The document provides an overview of Embraer's defense division, including highlights from 2013, financial results, future projects, and key programs. Some of the 2013 highlights mentioned include the US Air Force selecting the A-29 Super Tucano for its Light Air Support program and completing the Critical Design Review for the KC-390 military transport aircraft. The financial results show consistent revenue growth and increasing backlog. Future projects outlined include various systems and aircraft for the Brazilian military projected out to 2030 with a total value of over $10 billion.

1. Luiz Carlos Aguiar, CEO
August,2013

2. Forward looking statement
This presentation includes forward-looking statements or statements about
events or circumstances which have not occurred.
forward-looking
statements
largely
on
our
We have based these
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 forwardlooking 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.
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

3. Agenda
General Information
2013 Highlights
Results
Future projects
Main Programs Status
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

4. General information
Established on 1st January 2011
Revenues (2012) of US$ 1,056 billion
Total of more than 1,600 employees
Presence in more than 48 countries
and 50 Air Forces operating our
products and systems
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

5. 2013 Highlights (1/3)
• The U.S. Air Force (USAF) selected the A-29 Super Tucano for its Light
Air Support (LAS) program. The selection was further validated by the
GAO (General Accountability Office) of the United States.
• Facilities in Jacksonville, where the A-29 aircraft for the LAS will be built,
are being completed. Local leadership and local plant workers were
hired.
• Critical Design Review (CDR) of the KC-390 military transport aircraft
was successfully concluded.
• Embraer and Boeing announced a partnership for sales and marketing of
Embraer’s KC-390 in selected markets.
• Embraer and Brazilian Air Force (FAB) signed a contract to modernize
five EMB 145 AEW&C, designated E-99 at FAB, approximately US$ 215
million.
• Embraer and FAB also signed a contract to provide logistics support and
services for its fleet of 92 A-29 Super Tucano aircraft.
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

6. 2013 Highlights (2/3)
• Delivery of the first modernized A-1 (A-1M) fighter jet to FAB.
• Delivery of three A-29 Super Tucano to the National Air Force of Angola,
as part of a total order for six aircrafts.
• First flight of a modernized AF-1 aircraft, from the Brazilian Navy, in
August.
• Acquisition of the remaining 50% stake of Atech Negócios em Tecnologia
S.A.
• Savis concluded the selection of the main suppliers for all subsystems of
the SISFRON Project
• Visiona Tecnologia Espacial SA concluded the selection process of
suppliers of the satellite and the launcher for the SGDC project
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

7. Results: Revenue & EBIT
Revenue
Evolution
(US$ Millions)
EBIT (2011/2012): 9~11%
CAGR
29%
851
Ref.: September, 2013
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
YTD Sept

8. Results: consistent revenue growth
Ref.: September, 2013
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

9. Results: Backlog
Backlog
Evolution
(US$ Billions)
Ref.: September, 2013. Includes sales announced during LAAD 2013.
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

10. Revenue Breakdown Evolution
(1/2)
2012
2013E
* Radar (Orbisat)
C4I (Atech)
UAV (Harpia)
Satellite (JV Embraer/Telebrás)
Savis (SISFRON)
Ref.: September, 2013
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

11. Brazilian government future
projects (1/2)
2013
2016
2020
2030
NAVY
SisGAAZ
US 4 bn
SISFRON (phase 1)
US 420 MM
SISFRON (phase 2)
ARMY
SISFRON (subsequent phases)
Aerial Defense
Fighter Jet Tender
AIR FORCE
OTHERS
UAVs
Satellites
US 2 bn
US 4 bn
US 1bn
US 550MM
Contract negotiation phase
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

12. Brazilian government future
projects (2/2)
2013 Federal Budget – Main projects
% of EDS Projects in the Federal Budget : 27%
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

13. Partnerships
Command and
Control systems
Air traffic
Management
Control
UAVs
MRO
Remote Sensing
Simulators
Aero
structures
Aerial
Surveillance
Radar
65%
90%
Modernization
of avionics
systems
Land Defense
Systems
integration
SISFRON
implementation
Satellite
Geostationary of
Defense and
Communications
(SGDC)
Systems of
Systems
C4I
100%
51%
100%
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
51%

