16% - Garuda Indonesia

Analyst Presentation
PT Garuda Indonesia (Persero) Tbk
15 January 2014
Delivering Indonesia’s Best to the World
0
Presenters
1
Emirsyah Satar
President & CEO
Handrito Hardjono
EVP Finance
 Joined GIAA in 2005
 9 years of experience in Garuda
 Joined GIAA in 1981
 33 years of experience in Garuda
Agenda
1. Industry Overview
2. Company Overview
3. Recent Developments
4. 9M-2013 Performance
5. Summary Profiles of Other Businesses
6. Indicative Structure & Timetable
IMPORTANT DISCLAIMER:
Information contained in this document has been prepared from several sources and the Company does not confirm the accuracy and
completeness of such data, particularly where the data is sourced from outside the Company. In addition, any forward looking
statements are subject to change as a result of market conditions and the final result may be different to that indicated. The Company
makes no representation or warranty of any type whatsoever on the accuracy or completion of the information contained herein.
2
1. Industry Overview
3
Asia Pacific will have the biggest Traffic by 2032
0.7
3.0
billion
2.4
billion
1.4
billion
1.3
billion
billion
1.6
billion
0.4
billion
0.4
billion
0.9
billion
0.3
billion
0.1
billion
2012
Source: Airbus-Global Market Forecast 2013-2032 (numbers rounded)
4
% of 2012 % of 2032
world RPK world RPK
2032
0.2
billion
1.5
billion
4.5
billion
Asia-Pacific
29%
34%
Europe
26%
22%
North
America
25%
18%
Middle East
8%
12%
Latin
America
5%
7%
CIS
4%
4%
Africa
3%
3%
IMF predicts until 2018 Indonesia will enjoy high economic growth
Indonesia is the biggest economy in ASEAN
400
100
50
200
-
-
(50)
Indonesia
Source: IMF-World Economic Outlook, October 2013
5
Thailand
Malaysia
Singapore Philippines Vietnam
GDP
Population
Brunei Cambodia
Darussalam
Source: The World Bank 2012 data, accessed in Oct 2013
7.6
Indonesia: 2nd Fastest GDP Growth
among G20 countries in 2013
5.3
China
Indonesia
India
Turkey
Saudi Arabia
3.5 3.6 3.8 3.8
Argentina
Korea
Australia
2.5 2.5 2.8
Brazil
South Africa
0.5
2.0 2.0
Japan
-1.8-0.4 0.2
1.6 1.6
1.2 1.4 1.5
United States
7.0
6.7
5.7
7.0
150
Canada
7.3
5.1
5.9
6.8
200
600
Russian Federation
7.5
7.9
7.1
5.5
250
800
United Kingdom
7.2
7.8
6.9
5.4
300
Mexico
3.5
6.0
5.2
5.5
3.9
4.7
1,000
Germany
6.2
5.5
4.9
6.0
3.4
5.2
Million people
USD billion
France
2018
European Union
2014
Italy
Annual % change
ASEAN-6 countries
Brunei
Indonesia
Malaysia
Philippines
Singapore
Thailand
CLMV countries
Cambodia
Lao PDR
Myanmar
Vietnam
China & India
China
India
ASEAN-10 average
CLMV average
Outlook of the Indonesia’s economy until 2030 is promising
2030
current
16th-largest
7th-largest
45 million
members of the
consuming class
135 million
55 million
skilled workers in the
Indonesian economy
113 million
$ 0.5 trillion
53% of the population in
cities producing 74% of GDP
6
economy in
the world
market opportunity
in consumer services,
agriculture &
fisheries, resources,
& education
$ 1.8 trillion
71% of the population in
cities producing 86% of GDP
Indonesia : Unique opportunity within Asia
Indonesia: Transportation profile (in million)


Most populous country in the South East Asia (4th largest in the world)
with people distributed across a number of medium - large cities and high
density provinces
Largest archipelago in the world lending greater importance to air travel;
potential for taking market-share from land / sea travel
2008
2012
CAGR
By Air
37.4
71.2
+17.5%
By Rail
194.1
202.2
+1.0%
By Sea
3.4
2.8
-4.7%
Monthly traffic statistic 2005-May 2013
Most populated cities in the region
Kuala Lumpur
1.6 million
Petaling
1.5 million
Sources: Bloomberg, Sep’ 2013
Indonesia: GDP per capita
Manila
1.7 million
Medan
2.0 million
3.5 3.6
4.1
3.0
Singapore
4.6 million
1.2 1.3
Jakarta &
surrounding area
12.0 million
3.8
1.6
1.9
2.2 2.3
Ujung Pandang
1.2 million
Surabaya
2.6 million
Source: IMF, World Economic Outlook (WEO), Apr 2013; World Bank
