20120502 Investor Day-final Draft for WEB

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    PT Garuda Indonesia (Persero) Tbk INDONESIA INVESTOR DAY 2012

    Jakarta, 02 May 2012

  • 1

    Shareholder List & Share Performance as of 31 March 2012

    Number of

    Investor % Number of Shares %

    Domestic

    Government of Indonesia 1 0.01% 15,653,128,000 69.14%

    Angkasa Pura I 1 0.01% 248,496,000 1.10%

    Angkasa Pura II 1 0.01% 403,634,000 1.78%

    Retail 8,304 63.03% 1,413,100,500 6.24%

    Employee 4,514 34.26% 100,040,275 0.44%

    Cooperative 3 0.02% 86,000 0.00%

    Foundation 7 0.05% 8,316,500 0.04%

    Pension Fund 68 0.52% 234,393,000 1.04%

    Insurance 22 0.17% 244,186,500 1.08%

    Perseroan terbatas (PT) 95 0.72% 3,151,862,225 13.92%

    Reksadana 17 0.13% 53,291,000 0.24%

    Total Domestic 13,033 98.92% 21,510,534,000 95.01%

    International

    Retail 41 0.31% 3,488,500 0.02%

    Instutional 101 0.77% 1,126,973,500 4.98%

    Total International 142 1.08% 1,130,462,000 4.99%

    TOTAL 13,175 100.00% 22,640,996,000 100.00%

    98.3%

    97.9%

    91.2%

    89.2%

    88.9%

    87.6%

    87.5%

    87.2%

    87.1%

    85.1%

    82.5%

    82.2%

    1.7%

    2.1%

    8.8%

    10.8%

    11.1%

    12.4%

    12.5%

    12.8%

    12.9%

    14.9%

    17.5%

    17.8%

    50% 60% 70% 80% 90% 100%

    Apr 11

    May 11

    Jun 11

    Jul 11

    Aug 11

    Sep 11

    Oct 11

    Nov 11

    Des 11

    Jan 12

    Feb 12

    Mar 12 Domestic Investors Foreign Investors

    Domestic vs Foreign Investor (based on free-floating shares)

  • 2

    Contents

    1. Company Overview

    2. Airlines Industry Overview

    3. Restructuring and Transformation 2006-2015

    4. Operational & Financial Indicator

    5. Subsidiaries

  • 3

    Contents

    1. Company Overview

    2. Airlines Industry Overview

    3. Restructuring and Transformation 2006-2015

    4. Operational & Financial Indicator

    5. Subsidiaries

  • 4

    Emirsyah Satar

    President & CEO

    Board of Director PT Garuda Indonesia (PERSERO) Tbk.

    Handrito Hardjono

    EVP Finance

    Faik Fahmi

    EVP Services

    Elisa Lumbantoruan

    EVP Marketing & Sales

    Heriyanto Agung Putra

    EVP Human Capital & Corporate Affair

    Batara Silaban

    EVP maintenance & Fleet Management

    Judi Rifajantoro

    EVP Strategy, Business Development & Risk Management

    Novijanto Herupratomo

    EVP Operation

  • 5

    Garuda Indonesia Group

    Vision: A strong distinguished airline through providing quality services to serve people and goods around the world with Indonesian Hospitality

    Mission: The flag carrrier of Indonesia that promotes Indonesia to the world, supporting national economic development by delivering professional air travel services

    Value: Corporate value called FLY-HI consisting of :

    EFficient & Effective, Loyalty, Customer CentricitY, Honesty & Opennes Integrity

    Goal: In line with the corporate vision, our corporate goal is to be a leading airline with a comparable reputation to other world class airlines and aim to create a continously growing and expanding company with sustainable profits.

  • 6

    Companys Vision :

    1. A strong distinguished airline; it denotes that Garuda Indonesia must become a gainful company, with a better operating profit margin than the average industry. Becoming a distinguished airline also signifies that Garuda Indonesia must own a good reputation, highly regarded and respected. To gain the reputation, Garuda Indonesia's safety and quality record must be impressive.

    2. Quality services; which implies that providing pleasant services is a natural character at Garuda Indonesia. To actualize it Garuda Indonesia must achieve 5 stars in the Skytrax rating.

