Canada
   Analyst &
   Investors
    Meeting



March 2004
 Canada
Forward Looking Statement



T h i s p r e s e n t a t i o n i n c l u d e s f o r w a r d-l o o k i n g s t a t e m e n t...
Fundamentals

Aeronautical Industry Fundamentals

               High Technology


               Qualified People


     ...
Airline Market
Status, Trends
 and Outlook
Market Evolution - U S A

                     Share of US Domestic Passenger Enplanements

 100%
                        ...
Market Evolution - Europe

                                   Share of Intra-European RPKs


  100%
                   14%...
An Industry in Transition


•   F u n d a m e n t a l C o r r e c t i o n – N ot a Traditional C y c l e

      •   D e c ...
Responding to Market Needs


                                                                                             ...
Low Cost Networks - U S A




 Jan 1995 –   336 Routes


 Jan 2003 –   944 Routes
                                        ...
Low Cost Networks - Europe




        Jan 1995 –                  18 R o u t e s

       Jan 2003 –                   374...
L C C Next Steps ...
...increase capacity to match market growth,
  or/and expand their air services to secondary city pai...
Beyond the Current Model...

.... Natural Growth, or Capacity Rightsizing,
     There is a need for adding another compone...
T h e N e e d f o r 7 0- 1 1 0 S e a t J e t s i n t h e U S A

                                                          ...
Market Opportunities - Global

                     R e p l a c e m e n t o f A g e i n g A ircraft
                     F...
E- conomics   – Aircraft Commonality

Fleet Management Flexibility and Load Factor Optimization



                       ...
Cross Section




   Large Baggage      Highest
                                                                          ...
Cross Section Comparison




 EMBRAER 170/190
                   THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRA...
E- conomics                     – Profitable by Design
                                                                   ...
Filling an Untapped Market



       Regional
       Jet Model
                                                           ...
Roll Out – EMBRAER 190




               THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COP...
EMBRAER 190 RollOut Ceremony

                                                                                            ...
EMBRAER 190 1 s t Flight

                                                                                                ...
Airline Market

  Forecast
Market Forecast 2004-2023



         World Deliveries by Segment - Jets


      Segment           2004 - 2013            ...
Market Forecast 2004-2023
30 - 1 2 0 S e a t s : 8 , 4 5 0 J e t s




   U S A ,, C a n a d a
   USA Canada
   & C a r ii...
Commercial
 Backlog
ERJ 145 Family Orderbook




 (as of December 31s t , 2003)                                                               ...
EMBRAER 170/190 Family Orderbook




      (as of December 31s t , 2003)                   Firm                       Opti...
Corporate
Aircraft Market
Status, Trends
 and Outlook
Corporate Aviation : a crowded market place

                                                                            L...
Legacy Competitive Environment

  G 1 5 0 $ 1 3,5 M




                                                                  ...
Legacy - A New, Breakthrough Concept

 Based on a proven airplane platform, The Legacy
 Family provides the ideal balance ...
Supermidsize category


                                                                     23‘8”
Challenger 300         ...
Large category



                                                                     26‘4”
 Falcon 2000                 ...
Market Forecast

                                    E m b r a e r Forecast (10yrs): 6,525 aircraft

                     ...
Defense Market
Defense Market Product Line




SUPER TUCANO   A M X- T                                         F -5 B R                  ...
International leading position for Special
Mission Aircraft




                  THE INFORMATION CONTAINED HEREIN IS THE ...
U.S. A r m y

               ACS – Aerial Common Sensor
                 RC-12
                                           ...
U.S. Navy

                   Replacement of the EP-3 Aries II

                                                          ...
Backlog &
 Delivery
 Forecast
Backlog
 US$ billion




                                                                                                 ...
Jet Deliveries




                                                                                                       ...
Deliveries Forecast

   160 expected deliveries for 2004 and 170 for 2005

                   12%
                   12%  ...
Global
Presence
Global Presence

Operations in Brazil, United States, Europe, Asia and Australia




           USA
           Nashville  ...
Roll-o u t C e r e m o n y
                                                              First Chinese made ERJ-145

