1. Embraer Day 2006 2006
Embraer Day Luís Carlos Affonso
Luís Carlos Affonso
Executive Aviation Overview
Executive Vice-President, Executive Jets
Executive Vice-President, Executive Jets
November 17th,2006
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.
4. Main demand drivers
Stock market Macro-economic Corporate Profits
performance factors (GDP) Individual Wealth
6.4% 4.5%
3.4% 3.0%
2006e 2.6% 2.1%
5.3% 4.2%
2007-16e Eastern Europe
North America
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 % Source: Global Insight – May & September 2006
Worldwide deliveries of new executive jets
2006e: + 16% 2007-2016e: + 3.7% (cagr)
5. Shifting Demand
Russia: 70 aircraft expected to be sold by year-end
Middle East: 5.2% fleet growth since 2000 L. America
9.8%
Eastern Europe:19,1% fleet growth M East &
Africa
Latin America: significant light jets demand Europe 4.0%
12.6%
Asia
Asia: 50% deliveries increase in 2005
12.8%
North America
60.7%
5 year buying expectations*
*Source: Honeywell Survey
**Source: AMSTAT, Embraer Analysis
Significant demand shifting towards non-traditional markets
6. “Premium” customers are under served
USA Europe
3% 5% 9% 12% 8%
12% 17% 16% 15%
19% 5%
27% 11% 19%
37% 35%
85%
76% 87% 72%
64% 65%
51% 50%
1995 2000 2005E 2010E 1995 2000 2005E 2010E
Network Low Cost Regional Source: Embraer analysis.
Lower number of destinations Greater door-to-door elapsed time
7. Hassle factor: Growing delays
USA
73% of pax at 35 hubs
AVIÔES EM FILA
90% of delays at main hubs
Europe
13% flight delays increase in 2005
20% more than 15 min delay
MIA
Sources: FAA 2005
Heathrow airport after the London’s terrorist threat Eurocontrol 2006
Increased hassle factor Benefits Business Aviation
8. Yearly Total Cost
Traditional Ownership
Aircraft Management
Fractional Ownership
Used Fractional
Cost
Jet cards memberships
Charter On-Demand
Scheduled Charter
“Bizav” Airline
Air Taxi
Branded Charter
New Business models
Industry answer: business models evolution
0
Commercial Aviation
WONDAIR
Source:: Embraer (adapted from Jet Solutions)
9. State of Fractional Industry
2006E: 111 aircraft to be delivered
Shares: 30% more flying hours since 2004
Cards: 5,000 cards sold in 4 years
Flight Options Operations Center
Challenges
Operational productivity – profit margins on operation
Shaping demand of cards – peak time vs. blackouts and discounts, higher prices
Service improvements – customers seek elimination of hidden costs
Accommodate labor costs – unionized pilots and escalating salaries
Fractional market is evolving
11. Business Aviation Market Size
US$ 38.9 bi
3,9
US$ 27.1 bi 6,7
Fractional Ownership
2,2
Charter + Aircraft
Management 4,7 4,8
FBO 2,7
4,2
1,2
MRO 2,4
Completion + 1,1
Refurbishment
19,5
15,7
Airframe / OEM
(2005 US$ billion)
Source: AT Kearney and
Embraer estimates
2005 2016e
Significant Expansion
12. Historic Delivery Profile
ULTRA LARGE 870+
800 ULTRA-LONG RANGE
LARGE
700
SUPER MID-SIZE
600 MID-SIZE
500 MID-LIGHT
LIGHT
400
VERY LIGHT
300
200
100
0
93
96
84
90
99
87
92
95
00
01
02
03
86
89
91
94
98
85
88
97
04
05
06
19
19
19
19
19
19
19
19
20
20
20
20
19
19
19
19
19
19
19
19
20
20
20
Bizjet market is posed to set a new record
13. 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
14
84
86
90
92
96
98
02
04
06
10
12
16
88
94
00
08
20
19
19
19
19
19
19
20
20
20
20
20
20
19
19
20
20
Very Light Jets will drive an increased demand in industry deliveries
14. 2007-2016 Market Forecast (deliveries) - World
Ultra-Long Range Ultra-Large
8% 2%
Large Very Light
12% 23%
Supermidsize
11%
2,715* Light
Midsize
2,390 22%
12% Midlight
10%
1,305 1,250 1,310
1,080
850
215
Very Light Light Midlight Midsize Super Large Ultra-long Ultra-Large
Midsize Range
* additional air taxi demand of 2,500-3,000 units
11,115 executive jets US$ 169 billion in the next 10 years
15. 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
16. Vision
To become a major player in the Business Aviation Market
within 9 years by providing innovative and differentiating
product and service solutions with added value to our
customers and shareholders.
