garuda indonesia analyst meeting presentation 2014

8/10/2019 Garuda Indonesia Analyst Meeting Presentation 2014

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PT GARUDA INDONESIA (PERSERO) Tbk.

Analyst Meeting & PresentationFirst Half2014 Result Announcement

Jakarta, 22 July 2014


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Number of Shares %

Domestic

Government of Indonesia 15,653,128,000 60.51Retail 1,001,512,844 3.87

Employee 89,617,844 0.35

Institutional (Trans Airways) 6,370,697,372 24.63

Other Institutional (less than 5%) 1,716,966,794 6.64

Total Domestic 24,831,922,854 95.99

InternationalRetail 4,133,570 0.02

Institutional (less than 5%) 1,032,870,209 3.99

Total International 1,037,003,779 4.01

TOTAL 25,868,926,633 100

Share Performance

Shareholders & Performance

List of Shareholders as of 30 Jun 2014

- Garuda Indonesia (GIAA) has been only airline listed in

IDX since 11 February 2011.

- Member of : Kompas-100

Indeks Saham Syariah IDN ISSI

SRI-KEHATI

GIAA (RHS) -JCI Index (LHS)

Price (30 Jun 14, IDR) : 422

Market cap (IDR. mio) : 10,916,687Number of share : 25,868,926,633

Free Float (%) : 39.49

52-week price range : 595416


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Agenda Page

1. Review of result 1H-2014 325

Highlights 3 - 6

Market & Competition 710

Operational Results 1116

Financial Results 1723

Subsidiaries Highlights 2425

2. Outlook for the Remaining 2014 2628

IMPORTANT DISCLAIMER:

Information contained in this document has been prepared from several sources and the Company does not confirm the accuracy and

completeness of such data, particularly where the data is sourced from outside the Company. In addition, any forward looking

statements are subject to change as a result of market conditions and the final result may be different to that indicated. The Company

makes no representation or warranty of any type whatsoever on the accuracy or completion of the information contained herein.


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1H-2014 HighlightsEmirsyah Satar, CEO


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1H-2014 Operating Performance at a Glance

DOMESTIC

Passengers carried 10.7%

RPK 12.0%

Yield in USD 9.5%

Yield in IDR 8.8%

ASK 17.8%

INTERNATIONAL


RPK 2.6%

Yield in USD 3.6%

ASK 14.8%

CITILINK


RPK 25.7%

Yield in USD 6.8%

ASK 18.4%

Average Exchange rate IDR/USD 1H13 vs 1H14 depreciated by 20%

GAs domestic operational performance increased while IDR yield was up 8.8%

GAs RPK international declined due to lower economic growth, lower purchasing

power and higher competition Citilinksperformance improved significantly with USD yield and load factor

increased


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Indicator 1H-2014 Achievement % YoY

13.3 million 12.1

193,791 tons 12.5

69.0 % - (6.3) *

USc 8.6 (5.7)

USD 1,738.3 million 0.7

USD 1,476.5 million 2.0

-USD 233.9 million n.a.

-USD 211.7 million n.a.

