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Embraer
    Third Annual
  Investor Meeting
São José dos Campos

     Nov. 21-22, 2002



     Artur Coutinho
  Customer Services VP
Customer
Services
Global Coverage

  • Embraer Customer Services worldwide locations.


                                     Weybridge
                                                 Paris
       Dallas

                                                         Beijing


         Fort Lauderdale




                           Sao Jose dos Campos
            Botucatu
                                                                   Melbourne
Customer Service Philosophy

   •Embraer is focused on understanding and meeting the
   requirements of its customers.
    • Focus on customer satisfaction and close communication
    • The right part, at the right place, at the right time, at a fair price
    • Responsive and customized support services.




                                                                                Aircraft Supported
                                                     Field Support             650 ERJ 135/140/145
                                                 Representatives Count
                                                                               350 EMB 120 Brasilia
                                                    Brazil        10
                           Customer Services                                   300 EMB 110Bandeirante
                              Employees             North America 32
                                                                               100 EMB-121 Xingu
    Embraer Employees                               Europe        28
                             Brazil        410                                 150 AM-X
                                                    Asia/Australia 6
    Brazil        10,430     North America 120                                 600 EMB-312 Tucano
    North America 205        Europe        100                                 180 EMB-326 Xavante
    Europe        190        Asia/Australia 13
                                                                               Update: November 2002
    Asia/Australia 37
Full Support

   Embraer Customer Services is a highly empowered organization,
   designed to support customers in every aspect of aircraft
   operation.
                           Customer
                            Service




          Technical                   Logistic           Material              Maintenance
          Services                    Support            Support                Services
                                      AOG support                                Components repair and overhaul
          field & technical support                       stock quality

          costs & reliability         spares sales        spares planning        Aircraft repair
                                      spares logistics    pricing
          operational support

          training                                        special programs

          CIS/Aerochain                                   e-commerce

          suppliers interface                             provisioning

          account managers                               warranty management
Innovation in Services

   •Embraer uses cutting edge technology to offer a
   wide range of services to streamline maintenance,
   parts and operations.
      AEROChain/Customer Integration System (CIS)
        • Embraer Internet portal that supports maintenance &
          operations.
        • Digital market place
        • MRO
        • VMI (Vendor Monitoring Inventory)


      Spares Global Support Packages
        • Optimized provisioning to fleet hour agreements
        • Heavy Check Solutions
        • Collaborative inventory planning
Customer Services Added Value
Year               Year                                                  Year                     Year
 0                  5                                                     20                       35




                               PRODUCTION & A/C SALES

                          - Active participation on sales campaigns
                                 - Feedback from the field and
                                     from fleet operations


     A/C
 DEVELOPMENT

   - Operational
        and
   maintenance
       needs
                                                          AFTER SALES SUPPORT

                                                        - Customers technical support
                                            - Customers’s loyalty and Embraer image improvement
                                                                  - Revenues
Added Value: Development Phase


   • In the product development phase, Customer
     Services brings its experience and lessons
     learned from Customers operations, helping
     Embraer with:
      – Engineering support,
      – Simultaneous engineering focused on fleet
        performance improvement and maintenance
        costs reduction.
Added Value: Production Phase


    • Customer Services monitors the technical
      and operational issues ocurring during
      operations, as well as the Customer needs,
      helping to find the solutions.
    • Customer Services takes an important role in
      the a/c sales process, helping to provide
      competitive advantage for our products and
      the best cost equation to the customers.
Added Value: After Sales Support


    • By monitoring fleet operation continuously,
      Customer Services helps to improve:
       – Customers loyalty, providing technical solutions
         that help the reduction of operational and
         maintenance costs,
       – Product image, helping to increase the fleet
         performance levels,
       – Company image, resulting of its positive attitude
         and commitment with Customers.
Added Value: Revenues



   • Maintenance services
       – EAMS
   •   Spare Parts sales
   •   Logistic services
   •   Global Support Program
   •   AEROChain
Revenues: Maintenance Services

  • Maintenance services (0-120 pax), will amount to
    US$ 106 billion in the next ten years, with the
    following breakdown:
       Per region (%)    Per market segment (%)   Per type of service (%)




       USA
                                < 30 pax
       Europe                                           Airframe
                                30/60 pax
       Canada&Caribean                                  Components
                                60/90 pax
       Latin America                                    Engine
                                90/120 pax
       Africa&M.East                                    Painting
       Asia
Revenues: EAMS Services

   • The Embraer Aircraft Maintenance Services will
     supply services in 2003, to regional operators in the
     USA, with the following breakdown:




                              Airframe
                              Components
                              Painting
Revenues: Spare Parts Sales & Logistic
Services
    • Embraer spare parts sales worldwide in 2002 :




                                         USA

                                         Europe

                                         Brazil




    • Embraer provides pool services, parts exchange,
      parts rental and parts consignment in Europe and
      USA
Revenues: Global Support Program



    • As a result of a new aviation environment,
      Embraer Customer Services also offers to
      the market a “Global Support” Program.
    • This program assures to the airlines, by a
      fixed cost, a pre-defined set of maintenance
      services, opening for Embraer a new
      business oportunity.
Revenues: AEROChain


                      Embraer’s e-marketplace
                      provides the following
                      services to the aerospace
                      industry: spare parts
                      trading, planning and
                      collaboration tools,
                      technical support, access
                      to technical publications,
                      training and maintenance
                      management tools.
Revenues: AEROChain (cont)

   • In addition, AEROChain’s features will allow
     Embraer to:
      – Increase it’s revenues in part sales,
      – Reduce some administrative and material costs,
      – Reduce inventory levels.
   • AEROChain will also improve our relationship
     with Customers, helping them to reduce
     inventory levels (e.g.: Express Jet, with 2.000
     items in 6 locations).
Leading the Industry

   • According to Meridian International Research,
     Embraer offers the best product support among
     regional aircraft manufacturers.