     ...
Social
Responsibility
Employees

                                                                                                     12.941
   ...
Foccus on Training

      More than US$ 96 million invested in
      training and development in the last 5 years
     US$...
Health & Environment




                                                                          Environment
           ...
2003
Financial
 Results
Delivery of jets

                                                           160                  161


                  ...
Net Revenues and Gross Margin
         US$ million
                                                                       ...
Net Revenue per Segment and Market


          REVENUES PER SEGMENT                                                     GE...
Income from Operations
      US$ million
                                                                       22.3%
    ...
Net Income
            US$ million
                           12.8%
                                               11.6%
 ...
Debt

                           T o t a l D e b t of US$1,043.7 million
               Brazilian Currency
               ...
Debt Maturity
 In US$ million




                                                                                        ...
Net Cash (Debt) Position
  US$ million




                       733



                                                 ...
Short-term Trade Accounts Receivable
 US$ million




                                                                    ...
Inventories
  US$ million




                                                                                            ...
Capex and
                                                   Productivity




THE INFORMATION CONTAINED HEREIN IS THE PROP...
PP&E & R&D
 US$ million




                                                                                              ...
Planned Investments


                                 US$ million                                                       2...
THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONS...
Upcoming SlideShare
Loading in …5
×

2004 - Presentation Made In Canada With Canaccord Capital

747 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
747
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

