INVESTOR NEWSLETTER PT Garuda Indonesia (Persero) Tbk. Full Year 2013 Editions FY 2012 FY 2013 Change Financial Summary (USD Mio) OPERATING REVENUES 3,472 3,716 7.02% OPERATING EXPENSES 3,304 3,660 10.75% OTHERS (INCOME) 10-50 INCOME (LOSS) FROM OPERATIONS 158 107-32.59% INCOME (LOSS) BEFORE TAX 142 59-58.36% COMPREHENSIVE INCOME (LOSS) 135 51-62.57% EBITDAR 682 704 3.30% Total Current Assets 637 819 28.68% Total Non Current Assets 1,881 2,135 13.46% TOTAL ASSETS 2,518 2,954 17.31% Total Current Liabilities 754 984 30.45% Total Non Current Liabilities 649 853 31.43% TOTAL LIABILITIES 1,403 1,837 30.90% TOTAL EQUITY 1,115 1,117 0.20% TOTAL LIABILITIES AND EQUITY 2,518 2,954 17.31% NET CHANGE IN CASH -84 188-323.68% Summary Operating revenues grew by 7.02%, EBITDAR went up 3.30% Total income for the period stood at USD 11.20 Million Passengers carried increased 22.29%, reaching 24.97 million passangers Seat Load Factor decreased 1.85 percentage points to 74.07% Share Information Ticker GIAA.IJ / GIAA.JK Last Price IDR 500 (30 Dec 13) 52 Week High IDR 700 52 Week Low IDR 470 Daily Share Price Movements Financial Ratios EBITDAR Margin 19.60% 18.90% -0.70% Net Gearing 96.62% 121.86% 25.24% Interest Coverage (x) 626.75% 178.09% -448.66% ROA 4.01% 2.08% -1.93% ROE 9.05% 5.49% -3.56% Operating Indicators Passenger Carried 20,415,285 24,965,239 22.29% ASK (000) 36,013,832 43,133,085 19.77% RPK (000) 27,342,093 31,949,989 16.85% SLF (%) 75.92 74.07-1.85% Cargo Carried (Tonnage) 280,285 345,923 23.42% CLF (%) 30.75 31.55 0.80% Frequencies 153,266 196,403 28.15% Aircraft Utilization (Hours per Day) 10:44 11:00 00:00 OTP (%) 84.9 83.8-1.10% No. of Fleets 95 126 31 Financial Indicators Passenger Yield Total (Usc) 9.65 9.06-6.14% CASK Total (USc) 7.85 7.55-3.82% CASK (excl fuel) Total (USc) 4.58 4.40-3.93% Av. Fuel Price (USD/litre) 0.91 0.88-3.34% Source: Bloomberg Shareholders Information No. of Shares Percentage Government of Indonesia 15,653,128,000 69.14% Retail 1,031,546,231 4.56% Employee 90,467,044 0.40% Institutional 5,865,854,725 25.91% Total 22,640,996,000 Domestic Investor 21,255,231,735 93.88% Foreign Investor 1,385,764,265 6.12% PT GARUDA INDONESIA (PERSERO) Tbk. 2 nd Floor Management Building, Garuda City Soekarno Hatta International Airport Jakarta, Indonesia Investor Relation Desk Phone : + 62 21 2560 1201 email : investor@garuda-indonesia.com website : www.garuda-indonesia.com/investor-relation INVESTOR NEWSLETTER 1
In line with Garuda Indonesia s commitments to develop and strengthen its flight network in globally, the airlines adopted year 2013 as a moment to broaden and strenghten its network in the domestic and international markets, and at the same time echanced services to customers by offering a wider selection of destinations and travel options. During FY2013, Garuda Indonesia carried 24.97 Million Passengers, about 22.29% higher than year of 2012. Growth also noted on ASK and RPK with 19.77% and 16.85% increase year on year, respectively. With the total of 34 new fleets arrived in 2013, including new aircraft family B777-300ER and ATR72-600, numerous new domestic flights and international flights, more destinations from partnership agreements and new service class offered, subsequently from operating revenues USD 3.72 Million, comprehensive income recorded USD 1 million and EBITDAR grew by 3.30%. Expansions and development are the evidences that Garuda Indonesia has always been striving its best to present an unforgettable authentic flying experiences to the customers. Garuda Indonesia s 2013 Domestic Routes Garuda Indonesia s 2013 International Routes 2 INVESTOR NEWSLETTER
