3M 2013 Edition 3M 2012 3M 2013 Change Financial Summary (USD Mio) OPERATING REVENUES 717 807 12.51% OPERATING EXPENSES 734 827 12.70% INCOME (LOSS) FROM OPERATIONS (17) (20) 20.68% INCOME (LOSS) BEFORE TAX (16) (27) 69.37% COMPREHENSIVE INCOME (LOSS) (13) (32) 148.54% EBITDAR 103 126 21.47% Total Current Assets 637 604-5.19% Total Non Current Assets 1,881 2,062 9.58% TOTAL ASSETS 2,518 2,665 5.85% Total Current Liabilities 754 807 6.99% Total Non Current Liabilities 649 775 19.40% TOTAL LIABILITIES 1,403 1,582 12.73% TOTAL EQUITY 1,115 1,084-2.82% TOTAL LIABILITIES AND EQUITY 2,518 2,665 5.85% NET CHANGE IN CASH (105) (56) -46.57% Summary Operating revenues grew by 12.51%, EBITDAR went up 21.47% Total comprehensive income stood at a negative number of USD 32 Million Passenger carried increased 20.69%, reaching 5.56 million passangers Seat Load Factor increased 2.35 percentage points to 74.5% Share Information Ticker Last Price : GIAA.IJ / GIAA.JK : 650 (28 Mar 13) 52 Week High : IDR 780 52 Week Low : IDR 560 Daily Share Price Movements Financial Ratios EBITDAR Margin 14.40% 15.60% 8.33% Net Gearing 44.21% 63.20% 42.95% Interest Coverage (x) N/A N/A N/A ROA -0.42% -1.26% -0.84% ROE -0.96% -3.11% -2.15% Operating Indicators Passenger Carried 4,607,912 5,561,249 20.69% ASK (000) 8,568,107 9,960,324 16.25% RPK (000) 6,236,646 7,420,508 18.98% SLF (%) 72.79 74.50 1.71% Cargo Carried (Tonnage) 65,487,922 81,333,855 24.20% CLF (%) 31.24 32.40 1.16% Frequencies 35,817 44,224 23.47% Aircraft Utilization (Hours per Day) 10:44 11:04 00:20 OTP (%) 86.40 87.90 1.50% No. of Fleets 90 112 22 Financial Indicators Passenger Yield Total (Usc) 9.41 9.01-4.26% CASK Total (USc) 8.09 7.59-6.19% CASK (excl fuel) Total (USc) 4.65 4.31-7.37% Av. Fuel Price (USD/litre) 0.920 0.923 0.33% Shareholders Information No. of Shares Percentage Government of Indonesia 15,653,128,000 69.14% Retail 1,144,068,298 5.05% Employee 94,866,977 0.42% Institutional 5,748,932,725 25.39% Total 22,640,996,000 Domestic Investor 21,711,487,838 95.89% Foreign Investor 929,508,162 4.11% 1
New International Routes from GA EY Partnership Program The first quarter of 2013 was a moment for Garuda Indonesia to enhance its international stand point by introducing 6 new destinations in Europe and Middle East as products of a partnership program between Garuda Indonesia and Etihad Airways. In 3M 2013 Garuda Indonesia managed to increase its operating revenues and EBITDAR by 12.51% and 21.47% year on year respectively. Meanwhile, because of seasonal factor worsened by bad weather, bottom line slid to a negative teritory at USD 31 million. On the operational side, the passengers carried grew by 20.69%, followed by ASK and RPK escalation by 16.25% and 18.98% respectively, supporting SLF to increase 1.71% to 74.50%. Current Route Map Codeshare GA/EY Operating Revenues Dreadful wheather in Jakarta combined with flood in January interrupted the stability of commercial fligths, however, Garuda Indonesia was still able to increase its operating revenues by 12.51% from USD 717 Million in 3M 2012 to USD 807 Million in 3M 2013. Most of Garuda Indonesia operating revenues were contributed from strong passenger revenues that went up 13.28% to USD 677 Million in 3M 2013 from USD 598 Million in 3M 2012. Increasing revenues also came from cargo segment that grew by 5.31% year on year with USD 47 Million revenue contribution. No Hajj revenue was recorded for this period as Hajj season starts in September. Cost Dicipline As a process to achieve our Quantum leap strategy, cost dicipline has