2006 - Ubs Presentation At Nbaa

UBS at NBAA 2006 Convention

October 18th,2006

José Eduardo CostasVice-President, Contracts, Executive Jets

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.

Market Figures

Business Aviation Market Size

Significant Expansion

15,7

1,12,4

4,2

4,7

2,2

19,5

1,22,7

4,8

6,7

3,9

2005 2016e

Airframe / OEM

Completion +

Refurbishment

MRO

FBO

Charter + Aircraft

Management

Fractional Ownership

Source: AT Kearney and Embraer estimates

(2005 US$ billion)

US$ 27.1 bi

US$ 38.9 bi

Main demand drivers

Stock market performance

Corporate Profits Individual Wealth

Macro-economic factors (GDP)

Source: Global Insight – May & September 2006

WORLD

Asia Pacificnot including Japan

6.4%

Latin America

Africa

Middle East

Eastern Europe

2006e

North America

3.4%

Western Europe

2.6%

4.8%

5.6%

7.2%

5.3%

3.9 %

4.0%

5.1%

5.8%

4.2%

4.5%

2007-16e

3.0%2.1%

3.2 %

Worldwide deliveries of new executive jets

2006e: + 16% 2007-2016e: + 3.7% (cagr)

SEA

PDX

SFO

LAX

SAN

LAS

PHX

SLCDEN

HNL

DFW

IAH

MSP

DTWORD

MDW

STL

MEM CLT

CVG

CLEPIT

BOS

EWRJFKLGA

ATL

IAD

BWI

DCA

FLL

MIA

MCOTPA

WorldTerrorism threat increased hassle factor

Hassle factor: Growing delays in US and Europe

USA

73% of pax at 35 hubs

90% of delays at main hubs

Sources: FAA 2005

Eurocontrol 2006

Europe

13% flight delays increase in 2005

AVIÔES EM FILA

Source:: E

mbraer (adapted from

Jet Solutions)

Yearly Total Cost

Fractional Ownership

Used Fractional

Jet cards memberships

Aircraft Management

Charter On-Demand

Scheduled Charter

“Bizav” Airline

Traditional Ownership

Co

mm

ercial Aviatio

n

Co

st

Ind

ustry an

swer: b

usiness mo

dels evolu

tion

Air T

axi

Bran

ded

Ch

arter

New

bu

siness

mo

dels

23%

22%

10%

12%

11%

12%

8%

2%

2007-2016 Market Forecast (deliveries) - World

Product Categories

11,115 executive jets �� US$ 169 billion in the next 10 years

ULTRA LARGE

ULTRA-LONG RANGE

LARGE

SUPER MID-SIZE

MID-SIZE

MID-LIGHT

LIGHT

VERY LIGHT

US$

* additional air taxi demand of 2,500-3,000 units4%

9%

7%

11%

16%

24%

23%

6%

Units

Industry Findings

Emerging Transp.

Alternatives

Charter Growth

Jet Card Boom

Car trips

Airline First

Reaction Initiative

Airline Premium

Service

2005

New Models of

Transportation

Air Taxi

Branded Charter

2006

Traditional

Commercial Offer

� Hassle factor

� Small cities:� Low frequencies� No direct flights

VLJs: Tapping the Gap ??

Source:6VLJs may tap the gap

$0

$2

$4

$6

$8

$10

0 100 200 300 400 500 600 700

Stage Length (miles)

Ro

un

d T

rip

Pri

ce(U

S$

x 1,

000)

Light Executive Jet

Airlines Light bizjet average price

Airline – Full Fare

Huge Gap: US$ 6.000 (example)

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.

