Company Update - Q3 2008

Company Performance
YTD September 2008
Contents
2
Part 1
Kalbe at a Glance
Part 2
Pharmaceutical Industry Overview
Part 3
Business Overview
A. Prescription Pharmaceuticals
B. Nutritionals
C Consumer Health
C.
D. Distribution and Packaging
Part 4
Operational Overview
Part 5
Growth Drivers
Part 6
Financial Overview
Part 7
Recent Activities
P t8
Part
F t
Future
Outlook
O tl k
Part 1
Kalbe at a Glance
3
Company
p y Highlights
g g
Largest Publicly-Listed
Pharmaceutical
Company in Southeast
Asia
♦
♦
More than 42-year old pharmaceutical company with long track record of profitable growth.
After the merger with PT Dankos Laboratories Tbk. and PT Enseval effective on December 16,
2005, Kalbe has become the largest publicly-listed pharmaceutical company in Southeast Asia with
approximately US$ 1 billion market capitalization in the past year.
♦
♦
Large ttargett population
L
l ti off 235 million
illi iin IIndonesia,
d
i and
d 570 million
illi iin S
Southeast
th
tA
Asia.
i
OTC and prescription pharma in the Indonesian and Southeast Asian markets expected to grow
annually at 10% and 13% respectively over the next several years.
♦
The market leader in Indonesian prescription pharma market with 13% market share as well as a
leader in consumer health market with 16% OTC market share, 9% share in nutrition market and
30% in energy drink market for the first semester in year 2008.
Unrivaled health distribution network which directlyy and indirectlyy covers more than 1 million outlets.
3
Substantial Market
Opportunity
Market Leading
Positions in Indonesia
Strong, Diversified,
High Growth Product
Portfolio
♦
Highly Experienced
Senior Management
Team
♦
Strong Financial Track
Record
Substantial Growth
Opportunities
4
♦
♦
♦
♦
♦
♦
♦
♦
Consumer health portfolio which includes 13 market leading OTC brands in 7 main therapeutic
categories, the market leading brand in pregnant nutrition and clinical foods, and the leading energy
drink in Indonesia.
Prescription pharma portfolio of 284 products and over 500 SKUs.
Average
g senior management
g
tenure of over 20 yyears at Kalbe,, providing
p
g strategic
g continuityy and
depth of senior management bench.
Average industry experience of over 20 years developing, manufacturing, marketing and selling
consumer health and pharmaceutical products.
Broad based growth across all business segments with consolidated revenues and net income have
grown at 14% and 13%, respectively, from 2003-2007.
Strong balance sheet with net cash position of almost 1 trillion Rupiah as of September 30, 2008.
Consumer health new product development.
Development of prescription pharmaceutical portfolio.
Continued expansion in Southeast Asia.
Historical Data
Kalbe was established in 1966 and has a long track record of profitable growth
Inception and Entrepreneurial
Driven Expansion
1966–1995
1966 1977 1981 1985 1989
1966:
1977:
Company Dankos Lab
founded
1985:
Acquired
Bintang
Toedjoe &
Hexpharm
1989:
Igar Jaya
and
Dankos
IPOs
1981:
Spin-off the
distribution
business to PT
Enseval due to
government
regulation
Excellence, Sustainable Growth,
Going Global
2007–2015
Enhanced Focus and Consolidation
1996–2005
1991
1993 1994
1996
1997
1991:
Kalbe Farma
IPO
1994:
♦
Entered
energy drink
business
1996:
♦
EPM IPO
Disposed of
50% of food
1993:
business (PT
♦ Acquired
Bukit Manikam
Sanghiang
g
g
Sakti) to
Perkasa and
Arnotts
consolidated
nutritional
business to
Sanghiang
Perkasa
2005
2007
2005:
Consolidation of
Kalbe Group
2007-2010 Business Focus
♦ Expand regional footprint
♦ Build global brands and infrastructure
♦ Scale through mergers and
acquisitions
♦ Proprietary drug development
♦ Global partnerships and networks
1997:
♦ Disposed of Kalbe’s
remaining 50% ownership
in PT Bukit Manikam Sakti
to Arnotts
♦ Disposed glass packaging
division to Schott
♦ Acquired Woods
Peppermint brand
♦ Acquired 80% of Saka
Farma
8000
900
800
700
600
500
400
300
200
100
0
7000
6000
5000
4000
3000
2000
1000
0
1991
1992
1993
1994
1995
1996
1997
1998
1999
Sales USD
Note:
Audited financials. Figures since 2005 are post-merger figures.
