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2023 ReportPeers and competitors of Embraer S.A.:
L3harrisMessage from the MANAGEMENT In a year marked by the progress in the confidence in the Company. vaccination against the Covid-19 pandemic and the beginning of recovery of the global economy, in 2021 we kept our focus on the execution of our strategic plan, Fit For Growth, whose main goal is the company’s profitable growth. Thanks to great discipline and agility, we already showed a better financial performance in 2021 and Two factors were fundamental for the performance improvement last year: the short-term projects for efficiency gain and the long-term growth vision, with initiatives on innovation and ESG, such as Eve Air Mobility, a company created by Embraer to bring the urban air mobility market up to speed. we are sure about the path of sustainable Regarding efficiency, we advanced growth for the upcoming years. in important projects like inventory It is important to highlight that in 2021 we reached the guidance presented to the market last July, having even surpassed it in some indicators. We had an increase in revenue, a positive EBITDA, order backlog at pre-pandemic levels, and we exceeded the free cashflow goal. All this contributed to the appreciation of our shares in the market, strengthening the investors’ management, with an increase in inventory turnover and reduction of aircraft production cycle. On the innovation and strategic partnership fronts, we signed a definitive agreement to combine businesses between Eve and Zanite Acquisition Corp, which will lead to opening Eve’s capital, with stock being traded at the New York Stock Exchange (NYSE). Watch the message from Embraer Chief Executive Officer, Francisco Gomes Neto, using the QR Code or clicking on the video above. SINCE 2008, Embraer is a signatory and reaffirms its commitment to UN’s Global Compact. In 2021, we took a significant step towards the advancement of the practices oriented to environmental issues, social and corporate governance actions. Last August we issued new ESG commitments and goals, which include reaching carbon neutrality in our operations until 2040, by using 100% energy from renewable sources and gradually increasing the use of Sustainable Aviation Fuel (SAF) in our own flights. We are also working together with suppliers and all the industry to achieve zero net emissions aviation by 2050, developing the necessary products based on new sustainable technologies, such as electrical, hybrid, and hydrogen propulsion. As part of such initiatives, we conducted the first flight of our electric demonstrator aircraft and we launched a family of concept airplanes of low and zero emission, the Energia Family. It is comprised of four aircraft models, with one 100% electric, another with hybrid-electric propulsion, a third one hydrogen-driven and a fourth hybrid model with SAF and hydrogen. Priority for the Company, safety of our products remains a continuous focus on the agenda of senior management, leaders, and collaborators. Our flight safety policy and other robust internal processes pervade the entire Company and encourage a permanent and rigorous commitment from our team during the development and maintenance of our aircraft, as well as in our service centers. We adopt a proactive, customer-focused approach throughout the product’s whole lifecycle. In addition to the initiatives on efficiency, innovation and ESG, we are very well positioned to grow by means of the increase in sales of our current product portfolio across all segments we operate in. In Commercial Aviation, flight resumption is increasing, especially regional ones, and there is still a large potential for expansion over the next five years. In 2021, we delivered 48 aircraft and we announced new commissions of the E2 family from important customers, such as Canadian Porter Airlines and Swiss Helvetic Airways, in addition to new orders of E175 for the North American market. We also had important advancements in markets with a strong expansion, such as Africa and Asia-Pacific. The growth was even more significant in Executive Aviation, with strong demand and record sales. We delivered 93 executive jets in 2021 and registered the largest volume in sales in the recent years – for the North American flight-sharing company NetJets alone there were more than 100 new Phenom 300 jets. The Defense & Security segment, in turn, delivered 14 A-29 Super Tucano light attack aircraft. During the year, five KC- 390 Millennium were under production, including one for the Portuguese Air Force and another one for the Hungarian Air Force. The SABER M200 Vigilante radar was presented and delivered to the Brazilian Army to meet the needs of protection of the national territory. In the Services & Support unit, we closed multi-annual agreements with Azul Linhas Aéreas and Republic Airways for the Embraer Collaborative Inventory Planning (ECIP) program. We also announced several contracts of Pool and maintenance services for air companies such as KLM Cityhopper, CommutAir, and Porter Airlines, including 11 new clients in the Pool Program and 12 renewals. Lastly, for this year we will continue to be attentive to possible developments of the pandemic, and, at the same time, we will keep focus on the evolution of our strategic plan, speeding up Embraer’s growth and its profitability improvement. The Board has been monitoring the development of the conflict between Russia and Ukraine and its potential impacts on the Company’s operations, its customers, and its suppliers. Despite the challenges, we are very confident in our journey of evolution. We have a clear vision, a robust plan, and discipline in the execution, and, most importantly, a team that is united and very committed to the sustainable growth of our Company, towards higher flights. Francisco Gomes Neto Embraer Chief Executive Officer Alexandre Silva Chairman of the Board of Directors CLICK TO GO TO THE DESIRED SUBJECT All pages in this document are browsable: menus and pagination. I N D E X 06 About EMBRAER 12 Fit For Growth & FINANCIAL PERFORMANCE 15 ESG - Commitment to the FUTURE 32 INNOVATION 42 BUSINESS Units Introduction ......................................... 07 Introduction ......................................... 13 ESG Introduction ................................. 16 Introduction .......................................... 33 Introduction ..........................................43 Where we are .......................................08 Operational Result ............................. 14 Environmental Commitment ..............17 Innovation Strategy ............................. 34 Commercial Aviation ...........................44 Our values ............................................09 Timeline ................................................ 10 Commitment to a more diverse and inclusive society ................................ 21 Partnerships with universities and research centers around the world . 35 Commitment to ethics and transparency ........................................ 