Company Performance YTD September 2008 Contents
Part 1 Kalbe at a Glance Part 2 Pharmaceutical Industry Overview Part 3 Business Overview A. Prescription Pharmaceuticals B. Nutritionals C. Consumer Health D. Distribution and Packaging Part 4 Operational Overview Part 5 Growth Drivers Part 6 Financial Overview Part 7 Recent Activities PtPart 8 FtFuture O Otlkutlook
2 Part 1 Kalbe at a Glance
3 Comppyggany Highlights
Largest Publicly-Listed ♦ More than 42-year old pharmaceutical company with long track record of profitable growth. Pharmaceutical ♦ After the merger with PT Dankos Laboratories Tbk. and PT Enseval effective on December 16, Company in Southeast 2005, Kalbe has become the largest publicly-listed pharmaceutical company in Southeast Asia with approximately US$ 1 billion market capitalization in the past year. Asia
3 ♦ Lttltif2Large target population of 235 million i n I nd onesi a, an d 570 million i n S outh eas t Asi ia. Substantial Market ♦ OTC and prescription pharma in the Indonesian and Southeast Asian markets expected to grow Opportunity annually at 10% and 13% respectively over the next several years.
♦ The market leader in Indonesian prescription pharma market with 13% market share as well as a Market Leading leader in consumer health market with 16% OTC market share, 9% share in nutrition market and Positions in Indonesia 30% in energy drink market for the first semester in year 2008. ♦ Unrivaled health distribution network which directlyyy and indirectly covers more than 1 million outlets.
Strong, Diversified, ♦ Consumer health portfolio which includes 13 market leading OTC brands in 7 main therapeutic categories, the market leading brand in pregnant nutrition and clinical foods, and the leading energy High Growth Product drink in Indonesia. Portfolio ♦ Prescription pharma portfolio of 284 products and over 500 SKUs.
Highly Experienced ♦ Averaggge senior management tenure of over 20 y years at Kalbe,,p providing strateg ic continuit y and depth of senior management bench. Senior Management ♦ Average industry experience of over 20 years developing, manufacturing, marketing and selling Team consumer health and pharmaceutical products.
♦ Broad based growth across all business segments with consolidated revenues and net income have Strong Financial Track grown at 14% and 13%, respectively, from 2003-2007. Record ♦ Strong balance sheet with net cash position of almost 1 trillion Rupiah as of September 30, 2008.
Substantial Growth ♦ Consumer health new product development. ♦ Development of prescription pharmaceutical portfolio. Opportunities ♦ Continued expansion in Southeast Asia.
4 Historical Data Kalbe was established in 1966 and has a long track record of profitable growth Inception and Entrepreneurial Excellence, Sustainable Growth, Enhanced Focus and Consolidation Driven Expansion Going Global 1996–2005 1966–1995 2007–2015
1966 1977 1981 1985 1989 1991 1993 1994 1996 1997 2005 2007
1966: 1977: 1985: 1989: 1991: 1994: 2005: 2007-2010 Business Focus Company Dankos Lab Acquired Igar Jaya Kalbe Farma ♦ Entered Consolidation of ♦ Expand regional footprint founded Bintang and IPO energy drink Kalbe Group ♦ Build global brands and infrastructure Toedjoe & Dankos business ♦ Scale through mergers and Hexpharm IPOs ♦ EPM IPO 1996: 1997: acquisitions Disposed of ♦ Disposed of Kalbe’s 1981: ♦ Proprietary drug development 50% of food remaining 50% ownership ♦ Global partnerships and networks Spin-off the 1993: business (PT in PT Bukit Manikam Sakti distribution ♦ Acquired Bukit Manikam to Arnotts business to PT Sanggghiang Sakti) to ♦ Disposed glass packaging Enseval due to Perkasa and Arnotts division to Schott consolidated government ♦ Acquired Woods regulation nutritional Peppermint brand business to Sanghiang ♦ Acquired 80% of Saka Perkasa Farma
Long Track Record of Sustainable Revenue Growth 900 8000 800 7000 700 6000
600 b (IDR 5000 500 4000 D mm) D
400 n) SS 3000
(U 300 200 2000 100 1000 0 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Sales USD Sales IDR Note: Audited financials. Figures since 2005 are post-merger figures.
