Pt Kalbe Farma Tbk · IDX:KLBF
Pt Kalbe Farma Tbk — H1 2024 Earnings Presentation
45 slides from Pt Kalbe Farma Tbk's earnings presentation, 2024
Slide 1: Company Update 1H24
Company Update 1H24 PT Kalbe Farma Tbk
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation has been prepared for informational purposes only by PT Kalbe Farma Tbk. (“Kalbe” or the “Company”). This presentation has been prepared solely for use in connection with the release of 30 June 2024 unaudited results of the Company. The information contain
Slide 3: Table of Content
Table of Content • Key Updates 04 • Key Business Strategies 07 • Financial Overview 20 • Appendix 1 27 • Appendix 2 34
Slide 4: Key Updates
y Key Updates
Slide 5: 2024 Key Strategies
2024 Key Strategies Broad-based Growth with Emphasis on Higher Growth Categories Prescription Medical International Consumer Health Distribution Pharmaceuticals Devices Market & Nutritionals & Logistics Innovative Biologics products, Build local manufacturing Bring more products to New potential Exp
Slide 6: Key Takeaways
Key Takeaways Solid Foundation for Future Growth Strategic Partnerships and Investments 1H24 Net 1H24 EPS 7.6% Sales growth 18.4% growth New Product Strategic Partnership with Alliance Pharma Co.,Ltd. Development (Thailand) Zerpidio and Efesa have Radiopharmaceuticals Key Updates Key Risks been comm
Slide 7: Business Strategies
y Business Strategies
Slide 8: Corporate Overview
Corporate Overview More than Half a Century of Providing Wide-Range Healthcare Solutions Market Capitalization The largest publicly-listed pharmaceuticals company in Southeast Asia IDR 71.5 tn ($4.4 bn)* Onwards 1966 1991 free float Established, headquartered The most integrated * Listed in the Indo
Slide 9: Positive Net Sales Organic Growth Post-Pandemic
Positive Net Sales Organic Growth Post-Pandemic Prescription Pharmaceuticals 7.6% 27.7% Net Sales growth - 1H24 Contribution to total net sales From Rp4,196 bn to 4,516 bn Kalbe Unbranded 13% Licensed generics 52.4% 27% 27% a 9% Gross Profit Margin - 1H24 Contribution Market Share b • Decreased from
Slide 10: Driving Future Growth through Strategic Collaborations
Driving Future Growth through Strategic Collaborations Prescription Pharmaceuticals Sustaining Business Expansion through Strategic Partnerships Oncology Livzon Pharma Indonesia Shareholder Agreement Signing Jul 2024 To locally manufacture more advanced pharmaceuticals ingredients for the export mar
Slide 11: Innovative Biologics Products
Innovative Biologics Products Prescription Pharmaceuticals: Specialty Category Approved Novel Biologics Strengthening Portfolio in Zerpidio (HLX10 – Serplulimab) Oncology • Approved in Dec 2023, commercialization in 2024 • Approved by local FDA in Thailand Serplulimab (Zerpidio 100 mg) Signing cerem
Slide 12: Market Recovery Post-Covid Normalization
Market Recovery Post-Covid Normalization Consumer Health 1.3% 14.2% Net Sales growth - 1H24 Contribution From Rp2,293 bn to 2,322 bn to total net sales Kalbe 10% a 3% Health 61.8% Supplement 28% b 3% c 2% d 2% Gross Profit Margin - 1H24 Market Share e 1% • Increased from 61.0% in 1H23 due to lower r
Slide 13: Expanding into Preventive and Wellness Category
Expanding into Preventive and Wellness Category Consumer Health Our Market Share Driving product innovation and new product launches in potential categories Strong Customer Loyalty 72% 46% Antacids Anti Diarrhea (Promag) (Entrostop) 50% 39% Entrostop Komix Woods Mixagrip Procold Sakatonik ABC Promag
Slide 14: Maintaining Top-line Growth in a Challenging Market
Maintaining Top-line Growth in a Challenging Market Nutritionals 0.5% 25.4% Net Sales growth - 1H24 Contribution From Rp4,120 bn to 4,139 bn to total net sales f others Kalbe Specialty e 4% 3% 15% 14% 7% d 51.4% 4% Gross Profit Margin - 1H24 c Market Share Contribution • Increased from 50.2% in 1H23
Slide 15: Expanding to Affordable and Ready-to-Drink Products
Expanding to Affordable and Ready-to-Drink Products Nutritionals Grow above the market New product launches Extensive Portfolio to Serve All Ages and Segments Expecting Mothers Lactating Mothers Kids Teens Adults Senior Clinical Growing above the market new -1.4% 0.5% new Powdered Milk Kalbe Market
Slide 16: Positive Acceptance in Export Countries
