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

GMS 149-A05

DefenseMarket

Scenario

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

GMS 149-A05

ProductLine

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 3

Defense Products and Market Segments

Combat

Transport

Training

Intelligence, Surveillance andReconaissance

Systems& Services

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

GMS 149-A05

Super Tucano

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 5

Super Tucano

� High-performance evolution of the proven EMB 312 Tucano

� State-of-the-art systems and advanced avionics

� Optimized for basic, advancedtraining and operational applications in hostile environments

� Can operate from unprepared runways, during day or night

� The only aircraft in its class capable of employing diversified conventional and smart weapons.

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 6

Super Tucano

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 7

Super Tucano

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 8

Operation COLBRA I

Super Tucano

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

GMS 149-A05

TransportDerivatives

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 10

Transport Derivatives

GreeceBelgium

India Colombia

Brazil

Brazil Ecuador

Nigeria

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 11

Indian Air Force

Transport Derivatives

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 12

TAME

Transport Derivatives

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 13

Brazilian Air Force National Air Mail

Transport Derivatives

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

GMS 149-A05

ISRSystems

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 15

ISR Systems

EMBRAER offers cost effective solutions for the Intelligence, Surveillance and

Reconnaissance Market

EMB 145 AGS EMB 145 AGS AirborneAirborneGroundGround

SurveillanceSurveillance

EMB 145 MP EMB 145 MP MaritimeMaritime PatrolPatrol

EMB 145 AEW&CEMB 145 AEW&C

ISRIntelligence – Surveillance – Reconnaissance

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 16

ISR Systems “Roadmap”

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 17

EMB 145 AEW&C

� The EMB 145 AEW&C (Airborne Early Warning & Control) is the mostadvanced Airborne Early Warning & Control System in operation today.

� It is fitted with an advanced electronic scanning radar capable of detecting airtargets at long distances while controling the airspace

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 18

EMB 145 RS/AGS

� An advanced asset capable of providing real-time imagery and electronicintelligence over ground objectives

� It features an advanced Synthetic Aperture Radar (SAR), for day or night, and all-weather radar imagery of the ground over large areas, plus othersophisticated sensors

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 19

P-99

� New generation Maritime Patrol and Anti-Submarine Warfare aircraft

� Features maritime and ground surveillance radar, Electro-Optics, Acousticsand Electronic Surveillance sensors

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 20

Brazilian Air Force

Amazon Surveillance System

� R-99A - EMB 145 AEW&C - Airborne Early Warning & Control

� R-99B - EMB 145 RS - Remote Sensing and Ground Surveillance.

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 21

Hellenic Air Force

EMB 145 AEW&C

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 22

Mexican Air Force

EMB 145 AEW&C

EMB 145 MP

C4I Center

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 23

Mexican Air Force

June 2nd, 2005 – 11 p.m.

One small twin engine aircraft crashed intothe jungle in southern Mexico (QuintanaRoo) while trying a landing in the mid of thenight after being detected and identified byMexican Surveillance Aircraft.

More than 3,000 lb of cocaine has beenfound inside the wrekage.

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 24

In August, 2004, Embraer was selected to supply the new Inteligence and Reconnaissance Aircraft to the U.S. Army and U.S.Navy (Program underreview)

ACS – Aerial Common Sensor

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

GMS 149-A05

Market Vision

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 26

Worldwide Defense Procurement

Procurement by Region - 2005-2012

Total 2005 -2012 : US$ 1,5 trillion

0.0

50.0

100.0

150.0

200.0

250.0

2005 2006 2007 2008 2009 2010 2011 2012

US$

billi

on

Australasia

Asia Pacific

Latin America

Africa

Middle East

East Europe

West Europe

North America

Source: Frost & Sullivan 2004

Averagegrowth of 2.6% between2005-2012

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 27

US Military expenditures

Source: Congressional Research Service* Iraq and Afghanistan operations not included 2006 US Dollars

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011Personnel 107.2 108.9 108.6 108.6 108.9 109.1 109.1

Operations & Maintenance 139.9 147.8 150.5 153.4 155.5 155.7 156.2Acquisitions 79.7 78.0 89.7 97.3 98.9 102.4 106.9

Research & Development 70.2 69.4 65.4 63.8 68.0 63.3 53.8Others 12.4 15.2 18.2 17.5 16.5 15.3 17.5Total 409.5 419.3 432.5 440.6 447.8 445.7 443.5

US Department of Defense Budget * (US$ Billion)

US Department of Defense Budget Acquisitions and P&D(US$ billion)

130

140

150

160

170

FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 28

US ISR Market

US ISR Market Growth Trend (US$ billion)

Source : Frost & Sullivan, 2003

US$ billion

2000 2002 2004 2006 2008 2010 2012 2014

60

50

40

30

20

10

Between 2005 and 2010 ISR systems will increase participation from 22% to 27% of total acquision and R&D spending of the U.S. DoD budget

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 29

Total 2004-2008E : US$ 247 billion

5553504841

0102030405060

2004 2005 2006 2007 2008

US$ billion

Source : DHS

Department of Homeland Security

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 30

Defense Market Evolving Scenario

� Restricted Budgetary scenario

� Different military threats prompt to warfaretransformation

� Changing force structure

� Knowledge based, full- spectrum operations

� Reduction of human exposure to threat situations

InformationSuperiority

Armed Forces Transformation

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 31

Defense Market Trends

�Information Superiority� Shorter reaction times and shorter sensor to shooter cycles.� Network centric approach instead of platform centric.� Expansion of ISTAR (Intelligence, Surveillance, Target Acquisition

and Reconnaissance Systems� Expansion of advanced communication and network based systems

�Armed Forces Transformation� Higher mobility and flexibility� Multi-forces integration� Faster command cycles

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

GMS 149-A05

MarketPositioning

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 33

Defense Market Trends

� Significant growth in new requirements for airborne ISR Systems

� Most requirements consider major improvements in operational performance, mission reliability and economics compared with legacy system

� Jets x Turboprops

� Regional Jets x Business Jets

EMBRAER is very well positioned in this market segment with the ERJ 145 ISR derivatives

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 34

Italy

Brazil

India

Saudi

Arabia

Turkey

Greece

UAE

Oman

Mexico

Singapore

USA

Colombia

EquatorThailand

Malaysia

Venezuela

Business Development

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 35

Operation Guardian (Guardião)

November 16th – December 9th

First EMB 145 AEW&C overseasdeployment

Participation in the Dubai AirShow and LIMA (Malaysia)

Autonomous operation (no support aircraft)

Dubai

Malaysia

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 36

Defense Market Strategy

� Embraer´s Defense Product Line is well positioned to compete in theevolving market scenario.

� Defense Segment is expected to represent up to 15% of Embraer’s total revenue in the next 5 years.

� Growth coming mostly from ISR - Intelligence Surveillance and Reconnaissance Systems� Today almost 50% of defense revenues are derived from ISR contracts� Embraer expects this number to reach 80% in the next 5 years

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

GMS 149-A05 EMBRAER PROPRIETARY INFORMATION 37