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Company Highlights Investment grade rating by Moody’s and S&P. Strong balance sheet with solid net cash position. Company established in 1969, privatized in 1994 and listed in USA in 2000. Sector leader in the Dow Jones Sustainability Index 2011/2012. Broad customer base in commercial and executive aviation, defense and security segments. Global footprint.  Highly experienced management team.
Global Business ,[object Object],[object Object],Melbourne* Fort Lauderdale Nashville USA Taubaté Botucatu Gavião Peixoto São José dos Campos Brazil Évora* Alverca Portugal Le Bourget Villepinte France Harbin Beijing China Singapore Singapore Countries of Operation Factories Offices Service Centers Contracted/ Planned Authorized Network * Under construction ,[object Object],[object Object],Mesa Windsor Locks São Paulo Spare Parts Distribution Centers Louisville Minneapolis
Executive Large Jets Aircraft Deliveries Executive Light Jets Commercial Jets Phenom * 102+* 18* 100* 2011 deliveries estimates Legacy e Lineage
Net Revenue Guidance 2011: Net Revenue - US$ 5.8 billion 2006-2008: US GAAP 2009-2010: IFRS * ** 2011: YTD Guidance US$ Million Executive aviation Commercial aviation Aviation services/others Defense and security Net Revenue Gross Margin
Firm Order Backlog Firm Order Backlog Backlog/Revenue (Years) US$ Billion
Revenue Breakdown Revenue by Segment Revenue by Region Commercial aviation Executive aviation Others Aviation services Defense and security 6.33 5.49 5.36 Net Revenue  US$ Billion * 6.33 5.49 5.36 2008: US GAAP 2009-2010: IFRS * North America Brazil Europe Asia Pacific Latin America Others
E-Jets: 60 Airlines from 40 Countries
Product Portfolio capacity: 70 to 80 seats range: 2,100 nm (3,900 Km)   capacity: 78 to 88 seats range: 2,000 nm (3,700 Km)   capacity: 98 to 114 seats range: 2,400 nm (4,500 Km)   capacity: 108 to 122 seats range: 2,200 nm (4,100 Km)   capacity: 37 seats range: 1,750 nm (3,250 Km)   capacity: 50 seats range: 1,550 nm (2,900 Km)   capacity: 50 seats range: 2,000 nm (3,700 Km)   capacity: 44 seats range: 1,650 nm (3,050 Km)
Commercial Aviation - Order Book 2Q11 Firm Orders Options Total Deliveries Firm Backlog ERJ 145 Family 890 - 890 890 - EMBRAER 170 190 32 222 182 8 EMBRAER 175 189 285 474 136 53 EMBRAER 190 519 305 824 349 170 EMBRAER 195 105 36 141 75 30 TOTAL E-JETS 1.003 658 1.661 742 261 TOTAL 1.893 658 2.551 1.632 261
E-Jets Customer Base Evolution
Worldwide Distribution Diversified  Customers  Across 5 Continents Firm Orders Commercial Jets Market Share Evolution Worldwide Considering Accumulated Net Orders 60-120 Seats Jets Backlog Europe & CIS Middle East & Africa Latin America North America Asia Pacific & China 43% 30% 3% 7% 5%
E-Jets Deployment
World Replacement Opportunities (Jets 61-120 seats) Nearly 1,000 aircraft with more than 15 years old
Embraer Market Forecast (2011-2030) North America 840 32% North America 2,350 33% Latin America 315 12% Latin America 670 9% Europe 580 22% Europe 1,675 23% Russia /  CIS 155 6% Russia /  CIS 435 6% Africa 80 3% Africa 195 3% Middle  East 105 4% Middle  East 310 4% Asia  Pacific 210 8% Asia  Pacific 615 9% China 340 13% China 975 13% ,[object Object],[object Object],[object Object],[object Object],Around 7,225 jet deliveries (30-120 seats) in the next 20 years (US$ 320 bi) Projected Deliveries  - Jets Market Segment (Seats) 2010  – 2019 Deliveries 30 - 60 60 61 - 90 1,015 91 - 120 1,550 30 - 120 2,625 Market Segment (Seats) 2011  – 2030 Deliveries 30 - 60 430 61 - 90 2,670 91 - 120 4,125 30 - 120 7,225
110 Seats Competitive Landscape 70-90 Seats 100 Seats
More than 400 executive jets in operation.
