Executive Jets Embraer Day 2012

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WELCOME

Feb. 09th 2012


EMBRAER EXECUTIVE

AVIATION OVERVIEW

ERNEST EDWARDS

President, Embraer Executive Jets

Embraer Day


FORWARD LOOKING STATEMENTThis 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 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.


One of the major players in the global Executive Aviation Market

Business Profitability

Strong

Portfolio

Customer Experience

The path towards achieving the vision

Strategic Pillars


Improving business profitability, continuously

P3E Savings / Earnings*

High Level Statistics

* Results account on 189 Kaizen weeks worldwide. Values and gains are estimated based on Kaizens related to the

Executive Aviation Business or those who brought any benefit to the business. Values are accumulated since 2008.

Topic Result*

Cycle > 66%

Productivity > 59%

Quality > 86.6%

Physical Space >11,500 m²

WIP > $ 108 MM

Stocks > $ 46 MM

Cash (Income) > $ 43 MM


Excellence in Customer Experience

Sales Strategies


North

America

EMEA

Asia

PacificLatin

America

China

China

5 main sales regions with distributed sales force, closer to the Clients

Executive Jet Division headquarters relocating to Melbourne, Florida

10 Authorized Sales Representatives for countries with specific cultural or

market characteristics

Pre-Owned Aircraft Department strengthening


New base for Embraer Executive Jets,

located at Melbourne International

Airport, in Florida

Final assembly, paint booth and delivery

of Phenom 100 executive jets

Customer Design Center for all models

Sales & Marketing headquarters

Employment of at least 200 workers

Investment of US$ 50 million

Global Customer Center

Phenom 100 Assembly

Global Customer Center & Phenom 100 Assembly

MELBOURNE


MELBOURNE

Global Customer Center Opening


5 Dec 2011

Melbourne, FL, USA


Excellence in Customer Experience

Customer Support Integrated Solution

Over US$ 200 millionInvestment

To become a leading Support & Services provider in the Business Aviation Market

through a solid network, genuine customer relationship and best practices

Vision

Service Centers Network – global coverage

Logistics and Parts Support – global coverage

Field and Product Support

Customer Care Program – EEC

Training Programs – total solution


*2011 and 2020 values are estimated.

Customer Support and Services

Leverage revenues from CSS

6%

2011 2020

% of Total Revenues*

• Increase service

portfolio offer in the

owned service centers

• Expand market share

of special programs

• Increase infrastructure

and presence

worldwide

12% to 16%


PROGRAM UPDATES


Entry

Light

Mid-Light

Mid-Size

Super Mid-Size

Large

Ultra-Long Range

Ultra-Large EIS 2009

EIS 2010

EIS 2002

EIS 2009

IN DEVELOPMENT

EIS 2008

Constant evolution

EMBRAER PRODUCT PORTFOLIO


THE WORLD DISCOVERS

EMBRAER EXECUTIVE JETS

Source: Embraer


Phenom 100>230 a/c

Legacy 600/650~190 a/c

Lineage 1000 / 170 Shuttle>10 a/c

Phenom 300 ~70 a/c


Source: Embraer


North America>190 a/c

EMEA>170 a/c

Asia Pacific~40 a/c

Latin America ~110 a/c

Brazil100 a/c

EMBRAER EXECUTIVE JETS

Fleet distribution: present in every continent

Europe>130 a/c

Africa12 a/c

Middle East~30 a/c


Robb Report

Best of the Best

2008, 2010, 2011


MELBOURNE

Phenom 100 Assembly


1st Flight on Dec 8th

1st Delivery on Dec 20th


PHENOM 300 MEDEVAC CONFIGURATION

The new configuration allows to fit one

stretcher and 4 full motion seats in the

cabin

The new version of the Phenom 300

will be equipped with the traditional

Patient Loading Utility System (PLUS),

manufactured by LifePort.

The modification will be implemented

through Embraer’s Service Center.

Available to customers by February 2012


All Preliminary Data


INTERIOR DESIGN

Flat floor stand up cabin

Illustrative purposes only


Legacy 500 and Legacy 450 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:

LEGACY 500/450 TECHNOLOGY

First Mid-Size & Mid-Light jets with full Fly-by-Wire technology


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 1,000 test hours

Interior design, monuments, seats and systems being validated

Assembly quality and cycles improved through state-of-the-art

processes and tools

Roll-out occurred in December 23rd, 2011

Ground testing of first aircraft started January 2012

Detailed Design and Certification Phase on going

LEGACY 450/500 PROGRAM SUMMARY


LEGACY 500 PROGRAM EVOLUTION

First prototype roll out


Dec 23rd , 2011



First prototype roll out



First prototype engine run – January 17, 2012


Wing

Vertical tailHorizontal tail

Fuselage


Second prototype assembly


Aft fuselageForward fuselage

Wing


Third prototype assembly


“The order for 13 Legacy 650s enhances our strategic cooperation with Embraer (…) We hold

full confidence in the prospects for Embraer’s Legacy 650 in the Chinese executive aviation market,

which will surely attain increasing recognition from our customers here in China”

Kong Linshan, Chairman of Minsheng Financial Leasing Co., Ltd

Embraer Press Release, October 2011

CUSTOMERS EMBRACE THE LEGACY 650

13 Legacy 650s firm orders from Minsheng Leasing Co.


“Embraer’s Legacy 650 is a perfect aircraft, because of its combination of a large comfortable

cabin, long range, advanced avionics, operating efficiency and outstanding reliability.”

Jackie Chan

CUSTOMERS EMBRACE THE LEGACY 650

Globally renowned movie star joins Legacy 650 family

Embraer Press Release, October 2011


The LOUNGE

Lineage 1000


2012-2021 MARKET FORECAST


• Corporate profits at record levels

• Pre-owned slowly on track: better pricing and lower

inventories

• Traffic evolving in US and Europe

• Latin America: continued growth but at a slower pace

• China market maturing

• Risk: European markets

2012 is a pivot year to recover market growth

Market recovery on track


2012-2021 MARKET FORECAST

Source: Embraer

8,660 ~ 11,275 jets US$ 205 ~ 260 billion over the next 10 years

New Jets Deliveries Values

2012-2021 Forecast

Sustained Growth

US$ 260 billion

11,275 units

Downturn

8,660 units

US$ 205 billion

E.C

. 2

011

US

$ B

i

Last 10 years

US$ 164 Bi

8,000 units


Source: Embraer Analysis – world total may differ due to rounding

2012-2021 MARKET FORECAST BY REGION

US$ 205 Bi / 8,660 units


North America4,247 a/c (49%)

US$ 90.5 Bi (44%)

EMEA2,356 a/c (27%)

US$ 62.3Bi (30%)

Asia Pacific1,363 a/c (16%)

US$ 39.8 Bi (19%)

Latin America 693 a/c (8%)

US$ 12.5 Bi (6%)

Brazil417 a/c (5%)

US$ 6.1 Bi (3%)

China522 a/c (6%)

US$ 17.4 Bi (8%)


THANK YOU

Executive Jets Embraer Day 2012

Business

Transcript of Executive Jets Embraer Day 2012