1. This information is the property of Embraer and cannot be used or reproduced without written consent. Luiz Carlos Aguiar, CEO
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.
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3. AGENDA
Vision & Mission
General Information
Results and the Future
Strategic Vision
Main Programs Status
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4. Vision
VISION be the leader in providing
To AND MISSION
defense & security solutions in
the Brazilian market and in those
where Brazil has a very good
geopolitical relationship
Mission
To protect people, territories and safeguard critical
assets, by developing tailored and business
integrated solutions in the Defense & Security
markets, and by providing results for customers and
stakeholders, partners and society.
EMBRAER DEFENSE AND SECURITY
VISION AND MISSION
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5. Embraer Defense and Security: a new Embraer company established on 1st January 2011
Revenues 2011 US$ 852 million
1,647 employees
Presence in more than 40 countries
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6. RESULTS: REVENUE AND EBIT
Revenue
Evolution EBIT (2011/2012): 9~12%
(US$ Million)
1.000 15,5%
14,5%
15,0%
900 - 950
900 12,6%
852 13,0% CAGR
2012-2020
800 11,0%
9,0% 10%
700 8,0% 670
7,0% 9,0%
6,0%
600 7,0%
505 499 5,0%
500 498
3,0%
400 346
1,0%
300 CAGR
227 33% -1,0%
200
-3,0%
100 -5,0%
1st semester
- -7,0%
2006 2007 2008 2009 2010 2011 2012E (*)
Revenues (US$ Million) Participation (%)
Ref.: August, 2012
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7. RESULTS: BACKLOG
3,8
Backlog
Evolution 3,3 3,3
3,2
(US$ Billion)
1,5
1,1
1,0
2006 2007 2008 2009 2010 2011 2012E
US$ Billion
Ref.: December, 2012
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8. REVENUE BREAKDOWN EVOLUTION
2011 2012
Radar, C4I, UAV (*) Radar, C4I, UAV (*)
6% 4%
Light Attack and Light Attack and
Combat Combat
9% Services and
Services and 16%
Parts
Parts 26%
ISR 31%
10%
KC-390
KC-390
19% Modernization
34%
Modernization 20%
25%
* Radar (Orbisat)
C4I (Atech)
UAV (Harpia and Santos Lab)
Satellite (JV Embraer/Telebrás) Ref.: August, 2012
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9. To build a leadership position and to
act as the main prime contractor in the
Brazilian Defense and Security Industry
Base
To expand the portfolio of products,
services and technologies build
through a combination of organic
growth and acquisitions
EMBRAER DEFENSE AND SECURITY
STRATEGIC OBJECTIVES
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10. Prime Contractor
To build a leadership position and to act as the main prime contractor • EADS (Europe)
in the Brazilian Defense and Security Industry Base • Fincantieri (Italy)
• Finmeccanica (Italy)
• Thales (France)
• Elbit (Israel)
• IAI (Israel)
• Other Brazilian •
Satellite BAE Systems (UK)
Main Brazilian Defense companies • DCNS (France)
and Security Company: • Boeing (USA)
• Equipment • Rockwell Collins (USA)
SISFRON • Prime contractor suppliers • Indra (Spain)
Integrated Borders • Saab (Sweden)
• Project management • Solutions •
Monitoring ....
System development
• Finance structuring
Foreign
• Solutions integrator Companies
• Development and
retention of Brazilian
Aerial Defense technologies
construction
• Services and logistics companies
Brazilian priority supplies
Brazilian Supply of base
Main • Brazilian supply chain strengthening Supply of infrastructure
Government • Technology development and retention complementary
Contractors • Finance structuring foreign equipment
Projects • Highly qualified employment generation
• Technological spin-off
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11. FUTURE PROJECTS – BRAZILIAN GOVERNMENT
2013 2016 2020 2030
NAVY SisGAAZ US 4 bn
SISFRON (phase 1)
ARMY US 400-500 MM SISFRON (Full Scope) US 4 bn
Aerial Defense US 2 bn
Fighter Jet Tender US 4 bn
AIR FORCE
UAVs US 1bn
OTHER Satellites US 400MM
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12. FUTURE PROJECTS - BRAZILIAN GOVERNMENT
2013 Federal Initial Budget (*) 2013 budget
(R$ million)
2013 budget
Army 2.100
SISFRON 200
(R$ million)
Combat Readiness 365
Air Force 4.600 Logistic 353
KC-390 1.200 Aqcuisition & modernization of equip. 212
Air Traffic Control 1.300 Guarani Vehicles
5 midsize helicopters 90
443 (48 out of 2.044)
(out of 50) ASTROS 2020 90
Aqcuisition & modernization of aircraft 596 Proteger
44
Aircraft Maintenance & Supplies 500 Strategi c Infras tructure Protecti on
Fuel & oil 307
Combat Readiness 74
2013 budget
(R$ million)
Navy 3.700
PROSUB (submarine) 2.300
Combat Readiness 708
Aqcuisition & modernization of vessels 506
Patrol ship building 73
(*) Investment Budget – Budget sent to congress for discussion
(available at Ministry of Planning website)
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13. Brazilian Army Priorities
SISFRON
Integrated Borders
Monitoring System Satellite
Estimate: US$ 4 bi
Comprising radars, Estimate: US$ 400 M
communication networks,
C4I, unmanned air vehicles Participation in the first
(UAV) and armored vehicles Brazilian Geostationary
