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Market & Product Update
Paulo Cesar Silva
President, Commercial Aviation
Jun/2012
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The information contained herein is property of Embraer and shall not be copied or used without Embraer
s written consent
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 statementsbecause 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.
Forward Looking Statement
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EMBRAER 195108 122 seats
2,100 nm range
EMBRAER 19098 114 seats
2,300 nm range
EMBRAER 17070 78 seats
2,100 nm range
EMBRAER 17578 88 seats
2,000 nm range
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E-Jets Family Order Book
Commercial Aviation(as of March 31st., 2012) Firm orders Deliveries Firm Backlog
EMBRAER 170 189 182 7
EMBRAER 175 189 145 44
EMBRAER 190 552 402 150
EMBRAER 195 133 94 39
Total 1,063 823 240
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E-Jets Market Acceptance
1,063 orders + 689 options
First delivery 2004. More than 1,000 net orders accumulated
Source: Embraer (Mar/2012)
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Source: Embraer (Scheduled Airlines and Leasing Co.)
E-Jets Customer Base Evolution
2 4 14 27 50 55 61Customers/Operators
Deliveries
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2011: Market Confidence on E-Jets
Customer Firm Orders
Dniproavia 10 E190
TRIP 3 E190
Air North 1 E170
Alitalia 10 E175
KLM 5 E190
CDB Leasing (China Southern) 10 E190
Air Astana 2 E190
Air Lease 5 E175 + 15 E190
GECAS 8 E190
Kenya Airways 10 E190
Lufthansa 5 E195
Azul 11 E195
CIT Aerospace 10 E190
FDA 1 E175
Jetscape 1 E195
BOC Aviation 15 E190
Hebei Airlines 2 E190
124 Firm OrdersAs of December, 31st
64 ordersfrom
Leasing
Companies
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Leasing Companies Confidence on E-Jets
CITNov/2011: Up to 30 E-Jets (10 E190/195 Firm Orders)
BOC Aviation Nov/2011: 15 E190
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E-Jets supported by Leasing Companies
Source: Embraer (Jan/2012)
1
3 4
8
17
23
27
12
2004 2005 2006 2007 2008 2009 2010 2011
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800 E-Jets delivered
Nov 2010Sep 2009Dec 2008May 2008
Dec 2006
Oct 2007
Mar 2004
First Delivery
Oct 2005
Sep 2011
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E-Jets around the world61 Airlines from 42 Countries
Mar/2012
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E-Jets Customer Base by Region
Source: Embraer (Mar/2012)
(% of Firm Orders)
Asia PacificChina12%
Middle East
Africa9%
Europe/CIS
27%
LatinAmerica
17%
NorthAmerica35%
Diversified customer-base across five continents
Increased presence in emerging markets with established carriers
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E-Jets Global Presence
E170 E175 E190 E195
Source: OAG (1H2012)
Diversified customer base across five continents
61 airlines in 42 countries
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E190/195 Customer Base (by Business Model)
Source: Embraer (Mar/2012)
Regional Airlines
Network Airlines
(% of E190/195 Fleet+Backlog)
Low Cost Carriers
E-Jets efficiency in all business models
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E-Jets
Market
Deployment
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E-Jets Versatile Applications
Natural growth for existing 50-seat
markets
Right-sizing of low load-factor
narrow-body flights
New market opportunities through
lower risk and increased flexibility
Direct replacement of old and
inefficient jets
2.
1.
3.
4.
