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Commercial jets : Embraer perspective

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(1)Lisbon - 27th May 2008 Ricardo Lugris EMBRAER Senior Sales Director. Commercial Jets : Embraer perspective.

(2) Contents. 1. Embraer company. 2. E-Jet family: the regional revolution. 3. Embraer market overview. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(3) Contents. 1. Embraer company. 2. E-Jet family: the regional revolution. 3. Embraer market overview. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(4) Evolution. Origin and Development. Privatization (1994). • The outcome of World War ll –. • The integration of two cultures. strategic national aircraft manufacturing project. • The creation of CTA and ITA. Technological + Entrepreneurial & Industrial. • Embraer established in 1969 The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(5) Highlights. • World’s third major commercial aircraft manufacturer • Significant market share • Global customer base • Renowned international partners. • Excellent financial performance • One of Brazil’s largest exporters • Investment Grade – Moody’s Investor Service and Standard & Poor’s • A diluted capital ownership, with no controlling groups. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(6) Net Revenue (U.S. GAAP). (US$ million) 7,100 6,500 5,245. 2,762 1,354. 2,927. 3,441 2,526. 1,837. 3,830. 3,807. 2005. 2006. 2,144. 764. 1997. 1998. 1999. 2000. 2001. •. 2002. 2003. 2004. 2007. 2008. 2009. 97% of revenue is exports. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(7) Qualified People Number of Employees. 23,878 19,265 16,953. 6,087. 1994. 6,737 4,319. 3,849. 4,494. 1995. 1996. 1997. Dec / 94 Embraer was privatized. 1998. 8,302. 1999. 10,334. 11,048. 2000. 2001. 12,227. 12,941. 2002. 2003. 14,658. 2004. 2005. 2006. Mar-08. April / 97 was the lowest level of employment – 3,200 people. BRAZIL 21,001*. FRANCE 207. SINGAPORE 30. USA 613. CHINA 273. PORTUGAL 1,669 * ELEB employees included. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(8) Global Business Operations in Brazil, United States, Europe and Asia. France. USA. Villepinte Le Bourget. Nashville Fort Lauderdale. Portugal Alverca. Brazil. China Beijing Harbin. Singapore Singapore. Gavião Peixoto Botucatu São José dos Campos. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(9) Business Areas. Commercial Aviation Market. Defense Systems. Executive Aviation Market. Aviation Services. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(10) Business Areas. Commercial Aviation Market. Defense Systems. Executive Aviation Market. Aviation Services. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(11) ERJ 145 Family. 37 Seats. 44 Seats. 50 Seats. 50 Seats (2,000 mn range). The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(12) ERJ 145 Family Order Book. Firm Orders. Options. Total. Deliveries. Firm Backlog. ERJ 135. 108. -. 108. 108. -. ERJ 140. 74. -. 74. 74. -. ERJ 145. 733. 75. 808. 690. 43. Total. 915. 75. 990. 872. 43. (as of March 31st, 2008). PO Oct-17-2007. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(13) Portugalia ERJ 145. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(14) 1000th ERJ delivered on September, 2007 Dec Dec 1996 1996. First First Delivery Delivery. Dec Dec 1998 1998. Dec Dec 1999 1999. Aug Aug 2000 2000. Mar Mar 2001 2001. Sep Sep 2001 2001. May May 2002 2002. May May 2003 2003. May May 2004 2004. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent. Feb Feb 2005 2005.

