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Institutional
Presentation

November 2003
Forward Looking Statement



 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.
Company
Highlights
Highlights


             One of the world’s major commercial
             aircraft manufacturers
             Significant market share
             Global customer base
             Renamed international partners
             Excellent financial performance
             Brazil’s largest exporter in 1999, 2000
             and 2001
Global Presence

               Parent Company                            São José dos Campos


                                                                               Venezuela
                                                                                Venezuela

                                                     Colombia
                                                     Colombia




                                                      Peru
                                                      Peru
                                                                                        BRAZIL
                                                                                   Bolivia
                                                                                   Bolivia




                                                        Pac ific Oc ea n
                                                       Pac ific Oc ea n
                                                                                             Pa rag uay
                                                                                              Pa rag uay




                                                                                                                              Atlantic Oc ean
                                                                                                                             Atlantic Oc ean
                                                                           Chile
                                                                           Chile
                                                                                                             Sã o P a ul o
                                                                                                             Sã o P a ul o


                                                                                   Argentina
                                                                                   Argentina

  Located in São José dos Campos, Brazil
                                                                                                 Urugua yy
                                                                                                  Urugua




  Designs and manufactures aircraft for the commercial,
  defense and corporate markets and provides after-sales
  support
  Floor space: 3.05 million sq.ft
  Number of employees in São José dos Campos: 10,464
Global Presence
        Embraer Eugênio de Melo                             São José dos Campos


                                                                                  Venezuela
                                                                                   Venezuela

                                                        Colombia
                                                        Colombia




                                                         Peru
                                                         Peru
                                                                                           BRAZIL
                                                                                      Bolivia
                                                                                      Bolivia




                                                           Pac ific Oc ea n
                                                          Pac ific Oc ea n
                                                                                                Pa rag uay
                                                                                                 Pa rag uay




                                                                                                                                 Atlantic Oc ean
                                                                                                                                Atlantic Oc ean
                                                                              Chile
                                                                              Chile
                                                                                                                Sã o P a ul o
                                                                                                                Sã o P a ul o


                                                                                      Argentina
                                                                                      Argentina
                                                                                                    Urugua yy
                                                                                                     Urugua




  Located in Eugênio de Melo, a district of São José dos Campos
  This unit has a total area of 3.6 million sq. ft., of which 527.050 sq.ft.
  are industrial buildings used in the development and manufacturing of
  tooling equipment, piping, as well as for performing welding, milling and
  wire looming operations
Global Presence
        Embraer Gavião Peixoto                                                        Gavião Peixoto


                                                                                  Venezuela
                                                                                   Venezuela

                                                        Colombia
                                                        Colombia




                                                         Peru
                                                         Peru
                                                                                           BRAZIL
                                                                                      Bolivia
                                                                                      Bolivia




                                                           Pac ific Oc ea n
                                                          Pac ific Oc ea n
                                                                                                Pa rag uay
                                                                                                 Pa rag uay




                                                                                                                                 Atlantic Oc ean
                                                                                                                                Atlantic Oc ean
                                                                              Chile
                                                                              Chile
                                                                                                                Sã o P a ul o
                                                                                                                Sã o P a ul o


                                                                                      Argentina
                                                                                      Argentina

    Located in Gavião Peixoto, Brazil                                                               Urugua yy
                                                                                                     Urugua




    Manufacturing facility that will host the final assembly activities
    of the company´s corporate and defense aircraft, as well as a
    runway for flight tests
    Site area: 4.12 million sq.ft.
    Number of employees: 329
    Start-up of operations in October 2001
Global Presence
          Operations in Brazil, USA, Europe, Asia and Austrália



           EUA                           GB
                                     Weybridge
           Nashville                                                    China
             Atlanta
Palm Beach Gardens
                                    França                              Beijing
                                     Le Bourget                         Harbin
    Fort Lauderdale


                                                                 Cingapura
                       Brasil                                    Cingapura

                   Gavião Peixoto
                         Botucatu
                                                  Austrália
                                                     Melbourne
             São José dos Campos
Number of Employees

                                                                                    12,607
                                                                           12,227
                                                                 11,048
                                                       10,334
                                              8,302
                                     6,737
  6,087                   4,494
          4,319   3,849




   94      95      96      97          98       99        00        01      02      Sept 03

                                  April / 97: minimum of 3,200 people



            BRAZIL 11,779*                  AUSTRALIA 09                  CHINA 126

            USA 484                         EUROPE 199                    SINGAPORE 10
                                                                                     * ELEB employees included
Business
   Segment
Diversification
Revenue Diversification

          Current Sales                   Expected Sales Distribution
           Distribution                         In Five Years
             FY2002

                          Commercial
                            83%                    Commercial
                                                     70%




                                                      30%
Defense
  5%
               Customer
   Corporate   Services
    Aviation     6%
      6%




                                       Corporate    Customer     Defense
                                         Jets        Service
Defense
Market
Defense Products
                   Today
Embraer’s
Airline Customers
         &
    Orderbook
ERJ 145 Family Orderbook




                 Firm   Options           Deliveries        Firm
                                  Total
                                                           Backlog

       ERJ 135    121       6      127       104              17


       ERJ 140    94       20      114       74               20


       ERJ 145    665      465    1,130      509             156


        Total    880     491      1,371     687              193



                                                  (September 2003)
ERJ 145 Order Book (as of August 2003)
         COUNTRY       CUSTOMER                     FIRM    OPTIONS   TOTAL   DELIVERED     FIRM
                                                   ORDERS                                 BACKLOG
         Austria       RHEINTALFLUG                   3        0       3         3            0
         Brazil        RIO-SUL                        16       0       16        16           0
         China         SICHUAN                        5        0       5         5            0
         England       MANX                           23       3       26        23           0
                       BRITISH MIDLAND                11       5       16        9            2
                       BRYMON                         7        14      21        7            0
         France        REGIONAL                       17       0       17        14           3
                       FLANDRE AIR                    7        6       13        5            2
                       PROTEUS                        11       1       12        8            3
         Germany       CIRRUS                         1        0       1         1            0
         Greece        AXON                           3        0       3         3            0
         Guadaloupe    AIR CARAIBES                   2        0       2         2            0
         Italy         ALITALIA                       14       7       21        13           1
         Holland       KLM EXEL                       3        2       5         3            0
         Luxembourg    LUXAIR                         9        2       11        9            0
         Poland        LOT POLISH                     14       0       14        14           0
         Portugal      PORTUGALIA                     8        0       8         8            0
         Sweden        SKYWAYS                        4        10      14        4            0
         Switzerland   CROSSAIR (SWISS)               25       15      40        25           0
         U.S.A.        EXPRESS JET (COEX)            245      100     345       187          58
                       AMERICAN EAGLE                136       42     178        56          80
                       WEXFORD                        38       0       38        38           0
                       REPUBLIC (Chautauqua)          9        70      79        7            2
                       TRANSTATES                     15       17      32        12           3
                       MESA                           36       45      81        32           4
                       GATX                           1        0       1         1            0
                       GECAS (PB Air - Thailand)      2        0       2         2            0
                       US AIRWAYS                     0       132     132        0            0
         TOTAL                                       665      471     1136      507         158
EMBRAER 170/190 Family Orderbook




                         Firm   Options          Total


           EMBRAER 170   120      128             248


           EMBRAER 190   110      150             260


           EMBRAER 195    15      30               45


              Total      245     308              553

                                          (September 2003)
Backlog

In 3Q03 - US$ 27.7 billion in total orders,
including US$ 10.4 billion in firm orders
US$ billion

  30
                                                                     27.1   27.7

  25          Options                    24.1
                                                23.4
              Firm Orders
                                                       22.2

  20                                                          19.2
                                  17.7                               16.8   17.3
                                         12.7   12.7
  15                                                   13.2
                                                              11.3
                                  11.3
  10




   5                        4.1          11.4   10.7                 10.3   10.4
                3.0                                    9.0    7.9
        1.2                       6.4
              3.0       4.1
   0    1.2
       1996   1997     1998       1999   2000   2001   2002   1Q03   2Q03   3Q03
Airline Market
 Trends and
   Outlook