5 Corporate Overview Established in 1966 is a public company since 1991 and listed on the Indonesia Stock Exchange, Kalbe Farma is now the largest publicly-listed pharmaceutical company in Southeast Asia • Kalbe markets and sells its ppjroducts in 6 major markets in Southeast Asia which in aggregate represent a population of almost 570 million. • Over 15,000 employees and a marketing and sales force near of 6,000 covering 80% of the Indonesian consumer health and 100% of the Indonesian prescription pharmaceutical market. • Sales contribution of Kalbe’s 4 business segments in the 3rd Quarter of 2008: – prescription pharmaceuticals 28.2% – nutritionals 23.2% – consumer health 14.1% – distribution and packaging 25.2%
6 Corporate Overview 4 Divisions of Kalbe Group
KALBE GROUP
Prescription Consumer Distribution & Nutritionals Pharmaceuticals Health Packaging
Energy Drink
OTC Pharmaceuticals
7 Business Overview Kalbe Farma is the market leader in prescription pharmaceuticals, nutritionals and consumer health products in Indonesia
Prescription Distribution & Nutritionals Consumer Health Pharmaceuti cal s PkiPackaging
• Licensed products • Pregnancy nutrition • OTC Pharmaceuticals • Consumer health • Branded generics • Baby milk products • Energy Drink • Prescription pharma Key • Unbranded generics • Baby biscuits • Medical instruments PdProduct • Baby cereals and diagnostics Categories • Clinical food • Consumer products • Fine chemical raw materials
Nuubember 1 in Indo doesanesian A mark et l eader in • Nuubember 1 in • Lar gest pha rm aceuti cal s prescription Indonesian nutrition Indonesian OTC distribution network in Market pharmaceuticals market market and in high end pharmaceuticals market Indonesia Position in nutrition market • Number 1 in • 40 distribution centers Indonesian energy • Indirectly and directly Key drinks market covers more than 1 mm Markets outlets
Revenue IDR 1,570.3 billion IDR 1,417.8 billion IDR 1,268.8 billion IDR 1,460.8 billion YTD Sep 2008
8 Corporate Subsidiaries Pharmaceuticals Nutritionals Distribution & Consumer Health Bintang Toedjoe Sanghiang Perkasa EPMT 99.90% ownership 99.99% ownership 58.19% ownership
Dankos Farma Kalbe Morinaga Tri Sapta Jaya 99.98% ownership 70.00% ownership 58.18% ownership
Finusolprima Farma Bifarma Adiluhung Milenia Dharma Insani 99.988% ownership 99.20% ownership 57.61% ownership
Hexpharm Jaya Labs Enseval Medika Prima 99.60% ownership 57.61% ownership
Saka Farma Labs Global Chemindo Megatrading 80.00% ownership 58.18% ownership Innogene Kalbiotech Pte. Ltd Packaging 90.79% ownership Kageo Kalbe International Pte. Ltd 63.10% ownership 100.00% ownership
Kalbe Vision Pte. Ltd Avesta Continental Pack 100.00% ownership 48.25% ownership
Cordlife Indoneisa Indogravure 30.00% ownership 24.61% ownership Pharma Metric Labs 34.45% ownership
Orange Kalbe Ltd 30.00% ownership
9 Awards & Achievements Klb’Kalbe’s excellent perf ormance i s recogni zed b y a numb er of organi zati ons through the following awards Year 2008: • Kalbe Group received 3 ICSA 2008 medalion. • PT Bintang Toedjoe received K3 Award for implementing K3 System Management consistently for more than 10 years andidtifitdldfl5tiid received certificate and gold flags 5 times in a row. Year 2007: •“Original Product of Indonesia” for Extra Joss from Bisnis Indonesia. •Value Creator Award 2007 (Ranked 22th from 100) from SWA Magazine. •Nominator of Metro TV MDGs Award for the child mortality reduction program, Nov 26, 2007. •One of the “Most Admired ASEAN Enterprises ” and the winner of ASEAN Business Awards for CSR category in the event held by ASEAN Advisory Business Council on Nov 18, 2007. •“Pioneer of Corporate Social Responsibility Award” from Bekasi District Authority. •“Honorable City Tax Payer Award” from Central Jakarta district city Mayor on Aug 23, 2007. •Investor Award 2007 (Ranked 24th of 100 Best Companies, and ranked 2nd in cigarette, pharmacy, and household appliances sector) from Investor Magazine. Year 2006: •“Trusted Company Award” and “Best Company in the Consumer Industry Award” from IICG (Indonesian Institute for Corporate Governance). • “Top 10 Value Creator 2006” for companies with assets >Rp 1 trillion from SWA Magazine, Markplus & Co. •Asia’s Best Managgped Companies Poll Awards 2005 from AsiaMoney. •Investor Award 2006 (the best in cigarette, pharmacy, and household appliances sector) from Investor Daily and Investor Magazine. •CEO of the year 2006 award for Kalbe’s President Director, Johannes Setijono from Bisnis Indonesia. • “Best ”Second Liner” Company to Invest from Bisnis Indonesia. •“Best Company promoting Education awareness in the whole of West Java District 2006 " from Governor of West Java, Danny Setiawan.
