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Embraer Kc-390 10 th Embraer Day Embraer Defense Systems Orlando José Ferreira Neto Executive Vice President Defense Market March, 2010 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. EMBRAER PROPRIETARY INFORMATION 2 Retrospective – Embraer Defense in 2009 • Important contracts with the Brazilian Ministry of Defense • KC-390 Program with the Brazilian Air Force (FAB) • A-4 Modernization Program with the Brazilian Navy • Super Tucano • 100 th production aircraft delivered to FAB • First deliveries to the Dominican and Chilean Air Forces • New contracts for two undisclosed customers (9 aircraft) • Deliveries of all Phenom 100 (four aircraft) contracted by the Pakistan Air Force • Delivery of the two Brazilian presidential aircraft (E190PR) • First flight of the AMX prototype #1 in the A-1M program • Customer Services business expansion • Sales of US$ 1.6 billion and revenues of US$ 499 million AA very very special special year year for for Embraer Embraer Defense Defense with with excelle excellentnt results results andand significant significant achievements achievements EMBRAER PROPRIETARY INFORMATION 3 Embraer Defense Products and Services ISR (Intelligence, Surveillance and Advanced Training and Light Attack Reconnaissance) Transport of authorities Modernization Programs Military Tactical Transport Systems and Services EMBRAER PROPRIETARY INFORMATION 4 Super Tucano Deliveries to FAB FAB • A-29 (FAB designation) • Single and twin-seat versions Brazilian Air Force • 99 firm orders • 85 already delivered Ref.: 12/Mar/2010 EMBRAER PROPRIETARY INFORMATION 5 Super Tucano to Export Market – Delivering on time Colombian Air Force Chilean Air Force • 25 aircraft • 12 aircraft • All delivered • 4 already delivered Dominican Air Force Ecuadorian Air Force • 8 aircraft • 24 aircraft • 2 already delivered • 4 already delivered Ref.: 12/Mar/2010 EMBRAER PROPRIETARY INFORMATION 6 Training and Operation Support System • TOSS: Training and Operation Support System • Flight Simulator • CBT (Computer Based Training) • MPS (Mission Planning Station) and MDS (Mission Debriefing Station) • Fully developed by Embraer • Customers: Colombia, Chile, Ecuador and Dominican Republic. EMBRAER PROPRIETARY INFORMATION 7 Super Tucano • Firm orders: 178 aircraft • Training and COIN aircraft Market • Brazil: 99 Forecast 2020 • Colombia: 25 • 700 aircraft / US$ 8 bi • Dominican Republic: 8 • Chile: 12 • Ecuador: 24 • Undisclosed: 10 • Prospects: • South East Asia • Africa • Deliveries: 121 aircraft Ref.: 12/Mar/2010 • Americas • To be delivered: 57 aircraft AnAn affordable affordable and and comprehensive comprehensive solution solution for for traini trainingng and and COIN COIN missions missions with with excellentexcellent market market acceptance acceptance and and with with promising promising pers perspectives.pectives. EMBRAER PROPRIETARY INFORMATION 8 EMB 145 AEW&C – India Embraer platforms and DRDO/CABS mission systems Mission Systems: • Primary and Secondary Radars • Satcom • COMINT / ELINT • Countermeasure Systems Platform improvements: Contract: • In-flight refueling system • Three EMB 145 platforms • New electrical generation system • Contract signed in July 2008 • New cooling system • First delivery in 2011 DRDO: Defence Research and Development Organization / CABS: Centre for Airborne Systems EMBRAER PROPRIETARY INFORMATION 9 Embraer ISR Systems • Firm orders: 18 aircraft • Deliveries: 15 aircraft in operation • Brazilian Air Force: 8 EMB 145 AEW&C Airborne Early Warning and Control • Hellenic Air Force: 4 • Mexican Air Force: 3 • Under development: • DRDO/CABS: 3 EMB 145 AGS Airborne Ground Surveillance • Prospects: • Multimission Aircraft – India: 9 Legacy 600 • Opportunities in South Asia, South America and Middle East EMB 145 MP Maritime Patrol • ISR Market Forecast 2020 • 370 aircraft / US$ 30 bi Cost-effectiveCost-effective solutions solutions to to address address a a growing growing marke market t Multimission Aircraft EMBRAER PROPRIETARY INFORMATION 10 Transport of authorities • Recent deliveries: • 2 EMBRAER 190 PR (FAB) • 1 Legacy 600 (Panama) • 4 Phenom 100 (Pakistan Air Force) • 1 ERJ 135 (Royal Thai Army) • Next delivery: EMBRAER 190 PR • 1 ERJ 135 (Royal Thai Navy): 4Q2010 • Prospects: • Opportunities