1H-2014 Highlights

Operating Indicator figures are for Garuda Indonesia and Citilink

Financial Indicator figures are for Garuda Indonesia Group

* in percentage points

Passenger

CarriedCargo

Uplifted

Passenger

YieldOperating

Revenue

Passenger

Revenue

Operating

Loss

Loss for thePeriod

Seat Load

Factor

DOMESTIC

Continued growth in traffic & capacity

Market Share Jan-Apr increase 0.5 pptsImpacted by weakening IDR/USD

INTERNATIONAL

Passenger Carried & SLF decreased Impacted by competition

Amsterdam Direct flight shows improved

result

CITILINK

Improved operational performance and

domestic market share

FINANCIAL

Fully repaid US$ 210 million loan from Citi

Club Deal-2

Voluntary fully repaid US$ 62.5 million

loan from ECA and Commercial Lenders


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Milestones 1H-2014

Premium Arrival Lounge & Baggage Collection at Terminal-2 SoekarnoHatta Airport

Launched GA International Lounge for First class at Soekarno-Hatta Airport

Officially joined Sky Team Alliance on March 5, 2014

Rights Issue was approved by Extraordinary General Meeting

Code share with All Nippon Airways effective on March 30, 2014

ATR network expansion to secondary city

1Q14

Right Issue Finalized

Annual General Meetings 2014 accomplished on April 2, 2014

Launched the new Liverpool FC Training Kit with GA logo

Direct flight CengkarengAmsterdam with Boeing B777-ER

Code share with Delta Airlines on Jun 2, 2014

Reinstatement direct flight CengkarengHaneda on June 15, 2014

Fully repaid ECA & Commercial Lenders and Citi Club-Deal loan 21.25% Gapura Angkasasshares agreed to be purchased & become majority holder

2Q14


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Market & Competition


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3.6

4.4

1.2

1.2

Jan-Apr 2013 Jan-Apr 2014Others GA Int'l

10.6 10.6

1.1 1.6

4.6 4.9

Jan-Apr 2013 Jan-Apr 2014Others Citilink GA Dom

1.1

1.21.2

24.1% 24.9%21.3%

0%

20%

40%

1.0

1.1

1.2

Jan-Apr 2012 Jan-Apr 2013 Jan-Apr 2014

Total GA Passengers (millions) Market Share

Competition on routes which GA flies as per April 2014

Source: Airport Authority & GA (traffic in/out CGK, DPS, SUB, UPG, MES airports)

Traffic in million passenger Traffic in million passenger5.6

4.8

22.2%

-0.6%

16.5%17.116.3

0.1%

8.1%

5.0%

38.7%

Garuda Domestic Passengers in/out Selected Airports Garuda International Passengers in/out Selected Airports

4.2

4.64.9

27.6%

28.0%

28.9%

26%

27%

28%

29%

3.6

3.8

4.0

4.2

4.4

4.64.8

5.0

5.2

Jan-Apr 2012 Jan-Apr 2013 Jan-Apr 2014

Total GA Passengers (millions) Market Share


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11.4%

8.3%

7.4%

-0.5% -1.2%-12.4%

5.2%

17.1%15.4%

5.0%

1.7%0.6% -2.2%

6.5%

13.1% 12.9%

6.8% 0.5% 0.4%

-17.2%

5.5%

Operation Growth Compared to Regional Peers

Source: GAs data, AAPA, & Airlines Website

Passenger Carried Growth Jan-May 2013-2014

ASK Growth YoY Jan-May 2013 vs 2014 RPK Growth YoY Jan-May 2013-2014

AAPA

AAPAAAPA


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Garuda Indonesia is one of the most awarded airlines in the world

WORLDS MOSTIMPROVED AIRLINE

WORLDS BESTREGIONAL AIRLINE

2010

2012

2013

WORLDS BESTECONOMY CLASS SEATS

WORLDS BEST

ECONOMY CLASS

Total DOM awards 59

Total INTL awards 23

82TOTAL

2013Total DOM awards 27

Total INTL awards4

31TOTAL

Jan-Jun 2014

2014

7THRANK: WORLDS BEST AIRLINE

WORLDS BEST CABIN CREW


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1H-2014

Operational Results


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Fleet Expansion and Rejuvenation in 1H-2014

# of Aircraft

Fleet at 31 Dec 2013 140

IN: Delivery of: +15

B737-800NG 7

CRJ-1000 3

ATR72-600 3

B777-ER 1

A320-200 1

OUT: - 6

B737-300 3

B737-800NG 2

B737-400 1

Fleet at 30 June 2014 149

5.85.0 4.2 5.0

2012 2013 2014E Jun'14

Average Fleet Age (years)

Jun-13 Dec-13 Jun-14Ops

Lease

Fin Lease /

Owned

Narrow Body

B737-300 3 3 1 - 1 B737-500 5 4 4 - 4

B737-800 NG 59 65 70 70 -

CRJ - 1000 11 12 15 9 6

ATR72-600 - 2 5 5 -

Total Narrow Body 78 86 95 84 11

Wide Body

B747-400 2 2 2 - 2 B777-ER 1 4 5 5 -

A330-200 10 11 11 11 -

A330-300 6 7 7 1 6

Total Wide Body 19 24 25 17 8

Citilink

B737-300 6 5 4 - 4

B737-400 1 1 - - -A320-200 22 24 25 25 -

Total Citilink 29 30 29 25 4

TOTAL FLEET 126 140 149 126 23


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Group Operating Performance still growing although at a lower rate

