Not all collagen is the same, it’s time to choose the right one

Company Update Unaudited YTD September 2014

October 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 30 September 2014 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 2014 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 13

Financial Overview 31

Strategies and Outlook 2014 37

Appendix 42

3 Not all collagen is the same, SECTION 1 it’s time to choose the right one Corporate Overview Corporate Overview

Largest Publicly-Listed Pharmaceuticals Company in

• Established in 1966 and headquartered in • A public company since 1991 and listed in the Stock Exchange • The largest publicly-listed pharmaceuticals company in Southeast Asia • Sales breakdown by segment and by geographical location for YTD September 2014 is as follows:

Prescription Distribution & Export Pharmaceuticals 5% Logistics 25% 32%

Consumer Health Domestic 17% 95% Nutritionals 26%

Total Sales = Rp 12,758 Bn Total Sales = Rp 12,758 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: 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 Not all collagen is the same, SECTION 2 it’s time to choose the right one Market Overview Indonesia’s Health Spending Trends

Healthcare Expenditure/GDP 2010 • Total expenditure on health averaged 2.1% of 5.00% 4.8% 1.2 GDP over the 11 year period 1999-2009. 4.50% 4.1% 3.8% 1 4.00% 3.5% 3.50% 3.3% 0.8 3.00% • BPJS Health program has commenced on2.50% 2.1% 0.6 2.00% 0.4 January 2014 and with a target to cover 40%1.50%- 1.00% 0.2 50% of the population in 2014 and the entire0.50% 0.00% 0 Indonesian population by 2019. 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 312 343 281 251 221 194 168 250 mn people 122 139 100% coverage 120 mn people 50% coverage

2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F Up to date, more than 128 mn people have been covered, including 76.4 mn people covered by Source : Business Monitor International: Indonesia Pharmaceuticals & Healthcare Report Q3 2012 Jamkesmas program before the launch of BPJS Source : Roadmap to National Health Insurance 2012 - 2019

8 National Healthcare Insurance (Jaminan Kesehatan Nasional – JKN) Towards a universal coverage in 2019

• Mandatory for all Indonesians. • All participants to pay monthly premium to BPJS Kesehatan as administrator.

Premium Payment

Categories Monthly Premium

Poor & near Rp 19,225 / person /month Subsidized poor residents

5% of the salaries and compensations: Formal sector • 4% paid by the employers workers • 1% paid by the employees (as of July 1, 2015) Non- subsidized Informal Rp 25,500 (class III) / person /month sector Rp 42,500 (class II) / person /month workers Rp 59,500 (class I) / person /month BPJS Kesehatan Card

9 National Healthcare Insurance (Jaminan Kesehatan Nasional – JKN)

Health financing on limited resources

Healthcare Tariff Reimbursement Scheme

Capitation system / tariff Out Primary healthcare per capita Rp 3,000 – Rp Patient facilities 10,000 / person / month

Non Capitation Primary healthcare Rp 25,000 – Rp 750,000 facilities In Patient Diagnosis-related group : Secondary & fixed payment for a bundling tertiary healthcare of treatments & medicines facilities based on diagnosis

Drug Procurement

• Improving availability, cost efficiency and transparency through centralized electronic procurement • Electronic tender using price caps as ceiling price

10 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

11 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 • Replaces Presidential Decree No. 12 Year 2013. • 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 Circular No. KF/Menkes/167/III/2014 issued on 26 March 2014 • National Health Insurance is conducted through electronic purchasing method based on an e-catalogue. • Manual procurement applies for drugs outside the e-catalogue.

Price Caps on Key Generic Drugs Ministry of Health Decree No. 436 /Menkes/SK/XI/2013 issued on 11 November 2013 • Replaces the previous Ministry of Health Decree No. 092 /Menkes/SK/II/2012 with some additional units. • 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 issued on 3 November 2008 • Prohibits foreign pharmaceutical companies from registering drugs in Indonesia unless they have local production facilities. Foreign Ownership Presidential Decree No. 39 Year 2014 regarding List of Business Lines with its Investment Requirements • Maximum foreign ownership in a pharmaceuticals company is 85%, higher than the previous provision of 75%.

