Investors
Presentation
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
Building a
Global
Competive
Company
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
Towards
Growth &
Diversification
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THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
Airline Market
Status, Trends
and Outlook
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
Corporate
Aircraft Market
Status, Trends
and Outlook
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
Embraer
Market
Forecast
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THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
Commercial
Backlog
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THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
Social
Responsibility
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
3rd
Quarter
Results
US Gaap
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
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Balance Sheet
Highlights
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Investments &
Productivity
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
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THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
Backlog &
Delivery
Forecast
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THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
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2004* ConferêNcia Santander Cancun (DisponíVel Apenas Em InglêS)

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2004* ConferêNcia Santander Cancun (DisponíVel Apenas Em InglêS)

  1. 1. Investors Presentation
  2. 2. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. 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. Forward Looking Statement
  3. 3. Building a Global Competive Company
  4. 4. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. High Technology Qualified People Global Presence Flexibility Cash Intensiveness Fundamentals Aeronautical Industry Fundamentals CUSTOMER SATISFACTION Backbone of our entrepreneurial action
  5. 5. Towards Growth & Diversification
  6. 6. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Business Diversification Expected Sales Breakdown In five years Corporate Jets Customer Service Defense Commercial 70% 30% Customer Serviçes 10% Corporate 12% Defense 13% Comercial 65% Current Sales Breakdown 3Q03
  7. 7. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Product Diversification 70’s 90’s 00’s80’s BANDEIRANTE (EMB 110/111) TUCANO (EMB 312) BRASÍLIA (EMB 120) ERJ 145 AEW&C/ RS/ MP ERJ 135 EMB 326 EMB 321 EMB 121 AMX BRASÍLIA (EMB 120) ERJ 140 AL X (EMB 314) LEGACY ERJ 145 ERJ 135 ERJ 140 EMBRAER 170 EMBRAER 175 EMBRAER 190 EMBRAER 195 AMX-T AEW&C/ RS/ MP AL X (EMB 314) Mirage 2000 BR ? AMX ERJ 145 XR
  8. 8. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Custommer Diversification Civil & Defense Aircraft flying in 58 countries on 5 continents
  9. 9. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Recent Geographic Diversification Q Acquisition of the assets of Celsius Aerotech Q JV in China Q Plans for an assembly line in Jacksonville, FL - USA
  10. 10. Airline Market Status, Trends and Outlook
  11. 11. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Share of US Domestic Passenger Enplanements Source: AvStat Associates, Inc. analysis of U.S. DOT data. 91% 84% 71% 65% 7% 16% 19% 5% 9% 13% 16%3% 0% 20% 40% 60% 80% 100% 1980 1990 2000 2002 Majors Low Cost/New Entrants Regionals Market Evolution - USA
  12. 12. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Share of Intra-European RPKs 86% 82% 82% 81% 79% 78% 73% 73% 8% 14% 17% 17% 17% 18% 17% 19% 19% 8% 1% 1% 1% 2% 4% 5% 0% 20% 40% 60% 80% 100% 1995 1996 1997 1998 1999 2000 2001 2002 Majors Low Cost Regionals Source: AEA, ERA, ATI 2002 Low Cost Data Estimated Low Cost: easyJet + Go + Ryanair Market Evolution - Europe