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E-Jets Deploymenthelping airlines to be more efficient
Source: OAG (1Q2011)
Right-sizing: 48%
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Application 1: Right-sizing
Narrowbodie
s
E-Jets
Matching capacity to demand
A319/320 E195
737-700/800
A319/320
E190
E190
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Application 2: Natural growth
Sma
llercapacit
yaircraft
Offering more capacity on regional operations
E-Jets
CRJ 200 E170
ERJ 145 E190
ERJ 145 E170/175
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Application 3: Replacing old-generation jets
Old
Generation
Jets
E-Jets
Reducing operating costs and fuel consumption
RJ 85 E170/190
DC9 / MD80 E170/175
F100 E190
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Application 4: Opening new markets
Exploring new markets with lower financial risks
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E-Jets Building Connectivity In Eastern Europe
Source: OAG (May/2012)
FIS: 4 E170
up to 12 E-Jets
FIS: 2 E190
up to 4 E-Jets
FIS: 3 E195
up to 4 E-Jets
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E-Jets on Prime Shuttle Markets - USA
NY (LGA) Wash. (DCA)
15x DailyE175
NY (LGA) Chicago
13x DailyE175
Philadelphia - Boston
17x DailyE190/E175
NY (LGA) - Boston
15x DailyE190
NY (LGA) - Toronto
9x DailyE190/E175
Ottawa - Toronto
8x DailyE190/E175
Calgary - Vancouver
12x DailyE190
Source: OAG (1st week Jun/2012)
Vancouver
Calgary
Boston
NY
Chicago
Washington
TorontoOttawa
Philadelphia
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THIS INFORMATION IS EMBRAER PROPERTY AND CANNOT BE USED OR REPRODUCED WITHOUT WRITTEN AUTHORIZATION
ECE: Excellence in Customer Experience
Highest levels of customer experience
with Embraer products and services
Customer Satisfaction
AircraftAvailability
QualifiedPeople
Low OperatingCost
ProductCompetitiveness
GlobalPresence
Airline Support
Customer Care Center
Customer Relationship
Efficient Maintenance
Efficient Operation
Entry Into Service
Product Robustness,Support and Services
MRO Network
Parts Availability
Product Improvements
Product Quality
Suppliers Management
Training
ECE
Projects
Fi ld S t
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THIS INFORMATION IS EMBRAER PROPERTY AND CANNOT BE USED OR REPRODUCED WITHOUT WRITTEN AUTHORIZATION
Field Support
Embraer Support Around the World
DUBAI
** warehouse opens September 2012
**
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E-Jets
Market
Opportunities
USA R i l J t C it Sh
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USA Regional Jet Capacity Share
100%
46%
100% 100% 100%
40%
100%
41%
100%
71%
54%60% 59%
29%
2000 2011 2000 2011 2000 2011 2000 2011 2000 2011
J30-60 J61-90
ASM by Segment
Source: OAG
United: potentialCO scope relief
75 to 100 units J61-90
AA: changes expected in theshort term (Chapter 11)
Trend towards larger J75 ~70% of regional capacity
Ri ht i i O t iti USA
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Right-sizing Opportunities - USA
2011 US Domestic Narrowbody Operations
Source: OAG
Nearly 35% of all NBs flights withdemand more suitable for 70-120 seat jets
5%
28%27%
21%19%
R l t O t iti W ld
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Replacement Opportunities - World
Source: OAG (Mar/2012 ; Passenger, Active in Service, Scheduled Services)
(Jets 61-120 seats)
Nearly 900 aircraft with more than 15 years old
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30 to 120-Seat Commercial Jet Deliveries
USD 320 billion list price market value
Market Outlook 2011-2030
30-60 seats 15 415 430
2011-2020 2021-2030 2011-2030
61-90 seats 1,265 1,405 2,670
91-120 seats 1,845 2,280 4,125
TOTAL 3,125 4,100 7,225
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7,225jet deliveries by world region (30-120 seats)
2,350 North America 33%
1,675 Europe 23%
975 China 13%
670 Latin America 9%
615 Asia Pacific 8%
435 Russia/CIS 6%
310 Middle East 4%
195 Africa 3%
Market Outlook 2011-2030
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E-JetsProduct
Development
Commitment
to Leadership
Market Share Wo ld (Jets 61 120 seats)
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Market Share - World (Jets 61-120 seats)
Considering accumulated Net Orders up to Mar/2012.
Embraer: 170/175/190/195 Sukhoi: Superjet 100Bombardier: CRJ700/900/1000; CS100 Comac: ARJ-21Airbus: A318 Antonov: An-148/158Boeing: B737-600 Mitsubishi: MRJ90
E Jets Continuous Evolution Plan
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E-Jets Continuous Evolution Plan
Interior
Avionics Advanced
Features
Stuctural and
Prognostics Health
Management
(SHM/PHM)
Increased
Maintenance Plan
Intervals
(750FH/7500FH)
Fuel Burn
Improvement Package
External Noise
Improvement Package
CPDLC
Steep Climb
Slim seat
Steep Approach
ADSB-out
DO-260A
Eletronic Flight
Bag (EFB)
2008 2009 2010 2011 2012 2013 2014 2015
ETOPS 120 E190
E170/E175 AR
Operational Envelope
extension:
-ISA+39 E170/E190
- 14,000ft (E190)
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Future product studies (couple months ago)
E-Jets G2
New Platform
Maintain Leadership in the
70 to 120-seat segment
Enter into a new segment to
enlarge product portfolio
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Now: total focus in the E-Jets G2
E-Jets G2
Maintain Leadership in the
70 to 120-seat segment