5
2000
Sales IDR
2001
2002
2003
2004
2005
2006
2007
(IDR bn)
(US
SD mm)
Long
g Track Record of Sustainable Revenue Growth
Corporate
p
Overview
Established in 1966 is a public company since 1991 and listed on the Indonesia Stock
Exchange, Kalbe Farma is now the largest publicly-listed pharmaceutical company in
Southeast Asia
• Kalbe markets and sells its p
products in 6 major
j markets in Southeast Asia which in
aggregate represent a population of almost 570 million.
• Over 15,000 employees and a marketing and sales force near of 6,000 covering 80% of
the Indonesian consumer health and 100% of the Indonesian prescription
pharmaceutical market
market.
• Sales contribution of Kalbe’s 4 business segments in the 3rd Quarter of 2008:
– prescription pharmaceuticals
28.2%
– nutritionals
23.2%
– consumer health
14.1%
– distribution and packaging
25.2%
6
Corporate
Overview
p
4 Divisions of Kalbe Group
KALBE GROUP
Prescription
Pharmaceuticals
Nutritionals
Consumer
Health
Energy Drink
OTC
Pharmaceuticals
7
Distribution &
Packaging
Business Overview
Kalbe Farma is the market leader in prescription pharmaceuticals, nutritionals and
consumer health products in Indonesia
Prescription
Ph
Pharmaceuticals
ti l
Key
Product
P
d t
Categories
Market
Position in
Key
Markets
Revenue
YTD Sep 2008
8
• Licensed products
• Branded generics
• Unbranded generics
Nutritionals
• Pregnancy nutrition
• Baby milk products
• Baby biscuits
• Baby cereals
• Clinical food
u be 1 in Indonesian
do es a
Number
prescription
pharmaceuticals market
A market
a et leader
eade in
Indonesian nutrition
market and in high end
nutrition market
IDR 1,570.3 billion
IDR 1,417.8 billion
Consumer Health
• OTC Pharmaceuticals
• Energy Drink
Distribution &
P k i
Packaging
• Consumer health
• Prescription pharma
• Medical instruments
and diagnostics
• Consumer products
• Fine chemical raw
materials
• Number
u be 1 in
• Largest
a gest p
pharmaceuticals
a aceut ca s
Indonesian OTC
distribution network in
pharmaceuticals market Indonesia
• Number 1 in
• 40 distribution centers
Indonesian energy
• Indirectly and directly
drinks market
covers more than 1 mm
outlets
IDR 1,268.8 billion
IDR 1,460.8 billion
Corporate Subsidiaries
Pharmaceuticals
& Consumer Health
Nutritionals
Distribution
Bintang Toedjoe
Sanghiang Perkasa
EPMT
99.90% ownership
99.99% ownership
58.19% ownership
Dankos Farma
Kalbe Morinaga
Tri Sapta Jaya
99.98% ownership
70.00% ownership
58.18% ownership
Finusolprima Farma
Bifarma Adiluhung
Milenia Dharma Insani
99.988% ownership
99.20% ownership
57.61% ownership
Hexpharm Jaya Labs
Enseval Medika Prima
99.60% ownership
57.61% ownership
Saka Farma Labs
Global Chemindo Megatrading
80.00% ownership
58.18% ownership
Innogene Kalbiotech Pte. Ltd
Packaging
90.79% ownership
Kalbe International Pte. Ltd
100.00% ownership
63.10% ownership
Kalbe Vision Pte. Ltd
Avesta Continental Pack
100.00% ownership
48.25% ownership
Cordlife Indoneisa
30.00% ownership
Pharma Metric Labs
34.45% ownership
Orange Kalbe Ltd
30.00% ownership
9
Kageo
Indogravure
24.61% ownership
Awards & Achievements
Kalbe’s
K
lb ’ excellent
ll t performance
f
is
i recognized
i d by
b a number
b off organizations
i ti
through the following awards
Year 2008:
• Kalbe Group received 3 ICSA 2008 medalion.
• PT Bintang Toedjoe received K3 Award for implementing K3 System Management consistently for more than 10 years
and
d received
i d certificate
tifi t and
d gold
ld fl
flags 5 ti
times iin a row.
Year 2007:
•“Original Product of Indonesia” for Extra Joss from Bisnis Indonesia.
•Value Creator Award 2007 (Ranked 22th from 100) from SWA Magazine.
•Nominator of Metro TV MDGs Award for the child mortality reduction program, Nov 26, 2007.