                    Customer Satisfaction Survey
                                                           1999                     2001
            1st Embraer                                  6,55                     6,67
            2nd Bombardier                               5,49                     5,78
            3rd Fairchild-Dornier                        -                        5,65
            Note: This customer satisfaction survey is performed each two years by Meridian International
            Research

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2002 - Third Annual Analyst & Investor Meeting Customer Services

  • 1. Embraer Third Annual Investor Meeting São José dos Campos Nov. 21-22, 2002 Artur Coutinho Customer Services VP
  • 3. Global Coverage • Embraer Customer Services worldwide locations. Weybridge Paris Dallas Beijing Fort Lauderdale Sao Jose dos Campos Botucatu Melbourne
  • 4. Customer Service Philosophy •Embraer is focused on understanding and meeting the requirements of its customers. • Focus on customer satisfaction and close communication • The right part, at the right place, at the right time, at a fair price • Responsive and customized support services. Aircraft Supported Field Support 650 ERJ 135/140/145 Representatives Count 350 EMB 120 Brasilia Brazil 10 Customer Services 300 EMB 110Bandeirante Employees North America 32 100 EMB-121 Xingu Embraer Employees Europe 28 Brazil 410 150 AM-X Asia/Australia 6 Brazil 10,430 North America 120 600 EMB-312 Tucano North America 205 Europe 100 180 EMB-326 Xavante Europe 190 Asia/Australia 13 Update: November 2002 Asia/Australia 37
  • 5. Full Support Embraer Customer Services is a highly empowered organization, designed to support customers in every aspect of aircraft operation. Customer Service Technical Logistic Material Maintenance Services Support Support Services AOG support Components repair and overhaul field & technical support stock quality costs & reliability spares sales spares planning Aircraft repair spares logistics pricing operational support training special programs CIS/Aerochain e-commerce suppliers interface provisioning account managers warranty management
  • 6. Innovation in Services •Embraer uses cutting edge technology to offer a wide range of services to streamline maintenance, parts and operations. AEROChain/Customer Integration System (CIS) • Embraer Internet portal that supports maintenance & operations. • Digital market place • MRO • VMI (Vendor Monitoring Inventory) Spares Global Support Packages • Optimized provisioning to fleet hour agreements • Heavy Check Solutions • Collaborative inventory planning
  • 7. Customer Services Added Value Year Year Year Year 0 5 20 35 PRODUCTION & A/C SALES - Active participation on sales campaigns - Feedback from the field and from fleet operations A/C DEVELOPMENT - Operational and maintenance needs AFTER SALES SUPPORT - Customers technical support - Customers’s loyalty and Embraer image improvement - Revenues
  • 8. Added Value: Development Phase • In the product development phase, Customer Services brings its experience and lessons learned from Customers operations, helping Embraer with: – Engineering support, – Simultaneous engineering focused on fleet performance improvement and maintenance costs reduction.
  • 9. Added Value: Production Phase • Customer Services monitors the technical and operational issues ocurring during operations, as well as the Customer needs, helping to find the solutions. • Customer Services takes an important role in the a/c sales process, helping to provide competitive advantage for our products and the best cost equation to the customers.
  • 10. Added Value: After Sales Support • By monitoring fleet operation continuously, Customer Services helps to improve: – Customers loyalty, providing technical solutions that help the reduction of operational and maintenance costs, – Product image, helping to increase the fleet performance levels, – Company image, resulting of its positive attitude and commitment with Customers.
  • 11. Added Value: Revenues • Maintenance services – EAMS • Spare Parts sales • Logistic services • Global Support Program • AEROChain
  • 12. Revenues: Maintenance Services • Maintenance services (0-120 pax), will amount to US$ 106 billion in the next ten years, with the following breakdown: Per region (%) Per market segment (%) Per type of service (%) USA < 30 pax Europe Airframe 30/60 pax Canada&Caribean Components 60/90 pax Latin America Engine 90/120 pax Africa&M.East Painting Asia
  • 13. Revenues: EAMS Services • The Embraer Aircraft Maintenance Services will supply services in 2003, to regional operators in the USA, with the following breakdown: Airframe Components Painting
  • 14. Revenues: Spare Parts Sales & Logistic Services • Embraer spare parts sales worldwide in 2002 : USA Europe Brazil • Embraer provides pool services, parts exchange, parts rental and parts consignment in Europe and USA
  • 15. Revenues: Global Support Program • As a result of a new aviation environment, Embraer Customer Services also offers to the market a “Global Support” Program. • This program assures to the airlines, by a fixed cost, a pre-defined set of maintenance services, opening for Embraer a new business oportunity.
  • 16. Revenues: AEROChain Embraer’s e-marketplace provides the following services to the aerospace industry: spare parts trading, planning and collaboration tools, technical support, access to technical publications, training and maintenance management tools.
  • 17. Revenues: AEROChain (cont) • In addition, AEROChain’s features will allow Embraer to: – Increase it’s revenues in part sales, – Reduce some administrative and material costs, – Reduce inventory levels. • AEROChain will also improve our relationship with Customers, helping them to reduce inventory levels (e.g.: Express Jet, with 2.000 items in 6 locations).
  • 18. Leading the Industry • According to Meridian International Research, Embraer offers the best product support among regional aircraft manufacturers. Customer Satisfaction Survey 1999 2001 1st Embraer 6,55 6,67 2nd Bombardier 5,49 5,78 3rd Fairchild-Dornier - 5,65 Note: This customer satisfaction survey is performed each two years by Meridian International Research