7
4.4
4.8
5.1
5.6
Passenger Growths
Source: IATA, WorldBank.org, Kemenhub, Investor Daily, 2013
8
Indonesia is forecasted to enjoy a solid air traffic growth for the next
three years after a robust economic growth outlook
 Domestic and International market size to grow at CAGRs of 15% and 10%, respectively, from 2004 – 2012
 GA’s Domestic and international market share expected to reach 34.4% and 25.9% in 2015, respectively, up from 21.5% and 15.1% in 2012
108.3
Domestic Market Size (million)
Premium
Budget Traveler
94.1
81.9
GA Pax
71.2
60.0
28.8
23.8
2004
2005
34.0
2006
39.2
2007
37.4
2008
43.8
2009
51.6
2010
2011
2012
2013F
International Market Size (million)
Business
Leisure
GA Pax
18.9
10.7
11.0
11.3
2004
2005
2006
13.2
2007
14.8
16.2
2008
2009
2010
21.7
2011
23.7
2012
25.7
2013F
2014F
27.9
2014F
2015F
30.0
2015F
Sources : Dephub, PT. AP I & II, IATA, PATA, Ministry Transportation, Garuda Forecast, 2013
9
In terms of air traffic, Indonesia has much room to grow
Population
Numbers are in million
Air Traffic
39 (722%)
42 (583%)
81 (355%)
5.4
7.2
22.8
Singapore
Hong Kong
Australia
94.9 * (39%)
171 (271%)
10
48 (166%)
63.1
29.0
UK
Malaysia
Indonesia
Sources: IATA, CAPA – Jun 2013
* DepHUb, IATA, PATA
24 new airports in 2013 - 2015
Kualanamu
Muarobungo
Enggano
Pekon Serai
2013  12 airports
11
Sumarorong
Tebelian
Muara Teweh
Bawean
Tojo Unauna
Bone
Buntu Kunik
2014  7 airports
Kamanap
Waisai
Miangas
Segun
Kuffar Seram
Tual Baru
Namniwel
Morowali
2015  5 airports
Moa
Waghete baru
Sinak baru
Saumlaki Baru
Werur
Sumber: Kementerian Perhubungan, 2013
In Summary : Indonesia has Large Market & Big Opportunity for Air Travel
12
Market
• Strong Economic Growth
• Large population
• Low air travel penetration
Traffic
• Robust demand in domestic traffic
• Growing international tourist traffic, by locals
and foreigners
Policy
• 2015: ASEAN Open Sky Policy
Competition
• High competition in LCC domestic segment
• High competition in FSC and LCC international
segment
Infrastructure
• Government priority to develop and
improved Airport and Aviation Infrastructures
in Indonesia
2. Company Overview
13
Flying High
1949
Avg. Age
11.5
 Established in 1949 with
first aircraft, Dakota DC-3
10.9
11.9
10.2
8.1
6.5
1956
 First Haji pilgrims flight
to Mecca
5.8
Avg.
Age
Pax
Number of Passengers
(millions)
1973
 First subsidiary “AWS”
added to the Group
Fleet Size
49
48
54
70
89
87
106
134
163
199
2010
2011
2012
2013E
2014E
Q
Q
2009
Q
2008
Q
2007
Q
2006
Q
2005
Q
1985
Q
 First deliveries of DC-10,
the first wide-body aircraft
Q
Q
1976
2015E
 New Corporate Identity
1990s
 Garuda Indonesia is
ranked among the top 30
carriers in the world
1995
 Subsidiary “Abacus DSI”
added to the Group
2002
 Subsidiary “GMF-AA”
added to the Group
14
2005
2007
 New
managem
ent takes
over and
begins
transforma
tion
 Profitability
improves
under new
manageme
nt with a
US$17
million
net income
2009
2010
2011
2012
 Received “Best
Debt Re
Structuring Deal
of the Year 2009
in South East
Asia” (1)
 Completed
debt
restructuring
 IPO
completion
 UPG as 3rd
hub
 Citilink
Brand
refresh
 25+25 A320
contract for
Citilink
 18+18
CRJ1000NG
 Global
Corporate
 Spin –off
Citilink
 Liverpol FC
 EY
Codeshare
 EU removed
Garuda from its
list of banned
airlines
 Achieved 4 star
Skytrack rating
 Awarded CAPA
Airline
Turnaround of
the Year
Garuda Indonesia Group 2013
Ops Revenue Contribution 9M2013
3%
Domestic
International
9%
Feeder
88%
Scheduled Airlines
Non-scheduled Airlines
Others
Key Subsidiaries & Associated Companies
Cargo
Hajj / Charter
Low Cost
Carries
Citilink
Indonesia
15
Hospitality
and Tourism
Aerowisata
MRO
Services
IT Services
GMF
AeroAsia
Aero
Systems
Global
Distribution
Systems
Abacus
Ground
Handling
Gapura
Angkasa
Board of Commissioner of PT Garuda Indonesia(PERSERO) Tbk
Bambang Susantono
16
Wendy Aritenang
President Commissioner
Commissioner
Betti Setiastuti Alisjahbana