    3. To serve People and Goods around the World ; this is mirrored from the route coverage served by Garuda Indonesia. Whether flying on its own as well as through alliances with other airlines, Garuda Indonesia's route coverage must reach out to the five continents

    A strong distinguished airline, providing quality services, to serve people & goods around the world with Indonesian hospitality

  • 7

    Garuda Indonesia Group

    IT Services

    Aero

    Systems

    Hospitality

    and Tourism

    Aerowisata

    Global

    Distribution

    Systems

    Abacus

    Ground

    Handling

    Gapura

    Angkasa

    MRO

    Services

    GMF

    AeroAsia

    Key Subsidiaries & Associated Companies

    Garuda Indonesia (Main brand)

    Cargo Citilink (LCC)

    Domestic

    International

    Feeder/Sub-100

    Hajj / Charter

    83%

    8%

    9%

    Ops Revenue Contribution 2011

    Scheduled Airlines Non-scheduled Airlines Others

  • 8

    Shanghai

    Kuala Lumpur

    Beijing

    Tokyo

    Osaka

    Guangzhou

    Hong Kong Bangkok

    Nagoya

    singapore

    Jakarta

    Seoul

    Dubai Jeddah

    Melbourne

    Denpasar

    Amsterdam

    Makassar

    Perth

    Sydney

    87 Aircraft

    6.5 yrs Fleet Age

    17.1 million

    Passengers $3 billion

    Revenue

    18%

    Ops Revenue CAGR 2007-11

    18%

    EBITDAR Margin

    229k tonnes

    Cargo

    Garuda Indonesia at a Glance - 2011

    Banda Aceh

    Medan

    Pekanbaru Batam Pontianak

    Balikpapan

    Banjarmasin

    Padang

    Palembang

    Jakarta

    Denpasar

    Semarang

    Biak

    Manado

    Surabaya Solo

    Yogyakarta

    Palangkaraya

    Ujung Pandang Timika

    Jayapura

    Ambon

    Mataram

    Jambi

    Tjg.Karang

    Pgk.Pinang

    Kendari

    Palu

    Ternate

    Kupang Malang

    Gorontalo

    17

    International Destinations

    31

    Domestic Destinations

    Note: Map not drawn to scale Figures are as per Dec 2011-unaudit

  • 9

    Flying High

    Q

    Q

    Q

    Q

    Q

    Q

    Q

    Q

    Q

    Q

    2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E

    1956

    First Haji pilgrims flight

    to Mecca

    1976

    First deliveries of DC-10,

    the first wide-body aircraft

    1973

    First subsidiary AWS

    added to the Group

    1949

    Established in 1949 with first

    aircraft, Dakota DC-3

    1990s

    Garuda Indonesia is ranked

    among the top 30 carriers

    in the world 2010

    Completed debt

    restructuring

    Achieved 4 star

    Skytrack rating

    Awarded CAPA

    Airline Turnaround

    of the Year

    2005

    New

    management

    takes over and

    begins

    transformation

    2007

    Profitability

    improves under

    new management

    with a

    US$17 million

    net income

    2009

    Received Best Debt

    Restructuring Deal of

    the Year 2009 in

    South East Asia (1)

    EU removed Garuda

    from its list of

    banned airlines

    Avg. Age

    Fleet Size 49 48 54 70 89 128 163 87 194 105

    Number of Passengers

    (millions)

    Avg.

    Age

    PAX

    2011

    IPO completion

    UPG as 3rd

    hub

    Citilink Brand

    refresh

    25+25 A320

    contract for

    Citilink

    1985

    New Corporate Identity

    1995

    Subsidiary Abacus DSI

    added to the Group

    2002

    Subsidiary GMF-AA added

    to the Group

    11.5 10.9

    11.9 10.2

    8.1 6.5

  • 10

    Contents

    1. Company Overview

    2. Airlines Industry Overview

    3. Restructuring and Transformation 2006-2015

    4. Operational & Financial Indicator

    5. Subsidiaries

  • 11

    Growth in passenger and freight markets in the past has largely been driven by

    broader trends in GDP growth and world trade flows. Passenger traffic has grown

    at around 1.5-2 times the rate of GDP growth.

    Freight has generally grown at a similar rate to world trade, although in recent

    years a shift in market share to surface transport has meant that air freight

    traffic growth has been slower than trade growth.

    Source: ICAO, IATA, EIU

    GD

    P

    RP

    K

    Airline demand is driven by GDP growth

  • 12

    In 2009, Asia-Pacific overtook North America to become the largest air travel market

    with 647 million passengers and is expected to grow more rapidly than that of the rest

    of the world, with an average annual growth rate of 6% between 2009 and 2028.