(15) E-Jets: EMBRAER 170/190 Family. 66 to 80 Seats 2,100 nm Range. 73 to 88 Seats 2,000 nm Range. 93 to 114 Seats 2,400 nm Range. 100 to 122 Seats 2,200 nm Range. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(16) E-Jets Family Order Book. Firm Orders. Options*. Total. Deliveries. Firm Backlog. EMBRAER 170. 179. 114. 293. 139. 40. EMBRAER 175. 129. 148. 277. 74. 55. EMBRAER 190. 431. 479. 910. 140. 291. EMBRAER 195. 96. 99. 195. 16. 80. Total. 835. 840. 1,675. 369. 466. (as of March 31st, 2008) Note: (*) Include purchase rights.. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(17) Business Areas. Commercial Aviation Market. Defense Systems. Executive Aviation Market. Aviation Services. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(18) Executive Market Products: Legacy. Legacy 600. Legacy Shuttle. Transportation of Authorities. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(19) Executive Market Products: Phenom 100 and 300 All preliminary data. Number of seats. Phenom 100. Phenom 300. 6 – 8 (occupants). 8 – 9 (occupants). Range*. 1,160 nm. 2,150 km. 1,800 nm. 3,335 km. Maximum Cruise Speed. 380 ktas. 705 km/h. 450 ktas. 835 km/h. MMO. Mach 0.70. Maximum Operational Altitude. 41,000 ft. 12,500 m. * NBAA IFR (35 min) Reserves + 100nm alternate; 4 occupants @ 200 lb (91 kg) 1 Baseline configuration. Mach 0.78 45,000 ft. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent. 13,700 m.

(20) Executive Market Products: Lineage 1000 All preliminary data. Lineage 1000 Number of seats Range* Maximum Cruise Speed MMO Maximum Operational Altitude. 13 – 19 (occupants) 4,200 nm 7,780 km 470 ktas 870 km/h Mach 0.82 41,000 ft 12,500 m. * NBAA IFR (35 min) Reserves + 200nm alternate; 8 occupants @ 200 lb The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(21) New executive jets program launch March 28th 2008 - Board approved the launch of 2 new business jets models: MSJ and MLJ, that will transport 7 to 12 passengers with 2 crew members.. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(22) Business Areas. Commercial Aviation Market. Defense Systems. Executive Aviation Market. Aviation Services. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(23) Defense Market Products Integrated Market Approach. Systems & Services. Training. Intelligence, Surveillance and Reconnaissance. Combat. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent. Transport.