  13. 13. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. • 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 trying to re-invent themselves • Regional affiliates strongly being used as defensive tools (point-to-point X hub and spoke) • Low cost carriers also being inserted in the current “major” airline model An Industry in Transition
  14. 14. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Full Service > 65 years old Full Service > 65 years old Regional Jets < 10 years old Regional Jets < 10 years old Low Cost Carriers < 35 years old Low Cost Carriers < 35 years old Components of Current Airline Model
  15. 15. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. 3. Optimization of Old and Inefficient Narrowbody Services • Rightsizing aircraft capacity with demand • Long & thin routes • New market opportunities • Profit potential 1. Turboprop Substitution • Productivity improvements • Passenger jet preference 2. Frequency, Frequency . . . Sustaining Regional Jet Growth
  16. 16. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes) Jan 1995 – 76 Routes Jan 2003 – 1874 Routes Regional Jet Networks - USA
  17. 17. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Jan 1995 – 104 Routes Jan 2003 – 1072 Routes Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes) Regional Jet Networks - Europe
  18. 18. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. 37 Seats 44 Seats 50 Seats Responding to Market Needs
  19. 19. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. • Fare Structure • Simplified Fare Structures (regular coach fare, limited discounted coach fare) • Low fares Stimulating Demand • Cost Leadership • Smart Wage Structures / Partnership with Employees / High productivity • High Utilization of Assets • Lean Structure and Operation / Low Overheads / Flexibility and agility • Low Distribution Costs • Route Structure • Point-to-Point Networks / Medium-Haul Flights • High frequencies / High load factors • Simplified (adequate) on board service • New airplanes / Good safety track record The Low Cost Model • New Frontiers • Penetration into new (thinner) markets • Single fleet type no longer a sacred cow
  20. 20. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Jan 1995 – 336 Routes Jan 2003 – 944 Routes Source: BACK OAG (Southwest, Jetblue, Airtran and Frontier) Low Cost Networks - USA
  21. 21. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Source: BACK OAG (Ryanair, easyjet, Buzz and GO) Jan 1995 – 18 Routes Jan 2003 – 374 Routes Low Cost Networks - Europe
  22. 22. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. RASK Capacity Traditional Main Line Full Service Model RegionalRegional Jet ModelJet Model Low Cost Model ...increase capacity to match market growth, or/and expand their air services to secondary city pairs LCC Next Steps...
  23. 23. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. .... Natural Growth, or Capacity Rightsizing,There is a need for adding another component E - Jet Model Regional Jet Model Traditional Main Line Full Service Model RASK Capacity Low Cost Model Beyond the Current Model...
  24. 24. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Full Service > 65 years old Full Service > 65 years old Regional Jets < 10 years old Regional Jets < 10 years old Low Cost Carriers < 35 years old Low Cost Carriers < 35 years old E- Jets (70-110 seats) E- Jets (70-110 seats) • Natural evolution of 50 seat market • Tapping an existing gap • Replacing old & inefficient narrow bodies • Low risk for demand stimulation • New market opportunities (range) • Enhancing services (frequency) • Blurring the line between regional and mainline operations Introducing a 4th Component... The Next Step in Industry Transition
  25. 25. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. EMBRAER 170/190 Family Seat Capacity 120 160 40 80 Stage Length (nm) 200 400 600 800 1000 1200 1400 . . . 30 Seat Tprops 50 Seat ERJ 145 Narrow Body Large Aircraft 37 - 44 Seat ERJ 135/140 Experience Entertainment Easy Enhance Express E verywhere Excellence Exceptional Environment Embraer Engineering Ergonomics Economics Efficiency Introducing the E- Jets
