51
Airline Market Outlook Embraer’s Positioning in the 30 to 120 Seat Segment 6 th Annual Analyst & Investor Meeting November 18 th , 2005 São Jose dos Campos SP, Brazil Frederico Fleury Curado Executive Vice-President, Airline Market

2005* Embraer Day Airline Market Presentation (DisponíVel Apenas Em InglêS)

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Page 1: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Airline Market Outlook

Embraer’s Positioning in the 30 to 120 Seat Segment

6th Annual Analyst & Investor MeetingNovember 18th, 2005

São Jose dos Campos SP, Brazil

Frederico Fleury CuradoExecutive Vice-President, Airline Market

Page 2: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

� Key Global Market Trends

� Competitive Environment

� Regional Jets Sustained Operation

� Embraer Market Forecast

Contents

Page 3: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

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.

Forward Looking Statement

Page 4: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Source: US Bureau of Economics Analysis and DOT Form 41

• Disconnection fromForecast Ground Rules

• Historically > 0.90% of GDP, Passenger Revenueis below 0.70%.

• RPM is becoming a more complex function of GDP and Yield.

Key Global Market Trends

• Traffic Recovery

0

50

100

150

200

250

300

2000 2001 2002 2003 2004 2005F

Network Low Cost Regional

Intra-Europe (RPK Billion)

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005F

Network Low Cost Regional

U.S. Domestic (RPM Billion)

Source: Airlines, Embraer

Page 5: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Key Global Market Trends

• LCC Expansion• Around 70% of all domestic passengers

in North America and Europe have

access to low cost carriers services.

• LCCs hold air fare pricing power.

• Passengers are more stringent on air

travel value proposition.

• Shift in Market Share

• US: LCCs and Regionals expanding.

• Intra-Europe: LCCs expanding and

Regionals concentrating on secondary/

/business markets development.

85%76%

64%51%

87%

72%65%

50%

11%

35%

3% 5% 9% 12% 8%17% 16% 15%

5%

37%

27%

19%12%

19%

0%

20%

40%

60%

80%

100%

1995 2000 2005E 2010E 1995 2000 2005E 2010E

Network Low Cost Regional

Source: Airlines, Embraer

US Domestic (% RPK) Intra-Europe

Page 6: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Key Global Market Trends

• Domestic U.S. Pax YieldsDown Sharply from 2000

• No evidences or expectation of a sizable

recuperation.

• Passenger unit revenue trends weak

domestically but strong internationally

• Several factors (cold weather, wars, higher

import rates, increased China demand and

refinery capacity) led to higher prices.

• Projected oil prices: an upward shift from

historical levels to around US$50-60 long

term. Jet fuel prices expected to be around

US¢150-170.

• Crude Oil and Jet Fuel Prices

10

20

30

40

50

60

70

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Cru

de

Oil

(U

S$/

Bar

rel)

020406080100120140160180200

Jet

Fu

el (

US

¢/G

allo

n)Source: EIA

Page 7: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

60%of flights

4 8 13 13 8 7 5 2 220150

5

10

15

20

25

50 60 70 80 90 100 110 120 130 140 >150

%

Passengers per DepartureSource: US DOT/Embraer

• Fleet Right-Sizing

• 60% of all US domestic flights depart with load factor more appropriate to 70-110 seat aircraft.

• 95% of all North American narrow-body flights are within 1,700nm range.

• 85% of city pairs exclusively served by narrow body jets have less than two daily frequencies.

Key Global Market Trends

810 Aircraft olderthan 20 Years35% of total fleet in service451

320

492

233

361

212237

0-5 6-10 11-15 16-20 21-25 26-30 30Aircraft Age (Years)

• Replacement Crisis – Ageing Fleets (61 to 120 seats)

Source: BACK/Fleet PC (Jan/05)

• 35% of total fleet is more than 20 years in service and

shall start to be replaced in the coming years.

• Old technology equipments, most of them no longer in

production.

• Inefficient and expensive aircraft to operate.

