Analyst Meeting & Presentation 3Q 2012 Result Announcement Jakarta, 25 October 2012 0 0
Shareholder List as of 30 September 2012 Shareholder List as of 30 September 2012 Number of Shares % Domestic Government of Indonesia 15,653,128,000 69.14% Retail 1,243,815,798 5.49% Employee 96,823,977 0.43% Instutional 4,602,880,215 20.33% Total Domestic 21,596,647,990 95.39% International Retail 2,633,500 0.01% Instutional 1,041,714,510 4.60% Total International 1,044,348,010 4.61% TOTAL 22,640,996,000 100.00% Share Performance Price (30Sept12, IDR) : 620 Market cap (IDR. tn) : 14,04 Number of share : 22,640,996,000 Free Float (%) : 31.86 52-week price range : 780 390 1
Contents 1. 9M 2012 Highlight 2. Market & Competition 3. 9M 2012 : Operating Result 4. 9M 2012 : Financial Result 5. Subsidiaries Highlight 2
9M 2012 Highlight Emirsyah Satar, CEO 3
9M-2012 Highlight Indicator % YoY 9M 2012 Achievement 1 Passenger Carried 20.2 14,89 million 2 Cargo Uplifted 18.7 201,070 ton 3 Passenger Yield 0.6 U$c 9.55 4 Total Revenue 14.4 USD 2.39 billion 5 Passenger Revenue 11.70 USD 2.13 billion 6 Operating Income 140.4 USD 92.75 million 7 Income for the Period 51.9 USD 56.48 million Operating Indicator figures are for Garuda Indonesia and Citilink Financial Indicator figures are for Garuda Indonesia Group. 4
5 The Market & Competition
Competition on routes which GA flown Per July 2012 GA Domestic traffic is growth by 14.9% YoY GA International traffic is growth by 17.9% In million passenger In million passenger 24.1 6,6 13.2% 27.3 7,6 14.9% 6.2 1,8 12.9% 7.0 17.9% 2,0 17,5 12.6% 19,7 5,8 6,3 11.3% Jan - Jul 2011 Jan - Jul 2012 Jan - Jul 2011 Jan - Jul 2012 Others GA Dom Others GA Int'l Domestic s GA Market share increase to 28% International s GA Marketshare increase to 24.5% 7M - 2011 7M - 2012 7M - 2011 7M - 2012 72,4 % 27,6 % 72,0 % 28,0 % 76,7 % 23,3 % 75,5 % 24,5 % GA Dom OTHERS Sources: Company (direct competition GA routes in/out CGK,DPS,SUB,UPG), exclude Citilink GA Int'l OTHERS 11 6
Routes Changes 3Q 2012 Routes changes Freq / Week Route Start Ops Dom Add freq 14x to 21x Cengkareng DJB 15 Jul 2012 28x to 35x Cengkareng Padang 25 Aug 2012 98x to 105x Cengkareng Denpasar 26 Aug 2012 63x to 70x Cengkareng Jogyakarta 3 Sept 2012 56x to 63x Cengkareng Balikpapan 24 Sept 2012 Int l Re-Route 7x Makassar Balikpapan Singapore iso Makassar Singapore 15 Jul 2012 Reduce Freq 14x to 7x Denpasar Perth 24 Aug 2012 7x to 5x Cengkareng Sydney 3 Sept 2012 21x to 14x Cengkareng Kualalumpur 24 Sept 2012 7
8 9M 2012 : Operating Result
Consistent Operational Improvement Passenger carried increased (in mio) Seat Load Factor improved + 36.2% + 20.2% + 3.5 bp + 0.7 bp 12,53 17,07 12,38 14,89 75,72% 75,16% 75,86% 71,70% 2010 2011 9M-2011 9M-2012 Higher aircraft utilization 2010 2011 9M-2011 9M-2012 Flight frequency increased + 01:17 + 00:05 + 26.6% 17.2% 10:42 10:47 130.043 10:10 102.724 94.899 111.251 9:23 2010 2011 9M-2011 9M-2012 2010 2011 9M-2011 9M-2012 9