2004 - Presentation Made In Canada With Canaccord Capital

  1. 1. Canada Analyst & Investors Meeting March 2004 Canada
  2. 2. Forward Looking Statement T h i s p r e s e n t a t i o n i n c l u d e s f o r w a r d-l o o k i n g s t a t e m e n t s o r s t a t e m e n t s a b o u t e v e n t s o r circumstances which have not occurred. W e h a v e b a s e d t h e s e f o r wa r d-l o o k i n g s t a t e m e n t s largely on our current expectations and projections about future events and financial trends affecting our business and our future financial performance. T h e s e f o r w a r d-l o o k i n g statements are subject to risks, uncertainties and assumptions, including, among other things: g e n e r a l e c o n o m i c , p o l i t i c a l a n d b u s i n e s s c o n d i t i o n s , b o th in Brazil and in our market. T h e w o r d s “ b e l i e v e s ,” “ m a y , ” “ will,” “ e s t i m a t e s ,” “ c o n t i n u e s ,” “ a n t i c i p a t e s ,” “i n t e n d s , ” “ e x p e c t s” a n d s i m i l a r w o r d s a r e i n t e n d e d t o i d e n t i f y f o r w a r d-l o o k i n g s t a t e m e n t s . We u n d e r t a k e n o o b l i g a t i o n s t o u p d a t e p u b l i c l y o r r e v i s e a n y f o r w a r d-l o o k i n g s t a t e m e n t s b e c a u s e o f n e w i n f o r m a t i o n , f u t u r e e v e n t s o r o t h e r f a c t o r s . I n li g h t o f t h e s e r i s k s a n d u n c e r t a i n t i e s , t h e f o r w a r d-l o o k i n g e v e n t s a n d c i r c u m s t a n c e s d i s c u s s e d i n t h i s p r e s e n t a t i o n might not occur. Our actual results could differ substantially from those anticipated in our f o r w a r d-l o o k i n g s t a t e m e n t s . THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  3. 3. Fundamentals Aeronautical Industry Fundamentals High Technology Qualified People Global Presence CUSTOMER SATISFACTION Cash Intensiveness Backbone of our entrepreneurial action Flexibility THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  4. 4. Airline Market Status, Trends and Outlook
  5. 5. Market Evolution - U S A Share of US Domestic Passenger Enplanements 100% 5% 9% 13% 16% 3% 7% 80% 16% 19% 60% 91% 40% 84% 71% 65% 20% 0% 1980 1990 2000 2002 Majors Low Cost/New Entrants Regionals Source: AvStat Associates, Inc. analysis of U.S. DOT data. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  6. 6. Market Evolution - Europe Share of Intra-European RPKs 100% 14% 17% 17% 17% 18% 17% 19% 19% 1% 80% 1% 1% 2% 4% 5% 8% 8% 60% 86% 82% 82% 40% 81% 79% 78% 73% 73% 20% 0% 1995 1996 1997 1998 1999 2000 2001 2002 Majors Low Cost Regionals L o w C o s t : e a s y J e t + Go + Ryanair 2002 Low Cost Data Estimated Source: AEA, ERA, ATI THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  7. 7. An Industry in Transition • F u n d a m e n t a l C o r r e c t i o n – N ot a Traditional C y c l e • D e c r e a s i n g A v e r a g e F a re V a l u e s • Decreasing Capacity (USA) • Increasing L o w C o s t C a r r i e r Critical M a s s • Increasing Regional Jet Critical Ma s s • P r e s s u r e o n E x i s t i n g W o r l d w i d e Airline M o d e l • Major USA Airlines trying to re-i n v e n t t h e m s e l v e s • Regional affiliates strongly being used as defensive tools (point-to-p o i n t X h u b a n d s p o k e ) • Low cost carriers also being inserted in the current “major” airline model THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  8. 8. Responding to Market Needs 37 Seats 44 Seats 50 Seats 50 Seats ( 2 , 0 0 0 n m r a n g e ) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  9. 9. Low Cost Networks - U S A Jan 1995 – 336 Routes Jan 2003 – 944 Routes S o u r c e : BACK OAG ( S o u t h w e s t, Jetblue, Airtran and Frontier ) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  10. 10. Low Cost Networks - Europe Jan 1995 – 18 R o u t e s Jan 2003 – 374 Routes S o u r c e : BACK OAG ( R y a n a i r, easyjet, Buzz and G O ) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  11. 11. L C C Next Steps ... ...increase capacity to match market growth, or/and expand their air services to secondary city pairs Regional Jet Model Traditional Main Line Full Service Model R Low Cost A Model Capacity S THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  12. 