Embraer Day 2012 Melbourne Executive

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Embraer Day 2012 Melbourne Executive

  1. 1. Embraer Day Ernest Edwards President, Embraer Executive JetsOctober 2nd, 2012 This information is the property of Embraer and cannot be used or reproduced without written consent.
  2. 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.This information is the property of Embraer and cannot be used or reproduced without written consent.
  3. 3. Melbourne – Florida, USAThis information is the property of Embraer and cannot be used or reproduced without written consent.
  4. 4. Melbourne – Florida, USA  US$ 50 million invested  Customer Design Center for all models  Sales & Marketing headquarters  Employment of at least 200 workers  Investment of US$ 50 million Assembly line Customer Center Final assembly for the Phenoms  Customer Design Center for all models Paint booth  DeliveriesThis information is the property of Embraer and cannot be used or reproduced without written consent.
  5. 5. Melbourne – Florida, USA New, state-of-the-art, 67,000 ft² facility: announced on March 21st, 2012  R&D for product and technology across Embraer’s business lines  Initial focus on interiors, including materials testing laboratory  200 new skilled jobs Engineering and Technology CenterThis information is the property of Embraer and cannot be used or reproduced without written consent.
  6. 6. People employment status 233 MLB Employees (160 Production Employees) Mfg Engineers Product Engineers Quality Engineers Logistics Assembly Technicians Quality Inspectors Finance Facilities / IT Contracts Sales Marketing Flight Engineers Pilots Average 17 Years of ExperienceThis information is the property of Embraer and cannot be used or reproduced without written consent.
  7. 7. First Melbourne assembled Phenom 100 MLB001 Delivery: December 19, 2011This information is the property of Embraer and cannot be used or reproduced without written consent.
  8. 8. Phenom 100 delivered 2012MLB002 MLB006Delivery: February 15, 2012 Delivery: June 22, 2012MLB003 MLB007Delivery: March 30, 2012 Delivery: June 29, 20121st Canada ExportMLB004 MLB008Delivery: April 25, 2012 Delivery: Aug 24, 2012MLB005 MLB009Delivery: June 21, 2012 Delivery: Sep 20, 20121st Mexico Export This information is the property of Embraer and cannot be used or reproduced without written consent.
  9. 9. FAA Production Certification – Phenom 100 June 18, 2012This information is the property of Embraer and cannot be used or reproduced without written consent.
  10. 10. First Phenom 300This information is the property of Embraer and cannot be used or reproduced without written consent.
  11. 11. Embraer Enterprise Excellence ProgramThis information is the property of Embraer and cannot be used or reproduced without written consent.
  12. 12. Best company to work for RANK COMPANY HEADQUARTERS INDUSTRY 1 North Highland Atlanta - 4 Fla. offices Consulting 2 American Strategic Insurance St. Petersburg Insurance 3 RCI Parsippany, N.J. - Travel/hospitality 1 Fla. office 4 Foley & Mansfield Minneapolis - Legal 1 Fla. office 5 FCCI Insurance Group Sarasota Insurance 6 PCL Civil Constructors/PCL Denver - 2 Fla. offices Construction Construction Services 7 Latin America & Caribbean Miami Transportation Division of FedEx Express 8 Aerotek Hanover, Md. - Staffing 12 Fla. offices 9 Hunton & Williams Richmond, Va. - Legal 1 Fla. office 10 Edward Jones Louisville, Ky. - Financial services 387 Fla. offices 11 DPR Construction Redwood City, Calif. - 1 Fla. office Construction 12 Embraer Fort Lauderdale Aerospace 13 Navy Federal Credit Union Vienna, Va. - 1 (19 branches) Banking 14 Residential Finance Corp. Columbus, Ohio - Financial services 4 Fla. offices Key Factors in winning this award 15 Total Quality Logistics Cincinnati - 2 Fla. offices Transportation 16 Jones Lang LaSalle Chicago - 10 Fla. offices Real estate  TRUST the people they work for 17 Memorial Healthcare System Hollywood, Fla. Health care  18 Gunster, Attorneys at Law West Palm Beach Legal Have PRIDE in what they do 19 Gaylord Palms Resort & Convention Center Kissimmee Hotel/hospitality 20 Embry-Riddle Aeronautical Daytona Beach Education  University ENJOY the people they work with 21 Quarles & Brady Milwaukee - 2 Fla. offices Legal 22 Arthrex Naples Medical devices 23 Capital City Bank Tallahassee Banking 24 JHT Orlando Technology 25 STS Aviation Group Jensen Beach Aviation 2012 Rating #12, 2011 Rating #28 26 Peak 10 Charlotte, N.C.- 3 Fla. offices Technology 27 Butler Pappas Weihmuller Tampa Legal Katz CraigThis information is the property of Embraer and cannot be used or reproduced without written consent.
