CORPORATE PRESENTATION PT Garuda Indonesia (Persero) Tbk. Jakarta, May 2016

Transcription

1 CORPORATE PRESENTATION PT Garuda Indonesia (Persero) Tbk. Jakarta, May 2016

2 MANAGEMENT Appointed on AGMS April 15, 2016 SAME AS PREVIOUS NEW MEMBER 2

3 MANAGEMENT - PROFILE AGUS TONI SOETIRTO PLACE/DATE OF BIRTH: YOGYAKARTA, 18 AUGUST 1958 WORK EXPERIENCE: DIRECTOR OF CONSUMER BUSINESS, BANK RAKYAT INDONESIA HELMI IMAM SATRIYONO PLACE/DATE OF BIRTH: SEMARANG, 25 MAY 1968 WORK EXPERIENCE: CHIEF EXECUTIVE, BANK MANDIRI (EUROPE) LIMITED LINGGARSARI SUHARSO PLACE/DATE OF BIRTH: JAKARTA, 18 AUGUST 1961 WORK EXPERIENCE: MANAGING PARTNER, PDA CONSULTANT SIGIT MUHARTONO PLACE/DATE OF BIRTH: MALANG, 14 DECEMBER 1962 WORK EXPERIENCE: PRESIDENT DIRECTOR, PT CENTRAL PERTIWI BAHARI 3

4 MANAGEMENT - PROFILE M. ARIF WIBOWO PLACE/DATE OF BIRTH: PURWOKERTO, 19 SEPTEMBER 1966 WORK EXPERIENCE: PRESIDENT DIRECTOR PT CITILINK INDONESIA IWAN JOENIARTO PLACE/DATE OF BIRTH: SURABAYA, 16 JUNE 1968 WORK EXPERIENCE: EVP LINE OPERATION, PT GMF AERO ASIA NICODEMUS P. LAMPE PLACE/DATE OF BIRTH: BANJARMASIN, 19 JUNE 1960 WORK EXPERIENCE: VP DOMESTIC REGION 2, GARUDA INDONESIA NOVIANTO HERUPRATOMO PLACE/DATE OF BIRTH: MALANG, 25 NOVEMBER 1959 WORK EXPERIENCE: VP CORP. QUALITY, SAFETY & ENVIRONMENT, GARUDA INDONESIA 4

5 1949 THE TRANSFORMATION The inaugural flight of Garuda Indonesia 1954 Taken over by the Government Ranked among Top 30 Global Airlines 1990s 2008 Garuda Indonesia receives IOSA Relaunch of Citilink Garuda Indonesia recognized as 4 Star Airline and The Most Improved Airline by Skytrax Garuda Indonesia becomes a public company Garuda Indonesiajoins the SkyTeam Global Alliance Garuda Indonesia receives 'The World's Best Cabin Crew' and '5 Star Airline' from Skytrax Garuda Indonesia receives 'The World's Best Cabin Crew' for two consecutive years Sukuk issuance amounted USD 500 mio Fleets Passenger CAGR a b c d e f g h i j i-j a-j Pax Carried (mio) % 15.5% ASK (bio) % 12.4% RPK (bio) % 13.3% SLF (%) % 0.8% 5

6 STRONG SUPPORT FROM THE INDONESIAN GOVERNMENT SHAREHOLDER GOVERNMENT OF INDONESIA 60.5% PT TRANS AIRWAYS 24.6% PUBLIC 14.9% STRONG BACKING FROM GOVERNTMENT Significant strategic importance to the Government of Indonesia Flag carrier of Indonesia Importance of connecting Indonesia s archipelago Exclusivity on all Government travel Performance actively monitored by the Government of Indonesia Only Indonesian airline contracted by Indonesia s Ministry of Religious Affairs for Hajj travel Support for the re-investment of income for business expansion GOVERNMENT COMMITMENT TO MAINTAIN A MAJORITY STAKE Capital Injection: Government injected IDR3.9 (US$294.1m) through conversion of Garuda's outstanding debt to the Government Capital Injection: Injected IDR500bn (US$37.7m) from 2006 State Budget Capital Injection Injected IDR500bn (US$37.7m) from 2007 State Budget Initial Public Offering: Raised IDR4.8tr (US$362m) through IPO Government stake diluted to c.70% Rights Issue: Raised IDR1.5tr (US$113m) Government stake diluted to c.60% 2015 Sukuk Issuance: Re-profiling debt amounted USD 500 Million 6

