Company update q2 2012

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Company update q2 2012

  1. 1. 7/31/20121Company UpdateUnaudited YTD June 2012 ResultsJuly 20122Forward Looking StatementThis 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 June 2012 unaudited results of the Company. Theinformation contained in this presentation has not been independently verified. No representation, warranty or undertaking, express orimplied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or theopinions contained herein. None of the Company or any of their respective affiliates, and their respective commissioners, directors andemployees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising fromany use of this presentation or its contents or otherwise arising in connection with the presentation. Any decision to purchase or subscribe forsecurities 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 absentregistration or an exemption from registration.This presentation and its contents are confidential unless they are or become generally available as public information in accordance withprevailing laws and regulations (other than as a result of a disclosure by you) and must not be distributed, published or reproduced (in wholeor in part) or disclosed by recipients to any other person. This presentation does not constitute a recommendation regarding the securities ofthe Company.This presentation, including the information and opinions contained herein, is provided as of the date of this presentation and is subject tochange without notice, including change as a result of the issuance of 30 June 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 Companys financial position, business strategy, plans and objectives of management for futureoperations (including development plans, objectives relating to the Companys products and services and anticipated product launches) areforward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Companys present andfuture business strategies and the environment in which the Company will operate in the future. These forward-looking statements speakonly as at the date of this presentation. The Company expressly disclaims any obligation or reflection of any change in the Companysexpectations 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 andindustry publications which have not been independently verified, and no representation is made as to the accuracy of such information.
  2. 2. 7/31/20122Table of Contents3SECTION 2 Market Overview 8SECTION 3 Business Overview 12SECTION 4 Financial Overview 38SECTION 5 Corporate Actions & Outlook in 2012 45SECTION 1 Corporate Overview 4SECTION 6 Appendix 494SECTION 1Corporate Overview
  3. 3. 7/31/20123Domestic96%Export 4%•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 June 2012 isas follows:•Over 10,000 employees and a marketing and sales force of 4,000 covering 80% ofthe Indonesian consumer health and 100% of the Indonesian prescriptionpharmaceuticals marketLargest Publicly-Listed Pharmaceuticals Company in Southeast AsiaTotal Sales = Rp 6,244 Bn Total Sales = Rp 6,244 BnCorporate Overview5PrescriptionPharmaceuticals26%ConsumerHealth16%Nutritionals21%Distribution &Logistics37%Corporate Strategy61966 1977 1985 1989 1991 1993 20051981 1994 1995 1997 2007 20101966:Companyfounded1977:Dankos Lab1981:Spin-off thedistribution businessto PT Enseval due togovernmentregulation1985:AcquiredBintangToedjoe &Hexpharm1989:Igar JayaandDankosIPOs1991:Kalbe FarmaIPO1993: AcquiredSanghiang Perkasaand consolidatednutritional businessto SanghiangPerkasa1994: Enteredenergy drinkbusiness EPMT IPO1995:Disposed of 50%of food business(PT BukitManikam Sakti)to Arnotts1997: Disposed of Kalbe’sremaining 50%ownership in PT BukitManikam Sakti toArnotts Disposed glasspackaging division toSchott Acquired WoodsPeppermint brand Acquired 80% of SakaFarma2005:Consolidationof Kalbe Group20062006:Scale throughmergers andacquisitions2007: Launch of new corporate logoas part of transformationprocess Products enter every ASEANcountries (except Laos) Opening of the Stem Cell andCancer Institute Implementation of end-to-endsupply chain management Integrate informationtechnology systems2010: Disposed of Kageo Igar Jaya Established a joint venturecompany, Asiawide KalbePhilippines Inc. Inaugurated Panca SradhaKalbe as our Corporate ValuesInception and EntrepreneurialDriven Expansion1966–1995Enhanced Focus and Consolidation1996–2005Regionalization2006–2015Kalbe has a long track record of sustainable growth620112011: EPMT Rights Issue tofinance expansion Increased dividendpayout ratio to 51%02004006008001000120014001991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011(USDmm)020004000600080001000012000(IDRbn)Sales USD Sales IDR20122012:♦ Generic productionfacility comes on stream♦ Acquired PT HaleInternational♦ Established a jointventure company PTKalbe Milko Indonesia
