PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — YTD September 2015 Earnings Presentation
46 slides from PT Kalbe Farma Tbk's earnings presentation, October 2015
Slide 1: Company Update
New solution for sore throat Company Update Unaudited YTD September 2015 October 2015
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 September 2015 unaudited results of the Company. The information co
Slide 3: Table of Contents
Table of Contents Corporate Overview 4 Market Overview 7 Business Overview 11 Financial Overview 29 Strategies and Outlook 2015 35 Appendix 40 3
Slide 4: Corporate Overview
Corporate Overview Largest Publicly-Listed Pharmaceuticals Company in Southeast Asia • 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 b
Slide 5: Corporate Strategy
Corporate Strategy Long Track Record of Sustainable Growth Inception and Entrepreneurial Enhanced Focus and Consolidation Regionalization Driven Expansion 1996–2005 2006–2015 1966–1995 2012: 2010: ♦ Generic production Disposed of Kageo Igar facility came on 1981: 1995: Jaya stream Spin-off the 199
Slide 6: Market Overview
New solution for sore throat Not all collagen is the same, it’s SECTION 2 time to choose the right one Market Overview
Slide 7: Indonesia's Health Spending Trends
Indonesia’s Health Spending Trends • Low healthcare expenditure to GDP ratio. Healthcare Expenditure/GDP 2013 (%) • National Health Insurance (Jaminan United States 18,0% United Kingdom 9,6% Kesehatan Nasional or JKN) program has Singapore 5,8% commenced in January 2014, and covered China 5,5% more
Slide 8: Pharmaceuticals Market Breakdown
Pharmaceuticals Market Breakdown Kalbe – No. 1 in the Pharma Industry Kalbe continues to lead in the highly fragmented pharmaceuticals industry with over 200 players Pharma Market Breakdown Market Share Kalbe 13% a 6% OTC b 5% 41% c 4% d 4% Others 68% Branded & Ethicals Licensed Pharma Industry (Pre
Slide 9: Recent Indonesian Pharmaceuticals Regulatory
Recent Indonesian Pharmaceuticals Regulatory National Healthcare Insurance System 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 Hea
Slide 10: Business Overview
New solution for sore throat SECTION 3 Business Overview
Slide 11: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Temporary Deceleration +0.2% • No. 1 player in Indonesian Prescription Pharma Market. • The largest medical representatives team in Indonesia with 3.201 3.207 more than 2,500 personnel. • Comprehensive product offerings for all income groups. • Increasing price
Slide 12: Prescription Pharmaceuticals Division: Growth Drivers
Prescription Pharmaceuticals Division Growth Drivers Penetrating further in the unbranded Strengthening presence in generics market specialty products • Completion of oncology factory and • Selection of focused categories to achieve scale commercialization in Q3 2014 • Utilization of dedicated unbra
Slide 13: Consumer Health Division: Strong Brand Equity
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe’s brands 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,
Slide 14: Consumer Health Division: Positive Top Line Growth
Consumer Health Division Positive Top Line Growth +6.9% • No. 1 Player in OTC market and No. 2 in 2.175 2.325 Energy Drink category. • GPM increased from 54.1% in YTD 09 2014 to 55.2% in YTD 09 2015, mostly due to price 30 Sep 2014 30 Sep 2015 increase and product mix. (Unaudited) (Unaudited) SALES
Slide 15: Consumer Health Division: Innovative New Products
Consumer Health Division Innovative New Products Hydro Coco An isotonic drink made of real coconut water Original Love Juice Fresh bottled fruit juice made of quality fruits available in pomegranate, orange, guava, apple, and soursop flavors H2 – Health and Happiness Supplement Products • H2 Superba
Slide 16: Nutritionals Division: Complete Range of Nutritional Products
Nutritionals Division Complete Range of Nutritional Products • Catered to expecting & lactating mothers, babies, toddlers, children, tweens and adults. Expecting Lactating Baby Toddler Kid Tween Teen 25+ 35+ Clinical 16
Slide 17: Growth of Indonesian Powdered Milk Market
Nutritionals Division Growth of Indonesian Powdered Milk Market By Volume (Kg ‘000) By Value (Rp Bn) 2.2% 10.4% 19.820 187.387 183.317 17.947 FY 2013 FY 2014 FY 2013 FY 2014 Source : AC Nielsen, YTD 12 2014 17
Slide 18: Nutritionals Division: Consistent Net Sales Growth
Nutritionals Division Consistent Net Sales Growth +10.2% • Strong brand awareness of existing major products 3.665 3.325 Kalbe’s Products Market Share 2014 Diabetasol 88.0% Milna 68.8% 30 Sep 2014 30 Sep 2015 Prenagen 55.4% (Unaudited) (Unaudited) Morinaga Chil Mil 9.2% SALES in Rp Bn Morinaga BMT 1
Slide 19: Nutritionals Division: Launching of New Products