10 Part 2 Pharmaceutical Industry Overview
11 Pharmaceutical Industry in Indonesia
• In 2007, the size of local pharmaceutical market was IDR 24.6 trillion (approx. USD2.8 billion) or grew by 9.2% and is expected to grow around 9.1% in 2008. • The market comprised of 60% Prescription Pharmaceutical products and 40% Over the Counter (OTC) products. •Thelevelof competition is quite high with around 200 pharmaceutical companies, including approximately 30 MNCs. • Government has implemented Patent Law and Product Registration based on WTO’ standard and has continued to provide medical treatments for the poor at hospitals and community health centers. • The price increase of pharmaceutical products is lower than the inflation rate, adapting to the low purchasing power.
* Source: IMS Report
12 III. Industry Overview - Corporations Top 5 Corporations in ITMA, IHPA and IPA Market.
ITMA Market Share - YTD 06 2008 IHPA Market Share - YTD 06 2008 IPA Market Share - YTD 06 2008
KALBE KALBE GROUP KALBE GROUP SANBE 14% GROUP 14% 8% 8% DEXA SANBE MEDICA DEXA 6% GROUP MEDICA DEXA 10% GROUP MEDICA GROUP 6% 5% SANBE TEMPO 8% PFIZER GROUP * Others * Others * GROUP 5% * * Others 66% 60% * 5% OTSUKA 69% SOHO NOVARTIS GROUP GROUP GROUP 4% SANOFI‐ 4% 4% AVENTIS GRP 4%
Source: IMS Health, for manufactured SEM 06 2008
13 Part 3 Business Overview 1. Prescription Pharmaceuticals 2. Nutritionals 3. Consumer Health 4. Distribution & Packaging
14 Business Overview Prescription Pharmaceuticals
Licensed Products Branded Generics Generics
Number of • 69 products • 236 products • 41 products Products
• General Anti-infectives;Cefspan. • General Anti-infectives: • General Anti-infectives: Cefotaxime , Fixef; Cravit, Reskuin; Tarivid Broadced, Merofen, Kalfoxim, Mycoral, Amoxycilin; Rifampicin; ,Cefizox, Cefazol, Bactesyn Clavamox Ceftriaxone, Cefadroxil • Hospital Solutions: Octalbin • Central Nervous system: Neurotam. • Alimentary Tract and Metabolism: • Oncology: Paxus; Epirucibin –Kalbe Neuralgin RX, Brainact Ranitidine Key ,Endrolin, Dexorubicin-Kalbe ,Brexel • Musculo-Skeletal System: Kaltrofen • Cardiovascular System: Products • Blood and Blood Forming Organs: • Cardiovascular System: Angioten Simvastatin, Amlodipine Kalnex, Hemapo , Cholestat, Divask • Central Nervous system: Piracetam • Musculo-Skeletal System: Mediflex. • Alimentary Tract and Metabolism: Durolane Rantin, Ulsikur, Pronicy, Metrix, • Alimentary Tract and Metabolism: Plantacid, Lancid Cernevit, Dialac
• Venosmil, Atopiclair, Rexta • Cetinal, Merofen, Mikasin, Hexavask, Trolit, Ferokid • Hydrocortisone, Domperidone, Ketoprofen Endrolin, Durolane, Rillus Likurmin, Osmin, Enystin, Ibufenz, Neo Gynoxa, Methylprednisolone Domet, Osfit DHA, Pregnasea, Vomilat, Hexalgin Recent Kalferon, Brexel, Paloxi, Leucogen Invitec,Lancid, Divask,Car-Q, Metisol, Nevox, Spirola Launched Hepavax, Vimax, Connection Shield CPG, Serolin, Remelox, Ossotin, Buvanest, Roculax Synbio Extraneal, Home Choice, Elanos, Totilac, Kalbiotic, Kalmicetin, Fritens, Gabbryl Products Redutens, Remelox, Glunor, Nefrofer, Beta One, Aloclair, Biogaia, Flexasur Fordiab, Ibukal, Corhinza, Flamenac, Hexacort, Lysin-Ku
Planned • 2009 : 1-2 products • 2009 : 5-10 products • 2009 : 1-2 products Products Launches
