ANALYST MEETING PT GARUDA INDONESIA (PERSERO) Tbk. 9M2015 Result Announcement Jakarta, 23 October 2015 1
Agenda Hal 1. Company Profile 3 8 2. Operational Performance 9 13 3. Financial Performance 14 20 4. Subsidiaries 21 23 Picture s source: www.google.com 2
Share Performance GIAA & JCI GIAA (RHS) JCI (LHS) List of Shareholders as of 30 Sept 2015 Number of Shares % Domestic Government of Indonesia 15,653,128,000 60.5 Retail 857,530,739 3.3 Employee 78,724,370 0.3 Institutional (Trans Airways) 6,370,697,372 24.6 Other institutional (less than 5%) 1,686,581,134 6.5 Total domestic 24,646,661,615 95.3 International Notes Av. liquidity (IDR/day) 9M-2014 1.8 bio 9M-2015 4.2 bio Retail 3,856,770 0.0 Institutional (less than 5%) 1,218,408,248 4.7 Total international 1,222,265,018 4.7 TOTAL 25,868,926,633 100.0 Av. close price (IDR) 453 482 Av. volume (shares/day) 3.9 mio 8.6 mio Market cap (IDR) 10.7 trillion 7.9 trillion Percentage of Shares based on Real Free Float Domestic 68.2% International 31.8% Real free float 15% - excluding Government of Indonesia and Trans Airways ownerships. 3
Garuda Indonesia Continues its Bright Performance in Challenging Conditions Top line increase 0.5% YoY Reduce cost 11.8% YoY Bottom line improves (9M2015 net profit USD 51.4Mio) Sustainable passenger growth: 17.5% YoY Sustainable market share (Dom: 44% & Inter: 28%) Sustainable high SLF 77.3% Manage RPK growth is higher compare to ASK growth The non fuel efficiency, exercised ± 70% of target FY 2015 Picture s source: www.google.com 4
Awards 46 awards 2015: Domestic: 34 awards International: 12 awards Service: 17 awards Commercial: 9 awards Business: 7 awards Corporate Transformation: 5 awards Human Capital: 4 awards People Management: 2 awards GCG: 2 Awards SKYTRAX Awards 2015 The World s Best Cabin Crew SKYTRAX Awards 2015 World s Best Airline 8th Rank FinanceAsia Awards 2015 Asia s Best Companies 2015 Schipol Aviation Awards Passenger Airline of the Year Award 2014-Intercontinental Indonesia Human Capital Award 2015 1st in Human Resources Technology Indonesia Good Corporate Governance Award 2015 Score A (Excellent) Pacific Asia Travel Association (PATA) Gold Awards 2015 for Inflight Magazine Picture s source: www.google.com 5
Milestones First Quarter 2015 Garuda Indonesia implemented hedging cooperation through Cross Currency Swap (CCS) transactions with banks. The first and the biggest CCS transaction, exercised by SOE in Indonesia. Garuda Indonesia, BII-Maybank, and NBAD/DIB carried signing of bridging loan facility with the principles of Sharia facility of $ 500 million. Second Quarter 2015 Garuda Indonesia launched the "New Mobile Apps Garuda Indonesia and Cardig Air signed a cooperation of air cargo management and business development Garuda Indonesia exercised Reprofiling Debt of Quick Wins strategy by issuing sukuk amounted $500 mio with 4 times booking order. Third Quarter 2015 Garuda Indonesia ends the Hajj Flights 2015 with 92.38% On-Time Performance Rates. The Inaugurations of Garuda Maintenance Facilities AeroAsia (GMF-AA) 4 th Hangar President & CEO of Garuda Indonesia appointed as President of Indonesia Marketing Association (IMA) for the period 2015-2017 Picture s source: www.google.com 6
Garuda Indonesia Group Market Share YTD August 2015 Domestic Market Share 2014 2015 International Market Share 2014 2015 17% 15% Others 78% 72% Others 46% 41% Lion Group 37% 44% GA Group 22% 28% GA Main Brand Garuda domestic market share group (including Citilink) These market share were calculated based on all Garuda Indonesia s routes Source: Company Data Garuda main brand international market share These market share were calculated based on all Garuda Indonesia s routes Source: Company Data Picture s source: www.google.com 7