•One of the “Most
Most Admired ASEAN Enterprises
Enterprises” and the winner of ASEAN Business Awards for CSR
category in the event held by ASEAN Advisory Business Council on Nov 18, 2007.
•“Pioneer of Corporate Social Responsibility Award” from Bekasi District Authority.
•“Honorable City Tax Payer Award” from Central Jakarta district city Mayor on Aug 23, 2007.
•Investor Award 2007 (Ranked 24th of 100 Best Companies, and ranked 2nd in cigarette, pharmacy, and
household appliances sector) from Investor Magazine.
Year 2006:
•“Trusted Company Award” and “Best Company in the Consumer Industry Award” from IICG
(Indonesian Institute for Corporate Governance).
• “Top 10 Value Creator 2006” for companies with assets >Rp 1 trillion from SWA
Magazine, Markplus & Co.
g Companies
p
Poll Awards 2005 from AsiaMoney.
y
•Asia’s Best Managed
•Investor Award 2006 (the best in cigarette, pharmacy, and household appliances sector)
from Investor Daily and Investor Magazine.
•CEO of the year 2006 award for Kalbe’s President Director, Johannes Setijono
from Bisnis Indonesia.
• “Best ”Second Liner” Company to Invest from Bisnis Indonesia.
Best Company promoting Education awareness in the whole of West Java District 2006
2006"
•“Best
from Governor of West Java, Danny Setiawan.
10
Part 2
Pharmaceutical Industry Overview
11
Pharmaceutical Industry in Indonesia
•
•
•
•
•
In 2007, the size of local pharmaceutical market was IDR 24.6
trillion (approx. USD2.8 billion) or grew by 9.2% and is expected to
grow around
d 9.1%
9 1% in
i 2008.
2008
The market comprised of 60% Prescription Pharmaceutical
products and 40% Over the Counter (OTC) products.
The level of competition is quite high with around 200
pharmaceutical companies, including approximately 30 MNCs.
Government has implemented Patent Law and Product Registration
based on WTO’ standard and has continued to provide medical
treatments for the poor at hospitals and community health centers.
The price increase of pharmaceutical products is lower than the
inflation rate, adapting to the low purchasing power.
* Source: IMS Report
12
III. Industry Overview - Corporations
Top 5 Corporations in ITMA, IHPA and IPA Market.
ITMA Market Share - YTD 06 2008
IHPA Market Share - YTD 06 2008
KALBE GROUP
14%
4%
KALBE GROUP
14%
DEXA MEDICA GROUP
5%
TEMPO GROUP
5%
SOHO GROUP
4%
Source: IMS Health, for manufactured SEM 06 2008
13
SANBE
8%
DEXA MEDICA GROUP
10%
SANBE
6%
* Others *
66%
IPA Market Share - YTD 06 2008
* Others *
60%
DEXA MEDICA GROUP
6%
SANBE
8%
OTSUKA OTSUKA
GROUP
SANOFI‐
4%
AVENTIS GRP
4%
KALBE GROUP
8%
* Others *
69%
PFIZER GROUP
5%
NOVARTIS GROUP
4%
Part 3
Business Overview
1.
2.
3
3.
4.
14
Prescription Pharmaceuticals
Nutritionals
Consumer Health
Distribution & Packaging
Business Overview
Prescription Pharmaceuticals
Licensed Products
Number of
Products
Key
Products
Recent
Launched
Products
Planned
Products
Launches
15
Branded Generics
Generics
• 69 products
• 236 products
• 41 products
• General Anti-infectives;Cefspan.
Fixef; Cravit, Reskuin; Tarivid
,Cefizox, Cefazol, Bactesyn
• Hospital Solutions: Octalbin
• Oncology: Paxus; Epirucibin –Kalbe
,Endrolin, Dexorubicin-Kalbe ,Brexel
• Blood and Blood Forming Organs:
Kalnex, Hemapo
• Musculo-Skeletal System: Mediflex.
Durolane
• Alimentary Tract and Metabolism:
Cernevit, Dialac
• General Anti-infectives:
Broadced, Merofen, Kalfoxim, Mycoral,
Clavamox
• Central Nervous system: Neurotam.
