2004* 5o.encontro anual de investidores da embraer programa embraer 170 190(disponível apenas em...

EMBRAER 170/190 EMBRAER 170/190 ProgramProgram

November, 2004

Luís Carlos AffonsoSenior Vice President

Engineering and New Product Development

2THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

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 OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

120

160

Seat Capacity

40

80

0

Stage Length Nautical Miles (nm)

200 400 600 800 1000 1200 1400

30 Seat turboprops

50 SeatERJ 145

Narrow Body Large Aircraft

37 - 44 Seat ERJ 135/140

Filling the Seat Capacity Gap

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

EMBRAER 170/190 Family

EMBRAER 17070/78 Seats

EMBRAER 17070/78 Seats

EMBRAER 195108/118 Seats

EMBRAER 195108/118 Seats

EMBRAER 19098/106 Seats

EMBRAER 19098/106 Seats

EMBRAER 17578/86 Seats

EMBRAER 17578/86 Seats

5THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Meet/exceed future environmental requirements

Environment:

Low operating costs

Easy maintenance

Operational flexibility and low turnaround time

Commonality within the family

High maturity from entry into service

High passenger comfort and appeal

Operator:

Passenger:

Designed to Exceed Market Requirements

6THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

EMBRAER 170/190 challenges

✈ New platform

✈ New technologies (e.g. Fly-by-wire)

✈ Larger scales

✈ New configuration

✈ Simultaneous Development

✈ Aggressive requirements and time to market

✈ New market segment

✈ Innovative business model : risk partnership

ProgramProgramStrategiesStrategies

8THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Advisory Boards, Steering Groups andMan-machine Interface Meetings:

A Customer-Driven Design

2nd AABFLL - USAApril 9 Airlines

3rd AABPAR - FranceSeptember20 Airlines

1st SGSJC & LAXOctober11 Airlines

1st AABSJC - BrazilMarch7 Airlines

1999

2nd SGSJC & LAXJanuary13 Airlines

4th AABFLL - USAJune24 Airlines

3rd SGSJC - BrazilNovember16 Airlines

2000

1st MMI SJC – BrazilApril11 Airlines

5th AABSJC - BrazilApril27 Airlines

2nd MMIPAR - FranceMay6 Airlines

3rd MMISJC - BrazilJuly11 Airlines

4th MMISJC - BrazilSeptember9 Airlines

2001

5th MMI SJC – BrazilApril9 Airlines

20026th MMISJC – BrazilMay10 Airlines

Maintenance MMISJC – BrazilAugust17 Airlines

Interior SGPAR – FranceJune23 Airlines

9THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

EMBRAER 195

EMBRAER 190

EMBRAER 175

EMBRAER 170

2001 2002 2003 20042000 2005

2º Q/06

3º Q/05

4º Q/04

Fev/04

20061999

Simultaneous Development

10THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

GAMESA- Empennages

- Rear Fuselage(SPAIN)

LATECOERE- Center fuselage I

- Center fuselage III - Doors

(FRANCE)

GEAE-Engine

- Nacelles (USA)

SAINT GOBAIN- Radome

(USA)

HAMILTON SUNDSTRAND

- Tail Cone- APU(USA)

KAWASAKI- Wing stub

- Control Surfaces- Wing main box (190/195 only)

- Winglets (190/195 only)(JAPAN)

SONACA- Center Fuselage II

- Slats(BELGIUM)

HAMILTON SUNDSTRAND- Electrical system

- Air Management system(USA)

HONEYWELL / GRIMES- Avionics- Lights

- Wingtips(USA)

PARKER- Fuel system

- Flight Control system- Hydraulic system

(USA)

C & D- Interior(USA)

LIEBHER- Landing Gear(GERMANY)

Partners

11THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

A World-Wide Partnership Project

chorus

12THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

A Joint Design Teaming Effort

JDP in 1999

All partners co-located at Embraer since early design

300 partner members at Embraer

13THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Integration Supported by a World-Wide Portal

... A virtual team co-location for detailed design and manufacturing

900 people

800 people

300 people

1500 people

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

DMU

Real

State of the art development tools

15THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Investment Breakdown

US$ 900 Million

Partners R & D 34%

Material7%

Other14%

Building & Equipment

12%

Labor33%

EMBRAER 170/190

Product Characteristics

17THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Spacious cabin feeling

Four abreast seating:

Large headroom

Bins can accommodate roll-on bags as big as 24 x 16 x 10 in

Superior ground service access and baggage handling

Large cargo hold

FC 14/Nov/02

The Double-Bubble Design

18THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Cross Section Comparison

Double-bubble design gives passengers seamless level of comfort

A318/320 EMBRAER 17018”

19”

3.63 m

18.25”18.25”

19.75”19.75”

2.74 m2.74 m

Cabin width Per pax0.605 m/pax 0.685 m/pax0.685 m/pax

Cabin width Per pax

19THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

54” (137.2 cm) wide double seatModified bin to accommodate aisle offset

First Class Cross Section

20THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Cockpit:77.0 dBA

Assumptions:- FL 390; Typical Cruise Speed-Average of 5 points across each seat row (4 seats + aisle)-Measured in accordance to SAE ARP 1323

Interior Noise ✈ 77.5 dB(A) average inside passengers cabin and 77.0 dB(A) inside cockpit.