30 Innovation Culture ...............................37 New markets: EmbraerX .................... 38 Beacon ................................................... 39 Eve Air Mobility .................................... 40 Executive Aviation ............................... 47 Defense & Security ..............................52 Services & Support .............................55 Agricultural Aviation .......................... 60 About EMBRAER 6 ABOUT EMBRAER Embraer is one of the largest aerospace and defense conglomerates in the world. Every 10 seconds on average an aircraft manufactured by the company takes off from some airport, carrying more than 145 million passengers annually around the planet. A leader in the segments in which it operates in Commercial Aviation, Executive Aviation, Defense & Security, and Services & Support markets, and with more than 8,000 aircraft produced and delivered in the course of its history, Embraer is an exponent of innovation since its inception in 1969, and such strength is its fundamental pillar for sustainable growth. That is why the company encourages an ecosystem for the generation and spread of knowledge which in turn fosters the quality of their collaborators’ development, increases competitivity in the national aeronautical industry, promotes scientific development and positively impacts society as a whole. COLLABORATORS Embraer is the leading exporter of goods with high added value in Brazil, with industrial operations, offices, service and distribution centers in the Americas, Middle East, Africa, Asia, and Europe. 7 7 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEORDER PORTFOLIO 2021US$ 17 BILLIONOne of the leaders in the aerospace and defense industryAROUND18,000 ABOUT EMBRAER Where we are 8 8 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEMexicoChihuahuaSubsidiary:EzAirPortugalÉvora Subsidiary:OGMAUnited StatesMesa Nashville Melbourne Irwindale Windsor LocksFort Lauderdale Jacksonville Memphis DallasTitusvilleBrazilSão José dos CamposGavião PeixotoBotucatuTaubatéBrasíliaBelo HorizonteSão PauloRio de JaneiroSorocabaCampinasFlorianópolisSubsidiaries:AtechVisionaTempestUnited KingdomFarnboroughIrelandDublinArab EmiratesDubaiChinaBeijingSingaporeSingaporeFranceLe BourgetNetherlandsAmsterdam ABOUT EMBRAER Embraer’s values were built collectively, engaging collaborators all over the world, and bring the deepest and most integrative view of what is at the company’s core. They make for a solid ground, based on ethics and integrity, from which Embraer will always develop science and technology, generating value to its clients, shareholders, collaborators, the society and other stakeholders. Ethics and integrity are in everything we do Our people are what makes us fly We exist to serve our customers We seek corporate excellence From the simplest activity to the greatest achievements. We follow the rules and we question when necessary, always in pursuit of what is right and better for society, for the company and for all. Happy, competent, valued people who are committed to what they do. People who work as a team and act with integrity, coherence, respect, and mutual confidence. Conquer of customer loyalty by means of their complete satisfaction and the building of strong and lasting relationships. Establishment of partnerships based on real commitment and flexibility. Corporate action oriented to simplicity, agility, flexibility, and safety, continuously looking for ongoing improvement and excellence. Entrepreneurial attitude based on integrated planning, responsible delegation, and disciplined execution. Boldness and innovation are our mark Technological vanguard, an organization that is continuously learning, capacity of innovating, transforming internal reality and influencing the markets in which it operates. Strategic vision and ability to creatively and boldly overcome challenges. Global action is our frontier We build a sustainable future Global thinking and presence, with local actions as competitive levers, through the use of what is best in each location. A vision of a world without borders and appreciation of diversity. Relentless search for laying the grounds of an everlasting company that is profitable to its shareholders and respectful to quality of life, the environment, and society. 9 9 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEEmbraer’s essenceOur values ABOUT EMBRAER How we got here 10 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCETimeline ABOUT EMBRAER 11 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE Fit For Growth & FINANCIAL Performance 12 FIT FOR GROWTH FINANCIAL PERFORMANCE Fit For Growth & financial performance Embraer kept its focus on the execution of its strategic plan, Fit For Growth, and presented an improvement in its financial performance compared to 2020. With this result, we fulfilled the net revenue estimate disclosed to the market and closed the year with a US$ 3.3 billion market value, compared to US$ 1.3 billion registered the previous year. Learn more: Strategic Plan Fit For Growth Relationship with Investors 13 13 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEDELIVERED IN 2021141 AIRCRAFT Operational Result Adjusted operational result was US$ 167 million and adjusted operational margin (EBITDA) was 4.0%. Increase in total volume of delivered aircraft and the growth in Services & Support revenue, combined with cost controlling measures, largely explain the improvement in rentability when compared to 2020. Adjusted EBITDA in 2021 was US$ 363 million and adjusted percentage margin was 343% higher than in 2020, with an adjusted EBITDA margin of 8.6%. The company stock, listed on the São Paulo Exchange (B3) and the New York Stock Exchange (NYSE), closed 2021 with an appreciation of respectively 180% and 160%, having the higher appreciation percentage among all companies listed on Ibovespa (index of most traded shares at B3). FIT FOR GROWTH FINANCIAL PERFORMANCE Revenue per segment Net Revenue US$ Billions Revenue per region Net Revenue US$ Billions 3.8 24% 17% 23% 30% 4.2 27% 14% 27% 32% 2% 3.8 3% 4% 10% 14% 67% 1% 4.2 4% 5% 11% 27% 52% 2020 2021 2020 2021 Commercial Aviation Executive Aviation Defense & Security Services & Support North America Europe Brazil Asia-Pacific Latin America Others 14 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE11% higher than 2020US$ 4.2 BILLIONTOTAL NET REVENUE Commitment to the FUTURE 15 COMMITMENT TO THE FUTURE Embraer keeps its gaze on the future and has always had in mind its role to leave a positive legacy for future generations. The year 2021 was marked by the officialization of important commitments and new ESG long-term goals, focusing on decarbonization and reinforcing its historic action in social responsibility. E / Environment S / Diversity, Inclusion, and Education G / Governance Robust Ethics and Compliance program, fully aligned to global norms. Keeping the highest international Governance standards. Keeping higher- than-80% approval rate of students from Embraer high schools in public universities. Carbon neutral growth from 2022 on. Commitment to reaching 50% of diversity in hirings across all company’s entry programs until 2025. Promoting professional qualification in the technology area for 1,500 people of minority groups until 2025 with the Social Tech Program. 