always been one of the most important concerns for Garuda Indonesia. While Garuda Indonesia continuously strived to manage a higher revenue growth than the operating expenses growth each year, the unfavorable wheather condition in January and immaturities of new routes served by CRJ1000 NG new fleet lowered operating revenue growth. In 3M 2013 operating revenues reached USD 807 Million or a 12.51% growth year on year, versus a 12.70% escalation on operating expenses, these conditions coupled with seasonal factor caused income from operation to be negative USD 20 Million. Our average fuel price was US$. 0.92 per liter, around 0.33% higher than that of the same period of previous year. Besides higher average fuel price, our fuel expenses increased by 16.57% due to increasing ASK / capacities. EBITDAR & Income for the Periods Advantaged by the augmentation of demand, our EBITDAR increased by 21.47% year on year to USD 125.60 Million from USD 103.40 Million on the same period last year. EBITDAR margin widened from 14.40% in 3M 2012 to 15.60% in 3M 2013. While income for the period was negative USD 33.70 Million. Balance Sheets The total cash and cash equivalents at 31 March 2013 stood at USD 268.56 Million, went down about 17.57% from USD 325.78 Million at 31 March 2012, primarily used for advance payments for aircraft and long-term loan payment. Total equity slightly declined to 2.82% to USD 1.08 Billion. Total assets grew 5.85% to USD 2.66 Billion, whereas total liabilities increased by 12.73% to 1.58 Billion because of new long term loans. Current liabilities modestly went up by 6.99% to USD 806.94 Million while non current liabilities increased by 19.40% to USD 774.73 Million. 2
Cash Flow activities Despite experiencing a 30.60% decrease, cash flow from operating activities was still at a positive teritory of USD 16.71 Million. Cashflow from investing activities remained negative because Garuda Indonesia continuously paid subsequent amount of advance payment for aircrafts. While the cash flow from financing turned from negative USD 18.58 Million to positive USD 114.25 due to a forementioned reason. Operating Results From January until March 2013, Garuda Indonesia carried 5.56 Million passengers, which indicates a 20.69 % growth compared to that of the same period of previous year. Our RPK (Revenue Passenger Kilometers) increased 18.98% on 16.25% higher ASK (Available Seat Kilometres). Accordingly, SLF (Seat Load Factor) escalated from 72.79% to 74.50% and aircraft utilization increased from 10:44 hours to 11:04 hours year on year. ASK YoY RPK YoY Pax Carried Domestic Passenger Services In 3M 2013 Garuda Indonesia carried 3.45 Million domestic passengers or an 8.00% increase on 11.49% growth of domestic ASK. Bad weather particularly in January caused RPK to grow slightly by 5.73%, sending domestic SLF to 73.83% from 77.85% on the same period last year. International Passenger Services Favorable performance was booked by Garuda Indonesia s International Services. During first quarter 2013, Garuda Indonesia carried 0,92 Million international passengers, a 10.51% higher than that of the same period of 2012. International capacity (ASK) grew by 8.81% while demand (RPK) went up 18.39%, supporting international SLF increased by 6.08% to 75.17%. Citilink Passenger Services Effective July 2012, Citilink was granted its own (AOC) Airline Operator Certificate and started operation as an independent airline with an LCC busines model. In 3M 2013, Citilink revealed an excellent performance, as the passengers carried grew by more than 