75

76

77

78

79

80

81

Average: 77.5

Maximum: 78.4

Minimum: 76.3

EMBRAER 170

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Range from Dallas

EMBRAER 190

EMBRAER 170

EMBRAER 195

EMBRAER 175

FAR Domestic Reserves

Taxi allowance14 minutes

Air Maneuvers3 minutes

CruiseISA

Wind85% Annual Reliability

Pax Weight & Baggage90.7 kg (200 lb)

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

JAR OPS Reserves

Taxi allowance14 minutes

Air Maneuvers3 minutes

CruiseISA

Wind85% Annual Reliability

Pax Weight & Baggage 90.7 Kg (200 lb)

Range from Paris

EMBRAER 190

EMBRAER 170

EMBRAER 195

EMBRAER 175

THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

FAR International Reserves

Taxi allowance14 minutes

Air Maneuvers3 minutes

CruiseISA

Wind85% Annual Reliability

Pax Weight & Baggage 90.7 kg (200 lb)

Range from Brasília

EMBRAER 190

EMBRAER 170

EMBRAER 195

EMBRAER 175

24THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

External Noise✈ The EMBRAER 170/190 Family comply with current and future Environmental

Requirements (ICAO Stage IV – 2006)

Note: STD versions equipped with E5 engines.

25THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Emissions✈ The EMBRAER 170/190 Family has large margins to 1999 ICAO Annex 16

Stage IV emissions requirements

Margin

74%

60%

24%

47%59%

31%

64%

97%

Margin

13.511.1Smoke (SN)

44.443.2Nox (g/kN)

47.442.5CO (g/kN)

5.00.5HC (g/kN)

LevelLevelPollutant

EMBRAER 190/195 CF34-10E5

EMBRAER 170/175 CF34-8E5

26THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Airborne Tecnology

27THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Conventional Architecture

28THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

System Main Features

Right Level of Integration

29THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

✈ Common pilot type rating ✈ High level of commonality of system components✈ 100% cockpit commonality✈ 100% of flying qualities commonality due to the Fly-by-Wire system

EMBRAER 170

EMBRAER 175

95%

EMBRAER 190

EMBRAER 195

95%

85%

Family Commonality - LRUs

30THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Very low TAT

Adequate positioning of Ground Service points

Two baggage/cargo compartments

Low GSE collision risk

Simultaneous pax and service cabin flows

GALLEYSERVICE

PASSENGER BRIDGE

POTABLEWATER

FUEL SERVICE

BAGGAGE LOADER

BAGGAGE LOADER

LAVATORY SERVICE

AIR COND.

BAGGAGE CARGOBAGGAGE

CARGO

GALLEY SERVICE

1 m

1 m

GO 14/Nov/02

Ground OperationsFour doors fuselage and appropriate GSE clearances expedite

turnaround time

31THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

EMBRAER 170/190 Economic LifeThe EMBRAER 170 airframe is conceived for a economic life of 80,000 flight cycles, approximately 30 years of operation.

32THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

MA 15/Mar/04

Maintenance Checks IntervalThe EMBRAER 170/190 family has the longest maintenance checks

intervals in the industry.

Note: Values in FH estimated according to the downtime periods for each aircraft further maintenance plan documentAssumptions: 2,500 FH/year; 1.33 FH/FC; 0.5 AH/FH (APU)

33THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Target ERJ 170: 1.0 MH/ FHActual: 0.7 MH/ FH

Maintenance Plan Benchmarking

34THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

10 Years Downtime ProjectionWith Longest Intervals and shorter downtimes, the EMBRAER family

has defined new productivity standards.

Note: Values in FH estimated according to the downtime periods for each aircraft further maintenance plan documentAssumptions: 2,500 FH/year; 1.33 FH/FC; 0.5 AH/FH (APU)

35THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

DMC ComparisonCost-effective use of new technologies results in very competitive

direct maintenance costs (DMCs)

GO 14/Nov/02

Maintenance Cost Comparison

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

E170 E175 E190 E195 CRJ700 CRJ900 B717 B737-600 A318

DM

C/F

H (%

)

36THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Profitable by Design

*Based on Total Operating Costs; Average OW net fare 500 sm USD 90; 600 sm USD 98