  4. 4. 7/31/20124• Total expenditure on health averaged 2.1%of GDP over the 11 year period 1999-2009.Indonesia’s Health Spending Trends7Share of Total Health Expenditure (%) 1999-2009• In Q4 2009, the new Healthcare Law has beenapproved and provides guideline forGovernment to increase the healthcarespending from 2% up to 5% of GDP.• Law on National Social Security System hasbeen passed since 2004, but implementationregulation on Social Security Provider Body(BPJS) has just been passed in October2011. There will be two BPJS: BPJS Health(Jan 1, 2014) and BPJS Labor (Jul 1, 2015).2030405060701999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009public private out-of-pocket privateSource: The World Bank4.8%4.1%3.8%3.5%3.3%2.1%00.20.40.60.811.20.00%0.50%1.00%1.50%2.00%2.50%3.00%3.50%4.00%4.50%5.00%Malaysia Thailand Philippines India Singapore IndonesiaHealthcare Expenditure/GDP 20108610111613315317319622124700.20.40.60.811.2-50.0100.0150.0200.0250.0300.02007 2008 2009 2010 2011F 2012F 2013F 2014F 2015FTotal Healthcare Expenditure(Rp Tn) Growth of 14.1%Source : Business Monitor International: Pharmaceutical & Healthcare Report, Q3 2011(Indonesia, Malaysia, Thailand, Philippines, India, Singapore)Source : Business Monitor International: Pharmaceutical & Healthcare Report, Q3 2011(Indonesia, Malaysia, Thailand, Philippines, India, Singapore)8SECTION 2Market Overview
  5. 5. 7/31/2012543.6 44.4 44.1 41.9 41.9 43.056.4 55.6 55.9 58.1 58.1 57.02007 2008 2009 2010 2011 F2012OTC EthicalPharmaceuticals Market BreakdownSource: IMS QPMU 4Q 20119Ethical (Rp Bn) 14,889 17,178 20,220 22,785 25,046 27,526Ethical Growth (%) 6.0 15.4 17.7 12.7 9.9 9.9OTC (Rp Bn) 11,561 13,788 15,200 15,713 18,035 20,750OTC Growth (%) 21.1 19.3 10.2 3.4 14.8 15.1Total Market (Rp Bn) 26,450 30,966 35,420 38,498 43,081 48,276Total Growth (%) 12.1 17.1 14.4 8.7 11.9 12.1Market Splits Remain StableTotal Market Trend 2007 – F2012KALBEGROUP8%a7%b6%c5%d4% e4% f3%OTHERS63%10Indonesian Pharmaceuticals MarketHighly Fragmented Industry With More Than 200 Pharmaceutical PlayersTotal Market (ITMA)YTD 12 2011Hospital (IHPA)YTD 12 2011Pharmacy (IPA)YTD 12 2011Total Market = Rp 13.8TnTotal Market = Rp 43.1Tn Total Market = Rp 7.9TnKALBEGROUP13%a5%b5%c5% d5%e4% f3%OTHERS60%KALBEGROUP9%a7%b7%c5%d4%e4% f4%OTHERS60%Source : IMS Health Prescription Pharmaceuticals YTD 12 2011(Ethical + OTC)
  6. 6. 7/31/20126Recent Indonesian PharmaceuticalsRegulatory11Ministry of Health Decree No. 092 /Menkes/SK/II/2012 issued on 23 February 2012• Replaces the previous Ministry of Health Decree No. 632 /Menkes/SK/III/2011.• The Indonesian Ministry of Health has set selling price and retail price caps on 498 generics drugs forpharmacies, hospitals and other healthcare institutions throughout Indonesia.Ministry of Health Regulation No. 1010/MENKES/PER/XI/2008 issued on 3 November 2008• It prohibits foreign pharmaceutical companies from registering drugs in Indonesia unless they have localproduction facilities.Ministry of Health Decree No. HK.02.02/Menkes/068/I/2010 issued on 14 January 2010• Physicians (including doctors, dentists, dental specialists and specialists) who serve in the government healthservice facilities shall prescribe generic drugs for all patients.• Physicians can write prescriptions to be taken at the pharmacy or outside of healthcare facilities if generic drugsare not available in the healthcare facilities.• Doctors at the hospital or healthcare facilities may approve the change of generic drugs with branded generic /prescription drugs if generic drugs are not yet available.Price Caps on Key Generic DrugsMandatory Use of Generic Drugs in Government Healthcare FacilitiesLocal Production Facilities RequirementsMinistry of Health Decree No. 094 /Menkes/SK/II/2012 issued on 23 February 2012• Replaces the previous Ministry of Health Decree No. 633 /Menkes/SK/III/2011 issued on 24 March 2011• The Indonesian Ministry of Health has set different price caps based on different regions for government procurementin government healthcare facilities.11SECTION 3Business Overview
