Institutional
Presentation

November 2003
Forward Looking Statement



 This presentation includes forward-looking statements or statements about events or
 circums...
Company
Highlights
Highlights


             One of the world’s major commercial
             aircraft manufacturers
             Significant...
Global Presence

               Parent Company                            São José dos Campos


                          ...
Global Presence
        Embraer Eugênio de Melo                             São José dos Campos


                        ...
Global Presence
        Embraer Gavião Peixoto                                                        Gavião Peixoto


   ...
Global Presence
          Operations in Brazil, USA, Europe, Asia and Austrália



           EUA                         ...
Number of Employees

                                                                                    12,607
          ...
Business
   Segment
Diversification
Revenue Diversification

          Current Sales                   Expected Sales Distribution
           Distribution    ...
Defense
Market
Defense Products
                   Today
Embraer’s
Airline Customers
         &
    Orderbook
ERJ 145 Family Orderbook




                 Firm   Options           Deliveries        Firm
                            ...
ERJ 145 Order Book (as of August 2003)
         COUNTRY       CUSTOMER                     FIRM    OPTIONS   TOTAL   DELIV...
EMBRAER 170/190 Family Orderbook




                         Firm   Options          Total


           EMBRAER 170   120...
Backlog

In 3Q03 - US$ 27.7 billion in total orders,
including US$ 10.4 billion in firm orders
US$ billion

  30
         ...
Airline Market
 Trends and
   Outlook



Orlando José Ferreira Neto
Director of Market Intelligence
Regional Airline Market
 Scheduled airline services (aircraft from 19 up to 120 seats):
                                  ...
Market Evolution - USA

                     Share of US Domestic Passenger Enplanements
 100%
                           ...
Market Evolution - Europe

                                   Share of Intra-European RPKs

  100%
                   14% ...
Airline Market - USA


                                                                                                   ...
Airline Market - Europe

                                                                   Intra European+Domestic AEA   ...
Industry in Transition after Sep 11th
  Rightsizing Capacity vs. Demand: Routes Transferred to RJs




            Jet Rep...
Industry in Transition after Sep 11th
  Rightsizing Capacity vs. Demand: Routes Transferred to RJs




              Jet R...
US Domestic Yield Evolution

                   16
                   15
Yield (US¢/RPM)




                   14
       ...
An Industry in Transition

•   Fundamental Correction – Not a Traditional Cycle
     •   Decreasing Average Fare Values
  ...
Sustaining Regional Jet Growth

                      1. Turboprop Substitution
                          • Productivity i...
Regional Jet Networks - USA




                                                                 Jan 1995   –   76 Routes
...
Regional Jet Networks - Europe

   Jan 1995          – 104 Routes


   Jan 2003 – 1072 Routes




Source: Back OAG (ERJ-14...
High Frequency Services



  From    Manchester, UK                           Airlines: BD
  To      Edinburgh, UK
  Date ...
Jet Complement



     From       Düsseldorf, Germany                             Airlines: AZ
     To         Milan, Ital...
Jet Replacement (Rightsizing)



    From    Birmingham, UK                          Airlines: BA
    To      Europe
    D...
Responding to Market Needs



                             37 Seats




                             44 Seats




        ...
Aircraft Commonality
   ERJ’s share 95% parts, systems and training commonality within the
   aircraft family

           ...
Interior – Cross-Section
   3 abreast grants passengers their most desirable seat.
                  CRJ200               ...
Field Performance

           ERJ 135: Steep Approach Capable
             Range from LCY 350 – 600 nm




               ...
Operating Cost
 Major airline industry economic analysts credit to the ERJ 145 the lowest
 operational costs in the 50 sea...
Operating Cost
Major airline industry economic analysts credit to the ERJ 145 the lowest
operational costs in the 50 seats...
Operating Cost
 Major airline industry economic analysts credit to the ERJ 145 the lowest
 operational costs in the 50 sea...
Evolution to Longer Stage Lengths

 Annual Flights
 400.000




 300.000                2002



 200.000
                 ...
Introducing the ERJ 145 XR Version



                               ERJ 145 XR
                             2,000 nm Rang...
RJ Network – USA (Oct/2003)




                                                                 < 2 Hours

              ...
ERJ 145 XR Design Features


   Reinforced fuselage structure
   to allow higher design weights
                          ...
Evolution of Regional
New Nonstop Market Opportunities




    ERJ 145 XR
     2,000 nm
                                  ...
Range Capability from Denver
ERJ 145 Family offers
outstanding
performance from Hot &
High airports
                      ...
Design Weights
ERJ 145 LR is almost 6% better than CRJ200 in Structural Design Efficiency.
ERJ 145XR is 19% better than CR...
Performance - Mission

  Block Times and Block Fuels are about the same for all models.


