Company Update Audited FY December 2013
March 2014 Forward Looking Statement
This presentation has been prepared for informational purposes only by PT Kalbe Farma Tbk. (“Kalbe” or the “Company”). This presentation has been prepared solely for use in connection with the release of 31 December 2013 audited results of the Company. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of their respective affiliates, and their respective commissioners, directors and employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Any decision to purchase or subscribe for securities of the Company should not be made on the basis of the information contained in this presentation. The presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. This presentation and its contents are confidential unless they are or become generally available as public information in accordance with prevailing laws and regulations (other than as a result of a disclosure by you) and must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation, including the information and opinions contained herein, is provided as of the date of this presentation and is subject to change without notice, including change as a result of the issuance of 31 December 2013 audited results of the Company . This presentation includes "forward-looking statements". These statements contain the words "anticipate", "believe", "intend", estimate", "expect" and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans, objectives relating to the Company's products and services and anticipated product launches) are forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or reflection of any change in the Company's expectations with regard thereto, or any change in events, conditions or circumstances on which any statement is based. Market data and certain industry forecasts used in this presentation were obtained from market research, publicly available information and industry publications which have not been independently verified, and no representation is made as to the accuracy of such information.
2 Table of Contents
Corporate Overview 4
Market Overview 7
Business Overview 11
Financial Overview 29
Corporate Actions and Outlook 2014 35
Appendix 39
3 SECTION 1 Corporate Overview Corporate Overview
Largest Publicly-Listed Pharmaceuticals Company in Southeast Asia
• Established in 1966 and headquartered in Jakarta • A public company since 1991 and listed in the Indonesia Stock Exchange • The largest publicly-listed pharmaceuticals company in Southeast Asia • Sales breakdown by segment and by geographical location for FY December 2013 is as follows:
Prescription Export Pharmaceuticals 4% Distribution & 24% Logistics 36%
Consumer Domestic Health 96% Nutritionals 16% 24%
Total Sales = Rp 16,002 Bn Total Sales = Rp 16,002 Bn
5 Corporate Strategy
Kalbe has a long track record of sustainable growth
Inception and Entrepreneurial Enhanced Focus and Consolidation Regionalization Driven Expansion 1996–2005 2006–2015 1966–1995
2010: 2012: Disposed of Kageo Igar Jaya ♦ Generic production 1981: 1995: Established a joint venture facility comes on stream Spin-off the 1994: Disposed of 50% company, Asiawide Kalbe ♦ Acquired PT Hale distribution business Entered 2006: Philippines Inc. International of food business 2005: 1966: to PT Enseval due to 1991: energy drink (PT Bukit Scale through Inaugurated Panca Sradha ♦ Established a joint Consolidation Company government Kalbe Farma business Manikam Sakti) mergers and Kalbe as our Corporate venture company PT of Kalbe Group founded regulation IPO EPMT IPO to Arnotts acquisitions Values Kalbe Milko Indonesia 1966 1977 1981 1985 1989 1991 1993 1994 1995 1997 2005 2006 2007 2010 2011 2012 2013 1977: 1997: 2007: 2011: 2013: Strengthen 1985: 1989: 1993: Disposed of Kalbe’s Launch of new corporate EPMT Rights Issue to Cancellation of pharma Expansion to Igar Jaya Strengthening remaining 50% logo as part of finance expansion the Company’s business by consumer and nutritionals ownership in PT Bukit transformation