Product Portfolio Large Aircraft Model Phenom 100 Phenom 300 Legacy 450 Legacy 500 Legacy 600 Lineage 1000 Seats / Range up to 8 occupants/ 1,178 nm up to 11 occupants/ 1,971 nm 7 to 9 passengers/ 2,300 nm 8 to 12 passengers/ 3,000 nm 13 to 14 passengers/ 3,400 nm 13 to 19 passengers/ 4,500 nm Entry Light Mid-light Mid-size Ultra-large Super Mid-Size Certified: 2008 Certified: 2009 Under development Certified: 2001 Certified: 2008 Ultra-Long Range Competitors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Legacy 650 13 to 14 passengers/ 3,900 nm Certified: 2010 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Market Share 25% 24% 22% 21% 20% 33% 35% 37% 40% 33% 7% 7% 7% 6% 9% 12% 13% 13% 14% 11% 2.7% 3.1% 3.5% 3.3% 14% 19% 16% 16% 14% 11% 2% 3% 2% 1% 2% 2005 2006 2007 2008 2009 % OEM Share – Total units 749  885  1,040  1,154  870  Others Hawker-Beech Embraer Gulfstream Dassault Cessna Bombardier Deliveries share (units) Revenue share (US$ - based on B&CA list prices)  Market Deliveries 2010: 763 units. Embraer Deliveries: 145 units. Market Revenue 2010: $18.2 Bi. Embraer Revenue: $1.1 Bi. 30% 29% 28% 29% 28% 16% 16% 17% 18% 12% 11% 11% 12% 12% 18% 23% 23% 23% 24% 21% 3.5% 3.9% 4.7% 4.2% 6.4% 10% 9% 8% 8% 8% 5% 8% 6% 5% 6% 2005 2006 2007 2008 2009 % OEM Share – Total Revenues US$ $13.2Bi $16.6Bi $19.3Bi $22.2Bi $17.2Bi 2010 763 6.9% 2010 $18.2Bi 19% 27% 7% 22% 21% 6% 10% 20% 23% 12% 13% 10% 3%
2011-20 Market Forecast World Deliveries More than 10,000 jets: US$ 210 billion over the next 10 years Forecast New bizjet deliveries (Units) ULTRA LARGE ULTRA-LONG RANGE LARGE SUPER MID-SIZE MID-SIZE MID-LIGHT LIGHT ENTRY*
Business Jets Traffic US/FAA Bizjet Flight Activity European Bizjet Flight Activity
Pre-owned Inventory: Recovering Business Jets For Sale
Presence in more than 40 countries.
Defense and Security Portfolio ISR  (Intelligence, Surveillance and Reconnaissance) Advanced Training and Light Attack   Transport of Authorities Modernization Programs Command and Control Systems Military Tactical Transport Services
Super Tucano • Firm orders: 180 aircraft • Brazil: 99  • Colombia: 25 • Dominican Republic: 8 • Chile: 12 • Ecuador: 18 • Indonesia: 8 • XE Aviation: 1 • Undisclosed: 9 • Deliveries: 156 aircraft • To be delivered: 24 aircraft • Prospects: • Latin America • South East Asia • USA • Africa
[object Object],[object Object],[object Object],[object Object],[object Object],Length: 33.81 m (110.9 ft) Wingspan: 35.06 m (115.0 ft) Height: 10.26 m (33.7 ft) EMBRAER KC-390
EMBRAER KC-390 Main Partners Selected DRS Defense:  cargo handling and aerial delivery system (CHS/ADS). Messier-Bugatti-Dowty : wheels, brakes, landing gear extension and retraction system, and nose wheel steering manifold. Goodrich:  primary flight control system (electro-hydrostatic actuators, electro-backup hydrostatic actuators, actuator electronics, and electrical controls). Rockwell Collins : Pro Line Fusion avionics. ELEB:  landing gears. Liebherr-Aerospace:  environmental and cabin pressure control systems. Esterline : autothrottle system. IAE:  V2500 engine. BAE Systems:  fly-by-wire  flight control systems (computers and electronics).