Legacy™ 600 Program Update

The world discovers the Legacy™ 600

85 aircraft, 18 countries, the right choice

85TOTAL

1AFRICA

3LATIN AMERICA

5MIDDLE EAST

8ASIA

31EUROPE

37USA

10 Oct 2006

Competitive Analysis – Floor Plans

Superior Privacy and Comfort

13%

12%12%10%

2002 2003 2004 2005 2006 2007-2015

25-30 a/c

Market share - super midsize category

2005: deliveries growth of 54%

10 a/c

13 a/c

13 a/c

20 a/c

15%13.5%

July 2006

Phenom™ 100 and Phenom™ 300 Program Update

Phenom™ 100

Preliminary data

Interior design

Phenom™ 100 and Phenom™ 300

Prodigy™ - Avionics based on Garmin system Preliminary data

Layout Configuration Comparison – Jets

Source: Conklin & de Decker Aircraft Comparator 2005/2006 – Manufacturers’ web sites and promotional material

Preliminary data

Phenom™ 100 CJ1(Entry Level Jet)

Eclipse 500 Mustang Adam 700

Phenom™ 100


Cross-section Comparison – Jets

Phenom™ 100 vs. Eclipse 500 Phenom™ 100 vs. Mustang

Preliminary data

4ft 2

in (

1.27

m)

4ft 1

1in

(1.5

0 m

)

4ft 8in (1.42 m)

5ft 1in (1.55 m)

4ft 6

in (

1.37

m)

4ft 1

1in

(1.5

0 m

)

5ft 1in (1.55 m)

4ft 7in (1.40 m)

Phenom™ 100


Layout and Cross-section Comparison – Turboprops

Cross-section Comparison

Preliminary data

Phenom™ 100 vs. King Air C90GT

4ft 1

0in

(1.3

7 m

)

4ft 1

1in

(1.5

0 m

)

5ft 1in (1.55 m)

4ft 6 in (1.45 m)

Phenom™ 100

Phenom™ 100 King Air C90GT

Integrated Development

Embraer uses a full range of technologies to enable a complete development

integration for its products. Catia V5 is extensively being used.

It is a successful heritage that comes from Embraer Commercial aircraft

experience and is being applied to the Phenom™ 100 and Phenom™ 300.

Phenom™ 100 – Wind Tunnel Test Campaign

Design specifications confirmed

Phase I - USA

UWAL - University of Washington Aeronautical

Laboratory Phase II - Brazil

CTA - General Command for Aerospace Technology Phase III - Russia

TsAGI – Central Aerohydrodynamic Institute

COMPLETED

2Q - 2006

4Q - 2005

2Q - 2005

Phenom™ 100 – Engine first flight

Successfully completed 4.2 hours of flying

Pratt & Whitney Canada PW 617F

Oct 2006

COMPLETED

Phenom™ 100 – Master Phase Plan

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

2004 2005 2006 2007 2008

Entry Into Service

Business Plan Approval (Official “Go-Ahead”)��

Business Plan Preparation ��

Business Case Approval��

Joint Definition Phase ��

First Metal Cut

First Flight

Sub-Assembly

Final Assembly

Detailed Design and Flight Test Campaign

��

Phenom™ 100

Entry into Service: mid-2008Price: US$ 2.85 million*

* Jan 2005 economic conditions

Phenom™ 300 Program Update

Preliminary data

Interior design

Phenom™ 300

by

Phenom™ 300

Preliminary dataBaggage Compartment

Sources: B&CA Purchase Planning Handbook – May 2005

Baggage Compartment - 66 cu ft

FWD Baggage Compartment - 5 cu ftWardrobe - 5 cu ft

Competitors Main Baggage Compartment

Hawker 400XP: 26 cu ft

Citation Encore: 28 cu ft

Citation CJ3: 50 cu ft

Phenom™ 300

Layout Configuration Comparison

PhenomTM 300 CJ3 Encore(Mid-Light)

CJ2+ Bravo


Preliminary data

Phenom™ 300

Cross-section Comparison


Preliminary data

4ft 9

in (

1.45

m)

4ft 1

1in

(1.5

0 m

)

4ft 10in (1.47 m)

5ft 1in (1.55 m)

