EXECUTIVE AVIATION MICHAEL AMALFITANO Embraer Executive Jets 1
KEY MESSAGES Signs of growth ahead Focusing on value and customer experience Executing our growth plan 2
SIGNS OF GROWTH AHEAD Velocity of trades increasing as evidenced by record number of preflown and new jet transactions in 2017 (over 3,000) Strong momentum continuing in North America and Europe which account for nearly 85% of deliveries Aircraft utilization up to pre-crisis levels charter traffic driving recovery Improving pre-owned inventory / Stable pricing New products stimulating demand US tax stimulus supporting demand increase 2018 OEM guidance points to an increase in market deliveries 3
KEY MARKET DRIVERS TRENDING POSITIVE INVENTORY Fleet for sale at 9.7% and trending down in the L12M # of jets 3,000 2,800 2,600 2,400 Avg. market depreciation (Excess discount of used jets vs. depreciation curve) 55% 50% 45% 40% 35% Gap Avg. price 2,200 For sale inventory 30% 2,000 25% Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 4 Source: Jetnet and Embraer analysis, Feb 2018
KEY MARKET DRIVERS TRENDING POSITIVE PRE-FLOWN For every 5 transactions, 4 are pre-flown aircraft 647 641-1% 2250 2461 +9% 2016 2017 New jet deliveries Pre-owned jet transactions 5 Source: Jetnet and Embraer analysis, Feb 2018
LARGEST REGIONS DRIVING MARKET DEMAND NORTH AMERICA 4,450 A/C (60%) US$ 116 BI (54%) EUROPE & AFRICA 1,480 A/C (20%) US$ 49 BI (22%) CHINA 500 A/C (6%) US$ 20 BI (9%) LATIN AMERICA 470 A/C (6%) US$ 11 BI (5%) ASIA PACIFIC & MIDDLE EAST 600 A/C (8%) US$ 20 BI (10%) 6 Embraer forecasts 7,500 units and US$ 215 Billion in industry revenue in the next 10 years
FOCUSING ON VALUE AND ELEVATING THE CUSTOMER EXPERIENCE 7
WE HAVE A CLEAR AND INSPIRING VISION To be the most desired brand in business aviation by fascinating our customers, delivering innovative products and service solutions with superior value, nurturing the passion and excellence of our employees and providing a solid return for our shareholders. 8
FUNDAMENTAL BUSINESS PILLARS Customers Shareholders Employees 9
STRATEGIC SHIFT FROM PRICE TO VALUE Brand desirability Customer loyalty New solutions 10
ADDING VALUE IN EVERY WAY 11 Excellence in customer support Tailored solutions for customers needs Clean-sheet designs and continuous product innovation
FOCUSING ON VALUE AND PRESERVING MARKET SHARE 677 705 706 647 641 18% 16% 17% 18% 17% Other Embraer Honda Gulfstream Dassault Cessna Aircraft Bombardier 2013 2014 2015 2016 2017 2017 down 0.9% yoy F2016: 647 F2017: 641 12 Source: GAMA and Embraer analysis, Feb 2018
EXECUTING OUR GROWTH PLAN Positioned for profitability acceleration through price discipline, cost reduction and expense optimization PRODUCT PORTFOLIO SALES STRATEGY VERTICAL INTEGRATION OPERATING EFFICIENCY 13
THE MOST DISRUPTIVE ENTRY-LEVEL JET EVER DESIGNED TECHNOLOGY Highly intuitive flight deck with state-ofthe-art avionics COMFORT Exclusive Oval Lite cross section and largest-in-class baggage capacity PERFORMANCE Outstanding hot-and-high airport performance Reduces pilot workload, increases situational awareness and enhances safety 14 Unmatched cabin flexibility and comfort, plus plenty of storage for oversize belongings like golf bags and skis Access more destinations, including such challenging airports as Aspen and Toluca
ENHANCING THE WORLD S FASTEST, LONGEST RANGE LIGHT JET TECHNOLOGY State-of-the-art flight deck, fully integrated CMC and SmartProbe, NICE by Lufthansa Reduced pilot workload and downtime, increasing reliability and offering features only available in much larger jets COMFORT Exclusive Oval Lite cross section, lowest cabin altitude, revolutionary interior, new seats by E.A.S.T., and largest baggage space The luxury of space, comfort and convenience, plus less fatigue and abundant natural light PERFORMANCE Fastest light jet, top-tier climb and field performance, plus low operating cost Takes everyone farther, faster and to more places worldwide, with room to spare 15
THE MOST ADVANCED AIRCRAFT IN THE MIDSIZE CABIN CATEGORIES TECHNOLOGY State-of-the-art avionics with FANS1/A+ and the only jets in their categories with full fly-by-wire technology, and GOGO AVANCE L5 A smoother ride, a safer flight, less maintenance and more cabin connectivity COMFORT Largest-in-class stand-up cabins with flat floor design, lowest cabin altitude, class-leading storage, and new seat options More comfort and personalization, more space and less fatigue PERFORMANCE A paradigm shifter, performance is paramount with the perfect balance between range and operational flexibility Reach more destinations in a shorter time, with more runway and payload capability and availability 16
A PROVEN AND RELIABLE PLATFORM TECHNOLOGY COMFORT PERFORMANCE Enhanced flight deck with autothrottle and intelligent engineering Largest-in-class cabin and the largest baggage compartment in business aviation Outstanding hot-and-high performance and steep-approach capability High level of automation, a highly intuitive environment; all backed by an unprecedented warranty Unmatched luxury and versatility, with three distinct cabin zones and room for everyone/everything Built for highly demanding missions; very low operating costs 17
YOUR HOME AWAY FROM HOME TECHNOLOGY COMFORT PERFORMANCE Highly integrated systems, such as fly-by-wire and Ka-band internet Five cabin zones with multiple configurations, lowest cabin altitude and unrivaled stowage Airline DNA, steep-approach capability and operation in restrictive airports Reduces pilot workload while enhancing safety, handling and comfort; full cabin connectivity Endless space, comfort and versatility, plus ample customization options to create a true home away from home High utilization, high availability, intercontinental range and ability to operate where other bizjets cannot 18
TARGETED INITIATIVES TO STRENGTHEN SALES PERFORMANCE Increase brand and product portfolio awareness through enhanced marketing initiatives Added sales demo fleet assets to aid product demonstration capability Renewed focus on business development activities to grow sales volume Focused efforts to sell Phenom 300E into existing customer base Enhance Legacy 450/500 penetration in the corporate flight department market 19
IMPROVING EFFICIENCY THROUGH GLOBAL OPERATIONS 850+ CUSTOMERS 1,200+ JETS IN OPERATION 70+ COUNTRIES INSTALLED FLEET L12Y CAGR: 29% Melbourne: building the executive jets center of excellence Ample resources and space with advanced manufacturing systems A showroom capable of wowing the most elite of customers Emphasis on bringing the business closer to customers Pre-owned solutions and infrastructure nearby new jet sales operations Titusville: enhancing customer experience through vertical integration Embraer Aero Seating Technologies (E.A.S.T) 20 Passion for excellence Becoming the most efficient aerospace company in the world
2017 STRATEGIC ACTIONS CONTINUING TO LEAD TO SUSTAINABLE POSITIVE CHANGE Better discipline on pricing Improved cash inflow / outflow management Reduced pre-flown inventory 21
WELL POSITIONED FOR GROWTH AND PROFITABILITY CUSTOMER EXPERIENCE VALUE INNOVATION EFFICIENCY PRICE DISCIPLINE Delivering for our shareholders! 22
LIGHT BOX 300E VIDEO 23
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