Orlando José Ferreira Neto
Director of Market Intelligence
Regional Airline Market
 Scheduled airline services (aircraft from 19 up to 120 seats):
                                                                                                Fleet in Service
 Capacity share % by region
                                                           Turboprop          730
                                                           Regional Jet       616
  Turboprop           1244
  Regional Jet        1293
                                    North
                                    North                           Europe
                                                                    Europe                              Turboprop        12
                                   America
                                   America
                                                                    26%                                 Regional Jet     55

                                     54%                                                        China
                                                                                                China
                                                                                                1%
                                             Latin
                                             Latin                    Africa &
                                                                      Africa &
                                            America
                                            America                  Middle East
                                                                     Middle East                      Asia/
                                                                                                      Asia/
                                          & Caribbean
                                          & Caribbean                                                Pacific
                                                                                                     Pacific
                                                 9%                        4%
     Turboprop
     Regional Jet
                          348
                          168
                                                                                                       6%
                                                                                                             Turboprop        532
                                                                  Turboprop         181
                                                                                                             Regional Jet     94
                                                                  Regional Jet      66



                                        Total Fleet   Turboprop     3047
                                                                    6262      Regional Jet   2292
                                                                                             2402

   Source: OAG (Jan/2003), Fleet PC (Dec/2002)
Market Evolution - USA

                     Share of US Domestic Passenger Enplanements
 100%
                            5%                                 9%       13%        16%
                            3%
                                                               7%
  80%                                                                   16%
                                                                                   19%

  60%

                            91%
  40%                                                          84%
                                                                        71%
                                                                                   65%

  20%


   0%
                           1980                                1990    2000        2002

                      Majors                           Low Cost/New Entrants   Regionals
  Source: AvStat Associates, Inc. analysis of U.S. DOT data.
Market Evolution - Europe

                                   Share of Intra-European RPKs

  100%
                   14%      17%      17%         17%          18%      17%      19%      19%
                    1%
    80%                      1%       1%          2%           4%      5%       8%        8%


    60%


    40%            86%      82%      82%         81%          79%      78%      73%      73%


    20%


      0%
                 1995       1996     1997        1998        1999      2000    2001      2002

                          Majors               Low Cost                      Regionals
                                    Low Cost: easyJet + Go + Ryanair
                                      2002 Low Cost Data Estimated
  Source: AEA, ERA, ATI
Airline Market - USA


                                                                                                                                                                                        71%
                                                                   Domestic ATA                                                                   Regional RAA
RPM Growth - Yr/Yr % Change




                                                                                                                                                                                                            41%
                                                                                                                                                                                               37%
                                                                                                                                                      34%
                                                                                                                                                            32% 34%                                               31%
                                                                                                                                                                           27%         29%           28%
                                                                                                                                                23%
                                                                                                                                          18%                                    20%
                              17%                                                                                               15%
                                                                               13%                       14%                                                                                  13%          14%
                                        9%    7%
                              5%                                    6%                            5%
                                                    2%    2%    1%0% 3%                                            2%                                                                                2%


                                       -3% -1% -1% -3% -2%                                  -2%                                                                                                                   -2%
                                                                                                                  -6%                                 -7% -7% -7%
                                                                                                                                    -10% -7% -11% -8%
                                                                                                        -13%                   -12%
                                                                                             -18%
                                                                                          -21%
                                                                                       -23%

                                                                                     -33%
                                                    Apr




                                                                                                                                                      Apr
                                                                                                                   Year 2001




                                                                                                                                                                                                                   Year 2002
                                                                               Aug




                                                                                                                                                                                 Aug
                                                                         Jul




                                                                                                                                                                           Jul
                                                                                            Oct




                                                                                                                                                                                               Oct
                                              Mar




                                                                                                                                                Mar
                                                                Jun/01
                              Jan/01




                                                          May




                                                                                                  Nov

                                                                                                         Dec/01




                                                                                                                                 jan/02




                                                                                                                                                            May

                                                                                                                                                                  jun/02




                                                                                                                                                                                                     Nov

                                                                                                                                                                                                            Dec
                                        Feb




                                                                                      Sep




                                                                                                                                          Feb




                                                                                                                                                                                        Sep
                              Source: Top Regionals, RAA, ATA
Airline Market - Europe

                                                                   Intra European+Domestic AEA                                                                                       Regional ERAA
                                                                                                                                                                                                               18%
                                                                                                                                                                                                                             15%
RPK Growth - Yr/Yr % Change




                               13%                                                                                                                                                                     13%            13%
                              12%
                                                                                                                                                    10% 10%                                                                          9%
                                                      9%           9% 8% 8%                                                                                                                                                  9%
                                                                                                                                          8%                      8%                                           8%
                                              7%                                                                  6% 6%                                                                                               6%
                                                                                                                                                                                                 6%
                                         4% 4% 5%
                                           5%
                                                             4%
                                                                   5%
                                                                             4% 4%                                                                                       4% 4% 4%
                                                                                                           4%
                                                                                           2%
                                                                                                                           0,3%

                                                            -1%
                                                                                          -3%                                                                                                          -2%
                                                                                                    -5%                                                                                                                             -5%
                                                                                                                                                                        -6%
                                                                                                                                                                                                -7%
                                                                                                                                                    -9% -9% -9%                -9% -10%
                                                                                                  -12%                                   -12%
                                                                                                          -13%-13%
                                                                                                    Oct




                                                                                                                                                                                                                Oct
                                                                    Jun/01




                                                                                                            Nov




                                                                                                                                                                                 Jun/02




                                                                                                                                                                                                                       Nov
                                                      Apr




                                                                                                                                                                  Apr
                                                                                    Aug




                                                                                                                                                                                                 Aug
                                                                              Jul




                                                                                                                                                                                          Jul
                                Jan/01




                                                             May




                                                                                                                  Dec/01

                                                                                                                             Year 2001

                                                                                                                                           Jan/02




                                                                                                                                                                         May




                                                                                                                                                                                                                              Dec

                                                                                                                                                                                                                                     Year 2002
                                                Mar




                                                                                                                                                            Mar
                                          Feb




                                                                                            Sep




                                                                                                                                                      Feb




                                                                                                                                                                                                         Sep
Source: ERAA, AEA
Industry in Transition after Sep 11th
  Rightsizing Capacity vs. Demand: Routes Transferred to RJs




            Jet Replacement
            Turboprop Replacement

  Source: Back OAG (American, Continental, Delta, United, and US Airways)
Industry in Transition after Sep 11th
  Rightsizing Capacity vs. Demand: Routes Transferred to RJs




              Jet Replacement
              Turboprop Replacement

  Source: Back OAG Air France, Alitalia and British Airways
US Domestic Yield Evolution

                   16
                   15
Yield (US¢/RPM)




                   14
                   13
                   12

                   11
                   10
                            Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

                                 1998    1999   2000   2001   2002   2003


                  Source:
An Industry in Transition

•   Fundamental Correction – Not a Traditional Cycle
     •   Decreasing Average Fare Values
     •   Decreasing Capacity (USA)
     •   Increasing Low Cost Carrier Critical Mass
     •   Increasing Regional Jet Critical Mass


•   Pressure on Existing Worldwide Airline Model
     •   Major USA Airlines re-inventing themselves

     • Regional affiliates strongly being used as defensive tools
       (point-to-point X hub and spoke)

     • Low cost carriers being inserted in the current airline model
Sustaining Regional Jet Growth

                      1. Turboprop Substitution
                          • Productivity improvements
                          • Passenger jet preference

                      2. Frequency, Frequency . . .

                      3. Optimization of Old and
                         Inefficient Narrowbody
                         Services
                          • Rightsizing aircraft   capacity
                            with demand
                          • Long & thin routes
                          • New market opportunities
                          • Profit potential
Regional Jet Networks - USA




                                                                 Jan 1995   –   76 Routes

                                                                 Jan 2003   – 1874 Routes




Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
Regional Jet Networks - Europe