 400 nm sector                  ...
COC per Trip
        ERJ 145 XR offers further advantages at no additional operating
                        cost with reg...
ERJ 145 XR Compared to CRJ 200 LR - SUMMARY

 List Prices (K US$ - e.c. Dec 2002)
   • ERJ 145 XR : 21,300
   • CRJ 200 LR...
ERJ 145 Family Positioning
                                                                     US Domestic Passenger Dema...
Opportunities
 Beyond the
   Current
Airline Model
25
                                        ERJ                ERJ    ERJ
                                         +       ...
No Artificial Constraints in Europe

             44 – 70
             44 – 70                                          13...
The Need for 70-110 Seat Jets
                                                                       34% of flights
      ...
Market Opportunities - Global
Rightsizing and Frequency Increase
Average Daily Frequency by City-pair
Routes operated by J...
Market Opportunities - Global

                      Replacement of Ageing Aircraft
                      Fleet in Service...
Introducing the   E- Jets

                            70 – 78 Seats



                            78 – 86 Seats




    ...
E-ngineering – 21             st Century    Aircraft
Applying Technology . . .
                                       …to ...
E-rgonomics – Cabin Spaciousness
      Two’s Company – Three’s a Crowd




          Everyone gets a window or aisle seat.
Everything you expect…
                         … in a First Class cabin


                          • Single seat

      ...
Everything you DON’T expect…
                                 … in an Economy cabin

                           • Middle s...
E-conomics – Profitable by Design
                                                                                        ...
E-fficiency – Range from Dallas
                                    EMBRAER 170
                                    EMBRAE...
E-fficiency – Field Performance
         EMBRAER 170: The best field performer
               Range from LCY 600 nm




  ...
Embraer
 Market
Forecast
Market Forecast           2004-2023

              World Deliveries by Segment - Jets


   Segment     2004 - 2013      20...
Market Forecast              2004-2023
30 - 120 Seats: 8,450 Jets




  USA, Canada
  USA, Canada
  & Caribbean
  & Caribb...
Market Forecast (Jets)

                             World (Total Deliveries)
                                 External So...
Embraer Market Forecast            2004-2023

30 - 60 Seats: 2,600 Jets



   USA, Canada
    USA, Canada
    & Caribbean
...
ERJ 145 XR Potential Market in 10 years



      North America                    North America              North America...
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2003* Road Show Sales Finance Nov 03 (ApresentaçãO Encontra Se DisponíVel Apenas Em InglêS)

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2003* Road Show Sales Finance Nov 03 (ApresentaçãO Encontra Se DisponíVel Apenas Em InglêS)