Bagus Rumbogo
Independent Commissioner
Commissioner
Peter F. Gontha
Chris Kanter
Independent Commissioner
Independent Commissioner
Board of Director of PT Garuda Indonesia (PERSERO) Tbk
Emirsyah Satar
Handrito Hardjono
President & CEO
EVP Finance
Batara Silaban
Heriyanto Agung Putra
EVP Maintenance
EVP Human Capital & Corporate Affairs
& Fleet Managent
Erik Meijer
EVP Marketing & Sales
Judi Rifajantoro
EVP Strategy, Business Development
& Risk Management
17
Faik Fahmi
Novianto Herupratomo
EVP Services
EVP Operations
GA quality has been perceived better from year to year
 Since embarking on a transformation plan in 2005, GIAA has greatly improved its global
and regional rankings and won several international accolades in recognition of its quality
performance
World Airline Awards – Global Airline Rankings
2013
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Airline
Emirates
Qatar Airways*
Singapore Airlines*
ANA All Nippon Airways *
Asiana Airlines*
Cathay Pacific Airways*
Etihad Airways
Garuda Indonesia
Turkish Airlines
Qantas Airways
Lufthansa
EVA Air
Virgin Australia
Malaysia Airlines*
Thai Airways International
Swiss Int’l Air Lines
Korean Air
Air New Zealand
Hainan Airlines*
Air Canada
* Airlines with 5-star skytrax rating
18
2012
Rank
8
1
3
5
2
4
6
11
7
15
14
13
12
10
9
18
16
17
20
19
2011
Rank
10
1
2
11
3
4
6
19
9
8
15
16
32
12
5
13
24
7
23
21
World’s Best Economy Class 2013
Best Economy Class Airline Seat 2013
World Best Economy Class
2013
Rank
1
2
3
4
5
6
7
8
9
10
Airline
Garuda Indonesia
Asiana Airlines*
Singapore Airlines*
Qatar Airways*
ANA All Nippon Airways *
Cathay Pacific Airways*
Turkish Airlines
Emirates
Oman Air
Qantas Airways
2012
Rank
4
3
1
2
5
9
7
n/a
n/a
n/a
PASSENGER CHOICE
AWARDS 2013
Best in Region :
Asia and Australasia
55 Awards in 9M13:
-DOM: 36 awards
- INT’L: 19 awards
Operational and Safety Aspect
IOSA Renewal Certification Audit
•
Garuda is IOSA Certified since 2006 and on
August 25, 2012, the IOSA Registration has
been re-Registered up to 8 Sept 2014
•
Garuda Indonesia fully complies to global
best-practise standards in flight operations,
aircraft maintenance including
safety
management systems implementation .
FAA Technical Review on DGCA Indonesia
19
•
Garuda Indonesia was chosen as sampling
operator by FAA on 13 September 2012.
•
FAA comments ”Garuda Indonesia is good, very
professional, and impressive”.
Quantum Leap – 7 Strategies to Drive Growth
Management focuses on implementing the “Quantum Leap” with 7 main strategies to expand and
dominate the Indonesian aviation market.
2
1
Domestic
International
Grow and dominate
full-service
Enormous upside
potential
7
3
Human Capital
LCC
Right quality and
right quantity
Citilink to address the
LCC Opportunity
6
20
Cost Discipline
Efficient in cost
structure compared to
peers
4
Fleet
5
Brand
Stronger brand, better
product and services
Expand, simplify and
rejuvenate Fleet
Aiming to complete the 2nd journey in 2015
Growth
2005
Number of Aircraft
Average age (yr)
ASK/employee (000)
Passenger Carried
Frequency/week
Skytrax Rating
5 star skytrax airlines :
1.
2.
3.
4.
5.
6.
7.
21
Asiana Airlines
Cathay Pacific Airways
Hainan Airlines
Qatar Airways
Singapore Airlines
Malaysia Airlines
All Nippon Airways
2012
Growth
2015
57
86%
106
88%
199
11.2
-48%
5.8
-16%
<5
3,761
40%
5,250
56%
8,210
9.3 mio
119%
20.4 mio
147%
50.3 mio
765
214%
2,400
264%
8,743
3 star +
4 star +
5 star
"The key factor behind 5-Star status is an airline's ability to deliver a truly consistent and
high quality of Product and Service. A great product standard is not by itself the key to a
5-Star Airline ranking, and Skytrax focus deeply on the Quality of front-line service an
airline provides. A 5-Star Airline ranking is centred on identifying airlines whose frontline staff (across the airport and onboard experience) deliver a true and consistent 5-Star
standard of service delivery."
