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Executive aviation embraer_day_2011
This presentation provides an overview of the executive aviation market from Embraer's perspective. It discusses forward-looking statements and acknowledges uncertainty in projections. Charts show projections for global GDP growth remaining steady around 3% annually through 2014. U.S. corporate profits are up significantly from 2009 levels though remain below pre-crisis averages. Global stock markets saw over a 10% drop highlighted in late 2008. Business jet traffic in the U.S. and Europe has rebounded in 2011 after declines in 2009. The used aircraft market inventory decreased in 2010 after large increases in prior years.
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Executive aviation embraer_day_2011
- 1. Embraer Day Executive Aviation Overview Luís Carlos Affonso Embraer Executive Vice-President, Executive Jets São Paulo – March 25th, 2011
- 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.
- 3. World GDP growthrates Real GDP growth rate, YoY% 5 4 The Economist – Mar11 3 The Economist – Dec10 2 Growth Rate % The Economist – Oct10 1 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -1 -2 -3 Source 2010 2011 2012 2013 2014 World Real The Economist – Mar11 3,8% 3,1% 3,2% 3,3% 3,0% GDP growth The Economist – Dec10 3,6% 2,7% 2,9% 3,0% 3,0% The Economist – Oct10 3,1% 2,5% 2,9% 3,0% 3,1% Source: The Economist, – 2010 // Mar 2011
- 4. U.S. Corporate Profits 1.600 1.400 +10% Current 1.200 billions of dollars 1.000 Financial 2007 avg 800 600 Nonfinancial +100% 400 Low 200 0 I II III I I II III I I II III I I II III I I II III I I II III I I II III 2004 2005 2006 2007 2008 2009 2010 Source: BEA – Bureau of Economic Analysis and Embraer estimates – February 2011
- 5. Stock markets Global StockMarkets return % RTS (Russia) SSE Composite (China) IBOVESPA (Brazil) S&P500 (US) FTSE100 (UK) Highlighted area: >10% overall drop Source: Yahoo Finance, February 2011
- 6. Business Jets Traffic– United States FAA - Total Monthly Flights (Thousands) 230 220 210 200 190 2006 2004 180 2007 2005 170 2011 2010 160 150 2009 140 2008 130 ov pr ug ec p ct l n ar b n ay Ju Se Ja Ju Fe O A M N D A M Source: FAA – Mar 20111 – 2011 data is preliminary
- 7. Business Jets Traffic– Europe Eurocontrol - Total Monthly Flights (Thousands) 60 55 50 45 40 2007 2011 2010 2006 35 2009 2008 30 2005 2004 25 ov ug pr ec p l ct n ar b n ay Ju Se Ja Ju Fe O A M N D A M Source: Eurocontrol – Mar 2011
- 8. Used market: inventory Business Jets For Sale 2008: Net increase of 1100 a/c 2009: Net increase of 33 a/c 2010: Net decrease of 155 a/c 2011: Net decrease of 94 a/c 3500 28% Fleet up to 5 yrs and positions Positions 26% Fleet up to 5 yrs Fleet from 6 to 10 yrs 3000 24% Fleet older than 10 yrs % for sale (per total active fleet) 14.2% 9.3% 22% 2500 up to 10 yrs % for sale 2555 jets 761 jets 20% 18% % of active fleet 2000 16% Units 14% 1500 12% 10% 1000 8% 6% 500 4% 2% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 99 00 01 02 03 04 05 06 07 08 09 10 11 Source: Embraer analysis – March/2011
- 9. Industry deliveries –historical evolution Units 1.154 1.040 885 870 749 763 2005 2006 2007 2008 2009 2010 Source: GAMA reports –Embraer analysis – Mar/11
- 10. Industry deliveries –historical evolution Revenue (billions of US$) 22,2 19,3 18,2 16,6 17,2 13,2 2005 2006 2007 2008 2009 2010 Source: GAMA reports –Embraer analysis – Mar/11 based on B&CA list prices
- 11.
- 12. 2011-20 Market Forecast– World Deliveries ULTRA LARGE ULTRA-LONG RANGE New bizjet deliveries (Units) 1.400 LARGE Forecast SUPER MID-SIZE 1.200 MID-SIZE MID-LIGHT 1.000 LIGHT ENTRY* 800 600 400 200 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: ACAS and GAMA for the historical data. B&CA list prices and Embraer analysis, Mar 2011 10,000 jets and US$ 210 billion over the next 10 years
- 13. 2011-20 Market Forecast– World Deliveries 10,000 jets and US$ 210 billion over the next 10 years Source: Embraer VAE analysis – Aug/2010.
