New solution for sore throat
Company Update Unaudited YTD September 2015
October 2015 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 30 September 2015 unaudited 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 30 September 2015 unaudited 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
Strategies and Outlook 2015 35
Appendix 40
3 New solution for sore throat
Not all collagen is the same, it’s SECTION 1 time to choose the right one 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 YTD September 2015 is as follows:
Prescription Export Distribution & 5% Logistics Pharmaceuticals 30% 24%
Domestic Consumer 95% Health Nutritionals 18% 28%
Total Sales = Rp 13,128 Bn Total Sales = Rp 13,128 Bn
5 Corporate Strategy
Long Track Record of Sustainable Growth
Inception and Entrepreneurial Enhanced Focus and Consolidation Regionalization Driven Expansion 1996–2005 2006–2015 1966–1995
2012: 2010: ♦ Generic production Disposed of Kageo Igar facility came on 1981: 1995: Jaya stream 1994: Spin-off the Disposed of 50% Established a joint ♦ Acquired PT Hale 2014: distribution Entered 2006: venture company, Asiawide 1991: of food 2005: International Completion of 1966: business to PT energy drink business (PT Scale through Kalbe Philippines Inc. Kalbe Farma Consolidation ♦ Established a joint Kalbe’s Company Enseval due to business Bukit Manikam mergers and Inaugurated Panca Sradha IPO of Kalbe venture company PT oncology founded government EPMT IPO Sakti) to acquisitions Kalbe as our Corporate Group Kalbe Milko factory regulation Arnotts Values Indonesia 1966 1977 1981 1985 1989 1991 1993 1994 1995 1997 2005 2006 2007 2010 2011 2012 2013 2014 1977: 1997: 2007: 2011: 2013: 1985: 1989: 1993: Strengthen Disposed of Kalbe’s Launch of new corporate EPMT Rights Issue Cancellation pharma Expansion Igar Jaya Strengthening remaining 50% logo as part of to finance of the business by to consumer and nutritionals ownership in PT Bukit transformation process expansion Company’s health business by establishing Dankos Manikam Sakti to Products entered every Increased dividend Treasury Dankos Lab through IPOs acquiring Arnotts ASEAN countries (except payout ratio to 50% Stocks 0f 7.7% acquisition Sanghiang Perkasa Disposed glass Laos) of Bintang and consolidating packaging division to nutritional Opening of the Stem Cell Toedjoe Schott and Cancer Institute and in business to Acquired Woods Implementation of end-to- pharma Sanghiang Perkasa Peppermint brand end supply chain through Acquired 80% of Saka management 1600 Hexpharm 20,000 Farma Integrated information Jaya 1400 technology systems acquisition
1200 15,000 1000 (IDRbn) 800 10,000
(USD mm)(USD 600 400 5,000 200 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Sales USD Sales IDR 6 New solution for sore throat
Not all collagen is the same, it’s SECTION 2 time to choose the right one Market Overview Indonesia’s Health Spending Trends
Healthcare Expenditure/GDP 2013 (%) • Low healthcare expenditure to GDP ratio.
• National Health Insurance (Jaminan United States 18,0% Kesehatan Nasional or JKN) program has United Kingdom 9,6% commenced in January 2014, and covered Singapore 5,8% China 5,5% more than 50% of the population in 2014. JKN Malaysia 4,3% targets to cover the entire Indonesian Thailand 4,2% population by 2019. India 4,1% Indonesia 3,3% Total Healthcare Expenditure Source : Centers for Medicare & Medicaid Services, Office of the Actuary; United Kingdom : Healthcare Report, Economist Intelligence Unit; Kementerian Kesehatan Indonesia, China; Singapore Government Budget; Economic Survey, India; Frost & Sullivan (USD Bn) CAGR 12.5% JKN Coverage Roadmap 30.4 26.4 23.4 21.1 19.0 18,2 15,9 Private Expenditure 2019 14,5 2015 13,1 12,1 Public Expenditure 2014 Target 250 mn Target 170 people mn people 133 mn 100% coverage 10,5 12,2 people * 6,8 7,9 8,9
Source : Roadmap to National Health Insurance 2012 - 2019 2009 2010 2011 2012 2013 * including 76.4 mn people covered by Jamkesmas program Source : Global Health Expenditure Database, WHO before the launch of JKN.
