Luiz Carlos Aguiar, CEO
August,2013
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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.
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
Agenda
General Information
2013 Highlights
Results
Future projects
Main Programs Status
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General information
� Established on 1st January 2011
� Revenues (2012) of US$ 1,056 billion
� Total of more than 1,600 employees
� Presence in more than 48 countries and 50 Air Forces operating our products and systems
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
2013 Highlights (1/3)
• The U.S. Air Force (USAF) selected the A-29 Super Tucano for its Light Air Support (LAS) program. The selection was further validated by the GAO (General Accountability Office) of the United States.
• Facilities in Jacksonville, where the A-29 aircraft for the LAS will be built, are being completed. Local leadership and local plant workers were hired.
• Critical Design Review (CDR) of the KC-390 military transport aircraft was successfully concluded.
• Embraer and Boeing announced a partnership for sales and marketing of Embraer’s KC-390 in selected markets.
• Embraer and Brazilian Air Force (FAB) signed a contract to modernize five EMB 145 AEW&C, designated E-99 at FAB, approximately US$ 215 million.
• Embraer and FAB also signed a contract to provide logistics support and services for its fleet of 92 A-29 Super Tucano aircraft.
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
2013 Highlights (2/3)
• Delivery of the first modernized A-1 (A-1M) fighter jet to FAB.
• Delivery of three A-29 Super Tucano to the National Air Force of Angola, as part of a total order for six aircrafts.
• First flight of a modernized AF-1 aircraft, from the Brazilian Navy, in August.
• Acquisition of the remaining 50% stake of Atech Negócios em TecnologiaS.A.
• Savis concluded the selection of the main suppliers for all subsystems of the SISFRON Project
• Visiona Tecnologia Espacial SA concluded the selection process of suppliers of the satellite and the launcher for the SGDC project
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Results: Revenue & EBIT
CAGR29%
Revenue Evolution
(US$ Millions)
EBIT (2011/2012): 9~11%
Ref.: September, 2013
851 YTD Sept
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Results: consistent revenue growth
Ref.: September, 2013
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Results: Backlog
BacklogEvolution
(US$ Billions)
Ref.: September, 2013. Includes sales announced during LAAD 2013.
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Revenue Breakdown Evolution (1/2)
Ref.: September, 2013
2013E2012
* Radar (Orbisat)C4I (Atech)UAV (Harpia)Satellite (JV Embraer/Telebrás)Savis (SISFRON)
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Brazilian government future projects (1/2)
NAVY
SisGAAZ
SISFRON (phase 1)
SISFRON (phase 2)
Aerial Defense
Fighter Jet Tender
UAVs
Satellites
2013 2016 2020 2030
ARMY
AIR FORCE
OTHERS US 550MM
Contract negotiation phase
US 4 bn
US 2 bn
US 4 bn
US 1bn
US 420 MM
SISFRON (subsequent phases)
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2013 Federal Budget – Main projects
% of EDS Projects in the Federal Budget : 27%
Brazilian government future projects (2/2)
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Partnerships
Command and Control systems
Air trafficManagement
Control
Systems of Systems
C4I
UAVs
Simulators
Modernizationof avionicssystems
Land Defense Systems
integration
SISFRON
implementation
MRO
Aero
structures
Remote Sensing
Aerial Surveillance
Radar
Satellite Geostationary of
Defense and Communications
(SGDC)
100% 51% 65% 90% 100% 51%
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Partnerships from 2011 to 2013
YTD Sept
40,6
YTD Sept
36,9
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Integrated portfolio
UAVs SatelliteLand
systemsRadar
Modernization programs
ISR (Intelligence, Surveillance and Reconnaissance)
Light attack and
advanced training
Transport aircraftTactical military transport
ServicesC4I
ISR Family
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ISR Family
EMB 145 MP
Maritime Patrol
18 aircraft, 17 in operation
8 aircraft
4 aircraft
3 aircraft
3 aircraft
EMB 145 AEW&C
(India)
EMB 145 AGS
Remote Sensing, Air-to-Ground
Surveillance
EMB 145 AEW&C
Airborne Early Warning and Control
Ref.: July,2013
A-29Super Tucano
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
Brazil: 99
Colombia: 25
Dominican Republic: 8
Chile: 12
Ecuador: 18
Indonesia: 16
Greystone (TacAir): 1
Mauritania: 2
Burkina Faso: 3
Angola: 6
USA: 20
A-29 Super Tucano
•Firm orders: more than 210 aircraft
•More than 170 aircraft delivered
Ref.: July,2013
Medium-term
2,000 Short-term
800
Long-term
700
Super Tucano Addressable Market Forecast 2020 (US$ million)
Total Market Forecast:300 aircraft
US$ 3.5 billion
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LAS – Jacksonville/USA
• Highly experienced personnel• Strong local leadership• 1st Delivery: End of 1°Sem 2014• New distribution channels: BPC and FMS
Modernization programs
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Modernization program
Modernization addressable market Forecast 2025 (US$ million)
Total Market Forecast*:
228 aircraft / US$ 1.5 billion
Total market forecast:
228 aircraft/ US$ 1.5 billion
* Considerando modernização do Tucano
Brazil Navy A-4
12 aircraft2 prototypes at GPX-CS
FAB A-1M
43 aircraft18 received by Embraer for modernization
FAB F-5M
46 acft + 11 acft (2º batch)46 delivered
FAB E-99
5 aircraft EMB 145 AEW&C
F-5M A1-M A-4
Short-
term;
437
Medium-
term;
567
Long-
term;
505
Ref.: July,2013
KC-390
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
This information is the property of Embraer and cannot be used or reproduced without written consent.
Chile (6)
Portugal (6)
Czech Rep. (2)
Brazil (28)
Colombia (12)
Argentina (6)
Total Market Forecast 2025:
700 aircraft
US$ 50+ bi
A new tactical military transport and tanker aircraftFirst flight: End of 2014Six countriesLetters of intent totaling 60 aircraft
Embraer KC-390
Ref.: September, 2013
Boeing and Embraer signed anagreement to share technicalknowledge and evaluate marketsfor joint sales efforts.
The Brazilian Air Force (FAB) andEmbraer concluded the CriticalDesign Review in the first quarterof 2013.
Information contained herein represents EMBRAER PROPRIETARY INFORMATION that shall not be duplicated, used, distributed or disclosed in whole or in part, without written consent from EMBRAER. Neither receipt nor possession of this data, from any source, constitutes such permission.
Mission Computer,DIRCM,
HUD, SPS
Wing Air Refueling Pod System
Cargo Handling and Aerial Delivery System
Landing Gear Legs
Throttle Control Quadrant (TCQ)
FBW Primary and Spoiler Flight Control System and ActuatorsActive Side Stick
Air Conditioning SystemCabin Pressure Control
System
Basic Avionics
Tactical Radar System
Liferaft and Maritime ELT
System
Pilot / Co-pilot / ACM and Loadmaster Seats
Emergency electrical system
Wheels and Brakes AssembliesLG System Hydraulic Control ComponentsBrake Control System Steering Hydraulic ManifoldArmor
Troop seats and litters
EMBRAER KC-390: PARCEIROS E FORNECEDORESKC-390: Main partners and suppliers