  26. 26. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. 34% of flights depart with loads appropriate for 100-110 seat aircraft27% of flights depart with loads appropriate for 70-80 seat aircraft Passengers per Departure <50<50 5050 100100 140140 17% 3% 2% 4% 9% 14% 17% 13% 8% 7% 4% 2% PercentageofTotalDeparture 6060 7070 8080 9090 110110 120120 130130 >150>150 Source: Back (US DOT T100 Jan-Sep 2002) The Need for 70-110 Seat Jets in the USA
  27. 27. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Replacement of Ageing Aircraft Fleet in Service (61-120 seat segment - Dec/2002) Source: Fleet PC (Scheduled Airlines, Active in Service and All Passenger Configuration) 372 208 108 277 330 453 304 0 100 200 300 400 500 0 - 5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 >30 Aircraft Age (Years) NumberofAircraft 689 aircraft with more than 20 years (34 % of total fleet in service) Market Opportunities - Global
  28. 28. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. 70 – 78 Seats 78 – 86 Seats 98 - 106 Seats 108 – 118 Seats Fleet Management Flexibility and Load Factor Optimization E-conomics – Aircraft Commonality
  29. 29. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. *Based on Total Operating Costs; Average OW net fare 500 sm USD 90; 600 sm USD 98 USA Environment EMBRAER 170 78 seat EMBRAER 175 86 seats EMBRAER 190 106 seats EMBRAER 195 118 seats PROFITBREAK-EVEN* 40 PAX (51%) 38 PAX 44 PAX (51%) 42 PAX 57 PAX (54%) 49 PAX 62 PAX (53%) 56 PAX *Based on Total Operating Cost 500 sm for EMBRAER 170/175 600 sm for EMBRAER 190/195 E-conomics – Profitable by Design
  30. 30. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. … in a First Class cabin • Single seat ü • Exclusive environment ü ü• Partition ü• Stowage ü• Catering ü• Seat comfort ü• Exclusive lavatory Everything you expect…
  31. 31. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. … in an Economy cabin • Middle seat X X• Cramped seating X• Narrow aisle X• Single lavatory X• Limited baggage space X• Limited catering capabilities • “Cattle” feeling X Nothing you don’t like
  32. 32. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. EMBRAER 190 EMBRAER 170 EMBRAER 195 EMBRAER 175 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) E-fficiency – Range from Dallas
  33. 33. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. JAR OPS Reserves Taxi allowance 14 minutes Air Maneuvers 3 minutes Cruise ISA Wind 85% Annual Reliability Pax Weight & Baggage 90.7 Kg (200 lb) EMBRAER 190 EMBRAER 170 EMBRAER 195 EMBRAER 175 E-fficiency – Range from Paris
  34. 34. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. E - Jet Model New Embraer E-Jet family New Embraer E-Jet family RegionalRegional Jet ModelJet Model Traditional Main Line Full Service Model Low Cost Model Filling an Untapped Market
  35. 35. Corporate Aircraft Market Status, Trends and Outlook
  36. 36. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Lear45 $10,3M G L O B E x p $ 4 4 , 4 M F 7 X $ 3 5 , 8 M G 5 0 0 $ 3 7 , 5M G 5 5 0 $ 4 5 , 8 M G 4 0 0 $ 3 2 , 5 M G L O B 5 0 0 0 $ 3 3 , 5 M Chal 6 0 4 $ 2 4 , 9 M F 9 0 0 C $ 3 0 , 4 M F 9 0 0 E X $ 3 4 , 3 M G 2 0 0 $ 2 0 , 2 M C h a l 3 0 0 $ 1 7 , 4 M F 5 0 E X $ 2 0 , 0 M F 2 0 0 0 $ 2 2 , 6 M H o r i z $ 1 8 , 0 M C i t X $ 1 9 , 4 M G 1 0 0 $ 1 1 , 8 M L e a r 6 0 $ 1 2 , 7 M 8 0 0 X P $ 1 3 , 0 M L 4 5 X R $ 1 0 , 8 M E n c o r e $ 7 , 6 M E x c e l $ 1 0 , 2 M L e a r 3 1 $ 6 . 6 M B 4 0 0 A $ 6 , 6 M B r a v o $ 5 , 7 M C J 1 $ 4 , 0 M C J 2 $ 5 , 2 M P r e m i e r $ 5 , 6 M S J- 3 0 $ 5 , 5 M S o v e r e i g n $ 1 3 , 5 M A C J $ 4 7 M B B J 2 $ 6 5 M B B J 1 $ 5 2 M L A R G E U - L O N G - R A N G EL I G H T M I D L I G H TE N T R Y M I D S I Z E S U P E R M I D S I Z E G L O B A L M u s t a n g $ 2 , 3 M P R E E N T R Y E c l i p s e $ 8 5 0 K S a f i r e $ 1 M G 3 0 0 $ 2 5 , 5M G 1 5 0 $ 1 2 , 5M Lear 40 $ 7 , 7 M C J 3 $ 6 , 0 M F 2 0 0 0 E X $ 2 3 , 8 M L e g a c y $ 2 0 , 8 M Chal 8 0 0 $ 2 7 , 1 M Prices as in BC&A May03 A crowded and oversegmented marketplace