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 13% a 6% OTC b 5% 41% c 4% d 4% Others 68% Branded & Ethicals Licensed Pharma Industry (Prescription) 84% (in trillion Rupiah) 59% 55,5 58,2 Unbranded 49,4 CAGR 16% 37,0 41,7 12.0% Total Market FY 2014 Rp 58.2Tn Source: IMS Health ITMA YTD 12 2014 Note: Restatement of 2012 IMS market data FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
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 residents
Presidential Decree No. 111 Year 2013 regarding Health Insurance • All Indonesians are required to be members 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. Ministry of Health Decree No. 63 Year 2014 regarding Drug Procurement based on e-Catalogue • Procurement for National Health Care Insurance is conducted through electroning purchasing method based on e- Catalogue. BPJS Kesehatan Director of Operation’s Circular No. 32 Year 2015 regarding Coordination of Benefit • Regulating coordination of benefit (COB) mechanism for National Healthcare Insurance members with participating private health insurance.
Price Caps on Key Generic Drugs
Ministry of Health Decree No. 436 /Menkes/SK/XI/2013 • Determines the selling price and retail price caps on 535 generics drugs for pharmacies, hospitals and other healthcare institutions throughout Indonesia.
Local Production Facilities Requirements
Ministry of Health Regulation No. 1010/Menkes/PER/XI/2008 • Prohibits foreign pharmaceutical companies from registering drugs in Indonesia unless they have local production facilities.
10 New solution for sore throat
SECTION 3 Business Overview Prescription Pharmaceuticals Division
Temporary Deceleration
+0.2% • No. 1 player in Indonesian Prescription Pharma Market. • The largest medical representatives team in Indonesia with 3.201 3.207 more than 2,500 personnel. • Comprehensive product offerings for all income groups. • Increasing price competition following national healthcare 30 Sep 2014 30 Sep 2015 insurance implementation. (Unaudited) (Unaudited) • One-time impact of product recall in 2015. SALES in Rp Bn
Market Share (ITMA) Licensed Products FY 2014 28.3% KALBE a b c d GROUP 8% 6% 4% e 4% 15% 4% f 3% Branded Generics Unbranded OTHERS 57.1% Generics 56% 14.6% Total Sales Rp 3,207 Bn
Total Market = Rp 34.6Tn • Gross Profit Margin (GPM) remained relatively stable at Source: IMS Health Prescription Pharmaceuticals 60.2% in YTD 09 2014 and at 59.8% in YTD 09 2015. YTD 12 2014
12 Prescription Pharmaceuticals Division
Growth Drivers Penetrating further in the unbranded Strengthening presence in generics market specialty products • Completion of oncology factory and • Selection of focused categories to achieve scale commercialization in Q3 2014 • Utilization of dedicated unbranded generic plant • Constructing biosimilar factory
Oncology Factory Biosimilar Factory Expanding licensed products from multinational companies to gain technology transfer • Starting building competence in stem cells and genomics Stem Cells and 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 2014 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 Extra Joss 27.0%
Source : AC Nielsen YTD 12 2012 and Company’s estimation 2014, in volume
14 Consumer Health Division
Positive Top Line Growth
+6.9%
2.325 • No. 1 Player in OTC market and No. 2 in 2.175 Energy Drink category.