process Increased dividend Treasury Stocks establishing health Dankos business by Manikam Sakti to Products entered every payout ratio to 50% 0f 7.7% Dankos Lab through IPOs acquiring Arnotts ASEAN countries (except acquisition of Sanghiang Perkasa Disposed glass Laos) Bintang and consolidating packaging division to nutritional business Opening of the Stem Cell Toedjoe and Schott and Cancer Institute in pharma to Sanghiang Acquired Woods Implementation of end-to- through Perkasa Peppermint brand end supply chain Hexpharm Acquired 80% of Saka management Jaya 1600 Farma Integrated information 18,000 acquisition 1400 technology systems 16,000 1200 14,000 1000 12,000 (IDRbn) 10,000 800 8,000 600 (USD mm)(USD 6,000 400 4,000 200 2,000 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Sales USD Sales IDR 6 SECTION 2 Market Overview Indonesia’s Health Spending Trends
• Total expenditure on health averaged 2.1% of Healthcare Expenditure/GDP 2010 GDP over the 11 year period 1999-2009. 5.00% 4.8% 1.2 4.50% 4.1% 3.8% 1 4.00% 3.5% 3.50% 3.3% • BPJS Health program has commenced on 0.8 3.00% January 2014 and with a target to cover 40%2.50%- 2.1% 0.6 2.00% 0.4 50% of the population in 2014 and the entire1.50% 1.00% 0.2 Indonesian population by 2019. 0.50% 0.00% 0 Malaysia Thailand Philippines India Singapore Indonesia
Source : Business Monitor International: Pharmaceutical & Healthcare Report, Q3 2011 (Indonesia, Malaysia, Thailand, Philippines, India, Singapore)
Total Healthcare Expenditure BPJS Coverage - Roadmap
(Rp Tn) Growth of 13.9% 2014 2019 312 343 281 251 221 194 168 122 139 250 mn people 100% coverage 120 mn people 50% coverage 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 76.4 mn people were covered by Jamkesmas program before the launch of BPJS Source : Business Monitor International: Indonesia Pharmaceuticals & Healthcare Report Q3 2012 Source : Roadmap to National Health Insurance 2012 - 2019
8 Pharmaceuticals Market Breakdown
Kalbe – No. 1 in the Pharma Industry Kalbe continues to lead in the highly fragmented pharmaceuticals industry with over 200 players
Pharma Market Breakdown Market Share Kalbe 12% a 6% OTC b 5% 41% c 5% d 4% Others 68% Branded & Ethicals Licensed Pharma Industry (Prescription) 86% (in trillion Rupiah) 59% 53.8 47.6 43.2 Unbranded 35.5 38.6 CAGR 14% 10.95% Total Market FY 2013 Rp 53.8Tn Source: IMS Health ITMA YTD 12 2013 Note: Restatement of 2012 IMS market data FY2009 FY 2010 FY 2011 FY 2012 FY 2013
9 Recent Indonesian Pharmaceuticals Regulatory
National Healthcare Insurance System
Presidential Decree No. 101 Year 2012 regarding Recipients of Health Insurance Premium Subsidy • Government will subsidize health insurance premium for poor population members Presidential Decree No. 13 Year 2013 regarding Health Insurance • All Indonesians are required to be a member of the Health Insurance. • First stage of implementation in 2014 will cover subsidy recipients, military members, civil servants, and formal sector workers. Second stage will cover all population members by 1 January 2019.
Price Caps on Key Generic Drugs
Ministry of Health Decree No. 092 /Menkes/SK/II/2012 issued on 23 February 2012 • Replaces the previous Ministry of Health Decree No. 632 /Menkes/SK/III/2011. • The Indonesian Ministry of Health has set selling price and retail price caps on 498 generics drugs for pharmacies, hospitals and other healthcare institutions throughout Indonesia. Ministry of Health Decree No. 094 /Menkes/SK/II/2012 issued on 23 February 2012 • Replaces the previous Ministry of Health Decree No. 633 /Menkes/SK/III/2011 issued on 24 March 2011 • The Indonesian Ministry of Health has set different price caps based on different regions for government procurement in government healthcare facilities.
Local Production Facilities Requirements Ministry of Health Regulation No. 1010/MENKES/PER/XI/2008 issued on 3 November 2008 • It prohibits foreign pharmaceutical companies from registering drugs in Indonesia unless they have local production facilities.
