Pasar Farmasi Indonesia - Kalbe Farma
Transcript of Pasar Farmasi Indonesia - Kalbe Farma
Company UpdateAudited FY December 2014
March 2015
2
Forward 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 31 December 2014 audited 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 31 December 2014 audited 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 futureoperations (including development plans, objectives relating to the Company's products and services and anticipated product launches) areforward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's 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 Company'sexpectations 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.
Table of Contents
3
Corporate Overview 4
Market Overview 7
Business Overview 11
Financial Overview 29
Strategies and Outlook 2015 35
Appendix 40
SECTION 1
Corporate Overview
Not all collagen is the same, it’s
time to choose the right one
Domestic95%
Export5%
Prescription Pharmaceuticals
25%
Consumer Health17%
Nutritionals26%
Distribution & Logistics
32%
• 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 FY December 2014
is as follows:
Largest Publicly-Listed Pharmaceuticals Company in Southeast Asia
Total Sales = Rp 17,369 Bn Total Sales = Rp 17,369 Bn
Corporate Overview
5
Corporate Strategy
6
Kalbe has a long track record of sustainable growth
6
0
200
400
600
800
1000
1200
1400
1600
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
(US
D m
m)
0
5,000
10,000
15,000
20,000
(IDR
bn
)
Sales USD Sales IDR
1966 1977 1985 1989 1991 1993 20051981 1994 1995 1997 2007 2010
1966:Company founded
1977:Strengthen pharmabusiness by establishing Dankos Lab
1981:Spin-off the distribution business to PT Enseval due to government regulation
1985:Expansion to consumer health through acquisition of BintangToedjoe and in pharmathrough HexpharmJaya acquisition
1989:Igar Jaya and DankosIPOs
1991:Kalbe Farma IPO
1993: Strengthening
nutritionals business by acquiring Sanghiang Perkasa and consolidating nutritional business to SanghiangPerkasa
1994: Entered
energy drink business
EPMT IPO
1995: Disposed of 50% of food business (PT Bukit Manikam Sakti) to Arnotts
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
2005:Consolidation of Kalbe Group
2006
2006:Scale through mergers and acquisitions
2007: Launch of new corporate
logo as part of transformation process
Products entered every ASEAN countries (except Laos)
Opening of the Stem Cell and Cancer Institute
Implementation of end-to-end supply chain management
Integrated information technology systems
2010: Disposed of Kageo Igar Jaya Established a joint venture
company, Asiawide Kalbe Philippines Inc.
Inaugurated Panca SradhaKalbe as our Corporate Values
Inception and Entrepreneurial
Driven Expansion1966–1995
Enhanced Focus and Consolidation1996–2005
Regionalization2006–2015
2011
2011: EPMT Rights Issue to
finance expansion Increased dividend
payout ratio to 50%
2012
2012:♦ Generic production
facility came on stream
♦ Acquired PT Hale International
♦ Established a joint venture company PT Kalbe Milko Indonesia
2013
2013: Cancellation of
the Company’s Treasury Stocks 0f 7.7%
2014
2014: Completion of
Kalbe’soncology factory
SECTION 2
Market Overview
Not all collagen is the same, it’s
time to choose the right one
• Low healthcare expenditure to GDP.
Indonesia’s Health Spending Trends
8
JKN Coverage Roadmap
• National Health Insurance (Jaminan
Kesehatan Nasional or JKN) program has
commenced in January 2014, and covered
more than 50% of the population in 2014. JKN
targets to cover the entire Indonesian
population by 2019.
133 mnpeople *
Target 170 mn people
Target 250 mnpeople
100% coverage
* Including 76.4 mn people covered by Jamkesmas program
before the launch of JKN.