(million)

1H13 vs 1H14 ASK Growth YoY RPK Growth YoY

GA-Mainbrand 16.2% 4.0%

Citilink 18.4% 25.7%

61,286 68,757 72,693 80,573 93,198 103,205 107,568

15.716.8

17.8 18.1

20.922.3

24.3

11.5

13 13.314.1

15.7 16.216.8

7.99.2 9.6

10.9 11.9

13.1 13.3

20,000

50,000

80,000

110,000

140,000

5

10

15

20

25

30

1H11 2H11 1H12 2H12 1H13 2H13 1H14

Frequency - RHS ASK (000) - LHS RPK (000) - LHS Pax Carried - LHS


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1H-2013 1H-2014 % YoY

Aircraft Utilization (Hours) 11:00 10:05 -0:55Frequencies 93,198 107,568 15.4

On Time Performance (%) 86.9 88.4 1.5 *

ASK (000) 20,881,690 24,322,859 16.5

Average Fuel Price (USD/L) 0.88 0.88 (0.5)

Fuel Burn / ATK 0.25 0.24 (4.8)

Fuel Burn / Blockhours 3,481 3,718 6.8

Passenger Carried 11,869,439 13,307,351 12.1

RPK (000) 15,721,097 16,788,401 6.8

Seat Load Factor (%) 75.3 69.0 (6.3)*

Passenger Yield (US) 9.1 8.6 (5.7)

Cargo/Mail Uplifted (Ton) 172,262 193,791 12.5

CASK (US) 7.5 7.6 0.4

CASK-excl Fuel (US) 4.4 4.4 1.3

Operating Indicators - Group

Notes: All figures include GA & Citilink, except aircraft Utilization and OTP are for GA Main Brand only

* in percentage points

Operational

Passenger

& Cargo

Financial

Efficiency


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64% 63%

8.07.8

50%

55%

60%

65%

6.0

6.5

7.0

7.5

8.0

8.5

1Q14 2Q14

SLF Yield (US$c)

1H-2013 1H-2014 % YoY


Frequency 60,302 69,447 15.2ASK (000) 8,126,116 9,575,680 17.8

RPK (000) 6,238,885 6,988,200 12.0

Seat Load Factor (%) 76.8 73.0 (3.8)*


CASK (US) 8.7 8.6 (1.2)

CASK-excl Fuel (US) 5.3 5.2 (1.6)

Passenger Carried 1,914,114 1,871,403 (2.2)

Frequency 12,565 14,489 15.3

ASK (000) 9,991,328 11,474,060 14.8

RPK (000) 7,473,166 7,275,202 (2.6)

Seat Load Factor (%) 74.8 63.4 (11.4)*


CASK (US) 7.0 7.2 3.6


Operating Indicators 1H-2014Main Brand By Sector

DOM

INTL

Note:

*) In percentage point

71%

74%

9.4

10.7

70%

72%

74%

76%

8.5

9.0

9.5

10.0

10.5

11.0

1Q14 2Q14

SLF Yield (US$c)

Domestic

International


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1H-2013 1H-2014 % YoY


Frequency 72,867 83,936 15.2ASK (000) 18,117,444 21,049,740 16.2

RPK (000) 13,712,051 14,263,402 4.0

Seat Load Factor (%) 75.7 67.8 (7.9)*


CASK (US) 7.7 7.8 1.3



Frequency 20,331 23,632 16.2

ASK (000) 2,764,247 3,273,119 18.4

RPK (000) 2,009,046 2,524,999 25.7

Seat Load Factor (%) 72.7 77.1 4.5*

Passenger Yield (US) 5.9 6.3 6.8

CASK (US) 6.1 5.7 (6.4)CASK-excl Fuel (US) 3.2 2.8 (11.3)

Operating Indicators 1H-2014Main Brand & Citilink

Main

Brand

Citilink

Note:

*) In percentage point


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1H-2014

Financial ResultsHandrito Hardjono, CFO


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Q2-Operating Income/Loss-

Parent

Operating Lossin USD mio 1H-2013 1H-2014 % YoY

EBITDAR 327.4 169.5 (48.2)

Scheduled Airline 1,555.4 1,591.6 2.3

Non-Scheduled Airline 10.6 6.0 (43.6)

Others 159.4 140.8 (11.7)

Total 1,725.4 1,738.4 0.7

Fuel 655.2 759.2 15.9

Non Fuel 1,055.9 1,213.0 14.9

Total 1,711.1 1,972.2 15.3

Income / Loss from Operations 14.3 (233.9) n.a.