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Harpia Acquisitions and Partnerships
Brazilian Army Priorities SISFRON Integrated Borders Monitoring System Estimate: US$ 4 Billion Comprising radars, communication networks, C4I, unmanned air vehicles (UAV) and armored vehicles
Revenue by Region - 2010
 
8.0% Current Outlook New Outlook US$ 465 million ~11% 2011 Outlook Revision US$ 420 million Net Revenues EBIT EBIT margin US$ 5.6 billion 7.5% US$ 5.8 billion ~4% US$ 610 million EBITDA EBITDA margin 11.0% 12.0% US$ 700 million ~15%
Research Development US$ 90 million  US$ 210 million CAPEX US$ 200 million 2011 Outlook Revision Current Outlook US$ Million YTD Outlook 38 83 71 90 160 200 Research Development CAPEX US$ 160 million New Outlook US$ 90 million  US$ 200 million
Financial Results IFRS
Net Revenues / SG&A Expenses Net Revenues - US$ Million Net Revenues Gross Margin SG&A Expenses - US$ Million Selling Expenses G&A Expenses 142 167 173 143 151 Guidance 2011 - Net Revenue: US$ 5.8 billion
Income from Operations / EBITDA EBIT EBIT Margin Income from Operations - US$ Million EBITDA EBITDA Margin EBITDA - US$ Million EBIT: US$ 465 million EBIT Margin: 8% 2011 Outlook -   EBITDA: US$ 700 million EBITDA Margin: 12% 2011 Outlook -
Net Income / Free Cash Flow Net Income - US$ Million Free Cash Flow - US$ Million Net Income Net Margin
Indebtedness Profile / Net Cash Indebtedness Maturity Net Cash - US$ Million Long-term Short-term Loans Average Maturity (Years) Total Debt 2Q11: US$ 1.72 Billion Total Cash 2Q11: US$ 2.13 Billion
 
2010 Accomplishments 10th anniversaries: NYSE Euronext listing. Presence in China, Singapore and GPX.  Embraer elected for the 3rd consecutive year, one of the best companies to work for in Brazil.  Embraer selected as Gold Class  on the DJSI and also on the ISE.
Lean Results: E-Jets Final Assembly  Line Transformation
Automation Initiatives 2010 Automation initiatives continues in 2011…
Sustainability Initiatives Brazilian Alliance for Bio-fuel Reforestation Projects ISO 14001 and OHSAS 18001 Certifications Sustainability Initiatives 1st ethanol powered aircraft in the World Ipanema Recycling Corporate Values Greener Technology Social Activities
Ownership Structure 723,665,044 Voting Shares June, 2011
Investors’ Return Pay Out EPADS 2006-2008: US GAAP 2009-2010: IFRS * EPADS and Pay Out Dividend Yield (%)
 
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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Embraer october 2011 book

  • 1.  
  • 2. Company Highlights Investment grade rating by Moody’s and S&P. Strong balance sheet with solid net cash position. Company established in 1969, privatized in 1994 and listed in USA in 2000. Sector leader in the Dow Jones Sustainability Index 2011/2012. Broad customer base in commercial and executive aviation, defense and security segments. Global footprint. Highly experienced management team.
  • 3.
