Embraer Day NY 2011 - Executive Aviation

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  1. 1. Embraer DayExecutive AviationOverviewErnest Edwards President, Executive Jets New York November 4th, 2011
  2. 2. 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.
  3. 3. Melbourne Facility Global Customer CenterPhenom 100 Assembly Future base for Embraer Executive Jets in Customer Design Center for all modelsthe US, located at Melbourne International New US Sales & Marketing headquartersAirport, in Florida Employment of at least 200 workers Final assembly, paint booth and delivery ofPhenom 100 executive jets Investment of US$ 50 million
  4. 4. Melbourne Customer Center
  5. 5. Melbourne Customer Center
  6. 6. Melbourne Assembly Facility Future 80+ employees 20 former NASA workers Paint facility fully operational
  7. 7. EMBRAER EXECUTIVE JETS - MARKET STRATEGIES
  8. 8. 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.
  9. 9. Product Portfolio Expansion Ultra-large EIS 2009Ultra-Long Range Large EIS 2010 Super Mid-SizeEIS 2002Mid-size IN DEVELOPMENTMid-light LightEIS 2009 EntryEIS 2008
  10. 10. Value PropositionAdvancedTechnology & InnovationsHigh Reliability
  11. 11. Customer Support Integrated SolutionVisionTo become a leading Support & Services provider in the Business Aviation Marketthrough a solid network, genuine customer relationship and best practices. Service Centers Network - global coverage Logistics and Parts Support global coverage Field and Product Support Customer Care Program - EEC Training Programs total solution Over US$ 200 million investment
  12. 12. 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
  13. 13. PROGRAM UPDATES
  14. 14. P3E Savings / Earnings*High Level Statistics Cycle / lead time reduction: 41% Productivity improvements: 19% (50,000 Mh reduction) Quality improvement: 49% Cost savings: USD 2.8M Inventory savings: USD 18M* Results from ~100 kaizen projects evaluated ** Average
  15. 15. Phenom 100
  16. 16. 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
  17. 17. The World discovers the Phenom 100Robb ReportBest of the Best 2008, 2010, 2011More than 200 aircraft in operation The most delivered business jet in 2010
  18. 18. Phenom 300
  19. 19. Phenom 300 - Market LeaderCustomer acceptance Specialized Media acceptanceEDITOR S CHOICE 2010 AwardEmbraer Platinum Edition Phenom 300, a high Flying Magazineperformance aircraft that is ideally suited to ourOwners needs for reliability, range, interior comfortand operating efficiency." David L. Sokol, NetJetsChairman and CEO.Embraer press-release, Oct 2010 BEST OF THE BEST BUSINESS JET "The Embraer Phenom 300 is at the forefront ofAward by Robb Report Magazine 2011 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 The most delivered light jet in 2010
  20. 20. The World discovers the Phenom 30050+ jets in operation
  21. 21. Legacy 450 and Legacy 500Legacy 500 Performance Legacy 450 Performance Real US Coast to Coast Capability Perfect for regional flights 3,000 nm with 4 pax @ LRC 2,300 nm with 4 pax @ LRC 2,800 nm with 8 pax @ M 0.80 2,200 nm with 8 pax @ M 0.78The Interior Advantage DesignSystems & Technology Unsurpassed cabin comfort Clean sheet design Advanced and integratedand style cockpit New generation concept Full stand-up, flat-floor cabin incorporating extensive State-of the-art avionicscustomer input Embraers heritage of highdispatch reliabilityA New Paradigm for the Segment
  22. 22. Interior DesignIllustrative purposes onlyOnly aircraft in their segments with a flat floor stand up cabinonlyIllustrative purposes
  23. 23. Cockpit TechnologiesCOCKPIT TECHNOLOGIES Preliminary data - illustrative purpose only State-of-the-art technology Auto-throttle (std) and auto-brakes (optional) Rockwell-Collins Pro Line Fusion Avionics Paperless cockpit capability Full Fly-By-Wire flight controls Head-up guidance system - HGS (optional) VNAV EVS (optional) and SVS Extensive Situational Awareness - Intuitive User Interface
  24. 24. Legacy 450/500 Full Fly-by-wire TechnologyFBW surfaces application: Rudder Elevator Spoilers Aileron Flaps Horizontal Stab Legacy 450 and Legacy 500 Fly- by-Wire development team was acclaimed as the Innovator of the Year by Flight International magazine readers First Mid-Size & Mid-Light jets with full Fly-by-Wire technology
  25. 25. Legacy 500 Program Evolution Iron Bird Illustrative purposes only
  26. 26. Legacy 500 Program Evolution
  27. 27. Legacy 500 Program Evolution
  28. 28. Legacy 500 Program EvolutionMovie
  29. 29. Legacy 500 Program StatusDetailed 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.