100% of electric energy coming from renewable sources until 2030. Carbon-neutral operations by 2040. Products for a zero-carbon aviation by 2050. 2022 2025 2030 2040 2050 Ongoing training on Diversity & Inclusion for 100% of the leadership functions until 2021 and for all collaborators by 2022. Keeping our products’ high safety standards and fully aligning to international requirements. Reaching 25% of women in Embraer’s aeronautical engineering master’s program until 2025. Reaching 20% of women in senior leadership functions until 2025. Click and access our Sustainability Indicators 16 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE COMMITMENT TO THE FUTURE Environmental commitment GOALS Carbon-neutral growth from 2022 on Carbon-neutral in operations until 2040 100% of electric energy coming from renewable sources by 2030 Products for zero-carbon aviation until 2050 “ At Embraer we recognize the urgency of the climate crisis, and we are fully committed to a more sustainable future. We intensified our efforts to minimize our carbon footprint by remaining dedicated to innovative solutions which have a broader impact to our clients, local communities and our aircraft. “ — Francisco Gomes Neto, Embraer Chief Executive Officer — ESG Flight Plane event - Best moments Click and access our Sustainability Indicators 17 17 17 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE COMMITMENT TO THE FUTURE Environmental commitment LAUNCH OF ENERGIA FAMILY In 2021 we announced a concept family of commercial aircraft of low and zero emission, comprised of four models of different ranges and number of seats, which incorporate new propulsion technologies: hybrid electric, 100% electric, hydrogen fuel cell and gas bi-fuel turbine (hydrogen or SAF/JetA). This new product family strengthens Embraer’s commitment to the environment established with the aeronautical industry to reduce carbon emission to zero until 2050. Learn more: Meet Energia Family Support to the global pact for zero carbon emission Our commitment to carbon-neutral operations 18 18 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEEMBRAER’S ESG COMMITMENT, UNTIL 2050ZEROCARBONEMISSION COMMITMENT TO THE FUTURE Environmental commitment EVTOL DEVELOPMENT Through Eve Air Mobility, an independent company created to accelerate the future of urban air mobility, Embraer moved forward in the development of eVTOL. The 100% electric vertical take-off and landing vehicle with low noise has a simple and user-centered design. Learn more: eveairmobility.com 19 19 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE COMMITMENT TO THE FUTURE Environmental commitment FIRST FLIGHT OF THE ELECTRICAL DEMONSTRATOR NEW GENERATION TURBO-PROPLELLER Embraer set an important historical milestone by conducting the first flight of a 100% electric-driven aircraft. The technological demonstration prototype uses the EMB 203 Ipanema’s platform, and it is an important tool to speed up knowledge in the aeronautical electrification area, which can be applied to future projects. Embraer is moving forward in its proposal for the development of a new commercial turbo-propelled aircraft, focused on the development of the short-range market and with a capacity between 70 and 90 seats. The new generation aircraft will reduce operational costs by up to 15% and it will be up to 20% faster than the model currently in the market, offering more comfort to the passengers. The goal is for the project to be 100% compatible with sustainable aviation fuels and to facilitate its integration with future hydrogen-driven technologies. Learn more: Electrical Demonstrator aircraft’s rehearsals Our new proposal for a turboprop 20 20 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE COMMITMENT TO THE FUTURE Commitment to a more diverse and inclusive society SOCIAL GOALS Ongoing training in Diversity & Inclusion for 100% of the leadership positions until 2022. Reaching 20% of women in leadership positions until 2025. Commitment to reach 50% of diversity in hirings across all company’s entry programs until 2025. Reaching 25% of women in the aeronautical engineering master’s program until 2025. Keeping approval higher than 80% of students from the Embraer high schools in public universities. Promoting professional qualification in the technology area for 1,500 people from minority groups until 2025 by means of the Social Tech Program. Click and access our Sustainability Indicators 21 21 21 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE COMMITMENT TO THE FUTURE Embraer believes that each professional is a protagonist of their own career and the continuous investment in training and qualifying people will always be a competitive differential. The company fosters an ecosystem of generation and spread of knowledge through partnerships and education initiatives, and the qualification of new talents who are encouraged to create the most innovative products in the history of the future. Embraer internship Social Tech Young Aprentice Leader Engineering Embraer Designer Engineering PEE EMPOWER Operations Supply Chain Embraer on route to diversity Partners of knowledge Business Corporate Languages Embraer offers educational programs throughout the year, always attentive to people’s different career stages and to plurality. For all those programs, it makes an effort to ensure the representativeness of minority groups, and it works with an agenda aligned to the strategic goals of the company, supported by an active and continuous learning process. Educational Programs Strategic Academies 22 22 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEEducation ecosystemACCELERATING CAREERS COMMITMENT TO THE FUTURE PEE COMPLETES TWO DECADES SOFTWARE SPECIALIZATION PROGRAM Embraer’s Engineering Specialization Program (PEE, Programa de Especialização em Engenharia) completed two decades in operation in 2021. The master’s in aeronautical engineering is carried out with the Aeronautical Technological Institute (ITA, Instituto Tecnológico de Aeronáutica) and strenghtens Embraer’s engineering culture of a holistic, flexible, creative, and collaborative vision. • More than 1,600 PEE’s graduates • 96% talent retention rate at the end of the program Launched in 2021, the Software Specialization Program, a fast-growing professional area in Brazil and in the world, aims to accelerate the formation of specialists to work in the aerospace sector. In partnership with Universidade Federal de Pernambuco (UFPE), the initiative monitors the speed of digital transformations and the strategic need to develop agile educational programs to attract and qualify talents who wish to associate personal development with a career opportunity in a challenging environment such as the one Embraer offers. Learn more: 20th anniversary celebration Learn more: Program