  13. 13. This information is the property of Embraer and cannot be used or reproduced without written consent.
  14. 14. EXECUTIVE JETSMARKET OUTLOOKThis information is the property of Embraer and cannot be used or reproduced without written consent.
  15. 15. World GDP growth rates 5% FORECAST 4% 3.8% 3.0% 3%Real GDP Growth Rate (yoy) 2% 2.1% 1% 0% -1% -2% -3% 2002 2004 2006 2008 2010 2012 2014 2016 Source: The Economist, July 2012 This information is the property of Embraer and cannot be used or reproduced without written consent.
  16. 16. U.S. Corporate Profits $2,500 2,112 $2,000 Billions of dollars $1,500 $1,000 $500 $0 Q2 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 New record levelSource: BEA – Bureau of Economic Analysis and Embraer estimates – Apr 2012Note: numbers are seasonally adjusted at annual ratesThis information is the property of Embraer and cannot be used or reproduced without written consent.
  17. 17. Worldwide HNWI population 12 10 8 Millions of HNWI Africa Middle East 6 Latin america Asia-Pacific 4 Europe North America 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 New record levelSource: World Wealth Report, 2012This information is the property of Embraer and cannot be used or reproduced without written consent.
  18. 18. Worldwide HNWI wealth $45.0 1.1 $40.0 1.7 $35.0 7.1HNWI Wealth (US$ trillions) $30.0 Africa 10.1 $25.0 Middle East Latin America $20.0 Europe 10.7 $15.0 Asia-Pacific North America $10.0 $5.0 11.4 $0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 North America is still the wealthiest region Source: World Wealth Report, 2012 This information is the property of Embraer and cannot be used or reproduced without written consent.
  19. 19. Business jet traffic – USA 230 220 210Flights per month (1000X) 200 2007 190 2008 180 2009 170 2010 2011 160 2012 150 140 130 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: FAA and Argus – August 2012This information is the property of Embraer and cannot be used or reproduced without written consent.
  20. 20. Business jet traffic – Europe 60 55Flights per month (1000X) 50 2007 45 2008 2009 40 2010 2011 35 2012 30 25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Eurocontrol – August 2012This information is the property of Embraer and cannot be used or reproduced without written consent.
  21. 21. Business Jets Used Market Inventory 3,500 28% 13.3% 8.7% Fleet older than 10 yrs Fleet from 6 to 10& positions up to 10 yrs yrs 2493 jets 718 jets 3,000 24% Total fleet % for sale Up to 10 yrs % for sale 2,500 20% % of active fleet 2,000 16%Units 1,500 12% 1,000 8% 500 4% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 00 01 02 03 04 05 06 07 08 09 10 11 12 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Improvement halted Source: Jetnet & Embraer analysis – Sep 2012 This information is the property of Embraer and cannot be used or reproduced without written consent.
  22. 22. Market recovery in slow motion  US Corporate profits at record levels  HNWI at record levels  World GDP growth is moderate  Used market slowly improving  Traffic recovery on track but slower than expected  European markets still at riskThis information is the property of Embraer and cannot be used or reproduced without written consent.
  23. 23. 2013-2022 Market Forecast New Jets Deliveries Values 40 2013-2022 Forecast 35 Slow GrowthE.C. 2012 US$ Bi 30 9,300 units US$ 246 billion 25 20 Continued Crisis 15 7,870 units US$ 205 billion 10 5 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Source: Embraer This information is the property of Embraer and cannot be used or reproduced without written consent.
