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This information is the property of Embraer and cannot be used or reproduced without written consent. Luiz Carlos Aguiar, CEO
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This information is the property of Embraer and cannot be used or reproduced without written consent. 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.
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This information is the property of Embraer and cannot be used or reproduced without written consent. AGENDA This information is the property of Embraer and cannot be used or reproduced without written consent. Vision & Mission General Information Results and the Future Strategic Vision Main Programs Status
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This information is the property of Embraer and cannot be used or reproduced without written consent. VISION AND MISSION EMBRAER DEFENSE AND SECURITY VISION AND MISSION Mission To protect people, territories and safeguard critical assets, by developing tailored and business integrated solutions in the Defense & Security markets, and by providing results for customers and stakeholders, partners and society. Vision To be the leader in providing defense & security solutions in the Brazilian market and in those where Brazil has a very good geopolitical relationship
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This information is the property of Embraer and cannot be used or reproduced without written consent. EMBRAER DEFENSE AND SECURITY Embraer Defense and Security: a new Embraer company established on 1st January 2011 Revenues 2011 US$ 852 million 1,647 employees Presence in more than 40 countries This information is the property of Embraer and cannot be used or reproduced without written consent.
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CAGR 33% RESULTS: REVENUE AND EBIT Revenue Evolution (US$ Million) EBIT (2011/2012): 9~12% Ref.: August, 2012 CAGR 2012-2020 10% 1st semester 498
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This information is the property of Embraer and cannot be used or reproduced without written consent. RESULTS: BACKLOG Backlog Evolution (US$ Billion) Ref.: December, 2012
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This information is the property of Embraer and cannot be used or reproduced without written consent. REVENUE BREAKDOWN EVOLUTION 20122011 (*) * Radar (Orbisat) C4I (Atech) UAV (Harpia and Santos Lab) Satellite (JV Embraer/Telebrás) Ref.: August, 2012 (*)
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This information is the property of Embraer and cannot be used or reproduced without written consent. EMBRAER DEFENSE AND SECURITY STRATEGIC OBJECTIVES To build a leadership position and to act as the main prime contractor in the Brazilian Defense and Security Industry Base To expand the portfolio of products, services and technologies build through a combination of organic growth and acquisitions
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This information is the property of Embraer and cannot be used or reproduced without written consent. Other Brazilian companies Equipment suppliers Solutions development Foreign Companies Brazilian construction companies Brazilian Government Projects Brazilian priority supplies Brazilian supply chain strengthening Technology development and retention Finance structuring Highly qualified employment generation Technological spin-off Main Contractors Supply of complementary foreign equipment Supply of base infrastructure EADS (Europe) Fincantieri (Italy) Finmeccanica (Italy) Thales (France) Elbit (Israel) IAI (Israel) BAE Systems (UK) DCNS (France) Boeing (USA) Rockwell Collins (USA) Indra (Spain) Saab (Sweden).... Prime contractor Project management Finance structuring Solutions integrator Development and retention of technologies Services and logistics Main Brazilian Defense and Security Company: Satellite Prime Contractor SISFRON Integrated Borders Monitoring System This information is the property of Embraer and cannot be used or reproduced without written consent. To build a leadership position and to act as the main prime contractor in the Brazilian Defense and Security Industry Base Aerial Defense
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This information is the property of Embraer and cannot be used or reproduced without written consent. FUTURE PROJECTS – BRAZILIAN GOVERNMENT NAVY SisGAAZ SISFRON (phase 1) SISFRON (Full Scope) Aerial Defense Fighter Jet Tender UAVs Satellites 2013201620202030 US 4 bn US 2 bn US 4 bn ARMY AIR FORCE OTHER US 4 bn US 400-500 MM US 1bn US 400MM
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This information is the property of Embraer and cannot be used or reproduced without written consent. FUTURE PROJECTS - BRAZILIAN GOVERNMENT 2013 Federal Initial Budget (*) (*) Investment Budget – Budget sent to congress for discussion (available at Ministry of Planning website)
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This information is the property of Embraer and cannot be used or reproduced without written consent. Brazilian Army Priorities SISFRON Integrated Borders Monitoring System Estimate: US$ 4 bi Comprising radars, communication networks, C4I, unmanned air vehicles (UAV) and armored vehicles Satellite Estimate: US$ 400 M Participation in the first Brazilian Geostationary Satellite Embraer won the 1 st phase of SISFRON, comprised of a 650km border between Brazil, Paraguay and Bolivia
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This information is the property of Embraer and cannot be used or reproduced without written consent. GROWTH THROUGH ACQUISITIONS AND PARTNERSHIPS Command and Control Air Traffic Management Systems Police Intelligence System UAV Simulators Modernization of avionics systems Mini-UAVs HARPIA MRO Aerostructures Remote Sensing Ground Radars Mission Systems Satellite Control Commercial Agreement This information is the property of Embraer and cannot be used or reproduced without written consent. To expand the portfolio of products, services and technologies built through a combination of organic growth and acquisitions VISIONA 50% 90%65%51% NA51% This information is the property of Embraer and cannot be used or reproduced without written consent.