  37. 37. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Current Competitive Environment G 4 0 0 $ 3 2 , 5 M G L O B 5 0 0 0 $ 3 3 , 5 M C h a l 6 0 4 $ 2 4 , 9 M F 9 0 0 C $ 3 0 , 4 M F 9 0 0 E X $ 3 4 , 3 M G 2 0 0 $ 2 0 , 2 M C h a l 3 0 0 $ 1 7 , 4 M F 5 0 E X $ 2 0 , 0 M F 2 0 0 0 $ 2 2 , 6 M H o r i z $ 1 8 , 0 M C i t X $ 1 9 , 4 M G 1 0 0 $ 1 1 , 8 M L e a r 6 0 $ 1 2 , 7 M 8 0 0 X P $ 1 3 , 0 M S o v e r e i g n $ 1 3 , 5 M L A R G E M I D S I Z E SUPER MID SIZESUPER MID SIZE G 3 0 0 $ 2 5 , 5M G 1 5 0 $ 1 2 , 5M F 2 0 0 0 E X $ 2 3 , 8 M L e g a c y $ 2 0 , 8 M Chal 8 0 0 $ 2 7 , 1 M Prices as in BC&A May03
  38. 38. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Legacy - A New, Breakthrough Concept QQ Based on a proven airplane platform (ERJ 135),Based on a proven airplane platform (ERJ 135), with almost 700 aircraft in operationwith almost 700 aircraft in operation QQ Represents value for customersRepresents value for customers üüComfortComfort üüPerformancePerformance üüCost EfficiencyCost Efficiency üüReliabilityReliability QQ Best cost benefit alternativeBest cost benefit alternative
  39. 39. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Legacy Executive - interior
  40. 40. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Supermidsize category 10 20 30 40 50ft m 3 6 9 12 15 Challenger 300 23‘8” (7,22m) 25‘ (7,62m) Horizon G200 24‘6” (7,46m) 42’6” (12,94m)
  41. 41. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Large category 10 20 30 40 50ft m 3 6 9 12 15 Falcon 2000 26‘4” (8,01m) G400 41’ (12,49m) 42’6” (12,94m)
  42. 42. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Legacy Shuttle - Interior
  43. 43. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Fractional Ownership Program with Flight Options S/N 462S/N 412 S/N 495 S/N 528 • Introduction in the US market - Thanksgiving 2003 • Showcase for the Legacy in this booming market segment
  44. 44. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Area of operation: US Owner: Raytheon 2002 Total shares sold market-share: 24% Fleet* and Backlog S e g m e n t Manufacturer Equipment # ACFT Avg Age Backlog Entry Cessna CitationJet 11 Entry Raytheon Premier I 71 Light Cessna Citation II 6 Light Raytheon Beechjet 400 75 12 Midlight Cessna Citation III 11 Midlight Cessna Citation V 6 Midlight Raytheon Hawker 450 50 Midsize Raytheon Hawker 700 1 Midsize Raytheon Hawker 800 39 Supermidsize Dassault Falcon 50 7 Supermidsize Raytheon Horizon 27 Large Bombardier Challenger 601 11 Large Gulfstream IV 2 Total 169 9 160 * Plus undisclosed amount of Citation X in the fleet Sources: A M S T A T , Airclaims (through MLynch)
  45. 45. Embraer Market Forecast
  46. 46. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. World (30-120 seat segment): 8,610 jets (US$180 billion) 4,750 1,700 1,600 1,450 2014 - 2023 8,450 2,950 2,900 2,600 2004 - 2023 3,700TOTAL 1,25091 – 120 1,30061 – 90 1,15030 - 60 2004 - 2013Segment World Deliveries by Segment - Jets Airline Market Forecast 2004-2023
  47. 47. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Asia Pacific 480 6% Asia Pacific 480 6% China 635 8% China 635 8% USA, Canada & Caribbean 4,740 56% USA, Canada & Caribbean 4,740 56% 30 - 120 Seats: 8,450 Jets Europe, Middle East & Africa 1,970 23% Europe, Middle East & Africa 1,970 23%Latin America 625 7% Latin America 625 7% Airline Market Forecast 2004-2023
  48. 48. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Corporate Aircraft Demand 10-year Forecast 400 500 600 700 800 900 1000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 #ofAircraft EMBRAER Jul03 TEAL May03 Forecast Int'l Jun03 Honeyw ell Jun03 Rolls-Royce Jun03 Average TRB Jun03 8,078 6,900 6,535 6,181 6,833 6,525 s o u r c e : T R B J u n 0 3 v i a R R Supermidsize = 1,250 units