Source : Roadmap to National Health Insurance 2012 - 2019
20152014
2019
3.3%
4.1%
4.2%
4.3%
5.5%
5.8%
9.6%
18.0%
Indonesia
India
Thailand
Malaysia
China
Singapore
United Kingdom
United States
Healthcare Expenditure/GDP 2013 (%)
Source : Centers for Medicare & Medicaid Services, Office of the Actuary; United Kingdom :
Healthcare Report, Economist Intelligence Unit; Kementerian Kesehatan Indonesia, China;
Singapore Government Budget; Economic Survey, India; Frost & Sullivan
6.8 7.9 8.9 10.5 12.2
12.113.1
14.515.9
18.2
2009 2010 2011 2012 2013
Private Expenditure
Public Expenditure
21.123.4
26.4
30.4
19.0
Total Healthcare Expenditure
(USD Bn)
Source : Global Health Expenditure Database, WHO
CAGR
12.5%
38.6 43.2 47.653.8 58.2
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Pharmaceuticals Market Breakdown
9
Kalbe – No. 1 in the Pharma Industry
Kalbe continues to lead in the highly fragmented pharmaceuticals
industry with over 200 players
Total Market FY 2014 Rp 58.2Tn
OTC
41%
Ethicals
(Prescription)
59%
Branded &
Licensed
84%
Unbranded
16%
Pharma Market Breakdown
Pharma Industry
CAGR
10.8%
Market Share
Kalbe 13%
a 6%
b 5%
c 4%
d 4%
Others 68%
(in trillion Rupiah)
Source: IMS Health ITMA YTD 12 2014
Note: Restatement of 2012 IMS market data
Recent Indonesian Pharmaceuticals
Regulatory
10
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.
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.
Price Caps on Key Generic Drugs
National Healthcare Insurance System
Local Production Facilities Requirements
10
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.
SECTION 3
Business Overview
Not all collagen is the same, it’s
time to choose the right one
• No. 1 player in Indonesian Prescription Pharma Market.
• The largest medical representatives team in Indonesia with
more than 2,500 personnel.
• Comprehensive product offerings for all income groups.
• Increasing competition following national insurance
implementation.
• Gross Profit Margin (GPM) increased from 60.8% in YTD 12
2013 to 61.1% in YTD 12 2014, mostly due to product mix.
12
Prescription Pharmaceuticals Division
Consistent Top Line Growth
+11.9%
Total Sales Rp 4,329 Bn
Market Share (ITMA)
FY 2014
Total Market = Rp 34.6Tn
KALBE GROUP
15%
a8%
b6%
c4%
d4%
e4% f
3%
OTHERS56%
Source: IMS Health Prescription Pharmaceuticals
YTD 12 2014
3,869 4,329
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
Licensed Products
27.0%
Unbranded Generics
13.4%
Branded Generics
59.7%
• Completed the first oncology factory in
Indonesia in 2014
• Commercialization started in Q3 2014
• Starting building competence in stem cells
and genomics
Prescription Pharmaceuticals Division
Penetrating further in the unbranded
generics market
13
Growth Drivers
Expanding licensed products from multinational
companies to gain technology transfer
Strengthening presence in
specialty products
• Selection of focused categories to achieve scale
• Utilization of dedicated unbranded generic plant
Stem Cells and
Cancer Institute
14
Consumer Health Division
Strong Brand Equity with Leading Market Position
Market share of Kalbe’s brands
Source : AC Nielsen YTD 12 2012 and Company’s estimation 2014, in volume
Therapeutic Class Kalbe’s Products Market Share 2014
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 Extra Joss 27.0%
KALBE GROUP
9%
a8%
b7%
c7%
d6%
e4%
f3%
g3%
Others52%
• No. 1 Player in OTC market and No. 2 in
Energy Drink category.
• GPM increased from 53.3% in YTD 12 2013 to
55.6% in YTD 12 2014, due to product mix.
