Ingestion Test

C.F.D. Results

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (7)

F.E.M. – Finite Element Model

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (8)

Noise & Vibration Analysis

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (9)

Engineering Simulator

SITS Iron Bird

Simulation

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (10)

Ergonomic and Accessibility Analyses

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (11)

Structural Test Laboratory

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (12)

Flight Tests - Runway

Ø One of the best and longest runways in the world Ø Available 365 days per year

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (13)

Chase Aircraft Hawker Hunter MK 72

Rescue Helicopter – Bell UH 1H

Flight Tests - SupportFire Truck

Medical Service

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (14)

Flight Test Data Processing

TELEMETRYTELEMETRY

ONON--BOARDBOARD

PLAYPLAY--BACKBACK

PCM PCM signalsignal

Engineering StationsEngineering Stations

Data Processing ServersData Processing Servers

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Capabilities (15)

Flight Tests - Infrastructure

Additional Area

Concluded

Industrial Capabilities

November 2004

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Computer Simulation used to evaluate, optimize and

validate the Industrial Process

Assembly &Ergonomics

- Lean Manufacturing- Production Flow and Layout- Production Capacity- Manpower Equalization- Logistics & Supply

Industrial Capabilities (1)

Digital Manufacturing

Composites Lay Up

CNC Machining

Manufacturing Lay- Out’s

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (2)

Hydroform Press

5 Axes High Speed CNC Router

Sheet Metal Parts

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (3)

Tooling Design & Manufacture

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (4)

Surface Treatment

Chemical MillingChemical Process

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (5)

CNC Extrusion Profile

CNC High Speed

CNC 5 Axes

Shot PeeningShot PeeningShot Peening

Machining

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (6)

Autoclave

Composites

CNC Cutting

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (7)

Laser Marking

CNC Bending Machine

Harness Shop

Tubing Shop

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (8)

CNC Riveting Machine Laser Measurement System

Structural Assembly

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (9)

Painting Booth

Primer

Paint

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (10)

Neiva Site:Center of Competence for Fuselage Panels

Previous access

Additional areafor growth

+ 4500 m²

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (11)

Gavião Peixoto Site:Cabinet Production

Responsiveness = FlexibilityCost effective solutionFirst Shipset Started- up: September/2004

Cabinet Production Line

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (12)

Assembly Line

Dock System

Final Assembly

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (13)

Flight Preparation

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Capabilities (14)

Aircraft Delivery

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Serial Programs (1)

ERJ 145 Family / Corporate

ERJ 145Legacy

ERJ 145 XR

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Serial Programs (2)

EMBRAER 170

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Serial Programs (3)

Defense

AEW&C

F5-BR

ALX

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Production Cycle

Aircraft Production Cycle(in months)

6.0

14

3.7 3.4

1994 1998 2002 2003

3.3

2004

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

ManufacturingStrategies

November 2004

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Manufacturing Strategies

Responsiveness

Manufacturing Flexibility

Costs Reduction

Process Capability

Entrega

meses

LIE

LSE

Obj.

LIE

LSE

Obj.

Mtg. 3 Mtg. 4Mtg. 1 Mtg. 2 Mtg. 4Mtg. 1 Mtg. 4

1º C.C. 2º C.C.

Primary Parts

Structural Assembly

Final Assembly

Postponement:

Time-To-Market: Manufacturing Cycle Reduction

Configuration Cycle

Stock Turn Over H/h Evolution:

4,4

6,7

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

dez/

01

fev/

02

abr/0

2

jun/

02

ago/

02

out/0

2

dez/

02

fev/

03

abr/0

3

jun/

03

ago/

03

out/0

3

dez/

03

fev/

04

abr/0

4

jun/

04

ago/

04

ALMOX. AERON. PROCESSO TOTAL

18

20

23

25

28

30

33

35

38

40

ma

ise

tja

nm

ar jun

set

jan

mar ju

n

set

de

zja

nm

ar jun

set

de

zja

n

mar ju

n

set

de

zja

n

mar ju

n

set

de

zja

n

mar ju

n

set

nov

Ho

ras

(x 1

.000

)

Real MAP

- Meta (média anual 2004) = 23.000 Hh - Real (média out/04) = 21.295 Hh

20001999 2001 2002 20031998 2004

ERJ 145

0

50.000

100.000

150.000

1 2 3 4 5 6 7 8 9 10 11 12

13

15

16

23

24 25 27 28 29 30

31

32

33

34 35 36 37 38 39 40

41

42

43

44 45 46 47 48 49

50

51

52

53 54 55 56 57 58

59

60

61

62

63 64 65 66 67 68

69

70

71

72 73 74 75 90 11

01

30

15

01

70

18

01

91

20

02

10

30

0

N/S

Hh

Real Plano de Recuper

Real c/ H h não apontado Projeção

Projeção c/ H h não apontado MAP

..

0

50.000

100.000

150.000

1 2 3 4 5 6 7 8 9 10 11 12

13

15

16

23

24 25 27 28 29 30

31

32

33

34 35 36 37 38 39 40

41

42

43

44 45 46 47 48 49

50

51

52

53 54 55 56 57 58

59

60

61

62

63 64 65 66 67 68

69

70

71

72 73 74 75 90 11

01

30

15

01

70

18

01

91

20

02

10

30

0

N/S

Hh

Real Plano de Recuper

Real c/ H h não apontado Projeção

Projeção c/ H h não apontado MAP

..

EMBRAER 170

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Logistics Strategies

November 2004

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Logistics Strategies (1)

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

1998 1999 2000 2001 2002 2003 2004

%

FOB/CIFTrend

FOB/ CIF Strategies

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Logistics Strategies (2)

Guarujá Site – Warehouse

Shipment at Santos Harbor

Special Wagon Transport

Just- in-Time

§ Less handling, lower investment, ...

§ Storage of segments (1st step solution)

§ Embraer Warehouse close to Santos Harbor

EmbraerWarehouse

Started up: August, 2004

Moorage

Risk Sharing Partners

Management

November 2004

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Partnership as a Strategy

Risk Sharing Partners Management (1)

ERJ 145 family:

• 4 partners

• 350 suppliers

EMBRAER 170 / 190 family :

• 16 partners

• 22 suppliers

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Annual Partners & Suppliers Conference

QualifiedPeople

November 2004

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Qualified People (1)

More than US$ 85 million invested intraining and development in the last 5 years

In–house courses:

• 18 - month graduate course in Aeronautical Engineering

US$ million

11

21

18

6.2

13.5

24.5

1999 2000 2001 2002 2003 1H04

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Industrial Educational Level

Qualified People (2)

High SchoolGraduates

Graduates

Masters or PhD

72,7 %

5,6 %21,7 %

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

0

500

1000

1500

2000

2500

3000

3500

4000

Peop

le

Dec 96 Dec 97 Dec 98 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Jul 04

Engineering Manpower Growth

Qualified People (3)

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Engineering Specialization Program

e-Learning Technology Special Infrastructure

Aeronautical Qualified Professional

18 months

Qualified People (5)

2002 è2004 = 477 engineers will be trained

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED NOR USED IN ANY MANNER EXCEPT AS EXPRESSLY AUTHORIZED

Thank You!