12. Beyond the Current Model... .... Natural Growth, or Capacity Rightsizing, There is a need for adding another component Regional Jet Model Traditional Main Line Full Service Model R E - Jet Model Low Cost A Model Capacity S THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  13. 13. T h e N e e d f o r 7 0- 1 1 0 S e a t J e t s i n t h e U S A 34 % of flights depart with loads appropriate for 100- 110 seat 27 % of flights depart aircraft with loads appropriate Percentage of Total Departure 17% 17% for 70- 80 seat aircraft 14% 13% 9% 8% 7% 4% 4% 3% 2% 2% <50 50 60 70 80 90 100 110 120 130 140 >150 S o u r c e: B a c k ( U S D O T T 1 0 0 J a n - S e p 2 0 0 2 ) Passengers per Departure THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  14. 14. Market Opportunities - Global R e p l a c e m e n t o f A g e i n g A ircraft Fleet in Service ( 61- 120 seat segment - Dec/2002) 500 453 689 aircraft with more than 20 y e a r s 400 372 (34 % of total fleet in service) 330 Number of Aircraft 304 300 277 208 200 108 100 0 0-5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 >30 Aircraft Age (Years) S o u r c e : F l e e t P C ( S c h e d u l e d A i r l i n e s , A c t i v e i n S e r v i c e a n d A l l P a s s e n g e r C o n f i g u r a t i o n) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  15. 15. E- conomics – Aircraft Commonality Fleet Management Flexibility and Load Factor Optimization 70 – 7 8 S e a t s 78 – 8 6 S e a t s 98 - 1 0 6 S e a t s 108 – 1 1 8 S e a t s THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  16. 16. Cross Section Large Baggage Highest Mockup Compartment Volume / Pax THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  17. 17. Cross Section Comparison EMBRAER 170/190 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  18. 18. E- conomics – Profitable by Design USA Environment *Based on Total Operating Cost B R E A K-EVEN* PROFIT 500 s m for EMBRAER 170/175 600 s m for EMBRAER 190/195 EMBRAER 170 78 seat 40 PAX (51%) 38 PAX EMBRAER 175 86 seats 44 PAX (51%) 42 PAX EMBRAER 190 106 seats 57 PAX (54%) 49 PAX EMBRAER 195 118 seats 62 PAX (53%) 56 PAX *Based on Total Operating Costs; Average OW net fare 500 s m USD 90; 600 s m USD 98 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  19. 19. Filling an Untapped Market Regional Jet Model Traditional Main Line Full Service Model E - Jet Model Low Cost Model New Embraer New Embraer E-Jet family E-Jet family THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  20. 20. Roll Out – EMBRAER 190 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  21. 21. EMBRAER 190 RollOut Ceremony Feb 9t h , 2004 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  22. 22. EMBRAER 190 1 s t Flight March 12th , 2004 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  23. 23. Airline Market Forecast
  24. 24. Market Forecast 2004-2023 World Deliveries by Segment - Jets Segment 2004 - 2013 2014 - 2023 2004 - 2023 30 - 6 0 1,150 1,450 2,600 61 – 9 0 1,300 1,600 2,900 91 – 1 2 0 1,250 1,700 2,950 TOTAL 3,700 (*) 4,750 8,450 (*) Open demand à approximately 2,900 a/c W o r l d ( 3 0- 1 2 0 s e a t s e g m e n t ) : 8 ,4 5 0 j e t s ( U S $ 1 8 0 billion) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  25. 25. Market Forecast 2004-2023 30 - 1 2 0 S e a t s : 8 , 4 5 0 J e t s U S A ,, C a n a d a USA Canada & C a r iib b e a n & Car bbean E u r o p e ,, Europe C h iin a Ch na 4,740 4,740 M iid d lle E a s tt M dd e Eas 635 635 56% & Africa & Africa 8% 1,970 1,970 23% Latin Latin A s iia As a A m e r iic a & Amer ca & Pacific Pacific C a r iib b e a n Car bbean 480 480 625 625 6% 7% THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  26. 26. Commercial Backlog
  27. 27. ERJ 145 Family Orderbook (as of December 31s t , 2003) Firm Firm Options Total Deliveri e s Backlog ERJ 135 122 7 129 105 17 ERJ 140 94 20 114 74 20 ERJ 145 675 475 1,150 531 144 Total 891 502 1,393 710 181 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  28. 28. EMBRAER 170/190 Family Orderbook (as of December 31s t , 2003) Firm Options Total EMBRAER 170 120 125 245 EMBRAER 190 110 150 260 EMBRAER 195 15 30 45 Total 245 305 550 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  29. 29. Corporate Aircraft Market Status, Trends and Outlook
