2019 Annual General Meeting of Shareholders, GMFI Distributes Six Million USD Dividend

Jakarta, March 11, 2019 – PT Garuda Maintenance Facility Aero Asia Tbk (“GMF”, Issuer Code: “JK:GMFI”) held an Annual General Meeting of Shareholders (AGMS) on March 11, 2019. Located at Garuda City Center Soekarno Hatta International Airport, Tangerang, The AGM concluded on six meeting agendas, namely;

  • Approval of 2018 Annual Report,
  • Utilization of 2018 Net Profit,
  • Determination of 2018 Royalty and 2019 Remuneration for Board of Director and Board of Commissioner,
  • Appointment of Public Accountant for fiscal year 2019,
  • Delegation of Authority to the Board of Commissioner to carry out the increase in the Company’s issued and paid-up capital in the implementation of Management and Employee Programs Stock Option Plan (MESOP),
  • and Report on the utilization of Initial Public Offering (IPO) funds.

Attended by 80.9% of shareholders, GMF reported the company’s annual report for the fiscal year 2018. GMF posted operating revenue worth US$470 Million during 2018, increase of 7% compared to the previous year of 439.3 MUSD. The revenue coming from non-group increased 32% Year on Year (YoY). In 2018, GMF also received profit of US$430.5 Million. In 2018 GMF also gained the trust of various new customers that brought great business value to the company. Moreover, in 2018 GMF developed several additional capabilities and capacities including; maintenance of Boeing 787 and Airbus A350 line maintenance. Besides, the capacity of the biggest narrow body hangar in the world owned by GMF also added 2 lines to a maximum of 15 aircraft in parallel. Additional capabilities also occur in the Engine Maintenance business sector, namely the CFM56 – 5B Engine Overhaul. GMF also inaugurated the landing gear shop as a new facility to develop the component business sector.

As a responsibility to shareholders, GMF distributes dividend worth US$ 6,108,972 (Six Million One Hundred Eight Thousand Nine Hundred Seventy-Two) or 20% of the company’s net profit. CEO of GMFI, Iwan Joeniarto, said the dividend distribution is the fulfillment of the rights granted to GMF shareholders. “We want to prove that GMF is a promising place to invest. We continue to strive to bring benefits to the company, which will be returned to the shareholders,” Iwan said.

GMFI also authorized the Board of Commissioner in determining the amount of the royalty and the determination of honorarium for Board of Director and Board of Commissioner. The shareholders also approved the authorization and delegation of authority to the Board of Commissioners to carry out an increase in issued and paid-up capital for the implementation of MESOP. At the 6th agenda, GMFI reported the utilization of IPO funds obtained in October 2017. In conducting the IPO, GMFI gained funds worth IDR 1.1 Billion with a composition of 60% usage for investment, 25% for working capital and 15% for refinancing. Iwan Joeniarto explained that currently all funds allocated for refinancing and working capital have been realized. “While the investment from the IPO results until the end of 2018 has been realized at 85%, the rest will be maximized in 2019,” Iwan said. He continued, investments that have been realized include; construction of new facilities, purchasing tools, ICT development, and material.


Acceleration Action

In 2019, GMF targets sustainable business growth. Maintaining the double-digit growth target, GMF targets revenue above US$500 Million with expected net income to grow from the previous year. Iwan Joeniarto said that to achieve high targets amid market aggressiveness, GMF will continue to accelerate in the expansion of the business. “To achieve the 2019 target, we will add several capabilities and capacities with our partners that have been established since 2018. We will also carry out various strategic initiatives,” Iwan said. According to Iwan, GMF will collaborate with strategic partners to form integrated MRO facilities in the country which aim to absorb larger market. In addition, Iwan also expressed GMF’s plan to form a business diversification in the form of aircraft tire factories. The plan for corporate action is supported by investment fund prepared by the company of around US$50 Million. In order to GMF acceleration towards the vision to be the Top 10 MRO in the world, the development of diversity of products and businesses is intensively carried out. This is proven by the establishment of new subsidiaries. Iwan said that currently there are two subsidiaries, namely PT Garuda Daya Pratama Sejahtera (GDPS) which engages in providing highly qualified outsource workers and PT Garuda Energi Logistik Komersial (GELKo) which manages the business of trading aircraft parts and machinery, leasing aircraft parts and engine, leasing of aircraft parts and machinery, general trading, energy supply & distibution and waste management. “In the future, there will be more strategic cooperation and business development with other subsidiaries. This acceleration action is certainly expected to bring efficiency and build synergy within the group so it could increase the company’s profitability, “Iwan concluded.