Bombardier Analysis of Embraer's Financing Data

In light of recent public comments by Embraer S.A. on data used by Bombardier President and CEO Paul Tellier, Bombardier would like to release the public sources used to support its statement that "over 80%" of Embraer's deliveries over the last three years (2001-2003) received financing from Banco Nacional de Desenvolvimento Econômico e Social (BNDES).

Bombardier Sources for Embraer Regional Aircraft Sales Financing Analysis
For Fiscal Years 2000 to 2003

  2000 2001 2002 2003 TOTAL (2001-2003)
BDNE financing (millions $US) 1,4001 1,1552 1,8001 1,8003 4,755
Embraer regional jet deliveries (Units) 1574 1534 1214 875 361
Embraer regional jet sales ($ millions US) 2,4534 2,5534 2,1104 1,5666 6,229
Financing requirement at 85% of aircraft value7 ($ millions US) 2,085 2,170 1,794 1,331 5,294
% of Embraer deliveries financed         89.8 %8

1 Embraer Investor Relations, Investor Meeting Presentation, Nov. 20-21, 2003 (p. 25).
2 BNDES Annual Report, Dec. 31, 2001 (p. 15).
3 Mauricio Botelho as quoted in Jornal do Commercio do Rio de Janeiro article, Dec. 4, 2003.
4 Embraer SEC filing (20-F), Dec. 31st, 2002 (p. 38 and p. 40)
5 Embraer press release, Jan. 15, 2004.
6 Assuming an average selling price of $18M US/aircraft.
7 85% is the maximum loan-to-value ratio of Export Credit Agency financing allowed by OECD rules/WTO decisions.
8 Calculation: 4,755/5,294.

Source data available here

Bombardier remains committed to the ongoing bilateral negotiations between the Brazilian and Canadian governments, which seek to resolve the longstanding dispute over export sales financing.

About Bombardier
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2003, were $21.2 billion Cdn and its shares are traded on the Toronto, Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F). News and information are available at

N.B. Fiscal year 2002-03 revenues have been restated following the sale of the recreational products business.

For information:
Dominique Dionne
Vice President, Communications
+514 861-9481