Embraer Executive Jets
Marco Tulio Pellegrini
President & CEO – Embraer Executive Jets

This information is the property o...
Embraer Executive Jets fleet evolution
800

739

Number of aircraft

700

620

600

521

500

422

400

277

300

200

81
...
Executive Aviation - Revenue evolution
Embraer revenue per segment
2005

1,645

2013

7%

CAGR = 22%

27%

1,292

1,210
Ex...
Phenom 300 - Market share evolution
Phenom 300
(All bizjet market)

37th

11th

5th

2nd

1st

1%

Phenom 300
24%

30%

39...
EEJ market share evolution since EIS (units)
40%

Market share

30%

22%

21%
20%

10%

16%
9%
5%

0%
2002 2003 2004 2005 ...
EEJ market share (New aircraft delivery revenues)
$21.8Bi

$17.3Bi $18.2Bi

$18.1Bi $17.7Bi $21.2Bi

Total revenue

Source...
Embraer Executive Jets at a glance
This information is the property of Embraer and cannot be used or reproduced without wr...
Embraer product portfolio
Ultra-large

EIS 2009

Ultra-Long Range
Large

EIS 2010

Super Mid-Size

EIS 2002

Mid-size

EIS...
Owners utilization profile (average FH/year)
EMBRAER Owners
Owners OEM

Hawker
Cessna
Bombardier
Dassault
Gulfstream

350
...
High utilization and reliability
Total operation (Y/Y% - 3M)

Source: BofA Merrill Lynch Research , January 2014 Y/Y % cha...
Top 10 best “liquidity” performers
Rank

Models

Days on
market

Active
fleet

Fleet
for sale

Fleet
for sale (%)

1st

GU...
EEJ manufacturing plants: global distribution

USA | Melbourne
 Phenom 100 & 300
 Legacy 450 & 500

Brazil | São J. Camp...
Legacy 500 program status


Four prototypes in flight test
 1,100+ flight hours
 21,000+ systems test hours performed
...
Legacy 450 successful first flight on Dec, 28th

This information is the property of Embraer and cannot be used or reprodu...
Customer Support and Services
This information is the property of Embraer and cannot be used or reproduced without written...
Service Center network

Embraer Service Center
Authorized Service Center

New Embraer Service Center in São Paulo - Brazil...
New Service Center in São Paulo, Brazil

Sorocaba Service Center

 MRO since November 2013
 FBO start-up: March 2014

 ...
Customer satisfaction: 2nd position maintained
“Embraer is creeping even
closer to the top spot, up 0.1
to 8.2 from last y...
Market overview
This information is the property of Embraer and cannot be used or reproduced without written consent.

19
Market recovery depends on many factors
Willingness
to invest

Stock
Markets
Pre-owned
Market

Wealthy
Population

Busines...
U.S. corporate profits

US Corporate Profits (US$ Bi)

2.500
2.000

2.288
+43%

+129%

1.500
1.000
500
0
Q3
2001 2002 2003...
Worldwide HNWIs population

10.1

11.0

2010

2011

8.6

Population (mi)

7.7

8.8

8.2

10.1

9.6

10.8

11.9

2003

2004...
Business Jet Traffic – United States
220

Thousand of Flights

2007
190

2012
160

130

2013
2009

100
Jan

Feb

Mar

Apr
...
Business jets pre-owned market inventory
3.500

Fleet older than 10 yrs
Total fleet % for sale

3.000

28%

Up to 10 yrs &...
Pre-owned asking prices
3.200

# Total Fleet for sale

50%

Market Depreciation

3.000

45%

2.800

40%
2.600
35%
2.400
30...
Market Forecast 2014-2023
This information is the property of Embraer and cannot be used or reproduced without written con...
Market Recovery in slow motion
US Corporate profits at record levels

MILD GROWTH

HNWI at record levels
World GDP growth ...
2014-2023 market forecast
Deliveries Forecast (units)

1200

Units
225
1345

Ultra Large
Ultra Long Range

800

Large

17,...
2014-2023 market forecast by region
North America
4,530 a/c (49%)
US$ 117 Bi (47%)

EMEA
2,330 a/c (25%)
US$ 70 Bi (28%)

...
Embraer Executive Jets Global Presence
Legacy 600/650: 210+
Phenom 100: 290+

Phenom 300: 170+

Lineage 1000: 15+

700+ ex...
Upcoming SlideShare
Loading in …5
×

Embraer Day BR 2014 Executive Jets

2,612 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,612
On SlideShare
0
From Embeds
0
Number of Embeds
450
Actions
Shares
0
Downloads
81
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Embraer Day BR 2014 Executive Jets

