2005 - 5th us analyst and investor meeting corporate aircraft market
TRANSCRIPT
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Corporate Aircraft Market5th U.S. Annual Analyst and Investor Meeting
March, 2005
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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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The world discovers the Legacy
49 aircraft, 12 countries
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Legacy Service Center Network
19 Authorized Service Centers offering airframe line and heavy maintenance
New Service CentersCurrent Service Centers
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Parts Distribution Centers
Fort Lauderdale• 26,000 Part Numbers• Service hours=24/7• 5,000 Line items/month• Inventory value = $ 104 M
Paris• 25,000 Part Numbers• Service hours=24/7• 2,400 Line items/month• Inventory value = $ 124 M
Beijing• 3,100 Part Numbers• Service hours=12/6• 1,600 Line items/month• Inventory value = $ 16 M
S.José dos Campos• 22,600 Part Numbers• Service hours=12/6• 6,100K Line items/month• Inventory value = $ 63 M
4 Distribution Centers distributing parts to the Legacy Service Centers
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Sales Structure
Growing Sales Structure
Embraer Corporate Jets Authorized Sales Representative Network
United Kingdom and Ireland
Sub – Saharian African Countries
Belgium MonacoNetherlands Côte d’AzurLuxembourg
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Flight Options
“The introduction of the Legacy last year as a replacement for [our other] large-cabin [aircraft] has been succesful, Scheeringa says, and the company plans to add four aircraft a year, depending on demand. ”
“A first for the industry, he says.”
Michael ScheeringaFlight Options, COO and acting CEOFlight International, 8-14 March 2005
“The introduction of the Legacy last year as a replacement for [our other] large-cabin [aircraft] has been succesful, Scheeringa says, and the company plans to add four aircraft a year, depending on demand. ”
“A first for the industry, he says.”
Michael ScheeringaFlight Options, COO and acting CEOFlight International, 8-14 March 2005
Legacy has flown around 130 h/month, an utilization record on Flight Options fleetLegacy has flown around 130 h/month, an utilization record on Flight Options fleet
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Brazilian Operators
“The company acquired the Legacy in May 2002… It has completed 35 international flights with perfect dispatchability. Not a single failure occurred.”
“...is a extremely versatile aircraft, with cabin size and performance comparable to planes that cost twice as much.”
José Claudio TorresanChief Pilot – Major Brazilian Corporation
Aero Magazine, March 2005
“The company acquired the Legacy in May 2002… It has completed 35 international flights with perfect dispatchability. Not a single failure occurred.”
“...is a extremely versatile aircraft, with cabin size and performance comparable to planes that cost twice as much.”
José Claudio TorresanChief Pilot – Major Brazilian Corporation
Aero Magazine, March 2005
Legacy achieved 100% dispatchability in Brazil in the last 12 monthsLegacy achieved 100% dispatchability in Brazil in the last 12 months
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ProductImprovements
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Ceiling
More flexibility
Freedom: avoid congested flight levels
Less turbulence
Less traffic
Certified in 1Q/ 2005(also as a SB for current operators)41,000 ft
DELIVERED
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Special runway operation
First large cabin twin jet capable to operate in LCY
Wet and dry operations
Steep approach landing
Increased range capability:London – Moscow ( 1,420 nm)London – Cairo ( 1,930 nm)London – Azores ( 1,750 nm)
Certified in 4Q 2004LCY Operation
8 pax
4 pax
Mach 0.74DELIVERED
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Short runways performance improvement
Enhanced performance calculations
Demanding conditions: improved take-off performance
More flexibility: shorter runaway lengths, more airports available
Certified in 4Q/2004DELIVERED
Range improvement:Santos Dumont, Brazil: 1,315 to 1,730 nm ( + 32%)Toluca, Mexico: 3,075 to 3,185 nm (+ 4%)Key West, USA: 1,990 to 2,230 nm (+ 12%)London City, UK: 1,700 nm ( cleared to operate)
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Interior ambience – pleated window shades
Available as of 1Q 2005
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Connectivity
128 kbps wireless network powered by Inmarsat Swift64© satellite communication service, providing:
En route productivity enhancementIn-flight office – taking care of business
Upgradable to future available B-GAN service (up to 432 Kbps per channel)Available as of 2Q 2005
HSD - High Speed Data
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Take-off and landing altitude expansion
Allowance to operate from runways located at high altitudes
Teterboro, NJ - Telluride, CO ( 1,640 nm)non-stop with 8 passengers on board
Opens access to high-altitude airportsspread around the world
Available as of 4Q/2005
9,500 ft
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Embraerand theCorporate Aviation Market
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Market Forecast - World
8,228 aircraft à US$ 130 billion in the next 10 years
Very Light
Entry
Light
Midlight
Midsize
Super Midsize
Ultra-Long Range
Global
Large
Very Light
Entry
Light
Midlight
Midsize
Super Midsize
Ultra-Long Range
Global
Large
6%
13%
11%
14%
13%
20%
12%
9%2%
1% 4%4%8%
10%
23%
22%
22%
6%
US$Units
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Corporate Aviation Market Size
Source: AT Kearney and Embraer estimates
10.5
1.02.2
3.8
4.1
1.9
1.22.6
4.5
6.0
3.3
2004 2014
Airframe / OEM
Completion and Refurbishment
MRO
FBO
Aircraft ManagementCharter and
Fractional Ownership
US$ 23.4 bi
16.0
US$ 33.6 bi
(2004 US$ billions)
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Embraer Competitive Factors
Strong position in the commercial aviation market
§ Enterprise expertise
§ Ability to identify market and product opportunities
§ Capable to develop differentiated products at competitive costs
§ Industrial efficiency
§ Project, manufacturing and support experience
§ Global presence
3 years of experience in the Corporate Aviation Market
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Competitive Landscape
Mustang#Very light
Falcon 7X#G500G550
Global ExpressGlobal
Express XRS#
Ultra Long Range
2000EX900C
900EX900DX#
G300G350#
G400G450#
Challenger 604
Global 5000Large
Legacy50EX2000G200Hawker
Horizon#Citation XChallenger
300Super Midsize
Under studyG100G150#
Hawker 800XPSovereignLear 60Midsize
EncoreExcelXLS
Lear 45Lear 45XRMidlight
Hawker 400XP
CJ3Bravo
Lear 40Lear 40XR#Light
Premier ICJ1 / CJ1+ #
CJ2 / CJ2+ #Entry
Mustang#Very light
Falcon 7X#G500G550
Global ExpressGlobal
Express XRS#
Ultra Long Range
2000EX900C
900EX900DX#
G300G350#
G400G450#
Challenger 604
Global 5000Large
Legacy50EX2000G200Hawker
Horizon#Citation XChallenger
300Super Midsize
Under studyG100G150#
Hawker 800XPSovereignLear 60Midsize
EncoreExcelXLS
Lear 45Lear 45XRMidlight
Hawker 400XP
CJ3Bravo
Lear 40Lear 40XR#Light
Premier ICJ1 / CJ1+ #
CJ2 / CJ2+ #Entry
Bombardier Cessna Raytheon Gulfstream Dassault
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Main areas of actuation
§ Product Strategy
§ Commercialization Strategy
§ Customer services Strategy
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Thank You !