Also Sustainable Quarterly Performance All figures included Garuda Indonesia and Citilink ASK RPK 10 8 6 4 2 5,2 7,4 8,6 9,2 9,0 8,3 8,4 8,4 6,6 7,0 6,9 8 6 4 2 6,2 5,3 3,5 7,1 7,1 6,2 6,6 6,4 5,3 5,1 4,5 0 Q1 Q2 Q3 Q4 0 Q1 Q2 Q3 Q4 2010 2011 2012 Frequencies 2010 2011 2012 Passenger Carried 40.000 30.000 35.817 36.876 38.558 32.334 33.613 35.144 28.952 26.333 26.924 26.340 23.127 6 4 2,5 3,7 4,6 3,0 4,2 5,0 5,3 4,5 4,7 3,5 3,5 20.000 2 10.000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2012 2010 2011 2012 10 10
Operating Indicators 9M 2012 (Garuda Indonesia) Operational Passenger & Cargo Financial 9M-2011 9M-2012 % YoY Aircraft Utilization (Hours) 10:42 10:47 0:05 Frequencies 85,418 94,923 11.1 On Time Performance (%) 87.61 84.50-3.5 ASK ( 000) 22,825,121 24,784,347 8.6 Average Fuel Price (USD/L) 0.90 0.91 1.1 Passenger Carried 11,257,779 13,008,793 15.6 RPK ( 000) 17,128,030 18,906,249 10.4 Seat Load Factor (%) 75.04 76.28 1.7 Passenger Yield (US ) 9.69 9.85 1.7 Cargo/Mail Uplifted (Ton) 150,314 168,384 12.0 Cargo Yield (US ) 36.48 37.72 3.4 CASK (US ) 7.87 7.95 1.0 CASK (excl fuel) (US ) 4.64 4.71 1.5 11
Operating Indicators 9M 2012 GA by sector DOM INT L 9M-2011 9M-2012 % YoY Passenger Carried 8,868,014 10,305,728 16.2 ASK ( 000) 9,800,014 10,982,928 12.1 RPK ( 000) 7,658,795 8,895,757 16.2 Seat Load Factor (%) 78.15 81.00 3.6 Passenger Yield (US ) 11.63 11.35-2.4 CASK (US ) 8.93 8.85-0.9 CASK excl fuel (US ) 5.50 5.41-1.6 Passenger Carried 2,389,765 2,703,065 13.1 ASK ( 000) 13,025,107 13,801,419 6.0 RPK ( 000) 9,469,236 10,010,492 5.7 Seat Load Factor (%) 72.70 72.53-0.2 Passenger Yield (US ) 8.12 8.51 4.8 CASK (US ) 7.08 7.24 2.3 CASK excl fuel (US ) 3.99 4.15 4.0 12
Financial & Operating Indicators 9M 2012 (Citilink) Operational Passenger & Cargo Financial 9M-2011 9M-2012 % YoY Number of Aircraft 6 15 150.0 Frequencies 9,481 16,328 72.2 ASK ( 000) 1,226,198 2,087,700 70.3 Passenger Carried 1,127,246 1,883,950 67.1 RPK ( 000) 948,915 1,478,785 55.8 Seat Load Factor (%) 77.39 70.83-8.5 Passenger Yield (US ) 5.90 5.77-2.2 CASK (US ) 6.48 6.23-3.9 CASK excl fuel (US ) 3.06 2.97-2.9 13 13
Passengers Carried Breakdown by Segment 9M - 2011 9M - 2012 19% 9% 18% 13% 72% 69% Domestik International Citilink Domestic International Citilink Passenger Carried in 9M 2011 : 12.4 mio Passenger Carried in 9M 2012 : 14.9 mio Domestic segment still the major contributor for our traffic, but the growth driver would be from Citilink. 14 14
Improving Productivity and Cost Efficiency Year-on-Year Quarter-on-Quarter Net Rev/RTK CATK CATK excl Fuel Net Rev/RTK CATK CATK excl Fuel 73,1 92,4 75,7 81,4 94,6 92,9 93,3 84,24 92,71 100,26 99,37 92,07 92,05 95,78 47,8 61,2 47,6 50,1 55,7 55,1 54,7 53,48 56,70 54,98 57,43 55,35 54,79 54,00 29,9 34,7 32,8 32,6 32,7 32,2 32,0 32,41 32,43 31,81 34,06 32,45 31,35 32,14 2007 2008 2009 2010 2011 9M 2011 9M 2012 0.57 0.86 0.51 0.66 0.90 0.90 0.91 0.83 0.95 0.90 0.89 0.92 0.93 0.87 Jet Fuel (USD/Liter) 1Q-11 2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 15 15
