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Garuda Indonesia- Bahana Roadshow 2011

Hong Kong, 18-19 July 2011

Garuda Indonesia 1Q-11 Quarterly Report

1

Agenda

Section 1

Garuda Indonesia in Brief

Section 2

Quantum Leap Performance 2011

Section 3

Business Result 1Q-2011

Section 4

Latest Updates

Section 5

Outlook 2011

2

1. Garuda Indonesia in brief

Board Of Directors

Achirina

EVP Strategy, Business Development & Risk Management

Emirsyah Satar

President and CEO

Agus Priyanto

EVP Services

Elisa Lumbantoruan

Group CFO and EVP Finance

Capt. Ari Sapari

EVP Operations

Hadinoto Soedigno

EVP Maintenance & Fleet Management

4

Board of Management as of March 31, 2011

Emirsyah Satar Elisa Lumbantoruan Achirina Capt. Ari Sapari

President & CEO EVP Finance EVP Strategy, Business Development & Risk Management EVP Operations

Agus Priyanto

Hadinoto Soedigno Heriyanto Agung Putra

EVP Services

EVP Maintenance & Fleet Management Acting EVP Human Capital & Corporate Affairs

M. Arif Wibowo

Acting EVP Marketing & Sales

5

Garuda Indonesia Group

Garuda Indonesia (Main brand) Citilink (LCC) Consolidated March 31 2011 Revenue: IDR5,189 billion (1)

Non Scheduled Services, IDR 79 Bio (2%)

Others, IDR 570 Bio (11%)

Domestic International

Cargo

Charter/Hajj Planned sub-100

Scheduled Services, IDR 4.539 Bio (87%)

Planned Freighter

Strong brand synonymous with premium service

Global Distribution Systems

Key Subsidiaries & Associated Companies

Hospitality and Tourism MRO Services IT Services Ground Handling

Integrated business providing synergies and driving cost effectiveness

Skilled and experienced management and staff

Aerowisata

GMF AeroAsia

Aero Systems

Abacus

Gapura Angkasa

(1) Exchange rate as of March 31, 2011 at 8,709 IDR / USD. 6

Restructuring and Transformation

2011 and beyond Quantum Leap: Increasing revenue and margins driven by rejuvenating Mainbrand fleet and growth of Citilink Sustainable Growth

2010

US$2.1 billion Revenue US$57 million Net Income

2009 US$2.0 billion Revenue US$114 million Net Income

2010+ Quantum Leap

2008 Start of privatization process Improvement in product and service 2009 Competitiveness and expansion to domestic/regional Launched "Garuda experience"

2008 US$2.2 billion Revenue US$109 million Net Income

Profit and traffic grew through the global recession

2006 Consolidation

Cost efficiency/revenue improvement Reduce negative cash flow Rearranged routes Capital injection approved by government

2007 Rehabilitation

Ongoing debt restructuring Product and service enhancement Cost efficiency/revenue improvement Positive cash flow/strengthen capital base Introduce voluntary retirement scheme

7

Quantum Leap ­ 7 Strategies to Drive Growth

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

1

Domestic

Grow and dominate full-service

2

International Enormous upside potential

7

Human Capital

3

LCC

Right quality and right quantity

Citilink to address the LCC Opportunity

6

Cost Discipline Efficient in cost structure compared to peers

4 5

Brand

Fleet

Expand, simplify and rejuvenate Fleet

Stronger brand, better product and services

8

2. Quantum Leap Performance on 1Q-2011

1

Domestic : Grow and Dominate Full-Service

Domestic Indicator as of 31 March 2010/2011

Source: Ministry of Transport, IATA PaxIS and Company. 1Q-2011 1Q-2010 Note: Flights per week, routes and destinations data as of December 2010.