   Jan 1995          – 104 Routes


   Jan 2003 – 1072 Routes




Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
High Frequency Services



  From    Manchester, UK                           Airlines: BD
  To      Edinburgh, UK
  Date    Jan/2003


  Days                Depart            Arrive             Eqp    Stop   Duration


  xSaSu                   7:00a   MAN   07:55a   EDI      ER3      0     00:55
  xSaSu                   8:55a   MAN   09:50a   EDI      ER4      0     00:55
  xSaSu               12:15a      MAN   01:15p   EDI      ER4      0     01:00
  xSaSu                   5:00p   MAN   06:00p   EDI      ER4      0     01:00
  xSaSu                   7:55p   MAN   08:50p   EDI      ER4      0     00:55
Jet Complement



     From       Düsseldorf, Germany                             Airlines: AZ
     To         Milan, Italy
     Aircraft type: 50 seats Regional Jets                      January 2003

               Origin     Destination   Range    Eqp      Days of      Departure   Arrival
                                                 (km)     Operation

               DUS         MXP          644      MD80       daily         07:00a   08:35a
January 2002




               DUS         MXP          644     ERJ 145     daily         11:45a   01:20a

               DUS         MXP          644     ERJ 145     daily         04:10p   05:45p

               DUS         MXP          644     ERJ 145     daily         08:35p   10:10p

               DUS         MXP          644      A319       daily         07:00a   08:30a
January 2003




               DUS         MXP          644      A319       daily         11:45a   01:15p

               DUS         MXP          644     ERJ 145     daily         05:30p   07:05p

               DUS         MXP          644     ERJ 145     daily         07:45p   09:20p
Jet Replacement (Rightsizing)



    From    Birmingham, UK                          Airlines: BA
    To      Europe
    Date    Jan/2003


  Orig     Dest    Duration    Range   Eqp              Monthly Frequencies
                                              Jan 02         Aug02          Jan03

  BHX      FRA         01:40   766     A319   49                   47      0
                                        ER4   56                   26      76
  BHX      GLA         01:00   415     A319   127                  114     0
                                        ER4   54                   58      57
  BHX      AMS         01:15   443     B737   4                    43      0
                                         RJ   95                   61      84
  BHX      DUS         01:20   597     B737   79                   74      0
                                        ER4   26                   33      29
  BHX      EDI         01:00   402     A319   149                  152     0
                                        ER4   32                    0      34
Responding to Market Needs



                             37 Seats




                             44 Seats




                             50 Seats
Aircraft Commonality
   ERJ’s share 95% parts, systems and training commonality within the
   aircraft family

                                • Same engine (AE 3007) hardware

                                • Same systems and components

                                • Same ERJ crew type rating

                                • Common maintenance and training
                                  procedures

                                • Common ground support equipment



                               The ERJ 135/140/145 Family Operators have
                                 the necessary infrastructure to support
                                         ERJ 145XR operations
FA 05/May/03
Interior – Cross-Section
   3 abreast grants passengers their most desirable seat.
                  CRJ200                           ERJ 145



            17.3 in                                17.3 in
                                                   (.44 m)
            (.44 m)                73.0in                              72.0 in
                                   (1.85 m)                  17.0 in
                       16.1 in                                         (1.82 m)
                                                             (.43 m)
                      (.41 m)




                       99.5 in
                      (2.53 m)                         83.0 in
                                                       (2.10 m)


 ERJ 145 advantages:

       Exclusive businessman’s dream premium single seats.
       One additional inch in aisle width allows easier passenger access.
       11% more cabin width per seat provides more shoulder clearance.
Field Performance

           ERJ 135: Steep Approach Capable
             Range from LCY 350 – 600 nm




                                     Typical OEW
                                     Typical Mission Reserves
                                     A1/3 Engine
                                     Pax @ JAR-OPS Rules
                                     ISA
                                     No wind
Operating Cost
 Major airline industry economic analysts credit to the ERJ 145 the lowest
 operational costs in the 50 seats category.



                                                 “Overall, the ERJ 145 has
                                                 the lowest per trip costs
                                                 (of all compared aircraft in
                                                 its class) ...”

                                                 AIRCRAFT ECONOMICS -
                                                 issue 47 - Jan/Feb 2000




     As seen from the Aircraft Economics final comparison chart
      the ERJ 145 has 8.8% lower DOC per trip than the CRJ200.
Operating Cost
Major airline industry economic analysts credit to the ERJ 145 the lowest
operational costs in the 50 seats category.


                                               The ERJ 145 offers aircraft-
                                               mile costs between 9% and
                                               11% better than the CRJ.

                                               AIRCRAFT COMMERCE
                                               issue 6 - Jul/Aug 1999




The Aircraft Commerce magazine article confirms the operating costs
 advantage of the ERJ 145 to be around 10% better than the CRJ200.
Operating Cost
 Major airline industry economic analysts credit to the ERJ 145 the lowest
 operational costs in the 50 seats category.


                                                The ERJ 145 offers 7%
                                                better aircraft-mile costs
                                                than the CRJ200.

                                                AIRCRAFT ECONOMICS
                                                issue 61 - Jan/Feb 2002




     Aircraft Economics magazine article credits again operating
          costs advantage to the ERJ 145 over the CRJ200.
Evolution to Longer Stage Lengths

 Annual Flights
 400.000




 300.000                2002



 200.000
                         2001

                         2000

 100.000                 1999

                          1998
                        19961997
      0                            1995
       100        300      500            700    900      1100   1300
                                Sector Distance (Miles)
Introducing the ERJ 145 XR Version



                               ERJ 145 XR
                             2,000 nm Range




                                                     First Delivery
                                                   24th October 2002


                Embraer’s answer to the market
               request for longer range missions



FA 05/May/03
RJ Network – USA (Oct/2003)




                                                                 < 2 Hours

                                                                 2 to 3 Hours

                                                                 > 3 Hours
  Regional Jets    Growth
     Routes     Jan - Oct 2003
    < 2 Hours         9%
   2 - 3 Hours       78%
    > 3 Hours        68%
       Total         23%
Source: Back OAG (ERJ 145/140/135, CRJ-100/200, 328Jet routes)
ERJ 145 XR Design Features


   Reinforced fuselage structure
   to allow higher design weights
                                                 AE3007A1E engine




                                                             Winglet

              Supplementary fuel tank inside
                wing to fuselage fairings


• increased range                   • lower fuel consumption
• better field performance          • superior single engine ceiling
• improved hot & high operation     • VMO, MMO and VFE increases
Evolution of Regional
New Nonstop Market Opportunities




    ERJ 145 XR
     2,000 nm
                                   Houston
Range Capability from Denver
ERJ 145 Family offers
outstanding
performance from Hot &
High airports
                                   1340 nm
ERJ 145 XR
   Airp. temp. @ 28ºC
   (85% summer reliability)
  Airp. temp. @ 36ºC
  (99% summer reliability)

FAR Reserves

Taxi allowance
                               .
  14 minutes

Air Maneuvers
   3 minutes

Long Range Cruise

Pax Weight & Baggage
  90.7 kg (200 lb)

85% Annual Winds

BOW with thrust reverser
Design Weights
ERJ 145 LR is almost 6% better than CRJ200 in Structural Design Efficiency.
ERJ 145XR is 19% better than CRJ200 in SDE, leading therefore to lower
operating costs.
                                                                ERJ 145 XR              ERJ 145 LR            CRJ200 LR

    Maximum Take Off Weight                                        24,100 kg             22,000 kg             24,041 kg

    Maximum Landing Weight                                         20,000 kg             19,300 kg             21,319 kg

    Maximum Zero Fuel Weight                                       18,500 kg             17,900 kg             19,958 kg

    Basic Operating Weight                                         12,838 kg ¹           12,361 kg ¹           13,834 kg

    Maximum Fuel Load                                                  6,032 kg           5,187 kg              6,489 kg

    Maximum Payload                                                    5,662 kg           5,539 kg              6,124 kg

    Maximum Useful Load                                            11,262 kg              9,639 kg             10,207 kg

    Structural Design Efficiency ²                                      0.88               0.78                  0.74

    Standard Single Class Seating                                         50                 50   6% better        50
  ¹ Includes reinforced cockpit door and all typical options such as
  thrust reversers, navigation equipment, etc.
            †
                                                                           19% better
  ² Structural Design Efficiency = Max Useful Load / Basic
  Operating Weight
Performance - Mission

  Block Times and Block Fuels are about the same for all models.


