2002 - third annual analyst & investor meeting customer services

EmbraerThird Annual

Investor MeetingSão José dos Campos

Nov. 21-22, 2002

Artur CoutinhoCustomer Services VP

CustomerServices

Global Coverage

• Embraer Customer Services worldwide locations.

Botucatu

Fort Lauderdale

Sao Jose dos Campos

WeybridgeParis

Beijing

Dallas

Melbourne

Customer Service Philosophy

•Embraer is focused on understanding and meeting the requirements of its customers.

• Focus on customer satisfaction and close communication

• The right part, at the right place, at the right time, at a fair price

• Responsive and customized support services.

Brazil 10,430

North America 205

Europe 190

Asia/Australia 37

Embraer Employees

Customer Services Employees

Brazil 410

North America 120

Europe 100

Asia/Australia 13

Brazil 10

North America 32

Europe 28

Asia/Australia 6

Field SupportRepresentatives Count

Aircraft Supported

650 ERJ 135/140/145

350 EMB 120 Brasilia

300 EMB 110Bandeirante

100 EMB-121 Xingu

150 AM-X

600 EMB-312 Tucano

180 EMB-326 Xavante

Update: November 2002

Full Support

Embraer Customer Services is a highly empowered organization, designed to support customers in every aspect of aircraft operation. C u s t o m e r

S e r v i c e

MaterialSupport

LogisticSupport

field & technical support

costs & reliability

operational support

training

CIS/Aerochain

suppliers interface

account managers

TechnicalServices

MaintenanceServices

stock quality

spares planning

pricing

special programs

e-commerce

provisioning

Components repair and overhaul

warranty management

spares sales

spares logistics

AOG support

Aircraft repair

•Embraer uses cutting edge technology to offer a wide range of services to streamline maintenance, parts and operations.

Innovation in Services

AEROChain/Customer Integration System (CIS)• Embraer Internet portal that supports maintenance &

operations.• Digital market place• MRO• VMI (Vendor Monitoring Inventory)

Spares Global Support Packages• Optimized provisioning to fleet hour agreements• Heavy Check Solutions• Collaborative inventory planning

Customer Services Added Value

A/CDEVELOPMENT

- Operationaland

maintenanceneeds

AFTER SALES SUPPORT

- Customers technical support- Customers’s loyalty and Embraer image improvement

- Revenues

PRODUCTION & A/C SALES

- Active participation on sales campaigns - Feedback from the field and

from fleet operations

Year5

Year0

Year20

Year35

Added Value: Development Phase

• In the product development phase, Customer Services brings its experience and lessons learned from Customers operations, helping Embraer with:– Engineering support,– Simultaneous engineering focused on fleet

performance improvement and maintenance costs reduction.

Added Value: Production Phase

• Customer Services monitors the technical and operational issues ocurring during operations, as well as the Customer needs, helping to find the solutions.

• Customer Services takes an important role in the a/c sales process, helping to provide competitive advantage for our products and the best cost equation to the customers.

Added Value: After Sales Support

• By monitoring fleet operation continuously, Customer Services helps to improve:– Customers loyalty, providing technical solutions

that help the reduction of operational and maintenance costs,

– Product image, helping to increase the fleet performance levels,

– Company image, resulting of its positive attitude and commitment with Customers.

Added Value: Revenues

• Maintenance services– EAMS

• Spare Parts sales• Logistic services• Global Support Program• AEROChain

Revenues: Maintenance Services

Per region (%)

USA

Europe

Canada&Caribean

Latin America

Africa&M.East

Asia

Per market segment (%)

< 30 pax

30/60 pax

60/90 pax

90/120 pax

Per type of service (%)

Airframe

Components

Engine

Painting

• Maintenance services (0-120 pax), will amount to US$ 106 billion in the next ten years, with the following breakdown:

Revenues: EAMS Services

• The Embraer Aircraft Maintenance Services will supply services in 2003, to regional operators in the USA, with the following breakdown:

Airframe

Components

Painting

Revenues: Spare Parts Sales & Logistic Services

• Embraer spare parts sales worldwide in 2002 :

• Embraer provides pool services, parts exchange, parts rental and parts consignment in Europe and USA

USA

Europe

Brazil

Revenues: Global Support Program

• As a result of a new aviation environment, Embraer Customer Services also offers to the market a “Global Support” Program.

• This program assures to the airlines, by a fixed cost, a pre-defined set of maintenance services, opening for Embraer a new business oportunity.

Revenues: AEROChain

Embraer’s e-marketplace provides the following services to the aerospace industry: spare parts trading, planning and collaboration tools, technical support, access to technical publications, training and maintenance management tools.

Revenues: AEROChain (cont)

• In addition, AEROChain’s features will allow Embraer to:– Increase it’s revenues in part sales,– Reduce some administrative and material costs,– Reduce inventory levels.

• AEROChain will also improve our relationship with Customers, helping them to reduce inventory levels (e.g.: Express Jet, with 2.000 items in 6 locations).

Leading the Industry

• According to Meridian International Research, Embraer offers the best product support among regional aircraft manufacturers.

Customer Satisfaction Survey

5,65-3rd Fairchild-Dornier5,785,492nd Bombardier6,676,551st Embraer

20011999

Note: This customer satisfaction survey is performed each two years by Meridian International Research