Positive Acceptance in Export Countries International Business Pharmaceuticals Highlights Temporary weakness driven by country specific issues such as political instability, restriction of import license and weaker consumer purchasing power Consumer Health 1H24 Nutritionals unaudited Net Sales Growt
Slide 17: The Largest Distribution Network in Healthcare, Supported by Digital Expansion
The Largest Distribution Network in Healthcare, Supported by Digital Expansion Distribution and Logistics 17.1% 32.7% Medical Devices Raw Materials • Managed by PT Enseval Putera Trading Net Sales growth - 1H24 Contribution 5% 8% Megatrading Tbk (EPMT IJ), a From Rp4,569 bn to 5,351 bn to total net
Slide 18: Widest Network in Pharmaceuticals Distribution
Widest Network in Pharmaceuticals Distribution Distribution & Logistics Expanding to Cold-Chain Distribution Business The Most Extensive Distribution Network Established JV Mitra Ananda Megadistrindo +200K Outlets 71 Branches 3 Regional Distribution Centre (RDC) Major Third-Party Principals by Categ
Slide 19: Moving Towards Local Manufacturing/Assembly
Moving Towards Local Manufacturing/Assembly Distribution & Logistics: Medical Devices • Accelerate technology transfer to build local Building Medical manufacturing capabilities Established Surgical Suture Facility Devices Own Brand • Meet the local content requirements for JKN Program Consumables C
Slide 20: Financial Overview
y Financial Overview
Slide 21: Consolidated Operational Performance
Consolidated Operational Performance Sustained Top-line Recovery Net Sales 7.6% In IDR bn (unaudited) 16,328 15,179 17.1% 7.6% 1.3% 0.5% 5,351 4,516 4,120 4,139 4,569 4,196 2,293 2,322 Prescription Pharmaceuticals Consumer Health Nutritionals Distribution & Logistics Total Consolidated Net Sales Jun
Slide 22: Consolidated Operational Performance
Consolidated Operational Performance Sustained Margin Improvement Trend Gross Profit Operating Expenses to Net Sales Net Income 4.7% 18.1% 27.3% 25.5% 40.4% 10.1% 11.1% 40.7% 39.6% 1.4% 1.3% 4.8% 4.5% R&D Expenses G&A Expenses Selling Expenses 6,464 21.1% 19.7% 1,805 6,173 1,529 Jun 23 Jun 24 Jun 23
Slide 23: Working Capital Management
Working Capital Management Securing Product Quality and Availability by Managing Inventory 180 162 154 Managing Net Operating Cycle 160 139 • Inventory level has gradually moderated on 140 129 147 120 track to normalization 120 131 • Consistently managing supply chain challenges and 122 116 100 ensu
Slide 24: Capital Allocation
Capital Allocation Healthy Cash Balance to Support Operation and Business Expansion Total Debt & Gearing Ratio 1,200 5.1% 7.0% Cash & Cash Equivalent 5.8% 1,000 6.0% 7.0% 6,216 3.6% 5.0% 5,590 800 6.0% 5,208 2.6% 2.5% 4.0% 4,050 3,950 600 1,116 5.0% 3,693 1,067 3.0% 3,232 2,833 2,656 2,844 400 4.0%
Slide 25: Financial Strategies 2024
Financial Strategies 2024 Improving Financial Results Sustaining top line growth through organic and inorganic opportunities Driving margin improvement through continuous efficiency in production process, marketing effectiveness and leveraging digitalization Forex cash reserve to mitigate exchange r
Slide 26: Outlook 2024
Outlook 2024 Focusing on Top and Bottom-Line Improvement Growing above the market & Consistently optimizing commercializing new Improving profitability shareholders' return innovative products YoY Sales Growth EPS Growth Dividend Payout 6 to 7% 13% to 15% Ratio 45 to 55% 1H24 : 7.6% 1H24 : 18.4% Ass
Slide 27: Appendix 1
y Appendix 1
Slide 28: Key Takeaways
Key Takeaways Sustained Top-line Growth and Resilient Margins Over a Decade 16,367 16,394 14,567 15,227 15,731 • Sustained consolidated top-line growth at CAGR 5.8% over a decade. 12,226 • Resilient margins (Operating Profit Margin at 14%-15% in 48.0% 49.0% 48.6% 2014-2022) reflecting a well-managed
Slide 29: Market Overview
Market Overview Relatively Stable Macroeconomy with Changes in Consumer Spending Post Covid Indonesia Macroeconomics • Stable and positive key macroeconomic indicators due to higher mobility post Covid • Managing risks of high inflation, decreasing purchasing power, customers spending allocation tre
Slide 30: Healthcare Industry Overview
Healthcare Industry Overview Growing National Health Insurance Coverage and Increasing Health Budget Population In million National Health Insurance (JKN) Coverage 300 61.0% 66.1% 71.6% 78.5% 83.9% 82.3% 86.1% 90.7% 95.9% 120% 250 100% 200 80% 150 273.9 274.2 278.7 * 60% 257.2 260.0 262.4 265.2 267.