Sources: skytrax website http://www.airlinequality.com/StarRanking/5star.htm
3. Recent Development
22
Competition on routes which GA flies – per Sep 2013
Garuda Domestic Passengers in/out Selected Airports
Total GA Passengers (in million)
Garuda International Passengers in/out Selected Airports
Market Share
Total GA Passengers (in million)
22%
26%
24% 26% 25%
29% 29% 29% 28%
28% 28% 29% 29% 27% 28%
18%
3.0 3.2 3.3 3.1 3.3
2.4 2.4 2.5
1.8
0.5
2.1
1Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q13
GA Domestic Market Share 9M13: 28% decr. 0.2 ppts
9.9
1.1
GA International Market Share 9M13: 24.3% maintain
Traffic in million passenger
6.4%
11.5
5.0%
11.0
2.6
6.3%
2.8
170.1%
2.9
11.2%
25.5
8.2
6.4%
8.7
Others
Citilink
Jan-Sep 2013
GA Dom
Source: Airport Authority & GA (traffic in/out CGK, DPS, SUB, UPG airports)
23
1Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q13
10.8
24.3
Jan-Sep 2012
39.4
11.8%
35.3
26% 25% 22%
23% 23% 24% 24% 25% 24% 24%
22%
20% 20% 21%
0.9 0.9 0.9 0.9 0.95 0.9
0.8 0.8 0.8 0.8
0.6 0.7 0.6 0.7
3.8 3.9
3.5 3.5 3.4
Traffic in million passenger
Market Share
Jan-Sep 2012
Others
GA Int'l
Jan-Sep 2013
Strong Growth and Profitable Operations Compared to Peers
14%
12%
Highest Operating Revenue Growth YoY 2011-2012
12
170%
1270%
2nd Highest Operating Profit Growth (1) YoY 2011-2012
12.1%
10%
12
1220%
120%
8%
7.4%
6%
70%
4%
2%
2.5%
20%
1.3%
1271%
82%
0%
-27%
-2%
-4%
6%
5%
4%
-80%
15
Highest Operating Margin
5%
10
5
2%
0
2%
2%
10.87
9.47
1.62
-5
-10
-1%
-15
-2%
-3%
-20
-3.7%
-4%
Source: Bloomberg per Jun 18, 2013
(1) Notes: Thai Airways Operating Profit from negative $ 18 mio to $ 229 mio
24
Highest ROE
2.91
0%
-3%
-74%
-3.6%
3%
1%
-65%
-30%
-25
-30
-27.33
Milestones 2013 ... (1)
JAN
• Broaden flight network to 6 New destinations in Europe & Middle East (Frankfurt,
Brussel, Milan, Dusseldorf, Munich, Bahrain) that served by Etihad Airways
• Extended “Immigration on Board” Agreement
FEB
• Garuda Indonesia and General Electric (NYSE:GE) launched the CFM56-7B engine shop
capability for the Garuda Maintenance Facility (GMF AeroAsia)
MAR
25
• “2012 Domestic Airlines of The Year” from Ray Morgan Research, Australia
• “ASEAN Premium Airline of The Year” from Frost & Sullilvan, USA
APR
• New Boards Members were appointed by the AGM
• Signing Agreement ALAFCO & Garuda Indonesia for Financing of 2 aircraft B777-300ER
with Sharia principles
MAY
• New Destinations: Tanjung Pandan (Belitung) & Bengkulu
• Introduced Immigration On Board on the Shanghai – Jakarta service
JUN
• Garuda Indonesia named “The World’s Best Economy Class” by Skytrax at Paris
Airshow
• Fully repaid the US$ 55 million syndicated – commercial loan from Citi Club Deal
• Welcome the 1st Delivery of Boeing 777-300ER aircraft
Milestones 2013 ...(2)
JUL
26
• Introducing new Service Concepts
• IDR Bond: Listed on Indonesia Stock Exchange
• Moving from Polonia Airport to Kuala Namu Airport in Medan
• Welcoming the 2nd Delivery of Boeing 777-300ER aircraft
AUG
• New Destinations: Tanjung Pinang & Berau
• Fully repaid the US$ 75 million loan from Indonesia Exim Bank
SEP
• Garuda Indonesia awarded “Best in Region: Asia & Australasia” by Airline Passenger
Experience Association in New York, USA
• Welcoming the 7th Delivery of Airbus 330-300 aircraft
Oct
• Garuda Indonesia flied 90.108 Hajj Pilgrims 2013 incorporated in 234 flight groups of 10
embarkation.