15 Business Overview Prescription Pharmaceuticals Kalbe is the number 1 player in prescription pharmaceuticals market
Prescription Pharmaceuticals Market Share
KALBE GROUP 13%
DEXA MEDICA GROUP 7%
SANBE 7%
PFIZER GROUP * Others * 4% 65%
SANOFI‐AVENTIS GRP 4%
Total Market= IDR 8,17 T
Note: Prescription Pharma = ITMA ETH (KF+DKS+HJ) Source:IMS Health, SEM 06 2008
16 Part 3 Business Overview 1. Prescription Pharmaceuticals 2. Nutritionals 3. Consumer Health 4. Distribution & Packaging
17 Business Overview Nutritionals
Nutritionals
Number of 13 products Products
• Nutrition for pregnant mothers • Prenagen : 61.4% market share • Baby biscuits Key • Milna : 65.3% market share Products • Baby milk • Morinaga BMT :10.0% market share • Chil Mil :11.0% market share • Clin ica l Foo d • Diabetasol :67.2% market share Recent • Prenagen RTD, Nutrive Launched Products Benecol, Nulife Bar
Planned • 2009 : 5-8 products Products Various nutritional supplement Launches for adult, baby and toddlers.
Source: AC Nielsen Data 06 2008, for % share in volume
18 Business Overview Nutritionals
Nutritionals Market Share
Nutrifood Gizindo Others 3% 3% 2% Fonterra 6% Mead Johnson 5% Nestle 30% Abbott 5%
Wyeth 5%
Nutricia 8%
Kalbe Nutritionals Sari Husada 15% 9% FFI 11% Total Market = IDR 8.5T
仌 Note: 1.Source: AC Nielsen data SEM Q2 2008 2. Nutrition Division consist of: baby biscuits, baby cereal and powder milk
19 Part 3 Business Overview 1. Prescription Pharmaceuticals 2. Nutritionals 3. Consumer Health 4. Distribution & Packaging
20 Business Overview Consumer Health
OTC Pharmaceuticals Energy Drink
Number of • 28 products • 2 products Products
• Antacid (Promag & Waisan) • Extra Joss 85.4% market share 30% mar ke t s hare – vol(Idilume (Indonesia) • Cough Remedies (Woods,Komix, Mextril) Key 45.7% market share Products • Anti-diarrhea (Neo Entrostop) 43.4 % market share • Cold Remedies (Procold, Mixagrip) 36. 4% market share
• Cro Gold, Cri Xcel, Cri Active • Extra Joss (Cream Soda, Apple, Blackcurrant) Recent • Promag Double Action • Joss Fit Launched • Kalpanax Cream 5 gr Products • Fatigon Viro , Fatigon Hydro+ Planned • 2009 : 1 product • 2009 : energy drink line extension Products Launches Source: AC Nielsen Data 06 2008, for % share in volume
21 Business Overview Consumer Health OTC Pharmaceuticals Market Share Energy Drink Market Share
KALBE Others 8% Extra Joss GROUP M‐150 30% 16% 8%
TEMPO Kuku Bima GROUP 14% 9%
* Others * 58% SOHO GROUP 8%
Krating KONIMEX Hemaviton Daeng PHAROS 5% 18% GROUP 22% 4% Total Market = IDR 6,25 T Total Market = IDR 760.3 Bn
Source: AC Nielsen for Energy Drink Market SEM 06 2008 IMS for OTC - ITMA, SEM 06 2008
22 Part 3 Business Overview 1. Prescription Pharmaceuticals 2. Nutritionals 3. Consumer Health 4. Distribution & Packaging
23 Business Overview Distribution & Packaging Kalbe has the most extensive distribution network of any pharmaceutical company in Indonesia and distributes products for some of the leading healthcare companies in the world Distribution Business Major Third Party Principals by Category
Medical Instrument Fine Chemical Prescription Pharma Consumer & Diagnostic Raw Materials
24 Business Overview Distribution & Packaging
