E-Jets Share - Deliveries 7% 6% Others Others 11% 6% E-Jets 25% 51% 32% Bombardier 62%
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Commercial Aviation Paulo Cesar Silva, President & CEO Feb/2014 Strategic Objectives • Leadership in the Commercial Aviation (up 130 seats) • Increased results from Services and Support • Products that satisfy market needs • Diversified customer base • Customer base expansion through leasing companies • Excellence in Customer Experience (ECE) ERJ 145 Family • 704 ERJs in service with schedule & non-schedule airlines • ERJ customer base increased from 40 operators in 2008 to 60 in 2013 • Increased presence in non-mature countries – regional air transportation: Air Zimbabwe - Zimbabwe Air26 - Angola Aero Calafia – Mexico Africa World Airlines - Ghana Punto Azul - Equatorial Guinea Mocambique Expresso - Mozambique 1,400+ Embraer Commercial Aviation Net Orders 1,051 Global Market Success 1,000+ 1,400+ firm E-Jet orders 862 Deliveries 1,000+ deliveries 764 802 400+ backlog units 605 440 334 245 118 60 112 46 1999 2001 2003 2005 2007 2009 2011 2013 Source: Embraer (Dec/2013) Leadership in the 70 to 130-Seat Jet Segment Share - Net Orders Sukhoi Comac E-Jets Share - Deliveries 7% 6% Others Others 11% 6% E-Jets 25% 51% 32% Bombardier 62% Bombardier Source: EMBRAER and OEMs (as of Dec/2013) 2013 - Market Confidence in E-Jets 349 Firm Orders, 487 Options. E175 – Leadership in the J70-90 segment North America Orders (Dec/2012 – Dec/2013) Bombardier E175 CRJ900 70 277 20% 80% Direct Orders - Lessors A testament to E-Jet Success 2013 2012 2011 2010 2008 2000 E-Jet Customers on Every Continent + 65 Airlines ● 45 Countries ● 1,000 Deliveries Excellence in Customer Experience Highest levels of customer satisfaction with Embraer products and services Excellence in Customer Experience eSolutions portfolio : continuous improvement and expansion E-Jets Product Update A seamless solution for today and tomorrow E-Jets - Continually Evolving 2008 2009 2011 2012 2013/2014 2015 ETOPS 120’ E190 Steep Steep Noise Maintenance New Avionics Approach Climb Improvement Improvements Functionalities Electronic Flight Bag Package ADSB-out Fuel Burn Interior Reduction Improvements SHM / PHM E-Jets - Fuel Burn Improvements Door Rain Deflector Optimized Improved Tail Cone Reduced Horizontal Tail Gaps New Red Beacon New Wingtip New Ram ECS & Anti-Ice (E175 only) Air Door New Wheel Optimization Fairing E-Jets – Writing the Second Chapter Fuel Burn Improvements Fuel Burn per Seat E175-E2 (80 seats) E190-E2 (97 seats) E195-E2 (118 seats) vs. E175 (76 seats) vs. E190 (97 seats) vs. E195 (106 seats) 0% -5% -10% -15% -16% -16% -20% -25% -23% Target values for 600 nm sector; Dual Class configuration Market Applications 20-Year Market Forecast (70 to 130-seat Jets) - 6,400 Deliveries * E175-E2 Most efficient “hub feeder” Lower cost-per-seat than current turboprops E190-E2 Efficient complement to narrowbody operations New market developer Capacity growth for current E-Jet operators E195-E2 Similar cost-per-seat to A320neo and 737-8 Max Low Cost operation in mid-density markets * Embraer market forecast Entry into Service E190-E2 EIS | 1H 2018 E195-E2 EIS | 2019 E175-E2 EIS | 2020 E-Jets E2 - Strong Market Acceptance in 2013 300 E-Jets E2 Commitments 100 firm + 100 purchase rights E175-E2 for SkyWest 50 firm + 50 options E190-E2/195-E2 for ILFC Embraer welcomes Air Costa to the growing E2 Family 50 firm + 50 purchase rights 25 E190-E2 firm + 25 purchase rights 25 E195-E2 firm + 25 purchase rights Thank you Jackson Schneider, CEO February, 2014 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. Agenda General Information Main Programs Status Results Future projects General Information OVER 52 ARMED FORCES IN 50 COUNTRIES WITH REVENUES (2013) OF US$ 1,2 billion Product Portfolio ISR (Intelligence, Light attack and Surveillance and Reconnaissance) advanced training Modernization programs Tactical military transport Transport aircraft Land C4I UAVs Radar Satellite systems Services Command and UAVs MRO Remote Sensing Land Defense