Page 8: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

� New Passenger Profile � Different Set of Values

� Ultra Competitive Environment

� Strong Focus on Cost Reduction, Reduced Investments

� Cash is King

� Maximum Utilization of Assets (fleet optimization and flexibility)

� Clash of 3 models (LCC x Network x Regional)

� It´s about cost and efficiency

� It´s about value proposition

� Fast Scope Clauses Relaxation /

/ Closing the 70-110 Seat Gap

(Bottom-Up and Top-Down)

Not Another Cycle, but a Fundamental Change

70 to70 to

110 Seats110 Seats

B76

7

B77

7

A31

9

A32

0

B73

7

B75

7

B74

7

B73

7

B76

7

ER

J135

CR

J200

ER

J145

CR

J700

CR

J700

E-1

70

Seat Capacity

25 50 75 100 125 150 175+

B75

7

B73

7

MD

82

B77

7

B73

7

B75

7

B76

7

B73

7

B73

7

MD

11

ER

J135

ER

J145

A33

0

A31

9

A32

0

DC

-10

B75

7

B75

7

DC

-9

DC

-9

B74

7

A33

0

CR

J440

AV

RO

A31

9

A32

0

A32

1

B73

7

B75

7

A33

0

B76

7

B73

7

CR

J700

E-1

70

CR

J200

ER

J145

B76

7

MD

88

B77

7

MD

90

B75

7

B73

7

B73

7

B73

7

B76

7

A34

0

ER

J135

CR

J700

CR

J200

ER

J145

A30

0

B75

7

B76

7

MD

83M

D80

B77

7

B73

7

ER

J135

ER

J140

ER

J145

CR

J700

70 to70 to

110 Seats110 Seats

70 to70 to

110 Seats110 Seats

B76

7

B77

7

A31

9

A32

0

B73

7

B75

7

B74

7

B73

7

B76

7

ER

J135

CR

J200

ER

J145

CR

J700

CR

J700

E-1

70

B76

7B

767

B77

7B

777

A31

9A

319

A32

0A

320

B73

7B

737

B75

7B

757

B74

7B

747

B73

7B

737

B76

7B

767

ER

J135

ER

J135

CR

J200

ER

J145

CR

J200

ER

J145

CR

J700

CR

J700

CR

J700

E-1

70C

RJ7

00E

-170

Seat Capacity

25 50 75 100 125 150 175+

B75

7

B73

7

MD

82

B77

7

B73

7

B75

7

B76

7

B73

7

B73

7

MD

11

ER

J135

ER

J145

B75

7B

757

B73

7B

737

MD

82M

D82

B77

7B

777

B73

7B

737

B75

7B

757

B76

7B

767

B73

7B

737

B73

7B

737

MD

11M

D11

ER

J135

ER

J135

ER

J145

ER

J145

A33

0

A31

9

A32

0

DC

-10

B75

7

B75

7

DC

-9

DC

-9

B74

7

A33

0

CR

J440

AV

RO

A33

0A

330

A31

9A

319

A32

0A

320

DC

-10

DC

-10

B75

7B

757

B75

7B

757

DC

-9D

C-9

DC

-9D

C-9

B74

7B

747

A33

0A

330

CR

J440

CR

J440

AV

RO

AV

RO

A31

9

A32

0

A32

1

B73

7

B75

7

A33

0

B76

7

B73

7

CR

J700

E-1

70

CR

J200

ER

J145

A31

9A

319

A32

0A

320

A32

1A

321

B73

7B

737

B75

7B

757

A33

0A

330

B76

7B

767

B73

7B

737

CR

J700

E-1

70C

RJ7

00E

-170

CR

J200

ER

J145

CR

J200

ER

J145

B76

7

MD

88

B77

7

MD

90

B75

7

B73

7

B73

7

B73

7

B76

7

A34

0

ER

J135

CR

J700

CR

J200

ER

J145

B76

7B

767

MD

88M

D88

B77

7B

777

MD

90M

D90

B75

7B

757

B73

7B

737

B73

7B

737

B73

7B

737

B76

7B

767

A34

0A

340

ER

J135

ER

J135

CR

J700

CR

J700

CR

J200

ER

J145

CR

J200

ER

J145

A30

0

B75

7

B76

7

MD

83M

D80

B77

7

B73

7

ER

J135

ER

J140

ER

J145

CR

J700

A30

0A

300

B75

7B

757

B76

7B

767

MD

83M

D83

MD

80M

D80

B77

7B

777

B73

7B

737

ER

J135

ER

J135

ER

J140

ER

J140

ER

J145

ER

J145

CR

J700

CR

J700

Page 9: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Competitive

Environment

Page 10: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

ERJ 135ERJ 135

ERJ 140ERJ 140

ERJ 145 and 145XRERJ 145 and 145XR

CRJ200 / 440CRJ200 / 440

328JET328JET

30-60 Seat Jet Competitors

Page 11: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

45

32

17

7

52

48 47 45 45.64548

5252

48

5556

55 54.4

68

83

93

53

0

10

20

30

40

50

60

70

80

90

100

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 'Sep/2005

Acc

um

ula

ted

Mar

ket

Sh

are

(%)