14. Partnerships from 2011 to 2013
40,6
YTD Sept
36,9
YTD Sept
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

15. Integrated portfolio
ISR (Intelligence,
Surveillance and
Reconnaissance)
Modernization programs
C4I
UAVs
Light attack and
advanced training
Tactical military transport
Radar
Satellite
Transport aircraft
Land
systems
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
Services

16. ISR Family

17. ISR Family
18 aircraft, 17 in operation
8 aircraft
4 aircraft
3 aircraft
3 aircraft
EMB 145 AEW&C
(India)
EMB 145 MP
Maritime Patrol
EMB 145 AEW&C
Airborne Early Warning and Control
EMB 145 AGS
Remote Sensing, Air-to-Ground
Surveillance
Ref.: July,2013
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

18. A-29
Super Tucano

19. A-29 Super Tucano
• Firm orders: more than 210 aircraft
Brazil: 99
• More than 170 aircraft delivered
Colombia: 25
Dominican Republic: 8
Chile: 12
Super Tucano Addressable Market Forecast
2020 (US$ million)
Long-term
700
Ecuador: 18
Indonesia: 16
Greystone (TacAir): 1
Mauritania: 2
Burkina Faso: 3
Medium-term
2,000
Short-term
800
Angola: 6
USA: 20
Total Market Forecast:
300 aircraft
US$ 3.5 billion
Ref.: July,2013
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

20. LAS – Jacksonville/USA
•
•
•
•
Highly experienced personnel
Strong local leadership
1st Delivery: End of 1°Sem 2014
New distribution channels: BPC and
FMS
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

21. Modernization
programs

22. Modernization program
Modernization addressable market
Forecast 2025
(US$ million)
Mediumterm;
567
Longterm;
505
Shortterm;
437
Brazil Navy A-4
12 aircraft
2 prototypes at GPX-CS
FAB A-1M
43 aircraft
18 received by Embraer for modernization
FAB F-5M
46 acft + 11 acft (2º batch)
46 delivered
Total market forecast:
Total Market Forecast*:
FAB E-99
5 aircraft EMB 145 AEW&C
228 aircraft/ US$ 1.5 billion
228 aircraft / US$ 1.5 billion
* Considerando modernização do Tucano
F-5M
Ref.: July,2013
A1-M
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
A-4

23. KC-390

24. Embraer KC-390
A new tactical military transport
and tanker aircraft
First flight: End of 2014
Six countries
Letters of intent totaling 60
aircraft
Boeing and Embraer signed an
agreement to share technical
knowledge and evaluate markets
for joint sales efforts.
Brazil Colombia Argentina Chile Portugal
(12)
(6)
(6)
(6)
(28)
Czech
Rep.
(2)
Total Market Forecast 2025:
700 aircraft
US$ 50+ bi
The Brazilian Air Force (FAB) and
Embraer concluded the Critical
Design Review in the first quarter
of 2013.
Ref.: September, 2013
This information is the property of Embraer and cannot be used orPROPRIETARY INFORMATION consent. not be duplicated, used, distributed or disclosed in whole or in part,
Information contained herein represents EMBRAER reproduced without written that shall
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.

25. EMBRAER KC-390: PARCEIROS E FORNECEDORES
KC-390: Main partners
and suppliers
Air Conditioning System
Cabin Pressure Control
System
Troop seats
and litters
Cargo Handling and
Aerial Delivery System
Emergency electrical
system
Mission Computer,
DIRCM,
HUD, SPS
Liferaft and
Maritime ELT
System
Throttle Control
Quadrant (TCQ)
Landing Gear
Legs
Basic Avionics
Tactical Radar
System
FBW Primary and Spoiler
Flight Control System and
Actuators
Active Side Stick
Armor
Pilot / Co-pilot / ACM
and Loadmaster Seats
Wheels and Brakes Assemblies
LG System Hydraulic Control
Components
Brake Control System
Steering Hydraulic Manifold
Wing Air Refueling Pod
System
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part,
without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.