executive aviation embraer day 2010 10_29

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Embraer Day Executive Aviation Overview Luís Carlos Affonso Embraer Executive Vice-President, Executive Jets São José dos Campos – October 29 th , 2010

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Page 1: Executive aviation embraer day 2010 10_29

Embraer Day

Executive Aviation Overview

Luís Carlos AffonsoEmbraer Executive Vice-President, Executive Jets

São José dos Campos – October 29th, 2010

Page 2: Executive aviation embraer day 2010 10_29

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.

Page 3: Executive aviation embraer day 2010 10_29

Real GDP growth rate, YoY%

-3

-2

-1

0

1

2

3

4

520

02

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

World GDP

Source: The Economist, September 2010.

Gro

wth

Rat

e %

World Real GDP growth

Source 2009 2010 2011 2012 2013 2014 2015

The Economist – Sep’10 -2.2% 3.2% 2.4% 3.0% 3.1% 3.3% 3.2%

The Economist – Mar’10 -2.1% 2.7% 2.6% 3.0% 3.2% 2.3% 2.4%

The Economist – Jun’09 -3.1% 1.3% 2.4% 2.8% 3.0% NA NA

The Economist – Sep’10

The Economist – Jun’ 09

The Economist – Mar’10

World GDP growth rates

Page 4: Executive aviation embraer day 2010 10_29

Financial

Nonfinancial

2007 avg

Low

Current

+96%

+7%

Source: BEA – Bureau of Economic Analysis and Embraer estimates – August 2010

U.S. Corporate Profits

Page 5: Executive aviation embraer day 2010 10_29

Global Stock Markets return %

Highlighted area: >10% overall dropSource: Yahoo Finance, October 13th, 2010

SSE Composite (China)

IBOVESPA (Brazil)

S&P500 (US)

FTSE100 (UK)

RTS (Russia)

Stock markets

Page 6: Executive aviation embraer day 2010 10_29

FAA - Total Monthly Flights (Thousands)

20052007

20062004

2008

2009

2010

130

140

150

160

170

180

190

200

210

220

230

Jan

Feb Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec

Source: FAA – May 2010

Business Jets Traffic – United States

Page 7: Executive aviation embraer day 2010 10_29

2005

2007

2006

2004

20082009

2010

Eurocontrol - Total Monthly Flights (Thousands)

25

30

35

40

45

50

55

60

Jan

Feb Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec

Source: Eurocontrol – July 2010

Business Jets Traffic – Europe

Page 8: Executive aviation embraer day 2010 10_29

0

500

1000

1500

2000

2500

3000

3500

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4

9 9 0 0 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 0 9 10

Un

its

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

% o

f ac

tive

fle

et

% for sale (per total fleet

in operation)

Business Jets For Sale

Source: Embraer analysis – October 2010

fleet older than 10 yrs

fleet from 6 to 10 yrs

fleet up to 5 yrs and positions

% for sale (per total fleet in operation)

up to 10 yrs % for sale

fleet up to 5 yrs

positions 15.0% / 10.5%

2647 jets / 896 jets

2008: Net increase of 1,100 a/c

2009: Net increase of 33 a/c

2010TD: Net decrease of 157 a/c

Used market: inventory

Page 9: Executive aviation embraer day 2010 10_29

2011-2020 Market Forecast

Page 10: Executive aviation embraer day 2010 10_29

Source: Embraer VAE analysis – Aug/2010.

10,000 jets and US$ 210 billion over the next 10 years

2011-20 Market Forecast – World Deliveries

Page 11: Executive aviation embraer day 2010 10_29

43.2% North America &

Caribbean

US$ 90.5 BiCAGR: 6.3%

6.8%Latin America*

US$ 14.2 BiCAGR: 3.0%

33.3% EMEA

US$ 70.0 BiCAGR: 5.1%

16.7%Asia Pacific

US$ 35.0 BiCAGR: 11.7%

2011-2020 revenues forecast: 6.5% CAGR

6.8%China

US$ 14.3 BiCAGR: 12.3%

Source: Embraer VAE analysis – Aug/2010.

3.0%Brazil

US$ 6.3 BiCAGR: 2.1%

* La

tin A

mer

ica

incl

udin

g M

exic

o

** A

sia

Pac

ific

incl

udin

g C

hina

Page 12: Executive aviation embraer day 2010 10_29

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.