17. Embraer Product portfolio
Ultra Large Lineage™ 1000
Ultra-Long Range
Large
Legacy™ 600
Super Mid-Size
Mid-size
Mid-light
Light Phenom™ 100
Very Light Phenom™ 300
20. The world discovers the Legacy™ 600
USA 38
EUROPE 32
ASIA 8
MIDDLE EAST 5
LATIN AMERICA 3
AFRICA 1
TOTAL 87
08 Nov 2006
87 aircraft, 18 countries, the right choice
21. Legacy™ 600 Landmarks
2002 2003 2004 2005 2006
Enhancements
Avionics -
New ICE – Air
weather Show
Sound
Quality radar System
Improvement antenna update
41,000 ft
Ceiling
Short
Runway FMS - USB
LCY Performance Data Loader
Operation 9,500 ft Interior
Maintenance Take-off enhancement
Range Plan Landing
New Interior HSD Altitude
PDA
White LED Performance
lighting Software
Certification
CTA / FAA / JAA / CIS
Promises made … promises delivered
22. Legacy™ 600 Landmarks
2002 2003 2004 2005 2006
Enhancements
Avionics -
New ICE – Air
weather Show
Sound
Quality radar System
Improvement antenna update
41,000 ft
Ceiling
Short
Runway FMS - USB
LCY Performance Data Loader
Operation 9,500 ft Interior
Maintenance
D
RE
Take-off enhancement
Range Plan Landing
New Interior HSD
E
Altitude
LIV
DE EVS
PDA
White LED Performance
lighting Software
Certification
CTA / FAA / JAA / CIS
Baggage
compartment
enhancement
Enhancements Bulkhead
EFB 17” Monitor
to come
Operation Towbarless Tug
in Cannes
and more on the way
23. Market share - super midsize category
15%
13% 13.5%
12% 12% 25-30
10% 20
13 13
10
2002 2003 2004 2005 2006 2007-2015
July 2006
Deliveries growth of 54% in 2005
26. Integrated Development
Digital Mock-ups & Virtual Reality Center
The Digital Mock-up is a high
precision model that reproduces
the final aircraft with high fidelity.
30. Phenom™ 100
Floor Plan Preliminary data
1 3 5
45 cu.ft.
2
3 4
5 cu.ft.
5 cu.ft.
1 – Storage Area or Refreshment Center 3 – Work Tables
2 – Seats 4 – Storage Area
5 – Lavatory
31. Phenom™ 100
Performance Data Preliminary data
Characteristics Phenom™ 100
Range * 1,160 nm
Range VFR** 1,320 nm
High Speed Cruise 380 KTAS
MMO M 0.70
Maximum Operating Altitude 41,000 ft
Takeoff Field Length (ISA, SL, MTOW) 3,400 ft
* NBAA IFR reserves (35 min) with 100 nm alternate; 4 occupants @ 200 lb
** VFR 45 min reserves; 4 occupants @ 200 lb
32. Economic Life – 10 years typical utilization
Air Taxi
(20,000)
Fractional
(12,000)
Charter &
Branded
Charter
(8,000)
Private Owner
(2,000)
Phenom 100
35,000 EXTENDED LIFE
Preliminary data Cycles
Favors residual value
33. Phenom™ 100
Direct Operating Costs
Phenom™ 100 DOC: US$ 440 / FH *
20% lower than an entry level jet (CJ1)
12% lower than King Air C90B for a 600 nm mission**
* Per B&CA assumptions – Typical Bizjet Operation
** B&CA Operations Planning Guide – August 2005
Preliminary data
34. Phenom™ 100 – Wind Tunnel Test Campaign
D
E TE
M PL
CO
2Q - 2005
Phase I - USA
4Q - 2005
UWAL - University of
Washington Aeronautical
Laboratory Phase II - Brazil
2Q - 2006
CTA - General Command
for Aerospace Technology Phase III - Russia
TsAGI – Central
Aerohydrodynamic Institute
Design specifications confirmed
35. Phenom™ 100 – Engine first flight ED
LET
MP
CO
Oct 2006
Pratt & Whitney Canada PW 617F
Successfully completed 4.2 hours of flying
36. Phenom™ 100 and Phenom™ 300 – Infrastructure
3Q - 2006 Phenom 100 sub-
BRAZIL
Botucatu assemblies production
hangar reconfigured
BRAZIL
Gavião
Peixoto
Construction of a 130,000 sq.ft.