10 SECTION 3 Business Overview Prescription Pharmaceuticals Division
Strong Top Line Growth
+17.7% • No. 1 player in Indonesian Prescription Pharma Market. 3,869 3,288 • The largest medical representatives team in Indonesia with more than 2,300 personnel. • Comprehensive product offerings for all income groups. 31 Dec 2012 31 Dec 2013 (Audited) (Audited) Licensed SALES in Rp Bn Products Market Share (ITMA) 26.3% FY 12 2013 Branded Unbranded KALBE a b c Generics d Generics 61.8% GROUP 9% 6% 4% e 11.8% 4% 15% 4% f 3%
OTHERS 55% Total Sales Rp 3,869 Bn • Gross Profit Margin (GPM) declined from 61.8% in YTD 12 2012 to 60.8% in YTD 12 2013, mostly due to Total Market = Rp 31.6Tn Rupiah depreciation and product mix. Source: IMS Health Prescription Pharmaceuticals YTD 12 2013 Note: Restatement of 2012 IMS market data
12 Prescription Pharmaceuticals Division
Growth Drivers
Penetrating further in the unbranded Strengthening presence in generics market specialty products • Selection of focused categories to achieve scale • Completion of Kalbe’s first oncology factory • Utilization of dedicated unbranded generic plant in Indonesia in 2014
Expanding licensed products from • Starting building competence in stem cells and genomics multinational companies to gain technology Stem Cells and transfer Cancer Institute
13 Consumer Health Division
Strong Brand Equity with Leading Market Position
Market share of Kalbe’s brands Therapeutic Class Kalbe’s Products Market Share 2013 Antacid Promag, Waisan 75.2% Anti Diarrhea Neo Entrostop 44.8% Cough Remedies Komix, Woods, Mextril, Mixadin 33.9% Cold Remedies Mixagrip Reg, Mixagrip FB, Procold 37.4% Multivitamin Cerebrovit, Fatigon, Sakatonik Liver 30.8% Children Multivitamin Cerebrofort, Sakatonik ABC 18.1% Energy Drink ExtraJoss 25.0%
Source : AC Nielsen YTD 12 2012 and Company’s estimation 2013, in volume
14 Consumer Health Division
Strong Net Sales Performance
+16.6% • No. 1 Player in OTC market and No. 2 in 2,505 Energy Drink category. 2,149 • GPM decreased from 55.2% in YTD 12 2012 to 53.3% in YTD 12 2013 due to change in product mix and Rupiah depreciation. 31 Dec 2012 31 Dec 2013 (Audited) (Audited) SALES in Rp Bn
OTC Energy Drink YTD 12 2013 YTD 12 2013 (Unit) Others a b c d d e 13% KALBE 9% 8% 7% 5% 3% 3% f a GROUP c 3% 39% 9% 7% Others 55% b 13% Extra Joss, 25%
Total Market = Rp 22.2 Tn Source : IMS Health OTC YTD 12 2013 Note: Restatement of 2012 IMS market data Source : AC Nielsen YTD 12 2012 and Company’s estimation 2013, in volume
15 Consumer Health Division
Innovative New Products
Hydro Coco An isotonic drink made of real coconut water. Original Love Juice Fresh bottled fruit juice made of quality fruits available in pomegranate, orange, guava, apple, and soursop flavors Tipco Fruit Juice A healthy drink made of fruits and vegetables Promag Suspension Liquid antacid in sachet Nitros Concentrated energy drink in liquid form with convenient tube packaging Herbal Products Promag Gazero Herbal remedy to relieve flatulence Woods Herbal Herbal cough syrup Bintang Toedjoe Masuk Angin Traditional herbal remedy for common cold symptoms Entrostop Anak Herbal remedy for diarrhea in children
16 Nutritionals Division
Complete Range of Nutritional Products • Catered to expecting & lactating mothers, babies, toddlers, children, tweens and adults.
Expecting Lactating Baby Toddler Kid Tween Teen 25+ 35+ Clinical
17 Nutritionals Division
Growth of Indonesian Powdered Milk Market
By Volume (Kg ‘000) By Value (Rp Bn)
5.2% 11.4% 17,615 183,944 174,855 15,808
FY 2012 FY 2013 FY 2012 FY 2013
Source : AC Nielsen, YTD 12 2013
18 Nutritionals Division
Strong Net Sales Performance
+25.9% • Strong brand awareness of existing major 3,792 products 3,012 Kalbe’s Products Market Share 2013 Diabetasol 88.0% Milna 65.7% 31 Dec 2012 31 Dec 2013 Prenagen 57.0% (Audited) (Audited) Morinaga Chil Mil 8.1% SALES in Rp Bn Morinaga BMT 10.4% Powdered Milk Market Share YTD 12 2013 Entrasol 8.1% g h iOthers f 2%2% 2% 2% Morinaga Chil Kid 5.8% e 3% a 6% 30% d Zee 5.5% 8% Morinaga Chil School 2.4% Kalbe Nutritionals 10% • GPM declined to 60.3% in YTD 12 2013 from c 13% b 62.7% in YTD 12 2012, mostly due to Rupiah 22% Total Market = Rp 17.6 Tn depreciation, increasing raw material price, and Source : AC Nielsen, based on Value (Rp) product mix.
