WEG : and Embraer sign an agreement for technological cooperation in electric aeronautic…

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WEG and Embraer sign an agreement for technological cooperation in electric aeronautical propulsion systems

Jaragua do Sul, May 29, 2019 - WEG S.A. (B3: WEGE3 / OTC: WEGZY) and Embraer, two of Brazil's largest high-tech manufactured products exporters, announced today a scientific and technological cooperation agreement to jointly develop new technologies and solutions to enable electric propulsion in aircraft.

The partnership, in the context of pre-competitive research and development, seeks to accelerate the knowledge of the technologies necessary to increase the energy efficiency of aircraft from the use and integration of electric motors in innovative propulsion systems. The electrification process is part of a series of efforts carried out by the aeronautical industry aimed at ensuring its commitments to environmental sustainability, as is already being done with biofuels to reduce carbon emissions.

"By creating this technological development agreement with WEG, we have combined more than 100 years of innovation from two leading companies in generating knowledge and strengthening the supply chain, as well as increasing Brazilian competitiveness in the global market," said Daniel Moczydlower, Executive Vice President of Engineering and Technology at Embraer. "Advances in scientific research can make clean and renewable energy a major enabler of a new era of urban and regional air mobility that is more accessible to the population."

The cooperation between the research teams will support the creation of innovative technologies that can generate opportunities for future evolutions of new aeronautical configurations and the possibility of developing new market segments. Initiatives like this, combined with long-term incentive policies, also enhance Brazil's intent to become a world leader in sustainable technologies.

"Our powertrain technology, developed over years for tried and tested applications in trains, buses, trucks and boats, and in constant evolution, has paved the way for this exciting scientific and technological cooperation project. Together with Embraer we will work not only to enable the electric propulsion of aircraft, but also to increase the technological capacity of WEG, of Embraer and of Brazil, taking our country to an even more competitive level," says Manfred Peter Johann, Superintendent Director of WEG Automation.

After testing these technologies in the laboratory, an aeronautical platform will be used for integration and testing of complex systems under real operating conditions. A small single-engine aircraft, based on the EMB-203 Ipanema, will be used as the test bed, which will carry out the primary evaluation of the electrification technology. The first flight of the electric powered demonstrator is scheduled for 2020.

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The proposed scientific development of aeronautical electrification, using a technology demonstration platform, constitutes an effective and efficient pre-competitive research instrument for learning and training, as well as for the maturation of the technologies before they are applied in future products.

Embraer is committed to the open innovation model and maintains collaborations with dozens of universities and research centers in Brazil and abroad. Among the highlights are long-term partnerships with institutions such as FINEP, FAPESC, FAPESP, FAPEMIG and Embrapii, which are key to narrowing the gap between the scientific community and industry needs. By establishing strategic partnerships through more agile cooperation mechanisms, Embraer is stimulating knowledge networks to allow a significant increase in the country's competitiveness and the construction of a sustainable future.

Besides the robust structure, formed by 33 research, development and testing laboratories in the world, WEG count with 2,435 employees involved with R&DI activities. Outside the company have partnerships with universities, and start-ups in Brazil. WEG prepare ourselves for the future by developing solutions to meet the mega trends focused on electric mobility, energy efficiency, renewable energies and the Industry 4.0. In 2018, 43% of the revenue came from products developed within the last 5 years.

About WEG - Founded in 1961, WEG is a global electric-electronic equipment company, operating mainly in the capital goods sector with solutions in electric machines, automation and paints for several sectors, including infrastructure, steel, pulp and paper, oil and gas, mining, among many others.

WEG stands out in innovation by constantly developing solutions to meet the major trends in energy efficiency, renewable energy and electric mobility. With manufacturing units in 12 countries and present in more than 135 countries, the company has more than 30,000 employees worldwide. WEG's net revenue reached R$ 11.970 billion in 2018, 58% from external markets.

About Embraer - A global aerospace company headquartered in Brazil, Embraer celebrates its 50th anniversary with businesses in Commercial and Executive aviation, Defense & Security and Agricultural Aviation. The company designs, develops, manufactures and markets aircraft and systems, providing Services & Support to customers after-sales.

Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year.

Embraer is the leading manufacturer of commercial jets up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service and parts distribution centers, among other activities, across the Americas, Africa, Asia and Europe.

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Statements about Future Events

Certain statements herein contain projections or other forward-looking statements regarding future events. Any such statements are subject to known and unknown risks that may cause the actual results to be materially different from the expectations. Those risks include, among others, changes in the future demand for the products of the Company, changes in the factors that affect the domestic and international prices of the products, changes in the cost structures, changes in the markets, changes in the prices practiced by the competitors, exchange rate variations, changes in the political- economic scenario in Brazil and in emerging and international markets.

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