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Embraer Defense and Security, Partners and Affiliated Companies Light attack and advanced training Transport of authorities Modernization programs ISR (Intelligence, Surveillance and Reconnaissance) Services Tactical military transport UAV’s HARPIA System of Systems Radar Satellite VISIONA
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This information is the property of Embraer and cannot be used or reproduced without written consent. Alverca (Portugal) MRO Abu Dhabi (UAE) Commercial presence Singapore Commercial office Brasília (Brazil) Commercial office Harpia Sistemas headquarter Rio de Janeiro (Brazil) Commercial presence São Paulo (Brazil) Headquarters Atech S.A headquarters São José dos Campos (Brazil) Engineering, programs, industrial operations, customer support and services Orbisat headquarters Campinas (Brazil) Orbisat (engineering and operations) Gavião Peixoto (Brazil) Industrial operations Service center Villepinte (France) Logistic support Washington DC (USA) Commercial presence CORPORATE PRESENCE Ref.: December, 2011 Eugênio de Melo (Brazil) KC-390 Program Engineering
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This information is the property of Embraer and cannot be used or reproduced without written consent. PORTFOLIO – SUPER TUCANO Firm orders: 190 aircraft Brazil: 99 Colombia: 25 Dominican Republic: 8 Chile: 12 Ecuador: 18 Indonesia: 16 Greystone (TACAir): 1 Undisclosed: 11 Deliveries: 168 aircraft Super Tucano Addressable Market Forecast 2020 (US$ million) Total Market Forecast: 300 aircraft US$ 3.5 billion Pursuing USAF Light Air Support competition Ref.: August, 2012 Partnership with Boeing to provide weapons integration, increasing capabilities of the aircraft.
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This information is the property of Embraer and cannot be used or reproduced without written consent. MODERNIZATION PROGRAMS This information is the property of Embraer and cannot be used or reproduced without written consent. Total Market Forecast*: 234 aircraft US$ 1.6 billion Modernization Addressable Market Forecast 2025 (US$ million) Brazilian Navy A-4 12 aircraft Two prototype at GPX-CS Brazilian Air Force A-1M 43 aircraft Fourteen received by Embraer for the modernization Brazilian Air Force F-5M 46 a/c + 11 a/c (2 nd batch) 45 already delivered * Forecast considering the market for F-5 and Tucano modernization Ref.: August, 2012
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This information is the property of Embraer and cannot be used or reproduced without written consent. Embraer Jets to Defense and Government customers operating in 12 countries Presence in Latin America, Europe, Africa and Asia 58 Embraer Jets in operation Embraer Defense and Security signed a contract with the Brazilian Air Force to provide logistics support and services for the fleet of 24 aircraft of the ERJ-145 Brazil Panama India Angola Ecuador Belgium Pakistan Nigeria Colombia Greece Thailand Equatorial Guinea Embraer ISR Systems: 18 aircraft: Brazilian Air Force: 8 Hellenic Air Force: 4 Mexican Air Force: 3 DRDO/CABS (India): 3 16 aircraft in operation TRANSPORT OF AUTHORITIES AND EMBRAER ISR SYSTEMS
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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 aircraft First flight in 2014 Six countries Letters of intent totalizing 60 aircraft EMBRAER KC-390 Ref.: August, 2012 Boeing and Embraer signed an agreement to share technical knowledge and evaluate markets for joint sales efforts. The Brazilian Air Force (FAB) and Embraer concluded the Preliminary Design Review. The next major contractual event will be the project’s Critical Design Review in 2013.
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This information is the property of Embraer and cannot be used or reproduced without written consent. COCKPIT KC-390
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This information is the property of Embraer and cannot be used or reproduced without written consent. 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 Actuators Active Side Stick Integrated Power Plant System (IPPS) Air Conditioning System Cabin 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 Assemblies LG System Hydraulic Control Components Brake Control System Steering Hydraulic Manifold Armor Troop seats and litters EMBRAER KC-390: MAIN PARTNERS AND SUPPLIERS
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This information is the property of Embraer and cannot be used or reproduced without written consent.
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