7 STRONG ECONOMIC FUNDAMENTAL & DEMAND TOP 3 HIGHEST GROWTH GDP GROWTH AMONG G-20 COUNTRIES IN 2016 Source: IMF World Economic Outlook, April 2016 TRANSPORTATION GROWTH ARCHIPELAGO COUNTRY VS. MASSIVE LAND COUNTRY Source: Bloomberg and Transportation Ministry, ,9 POPULATION (in million) F Indonesia Philippines Vietnam Thailand Myanmar Malaysia Cambodia Lao P.D.R Singapore Brunei Darussalam Source: IMF Economic Outlook, April 2016 Air Sea Railway Air Sea Railway Highway INDONESIA CAGR Air % Sea % Railway % Passenger in million CHINA CAGR Air % Sea % Railway 1,073 2,352 7% Highway 16,289 42,969 9% Passenger in million 7

8 BUSINESS AIRLINE HAS BIG ROOM TO GROW COUNTRY POPULATION AIR TRAFFIC AIR TRAFFIC/POPULATION SINGAPORE % HONGKONG % MALAYSIA % JAPAN % THAILAND % INDONESIA % Source: Data Internal, Bloomberg, IMF, and Full Year 2015 Numbers are serve in million 8

9 HIGHLIGHTS Q1 EBITDAR MARGIN: 35.4% 5.8% YoY TOTAL REVENUES: US$0.86 billion -7.7% YoY UNSCHEDULED FLIGHT REVENUES -2.4% YoY OPERATING COST -6.3% YoY NET PROFIT: US$0.8 million -93.3% YoY PASSENGER CARRIED 1.8% YoY SEAT LOAD FACTOR (SLF): 69.7% -5.4% YoY COST PER ASK (CASK) -13.6% YoY ON TIME PERFORMANCE (OTP): 91.6% 2.5 percentage points YoY 62 DOMESTIC DESTINATIONS 17 INTERNATIONAL DESTINATIONS 9

10 MILESTONES 2016 Garuda Indonesia and POLRI signing cooperation on charter flight and cargo. Garuda Indonesia commemorate 50 years fly to Singapore. Garuda Indonesia received 2 new aircraft Airbus A with the first Super Diamond Seat Business Class and 1 new aircraft Boeing ER Garuda Indonesia Group and Airbus to Expand Longstanding Relationship. Garuda Indonesia Attains The Second Time as 5-star Airline. Garuda Indonesia appointed Mr. Juliandra Nurtjahjo as the new President & CEO of GMF AeroAsia (GMF-AA). Garuda Indonesia received Indonesia Green Company Award for 3 consecutive years. Garuda Indonesia moved the UK Flight destination from London Gatwick to London Heathrow. Garuda Indonesia held Annual General Shareholders Meeting 2016 and Mr. M. Arif Wibowo continues to lead Garuda Indonesia with new formations of Board of Directors. Maximized the Middle East especially for Umra market, Garuda Indonesia opens new route Jakarta Madinah 3 times/week. JANUARY FEBRUARY MARCH APRIL 10

