Emb day executive aviation oct2013

This information is the property of Embraer and cannot be used or reproduced without written consent.

Embraer Day

Marco Tulio Pellegrini - COO

Executive Aviation

Oct. 31st, 2013


Market recovery depends on many factors

Source: Embraer Analysis

Sales of New Business

Jets

Sales of New Business

Jets

Corporate Profits

Corporate Profits

Willingness

to invest

Willingness

to invest

Finance conditions

(for small jets, and Asia

mainly)

Finance conditions

(for small jets, and Asia

mainly)

Pre-owned Market

Pre-owned Market

Business Aviation Traffic

Business Aviation TrafficWealthy

Population

Wealthy

Population

ExchangeRates

Stock

Markets


U.S. corporate profits

Source: BEA – Bureau of Economic Analysis and Embraer estimates, September 2013

Seasonally adjusted at annual rates

2.249

0

500

1.000

1.500

2.000

2.500

Q2

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

US

Co

rpo

rate

Pro

fits

(U

S$ B

i) +41% +125%


Worldwide HNWIs population

Source: World Wealth Report 2013 edition

7.78.2

8.89.6

10.1

8.6

10.110.8 11.0

11.9

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Po

pu

lati

on

(m

i)

North America Europe Asia-Pacific Latin America Middle East Africa


Source: FAA – September 27th, 2013

Business Jet Traffic – United States

100

130

160

190

220

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mo

ve

me

nts

X 1

00

0

2007

2009

2012

2013


World GDP growth rates

Source: EIU, September 2013


Business jets pre-owned market inventory

Source: Jetnet and Embraer Analysis, September 2013

0%

4%

8%

12%

16%

20%

24%

28%

0

500

1.000

1.500

2.000

2.500

3.000

3.500

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

TD

% o

f a

ctiv

e f

lee

t (L

ine

s)

Un

its

(Ba

rs)

Fleet older than 10 yrs

Up to 10 yrs & positions

Total fleet % for sale

12.9%

2483 jets

8.3%

672 jets


EEJ Fleet for sale

Despite a large amount of small jets in fleet, Embraer fleet for sale is currently

below the world average of 12.3%.

Despite a large amount of small jets in fleet, Embraer fleet for sale is currently

below the world average of 12.3%.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

50

55

60

65

70

75

80

85

90

95

100

Ap

r-09

Ju

l-0

9

Oc

t-0

9

Ja

n-1

0

Ap

r-10

Ju

l-1

0

Oc

t-1

0

Ja

n-1

1

Ap

r-11

Ju

l-1

1

Oc

t-1

1

Ja

n-1

2

Ap

r-12

Ju

l-1

2

Oc

t-1

2

Ja

n-1

3

Ap

r-13

Ju

l-1

3

for

sa

le a

s %

of a

ctiv

e fle

et

# o

f Em

bra

er

a/c

fo

r sa

le

EMBRAER Total fleet for sale % of active fleet

Source: Jetnet and Embraer Analysis, October 2013

12%


Pre-owned asking prices

Recovery will depend on an improvement in pre-owned prices.

Owners are postponing substitutions.

Recovery will depend on an improvement in pre-owned prices.

Owners are postponing substitutions.

2000

2400

2800

3200

0%

50%

100%

150%

May-09 Nov-09 May-10 Nov-10 May-11 Nov-11 May-12 Nov-12 May-13

# T

ota

l Fle

et

for

sale

Av.

dis

cou

nt

(Re

lati

ve t

o M

ay

20

09

)

# Total Fleet for sale Average discount

↓ 18.5% since peak

Source: Jetnet and Embraer Analysis, October 2013

↑ 141% since peak


Top 5 business jets in residual value performance

* Average equipped price in 2013 economic conditions for all years.

Source: Aircraft Bluebook, October 2013

30%

40%

50%

60%

70%

80%

90%

100%

2013 2012 2011 2010 2009 2008 2007 2006

Retail / Avg Equipped*

Phenom 300 Citation CJ4 G550 Lineage 1000 7X

Year of Manufacture


Top 10 best “liquidity” performers

Source: Jetnet, October 2013.