19 Nutritionals Division
Launching of New Products
Diva Health drink with collagen and antioxidant for skin care
Nutrive Benecol Smoothie with special ingredient to lower cholesterol
Fitbar A healthy snack bar with low calories, zero cholesterol and zero trans fat.
Zee Powdered milk for kids and tweens targeted to the middle segment, now also available in sachet packaging
Morinaga Soya & P-HP Customized infant formula and growing up milk for lactose intolerance and milk protein allergy.
20 Nutritionals Division
Multi Channel Customer Touch Points Kalbe e-store - the 1st Online Nutrition Store in Indonesia
Nutritionals Division launched new channel of consumer order through hotline service Kalbe Home Delivery 500- 880 and online shopping through www.kalbestore.com . Kalbe Family Rewards Card offers point rewards for consumers to build consumer loyalty. KalCare Experiential Store provides various services to build customer engagement and support branding activities.
21 Distribution & Logistics Division
The Most Extensive Distribution Network
RDC Branches Cities 2 68 50
22 Distribution & Logistics Division
Net Sales Performance on Consolidated Basis +12.5% • Distribution & Logistics Division is run under 5,836 PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly 5,188 listed company (91.75% owned). • Net sales represents the 3rd party product sales and distribution margin of internal product sales for consolidated accounting purposes. 31 Dec 2012 31 Dec 2013 • GPM increased to 29.2% in YTD 12 2013 from 27.5% in YTD 12 (Audited) (Audited) 2012. SALES in Rp Bn Distribution Business Details on Stand Alone Basis
(Figures in Rp Bn) Gross profit margin 18,000 12.0% 15,623 11.3% 16,000 10.0% 14,000 Kalbe Group 66% 12,000 8.0% 10,000 Income before tax rd 6.0% 3 Party Principals 19% 8,000 margin 6,000 4.0% 4.0% Raw Material Trading 7% 4,000 1,763 2.0% 2,000 623 Medical Devices 7% - 0.0% Net Sales Gross Profit Income Before Tax
23 Distribution & Logistics Division
Major Third Party Principals by Category
Prescription Medical Instrument Fine Chemical Pharmaceuticals Consumer & Diagnostic Raw Materials
24 Distribution & Logistics Division
Growth Drivers
Medical Devices Retail Health Services : 67 Mitrasana Clinics Medical Devices is an area of potential • Opening of Mitrasana Clinics as a growth, especially in the implementation one-stop service with 4-in-1 of National Healthcare Insurance concept, including family doctor, System where demand for medical pharmacy, laboratory, and devices is projected to grow further. convenient store. • A 100% owned subsidiary of EPMT. • To date, Kalbe has opened 67 Net Sales (in Rp Bn) Mitrasana clinics in Jakarta and its Greater Area. 1142 CAGR 969 915 870 17.9% 673 502
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013
25 Distribution & Logistics Division
Strengthening Distribution Network
• Continues to expand distribution infrastructure 1. Expand into new territories in Indonesia 2. Upgrade existing branch facilities to improve service quality 3. Establish several Regional Distribution Centers (RDC) throughout Indonesia 4. Expand warehouse capacity
• Colaborate with local sub-distributors to gain territorial expansion
2013 overview • 3 new branches in Lhoksemauwe, Kudus, Sukabumi • Upgraded branches in Pontianak, Cirebon, and Mataram Pontianak Cirebon
26 Marketing and Sales Infrastructure
The largest sales force for Pharma and Consumer Health in Indonesia