  1. 1. Institutional Presentation November 2003
  2. 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.
  3. 3. Company Highlights
  4. 4. Highlights One of the world’s major commercial aircraft manufacturers Significant market share Global customer base Renamed international partners Excellent financial performance Brazil’s largest exporter in 1999, 2000 and 2001
  5. 5. Global Presence Parent Company São José dos Campos Venezuela Venezuela Colombia Colombia Peru Peru BRAZIL Bolivia Bolivia Pac ific Oc ea n Pac ific Oc ea n Pa rag uay Pa rag uay Atlantic Oc ean Atlantic Oc ean Chile Chile Sã o P a ul o Sã o P a ul o Argentina Argentina Located in São José dos Campos, Brazil Urugua yy Urugua Designs and manufactures aircraft for the commercial, defense and corporate markets and provides after-sales support Floor space: 3.05 million sq.ft Number of employees in São José dos Campos: 10,464
  6. 6. Global Presence Embraer Eugênio de Melo São José dos Campos Venezuela Venezuela Colombia Colombia Peru Peru BRAZIL Bolivia Bolivia Pac ific Oc ea n Pac ific Oc ea n Pa rag uay Pa rag uay Atlantic Oc ean Atlantic Oc ean Chile Chile Sã o P a ul o Sã o P a ul o Argentina Argentina Urugua yy Urugua Located in Eugênio de Melo, a district of São José dos Campos This unit has a total area of 3.6 million sq. ft., of which 527.050 sq.ft. are industrial buildings used in the development and manufacturing of tooling equipment, piping, as well as for performing welding, milling and wire looming operations
  7. 7. Global Presence Embraer Gavião Peixoto Gavião Peixoto Venezuela Venezuela Colombia Colombia Peru Peru BRAZIL Bolivia Bolivia Pac ific Oc ea n Pac ific Oc ea n Pa rag uay Pa rag uay Atlantic Oc ean Atlantic Oc ean Chile Chile Sã o P a ul o Sã o P a ul o Argentina Argentina Located in Gavião Peixoto, Brazil Urugua yy Urugua Manufacturing facility that will host the final assembly activities of the company´s corporate and defense aircraft, as well as a runway for flight tests Site area: 4.12 million sq.ft. Number of employees: 329 Start-up of operations in October 2001
  8. 8. Global Presence Operations in Brazil, USA, Europe, Asia and Austrália EUA GB Weybridge Nashville China Atlanta Palm Beach Gardens França Beijing Le Bourget Harbin Fort Lauderdale Cingapura Brasil Cingapura Gavião Peixoto Botucatu Austrália Melbourne São José dos Campos
  9. 9. Number of Employees 12,607 12,227 11,048 10,334 8,302 6,737 6,087 4,494 4,319 3,849 94 95 96 97 98 99 00 01 02 Sept 03 April / 97: minimum of 3,200 people BRAZIL 11,779* AUSTRALIA 09 CHINA 126 USA 484 EUROPE 199 SINGAPORE 10 * ELEB employees included
  10. 10. Business Segment Diversification
  11. 11. Revenue Diversification Current Sales Expected Sales Distribution Distribution In Five Years FY2002 Commercial 83% Commercial 70% 30% Defense 5% Customer Corporate Services Aviation 6% 6% Corporate Customer Defense Jets Service
  12. 12. Defense Market
  13. 13. Defense Products Today
  14. 14. Embraer’s Airline Customers & Orderbook
  15. 15. ERJ 145 Family Orderbook Firm Options Deliveries Firm Total Backlog ERJ 135 121 6 127 104 17 ERJ 140 94 20 114 74 20 ERJ 145 665 465 1,130 509 156 Total 880 491 1,371 687 193 (September 2003)