Neuralgin RX, Brainact
• Musculo-Skeletal System: Kaltrofen
• Cardiovascular System: Angioten
, Cholestat, Divask
• Alimentary Tract and Metabolism:
Rantin,, Ulsikur,, Pronicy,
y, Metrix,,
Plantacid, Lancid
• General Anti-infectives: Cefotaxime ,
Amoxycilin; Rifampicin;
Ceftriaxone Cefadroxil
Ceftriaxone,
• Alimentary Tract and Metabolism:
Ranitidine
• Cardiovascular System:
Simvastatin, Amlodipine
• Central Nervous system: Piracetam
• Venosmil, Atopiclair, Rexta
Endrolin, Durolane, Rillus
Kalferon, Brexel, Paloxi, Leucogen
Hepavax Vimax,
Hepavax,
Vimax Connection Shield
Synbio Extraneal, Home Choice,
Aloclair, Biogaia, Flexasur
• Cetinal, Merofen, Mikasin, Hexavask, Trolit, Ferokid
Likurmin, Osmin, Enystin, Ibufenz, Neo Gynoxa,
Domet, Osfit DHA, Pregnasea, Vomilat, Hexalgin
Invitec,Lancid, Divask,Car-Q, Metisol, Nevox, Spirola
CPG, Serolin, Remelox, Ossotin, Buvanest, Roculax
Elanos, Totilac, Kalbiotic, Kalmicetin, Fritens, Gabbryl
Redutens, Remelox, Glunor, Nefrofer, Beta One,
Fordiab, Ibukal, Corhinza, Flamenac, Hexacort,
Lysin-Ku
• Hydrocortisone, Domperidone, Ketoprofen
Methylprednisolone
• 2009 : 1-2
1 2 products
• 2009 : 5-10
5 10 products
• 2009 : 1-2
1 2 products
Business Overview
Prescription Pharmaceuticals
Kalbe is the number 1 player in prescription pharmaceuticals market
Prescription Pharmaceuticals Market Share
KALBE GROUP
13%
DEXA MEDICA GROUP
7%
SANBE
7%
* Others *
65%
PFIZER GROUP
4%
SANOFI‐AVENTIS GRP
4%
Total Market= IDR 8,17 T
Note: Prescription Pharma = ITMA ETH (KF+DKS+HJ)
Source:IMS Health, SEM 06 2008
16
Part 3
Business Overview
1.
2.
3
3.
4.
17
Prescription Pharmaceuticals
Nutritionals
Consumer Health
Distribution & Packaging
Business Overview
Nutritionals
Nutritionals
Number of
Products
13 products
Key
Products
• Nutrition for pregnant mothers
g : 61.4% market share
• Prenagen
• Baby biscuits
• Milna : 65.3% market share
• Baby milk
• Morinaga BMT :10.0% market share
• Chil Mil :11.0% market share
Cli i l F
d
• Clinical
Food
• Diabetasol :67.2% market share
Recent
Launched
Products
• Prenagen RTD, Nutrive
Benecol, Nulife Bar
Planned
Products
Launches
• 2009 : 5-8 products
Various nutritional supplement
for adult, baby and toddlers.
Source: AC Nielsen Data 06 2008, for % share in volume
18
Business Overview
Nutritionals
Nutritionals Market Share
Others
3%
Fonterra
6%
Mead Johnson
5%
Nutrifood
3%
Gizindo
2%
Nestle
30%
Abbott
5%
Wyeth
5%
Nutricia
8%
Kalbe Nutritionals
9%
Sari Husada
Sari
Husada
15%
FFI
11%
Total Market = IDR 8.5T
仌
Note:
1.Source: AC Nielsen data SEM Q2 2008
2. Nutrition Division consist of: baby biscuits, baby cereal and powder milk
19
Part 3
Business Overview
1.
2.
3
3.
4.
20
Prescription Pharmaceuticals
Nutritionals
Consumer Health
Distribution & Packaging
Business Overview
Consumer Health
OTC Pharmaceuticals
Number of
Products
• 2 products
Key
Products
• Antacid (Promag & Waisan)
85.4% market share
• Cough Remedies (Woods,Komix, Mextril)
45.7% market share
• Anti-diarrhea (Neo Entrostop)
43.4 % market share
• Cold Remedies (Procold, Mixagrip)
36 4% market share
36.4%
Recent
Launched
Products
• Cro Gold, Cri Xcel, Cri Active
• Promag Double Action
• Kalpanax Cream 5 gr
g Viro , Fatigon
g Hydro+
y
• Fatigon
• Extra Joss (Cream Soda, Apple, Blackcurrant)
• Joss Fit
• 2009 : 1 product
• 2009 : energy drink line extension
Planned
Products
Launches
21
• 28 products
Energy Drink
Source: AC Nielsen Data 06 2008, for % share in volume
• Extra Joss
30% market
k t share
h
– volume
l
(I
(Indonesia)
d
i )
Business Overview
Consumer Health
OTC Pharmaceuticals Market Share
Energy Drink Market Share
Others
8%
KALBE GROUP
16%
TEMPO GROUP
9%
** Others *
Oth *
58%
Total Market = IDR 6,25 T
Source: AC Nielsen for Energy Drink Market SEM 06 2008
22
M‐150
8%
Kuku Bima
14%
SOHO GROUP
8%
PHAROS GROUP
4%
IMS for OTC - ITMA, SEM 06 2008
Extra Joss
30%
KONIMEX
5%
Hemaviton
18%
g
Krating Daeng
22%
Total Market = IDR 760.3 Bn
Part 3
Business Overview
1.