Market Share (30-60 seat segment)

Source: Embraer

Page 12: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

ARJ21ARJ21

CRJ900CRJ900

EMBRAER 175EMBRAER 175

EMBRAER 170EMBRAER 170

CRJ700CRJ700

RRJRRJ

61-90 Seat Segment Competitors

Page 13: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Market Share (61-90 seat segment)

2723

36.23633

2830

67

100

57.9

64

100

77

70

73

72

2.50 3.40

20

40

60

80

100

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 'Sep/2005

Acc

umul

ated

Mar

ket S

hare

(%)

Source: Embraer

Page 14: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

B717B717

EMBRAER 190EMBRAER 190

EMBRAER 195EMBRAER 195

B737-600B737-600

A318A318

ARJ21ARJ21

RRJRRJ

91-120 Seat Segment Competitors

Page 15: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

45

16

131111

58.556

21.324

26

100 100 100

44

3338

42

29

4249

5645

20.220

0

10

20

30

40

50

60

70

80

90

100

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 'Sep/2005

Acc

um

ula

ted

Mar

ket

Sh

are

(%)

Market Share (91-120 seat segment)

Source: Embraer

Page 16: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

30Y30Y 50Y50Y 70Y70Y 90Y90Y 110Y110Y 130Y130Y

Scope

PotentialNew Entrants

Embraer Commercial Jets Unique Position

Page 17: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Regional Jets

Sustained

Operation

(30-60 seat segment)

Page 18: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

ERJ 145 Family

50 Seats(2,000 nm range)

50 Seats

44 Seats

37 Seats

Page 19: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

TP Complement

6%

RJ Replacement

5%

RJ Complement

3%

Jet Complement

18%

TP Replacement

18%

Jet Replacement

22%

New Routes

28%

0%

25%

50%

75%

100%

1371 routes

Average Stage Length = 460 miles

Source: BACK/OAG (Jan/05)

ERJ 145 Family Network - USA

Page 20: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

ERJ 145 Family Network

Source: BACK/OAG (Jan/05)

< 1 hour1 – 2 hours

2 – 3 hours

> 3 hours

179 (15%)41 (14%)< 1 hour

Number of Routes

380 (30%)87 (31%)2 - 3 hours

48 (4%)0> 3 hours

639 (51%)157 (55%)1 - 2 hours

Jan/2005Jan/2000

Page 21: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

US Regional System Network

Source: BACK/OAG (Jan/05 ; combined city effect not considered)

21%

44%

35%

27%

15% 15%

0%

10%

20%

30%

40%

50%

AA CO DL NW UA US

% % routesroutes in in eacheach major US major US RJsRJs operatoroperator networknetwork withoutwithout directdirect competitioncompetition

• High percentage of RJ service is on monopoly routes

• 75% of all RJs monopoly routes are operated with less than 2 daily frequencies

Page 22: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

0

500

1,000

1,500

2,000

2,500

25 - 75 75 - 150 150 - 315 315 - 500 >500

Passenger Per Day Each Way (PPDEW)

Nu

mb

er o

f M

arke

tsConnecting Flight (Greater than90% of total PPDEWs inConnecting Flight)

Direct & Connecting Flight

Direct Flight (Less than 10% oftotal PPDEWs in ConnectingFlight)

50-seat RJMarket

Opportunities:1949

connectingmarkets

US Domestic Market (Year 2004)

Source: US DOT OD1A (Back Aviation)

Page 23: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

ERJ 145 Family Network - Europe

Source: BACK/OAG(Jan/05)

TP TP ComplementComplement

13%

JetJet ReplacementReplacement

18%

JetJet ComplementComplement

17%

TP TP ReplacementReplacement

21%

NewNew RoutesRoutes

31%

0%

25%

50%

75%

100%

424 routesAverage Stage Length = 430 miles

Page 24: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

- Typical European airline OEW

- Full PAXPassengers at 90.7 kg (200 lb)

- Cruise at LRC

- Airport Temp. at 20.5ºC / ISA+5.5ºC (85% Summer)

