Transcript
Page 1: Embraer Day NY 2011 - Executive Aviation

Ernest EdwardsPresident, Executive Jets

New York – November 4th, 2011

Embraer Day

Executive Aviation Overview

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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.

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Melbourne Facility

Future base for Embraer Executive Jets in

the US, located at Melbourne International

Airport, in Florida

Final assembly, paint booth and delivery of

Phenom 100 executive jets

Customer Design Center for all models

New US Sales & Marketing headquarters

Employment of at least 200 workers

Investment of US$ 50 million

Global Customer Center

Phenom 100 Assembly

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Melbourne Customer Center

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Melbourne Customer Center

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Melbourne Assembly Facility

Future 80+ employees 20 former NASA workers Paint facility fully operational

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EMBRAER EXECUTIVE JETS - MARKET STRATEGIES

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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.

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EIS 2009

EIS 2008Entry

Light

Mid-light

Mid-size

Super Mid-Size

Large

Ultra-Long Range

Ultra-large

Product Portfolio Expansion

EIS 2009

EIS 2010

EIS 2002

IN DEVELOPMENT

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High Reliability

Value Proposition

Advanced

Technology &

Innovations

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Service Centers Network - global coverage

Logistics and Parts Support – global coverage

Field and Product Support

Customer Care Program - EEC

Training Programs – total solution

Customer Support Integrated Solution

Vision

To become a leading Support & Services provider in the Business Aviation Market

through a solid network, genuine customer relationship and best practices.

Over US$ 200 million investment

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Sales Strategies

Executive Jet Division headquarters relocating to Melbourne, Florida

Five main Sales regions with distributed sales force, closer to the customers

Ten Authorized Sales Representatives for countries with specific cultural or

market characteristics

Pre-Owned Aircraft Department

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PROGRAM UPDATES

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Cycle / lead time reduction: 41%

Productivity improvements: 19% (50,000 Mh reduction)

Quality improvement: 49%

Cost savings: USD 2.8M

Inventory savings: USD 18M

P3E Savings / Earnings*

* Results from ~100 kaizen projects evaluated

** Average

High Level Statistics

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Phenom 100®

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Phenom 100® Update

First delivery this year

Interior being installed

First aircraft has been rolled out ready for paint shop

Second aircraft wing mating underway

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The World discovers the Phenom 100®

More than 200 aircraft in operationThe most delivered business jet in 2010

Robb Report

Best of the Best

2008, 2010, 2011

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Phenom 300®

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Phenom 300® - Market Leader

Customer acceptance Specialized Media acceptance

‘EDITOR S CHOICE 2010’ Award

Flying Magazine“…Embraer Platinum Edition Phenom 300, a high

performance aircraft that is ideally suited to our

Owners’ needs for reliability, range, interior comfort

and operating efficiency." David L. Sokol, NetJets’

Chairman and CEO.Embraer press-release, Oct 2010

"The Embraer Phenom 300 is at the forefront of

design and aerospace technology, and provides

private-jet users with the performance, reliability and

luxury they demand." said S. Michael Scheeringa,

C.E.O., Flight Options, LLC.Flight Options press-release, Dec 2007

‘BEST OF THE BEST BUSINESS JET’

Award by Robb Report Magazine 2011

The most delivered light jet in 2010

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The World discovers the Phenom 300®

50+ jets in operation

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Real US Coast to Coast Capability

3,000 nm with 4 pax @ LRC

2,800 nm with 8 pax @ M 0.80

Legacy 500 Performance

Clean sheet design

New generation concept

incorporating extensive

customer input

Design

Unsurpassed cabin comfort

and style

Full stand-up, flat-floor cabin

The Interior Advantage

Advanced and integrated

cockpit

State-of the-art avionics

Embraer ’s heritage of high

dispatch reliability

Systems & Technology

A New Paradigm for the Segment

Perfect for regional flights

2,300 nm with 4 pax @ LRC

2,200 nm with 8 pax @ M 0.78

Legacy 450 Performance

Legacy 450 and Legacy 500

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Illustrative purposes onlyOnly aircraft in their segments with a flat floor stand up cabin

Illustrative purposes only

Interior Design

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COCKPIT TECHNOLOGIES

State-of-the-art technology

Rockwell-Collins Pro Line Fusion Avionics

Full Fly-By-Wire flight controls

VNAV

Auto-throttle (std) and auto-brakes (optional)

Paperless cockpit capability

Head-up guidance system - HGS (optional)

EVS (optional) and SVS

Preliminary data - illustrative purpose only

Cockpit Technologies

Extensive Situational Awareness - Intuitive User Interface

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Legacy 450/500 Full Fly-by-wire Technology

Legacy 450 and Legacy 500 Fly-

by-Wire development team was

acclaimed as the “Innovator of

the Year” by Flight International

magazine readers

Rudder

Spoilers

Flaps

Elevator

Aileron

Horizontal Stab

FBW surfaces application:

First Mid-Size & Mid-Light jets with full Fly-by-Wire technology

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Illustrative purposes only

Legacy 500 Program Evolution – Iron Bird

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Legacy 500 Program Evolution

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Legacy 500 Program Evolution

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Legacy 500 Program Evolution

Movie

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Detailed Design and Certification Phase on going

800+ Embraer engineers engaged

Three prototypes in process

Fuselage Mating Completed for the first two prototypes

HTF7500E engine flight test on going

Fly-by-wire Iron Bird performed more than 1,400 test hours

Interior design, monuments, seats and systems being

validated

Assembly quality and cycles improved through state-of-the-

art processes and tools

Ground testing of first aircraft to start December 2011.

