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7th Annual U.S.
 Analyst & Investor
      Meeting


       Luís Carlos Affonso
Embraer Executive Vice-President, Executive...
Market Overview
Industry - New Jets Deliveries in 2006

  OEMs                                            2005             2006           ...
Shifting demand towards non-traditional markets


  Russia                                             Honeywell Survey
  ...
Embraer Forecast - Main Demand Drivers
      Stock Market               Macro-economic factors                        Corp...
“Premium” customers are under served
                  USA                              Europe
           5%     12%      ...
Hassle factor: growing delays

Congestion
 USA
   73% of pax at 35 hubs
   90% of delays at main hubs
 Europe
            ...
Current Offer – Charter vs. Airline
                                                                                      ...
Industry answer: business models evolution

                                                             Cost             ...
2007-2016 Market Forecast (deliveries) - World

        Product Categories                                Units           ...
2007-2016 Forecasted Delivery Profile


                         ULTRA LARGE                                              ...
Vision



 To become a major player in the Business Aviation Market by
 2015 through innovative and differentiating produc...
Embraer Product Portfolio
                                  Lineage 1000®
                                           2008
...
®
Legacy 600
Legacy 600® – Floor Plan and Performance
                                                                                 ...
Legacy 600® – Differential Features




                                     HSD – Wifi            Sound Quality Improved
...
The world discovers the Legacy 600®




                                                       March 2007


        100 ai...
Market share - super midsize category

                                                    15%
                           ...
®
Phenom 100
Phenom 100® - Interior Design




                                illustrative purposes only
Phenom 100® - Floor Plan and Performance

                                                                               B...
Clients Testimony

                    “Combined with their great reputation for quality and durability,
                 ...
First Phenom 100® Assembly




                                                  illustrative purposes only

    Fuselage ...
First Phenom 100® Assembly

               Fuselage & wing junction




                                          28 Mar 2...
®
Phenom 300
Phenom 300® - Interior Design




    by


                                illustrative purposes only
Phenom 300® - Floor Plan and Performance

                                                                                ...
Phenom 300® - Totally New Designed Aircraft




                                                              illustrative...
Phenom 300® - Expert Opinion




                               illustrative purposes only
Phenom 300® - First Metal Cut




                                27 Mar 2007

                                    illustr...
The world also discovers the Phenom Jets




                                                                  December 20...
®
Lineage 1000
Lineage 1000® - Interior
                           illustrative purposes only
Lineage 1000® - Interior Flexibility
 Layout Configuration – flexibility            Preliminary data
                     ...
Lineage 1000® - Interior
                           Designed by




   Produced by
                                       ...
Lineage 1000® - Interior
                           Designed by




   Produced by
                                       ...
Lineage 1000® - Interior
                           Designed by




   Produced by
                                       ...
Lineage 1000® - Interior
                           Designed by




   Produced by
                                       ...
Lineage 1000® - Interior
                           Designed by




   Produced by
                                       ...
Lineage 1000® - Interior
                           Designed by




   Produced by
                                       ...
Lineage 1000® - Performance




                                                                                          ...
Customer Support & Services
Customer Support & Services - Vision



   To become a leading Support & Services provider in the
    Business Aviation Ma...
Building Up Experience




                                                     Integrated Solutions



                  ...
Customer Support Solution (NBAA 2006)
   Service Centers Network - global coverage
      4 new owned service centers: 3 in...
Service Network for Embraer Executive Jets

                        Worldwide Network (middle 2008): 45 Service Centers


...
Sales Financing Solutions
Sales Financing Solutions

                       Embraer announced a joint referral program with
                       B...
Sales and Production Plan




           Results and Production Plan
Results - Embraer Executive Jets

   Revenues               Executive Aviation     Bookings
   (US$ billion)            Sh...
Expected Production Plan - Legacy 600®


     2004    2005    2006     2007
     13       20      27     25 - 30     (unit...
Expected Production Plan - Jatos Phenom


                                       2008

                Phenom 100®        ...
Expected Production Plan - Lineage 1000®


        2008     2009
       up to 2   3-4    (units)




                     ...
Thank You !
This presentation is the property of Embraer - Empresa Brasileira de Aeronáutica S.A. ("Embraer") and shall
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2007 - 7th Annual U.S. Analyst & Investor Meeting Market Orverview Executive Aviation