  • 4. Executive Large Jets Aircraft Deliveries Executive Light Jets Commercial Jets Phenom * 102+* 18* 100* 2011 deliveries estimates Legacy e Lineage
  • 5. Net Revenue Guidance 2011: Net Revenue - US$ 5.8 billion 2006-2008: US GAAP 2009-2010: IFRS * ** 2011: YTD Guidance US$ Million Executive aviation Commercial aviation Aviation services/others Defense and security Net Revenue Gross Margin
  • 6. Firm Order Backlog Firm Order Backlog Backlog/Revenue (Years) US$ Billion
  • 7. Revenue Breakdown Revenue by Segment Revenue by Region Commercial aviation Executive aviation Others Aviation services Defense and security 6.33 5.49 5.36 Net Revenue US$ Billion * 6.33 5.49 5.36 2008: US GAAP 2009-2010: IFRS * North America Brazil Europe Asia Pacific Latin America Others
  • 8. E-Jets: 60 Airlines from 40 Countries
  • 9. Product Portfolio capacity: 70 to 80 seats range: 2,100 nm (3,900 Km) capacity: 78 to 88 seats range: 2,000 nm (3,700 Km) capacity: 98 to 114 seats range: 2,400 nm (4,500 Km) capacity: 108 to 122 seats range: 2,200 nm (4,100 Km) capacity: 37 seats range: 1,750 nm (3,250 Km) capacity: 50 seats range: 1,550 nm (2,900 Km) capacity: 50 seats range: 2,000 nm (3,700 Km) capacity: 44 seats range: 1,650 nm (3,050 Km)
  • 10. Commercial Aviation - Order Book 2Q11 Firm Orders Options Total Deliveries Firm Backlog ERJ 145 Family 890 - 890 890 - EMBRAER 170 190 32 222 182 8 EMBRAER 175 189 285 474 136 53 EMBRAER 190 519 305 824 349 170 EMBRAER 195 105 36 141 75 30 TOTAL E-JETS 1.003 658 1.661 742 261 TOTAL 1.893 658 2.551 1.632 261
  • 11. E-Jets Customer Base Evolution
  • 12. Worldwide Distribution Diversified Customers Across 5 Continents Firm Orders Commercial Jets Market Share Evolution Worldwide Considering Accumulated Net Orders 60-120 Seats Jets Backlog Europe & CIS Middle East & Africa Latin America North America Asia Pacific & China 43% 30% 3% 7% 5%
  • 14. World Replacement Opportunities (Jets 61-120 seats) Nearly 1,000 aircraft with more than 15 years old
  • 15.
  • 16. 110 Seats Competitive Landscape 70-90 Seats 100 Seats
  • 17. More than 400 executive jets in operation.
  • 18.
  • 19. Market Share 25% 24% 22% 21% 20% 33% 35% 37% 40% 33% 7% 7% 7% 6% 9% 12% 13% 13% 14% 11% 2.7% 3.1% 3.5% 3.3% 14% 19% 16% 16% 14% 11% 2% 3% 2% 1% 2% 2005 2006 2007 2008 2009 % OEM Share – Total units 749 885 1,040 1,154 870 Others Hawker-Beech Embraer Gulfstream Dassault Cessna Bombardier Deliveries share (units) Revenue share (US$ - based on B&CA list prices) Market Deliveries 2010: 763 units. Embraer Deliveries: 145 units. Market Revenue 2010: $18.2 Bi. Embraer Revenue: $1.1 Bi. 30% 29% 28% 29% 28% 16% 16% 17% 18% 12% 11% 11% 12% 12% 18% 23% 23% 23% 24% 21% 3.5% 3.9% 4.7% 4.2% 6.4% 10% 9% 8% 8% 8% 5% 8% 6% 5% 6% 2005 2006 2007 2008 2009 % OEM Share – Total Revenues US$ $13.2Bi $16.6Bi $19.3Bi $22.2Bi $17.2Bi 2010 763 6.9% 2010 $18.2Bi 19% 27% 7% 22% 21% 6% 10% 20% 23% 12% 13% 10% 3%
  • 20. 2011-20 Market Forecast World Deliveries More than 10,000 jets: US$ 210 billion over the next 10 years Forecast New bizjet deliveries (Units) ULTRA LARGE ULTRA-LONG RANGE LARGE SUPER MID-SIZE MID-SIZE MID-LIGHT LIGHT ENTRY*
  • 21. Business Jets Traffic US/FAA Bizjet Flight Activity European Bizjet Flight Activity
  • 22. Pre-owned Inventory: Recovering Business Jets For Sale
  • 23. Presence in more than 40 countries.
