Kalbe Farma Tbk
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Company Update Unaudited YTD September 2020 October 2020 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 2020 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 2020 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 Content 04 Corporate Overview 07 Market Overview 13 Business Overview 28 Financial Overview 35 Strategies & Outlook 2020 39 Appendix 3 PT Kalbe Farma Tbk PTFarma Kalbe Section 1 Corporate Overview 4 Corporate Overview Established in 1966 and headquartered in Jakarta A public company since 1991 and listed in the Indonesia Stock Exchange – free float stocks (public) 42.96%* The largest publicly-listed pharmaceuticals company in Southeast Asia – market cap 4.9 billion USD* Sales breakdown by segment and by geographical location for end of September 2020 is as follows: PRESCRIPTION 22% PHARMACEUTICALS 5% CONSUMER 17% HEALTH export NUTRITIONALS 29% 95% DISTRIBUTION & domestic LOGISTICS 32% * As of September 2020 5 Corporate Overview Inception and Entrepreneurial Enhanced Focus Regionalization and Strengthening Portfolio Driven Expansion and Consolidation 2006–2019 1966–1995 1996–2005 2005: 2012: 1981: Forming joint 2010: ♦ Generic production Spin-off the venture companies, Disposed of Kageo Igar Jaya facility came on 2016: 2006: distribution 1994: PT Kalbe Morinaga Established a joint venture stream 2014: Forming a 2018: business to 1989: Entered Indonesia and Scale company, Asiawide Kalbe ♦ Acquired PT Hale Completion joint venture Forming a PT Enseval Igar Jaya energy Orange Kalbe through Philippines Inc. International of Kalbe’s joint venture 1966: company, PT due to and drink Limited mergers Inaugurated Panca Sradha ♦ Established a joint oncology Medika company, PT Company government Dankos business Consolidation of and Kalbe as our Corporate venture company PT factory Innolab Sains founded Komunika regulation IPOs EPMT IPO Kalbe Group acquisitions Values Kalbe Milko Indonesia Teknologi Internasional 1966 1977 1981 1985 1989 1991 1993 1994 1995 1997 2005 2006 2007 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1977: 1985: 1991: 1993: 1995: 1997: 2007: 2011: 2013: 2015: 2017: 2019: Strengthen Expansion to Kalbe Strengthening Disposed Disposed of Launch of new EPMT Rights Cancellation Forming Completed Groundbre pharma consumer Farma nutritionals of 50% of Kalbe’s remaining corporate logo as Issue to finance of the joint construction aking business by health IPO business by food 50% ownership in part of expansion Company’s venture of Biosimilar Kalbe establishing through acquiring business PT Bukit Manikam transformation Increased Treasury companies, Factory Myanmar Dankos Lab acquisition of Sanghiang (PT Bukit Sakti to Arnotts process dividend Stocks of PT Kalbe Factory Bintang Perkasa and Manikam Disposed glass Products entered payout ratio to 7.7% Blackmores Toedjoe and consolidating Sakti) to packaging division every ASEAN 50% Nutrition in pharma nutritional Arnotts to Schott countries (except and PT through business to Acquired Woods Laos) Kalbe- Hexpharm Sanghiang Peppermint brand Opening of the Stem Genexine Jaya Perkasa Acquired 80% of Cell and Cancer Biologics acquisition Saka Farma Institute Implementation of end-to-end supply chain management Integrated information technology systems 6 IMMUNOMODULATOR INNOVATION Tbk PTFarma Kalbe HERBAL FROM INDONESIA Section 2 Combination of Indonesia 4 traditional herbal active for antivirus, anti inflammatory and immunomodulator Market Overview Anti inflammatory Anti inflammatory & Improve 7 Respiratory System Macro Overview Covid -19 Update KALBE UPDATE INDONESIA GOVERNMENT POLICY • Since March 2020, Kalbe launched an initiative called “Together. We Overcome Covid-19” in • Health Protocol about COVID-19 published amount of IDR 25 billion to support all hospitals, on 31 March 2020. clinic, patients, institutions, volunteers, public and • Minister of Health Regulation number 9 year 2020 our government by providing free disposable regarding Pedoman Pembatasan Sosial Berskala Besar (Large protective clothing medical use, surgical mask, Scale Social Restriction) ; which is a derivative of Government rapid test, medicine, vitamins and supplement. Regulation (PP) number 21 year 2020 regarding the Framework for the Acceleration in Handling Corona Virus Disease 2019 • On April 2020, Kalbe through Kalgen-Innolab (Covid-19). Clinical Laboratory provides Covid-19 examination • Regulation of the Minister of Transportation Number PM 25 services using Reverse Transcription Polymerase year 2020 regarding transportation control during the 1441H Chain Reaction (RT-PCR) to support the Idul Fitri homecoming in order to prevent the spread of Corona government. Virus Disease 2019 (COVID-19). • On May 2020, Kalbe signed a MoU with Genexine, • Regulation of the Minister of Finance Number 44 / PMK.03 / 2020 about Tax Incentives for Taxpayers Affected by the Corona Inc., a biological drug company from South Korea to Virus Disease 2019 develop a vaccine (GX-19) for the new corona virus • Various Subsidy from Government to Informal Workers and or Covid-19. Low – Midlle Income Households •On June 2020, Kalbe took part in a clinical trial using herbal ingredient in collaboration with Ministry of Research and Technology, local university, research institution, and health association. • On October 2020, Indian Pharmaceutical major Hetero’s subsidiary ‘PT. Amarox Pharma Global’, in collaboration with Kalbe, becomes the 1st company to launch Covifor (Remdesivir) in Indonesia. Macro Overview Covid -19 Update Clinical Trial on Herbal Products Launching Covifor (Remdesivir) Tested Products : Clinical trial location: in Indonesia RS. Wisma Atlet Kalbe in collaboration with PT. Amarox Pharma Global launched the antiviral drug Covifor (Remdesivir) for Covid-19 treatment in Indonesia. Leveraging Kalbe's capabilities and nationwide marketing and distribution infrastructure, this collaboration will enable faster and wider access of the drug for COVID-19 patients In Collaboration with: throughout Indonesia. COVID-19 DNA Vaccine Candidate DNA Vaccine advantages : Simple and cost Easy and rapid effective development manufacturing Kalbe and Genexine has agreed to conduct 2nd phase of clinical trials in Indonesia, this development of DNA vaccines will be carried Highly stable and out by the consortium of Genexine, Binex, No risk for infection the International Vaccine