Satellite
Embraer won the 1st
phase of SISFRON,
comprised of a
650km border
between Brazil,
Paraguay and Bolivia
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14. GROWTH THROUGH ACQUISITIONS
AND PARTNERSHIPS
To expand the portfolio of products, services and technologies
Control
built through a combination of organic growth and acquisitions
Commercial Agreement
HARPIA VISIONA
Command and Remote Sensing
Control
MRO UAV
Air Traffic Ground Radars
Management
Systems Simulators
Mini-UAVs Satellite
Police Mission Aerostructures Modernization of
Intelligence Systems avionics systems
System
50% 90% 65% 51% NA 51%
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15. Embraer Defense and Security, Partners
and Affiliated Companies
ISR (Intelligence,
Surveillance and Light attack and Transport of authorities
Reconnaissance) advanced training
Modernization programs Services Tactical military transport
HARPIA VISIONA
System of Systems UAV’s Radar Satellite
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16. CORPORATE PRESENCE
Alverca (Portugal)
MRO
Villepinte (France)
Logistic support
Washington DC (USA)
Commercial presence Abu Dhabi (UAE)
Commercial presence
Singapore
Rio de Janeiro (Brazil) Commercial office
Brasília (Brazil)
Commercial office Commercial presence
Harpia Sistemas headquarter
São Paulo (Brazil)
Headquarters
Atech S.A headquarters
Gavião Peixoto (Brazil) São José dos Campos (Brazil)
Industrial operations Engineering, programs, industrial
Service center operations, customer support and services
Orbisat headquarters
Campinas (Brazil) Eugênio de Melo (Brazil)
Orbisat (engineering and operations) KC-390 Program
Engineering
Ref.: December, 2011
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17. PORTFOLIO – SUPER TUCANO
Super Tucano Addressable Market Forecast
Firm orders: 190 aircraft
2020 (US$ million)
Brazil: 99
Long-term
700
Colombia: 25
Dominican Republic: 8
Chile: 12
Pursuing USAF Medium-term
Ecuador: 18 Light Air Support 2,000 Short-term
800
competition
Indonesia: 16
Greystone (TACAir): 1
Partnership with Boeing Total Market Forecast:
Undisclosed: 11
to provide weapons 300 aircraft
Deliveries: 168 aircraft integration, increasing US$ 3.5 billion
capabilities of the
Ref.: August, 2012 aircraft.
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18. MODERNIZATION PROGRAMS
Modernization Addressable Market Forecast 2025 Brazilian Navy A-4
(US$ million) 12 aircraft
Long-term
567
Two prototype at GPX-CS
Brazilian Air Force A-1M
43 aircraft
Fourteen received by Embraer for the modernization
Medium-term
505
Short-term Brazilian Air Force F-5M
527
46 a/c + 11 a/c (2nd batch)
Total Market Forecast*: 45 already delivered
234 aircraft * Forecast considering the market for F-5 and Tucano modernization
US$ 1.6 billion Ref.: August, 2012
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This information is the property of Embraer and cannot be used or reproduced without written consent.
19. TRANSPORT OF AUTHORITIES AND
EMBRAER ISR SYSTEMS
Embraer Jets to Defense and Government customers Embraer Defense and Security
operating in 12 countries signed a contract with the Brazilian
Air Force to provide logistics
Presence in Latin America, Europe, Africa and Asia support and services for the fleet of
58 Embraer Jets in operation 24 aircraft of the ERJ-145
Brazil Colombia Ecuador
Belgium Greece
Panama Embraer ISR Systems: 18 aircraft:
Brazilian Air Force: 8
India Pakistan Thailand Hellenic Air Force: 4
Mexican Air Force: 3
DRDO/CABS (India): 3
Angola Nigeria Equatorial Guinea
16 aircraft in operation
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20. EMBRAER KC-390
A new tactical military transport and
tanker aircraft
First flight in 2014
Six countries Brazil Colombia Argentina Chile Portugal Czech Rep.
Letters of intent totalizing 60 aircraft (28) (12) (6) (6) (6) (2)
Boeing and Embraer signed an
agreement to share technical
US$ 50+ bi
knowledge and evaluate markets for 700 aircraft
joint sales efforts.
Total Market Forecast 2025:
The Brazilian Air Force (FAB) and
Embraer concluded the Preliminary
Design Review. The next major
contractual event will be the
project’s Critical Design Review in
2013. Ref.: August, 2012
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22. EMBRAER KC-390: MAIN PARTNERS AND SUPPLIERS
Cabin Pressure Control
Air Conditioning System System
Integrated Power Troop seats
Cargo Handling and and litters
Plant System (IPPS) Aerial Delivery System
Emergency electrical
Mission Computer, system
DIRCM,
HUD, SPS
Liferaft and
Maritime ELT
System FBW Primary and Spoiler
Flight Control System and
Throttle Control Actuators
Quadrant (TCQ) Active Side Stick
Basic Avionics Landing Gear
Legs
Wheels and Brakes Assemblies
LG System Hydraulic Control Wing Air Refueling Pod
Tactical Radar Components System
System Pilot / Co-pilot / ACM Brake Control System
Armor Steering Hydraulic Manifold
and Loadmaster Seats
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23. This information is the property of Embraer and cannot be used or reproduced without written consent.