Impact from Rejuvenation of Fleet Fuel burn / RTK Fuel Burn / Blockhours 0,462 4.434 0,452 0,453 4.360 4.267 4.311 0,430 4.145 4.195 0,420 0,419 0,415 4.029 2007 2008 2009 2010 2011 9M 11 9M 12 2007 2008 2009 2010 2011 9M 11 9M 12 - Younger fleet age enable us to improve our efficiency on fuel usage - We have successfully minimize our fuel burn per RTK from above 0.45 before 2010, to just 0.42 beyond 2011. 16
Fleet: Expansion and Rejuvenation of Fleet Sep 2011 Dec 2011 Sep 2012 Ops Lease Fin Lease Narrow Body 63 62 63 57 6 B737-300 5 5 3 2-1 B737-400 6 1 - - - - B737-500 5 5 5 - - 5 B737-800 NG 47 51 55 55 - - Wide Body 15 16 16 8 6 2 B747-400 3 3 2 - - 2 A330-200 6 7 8 8 - - A330-300 6 6 6-6 - Citilink 7 9 16 11-5 B737-300 5 5 6 1-5 B737-400 1 1 1 1 - - A320-200 1 3 9 9 - - Owned TOTAL FLEET 85 87 95 76 6 13 Average Age 6.23 years 6.50 # of Aircraft Fleet at 31 Dec 2011 87 IN: Delivery of: +11 A330-200 1 A320-200 6 B737-800 NG 4 OUT: -3 B737-400 -1 B737-300 -1 B747-400 -1 Fleet at 30 Sept 2012 95 Planned 2012: # of Aircraft Fleet at 30 Sept 2012 95 IN: Delivery of: +10 A330-200 1 A320-200 4 CRJ1000 5 Fleet at 31 Dec 2012 105 17
Garuda Indonesia (GA) Etihad Airways (EY) Codeshare agreement Steps taken to accelerate access to global network More benefit for Garuda Indonesia customer Expand International Network Coverage, especially European Network Extensive collaboration possibility beyond codesharing (SPA, Frequent Flyer, Lounges, Maintenance, staff travel, joint pricing, joint distribution, cargo cooperation etc) 42nd partner for EY, 11th partner for GA Subject to regulatory approval, will expand GA network to 28 new destinations (have good connection with GA schedule) Global Alliance Program through SkyTeam will only be effective in 2014 18 Page 18 5 November 2012
GA EY Codeshare agreement Steps taken to accelerate access to global network Current Network GA EY Network Amsterdam To Other Europe Istanbul Seoul US/Canada Amsterdam Europe Dubai Taipei Abu Dhabi Jakarta Middle East & Africa JKT To some domestic & ASEAN city Multiple Partner : To Europe : KLM (London, Frankfurt, Zurich, Madrid, Munich) Turkish Airlines (Istanbul) To US : China Airlines (San Fransisco & Los Angeles) To North Asia : China Southern (Guang Zhou) Korean Air (Seoul) To Asia : Singapore Airlines (Denpasar) Silk Air (some domestic dest) Vietnam Airlines (Saigon) Phillipine Airlines (Manila) Royal Brunai (Bandar Seribegawan) Single Partner to Europe, US, Canada, Middle East and Africa Europe dest: Paris London Frankfurt Milan Munich Manchester Istanbul Middle East dest: Dublin Jeddah Bahrain Dusseldorf Muscat Kuwait Geneve Dammam Beirut Brussels Riyadh Amman Athens Domodedovo US/Canada dest: New York Chicago Toronto Africa dest: Cairo Johannesburg Nairobi 19 Page 19 5 November 2012
