Company Update PT Kimia Farma Tbk

Q2 – 2020 Healthy Growth Performance Speaker

Mr. Pardiman

. Finance Director PT Kimia Farma Tbk (KAEF) . Indonesian Citizen

. Education & Training: . Master of Management from Diponegoro University . Bachelor of Economics Management from Diponegoro University . BUMN Executive Leadership Program . IFA Strategic Forum

. Employment History: . Finance Director PT (Persero) (2018-2019) . Finance Director PT Perum Bulog (2017-2018) . Finance Director PT Petrokimia Gresik (2016-2017) . President Commisioner PT Kawasan Industri Gresik (2016-2017) . Director of Consumer, Micro and Funding PT Bank BRI Syariah (2015-2017)

2 Agenda

1 MARKET OVERVIEW

2 COMPANY OVERVIEW

3 FINANCIAL HIGHLIGHT

4 BUSINESS EXPANSION & INVESTMENT

5 OUR RETAIL BUSINESS-KIMIA FARMA APOTEK

1 MARKET OVERVIEW Pharmaceutical Market (Q2/2020)

Indonesia pharmaceutical market decrease at -1.0% in MAT Q2/2020

• Ethical Branded still growth 1.2% and 100,000 9 Free Sales growth 0.9% in MAT 90,000 8 8.0 MNC ETHICAL Q2/2020, but for the Unbranded 7 80,000 21,983 DOMESTIC BRANDED, Generic decrease -9.8%. 21,932 FREE SALES, 21.9% 21,598 6 70,000 19,668 25.5% 5 • Unbranded Generic decrease was due 60,000 MNC 4 FREE UNBRANDED to the fact that the budget from 50,000 2.8 40,782 SALES GENERIC, 0.1% Government for Unbranded Generic 41,041 41,972 3 30.7% 40,000 38,825 that should have been spent was 2 diverted to spending on Covid-19 30,000 MNC FREE ETHICAL 1 SALES, 5.2% 69.3% 4,481 related products, resulting in a fairly 20,00 3,836 4,005 4,196 high decline. 0 0 16,087 18,017 18,840 18,946 -1 DOMESTIC 10,00 ETHICAL - -1.0 • This decline can be assumed as a result 0 -2 DOMESTIC BRANDED, MAT 2Q17 MAT 2Q18 MAT 2Q19 MAT 2Q20 of the patient paradigm shift from UNBRANDED 30.0% MNC ETHICAL MNC FREE SALES GENERIC, expensive ethical products to BPJS 17.3% drugs. DOMESTIC ETHICAL DOMESTIC FREE SALES Growth (%)

MAT Gr QTR Gr MAT 2Q19 vs MAT 2Q20 CAGR 4 Y In % TOTAL MNC DOMESTIC TOTAL MNC DOMESTIC -1.0% TOTAL -1.0 1.7 -1.9 3.9 5.2 3.4 ETHICAL -1.8 0.6 -2.8 4.0 5.4 3.4 ETHICAL BRANDED 1.2 0.9 1.5 3.1 5.6 1.5 UNBRANDED GENERIC -9.8 -33.2 -9.5 6.9 -12.1 7.2 -15.2% FREE SALES 0.9 6.8 -0.2 3.5 4.1 3.4 Source: IMS IQVIA 2Q/2020 6 Channel Value Share in Indonesia (2Q/2020)

Hospital channel has decreased both for MNC and Domestic Company, while in Pharmacy channel, the growth was driven by Domestic Company in MAT Q2 2020.

MAT Q2 2020 VALUE SHARE (PHARMACY, HOSPITAL, DRUGSTORE) – HNA PRICE

Growth 0.9% --2.5%2.5% -0.5% 0% 0% 7% 8% 9% 9% 90% 30% 30% 80% 24% 22% 26% 24%

70% 5% 5%

60% 26% 27% 50% 32% 35%

40% 65% 65% 30%

20% 43% 43% 33% 32% 10% Pharmacy Hospital Drugstore 0% MAT 2Q19 MAT 2Q20 MAT 2Q19 MAT 2Q20 MAT 2Q19 MAT 2Q20 DOMESTIC ETHICAL DOMESTIC FREE SALES MNC ETHICAL MNC FREE SALES Source: IMS IQVIA 2Q/2020 7 2 COMPANY OVERVIEW Corporate Structure