Batam Pakanbaru Padang Pontianak Palu Palangkaraya Jambi Pgk. Pinang Balikpapan Banjarmasin Manado Ternate Gorontalo Biak Jayapura Kendari Ambon Timika Ujung Pandang

Domestic as of 31 March 2011

Banda Aceh Medan

%

33.4 45.9 23.7 44.7 9.4 -3.8 6.7

ASK (`000) RPK (`000) Flight frequency Passenger Carried

2,245,310 1,509,702 18,876 1,795,387 67.2% 10.85 8.20

2,995,995 2,203,034 23,353 2,598,224 73.5% 10.44 8.75

Tjg. Pdan Palembang Bengkulu Tjg. Karang

Jakarta

Semarang Solo Surabaya

Yogyakarta Mataram Malang Denpasar

Kupang

Seat Load Factor Passenger Yield (US¢) CASK (US¢)

In 2009-2010, Domestic traffic growth by19% (YoY) while GA growth by 12%. But 1Q2010-2011, domestic traffic growth by 15% (QoQ) while GA growth by 38%. Added new routes during 1Q-2011: Ujung Pandang ­ Gorontalo Growing corporate travel and expanding Indonesian middle class will drive premium traffic growth in the future

CASK excl fuel (US¢)

Cargo Load Factor Cargo Yield (US¢)

5.64

41.1% 49.98

5.61

41.5% 54.25

-0.5

1.1 8.5

Source : Company Data ­SAP RP

Total Market and Market Share GA

Domestic Market Growth

Growth Mode ON

10

2

International: Enormous Upside Potential

International Indicator as of 31 March 2010/2011

Beijing Seoul Nagoya Tokyo Osaka Amsterdam Shanghai Jeddah Dubai

International as of 31 March 2011

1Q-2010

ASK (`000) RPK (`000) Flight frequency Pax Carried 2,762,644 1,868,459 3,720 527,529

1Q-2011

3,925,747 2,750,339 4,737 706,886

%

42.1 47.2 27.3 34.0

Guangzhou Hong Kong

Bangkok Kuala Lumpur Singapore

Surabaya Jakarta Mataram Denpasar

2011

Perth Sydney Melbourne

SLF

Pax Yield (US¢)

Source : Company Data ­SAP RP

67.6%

6.75 6.20 4.13 39.4% 23.98

70.1%

7.54 6.77 3.94 32.0% 25.86

3.7

11.7 9.2 -4.6 -18.8 7.8

In 2009-2010, International traffic growth by27% (YoY) while GA growth by 10%. But in 1Q2010-2011, international traffic growth by 13% (QoQ) while GA growth by 34%. Growing brand awareness & recognition from passengers for better service quality, & readiness to join Skyteam, will expand GA int'l route network

CASK (US¢) CASK excl fuel (US¢) Cargo Load Factor Cargo Yield (US¢)

Total Market and Market Share GA

International Market Growth

Captured Back from Others

11

3

LCC: Citilink to address LCC opportunity

Citilink Domestic Destinations

Medan Batam

Citilink Indicator as of 31 March 2010/2011

1Q-2010

Number of AC ASK (`000) 4

1Q-2011

8

%

100.0 78.7

Source: Ministry of Transport, IATA PaxIS and Company. Note: Flights per week, routes and destinations data as of December 2010.

Balikpapan

Banjarmasin Makassar Jakarta Surabaya Denpasar

240,825

430,379

RPK (`000)

Flight frequency

142,996

2,002

317,150

3,164

121.8

58.0

Passenger Carried

Seat Load Factor Pax Yield (US¢) CASK (US¢)

179,847

59.4% 4.21 4.41 2.13

371,486

73.7% 4.90 6.44 3.29

106.6

24.1 16.6 46.0 54.5

Source: Company, Centre for Asia Pacific Aviation. Note: (1) As of 31 December 2010.

Citilink strategy to focus on improved seat density, aircraft utilization, frequencies/load factors and lower distribution costs

CASK excl fuel (US¢)

Source : Company Data ­SAP RP

12

4

Fleet: Expansion and Rejuvenation of Fleet

1Q-2010

Narrow Body

· B737-300

1Q-2011

Fleet at 31 March 2010 63

7 IN: Delivery of: B737-800 A330-200 OUT: 20 1

# of Aircraft

73

+21

57

10

· B737-400

· B737-500 · B737-800 NG Wide Body · B747-400

19

5 23 13 3

8

5 43 14 3

-9

Redelivery to Lessor

Sold-out (B737-400) Scrap (B737-400) Fleet at 31 March 2011

Commitment with Vendor :

6

2 1 85

· A330-200

· A330-300 Citilink · B737-300 · B737-400 TOTAL FLEET

4

6 3 2 1 73

5

6 8 4 4 85

10 Boeing 777, first delivery at 2013 6+5 Airbus 330 (300/200), first delivery at 2012 25+25 Airbus 320, first deliveries at 2014 25 Boeing 738 Ownership:

Average Age (yrs)

10.0

Younger Fleet

7.92

17 Owned Aircraft

62 Operating Leased Aircraft 6 Financial Leased Aircraft

13

5

Brand: the "Garuda Indonesia Experience"

Younger Fleet

Cathay Pacific 11.8 years Malaysia Airlines 11.0 years

Average Fleet Age as of 31 March 2011

Garuda Indonesia 7.92 years

Singapore Airlines 4.6 years

Source: Airfleets.net and Company.