in South America, South Asia, Europe and Africa. Phenom 100 • Market Forecast 2020 • 400 aircraft / US$ 6.5 bi Legacy 600 ERJ 135 TheThe most most complete complete portfolio portfolio delivering delivering satisfaction satisfaction and and flexibility flexibility to to our our customers customers EMBRAER PROPRIETARY INFORMATION 11 Modernization programs Brazilian Air Force – A-1M • 43 aircraft • Three prototypes in ground and flight tests • A-1 revitalization contract under discussion Brazilian Air Force – F-5M Brazilian Navy – A-4 • 46 aircraft • 33 already delivered • 12 aircraft • Additional batch of F-5s and A-Darter missile integration under discussions • First prototype at GPX-CS Ref.: 12/Mar/2010 Tailor-madeTailor-made to to fulfill fulfill the the Brazilian Brazilian Armed Armed Forces Forces n needseeds EMBRAER PROPRIETARY INFORMATION 12 Customer Support – Defense Market • Material Support • Pool • CLS (Contractor Logistic Support) • ESSG (Embraer Support Solutions for Government)… Customer Support Revenue 70 63 60 50 44 39 40 32 30 US$ US$ million 20 10 0 2006 2007 2008 2009 GrowingGrowing business business opportunities opportunities related related to to new new trend trendss in in support support programs programs EMBRAER PROPRIETARY INFORMATION 13 EMBRAER KC-390 • New tactical military transport aircraft • Payload: 19 ton / Range: 1450 nm (2685 km) • Contract signed with Brazilian Air Force in April 2009 • Currently in “Preliminary Design Phase” • Market Forecast 2025 • 700 aircraft / US$ 50+ bi EMBRAER PROPRIETARY INFORMATION 14 EMBRAER KC-390 Three-view EMBRAER PROPRIETARY INFORMATION 15 EMBRAER KC-390 Master schedule 2009 2010 2011 2012 2013 2014 2015 2016 Preliminary Design Initial Definition Joint Definition Detailed Design and Certification Phase Phase - PD Phase - IDP Phase - JDP DDP Wind Tunnel PDR CDR Testing LoadsLoads CalculationCalculation StructuresStructures CalcCalc DrawingsDrawings Partnership and Supplier Procurement ToolingTooling 1 2 Prototypes IOCIOC FOCFOC StructuralStructural TestingTesting ProgramProgram running running on on schedule, schedule, geared-up geared-up for for full-sca full-scalele development development and and also also for for selectionselection of of the the main main partners. partners. EMBRAER PROPRIETARY INFORMATION 16 EMBRAER KC-390 Program Update Preliminary Design Phase • Aerodynamic configuration definition • Structural architecture definition • Systems technologies definition • Several wind tunnel test campaigns performed or KC-390 model for the wind tunnel test under execution • Cockpit mock-up and Engineering simulator in use • Cargo compartment volumetric mock-up Section of the cargo compartment volumetric mock-up MainMain focus: focus: risk risk mitigation mitigation EMBRAER PROPRIETARY INFORMATION 17 F-X2 Program Status • Brazilian F-X program restarted in May 2008 Short-listed contenders: • Multi-role fighter to replace the current fleet of fighters (F-2000, F-5M, A- 1M) • Initial batch of 36 airplanes • Strong emphasis in offset and technology transfer mainly for the Brazilian aerospace industry and Government agencies. Boeing F -18 E/F Super Hornet • Embraer preliminary agreements with each of the short-listed contenders covering cooperation in technological areas related to the fighter development, manufacture and support, and other Embraer projects. • In 2009: Proposals delivered in February 2009, and revised in May 2009. • Final decision by the Brazilian Government expected soon. Dassault Rafale • Negotiations of FAB/winning bidder purchase contract and offset agreements with industry negotiations through 2010. Saab Gripen NG EMBRAER PROPRIETARY INFORMATION 18 Embraer C4I System • Embraer’s experience in C4I System (Mexico) SATCOM Aerial • R&D projects on-going Surveillance Tactical Maritime Patrol related to C4ISR systems Radars • Several solutions for Command and Control Fighters IntranetIntranet System • Data Link specification and Military and development Civilian Meteorologic Telephone al Information C4ISR – Command, Control, Communication, Net • Customized solutions (e.g. Computer, Information, Intelligence, Link BR2 for Brazil) Surveillance and Reconnaissance • Data links for Embraer SENEAM InterceptorsInterceptors
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