PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — Corporate Update (2008)
48 slides from PT Kalbe Farma Tbk's corporate update, 2008
Slide 1: Company Update 1st Half 2008
Company Update 1st Half 2008 Company Performance YTD Juli 2008 Company Performance Q2 2008
Slide 2: Table of Contents
Table of Contents SECTION I Kalbe At a Glance 3 SECTION II Corporate Overview 6 SECTION III Industry Overview 13 SECTION IV Business Overview 15 IV.A. Prescription Pharmaceuticals IV.B. Nutritional IV.C. Consumer Health IV.D. Distribution and Packaging SECTION V Operational Overview 28 SECTION VI Gr
Slide 3: Section I. Kalbe At a Glance
Section I. Kalbe At a Glance 3
Slide 4: Kalbe At a Glance – Company Highlights
I. Kalbe At a Glance – Company Highlights Largest Publicly-Listed More than 40-year old pharmaceutical company with long track record of profitable growth. Pharmaceutical After the merger with PT Dankos Laboratories Tbk. and PT Enseval effective on December 16, Company in Southeast 2005, Kalbe h
Slide 5: Kalbe at a Glance – Historical Data
I. Kalbe at a Glance – Historical Data Kalbe was established in 1966 and has a long track record of profitable growth Inception and Entrepreneurial Excellence, Sustainable Growth, Enhanced Focus and Consolidation Driven Expansion Going Global 1996–2005 1966–1995 2006–2015 1966 1977 1981 1985 1989 19
Slide 6: Section II. Corporate Overview
Section II. Corporate Overview 6
Slide 7: Corporate Overview
II. Corporate Overview Established in 1966 and listed on the Jakarta Stock Exchange and Surabaya Stock Exchange since 1991, Kalbe Farma is now the largest publicly-listed pharmaceutical company in Southeast Asia • Kalbe markets and sells its products in 6 major markets in Southeast Asia which in agg
Slide 8: Corporate Overview – Business Overview
II. Corporate Overview – Business Overview Kalbe Group has 4 Division in Line of Business KALBE GROUP Prescription Distribution & Nutrition Consumer Health Pharmaceutical Packaging Energy Drink OTC Pharmaceutical 8
Slide 9: Corporate Overview – Business Overview
II. Corporate Overview – Business Overview Kalbe Farma is the market leader in prescription pharmaceuticals, nutritional and consumer health products in Indonesia Prescription Distribution & Nutrition Consumer Health Pharmaceutical Packaging • Licensed Products • Pregnancy nutrition • OTC Pharmaceut
Slide 10: Corporate Overview – Subsidiaries
II. Corporate Overview – Subsidiaries Pharmaceuticals Nutritions 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 M
Slide 11: Management Profile (BOD)
II. Corporate Overview – Management Profile (BOD) President Director • President Director of Kalbe since 2008 • Marketing Director of Kalbe (1997 - 2007) • President of SHP since 1994 Director Vice President Director Bernadette Ruth Irawaty Setiady • President Director of Kalbe • Vice President (199
Slide 12: Management Profile (BOC)
II. Corporate Overview – Management Profile (BOC) President Commissioner • President Commissioner of Kalbe since 2008 • President Director of Kalbe (1998-2007) • Comissioner of Kalbe (1992-1998) Commissioner Commissioner Johannes Setijono Commissioner •Commissioner of Kalbe •Commissioner of Kalbe si
Slide 13: Awards & Achievements
II. Corporate Overview - Awards & Achievements Kalbe’s excellent performance is recognized by a number of organizations through the following awards Year 2007: •“Original Product of Indonesia” for Extra Joss from Bisnis Indonesia •Value Creator Award 2007 (Ranked 22th from 100) from SWA Magazine •No
Slide 14: Section III. Industry Overview
Section III. Industry Overview 14
Slide 15: Industry Overview - Indonesia
III. Industry Overview - Indonesia • In this unpredictable situation, the Government is still able to keep the economic growth of 6.4% in 2008 Revised State Budget, the political stability, controlled-inflation and higher foreign currency reserved, despite a strong treat of missing the volume and oi
Slide 16: Industry Overview – Segmentation
III. Industry Overview – Segmentation The Indonesian market is comprised of distinct market segments based on income levels with participants positioned distinctly against these segments Population Income Mkt. Size (mm) (US$) (US$bn) Pfizer, Glaxo, Abbott, Sanofi, Astrazeneca Domestic High End 22.4
