EMBRAER DAY 2016 - USA John Slattery President & CEO, Commercial Aviation +55 12 3927 4404 investor.relations@embraer.com.br www.embraer.com
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Highlights 1,740+ accumulated E-Jets orders 100 Embraer jet operators Additional market opportunities in China and U.S. Initial placements by E2 lessors (AirCastle/Azul and Aercap/Borajet) E2 program on target, on budget, on schedule
Deliveries 122 2016 Guidance 105-110 Commercial Jets 100 105 106 90 92 101 76 9M16 2009 2010 2011 2012 2013 2014 2015 2016 Source: Embraer (Sep/2016) 4
Revenues (US$ billion) 2016 Guidance 3,4 3,3 3,7 3,8 3,3 3,2 US$3.45 US$3.65 bi 3,3 2,5 9M16 2009 2010 2011 2012 2013 2014 2015 2016 Source: Embraer (Sep/2016) 5
Number of Aircraft Orderbook Net Orders Deliveries 2.000 1.800 1.600 1.400 1.200 1.000 800 600 400 200 0 1999 2001 2003 2005 2007 2009 2011 2013 2015 1,740+ 1,260+ 2016 YTD 42 total firm orders As of Sep 2016 6
Embraer Customer Base 100 Jet Operators 7
Leadership 70 to 130-Seat Jets Since 2004 OTHERS SUKHOI OTHERS BOMBARDIER SHARE OF DELIVERIES 61% EMBRAER COMAC SHARE OF 51% NET ORDERS EMBRAER BOMBARDIER As of Sep 2016 8
Market Outlook 2016-2035 9
Projected Deliveries 6,400 Aircraft (70-130+ Seat Jet Segment) CIS 380 6% NORTH AMERICA 2,020 31% EUROPE 1,160 18% MIDDLE EAST 230 4% ASIA PACIFIC 1,690 26% LATIN AMERICA 690 11% AFRICA 230 4% Source: Embraer Market Outlook (2016-2035) 10
Market Opportunities DIRECT REPLACEMENT 50/70-SEAT JET REPLACEMENT TP REPLACEMENT RIGHT-SIZING SMALL NB IN US MAINLINES LCCS IN ASIA AND EUROPE REGIONAL AVIATION DEVELOPMENT (INDIA, BRAZIL, TURKEY, IRAN) CHINA: NEW CAAC POLICY ON AIRLINE LICENSE 11
New CAAC Policy On Airline License New airlines intend to reach a sizeable regional aircraft fleet before introducing NBs and entering into trunk market. Start-up airlines in preparation 12
Services & Support 13
Services Revenue Business Growth +100% +130% 2006 2016 2026 14
Customer Satisfaction Survey Worldwide Fleet All Programs Net Favorability E190/195 SR 99.5% 73% 79% 53% 57% 59% 40% 2009 2011 2013 2014 2015 2016 Benchmark in Customer Relationship Management, Flight Operations and Technical Support. 15
E2 Program Update 16
E190-E2 Timeline Ongoing Flight Test Campaign ACCOMPLISHED PLANNED Program Launch Roll out 1 st Flight 2 nd Prototype 1 st Flight 4 th Prototype JUN 2013 OCT 2014 FEB 2016 MAY 2016 JUL 2016 AUG 2016 2017 2018 First Metal Cut 1 st Flight 1 st Prototype 1 st Flight 3 rd Prototype E190-E2 Entry Into Service 17
20% OF TEST CAMPAIGN ACCOMPLISHED 280 FLIGHT-TEST HOURS 370 GROUND-TEST HOURS E190-E2
2,400 nm 5h50 Farnborough Landing Time: 18:53 1,110 nm 2h40 1,650 nm 4h10 Sal Island Landing Time: 11:05 Take Off Time: 13:02 Recife Landing Time: 04:44 Take Off Time: 06:53 PERFECT FLIGHT OF 12h40 São José dos Campos Take Off Time: 02:03 19
E195-E2 Timeline Assembly Ongoing ACCOMPLISHED PLANNED Joint Definition Phase Concluded New Wingtip E195-E2 First Flight MAY 2015 JAN 2016 FEB 2016 SEP 2016 2017 2019 First Metal Cut Fatigue Test Article 1 ST FLIGHT E195-E2 Entry Into Service 20
E175-E2 Timeline ACCOMPLISHED PLANNED Wind Tunnel Testing First Metal Cut E175-E2 First Flight MAY 2015 NOV 2016 JUN 2016 2019 2020 Joint Definition Phase Concluded 1 ST FLIGHT E175-E2 Entry Into Service 21
E2 Competitive Positioning 22
Smarter Design The Lightest Aircraft E-Jets lessons learned Smart use of materials Performance Optimization Same weight as CS100 with 10% more capacity 23
E-Jets E2 vs. CSeries Cash Operating Cost E190-E2 E190-E2 vs CS100 same COC/seat -10% COC/trip CS100 E195-E2 vs CS100-10% COC/seat same COC/trip North American environment 600nm Dual class configuration Fuel: 88 USD/barrel E195-E2 E195-E2 vs CS300 same COC/seat -10% COC/trip CS300 24
Smarter for Business Higher Residual Value CS100/300 vs 175/190/195 E2 (Base Value / Base Value on Production Date) 100% 80% CS100/300 175/190/195 E2 60% 40% 1,000 bps 20% 0% 0 5 10 15 20 Aircraft Age Source: Values based on available appraisers publications Ascend (2016), Oriel (2016) and ICF (2015) BlueBooks. No Inflation applied. 25
The Most Efficient Aircraft Case Study E195-E2 vs CS100 Same trip cost 10% Higher capacity 1,000 bps Higher residual value $10mi NPV per airplane 26 * NPV (15 years; 7%)
Smarter Experience Comfort with More Personal Space E-JETS COMFORT 2x2 - NO MIDDLE SEAT HIGHEST CAPACITY TO STOW ROLL-ON BAGS ONBOARD EASY RECONFIGURATION AND MODULARITY 27
28 E2 Commitments AERCAP 50+50 x E190-E2 / E195-E2 AIRCASTLE 25 +25 x E190-E2 / E195-E2 AIR COSTA 50+50 x E190-E2 / E195-E2 ARKIA 6+4 x E195-E2 AZUL 30+20 x E195-E2 BORAJET * 5 x E190-E2 / E195-E2 HAINAN/TIANJIN AIRLINES 2+18 x E190-E2 ICBC LEASING 10+10 x E190-E2 KALSTAR 5+5 x E190-E2 SKYWEST, INC. 100+100 x E175-E2 TRANS STATES HOLDINGS 50+50 x E175-E2 E-JETS E2 670 COMMITMENTS (272 FIRM) * Does not increase orderbook
Net Orders Order Evolution Accumulated Net Orders per Year E-Jets E-Jets E2 CSeries 613 440 150 70 Program Launch 210 120 50 90 267 272 130 145 112 118 245 182 343 243 243 PL+1 PL+2 PL+3 PL+4 PL+5 PL+6 PL+7 370 Source: Embraer, OEMs (Sep/16) 29
Thank You!