Consumer Health Division
15
Strong Net Sales Performance
Energy Drink
YTD 12 2014 (Unit)
OTC
YTD 12 2014
Total Market = Rp 23.6 Tn
Source : IMS Health OTC YTD 12 2014
+16.7%
Source : AC Nielsen YTD 12 2012 and Company’s estimation 2014, in volume
2,505 2,924
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
Extra Joss27%
a37%
b13%
c7%
d3%
others13%
16
Consumer Health Division
Innovative New Products
Hydro CocoAn isotonic drink made of real coconut water
Original Love JuiceFresh bottled fruit juice made of quality fruits available in pomegranate, orange, guava, apple, and soursop flavors
H2 – Health and HappinessSupplement product for skin care
Promag Fruity 4sAntacid tablet with fruit flavors
NitrosConcentrated energy drink in liquid form with convenient tube packaging
Extra Joss BlendNew variant of energy drink with added powdered milk in sachet packaging
Promag GazeroHerbal remedy to relieve flatulence
Woods HerbalHerbal cough syrup
Bintang Toedjoe Masuk AnginTraditional herbal remedy for common cold symptoms
Herbal Products
17
Complete Range of Nutritional Products
TeenExpecting Lactating Baby Toddler Kid Tween 25+ 35+ Clinical
• Catered to expecting & lactating mothers, babies, toddlers, children, tweens and
adults.
Nutritionals Division
Nutritionals Division
18
Growth of Indonesian Powdered Milk Market
Source : AC Nielsen, YTD 12 2014
By Value (Rp Bn)By Volume (Kg ‘000)
10.4%2.2%
187,387 183,317
FY 2013 FY 2014
17,947
19,820
FY 2013 FY 2014
Nutritionals Division
19
Strong Net Sales Performance
+20.8% • Strong brand awareness of existing major
products
• GPM declined to 54.8% in YTD 12 2014 from
60.3% in YTD 12 2013, mostly due to higher
raw material cost in inventory, Rupiah
depreciation and product mix.
Powdered Milk Market Share YTD 12 2014
Total Market = Rp 19.8 Tn
Source : AC Nielsen 2014, based on Value (Rp)
Kalbe’s Products Market Share 2014
Diabetasol 88.0%
Milna 68.8%
Prenagen 55.4%
Morinaga Chil Mil 9.2%
Morinaga BMT 10.9%
Entrasol 9.7%
Morinaga Chil Kid 6.8%
Zee 6.5%
Morinaga Chil School 2.7%
3,792 4,581
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
a29%
b24%
c13%
Kalbe Nutritionals
11%
d7%
e5%
f2%
g3%
h2%
i2%
Others2%
Launching of New Products
20
Nutritionals Division
Diva
Nutrive Benecol
Smoothie with special ingredient to lower cholesterol
Fitbar
A healthy snack bar with low calories, zero cholesterol and
zero trans fat.
Health drink with collagen and antioxidant for skin care
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.
Multi Channel Customer Touch Points
21
Nutritionals Division
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.
Distribution & Logistics Division
22
The Most Extensive Distribution Network
Branches
70 51CitiesRDC
2
17,012
1,930 687
11.3%
4.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
-
5,000
10,000
15,000
20,000
Net Sales Gross Profit Income Before Tax
23
Net Sales Performance on Consolidated Basis
• Distribution & Logistics Division is run under
PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly
listed company (91.75% owned).
• Net sales represents the 3rd party product sales and
distribution margin of internal product sales for consolidated
accounting purposes.
• GPM slightly increased to 30.6% in YTD 12 2014 from 29.2%
in YTD 12 2013.
Distribution & Logistics Division
-5.2%
(Figures in Rp Bn)
Gross profit margin
Income before taxmargin
Distribution Business Details on Stand Alone Basis
Kalbe Group 70%
3rd Party Principals 18%
Medical Devices 4%
Raw Material Trading 8%
5,836 5,535
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
Major Third Party Principals by Category
Prescription
Pharmaceuticals Consumer
Medical Instrument
& Diagnostic
Fine Chemical
Raw Materials
Distribution & Logistics Division
24
Distribution & Logistics Division
25
Growth Drivers
Medical Devices is an area of potential
growth, especially in the implementation
of National Healthcare Insurance
System where demand for medical
devices is projected to grow further.