Satellite Control systems Systems integration Geostationary of Simulators Aero Aerial Surveillance Defense and Air traffic structures Radar Communications Management SISFRON Modernization (SGDC) Control of avionics implementation systems Systems of Systems C4I 100% 51% 65% 90% 100% 51% A-29 Super Tucano •Firm orders: more than 210 aircraft Brazil: 99 •More than 170 aircraft delivered Colombia: 25 Dominican Republic: 8 Super Tucano Addressable Market Forecast Chile: 12 2020 (US$ million) Long-term Ecuador: 18 700 Indonesia: 16 Greystone (TacAir): 1 Mauritania: 2 Medium-term 2,000 Short-term Burkina Faso: 3 800 Angola: 6 The U.S. Air Force (USAF) selected the A-29 USA: 20 Super Tucano for its Light Air Support (LAS) Total Market Forecast: program. The selection was further validated by 300 aircraft the GAO (General Accountability Office) of the US$ 3.5 billion Ref.: Dez,2013 United States. LAS – Jacksonville/USA • Highly experienced personnel • Strong local leadership • 1st Delivery: End of 1°Sem 2014 • New distribution channels: BPC and FMS Embraer KC-390 A new tactical military transport and tanker aircraft First flight: End of 2014 Colombia Czech Rep. Six countries Brazil Argentina Chile Portugal (28) (12) (6) (6) (6) (2) Letters of intent totaling 60 aircraft Boeing and Embraer signed an agreement to Total Market Forecast 2025: share technical knowledge and evaluate 700 aircraft markets for joint sales efforts. US$ 50+ bi The Brazilian Air Force (FAB) and Embraer concluded the Critical Design Review in the first quarter of 2013. Ref.: December, 2013 This information is the property of Embraer and cannot be used or reproduced without written consent. Embraer KC-390 Fuselage assembly in Gavião Peixoto Final assembly hangar in Gavião Peixoto with 17.000 m² Wing assembly in Gavião Peixoto EMBRAERKC-390: KC-390: Main PARCEIROS partners E FORNECEDORES and suppliers Cabin Pressure Control Air Conditioning System System Troop seats Cargo Handling and and litters 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 Brake Control System System Armor Pilot / Co-pilot / ACM and Loadmaster Seats Steering Hydraulic Manifold Modernization program E-99 • 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. • Total: 43 aircraft, 26 already A1-M received by Embraer for modernization. • Delivery of the first modernized A-1 (A-1M) fighter jet to FAB. Modernization program Modernization addressable market Forecast 2025 (US$ million) Brazilian Navy A-4 Long- 12 aircraft term; 2 prototypes at GPX-CS 505 Medium- First flight of a modernized AF-1 aircraft, from term; the Brazilian Navy, in August 567 Short- term; 437 FAB F-5M 46 acft + 11 acft (2º batch) 46 delivered Total market forecast: 228 aircraft/ US$ 1.5 billions F-5M A-4 (AF-1) 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 AGS EMB 145 AEW&C Remote Sensing, Air-to-Ground Airborne Early Warning and Control Surveillance Ref.: July,2013 SISFRON The full scope of the Sisfron project will encompass the surveillance and protection of 16,886 kilometers of Brazilian land borders, stretching through 11 Brazilian states and 10 neighboring countries. • Savis concluded the selection of the main suppliers for all subsystems of the SISFRON Project • High level of satisfaction with project execution among the Army’s Top Commanders. Satellite Visiona Tecnologia Espacial SA signed the contract to provide geostationary satellite of the SGDC project. Kick-off meeting with all involved parties took place in early 2014. Results: Revenue Revenue Evolution (US$ Millions) CAGR 27% Ref.: Dez, 2013 Results: Backlog Backlog Evolution (US$ Billions) Ref.: Dez, 2013. Revenue Breakdown Evolution 2012 2013 * Radar (Bradar) C4I (Atech) UAV (Harpia) Satellite (JV Embraer/Telebrás) Savis (SISFRON) Ref.: Dez, 2013 Brazilian government future projects 2013 2016 2020 2030 NAVY SisGAAZ SISFRON (phase 1) SISFRON (phase 2) ARMY SISFRON (subsequent phases) KC-390 AIR Fighter Jet Tender FORCE UAVs OTHERS Satellites Embraer Executive Jets Marco Tulio Pellegrini President & CEO – Embraer Executive Jets Embraer Executive