1. GMS 149-A05
Defense
Market
Scenario

2. GMS 149-A05
Product
Line

3. Defense Products and Market Segments
Intelligence,
Surveillance and
Reconaissance
Transport
Training
Systems
& Services
Combat
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 3

4. GMS 149-A05
Super
Tucano

5. Super Tucano
High-performance evolution of
the proven EMB 312 Tucano
State-of-the-art systems and
advanced avionics
Optimized for basic, advanced
training and operational
applications in hostile
environments
Can operate from unprepared
runways, during day or night
The only aircraft in its class
capable of employing diversified
conventional and smart weapons.
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 5

6. Super Tucano
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 6

7. Super Tucano
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 7

8. Super Tucano
Operation COLBRA I
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 8

9. GMS 149-A05
Transport
Derivatives

10. Transport Derivatives
Belgium Greece
India Colombia
Brazil Ecuador
Brazil Nigeria
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 10

11. Transport Derivatives
Indian Air Force
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 11

12. Transport Derivatives
TAME
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 12

13. Transport Derivatives
Brazilian Air Force
National Air Mail
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 13

14. GMS 149-A05
ISR
Systems

15. ISR Systems
EMBRAER offers cost effective solutions for
the Intelligence, Surveillance and
Reconnaissance Market
ISR
Intelligence – Surveillance – Reconnaissance
EMB 145 AGS EMB 145 MP EMB 145 AEW&C
Airborne Maritime Patrol
Ground
Surveillance
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 15

16. ISR Systems “Roadmap”
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 16

17. EMB 145 AEW&C
The EMB 145 AEW&C (Airborne Early Warning & Control) is the most
advanced Airborne Early Warning & Control System in operation today.
It is fitted with an advanced electronic scanning radar capable of detecting air
targets at long distances while controling the airspace
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 17

18. EMB 145 RS/AGS
An advanced asset capable of providing real-time imagery and electronic
intelligence over ground objectives
It features an advanced Synthetic Aperture Radar (SAR), for day or night,
and all-weather radar imagery of the ground over large areas, plus other
sophisticated sensors
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 18

19. P-99
New generation Maritime Patrol and Anti-Submarine Warfare aircraft
Features maritime and ground surveillance radar, Electro-Optics, Acoustics
and Electronic Surveillance sensors
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 19

20. Brazilian Air Force
Amazon Surveillance System
R-99A - EMB 145 AEW&C - Airborne Early Warning & Control
R-99B - EMB 145 RS - Remote Sensing and Ground Surveillance.
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 20

21. Hellenic Air Force
EMB 145 AEW&C
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 21

22. Mexican Air Force
EMB 145 AEW&C
EMB 145 MP
C4I Center
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 22

23. Mexican Air Force
June 2nd, 2005 – 11 p.m.
One small twin engine aircraft crashed into
the jungle in southern Mexico (Quintana
Roo) while trying a landing in the mid of the
night after being detected and identified by
Mexican Surveillance Aircraft.
More than 3,000 lb of cocaine has been
found inside the wrekage.
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 23

24. ACS – Aerial Common Sensor
In August, 2004, Embraer was selected to supply
the new Inteligence and Reconnaissance Aircraft to
the U.S. Army and U.S.Navy (Program under
review)
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 24

25. GMS 149-A05
Market Vision

26. Worldwide Defense Procurement
Procurement by Region - 2005-2012
Total 2005 -2012 : US$ 1,5 trillion
US$ billion 250.0
Australasia
200.0 Asia Pacific
Latin America
150.0 Africa
Middle East
East Europe
Average 100.0
West Europe
growth of North America
2.6% between
50.0
2005-2012
0.0
2005 2006 2007 2008 2009 2010 2011 2012
Source: Frost & Sullivan 2004
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 26

27. US Military expenditures
US Department of Defense Budget * (US$ Billion)
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
Personnel 107.2 108.9 108.6 108.6 108.9 109.1 109.1
Operations & Maintenance 139.9 147.8 150.5 153.4 155.5 155.7 156.2
Acquisitions 79.7 78.0 89.7 97.3 98.9 102.4 106.9
Research & Development 70.2 69.4 65.4 63.8 68.0 63.3 53.8
Others 12.4 15.2 18.2 17.5 16.5 15.3 17.5
Total 409.5 419.3 432.5 440.6 447.8 445.7 443.5
US Department of Defense Budget Acquisitions and P&D
(US$ billion)
170
160
150
140
130
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011
Source: Congressional Research Service
* Iraq and Afghanistan operations not included 2006 US Dollars
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 27

28. US ISR Market
US ISR Market Growth Trend (US$ billion)
60
50
40
US$ 30
billion
20
10
2000 2002 2004 2006 2008 2010 2012 2014
Between 2005 and 2010 ISR systems will increase participation from 22%
to 27% of total acquision and R&D spending of the U.S. DoD budget
Source : Frost & Sullivan, 2003
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 28

29. Department of Homeland Security
US$ Total 2004-2008E : US$ 247 billion
billion
60
50
53 55
40 48 50
30 41
20
10
0
2004 2005 2006 2007 2008
Source : DHS
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 29

30. Defense Market Evolving Scenario
Restricted Budgetary scenario
Different military threats prompt to warfare Information
transformation
Superiority
Changing force structure
Armed Forces
Knowledge based, full- spectrum operations
Transformation
Reduction of human exposure to threat situations
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 30

31. Defense Market Trends
Information Superiority
Shorter reaction times and shorter sensor to shooter cycles.
Network centric approach instead of platform centric.
Expansion of ISTAR (Intelligence, Surveillance, Target Acquisition
and Reconnaissance Systems
Expansion of advanced communication and network based systems
Armed Forces Transformation
Higher mobility and flexibility
Multi-forces integration
Faster command cycles
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 31

32. GMS 149-A05
Market
Positioning

33. Defense Market Trends
Significant growth in new requirements for airborne ISR Systems
Most requirements consider major improvements in operational performance,
mission reliability and economics compared with legacy system
Jets x Turboprops
Regional Jets x Business Jets
EMBRAER is very well positioned in this market segment with the ERJ 145 ISR
derivatives
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 33

34. Business Development
Italy Greece
Turkey
UAE
India
USA
Mexico
Venezuela
Colombia Oman
Saudi
Arabia Singapore
Equator
Thailand
Malaysia
Brazil
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 34

35. Operation Guardian (Guardião)
November 16th – December 9th
First EMB 145 AEW&C overseas
deployment
Participation in the Dubai Air
Show and LIMA (Malaysia)
Autonomous operation (no
support aircraft)
Dubai
Malaysia
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 35

36. Defense Market Strategy
Embraer´s Defense Product Line is well positioned to compete in the
evolving market scenario.
Defense Segment is expected to represent up to 15% of Embraer’s total
revenue in the next 5 years.
Growth coming mostly from ISR - Intelligence Surveillance and
Reconnaissance Systems
Today almost 50% of defense revenues are derived from ISR contracts
Embraer expects this number to reach 80% in the next 5 years
GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 36

37. GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 37