2.
3
3.
4.
23
Prescription Pharmaceuticals
Nutritionals
Consumer Health
Distribution & Packaging
Business Overview
Distribution & Packaging
Kalbe has the most extensive distribution network of any pharmaceutical
company in
Indonesia and distributes products for some of the leading healthcare companies in the world
Distribution Business Major Third Party Principals by Category
Prescription Pharma
24
Consumer
Medical Instrument
Fine Chemical
& Diagnostic
Raw Materials
Business Overview
Distribution & Packaging
Distribution Revenues by Composition Sep 2007
3rd Party
23%
Distribution Revenues by Composition Sep 2008
3rd Party
23%
Kalbe
77%
Kalbe
77%
Packaging Revenues by Composition Sep 2007
3rd Party
55%
Packaging Revenues by Composition Sep 2008
Kalbe
35%
Kalbe
45%
3rd Party
65%
Part 4
Operational Overview
26
Operational Overview
Marketing
g & Sales Infrastructure
Kalbe has a marketing and sales force of approximately 6,000 providing coverage for more
than 1 million outlets in Indonesia
Infrastructure
Distribution
27
Comments
• Sales force of over 2,200
• Directly cover 150,000 outlets
• Indirectly covers over 1 million
outlets or approximately 80% of
total consumer health market
• Largest sales force in Indonesia
• Most developed telemarketing team in the
nutritionals sector
• Over 2,000 medical
representatives
• Market coverage
70% of GP market
90% of specialist market
100% of hospital coverage
100% of pharmacy coverage
• Largest sales force in Indonesia
• Over 1,800 sales and marketing
personnel
• Total of 4,500 employees
• 60 marketing
k ti branches
b
h
throughout Indonesia
• 40 distribution centers
• 1,000 trucks
• 500 motorcycles
• 80% of consumer health market
•100% of prescription pharma
market
• 24-hour order fulfillment for consumer
health products
• 4-6 hour order fulfillment for prescription
pharmaceutical
h
ti l products
d t
• 24-hour service for life saving drugs
• Direct delivery to end customers
• Offers value added services to customers:
Resource management
Needs-basis marketing services
Consumer
Health
Prescription
Pharma
Indonesian Coverage
Operational Overview
Manufacturing
a u actu g Infrastructure
ast uctu e
Kalbe operates 11 GMP facilities that are compliant with international standards, with an
additional 1 facility under construction
Facility
Bldg
2
Area (m )
Production Lines
Licensees Certification
Astellas
ISO9001 ISO14001
ISO9001,
ISO14001,
OHSAS18001
448
42,684
9 lines of Non Beta Lactam products
(tablet, capsule, cream, liquid oral, injection)
41
17,232
3 lines; effervescent, powder & liquid
–
ISO9001, ISO14001,
OHSAS18001, HACCP
Dankos Farma
189
14,905
3 factories; Non Beta Lactam, Penicillin &
Cephalosporin lines
Daiichi
ISO9001, ISO14001,
OHSAS18001
Sanghiang Perkasa
132
11,869
6 lilines (4 lilines sachet,
h 1 liline tin,
i 1 liline mixed
i d
sachet)
Morinaga
ISO9001 ISO14001
ISO9001,
ISO14001,
HACCP, OHSAS18001
67
7,000
Line Non Beta Lactam products & penicillin
–
–
143
3,400
3 lines; solid, liquid oral, and semi solid
(Non Beta Lactam products)
–
ISO9001
24
2,500
Large volume Parenteral Line
Baxter
ISO9001
900
7,506
18 lines incl packaging & printing
–
–
Avesta
2,700
8,414
25 lines incl sliting, printing
–
–
Indogravure
2,714
6,477
10 lines incl printing
–
–
19
33,733
1 wet – drier line, 1 can line, 2 sachet lines
Morinaga
–
–
5,000
2 lines: tablet and cream
–
NAFDAC (local FDA)
Kalbe Farma
Bintang Toedjoe
Saka Farma
Hexpharm Jaya
Fima
Kageo Igar Jaya
Kalbe Morinaga
Orange Kalbe Ltd ⊥
28
Products
Manufactured
Part 5
Growth Drivers
29