  49. 49. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Revenue Forecast per Prod. Category 0 2 . 0 0 0 4 . 0 0 0 6 . 0 0 0 8 . 0 0 0 1 0 . 0 0 0 1 2 . 0 0 0 1 4 . 0 0 0 1 6 . 0 0 0 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 US$million E N T R Y LIGHT M-LIGHT M-SIZE SUPER-MIDSIZE L A R G E U L T R A - L O N G R A N G E G L O B A L A c c u m u l a t e d R e v e n u e C o m p o s i t i o n ( 2 0 0 3 - 2 0 1 2 ) ENTRY 4% LIGHT 6% M-LIGHT 5% LARGE 22% GLOBAL 5% SUPER- MIDSIZE 23% ULTRA- LONG RANGE 20% M-SIZE 15% Corporate Market New Segments
  50. 50. Commercial Backlog
  51. 51. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. 193 156 20 17 Firm Backlog 6871,371491880Total 5091,130465665ERJ 145 741142094ERJ 140 1041276121ERJ 135 DeliveriesTotalOptionsFirm(as of September 30t h , 2003) ERJ 145 Family Orderbook
  52. 52. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. 260150110EMBRAER 190 553308245Total 453015EMBRAER 195 248128120EMBRAER 170 TotalOptionsFirm(as of September 30t h , 2003) EMBRAER 170/190 Family Orderbook
  53. 53. Social Responsibility
  54. 54. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Number of Employees April / 97: minimum of 3,200 people 12,227 6,087 4,319 4,494 6,737 11,048 8,302 3,849 94 95 96 97 99 00 01 02 10,334 98 12,803 BRAZIL 11,976* USA 482 CHINA 1 32 SINGAPORE 10EUROPE 194 AUSTRALIA 09 Oct 03 Employees * ELEB employees included
  55. 55. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. 3 0 % 4 % 1 % 6 5 % Qualified People Educational Levels 25% of the employees are engineers Current as of 2002 College Undergraduate s High School Graduates Graduates Masters or PhD
  56. 56. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Foccus on Trainnnig More than US$ 81.5 million invested in training and development in the last 4 years 21 18 24.5 18 1999 2000 2001 2002 In–house courses: • 18 - month graduate course in Aeronautical Engineering • 2 - year MBA course focused on international trade US$ million
  57. 57. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Comunity Social & Comunity foccus on Education Eng. Juarez Wanderley High School developed for 600 students Implementing several programs including the Action Plan concept in public schools benefiting more than 34,000 students
  58. 58. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Health & Environment Environment ISO 14001 Certificate (Mar/2002) Health & Security Certification OHSAS 18001 (Mar/2002)
  59. 59. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Dow Jones Sustainabilly Index Recognignition of its corporate policy sustainabilly through: Creation of Shareholder Value - Medium & Long Term Social & Environment responsability Corporate Governance Nominated for the third consecutive year For the DOW JONES SUSTAINABILITY WORLD INDEX
  60. 60. 3rd Quarter Results US Gaap
  61. 61. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Jet Deliveries Units 23 28 20 41 303030 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03
  62. 62. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. US$ Million Net Sales & Gross Margin 798 489 567 439557 581 590 38,1% 36.5% 39.9% 39.2% 39.3% 39.1% 39.7% 0 250 500 750 1000 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 30% 40%
  63. 63. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Sales per Segment Third Quarter 2003 Sales per Market Third Quarter 2003 Revenue Breakdown Customer Serviçes 10% Corporate 12% Defense 13% Comercial 65% Foreing Market 94% Brazil 6%
  64. 64. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. US$ Million SG&A and Others Expenses Note: SG&A includes Profit Sharing and does not include R&D 85 76 76 76 86 79 124 18.1% 15.1%15.5%15.5% 13.0%13.0% 15.2% - 30 60 90 120 150 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 0% 3% 6% 9% 12% 15% 18% 21% SG&A and Others SG&A , Others (% of Net Sales)