Distribution Revenues by Composition Sep 2007 Distribution Revenues by Composition Sep 2008
3rd 3rd Party Party 23% 23%
Kalbe Kalbe 77% 77%
Packaging Revenues by Composition Sep 2007 Packaging Revenues by Composition Sep 2008
Kalbe Kalbe 35% 45% 3rd Party 55%
3rd Party 65% Part 4 Operational Overview
26 Operational Overview Marketing & Sales Infrastructure Kalbe has a marketing and sales force of approximately 6,000 providing coverage for more than 1 million outlets in Indonesia Infrastructure Indonesian Coverage Comments
• Sales force of over 2,200 • Directly cover 150,000 outlets • Largest sales force in Indonesia Consumer • Indirectly covers over 1 million • Most developed telemarketing team in the outlets or approximately 80% of nutritionals sector Health total consumer health market
• Over 2,000 medical • Market coverage • Largest sales force in Indonesia Prescription representatives 70% of GP market 90% of specialist market Pharma 100% of hospital coverage 100% of pharmacy coverage
• Over 1,800 sales and marketing • 80% of consumer health market • 24-hour order fulfillment for consumer personnel •100% of prescription pharma health products • Total of 4,500 employees market • 4-6 hour order fulfillment for prescription • 60 marktiketing b ranc hes phtildtharmaceutical products throughout Indonesia • 24-hour service for life saving drugs Distribution • 40 distribution centers • Direct delivery to end customers • 1,000 trucks • Offers value added services to customers: • 500 motorcycles Resource management Needs-basis marketing services
27 Operational Overview Man ufactu rin g Infr astr ucture Kalbe operates 11 GMP facilities that are compliant with international standards, with an additional 1 facility under construction Products Bldg Facility Manufactured Area (m2) Production Lines Licensees Certification 9 lines of Non Beta Lactam products ISO9001, ISO14001 , Kalbe Farma 448 42,684 Astellas (tablet, capsule, cream, liquid oral, injection) OHSAS18001 ISO9001, ISO14001, Bintang Toedjoe 41 17,232 3 lines; effervescent, powder & liquid – OHSAS18001, HACCP 3 factories; Non Beta Lactam, Penicillin & ISO9001, ISO14001, Dankos Farma 189 14,905 Daiichi Cephalosporin lines OHSAS18001 6li6 lines (4 (4li lines sach et, 1 1li line ti in, 1 1li line mi ixed d ISO9001, ISO14001 , Sanghiang Perkasa 132 11,869 Morinaga sachet) HACCP, OHSAS18001
Saka Farma 67 7,000 Line Non Beta Lactam products & penicillin – –
3 lines; solid, liquid oral, and semi solid Hexpharm Jaya 143 3,400 – ISO9001 (Non Beta Lactam products)
Fima 24 2,500 Large volume Parenteral Line Baxter ISO9001
Kageo Igar Jaya 900 7,506 18 lines incl packaging & printing – –
Avesta 2,700 8,414 25 lines incl sliting, printing – –
Indogravure 2,714 6,477 10 lines incl printing – –
Kalbe Morinaga 19 33,733 1 wet – drier line, 1 can line, 2 sachet lines Morinaga –
Orange Kalbe Ltd ⊥ – 5,000 2 lines: tablet and cream – NAFDAC (local FDA)
28 Part 5 Growth Drivers
29 Growth Drivers Developppment of Prescription Pharmaceuticals Portfolio