Page 13: Executive aviation embraer day 2010 10_29

Entry

Light

Mid-light

Mid-size

Super Mid-Size

Large

Ultra-Long Range

Ultra-large

Embraer Product Portfolio

Page 14: Executive aviation embraer day 2010 10_29

Differentiated Support

Strong Economics

Pre

miu

m

Com

fort

High Reliability

Outsta

ndin

g

Perfo

rmance

Value Proposition

Advanced Technology &Innovations

Page 15: Executive aviation embraer day 2010 10_29

* NBAA IFR (35 min) Reserves + 100 nm alternate; 4 occupants @ 200 lb (91 kg)* Basic configuration

41,000 ft

390 ktas

1,178 nm

Phenom 100

12,500 m

Mach 0.70

722 km/h

2,182 km

6 – 8 (Seats, Occupants)

Maximum Operational Altitude

MMO

Maximum Cruise Speed

Range*

Number of seats

Phenom 100®

Certified on schedule with all

targets achieved or exceeded

Page 16: Executive aviation embraer day 2010 10_29

16

* NBAA IFR (35 min) Reserves + 100 nm alternate; 6 occupants @ 200 lb (91 kg)* Basic configuration

45,000 ft

453 ktas

1,971 nm

Phenom 300

13,700 m

Mach 0.78

839 km/h

3,650 km

8 – 11 (Seats, Occupants)

Maximum Operational Altitude

MMO

Maximum Cruise Speed

Range*

Number of seats

Phenom 300®

Certified on schedule with all

targets achieved or exceeded

Page 17: Executive aviation embraer day 2010 10_29

17

Phenom 300®

Page 18: Executive aviation embraer day 2010 10_29

18

Preliminary data

* Range @ M 0.80, 2 pilots + 4 pax (200lb), NBAA IFR res.

45,000ft

470ktas

2,300nm

Legacy 450

13,700m

Mach 0.83

870 km/h

4,260km

7 – 9 passengers + 2 crew

Maximum Operational Altitude

MMO

Maximum Cruise Speed

Range*

Number of occupants

Legacy 450

Page 19: Executive aviation embraer day 2010 10_29

19

Preliminary data

45,000ft

470ktas

3,000nm

Legacy 500

13,700m

Mach 0.83

870 km/h

5,560km

8 – 12 passengers + 2 crew

Maximum Operational Altitude

MMO

Maximum Cruise Speed

Range*

Number of occupants

* Range @ LRC, 2 pilots + 4 pax (200lb), NBAA IFR res, 200nm alt airport

Legacy 500

Page 20: Executive aviation embraer day 2010 10_29

20

Legacy 500

illustrative purposes only

Page 21: Executive aviation embraer day 2010 10_29

Legacy 600®

* NBAA Reserves (4 pax, 0.74 M, ISA)

41,000 ft

459 ktas

3,400 nm

Legacy 600

12,500 m

Mach 0.80

850 km/h

6,297 km

13 – 14 (Seats, Occupants)+3 crew

Maximum Operational Altitude

MMO

Maximum Cruise Speed

Range*

Number of seats

Page 22: Executive aviation embraer day 2010 10_29

22

* NBAA Reserves (4 pax, 0.74 M, ISA)

41,000 ft

459 ktas

3,900 nm

Legacy 650

12,500 m

Mach 0.80

850 km/h

7,223 km

13 – 14 (Seats, Occupants) + 3 crew

Maximum Operational Altitude

MMO

Maximum Cruise Speed

Range*

Number of seats

Legacy 650®

Certified on schedule with all

targets achieved or exceeded

Page 23: Executive aviation embraer day 2010 10_29

23

Legacy 650®

Page 24: Executive aviation embraer day 2010 10_29

24

Lineage 1000®

* NBAA IFR (35 min) Reserves + 200 nm alternate; 8 passengers @ 200 lb

41,000 ft

470 ktas

4,400 nm

Lineage 1000

12,500 m

Mach 0.82

870 km/h

8,149 km

13 – 19 (Seats, Occupants)+3 crew

Maximum Operational Altitude

MMO

Maximum Cruise Speed

Range*

Number of seats

Certified on schedule with all

targets achieved or exceeded

Page 25: Executive aviation embraer day 2010 10_29

25

Lineage 1000®

Page 26: Executive aviation embraer day 2010 10_29

Customer Support & Services

Page 27: Executive aviation embraer day 2010 10_29

� 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 Solution

Over U$ 100 millioninvestment

Page 28: Executive aviation embraer day 2010 10_29

Embraer Service Center

Contracted Authorized NetworkPresence in 38 locations

Service Centers Network

Page 29: Executive aviation embraer day 2010 10_29

Complete and timely assistance to executive jet customers

Embraer Contact Center

Page 30: Executive aviation embraer day 2010 10_29

Customer Relationship Web Portal

� Technical Publications

� AHeAD (Health Monitoring)

