The Regioprop R-80 New Generation Turboprop Q3 2016 PT Regio - PowerPoint PPT Presentation

R80 REGIONAL TURBOPROP The Regioprop R-80 New Generation Turboprop 
 Q3 2016 PT Regio Aviasi Industri Indonesia

The Investment Coordinating Board of the Republic of Indonesia 2

Indonesia Macroeconomy Overview The Investment Coordinating Board of the Republic of Indonesia 3

The Investment Coordinating Board of the Republic of Indonesia 4

The Investment Coordinating Board of the Republic of Indonesia 5

Development Plan of Air Transportation Industry of Industry of Industry of Industry of Aircraft Aircraft Aircraft Aviation Design and Maintenanc Component Safety Production e s Aerospace Supporting Development of Industry Industry Scope on Air o Development of • Increasing of Transportation in Indonesia capacity and East of Indonesia Aircraft Industry quality on • Build new o Development of airport service airport to Indonesia MRO in capital of expand service industry province/ in Kalimantan, o Development of national Sulawesi, aviation schools. activity center. Maluku, Maluku o Increasing of Utara, Papua, • Increasing of professionalism and West Papua. Soekarno-Hatta on aviation Source: Ministry of National Development The Investment Coordinating Board of the Republic of Indonesia • Develop new airport Agency 6 industry route to break capacity, until players.

Supporting Industry on Aerospace (Supplier/ Vendor) that ready for developed In short term (1-5 years) In long term (5-10 years) • UPSTREAM INDUSTRY: • UPSTREAM INDUSTRY: Acrylic/glass; - Aluminum Alloy; - Textile; - Prepreg/Composite/Fiber; - Carpet; - Titanium; - Decorative Laminate; - Paint; - Plastic; - Chemical. - Rubber; - SUPPLIER/VENDOR: • Steel for Tool and Jig. - Avionic; - SUPPLIER/VENDOR: Main Landing Gear; • - Machining Part; - Forging Part; - Sheet metal part; - Engine; - Radome; - Wind Shield; - Cabin window; - Radar; - Rubber part (Rubber - Corrosion Protection. - Seal, Rubber damper); Interior Part (Seat, - Galey, Lavatory); Piping and Welding part. - Source: Ministry of Industry The Investment Coordinating Board of the Republic of Indonesia 7

R80 PROGRAM • PT Regio Aviasi Industri (RAI) was formed in 2012, to develop the new twin engine 80 -90 pax regional turboprop, the R80. • The key market placement is domestic Indonesia, Asia Pacific, Middle East, Africa and South America. • RAI is planning to make the first flight of R80 in early 2020 and entry into market in early 2022. • The development cost will require fund in amount of US$ 1.000 millions • Current Status and Plan: • Phase 1; Feasibility Study and Preliminary Design stage (completed) • Phase 2 : ▪ Preparation, secure funding, vendor selection ▪ Detail Design, Full Scale Prototype Development & First Flight ▪ Certification and First Delivery 8

A best veteran team has been put in place by RAI that has the experience, connections, and will power to make the R-80 program take off! BJ Habibie Chairman Ilham A. Habibie Ery Firmansyah Vice Chairman 2 Vice Chairman 1 9

Top management of RAI has abundant experience in aviation industry as well as aircraft design Agung Nugroho President Director Rahayu S Arifin Corp Secretary Agung B. Ismadi Tjahjo kartiko Harry Wiguna Director of Business Director of Director of and Administration Technology Finance 10

Market Opportunity Assessment Turboprop deliveries by Seats 2013-2032 1715 1147 404 30-59 Seats 60-89 Seats 90-120 Seats Source: Frost & Sullivan 11

Asia Pacific will attract more than one-third of world turboprop deliveries World Turboprop Deliveries, 2013 - 2032 CIS & Europe Russia North America 94 303 279 Asia Middle Pacific East Africa 225 47 603 Latin America 164 Source: Frost & Sullivan Market Analysis 12

Market Opportunity Assessment Indonesia shows tremendous potential for aviation – it is already the 12 th largest market in the world and yet only 6% of its 250 million population have ever flown! Source: Ministry of Transportation, Indonesia

Market Opportunity Assessment Most routes (81%) in Indonesia are short haul and hence very suitable for turboprop aircraft with cost and flight time benefits The Number of Routes in Indonesia Based on Distance (nm), 2013 • Aircraft with 400 80 100% NM range will 71 cover 74% of routes within Indonesia 60 75% Number of routes 52 • And 62% of the 40 50% 37 routes are of <300 36% 36% NM range 24 26% 26% 20 25% 19% 19% 14 12% 12% • A turboprop can 7% 7% serve the 0 0% >200 200<X<300 300<X<400 400<X<500 >500 Indonesian market effectively Route distance (NM) Number of routes Routes (%) Cumulative (%) Source: RAI Analysis

R80 Design Concept High Payloads Low Direct Easy Maintenance & Operating Cost High Dispatch Quick Turn Around Reliability Time Excellent Passenger Efficient Engine Comfort Modern Cockpit State of the Art Optimum Structure Design Fly by Wire design 15