Launch 23 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEAccelerating careers COMMITMENT TO THE FUTURE INCLUSIVE AND TECHNOLOGICAL The Social Tech program, created in partnership with the Instituto de Gestão e Tecnologia da Informação (IGTI), is an educational initiative directed to people with disabilities who are interested in developing their careers in the Data Analysis area. Through the program, one of Embraer’s ESG goals will promote the professional qualification of 1,500 people from minority groups until 2025. Each class in the program lasts for three months, with 160 hours of remote classes, and uses the bootcamp methodology for an immersive and accelerated training, in which the participants attend technology courses and deal with the challenges in programming and project execution. The participation in the program opens the possibility of hiring for several areas at Embraer, with a minimum expectation of 50 positions. Learn more: Social Tech 24 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEAccelerating careers300STUDENTSIN SOCIAL TECH’S FIRST CLASS1,200ENROLLEDTOTAL CANDIDATES FOR THE 1ST CLASS21STATESIN BRAZIL WERE REPRESENTED IN THE 1ST CLASS30%OF WOMENAMONG APPROVED CANDIDATES COMMITMENT TO THE FUTURE 20 YEARS TRANSFORMING THROUGH EDUCATION Instituto Embraer consolidates the private social investment done by the company in Brazil and works on three fronts: education, engaging society and preserving the aeronautical memory. In 2021, even with the remote learning challenges, Embraer High Schools upheld their quality in hybrid teaching and registered 84% of approval in public or private universities with a scholarship. More than 600 volunteers engaged in social activities, especially virtual mentoring for students, numbering around 5,000 hours. Learn about the story of a former student who graduated in Engineering in the USA. 25 25 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEGlobal Corporate Social Responsibility4,400GRADUATEDSTUDENTSAT EMBRAER HIGH SCHOOLSMORE THAN COMMITMENT TO THE FUTURE EMBRAER FOUNDATION Embraer’s strong presence in the United States resulted in the company’s consolidation of its strategy for corporate social responsibility world-wide in 2016, by creating the Embraer Foundation. Just as Instituto Embraer, the Foundation operates on three fronts: volunteering, social and environmental partnerships, and entrepreneurship. These pillars are in line with the company’s global strategy for social responsibility and observe the distinctive features of social investment in the United States. In 2021, more than 300 volunteers engaged in social activities, totaling around 2,400 hours. In the partnerships pillar, 26 organizations received support from Embraer Foundation for project execution. IN 2021, MORE THAN 300 VOLUNTEERS ENGAGED IN SOCIAL ACTIVITIES Learn more: Embraer Foundation 26 26 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE COMMITMENT TO THE FUTURE Diversity & Inclusion EMBRACE: The company continuously seeks to build diverse teams that are representative and value every person’s distinctiveness. In 2021, the appreciation of equality in the company was reinforced by several initiatives. A global volunteering movement of Embraer’s collaborators which represents the minority groups of Women, Ethnicity, LGBTQIA+, and People with Disabilities, and fosters an agenda of diversity, inclusion, and equality across the company. At the end of 2021, EMBRACE had more than 600 members. GLOBAL MAPPING ON DIVERSITY, EQUALITY, AND INCLUSION In order to increase understanding of diversity in the company and capture its collaborators’ perceptions, Embraer carried out an internal survey in its sites located in Brazil and the United States, whose results bring an important input for the company’s future actions. More than 8,500 people participated in this first phase, which will be supplemented in 2022, with the questionnaire being applied to sites in Europe. TRAINING FOR MORE THAN 80% OF THE GLOBAL LEADERSHIP Embraer promoted leadership awareness about Diversity, Equality, and Inclusion. Regarding collaborators’ awareness, weeks of celebration and reflection about the struggle of some minority groups were organized, encouraging the collaborators’ involvement in internal campaigns and training sessions, according to the professional development proposal. 27 27 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE The Brazilian Air Force used the C-390 Millennium multi-mission aircraft for the transport of oxygen cylinders to Manaus and the delivery of more than 44 tons of vaccines, among other supplies, in several cities in Brazil COMMITMENT TO THE FUTURE Committed to life OUR CONTRIBUTION DURING THE PANDEMIC Embraer promoted a safe working environment, with strict protocols against Covid-19, awareness campaigns about prevention and vaccination initiatives, as well as important digital transformations to maintain efficiency of remote work. Access to the company’s facilities remained restricted to ensure proper social distancing and minimize commuting, in accordance with WHO’s recommendations. This accelerated the studies on the “Future of Work” and the global trend, and digital tools were optimized and deployed to leverage communication and productivity, enabling roughly 70% of the collaborators to carry out their activities remotely or in a hybrid fashion. 28 28 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE COMMITMENT TO THE FUTURE Considering the continuity of remote work, Embraer performed a global mapping of the teams’ expectations about the new models of work, created an allowance to support part of the costs of those who are in a home office, and offered all collaborators a series of training sessions dedicated to the themes of remote work and mental health, in addition to discussions on this subject directed to the leaders. Externally, Embraer contributed to the hospital industry, mobilizing its supply chain to produce components, as well as supported the project for the development of exhausters to quickly convert conventional hospital beds into ICU ones. The company took part in efforts to donate equipment such as oximeters, an important resource for an early diagnosis of the virus, in collaboration with the campaign designed by the Brazilian Society of Infectiology (SBI, Sociedade Brasileira de Infectologia) and by Instituto Estáter. Furthermore, it provided the technical specifications so that clients from several segments could develop procedures for the transport of vaccines and aircraft cabin disinfection. Learn more: Embraer helps in the aerial private transport of vaccines against Covid-19 Embraer releases guidelines for cleaning commercial aircraft DONATIONS Instituto Embraer, responsible for consolidating Embraer’s private social investment in Brazil, made its own financial donations as wells as volunteers’ ones to take basic shopping baskets to the families which were most impacted by the pandemic, in collaboration with an initiative by the NGO Gerando Falcões, which impacted more than 85,000 families in Brazil. 