Net Sales (in Rp Bn)
Retail Health Services : 83 Mitrasana Clinics
• Developing Mitrasana Clinics as a
one-stop service with 4-in-1
concept, including family doctor,
pharmacy, laboratory, and
convenient store.
• A 100% owned subsidiary of EPMT.
• To date, Kalbe has opened 83
Mitrasana clinics in Jakarta and its
Greater Area.
Medical Devices
673
915 870 969
1,142
742
2009 2010 2011 2012 2013 2014*
* Discontinued tender business in 2014
• 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
Indonesia
4. Expand warehouse capacity
• Collaborating with sub-distributors to gain territorial expansion
Distribution & Logistics Division
26
Strengthening Distribution Network
• New branches in Banyuwangi and Bandung
• Upgraded branches in Bandar Lampung, Tangerang, Surabaya,
Balikpapan and Jambi
2014 overview
Bandar Lampung
Tangerang
Surabaya
Marketing and Sales Infrastructure
27
The largest sales force for Pharma and Consumer Health in Indonesia
Prescription
PharmaceuticalsConsumer Health Nutritionals
Distribution &
Logistics
Infra-
structures
Indonesia
Coverage
Comments
• Over 2,500 medical
representatives
• Over 1,100 marketing
personnel
• > 2,000 sales &
marketing personnel
• Total of > 5,000
employees
• 70 marketing branches
throughout Indonesia
• 46 branches & 24 at
subsidiaries
• > 1,000 trucks
• > 500 motorcycles
• Directly cover
200,000 outlets
• Products available in
over 1mn outlets or
80% of total
consumer health
market
Market coverage
• 70% of GP market
covered
• 90% of specialist market
covered
• 100% of all hospitals
covered
• 100% pharmacy
coverage
• Largest marketing
team in Indonesia
• Approximately 1,100
marketing and sales
force
• Market Coverage
throughout Indonesia
• Most developed
telemarketing team in
the nutritional sector
• 80% of consumer
health market
•100% of prescription
pharma market
• Largest sales force in
Indonesia
Manufacturing Infrastructure
28
Operates 9 GMP facilities complying with international standards
FacilityProducts
Manufactured
Building Area
(m2)Production Lines Licenses Certification
Kalbe Farma 435 91,81914 lines (tablet, capsule, cream, liquid oral,
injection)Astellas
ISO 9001, ISO 14001,
OHSAS18001
Bintang Toedjoe 49 20,849 3 lines; effervescent, powder & liquid --ISO 9001, ISO 14001,
OHSAS18001, HACCP, SMK3
Dankos Farma 189 23,1014 factories; Non-betalactam, Penicillin &
Cephalosporin, Oncology lines
Daiichi,
Samyang
ISO 9001, ISO 14001,
OHSAS18001
Sanghiang Perkasa 132 51,403 8 line dry - powdered miilk MorinagaISO 9001, ISO 14001, HACCP,
OHSAS18001
Hexpharm Jaya 85 16,533 Solid tablet (Non-betalactam products) --ISO 9001, ISO 14001,
OHSAS18001
Finusolprima Farma 26 10,700
Large volume parenteral (LVP) in glass bottle
line, LVP in flexy bag line, Haemodialysis
Solution Line
BaxterISO 9001, ISO 14001,
OHSAS18001
Kalbe Morinaga 19 33,733 1 wet - drier line, 1 can line, 2 sachet lines MorinagaISO 9001, ISO 22000, OHSAS
18001
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
SECTION 4
Financial Overview
Not all collagen is the same, it’s
time to choose the right one
3,869 2,505
3,792
5,836
16,002
4,329 2,924
4,581 5,535
17,369
Prescription Pharmaceuticals
Consumer Health Nutritionals Distribution & Logistics
Consolidation
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
Consolidated Sales
30
Consistent Top Line Growth of Internal Kalbe Products
11.9%16.7%
20.8%-5.2%
8.5%
Net Sales (in Rp Bn)
Consolidated Operating Performance
31
Stable Operating Margin
• Marketing efforts to drive brand awareness
• Research & development activities to support
product development
Gross Profit Margin Operating Expenses to Net Sales Ratios
Operating Profit Margin
48.0% 48.8%
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
7,679
15.9% 15.9%
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
26.4% 26.9%
4.8% 5.2%
0.8% 0.8%
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
Selling & Marketing
General & Administrative
Research & Development
8,476
+ 10.4%
2,549 2,761
+ 8.3%
32.1% 32.9%
Consolidated Net Earnings
32
Positive Earnings Growth
Income Before Tax
(in Rp bn)
Net Income
(in Rp bn)
• Income before tax margin declined from 16.1% in YTD
12 2013 to 15.9% in YTD 12 2014, mostly due to higher
interest expense and miscellaneous expenses.