• GPM increased from 54.1% in YTD 09 2014 to 55.2% in YTD 09 2015, mostly due to price 30 Sep 2014 30 Sep 2015 increase and product mix. (Unaudited) (Unaudited) SALES in Rp Bn
OTC Energy Drink YTD 12 2014 YTD 12 2014 (Unit) b c d b a e c 7% 7% 6% f a 13% 8% 4% g 7% KALBE 3% 37% 3% d GROUP 3% 9% Others others 52% 13% Extra Joss 27% Total Market = Rp 23.6 Tn Source : IMS Health OTC YTD 12 2014 Source : AC Nielsen YTD 12 2012 and Company’s estimation 2014, 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 H2 – Health and Happiness Supplement Products • H2 Superba Krill Oil to help reduce cholesterol • H2 Skin Care Supplement Range Nitros Concentrated energy drink in liquid form with convenient tube packaging Extra Joss Blend New variant of energy drink with added powdered milk in sachet packaging
Herbal Products
Bintang Toedjoe – Panas Dalam Effervescent cooling drink Komix Lo Han Kuo Traditional Chinese herbal drink to relieve sore throat Promag Gazero Herbal remedy to relieve flatulence Woods Herbal Herbal cough syrup Bintang Toedjoe Masuk Angin Traditional herbal remedy for common cold symptoms
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)
2.2% 10.4%
19.820
187.387 183.317 17.947
FY 2013 FY 2014 FY 2013 FY 2014
Source : AC Nielsen, YTD 12 2014
18 Nutritionals Division
Consistent Net Sales Growth
+10.2% • Strong brand awareness of existing major products 3.665 3.325 Kalbe’s Products Market Share 2014 Diabetasol 88.0% Milna 68.8% 30 Sep 2014 30 Sep 2015 Prenagen 55.4% (Unaudited) (Unaudited) Morinaga Chil Mil 9.2% SALES in Rp Bn Morinaga BMT 10.9% Powdered Milk Market Share YTD 12 2014 Entrasol 9.7% g h i Others f 3% 2% 2% 2% Morinaga Chil Kid 6.8% e 2% a d 5% 29% Zee 6.5% 7% Morinaga Chil School 2.7% Kalbe Nutritionals Source : AC Nielsen, YTD 12 2014 and Company’s estimation 2014, in value 11% b • GPM declined to 54.7% in YTD 09 2015 from c 24% 13% 55.1% in YTD 09 2014, mostly due to Rupiah Total Market = Rp 19.8 Tn depreciation. Source : AC Nielsen 2014, based on Value (Rp)
19 Nutritionals Division
Launching of New Products
Entrasol Quick Start Cereal drink made of milk and oats with high calcium and high fiber
Diva Health drink with collagen and antioxidant for skin care
Nutrive Benecol Smoothie with special ingredient to lower cholesterol
Zee Powdered milk for kids and tweens targeted to the middle segment, now also available in sachet packaging
Fitbar A healthy snack bar with low calories, zero cholesterol and zero trans fat.
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 71 52
22 Distribution & Logistics Division
Net Sales on Consolidated Basis -3.1% • Distribution & Logistics Division is run under PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly 4.057 3.931 listed company (91.75% owned). • Net sales represents the 3rd party product sales and distribution margin of internal product sales for consolidated accounting purposes. 30 Sep 2014 30 Sep 2015 (Unaudited) (Unaudited) • GPM slightly increased to 30.6% in YTD 09 2015 from 29.5% in YTD 09 2014. SALES in Rp Bn
Distribution Business Details on Stand Alone Basis
(Figures in Rp Bn) 14.000 12.670 20% 18% 12.000 Gross profit margin 16% 10.000 14% Kalbe Group 74% 8.000 12,0% 12% 10% 3rd Party Principals 14% 6.000 Income before tax 8% margin Raw Material Trading 8% 4.000 6% 1.523 4,1% 4% 2.000 Medical Devices 4% 524 2% - 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 : 83 Mitrasana Clinics Medical Devices is an area of potential • Developing 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 83 Net Sales (in Rp Bn) Mitrasana clinics in Jakarta and its Greater Area. 1.142 969 915 870 673 742
