Indonesia's 5th Premier MRO Conference & Exbition

1. Paha
The Growing Potential of
the Airlines and MRO Industries
1
Aviation MRO Indonesia (AMROI)  September 2017
Pahala N. Mansury
Chairman of INACA

2. REAL GDP GROWTH
GrowthRate
Real Global GDP Growth is expected to grow by 6.3%
in 2018, a slight decrease from 2017 projection,
according to World bank Global Economic Prospect
2.8 2.7 2.4
2.7 2.9
1.9 2.1
1.7
1.9 1.8
1.2
2.0 1.8
1.7
1.5
6.8
6.5
6.3 6.2 6.1
7.3
6.9
6.7
6.5 6.3
5.0 4.9 5.0 5.2 5.3
2014 2015 2016E 2017P 2018P
World US Euro Area
East Asia & Pasific China Indonesia
Source: Global Economic Prospects, World Bank, June 2017
ECONOMIC DRIVERS TO RPK TREND
Source: Boeing, Global Fleet MRO Market Forecast, 2017
Although air travel demand is often considered to be
closely tied GDP, IATA reports that passenger traffic
outpaced global GDP for the last 10 years
2017-2027 GDP AND RPK PROJECTED ANNUAL GROWTH RATES
Highest RPK growth is projected to occur in Asia, with a growth
rate of 6%, exceeding the projected GDP growth at 4.1%
Demand for Air Travel is Increasing
2

3. + 2.9%
North Atlantic
Traffic
2017-2027 TRAFFIC TREND
+ 6.9%
Middle East - Asia
Traffic
+ 6.2%
Intra China
Traffic
Source: Olyver Wyman, 2017
2017-2027 GLOBAL FLEET CHARACTERISTIC
FLEET SIZE
By 2027, the average age of the active fleet will have
decreased from 11.2 to 9.7 years, a significant
reduction.
2017 2022 2027
25,368 30,640 35,501
CAGR
N/A 3.8% 3.0%
AVERAGE AGE
11.2 10.3 9.7
2017-2027 GLOBAL AIRCRAFT DEMAND
Passenger Fleet
New Passenger Deliveries
20,213
New Cargo Deliveries
231
Cargo FleetPassenger to Cargo Conversion
412
Passenger Retirements Cargo Retierements
9,526 785
The passenger fleet is forecast to grow nearly 10,300
by 2027, while the cargo fleet is forecast to shrink by
roughly 140 aircraft.
Just over 1% of new deliveries are forecast to be cargo
aircraft. Nearly two-thirds of the cargo aircraft
introduced over the forecast period will be passenger-
to-freighter conversion (P2F)
Source: Olyver Wyman, 2017
Global Traffic and Aircraft Demand is Growing
3

4. DOMESTIC AND INTERNATIONAL PAX TRAFFIC
Indonesia aviation market is predicted to continuosly grow with the
growth rate of domestic 14.5% and international by 12.1%
MACROECONOMY OUTLOOK
IDR to USD exchange rate is
stable at IDR 13.300 – 13.400
Controlled inflation and keep
being in the target range
Komponen 2015
2016
2016
2017
II II III IV
Konsumsi
Rumah
Tangga
4.96 4.97 5.07 5.01 4.99 5.01 4.93
Konsumsi
Pemerintah
5.32 3.43 6.23 -2.95 -4.05 -0.15 2.71
Ekspor -2.12 -3.29 -2.18 -5.65 4.24 -1.74 8.04
Impor -6.41 -5.14 -3.20 -3.67 2.82 -2.27 5.02
GDP
Indonesia 4.88
4.92
5.18
5.01 4.94
5.02 5.01
Source: BPS (diolah), 2017
Indonesia Market Outlook (1/2)
4

5. 47Airlines*
Note:
*Commercial and
Private
Source: CAPA,
2017
148Airports*
INDONESIA NUMBER OF AIRCRAFT
Note: as ot Sep 11th 2017
Source: CAPA, 2017 674
77
604
In Service In Storage On Order
breakdown
INDONESIA PROJECTED DELIVERY DATES FOR AIRCRAFT
ON ORDER
Note: as ot Sep 11th 2017
Source: CAPA, 2017
Indonesia is a promising market for aviation industry, indicated by
current market condition as well as projected aircraft on order by
Indonesian ailines
Indonesia Market Outlook (2/2)
5

