EMBRAER | MARKET OUTLOOK

NEW DELHI, 28 FEB 2023

THE INDUSTRY IS CONTINUOUSLY EVOLVING

2023
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MARKET OUTLOOK | FORECAST RESULTS

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2022-2041 DELIVERIES | UP TO 150 SEATS

10,950 THE NEW AIRLINE INDUSTRY

NEW DELIVERIES WORLDWIDE
RIGHT-SIZING

2,280 8,670
TPs JETs ADVANTAGE OF FLEXIBILITY

CONFIDENTIAL INFORMATION
Growth Replacement TRANSITION TO MULTI FLEET
43% 57%

Source: Embraer 2022 Market Outlook

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MARKET OUTLOOK | WORLDWIDE

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2022-2041 DELIVERIES | UP TO 150 SEATS

EUROPE & 2,820

CIS 26%
§ Right-sizing
NORTH 3,140 § Increased efficiency for greener operations
AMERICA 29% § Enabling connectivity in lower demand markets

§ Right-sizing
§ RJ replacement
§ Filling the gap between RJ and NB 3,190
AFRICA & 870 ASIA
M. EAST 8% PACIFIC 29%
§ Right-sizing § Right-sizing
LATIN 930 § Intra-regional connectivity § Finding new “pockets of growth”
§ Business and fleet diversification
AMERICA 8%

CONFIDENTIAL INFORMATION
§ Right-sizing
§ Infrastructure expansion
§ Underserved markets growth

Source: Embraer 2022 Market Outlook

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MARKET OUTLOOK | ASIA-PACIFIC & REGIONAL

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2022-2041 DELIVERIES | UP TO 150 SEATS

APAC (ex China) South Asia India

1,735 new deliveries 640 new deliveries 515 new deliveries
855 Turboprops 330 Turboprops 265 Turboprops
880 Jets up-to 150 Seats 310 Jets up-to 150 Seats 250 Jets up-to 150 Seats

CONFIDENTIAL INFORMATION
Source: Embraer 2022 Market Outlook
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UDAN SCHEME

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ENHANCING REGIONAL CONNECTIVITY

Regional aircraft can play

an important role to realise
the connectivity objective of
467 up to 1,000 routes by 2026
72 9

CONFIDENTIAL INFORMATION
09 FEB 2023

Source: Airport Authority of India

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UDAN SCHEME

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A SUPPORTIVE RCS POLICY REMAINS CRUCIAL

UDAN 1.0 to 3.0 VGF Cap (Cat 2/3) 467 RCS routes as of 09 Feb 2023
Dec 2016 to
Nov 2019

0-800km Variable based on distance

>800km Fixed regardless of distance of which

127 are sectors >600km in length

UDAN 4.0 VGF Cap (Cat 2/3)
Nov 2019 to

Reinstating the fixed VGF Cap on

present

0-600km Variable based on distance sectors >600km is critical to RCS

>600km Nil

CONFIDENTIAL INFORMATION
growth and to the policy’s success

Source: Airport Authority of India

EMBRAER E2 FOR INDIA
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THE E2 IS A NEW DESIGN BASED ON A PROVEN PLATFORM

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Improved avionics New interior
New displays with Enhanced PAX
45% more area experience and
New FMS more overhead Fuselage New wings
bin volume Extensive More efficient, highest
aerodynamic cleaning aspect ratio in the
to improve fuel single aisle segment
efficiency

4th gen full

fly-by-wire
Digital closed-loop control
to improve flying qualities,
fuel efficiency and comfort

Landing Aircraft systems New stabliser

New engine gear doors Redesigned to boost Lower area and reduced
High bypass ratio, geared Up to 1% fuel performance, reliability and weight resulting in fuel
Turbofan Engines burn reduction reduce maintenance costs burn reduction
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THE E2 IS MORE THAN JUST A REENGINED AIRCRAFT

A PARADIGM SHIFT: LOW TRIP COST AND LOW SEAT COST

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Cost per Trip Cost per Seat

20%
3%

-26% -28%

E195 v A320ceo E195-E2 v A320neo

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LOW OPERATING COST TO UNLOCK REGIONAL MARKETS

FROM AZUL’S 2Q2022 INSTITUTIONAL PRESENTATION

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PY
CO

“We are getting better fuel performance.

Maintenance costs are 16% lower, and
aircraft utilization will improve to 13h per
day. It gives us flexibility to connect
dots; just hundreds of possibilities. That
is nirvana for the airline business.”
John Rodgerson, CEO Azul Linhas Aereas

Seat cost of E195-E2 and

A320neo are very similar

Source: Azul Investor Relations

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THE E2 IS MORE THAN JUST A “REGIONAL JET”

E195-E2 IS A NARROW-BODY AIRCRAFT!

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35.1 m (115 ft 2 in) A320neo
(35 ft 4 in)
10.8 m

E195-E2

41.6 m (136 ft 6 in)

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AMPLE RANGE TO UNLOCK NEW DESTINATIONS

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E195-E2 RANGE FROM DELHI AT 100% LOAD FACTOR (146 PAX)

RANGE: 2,510 NM / 4,649 KM

FLIGHT TIME: 05H 40MIN
MAX PAX: 146 PASSENGERS

CONFIDENTIAL INFORMATION
Assumptions: JAR fuel policy, 200nm alternate, 5% airways allowance, 95kg pax weight, 85% annual winds and temperatures
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RIGHT-SIZED TO COMPLEMENT THE INDIAN FLEET MIX

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SEAT CAPACITY TO COVER VARIOUS MARKET SIZES

Large narrow-body A321neo 232

46 Seats
A320neo 186
Narrow-body
40 Seats
E195-E2 146

Small narrow-body 32 Seats

E190-E2 114

36 Seats

CONFIDENTIAL INFORMATION
Turboprop ATR 72 78
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MANY RIGHT SIZING OPPORTUNITIES EXIST

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50% OF INDIAN DOMESTIC FLIGHTS DEPART WITH 90-150 PASSENGERS ONBOARD

PAX / FLIGHT DISTRIBUTION INDIA DOMESTIC CY2019

12%
16% 50% 34%
10% 0-90 PAX PER FLIGHT 90-150 PAX PER FLIGHT >150 PAX PER FLIGHT
% OF FLIGHTS

8%

6%

4%

2%

0% …

CONFIDENTIAL INFORMATION
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200

PAX / FLIGHT
Source: India DGCA
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80+
OVER 1,700

Operators worldwide
E-Jets E1 + E2 delivered
GLOBAL OPERATOR AND LESSOR BASE

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THE NEWEST E2 CUSTOMER IN THE REGION!

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Letter of intent signed for
9x E190-E2 aircraft with
entry into service in 2024!

Source: https://www.flyscoot.com/en/the-scoot-family/media-centre
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E175 WITH STAR AIR

THE NEWEST E-JET CUSTOMER IN INDIA!

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HIGH MARKET ACCEPTANCE, STRONG BACKLOG

CURRENT E2 CUSTOMERS

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14 Operators
200+ Firm backlog
69 Aircraft delivered
AIRCRAFT ORDERS DELIVERIES

E190-E2 25 18 100+ Orders placed by lessors

E195-E2 245 51

Total 270 69
6 New customers added in 2022
Source: Embraer 4Q2022 Deliveries & Backlog Release
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SUMMARY | MARKET OPPORTUNITIES IN INDIA

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Increase capacity and / or frequency between mid-size cities pairs

Increase profitability in low-density markets with right-sized equipment

Achieve the lowest cost per trip on mid and long sectors

Minimise risk when seeking new growth opportunities

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XXX
THANK YOU!
21 in 21

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