2009 2010 2011 2012 2013 2014*
* Discontinued tender business in 2014
25 Distribution & Logistics Division
Strengthening Distribution Network
• Exploring potential new 3rd party principals selectively • Continuing 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 Samarinda • Collaborating with sub-distributors to gain territorial expansion
2015 updates:
• New branch in Sibolga, North Sumatra • Upgraded RDC Jakarta and upgraded Samarinda branch
26 Marketing and Sales Infrastructure
The largest sales force for Pharma and Consumer Health in Indonesia
Prescription Distribution & Consumer Health Nutritionals Pharmaceuticals Logistics • > 2,000 sales & • Over 2,500 medical • Approximately 1,100 • Over 1,100 marketing marketing personnel representatives marketing and sales personnel • Total of > 5,000 force employees Infra- • 71 marketing branches structures throughout Indonesia • 46 branches & 25 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 9 GMP facilities complying with international standards
Products Building Area Facility Production Lines Licenses Certification Manufactured (m2) 14 lines (tablet, capsule, cream, liquid oral, ISO 9001, ISO 14001, Kalbe Farma 435 91,819 Astellas injection) OHSAS18001 ISO 9001, ISO 14001, Bintang Toedjoe 49 20,849 3 lines; effervescent, powder & liquid -- OHSAS18001, HACCP, SMK3 4 factories; Non-betalactam, Penicillin & Daiichi, ISO 9001, ISO 14001, Dankos Farma 189 23,101 Cephalosporin, Oncology lines Samyang OHSAS18001 ISO 9001, ISO 14001, HACCP, Sanghiang Perkasa 210 50,000 8 line dry - powdered milk Morinaga OHSAS18001 ISO 9001, ISO 14001, Hexpharm Jaya 85 16,533 Solid tablet (Non-betalactam products) -- OHSAS18001 Large volume parenteral (LVP) in glass bottle ISO 9001, ISO 14001, Finusolprima Farma 26 10,700 line, LVP in flexy bag line, Haemodialysis Baxter OHSAS18001 Solution Line ISO 9001, ISO 22000, OHSAS Kalbe Morinaga 19 33,733 1 wet - drier line, 1 can line, 2 sachet lines Morinaga 18001
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 New solution for sore throat
SECTION 4 Financial Overview Consolidated Sales
Positive Top Line Growth of Internal Kalbe Products
Net Sales (in Rp Bn)
2.9%
30 Sep 2014 30 Sep 2015 12.758 13.128 (Unaudited) (Unaudited)
10.2% -3.1% 0.2% 6.9% 4.057 3.931 3.201 3.207 3.325 3.665 2.175 2.325
Prescription Consumer Health Nutritionals Distribution & Logistics Consolidation Pharmaceuticals
30 Consolidated Operating Performance
Slight Pressure on Operating Margin
Gross Profit Operating Expenses to Net Sales Ratios (in Rp bn)
+ 4.6% 32.4% 33.8% 48,1% 48,8% 0,9% 6,411 0,8% 6,131 4,8% 5,1% Selling & Marketing
30 Sep 2014 30 Sep 2015 26,8% 27,8% General & (Unaudited) (Unaudited) Administrative Operating Profit Research & (in Rp bn) Development 1.0% 30 Sep 2014 30 Sep 2015 15,7% - 15,1% (Unaudited) (Unaudited)
1,997 1,976 • Marketing efforts to drive brand awareness • Higher selling & marketing expense to net sales ratio due to the change in business mix • Research & development activities to support 30 Sep 2014 30 Sep 2015 product development (Unaudited) (Unaudited)
31 Consolidated Net Earnings
Maintaining Stable Earnings
Income Before Tax Net Income (in Rp bn) (in Rp bn)
+1.4% +0.8%
15.6% 15.4% 11.7% 11.4%
1.988 2.016 1.487 1.499
30 Sep 2014 30 Sep 2015 30 Sep 2014 30 Sep 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited)
• Income before tax margin slightly decreased from • Net income margin slightly decreased from 11.7% in 15.6% in YTD 09 2014 to 15.4% in YTD 09 2015, mostly YTD 09 2014 to 11.4% in YTD 09 2015, in line with due to higher operating expenses. lower income before tax margin.