12 Not all collagen is the same, SECTION 3 it’s time to choose the right one Business Overview Prescription Pharmaceuticals Division

Consistent Top Line Growth

+11.5% • No. 1 player in Indonesian Prescription Pharma Market. 3,201 • The largest medical representatives team in Indonesia with 2,870 more than 2,350 personnel. • Comprehensive product offerings for all income groups. • Increasing competition following national insurance 30 Sep 2013 30 Sep 2014 implementation. (Unaudited) (Unaudited) Licensed Products Market Share (ITMA) 27.0% FY 2013 KALBE a b c d GROUP 9% 6% 4% e Branded 4% Unbranded 15% 4% f Generics Generics 3% 60.2% 12.7% OTHERS 55% Total Sales Rp 3,201 Bn

• Gross Profit Margin (GPM) declined from 61.1% in YTD 09 2013 to 60.2% in YTD 09 2014, mostly due to Rupiah Total Market = Rp 31.6Tn depreciation and product mix. Source: IMS Health Prescription Pharmaceuticals YTD 12 2013 Note: Restatement of 2012 IMS market data

14 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 • Commercialization started in Q3 2014

Expanding licensed products from • Starting building competence in stem cells and genomics multinational companies to gain technology Stem Cells and transfer Cancer Institute

15 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

16 Consumer Health Division

Strong Net Sales Performance

+15.5% • No. 1 Player in OTC market and No. 2 in 2,175 Energy Drink category. 1,883 • GPM increased from 53.5% in YTD 09 2013 to 54.1% in YTD 09 2014.

30 Sep 2013 30 Sep 2014 (Unaudited) (Unaudited)

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

17 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 Promag Fruity 4s Antacid tablet with fruit flavors 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 Promag Gazero Herbal remedy to relieve flatulence Woods Herbal Herbal cough syrup Bintang Toedjoe Masuk Angin Traditional herbal remedy for common cold symptoms

18 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

19 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

20 Nutritionals Division

Strong Net Sales Performance

+22.8% • Strong brand awareness of existing major 3,325 products 2,709 Kalbe’s Products Market Share 2013 Diabetasol 88.0% Milna 65.7% 30 Sep 2013 30 Sep 2014 Prenagen 57.0% (Unaudited) (Unaudited) Morinaga Chil Mil 8.1% 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 55.1% in YTD 09 2014 from c 13% b 60.5% in YTD 09 2013, mostly due to Rupiah 22% Total Market = Rp 17.6 Tn depreciation, higher raw material price and Source : AC Nielsen, based on Value (Rp) product mix.

21 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.

22 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.

23 Distribution & Logistics Division

The Most Extensive Distribution Network

RDC Branches Cities 2 69 51

24 Distribution & Logistics Division

Net Sales Performance on Consolidated Basis +2.0% • Distribution & Logistics Division is run under PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly 3,978 4,057 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 2013 30 Sep 2014 • GPM slightly increased at the level of 29.5% in YTD 09 2014 (Unaudited) (Unaudited) from 29.4% in YTD 09 2013. Distribution Business Details on Stand Alone Basis

(Figures in Rp Bn) Gross profit margin 14,000 12,480 12.0% 11.2% 12,000 10.0% 10,000 Kalbe Group 71% 8.0% 8,000 Income before tax rd 6.0% 3 Party Principals 18% 6,000 margin 4.0% 4,000 3.8% Raw Material Trading 8% 1,398 2.0% 2,000 480 Medical Devices 3% - 0.0% Net Sales Gross Profit Income Before Tax

25 Distribution & Logistics Division

Major Third Party Principals by Category

Prescription Medical Instrument Fine Chemical Pharmaceuticals Consumer & Diagnostic Raw Materials

26 Distribution & Logistics Division

Growth Drivers

Medical Devices Retail Health Services : 80 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 80 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

27 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 Bandar Lampung Indonesia 4. Expand warehouse capacity • Collaborating with sub-distributors to gain territorial expansion

2014 overview • New branch in Banyuwangi Tangerang • Upgraded branches in Bandar Lampung, Tangerang, Surabaya • Branch upgrades in process in Balikpapan and Jambi

2013 overview • 3 new branches in Lhokseumawe, Kudus, Sukabumi • Upgraded branches in Pontianak, Cirebon, and Mataram Surabaya

28 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 2,350 medical • Approximately 1,000 • Over 1,000 marketing marketing personnel representatives marketing and sales personnel • Total of > 4,000 force employees Infra- • 69 marketing branches structures throughout Indonesia • 45 branches & 24 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

29 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

30 Not all collagen is the same, SECTION 4 it’s time to choose the right one Financial Overview Consolidated Sales

Strong Top Line Growth of Internal Kalbe Products

Net Sales (in Rp Bn)

