embraer day ny 2011 - executive aviation
TRANSCRIPT
Ernest EdwardsPresident, Executive Jets
New York – November 4th, 2011
Embraer Day
Executive Aviation Overview
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.
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
Melbourne Customer Center
Melbourne Customer Center
Melbourne Assembly Facility
Future 80+ employees 20 former NASA workers Paint facility fully operational
EMBRAER EXECUTIVE JETS - MARKET STRATEGIES
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.
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
High Reliability
Value Proposition
Advanced
Technology &
Innovations
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
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
PROGRAM UPDATES
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
Phenom 100®
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
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
Phenom 300®
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
The World discovers the Phenom 300®
50+ jets in operation
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
Illustrative purposes onlyOnly aircraft in their segments with a flat floor stand up cabin
Illustrative purposes only
Interior Design
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
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
Illustrative purposes only
Legacy 500 Program Evolution – Iron Bird
Legacy 500 Program Evolution
Legacy 500 Program Evolution
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
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
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
Around 190 jets in operation
The World discovers the Legacy 600®/Legacy 650
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
Lineage 1000® – Interior
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)
Customer Support & Services
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)
Embraer Distribution Center
São José dos
Campos
Fort
LauderdaleBeijing
VillepinteLouisville
Dubai
Spare Parts Supply Chain – Distribution Centers
Singapore
Increasing global coverage and inventory level
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
EXECUTIVE JETS - MARKET OVERVIEW
U.S. Corporate Profits
Source: BEA – Bureau of Economic Analysis and Embraer estimates – September 2011
Financial
Nonfinancial
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
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
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
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
2012-2021 Market Forecast
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
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
Executive Jets Fleet
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
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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