Loading…

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

Like this presentation? Why not share!

2004* ConferêNcia Santander Cancun (DisponíVel Apenas Em InglêS)

on

  • 598 views

 

Statistics

Views

Total Views
598
Slideshare-icon Views on SlideShare
598
Embed Views
0

Actions

Likes
0
Downloads
2
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    2004* ConferêNcia Santander   Cancun (DisponíVel Apenas Em InglêS) 2004* ConferêNcia Santander Cancun (DisponíVel Apenas Em InglêS) Presentation Transcript

    • Investors Presentation
    • 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. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Building a Global Competive Company
    • Fundamentals Aeronautical Industry Fundamentals High Technology Qualified People Global Presence CUSTOMER SATISFACTION Cash Intensiveness Backbone of our entrepreneurial action Flexibility THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Towards Growth & Diversification
    • Business Diversification Expected Sales Breakdown In five years Commercial 70% Corporate Jets 30% Customer Service Defense Current Sales Breakdown 3Q03 Defense 13% Corporate 12% Customer Comercial Serviçes 65% 10% 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 80’s 90’s 00’s BRASÍLIA LEGACY BRASÍLIA (EMB 120) ERJ 145 BANDEIRANTE (EMB 120) ERJ 145 XR (EMB 110/111) ERJ 145 ERJ 140 ERJ 135 ERJ 135 EMB 321 EMBRAER 170 EMBRAER 175 EMB 326 ERJ 140 EMBRAER 190 EMBRAER 195 AMX AMX AEW&C/ RS/ MP EMB 121 AEW&C/ RS/ MP AMX-T TUCANO AL X Mirage 2000 BR ? AL X (EMB 312) (EMB 314) (EMB 314) 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 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 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Airline Market Status, Trends and Outlook
    • 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. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • 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 Source: AEA, ERA, ATI 2002 Low Cost Data Estimated THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • 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 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 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Components of Current Airline Model Full Service > 65 years old > 65 years old Regional Jets Low Cost Carriers < 10 years old < 10 years old < 35 years old < 35 years old THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • 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 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Regional Jet Networks - USA Jan 1995 – 76 Routes Jan 2003 – 1874 Routes Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Regional Jet Networks - Europe Jan 1995 – 104 Routes Jan 2003 – 1072 Routes Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Responding to Market Needs 37 Seats 44 Seats 50 Seats THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • The Low Cost Model • 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 • 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 • New Frontiers • Penetration into new (thinner) markets • Single fleet type no longer a sacred cow THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Low Cost Networks - USA Jan 1995 – 336 Routes Jan 2003 – 944 Routes Source: BACK OAG (Southwest, Jetblue, Airtran and Frontier) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Low Cost Networks - Europe Jan 1995 – 18 Routes Jan 2003 – 374 Routes Source: BACK OAG (Ryanair, easyjet, Buzz and GO) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • LCC Next Steps... ...increase capacity to match market growth, or/and expand their air services to secondary city pairs Regional Jet Model RASK Traditional Main Line Full Service Model Low Cost Model Capacity THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Beyond the Current Model... .... Natural Growth, or Capacity Rightsizing, There is a need for adding another component Regional Jet Model RASK Traditional Main Line Full Service Model E - Jet Model Low Cost Model Capacity THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • The Next Step in Industry Transition Introducing a 4th