Growth Drivers
Development
p
of Prescription
p
Pharmaceuticals
Portfolio
Planned
Product Launche
es
Key
Opportunities
Licensed
30
♦ Key therapeutic targets
for NCEs
– Oncology
– Cardiology
– Neurology
– Endocrinology,
– Critical Care
– Human vaccine
– Biotechnology
– Dental products
– Ophthalmology
2008: 3 products
Branded Generics
Generics
♦ In-house drug delivery system
– Key target areas: cardiology,
neurology, endocrinology,
analgesic, dental products
♦ In-house formulation
– Key target areas: cardiology,
neurology, endocrinology,
analgesic, dental products,
ophthalmology, respiratory,
anti aging, kidney
♦ Key therapeutic
targets
– Antibiotics
– Analgesic
– Gastrointestinal
– Respiratory
2008: 10 products
2008: 5 products
Innogene
♦ Bio-generics market
♦ Proprietary drug development
♦ TheraCIM / Nimotuzumab (anti EGFR/HER1 MAb)
– Phase III
– Target market: Glioma, Nasopharyngeal Carcinoma,
Cancer of the Head and Neck, pancreatic, lung, etc.
– Very similar to Erbitux: same mechanism but much less
side effects (e.g: pimples)
– To be marketed in 2009
♦ 1E10 (N
(N-glycolyl
glycolyl containing ganglioside MAb)
– Phase III trial start in Singapore, South Korea & Taiwan
– Target market: NSCLC, Breast cancer
– Est. launch in 2010–2012
♦ Kalsolac (Lactate-based pharma)
– Approved for resuscitation post cardiac surgery (New
Zealand) & Traumatic Brain Injury (EU)
– Target mkt: Traumatic Brain Injury, Cardiology and Stroke
– Has been launched in Indonesia as Totilac ((Apr
p 2006)) and
the Philippines (Nov 07) for Heart surgery patients
– Potentially able to repair/improve neurological function
after suffering from brain trauma
– Australia application for compositional patent is in progress
Growth Drivers
Development of Nutritionals and Consumer Health
Products Portfolio
Nutritionals
Key
Opportunities
31
• International market and
brand expansion
- Prenagen
- Entrasol
- Diabetasol
- Nutrive Rellax
OTC Pharmaceuticals
• Preventive products
• Balance products:
antioxidants immune system
antioxidants,
, probiotic, and appetite
stimulation
• Beauty products:
skin care, anti-aging, body
shape,
p , mouth and teeth,,
varices
• Isotonic drink:
Fatigon Hydro+
Energy
gy Drink
• International market and
brand expansion
- Extra Joss
- Joss Fit
Growth Drivers
Expansion in South East Asia
Kalbe continues to leverage its deep local market knowledge and well established brands into
other major Southeast Asian markets
SINGAPORE / MALAYSIA
PHILIPPINES
THAILAND
VIETNAM
32
♦ Brand building of Woods and Milna
♦ Marketing and brand building of Extra Joss
♦ Marketing Bio-Generic products in the very near
future
♦ Marketing of selected prescription
pharmaceuticals, OTC pharmaceuticals,
and energy drink products
Part 6
Financial Overview
33
Financial Overview
Revenues, Operating Income, and Net Income from 2005 - 2007
Revenues
7500
Operating Income
766.5 800
1140.0
750
1120.0
7000
661.1
6500
7004.9
700
650
603.9
6000
600
6071.5
5500
5870 9
5870.9
5000
2005
2006
2007
in Rp (Bio)
p( )
in USD (Mio)
123.6
116.7
1129.4
Net Income
125.0
120.0
115.0
109.0
1071.3
1060.0
550
1040.0
500
1020.0
1060.0
700.0
110.0
620.0
105 0
105.0
100.0
2005
2006
2007
in Rp (Bio)
in USD (Mio)
676.6
660.0
640.0
80.0
705.7
75.0
70.0
64.4
65.0
626.1
600.0
580.0
60 0
60.0
55.0
2005
2006
2007
in Rp (Bio)
in USD (Mio)
Note :
• Based on audited financial reports
• Financial reports converted at average exchange rates as of US$1=IDR 9,721.65 in year 2005, US$1= IDR 9,183.77 in year 2006,
and
d US$1=
US$1 IDR 9,38.50
9 38 50 in
i year 2007.
