1. UBS at NBAA 2006 Convention
October 18th,2006
José Eduardo Costas
Vice-President, Contracts, Executive Jets
2. 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.
4. Business Aviation Market Size
Significant Expansion
15,7
1,1
2,4
4,2
4,7
2,2
19,5
1,2
2,7
4,8
6,7
3,9
2005 2016e
Airframe / OEM
Completion +
Refurbishment
MRO
FBO
Charter + Aircraft
Management
Fractional Ownership
Source: AT Kearney and
Embraer estimates
(2005 US$ billion)
US$ 27.1 bi
US$ 38.9 bi
5. Main demand drivers
Stock market
performance
Corporate Profits
Individual Wealth
Macro-economic
factors (GDP)
Source: Global Insight – May & September 2006
WORLD
Asia Pacific
not including Japan
6.4%
Latin America
Africa
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 jets
2006e: + 16% 2007-2016e: + 3.7% (cagr)
7. Source::Embraer(adaptedfromJetSolutions)
Yearly Total Cost
Fractional Ownership
Used Fractional
Jet cards memberships
Aircraft Management
Charter On-Demand
Scheduled Charter
“Bizav” Airline
Traditional Ownership
CommercialAviation
Cost
Industryanswer:businessmodelsevolution
AirTaxi
BrandedCharter
Newbusiness
models
8. 23%
22%
10%
12%
11%
12%
8%
2%
2007-2016 Market Forecast (deliveries) - World
Product 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
9. Industry Findings
Emerging Transp.
Alternatives
Charter Growth
Jet Card Boom
Car trips
Airline First
Reaction Initiative
Airline Premium
Service
2005
New Models of
Transportation
Air Taxi
Branded Charter
2006
Traditional
Commercial Offer
Hassle factor
Small cities:
Low frequencies
No direct flights
10. VLJs: Tapping the Gap ??
Source:6
VLJs may tap the gap
$0
$2
$4
$6
$8
$10
0 100 200 300 400 500 600 700
Stage Length (miles)
RoundTripPrice(US$x1,000)
Light Executive Jet
Airlines Light bizjet average price
Airline – Full Fare
Huge Gap: US$ 6.000 (example)
11. Vision
To become a major player in the Business Aviation Market by
2015 through innovative and differentiating product and
service solutions with added value to our customers and
shareholders.
13. The world discovers the Legacy™ 600
85 aircraft, 18 countries, the right choice
85TOTAL
1AFRICA
3LATIN AMERICA
5MIDDLE EAST
8ASIA
31EUROPE
37USA
10 Oct 2006
18. Phenom™ 100 and Phenom™ 300
Prodigy™ - Avionics based on Garmin system Preliminary data
19. Layout Configuration Comparison – Jets
Source: Conklin & de Decker Aircraft Comparator 2005/2006 – Manufacturers’ web sites and promotional material
Preliminary data
Phenom™ 100 CJ1
(Entry Level Jet)
Eclipse 500 Mustang Adam 700
Phenom™ 100
20. Source: Conklin & de Decker Aircraft Comparator 2005/2006 – Manufacturers’ web sites and promotional material
Cross-section Comparison – Jets
Phenom™ 100 vs. Eclipse 500 Phenom™ 100 vs. Mustang
Preliminary data
4ft2in(1.27m)
4ft11in(1.50m)
4ft 8in (1.42 m)
5ft 1in (1.55 m)
4ft6in(1.37m)
4ft11in(1.50m)
5ft 1in (1.55 m)
4ft 7in (1.40 m)
Phenom™ 100
21. Source: Conklin & de Decker Aircraft Comparator 2005/2006 – Manufacturers’ web sites and promotional material
Layout and Cross-section Comparison – Turboprops
Cross-section Comparison
Preliminary data
Phenom™ 100 vs. King Air C90GT
4ft10in(1.37m)
4ft11in(1.50m)
5ft 1in (1.55 m)
4ft 6 in (1.45 m)
Phenom™ 100
Phenom™ 100 King Air C90GT
22. Integrated Development
Embraer uses a full range of technologies to enable a complete development
integration for its products. Catia V5 is extensively being used.
