Company Update PT Kimia Farma Tbk Q2 – 2020 Healthy Growth Performance Speaker Mr. Pardiman . Finance Director PT Kimia Farma Tbk (KAEF) . Indonesian Citizen . Education & Training: . Master of Management from Diponegoro University . Bachelor of Economics Management from Diponegoro University . BUMN Executive Leadership Program . IFA Strategic Forum . Employment History: . Finance Director PT Bio Farma (Persero) (2018-2019) . Finance Director PT Perum Bulog (2017-2018) . Finance Director PT Petrokimia Gresik (2016-2017) . President Commisioner PT Kawasan Industri Gresik (2016-2017) . Director of Consumer, Micro and Funding PT Bank BRI Syariah (2015-2017) 2 Agenda 1 MARKET OVERVIEW 2 COMPANY OVERVIEW 3 FINANCIAL HIGHLIGHT 4 BUSINESS EXPANSION & INVESTMENT 5 OUR RETAIL BUSINESS-KIMIA FARMA APOTEK 1 MARKET OVERVIEW Indonesia Pharmaceutical Market (Q2/2020) Indonesia pharmaceutical market decrease at -1.0% in MAT Q2/2020 • Ethical Branded still growth 1.2% and 100,000 9 Free Sales growth 0.9% in MAT 90,000 8 8.0 MNC ETHICAL Q2/2020, but for the Unbranded 7 80,000 21,983 DOMESTIC BRANDED, Generic decrease -9.8%. 21,598 21,932 FREE SALES, 21.9% 70,000 6 19,668 25.5% 5 • Unbranded Generic decrease was due 60,000 MNC 4 FREE UNBRANDED to the fact that the budget from 50,000 2.8 40,782 SALES GENERIC, 0.1% Government for Unbranded Generic 41,041 41,972 3 30.7% 40,000 38,825 that should have been spent was 2 diverted to spending on Covid-19 30,000 MNC FREE ETHICAL 1 SALES, 5.2% 69.3% 4,481 related products, resulting in a fairly 20,00 3,836 4,005 4,196 high decline. 0 0 16,087 18,017 18,840 18,946 -1 DOMESTIC 10,00 ETHICAL - -1.0 • This decline can be assumed as a result 0 -2 DOMESTIC BRANDED, MAT 2Q17 MAT 2Q18 MAT 2Q19 MAT 2Q20 of the patient paradigm shift from UNBRANDED 30.0% MNC ETHICAL MNC FREE SALES GENERIC, expensive ethical products to BPJS 17.3% drugs. DOMESTIC ETHICAL DOMESTIC FREE SALES Growth (%) MAT Gr QTR Gr MAT 2Q19 vs MAT 2Q20 CAGR 4 Y In % TOTAL MNC DOMESTIC TOTAL MNC DOMESTIC -1.0% TOTAL -1.0 1.7 -1.9 3.9 5.2 3.4 ETHICAL -1.8 0.6 -2.8 4.0 5.4 3.4 ETHICAL BRANDED 1.2 0.9 1.5 3.1 5.6 1.5 UNBRANDED GENERIC -9.8 -33.2 -9.5 6.9 -12.1 7.2 -15.2% FREE SALES 0.9 6.8 -0.2 3.5 4.1 3.4 Source: IMS IQVIA 2Q/2020 6 Channel Value Share in Indonesia (2Q/2020) Hospital channel has decreased both for MNC and Domestic Company, while in Pharmacy channel, the growth was driven by Domestic Company in MAT Q2 2020. MAT Q2 2020 VALUE SHARE (PHARMACY, HOSPITAL, DRUGSTORE) – HNA PRICE Growth 0.9% --2.5%2.5% -0.5% 0% 0% 7% 8% 9% 9% 90% 30% 30% 80% 24% 22% 26% 24% 70% 5% 5% 60% 26% 27% 50% 32% 35% 40% 65% 65% 30% 20% 43% 43% 33% 32% 10% Pharmacy Hospital Drugstore 0% MAT 2Q19 MAT 2Q20 MAT 2Q19 MAT 2Q20 MAT 2Q19 MAT 2Q20 DOMESTIC ETHICAL DOMESTIC FREE SALES MNC ETHICAL MNC FREE SALES Source: IMS IQVIA 2Q/2020 7 2 COMPANY OVERVIEW Corporate Structure * December 31, 2019 * June 30, 2020 90.025% 9.975% 90.025% 1 Share Seri A 9.975% Government Public PT Bio Farma Dwiwarna Public (Persero) Government 2003 2003 2011 2014 2016 2018 2019 KF : 99.99% KF : 99.99% KF : 51.00% KF : 10.00% KF : 80.67% KF : 60.00% KF : 56.77% KFA: 0.01% YKKKF : 0.01% PTPN VIII: 49.00% Jasindo : 