  1. 1. Embraer Executive Jets Marco Tulio Pellegrini President & CEO – Embraer Executive Jets This information is the property of Embraer and cannot be used or reproduced without written consent.
  2. 2. Embraer Executive Jets fleet evolution 800 739 Number of aircraft 700 620 600 521 500 422 400 277 300 200 81 117 155 8 21 34 54 13 2003 13 2004 20 27 36 38 2002 100 2005 2006 2007 2008 Deliveries Source: GAMA, October 2012 and analysis Embraer This information is the property of Embraer and cannot be used or reproduced without written consent. 122 145 2009 2010 EEJ fleet (accum) 99 99 119 2011 2012 2013
  3. 3. Executive Aviation - Revenue evolution Embraer revenue per segment 2005 1,645 2013 7% CAGR = 22% 27% 1,292 1,210 Executive Jets 1,119 838 P100 EIS P300 & L1000 EIS L650 EIS 937 874 ´07 ´08 ´09 ´10 582 145 175 246 278 ´04 ´05 L600 EIS Net Revenue (US$ MM) Commercial and Defense ´02 ´03 ´06 This information is the property of Embraer and cannot be used or reproduced without written consent. ´11 ´12 ´13
  4. 4. Phenom 300 - Market share evolution Phenom 300 (All bizjet market) 37th 11th 5th 2nd 1st 1% Phenom 300 24% 30% 39% CJ4 34% 47% 17% 20% 18% 34% CJ2+ 31% 26% 16% 15% 12% 10% 5% 11% 11% 2% 2009 15% 12% 11% 8% 2% 13% 2% 6% 12% 2011 2012 2013 Source: GAMA, Feb 2014 and Embraer analysis This information is the property of Embraer and cannot be used or reproduced without written consent. Premier IA Learjet 40/70 15% 1% 2010 CJ3 4% H 400XP SJ-30-2
  5. 5. EEJ market share evolution since EIS (units) 40% Market share 30% 22% 21% 20% 10% 16% 9% 5% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 22% accumulated since EIS, within the markets EEJ competes Source: Jetnet and Embraer analysis – February 2014 This information is the property of Embraer and cannot be used or reproduced without written consent. 5
  6. 6. EEJ market share (New aircraft delivery revenues) $21.8Bi $17.3Bi $18.2Bi $18.1Bi $17.7Bi $21.2Bi Total revenue Source: GAMA and Embraer analysis This information is the property of Embraer and cannot be used or reproduced without written consent. 6
  7. 7. Embraer Executive Jets at a glance This information is the property of Embraer and cannot be used or reproduced without written consent. 7
  8. 8. Embraer product portfolio Ultra-large EIS 2009 Ultra-Long Range Large EIS 2010 Super Mid-Size EIS 2002 Mid-size EIS 2014 Mid-light EIS 2015 Light EIS 2009 Entry EIS 2008 This information is the property of Embraer and cannot be used or reproduced without written consent.
  9. 9. Owners utilization profile (average FH/year) EMBRAER Owners Owners OEM Hawker Cessna Bombardier Dassault Gulfstream 350 372 393 440 445 Owners class 616 Large Jets Medium Jets Small jets 433 393 344 0 200 400 600 Embraer owners tend to have a better annual utilization leading their businesses to higher productivity Source: Jetnet IQ 2Q13 report proprietary data. This information is the property of Embraer and cannot be used or reproduced without written consent. 800
  10. 10. High utilization and reliability Total operation (Y/Y% - 3M) Source: BofA Merrill Lynch Research , January 2014 Y/Y % change in 3M rolling average This information is the property of Embraer and cannot be used or reproduced without written consent.
  11. 11. Top 10 best “liquidity” performers Rank Models Days on market Active fleet Fleet for sale Fleet for sale (%) 1st GULFSTREAM G-650 37 49 1 2.0% 2nd EMBRAER LEGACY 650 51 52 1 1.9% 3rd EMBRAER PHENOM 300 82 177 5 2.8% 4th GULFSTREAM G-550 119 428 12 2.8% 5th AIRBUS ACJ319 148 68 2 2.9% 6th CITATION CJ4 160 140 5 3.5% 7th CHALLENGER 300 207 428 25 5.8% 8th GULFSTREAM G-450 234 279 22 7.8% 9th CITATION CJ3 245 405 23 5.6% 10th EMBRAER PHENOM 100 262 294 20 6.8% . Source: Jetnet, January 2014. Considers only currently in production jets, with an active fleet of 30 or more aircraft This information is the property of Embraer and cannot be used or reproduced without written consent.
  12. 12. EEJ manufacturing plants: global distribution USA | Melbourne  Phenom 100 & 300  Legacy 450 & 500 Brazil | São J. Campos     Phenom 100 & 300 Legacy 450 & 500 Legacy 650 Lineage 1000 This information is the property of Embraer and cannot be used or reproduced without written consent. China | Harbin  Legacy 650
  13. 13. Legacy 500 program status  Four prototypes in flight test  1,100+ flight hours  21,000+ systems test hours performed  On track for EIS in 1H 2014 This information is the property of Embraer and cannot be used or reproduced without written consent.
  14. 14. Legacy 450 successful first flight on Dec, 28th This information is the property of Embraer and cannot be used or reproduced without written consent. 14
  15. 15. Customer Support and Services This information is the property of Embraer and cannot be used or reproduced without written consent. 15
  16. 16. Service Center network Embraer Service Center Authorized Service Center New Embraer Service Center in São Paulo - Brazil Nearly 70 service centers worldwide This information is the property of Embraer and cannot be used or reproduced without written consent.