USA Environment

EMBRAER 170 78 seat

EMBRAER 17586 seats

EMBRAER 190106 seats

EMBRAER 195118 seats

PROFITBREAK-EVEN*

40 PAX (51%) 38 PAX

44 PAX (51%) 42 PAX

57 PAX (54%) 49 PAX

62 PAX (53%) 56 PAX

*Based on Total Operating Cost500 sm for EMBRAER 170/175600 sm for EMBRAER 190/195

EMBRAER 170 EMBRAER 170 ProgramProgram StatusStatus

38THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Fleet Status

6 aircraft delivered

Flight Cycles: 4457

Flight Hours: 6517

6 aircraft delivered

Flight Cycles: 4186

Flight Hours: 44662 aircraft delivered

Flight Cycles: 274

Flight Hours: 467

22 aircraft delivered

Flight Cycles: 14468

Flight Hours: 20228

Total

36 aircraft delivered

Flight Cycles: 23385

Flight Hours: 31678

39THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

EMBRAER 170 Operation

40THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

✈ CAT III a with autoland✈ SATCOM✈ Electronic Checklist✈ Airline FMS 2✈ Enhanced Transponder

✈ Emergency locator transmitter (ELT) with Pos. Report ✈ Quick Access Recorder (QAR)✈ Autobrake✈ Lightning Sensor System (LSS)✈ Single FMS✈ VNAV✈ WX radar and FMS map information on PFD✈ Airline FMS 1

Mar/Apr05Dec04

New Functionalities

41THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Jan05

✈ Cabin Surveillance System (CSS)

Nov05Sep05 Jan06

✈ Steep Approach Certification✈ CAT III b✈ HUD repeater + LVTO✈ Airline FMS3✈ VDR Mode 2

✈ Full Provisions for DGPS✈ Envelope Extendion to -2000ft✈ Stowage locations for

Laptops and mobile phone

✈ System CMC: Fault Modeling

Jul05

✈ PC Power Outlets on Seats✈ Freeze protection Kit✈ In Flight Intertainement (IFE)✈ Landing Gear Bay Fire protection

New Functionalities

EMBRAER 175 EMBRAER 175 ProgramProgram StatusStatus

43THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

EMBRAER 175 - Fuselage

FWD CENTRAL FUS I( FWD PLUG )

AFT CENTRAL FUS II( AFT PLUG )

838,2

(33in)

939,8

(37in)

44THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

EMBRAER 175 - Flight TestS/N 0014

1st Flight – June 14th, 2003

FH: 192h

S/N 0017

1st Flight – August, 7h, 2003

FH: 129h

✈ Type Certification: 4th Quarter, 2004

EMBRAER 190 EMBRAER 190 Program StatusProgram Status

46THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Main Landing Gear

Wing

CF34-10E Engine

Horizontal Stabilizer

Differences EMBRAER 170 x EMBRAER 190

47THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Fwd Plug Aft Plug

2407.2 mm

(94.8 in)3716.8 mm

(146.3 in)

EMBRAER 190 - Fuselage

48THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

First Flight – Mar/04

~ 295 FH

EMBRAER 190 - Flight Test Campaign

First Flight – May/04

~ 300 FH

First Flight – Jul/04

~ 50 FH

First Flight – 18/Sep/04

A/C 190-01

A/C 190-02

A/C 190-03

A/C 190-04

49THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Full Scale Static Test✈ Wing Down Bending finished and Wing Up Bending

Limit Load scheduled to this week.

Empennage – Static Test✈ Limit and Ultimate load cases

finished.

EMBRAER 190 - Ground Test Campaign

Tire Burst Test✈ Test Start scheduled for early November.

Fatigue Test✈ Wing Junction accomplished;✈ Test device assembly on-going;✈ Test Start scheduled for Jan 05.

50THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Satellite TV

LiveTV System available on EMBRAER 190´s jetBlue from 1st A/C

A320 Prototype

Radome

51THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Certification Date: Nov/05

Single and Dual HUD

52THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

ETOPS - Extended Range Operations

✈ ETOPS 75 minutes Dec/2005

✈ ETOPS 90 min + over-water

✈ ETOPS 90/120 minutes Combination: Aug/2006

Without ETOPSWith ETOPS

Non viable routes

53THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

✈ Type Certification 3rd Quarter, 2005✈ 1st Delivery: 3rd Quarter, 2005

EMBRAER 190 - Certification Dates

EMBRAER 195 EMBRAER 195 ProgramProgram StatusStatus

55THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Fwd Plug

3220 mm

(126.8 in)5317 mm

(209.3 in)

Fwd Plug

EMBRAER 195 - Fuselage

56THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

✈ 1st Flight: 4th Quarter, 2004✈ Type Certification 2nd Quarter, 2006✈ 1st Delivery: 3rd Quarter, 2006

EMBRAER 195 - Certification Dates

57THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Enthusiastic Market’s Receptivity

58THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

Thank you !Thank you !