Slide 17: Industry Overview - Pharmaceutical
III. Industry Overview - Pharmaceutical • In 2007 the Indonesia Pharmaceutical market was IDR 25.6 trillion (approx. USD2.8 billion) or grew by 9.2%* and it is expected to grow at around 9.1%* in 2008 (approx. USD3.0 billion). • This market comprises of 60% Prescription and 40% of Over the Counter (
Slide 18: Industry Overview - Pharmaceutical
III. Industry Overview - Pharmaceutical • The Government continues to support the special fund of IDR 4.6 trillion to provide free medical treatments for the poor only at hospitals and state community health centers. • Price increase of pharma product is limited or lower than inflation rate due to t
Slide 19: Industry Overview - Manufacturers
III. Industry Overview - Manufacturers Top 5 Manufacturers in ITMA, IHPA and IPA Market. ITMA Market Share - YTD 06 2008 IHPA Market Share - YTD 06 2008 IPA Market Share - YTD 06 2008 KALBE KALBE FARMA FARMA 7% 9% SANBE PFIZER DEXA SANBE 8% 5% MEDICA 5% SOHO 5% 4% DEXA DEXA SANBE MEDICA KALBE MEDICA
Slide 20: Industry Overview - Corporations
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 IPA Market Share - YTD 06 2008 KALBE KALBE GROUP KALBE GROUP 14% GROUP 14% 8% SANBE SANBE DEXA 8% DEXA 6% MEDICA MEDICA DEXA GROUP GROUP MEDICA 6% 10
Slide 21: Section IV. Business Overview: Prescription Pharmaceuticals
Section IV. Business Overview A. Prescription Pharmaceuticals 21
Slide 22: Business Overview – Prescription Pharma
IV. Business Overview – Prescription Pharma Kalbe has broad portfolio of prescription products which comprised of 284 products Licensed Products Branded Generics Generics 68 180 36 Ttl # Products General Anti-infectives: Cefspan, Fixef; General Anti-infectives: Broadced, General Anti-inf
Slide 23: Business Overview – Prescription Pharma
IV. Business Overview – Prescription Pharma Kalbe is the number 1 player in prescription pharmaceuticals Market Share – Prescription Pharmaceutical KALBE GROUP 13% DEXA MEDICA GROUP 7% SANBE 7% * Others * PFIZER GROUP 65% 4% SANOFI-AVENTIS GRP 4% Total Market = IDR 8,17 T Note: Prescription Pharma =
Slide 24: Section IV. Business Overview: Nutritional
Section IV. Business Overview B. Nutritional 24
Slide 25: Business Overview – Nutritional
IV.Business Overview – Nutritional Kalbe has a highly attractive nutritional portfolio comprised of strong, market leading brands Nutritionals Pregnancy Nutrition (Prenagen) – 60% market share Baby biscuit (Milna) – 56% market share Key Products Baby milk – Morinaga BMT 10% market share – Chil
Slide 26: Market Share – Nutritional
IV. Business Overview – Consumer Health Kalbe is a market leader in every major category in which it competes Market Share – Nutritional Nutrifood Ind. 3.0% Wyeth 5.4% Abbott Mead Johnson 5.4% Nestle 4.6% 29.9% Fonterra 5.0% Nutricia 8.2% Sari Husada SHP 15.8% FFI 8.6% 11.0% Total Market = IDR 2.1T
Slide 27: Section IV. Business Overview: Consumer Health
Section IV. Business Overview C. Consumer Health 27
Slide 28: Business Overview – Consumer Health
Business Overview – Consumer Health Kalbe has a highly attractive consumer health portfolio comprised of strong, market leading brands OTC Pharmaceuticals Energy Drinks Antacid (Promag, Waisan) Extra Joss – 87% market share – 46% market share – volume Cough remedies (Woods, Komix, Metril) (Ind
Slide 29: Market Share – Energy Drink
IV. Business Overview – Consumer Health Kalbe is a market leader in every major category in which it competes Market Share – Energy Drink Others 8% M-150 Extra Joss 8% 30% Kuku Bima 14% Hemaviton Krating 18% Daeng 22% Total Market = IDR 760.3 Bn Source: AC Nielsen for Energy Drink share, SEM 06 2008
Slide 30: Market Share – OTC
IV. Business Overview – Consumer Health Kalbe is a market leader in every major category in which it competes Market Share – OTC KALBE GROUP 16% TEMPO GROUP 9% SOHO GROUP * Others * 8% 58% KONIMEX 5% PHAROS GROUP 4% Total Market = IDR 6,25 T Source: IMS for OTC –ITMA , SEM 06 2008 30