Prescription Distribution & Consumer Health Nutritionals Pharmaceuticals Logistics • Over 2,000 sales & • Over 2,300 medical • Approximately 1,000 • Over 1,000 marketing marketing personnel representatives marketing and sales personnel • Total of 4,000 force employees Infra- • 68 marketing branches structures throughout Indonesia • 45 branches & 23 at subsidiaries •1,000 trucks • 500 motorcycles
Market coverage • Directly cover • Market Coverage • 80% of consumer • 70% of GP market 200,000 outlets throughout Indonesia health market covered • Products available in •100% of prescription • 90% of specialist market Indonesia over 1mn outlets or pharma market covered Coverage • 100% of all hospitals 80% of total covered consumer health • 100% pharmacy market coverage
• Most developed • Largest marketing • Largest sales force in telemarketing team in Comments team in Indonesia Indonesia the nutritional sector
27 Manufacturing Infrastructure
Operates 10 GMP facilities complying with international standards
Products Building Area Facility Production Lines Licenses Certification Manufactured (m2) 9 lines of Non Beta Lactam Products ISO 9001, ISO 14001, Kalbe Farma 448 56,746 Astellas (tablet, capsule, cream, liquid oral, injection) OHSAS18001 ISO 9001, ISO 14001, Bintang Toedjoe 46 20,849 3 lines; effervescent, powder & liquid -- OHSAS18001, HACCP 4 factories; Non Beta Lactam, Penicillin & Daiichi, ISO 9001, ISO 14001, Dankos Farma 189 23,101 Cephalosporin, Oncology lines Samyang OHSAS18001 6 lines (4 lines sachet, 1 line tin, ISO 9001, ISO 14001, HACCP, Sanghiang Perkasa 132 11,869 Morinaga 1 line mixed sachet) OHSAS18001 ISO 9001, ISO 14001, Saka Farma 32 1,763 Liquid, Non Beta Lactam products -- OHSAS18001 Solid tablet & dry syrup Hexpharm Jaya 73 16,533 -- ISO 9001 (Non Beta Lactam products) ISO 9001, ISO 14001, Fima 24 2,500 Large volume Parenteral Line Baxter OHSAS18001
Kalbe Morinaga 19 33,733 1 wet - drier line, 1 can line, 2 sachet lines Morinaga ISO 9001, ISO 22000
Orange Kalbe Ltd. - 5,000 2 lines; tablet and cream -- NAFDAC (local FDA)
Hale International 6 10,000 Semi hot-filled PET -- ISO 22000/2005 GMP, HACCP
28 SECTION 4 Financial Overview Consolidated Sales
Strong Top Line Growth of Internal Kalbe Products
Net Sales (in Rp Bn)
17.3%
31 Dec 2012 31 Dec 2013 16,002 (Audited) (Audited) 13,636
12.5% 17.7% 16.6% 25.9% 5,188 5,836 3,869 3,792 3,288 3,012 2,149 2,505
Prescription Consumer Health Nutritionals Distribution & Consolidation Pharmaceuticals Logistics
30 Consolidated Operating Performance
Stable Margin
Gross Profit Margin Operating Expenses to Net Sales Ratios
47.9% 48.0% 31.6% 32.1% 0.7% 0.8%
4.8% 4.8% Selling & Marketing 31 Dec 2012 31 Dec 2013 (Audited) (Audited) General & Administrative 26.2% 26.4% Operating Profit Margin Research & Development 16.3% 15.9% 31 Dec 2012 31 Dec 2013 (Audited) (Audited)
• Marketing efforts to drive brand awareness 31 Dec 2012 31 Dec 2013 • Research & development activities for product (Audited) (Audited) developments
31 Consolidated Net Earnings
Sustainable Earnings Growth
Income Before Tax Net Income (in Rp bn) (in Rp bn)
+ 11.5% +10.7 % 2,573 2,308 1,920 1,734
31 Dec 2012 31 Dec 2013 31 Dec 2012 31 Dec 2013 (Audited) (Audited) (Audited) (Audited) • Income before tax margin declined from 16.9% in YTD • Net income margin declined from 12.7% in YTD 12 12 2012 to 16.1% in YTD 12 2013, partly reflecting 2012 to 12.0% in YTD 12 2013 due to lower income foreign exchange translation impact. Rupiah closed at before tax margin. Rp 12,189 per 1 USD at the end of 2013, compared to Rp 9,670 per 1 USD at the end of 2012, and Rp 9,068 per 1 USD at the end of 2011.
