Embraer Defense Systems
Transcript of Embraer Defense Systems
10th Embraer Day
EmbraerDefense Systems
March, 2010
Orlando José Ferreira NetoExecutive Vice President
Defense Market
EMBRAER PROPRIETARY INFORMATION 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.
EMBRAER PROPRIETARY INFORMATION 3
Retrospective – Embraer Defense in 2009
• Important contracts with the Brazilian Ministry of Defense
• KC-390 Program with the Brazilian Air Force (FAB)
• A-4 Modernization Program with the Brazilian Navy
• Super Tucano
• 100th production aircraft delivered to FAB
• First deliveries to the Dominican and Chilean Air Forces
• New contracts for two undisclosed customers (9 aircraft)
• Deliveries of all Phenom 100 (four aircraft) contracted by the Pakistan Air Force
• Delivery of the two Brazilian presidential aircraft (E190PR)
• First flight of the AMX prototype #1 in the A-1M program
• Customer Services business expansion
• Sales of US$ 1.6 billion and revenues of US$ 499 million
A very special year for Embraer Defense with excellent results
and significant achievements
A very special year for Embraer Defense with excellent results
and significant achievements
EMBRAER PROPRIETARY INFORMATION 4
Advanced Training and Light Attack Transport of authoritiesISR (Intelligence, Surveillance and
Reconnaissance)
Modernization Programs Military Tactical Transport
Embraer Defense Products and Services
Systems and Services
EMBRAER PROPRIETARY INFORMATION 5
Ref.: 12/Mar/2010
Super Tucano Deliveries to FAB
FABBrazilian Air Force
• A-29 (FAB designation)
• Single and twin-seat versions
• 99 firm orders
• 85 already delivered
EMBRAER PROPRIETARY INFORMATION 6
Super Tucano to Export Market – Delivering on time
Colombian Air Force Chilean Air Force
Dominican Air Force Ecuadorian Air Force
• 25 aircraft
• All delivered
• 12 aircraft
• 4 already delivered
• 8 aircraft
• 2 already delivered
• 24 aircraft
• 4 already delivered Ref.: 12/Mar/2010
EMBRAER PROPRIETARY INFORMATION 7
Training and Operation Support System
• TOSS: Training and Operation Support System
• Flight Simulator
• CBT (Computer Based Training)
• MPS (Mission Planning Station) and MDS (Mission Debriefing Station)
• Fully developed by Embraer
• Customers: Colombia, Chile, Ecuador and Dominican Republic.
EMBRAER PROPRIETARY INFORMATION 8
Super Tucano
• Firm orders: 178 aircraft
• Brazil: 99
• Colombia: 25
• Dominican Republic: 8
• Chile: 12
• Ecuador: 24
• Undisclosed: 10
• Deliveries: 121 aircraft
• To be delivered: 57 aircraft
• Prospects:
• South East Asia
• Africa
• Americas
An affordable and comprehensive solution for training and COIN missions with
excellent market acceptance and with promising perspectives.
An affordable and comprehensive solution for training and COIN missions with
excellent market acceptance and with promising perspectives.