  7. 7. 7/31/2012713Prescription Pharmaceuticals DivisionNet Sales Performance• Net sales grew by 15.2% to Rp 1,598 Bn inYTD 06 2012.• The largest medical representatives teamin Indonesia with more than 2,300personnel.• Unique and innovative marketing strategy.• The Division has launched 8 new productsin the first half of 2012.• Lower gross profit margin in YTD 06 2012is mostly due to product mix.1,3871,59866.1%62.9%30.0%35.0%40.0%45.0%50.0%55.0%60.0%65.0%70.0%5007009001,1001,3001,5001,7001,90030 June 2011(Unaudited)30 June 2012(Unaudited)SALES in Rp BnGross Profit Margin+15.2%BrandedGenerics59%UnbrandedGenerics9%LicensedProducts32%14Prescription Pharmaceuticals DivisionComprehensive Product Range Targeted to All Income GroupsSales Contribution ByProduct CategoriesYTD 06 2012Total Sales = Rp 1,598 BnNumber ofProducts Therapeutic ClassLicensedProducts90• General Anti-Infectives• Hospital Solutions• Oncology• Blood and Blood Forming Organs• Musculo-Skeletal System• Alimentary Tract and MetabolismBrandedGenerics251• General Anti-Infectives• Central Nervous system• Musculo-Skeletal System• Cardiovascular System• Alimentary Tract and MetabolismUnbrandedGenerics42• General Anti-Infectives• Alimentary Tract and Metabolism• Cardiovascular System• Central Nervous systemKey Licensors
  8. 8. 7/31/2012815Prescription Pharmaceuticals DivisionLeading in Indonesia Prescription Pharmaceuticals Market ShareTotal Market (ITMA)YTD 12 2011Pharmacy (IPA)YTD 12 2011Hospital (IHPA)YTD 12 2011Source: IMS Health Prescription Pharmaceuticals YTD 12 2011 (Ethical)Total Market = Rp 25.0Tn Total Market = Rp 6.1Tn Total Market = Rp 11.5TnKALBEGROUP12%a8%b6%c4%d4%e4%f4%OTHERS58%a7%KALBEGROUP7%b7%c7%d5%e5% f3%OTHERS59%KALBEGROUP10%a8%b8%c5%d4%e4%f3%OTHERS58%Prescription Pharmaceuticals Division16New Production Facilities• Dedicated for generic drugs’ tabletproduction line.• Certification from local FDA hasbeen obtained in December 2011.• Inaugurated by Minister of Healthin February 2012.• New production facility inCikarang:• Dedicated for oncology drugs.• Construction started in early April 2011 andexpected to be completed in 18 months.• New production facility in Pulogadung:
  9. 9. 7/31/2012917Consumer Health DivisionStrong Brand Equity with Leading Market PositionTherapeutic Class Kalbe’s Products Market Share by VolumeAntacid Promag, Waisan 77.4%*Anti Diarrhea Neo Entrostop 44.8%**Cough Remedies Komix, Woods, Mextril, Mixadin 39.1%Cold Remedies Mixagrip Reg, Mixagrip FB, Procold 35.9%Multivitamin & Vitamin CCerebrovit, Fatigon, Sakatonik Liver,Xon-Ce42.2%Children Multivitamin Cerebrofort, Sakatonik ABC 21.1%Energy Drink ExtraJoss 23.8%Market share of Kalbe’s top products YTD December 2011Source : AC Nielsen jaguar method, based on volume (unit)Note : * urban data only** based on AC Nielsen August 20109321,00356.1% 55.5%20.0%25.0%30.0%35.0%40.0%45.0%50.0%55.0%60.0%5006007008009001,0001,1001,20030 June 2011(Unaudited)30 June 2012(Unaudited)SALES in Rp BnGross Profit Margin• Consumer Health net sales increasedby 7.7% to Rp 1,003 Bn in YTD 062012, from Rp 932 Bn in YTD 06 2011.• The increase was supported by goodsales growth of OTC.• Gross profit margin decreased from56.1% in YTD 06 2011 to 55.5% inYTD 06 2012 due to change in productmix.Consumer Health Division18Net Sales Performance+7.7%
  10. 10. 7/31/201210Consumer Health Division19Leading Market PositionEnergy DrinkYTD 12 2011 (Unit)OTCYTD 12 2011Total Market (in volume) = 2,371MnSource : AC Nielsen YTD 12 2011Total Market = Rp 18.0TnSource : IMS Health ITMA OTC YTD 12 2011KALBEGROUP13%a8%b8%c8%d5% e4% f4%OTHERS50%a42%Extra Joss24%b13%c7%d6%Others8%Consumer Health Division20Innovative New ProductsHydro CocoAn isotonic drink made of real coconut water.Tipco Fruit JuiceA healthy drink made of fruits and vegetablesOriginal Love Juice & PomegranateFresh bottled fruit juice made of quality fruits available inorange, guava, apple and pomegranate flavors. Pomerama isa pioneer and market leader in pomegranate juice inIndonesia.Komix DTA non-drowsy cough syrup with more convenient packaging.Bintang Toedjoe Turun Panas AnakAnalgesic product for children in convenient sachetpackagingBintang Toedjoe Masuk AnginTraditional herbal remedy for common cold symptoms
  11. 11. 7/31/201211Consumer Health Division21Ready to Drink ExtraJoss in Philippines• Following the success of Ready-to-Drink (RTD)ExtraJoss in returnable glass bottle (RGB), Kalbe haslaunched Extra Joss in PET bottle in March 2011.• Promoting ExtraJoss through direct-to-customerprograms to improve awareness, convenience andavailability.22Complete Range of Nutritional ProductsTeenExpecting Lactating Baby Toddler Kid Tween 25+ 35+ Clinical• Catered to expecting & lactating mothers, babies, toddlers, children, tweens andadults.Nutritionals Division
