Embraer Day 2006
November 17th,2006
Luís Carlos AffonsoExecutive Vice-President, Executive Jets
Embraer Day 2006Executive Aviation Overview
November 17th,2006
Luís Carlos AffonsoExecutive Vice-President, Executive Jets
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.
Market
Main demand driversStock market performance
Corporate Profits Individual Wealth
Macro-economic factors (GDP)
Source: Global Insight – May & September 2006
WORLDAsia Pacific
not including Japan
6.4%
Latin AmericaAfrica
Middle East
Eastern Europe
2006e
North America
3.4%
Western Europe
2.6%
4.8%
5.6%7.2%
5.3%
3.9 %
4.0%
5.1%5.8%
4.2%
4.5%
2007-16e
3.0%2.1%
3.2 %
Worldwide deliveries of new executive jets2006e: + 16% 2007-2016e: + 3.7% (cagr)
Shifting Demand
Russia: 70 aircraft expected to be sold by year-endMiddle East: 5.2% fleet growth since 2000Eastern Europe:19,1% fleet growthLatin America: significant light jets demandAsia: 50% deliveries increase in 2005
*Source: Honeywell Survey**Source: AMSTAT, Embraer Analysis
Significant demand shifting towards non-traditional markets
5 year buying expectations*
Europe12.6%
North America
60.7%
M East &Africa 4.0%
Asia12.8%
L. America9.8%
85%76%
64%51%
12%19%
27%37%
3% 5% 9% 12%
Lower number of destinations Greater door-to-door elapsed time
RegionalLow CostNetwork
“Premium” customers are under servedUSA Europe
Source: Embraer analysis.
1995 2000 2005E 2010E
5%
11% 19%35%
8% 17% 16% 15%
72% 65%50%
87%
1995 2000 2005E 2010E
Increased hassle factor Benefits Business Aviation
Hassle factor: Growing delays
USA73% of pax at 35 hubs
90% of delays at main hubs
Sources: FAA 2005Eurocontrol 2006
Europe13% flight delays increase in 2005
20% more than 15 min delay
AVIÔES EM FILA
MIA
Heathrow airport after the London’s terrorist threat
Source:: Embraer (adapted from Jet Solutions)
Year
ly To
tal C
ost
Frac
tiona
l Own
ersh
ip
Used
Fra
ctio
nal
Jet c
ards
mem
bers
hips
Airc
raft
Mana
gem
ent
Char
ter O
n-De
man
d
Sche
duled
Cha
rter
“Biza
v” A
irlin
eTrad
ition
al Ow
ners
hip
Commercial Aviation
Cost
Industry answer: business models evolution
0
WONDAIR
Branded CharterNew Business modelsAir Taxi
State of Fractional Industry
2006E: 111 aircraft to be delivered Shares: 30% more flying hours since 2004Cards: 5,000 cards sold in 4 years
ChallengesOperational productivity – profit margins on operationShaping demand of cards – peak time vs. blackouts and discounts, higher pricesService improvements – customers seek elimination of hidden costsAccommodate labor costs – unionized pilots and escalating salaries
Fractional market is evolving
Flight Options Operations Center
Forecast
Business Aviation Market Size
Significant Expansion
15,7
1,12,4
4,2
4,7
2,2
19,5
1,22,7
4,8
6,7
3,9
2005 2016e
Airframe / OEM
Completion + Refurbishment
MRO
FBO
Charter + AircraftManagement
Fractional Ownership
Source: AT Kearney and Embraer estimates
(2005 US$ billion)
US$ 27.1 bi
US$ 38.9 bi
Historic Delivery Profile
Bizjet market is posed to set a new record
0
100
200
300
400
500
600
700
800
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
870+ULTRA LARGE
ULTRA-LONG RANGE
LARGE
SUPER MID-SIZE
MID-SIZE
MID-LIGHT
LIGHT
VERY LIGHT
Forecast
Forecasted Delivery Profile
Very Light Jets will drive an increased demand in industry deliveries
0
200
400
600
800
1000
1200
1400
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
ULTRA LARGE
ULTRA-LONG RANGE
LARGE