Licensed Branded Generics Generics Innogene ♦ Key therapeutic targets ♦ In-house drug delivery system ♦ Key therapeutic ♦ Bio-generics market for NCEs – Key target areas: cardiology, targets ♦ Proprietary drug development – Oncology neurology, endocrinology, – Antibiotics – Cardiology analgesic, dental products – Analgesic – Neurology ♦ In-house formulation – Gastrointestinal – Endocrinology, – Key target areas: cardiology, – Respiratory Key Key – Critical Care neurology, endocrinology, – Human vaccine analgesic, dental products, Opportunities Opportunities – Biotechnology ophthalmology, respiratory, – Dental products anti aging, kidney – Ophthalmology ♦ TheraCIM / Nimotuzumab (anti EGFR/HER1 MAb) – Phase III – Target market: Glioma, Nasopharyngeal Carcinoma, Cancer of the Head and Neck, pancreatic, lung, etc. – Very similar to Erbitux: same mechanism but much less side effects (e.g: pimples) – To be marketed in 2009 s
ee ♦ 1E10 ( N-glycolyl containing ganglioside ganglioside MAb MAb) – Phase III trial start in Singapore, South Korea & Taiwan – Target market: NSCLC, Breast cancer 2008: 3 products 2008: 10 products 2008: 5 products – Est. launch in 2010–2012
♦ Kalsolac (Lactate-based pharma) Planned Planned – Approved for resuscitation post cardiac surgery (New Zealand) & Traumatic Brain Injury (EU) Product LaunchProduct – Target mkt: Traumatic Brain Injury, Cardiology and Stroke – Has been launched in Indonesia as Totilac(Apr2006) and the Philippines (Nov 07) for Heart surgery patients – Potentially able to repair/improve neurological function after suffering from brain trauma – Australia application for compositional patent is in progress
30 Growth Drivers Development of Nutritionals and Consumer Health Products Portfolio
Nutritionals OTC Pharmaceuticals Energy Drink
• International market and • Preventive products • International market and brand expansion • Balance products: brand expansion - Prenagen antioxidants, immune system - Extra Joss - Entrasol , probiotic, and appetite - Joss Fit Key - Diabetasol stimulation Opportunities - Nutrive Rellax • Beauty products: skin care, anti-aging, body shapp,e, mouth and teeth , varices • Isotonic drink: Fatigon Hydro+
31 Growth Drivers Expansion in South East Asia Kalbe continues to leverage its deep local market knowledge and well established brands into other major Southeast Asian markets
SINGAPORE / MALAYSIA ♦ Brand building of Woods and Milna
PHILIPPINES ♦ Marketing and brand building of Extra Joss
THAILAND ♦ Marketing Bio-Generic products in the very near future
VIETNAM ♦ Marketing of selected prescription pharmaceuticals, OTC pharmaceuticals, and energy drink products
32 Part 6 Financial Overview
33 Financial Overview
Revenues, Operating Income, and Net Income from 2005 - 2007
Revenues Operating Income Net Income
7500 766.5 800 1140.0 123.6 125.0 720.0 77.2 80.0 700.0 73.7 750 1120.0 1129.4 7000 116.7 120.0 705.7 75.0 661.1 680.0 7004.9 700 1100.0 6500 115.0 660.0 676.6 70.0 603.9 650 1080.0 109.0 64.4 640.0 6000 110.0 65.0 1060.0 1071.3 600 620.0 6071.5 1060.0 626.1 5500 105.0 60.0 5870.9 550 1040.0 600.0
5000 500 1020.0 100.0 580.0 55.0 2005 2006 2007 2005 2006 2007 2005 2006 2007 in Rp (Bio) in USD (Mio) in Rp (()Bio) in Rp (Bio) in USD (Mio) in USD (Mio)
Note : • Based on audited financial reports • Financial reports converted at average exchange rates as of US$1=IDR 9,721.65 in year 2005, US$1= IDR 9,183.77 in year 2006, and US$1= IDR 9 ,38 .50 i n year 2007 .