Nutritionals Division Launching of New Products Entrasol Quick Start Cereal drink made of milk and oats with high calcium and high fiber Diva Health drink with collagen and antioxidant for skin care Nutrive Benecol Smoothie with special ingredient to lower cholesterol Zee Powdered milk for kids and
Slide 20: Multi Channel Customer Touch Points
Nutritionals Division Multi Channel Customer Touch Points 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 Reward
Slide 21: Distribution & Logistics: Most Extensive Distribution Network
Distribution & Logistics Division The Most Extensive Distribution Network RDC Branches Cities 2 71 52 21
Slide 22: Distribution & Logistics: Net Sales on Consolidated Basis
Distribution & Logistics Division Net Sales on Consolidated Basis -3.1% • Distribution & Logistics Division is run under PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly 4.057 3.931 listed company (91.75% owned). • Net sales represents the 3rd party product sales and distribution margin of in
Slide 23: Major Third Party Principals by Category
Distribution & Logistics Division Major Third Party Principals by Category Prescription Medical Instrument Fine Chemical Pharmaceuticals Consumer & Diagnostic Raw Materials 23
Slide 24: Distribution & Logistics: Growth Drivers
Distribution & Logistics Division Growth Drivers Medical Devices Retail Health Services : 83 Mitrasana Clinics Medical Devices is an area of potential • Developing Mitrasana Clinics as a growth, especially in the implementation one-stop service with 4-in-1 of National Healthcare Insurance concept, i
Slide 25: Strengthening Distribution Network
Distribution & Logistics Division Strengthening Distribution Network • 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
Slide 26: Marketing and Sales Infrastructure
Marketing and Sales Infrastructure The largest sales force for Pharma and Consumer Health in Indonesia Prescription Distribution & Consumer Health Nutritionals Pharmaceuticals Logistics • > 2,000 sales & • Over 2,500 medical • Approximately 1,100 • Over 1,100 marketing marketing personnel representa
Slide 27: Manufacturing Infrastructure
Manufacturing Infrastructure Operates 9 GMP facilities complying with international standards Products Building Area Facility Production Lines Licenses Certification Manufactured (m2) 14 lines (tablet, capsule, cream, liquid oral, ISO 9001, ISO 14001, Kalbe Farma 435 91,819 Astellas injection) OHSAS
Slide 28: Financial Overview
New solution for sore throat SECTION 4 Financial Overview
Slide 29: Consolidated Sales
Consolidated Sales Positive Top Line Growth of Internal Kalbe Products Net Sales (in Rp Bn) 2.9% 30 Sep 2014 30 Sep 2015 12.758 13.128 (Unaudited) (Unaudited) 6.9% 10.2% -3.1% 0.2% 3.665 4.057 3.931 3.201 3.207 3.325 2.175 2.325 Prescription Consumer Health Nutritionals Distribution & Logistics Cons
Slide 30: Consolidated Operating Performance
Consolidated Operating Performance Slight Pressure on Operating Margin Gross Profit Operating Expenses to Net Sales Ratios (in Rp bn) + 4.6% 32.4% 33.8% 48,1% 48,8% 0,8% 0,9% 6,131 6,411 4,8% 5,1% Selling & Marketing 30 Sep 2014 30 Sep 2015 26,8% 27,8% General & (Unaudited) (Unaudited) Administrativ
Slide 31: Consolidated Net Earnings
Consolidated Net Earnings Maintaining Stable Earnings Income Before Tax Net Income (in Rp bn) (in Rp bn) +1.4% +0.8% 15.6% 15.4% 11.7% 11.4% 1.988 2.016 1.487 1.499 30 Sep 2014 30 Sep 2015 30 Sep 2014 30 Sep 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) • Income before tax margin slightly dec
Slide 32: Working Capital Management
Working Capital Management Gradual Improvement in Net Operating Cycle 158 No. of days Improvement in days of inventory 129 131 120 128 130 142 108 114 132 125 121 122 Net Operating Cycle has 110 115 107 decreased by 28 days from 158 days in 2008 to 130 days 50 55 in September 2015. 45 44 48 48 49 43
Slide 33: Solid Financial Position
Solid Financial Position Rp 1.7 Trillion of Net Cash Position Total Debt and Gearing Ratio Cash & Net Cash Balance 600 15,0% 1.902 2.291 2.151 1.895 1.895 2.125 584 1.877 1.860 1.713 500 411 1.655 1.598 400 7,2% 296 10,0% 1.311 300 205 200 141 2,9% 3,2% 4,1% 5,0% 25 2,3% 100 0,5% 0 0,0% 2010 2011 20
Slide 34: Strategies & Outlook 2015
New solution for sore throat SECTION 5 Strategies & Outlook 2015
Slide 35: KALBE Business Strategies
KALBE Business Strategies Business structure Operational and portfolio excellence through SCM and ERM Leadership Collaborative development innovation 35
Slide 36: Corporate Actions
Corporate Actions Recent Joint Ventures with Blackmores and Genexine • Agreement with Blackmores International Pte. Ltd to form a joint venture company, PT Kalbe Blackmores Nutrition for vitamin and supplement business with an estimated initial investment of Rp 45 Bn. • Agreement with Genexine Inc.
