Morgan Stanley Asia Pacific Summit 2012 Healthy

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Morgan Stanley Asia Pacific Summit 2012 Healthy Morgan Stanley Asia Pacific Summit 2012 November 2012 Healthy, Tasty Excellence in Execution 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 2012 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 2012 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 Excellence in Execution Investment Highlights Largest Publicly-Listed 46-year old pharmaceutical company with long track record of profitable growth Pharmaceutical Company in The largest publicly-listed pharmaceutical company in Southeast Asia with over US$5 billion Southeast Asia market cap Large target population of 240 mm in Indonesia Substantial Market Attractive demographic profile, expansion of middle class segment with rising disposable income Opportunity The market leader in Indonesian consumer health market with 13% OTC market share, 9% share in nutrition market Market Leading Positions in Number 1 in Indonesian prescription pharma market with 12% market share Indonesia Unrivaled health distribution network which directly and indirectly covers more than 1,000,000 outlets Consumer health portfolio which includes 13 market leading OTC brands in 7 main therapeutic Strong, Diversified, High categories, the market leading brand in pregnant nutrition and clinical foods, and the leading Growth Product Portfolio energy drink in Indonesia Prescription pharma portfolio of more than 380 products and over 1000 SKUs Average senior management tenure of over 20 years at Kalbe, providing strategic continuity and depth of senior management bench Highly Experienced Senior Kalbe’s management team has in aggregate over 200 years of experience or an average industry Management Team experience of over 20 years developing, manufacturing, marketing and selling consumer health and pharmaceutical products, providing it with deep local market insight and expertise Broad based growth across all business segments with consolidated revenues and operating Strong Financial Track Record income have grown at a CAGR of 10% and 26% from 2009 - 2012 Strong balance sheet with net cash balance Consumer health new product development Substantial Growth Development of prescription pharmaceutical portfolio; and Opportunities Continued expansion in Southeast Asia 3 Excellence in Execution SECTION 1 Corporate Overview 4 Excellence in Execution 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 2012 is as follows: Export, 4% Prescription Distribution & Pharmaceuticals Logistics 25% 37% Domestic, 96% Consumer Nutritionals Health 22% 17% Total Sales = Rp 9,694 Bn Total Sales = Rp 9,694 Bn • Over 10,000 employees and a marketing and sales force of 4,000 covering 80% of the Indonesian consumer health and 100% of the Indonesian prescription pharmaceuticals market 5 Excellence in Execution 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 2012: 2010: ♦ Generic production 1981: 1995: Disposed of Kageo Igar Jaya facility comes on stream Spin-off the 1994: Disposed of 50% Established a joint venture ♦ Acquired PT Hale distribution business Entered 2006: company, Asiawide Kalbe International of food business 2005: 1966: to PT Enseval due to 1991: energy drink (PT Bukit Scale through Philippines Inc. ♦ Established a joint Consolidation Company government Kalbe Farma business Manikam Sakti) mergers and Inaugurated Panca Sradha venture company PT of Kalbe Group founded regulation IPO EPMT IPO to Arnotts acquisitions Kalbe as our Corporate Values Kalbe Milko Indonesia 1966 1977 1981 1985 1989 1991 1993 1994 1995 1997 2005 2006 2007 2010 2011 2012 1977: 1997: 2007: 2011: Dankos Lab 1985: 1989: 1993: Disposed of Kalbe’s Launch of new corporate logo EPMT Rights Issue to Acquired Igar Jaya Acquired remaining 50% as part of transformation finance expansion Bintang and Sanghiang Perkasa ownership in PT Bukit process Increased dividend Toedjoe & Dankos and consolidated Manikam Sakti to Products enter every ASEAN payout ratio to 51% Hexpharm IPOs nutritional business Arnotts countries (except Laos) to Sanghiang Disposed glass Perkasa Opening of the Stem Cell and packaging division to Cancer Institute Schott Implementation of end-to-end Acquired Woods supply chain management Peppermint brand Integrate information Acquired 80% of Saka technology systems 1400 Farma 12000 1200 10000 1000 8000 bn) (IDR 800 6000 600 (USD mm)(USD 4000 400 200 2000 0 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Sales USD Sales IDR 6 Excellence in Execution SECTION 2 Business Environment 7 Excellence in Execution Indonesia Pharma Market Growth Source: IMS Health Market Prognosis, October 2011 8 Excellence in Execution Strong Economic Growth GDP per capita (US$) GDP 15,000 GDP 10,000 20,603 20,256 20,525 16,107 14,978 15,338 13,024 12,944 GDP 5,000 10,985 10,277 7,615 6,591 5,546 5,260 4,630 3,374 Poland Brazil Russia Mexico Turkey China Thailand Indonesia 2011 2015 GDP per capita to reach Source: Business Monitor International: Pharmaceutical & Healthcare Report, Q2 2012 USD 5,546 in 2015 9 Excellence in Execution Attractive Demographics Profile Expansion of Middle Class Segment with Rising Disposable Income 10 Excellence in Execution Low but rising healthcare Low pharmaceuticals spending due expenditure to low penetration Healthcare Expenditure/GDP 2010 (%) Pharmaceuticals Spending 2010 5.00% 4.8% 1.2 (US Dollar) 4.50% 4.1% 119.6 3.8% 1 4.00% 3.5% 3.50% 3.3% 0.8 3.00% 2.50% 2.1% 0.6 2.00% 58.6 0.4 50.3 1.50% 1.00% 29.9 0.2 17.4 0.50% 11.4 0.00% 0 Malaysia Thailand Philippines India Singapore Indonesia Singapore Thailand Malaysia Philippines Indonesia India Total Healthcare Expenditure Pharmaceuticals Spending 300.0 1.2 70.0 1.2 (Rp Tn) 247 63 250.0 1 (Rp Tn) 221 60.0 57 196 1 200.0 0.8 173 52 153 150.0 133 0.6 50.0 46 116 0.8 101 42 100.0 86 0.4 40.0 38 34 50.0 0.2 0.6 30 30.0 - 0 24 2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F 0.4 20.0 • Total healthcare spending is projected 10.0 0.2 to rise by 85% to Rp 247 Tn in 2015 - 0 from Rp 133 Tn in 2010 2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F Source: Business Monitor International: Pharmaceutical & Healthcare Report, Q3 2011 (Indonesia, Malaysia, Thailand, Philippines, India, Singapore) 11 Excellence in Execution Universal Coverage Implementation Universal Coverage – a Driving Force for Increasing Health Expenditure • Law on National Social Security System has been passed since 2004, but implementation regulation on Social Security Provider Body (BPJS) has just been passed in October 2011. The Government an the Parliament have passed the Social Security Provider Body (BPJS) Bill on 28 October 2011.
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