Component... • Natural evolution of 50 seat market • Tapping an existing gap Full Service E- Jets • Replacing old & inefficient narrow bodies (70-110 seats) (70-110 seats) > 65 years old > 65 years old • Low risk for demand stimulation • New market opportunities (range) Regional Jets Low Cost • Enhancing services Carriers (frequency) < 10 years old < 10 years old < 35 years old < 35 years old • Blurring the line between regional and mainline operations THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Introducing the E- Jets Seat Capacity 160 Narrow Body Large 120 Aircraft E xperience E ntertainment 80 EMBRAER 170/190 Family E asy E nhance 50 Seat 40 37 - 44 Seat ERJ 145 E xpress ERJ 135/140 30 Seat E verywhere Tprops E xcellence 200 400 600 800 1000 1200 1400 . . . E xceptional Stage Length (nm) E nvironment E mbraer Engineering Ergonomics Economics Efficiency THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • The Need for 70-110 Seat Jets in the USA 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 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • 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) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • E-conomics – Aircraft Commonality Fleet Management Flexibility and Load Factor Optimization 70 – 78 Seats 78 – 86 Seats 98 - 106 Seats 108 – 118 Seats THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • 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 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Everything you expect… … in a First Class cabin • Single seat ü • Seat comfort ü • Catering ü • Stowage ü • Partition ü • Exclusive lavatory ü • Exclusive environment ü THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Nothing you don’t like … 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 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • 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) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • E-fficiency – Range from Paris EMBRAER 170 EMBRAER 175 EMBRAER 190 EMBRAER 195 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) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Filling an Untapped Market Regional Jet Model Traditional Main Line Full Service Model E - Jet Model Low Cost Model New Embraer New Embraer E-Jet family E-Jet family THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Corporate Aircraft Market Status, Trends and Outlook
    • A crowded and oversegmented marketplace Legacy $20,8M Chal 604 $24,9M F2000EX $23,8M Chal 800 $27,1M G 200 $20,2M G 3 0 0 $ 2 5 , 5M Lear 40 $ 7,7M G 1 5 0 $ 1 2 , 5M Chal300 $17,4M G 400 $32,5M Safire$1M S J- 3 0 $ 5 , 5 M CJ3 $6,0M Lear45 $10,3M G 100 $11,8M F 50EX $20,0M G LOB Exp$44,4M G LOB 5000$33,5M Premier $5,6M Lear 31 $6.6M L 45XR $10,8M Lear 60 $12,7M F 7X $35,8M BBJ1 $52M F 2000 $22,6M Eclipse$850K CJ1 $4,0M B 400A $6,6M Encore $7,6M 800XP $13,0M Horiz $18,0M F 900C $30,4M G 5 0 0 $ 3 7 , 5M BBJ2 $65M M ustang $2,3M CJ2 $5,2M Bravo $5,7M Excel $10,2M S overeign $13,5M F900EX $34,3M G 550 $45,8M ACJ $47M Cit X $19,4M PRE ENTRY ENTRY LIGHT MID LIGHT MID SIZE SUPER MID SIZE LARGE U-L O N G-R A N G E GLOBAL Prices as in BC&A May03 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Current Competitive Environment SUPER MID SIZE Chal 604 $24,9M LARGE Chal 8 0 0 $ 2 7 , 1 M Legacy $20,8M MID SIZE F 50EX $20,0M G 3 0 0 $ 2 5 , 5M G 1 5 0 $ 1 2 , 5M F2000EX $23,8M G 100 $11,8M F 2000 $22,6M G 400 $32,5M Lear 60 $12,7M GLOB 5000$33,5M Horiz $18,0M G 200 $20,2M F 900C $30,4M 800XP $13,0M F900EX $34,3M Chal300 $17,4M Cit X $19,4M S overeign $13,5M Prices as in BC&A May03 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 Q Based on a proven airplane platform (ERJ 135), with almost 700 aircraft in operation Q Represents value for customers üComfort üPerformance üCost Efficiency üReliability Q Best cost benefit alternative THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Legacy Executive - interior THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Supermidsize category 23‘8” Challenger 300 (7,22m) Horizon 25‘ (7,62m) 24‘6” G200 (7,46m) 42’6” (12,94m) ft 10 20 30 40 50 m 3 6 