Phenom™ 300 vs. CJ2+ / Bravo / CJ3 / Encore (Mid-Light Jet)

Phenom™ 300 – walkthrough cabin

Phenom™ 300 – Wind Tunnel Test Campaign

Ongoing campaign

TsAGI – Central Aerohydrodynamic Institute - Russia

Phenom™ 300 – Master Phase Plan

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

2004 2005 2006 2007 2009

Entry Into Service

Business Plan Approval (Official “Go-Ahead”)��

Business Plan Preparation ��

Joint Definition Phase ��

Business Case Approval��

Detailed Design and Flight Tests

Phenom™ 300

Entry into Service: mid-2009Price: US$ 6.65 million

Phenom Family - more than 300 firm orders in 22 countries

The world also discovers the Phenom Family

30 September 2006

Expected Production Plan – PhenomTM 100 & PhenomTM 300

2009

2008

120 - 150

15 - 20 (units)

(units)

Phenom™ 100

Phenom™ 100 & Phenom™ 300

Embraer LineageTM 1000 Program Update

Embraer LineageTM 1000 - Interior

illustrative purposes only

Lineage 1000 Performance

Preliminary data* NBAA IFR reserves (35 min) with 200 nm alternate; 8 passengers @ 200 lb, ISA. Range circles consider 85% annual winds,, 3% allowance

Range: 4,200 nm*

MMO : Mach 0.82

Priestman Goode is a design consultancy specializing in 3D branding.

They work in many different sectors, ensuring that the final design genuinely adds to the customer experience.

Embraer LineageTM 1000 - Interior

Design Office

Source: Priestman Goode website

2009

Expected Production Plan – LineageTM 1000

2008

3 - 4up to 2 (units)

Lineage™ 1000

Entry into Service: mid-2008

Price US$ 40.95 million*

Embraer Lineage™ 1000

* Jan 2006 economic conditions

Phenom™ 100 and Phenom™ 300 Fleet Customer operation

Docile flying characteristics

Next generation engines

Designed for high utilization

High availability

Premium comfort

Outstanding performance

Low operating cost

Human factors

Designed for high utilizationLow operating cost

Phenom 100TM and Phenom 300TM design drivers

High Utilization – based on 4 main fundamentals


Operation

Maintenance Availability& Reliability

High Utilization Fundamentals

EconomicLife


EconomicLife

Air Taxi(20,000)

Fractional(12,000)

(8,000)

Charter &BrandedCharter

Preliminary data

Favors Residual Value

Phenom 100

Cycles

(2,000)Private Owner

EXTENDED LIFE35,000

Economic Life – typical utilization over 10 years

VLJ (nearest competitor)

15,000

Availability& Reliability

EconomicLife


Extended

Availability & Reliability

Preliminary data

High MTBF

IESI – Integrated Electronic Standby Instruments

10 times better MTBF

Maturity plan

FADEC’s

Power Distribution

Pressurization Controller

All main electronics inside pressurized areas

Avionics

Dynamic Display Interchangeability

The aircraft can be dispatched with PFD2 failure:

PFD1 failure:

Preliminary data

MFD failure:


Preliminary data

Low Turn-Around Time (TAT)


Single Point RefuelingExternally Serviced LavatoryPhenom™ 300:

Maintenance Availability& Reliability


Extended Economic

Life

Outstanding

MSG-3 and low intervention philosophies

Customized maintenance plan

Simple maintenance procedures

Reduced number of tasks with higher intervals

Smooth replacement & adjustment tasks

Maintenance

Preliminary data

Quick fault location and isolation up to LRU level

Highly integrated central maintenance computer(engine, avionics & other systems – AMS, electrical etc)

Phase 1 – On Ground Datalink

Ground

NetworkConnectivity - Data link capability (road map)