hangar began for Phenom 100
and Phenom 300 final
assembly lines
3Q - 2006
37. Phenom™ 100 – Master Phase Plan
2004 2005 2006 2007 2008
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Business Case Approval
Business Plan Preparation
Business Plan Approval (Official “Go-Ahead”)
Joint Definition Phase
Detailed Design and
Flight Test Campaign
First Metal Cut
Sub-Assembly
Final Assembly
First Flight
Entry Into Service
40. PhenomTM 300 - Baggage Capacity
The best baggage compartment in the category Preliminary data
Baggage Compartment - 66 cu.ft
FWD Baggage Compartment - 5 cu.ft Wardrobe - 5 cu.ft
76 cu.ft of baggage capacity – 66 cu.ft in a single compartment
41. Performance
Performance Data Preliminary data
Characteristics Phenom™ 300
Range * 1,800 nm
High Speed Cruise 450 KTAS
MMO M 0.78
Maximum Operating Altitude 45,000 ft
Takeoff Field Length 3,700 ft
* NBAA IFR reserves (35 min) with 100 nm alternate; 6 occupants @ 200 lb each
42. Phenom™ 300
Totally new designed aircraft
45,000 ft ceiling
6,000 ft cabin altitude @ 41,000 ft
7,000 ft cabin altitude @ 45,000 ft
Data link capability (road map)
Trend and exceedance
Remote Diagnostic
Two way high speed
Preliminary data
43. Phenom™ 300
Totally new designed aircraft
High Availability - Low Turn-Around Time (TAT)
Single Point Refueling
Externally Serviced Lavatory
Brake-by-wire with standard anti-skid
Preliminary data
44. Phenom™ 300
Direct Operating Costs Preliminary data
Phenom™ 300 DOC: US$ 700 / FH *
20% lower than a light jet (Hawker 400XP)*
16% lower than a mid-light jet (Citation Encore)*
* Per B&CA assumptions – Typical Bizjet Operation
51. LineageTM 1000 Performance
Range: 4,200 nm*
MMO : Mach 0.82
* NBAA IFR reserves (35 min) with 200 nm alternate; 8 passengers @ 200 lb, ISA. Range circles consider 85% annual winds,, 3% allowance Preliminary data
52. Embraer LineageTM 1000 - Interior
Design Office
Priestman Goode is a design consultancy
specializing in 3D branding.
They work in many different sectors, ensuring that
the final design genuinely adds to the customer
experience.
Source: Priestman Goode website
53. Embraer LineageTM 1000 - Interior
Interior Provider
DeCrane Aircraft is committed to providing the most
effective, leading-edge solutions available.
PATS Aircraft, LLC. provides innovative solutions in
response to the aviation industry's distinctive needs.
Sources: DeCrane Aircraft & PATS Aircraft websites
55. 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.
