1. Farnborough 2006 Luís Carlos Affonso
Investors Meeting Executive Vice-President, Executive Jets
July 18th,2006
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.
2. Business Aviation Market Size
US$ 35.3 bi
3.6
US$ 27.1 bi
6.5
Fractional Ownership
2.0
Charter + Aircraft
Management 4.4 4.7
FBO 4.0 2.7
1.2
MRO 2.3
Completion + 1.0
Refurbishment
16.6
13.3
Airframe / OEM
(2005 US$ billion)
Source: AT Kearney and
Embraer estimates 2005 2015
Significant Expansion
“Premium” customers are under served
USA Europe
100% 3% 5% 9% 12% 8%
17% 16% 15%
12% 5%
19%
80% 11%
27% 19%
37% 35%
60%
85% 87%
40% 76% 72%
64% 65%
51% 50%
20%
0%
1995 2000 2005E 2010E 1995 2000 2005E 2010E
Network Low Cost Regional
Lower number of destinations Greater door-to-door elapsed time
Source: Embraer analysis.
3. Industry answer: business models evolution
Yearly Total Cost
Cost
Traditional Ownership
Aircraft Management
Fractional Ownership
Flexibility
Jet cards memberships
Used Fractional
Charter On-Demand
Branded Charter
Scheduled Charter
“Bizav” Airline
Air taxi
Commercial Aviation
Source:: Embraer (adapted from Jet Solutions)
2006-2015 Market Forecast (deliveries) - World
Product Categories Units US$
2%
ULTRA LARGE 6%
8%
ULTRA-LONG RANGE 10%
25%
LARGE 15%
SUPER MID-SIZE 10% 20%
11%
MID-SIZE
20%
MID-LIGHT
18%
10%
LIGHT
26% 7%
VERY LIGHT 8%
4%
* not including air taxi demand (2,500 – 3,000 a/c)
9,680 executive jets à US$ 144 billion in the next 10 years
4. Vision
To become a major player in the Business Aviation Market
within 10 years by providing innovative and differentiating
product and service solutions with added value to our
customers and shareholders.
Legacy™ 600 Program Update
5. The world discovers the Legacy™ 600
43% of Legacy fleet is flying in Europe, Africa and Middle East
USA 34
EUROPE 27
ASIA 7
MIDDLE EAST 5
LATIN AMERICA 2
AFRICA 1
TOTAL 76
30 June 2006
76 aircraft, 18 countries, the right choice
Competitive Analysis – Floor Plans
Superior Privacy and Comfort
6. Legacy™ 600 Landmarks
2002 2003 2004 2005 2006
Enhancements
Avinics - ICE – Air
New Show
D Sound
RE Quality weather System
LIVE Improvement radar update
DE 41,000 ft antenna
Ceiling
Short
Runway
LCY FMS - USB
Performance
Operation 9,500 ft Data Loader
Maintenance Take-off
Range Plan Landing Interior
New Interior HSD Altitude enhancement
Certification
CTA / FAA / JAA / CIS
and more on the way
Super midsize category market share
15%
13%
12% 12% 20
10%
a/c
13 13
10 a/c a/c
a/c
2002 2003 2004 2005 2006-2015
2005: deliveries growth of 54%
7. Phenom™ 100 by Embraer
Phenom™ 100
Interior design
Preliminary data
8. Phenom™ 100 and Phenom™ 300
Prodigy™ - Avionics based on Garmin system Preliminary data
Phenom™ 100
Baggage Compartment – Spacious for your sporting gear
45 cuft
5 cuft
5 cuft
Competitors – Main baggage compartment
Eclipse 500(1): 26 cuft (AFT).
Adam 700(2): 25 cuft (FWD).
Cessna Mustang (3) : 37 cuft (AFT).