Trend and exceedance

Remote Diagnostic

Two-way high-speed

Operation

Maintenance Availability

& Reliability


Extended Economic

Life

OutstandingSimple

Press ButtonFuel ONEngine Parameters MonitorGen ONGen Load CheckAv Master ONStandby horizonBrakes chkFlaps and speed brakeChk elect trim disconnectPitot / static Ignition onCheck thrust rev

Usual tasks

Focus on Human Factors

High automation level

Reduced pilot workload

Reduced crew stress

High situational awareness

Operation – increased operational safety level

Preliminary data

Engine start workload

Functionalities

IESI – Integrated Electronic Standby Instrument

Integrated EICAS – Engine Indication and Crew Alert System

Synoptic graphics

Moving map

Weather datalink & weather radar

Autopilot guidance controller

Start Switch

Brakes chkFlaps and speed brake

Press ButtonFuel ONEngine Parameters MonitorGen ONGen Load CheckAv Master ONStandby horizonBrakes chkFlaps and speed brakeChk elect trim disconnectPitot / static Ignition onCheck thrust rev

Phenom TasksUsual tasks

Operation

SimpleMaintenance


Extended Economic

Life

OutstandingAvailability

& Reliability

Enables intense operation and favors residual value

Easy


Low operating cost

Phenom™ 100 and Phenom™ 300 – design drivers

Low operating cost

Preliminary data* Per B&CA assumptions – Typical Bizjet Operation ** B&CA Operations Planning Guide – August 2005

DOC: US$ 440 / FH *

20% lower than an entry level jet(Citation CJ1)*

12% lower than King Air C90Bfor a 600 nm mission**

Phenom™ 100 Phenom™ 300

DOC: US$ 700 / FH *

20% lower than a light jet (Hawker 400XP)*

16% lower than a mid-light jet(Citation Encore)*

VLJs: Tapping the Gap ??

Source:6VLJs may tap the gap

$0

$2

$4

$6

$8

$10

0 100 200 300 400 500 600 700


Ro

un

d T

rip

Pri

ce(U

S$

x 1,

000)

Light Executive Jet

Airlines Light bizjet average price


Huge Gap: US$ 6.000 (example)

Phenom 100 Applicability – Branded Charter

Charter Light Jet Offer

Phenom 100: 30% - 40% less expensive for customer

Source: 6, 12

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

0 100 200 300 400 500 600 700 800 900


Ro

un

d T

rip

Pri

ce(U

S$

x 1,

000)

Phenom 100 Projected Price

30% - 40%

Light Jet average price

Fractional Ownership – Price Comparison

Phenom 100 can enlarge the fractional customer basis

44%

24%

25% of aircraft share

0

100

200

300

400

500

600

700

800

Phenom 100 CJ1 Hawker 400 XP

Yea

rly

pri

ce (

US

$ x1

,000

)

Acquisition Cost Management Monthly Fee Operating Hourly Fee

24%

44%

Source: 12,18

Air Taxi - per Seat on Demand

Source:6Air Taxi per seat fills the gap

$0

$2

$4

$6

$8

$10

0 100 200 300 400 500 600 700


Ro

un

d T

rip

Pri

ce(U

S$

x 1,

000)

Light Executive Jet

Airlines

Air Taxi Projected Price – Phenom 100

Light bizjet average price


Customer Support & Services

Vision

To become a leading Support & Services provider in the

Business Aviation Market within 3 years through a solid

network, genuine customer relationship and best practices.