Operating Revenues With supports from passenger revenues that increased by 9.97%, from USD 2.69 Biillion in 2012 to USD 2.96 Billion in 2013, while cargo revenues rose from USD 184.89 Million in 2012 to USD 195.95 Million in 2013 or equal to 5.98% progression, in 2013 Garuda Indonesia booked 7.02% improvement for operating revenues compared to previous year. Hajj Revenues declined by 21.06%, from USD 21.83 Million in 2012 to USD 20.77 Million in 2013, as Government of Saudi Arabia has reduced Hajj quota up to 20% for 2013 for many countries including India, Pakistan and Indonesia. Operating Results With rigorous expansions in terms of new fleets arrived, new routes and additional frequencies, in 2013 Garuda Indonesia carried 24.97 Million passengers, a 22.29% greater than 2012, from the total of 43.13 Billion production capacity (ASK). Along with 19.77% increase on ASK, year on year, demand also grew by 16.85%, that reached 31.95 Billion passengers. In spite of production and demand improvements, SLF (Seat Load Factor) slighthly shrinkaged by 1.85%, from 75.92% to 74.07%, year on year. Operating Performances Though Garuda Indonesia remarked 7.02% escalation on operatin revenues, in line with a higher flight frequency, the company saw its operating expenses rise by 12.61 % to USD 3.71 Billion which contributed by non-fuel expenses made up for 61.72 percent of the figure and fuel accounted for the remaining 38.28 percent. Which ultimately resulted on USD 56.45 Million operating profit, a decrease of 66.41% compared to last year. EBITDAR and Income For the Periods In 2013, Garuda Indonesia booked USD 704 Million for EBITDAR, about 3.30% higher than EBITDAR in 2012, while EBITDAR margin dropped 0.70%, from 19.60% to 18.80%. Income for the period stood at USD 11.20 Million, reduced 89.90% from USD 110.84 Million in 2012, as in this year Garuda Indonesia enlarged cost of long term obligations to support the expansion of its fleets. Balance Sheet Cash and cash equivalents expanded 45.88% from USD 325.78 Million to USD 475.26 Million, while total Asssets and total liabilities rose 17.31% and 30.90% respectively, year on year. A significant figure emerged from long term loans with 163.91%, from USD 106.13 Million in previous year to USD 280.08 in 2013 Million, as Garuda Indonesia continues bringing in new fleet members to support its Quantum Leap program. Cash Flow Activities A 61.88% tightening cash flow from operating activites to USD 139.03 Million was largely because cash paid to supplier, along with interest and financial charges. While negative cash flow from investing activites reduced 27% to minus USD 382.84 Million as a result from refund of advance payment for purchase or aircrafts. Cash flow from financing activites expanded 472.87% from USD 75.46 Million to USD 432.37 Million due to cash received from long term loan and debt securities in issue. INVESTOR NEWSLETTER 3
Domestic Passenger Services Garuda Indonesia s domestic performance in 2013 was denoted by 15.85 Million passengers carried, which represented 13.47% growing compared to 2012 s domestic performance. Domestic s ASK grew by 15.78% while demand increased by 11.39% over last year. As a result, SLF decreased 4.32% from 80.63% in 2012 to 77.57% in 2013. Garuda Indonesia s Fleet Status as of December 2013 International Passenger Services Garuda Indonesia carried 3.77 Million international passengers in 2013, a same as 5.13% growth compared to previous