34 Financial Overview Revenue, Gross Profit, Operating Income, and Net Income YTD September 2008
5,718 ∆ 10.96% 5,153 lion) ll ∆ 6.42% 2,634 2,803
∆ -12.23%
in IDR (Bi 932 818 605 504 ∆ -16.69%
YTD Sep 2007 YTD Sep 2008
Revenues Gross Profit Operating Income Net Income
Note: • Based on Financial Report Third Quarter 2008 (unaudited)
35 Financial Overview
Revenues Contribution by Division YTD September 2008
Revenues Contribution Revenues Contribution YTD September 2007 YTD September 2008
Distribution & Pack. Prescription Distribution Prescription 24% Pharma & Pack. Pharma 26% 26% 27%
Nutrition Consumer NutritionNutritionals Consumer Nutritionals 25% Health 23%23% Health 25% 27% 22%
Note: • Based on Financial Report Third Quarter 2008 (unaudited)
36 Financial Overview Revenues by Division YTD September 2008
5,718 5,153
1,570 1,418 1,461 1,334 1,180 1,372 1,269 1,266
∆ 17.69% ∆ 20.17% ∆ -7.51% ∆ 15.40% ∆ 10.96%
PrescriptionPitiPrescription Pharma Pharma NutritionNtitiNutritional s CHlthC Consumeronsumer HHealthealth DistributionDis tr ibuti on & Pack.& TtlRTo TOTALtal Revenues NS Packaging YTD Sep 2007 YTD Sep 2008
Note: • Based on Financial Report Third Quarter 2008 (unaudited) • in IDR Billion
37 KALBE FARMA TBK. ======CONSOLIDATED INCOME STATEMENTS HIGHLIGHTS
In IDR Billion Jan – Sep 2008 % to NS Jan – Sep 2007 % to NS % Growth
NET SALES 5,718 100.0% 5,153 100.0% 11.0% COGS 2,915 51.0% 2,519 48.9% 15.7% GROSS PROFIT 2,803 49.0% 2,634 51.1% 6.4%
OPERATING EXPENSES Selling 1,615 28.2% 1,397 27.1% 15.6% General & Admin. 329 5.8% 271 5.3% 21.3% R&D 41 0.7% 34 0.6% 21.8% TOTAL OPERATING EXPENSES 1,985 34.7% 1,702 33.0% 16.6%
OPERATING INCOME 818 14.3% 932 18.1% -12.3% NET INCOME 504 88%8.8% 605 11. 7% -16. 6%
Note: • Based on Financial Report Third Quarter 2008 (unaudited)
38 KALBE FARMA TBK. ======CONSOLIDATED BALANCE SHEETS HIGHLIGHTS
In IDR Billion 30 Sep 2008 30 Sep 2007 % Growth
ASSETS
CURRENT ASSETS Cash & cash equivalent 916 10911,091 -16. 0% Short-term investment, net 155 243 -36.2% Trade receivables 977 845 15.6% Other receivables 72 69 4.3% Inventories, net 1,763 1,433 23.0% Other current assets 435 400 8.8% TOTAL CURRENT ASSETS 4,319 4,081 5.8%
TOTAL NON-CURRENT ASSETS 1,449 1,353 7.1%
TOTAL ASSETS 5,768 5,434 6.1%
Note: • Based on Financial Report Third Quarter 2008 (unaudited)
39 KALBE FARMA TBK. ======CONSOLIDATED BALANCE SHEETS HIGHLIGHTS
In IDR Billion 30 Sep 2008 30 Sep 2007 % Growth
LIABILITIES
CURRENT LIABILITIES Short-terms loans 119 44 170.4% Trade Payables 539 408 32.1% Other Payables 41 32 28.1% Accrued Expenses 217 182 19.2% Taxes Payables 330 417 -20.9% Current Maturities of Long-Term Debts 261 5 5120.0% TOTAL CURRENT LIABILITIES 1,507 1,088 38.5%
TOTAL NON-CURRENT LIABILITIES 98 359 -72.7%
TOTAL LIABILITIES 1,605 1,447 10.9%
MINORITY INTERESTS 700 617 13.5%
EQUITY 3,463 3,370 2.8%
TOTAL LIABILITIES & EQUITY 5,768 5,434 6.1% Note: • Based on Financial Report Third Quarter 2008 (unaudited)
40 KALBE FARMA TBK. ======CONSOLIDATED CASH FLOWS STATEMENTS HIGHLIGHTS
In IDR Billion Jan - Sep 2008 Jan - Sep 2007 % Growth
NET CASH from: Operating Activities 378 188 101.1% Investing Activities (156) (25) 524.0% Financing Activities (442) (339) 30.4%
NET DECREASE IN CASH AND CASH EQUIVALENTS (220) (173) 27.2%
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,116 1,261 -11.5%
CASH AND CASH EQUIVALENTS AT THE END OF YEAR 916 1,091 -16.0%
Note: • Based on Financial Report Third Quarter 2008 (unaudited)