29 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE COMMITMENT TO THE FUTURE Governance: Commitment to ethics and transparency Click and access our Sustainability Indicators CORPORATE GOVERNANCE GOALS Continuity of the robust Ethics and Compliance Program, totally in line with global norms. Maintenance of the highest international standards of Governance. Maintenance of the high safety standards of our products, totally in line with the international requirements. 30 30 30 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE COMMITMENT TO THE FUTURE Governance: Commitment to ethics and transparency Embraer’s corporate governance model was established to ensure a corporate management focused on sustainable growth and business continuity. It is guided by integrity and meets the highest market standards. COMPLIANCE PROGRAM OPERATIONAL SAFETY The Ethics & Compliance Program is based on core elements, such as the maintenance of a responsible organization and structure through leadership, the ongoing risk management, the definition of appropriate policies and standards for internal controls, the training and communication with their audiences, as well as the monitoring and auditing processes and reporting channels for assessment and verification of potential cases of misconduct or deviation from the established procedures. Embraer continuously invests in collaborators’ and business partners’ training about the subjects of ethics and business integrity, allowing the company to continue improving and expanding its global Compliance program in all its operations and countries in which it is present. Learn more: Governance Portal Governance Indicators Embraer actively participates in the evolution of Operational Safety of world aviation and monitors activities focusing on accident prevention and investigation. Always present in the regulatory groups, associations and committees of the aeronautical sector, the company has a global Operational Safety Program in its units, enforcing the application of the best practices defined in Brazil and in the world. In 2021, answering an invitation of the US regulatory agency FAA, Embraer was a volunteer in the deployment of a pioneer system for operational safety management in Melbourne, USA. 31 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE INNOVATION 32 INNOVATION Awarded as the most innovative company in Brazil for the fifth time, Embraer is recognized for seeking increasingly intelligent and agile solutions for a sustainable future in aviation. In 2021, around 51% of the company’s revenue came from innovations that took place over the last five years. That shows the strategic relevance of keeping an active innovation environment, on behalf of long-term competitivity. At Embraer, innovation happens all the time and in dimensions transversal to the value chain: innovations in products, services, processes, new businesses, and entrepreneurial innovations. Even with the pandemic, the investment in technological development and innovation was kept stable, at around 6% of the annual income. 33 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEINNOVATIVEBRAZIL’S MOSTCOMPANY FOR THE 5TH TIME They integrate and accelerate value generation in the business units, subsidiary companies, and EmbraerX. These are the eight innovation verticals: Embraer works in innovation on three fronts: incremental, which seeks the evolution of already consolidated technologies; adjacent, bringing innovation and advancements to existing products; and transformational, creating technologies and markets non-existent as yet, with a potential for exponential growth. The company believes that innovation is essential for competitivity and the future growth of the business, and because of that it created a board of directors dedicated solely to the subject, which encompasses all its operation and products and reports daily to the Chief Executive Officer. To organize and prioritize its innovation efforts, Embraer created the Innovation Verticals, priority subjects for research, technology, and innovation. INNOVATION 34 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEInnovation strategy INNOVATION WORLD BRAZIL Partnerships with universities and research centers around the world To strengthen Embraer’s participation in research, the company also establishes partnerships with organizations that are references in the world, comprising a very wide range of technologies. In 2021, focusing on a more sustainable world for global aviation, 46 new entities signed cooperation agreements for research with Embraer. 35 35 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE INVESTMENT IN STARTUPS Corporate Venture Capital (CVC), a corporate venture capital investment vehicle, is an approach that allows for investment in adjacent and transformational initiatives, in an agile way, with the leverage of external resources and sharing of risks. In 2014, we started the operation of Embraer’s first CVC fund, FIP Aeroespacial, bringing in three institutional investors in addition to Embraer, BNDES, FINEP and Desenvolve SP. In 2018, Embraer entered the Silicon Valley-based Catapult Ventures fund, broadening the geographical reach of its investment operations in high technology and innovation. This way, FIP Aeroespacial and Catapult are linked to Embraer Ventures Fund, which orchestrates the CVC strategy at Embraer. Embraer Ventures allows the company to strategically invest in minority participations in startups. An example is the consolidation of the cybersecurity strategy, which began with applications in startups by FIP Aeroespacial and culminated in Embraer’s majority investment in Tempest in 2020, today the largest Brazilian cybersecurity company, with customers in Brazil, Latin America and Europe. IN 2021, TEMPEST BROKE REVENUE RECORDS, REGISTERING A 40% GROWTH COMPARED TO 2020, EXPANDING ITS BASE TO +300 CLIENTS THROUGHOUT THE YEAR, A 242% GROWTH WHEN COMPARED TO THE PREVIOUS YEAR INNOVATION In 2021, through the Catapult Fund, Embraer invested in the American company Pyka and entered a partnership to accelerate the future of autonomous agricultural spraying. The collaboration is focused on technology, certification, operation and future commercialization of the Pelican, a fully electric and autonomous fixed-wing agricultural aircraft developed by Pyka. 36 36 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE INNOVATION Culture of innovation INNOVA PROGRAM Innova is the vehicle for disseminating culture and fostering innovation throughout the company. Its programs are open to any and all collaborators who are willing to seek innovative and disruptive solutions and encourage the generation of ideas in the company. GREEN LIGHT: INNOVA CHALLENGE: STARTUP PROGRAM An entrepreneurship program that evaluates innovative proposals submitted voluntarily by collaborators and provides time, technical and business guidance and resources for them to carry out the idea until its technical and economic feasibility is proven. In 2021, 48 innovative projects were simultaneously under