9 12 15 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Large category 26‘4” Falcon 2000 (8,01m) 41’ G400 (12,49m) 42’6” (12,94m) ft 10 20 30 40 50 m 3 6 9 12 15 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Legacy Shuttle - Interior 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 • Introduction in the US market - Thanksgiving 2003 • Showcase for the Legacy in this booming market segment S/N 412 S/N 462 S/N 495 S/N 528 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Area of operation: U S Owner: Raytheon 2002 Total shares sold market- share: 24% Fleet* a n d B a c k l o g Segment 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 * P l u s u n d i s c l o s e d a m o u n t of C i t a t i o n X i n t h e f l e e t S o u r c e s : A M S T A T , A i r c l a i m s (t h r o u g h M L y n c h) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Embraer Market Forecast
    • Airline Market Forecast 2004-2023 W o r l d D e l i v e r i e s b y S e g m e n t - Jets Segment 2004 - 2 0 1 3 2014 - 2 0 2 3 2004 - 2 0 2 3 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 W o r l d ( 3 0- 1 2 0 s e a t s e g m e n t ) : 8 ,6 1 0 j e t s ( U S $ 1 8 0 billion) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Airline Market Forecast 2004-2023 30 - 1 2 0 S e a t s : 8 , 4 5 0 J e t s U S A ,, C a n a d a USA Canada & C a r iib b e a n & Car bbean E u r o p e ,, Europe C h iin a Ch na 4,740 4,740 M iid d lle E a s tt M dd e Eas 635 635 56% & Africa & Africa 8% 1,970 1,970 Latin Latin 23% A s iia As a A m e r iic a Amer ca Pacific Pacific 625 625 480 480 7% 6% 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 EMBRAER Jul03 TEAL May03 Forecast Int'l Jun03 Honeyw ell Jun03 Rolls-Royce Jun03 Average TRB Jun03 1000 8,078 900 Supermidsize = 1,250 units 6,833 6,900 800 6,525 # of Aircraft 6,535 700 6,181 600 500 400 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USEDu r c e : TEMBRAER’S 0 3 v i a CONSENT. s o WITHOUT R B J u n WRITTEN R R
    • Corporate Market New Segments Revenue Forecast per Prod. Category ENTRY LIGHT M-LIGHT M-SIZE SUPER-MIDSIZE LARGE Accumulated Revenue Composition (2003-2012) ULTRA-LONG RANGE GLOBAL 16.000 GLOBAL E N T R Y LIGHT 5% 4% ULTRA- 6% LONG M-LIGHT RANGE 5% 20% 14.000 M-SIZE 15% 12.000 LARGE SUPER- 22% MIDSIZE 10.000 23% US$ million 8.000 6.000 4.000 2.000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Commercial Backlog
    • ERJ 145 Family Orderbook (as of September 30 t h , 2003) Firm Firm Options Total Deliveri e s 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 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 Orderbook (as of September 30 t h , 2003) Firm Options Total EMBRAER 170 120 128 248 EMBRAER 190 110 150 260 EMBRAER 195 15 30 45 Total 245 308 553 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Social Responsibility
    • Employees Number of Employees 12,803 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 Oct 03 April / 97: minimum of 3,200 people BRAZIL 11,976* AUSTRALIA 09 CHINA 1 32 USA 482 EUROPE 19 4 SINGAPORE 10 * ELEB employees included THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Qualified People Educational Levels College Undergraduate s 0% 3 4% 65% Graduates 1% High School Masters or PhD Graduates 25% of the employees are engineers Current as of 2002 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 US$ million 21 24.5 18 18 1999 2000 2001 2002 In–house courses: • 18 - month graduate course in Aeronautical Engineering • 2 - year MBA course focused on international trade 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 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) 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 Nominated for the third consecutive year For the DOW JONES SUSTAINABILITY WORLD INDEX Recognignition of its corporate policy sustainabilly through: Creation of Shareholder Value - Medium & Long Term Social & Environment responsability Corporate Governance THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • 3 r d Quarter Results US Gaap