  16. 16. ERJ 145 Order Book (as of August 2003) COUNTRY CUSTOMER FIRM OPTIONS TOTAL DELIVERED FIRM ORDERS BACKLOG Austria RHEINTALFLUG 3 0 3 3 0 Brazil RIO-SUL 16 0 16 16 0 China SICHUAN 5 0 5 5 0 England MANX 23 3 26 23 0 BRITISH MIDLAND 11 5 16 9 2 BRYMON 7 14 21 7 0 France REGIONAL 17 0 17 14 3 FLANDRE AIR 7 6 13 5 2 PROTEUS 11 1 12 8 3 Germany CIRRUS 1 0 1 1 0 Greece AXON 3 0 3 3 0 Guadaloupe AIR CARAIBES 2 0 2 2 0 Italy ALITALIA 14 7 21 13 1 Holland KLM EXEL 3 2 5 3 0 Luxembourg LUXAIR 9 2 11 9 0 Poland LOT POLISH 14 0 14 14 0 Portugal PORTUGALIA 8 0 8 8 0 Sweden SKYWAYS 4 10 14 4 0 Switzerland CROSSAIR (SWISS) 25 15 40 25 0 U.S.A. EXPRESS JET (COEX) 245 100 345 187 58 AMERICAN EAGLE 136 42 178 56 80 WEXFORD 38 0 38 38 0 REPUBLIC (Chautauqua) 9 70 79 7 2 TRANSTATES 15 17 32 12 3 MESA 36 45 81 32 4 GATX 1 0 1 1 0 GECAS (PB Air - Thailand) 2 0 2 2 0 US AIRWAYS 0 132 132 0 0 TOTAL 665 471 1136 507 158
  17. 17. EMBRAER 170/190 Family Orderbook Firm Options Total EMBRAER 170 120 128 248 EMBRAER 190 110 150 260 EMBRAER 195 15 30 45 Total 245 308 553 (September 2003)
  18. 18. Backlog In 3Q03 - US$ 27.7 billion in total orders, including US$ 10.4 billion in firm orders US$ billion 30 27.1 27.7 25 Options 24.1 23.4 Firm Orders 22.2 20 19.2 17.7 16.8 17.3 12.7 12.7 15 13.2 11.3 11.3 10 5 4.1 11.4 10.7 10.3 10.4 3.0 9.0 7.9 1.2 6.4 3.0 4.1 0 1.2 1996 1997 1998 1999 2000 2001 2002 1Q03 2Q03 3Q03
  19. 19. Airline Market Trends and Outlook Orlando José Ferreira Neto Director of Market Intelligence
  20. 20. Regional Airline Market Scheduled airline services (aircraft from 19 up to 120 seats): Fleet in Service Capacity share % by region Turboprop 730 Regional Jet 616 Turboprop 1244 Regional Jet 1293 North North Europe Europe Turboprop 12 America America 26% Regional Jet 55 54% China China 1% Latin Latin Africa & Africa & America America Middle East Middle East Asia/ Asia/ & Caribbean & Caribbean Pacific Pacific 9% 4% Turboprop Regional Jet 348 168 6% Turboprop 532 Turboprop 181 Regional Jet 94 Regional Jet 66 Total Fleet Turboprop 3047 6262 Regional Jet 2292 2402 Source: OAG (Jan/2003), Fleet PC (Dec/2002)
  21. 21. Market Evolution - USA Share of US Domestic Passenger Enplanements 100% 5% 9% 13% 16% 3% 7% 80% 16% 19% 60% 91% 40% 84% 71% 65% 20% 0% 1980 1990 2000 2002 Majors Low Cost/New Entrants Regionals Source: AvStat Associates, Inc. analysis of U.S. DOT data.
  22. 22. Market Evolution - Europe Share of Intra-European RPKs 100% 14% 17% 17% 17% 18% 17% 19% 19% 1% 80% 1% 1% 2% 4% 5% 8% 8% 60% 40% 86% 82% 82% 81% 79% 78% 73% 73% 20% 0% 1995 1996 1997 1998 1999 2000 2001 2002 Majors Low Cost Regionals Low Cost: easyJet + Go + Ryanair 2002 Low Cost Data Estimated Source: AEA, ERA, ATI
  23. 23. Airline Market - USA 71% Domestic ATA Regional RAA RPM Growth - Yr/Yr % Change 41% 37% 34% 32% 34% 31% 27% 29% 28% 23% 18% 20% 17% 15% 13% 14% 13% 14% 9% 7% 5% 6% 5% 2% 2% 1%0% 3% 2% 2% -3% -1% -1% -3% -2% -2% -2% -6% -7% -7% -7% -10% -7% -11% -8% -13% -12% -18% -21% -23% -33% Apr Apr Year 2001 Year 2002 Aug Aug Jul Jul Oct Oct Mar Mar Jun/01 Jan/01 May Nov Dec/01 jan/02 May jun/02 Nov Dec Feb Sep Feb Sep Source: Top Regionals, RAA, ATA
  24. 24. Airline Market - Europe Intra European+Domestic AEA Regional ERAA 18% 15% RPK Growth - Yr/Yr % Change 13% 13% 13% 12% 10% 10% 9% 9% 9% 8% 8% 9% 8% 8% 8% 7% 6% 6% 6% 6% 4% 4% 5% 5% 4% 5% 4% 4% 4% 4% 4% 4% 2% 0,3% -1% -3% -2% -5% -5% -6% -7% -9% -9% -9% -9% -10% -12% -12% -13%-13% Oct Oct Jun/01 Nov Jun/02 Nov Apr Apr Aug Aug Jul Jul Jan/01 May Dec/01 Year 2001 Jan/02 May Dec Year 2002 Mar Mar Feb Sep Feb Sep Source: ERAA, AEA
  25. 25. Industry in Transition after Sep 11th Rightsizing Capacity vs. Demand: Routes Transferred to RJs Jet Replacement Turboprop Replacement Source: Back OAG (American, Continental, Delta, United, and US Airways)
  26. 26. Industry in Transition after Sep 11th Rightsizing Capacity vs. Demand: Routes Transferred to RJs Jet Replacement Turboprop Replacement Source: Back OAG Air France, Alitalia and British Airways