32 Working Capital Management
A Temporary Spike in Working Capital
Temporarily higher level of raw materials inventory and 158 No. of days impact of Rupiah 129 131 depreciation 120 108 142 114 132 122 Net Operating Cycle has 110 115 107 been decreased by 27 days from 158 days in 2008 to 131 50 43 45 44 48 48 days in 2013 57 50 38 35 41 27 End-to-end supply chain
31 Dec 2008 31 Dec 2009 31 Dec2010 31 Dec 2011 31 Dec 2012 31 Dec 2013 management would be (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) continuously implemented Days of Account Receivables Days of Inventories to overcome any Days of Account Payables Net Operating Cycle fluctuation in inventory
33 Solid Financial Position
Rp 0.84 Trillion of Net Cash Position
Total Debt and Gearing Ratio Cash & Net Cash Balance
2,291 2,151 1,902 1,877 1,860 1,655 1,562 1,426 1,322 600 15.0% 1,222 11.2% 500 917 843 400 7.9% 7.2% 10.0% 300 200 2.3% 2.9% 5.0% 0.5% 100 405 340 25 141 205 584 0 0.0% FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) Total Debt in Rp Billion Cash and Cash Equivalent in Rp Billion Gearing Ratio Net Cash in Rp Billion
34 SECTION 5 Corporate Actions & Outlook 2014 Corporate Actions
Dividend Payment for Fiscal Year 2012
Historical Dividends Kalbe has obtained the approval of the AGMS 20.0 60% 80% on May 20, 2013 to pay dividend of Rp 891 bn, 51% 51% 15.0 60% or equivalent to Rp 19 per share. This reflects a 26% 10.0 17% 19.0 19.0 40% payout ratio of 51% for financial year 2012. 14% 14.0 5.0 20% 2.0 2.5 5.0 Dividend has been paid on July 2, 2013. 0.0 0% 2007 2008 2009 2010 2011 2012 * Cash dividend are adjusted for stock split impact Cash Dividend* (Rp/share) Dividend Payout Ratio (%) Acquisition of PT Hale International To accelerate expansion in the ready-to-drink segment, on July 6, 2012, Kalbe completed the acquisition of PT Hale International, a health beverage manufacturing company, worth Rp 98.6 billion. Joint Venture to form PT Kalbe Milko Indonesia Kalbe signed an agreement with PT Milko Beverage Industry to form a joint venture company, PT Kalbe Milko Indonesia, to manufacture liquid nutritionals products with an estimated investment of Rp 100 – 150 Bn. Cancellation of Treasury Stocks Kalbe has obtained shareholders’ approval for treasury stock cancellation in the EGMS on May 20, 2013.
36 Corporate Social Responsibility
Looking after all our stakeholders
Kalbe Junior Science Fair 2013 Environmental Sustainability Consumer Protection ISO 14001:2004
Certified Environmental Management System Kalbe Care Dedicated Customer Care Team
More than 84,000 visitors
Education Health Environment Infrastructure
Kalbe Care for Health : medical consultation, disaster relief, blood donor; more than 25,000 beneficiaries, more than 3,000 employees involved
37 Outlook 2014
Earnings Guidance 2014
1. Year-on-year Sales Growth 14% - 16% 2. Operating Profit Margin 16.0%-17.0% 3. Earnings per Share growth of 15% - 17% * 4. Dividend payout ratio minimum 40%
* Excluding the impact from foreign exchange translation
Capex Rp 1 – 1.2 Tn for production capacity and distribution network expansion.