32 Working Capital Management
Gradual Improvement in Net Operating Cycle
158 No. of days Improvement in days of inventory 129 131 120 128 130 142 108 114 132 125 121 122 Net Operating Cycle has 110 115 107 decreased by 28 days from 158 days in 2008 to 130 days 50 55 in September 2015. 48 49 43 45 44 48 45 57 50 46 41 38 35 End-to-end supply chain 27 management will be 2008 2009 2010 2011 2012 2013 2014 30 Sep 2015 continuously implemented (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) to overcome any Days of Account Receivables Days of Inventories fluctuation in inventory Days of Account Payables Net Operating Cycle
33 Solid Financial Position
Rp 1.7 Trillion of Net Cash Position
Total Debt and Gearing Ratio Cash & Net Cash Balance
2.291 2.151 2.125 600 584 15,0% 1.902 1.860 1.895 1.895 1.877 1.713 500 411 1.655 1.598 400 7,2% 296 10,0% 1.311 300 205 141 4,1% 200 25 2,3% 2,9% 3,2% 5,0% 100 0,5% 0 0,0% 2010 2011 2012 2013 2014 30 Sep (Audited) (Audited) (Audited) (Audited) (Audited) 2015 2010 2011 2012 2013 2014 30 Sep 2015 (Unaudited) (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) Total Debt in Rp Billion Gearing Ratio Cash and Cash Equivalent in Rp Billion Net Cash in Rp Billion
Dividend Payment Capital Expenditure
* Capital Expenditure in Rp Billion Cash Dividend* (Rp/share) Dividend Payout Ratio (%) 994 20,0 60% 80% 51% 51% 783 852 15,0 42% 43% 60% 719 10,0 40% 470 469 5,0 14,0 19,0 19,0 17,0 19,0 20% 0,0 0% 2010 2011 2012 2013 2014 (Audited) (Audited) (Audited) (Audited) (Audited) 2010 2011 2012 2013 2014 30 Sep 2015 (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) * For Fiscal Year * Cash dividend are adjusted for stock split impact
34 New solution for sore throat
SECTION 5 Strategies & Outlook 2015 KALBE Business Strategies
Business structure Operational and portfolio excellence through SCM and ERM
Leadership Collaborative development innovation
36 Corporate Actions
Recent Joint Ventures with Blackmores and Genexine
• Agreement with Blackmores International Pte. Ltd to form a joint venture company, PT Kalbe Blackmores Nutrition for vitamin and supplement business with an estimated initial investment of Rp 45 Bn. • Agreement with Genexine Inc. to form a joint venture company, PT Kalbe-Genexine Biologics, to develop biopharmaceutical products with estimated initial investment of Rp 130 Bn.
Dividend Payment for Fiscal Year 2014
Historical Dividends Kalbe has obtained the approval of the AGMS on May 18, 2015 to pay dividend of Rp 891 bn, or equivalent to 20,0 60% 80% 51% 51% Rp 19 per share. This reflects a payout ratio of 43% for 15,0 42% 43% 60% financial year 2014. 10,0 40% Dividend has been paid on June 17, 2015. 5,0 14,0 19,0 19,0 17,0 19,0 20% 0,0 0% 2010 2011 2012 2013 2014 * 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 - 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.
37 Corporate Social Responsibility
Looking after our stakeholders Community Development Environmental Sustainability Consumer Protection
Kalbe Junior Ristek Kalbe Scientist Award Science Award ISO 14001:2004
Certified Environmental Management System Dedicated Customer Care Team Kalbe Cares
Dr. Boen Extended Distinguished Producer Lecture Series Responsibilities Education Health Environment Infrastructure Free Medical Blood Donor Disaster Reliefs Consultations Activities
38 Outlook 2015
Revised Earnings Guidance 2015
1. Year-on-year Sales Growth 2% - 3% 2. Operating Profit Margin 14% - 15% 3. Earnings per Share Growth -3% - -4% 4. Dividend Payout Ratio 40% - 50%
Capex Rp 0.9 – 1.0 Tn for production capacity expansion and distribution network.