  27. 27. US Domestic Yield Evolution 16 15 Yield (US¢/RPM) 14 13 12 11 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1998 1999 2000 2001 2002 2003 Source:
  28. 28. An Industry in Transition • Fundamental Correction – Not a Traditional Cycle • Decreasing Average Fare Values • Decreasing Capacity (USA) • Increasing Low Cost Carrier Critical Mass • Increasing Regional Jet Critical Mass • Pressure on Existing Worldwide Airline Model • Major USA Airlines re-inventing themselves • Regional affiliates strongly being used as defensive tools (point-to-point X hub and spoke) • Low cost carriers being inserted in the current airline model
  29. 29. Sustaining Regional Jet Growth 1. Turboprop Substitution • Productivity improvements • Passenger jet preference 2. Frequency, Frequency . . . 3. Optimization of Old and Inefficient Narrowbody Services • Rightsizing aircraft capacity with demand • Long & thin routes • New market opportunities • Profit potential
  30. 30. Regional Jet Networks - USA Jan 1995 – 76 Routes Jan 2003 – 1874 Routes Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
  31. 31. Regional Jet Networks - Europe Jan 1995 – 104 Routes Jan 2003 – 1072 Routes Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
  32. 32. High Frequency Services From Manchester, UK Airlines: BD To Edinburgh, UK Date Jan/2003 Days Depart Arrive Eqp Stop Duration xSaSu 7:00a MAN 07:55a EDI ER3 0 00:55 xSaSu 8:55a MAN 09:50a EDI ER4 0 00:55 xSaSu 12:15a MAN 01:15p EDI ER4 0 01:00 xSaSu 5:00p MAN 06:00p EDI ER4 0 01:00 xSaSu 7:55p MAN 08:50p EDI ER4 0 00:55
  33. 33. Jet Complement From Düsseldorf, Germany Airlines: AZ To Milan, Italy Aircraft type: 50 seats Regional Jets January 2003 Origin Destination Range Eqp Days of Departure Arrival (km) Operation DUS MXP 644 MD80 daily 07:00a 08:35a January 2002 DUS MXP 644 ERJ 145 daily 11:45a 01:20a DUS MXP 644 ERJ 145 daily 04:10p 05:45p DUS MXP 644 ERJ 145 daily 08:35p 10:10p DUS MXP 644 A319 daily 07:00a 08:30a January 2003 DUS MXP 644 A319 daily 11:45a 01:15p DUS MXP 644 ERJ 145 daily 05:30p 07:05p DUS MXP 644 ERJ 145 daily 07:45p 09:20p
  34. 34. Jet Replacement (Rightsizing) From Birmingham, UK Airlines: BA To Europe Date Jan/2003 Orig Dest Duration Range Eqp Monthly Frequencies Jan 02 Aug02 Jan03 BHX FRA 01:40 766 A319 49 47 0 ER4 56 26 76 BHX GLA 01:00 415 A319 127 114 0 ER4 54 58 57 BHX AMS 01:15 443 B737 4 43 0 RJ 95 61 84 BHX DUS 01:20 597 B737 79 74 0 ER4 26 33 29 BHX EDI 01:00 402 A319 149 152 0 ER4 32 0 34
  35. 35. Responding to Market Needs 37 Seats 44 Seats 50 Seats
  36. 36. Aircraft Commonality ERJ’s share 95% parts, systems and training commonality within the aircraft family • Same engine (AE 3007) hardware • Same systems and components • Same ERJ crew type rating • Common maintenance and training procedures • Common ground support equipment The ERJ 135/140/145 Family Operators have the necessary infrastructure to support ERJ 145XR operations FA 05/May/03
  37. 37. Interior – Cross-Section 3 abreast grants passengers their most desirable seat. CRJ200 ERJ 145 17.3 in 17.3 in (.44 m) (.44 m) 73.0in 72.0 in (1.85 m) 17.0 in 16.1 in (1.82 m) (.43 m) (.41 m) 99.5 in (2.53 m) 83.0 in (2.10 m) ERJ 145 advantages: Exclusive businessman’s dream premium single seats. One additional inch in aisle width allows easier passenger access. 11% more cabin width per seat provides more shoulder clearance.
  38. 38. Field Performance ERJ 135: Steep Approach Capable Range from LCY 350 – 600 nm Typical OEW Typical Mission Reserves A1/3 Engine Pax @ JAR-OPS Rules ISA No wind