  17. 17. New Service Center in São Paulo, Brazil Sorocaba Service Center  MRO since November 2013  FBO start-up: March 2014  200,000 SQFT and US$ 25 MM investment This information is the property of Embraer and cannot be used or reproduced without written consent.
  18. 18. Customer satisfaction: 2nd position maintained “Embraer is creeping even closer to the top spot, up 0.1 to 8.2 from last year’s 8.1” This information is the property of Embraer and cannot be used or reproduced without written consent. 18
  19. 19. Market overview This information is the property of Embraer and cannot be used or reproduced without written consent. 19
  20. 20. Market recovery depends on many factors Willingness to invest Stock Markets Pre-owned Market Wealthy Population Business Aviation Traffic Corporate Profits Exchange Rates Regulatory Environment Airport Infrastructure Sales of New Business Jets Source: Embraer Analysis This information is the property of Embraer and cannot be used or reproduced without written consent. Finance conditions (for small jets, and Asia mainly)
  21. 21. U.S. corporate profits US Corporate Profits (US$ Bi) 2.500 2.000 2.288 +43% +129% 1.500 1.000 500 0 Q3 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: BEA – Bureau of Economic Analysis and Embraer estimates, January 2014. Seasonally adjusted at annual rates This information is the property of Embraer and cannot be used or reproduced without written consent.
  22. 22. Worldwide HNWIs population 10.1 11.0 2010 2011 8.6 Population (mi) 7.7 8.8 8.2 10.1 9.6 10.8 11.9 2003 2004 2005 North America Europe 2006 2007 Asia-Pacific Source: World Wealth Report 2013 edition This information is the property of Embraer and cannot be used or reproduced without written consent. 2008 2009 Latin America Middle East 2012 Africa
  23. 23. Business Jet Traffic – United States 220 Thousand of Flights 2007 190 2012 160 130 2013 2009 100 Jan Feb Mar Apr May Source: FAA – February 2014 This information is the property of Embraer and cannot be used or reproduced without written consent. Jun Jul Aug Sep Oct Nov Dec
  24. 24. Business jets pre-owned market inventory 3.500 Fleet older than 10 yrs Total fleet % for sale 3.000 28% Up to 10 yrs & positions Up to 10 yrs % for sale 11.8% 2316 jets 7.4% 600 jets 24% 20% 2.000 16% 1.500 12% 1.000 8% 500 4% 0 0% ´00 ´01 ´02 ´03 ´04 ´05 ´06 Source: Jetnet and Embraer Analysis, February 14th 2014 This information is the property of Embraer and cannot be used or reproduced without written consent. ´07 ´08 ´09 ´10 ´11 ´12 ´13 ´14 TD % of active fleet (Lines) Units (Bars) 2.500
  25. 25. Pre-owned asking prices 3.200 # Total Fleet for sale 50% Market Depreciation 3.000 45% 2.800 40% 2.600 35% 2.400 30% 2.200 2.000 May-09 25% Jan-10 Sep-10 May-11 Jan-12 Sep-12 May-13 Recovery will depend on an improvement in pre-owned prices. Owners are postponing substitutions. Source: Jetnet and Embraer Analysis, January 2014 This information is the property of Embraer and cannot be used or reproduced without written consent. Jan-14
  26. 26. Market Forecast 2014-2023 This information is the property of Embraer and cannot be used or reproduced without written consent. 26
  27. 27. Market Recovery in slow motion US Corporate profits at record levels MILD GROWTH HNWI at record levels World GDP growth is moderate Used market inventory leveled off but prices are still an issue Traffic recovery on track but slower than expected European markets still at risk; emerging countries slowing down  Lack of confidence is holding the bizjet market turnaround  USA market dictates the speed of recovery This information is the property of Embraer and cannot be used or reproduced without written consent.
  28. 28. 2014-2023 market forecast Deliveries Forecast (units) 1200 Units 225 1345 Ultra Large Ultra Long Range 800 Large 17,3 1670 1000 US$ 82,2 1270 600 Supermid Midsize 400 920 1140 64,7 31,1 Midlight 200 1780 900 Light 2023 2022 2021 2020 2019 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2018 Entry 0 17,8 17,3 15,8 Deliveries Revenues N10YF 9,250 jets and US$ 250 Bi in the next 10 years This information is the property of Embraer and cannot be used or reproduced without written consent. 4,2
  29. 29. 2014-2023 market forecast by region North America 4,530 a/c (49%) US$ 117 Bi (47%) EMEA 2,330 a/c (25%) US$ 70 Bi (28%) China 805 a/c (9%) US$ 29 Bi (11%) Asia Pacific 725 a/c (8%) US$ 21 Bi (8%) Latin America 860 a/c (9%) US$ 15 Bi (6%) Source: Embraer 2013. This information is the property of Embraer and cannot be used or reproduced without written consent. Worldwide 9,250 units US$ 250 Bi
  30. 30. Embraer Executive Jets Global Presence Legacy 600/650: 210+ Phenom 100: 290+ Phenom 300: 170+ Lineage 1000: 15+ 700+ executive jets in service in more than 50 countries This information is the property of Embraer and cannot be used or reproduced without written consent.

×