 400 nm sector                                  ERJ 145 XR   ERJ 145 LR   CRJ200 LR
                                                  50 pax       50 pax       50 pax


 Engines                                        AE3007 A1E   AE3007 A1    CF34-3B1

 Block Time                                       80 min       80 min      80 min
  ISA enroute, max pax @ 90.7 kg
  14 min taxi, FAR reserves, 100 nm alternate

 Block Fuel                                       1,309 kg    1,304 kg     1,315 kg
  ISAenroute, max pax @ 90.7 kg
  14 min taxi, FAR reserves, 100 nm alternate

 Take Off Field Length                            1,460 m     1,435 m      1,455 m
  ISA, SL, max pax @ 90.7 kg
  FAR reserves, 100 nm alternate

 Landing Field Length                             1,315 m     1,315 m      1,415 m
  ISA, SL, max pax @ 90.7 kg
  FAR reserves, 100 nm alternate
COC per Trip
        ERJ 145 XR offers further advantages at no additional operating
                        cost with regard to LR version.
                         800
                                                                                 742
                                  699                     710
                                                                                  43
                         700                              40
                                   39

                         600

                                                          281                     310
                                  271
        COC/Trip (US$)




                         500


                         400


                         300      155                     155                     155


                         200

                                  234                     234                     234
                         100


                          0
                               ERJ 145 LR            ERJ 145 XR                CRJ200 LR
Economic Assumptions (USA)
Utilization  2,500 FH/year      50 seats              50 seats                  50 seats
Fuel price   0.75 USD/USGal
Fuel density 6.7 lb/USGal                   CREW   FUEL   MAINTENANCE   FEES
Crew Function of Block Time
Landing fees Function of MLW
Maintenance Period 5 years                                                        500 sm sector
Maint, Labor 25.00 USD/MH
ERJ 145 XR Compared to CRJ 200 LR - SUMMARY

 List Prices (K US$ - e.c. Dec 2002)
   • ERJ 145 XR : 21,300
   • CRJ 200 LR : 23,200
                                      ERJ 145 XR
 Performance
    • Higher range @ 50 pax               Range*    CRJ200 LR
                                         2,000 nm
    • Better Hot & High performance
                                                     Range*     * @ MTOW, LRC, 50 pax @ 90.7 kg.

 Design                                             1,750 nm


   • Lower Basic Operating Weight
   • Better SDE (Structural Design Efficiency)
   • More integrated systems

 Operational Characteristics
   • Lower approach speeds
   • Better short field performance
 Economics
   • Better Operating Costs
ERJ 145 Family Positioning
                                                                     US Domestic Passenger Demand
                                200
 Passengers per Day Each Way




                                150
                                                        ERJ145ER                           ERJ145LR



                                100                                                                          ERJ145 XR




                                 50
                                                                  ERJ135 ER                           ERJ135 LR



                                  0
                                      0        200        400        600    800    1,000    1,200   1,400   1,600   1,800   2,000
                                                                            Stage Length – Miles
                               Source: US DoT O&D data, 2Q, 2002, Embraer
Opportunities
 Beyond the
   Current
Airline Model
25
                                        ERJ                ERJ    ERJ
                                         +                  +
                       ERJ    ERJ       CRJ         CRJ    CRJ
                        +      +
                       CRJ    CRJ




                50
                75
                                                 70 to




                100
                                     110 Seats


                                                                  B737
                                                           MD80




Seat Capacity
                                                    A319
                              A319


                125
                       A319                         B737          B737
                              B737     B737
                                                    A320
                                                                         Widening Seat Capacity Gap - USA




                              MD80     MD80                B737
                150


                       A320   B737
                              A320     B737                       B737



                              A320
                175+




                                                           B757   B757
                       B757   B757     B757         B757
No Artificial Constraints in Europe

             44 – 70
             44 – 70                                          131 – 283+
                                                              131 – 283+

              50 – 70
              50 – 70                                  109 – 169+
                                                       109 – 169+


              37 – 80
              37 – 80      70 to                       103 – 270+
                                                       103 – 270+
                         110 Seats
               37 – 85
               37 – 85                                 112 – 206+
                                                       112 – 206+


                  50 - 80
                  50 - 80                              108 – 189+
                                                       108 – 189+

                        50 – 111                       110 – 180+
                                                       110 – 180+


                                           50 – 213+
                                           50 – 213+

        25   50          75        100      125         150       175+
                                    Seating Capacity
The Need for 70-110 Seat Jets
                                                                       34% of flights
                                                                      depart with loads
                                                                        appropriate
                                                                      for 100-110 seat
                                            27% of flights depart          aircraft
                                           with loads appropriate
Percentage of Total Departure




                                                                       17%        17%
                                            for 70-80 seat aircraft

                                                               14%
                                                                                          13%




                                                     9%
                                                                                                  8%
                                                                                                          7%




                                           4%                                                                   4%
                                                                                                                             3%

                                2%                                                                                   2%




                                     <50        50 60          70      80       90        100    110     120   130   140   >150
                  Source: Back (US DOT T100 Jan-Sep 2002)                     Passengers per Departure
Market Opportunities - Global
Rightsizing and Frequency Increase
Average Daily Frequency by City-pair
Routes operated by Jet Aircraft from 91 – 175 seats up to 2000 nm

                 5150 city pairs with less than
                  2 average daily frequency
                       33%

                                       27%

                                                    20%
    City Pairs




                                                                 12%
                                                                          7%




                      0 - 0,5        0,5 - <2      2-<5         5 - <10   >=10

 Source: OAG (Jan/2003)
                                           Average Daily Frequency
Market Opportunities - Global

                      Replacement of Ageing Aircraft
                      Fleet in Service (61-120 seat segment - Dec/2002)

                       500
                                                                                         453
                                                                                                                           689 aircraft with more than 20 years
                       400                                       372                                                          (34 % of total fleet in service)
                                         330
 Number of Aircraft




                                                                                                                               304
                       300                                                                                                                               277

                                                                                                                  208
                       200

                                                                                                                                            108
                       100


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

                      Source: Fleet PC (Scheduled Airlines, Active in Service and All Passenger Configuration)
Introducing the   E- Jets

                            70 – 78 Seats



                            78 – 86 Seats




                            98 - 106 Seats




                            108 – 118 Seats
E-ngineering – 21             st Century    Aircraft
Applying Technology . . .
                                       …to create value to Customer
• Virtual reality tools                   • Reduced time to market
• On-board CMC                            • Reduced pilot workload
• Fly-by-wire                             • High strutural design efficiency
• Full redundant FADEC                    • Minimum down time (TAT, checks)

• Fully digital “quiet&dark” cockpit      • Easy maintenance diagnosis

• Top systems/avionics integration        • Low maintenance cost

• World-class parterships                 • Reduced fuel consumption
                                          • Cross crew qualification (CCQ)
• Smart use of composite materials.
                                          • Easy aircraft handling
                                          • Optimized mission performance
                                          • High schedule realiabilty.
E-rgonomics – Cabin Spaciousness
      Two’s Company – Three’s a Crowd




          Everyone gets a window or aisle seat.
Everything you expect…
                         … in a First Class cabin


                          • Single seat

                          • Seat comfort

                          • Catering

                          • Stowage

                          • Partition

                          • Exclusive lavatory

                          • Exclusive environment
Everything you DON’T expect…
                                 … in an Economy cabin

                           • Middle seat             X

                           • Limited baggage space X


                           • Single lavatory         X

                           • Narrow aisle            X

                           • Cramped seating         X

                           • Limited catering capabilities X


                               • “Cattle” feeling     X
E-conomics – Profitable by Design
                                                                                                   USA Environment
 *Based on Total Operating Cost
                                                   BREAK-EVEN*                        PROFIT
 500 sm for EMBRAER 170/175
 600 sm for EMBRAER 190/195