  30. 30. Corporate Aviation : a crowded market place Legacy $21,2M G 3 0 0 $ 2 5 , 5M F2000EX $23,8M G 3 5 0 $ 2 7 , 5M G 400 $32,5M G 200 $20,2M Lear 40 $ 7,7M G 1 5 0 $ 1 3, 5 M Chal300 $17,4M G 4 5 0 $ 3 3 , 0M SJ30 $5,5M CJ3 $6,0M Lear45 $10,3M G 100 $11,8M F 50EX $20,0M G LOB 5000$33,5M G LOB Exp$44,4M Premier $5,6M Lear 31 $6.6M L 45XR $10,8M Lear 60 $12,7M F 2000 $22,6M Chal 6 0 4 $ 2 4 , 9 M F 7X $35,8M BBJ1 $52M CJ1 $4,0M B 400A $6,6M Encore $7,6M 800XP $13,0M Horiz $18,0M F 900C $30,4M G 5 0 0 $ 3 7 , 5M BBJ2 $65M CJ2 $5,2M Bravo $5,7M ExXLS $10,2M S overeign $13,5M Cit X $19,4M F900EX $34,3M G 550 $45,8M ACJ $47M ENTRY LIGHT MID LIGHT MID SIZE SUPER MID SIZE LARGE U L O N G R A N G E GLOBAL Note: Prices - B C & A M a y 0 3 Except for G 350 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  31. 31. Legacy Competitive Environment G 1 5 0 $ 1 3,5 M G350 $27,5M G300 $25,5M G 1 0 0 $ 1 1,8 M F 2000 EX $23,8M LEGACY $21,2M G450 $33,0M G400 $32,5M L e a r 6 0 $ 1 2,7 M Chal 300 $17,4M G 200 $20,2M Chal 604 $24,9M Glob5000 $33,5M 800 XP $13,0M F 2000 $22,6 M F 50 EX $20,0M Sovereign $ 1 3, 5 M Citation X $19,4M Horizon $18,0 M F900EX $34,3M F900C $30,4M MID SIZE SUPER M I D- S I Z E LARGE Note: Prices - B C & A M a y 0 3 Except for G 350 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  32. 32. Legacy - A New, Breakthrough Concept Based on a proven airplane platform, The Legacy Family provides the ideal balance of comfort, performance and cost in three versions: • Executive • Shuttle • Shuttle HC THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  33. 33. Supermidsize category 23‘8” Challenger 300 (7,22m) Horizon 25‘ (7,62m) 24‘6” G200 (7,46m) 42’6” (12,94m) ft 10 20 30 40 50 m 3 6 9 12 15 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  34. 34. Large category 26‘4” Falcon 2000 (8,01m) 41’ G400 (12,49m) 42’6” (12,94m) ft 10 20 30 40 50 m 3 6 9 12 15 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  35. 35. Market Forecast E m b r a e r Forecast (10yrs): 6,525 aircraft Category Deliveries Super Mid- S i z e 1,250 Large 900 M i d- S i z e 975 Other segments 3,400 GLOBAL GLOBAL ENTRY ULTRALONG 2% ENTRY 5% 4% LIGHT R A N G E 9% 15% 6% ULTRALONG MIDLIGHT RANGE 5% 20% L A R G E 12% LIGHT MIDSIZE 15% 15% SUPER MIDLIGHT 21% LARGE MIDSIZE 10% 22% S U P E R 23% M I D S I Z E1 6 % MIDSIZE Deliveries Share Revenue Share THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  36. 36. Defense Market
  37. 37. Defense Market Product Line SUPER TUCANO A M X- T F -5 B R M2000 BR ERJS/LEGACY EMB 145 AEW&C EMB 145 RS/AGS E M B 1 4 5 M P / A S W ( P- 9 9 ) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  38. 38. International leading position for Special Mission Aircraft THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  39. 39. U.S. A r m y ACS – Aerial Common Sensor RC-12 Replacement of the R C-12 and R C-7 by a single and more capable platform RC-7 EMBRAER is teamed with Lockheed Martin for the A C S Program THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  40. 40. U.S. Navy Replacement of the EP-3 Aries II The U.S. Navy joined the U.S. Army’s A C S Program in July 2003 E M B R A E R i s teamed with Lockheed Martin for the EP- 3 Replacement Program THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  41. 41. Backlog & Delivery Forecast
  42. 42. Backlog US$ billion 28.1 Options 24.1 23.4 Firm Orders 22.2 17.7 17.5 12.7 12.7 13.2 11.3 4.1 11.4 10.7 10.6 9.0 3.0 6.4 1.2 4.1 3.0 1.2 1996 1997 1998 1999 2000 2001 2002 2003 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  43. 43. Jet Deliveries 170 160 161 160 131 96 101 59 32 4 1996 1997 1998 1999 2000 2001 2002 2003 2004 E 2005 E THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  44. 44. Deliveries Forecast 160 expected deliveries for 2004 and 170 for 2005 12% 12% 15% 15% 35% 35% 37% 37% 53% 53% 48% 48% 2004 2004 2005 2005 ERJ 145 Family ERJ 145 Family E M B R A E R 1 7 0 F a m iilly EMBRAER 170 Fam y Corporate Corporate THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  45. 45. Global Presence