Technologically Enhanced Customer Service

28 Customer Touch Points Garuda has implemented the 28 Customer Touch Points, allowing passengers to access Garuda's plethora of services online

Indonesian Hospitality

Sight: Newly designed cabin interior combines the natural colors and Indonesia traditional motifs Sound: In-flight entertainment includes Indonesian and international tunes Taste: Unique Indonesian cuisine served as part of in in-flight meals and refreshments Scent: Indonesian aromatherapy introduced at Garuda offices and airport lounges Touch: Superior service that is both caring and friendly, typical of Indonesian hospitality

14

Touch point services start before a journey begins, during the flight and even after arrival The most favourites services for foreigners: Visa On Board Immigration Fast Track

6

Cost Discipline

1Q-2011 OPEX ­ Top 10

1Q-2010 51.3 0.45 66.0 0.43 62,0 83.2 PoT

29% 10%

CASK (US¢)

Jet Fuel (Usc/liter)

1Q-2011

PoT

36% 12%

%

Fuel Rental & Charter Flight Ticketing, Sales,Promo General & Admin

1,128.4 399.0 354.1 327.0

1,959.0 629.6 547.2 452.4

73.6 57.8 54.6 38.3

Fuel Burn (liter/ATK)

0.45

0.42

9%

10%

9%

8%

User Charges & Station Expenses

Passenger Services

302.2

279.4

8%

402.4

(1)

7%

33.2

38.9

7%

388.0

7%

Depreciation / Amortization

Flight Operation

358.7

223.1

9%

350.9

303.5

6%

-2.2

36.0

6%

6%

CASK Excl-fuel (US¢)

Maintenance / Overhaul

Others

328.8

128.1

9%

278.1

136.9

5%

-15.4

7.0

2% 100%

2% 100%

Total Opex

PoT = Percent of Total

3,828.8

5,448.0

42.3

Fuel cost contribution is 36% from total cost; increase from previous year 29% from total cost. Fuel burn/RTK is decrease 7% from previous year ; but at the same time fuel price increase 34.2%.

15

7

Human Capital

1Q-2010

1Q-2011

% YoY

Number of Employees

Ground Staff

5,185

2,882

5,787

3,004

11.6

4.2

Cockpit Crew

Cabin Crew

586

1,717

696

2,087

18.8

21.5

ASK/Employee

RPK/Employee

1,012

679

1,270

911

20.3

25.4

Cockpit Crew/Aircraft

Cabin Crew/Aircraft Opt Rev/Employee (IDR Mio)

8

24 224

9

25 290

2.4

4.8 29.7

Staff Productivity Improved

16

3. Business Results 1Q-2011

Financial Summary ­ Group Company

IDR Billion

1Q-2010

1Q-2011

%

Total Revenue

Total Expenses

Fuel

Rental & Charter Flight Equip Exp

3,467.5

3,828.8

1,128.4

399.0

5,189.3

5,448.0

1,959.0

629.6

49.7

42.3

73.6

57.8

Ticketing, Sales, Promotion

Others

354.1

1,947.4

547.2

2,312.2

54.6

18.5

Ops Income Comprehensive Income

(361.3) 18

(258.7) (183.6)

28.4 NA

EBITDAR

Total Assets

396.5

13,666

721.8

16,400

82.3

20.0

Total Liabilities

Equity

Note: Exchange rate as of March 31, 2011 at 8,709 IDR / USD.

