1. DB2 070-A08
Defense and
Government
Market
March 2008
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.
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 2
3. Business Model
Low level of investment, no
capital risk
Non-recurring investments are
paid by first client
Very positive cash flow
programs
It means that Embraer Defense programs have
high level of shareholder added value. Besides that the
Defense Programs generate technological spin-offs
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 3
4. Defense Products and Market Segments
Intelligence,
Surveillance and Training Combat
Reconnaissance
Transport Systems
& Services
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 4
6. Super Tucano FAB
SUPER TUCANO
Brazilian Air Force (FAB)
A-29 (Brazilian Air Force designation)
99 firm orders
58 delivered (44 twin-seater and 14 single-seater)*
Four operational bases: Natal (Advanced training), Porto Velho, Boa Vista and Campo Grande
AFB (operational squadrons). * Feb 2008
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 6
7. Super Tucano FAC
SUPER TUCANO
Colombian Air Force (FAC)
Fleet: 25 aircraft (twin-seater) (17 already delivered*)
Fleet: 25 aircraft (twin-seater) (17 already delivered*)
Two operational bases (Apiay and Barranquilla)
Two operational bases (Apiay and Barranquilla)
Intensive utilization in COIN (Counter Insurgency) missions against the FARC
Intensive utilization in COIN (Counter Insurgency) missions against the FARC
Successful operations and attacks against the FARC’s leadership
Successful operations and attacks against the FARC’s leadership
* Feb 2008
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8. Super Tucano Flight Simulator
Flight Simulator for the FAC’s Super Tucano
Developed by Embraer
Operational in the 1st semester 2008
In addition to the simulator, other training
and operational tools already developed
(CBT – Computer Based Training, MPS/MDS
(Mission Planning and Mission Debriefing
Stations)).
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 8
9. Super Tucano – Dominican Air Force
SUPER TUCANO
Dominican Air Force
8 firm orders (twin-seater version)
8 firm orders (twin-seater version)
First delivery: 12 months EDC
First delivery: 12 months EDC
Contracts already signed – pending Congress final approval.
Contracts already signed – pending Congress final approval.
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 9
10. F-5BR
Fleet: 46 aircraft
F-5M (FAB’s designation)
Air superiority fighter
Modernization program
includes structural
modification and upgrade of
avionics, sensors and
armament system capability.
22 aircraft already delivered*
* Feb 2008
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 10
11. AMX
A-1M (FAB’s designation)
Fleet: 53 aircraft
Attack and reconnaissance
aircraft
Contract: US$ 600M
Modernization program includes
upgrade of avionics, sensors and
armament system capability, and
fleet standardization.
First deliveries in late 2010 and
the last ones in 2014
First prototype already in
Embraer for modifications and
initial tests, and first flight
scheduled to late 2008.
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12. Transport aircraft
Belgium Greece
India Colombia
Brazil Ecuador
Brazil Nigeria
Thailand Angola
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 12
13. Transport aircraft – new contracts
Thailand Armed Forces (Army and Navy)
2 ERJ 135 LR
Royal Thai Army
Royal Thai Navy
Deliveries in the 2nd half 2008
Pakistan Air Force
2 Phenom 100 firm orders
First delivery in Dec 2008
2 other Phenom 100 under negotiation
PetroEcuador (Ecuador)
Ecuadorian State Oil Company
ERJ 145 LR
Delivery in September 2008
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 13
14. Customer Support – new contract
Package of maintenance services to the
Brazilian Air Force
EEC – Legacy / EMB 145 fleet
CLS – EMB 120 Brasilia fleet
Contract expected to be signed by
1Q2008
Contract value: around US$ 40M for 5
years
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16. Super Tucano
FACh (Chilean Air Force)
Up to 12 aircraft for advanced
training
RFP released in Jan2008
Proposal delivered in Feb 2008
Expected contract award in 2008
Contract value: around US$ 150M
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 16
17. Transport aircraft
Brazilian Air Force
2 EMBRAER 190 PR (Presidential Aircraft)
Replacement of the B737-200
New internal arrangement
Extra range (additional fuel tanks)
First delivery in early 2009
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 17
18. Multimission Aircraft – Indian Air Force
Proposal submitted in 2006
9 Legacy 600 platforms:
7 for COMJAM + target towing +
aerophotogrametry + passenger
transportation
2 SIGINT + passenger
transportation
Decision expected until March 2009
Contract value: around US$ 350M
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 18
19. EMB 145 AEW&C – DRDO/CABS – India
Proposal submitted in 2007
3 EMB 145 AEW&C platform modified
to meet DRDO/CABS specific
requirements
Decision expected in 2008.
Contract value: around US$ 250M
DRDO: Defence Research and Development Organization / CABS: Centre for Airborne Systems
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 19
21. C-390
Medium-sized military transport
aircraft in development phase
Derived from the EMBRAER 190
commercial jet.
Capable to transport up to 19 ton
(41,888 lb) of cargo
Missions
Troops and cargo transport
Troops and cargo air delivery
In flight refueling
Medical evacuation
DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 21
22. C-390 – Status
The C-390 Program was included in the Brazilian National Budget.
Brazilian Air Force (FAB) already included this project in the Strategic Planning for the
next 4 years
The total amount for the program’s budget is under discussion with the Brazilian
Government
Industrial partner countries and suppliers definition are under way and expected to be
finalized by July 2008.
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23. DB2 070-A08 INFORMAÇÃO DE PROPRIEDADE DA EMBRAER 23