6. 6
MRO Market and In Service Aircraft
MRO market is driven by growth of air-traffic, number of In
Service Aircraft is expected to grow at 3% CAGR in the next 10
years
Source: CAMRO
Asia Pacific is excluding China
MRO Market In Service Aircraft
 Growth of MRO market is
primarily driven by
growth of In-Service
aircraft
– High traffic growth in
APAC and ME region
propel higher
demand for aircrafts
 Growth of MRO market is
generally equal or lower
than in-service aircraft
predominantly due to
lesser requirement of
maintenance from newer
generation aircrafts,
critical components and
strong cost reduction
policies of airlines
+4%
202
6
90
74
2017
105
2021
21
25
23
20
4
6
18
10
24
22
5
7
15
3
6
11
3
14
3
22
9
Europe
Asia Pacific
(Excluding China)
Middle East
China
North America
Latin America
Africa 1%
4%
2%
1%
6%
8%
6% Asia Pacific
+3%
China
Middle East
Latin America
North America
Africa
Europe
202
6
2021
2
11
6
11
10
3
40
3
8
46
5
3
10
1
9
3
3
2
2
10
3
2017
8
33
6
-2%
3%
3%
1%
6%
6%
7%
MRO Market Value by Region (b USD) Total In Service Aircraft (‘000 units)
CAGR CAGR

7. 7
MRO Value by Segments
Engine maintenance is the largest contributor and fastest growing
across all geographies followed by Modifications
Source: CAMRO – Engine data includes APU
Modifications market comprises of: Avionics and system modification, IFE modification, interior modification, painting and PTF
Global APAC + ME SEA
+4%
2021
8%
2017
9%
90
202
6
74
24%
10%
24%
105
22%8%
26%
27%
9%
8%
32%
35%
27%
32%
Line MaintenanceModifications Airframe Heavy Engine MaintenanceComponents
3%
3%
3%
3%
5%
26%
27%
37
32%
48
37%
30%
29%
27
7%
13%
7%
20%
7%
21%
23%
10%
11%
+7%
2017 2021 202
6
7%
6%
5%
5%
9%
CAGR CAGR
35%
7%
26%
4
27%
202
6
7%
7%
8
+7%
6
2017 2021
10%
13%
13%
26%
20%
28%
24%
25%
31%
10%
7%
4%
5%
10%
CAGR
MRO Market Value by maintenance type (b USD)

8. Market Growth
8
Global MRO Market is expected to grow at 5% CAGR, while
Domestic Market is expected to grow at 11% CAGR.
2017 2021
2017 2021
2017 2021 2017 2021
2017 2021
2017 2021
2017 2021
Source: CAMRO 2016
1Other SEA is ASEAN countries excluding Indonesia
2Other APAC is APAC countries excluding ASEAN , China, and India
+1%
Africa
+11%
+4%
Other APAC2
6.4
9.9
+11%
China
+9%
Other SEA1
+9%
Middle East
21.3 23.0
+2%
Europe
20.1 21.6
+2%
N. America
3.8 4.6
+3%
S. America
Global
74
90
+5%
Indonesia
High growth region
7.56.4
2017 2021
1.6
1
2017 2021
3 5
2017 2021
6.4
9.0
2.4 2.6
+13%
India
2017 2021
2.3
1.4

9. By simplifying maintenance activities engagement through single window MRO, Airline
can focus on its core business
Lowering Total Cost of Ownership is essential for an Airline to stay competitive
Through fleet management and better turn around time, Airline could maximized its
fleet utilization
Cost certainty can help airline in terms of Planning
Through high availability of Parts/Spares, airline can achieve high operational reliability
Airline Maintenance Requirements
SIMPLICITY (SINGLE WINDOW)
TURN AROUND OPTIMIZATION
COST CERTAINTY
PARTS/SPARES
AVAILABILITY
For Maintenance, airlines generally prefers efficiency & simplicity to
focus on its core business. To Support this MRO should provide
Total Solution.
LOWER TCO

10. 10
THANK YOU