Slide 31: Recent Pharma Regulations
Recent Pharma Regulations Ensuring Compliance and Support to Government Strategics Programs Presidential Decree No. 28/2024 • Improving doctor availability, Milk formula discount Law No. 17/2023 • Improving doctor availability, local content requirement, distribution of free-sales drugs Government R
Slide 32: Access to Healthcare for a Better Life
Access to Healthcare for a Better Life Gradual Improvement of ESG Practices Based on International Standard Environment Energy efficiency and CO2 emission reduction Gradually moving towards energy efficiency and CO2 emission reduction through renewable energy by E installing solar panels in our new
Slide 33: Sustainability Activities
Sustainability Activities Improving Access to Healthcare and Implementing Responsible Business Practices Ristek/BRIN Kalbe Science Award (RKSA) 2021-2023 RKSA is the collaboration between Ristek/BRIN (2021) and KALBE in strengthening triple helix collaboration between academics, business and governm
Slide 34: Appendix
y Appendix
Slide 35: Financial Statement
Financial Statement CONSOLIDATED STATEMENT Dec 23 Jun 24 Change YTD OF FINANCIAL POSITION (Audited) (Unaudited) ASSETS CURRENT ASSETS Cash and Cash Equivalents 3,232,420,596,769 3,692,521,306,308 14.2% Trade Receivables 4,651,970,696,489 5,388,298,239,534 15.8% Other Receivables 168,170,214,069 291,
Slide 36: Financial Statement
Financial Statement CONSOLIDATED STATEMENT Dec 23 Jun 24 Change YTD OF FINANCIAL POSITION (Audited) (Unaudited) ASSETS LIABILITIES CURRENT LIABILITIES Short-term Bank Loans 120,800,000,000 560,200,000,000 363.7% Trade Payables 1,690,719,605,626 2,030,994,782,800 20.1% Other Payables 548,228,291,405
Slide 37: Financial Statement
Financial Statement CONSOLIDATED STATEMENT Dec 23 Jun 24 Change YTD OF FINANCIAL POSITION (Audited) (Unaudited) ASSETS EQUITY Capital Stock - Issued and Fully Paid 468,751,221,100 468,751,221,100 0.0% batas POJK mak Additional Paid-in Capital, Net (34,118,673,814) (33,093,373,814) -3.0% Differences
Slide 38: Financial Statement
Financial Statement CONSOLIDATED STATEMENT OF PROFIT OR LOSS Jun 23 Jun 24 Change yoy AND OTHER COMPREHENSIVE INCOME (Unaudited) (Unaudited) NET SALES 15,178,929,358,642 16,328,251,670,616 7.6% COST OF GOODS SOLD (9,005,909,066,487) (9,863,753,850,034) 9.5% % to NS 59.3% 60.4% GROSS PROFIT 6,173,020
Slide 39: Financial Statement
Financial Statement CONSOLIDATED STATEMENT OF PROFIT OR LOSS Jun 23 Jun 24 Change yoy AND OTHER COMPREHENSIVE INCOME (Unaudited) (Unaudited) NET SALES INCOME BEFORE INCOME TAX EXPENSE 15,178,929,358,642 1,939,411,543,220 16,328,251,670,616 2,367,431,548,703 7.6% 22.1% % to NS 12.8% 14.5% INCOME TAX
Slide 40: Financial Statement
Financial Statement CONSOLIDATED STATEMENT OF PROFIT OR LOSS Jun 23 Jun 24 Change yoy AND OTHER COMPREHENSIVE INCOME (Unaudited) (Unaudited) NET SALES Income (Loss) for the Period Attributable to: 15,178,929,358,642 16,328,251,670,616 7.6% Owners of the Parent Company 1,528,997,185,878 1,805,095,883
Slide 41: Financial Statement
Financial Statement Jun 23 Jun 24 CONSOLIDATED STATEMENT OF CASH FLOWS Change YoY (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 15,948,950,168,083 17,492,184,894,787 9.7% Cash payments to suppliers and employees (11,240
Slide 42: Financial Statement
Financial Statement Jun 23 Jun 24 CONSOLIDATED STATEMENT OF CASH FLOWS Change YoY (Unaudited) (Unaudited) CASH FLOWS CASH FLOWS FROM FROM INVESTING OPERATINGACTIVITIES ACTIVITIES Interest income received 33,323,555,167 58,079,245,089 74.3% Withdrawal of other current financial assets - 15,000,000,00
Slide 43: Financial Statement
Financial Statement Jun 23 Jun 24 CONSOLIDATED STATEMENT OF CASH FLOWS Change YoY (Unaudited) (Unaudited) CASH FLOWS CASH FLOWS FROM FROM FINANCING OPERATINGACTIVITIES ACTIVITIES Proceeds from short-term bank loans 1,740,718,833,740 717,419,157,560 -58.8% Proceeds from bonds payables - 126,368,000,0
Slide 44: Financial Statement
Financial Statement Jun 23 Jun 24 CONSOLIDATED STATEMENT OF CASH FLOWS Change YoY (Unaudited) (Unaudited) CASHINCREASE NET FLOWS FROM OPERATING (DECREASE) ACTIVITIES IN CASH (1,122,626,979,949) 411,617,375,580 -136.7% AND CASH EQUIVALENTS Net Effect of Changes in Foreign Exchange Rates of Foreign Cu
Slide 45: For further information: PT Kalbe Farma Tbk
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 : syeren.amanda@kalbecorp.com | investor.relations@kalbecorp.com