    • Jet Deliveries Units 41 30 30 30 28 23 20 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Net Sales & Gross Margin US$ Million 1000 40% 39.9% 39.7% 39.2% 39.3% 39.1% 750 36.5% 798 38,1% 500 581 567 590 489 557 439 250 0 30% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Revenue Breakdown Sales per S e g m e n t Sales per Market Third Quarter 2003 Third Quarter 2003 Defense Brazil 13% 6% Corporate 12% Customer Comercial Foreing Serviçes 65% Market 10% 94% THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • S G & A and Others Expenses US$ Million 150 18.1% 21% 15.2% 15.5% 15.5% 15.1% 18% 120 13.0% 13.0% 15% 124 90 12% 85 86 60 76 76 76 79 9% 6% 30 3% - 0% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 SG&A and Others SG&A , Others (% of Net Sales) Note: SG&A includes Profit Sharing and does not include R & D THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Research & Development US$ Million 60 9.1% 8.9% 10% 7.4% 7.2% 7.3% 51 8% 40 46 41 5.1% 42 6% 39 5.8% 36 30 4% 20 2% - 0% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 R&D R&D (% of Net Sales) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Income from Operations US$ Million 400 25% 20.3% 19.1% 17.3% 17.9% 20% 17.0% 200 12.3% 15% 142 11.3% 97 119 111 83 70 49 0 10% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Net Income & Margin US$ Million 150 15% 12.2% 9.7% 9.0% 100 68 7.0% 6.2% 77 44 4.4% 50 37 41 19 5 0.9% 0 0% 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Balance Sheet Highlights
    • Trade Accounts Receivable US$ Million 981 913 790 736 707 326 247 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 N o t e : I n t h e s hor t -t e r m THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Inventories US$ Million 1111 995 992 1005 1013 946 865 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 N o t e : I n t h e s hor t -t e r m 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 360 217 104 39 43 (178) (212) 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Loans Breakdown B a n k D e b t - U S $ 1 , 0 5 9 . 7 million S e p t e m b e r 30, 2003 Currency Breakdown Debt Maturity US$ 34% Long Short Term Term 49% 51% R$ 66% • Considering Currency Swaps • Loan Average Maturity: 2 years and 2 months • Average R$ debt cost: 18.9% p.a. (83.2% of CDI) • Average US$ debt cost: 4.9% p.a. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Investments & Productivity
    • PP&E and R&D U S $ million 180 158.6 160 PP&E 143.8 140 R&D 127.7 125.8 120 114.2 99.6 100 80 69.6 60.1 60 44.1 40 18.8 20 0 1999 2000 2001 2002 Sep. 03 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Reduced Production Cycle 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 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Revenues per Employee Brazilian GAAP (US$ thousand) 350 307 300 247 254 242 250 227 200 185 150 100 91 50 0 1996 1997 1998 1999 2000 2001 2002 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Investments Forecast U S $ million 03 Original 03 Actual 2004 2005 R&D Total 167 140 174 119 - Commercial Aviation 126 100 139 72 - Corporate Aviation 14 20. 16 27 - Others 27 20 19 20 Defence 53 48 42 54 Productivity and PP&E 58 33 64 81 TOTAL 278 221 280 254 D e f e n c e I n v e s t m e n t s a r e f u n d e d b y t h e i r c o n t r a c t s a n d a r e n o t i nc l u d e d in the R&D expenses, but in Cost of Sales and Services. (*) Does not include new program & Acquisitions THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Backlog & Delivery Forecast
    • Backlog In 3Q03 - US$ 27.6billion in total orders, including US$ 10.4 billion in firm orders US$ billion 30 27.6 27.1 25 Options 24.1 23.4 22.2 Firm Orders 20 19.2 17.7 16.8 17.2 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 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 160 161 160 170 131 96 102 59 32 4 1996 1997 1998 1999 2000 2001 2002 2003 E 2004 E 2005 E THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
    • Deliveries Forecast 160 expected deliveries for 2004 and 170 for 2005 12% 12% 15% 15% 35% 35% 37% 37% 53% 53% 48% 48% 2004 2004 2005 2005 ERJ 145 Family ERJ 145 Family E M B R A E R 1 7 0 F a m iilly EMBRAER 170 Fam y Corporate Corporate THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.