  12. 12. 7/31/201212Indonesia Thailand Philippines Malaysia Vietnam South Korea2006 2.29 13.55 1.48 7.49 2.71 35.72007 2.39 12.28 1.51 8.15 2.39 34.922008 2.5 12.94 1.31 7.75 2.72 35.832009 2.57 13.68 1.52 7.46 2.87 35.732010 2.58 13.74 1.51 7.51 2.76 30.832011 2.63 14.34 1.55 7.61 2.85 30.612012 2.68 14.92 1.58 7.73 2.98 30.990510152025303540Nutritionals Division23Relatively Low Milk per Capita ConsumptionMilk per Capita Consumption (kg)Source: FAPRI (Food & Agricultural Policy Research Institute) for whole milk powder, liquid milk and non fat dry milk categories2006 – 2010 = Real Data; 2011 – 2012 = Projection2.7%1.6%1.1%0.5%-2.3%Note : %growth represents 6 years (2006-2012) CAGR1.6%13,99514,810FY 2010 FY 2011162,795169,093FY 2010 FY 2011Nutritionals Division24Growth of Indonesian Powdered Milk MarketSource : AC Nielsen, YTD 12 2011By Value (Rp Bn)By Volume (Kg ‘000)5.8%3.9%
  13. 13. 7/31/2012131,1301,33160.5% 62.6%20.0%25.0%30.0%35.0%40.0%45.0%50.0%55.0%60.0%65.0%5006007008009001,0001,1001,2001,3001,4001,50030 June 2011(Unaudited)30 June 2012(Unaudited)SALES in Rp BnGross Profit MarginNutritionals Division25Net Sales Performance+17.8%• Nutritionals Division net sales were upby 17.8% to Rp 1,331 Bn in YTD 062012 from Rp 1,130 Bn in YTD 062011.• Existing major products continued togain market share.• Gross profit margin increased to 62.6%in YTD 06 2012 from 60.5% in YTD 062011 mostly due to lower raw materialprice.26Market Share of Kalbe Nutritionals Productsin its Category YTD December 2011Gaining Market Shares Against Multinational CompetitorsSource : AC Nielsen, based on Value (Rp)Powder Milk Market ShareYTD 12 2011Total Market = Rp 14.8 Tna31%b19%d9%c12%KalbeNutritionals9%e6%g3%f3%h3%i2% Others2%Source : AC Nielsen, based on Value (Rp)Kalbe’s Products Market ShareDiabetasol 79.5%Milna 63.5%Prenagen 55.4%Morinaga Chil Mil 8.4%Morinaga BMT 8.6%Entrasol 7.6%Morinaga Chil Kid 5.9%Zee 3.5%Morinaga Chil School 1.9%Nutritionals Division
  14. 14. 7/31/201214Launching of New ProductsMilna Toddler Milk with VegetableFormulated milk combined with vegetables concentratespecially formulated for children (above 1 year old)27Nutritionals DivisionLovamilA new powder milk product for expecting and lactatingmothers, targeted to the middle segmentKidZee and ZeePowder milk for kids and tweens targeted to themiddle segment, now also available in sachetpackagingNutrive BenecolSmoothie with special ingredient to lower cholesterolFitbarA healthy snack bar made of oats and cereals that comes in 2 flavors,fruits and nuts, with only 110 calories per bar, Zero Cholesterol andZero Trans Fat, enriched with Calcium, Vitamins A, B12 and CInnovation in Business Channel28Nutritionals DivisionModernChannelTraditionalChannelNutritionals Division launched new channel of consumer order through hotline service Nutrition HomeDelivery (NHD) 500-880 and online shopping through www.kalbestore.com . Kalbe Nutritionals Rewardsoffers point rewards for consumers to increase Kalbe products consumption.Kalbe e-store - the 1st Online Nutrition Store in Indonesia
  15. 15. 7/31/201215Distribution & Logistics Division29The Most Extensive Distribution NetworkBranches65 47CitiesRDC230Net Sales Performance• Distribution & Logistics Division is run underPT Enseval Putera Megatrading Tbk(EPMT), a publicly listed company(now, 91.75% owned).• Net sales represents the 3rd party productsales and distribution margin of internalproduct sales.• On 29th September 2011, PT Abbott IndonesiaNutritional Division has signed a distributionagreement with EPMT for Indonesia coveragethrough trade channel.Distribution & Logistics Division+54.1%1,5002,31230.4%28.9%0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%-5001,0001,5002,0002,5003,0003,50030 June 2011(Unaudited)30 June 2012(Unaudited)Distribution & LogisticsGross Profit Margin
  16. 16. 7/31/201216Distribution & Logistics Division31Distribution Business DetailsTotal Net Sales = Rp 6,210 BnFigures based on EPMT YTD 06 2012 Unaudited Financial Statements(Figures in Rp Bn)Kalbe Group67%3rd PartyPrincipals22%MedicalDevices4%RawMaterialsTrading &others7%Distribution & Logisticsand Health Services89%6,21062721410.1%3.4%0.0%2.0%4.0%6.0%8.0%10.0%12.0%-1,0002,0003,0004,0005,0006,0007,000Net Sales Gross Profit Income Before TaxGross profit marginIncome before taxmarginDistribution & Logistics Division32Medical Devices, a New Growth DriverMedical Devices is an area of potential growth, especially in the implementation ofNational Healthcare Insurance System where demand for medical devices isprojected to grow further.Net Sales (in Rp Bn)233315502673915870FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011Medical DevicesCAGR30.1%Major Principals