30 Sep 2013 30 Sep 2014 11.5% (Unaudited) (Unaudited) 12,758 11,440

22.8% 15.5% 11.5% 2.0% 3,978 4,057 2,870 3,201 2,709 3,325 1,883 2,175

Prescription Consumer Health Nutritionals Distribution & Consolidation Pharmaceuticals Logistics

32 Consolidated Operating Performance

Stable Margin

Gross Profit Margin Operating Expenses to Net Sales Ratios

0.9% 48.7% 48.1% 0.8% 0.8% 48.0% 4.8% 4.7% 4.8%

Selling & Marketing 31 Dec 2013 30 Sep 2013 30 Sep 2014 27.1% 26.8% (Audited) (Unaudited) (Unaudited) 26.4% General & Administrative Operating Profit Margin Research & Development 31 Dec 2013 30 Sep 2013 30 Sep 2014 15.9% 16.0% 15.7% (Audited) (Unaudited) (Unaudited)

• Marketing efforts to drive brand awareness 31 Dec 2013 30 Sep 2013 30 Sep 2014 • Research & development activities to support (Audited) (Unaudited) (Unaudited) product development

33 Consolidated Net Earnings

Positive Earnings Growth

Income Before Tax Net Income (in Rp bn) (in Rp bn)

+9.6% +8.8% 1,988 1,814

1,487 1,366

30 Sep 2013 30 Sep 2014 30 Sep 2013 30 Sep 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited)

• Income before tax margin declined from 15.9% in YTD • Net income margin declined from 11.9% in YTD 09 09 2013 to 15.6% in YTD 09 2014, mostly due to lower 2013 to 11.7% in YTD 09 2014, in line with lower gross profit margin. income before tax margin.

34 Working Capital Management

Improving Days of Inventory

Days of Inventory has started No. of days 158 to improve after temporary spike since December 2013 129 131 120 108 123 142 114 132 122 124 Net Operating Cycle has 110 115 107 been decreased by 35 days from 158 days in 2008 to 123 50 43 45 44 48 48 49 days in September 2014 50 57 50 38 35 41 27 End-to-end supply chain 31 Dec 2008 31 Dec 2009 31 Dec 2010 31 Dec 2011 31 Dec 2012 31 Dec 2013 30 Sep 2014 management would be (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) continuously implemented Days of Account Receivables Days of Inventories to overcome any Days of Account Payables Net Operating Cycle fluctuation in inventory

35 Solid Financial Position

Rp 1.08 Trillion of Net Cash Position

Total Debt and Gearing Ratio Cash & Net Cash Balance

600 15.0% 2,291 2,151 Total Debt in Rp Billion 500 1,902 1,877 1,860 7.9% 1,655 1,609 400 Gearing Ratio 7.2% 10.0% 1,562 1,426 6.0% 1,222 300 1,081 2.9% 843 200 2.3% 5.0% 0.5% 100 340 25 141 205 584 528 0 0.0%

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 YTD 09 2014 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 YTD 09 2014 (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) (Audited) (Audited) (Audited) (Audited) (Audited) (Unaudited) Cash and Cash Equivalent in Rp Billion Net Cash in Rp Billion

Dividend Payment Capital Expenditure

* Capital Expenditure in Rp Billion 994 20.0 80% 60% 783 51% 51% 15.0 42% 60% 611 470 469 10.0 26% 40% 19.0 19.0 17.0 278 14.0 5.0 20% 5.0 0.0 0% 2009 2010 2011 2012 2013 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 YTD 9 2014 Cash Dividend* (Rp/share) Dividend Payout Ratio (%) * For Fiscal Year * Cash dividend are adjusted for stock split impact

36 Not all collagen is the same, SECTION 5 it’s time to choose the right one Strategies & Outlook 2014 KALBE Business Strategies

Improve marketing & Strengthen business Go Global - deeper sales effectiveness portfolio through ASEAN penetration, product innovation & more product M&A offering

Local penetration, Enhance human expand distribution capital development coverage

38 Corporate Actions

Dividend Payment for Fiscal Year 2013

Historical Dividends Kalbe has obtained the approval of the AGMS 20.0 60% 80% on May 14, 2014 to pay dividend of Rp 797 bn, 51% 51% 15.0 42% 60% or equivalent to Rp 17 per share. This reflects a 26% 10.0 17% 19.0 19.0 40% payout ratio of 42% for financial year 2013. 14.0 17.0 5.0 20% 2.5 5.0 Dividend has been paid on July 2, 2014. 0.0 0% 2008 2009 2010 2011 2012 2013 * 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.