  24. 24. 2013-2022 Market Forecast EMEA 2,180 to 2,700 a/c (29%)North America US$ 75 to 82 Bi (34%)4,000 to 4,300 a/c (46%)US$ 89 to 107 Bi (43%) China 440 to 650 a/c (7%) US$ 16 to 24 Bi (9%) Asia Pacific 590 to 930 a/c (10%) US$ 15 to 24 Bi (9%) Latin America 620 to 700 a/c (8%) US$ 9.7 to 11 Bi (5%) Worldwide 7,870 to 9,300 a/c US$ 205 to 246 BiSource: Embraer Analysis – world total may differ due to rounding Note: Sum of regional numbers might differ from total numbers due to roundingThis information is the property of Embraer and cannot be used or reproduced without written consent.
  25. 25. EMBRAER EXECUTIVE JETSOVERVIEWThis information is the property of Embraer and cannot be used or reproduced without written consent.
  26. 26. 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.This information is the property of Embraer and cannot be used or reproduced without written consent.
  27. 27. Embraer Executive Jets China Harbin Portugal Évora USA Melbourne Brazil São José dos Campos Gavião Peixoto Eugênio de Melo Botucatu Manufacturing plants - Global positioningThis information is the property of Embraer and cannot be used or reproduced without written consent.
  28. 28. Embraer – Legacy 650 assembly in China  Signed agreement with the Chinese Government in June  Use of the infrastructure and workforce of HEAI – Embraer and AVIC JV  On target for 1st Legacy 650 delivery in 4Q13This information is the property of Embraer and cannot be used or reproduced without written consent.
  29. 29. PRODUCT OVERVIEWThis information is the property of Embraer and cannot be used or reproduced without written consent.
  30. 30. Embraer product portfolio Ultra-Large EIS 2009Ultra-Long Range Large EIS 2010 Super Mid-Size EIS 2002 Mid-Size IN DEVELOPMENT Mid-Light Light EIS 2009 Entry EIS 2008This information is the property of Embraer and cannot be used or reproduced without written consent.
  31. 31. PHENOM 100This information is the property of Embraer and cannot be used or reproduced without written consent.
  32. 32. Phenom 100 6 to 8 occupants 1,178 nm * Mach 0.70 Mmo / 390 ktas High Speed Cruise Interior design in partnership with BMW DesignworksUSA Roomiest cabin in class and Oval Lite® cross section concept Largest baggage capacity in class State-of-the-art Prodigy Flight Deck 100 Lower operating cost than competitors, including turboprops Winner Robbs Reports Best of the Best award in 2008, 2010, 2011 and 2012 * 4 occupants @ 200lb each, NBAA IFR rangeThis information is the property of Embraer and cannot be used or reproduced without written consent.
  33. 33. Melbourne – Phenom 100 Assembly 1st Flight on Dec 8th 1st Delivery on Dec 20thThis information is the property of Embraer and cannot be used or reproduced without written consent.This information is the property of Embraer and cannot be used or reproduced without written consent.
  34. 34. Phenom 100 fleet distribution 245+ aircraft in operationSource: Jetnet Sep. 2012 This information is the property of Embraer and cannot be used or reproduced without written consent.
  35. 35. PHENOM 300This information is the property of Embraer and cannot be used or reproduced without written consent.
  36. 36. Phenom 300 8 to 11 occupants 1,971 nm * Mach 0.78 MMO / 453 ktas High Speed Cruise  Intelligent Design – BMW DesignworksUSA  State-of-the-art Prodigy Flight Deck 300  Outstanding performance  Low operating costs and low acquisition price  Winner Robbs Reports Best of the Best in 2011 and 2012  Winner FLYING Magazine Editors Choice Award in 2010 * 6 occupants @ 200lb each, NBAA IFR rangeThis information is the property of Embraer and cannot be used or reproduced without written consent.
  37. 37. First Melbourne assembled Phenom 300This information is the property of Embraer and cannot be used or reproduced without written consent.
  38. 38. Phenom 300 fleet distribution 90+ aircraft in operationSource: Jetnet Sep. 2012 This information is the property of Embraer and cannot be used or reproduced without written consent.
  39. 39. LEGACY 500 & LEGACY 450This information is the property of Embraer and cannot be used or reproduced without written consent.