  17. 17. 7/31/20121733Major Third Party Principals by CategoryPrescriptionPharmaceuticals ConsumerMedical Instrument& DiagnosticFine ChemicalRaw MaterialsDistribution & Logistics Division34New Retail Health Service : Mitrasana Clinic• A 100% owned subsidiary of EPMT.• Opening of Mitrasana Clinics as a one-stop service,includes family doctor, pharmacy, laboratory, andconvenient store.• Operational excellence in several areas, such as supplychain management, system and in-store operation.• To date, Kalbe has opened 27 Mitrasana clinics inJakarta and its Greater Area.• Offered in 2 business models, namely direct investmentand collaboration / joint - operation models.Distribution & Logistics Division
  18. 18. 7/31/201218Distribution & Logistics Division35Kalbe believes that strong distribution network is a key competitive advantage, and thereforeis committed to further improve capacities and facilities to achieve better product availabilityand working capital management.Strengthening Distribution NetworkBanjarmasin Jember Surakarta Banda AcehIn December 2011, we completed the upgrading of 4 branches inBanjarmasin, Jember, Surakarta and Banda Aceh.1. Expand into new territories in Indonesia2. Upgrade existing branch facilities to improve service quality3. Establish several Regional Distribution Centers (RDC) throughout Indonesia4. Expand warehouse capacityKalbe completed Rights Issue in March 2011 in the amount of Rp 300 Bn to finance 2 yearsexpansion plans:Marketing and Sales Infrastructure36The largest sales force for Pharma and Consumer Health in IndonesiaPrescriptionPharmaceuticalsConsumer Health NutritionalsDistribution &LogisticsInfra-structuresIndonesiaCoverageComments• Over 2,300 medicalrepresentatives• Over 1,000 marketingpersonnel• Over 2,000 sales &marketing personnel• Total of 4,000employees• 65 marketing branchesthroughout Indonesia• 42 branches & 23 atsubsidiaries•1,000 trucks• 500 motorcycles• Directly cover200,000 outlets• Products available inover 1mn outlets or80% of totalconsumer healthmarketMarket coverage• 70% of GP marketcovered• 90% of specialist marketcovered• 100% of all hospitalscovered• 100% pharmacycoverage• Largest marketingteam in Indonesia• Approximately 1,000marketing and salesforce• Market Coveragethroughout Indonesia• Most developedtelemarketing team inthe nutritional sector• 80% of consumerhealth market•100% of prescriptionpharma market• Largest sales force inIndonesia
  19. 19. 7/31/201219Manufacturing Infrastructure37Operates 10 GMP facilities complying with international standardsFacilityProductsManufacturedBuildingArea(m2)Production Lines Licenses CertificationKalbe Farma 448 42,6849 lines of Non Beta Lactam Products(tablet, capsule, cream, liquid oral, injection)AstellasISO 9001, ISO 14001,OHSAS18001Bintang Toedjoe 46 20,849 3 lines; effervescent, powder & liquid --ISO 9001, ISO 14001,OHSAS18001, HACCPDankos Farma 189 14,9053 factories; Non Beta Lactam, Penicillin &Cephalosporin linesDaiichiISO 9001, ISO 14001,OHSAS18001Sanghiang Perkasa 132 11,8696 lines (4 lines sachet, 1 line tin,1 line mixed sachet)MorinagaISO 9001, ISO 14001, HACCP,OHSAS18001Saka Farma 32 1,763 Liquid, Non Beta Lactam products -- --Hexpharm Jaya(Cikarang)88 16,533Solid tablet & dry syrup(Non Beta Lactam products)-- ISO 9001Hexpharm Jaya(Cipanas)143 3,400 Solid, Liquid oral & semi solid -- ISO 9001Fima 24 2,500 Large volume Parenteral Line BaxterISO 9001, ISO 14001,OHSAS18001Kalbe Morinaga 19 33,733 1 wet - drier line, 1 can line, 2 sachet lines Morinaga ISO 9001, ISO 22000Orange Kalbe Ltd. - 5,000 2 lines; tablet and cream -- NAFDAC (local FDA)38SECTION 4Financial Overview
  20. 20. 7/31/2012201,387932 1,1301,5004,9491,5981,0031,3312,3126,244Prescription PharmaceuticalsConsumer Health Nutritionals Distribution & Logistics Consolidation30 June 2011 (Unaudited) 30 June 2012 (Unaudited)Consolidated Sales39Net Sales GrowthNet Sales (in Rp Bn)15.2%7.7%17.8%54.1%26.2%27.8% 26.8%5.7% 5.0%0.8% 0.8%30 June 2011(Unaudited)30 June 2012(Unaudited)Selling & MarketingGeneral &AdministrativeResearch &Development52.1%49.1%30 June 2011(Unaudited)30 June 2012(Unaudited)Strong Financial Performance40Improved operating expenses efficiency- 3.1%Gross Profit Margin Operating Expenses to Net Sales Ratios• Improved Operating Expenses to Net Sales Ratioby 1.8% due to strong sales growth.• Gross Profit Margin decreased by 3.1%mostly due to change in business mix.-1.8%34.4% 32.6%