  39. 39. Operating Cost Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category. “Overall, the ERJ 145 has the lowest per trip costs (of all compared aircraft in its class) ...” AIRCRAFT ECONOMICS - issue 47 - Jan/Feb 2000 As seen from the Aircraft Economics final comparison chart the ERJ 145 has 8.8% lower DOC per trip than the CRJ200.
  40. 40. Operating Cost Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category. The ERJ 145 offers aircraft- mile costs between 9% and 11% better than the CRJ. AIRCRAFT COMMERCE issue 6 - Jul/Aug 1999 The Aircraft Commerce magazine article confirms the operating costs advantage of the ERJ 145 to be around 10% better than the CRJ200.
  41. 41. Operating Cost Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category. The ERJ 145 offers 7% better aircraft-mile costs than the CRJ200. AIRCRAFT ECONOMICS issue 61 - Jan/Feb 2002 Aircraft Economics magazine article credits again operating costs advantage to the ERJ 145 over the CRJ200.
  42. 42. Evolution to Longer Stage Lengths Annual Flights 400.000 300.000 2002 200.000 2001 2000 100.000 1999 1998 19961997 0 1995 100 300 500 700 900 1100 1300 Sector Distance (Miles)
  43. 43. Introducing the ERJ 145 XR Version ERJ 145 XR 2,000 nm Range First Delivery 24th October 2002 Embraer’s answer to the market request for longer range missions FA 05/May/03
  44. 44. RJ Network – USA (Oct/2003) < 2 Hours 2 to 3 Hours > 3 Hours Regional Jets Growth Routes Jan - Oct 2003 < 2 Hours 9% 2 - 3 Hours 78% > 3 Hours 68% Total 23% Source: Back OAG (ERJ 145/140/135, CRJ-100/200, 328Jet routes)
  45. 45. ERJ 145 XR Design Features Reinforced fuselage structure to allow higher design weights AE3007A1E engine Winglet Supplementary fuel tank inside wing to fuselage fairings • increased range • lower fuel consumption • better field performance • superior single engine ceiling • improved hot & high operation • VMO, MMO and VFE increases
  46. 46. Evolution of Regional New Nonstop Market Opportunities ERJ 145 XR 2,000 nm Houston
  47. 47. Range Capability from Denver ERJ 145 Family offers outstanding performance from Hot & High airports 1340 nm ERJ 145 XR Airp. temp. @ 28ºC (85% summer reliability) Airp. temp. @ 36ºC (99% summer reliability) FAR Reserves Taxi allowance . 14 minutes Air Maneuvers 3 minutes Long Range Cruise Pax Weight & Baggage 90.7 kg (200 lb) 85% Annual Winds BOW with thrust reverser
  48. 48. Design Weights ERJ 145 LR is almost 6% better than CRJ200 in Structural Design Efficiency. ERJ 145XR is 19% better than CRJ200 in SDE, leading therefore to lower operating costs. ERJ 145 XR ERJ 145 LR CRJ200 LR Maximum Take Off Weight 24,100 kg 22,000 kg 24,041 kg Maximum Landing Weight 20,000 kg 19,300 kg 21,319 kg Maximum Zero Fuel Weight 18,500 kg 17,900 kg 19,958 kg Basic Operating Weight 12,838 kg ¹ 12,361 kg ¹ 13,834 kg Maximum Fuel Load 6,032 kg 5,187 kg 6,489 kg Maximum Payload 5,662 kg 5,539 kg 6,124 kg Maximum Useful Load 11,262 kg 9,639 kg 10,207 kg Structural Design Efficiency ² 0.88 0.78 0.74 Standard Single Class Seating 50 50 6% better 50 ¹ Includes reinforced cockpit door and all typical options such as thrust reversers, navigation equipment, etc. † 19% better ² Structural Design Efficiency = Max Useful Load / Basic Operating Weight
  49. 49. Performance - Mission Block Times and Block Fuels are about the same for all models. 400 nm sector ERJ 145 XR ERJ 145 LR CRJ200 LR 50 pax 50 pax 50 pax Engines AE3007 A1E AE3007 A1 CF34-3B1 Block Time 80 min 80 min 80 min ISA enroute, max pax @ 90.7 kg 14 min taxi, FAR reserves, 100 nm alternate Block Fuel 1,309 kg 1,304 kg 1,315 kg ISAenroute, max pax @ 90.7 kg 14 min taxi, FAR reserves, 100 nm alternate Take Off Field Length 1,460 m 1,435 m 1,455 m ISA, SL, max pax @ 90.7 kg FAR reserves, 100 nm alternate Landing Field Length 1,315 m 1,315 m 1,415 m ISA, SL, max pax @ 90.7 kg FAR reserves, 100 nm alternate