Slide 37: Corporate Social Responsibility
Corporate Social Responsibility Looking after our stakeholders Community Development Environmental Sustainability Consumer Protection Kalbe Junior Ristek Kalbe Scientist Award Science Award ISO 14001:2004 Certified Environmental Management System Dedicated Customer Care Team Kalbe Cares Dr. Boen Ext
Slide 38: Outlook 2015
Outlook 2015 Revised Earnings Guidance 2015 1. Year-on-year Sales Growth 2% - 3% 2. Operating Profit Margin 14% - 15% 3. Earnings per Share Growth -3% - -4% 4. Dividend Payout Ratio 40% - 50% Capex Rp 0.9 – 1.0 Tn for production capacity expansion and distribution network. 38
Slide 39: Appendix: Financial Information
New solution for sore throat SECTION 6 Appendix Financial Information YTD September 30, 2015 (Unaudited)
Slide 40: Unaudited Financial Statement YTD September 2015
Unaudited Financial Statement YTD September 2015 Consolidated Balance Sheets 31 December 2014 30 September 2015 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,894,609,528,205 2,124,752,980,457 12.1% Trade Receivables, Net 2,346,943,653,265 2,652,116,857,346 13.0% Ot
Slide 41: Unaudited Financial Statement YTD September 2015
Unaudited Financial Statement YTD September 2015 Consolidated Balance Sheets 31 December 2014 30 September 2015 % Change (Audited) (Unaudited) LIABILITIES CURRENT LIABILITIES Short-term Bank Loans 251,909,102,153 299,675,936,977 19.0% Trade Payables 1,133,092,819,659 1,131,222,608,514 -0.2% Other Pa
Slide 42: Unaudited Financial Statement YTD September 2015
Unaudited Financial Statement YTD September 2015 Consolidated Statement of Income 30 September 2014 30 September 2015 (Unaudited) (Unaudited) % Change NET SALES 12,758,469,473,880 13,127,806,587,343 2.9% COST OF GOODS SOLD 6,627,470,848,873 6,716,910,243,206 1.3% % to NS 51.9% 51.2% -0.8% GROSS PROF
Slide 43: Unaudited Financial Statement YTD September 2015
Unaudited Financial Statement YTD September 2015 Consolidated Statement of Income 30 September 2014 30 September 2015 (Unaudited) (Unaudited) % Change INCOME FOR THE PERIOD 1,526,031,339,313 1,534,229,905,893 0.5% % to NS 12.0% 11.7% -0.3% OTHER COMPREHENSIVE INCOME (EXPENSES) 1,934,931,420 40,848,6
Slide 44: Unaudited Financial Statement YTD September 2015
Unaudited Financial Statement YTD September 2015 Consolidated Statement of Cash Flows 30 September 2014 30 September 2015 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 13,811,617,870,985 14,062,703,018,305 1.8% Cash Paid to Suppliers and Employees
Slide 45: Unaudited Financial Statement YTD September 2015
Unaudited Financial Statement YTD September 2015 Consolidated Statement of Cash Flows 30 September 2014 30 September 2015 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Bank Loans 1,844,926,182,883 659,131,794,591 -64.3% Receipts of Capital Contributions from Sub
Slide 46: Thank You
THANK YOU 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 : vidjongtius@kalbe.co.id kartika.setiabudy@kalbe.co.id investor.relations@kalbe.co.id Website : www.kalbe.co.id 46
PT Kalbe Farma — YTD September 2015 Earnings Presentation on 6ix