Loss Before Tax (2.6) (266.4) n.a.

Loss Current Period (10.7) (211.7) n.a.

Summary of Consolidated Income Statement

Operating

Revenue

Operating

Expenses

Income

EBITDAR Margin

Nett Margin

18.97 % 9.75%

(0.6) % (12.2)%

(34.4)(42.7)

27.2

Apr'14 May'14 Jun'14

(192.6)

(41.3)

1Q14 2Q14

June Net Income: USD 10.2 million

R T d i 1H 2013 1H 2014


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1,725

1,738

Changes in Op erating Revenues (USD mio)

Revenue Trend in 1H-2013 vs 1H-2014

1H13

Operating

Revenue

1H14

Operating

Revenue

Passenger &Excess Baggage

NonScheduled

Cargo& Mail

Others

Passenger RevenueSlightly increase passenger revenue,

driven by 12.1%growth on passenger

carried (additional 1.4 million passengers

as compared to 1H-2013s)

Cargo revenue

Cargo & Mail Revenue increased by7.7% to USD 110.9 million

Non-Scheduled

Revenue from Non-Scheduled decreased

43.6% to USD 6 million

OthersOthers Revenue decreased by 11.7% to

USD 140.8 million

+$28.2

(+1.6%)

+$7.9

(+0.5%)

-$4.6

(-0.3%)

-$18.6

(-1.1%)

1H 2014 E


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1,711

1,972

Expense

Item

PoT*

Fuel 38.5%

Flight Ops 22.3%

Ticketing &

Sales8.7%

Maintenance 8.3%

Pax Service 7.5%

User Charges

& Station6.8%

G & A 5.6%

Others 2.3%

Total 100%

1H-2014 Expenses

$104+6.1%

Flight Ops

$95.3+5.6%

Fuel

Maintenance

$22.2+1.3%

$14.4+0.8% $6.7+0.4%

$6.7+0.4%

+$5.7

+0.3%

Pax

ServiceTicketing

& Sales

User

Charges &

Station

G & A

1H-2013

Operating

Expenses

1H-2014

Operating

Expenses

Changes in Operating Expenses (USD m io)

*) PoT=Percentage of Total

+$6.1

+0.4%

Others

S f C lid t d B l Sh t


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in USD mio 31 Dec 2013 30 Jun 2014 %

Current Assets 819.1 761.4 (7.0)

Non-Current Assets 2,134.7 2,327.2 9.0

Total Assets 2,953.8 3,088.7 4.6

Current Liabilities 983.9 901.4 (8.4)

Non-Current Liabilities 852.7 1,144.8 34.3

Total Liabilities 1,836.6 2,046.3 11.4

Total Equities 1,117.1 1,042.4 (6.7)

Total Liabilities & Equities 2,953.8 3,088.7 4.6

Summary of Consolidated Balance Sheet

Asset

Liabilities

Equities

Lease Adjusted Net Debt/EBITDAR

Debt/Equity

10 x

1.1 x

5.6 x

0.9 x

N t G i & D bt B kd


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Cash Position & Net Gearing Total Debt Breakdown

Net Gearing & Debt Breakdown

Total Debt on 30 Jun 2014: USD 1.2 bio

Long term Loan includes Bond (US$ 166 mio)

USD Mio

66%

11%

23%

Long term loan Lease Liabilities Short term loan

131

417326

475

284367363

568

959

678

350

240

0.66

0.05

0.26

0.47

0.45

0.79

0.0

0.3

0.6

0.9

0

300

600

900

1200

31Dec10 31Dec11 31Dec12 31Dec13 30Jun13 30Jun14

Cash Position

Advance for A/C Purchase & Maintenance Reserve Fund

Net Gearing

Summary of Consolidated Cash Flow


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Operating Activitiesin USD mio 30 Jun 2013 30 Jun 2014 % YoY

Beginning Cash/Cash Equivalents 325.8 475.3 45.9

Operating Activities 111.6 (236.6) n.a.Investing Activities (314.2) (174.3) 44.5

Financing Activities 166.5 285.3 71.3

Net Increase (Decrease) in Cash/Cash

Equivalents(36.0) (125.5) n.a.