Slide 31: Section IV. Business Overview: Distribution and Packaging
Section IV. Business Overview D. Distribution and Packaging 31
Slide 32: Business Overview – Distribution & Packaging
IV. 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
Slide 33: Distribution Contribution: Group vs Non-Group
IV. Business Overview – Distribution & Packaging Percentage Contribution of Distribution Division divided by Group and Non group (Third Parties) 1st Half 2007 1st Half 2008 NON GROUP NON GROUP 24% 25% GROUP GROUP 76% 75% • In 1st Half 2008, Percentage contribution From Group down 1% to IDR 2,192,788
Slide 34: Section V. Operational Overview
Section V. Operational Overview 34
Slide 35: Operational Overview – Marketing & Sales
V. Operational Overview – Marketing & Sales Infrastructure Kalbe has a marketing and sales force of approximately 6,000 providing coverage for more than 1 million outlets in Indonesia Infrastructure Indonesia Coverage Comments Sales force of over 2,200 Directly cover 150,000 outlets Largest sa
Slide 36: Operational Overview – Manufacturing
V. Operational Overview – Manufacturing Infrastructure Kalbe operates 11 GMP facilities that are compliant with international standards, with an additional 1 facility under construction Products Bldg 2 Facility Manufactured Area (m ) Production Lines Licensees Certification 9 lines of Non Beta Lacta
Slide 37: Section VI. Growth Drivers
Section VI. Growth Drivers 37
Slide 38: Growth Drivers – Nutritional and Consumer Health
Growth Drivers – Nutritional and Consumer Health New Product Development Kalbe continues to develop new and innovative nutritional and consumer health products Nutritionals OTC Energy Drinks International & brand Preventive products International & brand expansion Balance products: expansion
Slide 39: Growth Drivers – Prescription Portfolio Development
VI. Growth Drivers – Prescription Portfolio Development Kalbe continues to in-license and develop new pharmaceutical products to supplement and grow its current portfolio of 284 products Licensed Branded Generics Generics Innogene Key therapeutic targets In-house drug delivery system Key thera
Slide 40: Growth Drivers – Expansion in Southeast Asia
VI. Growth Drivers – Expansion in Southeast Asia Kalbe continues to leverage its deep local market knowledge and well established brands into other major Southeast Asian markets Singapore/Malaysia Brand building of Woods and Milna products Philippines Marketing and brand building of Extra Joss
Slide 41: Section VII. Financial Overview
Section VII. Financial Overview 41
Slide 42: Section VIII. Recent Activities
Section VIII. Recent Activities 42
Slide 43: Recent Activities – Share Buy Back Program
VIII. Recent Activities – Share Buy Back Program Kalbe Farma has launched its share buyback program since February 2007 • Rationales – Management's success in increasing the Company's profitability, in maintaining liquidity deriving from significant cash flows, and the Company’s low leverage ratio.
Slide 44: Recent Activities - Others
VIII. Recent Activities - Others • PT Cordlife Indonesia, a joint venture company between Kalbe and Cordlife International Pte, Ltd (Singapore) - opened its first tissue banking facility in September 2007 located in Pulomas, Jakarta • Kalbe has made additional capital contribution to Kalbe Internati
Slide 45: Recent Activities - Others
VIII. Recent Activities - Others • New products launched: • Fatigon Hydro+ - a natural health drink made with fresh coconut water as a natural source of essential electrolytes • Joss Fit – a new variant of Energy Drink • Bintangin • Several Ethical products such as Kitavit, Amlodipine, etc • Launchi
Slide 46: Section IX. Future Outlook
Section IX. Future Outlook 46
Slide 47: Future Outlook – Overall Business
IX. Future Outlook – Overall Business • Kalbe Farma has designed its business portfolio based on 6 footholds: CONSUMER PHARMACEUTICAL NUTRITIONAL HEALTH MEDICAL & DIAGNOSTIC DISTRIBUTION & RETAIL HEALTH INSTRUMENTS LOGISTIC SERVICES • Strengthen and expand existing and new business portfolios • Opti
Slide 48: Thank You
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 invest