  21. 21. 7/31/20122167580713.6% 12.9%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%5006007008009001,0001,10030 June 2011(Unaudited)30 June 2012(Unaudited)Net Income in Rp BnNet Income Margin9031,08818.3% 17.4%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%5007009001,1001,3001,50030 June 2011(Unaudited)30 June 2012(Unaudited)Income Before Tax in Rp BnIncome Before Tax MarginStrong Financial Performance41Strong Earnings GrowthIncome Before Tax Margin Net Income Margin• Income before tax was up by 20.5% toRp 1,088 Bn+20.5%• Net Income was up by 19.6% to Rp 807 Bn+19.6%72971371587286FY 2008(Audited)FY 2009(Audited)FY 2010(Audited)FY 2011(Audited)30 Jun 2011(Unaudited)30 Jun 2012(Unaudited)Strong Financial Performance42High Earnings per Share Growth+19.6%• Expansion of margin• Operating profit margin grew from 14.5%in 2008 to 18.1% in 2011• Net income margin grew from 9% in 2008to 13.6% in 2011• Share buy back program• Company has 780,990,000 treasury shareswhich represents 7.7% of totaloutstanding shares• Total cash spent for treasury shares wasRp 687 bn• Current market value of treasury sharesapproximately Rp 2,812 bn• Increase of ownership in severalsubsidiaries• PT Enseval Putera Megatrading Tbk from58.8% in 2008 to 91.75% in 2011• PT Saka Farma from 80% in 2008 to 100%in 2009High EPS Growth4 Yr - CAGR30%
  22. 22. 7/31/20122243 45 445046142122110 1151292738 3557 4915812912010812631 December 2008(Audited)31 December 2009(Audited)31 December 2010(Audited)31 December 2011(Audited)30 June 2012(Unaudited)No. of daysDays of Account Receivables Days of InventoriesDays of Account Payables Net Operating CycleWorking Capital Management43A Temporary Spike in Working CapitalEnd-to-end supply chainmanagement would becontinuously implementedto overcome anyfluctuation in inventoryNet Operating Cycle hasbeen decreased by 32 daysfrom 158 days in 2008 to 126days in 2012Temporarily building upinventory level due to pricetrend and Ramadhan festiveseasonSolid Financial Position44Total Debt and Gearing Ratio Cash & Net Cash BalanceRp 2.0 Trillion of Net Cash Position405340251416511.2%7.9%0.5%2.3%1.0%0.0%2.0%4.0%6.0%8.0%10.0%12.0%050100150200250300350400450FY 2008(Audited)FY 2009(Audited)FY 2010(Audited)FY 2011(Audited)YTD06 2012(Unaudited)Total Debt in Rp BillionGearingRatio1,3221,5621,9022,2912,0999171,2231,8772,151 2,034FY 2008(Audited)FY 2009(Audited)FY 2010(Audited)FY 2011(Audited)YTD06 2012(Unaudited)Cash and Cash Equivalent in Rp BillionNet Cash in Rp Billion
  23. 23. 7/31/20122345SECTION 5Corporate Actions &Outlook 2012Corporate Actions in 201246To accelerate expansion in the ready-to-drink segment, on July 6,2012, Kalbe completed the acquisition of PT Hale International, ahealth beverage manufacturing company, worth Rp 93.9 billion.Acquisition of PT Hale InternationalSpecial Dividend Payment in 2011Kalbe has obtained the approval of the AGMSon May 23, 2012 to pay dividend of Rp 891 bn,or equivalent to Rp 95 per share. This reflects ahigher payout of 60% which is a specialdividend for financial year 2011.Dividend has been paid on July 17, 2012.Historical Dividends10.0 12.5 25.070.095.014% 17%26%51%60%0%20%40%60%80%0.020.040.060.080.0100.02007 2008 2009 2010 2011Cash Dividend (Rp/share) Dividend Payout Ratio (%)Joint Venture to form PT Kalbe Milko IndonesiaKalbe signed an agreement with PT Milko Beverage Industry to form a jointventure company, PT Kalbe Milko Indonesia, to manufacture liquid nutritionalsproducts with an estimated investment of Rp 100 – 150 Bn.
  24. 24. 7/31/201224Achievements in 2011 and 201247• ASEAN Business Awards 2011 – Most Admired Enterprise for Innovation category,from ASEANMajor Awards in 2011 and 2012• Best Managed Companies Award, from Finance Asia• Worldstar Award 2011-2012 in Medical and Pharmaceutical Category,from World Packaging Organization in United Kingdom.• Indonesia 2nd Best Investor Relations, from Asia Money.Outlook 201248Updated Earnings Guidance 2012• Encouraging financial results in 1H-2012• More optimist for price increase in 1H-2012• Improving trend for newly launched products1. Year-on-year Sales Growth 20% - 25%2. Operating Profit Margin 16% - 16.5%3. Earnings per Share Rp 183– Rp 190, representing a year-on-year growth of 16% - 20%4. Dividend payout ratio minimum 50%PrescriptionPharmaceuticals25%ConsumerHealth17%Nutritionals22%Distribution &Logistics36%YTD September 2011 2012In the short term, change in business mix is expected to impact margin. However, Kalbe believes thatour Pharma, Consumer Health and Nutritionals businesses will grow faster and allow us to resumeexisting business mix and profitability level.