It is a successful heritage that comes from Embraer Commercial aircraft
experience and is being applied to the Phenom™ 100 and Phenom™ 300.
23. Phenom™ 100 – Wind Tunnel Test Campaign
Design specifications confirmed
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
COMPLETED
2Q - 2006
4Q - 2005
2Q - 2005
24. Phenom™ 100 – Engine first flight
Successfully completed 4.2 hours of flying
Pratt & Whitney Canada PW 617F
Oct 2006
COMPLETED
25. Phenom™ 100 – Master Phase Plan
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 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
26. Phenom™ 100
Entry into Service: mid-2008
Price: US$ 2.85 million*
* Jan 2005 economic conditions
29. Phenom™ 300
Preliminary dataBaggage Compartment
Sources: B&CA Purchase Planning Handbook – May 2005
Baggage Compartment - 66 cu ft
FWD Baggage Compartment - 5 cu ft
Wardrobe - 5 cu ft
Competitors Main Baggage Compartment
Hawker 400XP: 26 cu ft
Citation Encore: 28 cu ft
Citation CJ3: 50 cu ft
30. Phenom™ 300
Layout Configuration Comparison
PhenomTM 300 CJ3 Encore
(Mid-Light)
CJ2+ Bravo
Source: Conklin & de Decker Aircraft Comparator 2005/2006 – Manufacturers’ web sites and promotional material
Preliminary data
31. Phenom™ 300
Cross-section Comparison
Source: Conklin & de Decker Aircraft Comparator 2005/2006 – Manufacturers’ web sites and promotional material
Preliminary data
4ft9in(1.45m)
4ft11in(1.50m)
4ft 10in (1.47 m)
5ft 1in (1.55 m)
Phenom™ 300 vs. CJ2+ / Bravo / CJ3 / Encore (Mid-Light Jet)
Phenom™ 300 – walkthrough cabin
32. Phenom™ 300 – Wind Tunnel Test Campaign
Ongoing campaign
TsAGI – Central Aerohydrodynamic Institute - Russia
33. Phenom™ 300 – Master Phase Plan
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2004 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
40. 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
44. Docile flying characteristics
Next generation engines
Designed for high utilization
High availability
Premium comfort
Outstanding performance
Low operating cost
Human factors
Designed for high utilizationLow operating cost
Phenom 100TM and Phenom 300TM design drivers
45. High Utilization – based on 4 main fundamentals
Designed for high utilization
50. Availability & Reliability
Preliminary data
High MTBF
IESI – Integrated Electronic Standby Instruments
10 times better MTBF
Maturity plan
FADEC’s
Power
Distribution
Pressurization
Controller
All main electronics inside pressurized areas
Avionics
51. Dynamic Display Interchangeability
The aircraft can be dispatched with PFD2 failure:
PFD1 failure:
Preliminary data
MFD failure:
Availability & Reliability
52. Preliminary data
Low Turn-Around Time (TAT)
Availability & Reliability
Single Point RefuelingExternally Serviced LavatoryPhenom™ 300:
54. MSG-3 and low intervention philosophies
Customized maintenance plan
Simple maintenance procedures
Reduced number of tasks with higher intervals
Smooth replacement & adjustment tasks
Maintenance
Preliminary data
Quick fault location and isolation up to LRU level
Highly integrated central maintenance computer
(engine, avionics & other systems – AMS, electrical etc)
Phase 1 – On Ground Datalink
Ground
NetworkConnectivity - Data link capability (road map)
Trend and exceedance
Remote Diagnostic
Two-way high-speed
63. Air Taxi - per Seat on Demand
Source:6
Air Taxi per seat fills the gap
$0
$2
$4
$6
$8
$10
0 100 200 300 400 500 600 700
Stage Length (miles)
RoundTripPrice(US$x1,000)
Light Executive Jet
Airlines
Air Taxi Projected Price – Phenom 100
Light bizjet average price
Airline – Full Fare
65. 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.