Sources
Preliminary data
9. Phenom ™ 100
Layout Configuration Comparison – Jets Preliminary data
Phenom™ 100 Eclipse 500 Mustang Adam 700 CJ1
(Entry Level Jet)
Source: Conklin & de Decker Aircraft Comparator 2005/2006 – Manufacturers’ web sites and promotional material
Phenom™ 100 – Wind Tunnel Test Campaign
TED
MPLE
CO
Phase I - USA
UWAL - University of
Washington Aeronautical
Laboratory Phase II - Brazil
CTA - General Command
for Aerospace Technology Phase III - Russia
TsAGI – Central
Aerohydrodynamic Institute
Design specifications confirmed
10. Phenom™ 100 – Engine first run
ED
LET
MP
CO
Pratt & Whitney Canada PW 617F
On schedule for the first flight
Phenom™ 100 – Master Phase Plan
2004 2005 2006 2007 2008
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Business Case Approval ü
Business Plan Preparation ü
Business Plan Approval (Official “Go-Ahead”) ü
Joint Definition Phase ü
Detailed Design and
Flight Test Campaign
First Metal Cut ü
Sub-Assembly
Final Assembly
First Flight
Entry Into Service
11. Phenom™ 300 by Embraer
Phenom™ 300
Interior design
by
Preliminary data
12. Phenom™ 300
Baggage Compartment Preliminary data
Baggage Compartment - 66 cuft
FWD Baggage Compartment - 5 cuft
Wardrobe - 5 cuft
Competitors Main Baggage Compartment
Hawker 400XP: 26 cuft
Citation Encore: 28 cuft
Citation CJ3: 50 cuft
Sources: B&CA Purchase Planning Handbook – May 2005
Phenom™ 300
Totally new designed aircraft
45,000 ft ceiling
6,000 ft cabin altitude @ 41,000 ft
7,000 ft cabin altitude @ 45,000 ft
Data link capability (road map)
Trend and exceedance
Remote Diagnostic
Two way high speed
Preliminary data
13. Phenom™ 300
Totally new designed aircraft
High Availability - Low Turn-Around Time (TAT)
Single Point Refueling
Externally Serviced Lavatory
Brake-by-wire with standard anti-skid
Preliminary data
Phenom™ 300
Layout Configuration Comparison Preliminary data
PhenomTM 300 CJ2+ Bravo CJ3 Encore
(Mid-Light)
Source: Conklin & de Decker Aircraft Comparator 2005/2006 – Manufacturers’ web sites and promotional material
14. Phenom™ 300 – Wind Tunnel Test Campaign
TsAGI – Central Aerohydrodynamic Institute - Russia
Ongoing campaign
Phenom™ 300 – Master Phase Plan
2004 2005 2006 2007 2009
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Business Case Approval ü
Business Plan Preparation ü
Business Plan Approval (Official “Go-Ahead”) ü
Joint Definition Phase
Detailed Design and Flight Tests
Entry Into Service
16. Embraer Lineage TM 1000
Layout Configuration – flexibility Preliminary data
Embraer Lineage TM 1000
Performance Data Preliminary data
Characteristics Embraer Lineage 1000
Range * 4,200 nm
MMO Mach 0.82
Certified Ceiling 41,000 ft
Takeoff Field Length (MTOW / SL / ISA) 2,100 m (6,900 ft)
Engine APR Thrust – GE CF 34-10E 20,000 lbf
* NBAA IFR reserves (35 min) with 200 nm alternate; 8 passengers @ 200 lb
17. Embraer Lineage TM 1000
Cockpit Technology – Honeywell Primus Epic illustrative purposes only
Preliminary data
Embraer Lineage TM 1000
A new measure of luxury
Entry into service: mid-2008
18. Vision
Embraer will be recognized in the next 3 years as
one of the top solution providers in the Executive
Aviation Market worldwide.
Customer Support Roadmap – 2006
MAY OCTOBER
Executive Care for Legacy Legacy and Phenom worldwide
service center network unveiling
Ÿ New modules
Phenom Executive Care Program
Legacy training program unveiling
enhancements
Phenom Training Program and
simulators locations unveiling
19. Legacy Service Center Network
20 Authorized Service Centers offering airframe line and heavy maintenance
Wherever operators need
OGMA Executive Jets Service Center in Portugal
Alverca, Portugal
Major renovation creates a dedicated executive jets 16,600 sq.ft facility
20. Sales, Backlog and Production Plan
Sales and Backlog as of June 30 th, 2006
US$ 1.25
Executive Aviation Firm Order Backlog
billion
more than 235
Phenom 100 & Phenom 300 Firm Orders
units