� Operational Software

� Flight Docs (MaintenanceControl

� Customer Forum

� Parts E-commerce

� Warranty

� Embraer Parts Exchange Program

� Embraer Executive Care Management

� Web Based Training Learning Management System

Integrated relationship tools to enhance customers experience

Page 31: Executive aviation embraer day 2010 10_29

2009 Performance and 2010 Guidance

Page 32: Executive aviation embraer day 2010 10_29

Source: GAMA reports – Embraer analysis – Feb/10

2009 Performance - Revenue share (US$)

Others

Hawker-Beech

Embraer

Gulfstream

Dassault

Cessna

Bombardier27% 29% 29% 28% 28% 28%

15%18% 18% 19% 19%

13%

17% 11% 11% 12% 12%18%

26% 23% 22% 23% 24% 21%

2,7%3,4% 3,8% 4,6% 4,1% 6,4%

10%10% 8% 8% 8%

6%8%

6%8% 5%5%2%

2004 2005 2006 2007 2008 2009

% O

EM

Sh

are

– T

ota

l R

eve

nu

es

US$

$13.2bi$10.2bi $17.2 bi$16.6bi $19.3bi $22.2bi

Revenue (US$ - based on B&CA list prices)

Page 33: Executive aviation embraer day 2010 10_29

Source: GAMA reports – Embraer analysis – Feb/10

2009 Performance - Deliveries share (units)

22% 25% 24% 22% 21% 20%

31%33% 35% 37% 40%

33%

11% 7% 7% 7% 6%

9%

13% 12% 13% 13% 14%

11%

2,2% 2,7% 3,1% 3,5% 3,3%14,0%

20% 19% 16% 16% 14% 11%

2%2%3%2%1% 1%

2004 2005 2006 2007 2008 2009

% O

EM

Sh

are

– T

ota

l u

nit

s

Units

1,040885749 1,154582 870

Others

Hawker-Beech

Embraer

Gulfstream

Dassault

Cessna

Bombardier

Page 34: Executive aviation embraer day 2010 10_29

Guidance 2010 – Executive Jets

2010

units 120

2010

units 17

Revenue: US$ 1.1 billion* Includes Shuttle version

Page 35: Executive aviation embraer day 2010 10_29

Relevant Facts – NetJets Sale

Phenom 300 order: 50 firms + 75 options; US$ 1+ billion

Page 36: Executive aviation embraer day 2010 10_29

� Future base for Embraer Executive Jets in the US (2010),

located at the Melbourne International Airport, in Florida.

� Final assembly, a paint booth and delivery hangars for the

Phenom 100 and Phenom 300 executive jets.

� Customer design center for all models.

� Employment: at least 200 workers at an average annual wage of $50,000. More jobs could follow if the company decides to expand the project in the future.

� Head up by Mr. Phil Krull, Managing

Director

� Investment of US$50 million

Melbourne Facility

Page 37: Executive aviation embraer day 2010 10_29

All images are for illustration purpose only and may not represent the real and final product accurately.Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis.The information contained herein is subject to the disclaimer presented in the last page of this document/presentation.This presentation is the property of Embraer-Empresa Brasileira de Aeronáutica S.A.("Embraer") and shall not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent.

Thank You!

THANK YOU !

Page 38: Executive aviation embraer day 2010 10_29

This presentation is the property of Embraer - Empresa Brasileira de Aeronáutica S.A. ("Embraer") and

shall not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent.

Embraer reserves the right to revise this document whenever occasioned by product improvements,

governmental regulations or other good cause.

All images: figures, finishing materials and colors are for illustration purpose only, and may not represent

the real and final product accurately.

Some features are optional items not included in the baseline aircraft and are subject to price increase and

lead-time analysis.

All data presented shall not be used as guarantee. Guaranteed specifications are listed in the technical

description and represent the only binding guarantee.

In the event of any conflict between this presentation and the technical description, the technical

description shall govern.