Nov
• New Routes : Semarang - Denpasar , Makassar-Sorong-Manokwari-Jayapura
• Introducing Sub Brand “ Explore” for ATR 72-600 and “Explore Jet” for CRJ1000 NextGen
Dec
• Introducing inflight connectivity service in A330
• New Destinations using ATR: Denpasar – Labuan Bajo, Denpasar – Bima, Denpasar
- Lombok
4. 9M-2013 Performance
27
9M-2013 Highlights
Indicator
Passenger
Carried
Cargo
Uplifted
Seat Load
Factor
Passenger
Yield
Operating
Revenue
Passenger
Revenue
Operating
Income
Income for
the Period
9M13 Achievement D% YoY
18.1 million
21.8
• Continued growth in traffic & capacity
• Impacted by weakening IDR/USD
253,894 tons
26.3
INTERNATIONAL
• Improved operational performance
74.6 %
(1.2)*
US$c 9.1
(4.5)
USD 2,687.0 million
12.6
• Improved domestic market share
• At an early stage of Investment
USD 2,199.3 million
10.9
FINANCIAL
USD 22.1 million
- (75.4)
-USD 22.0 million
(139)
• Operating Indicator figures are for Garuda Indonesia and Citilink
• Financial Indicator figures are for Garuda Indonesia Group
• * in percentage points
28
DOMESTIC
CITILINK
• Fully Repaid:
- USD 55 million Citi Club Deal-1
- USD 75 million Indonesia Exim Bank
• Bonds:
- Total of proceed IDR 1.9 T
- Used of proceed IDR 1.1 T (57%)
Fleet Expansion and Rejuvenation in 9M-2013
Sep-12
Narrow Body
• B737-300
• B737-400
• B737-500
• B737-800 NG
• CRJ - 1000
Total Narrow Body
Wide Body
• B747-400
• B777-ER
• A330-200
• A330-300
Total Wide Body
Citilink
• B737-300
• B737-400
•A320-200
Total Citilink
TOTAL FLEET
29
Dec-12
# of Aircraft
Fin Lease /
Sep-13 Ops Lease Owned
3
5
55
63
3
5
55
5
68
3
4
62
12
81
2
62
7
71
1
4
5
10
2
8
6
16
2
9
6
17
2
2
10
7
21
2
10
1
13
2
6
8
5
1
7
13
92
6
1
14
21
106
5
1
23
29
131
1
1
23
25
108
4
4
23
Fleet at 31 Dec 2012
106
IN: Delivery of:
 B737-800NG
 A330-200
 CRJ-1000
 B777-300ER
 A320-200
 A330-300
OUT:
 B737-500
 B737-300
+27
7
2
7
2
8
1
-2
1
1
Fleet at 30 September 2013
131
Average Fleet Age (years)
6.2
Sep'12
5.5
Sep'13
5.0
2013F
Operating Indicators - Group
Operational
Efficiency
Passenger
& Cargo
9M12
9M13
Aircraft Utilization (Hours)
10:47
10:52
0:04
Frequencies
On Time Performance (%)
ASK (’000)
Average Fuel Price (USD/L)
Fuel Burn / ATK
Fuel Burn / Blockhours
Passenger Carried
RPK (‘000)
Seat Load Factor (%)
111,251
84.5
26,872,047
0.91
0.251
4,029
14,892,743
20,385,033
75.9
143,499
85.5
31,857,013
0.87
0.250
3,904
18,136,073
23,777,109
74.6
29.0
1.1*
18.6
(3.6)
(0.3)
(3.1)
21.8
16.6
(1.2)*
9.6
9.1
(4.5)
201,070
253,894
26.3
CASK (US¢)
7.8
7.6
(3.2)
CASK-excl Fuel (US¢)
4.6
4.4
(2.8)
Passenger Yield (US¢)
Cargo/Mail Uplifted (Ton)
Financial
Notes: All figures include GA & Citilink, except aircraft Utilization and OTP are for GA Main Brand only
* in percentage points
30
∆ % YoY
Operating Indicators 9M13 – Mainbrand By Sector
Passenger Carried
Frequency
ASK (’000)
DOM
RPK (‘000)
Seat Load Factor (%)
Passenger Yield (US¢)
INT’L
CASK (US¢)
CASK-excl Fuel (US¢)
Passenger Carried
Frequency
ASK (’000)
RPK (‘000)
Seat Load Factor (%)
Passenger Yield (US¢)
CASK (US¢)
CASK-excl Fuel (US¢)
9M12
9M13
10,305,728
76,347
10,982,928
8,895,757
81.0
11.4
8.8
5.4
2,703,065
18,576
13,801,419
10,010,492
72.5
8.5
7.2
4.1
11,430,888
94,512
12,608,561
9,668,531
76.7
11.0
8.7
5.3
2,878,169
19,816
15,216,803
11,126,191
73.1
8.3
7.0
4.0
Note:
• *) In percentage point
• Yield in IDR refers to exchange rate on End of Quarter
31
∆ % YoY
10.9
23.8
14.8
8.7
(4.3)*
(3.4)
(1.9)
(2.1)
6.5
6.7
10.3
11.1
0.6*
(2.4)
(2.5)
(2.1)
Domestic’s Pax Yield in IDR
1,246
3Q
1,086
1,134
1,097
2Q
1Q
1,043
1,023
2013
2012
2%
3%
15%
Summary of Consolidated Income Statement
in USD mio
9M-2012
9M-2013
466.3
519.9
11.5
Scheduled Airline
Non-Scheduled Airline
2,129.7
2,355.3
10.6
60.5
90.0
48.6
Others
196.3
2,386.6
241.7
2,687.0
23.1
12.6
885.9