EMBRAER 170
78 seat
                                                         40 PAX (51%)                     38 PAX



EMBRAER 175
86 seats
                                                         44 PAX (51%)                     42 PAX



EMBRAER 190
106 seats
                                                         57 PAX (54%)                     49 PAX



EMBRAER 195
118 seats
                                                         62 PAX (53%)                     56 PAX

          *Based on Total Operating Costs; Average OW net fare 500 sm USD 90; 600 sm USD 98
EC 05/May/03
E-fficiency – Range from Dallas
                                    EMBRAER 170
                                    EMBRAER 175
                                    EMBRAER 190
                                    EMBRAER 195


                                  FAR Domestic Reserves

                                  Taxi allowance
                                    14 minutes

                                  Air Maneuvers
                                     3 minutes

                                  Cruise
                                     ISA

                                  Wind
                                     85% Annual Reliability

                                  Pax Weight & Baggage
                                    90.7 kg (200 lb)
E-fficiency – Field Performance
         EMBRAER 170: The best field performer
               Range from LCY 600 nm




                                      Typical European OEW
                                      Typical Mission Reserves
                                      E5A1 Engine
                                      Pax @ 90.7 kg (200 lb)
                                      ISA
                                      No wind
Embraer
 Market
Forecast
Market Forecast           2004-2023

              World Deliveries by Segment - Jets


   Segment     2004 - 2013      2014 - 2023      2004 - 2023

   30 - 60        1,150            1,450            2,600
    61 – 90       1,300            1,600            2,900
   91 – 120       1,250            1,700            2,950
   TOTAL          3,700            4,750            8,450



    World (30-120 seat segment): 8,610 jets (US$180 billion)
Market Forecast              2004-2023
30 - 120 Seats: 8,450 Jets




  USA, Canada
  USA, Canada
  & Caribbean
  & Caribbean                  Europe,
                                Europe,     China
                                            China
     4,740
     4,740                    Middle East
                              Middle East    635
                                             635
     56%                       & Africa
                               & Africa     8%
                                1,970
                                1,970
          Latin
          Latin                 23%
         America                                     Asia
                                                     Asia
         America                                    Pacific
                                                    Pacific
           625
           625                                       480
                                                     480
          7%                                        6%
Market Forecast (Jets)

                             World (Total Deliveries)
                                 External Sources

                            2004-2013                      2014-2023            2004-2023
    Sources       30-60   61-90 91-120   Total   30-60   61-90 91-120   Total     Total
    Airclaims     1794    1135    914    3843    1071    2428    1886   5385      9228
   Bombardier     1677    1555           3232    2183    3152           5335      8567
   Rolls-Royce    1394    1113    589    3096    1510    1799     932   4241      7337
    Snecma        1786     805    899    3490    1867     904    1075   3846      7336
        GE        1194     797    950    2941    1250     898    1134   3282      6223
     Boeing       1337     562    1300   3199    1399     659    1554   3612      6811
    Average       1530     995    930    3455    1547    1640    1316   4503      7958

    Embraer       1150    1300   1250    3700    1450    1600   1700    4750      8450




              Embraer forecast is more conservative when
                   compared to other forecast sources
Embraer Market Forecast            2004-2023

30 - 60 Seats: 2,600 Jets



   USA, Canada
    USA, Canada
    & Caribbean
    & Caribbean              Europe,
                              Europe,     China
                                          China
 1,870 (840 + 1030)
 1,870 (840 + 1030)         Middle East
                            Middle East    200
                                           200
      71%                    & Africa
                             & Africa      8%
                               355
                               355
           Latin
           Latin              14%
          America                                  Asia
                                                   Asia
          America                                 Pacific
                                                  Pacific
            95
            95                                      80
                                                    80
            4%                                    3%
ERJ 145 XR Potential Market in 10 years



      North America                    North America              North America
        30-60 Segment                    New Deliveries             New Deliveries
      Current Market Share             Total 30-60 Segment
                                                             ERJ 145 XR Market Potential
            5%

                                                                 25% - 30% of total
                                      840 to 1100 Aircraft    ERJ 145 Family Deliveries
                                45%

                                          380 to 500             100 to 150 Aircraft
50%                                      ERJ 145 Family
                                                             210 to 300 Aircraft in 20 years



      Embraer   Bombardier   Others

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2003* Road Show Sales Finance Nov 03 (ApresentaçãO Encontra Se DisponíVel Apenas Em InglêS)