11 AWARDS & CERTIFICATIONS 2016 TOTAL : 9 Domestic International Business Human Capital Safety Services Communication : 6 : 3 : 2 : 3 : 1 : 2 : 1 5 Star Airline Certificate Renewal Indonesia Human Capital Award 2016 (IHCA 2016) The Best BUMN, The Big 5 Human Capital, The Big 5 Human Capital Director (Category Human Capital Leadership) Indonesia Green Company United Nations World Tourism Organization (UNWTO) Award for Innovation in Enterprises First Runner-Up Outstanding Food Service by a Carrier 11

12 NETWORK In Q1-2016, Garuda Indonesia optimized the domestic networks by opening 2 new destinations. By the end of Q1-2016, Garuda Indonesia (main brand) has 62 destinations. New domestic destinations in Q1-2016: Sintang (SQG), and Silangit (DTB) For international networks, in Q Garuda Indonesia moved the UK flight destination from London Gatwick (LGW) to London Heathrow (LHR). By the end of Q1-2016, Garuda Indonesia s international destinations remains 17 destinations. 12

13 SHARE DISTRIBUTIONS DOMESTIC (95.18%) 60.51% GOVERNMENT OF INDONESIA 15,653,128,000 SHARES 24.63% TRANS AIRWAYS 6,370,697,372 SHARES 5.94% OTHER INSTITUTIONAL (< 5%) 1,537,074,509 SHARES 3.80% RETAIL 981,834,539 SHARES 0.30% EMPLOYEE 78,724,370 SHARES Source: Company Data, as 31 March 2015 INTERNATIONAL (4.82%) 4.80% INSTITUTIONAL (< 5%) 1,241,769,773 SHARES 0.02% RETAIL 5,698,070 SHARES REAL FREE FLOAT Excl. Government of Indonesia and Trans Airways ownership % DOMESTIC INVESTORS 2,597,633,418 SHARES 32.44% INTERNATIONAL INVESTORS 1,247,467,843 SHARES 13

14 SHARE PERFORMANCE YTD Apr AVERAGE LIQUIDITY (in billion IDR) YTD Apr AVERAGE VOLUME (in million) YTD Apr AVERAGE CLOSED PRICE (IDR) GIAA recently was added to MSCI (Small Caps Index), KOMPAS100, and SRI-KEHATI Index YTD Apr MARKET CAP (in trillion IDR)

15 MARKET SHARE GARUDA INDONESIA GROUP DOMESTIC Q % 48% 21% Q % 40% 21% Garuda Indonesia Group Lion Group Others Garuda domestic market share group (including Citilink). These market share were calculated based on all Garuda Indonesia s routes. INTERNATIONAL Q % 74% Q % 72% Garuda Indonesia Others Garuda main brand international market share. These market share were calculated based on all Garuda Indonesia s routes Source: Company Data 15

16 REGIONAL AIRLINES PERFORMANCE ASK GROWTH (%) Q VS Q RPK GROWTH (%) Q VS Q CHINA EASTERN 15,9 CHINA EASTERN 16,1 GARUDA INDONESIA ASIA PASIFIC CATHAY PACIFIC AIRWAYS ALL NIPPON AIRWAYS 10,3 7,9 6,5 6,1 ASIA PASIFIC ALL NIPPON AIRWAYS SINGAPORE AIRLINES CATHAY PACIFIC AIRWAYS 8,3 7,8 6,4 5,5 SINGAPORE AIRLINES THAI AIRWAYS (3,0) (3,2) GARUDA INDONESIA THAI AIRWAYS (0,6) 2,3 PASSENGER CARRIED GROWTH (%) Q VS Q PASSENGER CARRIED GROWTH (%) Q VS Q CHINA EASTERN SINGAPORE AIRLINES ASIA PASIFIC CATHAY PACIFIC AIRWAYS GARUDA INDONESIA ALL NIPPON AIRWAYS THAI AIRWAYS (2,1) 1,8 0,4 5,3 11,2 8,3 7,5 NORTH EAST OCEANIA ASIA PASIFIC SOUTH ASIA SOUTH EAST CENTRAL (2,8) 1,8 3,7 7,5 11,2 10,0 Source: Airline Website and AAPA 16