SUPER MID-SIZE
MID-SIZE
MID-LIGHT
LIGHT
VERY LIGHT
2,715*2,390
1,0801,305 1,250 1,310
850
215
2007-2016 Market Forecast (deliveries) - World
Very Light Light Midlight Midsize SuperMidsize
Large Ultra-longRange
Ultra-Large
11,115 executive jets US$ 169 billion in the next 10 years
Very Light23%
Light22%Midlight
10%
Midsize12%
Supermidsize11%
Large12%
Ultra-Long Range8%
Ultra-Large2%
* additional air taxi demand of 2,500-3,000 units
23%
22%
10%
12%
11%
12%8%2%
2007-2016 Market Forecast (deliveries) - WorldProduct Categories
11,115 executive jets US$ 169 billion in the next 10 years
ULTRA LARGE
ULTRA-LONG RANGE
LARGE
SUPER MID-SIZE
MID-SIZE
MID-LIGHT
LIGHT
VERY LIGHT
US$
* additional air taxi demand of 2,500-3,000 units 4%9%7%
11%
16%
24%
23%
6%
Units
Vision
To become a major player in the Business Aviation Market
within 9 years by providing innovative and differentiating
product and service solutions with added value to our
customers and shareholders.
Very Light
Light
Mid-light
Mid-size
Super Mid-Size
Large
Ultra-Long Range
Ultra Large
Embraer Product portfolio
Legacy™ 600
Phenom™ 300
Phenom™ 100
Lineage™ 1000
Legacy™ 600 Program Update
Competitive Analysis – Floor Plans
Superior Privacy and Comfort
The world discovers the Legacy™ 600
87 aircraft, 18 countries, the right choice
87TOTAL1AFRICA3LATIN AMERICA5MIDDLE EAST8ASIA32EUROPE38USA
08 Nov 2006
Legacy™ 600 Landmarks
Promises made … promises delivered
CTA / FAA / JAA / CIS
2002
Certification
Enhancements
2003 20052004
41,000 ftCeiling
New InteriorRange
LCYOperation
MaintenancePlan
Short Runway
Performance
HSD
9,500 ft Take-offLandingAltitude
SoundQuality
Improvement
2006
ICE – Air Show
System update
Avionics -New
weather radar
antenna
Interior enhancement
FMS - USB Data Loader
PDA Performance
SoftwareWhite LED
lighting
CTA / FAA / JAA / CIS
2002
Certification
Enhancements
2003 20052004
41,000 ftCeiling
New InteriorRange
LCYOperation
MaintenancePlan
Short Runway
Performance
HSD
9,500 ft Take-offLandingAltitude
SoundQuality
Improvement
2006
ICE – Air Show
System update
Avionics -New
weather radar
antenna
Interior enhancement
FMS - USB Data Loader
PDA Performance
SoftwareWhite LED
lighting
CTA / FAA / JAA / CIS
2002
Certification
Enhancements
2003 20052004
41,000 ftCeiling
41,000 ftCeiling
New InteriorNew InteriorRangeRange
LCYOperation
LCYOperation
MaintenancePlan
MaintenancePlan
Short Runway
Performance
Short Runway
Performance
HSDHSD
9,500 ft Take-offLandingAltitude
9,500 ft Take-offLandingAltitude
SoundQuality
Improvement
SoundQuality
Improvement
2006
ICE – Air Show
System update
ICE – Air Show
System update
Avionics -New
weather radar
antenna
Avionics -New
weather radar
antenna
Interior enhancement
Interior enhancement
Interior enhancement
FMS - USB Data Loader
PDA Performance
SoftwareWhite LED
lighting
Legacy™ 600 Landmarks
and more on the way
Bulkhead17” Monitor
Towbarless Tug
Enhancementsto come
EVS
EFB
Baggage compartmentenhancement
Operation in Cannes
DELIVERED
13%
12%12%10%
2002 2003 2004 2005 2006 2007-2015
25-30
Market share - super midsize category
Deliveries growth of 54% in 2005
1013 13
20
15%13.5%
July 2006
Phenom™ 100 and Phenom™ 300 Program Update
Integrated Development
Models from CATIA are used in CFD analysis…
Integrated Development
Digital Mock-ups & Virtual Reality Center
The Digital Mock-up is a high precision model that reproduces the final aircraft with high fidelity.