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2007 - 7th Annual U.S. Analyst & Investor Meeting Market Orverview Executive Aviation

  1. 1. 7th Annual U.S. Analyst & Investor Meeting Luís Carlos Affonso Embraer Executive Vice-President, Executive Aviation New York - April 11th, 2007
  2. 2. Market Overview
  3. 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. 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. 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. 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. 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. 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 $0 0 100 200 300 400 500 600 700 Stage Length (nm) Sources: The Air Charter Guide; Expedia The right VLJ can fill the gap
  9. 9. Industry answer: business models evolution Cost Branded Charter New Business models Air Taxi Traditional Ownership Aircraft Management Fractional Ownership Jet cards memberships Used Fractional Charter On-Demand Scheduled Charter WONDAIR “Bizav” Airline Commercial Aviation Source:: Embraer (adapted from Jet Solutions)
  10. 10. 2007-2016 Market Forecast (deliveries) - World Product Categories Units US$ 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. 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. 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. 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
  14. 14. ® Legacy 600
  15. 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. 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. 17. The world discovers the Legacy 600® March 2007 100 aircraft, 19 countries, the right choice
  18. 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
  19. 19. ® Phenom 100
  20. 20. Phenom 100® - Interior Design illustrative purposes only
  21. 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. 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. 23. First Phenom 100® Assembly illustrative purposes only Fuselage & wing arrival at Main Plant (SJK)
  24. 24. First Phenom 100® Assembly Fuselage & wing junction 28 Mar 2007 illustrative purposes only
  25. 25. ® Phenom 300
  26. 26. Phenom 300® - Interior Design by illustrative purposes only
  27. 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. 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. 29. Phenom 300® - Expert Opinion illustrative purposes only
  30. 30. Phenom 300® - First Metal Cut 27 Mar 2007 illustrative purposes only
  31. 31. The world also discovers the Phenom Jets December 2006 More than 350 firm orders in 24 countries illustrative purposes only
  32. 32. ® Lineage 1000
  33. 33. Lineage 1000® - Interior illustrative purposes only
  34. 34. Lineage 1000® - Interior Flexibility Layout Configuration – flexibility Preliminary data illustrative purposes only
  35. 35. Lineage 1000® - Interior Designed by Produced by illustrative purposes only
  36. 36. Lineage 1000® - Interior Designed by Produced by illustrative purposes only
  37. 37. Lineage 1000® - Interior Designed by Produced by illustrative purposes only
  38. 38. Lineage 1000® - Interior Designed by Produced by illustrative purposes only
  39. 39. Lineage 1000® - Interior Designed by Produced by illustrative purposes only
  40. 40. Lineage 1000® - Interior Designed by Produced by illustrative purposes only
  41. 41. Lineage 1000® - Performance Preliminary Data - illustrative purposes only Range* 4,200 nm Max ceiling 45,000 ft MMO Mach 0.82 TOFL** 6,660 ft * 8 passengers @ 200 lb, NBAA IFR reserves (200 nm alternative, 35 min of holding @ 5,000 ft)) ** MTOW, ISA, Sea Level
  42. 42. Customer Support & Services
  43. 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. 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. 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. 46. Service Network for Embraer Executive Jets Worldwide Network (middle 2008): 45 Service Centers 7 Embraer Wholly Owned 38 Authorized Service Centers Preliminary Data
  47. 47. Sales Financing Solutions
  48. 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
  49. 49. Sales and Production Plan Results and Production Plan
  50. 50. Results - Embraer Executive Jets Revenues Executive Aviation Bookings (US$ billion) Share of Total (US$ billion) ~ 2.0 Embraer Revenue (%) 0.6 ~ 0.6 0.3 15.3% 7.3% 2005 2006 2005 2006 2005 2006 US GAAP unaudited numbers
  51. 51. Expected Production Plan - Legacy 600® 2004 2005 2006 2007 13 20 27 25 - 30 (units) Legacy 600® illustrative purposes only
  52. 52. Expected Production Plan - Jatos Phenom 2008 Phenom 100® 15 - 20 (units) 2009 120 - 150 (units) Phenom 100® & Phenom 300® illustrative purposes only
  53. 53. Expected Production Plan - Lineage 1000® 2008 2009 up to 2 3-4 (units) Lineage 1000® illustrative purposes only
  54. 54. Thank You !
  55. 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.

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