  25. 25. 7/31/20122549SECTION 6AppendixFinancial InformationYTD June 30, 2012 (Unaudited)Unaudited Financial StatementYTD 06 201250Consolidated Balance Sheets* Comparative Jun 2012 to Dec 2011 in compliance with SFAS No. 1ASSETSCURRENT ASSETSCash and Cash Equivalents 2,291,335,810,101 2,098,746,986,435 -8.4%Short-term Investments 113,871,418,384 230,891,547,975 102.8%Trade Receivables 1,529,991,628,590 1,585,988,331,748 3.7%Other Receivables 105,319,628,145 123,819,783,907 17.6%Inventories 1,705,189,186,310 2,284,449,261,310 34.0%Other Current Assets 210,415,568,777 294,243,929,524 39.8%TOTAL CURRENT ASSETS 5,956,123,240,307 6,618,139,840,899 11.1%TOTAL NON-CURRENT ASSETS 2,318,430,872,533 2,522,976,139,682 8.8%TOTAL ASSETS 8,274,554,112,840 9,141,115,980,581 10.5%31 December 2011(Audited)30 June 2012(Unaudited) % Change
  26. 26. 7/31/20122651Consolidated Balance SheetsUnaudited Financial StatementYTD 06 2012* Comparative Jun 2012 to Dec 2011 in compliance with SFAS No. 1LIABILITIESCURRENT LIABILITIESShort-term Loans 140,056,547,003 64,038,983,989 -54.3%Trade Payables 850,398,382,129 868,710,907,998 2.2%Other Payables 202,423,719,905 202,439,971,482 0.0%Dividend Payables - 890,627,320,090 100.0%Accrued Expenses 283,137,947,283 426,136,469,610 50.5%Taxes Payable 154,286,544,102 123,849,340,533 -19.7%Current Maturities of Obligations Under Finance Leases 285,388,096 275,972,659 -3.3%TOTAL CURRENT LIABILITIES 1,630,588,528,518 2,576,078,966,361 58.0%TOTAL NON-CURRENT LIABILITIES 128,030,525,896 133,978,032,382 4.6%TOTAL LIABILITIES 1,758,619,054,414 2,710,056,998,743 54.1%EQUITYATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANYCapital Stock -Issued and Fully Paid - 10,156,014,422 Shares 507,800,721,100 507,800,721,100 0.0%Additional Paid-in Capital 4,441,133,136 4,441,133,136 0.0%Retained Earnings 6,407,439,270,888 6,324,113,133,264 -1.3%Treasury Stocks - 780,990,000 Shares (687,283,369,009) (687,283,369,009) 0.0%Others (17,579,625,197) (13,195,724,352) 24.9%Sub-total 6,214,818,130,918 6,135,875,894,139 -1.3%Non-controlling Interest 301,116,927,508 295,183,087,699 -2.0%EQUITY, NET 6,515,935,058,426 6,431,058,981,838 -1.3%TOTAL LIABILITIES AND EQUITY 8,274,554,112,840 9,141,115,980,581 10.5%31 December 2011(Audited)30 June 2012(Unaudited) % ChangeUnaudited Financial StatementYTD 06 201252Consolidated Balance SheetsASSETSCURRENT ASSETSCash and Cash Equivalents 2,356,318,272,435 2,098,746,986,435 -10.9%Short-term Investments 66,527,688,357 230,891,547,975 247.1%Trade Receivables 1,508,927,327,275 1,585,988,331,748 5.1%Other Receivables 77,854,053,068 123,819,783,907 59.0%Inventories 1,534,517,879,330 2,284,449,261,310 48.9%Other Current Assets 260,512,032,480 294,243,929,524 12.9%TOTAL CURRENT ASSETS 5,804,657,252,945 6,618,139,840,899 14.0%TOTAL NON-CURRENT ASSETS 2,090,194,007,687 2,522,976,139,682 20.7%TOTAL ASSETS 7,894,851,260,632 9,141,115,980,581 15.8%30 June 2011(Unaudited)30 June 2012(Unaudited) % Change
  27. 27. 7/31/20122753Consolidated Balance SheetsUnaudited Financial StatementYTD 06 2012LIABILITIESCURRENT LIABILITIESShort-term Loans 139,497,671,383 64,038,983,989 -54.1%Trade Payables 624,173,005,578 868,710,907,998 39.2%Other Payables 145,299,522,273 202,439,971,482 39.3%Dividend Payables 658,395,793,565 890,627,320,090 0.0%Accrued Expenses 293,853,619,330 426,136,469,610 45.0%Taxes Payable 74,152,492,101 123,849,340,533 67.0%Current Maturities of Obligations Under Finance Leases 269,935,999 275,972,659 2.2%TOTAL CURRENT LIABILITIES 1,935,642,040,229 2,576,078,966,361 33.1%TOTAL NON-CURRENT LIABILITIES 114,115,076,251 133,978,032,382 17.4%TOTAL LIABILITIES 2,049,757,116,480 2,710,056,998,743 32.2%EQUITYATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANYCapital Stock -Issued and Fully Paid - 10,156,014,422 Shares 507,800,721,100 507,800,721,100 0.0%Additional Paid-in Capital 4,441,133,136 4,441,133,136 0.0%Retained Earnings 5,600,207,696,279 6,324,113,133,264 12.9%Treasury Stocks - 780,990,000 Shares (687,283,369,009) (687,283,369,009) 0.0%Others (24,942,968,707) (13,195,724,352) 47.1%Sub-total 5,400,223,212,799 6,135,875,894,139 13.6%Non-controlling Interest 444,870,931,353 295,183,087,699 -33.6%EQUITY, NET 5,845,094,144,152 6,431,058,981,838 10.0%TOTAL LIABILITIES AND EQUITY 7,894,851,260,632 9,141,115,980,581 15.8%30 June 2011(Unaudited)30 June 2012(Unaudited) % Change54Consolidated Statements of IncomeUnaudited Financial StatementYTD 06 2012NET SALES 4,948,716,279,038 6,243,946,899,934 26.2%COST OF GOODS SOLD 2,368,068,908,712 3,180,797,227,933 34.3%% to NS 47.9% 50.9% 3.1%GROSS PROFIT 2,580,647,370,326 3,063,149,672,001 18.7%% to NS 52.1% 