2. This information is property of Embraer and can not be used or reproduced without written permission.
Sales of Super Tucano to the US Air Force
Several Achievements in Recent Years
KC-390 Program
Brazilian Satellite Program
Sisfron Pilot Project
Brazilian F-39 Gripen Program
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YTD
Sep
CAGR
15%
Revenue
Evolution
(US$ Millions)
Ref.: Sep, 2015.
New Challenges Started in 2015
4. This information is Embraer property and can not be used or reproduced without written authorization.
$ 1,100 - $1,250
$ 800 - $950
Revenue
Reduction
(US$ Millions)
50% BRL
depreciation
year to date
Ref.: Sep, 2015.
Major Impacts in 2015
5. This information is property of Embraer and can not be used or reproduced without written permission.
Ref.: Sep, 2015
2015E2014
*Atech
Bradar
Savis
Visiona
Diversified Portfolio of Products
Revenues Breakdown by Product
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Backlog
Evolution
(US$ Billion)
Ref.: Sep, 2015.
Solid Backlog Despite 2015 Decline
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Book to Bill
Above 1 X
Ref.: Sep, 2015.
50% BRL devaluation
year to date
Backlog Reduction Driven by FX
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Main Focus
Finalize KC-390 Development
Improve Operational Efficiency
Increase International Sales
Adjust Programs to Brazilian Government Budget
9. This information is property of Embraer and can not be used or reproduced without written permission.
Main Focus
Adjust Programs to Brazilian Government Budget
10. This information is property of Embraer and can not be used or reproduced without written permission.
High Exposure to Brazil
* Estimated
Revenue Breakdown by Region
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AM-X (A1-M)
A-4 (AF-1)
F-5
AEW&C
5 a/c - (TBD)
Scaling Down Aircraft Modernization Programs
Reduced from 43 to 14 a/c
12 a/c
1st batch
46 a/c - delivered
2nd batch
Reduced from 11 to 03 a/c -
ongoing
12. This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the companyThis information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company
Border Control & Protection (Sisfron)
• Integrated Systems Deployed and in Operation
• May 25th, 2015: demo to military attaches of 17 countries
13. This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company
Satellite & Remote Sensing
Brazil Satellite Development
• Communication module mating (payload): 4th Quarter 2015
• Satellite Vibration Test conclusion: 1st Quarter 2016
• Launch Window: September 2016 to February 2017
Satellite Remote Sensing
• Imagery service to develop large remote sensing projects in Brazil and abroad
• One contract already signed
14. This information is property of Embraer and can not be used or reproduced without written permission.
Main Focus
Complete KC-390 Development
Adjust Programs to Brazilian Government Budget
15. This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company
KC-390 Development: New Export Platform
• Around 85% of development concluded.
• Resumption of flight test campaign.
• Certification: From year end 2016 to 2H2017
• First delivery to Brazilian Air Force: From 1H2017 to 1H2018
16. This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company
KC-390: Certification Process Advances
Ground Test Vibration Successfully Completed
17. This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company
Finalize KC-390 Development
Increase International Sales
Adjust Programs to Brazilian Government Budget
Main Focus
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Broad Portfolio of Defense & Security Products
19. This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company
C2
VSAT
AIR
SURV.RADAR
GROUND
RADAR
SECONDARY
RADAR
VHF
RADIO
(voice)
C2
C2 MOBILE
GROUND
RADARVSAT
C2 FIXED
SATCOM
HUB
C2
VOICE
COMMUNICATION
ATC BACKUP
TRAINING CENTERC3I CENTER
MAIN ATC SYSTEMMETEO
Legacy
Super
Tucano
Combined Sales Strategy
VHF
RADIO
(voice)
AIR
SURV.
RADAR
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Photo: Senior Airman Ryan Callaghan/USAF
SUPER TUCANO – LAS
• Aircraft selected and contracted by the United States Air Force.
• 20 aircraft to be assembled at Jacksonville, FL.
• 12 aircraft delivered as of Oct 2015.
• High Fleet Availability.
This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the companyThis information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company
Super Tucano: US Light Air Support Program (LAS)
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High demand for Light Attack Platforms
SUPER TUCANO
99
25
8
12
18
16
21
Mali: 6 (NEW)
Ghana: 5 (NEW)
3
6
2
Super Tucano: Expanding our Footprint
Total Firm Orders
221
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KC–390: Multitask Aircraft with Global Penetration
• Fire fighting
• Military Transport
• Air-to-Air Refueling
• Search and Rescue
• Medical Evacuation
• Humanitarian Aid
Missions
• Troop & Cargo
Airdropping
>>
Letters of intent from
5 countries for 32 aircraft.
Launch customer:
Brazilian Air Force 28 firm orders
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Embraer Service and Support Footprint
Increasing Global Service Revenues
• 58 Contracts in place (+ 23% YoY)
• Backlog US$ 470 million (+ 77% YoY)
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New Brazilian Fighter (F-39 Gripen)
Contract between Embraer and Saab effective and running
First group of 44 people in Sweden to ToT process – Oct 2015
This information is the property of Embraer Defense & Security and may not be used or reproduced without written authorization from the company
• Contract between Embraer and Saab finalized (effective and running) – Sep 2015
• First group of 44 Brazilian engineers in Sweden – Oct 2015
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SABER-M60
2011
2011
OrbiSAR – RFP
2014
SENTIR-M20 SABER-S200R
2015
SABER-M200 SABER-M200VIG
2017
COMINT
2015
2014
BradarSAR 3000
2016
2016
SAD
2017
GRADE
Radar Portfolio Expansion
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SKYFLOW AFTM (INDIA) - Air Traffic Flow Management Systems (ATFM)
42% deployed
Phase I SAT finalized
Traffic Monitoring System
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OGMA: Bigger Portfolio & Diversification
Service portfolio evolution and diversification
(New MRO production line for commercial and executive aviation
aftermarket reinforcement)
Investments in service capabilities
(Construction of a new state of the art painting hangar, Ultra-High Pressure Waterjet
Stripping for engine manufacturing)
Increasing aero structures manufacturing capabilities
(Acquisition of an Automated Riveting Machine, new production methods and
5 Axe Automated Machine)
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Main Focus
Finalize KC-390 Development
Improve Operational Efficiency
Increase International Sales
Adjust Programs to Brazilian Government Budget
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Modernization
A4, AMX and F-5
Final Assembly STStructural Assembly
Wings: ST, KC-390
Fuselage: KC-390
Final Assembly
KC-390
GPX Plant: Operational Gains
• Concentrate Operating Activities in the Gavião Peixoto (GPX) Site
• KC-390: Structure and Final Assembly Lines
• Gripen: New Gripen Design and Development Network
Gripen
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Production cycle reduced by 40%
Efficiency Gains: Super Tucano Example
• Significant improvement in inventory turnover
• Lower production lead time
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KC-390: Cost Reduction Initiatives
• Engineering costs: Fewer subcontractors and relocation to F-39 Gripen / E-2 Program.
• Production costs: Relocation to the E-2 Development Program.
• Administrative expenses: Downsized after reschedule.
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KC-390: Resumption of Flight Test Campaign
October 26th, 2015