100% or exceeded 1.19 Million passengers, folllowed by increases on ASK, RPK and SLF of 92.98%, 104.18% and 4.06% respectively. Fleet Expansion At the end of first quarter 2013, Garuda Indonesia operates 112 fleets. During 3M 2013, 2 CRJ1000s were phased in for Garuda Indonesia and 4 A320-200s were phased in for Citilink. Garuda Indonesia Fleet Status Mar-12 Dec-12 Mar-13 Ops Lease Fin Lease Owned Narrow Body B737-300 5 3 3 2-1 B737-400 1 - - - - - B737-500 5 5 5 - - 5 B737-800 NG 53 55 55 55 - - Bombardier CRJ1000 NextGen - 5 7 4 3 - Total Narrow Body 64 68 70 61 3 6 Wide Body B747-400 3 2 2 - - 2 B777-300ER - - - - - - A330-200 8 9 9 9 - - A330-300 6 6 6-6 - Total Wide Body 17 17 17 9 6 2 3
Citilink B737-300 5 6 6 - - 6 B737-400 1 1 1 1 - - A320-200 3 14 18 18 - - ATR 72-600 - - - - - - Total Citilink 9 21 25 19-6 TOTAL FLEET 90 106 112 89 9 14 About Garuda Indonesia Garuda Indonesia is the flag carrier of Indonesia, that promotes Indonesia to the world, supporting national economic development by delivering professional air travel services to serve people around the world with Indonesian Hospitality and to create a continuously growing and expanding company with sustainable profit. Established since 1949, on 11 February 2011 Garuda Indonesia has sucessfully completed its Initial Public Offering (IPO) on Indonesia Stock Exhange (ticker GIAA.IJ/GIAA.JK). Appendix 1. Income Statement OPERATING REVENUES 717,446,449 807,223,012 12.51% Passenger 597,987,616 677,417,039 13.28% Cargo 44,822,039 47,201,170 5.31% Excess baggage 1,874,556 1,974,270 5.32% Mail and document 1,756,814 2,000,939 13.90% Hajj Charter 2,757,262 6,157,819 123.33% Subsidiaries 68,248,162 72,471,775 6.19% OPERATING EXPENSES 734,129,515 827,355,526 12.70% Fuel 280,522,509 327,016,723 16.57% Aircraft rental and charter 84,982,686 102,285,098 20.36% Flight Operations 38,796,814 43,261,899 11.51% Ticketing, sales and promotions 65,319,661 68,057,348 4.19% Passenger services 83,043,901 66,163,507-20.33% User charges and station 31,796,018 59,626,623 87.53% General and administrative 42,606,747 45,375,676 6.50% Maintenance and overhaul 47,456,714 48,373,708 1.93% Depreciation and amortization 31,897,013 33,978,093 6.52% Non aircraft rental 8,403,023 11,707,427 39.32% Subsidiaries Expenses 9,451,482 17,052,937 80.43% Others 9,852,947 4,456,487-54.77% INCOME (LOSS) FROM OPERATIONS (16,683,066) (20,132,514) 20.68% Equity in net income of associates 709,220 1,060,803 49.57% Finance Income 3,808,871 1,536,432-59.66% Finance cost (3,831,952) (9,558,125) 149.43% INCOME (LOSS) BEFORE TAX (15,996,927) (27,093,404) 69.37% TAX BENEFIT (EXPENSE) 5,325,791 (6,613,307) -224.18% INCOME (LOSS) FOR THE PERIOD (10,671,136) (33,706,711) 215.87% OTHER COMPREHENSIVE INCOME (EXPENSES) (2,126,842) 1,899,017-189.29% TOTAL COMPREHENSIVE INCOME (LOSS) (12,797,978) (31,807,694) 148.54% INCOME ATRIBUTABLE TO: Owner the parent company (12,839,967) (31,783,725) 147.54% Non Controlling interest 41,990 (23,968) -157.08% INCOME (LOSS) FOR THE PERIOD (12,797,977) (31,807,693) 148.54% EBITDAR 103,400,000 125,600,000 21.47% EBITDAR Margin 14.40% 15.60% 1.20% Note: Numbers displayed are in USD 4