+7.4%
• Net income margin slightly declined from 12.0% in
YTD 12 2013 to 11.9% in YTD 12 2014, in line with
lower income before tax margin.
+7.6%
1,920 2,065
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
2,573 2,764
31 Dec 2013 (Audited)
31 Dec 2014(Audited)
16.1% 15.9% 11.9%12.0%
43 45 44 50
48 48 49
142
122 110 115 107
132 125
27 38 35
57 41
50 46
158
129 120 108 114
131 128
2008 (Audited)
2009 (Audited)
2010 (Audited)
2011 (Audited)
2012 (Audited)
2013 (Audited)
2014 (Audited)
Days of Account Receivables Days of Inventories
Days of Account Payables Net Operating Cycle
Working Capital Management
33
Improving Days of Inventory
End-to-end supply chain
management would be
continuously implemented
to overcome any
fluctuation in inventory
Net Operating Cycle has
been decreased by 30 days
from 158 days in 2008 to 128
days in 2014
Improving inventory level
due to stabilizing raw
material price in 2014
No. of days
Solid Financial Position
34
Total Debt and Gearing Ratio Cash & Net Cash Balance
Rp 1.6 Trillion of Net Cash Position
Dividend Payment Capital Expenditure
* For Fiscal Year
* Cash dividend are adjusted for stock split impact
* Capital Expenditure in Rp Billion
340 25 141 205 584 296
7.9%
0.5%2.3% 2.9%
7.2% 3.2%
0.0%
5.0%
10.0%
15.0%
0
300
600
2009 (Audited)
2010 (Audited)
2011 (Audited)
2012 (Audited)
2013 (Audited)
2014 (Audited)
Total Debt in Rp Billion
Gearing Ratio1,562
1,902
2,291 1,860
1,426
1,895
1,222
1,877
2,151
1,655
843
1,598
2009 (Audited)
2010 (Audited)
2011 (Audited)
2012 (Audited)
2013 (Audited)
2014 (Audited)
Cash and Cash Equivalent in Rp Billion Net Cash in Rp Billion
5.014.0
19.0 19.0 17.026%
51%60%
51%42%
0%20%40%60%80%
0.05.0
10.015.020.0
2009 (Audited)
2010 (Audited)
2011 (Audited)
2012 (Audited)
2013 (Audited)
Cash Dividend* (Rp/share) Dividend Payout Ratio (%)
278 470 469
783 994
781
2009 (Audited)
2010 (Audited)
2011 (Audited)
2012 (Audited)
2013 (Audited)
2014 (Audited)
SECTION 5
Strategies &
Outlook 2015
Not all collagen is the same, it’s
time to choose the right one
36
KALBE Business Strategies
Improve marketing &
sales effectiveness
Go Global - deeper
ASEAN penetration,
more product
offering
Strengthen Quality
Assurance,
Compliance & CSR
Enhance human
capital development
Strengthen business
portfolio through
product innovation &
M&A
2.5 5.014.0
19.0 19.0 17.017%26%
51%
60%
51%42%
0%
20%
40%
60%
80%
0.0
5.0
10.0
15.0
20.0
2008 2009 2010 2011 2012 2013
Cash Dividend* (Rp/share) Dividend Payout Ratio (%)
Cancellation of Treasury Stocks
Corporate Actions
37
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.