Legacy 500 – Program Status

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Legacy 600®/650 – Interior and Performance

Cabin Volume 1,650 ft3

Cabin Length 49 ft 10in

Baggage Volume 240 ft3

Range* L600 – 3,400 nm

L650 – 3,900 nm

MMO Mach 0.80

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

** MTOW; ISA; Seal Level

The longest cabin in its category

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

** MTOW; ISA; Seal Level

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3,900 nm range with 4 passengers

New Rolls-Royce AE 3007A2 engines

Honeywell Primus Elite - New avionics package for next

generation airspace requirements and improved cockpit

functionalities

Improved cabin sound comfort

Most comfortable cabin in its class

– 1,650 ft3 (46.7 m3)

3 spacious cabin zones

The largest baggage compartment in the market

Embraer DNA for High Utilization

Intercontinental range with superb comfort and outstanding reliability

Legacy 650 Advantage

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Around 190 jets in operation

The World discovers the Legacy 600®/Legacy 650

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Excellent value proposition in the Ultra Large segment

Innovative design and luxury

Ultra Large Cabin with 5 cabin zones

Differentiated interior modules: the Bar, the Lounge the Master Suite (shower option)

Range* 4,500 nm

MMO Mach 0. 82

Max ceiling 41,000 ft

TOFL** 6,135 ft

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

** MTOW, ISA, Sea Level

Lineage 1000® – Interior and Performance

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Lineage 1000® – Interior

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The World discovers the Lineage 1000®

9 Lineage 1000 and 2 E190 Head-of-State in operation

10 a/c delivered in 2009

Mexico = 1 acftIndia = 1 acft

UAE = 5 acft

Kuwait = 1 acft

Brazil = 3 acft (1 Lineage 1000 and 2 E190 Head-of-State)

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Customer Support & Services

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Service Centers Network

Currently present in 54 locations plus 4 new ones already announced

Embraer Service Center

Contracted Authorized Network

New Authorized Service Center (4Q11)

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Embraer Distribution Center

São José dos

Campos

Fort

LauderdaleBeijing

VillepinteLouisville

Dubai

Spare Parts Supply Chain – Distribution Centers

Singapore

Increasing global coverage and inventory level

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Customer Support

Global presence with dedicated team to

Customer Support

Contact Center – 24/7 availability

Supporting Customer daily operations on:

Technical issues

Maintenance

Spare Parts supply

Flight Operations

Customized innovative Services

and Support Solutions

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EXECUTIVE JETS - MARKET OVERVIEW

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U.S. Corporate Profits

Source: BEA – Bureau of Economic Analysis and Embraer estimates – September 2011

Financial

Nonfinancial

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World GDP growth rates

-3

-2

-1

0

1

2

3

4

5

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Gro

wth

Ra

te %

Real GDP growth rate, YoY%

Source: The Economist – October/2011

Release 2010 2011 2012 2013 2014

Dec'10 3,6 2,7 2,9 3,0 3,0

Mar'11 3,8 3,2 3,2 3,2 3,2

Jun'11 3,8 2,9 3,2 3,2 3,1

Sep'11 3,9 2,5 2,4 3,0 3,0

World Real

GDP

growth

March 2011December 2010June 2011

September 2011

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Business Jets Traffic – United States

FAA - Total Monthly Flights (Thousands)

20052007

20062004

2008

2009

2010

130

140

150

160

170

180

190

200

210

220

230

2011

Source: FAA – October/2011

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Business Jets Traffic – Europe

Eurocontrol - Total Monthly Flights (Thousands)

2005

2007

2006

2004

20082009

2010

Source: Eurocontrol – October 2011

25

30

35

40

45

50

55

60

2011

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Used market: inventory

Business Jets For Sale

Source: JetNet & Embraer analysis – October/2011

0

500

1000

1500

2000

2500

3000

3500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

99 00 01 02 03 04 05 06 07 08 09 10 11

Un

its

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

% o

f act

ive

fleet

Fleet up to 5 yrs and positions Positions

Fleet up to 5 yrs Fleet from 6 to 10 yrs

Fleet older than 10 yrs % for sale (per total active fleet)

up to 10 yrs % for sale

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2012-2021 Market Forecast

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0

200

400

600

800

1.000

1.200

1.400

1.600

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

New Jets Deliveries Values (Units)2012-2021 Forecast

Sustained Growth

2012-2021 11,275 units

Downturn

2012-2021 9,125 units

9,125 ~ 11,275 jets US$ 210 ~ 260 billion over the next 10 years

2012-2021 Market Forecast – World Deliveries

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Source: Embraer Analysis – world total may differ due to rounding

North America

5,265 a/c (47%)

US$ 109 Bi (42%)

EMEA

3,415 a/c (30%)

US$ 88 Bi (34%)

Asia Pacific

1,690 a/c (15%)

US$ 48 Bi (18%)

China

635 a/c (6%)

US$ 21 Bi (8%)

Brazil

550 a/c (5%)

US$ 8 Bi (3%)

Latin America

905 a/c (8%)

US$ 16 Bi (6%)

2012-2021 Market Forecast by region

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Executive Jets Fleet

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Fleet in operation

Legacy 600/650

~ 190 a/c

Lineage 1000 / 170 Shuttle

>10 a/c

Phenom 100

>200 a/c

Phenom 300

>50 a/c

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North America

>170 a/cEMEA

>150 a/c

Asia Pacific

~20 a/c

Brazil

90 a/c

Latin America

~100 a/c

FLEET DISTRIBUTION – EMBRAER

Fleet Distribution – Embraer Executive Jets

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THANK YOU !


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