Effect of Foreign Exchange Rate Changes (5.9) 17.8 n.a.

Ending Cash/Cash Equivalents 283.9 367.5 29.5

Summary of Consolidated Cash Flow

Investing Activities

Payment for PDP & Maintenance

Reserve Fund: USD 239.8 million

Payment for Security Deposit:

USD 6.5 million

Refund of PDP and Maintenance

Reserve Fund: USD 86.5 million

Financing Activities

Proceed of LT-Loan, Bank Loan &financial institutions: $ 566.2 million

Proceed of issuance of common

stocknet: $ 130.4 million

Payment of long-term Loan, BankLoan & financial institutions:

$ 406.9 million

(168.2)

(68.4)

1Q14 2Q14

Q2 - Operating Activities -

Parent

(36.0) (31.8)

14.0

Apr'14 May'14 Jun'14


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Subsidiaries

Summary of Subsidiaries Performance
http://www.citilink.co.id/


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1H-2014 % YoY

Operating Revenue 8,803 (19.9)

Operating Income (744) (206.3)

Net Income (1,021) (596.6)

EBITDA 555 (69.6)

1H-2014 % YoY

Operating Revenue 1,540 (13.6)

Operating Income 150 (38.7)

Net Income 138 (14.4)

EBITDA 259 (26.0)

1H-2014 % YoY

Operating Revenue 122,243 12.6

Operating Income 14,325 142.6

Net Income 9,447 155.0

EBITDA 17,110 118.1

1H-2014 % YoY


Operating Income 47 12.6

Net Income 19 (40.3)

EBITDA 93 16.6

PT Aerowisata (in IDR bn) PT GMF-AA (in USD 000)

PT Aero System (in USD 000)PT Abacus DS Indonesia (in USD 000)

Summary of Subsidiaries Performance

PT Citilink Indonesia (in USD 000)

1H-2014 % YoY


Operating Income (17,610) 56.9

Net Income (15,952) 59.2

EBITDA (13,821) 59.5

Net Income June: USD 2.9 million


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Outlook for the Remaining 2014

Emirsyah Satar, CEO

2014 Progress


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2014 Progress

Note: Prior estimation: 169 & 4.5

* GAs fleet only, not including Citilink

** GA only, excluding subsidiaries

Estimates

1H-2014 Key Drivers 2014E

149 166

5.0 4.2

12.1 % 15%20%

16.5% 15% - 20%

$ 68.6 mio $ 150200 mio

Average Fleet

Age (years)*

# of Fleet

ASK Growth

CAPEX **

Passenger

Carried Growth

Full Member of Sky Team Global

Alliance New International Destination:

London, Manila, Mumbai

Network

GMFs new Hangar

Denpasar Dedicated Terminal(Domestic)

GAPURA Acquisition

Citilink Strategic Investor

Strategic /Operation

Right IssueFunding

Done

Work in Progess

Going Forward


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Going Forward

Macro economic factors remain unfavorable, reflected in the financial report 1H-2014

Intense Competition:

Domestic: consolidation is happening

International: excess capacity, frequency International increase by 25%

Market

Focus on profitable routes

strengthening domesticclose and reduce frequency for underperformed routes

Sky Team

Reduce Capacity:

retired and disposal older aircraft

deffered some aircraft order

Aggresive Sales & Marketing

Capex

$54 million reduction Capex in 2014

Priority


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PT Garuda Indonesia (Persero) Tbk.

Investor Relations Department

2nd Floor Management Building

Garuda City

Soekarno Hatta International Airport

Phone : 62-21-2560 1201

Email : [email protected]

THANK YOU

garuda indonesia analyst meeting presentation 2014

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