Acquisition of PT Hale International
Dividend Payment for Fiscal Year 2013
Kalbe has obtained the approval of the AGMS
on May 14, 2014 to pay dividend of Rp 797 bn,
or equivalent to Rp 17 per share. This reflects a
payout ratio of 42% for financial year 2013.
Dividend has been paid on July 2, 2014.
Historical Dividends
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.
Kalbe has obtained shareholders’ approval for treasury stock cancellation in the EGMS on May 20,
2013.
* Cash dividend are adjusted for stock split impact
38
Corporate Social Responsibility
Certified
Environmental
Management
System
ISO 14001:2004
Environmental Sustainability Consumer Protection
Dedicated Customer
Care Team
Kalbe Cares
Education Health Environment Infrastructure
Looking after our stakeholders
Kalbe Junior
Scientist AwardRistek Kalbe
Science Award
Dr. Boen
Distinguished
Lecture Series
Extended
Producer
Responsibilities
Free Medical
Consultations
Blood Donor
ActivitiesDisaster Reliefs
Community Development
Outlook 2015
39
Capex Rp 1 – 1.3 Tn for production capacity and distribution network expansion.
1. Year-on-year Sales Growth 11% - 13%
2. Operating Profit Margin 16% - 17%
3. Earnings per Share Growth 14% - 16%
4. Dividend Payout Ratio 40% - 50%
Earnings Guidance 2015
* Excluding the impact of product recall
SECTION 6
Appendix 1
Financial InformationYTD December 31, 2014
(Audited)
Not all collagen is the same, it’s
time to choose the right one
Audited Financial Statement
YTD 12 2014
Consolidated Balance Sheets
41
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents 1,426,460,966,674 1,894,609,528,205 32.8%
Trade Receivables, Net 2,145,218,904,462 2,346,943,653,265 9.4%
Other Receivables 128,159,883,954 117,957,876,451 -8.0%
Other Current Financial Assets 187,742,937,561 199,389,672,567 6.2%
Inventories, Net 3,053,494,513,851 3,090,544,151,155 1.2%
Prepaid Value Added Tax 40,855,503,867 13,609,917,516 -66.7%
Prepaid Expenses 55,120,742,321 69,088,895,897 25.3%
Other Current Assets 460,265,998,853 388,661,675,136 -15.6%
TOTAL CURRENT ASSETS 7,497,319,451,543 8,120,805,370,192 8.3%
TOTAL NON-CURRENT ASSETS 3,817,741,823,483 4,304,226,997,537 12.7%
TOTAL ASSETS 11,315,061,275,026 12,425,032,367,729 9.8%
31 December 2013
(Audited)
31 December 2014
(Audited) % Change
Audited Financial Statement
YTD 12 2014
42
Consolidated Balance Sheets
% Change
LIABILITIES
CURRENT LIABILITIES
Short-term Bank Loans 583,823,955,413 251,909,102,153 -56.9%
Trade Payables 1,151,654,579,697 1,133,092,819,659 -1.6%
Other Payables 379,156,683,712 422,739,416,901 11.5%
Accrued Expenses 314,518,392,842 358,667,243,424 14.0%
Taxes Payable 186,953,727,366 184,590,382,675 -1.3%
Short-term Liabilities for Employees' Benefit 24,391,340,352 34,921,207,677 43.2%
Current Maturities of Obligations Under Finance Leases 91,344,366 - -100.0%
TOTAL CURRENT LIABILITIES 2,640,590,023,748 2,385,920,172,489 -9.6%
TOTAL NON-CURRENT LIABILITIES 174,513,285,703 221,636,516,794 27.0%
TOTAL LIABILITIES 2,815,103,309,451 2,607,556,689,283 -7.4%
EQUITY
ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY
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 8,900,997,960,322 16.6%
Others 40,420,603,467 46,392,656,427 14.8%
Sub-total 8,108,241,521,503 9,382,023,164,035 15.7%