  • 2. Forward Looking Statement 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.
  • 4. Highlights One of the world’s major commercial aircraft manufacturers Significant market share Global customer base Renamed international partners Excellent financial performance Brazil’s largest exporter in 1999, 2000 and 2001
  • 5. Global Presence Parent Company São José dos Campos Venezuela Venezuela Colombia Colombia Peru Peru BRAZIL Bolivia Bolivia Pac ific Oc ea n Pac ific Oc ea n Pa rag uay Pa rag uay Atlantic Oc ean Atlantic Oc ean Chile Chile Sã o P a ul o Sã o P a ul o Argentina Argentina Located in São José dos Campos, Brazil Urugua yy Urugua Designs and manufactures aircraft for the commercial, defense and corporate markets and provides after-sales support Floor space: 3.05 million sq.ft Number of employees in São José dos Campos: 10,464
  • 6. Global Presence Embraer Eugênio de Melo São José dos Campos Venezuela Venezuela Colombia Colombia Peru Peru BRAZIL Bolivia Bolivia Pac ific Oc ea n Pac ific Oc ea n Pa rag uay Pa rag uay Atlantic Oc ean Atlantic Oc ean Chile Chile Sã o P a ul o Sã o P a ul o Argentina Argentina Urugua yy Urugua Located in Eugênio de Melo, a district of São José dos Campos This unit has a total area of 3.6 million sq. ft., of which 527.050 sq.ft. are industrial buildings used in the development and manufacturing of tooling equipment, piping, as well as for performing welding, milling and wire looming operations
  • 7. Global Presence Embraer Gavião Peixoto Gavião Peixoto Venezuela Venezuela Colombia Colombia Peru Peru BRAZIL Bolivia Bolivia Pac ific Oc ea n Pac ific Oc ea n Pa rag uay Pa rag uay Atlantic Oc ean Atlantic Oc ean Chile Chile Sã o P a ul o Sã o P a ul o Argentina Argentina Located in Gavião Peixoto, Brazil Urugua yy Urugua Manufacturing facility that will host the final assembly activities of the company´s corporate and defense aircraft, as well as a runway for flight tests Site area: 4.12 million sq.ft. Number of employees: 329 Start-up of operations in October 2001
  • 8. Global Presence Operations in Brazil, USA, Europe, Asia and Austrália EUA GB Weybridge Nashville China Atlanta Palm Beach Gardens França Beijing Le Bourget Harbin Fort Lauderdale Cingapura Brasil Cingapura Gavião Peixoto Botucatu Austrália Melbourne São José dos Campos
  • 9. Number of Employees 12,607 12,227 11,048 10,334 8,302 6,737 6,087 4,494 4,319 3,849 94 95 96 97 98 99 00 01 02 Sept 03 April / 97: minimum of 3,200 people BRAZIL 11,779* AUSTRALIA 09 CHINA 126 USA 484 EUROPE 199 SINGAPORE 10 * ELEB employees included
  • 10. Business Segment Diversification
  • 11. Revenue Diversification Current Sales Expected Sales Distribution Distribution In Five Years FY2002 Commercial 83% Commercial 70% 30% Defense 5% Customer Corporate Services Aviation 6% 6% Corporate Customer Defense Jets Service
  • 15. ERJ 145 Family Orderbook Firm Options Deliveries Firm Total Backlog ERJ 135 121 6 127 104 17 ERJ 140 94 20 114 74 20 ERJ 145 665 465 1,130 509 156 Total 880 491 1,371 687 193 (September 2003)
  • 16. ERJ 145 Order Book (as of August 2003) COUNTRY CUSTOMER FIRM OPTIONS TOTAL DELIVERED FIRM ORDERS BACKLOG Austria RHEINTALFLUG 3 0 3 3 0 Brazil RIO-SUL 16 0 16 16 0 China SICHUAN 5 0 5 5 0 England MANX 23 3 26 23 0 BRITISH MIDLAND 11 5 16 9 2 BRYMON 7 14 21 7 0 France REGIONAL 17 0 17 14 3 FLANDRE AIR 7 6 13 5 2 PROTEUS 11 1 12 8 3 Germany CIRRUS 1 0 1 1 0 Greece AXON 3 0 3 3 0 Guadaloupe AIR CARAIBES 2 0 2 2 0 Italy ALITALIA 14 7 21 13 1 Holland KLM EXEL 3 2 5 3 0 Luxembourg LUXAIR 9 2 11 9 0 Poland LOT POLISH 14 0 14 14 0 Portugal PORTUGALIA 8 0 8 8 0 Sweden SKYWAYS 4 10 14 4 0 Switzerland CROSSAIR (SWISS) 25 15 40 25 0 U.S.A. EXPRESS JET (COEX) 245 100 345 187 58 AMERICAN EAGLE 136 42 178 56 80 WEXFORD 38 0 38 38 0 REPUBLIC (Chautauqua) 9 70 79 7 2 TRANSTATES 15 17 32 12 3 MESA 36 45 81 32 4 GATX 1 0 1 1 0 GECAS (PB Air - Thailand) 2 0 2 2 0 US AIRWAYS 0 132 132 0 0 TOTAL 665 471 1136 507 158
  • 17. EMBRAER 170/190 Family Orderbook Firm Options Total EMBRAER 170 120 128 248 EMBRAER 190 110 150 260 EMBRAER 195 15 30 45 Total 245 308 553 (September 2003)
  • 18. Backlog In 3Q03 - US$ 27.7 billion in total orders, including US$ 10.4 billion in firm orders US$ billion 30 27.1 27.7 25 Options 24.1 23.4 Firm Orders 22.2 20 19.2 17.7 16.8 17.3 12.7 12.7 15 13.2 11.3 11.3 10 5 4.1 11.4 10.7 10.3 10.4 3.0 9.0 7.9 1.2 6.4 3.0 4.1 0 1.2 1996 1997 1998 1999 2000 2001 2002 1Q03 2Q03 3Q03
  • 19. Airline Market Trends and Outlook Orlando José Ferreira Neto Director of Market Intelligence
  • 20. Regional Airline Market Scheduled airline services (aircraft from 19 up to 120 seats): Fleet in Service Capacity share % by region Turboprop 730 Regional Jet 616 Turboprop 1244 Regional Jet 1293 North North Europe Europe Turboprop 12 America America 26% Regional Jet 55 54% China China 1% Latin Latin Africa & Africa & America America Middle East Middle East Asia/ Asia/ & Caribbean & Caribbean Pacific Pacific 9% 4% Turboprop Regional Jet 348 168 6% Turboprop 532 Turboprop 181 Regional Jet 94 Regional Jet 66 Total Fleet Turboprop 3047 6262 Regional Jet 2292 2402 Source: OAG (Jan/2003), Fleet PC (Dec/2002)
  • 21. Market Evolution - USA Share of US Domestic Passenger Enplanements 100% 5% 9% 13% 16% 3% 7% 80% 16% 19% 60% 91% 40% 84% 71% 65% 20% 0% 1980 1990 2000 2002 Majors Low Cost/New Entrants Regionals Source: AvStat Associates, Inc. analysis of U.S. DOT data.
  • 22. Market Evolution - Europe Share of Intra-European RPKs 100% 14% 17% 17% 17% 18% 17% 19% 19% 1% 80% 1% 1% 2% 4% 5% 8% 8% 60% 40% 86% 82% 82% 81% 79% 78% 73% 73% 20% 0% 1995 1996 1997 1998 1999 2000 2001 2002 Majors Low Cost Regionals Low Cost: easyJet + Go + Ryanair 2002 Low Cost Data Estimated Source: AEA, ERA, ATI
  • 23. Airline Market - USA 71% Domestic ATA Regional RAA RPM Growth - Yr/Yr % Change 41% 37% 34% 32% 34% 31% 27% 29% 28% 23% 18% 20% 17% 15% 13% 14% 13% 14% 9% 7% 5% 6% 5% 2% 2% 1%0% 3% 2% 2% -3% -1% -1% -3% -2% -2% -2% -6% -7% -7% -7% -10% -7% -11% -8% -13% -12% -18% -21% -23% -33% Apr Apr Year 2001 Year 2002 Aug Aug Jul Jul Oct Oct Mar Mar Jun/01 Jan/01 May Nov Dec/01 jan/02 May jun/02 Nov Dec Feb Sep Feb Sep Source: Top Regionals, RAA, ATA
  • 24. Airline Market - Europe Intra European+Domestic AEA Regional ERAA 18% 15% RPK Growth - Yr/Yr % Change 13% 13% 13% 12% 10% 10% 9% 9% 9% 8% 8% 9% 8% 8% 8% 7% 6% 6% 6% 6% 4% 4% 5% 5% 4% 5% 4% 4% 4% 4% 4% 4% 2% 0,3% -1% -3% -2% -5% -5% -6% -7% -9% -9% -9% -9% -10% -12% -12% -13%-13% Oct Oct Jun/01 Nov Jun/02 Nov Apr Apr Aug Aug Jul Jul Jan/01 May Dec/01 Year 2001 Jan/02 May Dec Year 2002 Mar Mar Feb Sep Feb Sep Source: ERAA, AEA
  • 25. Industry in Transition after Sep 11th Rightsizing Capacity vs. Demand: Routes Transferred to RJs Jet Replacement Turboprop Replacement Source: Back OAG (American, Continental, Delta, United, and US Airways)
  • 26. Industry in Transition after Sep 11th Rightsizing Capacity vs. Demand: Routes Transferred to RJs Jet Replacement Turboprop Replacement Source: Back OAG Air France, Alitalia and British Airways
  • 27. US Domestic Yield Evolution 16 15 Yield (US¢/RPM) 14 13 12 11 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1998 1999 2000 2001 2002 2003 Source:
  • 28. An Industry in Transition • Fundamental Correction – Not a Traditional Cycle • Decreasing Average Fare Values • Decreasing Capacity (USA) • Increasing Low Cost Carrier Critical Mass • Increasing Regional Jet Critical Mass • Pressure on Existing Worldwide Airline Model • Major USA Airlines re-inventing themselves • Regional affiliates strongly being used as defensive tools (point-to-point X hub and spoke) • Low cost carriers being inserted in the current airline model
  • 29. Sustaining Regional Jet Growth 1. Turboprop Substitution • Productivity improvements • Passenger jet preference 2. Frequency, Frequency . . . 3. Optimization of Old and Inefficient Narrowbody Services • Rightsizing aircraft capacity with demand • Long & thin routes • New market opportunities • Profit potential
  • 30. Regional Jet Networks - USA Jan 1995 – 76 Routes Jan 2003 – 1874 Routes Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
  • 31. Regional Jet Networks - Europe Jan 1995 – 104 Routes Jan 2003 – 1072 Routes Source: Back OAG (ERJ-145/140/135, CRJ-100/200, 328Jet routes)
  • 32. High Frequency Services From Manchester, UK Airlines: BD To Edinburgh, UK Date Jan/2003 Days Depart Arrive Eqp Stop Duration xSaSu 7:00a MAN 07:55a EDI ER3 0 00:55 xSaSu 8:55a MAN 09:50a EDI ER4 0 00:55 xSaSu 12:15a MAN 01:15p EDI ER4 0 01:00 xSaSu 5:00p MAN 06:00p EDI ER4 0 01:00 xSaSu 7:55p MAN 08:50p EDI ER4 0 00:55
  • 33. Jet Complement From Düsseldorf, Germany Airlines: AZ To Milan, Italy Aircraft type: 50 seats Regional Jets January 2003 Origin Destination Range Eqp Days of Departure Arrival (km) Operation DUS MXP 644 MD80 daily 07:00a 08:35a January 2002 DUS MXP 644 ERJ 145 daily 11:45a 01:20a DUS MXP 644 ERJ 145 daily 04:10p 05:45p DUS MXP 644 ERJ 145 daily 08:35p 10:10p DUS MXP 644 A319 daily 07:00a 08:30a January 2003 DUS MXP 644 A319 daily 11:45a 01:15p DUS MXP 644 ERJ 145 daily 05:30p 07:05p DUS MXP 644 ERJ 145 daily 07:45p 09:20p
  • 34. Jet Replacement (Rightsizing) From Birmingham, UK Airlines: BA To Europe Date Jan/2003 Orig Dest Duration Range Eqp Monthly Frequencies Jan 02 Aug02 Jan03 BHX FRA 01:40 766 A319 49 47 0 ER4 56 26 76 BHX GLA 01:00 415 A319 127 114 0 ER4 54 58 57 BHX AMS 01:15 443 B737 4 43 0 RJ 95 61 84 BHX DUS 01:20 597 B737 79 74 0 ER4 26 33 29 BHX EDI 01:00 402 A319 149 152 0 ER4 32 0 34
  • 35. Responding to Market Needs 37 Seats 44 Seats 50 Seats
  • 36. Aircraft Commonality ERJ’s share 95% parts, systems and training commonality within the aircraft family • Same engine (AE 3007) hardware • Same systems and components • Same ERJ crew type rating • Common maintenance and training procedures • Common ground support equipment The ERJ 135/140/145 Family Operators have the necessary infrastructure to support ERJ 145XR operations FA 05/May/03
  • 37. Interior – Cross-Section 3 abreast grants passengers their most desirable seat. CRJ200 ERJ 145 17.3 in 17.3 in (.44 m) (.44 m) 73.0in 72.0 in (1.85 m) 17.0 in 16.1 in (1.82 m) (.43 m) (.41 m) 99.5 in (2.53 m) 83.0 in (2.10 m) ERJ 145 advantages: Exclusive businessman’s dream premium single seats. One additional inch in aisle width allows easier passenger access. 11% more cabin width per seat provides more shoulder clearance.
  • 38. Field Performance ERJ 135: Steep Approach Capable Range from LCY 350 – 600 nm Typical OEW Typical Mission Reserves A1/3 Engine Pax @ JAR-OPS Rules ISA No wind
  • 39. Operating Cost Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category. “Overall, the ERJ 145 has the lowest per trip costs (of all compared aircraft in its class) ...” AIRCRAFT ECONOMICS - issue 47 - Jan/Feb 2000 As seen from the Aircraft Economics final comparison chart the ERJ 145 has 8.8% lower DOC per trip than the CRJ200.
  • 40. Operating Cost Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category. The ERJ 145 offers aircraft- mile costs between 9% and 11% better than the CRJ. AIRCRAFT COMMERCE issue 6 - Jul/Aug 1999 The Aircraft Commerce magazine article confirms the operating costs advantage of the ERJ 145 to be around 10% better than the CRJ200.
  • 41. Operating Cost Major airline industry economic analysts credit to the ERJ 145 the lowest operational costs in the 50 seats category. The ERJ 145 offers 7% better aircraft-mile costs than the CRJ200. AIRCRAFT ECONOMICS issue 61 - Jan/Feb 2002 Aircraft Economics magazine article credits again operating costs advantage to the ERJ 145 over the CRJ200.
  • 42. Evolution to Longer Stage Lengths Annual Flights 400.000 300.000 2002 200.000 2001 2000 100.000 1999 1998 19961997 0 1995 100 300 500 700 900 1100 1300 Sector Distance (Miles)
  • 43. Introducing the ERJ 145 XR Version ERJ 145 XR 2,000 nm Range First Delivery 24th October 2002 Embraer’s answer to the market request for longer range missions FA 05/May/03
  • 44. RJ Network – USA (Oct/2003) < 2 Hours 2 to 3 Hours > 3 Hours Regional Jets Growth Routes Jan - Oct 2003 < 2 Hours 9% 2 - 3 Hours 78% > 3 Hours 68% Total 23% Source: Back OAG (ERJ 145/140/135, CRJ-100/200, 328Jet routes)
  • 45. ERJ 145 XR Design Features Reinforced fuselage structure to allow higher design weights AE3007A1E engine Winglet Supplementary fuel tank inside wing to fuselage fairings • increased range • lower fuel consumption • better field performance • superior single engine ceiling • improved hot & high operation • VMO, MMO and VFE increases
  • 46. Evolution of Regional New Nonstop Market Opportunities ERJ 145 XR 2,000 nm Houston
  • 47. Range Capability from Denver ERJ 145 Family offers outstanding performance from Hot & High airports 1340 nm ERJ 145 XR Airp. temp. @ 28ºC (85% summer reliability) Airp. temp. @ 36ºC (99% summer reliability) FAR Reserves Taxi allowance . 14 minutes Air Maneuvers 3 minutes Long Range Cruise Pax Weight & Baggage 90.7 kg (200 lb) 85% Annual Winds BOW with thrust reverser
  • 48. Design Weights ERJ 145 LR is almost 6% better than CRJ200 in Structural Design Efficiency. ERJ 145XR is 19% better than CRJ200 in SDE, leading therefore to lower operating costs. ERJ 145 XR ERJ 145 LR CRJ200 LR Maximum Take Off Weight 24,100 kg 22,000 kg 24,041 kg Maximum Landing Weight 20,000 kg 19,300 kg 21,319 kg Maximum Zero Fuel Weight 18,500 kg 17,900 kg 19,958 kg Basic Operating Weight 12,838 kg ¹ 12,361 kg ¹ 13,834 kg Maximum Fuel Load 6,032 kg 5,187 kg 6,489 kg Maximum Payload 5,662 kg 5,539 kg 6,124 kg Maximum Useful Load 11,262 kg 9,639 kg 10,207 kg Structural Design Efficiency ² 0.88 0.78 0.74 Standard Single Class Seating 50 50 6% better 50 ¹ Includes reinforced cockpit door and all typical options such as thrust reversers, navigation equipment, etc. † 19% better ² Structural Design Efficiency = Max Useful Load / Basic Operating Weight
  • 49. Performance - Mission Block Times and Block Fuels are about the same for all models. 400 nm sector ERJ 145 XR ERJ 145 LR CRJ200 LR 50 pax 50 pax 50 pax Engines AE3007 A1E AE3007 A1 CF34-3B1 Block Time 80 min 80 min 80 min ISA enroute, max pax @ 90.7 kg 14 min taxi, FAR reserves, 100 nm alternate Block Fuel 1,309 kg 1,304 kg 1,315 kg ISAenroute, max pax @ 90.7 kg 14 min taxi, FAR reserves, 100 nm alternate Take Off Field Length 1,460 m 1,435 m 1,455 m ISA, SL, max pax @ 90.7 kg FAR reserves, 100 nm alternate Landing Field Length 1,315 m 1,315 m 1,415 m ISA, SL, max pax @ 90.7 kg FAR reserves, 100 nm alternate