  65. 65. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. US$ Million Research & Development 41 30 42 46 36 51 39 8.9%9.1% 7.3%7.2% 5.1% 7.4% 5.8% - 20 40 60 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 0% 2% 4% 6% 8% 10% R&D R&D (% of Net Sales)
  66. 66. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. US$ Million Income from Operations 142 83 4970 119 11197 11.3% 12.3% 17.0% 17.9% 19.1% 20.3% 17.3% 0 200 400 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 10% 15% 20% 25%
  67. 67. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Net Income & Margin 44 5 19 774137 68 4.4% 12.2% 6.2% 7.0% 9.7% 9.0% 0.9% 0 50 100 150 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 0% 15% US$ Million
  68. 68. Balance Sheet Highlights
  69. 69. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Trade Accounts Receivable US$ Million 707 247 326 736 913 790 981 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 Note: In the short -term
  70. 70. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Inventories Note: In the short -term 995 992 946 865 1111 10131005 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 US$ Million
  71. 71. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Net Cash (Debt) US$ Million 39 360 217 104 (212) 43 (178) 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03
  72. 72. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Bank Debt - US$ 1,059.7 million September 30, 2003 Loans Breakdown Debt MaturityCurrency Breakdown • Considering Currency Swaps • Average R$ debt cost: 18.9% p.a. (83.2% of CDI) • Average US$ debt cost: 4.9% p.a. • Loan Average Maturity: 2 years and 2 months Long Term 49% Short Term 51% US$ 34% R$ 66%
  73. 73. Investments & Productivity
  74. 74. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. US$ million PP&E and R&D 125.8 44.1 127.7 143.8 114.2 60.1 158.6 99.6 69.6 18.8 0 2 0 4 0 6 0 8 0 1 0 0 1 2 0 1 4 0 1 6 0 1 8 0 1999 2000 2001 2002 Sep. 03 PP&E R&D
  75. 75. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Flexibility incorporated into the production line allowed an increase in efficiency and decrease in production lead time Lead Time in Months 8,0 6,0 6,0 5,5 4,9 5,0 3,7 3,5 1996 1997 1998 1999 2000 2001 2002 Sep. 03 Reduced Production Cycle
  76. 76. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. 91 185 242 247 307 254 227 0 50 100 150 200 250 300 350 1996 1997 1998 1999 2000 2001 2002 Revenues per Employee (US$ thousand) Brazilian GAAP
  77. 77. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Investments Forecast R&D Total - Commercial Aviation - Corporate Aviation - Others Defence 200403 Original 167 126 14 27 53 174 139 16 19 42 Productivity and PP&E 58 64 T O T A L 278 280 US$ million Defence Investments are funded by their contracts and are not included in the R&D expenses, but in Cost of Sales and Services. 2005 119 72 27 20 54 81 254 03 Actual 140 100 20. 20 48 33 221 (*) Does not include new program & Acquisitions
  78. 78. Backlog & Delivery Forecast
  79. 79. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. In 3Q03 - US$ 27.6billion in total orders, including US$ 10.4 billion in firm orders Backlog US$ billion 10.410.3 7.99.0 10.711.4 6.4 4.13.0 1.2 17.216.8 11.3 13.2 12.7 12.7 11.3 0 5 1 0 1 5 2 0 2 5 3 0 1996 1997 1998 1999 2000 2001 2002 1 Q 0 3 2 Q 0 3 3 Q 0 3 Options Firm Orders 1.2 3.0 4.1 17.7 24.1 23.4 22.2 19.2 27.1 27.6
  80. 80. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Jet Deliveries Jet Deliveries 4 32 59 96 160 161 131 102 160 170 1996 1997 1998 1999 2000 2001 2002 2003 E 2004 E 2005 E
  81. 81. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT. Deliveries Forecast 53% 48% 37% 12% 15% 35% 2004 2005 ERJ 145 Family EMBRAER 170 Family Corporate 53% 48% 37% 12% 15% 35% 2004 2005 ERJ 145 Family EMBRAER 170 Family Corporate 160 expected deliveries for 2004 and 170 for 2005

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