The Regioprop R-80 New Generation Turboprop

R80REGIONAL TURBOPROP

Q3 2016 PT Regio Aviasi Industri

Indonesia

The Investment Coordinating Board of the Republic of Indonesia

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The Investment Coordinating Board of the Republic of Indonesia

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Indonesia Macroeconomy Overview

The Investment Coordinating Board of the Republic of Indonesia

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The Investment Coordinating Board of the Republic of Indonesia

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The Investment Coordinating Board of the Republic of Indonesia

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Source: Ministry of National Development Agency

Aerospace Industry

• Increasing of capacity and quality on airport service in capital of province/national activity center.

• Increasing of Soekarno-Hatta airport capacity, until

Supporting Industry

oDevelopment of Indonesia Aircraft Industry

oDevelopment of Indonesia MRO industry

oDevelopment of aviation schools.

o Increasing of professionalism on aviation industry players.

Development of Scope on Air Transportation in East of Indonesia • Build new

airport to expand service in Kalimantan, Sulawesi, Maluku, Maluku Utara, Papua, and West Papua.

• Develop new route to break

Development Plan of Air Transportation Industry of

Aircraft Design and Production

Industry of Aircraft

Maintenance

Industry of Aircraft

Components

Industry of Aviation Safety

The Investment Coordinating Board of the Republic of Indonesia

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In short term (1-5 years)

Source: Ministry of Industry

Supporting Industry on Aerospace (Supplier/Vendor) that ready for developed

• UPSTREAM INDUSTRY: - Acrylic/glass; - Textile; - Carpet; - Decorative Laminate; - Plastic; - Rubber; - Steel for Tool and Jig.

• SUPPLIER/VENDOR: - Machining Part; - Sheet metal part; - Radome; - Cabin window; - Rubber part (Rubber

Seal, Rubber damper); - Interior Part (Seat,

Galey, Lavatory); - Piping and Welding part.

In long term (5-10 years)

• UPSTREAM INDUSTRY: - Aluminum Alloy; - Prepreg/Composite/Fiber; - Titanium; - Paint; - Chemical.

• SUPPLIER/VENDOR: - Avionic; - Main Landing Gear; - Forging Part; - Engine; - Wind Shield; - Radar; - Corrosion Protection.

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• 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

R80 PROGRAM

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BJ Habibie Chairman

Ilham A. Habibie Vice Chairman 2

Ery Firmansyah Vice Chairman 1

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!

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Agung B. Ismadi Director of Business and Administration

Agung Nugroho President Director

Rahayu S Arifin Corp Secretary

Harry Wiguna Director of

Finance

Tjahjo kartiko Director of Technology

Top management of RAI has abundant experience in aviation industry as well as aircraft design

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Turboprop deliveries by Seats 2013-2032

30-59 Seats 60-89 Seats 90-120 Seats

1147

1715

404

Source: Frost & Sullivan

Market Opportunity Assessment

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North America

Africa

EuropeCIS & Russia

Asia Pacific

Middle East

Source: Frost & Sullivan

Market Analysis

Latin America

World Turboprop Deliveries, 2013 - 2032

279303

603

225

164

94

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Asia Pacific will attract more than one-third of world turboprop deliveries

Market Opportunity Assessment

Indonesia shows tremendous potential for aviation – it is already the 12th 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

0%

25%

50%

75%

100%

0

20

40

60

80

>200 200<X<300 300<X<400 400<X<500 >500

Number of routes Routes (%) Cumulative (%)

19%

7%12%

26%

36%

37

14

24

52

71

36%

26%

12%7%

19%

The Number of Routes in Indonesia Based on Distance (nm), 2013

Route distance (NM)

Num

ber

of r

oute

s

Source: RAI Analysis

• Aircraft with 400 NM range will cover 74% of routes within Indonesia

• And 62% of the routes are of <300 NM range

• A turboprop can serve the Indonesian market effectively

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R80 Design Concept

High Payloads

Low Direct Operating Cost

Quick Turn Around Time

Efficient Engine

Optimum Structure design

Easy Maintenance & High Dispatch Reliability

Excellent Passenger Comfort

State of the Art Fly by Wire

Modern Cockpit Design

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Basic Configuration (80 Pax @ 29” Pitch)• R80 Base Configuration: 80 Pax @ 29” pitch • R80 Cargo Volume: 17,4 m3 (ATR72 is 9,4 m3 and Q400 is 14,2

m3)

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R80 Specification

Weight and Capacity: • MTOW : 27,500 kg • MLW : 26,900 kg • MOEW : 16,900 kg • Max. Payload : 8,780 kg @ 400

nm • Max. Fuel : 4,500 kg • Pax Number : 80 Pax

Range and Operation: • Design Range : 800 nm (1,480

km) • Range @ max. P/L : 400 nm (740 km) • Max. Cruising Speed : 330 kts (611 kmh) • Econ Cruising Speed : 290 kts (537 kmh) • Cruising Altitude : 25,000 ft • Balanced Field Length : 4,500 ft

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Coverage Area < 400 Nautical Mile

Radius @400 nm

Ambon

Medan

Jakarta

Palangkaraya

Timika

Maumere

Range Coverage for 800 nm

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50 70 90 110 130Seat Capacity

ATR72

Q400

MA600 MA700

Proposed programs (*)

RAI will have the biggest regional turboprop in the market.

R80

50 70 90 110 130Seat Capacity

*) 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

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Cabin Cross Section Comparison

❖ Compared to both competitor, the level of comfort of R80 is better.

• Aisle Width

• Aisle Heigth

• Seat Width

• IATA Roller

Phase 2: InternationalPhase 1: Domestic

Potential Customers

3 Potential Customers have signed Letter Of Intents to purchase 145 aircrafts

Master Phasing Plan R80

• 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

Status Q2 2016 :

2014 2015 2016 2017 2018 2019 2020/2021

Phase 2: Full Scale Development

Phase 1: Pre-Design

Phase 3: Certification and

Commercial

2.1 Preparation

2.2 Detail Design2.3. Prototype

(Funding Secured)Roll Out 8/2019

First Flight 03/2020

GOVERNMENT SUPPORT

1

2

31. Presidential

Decree - R80 National Strategic Program.

2. Policies on Aerospace Industry development.

3. Strengthening the Government Test Facilities.

4. Funding

Forum Inovasi Nasional, April 2015

President RI letter, October 2015

Next Steps

BANTEN

WEST JAVA

Bogor

Bandung

Cirebon

JakartaCilegon

Cikampek

Tasikmalaya

Existing Toll Roads

Planned Toll Roads

Existing Railways

Planned Railways

Kertajati Airport and Aerocity

Toll Roads: Jakarta – Cikampek 73 km Cikampek – Kertajati 90 km Cileunyi – Dawuan 60 km

Kertajati

Purwakarta

Kertajati Delivery Center of R80 Strategic Location and Accessibility

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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

27Courtesy of PT. BIJB

Cargo Access

PassengersAccess

Aerospace Park as Part of Aerocity

Aerospace Park

±380 Ha

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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.

Considerations: ▪Negative Investment List ▪ International Treaties ▪PMA Company Principle Licence ▪ Investment licences – fiscal and

non-fiscal ▪Cooperation with local

companies ▪Knowledge and skill transfer

plan to local partner

Investment Opportunities

Investments

in Aerospace Park Management Company

in Aerospace Industry as a tenant in the Aerospace

Park

In partnership with PT. Ilthabi Rekatama

In partnership with potential tenants

Foreign Investment

::: Thank you for your kind attention and let us make the R80 flying in cooperation with you

End of document