49.1% -3.1%Selling Expense (1,378,163,251,374) (1,672,307,721,055) 21.3%% to NS -27.8% -26.8% 1.1%General and Administrative Expense (283,516,533,291) (312,560,921,433) 10.2%% to NS -5.7% -5.0% 0.7%Research and Development Expense (40,294,767,609) (47,739,505,582) 18.5%% to NS -0.8% -0.8% 0.0%Inventory Write-off (11,124,123,041) (14,222,451,739) 27.9%Interest Expense and Financial Charges (3,990,345,133) (6,322,051,995) 58.4%Interest Income 50,557,108,970 45,669,378,244 -9.7%Gain (Loss) on Foreign Exchange, Net (15,357,264,769) 16,409,673,740 -206.9%Gain on Sale of Property and Equipment 1,304,478,979 13,432,509,284 929.7%Miscellaneous, Net 3,299,072,677 2,734,775,222 -17.1%INCOME BEFORE INCOME TAXBENEFIT (EXPENSE) 903,361,745,735 1,088,243,356,687 20.5%% to NS 18.3% 17.4% -0.8%30 June 2011(Unaudited)30 June 2012(Unaudited) % Change
  28. 28. 7/31/20122855Consolidated Statements of IncomeUnaudited Financial StatementYTD 06 201230 June 2011(Unaudited)30 June 2012(Unaudited) % ChangeINCOME TAX EXPENSE, NET 210,506,182,147 262,266,648,961 24.6%% to NS 4.3% 4.2% -0.1%INCOME FOR THE PERIOD 692,855,563,588 825,976,707,726 19.2%% to NS 14.0% 13.2% -0.8%OTHER COMPREHENSIVE INCOME (EXPENSES) 7,485,025,880 760,145,852 -89.8%COMPREHENSIVE INCOME FOR THE PERIOD 700,340,589,468 826,736,853,578 18.0%% to NS 14.2% 13.2% -0.9%Income for the Period Attributable to:Parent Company 675,205,595,259 807,301,182,466 19.6%Non-controlling Interest 17,649,968,329 18,675,525,260 5.8%Total 692,855,563,588 825,976,707,726 19.2%% to NS 14.0% 13.2% -0.8%Comprehensive Income for the PeriodAttributable to:Parent Company 682,690,621,139 807,832,688,963 18.3%Non-controlling Interest 17,649,968,329 18,904,164,615 7.1%Total 700,340,589,468 826,736,853,578 18.0%% to NS 14.2% 13.2% -0.9%Earnings Per Share Attributableto Equity Holder of the Parent 72 86 19.6%56Unaudited Financial StatementYTD 06 2012Consolidated Statement of Cash FlowsCASH FLOWS FROM OPERATING ACTIVITIESCash received from customers 5,173,332,213,212 6,789,208,920,225 31.2%Cash paid to suppliers and employees (2,879,347,821,633) (4,604,650,343,758) 59.9%Cash provided by operations 2,293,984,391,579 2,184,558,576,467 -4.8%Receipts of claims for income tax refund 5,460,616,386 15,293,283,688 180.1%Payments of income taxes (269,101,750,391) (280,589,962,128) 4.3%Payments of other operating expenses, net (1,507,547,753,218) (1,607,696,700,103) 6.6%Net Cash Provided by Operating Activities 522,795,504,356 311,565,197,924 -40.4%CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of short-term investmentsand time deposits 74,088,231,846 20,000,000,000 -73.0%Interest income received 53,366,658,357 45,669,378,243 -14.4%Proceeds from sales of property and equipment 17,466,780,318 21,774,894,623 24.7%Acquisitions of property, plant and equipment (192,871,884,426) (346,458,817,386) 79.6%Placements in short-term investmentsand time deposits (135,300,000,000) (129,600,000,000) 4.2%Acquisitions from other investing activities, net 463,131,957 1,936,912,433 -318.2%Net Cash Used in Investing Activities (182,787,081,948) (386,677,632,087) -111.5%30 June 2011(Unaudited) % Change30 June 2012(Unaudited)
  29. 29. 7/31/20122957Unaudited Financial StatementYTD 06 2012Consolidated Statement of Cash Flows30 June 2011(Unaudited) % Change30 June 2012(Unaudited)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from bank loans 289,574,000,000 115,654,125,546 -60.1%Receipts of capital contributions fromSubsidiaries non-controlling interest 39,339,700,116 - -100.0%Payments of bank loans (175,234,229,596) (199,346,066,868) 13.8%Payments of interest expense (3,504,629,011) (6,719,110,715) 91.7%Payments of cash dividendsSubsidiaries (5,865,122,995) (21,455,115,931) 265.8%Payments from other financing activities, net (8,675,780,025) (11,288,128,880) 30.1%Net Cash Provided by (Used in) Financing Activities 135,633,938,489 (123,154,296,848) -190.8%NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT 475,642,360,897 (198,266,731,010) -141.7%Net Effect of Changes in Foreign Exchange Rates of Foreign CurrencyDenominated Cash and Cash Equivalents (22,495,673,742) (2,338,863,805) -89.6%CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,893,315,663,897 2,289,700,859,692 20.9%CASH AND CASH EQUIVALENTS AT END OF PERIOD 2,346,462,351,052 2,089,095,264,877 -11.0%THANK YOU58For further information:PT Kalbe Farma Tbk.Jalan Let.Jend. Suprapto Kav. 4Jakarta 10510, IndonesiaTel. : 62-21-42873888Fax. : 62-21-42873678Email : vidjongtius@kalbe.co.idjhandajani@kalbe.co.idinvestor.relations@kalbe.co.idWebsite : www.kalbe.co.id

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