1,019.5
15.1
Non Fuel
1,410.8
1,645.4
16.6
Total
2,296.7
2,664.9
16.0
Income / Loss from Operations
89.8
22.1
(75.4)
EBT
85.3
(9.6)
(111.2)
Income / Loss Current Period
56.5
(22.0)
(139.0)
EBITDAR Margin
19.5 %
19.4 %
Nett Margin
2.4 %
(0.8 %)
EBITDAR
Operating
Revenue
Total
Fuel
Operating
Expenses
Income
32
∆ % YoY
Summary of Income Statement – Parent Company only
in USD mio
Operating
Revenue
9M-2012
9M-2013
2,104.8
2,161.5
2.7
60.5
90.0
48.6
44.3
50.2
13.4
2,209.6
2,301.7
4.2
805.3
883.2
9.7
Non Fuel
1,318.6
1,367.7
3.7
Total
2,123.8
2,250.9
6.0
Income / Loss from Operations
85.8
50.8
(40.7)
EBT
75.1
22.2
(70.4)
Income / Loss Current Period
47.2
12.5
(73.5)
Scheduled Airline
Non-Scheduled Airline
Others
Total
Fuel
Operating
Expenses
Income
33
∆ % YoY
Summary of Consolidated Balance Sheet
in USD mio
31 Dec 2012
30 Sep 2013
636.6
742.7
16.7
Non-Current Assets
1,881.4
2,166.6
15.2
Total Assets
2,518.0
2,909.4
15.5
Current Liabilities
754.2
968.9
28.5
Non-Current Liabilities
648.8
861.7
32.8
Total Liabilities
1,403.0
1,830.6
30.5
Total Equities
1,115.0
1,078.8
(3.2)
Total Liabilities & Equities
2,518.0
2,909.4
15.5
Lease Adjusted Net Debt/EBITDAR
4.4 x
5.3 x
Debt/Equity
0.6 x
0.8 x
Current Assets
Asset
Liabilities
Equities
34
∆%
Summary of Consolidated Cash Flow
in USD mio
30 Sep 2012
Beginning Cash/Cash Equivalents
∆ % YoY
417.3
325.8
(21.9)
•Operating Activities
215.4
124.8
(42.1)
•Investing Activities
(403.6)
(401.9)
(0.4)
•Financing Activities
(15.4)
359.6
2,433.0
(203.6)
82.5
140.5
(4.5)
(35.7)
701.5
209.2
372.6
78.1
Net Increase (Decrease) in Cash/Cash Equivalents
Effect of Foreign Exchange Rate Changes
Ending Cash/Cash Equivalents
35
30 Sep 2013
Operating Activities
Investing Activities
Financing Activities
Increase on interest & financial
charges paid and income taxes paid
 Payment for PDP & Maintenance
Reserve Fund: USD 507.5 million
 Payment for Security Deposit:
USD 38.9 million
 Refund of PDP and Maintenance
Reserve Fund: USD 244.5 million
 Proceed of LT-Loan, Lease
liabilities, & Bank Loan:
$ 476.6 million
 Proceed of Bond: $ 200.3 million
 Payment of long-term Loan, Lease
liabilities, & Bank Loan:
$ 312.5 million
9M-2013 Stay on Track
2013E
Estimates
Key Drivers
139
# of Fleet*
131
15% – 20%
Passenger
Carried Growth
21.8%
15% - 20%
ASK Growth
18.6%
$ 200 – 250 mio
Net PDP
$ 111.8 mio
$ 300 – 400 mio
CAPEX **
$ 132.5 mio
Note:
* Revised (Delivery ATR72-600 in 2013: 2 aircrafts iso 5; operated by GA)
** GA only, excluding subsidiaries
36
9M-2013
Despite Challenges, Garuda Keeps Growing
Big room to grow
Solid economic growth
+6%/year
Strong air traffic growth
15%/year
GIAA is growing
(9M13 vs 9M12)
Passengers carried
21.8%
Cargo uplifted
ASK
5 major airport expansions
Jakarta
Surabaya
Medan
Bali
Makassar
Source: IMF, 2013 - Ministry of Transport, 2013
37
Exchange rates
Natural hedging &
increased tariff
Oil price fluctuation
Fuel hedging
Stiff fare
competition
Improved service
quality
Group new routes
Intensive marketing
strategies
Citilink at an early
investment stage
Strategic partner
26.3%
18.6%
12 new airports
RPK
Challenges
Mitigation
strategies
16.6%
Revenues
12.6%
EBITDAR
11.5%
Operating income
US$ 22.1 million
5. Summary Profiles of Other Businesses
38
PT Aero Wisata
Founded in Jakarta in 1973, operatesin the hospitality
and tourism segment
 Involved in in-flight & industrial
catering services, hotels &
resorts, travel &leisure, land
transportation and cargo
services
 Operates through 4 divisions: Food & Logistics,
Hotels& Resorts, Travel & Leisure, Transportation
 Subsidiaries with more than 50% voting rights are:
BelitungInti Permai, Bina Inti Dinamika, Senggigi
PratamaInternational, Angkasa Citra Sarana
Catering Service,Mandira Erajasa Wahana, Biro
Perjalanan Wisata Satriavi,Garuda Orient