  40. 40. Legacy 450 & 500 7 to 9 passengers 8 to 12 passengers Mach 0.82 High Speed Cruise 2,300 nm * 3,000 nm * Six-foot stand-up cabin with flat floor The largest cabin and baggage compartment in class Excellent airport performance Rockwell Collins Pro Line Fusion avionics platform Honeywell HTF 7500E engines Full Fly-by-Wire (FBW) flight controls - unique in their classes * 4 pax @ 200lb each, NBAA IFR res.This information is the property of Embraer and cannot be used or reproduced without written consent.
  41. 41. Interior Design Illustrative purposes onlyThis information is the property of Embraer and cannot be used or reproduced without written consent.
  42. 42. Legacy 500/450 FBW benefits A New Paradigm for the Segment  Improves performance  Weight savings  Smoother flight for crew and passengers  Complete envelope protection in all phases of flight  Reduces crew workload and increased pilot control Only jets in their categories to use FBW technology This information is the property of Embraer and cannot be used or reproduced without written consent.This information is the property of Embraer and cannot be used or reproduced without written consent.
  43. 43. Legacy 500 Program Summary  800+ Embraer engineers engaged  Over 8,000 systems’ tests hours performed  2,500 hours only on the Iron Bird logged  Assembly of three prototypes completed Legacy 500 first flight in 2012 and entry into service in 2014 This information is the property of Embraer and cannot be used or reproduced without written consent.This information is the property of Embraer and cannot be used or reproduced without written consent.
  44. 44. Legacy 450 Program Summary 1st metal cut – Aug 09th, 2012 1st flight expected for the 2H2013This information is the property of Embraer and cannot be used or reproduced without written consent.
  45. 45. LEGACY 650This information is the property of Embraer and cannot be used or reproduced without written consent.
  46. 46. Legacy 600 & 650 13 to 14 passengers MMO and High Speed Cruise Mach 0.80 3,400 nm* 3,900 nm* The largest cabin in its class with three distinct seating areas Largest in-flight accessible baggage compartment in its class The latest in cabin management and IFE technology: Honeywell’s Ovation®Select™ Primus Elite™ Avionics Low operating costs, even vs. 2 cabin zone jets * 4 pax @ 200 lb each, LRC, NBAA IFR res. This information is the property of Embraer and cannot be used or reproduced without written consent.
  47. 47. Legacy 650/600: 2012 Interior New cabin management system  Ovation®Select™ (same as Legacy 450/500)  Individual touchscreen controls  Full HD video (HD monitors, Blu-Ray player, HDMI port)  iPodTM/iPhoneTM dock  Wireless handsets The latest in cabin management and IFE technologyThis information is the property of Embraer and cannot be used or reproduced without written consent.
  48. 48. Legacy 650/600: 2012 Interior Restyled seats Galley redesign High-end materials  Streamlined visual  More storage area  Natural stone flooring Enhancements to cabin design, materials, fit and functionalityThis information is the property of Embraer and cannot be used or reproduced without written consent.
  49. 49. Legacy 600 & 650 fleet distribution 190+ aircraft in operationSource: Jetnet Sep. 2012 This information is the property of Embraer and cannot be used or reproduced without written consent.
  50. 50. LINEAGE 1000This information is the property of Embraer and cannot be used or reproduced without written consent.
  51. 51. Lineage 1000 13 to 19 passengers Mach 0.82 MMO / 470 ktas High Speed Cruise 4,500 nm*  Innovative design and luxury in a large 5-zone cabin  Fly-By-Wire flight controls  Honeywell Primus Epic avionics  The largest in-flight accessible baggage compartment  High dispatch reliability, designed for high utilization  Low operating cost * 4 pax @ 200lb each, M 0.78, NBAA IFR res.4 This information is the property of Embraer and cannot be used or reproduced without written consent.
  52. 52. Lineage 1000 – The Home Away from Home  Most flexible interior assembled  Multiple trim & finishing possibilities  Hundreds of layout possibilities  700 choices of fabric  5 cabin zones  400 choices of leather  Up to three toilets  60 choices of carpet  Exclusive modules  Master Suite with shower  Lounge  BarThis information is the property of Embraer and cannot be used or reproduced without written consent.