development, including the FIP Aerospacial, created within the program. Innova Challenge is a crowdsourcing initiative that encourages the development of ideas for solving problems and challenges in different departments of the company. In addition, it promotes cultural events such as “Innovation Day”, for sharing knowledge and innovation practices. In 2021, participants were challenged with two themes, one linked to sustainable technologies and the other to artificial intelligence. It is an agile process for contracting services and plug & play solutions that aims to foster a culture of innovation among collaborators, who come into contact with new technologies in the startup ecosystem in search of efficient solutions. Taking into account the diversity and inclusion agenda, in 2021, Embraer hired a startup focused on supporting recruitment and training for people with disabilities. +2,000 COLLABORATORS PARTICIPATED IN THE INNOVATION DAY EVENT IN 2021 37 37 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE EmbraerX is the agent of Embraer’s disruptive innovation, focused on the future of air mobility and new markets. The accelerator has a strong international presence and is in innovation hubs such as Silicon Valley, Boston, and the Florida Space Coast, with operational activities connected to the company’s hub at its headquarters in Brazil. It works on network in the innovation ecosystem, with projects under study or under development for different global markets, such as cybersecurity, computer vision, digital transformation, robotics, artificial intelligence, automation, imaging, internet of things (IoT) and unmanned vehicles, among others, exploring business models with exponential growth potential In 2021, EmbraerX began capturing new projects, after the success of Eve and Beacon, targeting routes beyond aviation. Agreements, partnerships, and venture investments in startups are part of EmbraerX’s innovation strategy, currently connected to two investment and equity funds (FIP), one based in Silicon Valley, focused on disruptive technologies, and another in Brazil, the FIP Aeroespacial, in partnership with BNDES, FINEP and Desenvolve SP. Learn more: EmbraerX Site INNOVATION 38 38 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCENew markets with EmbraerXIN SEARCH OF THE NEXT CHALLENGE Beacon is the first agnostic maintenance solution incubated by EmbraerX, designed to assist in the maintenance of aircraft of all kinds, from any manufacturer. Beacon is a digital business platform created to connect professionals and companies in the aeronautical services ecosystem. The platform focuses at first on providing solutions for unplanned aircraft maintenance interruptions, generating earnings for all stakeholders: airline companies, maintenance providers, mechanics, and passengers. In 2021, Beacon reached 65,000 unplanned interruption cases needing quick maintenance services, in 2,400 aircraft, with more than 1,300 active members and presence in over 190 airports. Learn more: Contract with MRT Agreement with Inflite The Jet Centre Contract with ABS Jets Link Contract with Republic Airways INNOVATION 39 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEBeaconREVOLUTIONARY CONNECTION INNOVATION The development of new disruptive businesses enabled the emergence of several innovations, notably the creation of Eve Urban Air Mobility Solutions Inc., to accelerate the development of the Urban Air Mobility ecosystem. As a new and independent company, Eve benefits from a startup mindset and all of Embraer’s experience to develop and enable the urban air mobility market. It plans to reach US$1.1 billion in revenue by 2027 and US$4.5 billion in 2030. Eve presents a unique value proposition, offering a suite of products and services that includes the eVTOL, a human-centric electric vertical take-off and landing vehicle with a simple and intuitive design. The first deliveries are scheduled for 2026. In 2021, the business combination agreement with Zanite Acquisition Corp. (Zanite) was confirmed. After the completion of the transaction, scheduled for the first half of 2022, Zanite will change its name to Eve Holding, Inc. and will be listed on the New York Stock Exchange (NYSE), with Embraer as its majority shareholder, with an interest of approximately 82% in the company’s capital. Transaction values give Eve a valuation of approximately USD 2.4 billion, and an equity value close to USD 2.9 billion. 40 40 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEEVETHE FIRST SPIN-OFF IN EMBRAER’S HISTORY INNOVATION GRI 102-14 / GRI 102-28 / GRI 102-14 DEMOCRATIZING AIR TRANSPORT Dedicated to accelerating the entire Urban Air Mobility ecosystem, Eve will also work together with a global service and support network and a unique air traffic management solution. Eve ended 2021 with 17 publicly announced customers, across operators and ride-sharing platforms, with potential orders for 1,735 vehicles valued at $5.2 billion. Much more efficient than a helicopter, with 80% less noise, zero carbon emissions and 65% lower operating cost. Electric vehicle with innovative design and distributed propulsion. Simple, intuitive, and inclusive, user-centric design. Propulsion system, with eight electric rotors for vertical propulsion and two for horizontal propulsion, providing high levels of safety and efficiency. FROM BARRA DA TIJUCA TO RIOGALEÃO AIRPORT Galeão Barra It initially accommodates five people per trip, one pilot and four passengers, and in the future, with the arrival of autonomous versions, it will accommodate up to six passengers. Learn more: Investor Day Event Video LinkedIn Twitter Instagram YouTube 41 41 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE1h30WHILE BY CAR IT WOULD TAKE YOU APPROX.15 MINARRIVE FLYING, IN BUSINESS Units 42 COMMERCIAL AVIATION EXECUTIVE AVIATION Manufactures regional aircraft with up to 150 seats, a market in which it is the leader, including E-Jet E2 aircraft, considered the most sustainable aircraft in the segment. Produces the Phenom 100EV, Phenom 300E, Praetor 500 and Praetor 600 executive jets, with capacities between 4 and 12 occupants. The Phenom 300E jet, a market leader for 9 years, is highlighted. DEFENSE & SECURITY AGRICULTURAL AVIATION Develops the military aircraft C-390 Millennium, A-29 Super Tucano, and P600 AEW&C, in addition to radars, air control systems, satellites, and cybersecurity systems, among others. Makes the agricultural spraying aircraft Ipanema 203, the only one which is mass-produced in the world and which flies using ethanol as fuel, with less CO2 emission than its competitors. BUSINESS UNITS SERVICES & SUPPORT Provides post-sale and technical support services to all Embraer products, from all business units, operating Contact Centers active 24 hours a day, 365 days a year, and having a support team with global presence. 