10.00% SWP : 19.33% MBM : 40.00% Public : 43.23% Bank Mandiri : 80.00% (Equity Capital) PEHA: 90.25% Others: 9.75% PEHA : 20.00% Others: 80.00% KFA : 99.99% YKKKF: 0.01% Lucas: 99.91% Others: 0.09% 10 Top 20 Pharmaceutical Industry in Indonesia (2Q/2020) MAT Rank Top 20 Companies Share% Growth% + 1,133 315 2.374,374 1 DEXA MEDICA 5.9 -5.5 (2.8%) (0.8%) 2 SANBE 2,3052.305 5.7 -4.1 3 KALBE FARMA 1,9561.956 4.9 -17.0 4 NOVELL PHARM 1,1901.190 3.0 -4.0 1,448 5 KIMIA FARMA 1,1331.133 2.8 0.1 (3.6%) 4 6 NOVARTIS 980 2.4 -18.9 7 DARYA VARIA 892 2.2 13.8 + + 8 LAPI 854 2.1 -3.1 834 9 SOHO 2.1 52.5 628 1,448 185 BAYER INDONESIA 797 (1.6%) (3.6%) (0.5%) 10 2.0 9.4 11 SANOFI-AVENTIS 773 1.9 -1.8 12 FERRON PAR PHARM 761 1.9 -7.5 13 FAHRENHEIT 753 1.9 -0.9 HOLDING BUMN FARMASI 14 ASTRAZENECA 751 1.9 5.1 2,261 15 INTERBAT 736 1.8 -21.7 (5.7%) 16 DJOJONEGORO C-1000 710 1.8 13.4 17 B.INGELHEIM 633 1.6 -9.5 18 BIOFARMA 628 1.6 -0.3 19 DANKOS 628 1.6 -20.8 20 PFIZER 605 1.5 -4.2 3 Source: Indonesia Total Market Q2 2020 11 Integrated Business Chain Manufacture of National Production Trading & Clinic & Clinical Active Pharmaceutical Distribution Center Retail Pharmacy Customer Facility Distribution Laboratory Ingredients (API) (NDC) *June 30, 2020 Unit Usaha Sumatera, Bali, Nusa Sulawesi, Jawa Kalimantan Total Business Unit Batam Tenggara Maluku, Papua Plant 1 10 1 12 Distributor 11 21 3 5 9 49 Retail Pharmacy 217 667 121 130 173 1,308 Clinical Laboratory 11 42 3 6 8 70 Clinic 65 272 24 56 69 486 12 Company Products & Composition Q2/2020 Q2/2019 Generics Ethical Cosmetics OTC & Herbal 47.29% Cosmetics Ethical 15.29% 23.18% OTC & Herbal 8.50% Export Medical API 1.00% Devices 4.74% 0.00% Q2/2020 Generic Generic API Medical Device 49.56% Cosmetics Ethical 7.77% 20.94% OTC & Herbal Medical 10.99% Devices 7.13% API Export 2.81% 0.81% 13 Covid–19 Health and Safety Audits . COVID-19 will change business even after the pandemic ends and it is unlikely that everything will return to “NORMAL“ and now we are entering the “NEW NORMAL” era. Business will face signifcant calllenges in protecting the “SAFE GUARD Employee and Stakeholders of the Company from the health and safety risk associated with the spread of COVID-19. So that the Company must be able to protect and build trust with Employees and Stakeholders, as a form of transparency and credibility to the Public and Stakeholders. Currently, the Company is preparing to conduct a Health and Safety Audit related to COVID-19. STAKEHOLDERS 18 Certification Good Manufacturing Practice Good Traditional Medicine Good API Plant Watudakon, Medan, Bandung, Manufacturing Practice Manufacturing Practice Jakarta Plant Bandung, Jakarta Plant Kina (SIL) Good Distribution Practice ISO 9001: 2008 ISO 9001: 2015 (GDP) Plant Jakarta, Bandung, Plant Semarang, Plant Kina (SIL) Trading & Distribution Watudakon, Medan Food Safety System Certification (FSSC) Certificate of Suitablity ISO 14001: 2015 22000 Plant Kina (SIL) Plant Watudakon Plant Kina (SIL) Green Environment Halal MUI Certificate Kosher Certificate Plant Bandung, Semarang, Watudakon, Certificate Plant Kina (SIL) Plant Kina (SIL) Plant Jakarta, Bandung, Watudakon, Medan 20 Award