2. Foward Looking
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.
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.
6. High Technology
The Virtual Reality Center
Provides visualization of
the aircraft structure and
systems during the
project phase, using 3D
electronic models.
Reduces the
development cycle.
10. Qualified People
25% of the 11,048 employees, are engineers
PhD
Educational Levels 0,2% Graduate
29,3%
Post Graduate
High School 4,7%
64,5% Master
1,3%
11. Qualified People
More than US$ 60 million invested in training and
qualification in the last 3 years.
21 25
18
1999 2000 2001
14. Global Business
Current Fleet of Regional Aircraft
ERJ Operators
Turboprop Operators
Europe
285 aircraft
40 customers
North America
920 aircraft Asia
35 customers Pacific
60 aircraft
20 customers
Latin America
& Caribbean Africa &
260 aircraft Middle East
85 customers 55 aircraft
10 customers
15. Global Business
Operations in Brazil, United States, Europe, Asia and Australia
USA UK
Weybridge
Dallas China
Nashville
Atlanta
France Beijing
Palm Beach Le Bourget
Fort Lauderdale
Singapore
Singapore
Brazil
Gavião Peixoto
Botucatu
Australia
Melbourne
São José dos Campos
Eugênio de Melo
17. Cash Intensiveness
In the last 5 years the Company invested almost
US$ 1 billion in research & development and
productivity.
296
213
147
122
104
81
1996 1997 1998 1999 2000 2001
18. Cash Intensiveness
US$ 1.3 Billion Investments in the Next 5 Years
US$ millions 2002 2003 2004 2005 2006 2002-2006
Research &
Development 213 191 180 174 176 934
Comercial 138 105 61 34 27 365
Corporate 15 6 2 2 2 27
Defense 51 72 109 130 139 501
Others 9 8 8 8 8 41
PP&E 118 71 59 50 51 349
TOTAL 331 262 239 224 227 1,283
19. Cash intensiveness
Risk Sharing concept with partners allows the decrease
in development cycle and investment risk
Family launched in July 1999
Roll out in October 2001
First Flight in February 2002
32 months from launch
to first flight
20. Cash Intensiveness
In 2000 Embraer increased its global
presence with a US$ 446 million Primary &
Secondary Global Offering:
Funds of US$ 240 million in a Primary
offering for the EMBRAER 170/190
program
Company positioned in the international
capital markets.
21. Cash Intensiveness
Nearly two-thirds of the EMBRAER 170/190
program development costs borne by Risk-
Sharing Partners
Development cost for the new EMBRAER 170 family program:
Cash Contribution from Risk Sharing Partners $ 260
Net Proceeds from IPO $ 240
Funds From Cash Flow $ 60
$ 560
Risk Sharing Partner Development Cost $ 290
Total Cost of the EMBRAER 170/190 Program $ 850
25. Flexibility
To cope with the new scenario, Embraer adjusted its total
labor force and laid off 14% (1,800) of its employees.
Total of Employees
11,048
10,334
8,302
6,737
6,087
4,319 4,494
3,849
1994 1995 1996 1997 1998 1999 2000 2001
26. Flexibility
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
4,5
1996 1997 1998 1999 2000 2001 1Q02
27. Flexibility
Embraer presents one of the highest "revenue per
employee" in the industry.
Revenue per employee
US$ thousand 307
242 247 254
172
101
1996 1997 1998 1999 2000 2001