43 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE Commercial Aviation BUSINESS UNITS Embraer has conquered and remains a global leader in the segment of jets with up to 150 seats, proud to contribute to regional aviation’s history and advancement, as one of the leading players in this segment since the company’s inception. In 2021, Embraer leveraged new opportunities and consolidated its position in important markets. The growing resumption of flights after the Covid-19 pandemic, especially the regional ones, created opportunities that the company is taking advantage of, with great expansion potential to be explored over the next five years. Furthermore, Embraer and Pratt & Whitney work in partnership, joining their technical skills with multi- disciplinary teams, to continuously improve the aircraft and engine efficiency, in addition to allowing full and efficient use of SAF (sustainable aviation fuel). Produced from sustainable raw materials, SAF can currently reduce CO2 emissions by up to 80% when compared to traditional aviation fossil fuel. 44 44 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE BUSINESS UNITS Learn more: Breeze Airways Horizon Air Skywest 45 45 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEE1’s consolidation in North American market10 E190 AND 3 E195. THE NORTH AMERICAN COMPANY WAS LAUNCHED IN MAY 2021 BY DAVID NEELEMAN, FOUNDER OFJETBLUE AND AZUL LINHAS AÉREAS.08ONE OF THE LARGEST REGIONAL OPERATORS IN THE USA09SUBSIDIARY OF ALASKA AIR GROUP13NEW E-JETSFOR BREEZE AIRWAYSNEW E175 JETSFOR HORIZON AIRNEW E175 JETSFOR SKYWEST BUSINESS UNITS GLOBAL RPK (REVENUE PER PASSENGER PER KILOMETER) EXPECTED ANNUALY UNTIL 2040 That document presents updated market perspectives for the delivery of commercial aircraft until 2040, guided by Environment, Digitalization, and Regionalization trends. According to Embraer’s forecast, global RPK should grow 3.3% yearly until 2040, returning to 2019 levels by 2024, requiring 10,900 new aircraft for up to 150 seats. Learn more: Embraer publishes its market perspectives for the next 20 years 46 46 Porter Airlines of Canada announced a solid order of 30 Embraer E195-E2 jets, with rights to buy 50 more aircraft in 2021. Porter Airlines thus became the North American launch client for Embraer’s newest jet family, the E2. Learn more: Porter Airlines orders 80 Embraer jets ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEAgreement signing with Porter Airlines30NEW JETS E195-E2Publication inMarket Outlook 2021+3,3% Executive Aviation Executive Aviation resumed its growth in 2021, especially in the segments of light and medium jets, which cover flight distances that are less subject to mobility restrictions resulting from the Covid-19 pandemic. Inspired by the big challenges, Embraer creates today the future of executive aviation, by raising its products’ level and incorporating sustainable practices at the same time, thus completely redefining the comfort and performance executive jets can provide. Embraer also presents the broadest portfolio of executive jets in the market. The products are the result of a culture of continuous improvement, attention to detail, and willingness to exceed the limits of aeronautical engineering. BUSINESS UNITS 47 47 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE Phenom 100EV Phenom 300E BUSINESS UNITS Offers the experience of executive aviation in its purest form. The best-selling light jet of the decade. Praetor 500 Praetor 600 Praetor 500 and Praetor 600, which have the best range in their categories, dominate the market as the most innovative and technologically advanced aircraft of medium and super-medium size, capable of crossing continents and oceans, respectively. 48 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE BUSINESS UNITS 1º PHENOM 300E DUET Delivery of the first Phenom 300E limited edition Duet aircraft, which marks the first collaboration between leaders in the aviation and automotive markets, combining the fastest and widest range single-pilot executive jet with the Porsche 911 Turbo S, a reference in the sports cars market. In 2021, Embraer’s growth was even more significant in Executive Aviation, with a strong demand and record sales. PHENOM 300E It is the world’s best seller for the 9th year in a row and the most delivered twin-engine in 2021. Learn more: First Phenom 300 is delivered in Equador Phenom 300 is the world’s best seller light jet Learn more: First unit of the Phenom 300E’s limited edition created in partnership with Porsche is delivered by Embraer 49 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE93AIRCRAFTDELIVERED IN 2021600JETSDELIVERED EMBRAER AND AVFUEL BEGIN USING SAF AT US AIRPORT The companies signed an agreement to start using SAF (Sustainable Aviation Fuel) at the Orlando International Airport, in Melbourne, Florida. SAF is a fuel that can generate up to 80% less CO2 emissions, depending on its production and distribution chain. Embraer’s executive aircraft already use that fuel in demonstration flights, and the increase in its use is part of the company’s sustainability goals. Learn more: Embraer and Avfuel BUSINESS UNITS Delivery of the 1,500th executive jet to the Swiss chartering operator Haute Aviation. We reached 1,500 units sold in less than 20 years, while the industry average for achieving that mark is 34 years. The Phenom 300E can reach all Europe departing from Switzerland with full capacity, and it is faster than any other aircraft in the segment. There are more than 600 units already delivered in the world. Learn more: Embraer delivers 1,500 Phenom 300E to chartering operator in Switzerland 50 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE BUSINESS UNITS SALE AGREEMENT SIGNED FOR 100AIRCRAFT NETJETS Embraer and the largest shared ownership jet operator, NetJets, signed an agreement for the sale of up to 100 additional aircraft, totaling more than US$ 1.2 billion. Learn more: Embraer announces new agreement for the delivery of up to 100 new aircraft with NetJets 1ST PRAETOR 500 FOR BRAZIL Delivery of the first Praetor 500 for a Brazilian client, which now owns the entire executive jet portfolio operating in Brazil. 51 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE BUSINESS UNITS Defense & Security Embraer Defense & Security is a leader in the aerospace and defense industry in Latin America. With a growing participation in the global market, its products and solutions are present in more than 60 countries. In 2021 Embraer Defense & Security delivered 14 A-29 Super Tucano light attack aircraft, completing 260 units in more than 16 air forces, signed an agreement with Aerodata AG for the sale of a Praetor 600 aircraft, to be converted to a flight inspection aircraft, and signed a memorandum of understanding with the Brazilian Air Force (FAB) to develop an unmanned fighter with 100% national technology, an innovative enterprise that will bring a great advancement to the company, to FAB and to the Brazilian aerospace industry. Learn more: Memorandum for study of an unmanned aircraft is signed between Embraer and FAB Embraer signs memorandum for the research and development of new defense technologies with Dutch organization Qualification of on-the-fly refueling between two KC-390 Millennium aircraft is concluded by