  30. 30. Legacy 600/650 Interior and PerformanceRange*L600 3,400 nmL650 3,900 nmMMO Mach 0.80*4 passengers @ 200 lb, NBAA IFR reserves (200 nmalternate, 35 min of holding @ 5,000 ft) reserves (200 nm *4 passengers @ 200 lb, NBAA IFR alternate, 35 min of holding @ 5,000 ft)** MTOW; ISA; Seal Level ** MTOW; ISA; Seal LevelCabin Volume 1,650 ft 3Cabin Length 49 ft 10inBaggage Volume 240 ft 3The longest cabin in its category
  31. 31. Legacy 650 Advantage 3,900 nm range with 4 passengers New Rolls-Royce AE 3007A2 engines Honeywell Primus Elite - New avionics package for nextgeneration airspace requirements and improved cockpitfunctionalities 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
  32. 32. The World discovers the Legacy 600/Legacy 650 Around 190 jets in operation
  33. 33. Lineage 1000 Interior and Performance 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 Loungethe Master Suite (shower option) Range* 4,500 nm MMOMach 0. 82 Max ceiling41,000 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
  34. 34. Lineage 1000 Interior
  35. 35. The World discovers the Lineage 1000 10 a/c delivered in 2009Kuwait = 1 acft India = 1 acft Mexico = 1 acft UAE = 5 acftBrazil = 3 acft (1 Lineage 1000 and 2 E190 Head-of-State)9 Lineage 1000 and 2 E190 Head-of-State in operation
  36. 36. Customer Support & Services
  37. 37. Service Centers Network Embraer Service Center Contracted Authorized Network New Authorized Service Center (4Q11)Currently present in 54 locations plus 4 new ones already announced
  38. 38. Spare Parts Supply Chain Distribution Centers VillepinteLouisville FortBeijing LauderdaleDubai Singapore So Jos dos Campos Embraer Distribution Center Increasing global coverage and inventory level
  39. 39. Customer Support Global presence with dedicated team toCustomer Support Contact Center 24/7 availability Supporting Customer daily operations on: Technical issues Maintenance Spare Parts supply Flight Operations Customized innovative Servicesand Support Solutions
  40. 40. EXECUTIVE JETS - MARKET OVERVIEW
  41. 41. U.S. Corporate Profits Financial Nonfinancial Source: BEA Bureau of Economic Analysis and Embraer estimates September 2011
  42. 42. World GDP growth rates Real GDP growth rate, YoY%54March 2011 June 2011December 20103Growth Rate % September 2011210-1-2-3 2002 2003 2004 2005 20062007 2008200920102011 201220132014 2015 Release 2010201120122013 2014World Real Dec10 3,6 2,7 2,9 3,03,0GDP Mar11 3,8 3,2 3,2 3,23,2 growth Jun11 3,8 2,9 3,2 3,23,1 Sep11 3,9 2,5 2,4 3,03,0Source: The Economist October/2011
  43. 43. Business Jets Traffic United StatesFAA - Total Monthly Flights (Thousands)2302202102002006190 2004180 2007200517020112010160150 2009140 2008130 Source: FAA October/2011
  44. 44. Business Jets Traffic Europe Eurocontrol - Total Monthly Flights (Thousands)605550 201145402007201035200620092008302005200425 Source: Eurocontrol October 2011
  45. 45. Used market: inventory Business Jets For Sale3500 28%Fleet up to 5 yrs and positionsPositions 26%Fleet up to 5 yrsFleet from 6 to 10 yrs3000 24%Fleet older than 10 yrs% for sale (per total active fleet) 22%2500up to 10 yrs % for sale20% 18% % of active fleet2000 16%Units 14%1500 12% 10%1000 8% 6% 500 4% 2% 0 0% 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 00010203 0405060708091011Source: JetNet & Embraer analysis October/2011
  46. 46. 2012-2021 Market Forecast
  47. 47. 2012-2021 Market Forecast World DeliveriesNew Jets Deliveries Values (Units) 2012-2021 Forecast 1.600 Sustained Growth 1.4002012-2021 11,275 units 1.200 1.000800 Downturn2012-2021 9,125 units600400200 0 2000 2002 2004 2006 2008 2010 20122014 20162018 2020 9,125 ~ 11,275 jets US$ 210 ~ 260 billion over the next 10 years
  48. 48. 2012-2021 Market Forecast by region North America EMEA5,265 a/c (47%)3,415 a/c (30%)US$ 109 Bi (42%) US$ 88 Bi (34%) China635 a/c (6%)Asia Pacific US$ 21 Bi (8%)1,690 a/c (15%)Latin America US$ 48 Bi (18%) 905 a/c (8%) US$ 16 Bi (6%) Brazil 550 a/c (5%) US$ 8 Bi (3%) Source: Embraer Analysis world total may differ due to rounding
  49. 49. Executive Jets Fleet
  50. 50. Fleet in operation Phenom 100 Legacy 600/650 >200 a/c~ 190 a/cPhenom 300 Lineage 1000 / 170 Shuttle>50 a/c >10 a/c
  51. 51. Fleet Distribution Embraer Executive JetsFLEET DISTRIBUTION EMBRAER North AmericaEMEA >170 a/c>150 a/cAsia Pacific~20 a/cLatin America~100 a/c Brazil 90 a/c
  52. 52. THANK YOU !