* December 31, 2019 * June 30, 2020

90.025% 9.975% 90.025% 1 Share Seri A 9.975% Government Public PT Bio Farma Dwiwarna Public (Persero) Government

2003 2003 2011 2014 2016 2018 2019

KF : 99.99% KF : 99.99% KF : 51.00% KF : 10.00% KF : 80.67% KF : 60.00% KF : 56.77% KFA: 0.01% YKKKF : 0.01% PTPN VIII: 49.00% Jasindo : 10.00% SWP : 19.33% MBM : 40.00% Public : 43.23% Bank Mandiri : 80.00% (Equity Capital)

PEHA: 90.25% Others: 9.75% PEHA : 20.00% Others: 80.00% KFA : 99.99% YKKKF: 0.01% Lucas: 99.91% Others: 0.09% 10 Top 20 Pharmaceutical Industry in Indonesia (2Q/2020)

MAT Rank Top 20 Companies Share% Growth% + 1,133 ,374 315 1 DEXA MEDICA 2.374 5.9 -5.5 (2.8%) (0.8%) 2 SANBE 2,3052.305 5.7 -4.1 3 KALBE FARMA 1,9561.956 4.9 -17.0 4 NOVELL PHARM 1,1901.190 3.0 -4.0 1,448 5 KIMIA FARMA 1,1331.133 2.8 0.1 (3.6%) 4 6 NOVARTIS 980 2.4 -18.9 7 DARYA VARIA 892 2.2 13.8 + + 8 LAPI 854 2.1 -3.1 9 SOHO 834 2.1 52.5 628 1,448 185 BAYER INDONESIA 797 (1.6%) (3.6%) (0.5%) 10 2.0 9.4 11 SANOFI-AVENTIS 773 1.9 -1.8 12 FERRON PAR PHARM 761 1.9 -7.5 13 FAHRENHEIT 753 1.9 -0.9 HOLDING BUMN FARMASI 14 ASTRAZENECA 751 1.9 5.1 2,261 15 INTERBAT 736 1.8 -21.7 (5.7%) 16 DJOJONEGORO C-1000 710 1.8 13.4 17 B.INGELHEIM 633 1.6 -9.5 18 BIOFARMA 628 1.6 -0.3 19 DANKOS 628 1.6 -20.8 20 PFIZER 605 1.5 -4.2 3 Source: Indonesia Total Market Q2 2020 11 Integrated Business Chain

Manufacture of National Production Trading & Clinic & Clinical Active Pharmaceutical Distribution Center Retail Pharmacy Customer Facility Distribution Laboratory Ingredients (API) (NDC) *June 30, 2020

Unit Usaha Sumatera, Bali, Nusa Sulawesi, Jawa Kalimantan Total Business Unit Batam Tenggara Maluku, Papua

Plant 1 10 1 12

Distributor 11 21 3 5 9 49 Retail Pharmacy 217 667 121 130 173 1,308 Clinical Laboratory 11 42 3 6 8 70 Clinic 65 272 24 56 69 486

12 Company Products & Composition Q2/2020 Q2/2019

Generics Ethical Cosmetics OTC & Herbal 47.29%

Cosmetics Ethical 15.29% 23.18% OTC & Herbal 8.50%

Export Medical API 1.00% Devices 4.74% 0.00% Q2/2020

Generic Generic API Medical Device 49.56%

Cosmetics Ethical 7.77% 20.94%

OTC & Herbal Medical 10.99% Devices 7.13% API Export 2.81% 0.81% 13 Covid–19 Health and Safety Audits

. COVID-19 will change business even after the pandemic ends and it is unlikely that everything will return to “NORMAL“ and now we are entering the “NEW NORMAL” era. . Business will face signifcant calllenges in protecting the “SAFE GUARD Employee and Stakeholders of the Company from the health and safety risk associated with the spread of COVID-19. . So that the Company must be able to protect and build trust with Employees and Stakeholders, as a form of transparency and credibility to the Public and Stakeholders. . Currently, the Company is preparing to conduct a Health and Safety Audit related to COVID-19.