- 85% Summer Winds

- JAR OPS Reserves100 nm alternate

ERJ 135

• ERJ 135: Steep Approach Capable (London City Airport)• Still Air Range: 600 nm

New Routes Development - London City

Page 25: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

New Routes Development - China

China Eastern5 ERJ 145

Chengdu

Sichuan Airlines5 ERJ 145 Guangzhou

China Southern6 ERJ 145

Source: BACK/OAG(1Q05)

Page 26: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

ERJ 145 - AeroLitoral - Mexico

0%

25%

50%

75%

100%

Source: BACK/OAG(Jan/05)

CENCENCENCENCENCENCENCENCEN

HMOHMOHMOHMOHMOHMOHMOHMOHMO

LMMLMMLMMLMMLMMLMMLMMLMMLMM

CULCULCULCULCULCULCULCULCUL

CJSCJSCJSCJSCJSCJSCJSCJSCJS

CUUCUUCUUCUUCUUCUUCUUCUUCUU

TIJTIJTIJTIJTIJTIJTIJTIJTIJ

MEXMEXMEXMEXMEXMEXMEXMEXMEXGDLGDLGDLGDLGDLGDLGDLGDLGDL

BJXBJXBJXBJXBJXBJXBJXBJXBJX

MTYMTYMTYMTYMTYMTYMTYMTYMTY

17%

25%

41%

New New RoutesRoutes

TP TP ReplacementReplacement

TP TP ComplementComplement

JetJet ReplacementReplacement

17%

• The ERJ 145, on average, attracts 10 more paxper flight on every route it replaces the Saab.

• Since the incorporation of the ERJ 145s, AeroMexico’s market share, on disputed routes, has increased by 9 p.p.

Page 27: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

ERJ 145 Family Worldwide Fleet SR and CR

SR=98.8% (15 min. delay)

CR=99.7% (completion)

Schedule Reliability & Completion Rate12 Months Moving Average

REF.Aug/2005

Page 28: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

ERJ 145 Family Orderbook

51

16

20

15

FirmBacklog

8431,122228894Total

661883206677ERJ 145

741142094ERJ 140

1081252123ERJ 135

DeliveriesTotalOptionsFirm Orders(as of September 30th., 2005)

Page 29: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

The 30-60 Seat Jet Segment Summary

• Market has reached maturity (established customer base)

• The lowest trip cost: increased frequencies (market presence) and

reduced risks to new markets development (long and thin routes with

monopoly services – better pricing power)

• Secondary market starting to develop

• Less than 10 ERJs temporarily parked

• Will remain the backbone of US Regional fleet (small density

markets)

Page 30: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

The E-Jets Family

ErgonomicsEconomics Engineering Efficiency

Program Status

Page 31: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

EMBRAER 170 Certified by CTA/FAA/EASA

CTA

EASAFAA

Page 32: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

EMBRAER 170/175 Canadian Certification

•Canadian Certification Granted on July 15th, 2005.

Additional Cold Soak tests performed for the Canadian authorities

Florida, July 2005, -35 °CMcKinley Climatic Lab, Eglin Air Force Base

PR 22/Jul/05

Page 33: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

EMBRAER 190 – Certified by CTA and FAA

CTA TC on August 30th, 2005.

PR 01/Sep/05

FAA TC on September 2nd, 2005.

Page 34: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

EMBRAER 195 – Development & Certification Schedule

Q1 Q2 Q3 Q42000 2001 2002 2003 2004 2005

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Initial Definitions Phase

Joint Definition Phase

First Flight

Certification Tests

Type Certification

Q1 Q2 Q3 Q4

1st Delivery

2006

Detail Design and Manufacturing

PR 10/May/05

� 1ST Flight – Dec’07th 2004

Page 35: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

E-Jets Operators

USA●US Airways●Republic

DeltaUnited

●JetBlue

CANADA●Air Canada

PANAMA●Copa

ECUADOR●Tame

FINLAND●Finnair

UK●Flybe

GERMANY●Cirrus

POLAND●LOT

ITALY●Alitalia

SWITZERLAND●Swiss

Saudi Arabia●Saudi Arabian Airlines

India●Paramount

China●Hong KongExpress

● Current Operators ● Near Future operators (as of Oct 24th, 2005)

France●Régional

Page 36: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Embraer 170 Network at

RightsizingRightsizing

41%

Natural Natural GrowthGrowth

51%

NewNew RouteRoute

8%

0%

25%

50%

75%

100%

% of Routes (3Q05)

Source: BACK/OAG (3Q05 routes)Average Stage Length = 635 sm (552 nm)

