1. 10th Embraer Day
Embraer
Defense Systems
Orlando José Ferreira Neto
Executive Vice President
Defense Market
March, 2010
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.
EMBRAER PROPRIETARY INFORMATION 2
3. 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
• 100th 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
A very special year for Embraer Defense with excellent results
A very special year for Embraer Defense with excellent results
and significant achievements
and significant achievements
EMBRAER PROPRIETARY INFORMATION 3
4. 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
5. Super Tucano Deliveries to FAB
• A-29 (FAB designation)
FAB
• Single and twin-seat versions
Brazilian Air Force
• 99 firm orders
• 85 already delivered
Ref.: 12/Mar/2010
EMBRAER PROPRIETARY INFORMATION 5
6. 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
Ref.: 12/Mar/2010
• 2 already delivered • 4 already delivered
EMBRAER PROPRIETARY INFORMATION 6
7. 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
8. 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
An affordable and comprehensive solution for training and COIN missions with
An affordable and comprehensive solution for training and COIN missions with
excellent market acceptance and with promising perspectives.
excellent market acceptance and with promising perspectives.
EMBRAER PROPRIETARY INFORMATION 8
9. 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
10. 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-effective solutions to address aagrowing market
Cost-effective solutions to address growing market
Multimission Aircraft
EMBRAER PROPRIETARY INFORMATION 10
11. 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)
EMBRAER 190 PR
• Next delivery:
• 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
The most complete portfolio delivering satisfaction and flexibility to our customers
The most complete portfolio delivering satisfaction and flexibility to our customers
EMBRAER PROPRIETARY INFORMATION 11
12. Modernization programs
• 43 aircraft
Brazilian Air Force – A-1M
• 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-made to fulfill the Brazilian Armed Forces needs
Tailor-made to fulfill the Brazilian Armed Forces needs
EMBRAER PROPRIETARY INFORMATION 12
13. 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
US$ million
39
40 32
30
20
10
0
2006 2007 2008 2009
Growing business opportunities related to new trends in support programs
Growing business opportunities related to new trends in support programs
EMBRAER PROPRIETARY INFORMATION 13
14. 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
16. 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
Loads Calculation
Loads Calculation
Structures Calc
Structures Calc
Drawings
Drawings
Partnership and Supplier
Procurement
Tooling
Tooling
1 2
Prototypes
IOC
IOC
FOC
FOC
Structural Testing
Structural Testing
Program running on schedule, geared-up for full-scale development and also for
Program running on schedule, geared-up for full-scale development and also for
selection of the main partners.
selection of the main partners.
EMBRAER PROPRIETARY INFORMATION 16
17. 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
Main focus: risk mitigation
Main focus: risk mitigation
EMBRAER PROPRIETARY INFORMATION 17
18. 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
F-
• 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
19. 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 Intranet
Intranet
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,
Surveillance and Reconnaissance
Link BR2 for Brazil)
• Data links for Embraer SENEAM
Interceptors Civilian ATC
aircraft Vehicles and C2
Mobile
Other
Stations Hangars Command &
Radars
Control Centers
C4I: Command, Control, Communications, Computer and Intelligence
C4I: Command, Control, Communications, Computer and Intelligence
EMBRAER PROPRIETARY INFORMATION 19
21. Embraer Defense
•We are delivering to customers’ satisfaction • … Establishing the future growth basis
• AEW India • Super Tucano for the Export Market
• Phenom 100 Pakistan • New VIP product (EMBRAER 190 PR)
• ERJ 135s Thai Armed Forces • KC-390 (development 2009-2016) + (future
serial production)
• Super Tucano FAB and Colombia…
• Potential offsets and industrial participation in
•Revenue stream stable and sustainable the F-X2 program
• A-1M (~ US$ 780M – 2002-2015) • C4I
• F-5M, additional batch, A-Darter integration
• A-4 Brazilian Navy (~ US$ 144M – 2009-2014)
•Sound positioning in all business segments we
are involved…
2008/2009 2009/2010 Beyond
EMBRAER PROPRIETARY INFORMATION 21
