Pt Kalbe Farma Tbk · IDX:KLBF
Pt Kalbe Farma Tbk — Q3 2010 Earnings Presentation
53 slides from Pt Kalbe Farma Tbk's earnings presentation, October 2010
Slide 1: Company Update YTD September 2010 Results
Company Update YTD September 2010 Results October 2010
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 2010 unaudited results of the Company. The information co
Slide 3: Table of Contents
Table of Contents SECTION 1 Corporate Overview 4 SECTION 2 Market Overview 7 SECTION 3 Business Overview 12 SECTION 4 Financial Overview 36 SECTION 5 Corporate Action & Outlook in 2010 43 SECTION 6 Appendix 47 3
Slide 4: Section 1 Corporate Overview
SECTION 1 Corporate Overview 4 Excellence in Execution
Slide 5: 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 • Kalbe markets and
Slide 6: Corporate Strategy
Corporate Strategy Kalbe has a long track record of sustainable growth Inception and Entrepreneurial Enhanced Focus and Consolidation Regionalization Driven Expansion 1996–2005 2006–2015 1966–1995 1966 1977 1981 1985 1989 1991 1993 1994 1996 1997 2005 2006 2007 2009 1966: 1977: 1985: 1989: 1991: 199
Slide 7: Section 2 Market Overview
SECTION 2 Market Overview 7 Excellence in Execution
Slide 8: Indonesia's Health Spending Trends
Indonesia’s Health Spending Trends • Total expenditure on health averaged 2% Total Expenditure on Health as % of GDP of GDP over the 11 year period 1996-2006. 2.5 2.0 • The Government is planning to implement 1.5 the National Social Security System. 1.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2
Slide 9: Pharmaceutical Market Breakdown
Pharmaceutical Market Breakdown Market Splits Remain Stable Total Market Trend 2005 – 2009 and Forecast 2010 OTC (Rp Bn) Ethical (Rp Bn) 38.0% 39.1% 42.3% 43.4% 43.4% 43.7% 62.0% 60.9% 57.7% 56.6% 56.6% 56.3% 2005 2006 2007 2008 2009 F2010 Ethical (Rp Bn) 14,622 14,033 14,837 16,969 19,225 21,142 Et
Slide 10: Indonesian Pharmaceuticals Market
Indonesian Pharmaceuticals Market The Industry is Highly Fragmented With More Than 200 Pharmaceutical Players Total Market (ITMA) Hospital (IHPA) Pharmacy (IPA) YTD 06 2010 YTD 06 2010 YTD 06 2010 Kalbe Novartis Dexa Pfizer Dexa Group Group Tempo Medica Group Group Kalbe Dexa Soho Group Medica Group
Slide 11: Recent Indonesian Pharmaceuticals Regulatory
Recent Indonesian Pharmaceuticals Regulatory Price Caps on Key Generic Drugs Ministry of Health Decree No. HK.03.01/Menkes/146/I/2010 issued on 27 January 2010 • Replace the previous Ministry of Health Decree No. 302/Menkes/SK/III/2008. • The Indonesian Ministry of Health has set drug store selling
Slide 12: Section 3 Business Overview
SECTION 3 Business Overview
Slide 13: Consolidated Sales Breakdown
Consolidated Sales Breakdown Predominantly Serves Local Market Sales Breakdown By Segment Sales Breakdown By Geographical YTD 09 2010 YTD 09 2010 Prescription Distribution & Export Logistics Pharmaceuticals 4% 26% 33% Consumer Domestic Nutritionals Health 96% 23% 18% Total Sales = Rp 7,273 Bn Total
Slide 14: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Net Sales Performance 66.9% 64.3% 70.0% • Net sales grew by 16.4% to Rp 1,909 Bn in 2,500 60.0% YTD 09 2010. 2,000 16.4% 50.0% • Growing faster than that of the Indonesian 1,909 pharmaceuticals industry. 1,500 40.0% 1,640 • Improved gross profit margin from 64.3
Slide 15: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Comprehensive Product Range Targeted To All Income Groups Sales Contribution By Number of Therapeutic Class Products Product Categories YTD 09 2010 • General Anti-Infectives • Hospital Solutions Licensed • Oncology Licensed 82 • Blood and Blood Forming Organs Pr
Slide 16: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Leading in Indonesia Prescription Pharmaceuticals Market Share Total Market (ITMA) Hospital (IHPA) Pharmacy (IPA) YTD 06 2010 YTD 06 2010 YTD 06 2010 Dexa Pfizer Medica Group Dexa Sanofi Aventis Group Kalbe 7% Novartis Group Medica Group Sanbe Group Kalbe Dexa S
Slide 17: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division New Production Facility • New production facility in Cikarang: • To be completed by end of November 2010. • Dedicated for generic drugs’ tablet production line. Facility Upgrading • Upgrading of intravenous facility site has been finalized in March, 2010. The fa
Slide 18: Consumer Health Division
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe’s top products as per June 2010 Therapeutic Class Kalbe’s Products Market Share by Volume Antacid Promag, Waisan 83.7%* Anti Diarrhea Neo Entrostop 44.6%* Cough Remedies Komix, Woods, Mextril, Mixadin 40.