Page 37: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Embraer 170 Network at

RightsizingRightsizing

43%

Natural Natural GrowthGrowth

54%

NewNew RouteRoute

3%

0%

25%

50%

75%

100%

% of Routes (3Q05)

Source: BACK/OAG (3Q05 routes)Average Stage Length = 640 sm (556 nm)

Page 38: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Embraer 170 Network at

RightsizingRightsizing

29%

Natural Natural GrowthGrowth

59%

NewNew RouteRoute

12%

0%

25%

50%

75%

100%

% of Routes (3Q05)

Source: BACK/OAG (3Q05 routes)Average Stage Length = 429 sm (373 nm)

Page 39: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

RightsizingRightsizing

50%

Natural Natural GrowthGrowth

50%

0%

25%

50%

75%

100%

Embraer 175 Network

NewNew RouteRoute

% of Routes (4Q05)

Source: BACK/OAG (4Q05 routes)Average Stage Length = 410 sm (357 nm)

Page 40: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Embraer 170 Network

RightsizingRightsizing

37%

Natural Natural GrowthGrowth

61%

NewNew RouteRoute

2%

0%

25%

50%

75%

100%

Source: BACK/OAG (3Q05 routes)

% of Routes (3Q05)

Average Stage Length = 609 sm (529 nm)

Page 41: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

EMBRAER 190 Initial Network

78%

22%

0%

25%

50%

75%

100%

Source: BACK OAG (Oct 05)

From

To

Equipment 73G E90 73G E90 73G E90 73G E90 73G E90 73G E90

Jun/05 60 0 30 0 30 0 22 0 22 0 45 0

Jan/06 62 0 30 0 0 31 0 31 0 31 13 31

Jun/06 30 30 30 30 0 31 0 31 0 31 6 46

Panama City

Cartagena

Guatemala City

Managua Managua

Panama City

San Andres

Panama City

Guayaquil

Panama City Panama City

Barranquilla

From

To

Equipment 73G E90 73G E90

Jun/05 0 0 0 0

Jan/06 0 30 0 0

Jun/06 0 30 0 31

San Salvador San Jose

Panama City San Pedro Sulas

New RouteNew Route

RightsizingRightsizing

Page 42: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

200 400

COPY

Page 43: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

EMBRAER 190 Initial Network

Source: jetBlue website, BACK OAG (Oct/05) and ATI News

RightsizingRightsizing

New RoutesNew Routes

Page 44: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

New Success Stories To Be Written Shortly

Firm order of 2 E170 and 1 E190

plus 4 options

Firm order of 12 E170 plus 8 options Firm order of 4 E170

Firm order of 15 E170

Page 45: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

New Success Stories To Be Written Shortly

Firm order of 2 E170 and 3 E175Firm order of 14 EMBRAER 195

Firm order of 6 firm E190

Page 46: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

EMBRAER 170/175 EIS Statistics

Operators 8

Aircraft in Service 87

Flight hours 167,700

Flight Cycles 115,200

• Operating Summary

(as of Oct 14th, 2005)

IS 19/Oct/05

Page 47: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

EMBRAER 170/190 Family Order Book

29-603129EMBRAER 195

335

183

13

110

FirmBacklog

92810383427Total

2404219185EMBRAER 190

922-22EMBRAER 175

81324133191EMBRAER 170

DeliveriesTotalOptionsFirm Orders

(as of September 30th., 2005)

Page 48: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Embraer

Market

Forecast

Page 49: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

Worldwide Jet Deliveries by Capacity Segment

4,6004,600

1,9001,900

1,6501,650

1,0501,050

2016 2016 –– 20252025

7,9507,950

3,4503,450

2,9502,950

1,5501,550

2006 2006 -- 20252025

3,3503,350TOTALTOTAL

1,5501,55091 91 –– 120120

1,3001,30061 61 –– 9090

50050030 30 -- 6060

2006 2006 -- 20152015SegmentSegment

Embraer Market Forecast (2006-2025)

30 to 120-seat segment value = US$ 180 billion

Page 50: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)

AsiaPacific

410

5%

China590

7%Africa &

Middle East280

4%

USA, Canada& Caribbean

4,230

53%

30 - 120 Seats: 7,950 Jets

Europe1,450

18%

LatinAmerica

465

6%

Russia& CIS525

7%

Embraer Market Forecast (2006-2025)

Page 51: 2005* Embraer Day   Airline Market Presentation (DisponíVel Apenas Em InglêS)