39 New solution for sore throat
SECTION 6 Appendix Financial Information YTD September 30, 2015 (Unaudited)
Unaudited Financial Statement YTD September 2015 Consolidated Balance Sheets
31 December 2014 30 September 2015 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,894,609,528,205 2,124,752,980,457 12.1% Trade Receivables, Net 2,346,943,653,265 2,652,116,857,346 13.0% Other Receivables 117,957,876,451 76,881,705,373 -34.8% Other Current Financial Assets 199,389,672,567 153,310,595,143 -23.1% Inventories, Net 3,090,544,151,155 3,018,379,321,519 -2.3% Prepaid Taxes and Expenses 82,698,813,413 134,805,599,139 63.0% Other Current Assets 388,661,675,136 350,404,502,051 -9.8% TOTAL CURRENT ASSETS 8,120,805,370,192 8,510,651,561,028 4.8% TOTAL NON-CURRENT ASSETS 4,304,226,997,537 4,748,692,849,446 10.3% TOTAL ASSETS 12,425,032,367,729 13,259,344,410,474 6.7%
41 Unaudited Financial Statement YTD September 2015 Consolidated Balance Sheets
31 December 2014 30 September 2015 % Change (Audited) (Unaudited) LIABILITIES CURRENT LIABILITIES Short-term Bank Loans 251,909,102,153 299,675,936,977 19.0% Trade Payables 1,133,092,819,659 1,131,222,608,514 -0.2% Other Payables 422,739,416,901 437,842,386,119 3.6% Accrued Expenses 358,667,243,424 318,767,257,463 -11.1% Short-term Liabilities for Employees' Benefit 34,921,207,677 57,581,022,275 64.9% Taxes Payable 184,590,382,675 220,979,452,178 19.7% TOTAL CURRENT LIABILITIES 2,385,920,172,489 2,466,068,663,526 3.4% TOTAL NON-CURRENT LIABILITIES 221,636,516,794 304,716,875,611 37.5% TOTAL LIABILITIES 2,607,556,689,283 2,770,785,539,137 6.3% EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY Capital Stock -Issued and Fully Paid 468,751,221,100 468,751,221,100 0.0% Additional Paid-in Capital, Net (34,118,673,814) (34,118,673,814) 0.0% Retained Earnings 8,900,997,960,322 9,509,592,806,342 6.8% Others 46,392,656,427 87,819,413,338 89.3% Sub-total 9,382,023,164,035 10,032,044,766,966 6.9% Non-controlling Interests 435,452,514,411 456,514,104,371 4.8% EQUITY, NET 9,817,475,678,446 10,488,558,871,337 6.8% TOTAL LIABILITIES AND EQUITY 12,425,032,367,729 13,259,344,410,474 6.7%
42 Unaudited Financial Statement YTD September 2015 Consolidated Statement of Income
30 September 2014 30 September 2015 (Unaudited) (Unaudited) % Change NET SALES 12,758,469,473,880 13,127,806,587,343 2.9% COST OF GOODS SOLD 6,627,470,848,873 6,716,910,243,206 1.3% % to NS 51.9% 51.2% -0.8% GROSS PROFIT 6,130,998,625,007 6,410,896,344,137 4.6% % to NS 48.1% 48.8% 0.8% Selling Expense (3,416,679,276,549) (3,649,133,131,241) 6.8% % to NS -26.8% -27.8% -1.0% General and Administrative Expense (614,133,870,380) (667,221,714,046) 8.6% % to NS -4.8% -5.1% -0.3% Research and Development Expense (103,209,360,512) (118,500,991,387) 14.8% % to NS -0.8% -0.9% -0.1% Interest Expense and Financial Charges (40,456,011,045) (23,617,725,001) -41.6% Interest Income 41,990,088,627 60,378,579,624 43.8% Other Operating Expenses (58,446,539,665) (73,398,167,100) 25.6% Other Operating Income 48,737,375,529 77,282,136,232 58.6% Share in Net Losses of the Associated Entity (980,985,584) (851,013,789) -13.2% INCOME BEFORE INCOME TAX BENEFIT (EXPENSE) 1,987,820,045,428 2,015,834,317,429 1.4% % to NS 15.6% 15.4% -0.2% INCOME TAX EXPENSES, NET (461,788,706,115) (481,604,411,536) 4.3% % to NS -3.6% -3.7% 0.0%
43 Unaudited Financial Statement YTD September 2015 Consolidated Statement of Income