39 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 Care

Dr. Boen Extended Distinguished Producer Lecture Series Responsibilities Education Health Environment Infrastructure Free Medical Blood Donor Disaster Reliefs Consultations Activities

40 Outlook 2014

Revised Earnings Guidance 2014

Initial Outlook Revised Outlook 1. Year-on-year Sales Growth 14% - 16% 11% - 13% * 2. Operating Profit Margin 16% - 17% 16% - 17% 3. Earnings per Share Growth 15% - 17% ** 11% - 13% ** 4. Dividend Payout Ratio 42% 42%

* Mostly derived from slower growth of non-Kalbe products **Excluding the impact from foreign exchange translation

Capex Rp 1 – 1.2 Tn for production capacity and distribution network expansion.

41 Not all collagen is the same, SECTION 6 it’s time to choose the right one Appendix Financial Information YTD September 30, 2014 (Unaudited) Unaudited Financial Statement YTD 09 2014 Consolidated Balance Sheets

31 December 2013 30 September 2014 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,426,460,966,674 1,609,375,003,991 12.8% Trade Receivables, Net 2,145,218,904,462 2,301,229,340,901 7.3% Other Receivables 128,159,883,954 115,548,017,140 -9.8% Other Current Financial Assets 187,742,937,561 194,253,726,357 3.5% Inventories, Net 3,053,494,513,851 3,049,478,373,769 -0.1% Prepaid Value Added Tax 40,855,503,867 38,160,133,162 -6.6% Prepaid Expenses 119,253,269,711 115,735,268,684 -3.0% Other Current Assets 396,133,471,463 450,421,906,555 13.7% TOTAL CURRENT ASSETS 7,497,319,451,543 7,874,201,770,559 5.0% TOTAL NON-CURRENT ASSETS 3,817,741,823,483 4,143,560,938,395 8.5% TOTAL ASSETS 11,315,061,275,026 12,017,762,708,954 6.2%

43 Unaudited Financial Statement YTD 09 2014 Consolidated Balance Sheets

31 December 2013 30 September 2014 % Change (Audited) (Unaudited) LIABILITIES CURRENT LIABILITIES Bank Loans 583,823,955,413 509,160,049,247 -12.8% Trade Payables 1,151,654,579,697 1,229,927,237,928 6.8% Other Payables 379,156,683,712 314,586,629,503 -17.0% Accrued Expenses 314,518,392,842 323,301,891,293 2.8% Taxes Payable 186,953,727,366 191,319,360,075 2.3% Short-term Liabilities for Employees' Benefit 24,391,340,352 41,994,497,283 72.2% Current Maturities of Obligations Under Finance Leases 91,344,366 - -100.0% TOTAL CURRENT LIABILITIES 2,640,590,023,748 2,610,289,665,329 -1.1% TOTAL NON-CURRENT LIABILITIES 174,513,285,703 185,364,488,876 6.2% TOTAL LIABILITIES 2,815,103,309,451 2,795,654,154,205 -0.7% EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 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 7,633,188,370,750 8,323,067,650,288 9.0% Others 40,420,603,467 44,612,424,613 10.4% Sub-total 8,108,241,521,503 8,802,312,622,187 8.6% Non-controlling Interest 391,716,444,072 419,795,932,562 7.2% EQUITY, NET 8,499,957,965,575 9,222,108,554,749 8.5% TOTAL LIABILITIES AND EQUITY 11,315,061,275,026 12,017,762,708,954 6.2%

44 Unaudited Financial Statement YTD 09 2014 Consolidated Statement of Income

30 September 2013 30 September 2014 (Unaudited) (Unaudited) % Change NET SALES 11,439,694,257,742 12,758,469,473,880 11.5% COST OF GOODS SOLD 5,868,531,191,229 6,627,470,848,873 12.9% % to NS 51.3% 51.9% 0.6% GROSS PROFIT 5,571,163,066,513 6,130,998,625,007 10.0% % to NS 48.7% 48.1% -0.6% Selling Expense (3,100,768,269,863) (3,416,679,276,549) 10.2% % to NS -27.1% -26.8% 0.3% General and Administrative Expense (539,479,733,683) (614,133,870,380) 13.8% % to NS -4.7% -4.8% -0.1% Research and Development Expense (99,133,807,423) (103,209,360,512) 4.1% % to NS -0.9% -0.8% 0.1% Interest Expense and Financial Charges (18,152,489,660) (40,456,011,045) 122.9% Gain (Loss) on Foreign Exchange, Net (37,520,479,944) 7,278,445,184 119.4% Interest Income 39,196,702,266 41,990,088,627 7.1% Gain on Sale of Property and Equipment 12,189,863,052 22,342,141,158 83.3% Miscellaneous, Net (13,889,070,202) (40,310,736,062) -190.2% INCOME BEFORE INCOME TAX BENEFIT (EXPENSE) 1,813,605,781,056 1,987,820,045,428 9.6% % to NS 15.9% 15.6% -0.3% INCOME TAX EXPENSES, NET (412,753,035,051) (461,788,706,115) 11.9% % to NS -3.6% -3.6% 0.0%