38 SECTION 6 Appendix Financial Information YTD December 31, 2013 (Audited) Audited Financial Statement YTD 12 2013 Consolidated Balance Sheets
31 December 2012 31 December 2013 (Audited) (Audited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,859,662,706,073 1,426,460,966,674 -23.3% Trade Receivables 1,805,234,960,760 2,145,218,904,462 18.8% Other Receivables 132,920,638,689 128,159,883,954 -3.6% Other Current Financial Assets 239,187,296,256 187,742,937,561 -21.5% Inventories 2,115,483,766,910 3,053,494,513,851 44.3% Other Current Assets 289,221,175,393 556,242,245,041 92.3% TOTAL CURRENT ASSETS 6,441,710,544,081 7,497,319,451,543 16.4% TOTAL NON-CURRENT ASSETS 2,976,246,636,877 3,817,741,823,483 28.3% TOTAL ASSETS 9,417,957,180,958 11,315,061,275,026 20.1%
40 Audited Financial Statement YTD 12 2013 Consolidated Balance Sheets
31 December 2012 31 December 2013 (Audited) (Audited) % Change LIABILITIES CURRENT LIABILITIES Bank Loans 204,252,407,762 583,823,955,413 185.8% Trade Payables 808,864,741,533 1,151,654,579,697 42.4% Other Payables 291,008,450,355 379,156,683,712 30.3% Accrued Expenses 361,916,843,180 314,518,392,842 -13.1% Taxes Payable 195,836,997,773 186,953,727,366 -4.5% Short-term Liabilities for Employees' Benefit 29,444,628,851 24,391,340,352 -17.2% Current Maturities of Obligations Under Finance Leases 293,784,270 91,344,366 -68.9% TOTAL CURRENT LIABILITIES 1,891,617,853,724 2,640,590,023,748 39.6% TOTAL NON-CURRENT LIABILITIES 154,695,712,337 174,513,285,703 12.8% TOTAL LIABILITIES 2,046,313,566,061 2,815,103,309,451 37.6% EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY Capital Stock -Issued and Fully Paid - 50,780,072,110 Shares 507,800,721,100 468,751,221,100 -7.7% Additional Paid-in Capital, net (32,317,540,678) (34,118,673,814) 5.6% Retained Earnings 7,250,740,056,401 7,633,188,370,750 5.3% Treasury Stocks - 3,904,950,000 Shares (687,283,369,009) - -100.0% Others 15,114,368,686 40,420,603,467 167.4% Sub-total 7,054,054,236,500 8,108,241,521,503 14.9% Non-controlling Interest 317,589,378,397 391,716,444,072 23.3% EQUITY, NET 7,371,643,614,897 8,499,957,965,575 15.3% TOTAL LIABILITIES AND EQUITY 9,417,957,180,958 11,315,061,275,026 20.1%
41 Audited Financial Statement YTD 12 2013 Consolidated Statements of Income
31 December 2012 31 December 2013 (Audited) (Audited) % Change NET SALES 13,636,405,178,957 16,002,131,057,048 17.3% COST OF GOODS SOLD 7,102,971,372,126 8,323,017,600,990 17.2% % to NS 52.1% 52.0% -0.1% GROSS PROFIT 6,533,433,806,831 7,679,113,456,058 17.5% % to NS 47.9% 48.0% 0.1% Selling Expense (3,573,502,403,790) (4,230,293,635,075) 18.4% % to NS -26.2% -26.4% -0.2% General and Administrative Expense (651,416,535,513) (764,512,533,499) 17.4% % to NS -4.8% -4.8% 0.0% Research and Development Expense (90,754,826,941) (135,388,356,694) 49.2% % to NS -0.7% -0.8% -0.2% Interest Expense and Financial Charges (17,513,612,249) (28,642,082,811) 63.5% Gain (Loss) on Foreign Exchange, Net 19,832,825,669 529,460,305 -97.3% Interest Income 74,469,005,621 50,425,100,828 -32.3% Gain on Sale of Property and Equipment 18,818,935,524 21,202,496,859 12.7% Miscellaneous, Net (5,350,102,660) (19,911,188,740) 272.2% INCOME BEFORE INCOME TAX BENEFIT (EXPENSE) 2,308,017,092,492 2,572,522,717,231 11.5% % to NS 16.9% 16.1% -0.8% INCOME TAX EXPENSE, NET (532,918,244,560) (602,070,267,545) 13.0% % to NS -3.9% -3.8% 0.1%
42 Audited Financial Statement YTD 12 2013 Consolidated Statements of Income