  50. 50. COC per Trip ERJ 145 XR offers further advantages at no additional operating cost with regard to LR version. 800 742 699 710 43 700 40 39 600 281 310 271 COC/Trip (US$) 500 400 300 155 155 155 200 234 234 234 100 0 ERJ 145 LR ERJ 145 XR CRJ200 LR Economic Assumptions (USA) Utilization 2,500 FH/year 50 seats 50 seats 50 seats Fuel price 0.75 USD/USGal Fuel density 6.7 lb/USGal CREW FUEL MAINTENANCE FEES Crew Function of Block Time Landing fees Function of MLW Maintenance Period 5 years 500 sm sector Maint, Labor 25.00 USD/MH
  51. 51. ERJ 145 XR Compared to CRJ 200 LR - SUMMARY List Prices (K US$ - e.c. Dec 2002) • ERJ 145 XR : 21,300 • CRJ 200 LR : 23,200 ERJ 145 XR Performance • Higher range @ 50 pax Range* CRJ200 LR 2,000 nm • Better Hot & High performance Range* * @ MTOW, LRC, 50 pax @ 90.7 kg. Design 1,750 nm • Lower Basic Operating Weight • Better SDE (Structural Design Efficiency) • More integrated systems Operational Characteristics • Lower approach speeds • Better short field performance Economics • Better Operating Costs
  52. 52. ERJ 145 Family Positioning US Domestic Passenger Demand 200 Passengers per Day Each Way 150 ERJ145ER ERJ145LR 100 ERJ145 XR 50 ERJ135 ER ERJ135 LR 0 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Stage Length – Miles Source: US DoT O&D data, 2Q, 2002, Embraer
  53. 53. Opportunities Beyond the Current Airline Model
  54. 54. 25 ERJ ERJ ERJ + + ERJ ERJ CRJ CRJ CRJ + + CRJ CRJ 50 75 70 to 100 110 Seats B737 MD80 Seat Capacity A319 A319 125 A319 B737 B737 B737 B737 A320 Widening Seat Capacity Gap - USA MD80 MD80 B737 150 A320 B737 A320 B737 B737 A320 175+ B757 B757 B757 B757 B757 B757
  55. 55. No Artificial Constraints in Europe 44 – 70 44 – 70 131 – 283+ 131 – 283+ 50 – 70 50 – 70 109 – 169+ 109 – 169+ 37 – 80 37 – 80 70 to 103 – 270+ 103 – 270+ 110 Seats 37 – 85 37 – 85 112 – 206+ 112 – 206+ 50 - 80 50 - 80 108 – 189+ 108 – 189+ 50 – 111 110 – 180+ 110 – 180+ 50 – 213+ 50 – 213+ 25 50 75 100 125 150 175+ Seating Capacity
  56. 56. The Need for 70-110 Seat Jets 34% of flights depart with loads appropriate for 100-110 seat 27% of flights depart aircraft with loads appropriate Percentage of Total Departure 17% 17% for 70-80 seat aircraft 14% 13% 9% 8% 7% 4% 4% 3% 2% 2% <50 50 60 70 80 90 100 110 120 130 140 >150 Source: Back (US DOT T100 Jan-Sep 2002) Passengers per Departure
  57. 57. Market Opportunities - Global Rightsizing and Frequency Increase Average Daily Frequency by City-pair Routes operated by Jet Aircraft from 91 – 175 seats up to 2000 nm 5150 city pairs with less than 2 average daily frequency 33% 27% 20% City Pairs 12% 7% 0 - 0,5 0,5 - <2 2-<5 5 - <10 >=10 Source: OAG (Jan/2003) Average Daily Frequency
  58. 58. Market Opportunities - Global Replacement of Ageing Aircraft Fleet in Service (61-120 seat segment - Dec/2002) 500 453 689 aircraft with more than 20 years 400 372 (34 % of total fleet in service) 330 Number of Aircraft 304 300 277 208 200 108 100 0 0-5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 >30 Aircraft Age (Years) Source: Fleet PC (Scheduled Airlines, Active in Service and All Passenger Configuration)
  59. 59. Introducing the E- Jets 70 – 78 Seats 78 – 86 Seats 98 - 106 Seats 108 – 118 Seats
  60. 60. E-ngineering – 21 st Century Aircraft Applying Technology . . . …to create value to Customer • Virtual reality tools • Reduced time to market • On-board CMC • Reduced pilot workload • Fly-by-wire • High strutural design efficiency • Full redundant FADEC • Minimum down time (TAT, checks) • Fully digital “quiet&dark” cockpit • Easy maintenance diagnosis • Top systems/avionics integration • Low maintenance cost • World-class parterships • Reduced fuel consumption • Cross crew qualification (CCQ) • Smart use of composite materials. • Easy aircraft handling • Optimized mission performance • High schedule realiabilty.