Appendix 2. Balance Sheet ASSETS CURRENT ASSETS Cash and cash equivalents 325,784,942 268,556,743-17.57% Total Current Assets 636,566,218 603,544,359-5.19% Property and equipment 18,912,898 18,912,898 0.00% Total Non Current Assets 1,881,431,548 2,061,684,763 9.58% TOTAL ASSETS 2,517,997,766 2,665,229,122 5.85% LIABILITIES CURRENT LIABILITIES Bank loans 5,651,251 9,850,005 74.30% Current maturites of: Trade Payable 173,469,631 184,620,481 Long-term loans 106,125,048 110,439,391 4.07% Lease liabilities 58,132,590 58,360,554 0.39% Lease liabilities for aircraft return & maintenance cost 21,795,528 21,929,962 0.62% Other Current Liabilities 389,033,004 421,744,088 8.41% Total Current Liabilities 754,207,052 806,944,481 6.99% Long-term loans 294,822,442 418,057,828 41.80% Lease liabilities 148,220,008 133,272,955-10.08% Other Non Current Liabilities 205,788,186 223,401,604 8.56% Total Non Current Liabilities 648,830,636 774,732,387 19.40% TOTAL LIABILITIES 1,403,037,688 1,581,676,868 12.73% EQUITY Capital stock 1,146,031,889 1,146,031,889 0.00% Deficit (110,598,370) (76,846,313) -30.52% Equity Attributable to: Owners for the Company 1,113,089,150 1,081,705,294-2.82% Non controlling interest 1,870,928 1,846,960-1.28% TOTAL EQUITY 1,114,960,078 1,083,552,254-2.82% TOTAL LIABILITIES AND EQUITY 2,517,997,766 2,665,229,122 5.85% Note: Numbers displayed are in USD 5
Appendix 3. Cash flow and Financial Ratios Cash Flow 3M 2012 3M 2013 % Change Net Cash Provided from: Operating Activities 24,081,679 16,713,277-30.60% Investing Activities (110,208,506) (186,932,776) 69.62% Financing Activities (18,588,264) 114,272,367-714.76% NET INCREASE (DECREASE) IN (104,715,091) (55,947,132) -46.57% CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 417,252,577 325,784,942-21.92% Effect of foreign exchange rate changes: (1,346,387) (1,281,067) -4.85% AT END OF THE YEAR 311,191,099 268,556,743-13.70% Financial Ratios 3M 2012 3M 2013 % Change EBITDAR Margin 14.40% 15.60% 1.20% Net Gearing (x) 44.21% 63.20% 18.99% Interest Coverage (x) N/A N/A N/A Total Debt/Assets (x) 33% 36% 3.26% Total Debt/Equity (x) 0.73 0.88 14.55% Liabilities/Equity (x) 1.26 1.46 20.13% ROA -0.42% -1.26% -0.84% ROE -0.96% -3.11% -2.15% Note: Numbers displayed are in USD 6
Appendix 4. Group Operating Indicators Group 3M 2012 3M 2013 % YoY Aircraft Utilization (Hours) 10:44 11:04 0:19 Frequencies 35,817 44,224 23.47% On Time Performance 86.4 87.9 1.74% ASK ( 000) 8,568,107 9,960,324 16.25% Average Fuel Price (USD/L) 0.920 0.923 0.33% Fuel Burn / RTK 0.42 0.40-4.56% Fuel Burn / Blockhours 3,986 3,950-0.92% Passenger Carried 4,607,912 5,561,249 20.69% RPK ( 000) 6,236,646 7,420,508 18.98% Seat Load Factor (%) 72.79 74.50 1.71% Passenger Yield (US ) 9.41 9.01-4.26% Cargo/Mail Uplifted (Tonnage) 65,487,922 81,333,855 24.20% CLF (%) 31.24 32.40 1.16% Cargo yield total 35.96 34.03-5.38% CASK (US ) 8.09 7.59-6.19% CASK-excl Fuel (US ) 4.65 4.31-7.37% Domestic 3M 2012 3M 2013 % YoY Passenger Carried 3,195,996 3,451,589 8.00% ASK ( 000) 3,551,326 3,959,491 11.49% RPK ( 000) 2,764,601 2,923,132 5.73% Seat Load Factor (%) 77.85 73.83-0.98% Passenger Yield (US ) 11.14 10.74-3.64% CASK (US ) 8.91 8.58-3.66% CASK-excl Fuel (US ) 5.44 5.11-6.02% International 3M 2012 3M 2013 % YoY Passenger Carried 834,492 922,236 10.51% ASK ( 000) 4,372,808 4,758,097 8.81% RPK ( 000) 3,021,016 3,576,485 18.39% Seat Load Factor (%) 69.09 75.17 6.08% Passenger Yield (US ) 8.49 8.44-0.55% CASK (US ) 7.44 7.09-4.61% CASK-excl Fuel (US ) 4.31 3.92-9.00% Citilink 3M 2012 3M 2013 % YoY Number of Aircraft Frequency 5,038 9,187 82.35% Passenger Carried 577,424 1,187,424 105.64% ASK ( 000) 643,973 1,242,736 92.98% RPK ( 000) 451,029 920,891 104.18% Seat Load Factor (%) 70.04 74.10 4.06% Passenger Yield (US ) 5.03 5.77 14.57% CASK (US ) 6.19 6.36 2.68% CASK-excl Fuel (US ) 2.88 3.26 13.18% 7
Garuda Indonesia Current Domestic Networks Freq per day Garuda Indonesia Current International Networks Freq per week 8