31 December 2012 31 December 2013 (Audited) (Audited) % Change INCOME FOR THE PERIOD 1,775,098,847,932 1,970,452,449,686 11.0% % to NS 13.0% 12.3% -0.7% OTHER COMPREHENSIVE INCOME (EXPENSES) (3,064,097,361) 33,791,245,111 -1202.8% COMPREHENSIVE INCOME FOR THE PERIOD 1,772,034,750,571 2,004,243,694,797 13.1% % to NS 13.0% 12.5% -0.5% Income for the Period Attributable to: Parent Company 1,733,928,105,603 1,919,508,370,312 10.7% Non-controlling Interest 41,170,742,329 50,944,079,374 23.7% Total 1,775,098,847,932 1,970,452,449,686 11.0% % to NS 13.0% 12.3% -0.7% Comprehensive Income for the Period Attributable to: Parent Company 1,730,864,008,242 1,952,588,559,890 12.8% Non-controlling Interest 41,170,742,329 51,655,134,907 25.5% Total 1,772,034,750,571 2,004,243,694,797 13.1% % to NS 13.0% 12.5% -0.5% Basic Earnings Per Share Attributable to Equity Holder of the Parent* 37 41 10.7%
43 Audited Financial Statement YTD 12 2013 Consolidated Statement of Cash Flows
31 December 2012 31 December 2013 (Audited) (Audited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 14,721,985,301,073 17,253,943,196,843 17.2% Cash paid to suppliers and employees (9,499,733,203,632) (10,832,003,854,960) 14.0% Cash provided by operations 5,222,252,097,441 6,421,939,341,883 23.0% Receipts of claims for income tax refund 20,838,271,516 5,308,496,966 -74.5% Payments of income taxes (526,395,928,795) (650,904,671,554) 23.7% Payments of other operating expenses, net (3,340,350,450,137) (4,849,179,513,083) 45.2% Net Cash Provided by Operating Activities 1,376,343,990,025 927,163,654,212 -32.6%
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of other current financial assets 145,968,396,881 219,262,900,420 50.2% Interest income received 74,469,005,621 51,517,056,069 -30.8% Proceeds from sales of property, plant, and equipment 24,409,656,784 28,053,364,909 14.9% Proceeds from cash dividends 4,817,501,371 2,117,000,000 -56.1% Acquisitions of property, plant, and equipemnt (783,478,091,342) (993,929,398,633) 26.9% Placements in other current financial assets (270,905,474,717) (153,574,337,500) -43.3% Acquisitions of Subsidiary (98,589,277,885) - -100.0% Acquisitions from other investing activities, net (11,223,435,610) (35,592,673,302) 217.1% Net Cash Used in Investing Activities (914,531,718,897) (882,146,088,037) -3.5%
44 Audited Financial Statement YTD 12 2013 Consolidated Statement of Cash Flows
31 December 2012 31 December 2013 (Audited) (Audited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans 261,182,689,814 1,627,390,328,387 523.1% Receipts of capital contributions from Subsidiaries' non-controlling interest 1,208,750,000 26,504,394,870 Payments of bank loans (229,758,630,216) (1,317,770,912,697) 473.5% Payments of interest expense and financial charges (17,206,912,832) (25,881,719,573) 50.4% Payments of cash dividends Company (890,627,320,090) (890,627,320,090) 0.0% Subsidiaries (25,415,768,588) (10,066,131,762) -60.4% Payments from other financing activities, net (20,651,426,223) (22,869,276,025) 10.7% Net Cash Provided by (Used in) Financing Activities (921,268,618,135) (613,320,636,890) -33.4%
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (459,456,347,007) (568,303,070,715) 23.7% Net Effect of Changes in Foreign Exchange Rates of Foreign Currency Denominated Cash and Cash Equivalents (1,229,379,680) 95,474,047,958 -7866.0% CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,289,700,859,692 1,829,015,133,005 -20.1% CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,829,015,133,005 1,356,186,110,248 -25.9%
45 THANK YOU
For further information: PT Kalbe Farma Tbk. Jalan Let.Jend. Suprapto Kav. 4 Jakarta 10510, Indonesia Tel. : 62-21-42873888 Fax. : 62-21-42873678 Email : [email protected] [email protected] [email protected] Website : www.kalbe.co.id
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