17 OPERATIONAL PERFORMANCE 17

18 NUMBER OF FLEET Average Age (Year) 5,0 4,5 4,3 5,2 4, Q E Fleets (per December 2015) 187 In B ER 1 A ATR Total 4 Out Total 0 Fleets (per March 2016) 192 Dec-15 Mar-16 Lease Owned Dec-16 Narrow Body B / B NG CRJ ATR Total Narrow Body Wide Body B B ER A A Total Wide Body Garuda Indonesia Citilink B B A Citilink Total Garuda Indonesia Group

19 GROUP OPERATIONAL PERFORMANCE OPERATIONAL EFFICIENCY PASSENGER & CARGO FINANCIAL Q Q % Aircraft Utilization (Hours) 09:15 08:33-00:42 Frequencies 59,378 65, On Time Performance - OTP (%) 89.1% 91.6% 2.5pp ASK ('000) 12,927,844 14,255, Average Fuel Price (USD/L) (30.9) Fuel Burn/ATK Fuel Burn/Blockhours 3,678 3,619 (1.60) Passenger Carried 7,601,395 7,740, RPK ('000) 9,719,230 9,945, Seat Load Factor (%) (5.4) Passenger Yield (USc) (10.7) Cargo/Mail Uplifted (Ton) 87, , CASK (Usc) (13.6) CASK excl. Fuel (Usc) (5.3) The aircraft utilization has slight decreased 42 minutes from 09:15 to 08:33 per day, most of it contributed by additional aircrafts. The passenger yield decreased 10.7% due to price war in domestic and international amidst the lowest season of quarter. 19

20 DOMESTIC & INTERNATIONAL (MAIN BRAND) DOMESTIC INTERNATIONAL Q Q % Passenger Carried 4,479,923 4,300,736 (4.0) Frequency 38,117 40, ASK ('000) 5,334,403 5,468, RPK ('000) 3,945,135 3,685,045 (6.6) Seat Load Factor (%) (6.57) Passenger Yield (Usc) (4.8) CASK (Usc) (7.5) CASK excl. Fuel (Usc) Passenger Carried 1,064,578 1,018,293 (4.3) Frequency 7,061 6,944 (1.7) ASK ('000) 5,611,202 6,248, RPK ('000) 4,194,190 4,412, Seat Load Factor (%) (4.13) Passenger Yield (Usc) (11.6) CASK (Usc) (18.0) CASK excl. Fuel (Usc) (8.4) 20

21 GARUDA INDONESIA (MAIN BRAND) & CITILINK GARUDA INDONESIA (MAIN BRAND) CITILINK Q Q % Passenger Carried 5,544,501 5,319,029 (4.1) Frequency 45,178 47, ASK ('000) 10,945,605 11,720, RPK ('000) 8,139,325 8,101,411 (0.5) Seat Load Factor (%) (7.0) Passenger Yield (Usc) (8.7) CASK (Usc) (13.0) CASK excl. Fuel (Usc) (4.1) Passenger Carried 2,056,894 2,421, Frequency 14,200 17, ASK ('000) 1,982,239 2,538, RPK ('000) 1,579,905 1,848, Seat Load Factor (%) (8.6) Passenger Yield (Usc) (19.1) CASK (Usc) (13.1) CASK excl. Fuel (Usc) (7.6) 21

22 FINANCIAL PERFORMANCE 22

23 SUMMARY OF CONSOLIDATED INCOME STATEMENT (in million USD) Q Q % YoY OPERATING REVENUE EBITDAR Total revenues (7.7) Q ,0 Revenue (Million USD) Fuel (28.2) Q ,3 OPERATING EXPENSES Aircraft rental and charter Others (4.1) Total expenses (6.3) Net Income (Million USD) PROFIT (LOSS) EBIT (48.4) EBT 15.4 (2.7) (117.4) Net income (93.3) Q Q ,8 12,4 EBITDAR MARGIN 30.9% 35.4% 23