Phenom™ 100
Phenom™ 100
Preliminary data
Interior design - seamless cockpit & cabin design
Phenom™ 100Prodigy™ - Avionics based on Garmin system Preliminary data
45 cu.ft.45 cu.ft.
5 cu.ft.5 cu.ft.
Floor Plan
1 – Storage Area or Refreshment Center2 – Seats
3 – Work Tables4 – Storage Area5 – Lavatory
42
531
Preliminary data
3
Phenom™ 100
Performance Data
1,320 nmRange VFR**
3,400 ftTakeoff Field Length (ISA, SL, MTOW)
Phenom™ 100Characteristics
41,000 ftM 0.70
380 KTAS
1,160 nm
Maximum Operating AltitudeMMOHigh Speed Cruise
Range *
* NBAA IFR reserves (35 min) with 100 nm alternate; 4 occupants @ 200 lb
** VFR 45 min reserves; 4 occupants @ 200 lb
Preliminary data
Phenom™ 100
Air Taxi(20,000)
Fractional(12,000)
(8,000)
Charter &BrandedCharter
Preliminary data
Favors residual value
Phenom 100
Cycles
(2,000)Private Owner
EXTENDED LIFE35,000
Economic Life – 10 years typical utilization
Phenom™ 100Direct Operating Costs
Preliminary data
Phenom™ 100 DOC: US$ 440 / FH *20% lower than an entry level jet (CJ1)12% lower than King Air C90B for a 600 nm mission**
* Per B&CA assumptions – Typical Bizjet Operation** B&CA Operations Planning Guide – August 2005
Phenom™ 100 – Wind Tunnel Test Campaign
Design specifications confirmed
Phase I - USAUWAL - University of
Washington Aeronautical Laboratory Phase II - Brazil
CTA - General Command for Aerospace Technology Phase III - Russia
TsAGI – Central Aerohydrodynamic Institute
COMPLETED
2Q - 2006
4Q - 2005
2Q - 2005
Phenom™ 100 – Engine first flight
Successfully completed 4.2 hours of flying
COMPLETED
Pratt & Whitney Canada PW 617F
Oct 2006
Phenom™ 100 and Phenom™ 300 – Infrastructure
Phenom 100 sub-assemblies production hangar reconfigured
3Q - 2006BRAZIL
Construction of a 130,000 sq.ft. hangar began for Phenom 100
and Phenom 300 final assembly lines
Botucatu
BRAZIL
3Q - 2006
GaviãoPeixoto
Phenom™ 100 – Master Phase Plan
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42004 2005 2006 2007 2008
Entry Into Service
Business Plan Approval (Official “Go-Ahead”)
Business Plan Preparation
Business Case Approval
Joint Definition Phase
First Metal Cut
First Flight
Sub-Assembly
Final Assembly
Detailed Design and Flight Test Campaign
15.6 m50 ft 16 in
Phenom™ 300
by
Preliminary dataInterior designPhenom™ 300
76 cu.ft of baggage capacity – 66 cu.ft in a single compartment
Baggage Compartment - 66 cu.ft
FWD Baggage Compartment - 5 cu.ft
PhenomTM 300 - Baggage Capacity
Wardrobe - 5 cu.ft
The best baggage compartment in the category Preliminary data
PerformancePerformance Data
3,700 ftTakeoff Field Length
Phenom™ 300Characteristics
45,000 ftM 0.78
450 KTAS1,800 nm
Maximum Operating AltitudeMMOHigh Speed CruiseRange *
* NBAA IFR reserves (35 min) with 100 nm alternate; 6 occupants @ 200 lb each
Preliminary data
Phenom™ 300
Preliminary data
Totally new designed aircraft
45,000 ft ceiling6,000 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
Phenom™ 300
Preliminary data
Totally new designed aircraft
High Availability - Low Turn-Around Time (TAT)Single Point RefuelingExternally Serviced LavatoryBrake-by-wire with standard anti-skid