Ref.: 12/Mar/2010
• Training and COIN aircraft Market Forecast 2020
• 700 aircraft / US$ 8 bi
EMBRAER PROPRIETARY INFORMATION 9
EMB 145 AEW&C – India
Platform improvements:
• In-flight refueling system
• New electrical generation system
• New cooling system
Mission Systems:
• Primary and Secondary Radars
• Satcom
• COMINT / ELINT
• Countermeasure Systems
Embraer platforms and DRDO/CABS mission systems
DRDO: Defence Research and Development Organization / CABS: Centre for Airborne Systems
Contract:
• Three EMB 145 platforms
• Contract signed in July 2008
• First delivery in 2011
EMBRAER PROPRIETARY INFORMATION 10
• Firm orders: 18 aircraft
• Deliveries: 15 aircraft in operation
• Brazilian Air Force: 8
• Hellenic Air Force: 4
• Mexican Air Force: 3
• Under development:
• DRDO/CABS: 3
• Prospects:
• Multimission Aircraft – India: 9 Legacy 600
• Opportunities in South Asia, South America and Middle East
• ISR Market Forecast 2020
• 370 aircraft / US$ 30 bi
Embraer ISR Systems
EMB 145 AGSEMB 145 AGS
AirborneAirborne GroundGround SurveillanceSurveillance
EMB 145 MPEMB 145 MP
MaritimeMaritime PatrolPatrol
EMB 145 EMB 145 AEW&CAEW&C
AirborneAirborne EarlyEarly WarningWarning andand ControlControl
MultimissionMultimission AircraftAircraft
Cost-effective solutions to address a growing marketCost-effective solutions to address a growing market
EMBRAER PROPRIETARY INFORMATION 11
Legacy 600
Transport of authorities
The most complete portfolio delivering satisfaction and flexibility to our customersThe most complete portfolio delivering satisfaction and flexibility to our customers
PhenomPhenom 100100
EMBRAER 190 PREMBRAER 190 PR
ERJ 135ERJ 135
• Recent deliveries:
• 2 EMBRAER 190 PR (FAB)
• 1 Legacy 600 (Panama)
• 4 Phenom 100 (Pakistan Air Force)
• 1 ERJ 135 (Royal Thai Army)
• Next delivery:
• 1 ERJ 135 (Royal Thai Navy): 4Q2010
• Prospects:
• Opportunities in South America, South Asia, Europe and Africa.
• Market Forecast 2020
• 400 aircraft / US$ 6.5 bi
EMBRAER PROPRIETARY INFORMATION 12
Modernization programs
Brazilian Air Force – F-5M
• 46 aircraft
• 33 already delivered
• Additional batch of F-5s and A-Darter missile integration under discussions
• 12 aircraft
• First prototype at GPX-CS
Brazilian Navy – A-4
Ref.: 12/Mar/2010
• 43 aircraft
• Three prototypes in ground and flight tests
Brazilian Air Force – A-1M
• A-1 revitalization contract under discussion
Tailor-made to fulfill the Brazilian Armed Forces needsTailor-made to fulfill the Brazilian Armed Forces needs
EMBRAER PROPRIETARY INFORMATION 13
Customer Support – Defense Market
Customer Support Revenue
32
3944
63
0
10
20
30
40
50
60
70
2006 2007 2008 2009
US
$ m
illi
on
• Material Support
• CLS (Contractor Logistic Support)
• Pool
• ESSG (Embraer Support Solutions for Government)…
Growing business opportunities related to new trends in support programsGrowing business opportunities related to new trends in support programs
EMBRAER PROPRIETARY INFORMATION 14
EMBRAER KC-390
• Market Forecast 2025
• 700 aircraft / US$ 50+ bi
• New tactical military transport aircraft
• Payload: 19 ton / Range: 1450 nm (2685 km)
• Contract signed with Brazilian Air Force in April 2009
• Currently in “Preliminary Design Phase”
EMBRAER PROPRIETARY INFORMATION 15
EMBRAER KC-390 Three-view
EMBRAER PROPRIETARY INFORMATION 16
EMBRAER KC-390 Master schedule
Wind Tunnel Testing
PDR CDR
Preliminary DesignPhase - PD
Initial Definition Phase - IDP
Joint Definition Phase - JDP
Detailed Design and Certification PhaseDDP
2009 2010 2011 2012 2013 2014 2015 2016
Loads CalculationLoads Calculation
Structures CalcStructures Calc
DrawingsDrawings
Tooling Tooling
Prototypes
1 2
IOC IOC
FOC FOC
Structural Testing Structural Testing
Partnership and Supplier Procurement
Wind Tunnel Testing
PDR CDR
Preliminary DesignPhase - PD
Initial Definition Phase - IDP
Joint Definition Phase - JDP
Detailed Design and Certification PhaseDDP
2009 2010 2011 2012 2013 2014 2015 2016
Loads CalculationLoads Calculation
Structures CalcStructures Calc
DrawingsDrawings
Tooling Tooling
Prototypes
1 2
IOC IOC
FOC FOC
Structural Testing Structural Testing
Partnership and Supplier Procurement
Program running on schedule, geared-up for full-scale development and also for
selection of the main partners.
