defense and security embraer day 2012

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EMBRAER DEFENSE AND SECURITYIMD 003-A12

Luiz Carlos Aguiar, CEO

February 10th, 2012



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.



AGENDA


General Information

Results and the Future

Strategic Vision

Main Programs Status

IMD 003-A12 EMBRAER DEFENSE AND SECURITY

EMBRAER DEFENSE AND SECURITY

Embraer Defense and Security: a new Embraer company established on 1st January 2011

Revenues around US$ 850 million including services (est. 2011)

1,436 employees

Presence in more than 40 countries




RESULTS: REVENUE AND EBIT

Revenue

Evolution

(US$ Million)

EBIT (2011/2012): 9~12%

~ 850

975

670

499505

346

227

14,7%12,6%

9,0%8,0%

7,0%6,0%

-

200

400

600

800

1.000

1.200

2006 2007 2008 2009 2010 2011E (*) 2012E (*)

-7,0%

-5,0%

-3,0%

-1,0%

1,0%

3,0%

5,0%

7,0%

9,0%

11,0%

13,0%

15,0%

Revenue (US$ Million) Participation (%)

CAGR

31%

Ref.: December, 2011

900 ~ 950



RESULTS: BACKLOG

Backlog

Evolution

(US$ Billion)




REVENUE BREAKDOWN EVOLUTION

20122011

*

*

* Radar (Orbisat)

C4I (Atech)

UAV (Harpia and Santos Lab)

MRO (Ogma)

Satellite (JV Embraer/Telebrás)Ref.: December, 2011

Modernization

26%

Radar, C4I, UAV,

MRO

26%KC-390

19%

Services

10%

Light Attack

9%

ISR

10%



VISION AND MISSION


VISION AND MISSION

Mission

To protect people, territories and safeguard critical

assets, by developing tailored and business

integrated solutions in the Defense & Security

markets, and by providing results for customers

and stakeholders, partners and society.

Vision

To be the leader in providing

defense & security solutions in

the Brazilian market and in those

where Brazil presents strong

geopolitical insertion




STRATEGIC OBJECTIVES

To build a leadership position and to

act as the main prime contractor in the

Brazilian Defense and Security Industry

Base

To expand the portfolio of products,

services and technologies build

through a combination of organic

growth and acquisitions



Brazilian Army Priorities

SISFRON

Integrated Borders

Monitoring System

Estimate: US$ 4 bi

Comprising radars,

communication networks, C4I,

unmanned air vehicles (UAV)

and armored vehicles

Satellite

Estimate: US$ 400 M

Participation in the first

Brazilian Geostationary

Satellite



• Other Brazilian

companies

• Equipment

suppliers

• Solutions

development

Foreign

Companies

Brazilian

construction

companies

Brazilian

Government

Projects

Brazilian priority supplies

• Brazilian supply chain strengthening

• Technology development and retention

• Finance structuring

• Highly qualified employment generation

• Technological spin-off

Main

Contractors

Supply of

complementary

foreign equipment

Supply of base

infrastructure

• EADS (Europe)

• Fincantieri (Italy)

• Finmeccanica (Italy)

• Thales (France)

• Elbit (Israel)

• IAI (Israel)

• BAE Systems (UK)

• DCNS (France)

• Boeing (USA)

• Rockwell Collins (USA)

• Indra (Spain)

• Saab (Sweden)

• ....

• Prime contractor

• Project management

• Finance structuring

• Solutions integrator

• Development and retention of technologies

• Services and logistics

Main Brazilian Defense and Security Company:Satellite

MAIN COMPANY IN THE INDUSTRY’S

PRODUCTIVE CHAIN IN BRAZIL

SISFRON

Integrated Borders

Monitoring

System


To build a leadership position and to act as the main prime contractor

in the Brazilian Defense and Security Industry Base



GROWTH THROUGH ACQUISITIONS AND PARTNERSHIPS

Command and Control

Air Traffic Management

Systems

Police Intelligence

System

*

UAV

Simulators

Modernization of avionics systems

HARPIA

MRO

Aerostructures

Remote Sensing

Ground Radars

Mission Systems

Mini-UAVs Satellite

Control

Commercial Agreement

(*) Embraer Defense and Security has the joint control of Atech Negócios em Tecnologias S/A


To expand the portfolio of products, services and technologies

build through a combination of organic growth and acquisitions

JV Embraer/

Telebrás



HARPIA

Command and Control Systems

Onboard Systems

Simulation Systems

Electronic Warfare Systems

Intelligence Systems

Air Traffic Management and Control Systems

JV with Elbit/AEL Sistemas where Embraer Defense and

Security has a major participation

UAS, simulators and modernization of avionics systems

Air, ground and sea surveillance radars

Remote sensing

Engine and Component Maintenance

Overhaul and Modernization

Aerostructure Manufacturing and Assembling

SatelliteJV Embraer/

Telebrás

NEW PORTFOLIO

Security of Critical

Infrastructure

Public Security

(sporting events,

cities, states)