Peers Comparison Operational Performance YTD 9M2015 25.00 ASK growth (%) 2014 vs2015 RPK growth (%) 2014 vs 2015 20.00 15.00 10.00 5.00 14.5 6.0 3.7 5.0 6.4 20.00 15.00 10.00 5.00 16.5 14.8 8.8 7.3 6.1 8.3 0.00-5.00 (0.2) (0.9) Asia Pasific 0.00-5.00 (0.9) Asia Pacific 25.00 20.00 Passenger carried growth (%) 2014-2015 17.5 25.0 Passenger carried of AAPA 2015 20.0 Passenger Carried Growth 15.00 10.00 5.00-13.1 10.6 8.5 1.7 1.1 8.9 Asia Pacific 15.0 10.0 5.0-6.4 South East 11.4 10.9 South North East 5.5 0.6 8.9 Oceania Central Asia Pacific Note: YTD September 2015 Sumber: Airline Website and Asia Pacific Data for August 2015 8
Operational Performance 9
Number of Fleets 5.8 Average Age (year) 5.0 4.5 4.7 4.3 2012 2013 2014 Sep-15 2015E Fleets per Dec 2014 169 In Out * B737-800NG 5 * ATR 72-600 2 * B777-300 ER 2 * A320-200 4 * A330-300 1 Total 14 * A330-200 1 * B737-800 1 Total 2 Fleets per Sept 2015 181 14-Dec Sep 15 Ops.lease Fin lease/ owned 15-Dec Narrow body B737-500 4 1-1 - B737-800 NG 75 79 79-81 CRJ - 1000 15 15 9 6 18 ATR 72-600 8 10 10-11 Total narrow body 102 105 98 7 110 Wide Body B747-400 2 2-2 2 B777-300 ER 6 8 8-9 A330-200 11 10 10-9 A330-300 11 12 6 6 13 Total wide body 30 32 24 8 33 Garuda main brand 132 137 122 15 143 Citilink B737-300 5 5-5 5 B737-500 - 3-3 3 A320-200 32 36 36-36 Total Citilink 37 44 36 8 44 Total fleets 169 181 158 23 187 10
Operational Performance Garuda Group Operational Efficiency Passenger & Cargo Financial 9M-2014 9M-2015 % Aircraft Utilization (Hours) 9:53 9:11-0:42 Frequencies 165,642 186,105 12.4 On Time Performance - OTP (%) 89.6 88.2 (1.4) ASK ('000) 36,902,810 38,748,407 5.0 Average Fuel Price (USD/L) 0.9 0.5 (37.9) Fuel Burn/Blockhours 3,699 3,590 (2.9) Passenger Carried 20,893,654 24,551,594 17.5 RPK ('000) 26,086,291 29,951,212 14.8 Seat Load Factor (%) 70.7 77.3 6.6 Passenger Yield (USc) 8.6 7.5 (13.7) Cargo/Mail Uplifted (Ton) 292,888 257,304 (12.1) CASK (Usc) 7.6 6.4 (15.3) CASK-excl Fuel (Usc) 4.5 4.5 0.0 Yield decreased The passenger yield decreased 13.7% due to IDR depreciation ±12.1% and lower international fares amidst unstable economic. Utilization decreased The utilization was going down to be 9:11 hours due to route restructuring of Quick Wins program, especially in international market. Others OTP decrease due to Mount Raung eruption and fire incident in SHIA Terminal 2 Cargo capacity decrease due to the increase of passenger carried as Garuda Cargo is belly cargo on Garuda Group. 11
Operational Performance Domestic & International Domestic International 9M-2014 9M-2015 % Passenger Carried 12,666,172 14,508,965 14.5 Frequency 106,581 118,607 11.3 ASK ('000) 14,779,378 16,448,716 11.3 RPK ('000) 10,915,976 12,675,797 16.1 Seat Load Factor (%) 73.9 77.1 3.20 Passenger Yield (Usc) 10.1 8.6 (14.5) CASK (Usc) 8.6 7.1 (17.1) CASK-excl Fuel (Usc) 5.3 5.0 (4.4) Passenger Carried 2,897,051 3,176,986 9.7 Frequency 21,549 20,835 (3.3) ASK ('000) 16,963,144 15,742,812 (7.2) RPK ('000) 11,101,472 11,953,539 7.7 Seat Load Factor (%) 65.4 75.9 10.49 Passenger Yield (Usc) 8.0 6.9 (13.6) CASK (Usc) 7.3 6.3 (13.6) CASK-excl Fuel (Usc) 4.4 4.5 3.0 Garuda Indonesia main brand has 58 domestic destinations 17 international destinations Picture s source: www.google.com 12