2007
34
77.2
73.7
680.0
1100 0
1100.0
1080.0
720.0
Financial Overview
in IDR (Billlion)
Revenue, Gross Profit, Operating Income, and Net Income
YTD September 2008
5,718 ∆ 10.96%
5,153
∆ 6.42%
2,803
2,634
932
605
YTD Sep 2007
Revenues
Gross Profit
Gross Profit
Note:
• Based on Financial Report Third Quarter 2008 (unaudited)
35
∆ -12.23%
504 ∆ -16.69%
818
YTD Sep 2008
Operating Income
Operating Income
Net Income
Net Income
Financial Overview
Revenues Contribution by Division
YTD September 2008
Revenues Contribution
YTD September 2007
Distribution & Pack
& Pack.
24%
Consumer Health
27%
Revenues Contribution
YTD September 2008
Prescription p
Pharma
26%
Nutritionals
Nutrition
23%
23%
Note:
• Based on Financial Report Third Quarter 2008 (unaudited)
36
Distribution & Pack.
26%
Consumer Health
22%
Prescription Prescription
Pharma
27%
Nutrition
Nutritionals
25%
25%
Financial Overview
Revenues by Division
YTD September 2008
5,718
5,153
1,334
1 570
1,570
∆ 17.69%
P
Prescription
i ti Pharma
Ph
Prescription Pharma
1,180
1,418
1,372
∆ 20.17%
N t iti
Nutritionals
l
Nutrition
∆ -7.51%
CConsumer Health
Consumer
H
Health
lth
YTD Sep 2007
Note:
• Based on Financial Report Third Quarter 2008 (unaudited)
• in IDR Billion
37
1,269
YTD Sep 2008
1,266
1 461
1,461
∆ 15.40%
Di t ib ti &
Distribution
Distribution & Pack.
Packaging
∆ 10.96%
T TOTAL NS
Total
t l Revenues
R
KALBE FARMA TBK.
=============================================================
CONSOLIDATED INCOME STATEMENTS HIGHLIGHTS
In IDR Billion
Jan – Sep 2008
% to NS
Jan – Sep 2007
% to NS
% Growth
NET SALES
5,718
100.0%
5,153
100.0%
11.0%
COGS
2,915
51.0%
2,519
48.9%
15.7%
GROSS PROFIT
2,803
49.0%
2,634
51.1%
6.4%
1,615
329
41
1,985
28.2%
5.8%
0.7%
34.7%
1,397
271
34
1,702
27.1%
5.3%
0.6%
33.0%
15.6%
21.3%
21.8%
16.6%
OPERATING INCOME
818
14.3%
932
18.1%
-12.3%
NET INCOME
504
8 8%
8.8%
605
11 7%
11.7%
-16.6%
16 6%
OPERATING EXPENSES
Selling
General & Admin.
R&D
TOTAL OPERATING EXPENSES
Note:
• Based on Financial Report Third Quarter 2008 (unaudited)
38
KALBE FARMA TBK.
=============================================================
CONSOLIDATED BALANCE SHEETS HIGHLIGHTS
In IDR Billion
30 Sep 2008
30 Sep 2007
% Growth
Cash & cash equivalent
916
1 091
1,091
-16.0%
16 0%
Short-term investment, net
155
243
-36.2%
Trade receivables
977
845
15.6%
Other receivables
72
69
4.3%
1,763
1,433
23.0%
Other current assets
435
400
8.8%
TOTAL CURRENT ASSETS
4,319
4,081
5.8%
TOTAL NON-CURRENT ASSETS
1,449
1,353
7.1%
5,768
5,434
6.1%
ASSETS
CURRENT ASSETS
Inventories, net
TOTAL ASSETS
Note:
• Based on Financial Report Third Quarter 2008 (unaudited)
39
KALBE FARMA TBK.
=============================================================
CONSOLIDATED BALANCE SHEETS HIGHLIGHTS
In IDR Billion
30 Sep 2008
30 Sep 2007
% Growth
119
539
41
217
330
261
1,507
44
408
32
182
417
5
1,088
170.4%
32.1%
28.1%
19.2%
-20.9%
5120.0%
38.5%
98
359
-72.7%
1,605
1,447
10.9%
700
617
13.5%
EQUITY
3,463
3,370
2.8%
TOTAL LIABILITIES & EQUITY
5,768
5,434
6.1%
LIABILITIES
CURRENT LIABILITIES
Short-terms loans
Trade Payables
Other Payables
Accrued Expenses
Taxes Payables
Current Maturities of Long-Term Debts
TOTAL CURRENT LIABILITIES
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
MINORITY INTERESTS
Note:
• Based on Financial Report Third Quarter 2008 (unaudited)
40
KALBE FARMA TBK.