    Source: Airbus, Global Market Forecast, 2009

    % of 2028 world RPKs: 20%

    0 1,000 2,000 3,000 4,000

    AsPac

    Europe

    North America

    Middle East

    Latin America

    CIS

    Africa

    RPKs(1) (bn)

    2008 traffic 2009 - 2028 growth

    % of 2028 world RPKs: 26% % of 2028 world RPKs: 4%

    % of 2028 world RPKs: 6% % of 2028 world RPKs: 8% % of 2028 world RPKs: 33%

    % of 2028 world RPKs: 3%

    CIS

    2009-2018 2019-2028 20-year growth

    6.2% 5.6% 5.9%

    Asia Pacific

    2009-2018 2019-2028 20-year growth

    6.6% 5.5% 6.0%

    Africa

    2009-2018 2019-2028 20-year growth

    5.4% 5.1% 5.2%

    Latin America

    2009-2018 2019-2028 20-year growth

    5.9% 5.6% 5.8%

    Middle East

    2009-2018 2019-2028 20-year growth

    7.6% 6.3% 6.9%

    North America

    2009-2018 2019-2028 20-year growth

    1.9% 2.9% 2.4%

    Europe

    2009-2018 2019-2028 20-year growth

    4.0% 4.7% 4.3%

    World

    2009-2018 2019-2028 20-year growth

    4.6% 4.8% 4.7%

    Asia Pacific to lead the traffic growth

  • 13

    Indonesia: GDP per capita

    Most populous country in the South East Asia (4th largest in the world) with people distributed across a number of medium - large cities and high density provinces

    Largest archipelago in the world lending greater importance to air travel; potential for taking market-share from land / sea travel

    High growth economy with GDP per capita showing a growth of 12.5% in the period 2000 2009

    Most populated cities in the region

    Source: IMF, World Economic Outlook (WEO), 2010

    Medan 2.0 million

    Kuala Lumpur 1.6 million

    Petaling 1.5 million

    Jakarta & surrounding area 12.0 million

    Singapore 4.6 million

    Manila 1.7 million

    Surabaya 2.6 million

    Ujung Pandang 1.2 million

    Indonesia : Unique opportunity within Asia

    Sources: company prospectus

  • 14

    Indonesia is made up of 17,000 islands It is the largest archipelago in the world, stretching for

    more than 5,000 km, a distance greather than Los Angeles to New York Some are of considerable land mass Around two-third of Garuda pax are carried on journeys

    over water

    There are 220 airports in Indonesia, of which A minimum of 37 airports are suitable for B737/A320

    aircraft

    Domestic Landscape

  • 15

    Market Size (mio)

    23.8m 28.8m

    34.0m 39.2m 37.4m

    43.8m 51.6m

    60.0m 66.2m

    73.7m

    82.0m

    90.6m

    2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

    Budget Traveler Premium GA Pax

    Indonesia Domestic Market

    Domestic market in 2011 increased by 17%. Garuda projects market growth of 11% CAGR (2011 2015), the upturn periods.

    GA domestic market share will increase from 22.8% in 2011 to 34.4% in 2015 Note: GA Pax, S-100 seater & Alliance

    Sources : Dephub, PT. AP I & II, Garuda Forecast

    15

  • 16

    Traffic growth of International market increased by 14% in 2011. Projected CAGR traffic growth is 9% from 2011 - 2015

    Projected GA international market share in 2011 is 14.3% and estimated to be increased to 25.9% in 2015 Note: GA Pax, S-100 seater & Alliance

    Sources : IATA, PT. AP, PATA, Garuda Forecast

    16

    Indonesia : International Market

    Market Size (mio)

    13.7% 11.7%

    27.8%

    35.7%

    31.8%

    10.7m 11.0m 11.3m 13.2m

    14.8m 16.2m

    19.0m 21.7m

    23.5m 25.8m

    27.9m

    30.0m

    2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

    Business Leisure GA Pax

  • 17

    Contents

    1. Company Overview

    2. Airlines Industry Overview

    3. Restructuring and Transformation 2006-2015

    4. Operational & Financial Indicator

    5. Subsidiaries

  • 18

    Restructuring and Transformation 1st Journey

    2010+ IPO, Quantum Leap

    Sustainable Growth

    2008

    Start of privatization process

    Improvement in product and service

    2009

    Competitiveness and expansion to domestic/regional

    Launched Garuda experience

    Profit and traffic grew through the global recession

    2006 Consolidation 2007 Rehabilitation

    Cost efficiency/revenue improvement

    Reduce negative cash flow

    Rearranged routes

    Capital injection approved by government

    Ongoing debt restructuring

    Product and service enhancement

    Cost efficiency/revenue improvement

    Positive cash flow/strengthen capital base

    Introduce voluntary retirement scheme

    US$2.0 billion Revenue

    US$114 million Net Income

    2009

    Quantum Leap: Increasing revenue and margins driven by rejuvenating main brand fleet and