Phenom™ 300 DOC: US$ 700 / FH *20% lower than a light jet (Hawker 400XP)*
16% lower than a mid-light jet (Citation Encore)*
Preliminary data
* Per B&CA assumptions – Typical Bizjet Operation
Direct Operating Costs
Phenom™ 300
Phenom™ 300
Preliminary data
Expert opinion
Phenom™ 300 – Wind Tunnel Test Campaign
End of test campaign
TsAGI – Central Aerohydrodynamic Institute - Russia
3Q - 2006
Phenom™ 300 – Master Phase Plan
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42004 2005 2006 2007 2009
Entry Into Service
Business Plan Approval (Official “Go-Ahead”)
Business Plan Preparation
Joint Definition Phase
Business Case Approval
Detailed Design and Flight Tests
Embraer LineageTM 1000 Program Update
Embraer LineageTM 1000 - Interior
illustrative purposes only
Embraer LineageTM 1000Preliminary dataLayout Configuration – flexibility
LineageTM 1000 Performance
Preliminary data* NBAA IFR reserves (35 min) with 200 nm alternate; 8 passengers @ 200 lb, ISA. Range circles consider 85% annual winds,, 3% allowance
Range: 4,200 nm*MMO : Mach 0.82
Priestman Goode is a design consultancy specializing in 3D branding.
They work in many different sectors, ensuring that the final design genuinely adds to the customer experience.
Embraer LineageTM 1000 - Interior
Design Office
Source: Priestman Goode website
Embraer LineageTM 1000 - Interior
DeCrane Aircraft is committed to providing the most effective, leading-edge solutions available.
PATS Aircraft, LLC. provides innovative solutions in response to the aviation industry's distinctive needs.
Interior Provider
Sources: DeCrane Aircraft & PATS Aircraft websites
Customer Support & Services
Vision
To become a leading Support & Services provider in the
Business Aviation Market within 3 years through a solid
network, genuine customer relationship and best practices.
Building Up Experience
37 years of customer support
Reputable Maintenance Services Excellent Parts Support & RepairsOutstanding Field & Tech. Support Comprehensive Training ProgramEmbraer Executive Care programs
Integrated Solutions
Embraer Service Centers Network in the U.S.
Exisiting Service Center
Embraer Owned Service Centers
Fort Lauderdale International, FL
Williams GatewayMesa, AZ
BradleyHartford, CT
New Service Centers
EAMSNashville, TN
Revamped Service Centers Network in the U.S.13 Authorized Service Centers
Cahokia, IL
Cleveland,OH
Wheeling, IL
Phoenix, AZ
Houston, TX
Augusta, GA
West Palm, FL
LAX, CA
Legacy 600 Authorized Service CentersLegacy 600 Authorized Service Centers
Enlarged and reconfigured network
Bedford, MA
Teterboro, NJ
Hillsboro, OR
Phoenix, AZ
Lincoln, NE
Lincoln, NE
Reputable Service Centers Network in the U.S.
Phenom 100 & 300Phenom 100 & 300Authorized Service CentersAuthorized Service Centers
From line to overhaul services
Hillsboro, OR
8 Authorized Service Centers
Moline, ILIndianapolis, IN
Grand Junction, CO
Dallas, TX
Greenville, SC
Enhanced Service Center Network in Europe
PT
FR
FranceLe Bourget
New
PortugalOGMA
Existing
TO BE APPOINTED.
