3. Industry - New Jets Deliveries in 2006
OEMs 2005 2006 Var. (%)
Airbus 9 10 11%
Boeing 4 13 225%
Bombardier 188 213 13%
Cessna 247 307 24%
Dassault 51 61 20%
Embraer 20 27 35%
Eclipse - 1 N/A
Gulstream 89 113 27%
Raytheon 141 140 -0,7%
Total
*Considers 1 AvCraft Envoy 3 delivery
750* 885 18%
Source:: GAMA
2 years backlog for most popular models
4. Shifting demand towards non-traditional markets
Russia Honeywell Survey
5 years buying expectations
70 aircraft expected to be sold by year-end
L. America
Middle East 9.8%
M East &
5.2% fleet growth since 2000 Africa
Europe 4.0%
Eastern Europe 12.6%
Asia
19,1% fleet growth 12.8%
Latin America North America
significant light jets demand 60.7%
Asia
50% deliveries increase in 2005 Sources: AMSTAT, Embraer Analysis and Honeywell
5. Embraer Forecast - Main Demand Drivers
Stock Market Macro-economic factors Corporate Profits
Performance (GDP) Individual Wealth
6.4% 4.5%
3.4% 3.0%
2006e 2.6% 2.1%
5.3% 4.2%
2007-16e North America Eastern Europe
Western Europe
Middle East 7.2% 5.8%
5.6% 5.1%
4.8% 4.0%
Asia Pacific
Africa Not including Japan
Latin America World
3.9 % 3.2 % Sources: Global Insight – May & September 2006 and GAMA
Worldwide deliveries of new executive jets
2006: + 18% 2007-2016e: + 3.7% (cagr)
6. “Premium” customers are under served
USA Europe
5% 12% 11%
14% 17% 17%
19%
18%
34%
39% 33%
RPK (%)
40%
76% 71%
54% 47% 50%
43%
2000 2006 2010e 2000 2006 2010e
Network Low Cost Regional
Sources: Back AOG, Embraer analysis,
Lower number of destinations Greater door-to-door elapsed time
7. Hassle factor: growing delays
Congestion
USA
73% of pax at 35 hubs
90% of delays at main hubs
Europe
MIA
13% flight delays increase in 2005 Heathrow airport after the London’s terrorist threat
Terrorism threat
AVIÔES EM FILA Higher security levels
Poor passenger services
Sources: FAA 2005 and Eurocontrol 2006
8. Current Offer – Charter vs. Airline
Preliminary data
Light bizjet average price
Round Trip Price (US$ x 1,000)
$10
$8
$6
Huge Gap
$4
$2 Airline – Full Fare
$0
0 100 200 300 400 500 600 700
Stage Length (nm)
Sources: The Air Charter Guide; Expedia
The right VLJ can fill the gap
9. Industry answer: business models evolution
Cost Branded Charter
New Business models
Air Taxi
Traditional Ownership
Aircraft Management
Fractional Ownership
Jet cards memberships
Used Fractional
Charter On-Demand
Scheduled Charter
WONDAIR
“Bizav” Airline
Commercial Aviation
Source:: Embraer (adapted from Jet Solutions)
10. 2007-2016 Market Forecast (deliveries) - World
Product Categories Units US$
ULTRA LARGE 2%
8% 6%
ULTRA-LONG RANGE
12% 23%
LARGE
11%
SUPER MID-SIZE 12% 24%
MID-SIZE 10%
16%
MID-LIGHT 22%
11%
LIGHT
7%
23%
VERY LIGHT 9%
* additional air taxi demand of 2,500-3,000 units
4%
11,115 executive jets US$ 169 billion in the next 10 years
Source: Embraer Analysis
11. 2007-2016 Forecasted Delivery Profile
ULTRA LARGE Forecast
1400
ULTRA-LONG RANGE
1200 LARGE
SUPER MID-SIZE
1000 MID-SIZE
MID-LIGHT
800
LIGHT
600 VERY LIGHT
400
200
0
98
08
10
88
90
94
14
16
84
92
96
04
86
00
02
06
12
19
20
20
19
19
19
20
20
19
19
19
20
19
20
20
20
20
* additional air taxi demand of 2,500-3,000 units Source: Embraer Analysis
12. Vision
To become a major player in the Business Aviation Market by
2015 through innovative and differentiating product and service
solutions with added value to our customers and shareholders.