(24) Business Areas. Commercial Aviation Market. Defense Systems. Executive Aviation Market. Aviation Services. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(25) Aviation Services. Services. MRO. Training. Material & Logistics Services. Aerostructures. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(26) Aviation Services MRO – Service Centers:. •OGMA. •EAMS. OGMA Industria Aeronautica de Portugal SA Lisbon, PORTUGAL. Le Bourget. Connecticut. Embraer Aircraft Maintenance Services Nashville, TN, USA. Mesa, AZ. Fort Lauderdale. Service Center Le Bourget – Le Bourget, FRANCE. •GPX. Embraer Service Center. Embraer Service Center Embraer Authorized Service Center for Commercial Airline Market Embraer Service Center for Executive Jets Market Embraer Authorized Service Center for Executive Aviation Market Embraer Service Centers Under Construction. Gavião Peixoto, SP, BRAZIL. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(27) Revenue per Segment. Revenue per Segment (2007). Revenue per Region (2007). Customer Support and Others, 13%. Others 17.3%. Defense Aviation, 6.6% Executive Aviation, 16%. Commercial Aviation, 64.4%. Europe 21.5%. Americas 57.4%. Brazil 3.8%. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(28) Backlog March 2008 – US$ 20.3 billion in firm orders US$ billion 18.8. 20.3. 14.8 11.4. 10.7. 10.6 9. 10.1. 10.4. 2004. 2005. 6.4 4.1 3 0.6. 1995. 1.2. 1996. 1997. 1998. 1999. 2000. 2001. 2002. 2003. 2006. 2007. 1st Q 2008. Firm Orders. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(29) Contents. 1. Embraer company. 2. E-Jet family: the regional revolution. 3. Embraer market overview. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(30) Market Survey Results Extensive market research with 40 major & regional airlines gives rise to a family of new-generation jets. Lower Direct Operating Costs ƒ Increased aircraft efficiency ƒ Lower maintenance costs ƒ Reduced TAT (better utilization) Maximum Family Commonality ƒ Same training, same spare parts High Performance ƒ Short field capability ƒ Longer range Mainline Standards ƒ More comfortable than traditional RJs ƒ Bigger cabin ƒ Larger overhead bins ƒ Larger cargo/baggage compartment FC- Apr-20-2007. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(31) E-Jets family EMBRAER 170/175 EMBRAER 170 • 70 to 80 Seats • 2,100 nm Range • Certification – February 2004. EMBRAER 175 • 78 to 88 Seats • 2,000 nm Range • Certification – December 2004. EMBRAER 190/195 EMBRAER 190 • 98 to 114 Seats • 2,400 nm Range • Certification – August 2005. EMBRAER 195 • 108 to 122 Seats • 2,200 nm Range • Certification – June 2006 The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(32) E-Jets Commonality Training Î 70% of the potential benefits same cockpit, common systems and fly-bywire technology mean maximum training commonality within the family EMBRAER. 170. 175. 190. 195. 170. -------. A/A/A. A/A/A. A/A/A. 175. A/A/A. -------. A/A/A. A/A/A. 190. A/A/A. A/A/A. -------. A/A/A. 195. A/A/A. A/A/A. A/A/A. -------. Training Qualification Differences : According to FAA AC 120- 53, grades range from A (best) to E (worst) in 3 categories: Training Differences, Check Differences and Recurrent Training. Spare Parts Î 30% of the potential benefits E170 100% E175 86% E190 100% E195 Based on the aircraft RSPL (Recommended Spare Parts List) Note: Airframe and Ground Servicing Equipment only (Engines are not included).. E-Jets have the maximum training commonality (A/A/A) E-Jets offer an outstanding parts commonality (86% to 100%) The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(33) A commonality praised by customers Airlines that ordered several E-Jets type. 10 E170 / 13 E190. 2 E175 / 5 E195. 2 E170 / 3 E175. 10 E170 / 18 E175. 7 E170 / 3 E190. 8 E190 / 2 E195. 7 E170 / 11 E190 Includes GECAS aircraft. 15 E175 / 45 E190. 6 E170 / 18 E190. 2 E170 / 3 E190. 28 E170 / 57 E190. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(34) Range from Lisbon - E-Jets family EMBRAER 170 AR (76 Pax) EMBRAER 175 AR (84 Pax) EMBRAER 190 AR (104 Pax) EMBRAER 195 AR (116 Pax) Max Pax Payload - 105 kg per pax 85% Annual Probability Winds ISA 5% airways allowance E170 / 175 Cruise Speed Mach 0.75 E190 / 195 Cruise Speed Mach 0.78 AR Version - MTOW [kg] E 170 38,600 E 175 40,370 E 190 51,800 E 195 52,290 Fully Equipped BOW [kg] E 170 21,800 E 175 22,400 E 190 28,700 E 195 29,800 Flight Levels Any Taxi Time (in & out) 20 minutes Reserves 5.0% trip fuel Alternate Distance: 100 [nm] Hold: 30 min @ 1500 ft The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(35) The Double Bubble Solution Roll on Bags 24 x 16 x 10 in 61 x 40 x 25 cm 0.78 m. 2.0 m. 18.25 in. 1.44 m. 2 inch gap between seats. Individual comfort No middle seat cabin Widest seat in the category Highest index space per seat Large overhead bins for 24 x 16 x 10 in roll-on bags Extensive passenger facilities Efficiency for airlines Wide aisle for boarding Flexibility for interior layouts Spacious service areas. 