STAKEHOLDERS

18 Certification

Good Manufacturing Practice Good Traditional Medicine Good API Plant Watudakon, , , Manufacturing Practice Manufacturing Practice Plant Bandung, Jakarta Plant Kina (SIL)

Good Distribution Practice ISO 9001: 2008 ISO 9001: 2015 (GDP) Plant Jakarta, Bandung, Plant Semarang, Plant Kina (SIL) Trading & Distribution Watudakon, Medan

Food Safety System Certification (FSSC) Certificate of Suitablity ISO 14001: 2015 22000 Plant Kina (SIL) Plant Watudakon Plant Kina (SIL)

Green Environment Halal MUI Certificate Kosher Certificate Plant Bandung, Semarang, Watudakon, Certificate Plant Kina (SIL) Plant Kina (SIL) Plant Jakarta, Bandung, Watudakon, Medan

20 Award

Top Brand Award Musium Rekor Indonesia IICD Corporate Governance Award 3 Awards from Top Brand for: (MURI) Enkasari (Sprue Medicine), Salycil (Health TOP 50 Company Corporate The most of the use of mouthwash Powder), Asifit products (the category of Governance Award 2019 with participants simultaneously Breast Milk Booster)

HR Excellent Award BUMN Marketers Award Indonesia Best Corporate . The most promising company in tactical Sustainability Initiatives 2020 market 2019 Winner of the HR Excellence Award, The Best Corporate Philantropy for . The most promising company in strategic in Category: HR Transformation, Apung Clinic marketing 2019 with a grade: A from SWA magazine . The most promising company in market 3.0 2019

Indonesia Employers of Itech CSR Choice Award 2019 Top Digital Innovation The best CSR in the . The Winner of Indonesian Employers Of Transformation in Smart pharmaceutical industry. Choice Award 2019 Healthcare Business 2019 Excellent Program for Local . The Winner of Job Seeker by Korn Ferry Community Development 2019

Investor Award Top CSR Award 2020 Digital Popular Brand Award Best BUMN 2019 in the category Top CSR Award Star # 4 from Top Kimia Farma Apotek of Non-Financial, Business, the National Committee Pharmaceutical, Food and on Governance Policy, and the Miscellaneous Industries Nawacita Research Institute

21 Long Term Plan Strategy 2020 – 2024

2024 2023 2022 • Global network and 2021 product expansion . Household name for 2020 . Additional capacity health and beauty

and products at KFSP herbal products . Addition of BBO . BBO Import reduction . Becoming one of the Factory Facilities . Retail Transformation . Optimization of the most popular . Commercialization of . Supply Chain Banjaran Factory workplaces in BBO products Optimization . Realization of digital Indonesia . The Banjaran factory . Increase the diversity potential throughout . The leading choice as is fully operational of products and the value chain (joint an integrated . Marketing and portfolios through collaboration with healthcare provider positioning of strategic alliances digital partners) existing brands . Manufacturing . Exporter of high value Excellence & Digital BBO and essential oils Initiative . Stabilization and realization of synergies by acquisitions 22 Strategic Initiatives 2020

INTEGRATED HEALTHCARE ECOSYSTEM With a complete business portfolio (end to end) Kimia Farma is committed to creating integrated health 1 services

OPERATIONAL EXCELLENCE Strengthening the entire value chain business in Kimia Farma Group with its main goal is that the process can run more effectively and efficiently 2

COMMERCIAL EXCELLENCE The initiative is in line with the transformation strategy carried out by the Company, the focus for this is: retail transformation, marketing leadership, penetration of modern markets and strategic 3 relationship management

PORTFOLIO OPTIMIZATION To strengthen the Company's core business, efforts and strategic approaches are carried out in running the business lines 4

INORGANIC GROWTH One of the Company's strategies is to conduct a strategic alliance, this strategy is expected to be able to add to the Company's value proposition to complete the healthcare business portfolio 5