Basic Configuration (80 Pax @ 29” Pitch) • R80 Base Configuration: 80 Pax @ 29” pitch • R80 Cargo Volume: 17,4 m 3 (ATR72 is 9,4 m 3 and Q400 is 14,2 m 3 ) 16

R80 Specification Range and Operation: Weight and Capacity: • MTOW : 27,500 kg • Design Range : 800 nm (1,480 km) • MLW : 26,900 kg • Range @ max. P/L : 400 nm (740 km) • MOEW : 16,900 kg • Max. Cruising Speed : 330 kts (611 kmh) • Max. Payload : 8,780 kg @ 400 nm • Econ Cruising Speed : 290 kts (537 kmh) • Max. Fuel : 4,500 kg : 25,000 ft • Cruising Altitude • Pax Number : 80 Pax • Balanced Field Length : 4,500 ft 17

Coverage Area < 400 Nautical Mile Medan Palangkaraya Ambon Timika Jakarta Maumere Radius @400 nm 18

Range Coverage for 800 nm

RAI will have the biggest regional turboprop in the market. Seat Capacity 50 70 90 110 130 R80 ATR72 Proposed programs (*) MA700 MA600 Q400 Seat Capacity 50 70 90 110 130 *) o ATR is considering to develop a turboprop with >100 seats o Q400X unlikely to happen in the near future, owing to huge investment for C Series o Either case, there is no ready engine to be used for a turboprop of > 100 seats 20

Cabin Cross Section Comparison ❖ Compared to both competitor, the level of comfort of R80 is better . • IATA Roller Aisle Heigth • Seat Width • Aisle Width • 21

Potential Customers 3 Potential Customers have signed Letter Of Intents to purchase 145 aircrafts Phase 2: International Phase 1: Domestic

Master Phasing Plan R80 2014 2015 2016 2017 2018 2019 2020/2021 Phase 1: Pre-Design Phase 2: Full Scale Development 2.1 Preparation First Flight 
 Roll Out 
 03/2020 8/2019 (Funding Secured) 2.2 Detail Design 2.3. Prototype Phase 3: Certification and Commercial Status Q2 2016 : • Engineering: Conceptual Design and Systems Requirement Document • Business : LOI 145 unit from domestic Airlines, MOU with BIJB, GMF • Supply Chain: Vendor selection, MOU with BavAIRia, UK Trade and Investment • Funding: Government support and campaign to strategic investors

GOVERNMENT SUPPORT Next Steps 3 President RI letter, 1. Presidential 2 October 2015 Decree - R80 Forum Inovasi National Strategic 1 Nasional, April 2015 Program. 2. Policies on Aerospace Industry development. 3. Strengthening the Government Test Facilities. 4. Funding

Kertajati Delivery Center of R80 
 Strategic Location and Accessibility Kertajati Airport and Aerocity Cilegon Jakarta Cikampek BANTEN Kertajati Purwakarta Bogor Cirebon Bandung Existing Toll Roads WEST JAVA Planned Toll Roads Existing Railways Tasikmalaya Planned Railways Toll Roads: Jakarta – Cikampek 73 km Cikampek – Kertajati 90 km Cileunyi – Dawuan 60 km

Kertajati International Airport ▪ International hub airport of numerous domestic and international routes ▪ 3 parallel runways in master plan, 1,800 Ha airport, 3,500 Ha Aero city ▪ Delivery center of R80 aircraft 26

Aerospace Park as Part of Aerocity Cargo Access Aerospace Park ±380 Ha 5 Passengers Access Courtesy of PT . BIJB 27

Potential Tenants • Aircraft Manufacturers : PT . RAI (to be the anchor tenant ), PT . DI • Component Manufacturers : INACOM members, manufacturers of aircraft systems, structures and engine components (Rolls-Royce, GE Aviation, Pratt & Whitney, Snecma, CFM, IAE). • Aircraft MRO: GMF , MMF , IndoPelita, AAR, Air China Technic / Ameco Beijing etc. • Engine MRO : Rolls-Royce, GE Aviation, Pratt & Whitney, Snecma, etc • General Aviation Services : FBO, Jet Aviation, TAG Aviation, etc • Aviation Logistics : AJW, Aviall, etc • Airlines Base : Garuda Indonesia, Citilink, Lion Air, Sriwijaya, etc • Air Freight Hub : UPS, FedEx, DHL, JNE, Pos Indnesia, Lion Parcel • Training Academies : Pilot Schools, Aircraft Maintenance Training etc.

Investment Opportunities In partnership with PT . Ilthabi Rekatama Foreign Investment in Aerospace Park Considerations: Management Company ▪ Negative Investment List ▪ International Treaties Investments ▪ PMA Company Principle Licence ▪ Investment licences – fiscal and non-fiscal in Aerospace Industry as ▪ Cooperation with local a tenant in the Aerospace companies Park ▪ Knowledge and skill transfer plan to local partner In partnership with potential tenants