  • 50. COC per Trip ERJ 145 XR offers further advantages at no additional operating cost with regard to LR version. 800 742 699 710 43 700 40 39 600 281 310 271 COC/Trip (US$) 500 400 300 155 155 155 200 234 234 234 100 0 ERJ 145 LR ERJ 145 XR CRJ200 LR Economic Assumptions (USA) Utilization 2,500 FH/year 50 seats 50 seats 50 seats Fuel price 0.75 USD/USGal Fuel density 6.7 lb/USGal CREW FUEL MAINTENANCE FEES Crew Function of Block Time Landing fees Function of MLW Maintenance Period 5 years 500 sm sector Maint, Labor 25.00 USD/MH
  • 51. ERJ 145 XR Compared to CRJ 200 LR - SUMMARY List Prices (K US$ - e.c. Dec 2002) • ERJ 145 XR : 21,300 • CRJ 200 LR : 23,200 ERJ 145 XR Performance • Higher range @ 50 pax Range* CRJ200 LR 2,000 nm • Better Hot & High performance Range* * @ MTOW, LRC, 50 pax @ 90.7 kg. Design 1,750 nm • Lower Basic Operating Weight • Better SDE (Structural Design Efficiency) • More integrated systems Operational Characteristics • Lower approach speeds • Better short field performance Economics • Better Operating Costs
  • 52. ERJ 145 Family Positioning US Domestic Passenger Demand 200 Passengers per Day Each Way 150 ERJ145ER ERJ145LR 100 ERJ145 XR 50 ERJ135 ER ERJ135 LR 0 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Stage Length – Miles Source: US DoT O&D data, 2Q, 2002, Embraer
  • 53. Opportunities Beyond the Current Airline Model
  • 54. 25 ERJ ERJ ERJ + + ERJ ERJ CRJ CRJ CRJ + + CRJ CRJ 50 75 70 to 100 110 Seats B737 MD80 Seat Capacity A319 A319 125 A319 B737 B737 B737 B737 A320 Widening Seat Capacity Gap - USA MD80 MD80 B737 150 A320 B737 A320 B737 B737 A320 175+ B757 B757 B757 B757 B757 B757
  • 55. No Artificial Constraints in Europe 44 – 70 44 – 70 131 – 283+ 131 – 283+ 50 – 70 50 – 70 109 – 169+ 109 – 169+ 37 – 80 37 – 80 70 to 103 – 270+ 103 – 270+ 110 Seats 37 – 85 37 – 85 112 – 206+ 112 – 206+ 50 - 80 50 - 80 108 – 189+ 108 – 189+ 50 – 111 110 – 180+ 110 – 180+ 50 – 213+ 50 – 213+ 25 50 75 100 125 150 175+ Seating Capacity
  • 56. The Need for 70-110 Seat Jets 34% of flights depart with loads appropriate for 100-110 seat 27% of flights depart aircraft with loads appropriate Percentage of Total Departure 17% 17% for 70-80 seat aircraft 14% 13% 9% 8% 7% 4% 4% 3% 2% 2% <50 50 60 70 80 90 100 110 120 130 140 >150 Source: Back (US DOT T100 Jan-Sep 2002) Passengers per Departure
  • 57. Market Opportunities - Global Rightsizing and Frequency Increase Average Daily Frequency by City-pair Routes operated by Jet Aircraft from 91 – 175 seats up to 2000 nm 5150 city pairs with less than 2 average daily frequency 33% 27% 20% City Pairs 12% 7% 0 - 0,5 0,5 - <2 2-<5 5 - <10 >=10 Source: OAG (Jan/2003) Average Daily Frequency
  • 58. Market Opportunities - Global Replacement of Ageing Aircraft Fleet in Service (61-120 seat segment - Dec/2002) 500 453 689 aircraft with more than 20 years 400 372 (34 % of total fleet in service) 330 Number of Aircraft 304 300 277 208 200 108 100 0 0-5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 >30 Aircraft Age (Years) Source: Fleet PC (Scheduled Airlines, Active in Service and All Passenger Configuration)
  • 59. Introducing the E- Jets 70 – 78 Seats 78 – 86 Seats 98 - 106 Seats 108 – 118 Seats
  • 60. E-ngineering – 21 st Century Aircraft Applying Technology . . . …to create value to Customer • Virtual reality tools • Reduced time to market • On-board CMC • Reduced pilot workload • Fly-by-wire • High strutural design efficiency • Full redundant FADEC • Minimum down time (TAT, checks) • Fully digital “quiet&dark” cockpit • Easy maintenance diagnosis • Top systems/avionics integration • Low maintenance cost • World-class parterships • Reduced fuel consumption • Cross crew qualification (CCQ) • Smart use of composite materials. • Easy aircraft handling • Optimized mission performance • High schedule realiabilty.
  • 61. E-rgonomics – Cabin Spaciousness Two’s Company – Three’s a Crowd Everyone gets a window or aisle seat.
  • 62. Everything you expect… … in a First Class cabin • Single seat • Seat comfort • Catering • Stowage • Partition • Exclusive lavatory • Exclusive environment
  • 63. Everything you DON’T expect… … in an Economy cabin • Middle seat X • Limited baggage space X • Single lavatory X • Narrow aisle X • Cramped seating X • Limited catering capabilities X • “Cattle” feeling X
  • 64. E-conomics – Profitable by Design USA Environment *Based on Total Operating Cost BREAK-EVEN* PROFIT 500 sm for EMBRAER 170/175 600 sm for EMBRAER 190/195 EMBRAER 170 78 seat 40 PAX (51%) 38 PAX EMBRAER 175 86 seats 44 PAX (51%) 42 PAX EMBRAER 190 106 seats 57 PAX (54%) 49 PAX EMBRAER 195 118 seats 62 PAX (53%) 56 PAX *Based on Total Operating Costs; Average OW net fare 500 sm USD 90; 600 sm USD 98 EC 05/May/03
  • 65. E-fficiency – Range from Dallas EMBRAER 170 EMBRAER 175 EMBRAER 190 EMBRAER 195 FAR Domestic Reserves Taxi allowance 14 minutes Air Maneuvers 3 minutes Cruise ISA Wind 85% Annual Reliability Pax Weight & Baggage 90.7 kg (200 lb)
  • 66. E-fficiency – Field Performance EMBRAER 170: The best field performer Range from LCY 600 nm Typical European OEW Typical Mission Reserves E5A1 Engine Pax @ 90.7 kg (200 lb) ISA No wind
  • 68. Market Forecast 2004-2023 World Deliveries by Segment - Jets Segment 2004 - 2013 2014 - 2023 2004 - 2023 30 - 60 1,150 1,450 2,600 61 – 90 1,300 1,600 2,900 91 – 120 1,250 1,700 2,950 TOTAL 3,700 4,750 8,450 World (30-120 seat segment): 8,610 jets (US$180 billion)
  • 69. Market Forecast 2004-2023 30 - 120 Seats: 8,450 Jets USA, Canada USA, Canada & Caribbean & Caribbean Europe, Europe, China China 4,740 4,740 Middle East Middle East 635 635 56% & Africa & Africa 8% 1,970 1,970 Latin Latin 23% America Asia Asia America Pacific Pacific 625 625 480 480 7% 6%
  • 70. Market Forecast (Jets) World (Total Deliveries) External Sources 2004-2013 2014-2023 2004-2023 Sources 30-60 61-90 91-120 Total 30-60 61-90 91-120 Total Total Airclaims 1794 1135 914 3843 1071 2428 1886 5385 9228 Bombardier 1677 1555 3232 2183 3152 5335 8567 Rolls-Royce 1394 1113 589 3096 1510 1799 932 4241 7337 Snecma 1786 805 899 3490 1867 904 1075 3846 7336 GE 1194 797 950 2941 1250 898 1134 3282 6223 Boeing 1337 562 1300 3199 1399 659 1554 3612 6811 Average 1530 995 930 3455 1547 1640 1316 4503 7958 Embraer 1150 1300 1250 3700 1450 1600 1700 4750 8450 Embraer forecast is more conservative when compared to other forecast sources
  • 71. Embraer Market Forecast 2004-2023 30 - 60 Seats: 2,600 Jets USA, Canada USA, Canada & Caribbean & Caribbean Europe, Europe, China China 1,870 (840 + 1030) 1,870 (840 + 1030) Middle East Middle East 200 200 71% & Africa & Africa 8% 355 355 Latin Latin 14% America Asia Asia America Pacific Pacific 95 95 80 80 4% 3%
  • 72. ERJ 145 XR Potential Market in 10 years North America North America North America 30-60 Segment New Deliveries New Deliveries Current Market Share Total 30-60 Segment ERJ 145 XR Market Potential 5% 25% - 30% of total 840 to 1100 Aircraft ERJ 145 Family Deliveries 45% 380 to 500 100 to 150 Aircraft 50% ERJ 145 Family 210 to 300 Aircraft in 20 years Embraer Bombardier Others