- 14. 2011-2020 revenues forecast 43.2% 33.3% North America & EMEA Caribbean US$ 70.0 Bi US$ 90.5 Bi 6.8% China US$ 14.3 Bi 16.7% Asia Pacific 6.8% US$ 35.0 Bi Latin America* 3.0% US$ 14.2 Bi Brazil US$ 6.3 Bi Source: Embraer VAE analysis – Aug/2010.
- 15. Vision To becomea major player in the Business Aviation Market by 2015 through innovative and differentiating product and service solutions with added value to our customers and shareholders.
- 16. Value Proposition Ou form Pe mf m tst r t Co miu or an nce e din Pr a Advanced g Technology & Innovations High Reliability Stro m ics ng o no Diff Ec eren rt tiate p po d Su
- 17. Embraer Product Portfolio Ultra-large Ultra-Long Range Large Super Mid-Size Mid-size Mid-light Light Entry
- 18. Customer Support &Services
- 19. Customer Support Solution Service Centers Network - global coverage O ve r US $ 10 0m i nv e illio stm n Logistics and Parts Support – global coverage en t Field and Product Support Customer Care Program - EEC Training Programs – total solution
- 20. Service Centers Network Embraer Service Center Contracted Authorized Network Presence in 43 locations
- 21. Service Centers Network– 2010/11 expansion EXECUJET Clay Lacy Dubai, UAE CA, EUA New S.C. New S.C. Dec/10 Feb/10 Airworks India New S.C. Phenom Embraer Feb/11 Bradley, CT New S.C. Feb/11 EXECUJET TRANSPAÍS Sydney, Australia Mexico New S.C. New S.C. Mar/11 Oct/10 Embraer Brazil EXECUJET Expansion Melbourne, Australia Embraer Service Center Jun/10 New S.C. Contracted Authorized Network Feb/10
- 22. Customer Relationship WebPortal Parts E-commerce Warranty Embraer Parts Exchange Program Embraer Executive Care Management Technical Publications Web Based Training AHeAD (Health Monitoring) Learning Operational Software Management System Flight Docs (Maintenance Control Customer Forum Integrated relationship tools to enhance customer’s experience
- 23. 2010 Performance and2011 Outlook
- 24. Fleet in operation Phenom 100 Legacy 600/650 ~200 a/c >190 a/c Phenom 300 Lineage 1000 / 170 Shuttle ~30 a/c >10 a/c
- 25. 2010 Performance -Revenue share (US$) Revenue (US$ - based on B&CA list prices) 2010 $13,2Bi $16,6Bi $19,3Bi $22,2Bi $17,2Bi $18,2BiBi $ 18,2 % OEM Share – Total Revenues US$ 5% 8% 6% 5% 6% 10% 10% 8% 8% 8% Others 8% 4,1% 6% 3,4% 3,8% 4,6% 6,4% 6,9% Hawker-Beech 23% 22% 23% 24% 21% Embraer 21% Gulfstream 11% 11% 12% 12% 18% Dassault 22% 18% 18% 19% 19% Cessna 13% 7% Bombardier 29% 29% 28% 28% 28% 27% 2005 2006 2007 2008 2009 2010 Source: GAMA reports –Embraer analysis – Mar/11
- 26. 2010 Performance -Deliveries share (units) Units 2010 2010-Final 749 885 1.040 1.154 870 763 2% 3% 2% 1% 2% 3% 14% 11% 10% % OEM Share – Total units 19% 16% 16% Others 3,5% 3,3% Hawker-Beech 2,7% 3,1% 14,0% 19,0% 13% 13% 14% 12% Embraer 6% 11% 7% 7% 7% 13% Gulfstream 9% 12% Dassault 33% 35% 37% 40% Cessna 33% 23% Bombardier 25% 24% 22% 21% 20% 20% Source: GAMA reports –Embraer analysis – Mar/11 2005 2006 2007 2008 2009 2010
- 27. Melbourne Facility Ribbon-cutting ceremony:21 February 2011
- 28. Legacy 500 –Program Status Empennage: Horizontal tail Forward Fuselage Center Fuselage & Wing Stub Aft Fuselage Forward Fuselage
- 29. 2011 Delivery Outlook– Executive Jets Light jets 2011 Large jets 2011 units 100 units 18 Revenue: US$ 1.2 billion in Products + US$ 50 million in Services
- 30.
- 31. This presentation isthe property of Embraer S.A. ("Embraer") and shall not be copied, in whole or in part, or used in any manner, except with Embraer´s prior written consent. Embraer reserves the right to revise this document whenever occasioned by product improvements, governmental regulations or other good cause. All images: figures, finishing materials and colors are for illustration purpose only, and may not represent the real and final product accurately. Some features are optional items not included in the baseline aircraft and are subject to price increase and lead-time analysis. All data presented shall not be used as guarantee. Guaranteed specifications are listed in the technical description and represent the only binding guarantee. In the event of any conflict between this presentation and the technical description, the technical description shall govern.