Operational Performance Main Brand & Citilink Main Brand Citilink 9M-2014 9M-2015 % Passenger Carried 15,563,223 17,685,951 13.6 Frequency 128,130 139,442 8.8 ASK ('000) 31,742,521 32,191,527 1.4 RPK ('000) 22,017,448 24,629,336 11.9 Seat Load Factor (%) 69.4 76.5 7.15 Passenger Yield (Usc) 9.1 7.8 (13.7) CASK (Usc) 7.9 6.7 (14.9) CASK-excl Fuel (Usc) 4.8 4.8 (0.2) Passenger Carried 5,330,431 6,865,643 28.8 Frequency 37,512 46,663 24.4 ASK ('000) 5,160,289 6,556,880 27.1 RPK ('000) 4,068,844 5,321,876 30.8 Seat Load Factor (%) 78.9 81.2 2.31 Passenger Yield (Usc) 6.5 5.8 (10.7) CASK (Usc) 5.7 5.0 (13.4) CASK-excl Fuel (Usc) 2.9 3.2 11.2 13
Financial Performance 14
Summary of Consolidated Income Statement Operating Revenue Operating Expenses Income In USD Mio 9M14 9M15 % YoY EBITDAR 406.3 918.4 126.0 Total revenues 2,831.3 2,845.7 0.5 Fuel 1,175.7 806.5 (31.4) Aircraft rental and charter 530.1 659.9 24.5 Others 1,374.8 1,251.3 (9.0) Total expenses 3,080.6 2,717.6 (11.8) EBIT (249.3) 128.1 151.4 EBT (298.3) 81.3 127.3 Net income (220.1) 51.4 123.4 Garuda Group Top Line (USD, Bio) 0.9 0.9 Garuda Group Net Income (USD, Mio) 1.0 Q1 Q2 Q3 12.4 16.9 22.1 EBITDAR Margin 14.4% 32.3% Q1 Q2 Q3 15
Operating Revenue In USD mio % Change 2,831.3 (2.4%) Schedule airline 0.5% 2.4% Others Non Schedule Airline 2,845.7 Scheduled airline decrease Lower yield due to IDR depreciation and unstable economic condition in regional Losing revenue potency due to challenging conditions such mount eruption, SHIA fire incident, and hazardous haze in indonesia surroundings 9M14 Operating Revenue 9M15 Operating Revenue Operating Revenue *PoT Schedule airline 84.60% Non schedule airline 6.20% Others 9.20% Non schedule airline increase Sustainable increase of charter revenue to China market and Umrah (Middle East). Additional revenue from Hajj season Others increase Others revenue increased due to green performance of subsidiaries. *PoT : Percentage of total 16
Operating Expenses In USD mio % change (12.0%) Decreasing expenses 3,080.6 Fuel Fligh Ops + Maintenance + User charge 4.7% (1.6%) Tickets + Passenger Service (0.3%) G&A (2.6%) Others 2,717.6 Fuel expenses decreased 31.4% to be USD 806.5mio compared to same period last year of USD 1.2bio due to fuel price declining 37.9% compare last year. Total operating expenses decreased 11.8% to be USD 2.7 bio compared to the same period last year USD 3.1bio. Fuel efficiency YTD 9M15 USD 369.3mio as impact of fuel price declining and fuel efficiency program Non fuel efficiency YTD 9M15 USD ±115.3mio 9M14 Operating Expenses Operating Expenses PoT* Fuel 28.97% Flight ops + Rental + Maintenance + User charge 47.96% Ticketing + Passenger Service 15.62% G & A 5.89% Others 1.55% *PoT : Percentage of total 9M15 Operating Expenses Increasing expenses The rental cost increased 24.5% to be USD 659.9mio compared to the same period last year of USD 530.1 mio in line with the additional fleets. The maintenance cost increased by 9.5% to be USD 210.2mio compared to the same period last year USD 192.0mio in line with the additional fleets. 17
Summary of Consolidated Balance Sheet FY14 9M15 % YoY Asset Liability Equity Current assets 810.5 843.5 4.1 Non current assets 2,302.6 2,238.5 (2.8) Total Assets 3,113.1 3,082.0 (1.0) Current liabilities 1,219.4 1,103.7 (9.5) Non current liabilities 1,014.2 1,107.2 9.2 Total liabilities 2,233.6 2,210.9 (1.0) Total equities 879.5 871.1 (0.9) Total liabilities & Equities 3,113.1 3,082.0 (1.0) Lease Adj. Net Debt/EBITDAR 10.1x 7.5x 18