Airport

Management

Systems

SISFRON

SisGAAZ

Satellite

Services

Radar

UAV’s

System of Systems



EMBRAER DEFENSE AND SECURITY,

PARTNERS AND AFFILIATED COMPANIES

Light attack and

advanced trainingTransport of authorities

Modernization programs

ISR (Intelligence, Surveillance and Reconnaissance)

Services Tactical military transport

UAV’s

HARPIA

System of Systems Radar Satellite

JV Embraer/

Telebrás



Alverca (Portugal)

MRO

Abu Dhabi (UAE)

Commercial presence

Singapore

Commercial officeBrasília (Brazil)

Commercial office

Harpia Sistemas headquarter

Rio de Janeiro (Brazil)

Commercial presence

São Paulo (Brazil)

Headquarters

Atech S.A headquarters

São José dos Campos (Brazil)

Engineering, programs, industrial

operations, customer support and services

Orbisat headquarters

Campinas (Brazil)

Orbisat (engineering and operations)

Gavião Peixoto (Brazil)

Industrial operations

Service center

Villepinte (France)

Logistic support

Washington DC (USA)

Commercial presence

CORPORATE PRESENCE


Eugênio de Melo (Brazil)

KC-390 Program

Engineering



PORTFOLIO – SUPER TUCANO

Firm orders: 182 aircraft

Brazil: 99

Colombia: 25

Dominican Republic: 8

Chile: 12

Ecuador: 18

Indonesia: 8

Greystone (TACAir): 1

Undisclosed: 11

Deliveries: 156 aircraft

Medium-term

2,000 Short-term

800

Long-term

700

Super Tucano Addressable Market Forecast 2020

(US$ million)

Total Market Forecast:

300 aircraft

US$ 3.5 billion

Pursuing USAF Light

Air Support

competition


http://www.builtforthemission.com/



MODERNIZATION PROGRAMS


Total Market Forecast*:

234 aircraft

US$ 1.6 billion

Modernization Addressable Market Forecast 2025

(US$ million)

Brazilian Navy A-4

12 aircraft

Two prototype at GPX-CS

Brazilian Air Force A-1M

43 aircraft

Five received by Embraer for the modernization

Brazilian Air Force F-5M

46 a/c + 11 a/c (2nd batch)

44 already delivered

Short-term

527

Medium-term

505

Long-term

567

* Forecast considering the market for F-5 and Tucano modernization




TRANSPORT OF AUTHORITIES AND EMBRAER ISR SYSTEMS

Brazil

Panama

India

Angola

Ecuador

Belgium

Pakistan

Nigeria

Colombia

Greece

Thailand

Equatorial Guinea

Embraer ISR Systems: 18 aircraft:

Brazilian Air Force: 8

Hellenic Air Force: 4

Mexican Air Force: 3

DRDO/CABS (India): 3

15 aircraft in operation


Embraer Jets to Defense and Government customers operating

in 12 countries

Presence in Latin America, Europe, Africa and Asia

58 Embraer Jets in operation





Chile

(6)

Portugal

(6)

Czech Rep.

(2)Brazil

(28)

Colombia

(12)Argentina

(6)

Total Market Forecast 2025:

700 aircraft

US$ 50+ bi

A new tactical military transport and

tanker aircraft

First flight in 2014

Six countries

Letters of intent totalizing 60 aircraft

EMBRAER KC-390




Mission

Computer

Wing Air Refueling

Pod System

Cargo Handling and Aerial

Delivery System

Landing

Gear LegsThrottle Control

Cockpit Controls

Pedals

FBW Primary and

Spoiler Flight

Control System

and Actuators

Integrated Power

Plant System (IPPS)

Air Conditioning

SystemCabin Pressure Control System

Wheels and Brakes Assemblies

LG System Hydraulic Control

Components

Brake Control System

Steering Hydraulic Manifold

Basic

Avionics

Tactical Radar System

Liferaft and Maritime ELT System

Pilot / Co-pilot / ACM and Loadmaster Seats

-DIRCM

-HUD

-SPS

HUD

EMBRAER KC-390: MAIN PARTNERS AND SUPPLIERS


http://www.eleb.net/index.php

http://www.baesystems.com/index.htm

http://rockwellcollins.com/

http://www.google.com.br/imgres?imgurl=http://www.ellidiss.com/png/s_hispano_suiza_logo.gif&imgrefurl=http://www.ellidiss.com/stood_users.asp&usg=__i6DQ5Cwy-VRJsO8wmGQJjIu6Z38=&h=38&w=175&sz=4&hl=pt-BR&start=12&zoom=1&tbnid=Bhp3Obs5hwJMGM:&tbnh=22&tbnw=100&ei=ibSlTvDdLI7UgAeShYGyBQ&prev=/search%3Fq%3DHispano%2BSuiza%2Blogo%26um%3D1%26hl%3Dpt-BR%26safe%3Dactive%26sa%3DN%26tbm%3Disch&um=1&itbs=1

http://www.selexgalileo.com/SelexGalileo/EN/index.sdo;jsessionid=BC65FA749160FD5B9C69F2C64623CD48.fnm_prd_srv1

http://www.goodrich.com/vgn-ext-templating/v/index.jsp?vgnextoid=0b18984786956110VgnVCM10000068f57eaaRCRD