23 3 FINANCIAL HIGHLIGHTS Peer Performance Q2/2020

45,00 38,05 40,00 Peers Growth (2Q/2020) 35,00 25,00 21,28 30,00 26,11 20,00 25,00 15,00 20,00 10,00 3,60 3,81 3,52 5,00 1,56 15,00 0,17 - 10,00 5,44 6,70 -0,11 3,60 -5,00 5,00 -10,00 0,00 3,10 -10,72 -15,00 -17,78 -5,00 -1,50 -1,00 -20,00 KAEF KLBF TSPC DVLA MERK SIDO PYFA PEHA INAF 2017 2018 2019 Q2/2020 KIMIA FARMA 5.44 38.05 26.11 3.60 Growth 3,6 3,81 -0,11 1,56 -10,72 3,52 0,17 -17,78 21,28 PHARMACY INDUSTRY 3.10 -1.50 6.70 -1.00

25 Financial Performance Q2/2020

REVENUE OPERATING PROFIT EBITDA In IDR billion In IDR billion In IDR billion 365,034365.034 4.687.8034,687,803 496,729496.729 296,302296.302 394,502394.502 23.20% 25.91% 4.524.8194,524,819 3.60%

Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020

ASSETS LIABILITIES EQUITY In IDR billion In IDR billion In IDR billion Note: the decline in equity comes from the implementation 17.513.99917,513,999 7,888,1357.888.135 of PSAK 71 forcing the company 10,581,16810.581.168 to preserve OCI

6.932.8316,932,831 16,797,52916.797.529 4.27% 12.11% 8,909,3958.909.395 18.76%

Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020

26 Financial Performance Q2/2020

EBITDA MARGIN ROI

10,60%10.60% 2,14%2.14% 8,72%8.72%

1,93%1.93%

Q2 2019 Q2 2020 Q2 2019 Q2 2020

ROE ROA

0.85%0,85% 0.28%0,28% 0,28%0.28%

0.68%0,68%

Q2 2019 Q2 2020 Q2 2019 Q2 2020

27 4 BUSINESS EXPANSION & INVESTMENT Business Expansion & Investment

CAPEX 2017 - 2020 In IDR Billion Banjaran Plant Rapid Test Plant API & HFC Plant Acquisition of 2,1402.140 PT Phapros Tbk

1,3521.352

788 * 546 Kimia Farma Dawaa Injection Prod. Distribution (KFTD) SAP, QR Code, Track (Saudi Arabia) Facility Renovation & Trace, and Internet of Things (IoT) 2017 2018 2019 2020 4,826 Billion

*projection 2020 Pharmacy, Clinics Health & Beauty Retail Pharmacy & Clinical Lab Clinic Digitalization

30 5 OUR RETAIL BUSINESS-KIMIA FARMA APOTEK Integrated Healthcare Network

Sulawesi, Bali ,Nusa Services Sumatera Jawa Kalimantan Maluku, Total Kimia Farma Apotek has a fully integrated, seamless Tenggara Papua healthcare network covering all 34 provinces in Indonesia – APOTEKS 217 667 130 121 173 1,308 HEALTH cementing its position as the biggest upstream-downstream 65 272 56 24 69 486 pharmacy player in Indonesia CLINICS BEAUTY 3 3 CLINICS CLINICAL 11 42 6 3 8 70 LABORATORIES OPTICS 2 8 10

33 Kimia Farma Apotek – Our Retail Side

HISTORY OUR PRODUCTS

• 468 Klinik Pratama & Utama • Clinic Managed Care • BPJS Network Provider (open provider) • Vaccination Services with No. of International Certified employees • 1.308 Pharmacy • Dental clinic service > 9000 • • Standard Good Pharmacy Practice (GPP) Haemodialysis clinic • More than 38.000 SKU (ethical, OTC, Medical Device) OUR SERVICES • Outblets in Airport, Hotel, and Mall

70 Outlet di 34 kota besar dan 10- outlet optik

34 Financial Performance Q2/2020

REVENUE OPERATING PROFIT EBITDA In IDR billion 2,723,7252.723.725 In IDR billion In IDR billion 105.669105,669 225,789225.789

76,01076.010

2,411,9282.411.928 39.20% 147.02% 12.93% 91,40591.405

Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020

ASSETS LIABILITIES EQUITY In IDR billion In IDR billion In IDR billion Note: the decline in equity comes from the implementation 3,188,4403.188.440 of PSAK 71 forcing the company 2,380,6642.380.664 980,336980.336 to preserve OCI 2,050,4162.050.416 807.776807,776 3,030,7523.030.752