  • 24. Defense and Security Portfolio ISR (Intelligence, Surveillance and Reconnaissance) Advanced Training and Light Attack Transport of Authorities Modernization Programs Command and Control Systems Military Tactical Transport Services
  • 25. Super Tucano • Firm orders: 180 aircraft • Brazil: 99 • Colombia: 25 • Dominican Republic: 8 • Chile: 12 • Ecuador: 18 • Indonesia: 8 • XE Aviation: 1 • Undisclosed: 9 • Deliveries: 156 aircraft • To be delivered: 24 aircraft • Prospects: • Latin America • South East Asia • USA • Africa
  • 26.
  • 27. EMBRAER KC-390 Main Partners Selected DRS Defense: cargo handling and aerial delivery system (CHS/ADS). Messier-Bugatti-Dowty : wheels, brakes, landing gear extension and retraction system, and nose wheel steering manifold. Goodrich: primary flight control system (electro-hydrostatic actuators, electro-backup hydrostatic actuators, actuator electronics, and electrical controls). Rockwell Collins : Pro Line Fusion avionics. ELEB: landing gears. Liebherr-Aerospace: environmental and cabin pressure control systems. Esterline : autothrottle system. IAE: V2500 engine. BAE Systems: fly-by-wire flight control systems (computers and electronics).
  • 28.
  • 29. Brazilian Army Priorities SISFRON Integrated Borders Monitoring System Estimate: US$ 4 Billion Comprising radars, communication networks, C4I, unmanned air vehicles (UAV) and armored vehicles
  • 31.  
  • 32. 8.0% Current Outlook New Outlook US$ 465 million ~11% 2011 Outlook Revision US$ 420 million Net Revenues EBIT EBIT margin US$ 5.6 billion 7.5% US$ 5.8 billion ~4% US$ 610 million EBITDA EBITDA margin 11.0% 12.0% US$ 700 million ~15%
  • 33. Research Development US$ 90 million US$ 210 million CAPEX US$ 200 million 2011 Outlook Revision Current Outlook US$ Million YTD Outlook 38 83 71 90 160 200 Research Development CAPEX US$ 160 million New Outlook US$ 90 million US$ 200 million
  • 35. Net Revenues / SG&A Expenses Net Revenues - US$ Million Net Revenues Gross Margin SG&A Expenses - US$ Million Selling Expenses G&A Expenses 142 167 173 143 151 Guidance 2011 - Net Revenue: US$ 5.8 billion
  • 36. Income from Operations / EBITDA EBIT EBIT Margin Income from Operations - US$ Million EBITDA EBITDA Margin EBITDA - US$ Million EBIT: US$ 465 million EBIT Margin: 8% 2011 Outlook - EBITDA: US$ 700 million EBITDA Margin: 12% 2011 Outlook -
  • 37. Net Income / Free Cash Flow Net Income - US$ Million Free Cash Flow - US$ Million Net Income Net Margin
  • 38. Indebtedness Profile / Net Cash Indebtedness Maturity Net Cash - US$ Million Long-term Short-term Loans Average Maturity (Years) Total Debt 2Q11: US$ 1.72 Billion Total Cash 2Q11: US$ 2.13 Billion
  • 39.  
  • 40. 2010 Accomplishments 10th anniversaries: NYSE Euronext listing. Presence in China, Singapore and GPX. Embraer elected for the 3rd consecutive year, one of the best companies to work for in Brazil. Embraer selected as Gold Class on the DJSI and also on the ISE.
  • 41. Lean Results: E-Jets Final Assembly Line Transformation
  • 42. Automation Initiatives 2010 Automation initiatives continues in 2011…
  • 43. Sustainability Initiatives Brazilian Alliance for Bio-fuel Reforestation Projects ISO 14001 and OHSAS 18001 Certifications Sustainability Initiatives 1st ethanol powered aircraft in the World Ipanema Recycling Corporate Values Greener Technology Social Activities
  • 44. Ownership Structure 723,665,044 Voting Shares June, 2011
  • 45. Investors’ Return Pay Out EPADS 2006-2008: US GAAP 2009-2010: IFRS * EPADS and Pay Out Dividend Yield (%)
  • 46.  
  • 47. 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.