Holidays, Garuda Orient Holidays Korea,Aerojasa
Perkasa, and Aerohotel Management
Aerowisata Sales
$177, 22
Mio
2010
39
$223,24
Mio
2011
• In-flight and industrial catering
•
•
$284,02
Mio
2012
2013
(Taksasi)
$6,48
Mio
$8,15
Mio
$6,27
Mio
$7,11
Mio
•
•
•
2010
2011
2012
2013
(Taksasi)
Aerohotel manages 13 hotels
andvillas located in Bali,
Lombok,Pekanbaru, Magelang,
Bandung, Surabaya, Jakarta,
Makasar and Biak
•
Aerowisata Net Income
$322,69
Mio
servicesthrough PT Angkasa Citra
SaranaCatering Services (Aerofood ACS)
Six in-flight catering facilities in Indonesia –
Jakarta, Denpasar,Surabaya, Medan,
Balikpapan,Makassarand Jogjakarta
Travel agent services through PTBPW
Satriavi (Aerotravel)
Garuda Indonesia Holiday andGaruda
Orient Holidays creates tourpackages for
inbound travelers fromAustralia, Korea
and Japan
Ground transportation servicesprovided
through PT MandiraErajasa Wahana
(Aerotrans)
Has over 1,000 transportationvehicles
including cars, buses andtrucks
PT Aero Systems Indonesia
 Provides consultation
services and
ITengineering systems as
well asmaintenance
services totransportation
Products and Services
 Passenger Service Solution
 Network/Regional Carriers Solution
 Value Added Services
 Revenue Management Systems
 Established in 2005 as PT Lufthansa
 Network Planning Schedule
SystemsIndonesia, with 51% held by Garuda and
 Schedule/Pricing Optimizer
49% byLufthansa System Group GmbH (LSG)
• In December 2008, there was a transfer of
 Loyalty Solutions
ownershipfrom LSG to PT Aerowisata
 Private/Corporate Account Solutions
 Production facilities and infrastructure services
 Infrastructure Services
basedin Jakarta and Singapore
 Data Centre Operation
 Targeting becoming a full-fledged application
 Network Operation
serviceprovider (ASP) in future
 Desktop Management
 Airport Check-In Solutions
 ERP
Asyst Sales
Asyst Net Income
 SAP Implementation and Hosting Services
$22,36
 Java-based ERP
$776,687
$19,41
$11,14
 Software Development and Systems Integrator
$14,10
$520,220
$510,418
$497,719
Mio
 Aviation-related Solution
 Integration and Middleware
2010
40
2011
2012
2013
(Taksasi)
2010
2011
2012
2013
(Taksasi)
PT Gapura Angkasa
Services Offered
 Established in 1998, providesairlines operating
in Indonesiawith ground service including
ramp,cargo & warehousing, passenger and
baggagehandling, flight operations and aircraft
servicing
 Joint venture between Indonesia's national
carrier,Garuda Indonesia and the country's two
main airportauthorities, PT (Persero) Angkasa
Pura I & II
Garuda has a 37.5% stake in the JV
 Presence in 24 locations across Indonesia
 Customers include over 40 airline companies
inaddition to military and charter flights
Gapura Sales
$67,01
Mio
2010
41
$77,50
Mio
2011
 Representation, administration and
supervision
 Passenger Services
 Ramp Services
 Load Control Communications and
Flight Operations
 Cargo and Mail Services
 Support Services
 Security
 Aircraft Maintenance
Major Customers
Gapura Net Income
$97,63
Mio
2012
$115,73
Mio
$5,28
Mio
2013
(Taksasi)
2010
$4,34
Mio
$4,57
Mio
2011
2012
$5,25
Mio
2013
(Taksasi)
PT Garuda Maintenance Facility Aero Asia
•
Provides repair and maintenance services for aircraft,
aircraft engines and engine components
•
Covers area of base maintenance, line maintenance,
component maintenance, engine maintenance,
logistics management, engineering services and
industrial gas turbine
•
Established in 2002, owned by Garuda (99%) and
AeroWisata (1%)
•
3,414 employees as of September 2013
Revenue (USD million)
166
185.8
2010
2011
Net Income (USD
million)
211.6
165.9
2012
2013*
11
9.9
2012
2013*
7.2
3.2
2010
42
2011
Major Customer (2013)
1. Garuda Indonesia
2. Citilink Indonesia
3. Sriwijaya
4. Max Air
5. Jet Airways
6. Lion Air
7. Avient
8. Panasonic