5.20% 16.11% 17.60%

Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020

35 Financial Performance Q2/2020

EBITDA MARGIN ROI

8,29%8.29% 3,36%3.36%

2,54%2.54%

3,79%3.79%

Q2 2019 Q2 2020 Q2 2019 Q2 2020

ROE ROA 5,02%5.02% 5,07%5.07% 1,46%1.46%

1,27%1.27%

Q2 2019 Q2 2020 Q2 2019 Q2 2020

36 Kimia Farma Apotek - Digital Development Roadmap 2020 2021 2022 2023 2024 Pulverizing Seeding Watering Fertilizing Harvesting Digitization to accelerate Explore new business models and Scaling up business growth through Transform, manage, boost and Subsidiarizing and Going Beyond and optimize business revenue streams enhancement customer experience approach enrich KFA business portfolio

1. Launching - Kimia Farma 1. 7 Solutions Optimization: Clinic 1. 7 Solutions Exploration: business 1. Kimia Farma Mobile as a 1. KFAds Subsidiary Optimization, Strategic partnership for Mobile: Ethical, OTC, process efficiency, other income Healthcare hub: a super app 2. KFPort Subsidiary healthcare ecosystem (Insurance, SEO, optimization, new business model Prescription drugs, vaccine covering all of Indonesia 3. KFMobile Subsidiary Hospital, etc), BUMN Connectivity, 2. Increasing Omni-Channel scale with Big reservation healthcare ecosystem. 2. Integrated 7 Solutions Customer Loyalty & Membership Data Analysis 2. Big Data Monetizing business 3. KF Mobile feature enhancement: platform with all KFA 2. Telemedicine: comprehensive tech- insight from the healthcare based long distance service by • Augmented Reality (AR) Beauty, Optic Services: Smartstock, ecosystem data • AI Machine Learning for prediction OmniChannel, Customer healthcare professionals (examination, analysis and personalized service Loyalty, Big Data Analytics, consultation, diagnosis, prescription, references) • New Features: Mother & Child, Clinic Integration, BPJS PRB, 3. New Business Model Wellness & Nutrition, Sexual Health Homecare • KF Digital Experience Store 4. Telemedicine optimization 3. SEO Location: Location • KFPort, Virtual Store in strategic 5. KF Mobile service building: new tagging optimization for all public space customer acquisition, specialist doctor 1266 outlets in Google My • KFAds: Monetize Display Asset for collaboration Business (GMB) both Physical and Digital signage 3rd 6. 7Solutions: SAAS (Software As A party advertising Service) business model 4. SEO Location: Monetizing GMB 7. Single-ID Customer Loyalty location to 3rd party principals 8. GMB growth to all new outlets 5. Integrated Social Media 9. KF Ads and KF Port growth to 2 times of 2021

1. New Customer Acquisition: 1. New Customer acquisition: 1 1. New customer acquisition: 4 1. New customer acquisition: 6 million 1. New customer acquisition: 8 100,000 million million 2. Physician collaboration: 1,500 MDs, million 2. Physician collaboration: 1,000 2. Physician collaboration: 2,000 200 specialists 2. Revenue: 940 billion rd affiliated MDs external MDs, 500 specialists 3. Healthcare hub: 2,000 3 party pharmacies 37 Kimia Farma Apotek Digitalization

• 34 provinces of Indonesia • 1,318 outlets (pharmacies & optics) • 486 clinics (managed by KFD) • 70 laboratories (managed by KFD) Outlets: • 3 beauty clinics

• POS for pharmacies • Online channels: 1,254 pharmacies • Sistem Klinik • Integrated with BPJS-PCare: 9 clinics • Laboratory Information • System (LIS) Integrated with BPJS-Apotekonline: 5 pharmacies • Integrated inventory • Homecare dokter: 3 clinics • Forecasting • Home Pharmacy Care: 5 pharmacies • Integrated master data Kimia Farma Online: Smartstock • e-Commerce • Clinic reservation Partners: • Online consultation • PRB Community • Insurance/TPA • BPJS-Pcare *) *) • BPJS-apotekonline Appstore (IoS): 4.9 , 692 reviews, 2,573 • Cashless payment downloads