    growth of Citilink

    2011 and beyond

    US$2.2 billion Revenue

    US$109 million Net Income

    2008

    US$2.1 billion Revenue

    US$57 million Net Income

    2010

  • 19

    Restructuring and Transformation

    Milestone Quantum Leap 2011 2015

    ASK/Employe 6.80 mio Best Cabin Crew

    Cengkareng dedicated terminal Garuda Sub-100 Seater

    Initial Public Offering (IPO) Citilink Revitalization

    SkyTrax 5 Star Denpasar Dedicated Terminal Fly to All Province Capital First Flight to USA

    Fleet 194 Aircraft Dedicated Aircraft for Hajj

    2nd Journey

  • 20

    Aiming to complete the 2nd journey in 2015

    2005 Growth 2011 Growth 2015

    Number of Aircraft 57 56% 87 123% 194

    Average age (yr) 11.2 -28% 6.5 -59%

  • Domestic

    Grow and dominate

    full-service

    International

    Enormous upside

    potential

    2

    Fleet

    Expand, simplify and

    rejuvenate Fleet

    4

    Brand

    Stronger brand, better

    product and services

    5

    LCC

    Citilink to address the

    LCC Opportunity

    3 Human Capital

    Right quality and

    right quantity

    7

    Cost Discipline

    Efficient in cost structure compared to

    peers

    6

    Quantum Leap 7 Strategies to Drive Growth

    Management focuses on implementing the Quantum Leap with 7 main strategies to expand and dominate the Indonesian aviation market.

    1

  • Contents

    1. Company Overview

    2. Airlines Industry Overview

    3. Restructuring and Transformation 2006-2015

    4. Operational & Financial Indicator

    5. Subsidiaries

  • Competition on routes which GA flown Domestic Traffic GA growth by 37.9% YoY

    International Traffic GA growth by 29.2 %

    Sumber: Perusahaan (data trafik keluar/masuk bandara CGK,DPS,SUB,UPG, tidak termasuk Citilink

    21.9% 23.5%

    25.8% 24.5%

    26.1% 28.8% 29.3% 28.6%

    0.0%

    5.0%

    10.0%

    15.0%

    20.0%

    25.0%

    30.0%

    35.0%

    -

    4,000,000

    8,000,000

    12,000,000

    16,000,000

    Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-110 Q4-11

    Dom Total GA Total Market Share

    27.7 30.3

    8.7 12.0

    Jan-Des 2010 Jan-Des 2011

    Other Airlines DOM GA

    17.8% 19.7% 20.1%

    21.0% 22.2% 22.8% 22.7%

    23.5%

    0.0%

    5.0%

    10.0%

    15.0%

    20.0%

    25.0%

    0

    1,000,000

    2,000,000

    3,000,000

    4,000,000

    Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-110 Q4-11

    Intl Total GA Total Market Share

    9.7 10.5

    2.4 3.1

    Jan-Des 2010 Jan-Des 2011

    Other Airlines INTL GA

    9.4%

    16.2%

    37.9%

    12.4%

    29.2%

    8.2%

    13.6 12.1

    42.3

    36.4

  • Higher aircraft utilization Flight frequency increased

    Seat Load Factor improved Passenger carried increased

    Operational Reliability improved

    9:23

    10:40

    10:04

    10:41

    2010 2011 1Q-2011 1Q-2012

    102,724

    130,043

    28,952 35,817

    2010 2011 1Q-2011 1Q-2012

    71.7%

    75.2%

    71.7% 72.8%

    2010 2011 1Q-2011 1Q-2012

    12,534

    17,073

    3,677 4,608

    2010 2011 1Q-2011 1Q-2012

    + 01:17 + 00:39 + 26.6% 23.7%

    + 36.2% + 25.3% + 3.5 bp + 1.1 bp

  • Fleet Expansion Plan 2012-2015

    81 78 85 98

    123 144

    8 9 20

    30

    40

    50

    2010 2011 2012 2013 2014 2015

    GA CT

    Fleet Renewal bring significant

    cost saving:

    Lower fuel costs

    Lower maintenance costs

    Lower operating costs

    Higher aircraft utilisation

    rates

    194

    163

    128 105

    87 89

    8.1 6.5

    5.8

    < 6

  • Operating Revenue (in USD Mio)

    Maintaining Growth Momentum

    Passenger Revenue (in USD Mio)...