The Conklin & de Decker Report Embraer Legacy 600 Created on August 21, 2019 by Doug Strangfeld © 2019 Conklin & de Decker Associates, Inc PO BOX 121184 1006 North Bowen, Suite B Arlington, TX 76012 www.conklindd.com Data version: V 19.1 Embraer Legacy 600 RANGE 3,091 nm SPEED 455 kts PASSENGERS 13 people Cost ACQUISITION COST ANNUAL COST VARIABLE COST FIXED COST $13,300,000 $2,467,829 $3,692/hr $991,117 MAX PAYLOAD 4,855 lb ENGINES 2 Rolls Royce AE 3007A1E TOTAL CABIN AREA 1,656 cu ft AVIONICS Honeywell Primus Elite WINGSPAN 65.7 ft APU Standard Assumptions This report uses custom assumptions that differ from Conklin & de Decker default values for Annual Utilization (Hours), Fuel Price (Jet A). ANNUAL UTILIZATION (DISTANCE) 160,400 nm FUEL PRICE (JET A) $4.45/gal ANNUAL UTILIZATION (HOURS) 400 hrs LABOR COST $136/hr AVERAGE SPEED (STANDARD TRIP) 401 kts ACQUISITION COST $13,300,000 Embraer Aircraft markets. The Brazilian government tried several times over three decades to launch a Legacy 600 domestic aircraft manufacturer. It finally succeeded in 1969, when Empresa Brasileira de Aeronautica (Embraer) was created as a government-owned Legacy Executive/Corporate Shuttle corporation. The Brazilian Government played a large part in Embraer’s early growth by providing license production contracts. Military contracts made up the majority of The Legacy is Embraer’s mid-size corporate and executive jet derived from the ERJ- Embraer’s production in the 1970s. The EMB 120 Brasilia was introduced to the 135 and ERJ-145 commercial regional jetliners. The Legacy Executive is configured civilian regional airline market in 1985 and was the first in the line of Embraer’s with 15 seats, the Corporate Shuttle with 19 seats. successful smaller airliners. While Embraer started life as a government-owned company, it finally privatized after many difficulties in 1994. It was sold in December Although the Legacy is derived from the regional jet family, the airframe underwent a 1994, with the Brazilian Government retaining interest with golden shares allowing it number of changes. Changes include the addition of winglets (Executive only) to veto power. A golden share is a nominal share that can outvote all other shares in a provide increased lift and improve efficiency with reduced drag of the tip vortex. Other shareholder meeting in certain specified circumstances. Initial public offerings on additions include fuselage strakes, underbelly and cargo compartment tanks, and the the New York Stock Exchange occurred in 2000. Embraer experienced a sharp rise in Honeywell Primus 1000 avionics suite. The Legacy is powered by two Rolls-Royce growth after privatization and is now prominent in the airline and business aviation AE3007-A1E engines. 2 of 23 © 2019 Conklin & de Decker Associates, Inc. Created on Aug 21, 2019, by Doug Strangfeld Data Version: V 19.1 Embraer Legacy 600 1. Cost ACQUISITION COST ANNUAL COST VARIABLE COST FIXED COST $13,300,000 $2,467,829 $3,692/hr $991,117 Total Annual Cost With Market Depreciation $3,372,229 44% - Variable Cost - $1,476,712 29% - Fixed Cost - $991,117 27% - Market Depreciation - $904,400 Hourly Variable Cost PER FLIGHT HOUR $3,692/hr Fuel 1 $1,615 Fuel $1,615 Additives — Maintenance $738 Maintenance Labor 2 $496 Parts Airframe/Engine/Avionics $135 Thrust Reverser Allowance — APU Allowance $107 Major Periodic Maintenance — Engine Reserves $746 Miscellaneous Reserves $592 Landing/Parking $64 Crew Expenses $346 Supplies/Catering $182 1. Fuel is calculated using Fuel Cost x Fuel Burn + 15% - 363 gal/hr 2. Maintenance Labor Cost is calculated using the ratio of Maintenance Labor Hours per Flight Hour and the Labor Rate: 3.65 labor-hr/Fhr @ $136/hr 3 of 23 © 2019 Conklin & de Decker Associates, Inc. Created on Aug 21, 2019, by Doug Strangfeld Costs are forward looking estimates based on Conklin & de Data Version: V 19.1 Decker Research. For comparison purposes only. Embraer Legacy 600 Annual Fixed Cost ANNUAL COST $991,117 Crew $562,900 Captain $178,000 Copilot $135,000 Flight Attendant $120,000 Benefits $129,900 Hangar $69,000 Insurance $33,780 Hull $21,280 Single Limit Liability $12,500 Aircraft Modernization $51,000 Training $62,000 Miscellaneous $212,437 Navigation Chart Service $14,847 Refurbish $185,640 Computer Maintenance Program $11,250 Weather Service $700 Other — 4 of 23 © 2019 Conklin & de Decker Associates, Inc. Created on Aug 21, 2019, by Doug Strangfeld Costs are forward looking estimates based on Conklin & de Data Version: V 19.1 Decker Research. For comparison purposes only. Embraer Legacy 600 2. Performance NORMAL CRUISE LONG-RANGE CRUISE MAXIMUM CRUISE 447 kts 424 kts 455 kts RATE OF CLIMB MAX CERT. ALTITUDE INITIAL CRUISE ALTITUDE TIME TO CRUISE ALTITUDE 2,639 ft/min 