Enhanced Service Center Network in EuropeLegacy 600Legacy 600
Phenom 100 & 300Phenom 100 & 300
More options, greater flexibility
Munich, GYMunich, GY
Zurich, SWZurich, SW
London, UKLondon, UK
Prague, CRPrague, CR
5 Authorized Service Centers
LuganoLugano, SW, SW
Broader coverage, greater convenience
Service Network for Embraer Executive JetsWorldwide Network (middle 2008): 45 Service Centers
7 Embraer Wholly Owned
38 Authorized Service Centers
Logistic Provider – PhenomTM 100 & PhenomTM 300
Rapid response
Outstanding Field and Product Support
20062006
Field SuportTeam 40%
growth
Field SuportTeam 40%
growth
Call Center at Embraer
headquarter fully dedicated to Legacy
technical support
Call Center at Embraer
headquarter fully dedicated to Legacy
technical support
Web Portal improvements
towards customer-centric focus
Web Portal improvements
towards customer-centric focus
Call Center evolution into a Contact Center
concept
Call Center evolution into a Contact Center
concept
Customer Care confirmation2008200820072007
Phenom 100 EISPhenom 100 EIS
Call Center
Web Portal
FieldSupport
Embraer Customer Care
Outstanding Field and Product Support
Maintenance Tracking and Planning Service
EMBRAER selected and contracted Flightdocs as the provider (august 2006)
Five Legacy are already taking advantage of the new service
Embraer Executive Care
Scheduled + basic unscheduled airframe parts
Parts freight
Parts for Service Bulletins, AD related
Embraer Maintenance Tracking & Planning SystemScheduled heavy checks labor (24 MO)
Labor, all scheduled tasksLabor, basic unscheduled tasksLabor on Service Bulletins, AD related
Mobile Rescue Team, AOG
Standard Intermediate EnhancedLegacy 600*Legacy 600*
* Only airframe. No engine included.
More levels of coverage
Embraer Executive Care
Standard Enhanced
Scheduled + basic unscheduled airframe parts
Airframe parts freight
Airframe parts for Service Bulletins, AD related
Embraer Maintenance Tracking & Planning SystemEngine CoverageAirframe Labor, Scheduled and Basic Unscheduled
Airframe Labor, Service Bulletins, AD related
Airframe Mobile Rescue Team, AOGEngine Life Limited Parts Coverage OPT.OPT.
OPT.OPT.
OPT.OPT.
High Utilizationabove 400 FH/y
Low Utilizationbelow 400 FH/y
Phenom 100 & 300Phenom 100 & 300
Different Levels of coverage
PhenomTM 100 & PhenomTM 300 Training
JointVenture
Commitment to deliver best training solution
69
First Training First Training Center USA Center USA
20082008
Second Training Second Training Center USACenter USA
20122012
First Training First Training Center Europe Center Europe
20092009
PhenomTM 100 & 300 Potential Training Locations
USAUSA EuropeEurope
Full Flight Simulator available at Phenom EIS
Sales and Production Plan
Sales in 2006
Lineage 1000Legacy 600
Phenom 100Phenom 300
US$ 1.8 billionTotal Sales (as of November 15th, 2006)
Phenom Family - more than 340 firm orders in 22 countries
The world also discovers the Phenom Family
(as of November 15th, 2006)
2007
Expected Production Plan – LegacyTM 600
Legacy™ 600
200620052004
25 - 3025 - 302013 (units)
Expected Production Plan – PhenomTM 100 & PhenomTM 300
2009
2008
120 - 150
15 - 20 (units)
(units)
Phenom™ 100
Phenom™ 100 & Phenom™ 300
2009
Expected Production Plan – LineageTM 1000
2008
3 - 4up to 2 (units)
Lineage™ 1000
Thank You !
Due to time span between the date of this document/presentation and the entry into service of
the aircraft, Embraer reserves the right to revise this document/presentation whenever
occasioned by product improvement, government regulations or other good cause.
The information contained herein is the property of Embraer S.A. and shall not be copied or used in any manner except with Embraer´s written consent.