Non-controlling Interest 391,716,444,072 435,452,514,411 11.2%
EQUITY, NET 8,499,957,965,575 9,817,475,678,446 15.5%
TOTAL LIABILITIES AND EQUITY 11,315,061,275,026 12,425,032,367,729 9.8%
31 December 2013
(Audited)
31 December 2014
(Audited)
Audited Financial Statement
YTD 12 2014
43
Consolidated Statement of Income
NET SALES 16,002,131,057,048 17,368,532,547,558 8.5%
COST OF GOODS SOLD 8,323,017,600,990 8,892,737,389,731 6.8%
% to NS 52.0% 51.2% -0.8%
GROSS PROFIT 7,679,113,456,058 8,475,795,157,827 10.4%
% to NS 48.0% 48.8% 0.8%
Selling Expense (4,230,293,635,075) (4,670,393,647,550) 10.4%
% to NS -26.4% -26.9% -0.5%
General and Administrative Expense (764,512,533,499) (901,181,791,170) 17.9%
% to NS -4.8% -5.2% -0.4%
Research and Development Expense (135,388,356,694) (143,175,406,909) 5.8%
% to NS -0.8% -0.8% 0.0%
Interest Expense and Financial Charges (28,642,082,811) (52,009,056,900) 81.6%
Interest Income 50,425,100,828 63,367,657,238 25.7%
Other Operating Expenses (51,920,132,128) (97,361,969,697) 87.5%
Other Operating Income 56,072,322,107 91,296,113,044 62.8%
Share in Loss of the Associated Entity (2,331,421,555) (2,636,507,835)
INCOME BEFORE INCOME TAX
BENEFIT (EXPENSE) 2,572,522,717,231 2,763,700,548,048 7.4%
% to NS 16.1% 15.9% -0.2%
INCOME TAX EXPENSES, NET (602,070,267,545) (642,609,966,418) 6.7%
% to NS -3.8% -3.7% 0.1%
31 December 2013
(Audited)
31 December 2014
(Audited) % Change
INCOME FOR THE PERIOD 1,970,452,449,686 2,121,090,581,630 7.6%
% to NS 12.3% 12.2% -0.1%
OTHER COMPREHENSIVE INCOME (EXPENSES) 33,791,245,111 8,124,868,452 -76.0%
COMPREHENSIVE INCOME FOR THE PERIOD 2,004,243,694,797 2,129,215,450,082 6.2%
% to NS 12.5% 12.3% -0.3%
Income for the Period Attributable to:
Owners of the Parent Company 1,919,508,370,312 2,064,686,665,442 7.6%
Non-controlling Interest 50,944,079,374 56,403,916,188 10.7%
Total 1,970,452,449,686 2,121,090,581,630 7.6%
% to NS 12.3% 12.2% -0.1%
Comprehensive Income for the Period
Attributable to:
Owners of the Parent Company 1,952,588,559,890 2,072,781,310,118 6.2%
Non-controlling Interest 51,655,134,907 56,434,139,964 9.3%
Total 2,004,243,694,797 2,129,215,450,082 6.2%
% to NS 12.5% 12.3% -0.3%
Earnings Per Share Attributable to
Owners of the Parent Company 41 44 7.6%
44
Consolidated Statement of Income
Audited Financial Statement
YTD 12 2014
31 December 2013
(Audited)
31 December 2014
(Audited) % Change
Audited Financial Statement
YTD 12 2014
Consolidated Statement of Cash Flows
45
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 17,253,943,196,843 18,789,636,782,075 8.9%
Cash Paid to Suppliers and Employees (10,832,003,854,960) (10,796,383,861,185) -0.3%
Cash provided by operations 6,421,939,341,883 7,993,252,920,890 24.5%
Receipts of Claims for Income Tax Refund 5,308,496,966 10,370,282,338 95.4%
Payments of Income Taxes (650,904,671,554) (650,088,972,907) -0.1%
Payments of Other Operating Expenses, Net (4,849,179,513,083) (5,037,408,409,276) 3.9%
Net Cash Provided by Operating Activities 927,163,654,212 2,316,125,821,045 149.8%
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale of Other Current Financial Assets 219,262,900,420 166,425,803,899 -24.1%
Interest Income Received 51,517,056,069 61,535,428,006 19.4%
Proceeds from Sales of Property, Plant, and Equipment 28,053,364,909 40,268,489,225 43.5%