Human Capital 9M-2011 9M-2012 % YoY Number of Employees 5,835 6,105 4.63 Ground Staff 3,031 3,129 3.23 Cockpit Crew 706 760 7.65 Cabin Crew 2,098 2,216 5.62 ASK/Employee 3,912 4,060 3.78 RPK/Employee 2,935 3,097 5.52 Cockpit Crew/Aircraft 9 9 0.00 Cabin Crew/Aircraft 27 28 3.70 Opt Rev/Employee (IDR Mio) 323 343 6.19 Recruitment Pilot by Sources 2009 - current: Others 18% BIFA 49% STPI 33% Total recruited 2009-current : 321 20
9M 2012 : Financial Result Handrito Hardjono, CFO 21
Income Statement Summary Consolidated Achieving USD 92.8 mio Income from Operations in 9M12, increase 140.4% from Operation in 9M11 And we could increase Income from Current Period to USD 60.8 mio in 9M12, from USD 29.2 mio in 9M11 In USD Mio 9M-2011 9M-2012 % YoY Operating Revenue Operating Expenses Income EBITDAR 369.4 445.3 20.5 Scheduled Airline 1,880.8 2,129.7 13.2 Non Scheduled Airline 10.8 60.5 458.6 Others 193.9 196.3 1.3 Total 2,085.5 2,386.6 14.4 Fuel 780.3 885.9 13.5 Non Fuel 1,266.6 1,407.9 11.2 Total 2,046.9 2,293.8 12.1 Income/Loss from Operations 38.6 92.8 140.4 EBT 51.6 85.3 65.3 Income/Loss Current Period 37.2 56.5 51.9 Comprehensive Income/Loss 29.2 60.8 108.2 22
Operating Revenue 9M-2012 Changes in Operating Revenues (USD Mio) +$232.4 (+13.2%) +$16.7 (+13.3%) +$49.7 (+458.6%) +$2.4 (+1.3%) $2,386.6 $2,085.5 Strong Operating revenue growth, driven by 13.3% growth on passenger revenue (carried additional 2.5 million 9M-2011 Operating Revenue Passenger Cargo Non Scheduled Others 9M-2012 Operating Revenue passenger compare 9M-2011) and passenger yield increase 0.6% 23
Operating Expenses Changes in Operating Expenses (USD Mio) $105.6 +13.5% $15.4 +8.3% Maintenance $23.7 +13.0% Pax Service $6.4 +3.2% Ticketing & Sales $16.1 +10.5% $10.4 +7.3% G & A User Charges & Station $4.0 +15.2% Others $2,293.8 Expense Item PoT* Others 1.3% G & A 6.7% User Charges & Station 7.4% $2,046.9 $65.3 +17.3% Flight Ops Fuel Ticketing & Sales 8.9% Pax Service 9.0% Maintenance 8.8% Fuel 38.6% 9M-2011 Operating Expenses Operating Expenses only grew by 12.1%, as our Operating Revenue grew by 14.4%. 9M-2012 Operating Expenses Flops 19.3% *) PoT=Percentage of Total 24
Balance Sheet Summary Consolidated (in USD Mio) 31-Dec-11 30-Sep-12 % YoY Current Assets 749.9 567.9-24.3 Asset Liabilities Non Curents Assets 1,325.5 1,639.1 23.7 Total Assets 2,075.4 2,207.0 6.3 Current Liabilities 645.8 747.7 15.8 Non Curent Liabilities 506.8 477.0-5.9 Total Liabilities 1,152.7 1,224.7 6.3 Equities Total Equities 922.8 982.3 6.4 Total Liabilities & Equities 2,075.4 2,207.0 6.3 25