45 Unaudited Financial Statement YTD 09 2014 Consolidated Statement of Income

30 September 2013 30 September 2014 (Unaudited) (Unaudited) % Change INCOME FOR THE PERIOD 1,400,852,746,005 1,526,031,339,313 8.9% % to NS 12.2% 12.0% -0.3% OTHER COMPREHENSIVE INCOME (EXPENSES) 24,440,601,546 1,934,931,420 -92.1% COMPREHENSIVE INCOME FOR THE PERIOD 1,425,293,347,551 1,527,966,270,733 7.2% % to NS 12.5% 12.0% -0.5% Income for the Period Attributable to: Owner of the Parent 1,366,122,455,939 1,486,756,355,408 8.8% Non-controlling Interest 34,730,290,066 39,274,983,905 13.1% Total 1,400,852,746,005 1,526,031,339,313 8.9% % to NS 12.2% 12.0% -0.3% Comprehensive Income for the Period Attributable to: Owner of the Parent 1,390,210,082,703 1,487,524,969,199 7.0% Non-controlling Interest 35,083,264,848 40,441,301,534 15.3% Total 1,425,293,347,551 1,527,966,270,733 7.2% % to NS 12.5% 12.0% -0.5% Basic Earnings Per Share Attributable to Owner of the Parent 29 32 8.8%

46 Unaudited Financial Statement YTD 09 2014 Consolidated Statement of Cash Flows

30 September 2013 30 September 2014 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 12,178,139,579,866 13,811,617,870,985 13.4% Cash Paid to Suppliers and Employees (7,632,511,878,718) (8,082,825,158,242) 5.9% Cash provided by operations 4,545,627,701,148 5,728,792,712,743 26.0% Receipts of Claims for Income Tax Refund 4,866,857,529 21,974,596,310 351.5% Payments of Income Taxes (466,289,889,478) (487,114,072,241) 4.5% Payments of Other Operating Expenses, Net (3,366,976,858,046) (3,610,163,363,492) 7.2% Net Cash Provided by Operating Activities 717,227,811,153 1,653,489,873,320 130.5%

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Other Current Financial Assets 190,934,110,817 103,247,693,333 -45.9% Interest Income Received 38,313,551,258 42,192,422,578 10.1% Proceeds from Sales of Property, Plant, and Equipment 18,120,095,759 25,430,181,489 40.3% Acquisitions of Property, Plant and Equipment (782,408,022,837) (610,515,106,319) -22.0% Placements in Other Current Financial Assets (121,952,000,000) (110,613,567,647) -9.3% Acquisitions from Other Investing Activities, Net (14,063,983,819) 518,908,685 -103.7% Net Cash Used in Investing Activities (671,056,248,822) (549,739,467,881) -18.1%

47 Unaudited Financial Statement YTD 09 2014 Consolidated Statement of Cash Flows

30 September 2013 30 September 2014 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Bank Loans 815,284,153,306 1,844,926,182,883 126.3% Receipts of Capital Contributions from Subsidiaries' Non-controlling Interest 17,672,394,870 4,887,332,280 -72.3% Payments of Bank Loans (711,083,093,619) (2,030,290,843,648) 185.5% Payments of Interest Expense and Financial Charge (17,679,252,523) (41,335,437,964) 133.8% Payments of cash Dividend Company (889,306,918,544) (795,709,464,371) -10.5% Subsidiaries (9,963,816,571) (11,316,521,990) 13.6% Payments of Pension Funds (18,154,657,561) (19,597,768,441) 7.9% Payments of Obligations under Finance Leases (222,403,962) (87,575,061) -60.6% Net Cash Provided by (Used in) Financing Activities (813,453,594,604) (1,048,524,096,312) 28.9%

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (767,282,032,273) 55,226,309,127 107.2% Net Effect of Changes in Foreign Exchange Rates of Foreign Currency Denominated Cash and Cash Equivalents 22,974,192,035 (4,043,934,371) -117.6% CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,829,015,133,005 1,356,186,110,248 -25.9% CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,084,707,292,767 1,407,368,485,004 29.7%

48 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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