Cash Dividends Received 2,117,000,000 528,222,042
Acquisitions of Property, Plant and Equipment (993,929,398,633) (750,705,865,640) -24.5%
Placements in Other Current Financial Assets (153,574,337,500) (166,513,567,647) 8.4%
Acquisitions from Other Investing Activities, Net (35,592,673,302) (28,044,385,406) -21.2%
Net Cash Used in Investing Activities (882,146,088,037) (676,505,875,521) -23.3%
31 December 2013
(Audited) % Change
31 December 2014
(Audited)
Consolidated Statement of Cash Flows
46
Audited Financial Statement
YTD 12 2014
31 December 2013
(Audited) % Change
31 December 2014
(Audited)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Bank Loans 1,627,390,328,387 2,137,283,946,487 31.3%
Receipts of Capital Contributions from
Subsidiaries' Non-controlling Interest 26,504,394,870 4,887,332,280 -81.6%
Payments of Bank Loans (1,317,770,912,697) (2,430,517,702,602) 84.4%
Payments of Interest Expense and Financial Charge (25,881,719,573) (52,947,596,310) 104.6%
Payments of cash Dividend Company (890,627,320,090) (796,877,075,870) -10.5%
Subsidiaries (10,066,131,762) (12,654,188,558) 25.7%
Payments of Pension Funds (22,541,928,655) (26,355,615,090) 16.9%
Payments of Obligations under Finance Leases (327,347,370) (91,344,366) -72.1%
Net Cash Provided by (Used in) Financing Activities (613,320,636,890) (1,177,272,244,029) 92.0%
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (568,303,070,715) 462,347,701,495 181.4%
Net Effect of Changes in Foreign Exchange Rates of Foreign Currency
Denominated Cash and Cash Equivalents 95,474,047,958 887,720,749 -99.1%
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,829,015,133,005 1,356,186,110,248 -25.9%
CASH AND CASH EQUIVALENTS AT END OF YEAR 1,356,186,110,248 1,819,421,532,492 34.2%
Appendix 2
JKN Information
Not all collagen is the same, it’s
time to choose the right one
48
National Healthcare Insurance(Jaminan Kesehatan Nasional – JKN)
Towards a universal coverage in 2019
Poor & near
poor residents
Categories Monthly Premium
Rp 19,225 / person /month
Formal sector
workers
5% of the salaries and compensations:
• 4% paid by the employers
• 1% paid by the employees(as of July 1, 2015)
Informal
sector
workers
Rp 25,500 (class III) / person /month
Rp 42,500 (class II) / person /month
Rp 59,500 (class I) / person /month
Subsidized
Non-
subsidized
• Mandatory for all Indonesians.
• All participants to pay monthly premium to BPJS Kesehatan as administrator.
Premium Payment
BPJS Kesehatan Card
49
Primary healthcare
facilities
• Improving availability, cost efficiency and
transparency through centralized
electronic procurement
• Electronic tender using price caps as
ceiling price
Health financing on limited resources
National Healthcare Insurance(Jaminan Kesehatan Nasional – JKN)
Secondary &
tertiary healthcare
facilities
Drug Procurement
Out
Patient
In Patient
Primary healthcare
facilities
Capitation system / tariff
per capita Rp 3,000 – Rp
10,000 / person / month
Non Capitation
Rp 100,000 – Rp 600,000
Diagnosis-related group :
fixed payment for a bundling
of treatments & medicines
based on diagnosis
Healthcare Tariff Reimbursement Scheme
THANK YOU
50
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]
Website : www.kalbe.co.id