  46. 46. Global Presence Operations in Brazil, United States, Europe, Asia and Australia USA Nashville China Palm Beach Gardens Fort Lauderdale France Beijing Le Bourget Harbin Singapore Singapore Brazil Gaviã o Peixoto Botucatu Australia Melbourne Sã o José d o s C a m p o s THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  47. 47. Roll-o u t C e r e m o n y First Chinese made ERJ-145 D e c 1 6 th , 2 0 0 3 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  48. 48. Social Responsibility
  49. 49. Employees 12.941 12.227 11.048 10.334 8.302 This Year: 6.737 780 Employees 4.494 3.849 1996 1997 1998 1999 2000 2001 2002 2003 BRAZIL 12.086 AUSTRALIA 09 CHINA 165 USA 482 EUROPE 189 Singapore 10 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  50. 50. Foccus on Training More than US$ 96 million invested in training and development in the last 5 years US$ million 21 25 18 18 14 1999 2000 2001 2002 2003 In–house courses: • 18 - month graduate course in Aeronautical Engineering • 2 - year MBA course focused on international trade THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  51. 51. Health & Environment Environment ISO 14001 Certificate (Mar/2002) Health & Security Certification OHSAS 18001 (Mar/2002) THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  52. 52. 2003 Financial Results
  53. 53. Delivery of jets 160 161 131 101 96 59 32 4 1996 1997 1998 1999 2000 2001 2002 2003 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  54. 54. Net Revenues and Gross Margin US$ million 39.6% 39.4% 32,0% 37.7% 32,0% 28,3% 2,927.0 2,762.2 2,525.8 2,143.5 1,837.3 1,353.5 1998 1999 2000 2001 2002 2003 77% 36% 50% 6% -1 4 % -1 5 % Annual Variation THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  55. 55. Net Revenue per Segment and Market REVENUES PER SEGMENT GEOGRAPHIC BREAKDOWN FY2003 FY 2003 Brazil 5% Customer Commercial Services and Aviation other related 69% business 8% Executive Aviation Exports 11% 95% Defense Aviation 12% THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  56. 56. Income from Operations US$ million 22.3% 20.0% 18.6% 16.7% 651.4 12.7% 462.1 469.6 12.8% 368.0 274.9 171.7 1998 1999 2000 2001 2002 2003 Annual 250% 114% 26% 41% -2 8 % -4 1 % Variation THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  57. 57. Net Income US$ million 12.8% 11.6% 11.2% 10.7% 320.7 328.4 8.8% 234.5 222.6 6.3% 145.3 136.0 1998 1999 2000 2001 2002 2003 Annual Variation 4,618% 61% 37% 2% -3 2 % -3 9 % THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  58. 58. Debt T o t a l D e b t of US$1,043.7 million Brazilian Currency 24% Foreign Currency 76% Considering Currency Swaps: Average cost in R$ = 16.7% pa (76.5% CDI) Average cost in US$ = 4.6 % pa THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  59. 59. Debt Maturity In US$ million Short Term 50% Long Term 50% 517 101 1044 105 115 206 Total Short Term 2005 2006 2007 2008 on Loan Average Maturity : 2 years and 2 months THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  60. 60. Net Cash (Debt) Position US$ million 733 222 104 43 -22 (212) (178) -333 -415 1998 1999 2000 2001 2002 Mar.31, June Sep.31, Dec.31, 2003 31,2003 2003 2003 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  61. 61. Short-term Trade Accounts Receivable US$ million 981 913 790 736 597 356 160 117 1999 2000 2001 2002 Mar.31,2003 June 30, Sep. 30, Dec. 31, 2003 2003 2003 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  62. 62. Inventories US$ million 1127 1173 1038 1021 1029 880 773 616 1999 2000 2001 2002 Mar. 31, June 30, Sep. 30, Dec. 31, 2003 2003 2003 2003 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  63. 63. Capex and Productivity THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  64. 64. PP&E & R&D US$ million 173.2 PP&E 158.5 143.8 R&D 114.2 113.7 111.0 69.6 64.8 60.1 18.8 1999 2000 2001 2002 2003 THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  65. 65. Planned Investments US$ million 2004 2005 R&D Total 174 119 - Commercial Aviation 139 72 - Corporate Aviation 16 27 - Others 19 20 Defence 42 54 Productivity and PP&E 64 81 TOTAL 280 254 D e f e n c e I n v e s t m e n t s a r e f u n d e d b y t h e i r c o n t r a c t s a n d are n o t i n c l u d e d in the R & D e x p e n s e s, b u t in C o s t o f S a l e s a n d S e r v i c e s. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.
  66. 66. THE INFORMATION CONTAINED HEREIN IS THE PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR USED WITHOUT EMBRAER’S WRITTEN CONSENT.

×