56. Building Up Experience
Integrated Solutions
Reputable Maintenance Services
37 y Excellent Parts Support & Repairs
ears
of cu Outstanding Field & Tech. Support
s tome Comprehensive Training Program
r supp Embraer Executive Care programs
ort
57. Embraer Service Centers Network in the U.S.
Bradley
Hartford, CT
Williams Gateway EAMS
Mesa, AZ Nashville, TN
Exisiting Service Center
Fort Lauderdale
International, FL
New Service Centers
Embraer Owned Service Centers
58. Revamped Service Centers Network in the U.S.
13 Authorized Service Centers
Hillsboro, OR
Bedford, MA
Wheeling, IL
Teterboro, NJ
Lincoln, NE
Cleveland,OH
Lincoln, NE
Cahokia, IL
LAX, CA Phoenix, AZ
Phoenix, AZ
Augusta, GA
Houston, TX
West Palm, FL
Legacy 600 Authorized Service Centers
Enlarged and reconfigured network
59. Reputable Service Centers Network in the U.S.
8 Authorized Service Centers
Hillsboro, OR
Moline, IL
Indianapolis, IN
Grand Junction, CO
Greenville, SC
Dallas, TX
Phenom 100 & 300
Authorized Service Centers
From line to overhaul services
60. Enhanced Service Center Network in Europe
New
France
Le Bourget
FR
Existing PT
Portugal
OGMA
61. Enhanced Service Center Network in Europe
5 Authorized Service Centers
Legacy 600
Phenom 100 & 300
London, UK
Prague, CR
Munich, GY
Zurich, SW
Lugano, SW
Lugano, TO BE APPOINTED.
More options, greater flexibility
62. Service Network for Embraer Executive Jets
Worldwide Network (middle 2008): 45 Service Centers
7 Embraer Wholly Owned
38 Authorized Service Centers
Broader coverage, greater convenience
64. Outstanding Field and Product Support
Call Center
Embraer
Customer Care
Web Field
Web Portal Portal Support
improvements
Call Center at
towards customer-
Embraer
centric focus
headquarter fully
Field Suport dedicated to Legacy
Team 40% technical support
growth
Call Center evolution
into a Contact Center
concept
Phenom 100 EIS
2006 2007 2008
Customer Care confirmation
65. Outstanding Field and Product Support
Maintenance Tracking and Planning Service
EMBRAER selected and
contracted Flightdocs as the
provider (august 2006)
Five Legacy are already taking
advantage of the new service
66. Embraer Executive Care
Legacy 600* Standard Intermediate Enhanced
Scheduled + basic unscheduled airframe parts
Parts freight
Parts for Service Bulletins, AD related
Embraer Maintenance Tracking & Planning System
Scheduled heavy checks labor (24 MO)
Labor, all scheduled tasks
Labor, basic unscheduled tasks
Labor on Service Bulletins, AD related
Mobile Rescue Team, AOG
* Only airframe. No engine included.
More levels of coverage
67. Embraer Executive Care
Phenom 100 & 300 Standard Enhanced
Scheduled + basic unscheduled airframe parts
Airframe parts freight
High Utilization
Airframe parts for Service Bulletins, AD related above 400 FH/y
Embraer Maintenance Tracking & Planning System
Low Utilization
Engine Coverage below 400 FH/y
Airframe Labor, Scheduled and Basic Unscheduled
Airframe Labor, Service Bulletins, AD related
Airframe Mobile Rescue Team, AOG OPT.
OPT.
Engine Life Limited Parts Coverage OPT.
OPT. OPT.
OPT.
Different Levels of coverage
68. PhenomTM 100 & PhenomTM 300 Training
Joint
Venture
Commitment to deliver best training solution
69. PhenomTM 100 & 300 Potential Training Locations
USA Europe
First Training
Center USA
2008 First Training
Center Europe
2009
Second Training
Center USA
2012
Full Flight Simulator available at Phenom EIS 69
77. Due to time span between the date of this document/presentation and the entry into service of
the aircraft, Embraer reserves the right to revise this document/presentation whenever
occasioned by product improvement, government regulations or other good cause.
The information contained herein is the property of Embraer S.A. and shall not be copied or
used in any manner except with Embraer´s written consent.