Top Brand Award Musium Rekor Indonesia IICD Corporate Governance Award 3 Awards from Top Brand for: (MURI) Enkasari (Sprue Medicine), Salycil (Health TOP 50 Company Corporate The most of the use of mouthwash Powder), Asifit products (the category of Governance Award 2019 with participants simultaneously Breast Milk Booster) HR Excellent Award BUMN Marketers Award Indonesia Best Corporate . The most promising company in tactical Sustainability Initiatives 2020 market 2019 Winner of the HR Excellence Award, The Best Corporate Philantropy for . The most promising company in strategic in Category: HR Transformation, Apung Clinic marketing 2019 with a grade: A from SWA magazine . The most promising company in market 3.0 2019 Indonesia Employers of Itech CSR Choice Award 2019 Top Digital Innovation The best CSR in the . The Winner of Indonesian Employers Of Transformation in Smart pharmaceutical industry. Choice Award 2019 Healthcare Business 2019 Excellent Program for Local . The Winner of Job Seeker by Korn Ferry Community Development 2019 Investor Award Top CSR Award 2020 Digital Popular Brand Award Best BUMN 2019 in the category Top CSR Award Star # 4 from Top Kimia Farma Apotek of Non-Financial, Business, the National Committee Pharmaceutical, Food and on Governance Policy, and the Miscellaneous Industries Nawacita Research Institute 21 Long Term Plan Strategy 2020 – 2024 2024 2023 2022 • Global network and 2021 product expansion . Household name for 2020 . Additional capacity health and beauty and products at KFSP herbal products . Addition of BBO . BBO Import reduction . Becoming one of the Factory Facilities . Retail Transformation . Optimization of the most popular . Commercialization of . Supply Chain Banjaran Factory workplaces in BBO products Optimization . Realization of digital Indonesia . The Banjaran factory . Increase the diversity potential throughout . The leading choice as is fully operational of products and the value chain (joint an integrated . Marketing and portfolios through collaboration with healthcare provider positioning of strategic alliances digital partners) existing brands . Manufacturing . Exporter of high value Excellence & Digital BBO and essential oils Initiative . Stabilization and realization of synergies by acquisitions 22 Strategic Initiatives 2020 INTEGRATED HEALTHCARE ECOSYSTEM With a complete business portfolio (end to end) Kimia Farma is committed to creating integrated health 1 services OPERATIONAL EXCELLENCE Strengthening the entire value chain business in Kimia Farma Group with its main goal is that the process can run more effectively and efficiently 2 COMMERCIAL EXCELLENCE The initiative is in line with the transformation strategy carried out by the Company, the focus for this is: retail transformation, marketing leadership, penetration of modern markets and strategic 3 relationship management PORTFOLIO OPTIMIZATION To strengthen the Company's core business, efforts and strategic approaches are carried out in running the business lines 4 INORGANIC GROWTH One of the Company's strategies is to conduct a strategic alliance, this strategy is expected to be able to add to the Company's value proposition to