2. Corporate and Business Strategy
• Organic growth.
• Margins enhancement through the P3E.
• Business and revenues diversification.
• Product strategy.
• Diversification and expansion of customer base.
• Excellence in Customer Experience (ECE).
• Market share growth.
• Margins improvement.
• Product strategy and customer support focus.
• Establish Embraer as the defense house of Brazil.
• Organic growth and acquisitions.
2
10. Worldwide Distribution
Commercial Jets Market Share Evolution Worldwide E-Jets Customer Base by Business Model
60-120 Seats Jets
(% of E-Jets Fleet+Backlog)
27%
41% Low Cost Carriers
43%
Regional Airlines
32% Network Airlines
30%
Firm Orders Backlog
7% 12% 16%
6%
5% 33% 8%
3% 44%
26%
12% 13% 30%
Considering Accumulated Net Orders
Europe & CIS
North America
Middle East & Africa
Asia Pacific & China
Latin America
10
12. Embraer Market Forecast (2011-2030)
• Scope Clauses relaxation allowing 80-seater aircraft as a natural growth of RJ50s in the US
• Right-sizing of narrow-body operations
• Regional aviation development in Emerging Markets
• Acceleration of replacement of old & inefficient jets
Russia /
CIS
Europe
North
North 435
155
America
America 1,675
580 6%
23%
22%
2,350
840 China
China
Projected Deliveries- Jets 33%
32%
Market Segment 2010 – 2019
2011 2030 Middle 975
340
Africa East
(Seats) Deliveries 13%
30-60 430
60 195
80 310
105
Latin Asia
61-90 2,670
1,015 Latin 3% 4% Pacific
America
America
91-120 4,125
1,550
210
615
30-120 7,225
2,625 315
670 9%
8%
12%
9%
Around 7,225 jet deliveries (30-120 seats) in the next 20 years (US$ 320 bi)
12
14. 2011 Highlights
• Delivery of 105 E-Jets in 2011 (32 in 4Q11), reaching 802 total
deliveries since EIS.
• Sale of 45 E-Jets in 4Q11 totaling 124 in 2011 (28% above 2010 sales),
reaching 1,051 firm orders. Book to bill = 1
• Increased presence with leasing companies
(CIT, BOC Aviation, GECAS, Air Lease, CDB).
14
18. 2012-21 Market Forecast World Deliveries
ULTRA LARGE
New bizjet deliveries (Units)
ULTRA-LONG RANGE
1.400 LARGE
Forecast
SUPER MID-SIZE
1.200 MID-SIZE
MID-LIGHT
1.000 LIGHT
ENTRY*
800
600
400
200
-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
11,275 jets US$ 260 billion over the next 10 years
18
19. 2012-21 Market Forecast and
Embraer Actual Fleet Distribution
North America
EMB >170 a/c EMEA
EMB >150 a/c
5,265 a/c (47%)
3,415 a/c (30%)
US$ 109 Bi (42%)
US$ 88 Bi (34%)
Asia Pacific
EMB ~20 a/c
1,690 a/c (15%)
US$ 48 Bi (18%)
Latin America
EMB ~100 a/c
Brazil
905 a/c (8%) EMB 90 a/c
US$ 16 Bi (6%) 550 a/c (5%)
US$ 8 Bi (3%)
19
21. 2011 Highlights
• Delivery of 99 executive jets in 2011 (83 light jets and
16 large jets). 50 jets delivered only in 4Q11.
• Global Customer Center opening in
Melbourne, FL and delivery of first
Phenom 100 made in the U.S.A.
• Legacy 500 first prototype roll out.
• Globally renowned movie star Jackie Chan
joins Legacy 650 family.
21
22. Canada
Sweden
Germany
United States United Kingdom¹
Italy
Luxembourg
Belgium Greece
Kuwait¹
Switzerland
France Pakistan
Spain
Portugal Tunisia Thailand
Dominican Rep. Libya
Honduras
Mauritania Egypt
Panama
Indonesia
Mexico Niger Kenya¹
Venezuela Chad
Colombia Togo
Nigeria India
Equatorial Guinea
Ecuador
Gabon
Peru
Brazil
Argentina
Paraguay Angola
Chile Uruguay
Presence in 48 countries.
22
23. Embraer Defense and Security
Embraer Defense and Security, partners and affiliated companies
System of Systems
HARPIA
ISR (Intelligence, Light attack and advanced
Surveillance and Transport of authorities
training
Reconnaissance)
UAV’s
Modernization programs Services Tactical military transport
Radar
23
26. EMBRAER KC-390
• A new tactical military transport and
tanker aircraft
• First flight in 2014
• Six countries Brazil Colombia Argentina Chile Portugal Czech Rep.
(28) (12) (6) (6) (6) (2)
• Letters of intent totalizing 60 aircraft
Total Market Forecast 2025:
700 aircraft
US$ 50+ bi
26
27. Modernization Programs
Addressable Market Forecast 2025
(US$ million)
Brazilian Navy A-4
Long-term
567 12 aircraft
Two prototype at GPX-CS
Brazilian Air Force A-1M
43 aircraft
Five received by Embraer for the
modernization
Medium-term
505
Short-term Brazilian Air Force F-5M
527
46 a/c + 11 a/c (2nd batch)
44 already delivered
Total Market Forecast*: 234 aircraft
US$ 1.6 billion
* Forecast considering the market for F-5 and Tucano modernization
F-5M A1-M A-4
27
28. New Portfolio
Command and Control Systems
Onboard Systems
Simulation Systems
Electronic Warfare Systems
Intelligence Systems
Air Traffic Management and Control Systems
System of Systems
Security of Critical
Infrastructure
JV with Elbit/AEL Sistemas where Embraer Public Security
Defense and Security has a major
(sporting events,
HARPIA participation
UAV’s cities, states)
UAS, simulators and modernization of
avionics systems Airport
Management
Systems
SISFRON
Air, ground and sea surveillance radars
Radar SisGAAZ
Remote sensing
Engine and Component Maintenance
Overhaul and Modernization
Services
Aerostructure Manufacturing and Assembling
28
29. Brazilian Army Priorities
SISFRON
Integrated Borders Monitoring System
Estimate: US$ 4 Billion
Comprising radars, communication networks, C4I,
unmanned air vehicles (UAV) and armored vehicles
Comm
9% UAV
12%
Sensors
59%
SW
20% Satellite
Estimate: US$ 400 Million
Participation in the first Brazilian Geostationary Satellite
29
30. Revenues Breakdown Evolution
Services Transport
2020 11% 4%
Sisfron, Satellite
10%
KC-390
34%
2011
KC-390 New Business
Services 16% 14%
11%
Light Attack and
ISR Radar, C4I, UAV, Combat
9% MRO 9%
Modernization 18%
30%
Light Attack
9%
New Business
Airport Management Systems
Radar, C4I, UAV, SisGAAz (“Blue Amazon” Integrated Management System)
MRO Security of Critical Infrastructure
25% Public Security (sporting events, cities, states)
30
31. 2011 Highlights
• Modernization programs of AMX and A-4 Skyhawk on track.
• AEW India program: maiden flight of the
first of three aircraft in 4Q11.
• KC-390 development program ongoing and on
schedule. Selection of main suppliers.
• Growth through acquisitions and partnerships.
JV Embraer/
HARPIA Telebrás
31
37. AMR and Other Provisions
• American Airlines: US$ 317 million
• Other provisions: US$ 43 million
• Cancellations fees: US$ 67 million
Financial expenses
US$ 107 million
2011 Results net impact
US$ 293 million
Other operating expenses
US$ 186 million
37
47. Sustainability Initiatives
ISO 14001 and OHSAS
18001 Certifications
Brazilian Alliance for Bio-fuel
1st ethanol powered
aircraft in the World
Social Activities
Reforestation Projects
Ipanema
Recycling
Corporate Values
Greener Technology
47
48. Lean Results: E-Jets Final Assembly
Line Transformation
“Dock” layout - 2008 Assembly Line – 2009 Assembly Line – 2011
Performance indicators May/2008 July/2009 Sep/2009 June/2010 Mar/11 Out/11
(15ac/month) (10ac/month) (10ac/month) (8ac/month) (10ac/month) (12ac/month)
Number of positions 12 6 5 4 4 4
Cycle time (days) 18 12 10 8 8 7
Work in process (US$mi) 212 106 95 89 68 68
Number of non-conformity
per a/c
32 7 1,7 0 0 0
Over time (% of work
hours)
10 1,5 1,5 0,2 0 0
48
49. P3E Results
Kaizen - E-Jets Cycle Reduction Cost of Non Quality Reduction
Lead Time (E-Jets) Cost of Non Quality
40% 44%
2005 2006 2007 2008 2009 2010 2011 2008 2009 2010
40% reduction on the production cycle 44% reduction on CNQ
49
52. 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.