30 September 2014 30 September 2015 (Unaudited) (Unaudited) % Change INCOME FOR THE PERIOD 1,526,031,339,313 1,534,229,905,893 0.5% % to NS 12.0% 11.7% -0.3% OTHER COMPREHENSIVE INCOME (EXPENSES) 1,934,931,420 40,848,681,960 2011.1% COMPREHENSIVE INCOME FOR THE PERIOD 1,527,966,270,733 1,575,078,587,853 3.1% % to NS 12.0% 12.0% 0.0% Income for the Period Attributable to: Owners of the Parent Company 1,486,756,355,408 1,499,222,166,110 0.8% Non-controlling Interests 39,274,983,905 35,007,739,783 -10.9% Total 1,526,031,339,313 1,534,229,905,893 0.5% % to NS 12.0% 11.7% -0.3% Comprehensive Income for the Period Attributable to: Owners of the Parent Company 1,487,524,969,199 1,539,930,946,901 3.5% Non-controlling Interests 40,441,301,534 35,147,640,952 -13.1% Total 1,527,966,270,733 1,575,078,587,853 3.1% % to NS 12.0% 12.0% 0.0% Earnings Per Share Attributable to Owners of the Parent Company 32 32 0.8%
44 Unaudited Financial Statement YTD September 2015 Consolidated Statement of Cash Flows
30 September 2014 30 September 2015 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 13,811,617,870,985 14,062,703,018,305 1.8% Cash Paid to Suppliers and Employees (8,082,825,158,242) (8,249,973,288,619) 2.1% Cash provided by operations 5,728,792,712,743 5,812,729,729,686 1.5% Receipts of Claims for Income Tax Refund 21,974,596,310 11,907,066,869 -45.8% Payments of Income Taxes (487,114,072,241) (478,551,003,419) -1.8% Payments of Other Operating Expenses, Net (3,610,163,363,492) (3,731,186,651,046) 3.4% Net Cash Provided by Operating Activities 1,653,489,873,320 1,614,899,142,090 -2.3%
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Other Current Financial Assets 103,247,693,333 187,029,165,135 81.1% Interest Income Received 42,192,422,578 61,119,625,338 44.9% Proceeds from Sales of Property, Plant, and Equipment 25,430,181,489 11,590,135,965 -54.4% Acquisitions of Property, Plant and Equipment (610,515,106,319) (718,725,455,976) 17.7% Placements in Other Current Financial Assets (110,613,567,647) (131,300,000,000) 18.7% Acquisitions from Other Investing Activities, Net 518,908,685 (20,475,900,568) -4046.0% Net Cash Used in Investing Activities (549,739,467,881) (610,762,430,106) 11.1%
45 Unaudited Financial Statement YTD September 2015 Consolidated Statement of Cash Flows
30 September 2014 30 September 2015 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Bank Loans 1,844,926,182,883 659,131,794,591 -64.3% Receipts of Capital Contributions from Subsidiaries' Non-controlling Interest 4,887,332,280 532,674,824 -89.1% Payments of Bank Loans (2,030,290,843,648) (557,453,817,276) -72.5% Payments of Cash Dividend (807,025,986,361) (905,500,412,589) 12.2% Payments of Interest Expense and Financial Charges (41,335,437,964) (24,257,064,718) -41.3% Payments of Pension Funds (19,597,768,441) (21,802,664,190) 11.3% Payments of Obligations under Finance Leases (87,575,061) - -100.0% Net Cash Provided by (Used in) Financing Activities (1,048,524,096,312) (849,349,489,358) -19.0%
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT 55,226,309,127 154,787,222,626 180.3% Net Effect of Changes in Foreign Exchange Rates of Foreign Currency Denominated Cash and Cash Equivalents (4,043,934,371) 82,408,958,627 2137.8% CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,356,186,110,248 1,819,421,532,492 34.2% CASH AND CASH EQUIVALENTS AT END OF YEAR 1,407,368,485,004 2,056,617,713,745 46.1%
46 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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