0

PT GARUDA INDONESIA (PERSERO) Tbk.

Analyst Meeting & Presentation
First Half 2014 Result Announcement

Jakarta, 22 July 2014
1
Number of Shares %
Domestic
Government of Indonesia 15,653,128,000 60.51
Retail 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
International
Retail 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) : 10,916,687
Number of share : 25,868,926,633
Free Float (%) : 39.49
52-week price range : 595 416
2
Agenda Page
1. Review of result 1H-2014 3 25
Highlights 3 - 6
Market & Competition 7 10
Operational Results 11 16
Financial Results 17 23
Subsidiaries Highlights 24 25
2. Outlook for the Remaining 2014 26 28
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.
3
1H-2014 Highlights




Emirsyah Satar, CEO
4
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
Passengers carried 2.2%

RPK 2.6%

Yield in USD 3.6%


ASK 14.8%
CITILINK
Passengers carried 26.7%

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

Citilinks performance improved significantly with USD yield and load factor
increased
5
Indicator 1H-2014 Achievement D% 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
Carried
Cargo
Uplifted
Passenger
Yield
Operating
Revenue
Passenger
Revenue
Operating
Loss
Loss for the
Period
Seat Load
Factor
DOMESTIC
Continued growth in traffic & capacity
Market Share Jan-Apr increase 0.5 ppts
Impacted 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
6
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 Cengkareng Amsterdam with Boeing B777-ER
Code share with Delta Airlines on Jun 2, 2014
Reinstatement direct flight Cengkareng Haneda on June 15, 2014
Fully repaid ECA & Commercial Lenders and Citi Club-Deal loan
21.25% Gapura Angkasas shares agreed to be purchased & become majority holder
2Q14
7

Market & Competition

8
3.6
4.4
1.2
1.2
Jan-Apr 2013 Jan-Apr 2014
Others GA Int'l
10.6 10.6
1.1
1.6
4.6
4.9
Jan-Apr 2013 Jan-Apr 2014
Others Citilink GA Dom
1.1
1.2
1.2
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 passenger
5.6
4.8
22.2%
-0.6%
16.5%
17.1
16.3
0.1%
8.1%
5.0%
38.7%
Garuda Domestic Passengers in/out Selected Airports Garuda International Passengers in/out Selected Airports
4.2
4.6
4.9
27.6%
28.0%
28.9%
26%
27%
28%
29%
3.6
3.8
4.0
4.2
4.4
4.6
4.8
5.0
5.2
Jan-Apr 2012 Jan-Apr 2013 Jan-Apr 2014
Total GA Passengers (millions) Market Share
9
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
AAPA
AAPA
10
Garuda Indonesia is one of the most awarded airlines in the world
WORLDS MOST
IMPROVED AIRLINE
WORLDS BEST
REGIONAL AIRLINE
2010
2012
2013
WORLDS BEST
ECONOMY CLASS SEATS
WORLDS BEST
ECONOMY CLASS
Total DOM awards 59
Total INTL awards
23
82
TOTAL
2013
Total DOM awards 27
Total INTL awards
4
31 TOTAL
Jan-Jun 2014
2014
7
TH
RANK: WORLDS BEST AIRLINE
WORLDS BEST CABIN CREW
11

1H-2014
Operational Results

12
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
5.8
5.0
4.2
5.0
2012 2013 2014E Jun'14
Average Fleet Age (years)
Jun-13 Dec-13 Jun-14
Ops
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
13
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
15.7
16.8
17.8
18.1
20.9
22.3
24.3
11.5
13
13.3
14.1
15.7
16.2
16.8
7.9
9.2
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
14

1H-2013 1H-2014 % YoY
Aircraft Utilization (Hours) 11:00 10:05 -0:55
Frequencies 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

15
64%
63%
8.0
7.8
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
Passenger Carried 7,363,701 8,153,104 10.7
Frequency 60,302 69,447 15.2
ASK (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)*
Passenger Yield (US) 11.1 10.0 (9.5)
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)*
Passenger Yield (US) 8.2 7.9 (3.6)
CASK (US) 7.0 7.2 3.6
CASK-excl Fuel (US) 4.0 4.3 7.2
Operating Indicators 1H-2014 Main 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
16

1H-2013 1H-2014 % YoY
Passenger Carried 9,277,815 10,024,507 8.0
Frequency 72,867 83,936 15.2
ASK (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)*
Passenger Yield (US) 9.5 9.0 (6.0)
CASK (US) 7.7 7.8 1.3
CASK-excl Fuel (US) 4.6 4.7 2.7
Passenger Carried 2,591,624 3,282,844 26.7
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-2014 Main Brand & Citilink



Main
Brand








Citilink




Note:
*) In percentage point
17
1H-2014
Financial Results
Handrito Hardjono, CFO
18
Q2-Operating Income/Loss-
Parent







Operating Loss







in 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
19
1,725
1,738
Changes in Operating Revenues (USD mio)
Revenue Trend in 1H-2013 vs 1H-2014
1H13
Operating
Revenue
1H14
Operating
Revenue
Passenger &
Excess Baggage
Non
Scheduled
Cargo
& Mail
Others
Passenger Revenue
Slightly 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 by
7.7% to USD 110.9 million
Non-Scheduled
Revenue from Non-Scheduled decreased
43.6% to USD 6 million
Others
Others 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%)
20
1,711
1,972
Expense
Item
PoT*
Fuel 38.5%
Flight Ops 22.3%
Ticketing &
Sales
8.7%
Maintenance 8.3%
Pax Service 7.5%
User Charges
& Station
6.8%
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
Service
Ticketing
& Sales
User
Charges &
Station
G & A
1H-2013
Operating
Expenses
1H-2014
Operating
Expenses
Changes in Operating Expenses (USD mio)
*) PoT=Percentage of Total
+$6.1
+0.4%
Others
21
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
22
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
417
326
475
284
367 363
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
23
Operating Activities







in 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
stock net: $ 130.4 million
Payment of long-term Loan, Bank
Loan & 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
24

Subsidiaries
25

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 Revenue 1,482 1.6
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 Revenue 173,363 35.3
Operating Income (17,610) 56.9
Net Income (15,952) 59.2
EBITDA (13,821) 59.5
Net Income June: USD 2.9 million
26


Outlook for the Remaining 2014

Emirsyah Satar, CEO
27
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 $ 150 200 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 Issue
Funding






Done
Work in Progess



28
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 domestic
close 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
29
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