24 CONSOLIDATED OPERATING REVENUE In Million USD % Change -5.8% -2.4% 0.5% Scheduled Service Non-Scheduled Service -7.7% Others Q1-15 Q1-16 Operating Revenue *PoT: Percentage of total Operating Revenue Operating Revenue PoT* Schedule Airline 87.9% Non Schedule Airline 2.0% Others 10.2% SCHEDULED AIRLINE DECREASE Lower yield due to pricing competition in domestic and international market. Impact from the opening/re-route of new domestic & international destination such as: Denpasar (DPS) Shanghai (PVG), re-route Jakarta (CGK) London Gatwick (LGW) to London Heathrow (LHR), and Jakarta (CGK) Silangit (DTB) Pinangsori (FLZ) whereas naturally the new routes and destination need several times to be matured. NON SCHEDULE AIRLINE DECREASE Q1 is the lowest season through the year 24

25 CONSOLIDATED OPERATING EXPENSES In Million USD % Change -8.3% 3.9% -1.1% 0.5% -1.1% -0.6% -1.0% 1.4% Fuel Rental Maintenance User Charge Ticket & Sales Passenger Service G&A Others % Q1-15 Q1-16 Operating Expenses Operating Expenses Expenses (USD, Mio) Q Q /- % PoT* Fuel (74.4) (8.3) 22.6% Rental % Maintenance (9.9) (1.1) 10.1% User charge % Ticketing & sales (10.0) (1.1) 7.8% Passenger services (5.5) (0.6) 7.5% General administration (9.0) (1.0) 5.8% Others % Total (56.5) (6.3) 100.0% 25

26 SUMMARY OF CONSOLIDATED BALANCE SHEET (in million USD) - Unadited FY2015 Q % YoY Current assets 1, , ASSET LIABILITY EQUITY Non current assets 2, , Total Assets 3, , Current liabilities 1, , Non current liabilities 1, , Total liabilities 2, , Total equities Total liabilities & Equities 3, , Lease Adj. Net Debt / EBITDAR 6.4x 6.6x 26

27 SUMMARY OF CONSOLIDATED CASH FLOW Q Q % YoY Beginning cash Cash from operating activities (26.0) (32.5) (24.7) Cash from investing activities (67.3) (63.2) (6.0) Cash from financing activities (54.7) Net increase (decrease) in cash 35.2 (37.6) (206.8) Effect of foreign exchange rate changes (4.6) Ending cash OPERATING Cash receipts from customers US$880.8 million Cash payments to suppliers US$771.3 million Payments of interest and financial expenses US$11.6 million INVESTING Payments PDP & Maintenance Reserve Fund: US$99.9 million Security Deposit Payment: US$5.9 million Refund of PDP and Maintenance Reserve Fund: US$49.0 million Receipts of Security Deposit: US$1.0 million FINANCING Proceed of long term loan, bank loan, & financial institution and sukuk US$350.2 million Payment of long term loan, bank loan & financial institution: US$289.7 million 27

28 GROUP CASH AND NET GEARING ,05 FINANCIAL DEBT STRUCTURE ,00 1,00 0,95 53% 8% Short-term Loan Long-term Loan Lease 800 0, ,85 0,89 0,85 39% 0, FY14 FY15 Q Cash Financial Debt Equity Net Gearing 0,75 COVENANT Minimum Cash 5% Max. 2.5x of Debt to Equity Ratio Min. Capital US$800 million 28