41,000 ft 39,000 ft 26 min ENGINE OUT RATE OF CLIMB ENGINE OUT CEILING 761 ft/min 23,276 ft Field Length FAR-91 2,310 ft FAR-135 2,888 ft FAR-121 3,835 ft Balanced Field Length 5,749 ft 3. Weight/Payload Weight Breakdown With Max Payload With Max Fuel With Max Payload With Max Fuel MAXIMUM PAYLOAD RANGE AT MAX PAYLOAD AVAILABLE PAYLOAD PASSENGER CAPACITY 4,855 lb 2,705 nm 1,169 lb 5.8 people RAMP 49,758 lb MAX TAKEOFF 49,604 lb MAX LANDING 40,785 lb ZERO FUEL 35,274 lb BASIC OPERATING 30,419 lb USABLE FUEL 18,170 lb USEFUL LOAD 19,339 lb 5 of 23 © 2019 Conklin & de Decker Associates, Inc. Created on Aug 21, 2019, by Doug Strangfeld Data Version: V 19.1 Embraer Legacy 600 4. Range Centennial Airport (APA • KAPA) Maximum Cruise 3,183 nm Long-Range Cruise 3,429 nm Map data ©2019 Long-Range Cruise Maximum Cruise RANGE AVERAGE SPEED RANGE AVERAGE SPEED 3,429 nm 406 kts 3,183 nm 429 kts ENDURANCE PASSENGERS ENDURANCE PASSENGERS 8.45 hrs 4 people 7.42 hrs 4 people SEATS FULL RANGE 3,091 nm FERRY RANGE 3,485 nm 6 of 23 © 2019 Conklin & de Decker Associates, Inc. Created on Aug 21, 2019, by Doug Strangfeld Data Version: V 19.1 Embraer Legacy 600 5. Interior PASSENGERS CREW AREA PER PASSENGER 13 people 2 people 76.2 cu ft/person CABIN VOLUME BREAKDOWN 1,656 cu ft TOTAL CABIN AREA PASSENGER AREA MISC SPACE (GALLEY, LAV, ETC.) 1,656 cu ft 991 cu ft 665 cu ft CABIN WIDTH CABIN LENGTH CABIN HEIGHT 6.92 ft 49.8 ft 6 ft TOTAL BAGGAGE AREA INTERNAL EXTERNAL 286 cu ft 286 cu ft — DOOR WIDTH (DOOR) LENGTH (DOOR) 14 sq ft 2.5 ft 5.6 ft 7 of 23 © 2019 Conklin & de Decker Associates, Inc. Created on Aug 21, 2019, by Doug Strangfeld Data Version: V 19.1 Embraer Legacy 600 6. Exterior WINGSPAN FUSELAGE 65.7 ft 86.5 ft POWERPLANT 2 Rolls Royce AE 3007A1E THRUST THRUST REVERSER 7,953 lb Standard 8 of 23 © 2019 Conklin & de Decker Associates, Inc. Created on Aug 21, 2019, by Doug Strangfeld Data Version: V 19.1 Embraer Legacy 600 7. Equipment AVIONICS Honeywell Primus Elite COCKPIT VOICE RECORDER Standard FLIGHT DATA RECORDER Standard EICAS Standard GROUND WARNING SYSTEM EGPWS TRAFFIC WARNING SYSTEM TCAS 2000 MAINT DIAG SYS Standard VHF 8KHZ SPACING Standard AUXILIARY POWER UNIT Standard MEETS STAGE 3 NOISE LEVELS Yes REGULATORY CERTIFICATION 2002 (STC) Original type certificate in 1996 for EMB 145 IFR CERTIFIED Yes PRODUCTION 2002 - 2015 SINGLE POINT REFUEL Standard EXTERNAL LAV. SERVICE Standard 9 of 23 © 2019 Conklin & de Decker Associates, Inc. Created on Aug 21, 2019, by Doug Strangfeld Data Version: V 19.1 Embraer Legacy 600 Explanation of Terms Introduction The following describes the content of each cost element used in The Conklin & de Decker Report. Aircraft not yet certified will be noted as Awaiting Cert in bold red on the program screen and bold print in the footnotes section printout. This is to indicate the data shown is preliminary in nature. If an aircraft is marked as Preliminary Data, the aircraft has been certified but the data is still preliminary at this stage. Methodology and Disclaimer It is the opinion of Conklin & de Decker that the data presented in this publication is based on resonable methodologies and assumptions, and reliable sources. Manufacturer data may be based on differing assumptions, sales price adjustments, individually negotiated fleet contracts, differing warranties, or specialty maintenance programs particular to a manufacturer or year of production, and is therefore, in the opinion of Conklin & de Decker, not suitable for comparison with other aircraft. Conklin & de Decker has made adjustments based on research, which in its opinion are reasonable and necessary in order to provide a database that is suitable for comparative purposes. Actual experience will vary, and the data does not reflect specialized maintenance contracts, seperately negotiated fleet deals, or other items unique to particular sales transactions. The Conklin & de Decker Report is not intended as a budgeting tool. Due to fluctuations in market costs, operating conditions and other factors, we make no warranties or representations regarding the future costs of maintenance or operation of any aircraft. General Assumptions - Fixed Wing All fixed wing aircraft costs are estimated using a cash flow method rather than an accrual method. These cost estimates reflect a 10 year time period to balance warranty with mature aircraft costs. The 10 year time period starts with the latest model year for each aircraft type. No funds are accrued to cover major maintenance costs beyond this 10 year period. For example, if any scheduled maintenance items (i.e. Major Inspections, Overhauls or Life Limited Parts) are due a maintenance action after this time period no funds are accrued to cover the cost of these on-condition items.