66. Building Up Experience
37 years of customer support
Reputable Maintenance Services
Excellent Parts Support & Repairs
Outstanding Field & Tech. Support
Comprehensive Training Program
Embraer Executive Care programs
Integrated Solutions
67. Embraer owned Service Centers Network in USA
Exisiting Service Center
Embraer Owned Service Centers
Fort Lauderdale
International, FL
Williams Gateway
Mesa, AZ
Bradley
Hartford, CT
New Service Centers
EAMS
Nashville, TN
68. Revamped Service Centers Network in USA
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
69. Reputable Service Centers Network in USA
Phenom 100 & 300Phenom 100 & 300
Authorized Service CentersAuthorized Service Centers
Different service levels (line to overhaul)
Hillsboro, OR
8 Authorized Service Centers
Moline, IL
Indianapolis, IN
Grand Junction, CO
Dallas, TX
Greenville, SC
70. Service Centers Network in USA
21 Service Centers provide territorial coverage
Phenom 100 & 300
Authorized Service Centers
Legacy 600 Authorized Service Centers
Embraer Owned
Service Centers
71. Enhanced Service Center Network in Europe
PT
FR
OGMA, PT
Exisiting Service Center
New Service Center
Le Bourget, FR
72. TO BE APPOINTED.
Enhanced Service Center Network in Europe
Legacy 600Legacy 600
Phenom 100 & 300Phenom 100 & 300
Operators have a wider choice of services
Munich, GYMunich, GY
Zurich, SWZurich, SW
London, UKLondon, UK
Prague, CRPrague, CR
5 Authorized Service Centers
LuganoLugano, SW, SW
73. Best choices for all kind of operators
Service Network for Embraer Executive Jets
Worldwide Network (middle 2008): 45 Service Centers
7 Embraer Wholly Owned
38 Authorized Service Centers
76. Flight Skills
Assessment
Training Center
&
Remote
Continuous
Practical
Experience
Training
Pre-Training
Package Study
Remote
Ground School
(class room)
Training
Center
Ground School
(simulation)
Phenom 100/300 Training Philosophy
33 ProficencyProficency LevelsLevels
Flight SchoolFlight School
Mentor PilotMentor Pilot
Web BasedWeb Based
TrainingTraining
Internet + CDInternet + CD
Instrument ProceduresInstrument Procedures
TrainingTraining
Computer BasedComputer Based
TrainingTraining
Cockpit + SystemsCockpit + Systems
Full FlightFull Flight
SimulatorSimulator
77. 77
First TrainingFirst Training
Center USACenter USA
20082008
Second TrainingSecond Training
Center USACenter USA
20122012
First TrainingFirst Training
Center EuropeCenter Europe
20092009
Phenom 100/300 Potential Training Locations
USAUSA EuropeEurope
Full Flight Simulator available at Phenom EIS
78. Embraer Executive Care
Scheduled + basic unscheduled airframe parts
Parts freight
Parts for Service Bulletins, AD related
Embraer Maintenance Tracking & Planning System
Scheduled heavy checks labor (24 MO)
Labor, all scheduled tasks
Labor, basic unscheduled tasks
Labor on Service Bulletins, AD related
Mobile Rescue Team, AOG
Standard Intermediate EnhancedLegacy 600*Legacy 600*
* Only airframe. No engine included.
More levels of coverage
79. Embraer Executive Care
Standard Enhanced
Scheduled + basic unscheduled airframe parts
Airframe parts freight
Airframe parts for Service Bulletins, AD related
Embraer Maintenance Tracking & Planning System
Engine Coverage
Airframe Labor, Scheduled and Basic Unscheduled
Airframe Labor, Service Bulletins, AD related
Airframe Mobile Rescue Team, AOG
Engine Life Limited Parts Coverage OPT.OPT.
OPT.OPT.
OPT.OPT.
High Utilization
above 400 FH/y
Low Utilization
below 400 FH/y
Phenom 100 & 300Phenom 100 & 300
Different Levels of coverage