year. As a result from 13.52% ASK growth, demand expanded by 9.77%, from 13.05 Billion to 14.32 Billion international passengers, while SLF increase 0.59% in associated with previous international presentation. Citilink Passenger Services As Garuda Indonesia s Low Cost Carries (LCC) subsidiaries, in 2013 Citilink presented impressive operating perfomance. In 2012 Citilink merely carried 2.86 Million passengers, while in 2013 it carried 5.34 Million passengers, or considered as 86.82% growth. These numbers were result from production that grew 74.80%, from 3.12 Billion to 5.45 Billion seats and 87.55 % demand growing to 4.20 Billion passengers. Consequently SLF ascended from 71.73% to 77%, or a 3.17% escalation. Dec-12 Dec-13 Ops Lease Fin Lease/ Owned Narrow Body B737-300 3 3 2 1 B737-500 5 4-4 B737-800 NG 55 65 65 - CRJ1000 NextGen 5 12 7 5 ATR72-600 - 2 2 - Total Narrow Body 68 86 76 10 Wide Body B747-400 2 2-2 B777-300ER - 4 4 - A330-200 9 11 11 - A330-300 6 7 1 6 Total Wide Body 17 24 16 8 Citilink B737-300 6 5-5 B737-400 1 1 1 - A320-200 14 24 24 - Total Citilink 21 30 25 5 TOTAL FLEET 106 140 117 23 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 successfully completed its Initial Public Offering (IPO) on Indonesia Stock Exchange (ticker GIAA.IJ/GIAA.JK). 4 INVESTOR NEWSLETTER
Appendix 1. Income Statement Income Statement FY 2012 FY 2013 % Change OPERATING REVENUES 3,472,468,962 3,716,076,586 7.02% Passenger 2,687,450,057 2,955,288,708 9.97% Cargo 184,889,000 195,952,040 5.98% Excess baggage 7,029,768 10,081,118 43.41% Mail and document 7,881,919 8,764,325 11.20% Hajj 247,262,921 195,192,932-21.06% Charter 21,828,656 20,772,955-4.84% Subsidiaries 316,126,641 330,024,508 4.40% OPERATING EXPENSES 3,304,396,858 3,659,628,311 10.75% Fuel 1,255,126,779 1,420,139,208 13.15% Aircraft rental and charter 448,601,352 592,251,660 32.02% Flight Operations 153,745,951 170,293,337 10.76% Ticketing, sales and promotions 308,379,864 326,552,291 5.89% Passenger services 263,949,418 283,500,861 7.41% User charges and station 227,245,949 252,084,982 10.93% General and administrative 176,649,413 176,413,087-0.13% Maintenance and overhaul 227,414,642 215,144,705-5.40% Depreciation and amortization 129,973,234 155,475,216 19.62% Non aircraft rental 42,352,857 46,312,228 9.35% Subsidiaries Expenses 60,983,248 71,582,655 17.38% OTHERS (INCOME) 9,974,151 (50,121,919) N/A INCOME (LOSS) FROM OPERATIONS 158,097,953 106,570,194-32.59% Equity in net income of associates 1,927,546 1,860,416-3.48% Finance Income 6,755,823 10,347,000 53.16% Finance cost -25,224,919-59,840,088 137.23% INCOME (LOSS) BEFORE TAX 141,556,403 58,937,522-58.36% TAX BENEFIT (EXPENSE) -40,687,981 2,384,777 N/A INCOME (LOSS) FOR THE PERIOD 100,868,422 61,322,299-39.21% OTHER COMPREHENSIVE INCOME (EXPENSES) 34,566,735-10,634,860 N/A TOTAL COMPREHENSIVE INCOME (LOSS) 135,435,157 50,687,439-62.57% INCOME ATRIBUTABLE TO: Owner the parent company 144,523,947 966,308-99.33% Non Controlling interest 885,361-400,788 N/A INCOME (LOSS) FOR THE PERIOD 145,409,308 565,520-99.61% EBITDAR 681,500,000 704,000,000 3.30% EBITDAR Margin 19.60% 18.90% -0.70% Note: Numbers displayed are in USD INVESTOR NEWSLETTER 5