0.94 m. 19.75 in. 2.74 m IN 10/May/05. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(36) A comfort matching narrow-body standards Matching the “Best In Class” Single Aisle Living Space E-Jets. B737. A320. Assumptions: Formula: A*P/n A: Cabin cross section useful area P: Seat pitch (32”) n: number of seats abreast. Cabin X-Section Area:. 4.28 m2. 6.14 m2. 6.39 m2. Slice Volume:. 3.48 m3. 4.99 m3. 5.19 m3. 0.870 m3/seat. 0.832 m3/seat. 0.866 m3/seat. Baseline. -4.6%. -0.5%. Slice Volume/seat: Comparison:. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(37) The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(38) A significative trip cost advantage E-Jets: Lower trip costs than narrow-bodies 7000. Airplane Variable plus Ownership Costs per Trip. US$ per Trip. 4000. Network Airline 5881. 6000 5000. European. - 20%. - 35%. 4680 3879. - 500 nm trip. 4912. 4033. 3000 2000 1000 0 E170 70 seats. E175. E190. E195. A319. 78 seats. 100 seats. 110 seats. 134 seats. Costs exclude: revenue related costs and system (overhead) costs Costs include: variable: fuel, crew, maintenance, landing fees, handling fees ; ownership: lease cost, hull insurance, spares inventory costs The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(39) Finnair testimonials Total order: 10 E170 / 13 E190 Finnair needs ¾ Replace old MD83 (156 seats) ¾ Right-size capacity on A319 routes (A319 - 126 seats too large on some sectors) ¾ Acquire best fleet to feed Finnair Helsinki hub to Asia. Reasons for choosing the E-jets family ¾ High commonality within the family - enabling fleet / network optimisation ¾ E170 cost per trip 30% lower than A319 (mainly through lower fuel burn and lower navigation charges) ¾ E190 cost per trip 20% lower than A319 and cost per seat comparable to the A319 ¾ E190 extra-range capabilities Source: Finnair, Petteri Kostermaa, VP Network Strategy – April 2006 and September 2006 meetings The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(40) E-Jets fitting to all business models North America and Caribbean. South America. Europe. Africa/Middle East. Asia. Republic Airlines. Regional Express. Network. Low Cost & Charter Source: Embraer, as of March 31st, 2008. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(41) E-Jets orders in Europe UK:. NETHERLANDS:. FINLAND: Finnair. POLAND: LOT. Flybe. KLM Cityhopper 10 E190. 10 E170 / 13 E190. 10 E170 18 E175. 14 E195. GERMANY: FRANCE:. Cirrus: 1 E170 / 1 E175. Air France Regional 7 E170 E190. Lufthansa: 30 E190 11. ITALY: Alitalia 6 E170. SWITZERLAND:. AlpiEagles 10 E195. M1 Commercial Jets FlyBaboo. MOLDOVA:. 8 E190. Air Moldova: 1 E190. SPAIN:. MONTENEGRO:. Air Europa 6 E195. Montenegro Airlines. 158 E-Jets firm orders. 2 E195. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(42) E-Jets Family - Main Applications. 4 Replacement of old & inefficient jets 4 Natural evolution for existing 50-seat markets 4 Right-sizing of low load-factor narrow-body flights Î. Capacity, range & seamless service. Î. Enhancing services by increasing frequencies. 4 New market opportunities – low risk development Î Medium. density and long/thin markets. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(43) Contents. 1. Embraer company. 2. E-Jet family: the regional revolution. 3. Embraer market overview. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(44) 30 to 120-seat jets: a large market to tap Embraer Market Forecast (2008-2027) Projected Deliveries: 7,450 Jets (30-120 seats). USA, Canada & Caribbean. 3,330 45%. Latin America. 580 8%. Russia & CIS. 510. Europe. 7%. 1,350 17%. China. Africa. Middle East. 220. 190. 3%. 3%. 730. 10% Asia Pacific. 540 7%. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(45) Regional aircraft: increased competition New competition coming from Russia, China and Japan. Turbo-Props. Regional Jets. Regional Jets. Regional Jets Turbo-Props. Regional Jets Turbo-Props (stopped) Regional Jets The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(46) New regional jet programs NOT LAUNCHED YET. LAUNCHED. CANADA: Bombardier C-Series. JAPAN: Mitsubishi Regional Jet. 2 versions: 110 and 130 seats. 2 versions: 70 seats and 90 seats. Targeted EIS: 2013. Targeted EIS: 2014. LAUNCHED. LAUNCHED. RUSSIA: Sukhoi SSJ. CHINA: AVIC 1 - ARJ21. 2 versions: 78 and 98 seats. 1 version: 78 to 85 seats. Targeted EIS: 2009. Targeted EIS: 2009. The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

(47) Embraer leading the 30-120 seat market Market Share (number of orders) - World (30-120 seats) Bombardier 43% AVIC I 3% Sukhoi 2% Boeing 2% Antonov 1% Mitsubishi 0%. Embraer 47%. Airbus 2%. Considering Embraer: ERJ 145/140/135 ; Embraer 170/175/190/195 Bombardier: CRJ100/200/440/700/900/1000 Airbus: A318 Boeing: B737-600 Sukhoi: Superjet 100 AVIC I: ARJ-21 Antonov: An-148 Mitsubishi: MRJ. As of April 2008 The information contained herein is property of Embraer and shall not be copied or used without Embraer´s written consent.

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