Rank MODELSDAYS ON

MARKET

DAY ON

MARKET (US)

ACTIVE

FLEET

FLEET

FOR SALE

FLEET

FOR SALE (%)

1st EMBRAER PHENOM 300 125 102 139 4 3%

2nd CITATION CJ4 149 238 130 3 2%

3rd GULFSTREAM G-350 157 N.A. 11 2 18%

4th GULFSTREAM G-550 169 120 411 12 3%

5th LEARJET 40XR 179 215 91 5 5%

6th CITATION XLS+ 191 131 143 10 7%

7th GULFSTREAM G-450 230 130 271 19 7%

8th EMBRAER PHENOM 100 234 256 285 19 7%

9th CHALLENGER 300 237 304 414 22 5%

10th FALCON 2000LX 237 83 123 6 5%


Fractional market consolidation: control duopoly

Source: Embraer analysis based on Jetnet database. October 2013.

Active fractional shares - market share

73%

11%

12%

3%1%

NetJets Flight Options Flexjet CitationAir Others

Directional

Aviation

Control

Directional Aviation will more than double its participation (from 11% to 23%).Directional Aviation will more than double its participation (from 11% to 23%).


Phenom 300 in fractional operators

Source: Jetnet and Embraer Analysis, October2013

FLIGHT OPTIONSFLIGHT OPTIONS NETJETSNETJETS

25 aircraft delivered to date25 aircraft delivered to date 10 aircraft delivered to date10 aircraft delivered to date

Flight Options also operates 6 Legacy 600


Owners utilization profile (average FH/year)

Source: Jetnet IQ 2Q13 report proprietary data.

Embraer owners tend to have a better annual utilization leading their

businesses to higher productivity. Good option for management prospects.

Embraer owners tend to have a better annual utilization leading their

businesses to higher productivity. Good option for management prospects.

344

393

433

445

440

393

372

350

616

0 200 400 600 800 1000

Small jets

Medium Jets

Large Jets

Gulfstream

Dassault

Bombardier

Cessna

Hawker

EMBRAER Owners

Ow

ne

rs

cla

ssO

wn

ers

OE

M


Next 10 years Bizjet

Forecast


US Corporate profits at record levels

HNWI at record levels

World GDP growth is moderate

Used market inventory leveled off but prices are still an issue

Traffic recovery on track but slower than expected

European markets still at risk; emerging countries slowing down

Market Recovery in slow motion

� Lack of confidence is holding the bizjet market turnaround

� USA market dictates the speed of recovery

MILD GROWTH


Deliveries Forecast (units)

0

200

400

600

800

1000

12002

00

8

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

9,250 jets and US$ 250 Bi in the next 10 years

Units US$

2014-2023 market forecast

900 4,2

1780

15,8

1140

17,3

920

17,8

1270

31,1

1670

64,7

1345

82,2

225 17,3

Deliveries Revenues

N10YF

Ultra Large

Ultra Long Range

Large

Supermid

Midsize

Midlight

Light

Entry


2014-2023 market forecast by region

Source: Embraer 2013.

North America4,530 a/c (49%)

US$ 117 Bi (47%)

EMEA2,330 a/c (25%)

US$ 70 Bi (28%)

Asia Pacific725 a/c (8%)

US$ 21 Bi (8%)

Latin America860 a/c (9%)

US$ 15 Bi (6%)

China805 a/c (9%)

US$ 29 Bi (11%)

Worldwide9,250 unitsUS$ 250 Bi


THE BUSINESS TODAY


EntryEntry

LightLight

Mid-lightMid-light

Mid-sizeMid-size

Super Mid-SizeSuper Mid-Size

LargeLarge

Ultra-Long RangeUltra-Long Range

Ultra-largeUltra-large EIS 2009

EIS 2010

EIS 2002

EIS 2009

EIS 2008

EIS 2014

EIS 2015

Embraer product portfolio


Executive Aviation - Revenue evolution (US$ million)

145 175246 278

582

838 874937

12101119

1292

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

CAGR 24.4%


EEJ market share evolution since EIS (units)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: Jetnet and Embraer analysis – July, 2013