=============================================================
CONSOLIDATED CASH FLOWS STATEMENTS HIGHLIGHTS
In IDR Billion
Jan - Sep 2008
Jan - Sep 2007
% Growth
NET CASH from:
Operating Activities
Investing Activities
Financing Activities
378
(156)
(442)
188
(25)
(339)
101.1%
524.0%
30.4%
NET DECREASE IN
CASH AND CASH EQUIVALENTS
(220)
(173)
27.2%
1,116
1,261
-11.5%
916
1,091
-16.0%
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS
AT THE END OF YEAR
Note:
• Based on Financial Report Third Quarter 2008 (unaudited)
41
Part 7
Recent Activities
42
Recent Activities
RISTEK-KALBE SCIENCE AWARDS :
Kalbe Farma together with Indonesian Ministry of Research &
Technology has held Recognizing Scientific Achievement event.
The event was held on Oct 31,2008 at Four Seasons Hotel.
Kalbe Nutritionals launched Nutrive Benecol, the world’s first
liquid cholesterol control in the form of smoothie (blend of
milk and fruit juice).
PT. Kalbe Farma launched anti-agregation platelet CPG (Clopidogrel
bisulfat) product.
Grand launching of Kalbe Eco-Friendly Data Center, Jakarta on 8 Aug
2008, partnering with IBM to reduce energy consumption.
43
Recent Activities
Shares Buyback
Shares Buyback Phase I
Phase I has ended on August 7, 2008.
T t l repurchased
Total
h
d shares
h
iin Ph
Phase I iis 4
4.9%
9% off ttotal
t l iissued
d and
d ffully
ll paid
id capital.
it l
The average cost price/share was IDR 1,065.
Total fund used for the share repurchase amounting Rp 529,595,289,950.
Shares Buyback Phase II
Approved by Company’s
Company s EGMS held on September 17,
17 2008.
2008
Share Buyback Phase II has started on September 17, 2008 and shall end on March 16, 2010.
Maximum repurchased shares in Phase II was 5,1% of total issued and fully paid capital.
The fund reserved for the repurchased shares is IDR 419.9 billion.
Number of repurchased shares during Phase II is 0.16% of total issued and fully paid capital.
Total Number of repurchased shares during Phase I and II is 5.06% of total issued and fully paid
capital.
Shares Buyback Based on Bapepam & LK Regulation No. XI.B.3
Based on Bapepam & LK Regulation No. XI.B.3. on “Repurchase of Shares Issued by Issuers
or Public Companies in the Potential Crisis Market Condition”
Condition .
Maximum repurchased shares is 14.94% of total issued and fully paid capital.
The fund reserved from the repurchased shares is IDR 941 billion.
44
Part 8
Future Outlook
45
Future Outlook
• Kalbe Farma has designed its business portfolio on 8 footholds:
Kalbe Farma Tbk
Pharma
Consumer
Nutrition
Logistic
MIDI
Health
Services
• Strengthen and expand Kalbe
s business portfolio.
Kalbe’s
portfolio
• Optimize and improve productivity and supply chain.
• Increase research and developments activities.
• Expand
E
d distribution
di t ib ti
and
d selling
lli areas.
• Develop competent leaders.
46
International
Business
Packaging
THANK YOU
Important Notice
This presentation has been prepared for informational purposes only by PT Kalbe Farma Tbk. (“Kalbe” or the “Company”).
The information contained in this Presentation does not purport to be all-inclusive or to contain all of the information that may be material to
an investor’s decision. It should be noted that the information contained in this Presentation is subjected to further review, and that such
information may be updated and/or amended from time to time as circumstances change or more information becomes available.
available Some of
those revisions or changes may be material.
Each recipient of this Presentation should therefore perform their own independent analysis of the business, operations, financial condition,
creditworthiness, status and affairs of Kalbe. Each recipient should also conduct their own enquiries into the adequacy, accuracy, and
completeness of any information relating to Kalbe, as the information and data contained in this Presentation are not substitutes for the
recipient’s independent evaluation and analysis.
This presentation is not an offering document and will be updated regularly according as necessary.
47