  53. 53. Customers embrace the Lineage 1000 Delivery to the first mainland China customer “As one of the world’s leading aircraft manufacturers, Embraer has achieved exceptional progress in the business aviation segment worldwide (…) We are confident that Embraer’s Lineage 1000 will give us outstanding performance, providing us a home away from home, while maximizing this jet as the business tool we need to optimize our time.” Kong Lingjiang, Vice President of Xinjiang Guanghui Industry Investment Group Embraer Press Release, August 2012This information is the property of Embraer and cannot be used or reproduced without written consent.
  54. 54. Lineage 1000 fleet distribution 10+ aircraft in operationSource: Jetnet Sep. 2012This information is the property of Embraer and cannot be used or reproduced without written consent.
  55. 55. CUSTOMER SUPPORT & SERVICESThis information is the property of Embraer and cannot be used or reproduced without written consent.
  56. 56. Customer Support Integrated Solution Over US$ 200 million investment  Global Presence with dedicated teams to Customer Support  Service Center Network – Worldwide  Material Support and Logistics  Training Programs – Total solution  Innovative Service and Support SolutionsThis information is the property of Embraer and cannot be used or reproduced without written consent.
  57. 57. Service Center Network  Over 60 service centers worldwide  12 new centers worldwide since August, 2011  4 more under authorization  On site stocks worldwide in 43 different locations Embraer Service Center Authorized Service CenterSource: EmbraerThis information is the property of Embraer and cannot be used or reproduced without written consent.
  58. 58. Customer Satisfaction AIN Product Support Survey 2012 – 2nd position Highlights  “Embraer’s 13% jump (…), the greatest change among all the manufacturers, propelled it to second place.”  “Embraer’s improved performance is likely due to continual improvement of its product support efforts, which is reflected in many positive comments provided by survey takers”  “Embraer received the highest score among the manufacturers for technical manuals.”Source: AIN Product Support Survey: Aircraft, August 2012 This information is the property of Embraer and cannot be used or reproduced without written consent.
  59. 59. Embraer Executive Jets fleet distributionPhenom 100245+ a/c Legacy 600/650 190+ a/c Phenom 300 Lineage 1000 90+ a/c 12+ a/c Over 540 aircraft flying worldwide Source: Embraer This information is the property of Embraer and cannot be used or reproduced without written consent.
  60. 60. Revenues Growth Opportunities % of Total Revenues* 12% to 16% Leverage revenues from Customer Support and Services  New Embraer Service Center in Brazil  New Training Center in Brazil 6%  Increased service portfolio  Expand market share of special programs  Increase infrastructure and presence worldwide 2011 2020* 2011 and 2020 values are estimatedConceptual Project New Embraer Service Center in Sorocada – Brazil This information is the property of Embraer and cannot be used or reproduced without written consent. This information is the property of Embraer and cannot be used or reproduced without written consent.
  61. 61. Revenues Growth Opportunities Midsize and Midlight categories will generate around US$ 3.2 Bi per year of revenues in the next 10 years Legacy 450 & 500 are expected to capture a significant share of this market, resulting in an important new revenue stream to Embraer A New Paradigm for the SegmentThis information is the property of Embraer and cannot be used or reproduced without written consent.
  62. 62. THANK YOUThis information is the property of Embraer and cannot be used or reproduced without written consent.
  63. 63. VAE Organization Chart President Sr. VP Operations Ernest Edwards & COO Marco Tulio Pellegrini VP Sales VP Interior VP Sales VP Contracts Latin America Design North America Breno Correa Jay Beever Remo Casarsa Robert Knebel VP Market Melbourne VP Sales VP Pre Flown and Product Managing Europe, M.East Sales Strategy Director & AfricaClaudio Camelier Philip Krull James Beckstein Colin Steven VP Program VP Sales VP Marketing Management Asia Pacific Luciano Castro Clint Clouatre Jose Eduardo Costas VP Customer VP Flight VP Sales Support Operations China & Services Edson Mallaco Bradley McKeage Guan DongyuanThis information is the property of Embraer and cannot be used or reproduced without written consent.

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