Ma

rke

t sh

are

22% accumulated since EIS, within the markets EEJ competes22% accumulated since EIS, within the markets EEJ competes


29% 28% 27% 33% 33%

19%13%

7%9% 10%

12%18%

22%15% 17%

23% 21% 21% 27% 25%

4,2% 6,4% 6,9%5,9% 7,3%

8% 8% 6%4% 3%

5% 6% 10% 7% 5%

21.8 17.3 18.2 18.1 17.7

% O

EM

Sh

are

–T

ota

l R

ev

en

ue

s U

S$

2008 2009 2010 2011 2012

Others

Hawker-Beech

Embraer

Gulfstream

Dassault

Cessna

Bombardier

Total Revenues

(in US$)

Source: GAMA and Embraer analysis – July, 2013

EEJ market share (revenues)


Backlog evolution (US$ million)

CAGR 17%

500 500100 300

1800

4900

7200

5500

47004400

32002800

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013TD


Brazil – São José dos Campos

� Phenom 100 & 300

� Legacy 450 & 500

� Legacy 650

� Lineage 1000

Embraer Executive Jets: Final assemblies

USA - Melbourne

� Phenom 100 & 300

� Legacy 450 & 500

China - Harbin

� Legacy 650


400th Phenom 100/300 delivery in SJK

Phenoms

delivered June ’13


Phenom 100 – 2014 edition

New Multi-Function Spoiler and Interior Improvements

• Multi-function spoilers

• 11 new interior collections

New Standard

Items

• Multi-function spoilers

• 11 new interior collections

New Standard

Items

• Refreshment center

• Stowage space

• Premium seats

New Interior Options

• Refreshment center

• Stowage space

• Premium seats

New Interior Options


� Based on Garmin 3000

� First to certify this touchscreen Garmin platform

� ANAC, FAA and EASA approved

� Now available as an option

Phenom 300 – Prodigy touch


Extended Range - 200 nm

Enhanced Interior

Entertainment to the latest generation

Enhanced cockpit options – E2VS and Autoland

External look refreshed


Legacy 500 program update

All

Pre

limin

ary

Dat

a

� Three prototypes in flight test

� 700+ flight hours

� Over 16,000 systems test hours performed

� On track for EIS in 1H 2014

First appearance at NBAA


Range 2,300 nm

FROM TO

2,500 nm

Better performance and more flexibility

All

Pre

limin

ary

Dat

aLegacy 450 - Range increase


46”

4” additional leg room

Legacy 450 - Cabin comfort improvement

New Interior Design unveiled at NBAANew Interior Design unveiled at NBAA


Legacy 450 program update

First flight expected for 2H13First flight expected for 2H13


SERVICES AND

SUPPORT UPDATE


Embraer Service Center

Authorized Service Center

New Embraer Service Center in São Paulo - Brazil

Service Center network

Nearly 70 service centers worldwide. Nearly 70 service centers worldwide.


New Service Center in São Paulo, Brazil

� MRO start-up: October 2013

� FBO start-up: March 2014

� 200,000 SQFT

� US$ 25 million investment


Customer satisfaction: 2nd position maintained

38

“Embraer is creeping

even closer to the top

spot, up 0.1 to 8.2 from

last year’s 8.1”


Phenom 100: 280+

Phenom 300: 140+

Legacy 600/650: 200+

Lineage 1000: 10+

Embraer Executive Jets Global Presence

630+ executive jets in service in more than 50 countries630+ executive jets in service in more than 50 countries



This presentation is the property of Embraer S.A. ("Embraer") and shall not be copied, in whole or in part,

or used in any manner, except with Embraer´s prior written consent.

Embraer reserves the right to revise this document whenever occasioned by product improvements,

governmental regulations or other good cause.

All images: figures, finishing materials and colors are for illustration purpose only, and may not represent

the real and final product accurately.

Some features are optional items not included in the baseline aircraft and are subject to price increase and

lead-time analysis.

All data presented shall not be used as guarantee. Guaranteed specifications are listed in the technical

description and represent the only binding guarantee.

In the event of any conflict between this presentation and the technical description, the technical

description shall govern.