Appendix 2. Balance Sheet Balance Sheet December 2012 December 2013 % Change ASSETS CURRENT ASSETS Cash and cash equivalents 325,784,942 475,260,630 45.88% Total Current Assets 636,566,218 819,133,923 28.68% Property and equipment 18,912,898 22,020,790 16.43% Total Non Current Assets 1,881,431,548 2,134,651,029 13.46% TOTAL ASSETS 2,517,997,766 2,953,784,952 17.31% LIABILITIES CURRENT LIABILITIES Bank loans 5,651,251 45,222,668 700.22% Current maturites of: Trade Payable 173,469,631 206,186,276 18.86% Long-term loans 106,125,048 280,075,641 163.91% Lease liabilities 58,132,590 53,268,680-8.37% Lease liabilities for aircraft return & maintenance cost 21,795,528 15,060,990-30.90% Other Current Liabilities 389,033,004 384,076,512-1.27% Total Current Liabilities 754,207,052 983,890,767 30.45% Long-term loans 294,822,442 324,619,850 10.11% Lease liabilities 148,220,008 138,482,264-6.57% Other Non Current Liabilities 205,788,186 389,643,954 89.34% Total Non Current Liabilities 648,830,636 852,746,068 31.43% TOTAL LIABILITIES 1,403,037,688 1,836,636,835 30.90% EQUITY Capital stock 1,146,031,889 1,146,031,889 0.00% Equity Attributable to: Owners for the Company 1,113,089,150 1,115,677,977 0.23% Non controlling interest 1,870,928 1,470,140-21.42% TOTAL EQUITY 1,114,960,078 1,117,148,117 0.20% TOTAL LIABILITIES AND EQUITY 2,517,997,766 2,953,784,952 17.31% Note: Numbers displayed are in USD 6 INVESTOR NEWSLETTER
Appendix 3. Cash Flown and Financial Ratios Cash Flow FY 2012 FY 2013 % Change Net Cash Provided from: Operating Activities 364,685,555 139,025,923-61.88% Investing Activities -524,398,946-382,836,665-27.00% Financing Activities 75,457,955 432,274,934 472.87% NET INCREASE (DECREASE) IN -84,255,436 188,464,192 N/A 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: -7,212,199-38,988,504 440.59% AT END OF THE YEAR 325,784,942 475,260,630 45.88% Financial Ratios FY 2012 FY 2013 % Change EBITDAR Margin 19.60% 18.90% -0.10% Net Gearing (x) 96.62% 121.86% 25.24% Interest Coverage (x) 626.75% 178.09% -448.66% Total Debt/Assets (x) 56% 62% 6.46% Total Debt/Equity (x) 1.26 1.64 30.65% Liabilities/Equity (x) 1.26 1.64 30.65% ROA 4.01% 2.08% -0.84% ROE 9.05% 5.49% -2.15% Note: Numbers displayed are in USD INVESTOR NEWSLETTER 7
Appendix 5. Group Operating Indicators Group FY 2012 FY 2013 % YoY Aircraft Utilization (Hours) 10:44 10:44 0:00 Frequencies 153,266 196,403 28.15% On Time Performance 84.9 83.8-1.10% ASK ( 000) 36,013,832 43,133,085 19.77% Average Fuel Price (USD/L) 0.91 0.88-3.34% Fuel Burn / RTK 0.41 0.41-0.62% Fuel Burn / Blockhours 3,981 3,857-3.12% Passenger Carried 20,415,285 24,965,239 22.29% RPK ( 000) 27,342,093 31,949,989 16.85% Seat Load Factor (%) 75.92 74.07-1.85% Passenger Yield (US ) 9.65 9.06-6.14% Cargo/Mail Uplifted (Tonnage) 280,285 345,923 23.42% CLF (%) 30.75 31.55 0.80% CASK (US ) 7.85 7.55-3.82% CASK-excl Fuel (US ) 4.58 4.40-3.93% Domestic FY 2012 FY 2013 % YoY Passenger Carried 13,967,815 15,849,746 13.47% Frequencies 104,636 130,262 24.49% ASK ( 000) 14,955,545 17,316,120 15.78% RPK ( 000) 12,058,562 13,432,356 11.39% Seat Load Factor (%) 80.63 77,57-3.06% Passenger Yield (US ) 11.45 10.75-6.10% CASK (US ) 8.83 8.58-2.78% CASK-excl Fuel (US ) 5.35 5.15-3.82% International FY 2012 FY 2013 % YoY Passenger Carried 3,586,477 3,770,573 5.13% Frequencies 24,482 27,131 10.82% ASK ( 000) 17,937,606 20,362,149 13.52% RPK ( 000) 13,045,177 14,319,698 9.77% Seat Load Factor (%) 72.73 70,33 0.59% Passenger Yield (US ) 8.64 8.34-3.52% CASK (US ) 7.28 7.07-2.84% CASK-excl Fuel (US ) 4.17 4.09-1.90% Citilink FY 2012 FY 2013 % YoY Passenger Carried 2,860,993 5,344,920 86.82% Frequency 24,148 39,010 61.55% ASK ( 000) 3,120,678 5,454,816 74.80% RPK ( 000) 2,238,353 4,197,935 87.55% Seat Load Factor (%) 71.73 77,0 3.17% Passenger Yield (US ) 5.80 6.10 5.22% CASK (US ) 6.46 6.07-6.01% CASK-excl Fuel (US ) 3.23 3.20-0.81% 8 INVESTOR NEWSLETTER