29 SUBSIDIARIES 29

30 SUBSIDIARIES Aerowisata (in billion IDR) Citilink (in thousand USD) Q Q % YoY Q Q % YoY Operating Revenue Operating Revenue 107, ,190 (4.7) Operating Income Operating Income 2,712 (15,127) (657.8) Net Income Net Income 862 (12,772) (1,581.7) EBITDA EBITDAR (35.1) FY2015 Q % FY2015 Q % Asset 2,926 2,844 (2.8) Asset 257, , Liability (9.7) Liability 239, , Equity 2,003 2, Equity 17,554 4,782 (72.8) Gapura Angkasa (in billion IDR) GMF Aero Asia (in thousand USD) Q Q % YoY Q Q % YoY Operating Revenue Operating Revenue 65,960 81, Operating Income 47.8 (5.8) (112.0) Operating Income 7,171 17, Net Income 3.9 (3.8) (197.5) Net Income 4,595 11, EBITDA (77.8) EBITDA 9,255 20, FY2015 Q % FY2015 Q % Asset 1,005 1, Asset 257, , Liability Liability 165, , Equity (0.9) Equity 91, ,

31 SUBSIDIARIES Sabre TN (in thousand USD) Asyst (in thousand USD) Q Q % YoY Q Q % YoY Operating Revenue , Operating Revenue 2, , Operating Income Operating Income (1,908.9) (277.4) 85.5 Net Income Net Income (1,350.8) (644.5) 52.3 EBITDA EBITDA (1,233.7) FY2015 Q % FY2015 Q % Asset 7,743 8, Asset 26, , Liability 1,155 1, Liability 16, , Equity 6,588 6, Equity 10, , GIH France S.A.S (in thousand USD) Q Q % YoY Operating Revenue 65, , Operating Income Net Income ,196.5 EBITDA ,233.2 FY2015 Q % Asset 191, , Liability 189, , Equity 1,828 2,

32 ADDITIONAL INFORMATION 32

33 EFFICIENCY PROGRAM 2015 TARGET : US$200 million ACHIEVEMENT : US$205 million 2016 TARGET : US$250 million ACHIEVEMENT (Q1) : US$25 million INITIATIVES Flight Fuel Conservation Economical Tanking GPU Optimization Use Own Aircraft For Hajj Flights PBTH Contract Renegotiation Catering Renegotiation Cross Currency Swap Early Termination of Aircrafts INITIATIVES (CONTINUATION) Flight Fuel Conservation Economical Tanking GPU Optimization Use Own Aircraft For Hajj Flights Cross Currency Swap INITIATIVES (NEW) Leasing Restructuring Competitive Insurance Cost Reducing Inventory Cost for In-flight Services Optimized Maintenance Program EOTI (Engine Out Taxi In) Centralized Flight Dispatch 33

34 SKY BEYOND VISION 2020 To Be A Sustainable Airline Company Through Customer-Oriented Services and Growth in Profit MISSION Maximize Shareholder Return Through Strong Revenue Growth, Cost Leadership in Full Service Operations, and Group Synergy While Providing the Highest Value to Customers Through Excellent Indonesian Hospitality EXCELLENT INDONESIAN HOSPITALITY RETURN MAXIMIZATION 3 CORE STRATEGIES GROUP SYNERGY 10 STRATEGIC DRIVERS 1. Deliver the leading in-flight & ground services through human-to-human interaction 2. Ensure operation reliability by constant refinement in all touch points 3. Strengthen premium brand positioning by accentuating service as main differentiation REVENUE 4. Maximize operational margin through fleet, network, and alliances optimization 5. Improve commercial capabilities by strengthening sales channel and sales force 6. Enhance customer value through optimization in pricing and revenue management COST 7. Promote cost-effectiveness to achieve cost-leadership by streamlining business process throughout organization 8. Boost operation efficiency by establishing an IT-based airline 9. Strengthen domestic market by positioning Citilink as a fighting brand for GA 10. Achieve operational competitiveness by leveraging capabilities of subsidiaries 34

35 PT Garuda Indonesia (Persero) Tbk. Investor Relations Department 2nd Floor Management Building Garuda City Soekarno-Hatta International Airport Phone: