1. Embraer Day 2011
Luiz Carlos Aguiar
CEO
New York, November 4 th, 2011
IMD 082-A11
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.
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IMD 082-A11 EMBRAER PROPRIETARY INFORMATION
3. Agenda
General Information
Results and the Future
Strategic Vision
Main Programs Status
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IMD 082-A11 EMBRAER PROPRIETARY INFORMATION
4. Embraer Defense and Security
Embraer Defense and Security: a new Embraer company established on 1st January 2011
Revenues around US$ 750 million including services (est. 2011)
Approximately 1,500 employees
Presence in more than 40 countries
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IMD 082-A11 EMBRAER PROPRIETARY INFORMATION
6. Revenue Breakdown Evolution
Services Transport
11% 4%
2020
Sisfron, Satellite
10%
KC-390
34%
New Business
14%
2011
KC-390
Services 16% Light Attack and
11% Radar, C4I, UAV, Combat
MRO 9%
ISR
18%
9%
Modernization
30%
New Business
Light Attack
9% Airport Management Systems
SisGAAz (“Blue Amazon” Integrated Management System)
Security of Critical Infrastructure
Public Security (sporting events, cities, states)
Radar, C4I, UAV,
MRO
25% Ref.: October, 2011
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7. Embraer Defense and Security: Vision and Mission
Vision
To be the leader in providing solutions
for the Brazilian Defense & Security
market, and where Brazil exercises a
strong geopolitical influence.
Mission
To protect people, territories and safeguard critical assets, by
developing tailored and business integrated solutions in the
Defense & Security markets, and by providing results for
customers and stakeholders, partners and society.
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8. Embraer Defense and Security Strategic Objectives
To build a leadership position and to act as the
main prime contractor in the Brazilian Defense
and Security Industry Base
To expand the portfolio of products, services
and technologies build through a combination
of organic growth and acquisitions
To diversify our target markets and our
customer base
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9. Brazilian Army Priorities
SISFRON
Satellite
Integrated Borders
Monitoring System
Estimate: US$ 400 M
Estimate: US$ 4 bi Participation in the first Brazilian
Geostationary Satellite
Comprising radars, communication
networks, C4I, unmanned air vehicles
(UAV) and armored vehicles
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IMD 082-A11 EMBRAER PROPRIETARY INFORMATION
10. Main Company in the Industry’s Productive Chain in Brazil
• EADS (Europe)
To build a leadership position and to act as the main prime contractor • Fincantieri (Italy)
in the Brazilian Defense and Security Industry Base • Finmeccanica (Italy)
• Thales (France)
• Elbit (Israel)
• IAI (Israel)
• BAE Systems (UK)
• Other Brazilian • DCNS (France)
companies • Boeing (USA)
Main Brazilian Defense • Rockwell Collins (USA)
Satellite and Security Company: • Equipment • Indra (Spain)
suppliers • Saab (Sweden)
• Solutions • ....
• Prime contractor
SISFRON development
• Project management
Integrated Borders Foreign
Monitoring • Finance structuring Companies
System • Solutions integrator
• Development and Brazilian
retention of technologies construction
companies
• Services and logistics
Brazilian priority supplies
Brazilian
Main • Brazilian supply chain strengthening Supply of
Supply of base
Government • Technology development and retention complementary
infrastructure
Contractors • Finance structuring foreign equipment
Projects • Highly qualified employment generation
• Technological spin-off
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11. Growth Through Acquisitions and Partnerships
To expand the portfolio of products, services and technologies build
through a combination of organic growth and acquisitions
* HARPIA
Aerial Systems
Command and Remote Sensing
Control UAVs
MRO UAV Public Security
Systems
Air Traffic
Ground Radars
Management Simulators Weapon Systems
Systems Mini-UAVs for Armored
Vehicles
Aerostructures Modernization of Simulators
Police Mission Systems avionics systems
Intelligence Logistics and
System Management
Systems
Control Commercial Agreement Minority Participation
(*) Embraer Defense and Security has the joint control of Atech Negócios em Tecnologias S/A Ref.: October, 2011
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IMD 082-A11 EMBRAER PROPRIETARY INFORMATION
12. New portfolio
Command and Control Systems
Onboard Systems
Simulation Systems
Electronic Warfare Systems
Intelligence Systems
System of Systems
Air Traffic Management and Control Systems