Building Up Experience

37 years of customer support

� Reputable Maintenance Services

� Excellent Parts Support & Repairs� Outstanding Field & Tech. Support � Comprehensive Training Program� Embraer Executive Care programs

Integrated Solutions

Embraer owned Service Centers Network in USA

Exisiting Service Center

Embraer Owned Service Centers

Fort Lauderdale International, FL

Williams GatewayMesa, AZ

BradleyHartford, CT

New Service Centers

EAMSNashville, TN

Revamped Service Centers Network in USA13 Authorized Service Centers

Cahokia, IL

Cleveland,OH

Wheeling, IL

Phoenix, AZ

Houston, TX

Augusta, GA

West Palm, FL

LAX, CA

Legacy 600 Authorized Service CentersLegacy 600 Authorized Service Centers

Enlarged and reconfigured network

Bedford, MA

Teterboro, NJ

Hillsboro, OR

Phoenix, AZ

Lincoln, NE

Lincoln, NE

Reputable Service Centers Network in USA

Phenom 100 & 300Phenom 100 & 300

Authorized Service CentersAuthorized Service Centers

Different service levels (line to overhaul)

Hillsboro, OR

8 Authorized Service Centers

Moline, IL

Indianapolis, INGrand Junction, CO

Dallas, TX

Greenville, SC

Service Centers Network in USA

21 Service Centers provide territorial coverage

Phenom 100 & 300Authorized Service Centers

Legacy 600 Authorized Service Centers

Embraer Owned Service Centers

Enhanced Service Center Network in Europe

PT

FR

OGMA, PT

Exisiting Service Center

New Service Center

Le Bourget, FR

TO BE APPOINTED.

Enhanced Service Center Network in Europe

Legacy 600Legacy 600

Phenom 100 & 300Phenom 100 & 300

Operators have a wider choice of services

Munich, GYMunich, GY

Zurich, SWZurich, SW

London, UKLondon, UK

Prague, CRPrague, CR


LuganoLugano, SW, SW

Best choices for all kind of operators

Service Network for Embraer Executive JetsWorldwide Network (middle 2008): 45 Service Centers

7 Embraer Wholly Owned


Logistic Provider – Phenom 100/300

Phenom logistics operated through UPS

Phenom 100/300 Training

JointVenture

Commitment to deliver best training solution

Flight Skills Assessment

Training Center

& Remote

Continuous Practical Experience Training

Pre-Training Package Study

Remote

Ground School(class room)

Training

Center

Ground School(simulation)

Phenom 100/300 Training Philosophy

3 3 ProficencyProficency LevelsLevels

Flight SchoolFlight School

Mentor PilotMentor Pilot

Web Based Web Based TrainingTraining

Internet + CDInternet + CD

Instrument Procedures Instrument Procedures Training Training

Computer Based Computer Based TrainingTraining

Cockpit + SystemsCockpit + Systems

Full Flight Full Flight SimulatorSimulator

77

First Training First Training Center USA Center USA

20082008

Second Training Second Training Center USACenter USA

20122012

First Training First Training

Center Europe Center Europe 20092009

Phenom 100/300 Potential Training Locations

USAUSA EuropeEurope

Full Flight Simulator available at Phenom EIS

Embraer Executive Care

Scheduled + basic unscheduled airframe parts

Parts freight

Parts for Service Bulletins, AD related

Embraer Maintenance Tracking & Planning System

Scheduled heavy checks labor (24 MO)

Labor, all scheduled tasks

Labor, basic unscheduled tasks

Labor on Service Bulletins, AD related

Mobile Rescue Team, AOG

Standard Intermediate EnhancedLegacy 600*Legacy 600*

* Only airframe. No engine included.

More levels of coverage

Embraer Executive Care

Standard Enhanced

Scheduled + basic unscheduled airframe parts

Airframe parts freight

Airframe parts for Service Bulletins, AD related

Embraer Maintenance Tracking & Planning System

Engine Coverage

Airframe Labor, Scheduled and Basic Unscheduled

Airframe Labor, Service Bulletins, AD related

Airframe Mobile Rescue Team, AOG

Engine Life Limited Parts Coverage OPT.OPT.

OPT.OPT.

OPT.OPT.

High Utilizationabove 400 FH/y

Low Utilizationbelow 400 FH/y

Phenom 100 & 300Phenom 100 & 300

Different Levels of coverage

Thank You !

2006 - Ubs Presentation At Nbaa

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