9. Arospace Consortium
10. Also Private
PT Abacus Distribution System Indonesia
•
Global Distribution System which provides travel solutions and
services
•
Jointly owned by Garuda (95%) and Abacus International (5%)
based in Singapore
•
Services include providing a computerized reservation system,
leasing computer equipment to travel bureaus, providing
training to travel bureaus and providing technical support to
travel bureaus that utilize the Computerized Reservation
Systems (CRS)
•
ADSI was established in 1995 after Garuda was given the right
to establish a national marketing company to market and
distribute Abacus’s products in Indonesia
Products and Services
• Customer Management
 CRM Tools: Client Base
 Traveler Services: Virtually There, Travel
Intelligence
•
 Point of Sale: AbacusWhiz, Air/Hotel/Car
Insurance
 Corporate Booking: Get There
 Online Booking: WebStart, WebConnect,
WebCreate
•
Revenue (USD million)
2.3
2.8
2.8
3.0
2010
2011
2012
2013*
Reservation
Processing and Fulfillment
 Fares Management: FareX, Smart Price
 Productivity Tools: Ticketing Express
 Quality Controls: GEMs
•
Data Management
 Reporting Tools: PowerSuite, eService
Net Income (USD million)
•
0.3
0.07
2010
0.2
43
2011
-0.09
2012
2013*
Supporting Services
 Training
 Helpdesk
 Technical
PT Citilink Indonesia
• Shareholders: Garuda Indonesia (94.27%)
and Aerowisata (5.73%)
• Serve low cost segment of passenger and
cargo traffic, focusing on short haul market
and regional area market, help Garuda
Indonesia Group maintain overall dominance
over all segments
• Fleet size: 28 aircraft
• Total number of employees: 682 people
• Established in 2009 as Garuda SBU
• Spin off as entity in June 30th 2012
in USD mio
9M-2013
∆ % YoY
Passenger Carried
1,883,950
3,827,016
103.14
Frequency
ASK (‘000)
RPK (‘000)
16,328
2,087,697
1,478,785
29,171
4,031,648
2,982,387
78.66
93.11
101.68
70.83
74.00
3.17
5.77
5.77
(0.12)
6.37
6.36
(0.26)
3.12
3.26
4.6
Seat Load Factor (%)
Passenger Yield
(US¢)
CASK (US¢)
CASK-excl Fuel (US¢)
44
9M-2012
6. Indicative Structure & Timetable
45
TRANSACTION SUMMARY
Issuer
PT Garuda Indonesia (Persero) Tbk (“GIAA” or the “Company”)
Joint Lead Managers
PT Bahana Securities, PT Danareksa Sekuritas and PT Mandiri Sekuritas, who will also act
as standby buyers for unexercised rights and placement agents for Government shares
Rights Issue:
Rights issue of up to [ ] new shares (“Rights Shares”) (based on a rights ratio of
[ ] new shares for [ ] old shares) with an exercise price between Rp[ ] – Rp[ ] per share,
raising up to Rp[ ] for the Company
Offering Size
Government Shares Placement:
Base offering size of up to [ ] shares ([ ] % of Rights Shares) with a placement price
between Rp[ ]-Rp[ ] per share, raising up to Rp[ ] for the Government
Rights Issue:
OJK‐registered format. The Joint Lead Managers will act as standby buyers for
unexercised rights.
Distribution
Government Shares Placement:
International placement including institutional domestic investors in Indonesia via
private placement. Format of offering minimum Wrap Reg-S.
Use of Proceeds
46
+ 80% for Pre Delivery Payment (PDP)
+ 20% for working capital in form of aircraft rental payment
INDICATIVE TIMETABLE
Research Analyst Presentation I
15 January 2014
Final 31 Dec 2013 Audited Financial Statements
30 January 2014
Research Analyst Presentation II (31 Dec 2013 updates)
10 February 2014
Printing of Final Research Report
21 February 2014
Investor Education (Pre-Marketing)
Discussion of Investor Education Results
47
24 February – 6 March 2014
7 March 2014
PT Garuda Indonesia (Persero) Tbk.
Investor Relations Department
2nd Floor Management Building
Garuda City
Soekarno Hatta International Airport
Phone
: 62-21-2560 1201
Email
: [email protected]
48
THANK YOU