18

10,197

3,469

9,927

6.473

2.6

86.6

Financials Summary ­ Group Company

IDR Billion

1Q-2010

Cash/Cash Equivalents at Beginning of The Year 1,652

1Q-2011

1,177

%

-28.7

·Operating Activities

·Investing Activities

(49)

(46)

107

(301)

NA

-559.9

·Financing Activities

·Net Increase (Decrease) in Cash/Cash Equivalents

(329)

(424)

2,895

2,700

NA

NA

Effect of Foreign Exchange Rate Changes

Cash/Cash Equivalents at End of The Year

Note: Exchange rate as of March 31, 2011 at 8,709 IDR / USD.

(16)

1,213

91

3,969

NA

227.3

19

Financial & Operating Indicators

1Q-2010 Aircraft Utilization (Hours) Frequencies On Time Performance Passenger Carried ASK ('000) RPK (`000) Seat Load Factor 8:44 23,162 87.8% 2,502,763 5,248,779 3,521,127 67.1% 1Q-2011 10:04 28,952 88.8% 3,676,596 7,352,122 5,270,523 71.7% % 15.3 25.0 1.1 42.3 40.1 49.7 6.9

Passenger Yield (US¢)

CASK (US¢)

8.40

6.97

8.60

7.64

2.9

9.6

CASK (excl fuel) (US¢)

Cargo Load Factor

4.68

39.6

4.66

34.1

-0.5

-13.9

Cargo Yield (US¢)

Average Fuel Price (US¢/L)

32.12

62.01

34.16

83.20

6.4

34.2

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

20

Summary of Subsidiaries Performance

PT Aero Wisata Financial as of 31 March 2011 1Q-2010

Operating Income Net Income EBITDA Assets Liabilities Equity 12,453 13.160 27,524 1,647,870 631,522 1,016,348

PT Aero System Financial as of 31 March 2011 %

7.5 -52.7 10 -1.6 -8.4 2.7 Operating Income Net Income EBITDA Assets Liabilities Equity

1Q-2011

13,386 6,219 30,278 1,621,904 578,429 1,043,475

1Q-2010

285 941 3,601 192,750 94,507 98,243

1Q-2011

-119 (5,536) 1,952 191,155 94,662 96,494

%

-141.7 -688.2 -45.8 -0.8 0.2 -1,8

PT GMF-AA Financial as of 31 March 2011 1Q-2010

Operating Income Net Income (38,959) (26,550)

PT Abacus Indonesia Financial as of 31 March 2011

%

204.1 153.1

1Q-2011

40,572 14,105

1Q-2010

Operating Income

Net Income

1Q-2011

(1,164)

(936)

%

-397.4

-465.9

391

256

EBITDA

Assets

(36,547)

1,348,271

43,326

1,427,443

218.5

5.9

EBITDA

Assets Liabilities Equity

1,216

53,424 8,107 45,317

(412)

48,685 7,884 40,801

-133.9

-8.9 -2.8 -10.0

Liabilities

Equity

929,908

418,363

926,564

500,879

-0.4

19.7

Notes: All figures is in IDR million

21

4. Latest Updates

Latest Updates

Domestic & International Markets

·Additional Frequency: JKT-HKG , JKT-SIN, JKT-BKK & UPG-SUB ·New Routes: SIN-UPG, UPG-TTE, UPG-BPN, BPN-JOG,SUB-AMQ, BPN-SUB ·Signing Purchase Contract 25+25 A320 for Citilink ·Appointing Mr Con Korfiatis in Citilink

Citilink

Fleet & Brand

·Signing 2 years club-loan deal USD55 million

·Refinancing PDP from Indoexim USD27 million

Cost & Human Capital

23

·Finalizing Quasi Reorganization

5. Outlook 2011

Outlook 2011

·Domestic & International traffic remains robust, whereas the rest

Domestic & International Markets

quarter SLF will be higher QoQ, while yield have stay stable ·Starting to operate sub-100 seater.

·Encouraging Advance Booking ·With new coming A320, going forward Citilink will turn-around.

·In 2011, will operate 4B737 and 4A320 only (instead of 15 aircraft)

Citilink

·Planning for spin-off in 2011 Fleet & Brand ·We will stay focus on 3 item to be improved: Aircraft Utilisation,

Seat load Factor and Passenger Yield. Cost & Human Capital

25

·Fuel Price volatility remains a significant risk to the year end results.

PT Garuda Indonesia (Persero) Tbk Investor Relation Department

2nd Floor Management Building Garuda City Center Soekarno Hatta International Airport Phone: 62-21-2560 1201 Email : [email protected]

Thank You

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