41 Part 7 Recent Activities
42 Recent Activities
RISTEK-KALBE SCIENCE AWARDS : Kalbe Farma together with Indonesian Ministry of Research & Technology has held Recognizing Scientific Achievement event. The event was held on Oct 31,2008 at Four Seasons Hotel.
Kalbe Nutritionals launched Nutrive Benecol, the world’s first liquid cholesterol control in the form of smoothie (blend of milk and fruit juice). PT. Kalbe Farma launched anti-agregation platelet CPG (Clopidogrel bisulfat) product. Grand launching of Kalbe Eco-Friendly Data Center, Jakarta on 8 Aug 2008, partnering with IBM to reduce energy consumption.
43 Recent Activities Shares Buyback
Shares Buyback Phase I Phase I has ended on August 7, 2008. Tot al repurch ased s hares in Phase I is 4. 9% o f to ta l issue d an d fu lly pa id cap ita l. The average cost price/share was IDR 1,065. Total fund used for the share repurchase amounting Rp 529,595,289,950. Shares Buyback Phase II Approved by Company’s EGMS held on September 17 , 2008 . Share Buyback Phase II has started on September 17, 2008 and shall end on March 16, 2010. Maximum repurchased shares in Phase II was 5,1% of total issued and fully paid capital. The fund reserved for the repurchased shares is IDR 419.9 billion. Number of repurchased shares during Phase II is 0.16% of total issued and fully paid capital. Total Number of repurchased shares during Phase I and II is 5.06% of total issued and fully paid capital. Shares Buyback Based on Bapepam & LK Regulation No. XI.B.3 Based on Bapepam & LK Regulation No. XI.B.3. on “Repurchase of Shares Issued by Issuers or Public Companies in the Potential Crisis Market Condition”. Maximum repurchased shares is 14.94% of total issued and fully paid capital. The fund reserved from the repurchased shares is IDR 941 billion.
44 Part 8 Future Outlook
45 Future Outlook
• Kalbe Farma has designed its business portfolio on 8 footholds:
Kalbe Farma Tbk
Health International Pharma Consumer Nutrition Logistic MIDI Packaging Services Business
• Strengthen and expand Kalbe’ s business portfolio . • Optimize and improve productivity and supply chain. • Increase research and developments activities. • Expan d di st rib uti on and selli ng areas. • Develop competent leaders.
46 THANK YOU
Important Notice
This presentation has been prepared for informational purposes only by PT Kalbe Farma Tbk. (“Kalbe” or the “Company”). The information contained in this Presentation does not purport to be all-inclusive or to contain all of the information that may be material to an investor’s decision. It should be noted that the information contained in this Presentation is subjected to further review, and that such information may be updated and/or amended from time to time as circumstances change or more information becomes available. Some of those revisions or changes may be material. Each recipient of this Presentation should therefore perform their own independent analysis of the business, operations, financial condition, creditworthiness, status and affairs of Kalbe. Each recipient should also conduct their own enquiries into the adequacy, accuracy, and completeness of any information relating to Kalbe, as the information and data contained in this Presentation are not substitutes for the recipient’s independent evaluation and analysis. This presentation is not an offering document and will be updated regularly according as necessary.
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