Security of Critical
Infrastructure
JV with Elbit/AEL Sistemas where Embraer
Public Security
Defense and Security has a major
HARPIA participation (sporting events,
UAV’s cities, states)
UAS, simulators and modernization of
avionics systems Airport Management
Systems
SISFRON
Air, ground and sea surveillance radars
Radar SisGAAZ
Remote sensing
Engine and Component Maintenance
Overhaul and Modernization
Services
Aerostructure Manufacturing and Assembling
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IMD 082-A11 EMBRAER PROPRIETARY INFORMATION
13. Embraer Defense and Security
Embraer Defense and Security, partners and affiliated companies
System of Systems
HARPIA
ISR (Intelligence, Light attack and advanced
Surveillance and Transport of authorities
training
Reconnaissance)
UAV’s
Modernization programs Services Tactical military transport
Radar
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IMD 082-A11 EMBRAER PROPRIETARY INFORMATION
14. Embraer Defense and Security Corporate
Presence
Alverca (Portugal) Villepinte (France)
MRO
Logistic support
Washington DC (USA)
Commercial presence Abu Dhabi (UAE)
Commercial presence
Singapore
Brasília (Brazil) Rio de Janeiro (Brazil) Commercial office
Commercial office Commercial presence
Harpia Sistemas headquarter
São Paulo (Brazil)
Headquarters
Atech S.A headquarters
São José dos Campos (Brasil)
Gavião Peixoto (Brazil) Engineering, programs, industrial operations,
Industrial operations customer support and services
Service center Orbisat headquarters
Campinas (Brazil)
Orbisat (engineering and operations) Eugênio de Melo (Brasil)
KC-390 Program
Engineering
Ref.: October, 2011
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15. Diversify Markets and Customer Base
To diversify our target markets and our customer base
Security of Critical
Infrastructure
Public Security (sporting
events, cities, states)
Airport Management
Systems
Satellite
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16. Portfolio – Super Tucano
Firm orders: 180 aircraft Super Tucano Addressable Market Forecast
2020
Brazil: 99 (US$ million)
Colombia: 25
Long-term
Dominican Republic: 8 700
Chile: 12
Ecuador: 18
Indonesia: 8
Greystone (TACAir): 1 Medium-term
2,000 Short-term
Undisclosed: 9 800
Deliveries: 156 aircraft
Pursuing USAF Light Air Support
competition
Total Market Forecast:
300 aircraft
US$ 3.5 billion
Ref.: October, 2011
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17. Modernization Programs
Modernization Addressable Market Forecast 2025 Brazilian Navy A-4
(US$ million)
12 aircraft
Long-term
567 Two prototype at GPX-CS
Brazilian Air Force A-1M
43 aircraft
Five received by Embraer for the modernization
Medium-term
505
Short-term Brazilian Air Force F-5M
527
46 a/c + 11 a/c (2 nd batch)
Total Market Forecast*: 44 already delivered
234 aircraft * Forecast considering the market for F-5 and Tucano modernization
US$ 1.6 billion
F-5M A1-M A-4
Ref.: October, 2011
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IMD 082-A11 EMBRAER PROPRIETARY INFORMATION
18. Transport of Authorities and Embraer ISR Systems
Embraer Jets to Defense and
Government customers operating in
12 countries
Presence in Latin America, Europe,
Africa and Asia
58 Embraer Jets in operation
Colombia Ecuador
Embraer ISR Systems: 18 aircraft:
Brazil
Brazilian Air Force: 8
Panama Belgium Greece Hellenic Air Force: 4
Mexican Air Force: 3
Pakistan Thailand
DRDO/CABS (India): 3
India
15 aircraft in operation
*ISR = Intelligence, Surveillance and Reconnaissance
Angola Nigeria Equatorial Guinea
Ref.: October, 2011
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19. EMBRAER KC-390
A new tactical military transport and
tanker aircraft
First flight in 2014
Six countries Brazil Colombia Argentina Chile Portugal Czech Rep.
(28) (12) (6) (6) (6) (2)
Letters of intent totalizing 60 aircraft
Total Market Forecast 2025:
700 aircraft
US$ 50+ bi
Ref.: October, 2011
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20. EMBRAER KC-390: Main partners and suppliers
Cabin Pressure Control System
Air Conditioning System
Integrated Power Plant
System (IPPS)
Cargo Handling and
Aerial Delivery System
Mission Liferaft and Maritime ELT
Computer System FBW Primary and Spoiler
Flight Control System
and Actuators
Wheels and Brakes Assemblies
LG System Hydraulic Control Components
HUD Brake Control System
Steering Hydraulic Manifold
Basic Avionics
Wing Air Refueling Pod
System
Landing Gear
Throttle Control Legs
Cockpit Controls
Pedals
Pilot / Co-pilot / ACM and -DIRCM
Loadmaster Seats -HUD
Tactical Radar System -SPS Ref.: October, 2011
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