Program running on schedule, geared-up for full-scale development and also for
selection of the main partners.
EMBRAER PROPRIETARY INFORMATION 17
Preliminary Design Phase
• Aerodynamic configuration definition
• Structural architecture definition
• Systems technologies definition
• Several wind tunnel test campaigns performed or under execution
• Cockpit mock-up and Engineering simulator in use
• Cargo compartment volumetric mock-up
EMBRAER KC-390 Program Update
Main focus: risk mitigationMain focus: risk mitigation
KC-390 model for the wind tunnel test
Section of the cargo compartment volumetric mock-up
EMBRAER PROPRIETARY INFORMATION 18
F-X2 Program Status
• Brazilian F-X program restarted in May 2008
• Multi-role fighter to replace the current fleet of fighters (F-2000, F-5M, A-1M)
• Initial batch of 36 airplanes
• Strong emphasis in offset and technology transfer mainly for the Brazilian aerospace industry and Government agencies.
• Embraer preliminary agreements with each of the short-listed contenders covering cooperation in technological areas related to the fighter development, manufacture and support, and other Embraer projects.
• In 2009: Proposals delivered in February 2009, and revised in May 2009.
• Final decision by the Brazilian Government expected soon.
• Negotiations of FAB/winning bidder purchase contract and offset agreements with industry negotiations through 2010.
Boeing FBoeing F--18 E/F Super Hornet18 E/F Super Hornet
DassaultDassault RafaleRafale
Saab Saab GripenGripen NGNG
Short-listed contenders:
EMBRAER PROPRIETARY INFORMATION 19
• Embraer’s experience in C4I System (Mexico)
• R&D projects on-going related to C4ISR systems
• Several solutions for Command and Control System
• Data Link specification and development
• Customized solutions (e.g. Link BR2 for Brazil)
• Data links for Embraeraircraft
Embraer C4I System
C4I: Command, Control, Communications, Computer and IntelligenceC4I: Command, Control, Communications, Computer and Intelligence
Interceptors Vehicles and C2
Stations
Interceptors Vehicles and C2
Stations Mobile Radars
Mobile Radars
Meteorological Information
Meteorological Information
FightersFighters
Tactical Radars
Tactical Radars
Aerial Surveillance
Aerial Surveillance
Maritime PatrolMaritime Patrol
IntranetIntranet
Other Command &
Control Centers
Other Command &
Control Centers
Military and Civilian
Telephone Net
Military and Civilian
Telephone NetC4ISR – Command, Control, Communication,
Computer, Information, Intelligence, Surveillance and Reconnaissance
C4ISR – Command, Control, Communication, Computer, Information, Intelligence, Surveillance and Reconnaissance
SATCOMSATCOM
SENEAMCivilian ATC
SENEAMCivilian ATC
HangarsHangars
EMBRAER PROPRIETARY INFORMATION 20
Embraer Defense Results
2010: entirely based on firm contracts2010: entirely based on firm contracts
Embraer Defense Results
227
346
505 499
650
66,6
8
9,1
13
0
100
200
300
400
500
600
700
2006 2007 2008 2009 2010 (projection)
Reven
ues (
US
$ m
illi
on
)
5
6
7
8
9
10
11
12
13
14
Part
icip
ati
on
(%
)
EMBRAER PROPRIETARY INFORMATION 21
Embraer Defense
2008/2009 2009/2010 Beyond
•We are delivering to customers’ satisfaction
• AEW India
• Phenom 100 Pakistan
• ERJ 135s Thai Armed Forces
• Super Tucano FAB and Colombia…
•Revenue stream stable and sustainable
• A-1M (~ US$ 780M – 2002-2015)
• F-5M, additional batch, A-Darter integration
• A-4 Brazilian Navy (~ US$ 144M – 2009-2014)
•Sound positioning in all business segments we are involved…
• … Establishing the future growth basis
• Super Tucano for the Export Market
• New VIP product (EMBRAER 190 PR)
• KC-390 (development 2009-2016) + (future serial production)
• Potential offsets and industrial participation in the F-X2 program
• C4I
EMBRAER PROPRIETARY INFORMATION 22