Summary of Consolidated Cash Flow 9M14 9M15 % YoY Beginning cash 480.4 434.3 (9.6) Cash from operating activities (180.9) 56.0 130.9 Cash from investing activities (189.6) (104.1) (45.1) Cash from financing activities 271.2 44.8 (83.5) Net increase (decrease) in cash (99.3) (3.1) n.a. Min 5% of Cash Ratio Ending cash 396.6 409.5 3.2 Operating Investing Financing Cash receipts from customers USD 2.8bio Cash payments to suppliers USD 2.4bio Payments of interest and financial expenses USD 45.2mio Payments PDP & Maintenance Reserve Fund: USD 303.4mio Security Deposit payment: USD 11.1mio Refund of PDP and Maintenance Reserve Fund: USD 216.2mio Receipts of security Deposit : USD 9.0mio Proceed of long term loan, bank loan, & financial institution and sukuk USD 1,4bio Payment of long term loan, bank loan & financial institution: USD 1.3bio Picture s source: www.google.com 19
Cash and Net Gearing,400.0,200.0,000.0 800.0 600.0 400.0 200.0 0.0 In USD Mio 0.99 0.97 464.9 1,313.2 856.6 464.0 1,305.8 864.4 409.5 1,212.7 853.4 0.94 3M15 6M15 9M15 Cash Debt Equity Net Gearing 1.06 1.04 1.02 1.00 0.98 0.96 0.94 0.92 0.90 31% 60% Max 2.5x of Debt to Equity Ratio 9% Min capital USD 800mio Debt Structure 9M2015 Shor term loan Long term loan Lease Picture s source: www.google.com 20
Subsidiaries 21
Subsidiaries Aero Wisata (in IDR bio) Citilink (in USD 000) 9M2014 9M2015 % YoY 9M2014 9M2015 % YoY Operating Revenue 2,331.4 2,317.0 (0.6) Operating Revenue 287,853.0 351,728.0 22.2 Operating Income 82.3 98.4 19.5 Operating Income (11,208.0) 12,561.0 212.1 Net Income 64.1 77.0 20.0 Net Income (12,134.0) 5,888.0 148.5 EBITDA 167.5 189.9 13.4 EBITDA (4,747.1) 22,249.6 568.7 Dec14 Sept15 % YoY Dec14 Sept15 % YoY Asset 2,735.5 2,830.9 3.5 Asset 166,019.0 218,420.0 31.6 Liability 937.2 952.1 1.6 Liability 209,441.0 199,902.0 (4.6) Equity 1,798.3 1,878.8 4.5 Equity (43,422.0) 18,519.0 142.6 Gapura Angkasa (in IDR bio) GMF Aero Asia (in USD 000) 9M2014 9M2015 % YoY 9M2014 9M2015 % YoY Operating Revenue 883.0 983.2 11.4 Operating Revenue 189,431.7 213,355.5 12.6 Operating Income 15.6 76.3 389.0 Operating Income 19,925.1 40,716.9 104.3 Net Income 8.7 57.8 565.1 Net Income 14,638.9 28,536.6 94.9 EBITDA 63.2 125.2 98.1 EBITDA 25,530.9 46,106.7 80.6 Dec14 Sept15 % YoY Dec14 Sept15 % YoY Asset 787.0 842.9 7.1 Asset 251,351.9 284,929.7 13.4 Liability 422.0 449.6 6.6 Liability 146,760.0 170,429.4 16.1 Equity 365.0 393.2 7.7 Equity 104,592.0 114,500.3 9.5 22
Subsidiaries Abacus DSI (in USD 000) Asyst (in USD 000) 9M2014 9M2015 % YoY 9M2014 9M2015 % YoY Operating Revenue 2,318.1 2,598.4 12.1 Operating Revenue 13,927.2 9,318.8 (33.1) Operating Income 331.5 656.4 98.0 Operating Income 29.1 (5.8) (120.0) Net Income 288.5 500.8 73.6 Net Income (82.5) 14.5 (117.5) EBITDA 490.6 786.6 60.3 EBITDA 2,002.8 1,977.1 (1.3) Dec14 Sept15 % YoY Dec14 Sept15 % YoY Asset 6,644.6 7,812.6 17.6 Asset 28,769.1 27,159.5 (5.6) Liability 683.7 1,333.7 95.1 Liability 16,984.1 15,424.1 (9.2) Equity 5,960.9 6,478.9 8.7 Equity 11,785.0 11,705.4 (0.7) GIH France S.A.S (in USD 000) 9M2014 9M2015 % YoY Operating Revenue 27,007.4 232,742.7 761.8 Operating Income (38.6) 521.0 1,450.1 Net Income (99.0) 538.5 643.8 EBITDA (98.3) 567.5 677.3 Dec14 Sept15 % YoY Asset 67,942.0 160,450.5 136.2 Liability 67,248.4 159,218.4 136.8 Equity 693.6 1,232.1 77.6 23
PT Garuda Indonesia (Persero) Tbk. Investor Relations Department 2nd Floor Management Building Garuda City Soekarno-Hatta International Airport Phone: 62-21-2560 1201 Email: investor@garuda-indonesia.com 24