Cash Flow Summary Consolidated (in USD Mio) 9M-2011 9M-2012 % YoY Beginning Cash/Cash Equivalents 131.0 417.3 218.6 Operating Activities 139.3 215.4 54.6 Investing Activities (198.0) (403.6) 103.9 Financing Activities 330.9 (15.4) (104.7) Net Increase (Decrease) in Cash/Cash Equivalents 272.3 (203.6) (174.8) Effect of Foreign Exchange Rate Changes 23.4 (4.5) -119.0 Ending Cash/Cash Equivalents 426.6 209.2-51.0 Cash Out Flow from Investing Activities amounted USD403.6 Mio for: USD405.6 is paymennt for PDP & Maintenance Reserve Fund USD 15.3 Mio payment for Security Deposit USD 31.6 Mio refund of PDP 26
Sustainable Low Net Gearing Cash Position & Net Gearing Total Debt Breakdown 1.000 0,66 862,8 0,75 0,1% 750 556 0,50 33,5% 500 250 131 363 417 0,05 209,2 0,24 0,25 66,4% - 31-Dec-10 31-Dec-11 30-Sep-12 - Long-term Loan Lease Liabilities Bank Loan (Short-term) Cash Position Advance for A/C Purchase & Maintanace Reserve Fund Net Gearing Total Debt on September 2012: USD 448.7 mio - Our Cash Position decreased as per Sep 2012 due to increasing Advance for A/C Purchases and Maintenance Reserve Funds - While at the same time we are able to maintain our Net Gearing in low level - As per Sept we carry USD 448.7 million Total Debt, with composition of 66.4% Long-term Loan, 33.5% Lease Liabilities and 0.1% Bank Loans (short-term) 27
28 Subsidiaries
Summary of Subsidiaries Performance PT Aerowisata Financial 9M-2012 (in USD) 9M-2011 9M-2012 % Operating Income 8,703,386 4,303,489-50.6 Net Income 7,448,217 4,308,641-42.2 EBITDA 13,781,576 9,741,923-29.3 Dec 2011 Sep-2012 % Assets 198,406,365 193,799,076-2.3 Liabilities 68,587,270 67,149,741-2.1 Equity 129,819,095 126,649,335-2.4 PT GMF-AA Financial 9M-2012 (in USD) 9M-2011 9M-2012 % Operating Income 8,894,744 9,864,090 10.9 Net Income 4,587,081 8,188,683 78.5 EBITDA 10,937,134 12,311,618 12.6 Dec 2011 Sep-2012 % Assets 151,409,683 182,009,392 20.2 Liabilities 92,509,430 115,220,142 24.5 Equity 58,900,253 66,789,250 13.4 PT Aero System Financial 9M-2012 (in USD) 9M-2011 9M-2012 % Operating Income 491,392 (317,003) -164.5 Net Income 52,811 7,399-86.0 EBITDA 1,096,222 662,721-39.5 Dec 2011 Sep-2012 % Assets 24,884,051 27,844,561 11.9 Liabilities 13,048,387 16,001,498 22.6 Equity 11,835,664 11,843,063 0.1 PT Abacus Indonesia Financial 9M-2012 (in USD) 9M-2011 9M-2012 % Operating Income (48,288) 51,811 207.3 Net Income (8,976) 18,393 304.9 EBITDA - - - Dec 2011 Sep-2012 % Assets 5,400,416 5,601,516 3.7 Liabilities 833,827 1,019,089 22.2 Equity 4,566,589 4,582,426 0.3 29
The Remaining 2012 Outlook Emirsyah Satar, CEO 30
Outlook for the remaining Quarter in 2012 Expected capacity growth FY 2012 will be 13% Revenue growth inline with expectation : Robust demand in Domestic GIAA traffic continue to grow higher than market New Fleet deliveries on-time New player of FSC expected to enter the market, see no significant impact on GA 31
32 Notes
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 THANK YOU 33