  61. 61. E-rgonomics – Cabin Spaciousness Two’s Company – Three’s a Crowd Everyone gets a window or aisle seat.
  62. 62. Everything you expect… … in a First Class cabin • Single seat • Seat comfort • Catering • Stowage • Partition • Exclusive lavatory • Exclusive environment
  63. 63. Everything you DON’T expect… … in an Economy cabin • Middle seat X • Limited baggage space X • Single lavatory X • Narrow aisle X • Cramped seating X • Limited catering capabilities X • “Cattle” feeling X
  64. 64. E-conomics – Profitable by Design USA Environment *Based on Total Operating Cost BREAK-EVEN* PROFIT 500 sm for EMBRAER 170/175 600 sm for EMBRAER 190/195 EMBRAER 170 78 seat 40 PAX (51%) 38 PAX EMBRAER 175 86 seats 44 PAX (51%) 42 PAX EMBRAER 190 106 seats 57 PAX (54%) 49 PAX EMBRAER 195 118 seats 62 PAX (53%) 56 PAX *Based on Total Operating Costs; Average OW net fare 500 sm USD 90; 600 sm USD 98 EC 05/May/03
  65. 65. E-fficiency – Range from Dallas EMBRAER 170 EMBRAER 175 EMBRAER 190 EMBRAER 195 FAR Domestic Reserves Taxi allowance 14 minutes Air Maneuvers 3 minutes Cruise ISA Wind 85% Annual Reliability Pax Weight & Baggage 90.7 kg (200 lb)
  66. 66. E-fficiency – Field Performance EMBRAER 170: The best field performer Range from LCY 600 nm Typical European OEW Typical Mission Reserves E5A1 Engine Pax @ 90.7 kg (200 lb) ISA No wind
  67. 67. Embraer Market Forecast
  68. 68. Market Forecast 2004-2023 World Deliveries by Segment - Jets Segment 2004 - 2013 2014 - 2023 2004 - 2023 30 - 60 1,150 1,450 2,600 61 – 90 1,300 1,600 2,900 91 – 120 1,250 1,700 2,950 TOTAL 3,700 4,750 8,450 World (30-120 seat segment): 8,610 jets (US$180 billion)
  69. 69. Market Forecast 2004-2023 30 - 120 Seats: 8,450 Jets USA, Canada USA, Canada & Caribbean & Caribbean Europe, Europe, China China 4,740 4,740 Middle East Middle East 635 635 56% & Africa & Africa 8% 1,970 1,970 Latin Latin 23% America Asia Asia America Pacific Pacific 625 625 480 480 7% 6%
  70. 70. Market Forecast (Jets) World (Total Deliveries) External Sources 2004-2013 2014-2023 2004-2023 Sources 30-60 61-90 91-120 Total 30-60 61-90 91-120 Total Total Airclaims 1794 1135 914 3843 1071 2428 1886 5385 9228 Bombardier 1677 1555 3232 2183 3152 5335 8567 Rolls-Royce 1394 1113 589 3096 1510 1799 932 4241 7337 Snecma 1786 805 899 3490 1867 904 1075 3846 7336 GE 1194 797 950 2941 1250 898 1134 3282 6223 Boeing 1337 562 1300 3199 1399 659 1554 3612 6811 Average 1530 995 930 3455 1547 1640 1316 4503 7958 Embraer 1150 1300 1250 3700 1450 1600 1700 4750 8450 Embraer forecast is more conservative when compared to other forecast sources
  71. 71. Embraer Market Forecast 2004-2023 30 - 60 Seats: 2,600 Jets USA, Canada USA, Canada & Caribbean & Caribbean Europe, Europe, China China 1,870 (840 + 1030) 1,870 (840 + 1030) Middle East Middle East 200 200 71% & Africa & Africa 8% 355 355 Latin Latin 14% America Asia Asia America Pacific Pacific 95 95 80 80 4% 3%
  72. 72. ERJ 145 XR Potential Market in 10 years North America North America North America 30-60 Segment New Deliveries New Deliveries Current Market Share Total 30-60 Segment ERJ 145 XR Market Potential 5% 25% - 30% of total 840 to 1100 Aircraft ERJ 145 Family Deliveries 45% 380 to 500 100 to 150 Aircraft 50% ERJ 145 Family 210 to 300 Aircraft in 20 years Embraer Bombardier Others

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