13. Embraer Product Portfolio
Lineage 1000®
2008
Ultra-large
Ultra-Long Range
Large
Legacy 600®
Super Mid-Size
Mid-size
Mid-light
Light
Phenom 300®
2009
Very Light Phenom 100 ®
2008
illustrative purposes only
15. Legacy 600® – Floor Plan and Performance
Baggage
compartment
volume: 240 ft3
Galley Zone 1 Zone 2 Zone 3
Range* 3,250 nm
Cabin Volume 1,650 ft3
MMO Mach 0.80
Max ceiling 41,000 ft Cabin Length 49.8 ft
TOFL** 5,551 ft
*8 passengers @ 200 lb, NBAA IFR reserves (200 nm alternate, 35 min of holding @ 5,000 ft) ** MTOW; ISA; Seal Level
16. Legacy 600® – Differential Features
HSD – Wifi Sound Quality Improved
LCY Operation (range: 1,800 nm)
Certified for Cannes
EFB Class II Outstanding Hot & High capability
17. The world discovers the Legacy 600®
March 2007
100 aircraft, 19 countries, the right choice
18. Market share - super midsize category
15%
13.6%
13%
27
12% 12%
10% 20
13 13
10
2002 2003 2004 2005 2006 2007-2016
December 2006
Deliveries growth of 35% in 2006
20. Phenom 100® - Interior Design
illustrative purposes only
21. Phenom 100® - Floor Plan and Performance
Baggage Compartment - 45 cu.ft
FWD Baggage Compartment - 5 cu.ft Wardrobe - 5 cu.ft
Preliminary Data - illustrative purposes only
Range* 1,160 nm
Max ceiling FL 410
VFR range ** 1,320 nm
TOFL*** 3,400 ft
MMO Mach 0.70
* 4 occupants @ 200 lb, NBAA IFR reserves (100 nm alternative, 35 min) ** 4 occupants @ 200 lb, VFR 45 min reserves *** MTOW, ISA, Sea Level
22. Clients Testimony
“Combined with their great reputation for quality and durability,
the Phenom’s fit our business model extremely well.” said Jim
Burns, Magnum Jet’s CEO.
Mr. Jim Burns, CEO
“We are delighted to have Embraer as a key stakeholder in our
business given its exemplary track record of innovation in
aircraft design and production. ”
Mr. Dómhnal Slattery,
Founder and Chairman
“The Phenom 100 is a perfect addition to our fleet ”
Mr. Matt Doyle,
VP of Sales
Source: Embraer press-releases
illustrative purposes only
23. First Phenom 100® Assembly
illustrative purposes only
Fuselage & wing arrival at Main Plant (SJK)
24. First Phenom 100® Assembly
Fuselage & wing junction
28 Mar 2007
illustrative purposes only
26. Phenom 300® - Interior Design
by
illustrative purposes only
27. Phenom 300® - Floor Plan and Performance
Baggage Compartment - 66 cu.ft
FWD Baggage Compartment - 5 cu.ft Wardrobe - 5 cu.ft
Preliminary Data - illustrative purposes only
Range* 1,800 nm Max ceiling FL 450
MMO Mach 0.78 TOFL** 3,700 ft
* 6 occupants @ 200 lb, NBAA IFR reserves (100 nm alternative, 35 min) ** MTOW, ISA, Sea Level
28. Phenom 300® - Totally New Designed Aircraft
illustrative purposes only
High Availability - Low Turn-Around Time (TAT)
Single Point Refueling
Externally Serviced Lavatory
Brake-by-wire with standard anti-skid
29. Phenom 300® - Expert Opinion
illustrative purposes only
30. Phenom 300® - First Metal Cut
27 Mar 2007
illustrative purposes only
31. The world also discovers the Phenom Jets
December 2006
More than 350 firm orders in 24 countries
illustrative purposes only
43. Customer Support & Services - Vision
To become a leading Support & Services provider in the
Business Aviation Market within 3 years through a solid
network, genuine customer relationship and best practices.
44. Building Up Experience
Integrated Solutions
Maintenance Services
37 y Parts Support & Repairs
ear s
of cu Field & Technical Support
stom Training Program
e r su Embraer Executive Care programs
ppor
t
45. Customer Support Solution (NBAA 2006)
Service Centers Network - global coverage
4 new owned service centers: 3 in US and 1 in Europe; in addition to 3 existing ones
Authorized service centers network expansion to up to 38 locations
Logistics and Parts Support
Distribution Centers with mixed own and third party Logistics
Phenom Jets Partner: UPS
Field and Product Support
Maintenance Tracking and Planning Service unveiling (Flightdocs)
Call Center evolution into a Contact Center concept by middle 2008
Training Programs
Phenom Jets: Embraer x CAE Joint Venture
Training Centers: 2 in USA and 1 in Europe
Executive Care Programs Preliminary Data
46. Service Network for Embraer Executive Jets
Worldwide Network (middle 2008): 45 Service Centers
7 Embraer Wholly Owned
38 Authorized Service Centers
Preliminary Data
48. Sales Financing Solutions
Embraer announced a joint referral program with
Bank of America to finance business jets for
Embraer’s customers.
Phenom and Legacy jets financing
expedited credit decisions
promotional events & materials joint work
Deal with U.S. Bank includes customized
financing for Embraer’s U.S. business jet
customers along with a Multi Service Aviation
Affinity Card.
Custom financing solutions for Phenom,
Legacy and Lineage buyers
Multi Service Aviation Affinity Card with
rewards program
55. This presentation is the property of Embraer - Empresa Brasileira de Aeronáutica S.A. ("Embraer") and shall
not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent.
Embraer reserves the right to revise this document whenever occasioned by product improvements,
governmental regulations or other good cause.
All images: figures, finishing materials and colors are for illustration purpose only, and may not represent the
real and final product accurately.
Some features are optional items not included in the baseline aircraft and are subject to price increase and
lead-time analysis.
All data presented shall not be used as guarantee. Guaranteed specifications are listed in the technical
description and represent the only binding guarantee.
In the event of any conflict between this presentation and the technical description, the technical description
shall govern.