Embraer Signing of technical cooperation agreement between Embraer and the Brazilian Army establishes studies of battery-powered radar systems 52 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE Sky is not the limit, it’s the beginning. In addition to the A-29 Super Tucano aircraft, for light attack and advanced training, and the C-390 Millennium, for military multi- mission transport, Embraer Defense & Security offers a complete line of integrated solutions and Command and Control (C4I) applications, radars, ISR (Intelligence, Surveillance, and Reconnaissance), satellites and cybersecurity. That includes integrated systems of information, communication, monitoring and border vigilance, as well as aircraft for transport of authorities and special missions. In 2021, Embraer Defense & Security incorporated the operations of the subsidiary SAVIS, leader of the Tepro Consortium, responsible for the deployment of the SISFRON Project (Integrated Border Monitoring System), with the goal of increasing operational efficiency and strengthen the company’s product portfolio. BUSINESS UNITS 53 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCESAVIS Incorporation In 2021, Embraer Defense & Security presented (roll out) the M200 Vigilante radar, a surveillance equipment with cutting-edge technology to assist the country’s anti-aircraft defense units. Learn more: Embraer and Brazilian Army present national M200 Vigilante radar BUSINESS UNITS Atech received the Pro-Ethics seal, promoted by CGU and Ethos Institute, and was considered, for the 3rd year in a row, as a great place to work by the GPTW - Great Place to Work Institute. Visiona concluded the review of the Project for the ground segment of the VCUB-1, the first Brazilian imaging nanosatellite, and it also signed the warranty extension contract for the ground equipment of the SGDC (Geostationary Defense and Strategic Communications Satellite), strengthening the company’s important role in the program. 54 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCERoll Out M200 VIGILANTE RADARAffiliated Services & Support Embraer Services & Support develops solutions and services for Commercial Aviation, Executive Aviation, and Defense & Security clients. In total, more than 3,500 employees are spread all over the world providing support to our more than 4,350 aircraft in operation, in addition to radars. Embraer Services & Support offers a wide portfolio of services, through a team of specialized professionals, dedicated to serving our clients. BUSINESS UNITS 55 55 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE23%INCREASE IN REVENUECOMING FROM SERVICES& SUPPORT The Support & Services division offers solutions for maintenance, materials, modifications, training, and flight operations. It also has a network of its own units, authorized units, partners, and subsidiaries. In addition, it provides its clients with 24/7 service through dedicated contact centers. BUSINESS UNITS 56 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE75+SERVICECENTERSCOMPANY-OWNED AND AUTHORIZED75+FLIGHTSIMULATORS200+CAMS E FSRS CUSTOMERACCOUNTMANAGERSFIELD SERVICE REPRESENTATIVESAROUND THE WORLD COMMERCIAL AVIATION Learn more: Embraer and Porter Airlines sign Services & Support contract Embraer and Air Montenegro announce agreement for Pool Program Embraer and KLM announce agreement for Pool Program in the E195-E2 fleet BUSINESS UNITS 57 57 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEServices & Support200NEW AIRCRAFT COVERED BY THE FLIGHT HOURS PROGRAM11NEW CLIENTS IN THE POOL PROGRAM, TOTALING12CONTRACT RENEWALSOF THE POOL PROGRAM WITH AIRLINE COMPANIES85%FAVORABILITY IN SUPPORT CUSTOMER SATISFACTION SURVEYS The aircraft will be converted at Embraer Service Center in Fort Lauderdale, Florida. BUSINESS UNITS More than 795 new agreements signed, including inspections, aircraft improvement, and special programs. Launch of the TechPubs New Platform, a new platform for the management of aircraft technical publications, which provides customers with information anywhere, anytime. First place in customer service satisfaction survey on Professional Pilot Magazine, and third place on Aviation International News. All US service centers received for the eleventh time the FAA Diamond Award, a certificate of excellence related to training for maintenance technicians. Learn more: Embraer enhances its executive jet maintenance program Embraer expands its executive jet service network in the USA 58 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEExecutive AviationEMBRAER ANNOUNCES AGREEMENT WITH GRANDVIEW AVIATIONFOR THE CONVERSION OF THE PHENOM 300MED STC. Defense & Security ECTS Support to Brazilian Air Force missions for fighting Covid-19 with the KC-390 fleet. More than 300 flights were carried out. The joint-venture Embraer- CAE Training Services (ECTS) announced the deployment of a new complete flight simulator (FFS) for the Phenom 300E. BUSINESS UNITS Highlight in Aerospace & Defense Review as one of the “Top 10 Service Centers in Europe in 2021”. Delivery of customized services to clients such as the P-3 for the Portuguese Air Force, the C-130 for the Brazilian Air Force, in addition to EMB-145 deliveries. Learn more: Meet OGMA Learn more: Launch of the new Phenom 300E flight simulator 59 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEOGMA Agricutural Aviation A great ally of the Brazilian agribusiness due to its efficiency, productivity, economy, and robustness, the Ipanema 203 is a symbol of the Brazilian agricultural aviation tradition. The protagonism of this aircraft model in modern agriculture combines high technology and reliability of a product that is continuously evolving to meet the requirements of high productivity and low operational cost, especially when compared to other types of sprayers. BUSINESS UNITS 60 60 ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCEIPANEMA WAS THEBEST-SELLINGAIRCRAFT IN BRAZIL IN 2021 BUSINESS UNITS IPANEMA 100 The Ipanema EMB 203 aircraft number 100 was delivered in 2021. NATIONAL NETWORK National support network was expanded in 4%. Learn more: Embraer doubles number of sales of agricultural airplanes Embraer announces the sale of more than 19 Ipanema Agrícola aircraft 61 In 2021, Embraer’s Agricultural Aviation division delivered 42 Ipanema aircraft, an increase of 91% compared to 2020. Since 2005, Ipanema is powered by ethanol, having become the first Embraer aircraft certified and mass-produced to fly with renewable energy, leading a wide front of the company’s historical performance in research and utilization of biofuels in aviation. The aircraft is the market leader in the air spraying segment, with a national participation of 60% and almost 1,500 units delivered. ANNUAL REPORT / 2021ABOUT EMBRAERINNOVATIONCOMMITMENT TO THE FUTUREBUSINESS UNITSFIT FOR GROWTH FINANCIAL PERFORMANCE600IPANEMASALCOHOL-POWEREDPREVENTED THE EMISSION OF MORE THAN 330,000 TONS OF CO2 Click and access our Sustainability Indicators embraer.com 2 2 0 2 Y A M
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