Playstore (Android): API • Delivery *) 5.0 , 5,174 reviews, 31,600 downloads Affiliated physicians PCMI • Potensi lainnya e-klinik Hospital pharmacy installations *) to-be On average: 91,000 transactions per day 38 Kimia Farma Mobile

As a Integrated Healthcare SOE, we keep transforming our service quality; in 16 August 2020, we launched Kimia Farma Mobile, our mobile app services – accessible anywhere and anytime

Ease of Access Online Consultation Anytime, Anywhere With our top pharmacists & physicians

OMNI Channel Homecare Top Trending Search for Connected with our 1254 Kimia Farma quality healthcare, Medical Category App pharmacies, all across Indonesia right at your doorstep (15-Okt) in Playstore

Complete Payment Options Vaccine Reservation CC, Virtual Account, eWallet Online vaccine services

Various Shipping Options Diagnostic Services Gosend, JNE, GrabExpress, Our integrated clinical laboratory Kimia Farma Delivery and healthcare clinic services More than just a health app, 2,573 download Kimia Farma Mobile is our new Top GoogleSearch for platform for a healthy lifestyle – “beli obat online” keyword 31,600 downloads easily, quickly, and above all, (15-Okt) by October 11th, 2020 digitally.

40 Kimia Farma Drive-Thru

Our new breakthrough – the first EVER drive thru pharmacy in Indonesia

Where? Apotek Kimia Farma 11 Supratman Bandung Jl. Supratman NO. 72, Kota Bandung.

Why? 1. To combat the COVID-19 pandemic by helping people follow the strict healthcare protocol for physical distancing 2. To give a feeling of safety and comfort for our customers in getting their healthcare needs 3. To create a brand new customer experience

What? Directly buy OTC and prescription drugs, medical devices, food supplements and more from your vehicle without having to get down from your car – teleconsultation with our top qualified pharmacist as you drive by.

41 Kimia Farma and the COVID-19 Pandemic: Mobile Lab PCR

Kimia Farma Diagnostika will expand the reach of our COVID-19 PCR test to even more people and more area in Indonesia, by making it mobile.

By the end of 2020, five PCR Mobile Lab Unit will be opened in 5 cities: , Denpasar, Banjarmasin, Batam, Jakarta

Mobile Lab PCR spec and steps:

1. Mobile Unit + Modified Hino Dutro Cabin Long Chasis, Sandwich Panel & Lab Instruments 2. Supporting Instruments 3. Comparative Test 4. Operational

42 Kimia Farma for Indonesia

National Independence Real Action For Indonesia Equality In Health Distribution With the facility of Active Pharmaceutical Ingredients (API) Supporting the Government as the Kimia Farma supports Kimia Farma encourages the only pharmaceutical industry that the availability of drugs and health products creation of API in Indonesia in produces HIV Medicines to each and every accordance with the ideals of region in Indonesia Indonesia

Non-Stop Dedication Costumer Focus Kimia Farma gained public trust as As a Healthcare Solution, the most comprehensive and Kimia Farma always provides comfort largest health service provider in and a different experience. Through Indonesia with its business chain Kimia Farma Mobile Apps and Kimia from the upstream to the Farma Drive Thru, as one of the downstream of the industry for more solutions for digital customer than 49 years. experiences

Keep Inovating Complete and Integrated

In achieving a Healthy Indonesia, Kimia Health Services Farma conducts research and development, as well Kimia Farma through its Subsidiary, Kimia Farma as innovates to produce good quality products, some Apotek (KFA) and Kimia Farma Diagnostika (KFD) of which are the Covid-19 treatment drug reaches all over the country. (Chloroquine, Hydroxychloroquine, Azithromycin, Favipiravir, Covid – 19 Rapid Test, Immunomodulator)

44 Terima Kasih Semoga Sehat Selalu

KANTOR PUSAT Jl. Veteran No. 9 Jakarta Pusat 10110 Phone: +62 21 3847709 | Fax: +62 21 3814441 Email: [email protected] Website: www.kimiafarma.co.id