Slide 19: Consumer Health Division
Consumer Health Division Net Sales Performance • Consumer Health net sales was up 1,800 56.2% 56.4% 60.0% 1.8% to Rp 1,306 Bn in YTD 09 2010 1,600 1.8% 50.0% from Rp 1,283 Bn in YTD 09 2009. 1,400 1,200 40.0% 1,283 1,306 • Single digit sales growth rate was 1,000 30.0% mainly due to unstable sales 8
Slide 20: Consumer Health Division
Consumer Health Division Leading Market Position OTC Energy Drink YTD 06 2010 YTD 06 2010 (Unit) Pharos Others Soho Group M-150 5% Tempo Group Abbott Group 6% 4% Kuku Bima Group 7% 5% Kratingdaeng 41% 9% Konimex 7% Kalbe 5% GlaxosmithKL Group Group 15% 3% Others Hemaviton 50% 16% ExtraJoss 27% Total
Slide 21: Consumer Health Division
Consumer Health Division Launching 8 New Products With Natural and Herbal Ingredients Fatigon Hydro An isotonic drink made from natural coconut water Fatigon C-Plus A multivitamin consist of Pureway C, vitamin B complex and zinc Mixagrip Pegal Linu A new herbal product called for analgesic and muscl
Slide 22: Consumer Health Division
Consumer Health Division Ready to Drink ExtraJoss in Philippines • To capture the rising demand of ready to drink category in the Philippines, Kalbe has recently introduced ExtraJoss in returnable glass bottle (RGB) since March 2010. • Combined with powder ExtraJoss, Kalbe shall continue to become a
Slide 23: Nutritionals Division
Nutritionals Division Complete Range of Nutritional Products • Catered to expecting & lactating mothers, babies, toddlers, children, tweens, teens and adults. Expecting Lactating Baby Toddler Kid Tween Teen 25+ 35+ Clinical 23
Slide 24: Nutritionals Division
Nutritionals Division Relatively Low Milk per Capita Consumption Milk per Capita Consumption (kg) 40 -2.2% 30 2.4% kg 20 10 -3.6% 2.9% 2.3% 1.6% 0 Indonesia Vietnam Philippines Thailand South Korea Malaysia 2006 2.27 2.69 1.45 14.24 35.61 8.03 2007 2.35 2.36 1.47 11.96 34.83 8.66 2008 2.47 2.77 1.28
Slide 25: Nutritionals Division
Nutritionals Division Growth of Indonesian powder milk market driven primarily by price increase By Volume (Kg ‘000) By Value (Rp Bn) 107,276 3.5% 9,395 4.0% 103,684 9,034 MAT Jun 2009 MAT Jun 2010 MAT Jun 2009 MAT Jun 2010 Source : AC Nielsen, MAT 06 2010 25
Slide 26: Nutritionals Division
Nutritionals Division Net Sales Performance 60.6% 60.0% 2,000 47.7% 50.0% • Nutritionals Division net sales were up by 22.6% 22.6% to Rp 1,655 Bn in YTD 09 2010 1,500 1,655 40.0% from Rp 1,350 Bn in YTD 09 2009. 1,350 30.0% 1,000 • Improved gross profit margin to 60.6% in 20.0% YTD 09 2010 due to Ru
Slide 27: Nutritionals Division
Nutritionals Division Competing With Multi National Companies Market Share Market Share of Kalbe Nutritionals Products YTD 06 2010 In Its Category YTD 06 2010 Mead Johnson Wyeth 4% Nutrifood Kalbe’s Products Market Share Fonterra Abbott 4% 2% Others 4% 72.5% 6% 3% Diabetasol Kalbe Nestle Nutritional
Slide 28: Nutritionals Division
Nutritionals Division Launching of New Products Entrasol Active Specially formulated for 19-50 year old to stay healthy and active throughout the day Milna Toddler Pudding Specially formulated instant pudding for children (above 1 year old) with chocolate and strawberry flavor Milna Toddler Milk wit
Slide 29: Distribution & Logistics Division
Distribution & Logistics Division The Most Extensive Distribution Network Kalbe has the most extensive distribution network of any pharmaceutical company in Indonesia with 2 Regional Distribution Centers and 65 branches 29
Slide 30: Distribution & Logistics Division
Distribution & Logistics Division Net Sales Performance • Distribution & Logistics Division is run under PT 34.9% 3,000 35.0% Enseval Putera Megatrading Tbk (EPMT), a 29.6% public listed company (83.75% owned). 2,500 30.0% • Disposal of packaging business was completed in 2,403 25.0% August 2010; th
Slide 31: Distribution & Logistics Division
Distribution & Logistics Division Medical Devices, a New Growth Driver Raw Materials Trading & Others Net Sales (in Rp Bn) 8% Medical Devices Medical Devices Raw Material Trading 5% 673 714 581 502 414 CAGR CAGR 315 310 32.1% 3rd Party 233 42.3% 15% FY 2006 FY 2007 FY 2008 FY 2009 FY 2006 FY 2007 FY
Slide 32: Distribution & Logistics Division
Distribution & Logistics Division Major Third Party Principals by Category Prescription Medical Instrument Fine Chemical Pharmaceuticals Consumer & Diagnostic Raw Materials 32
Slide 33: Distribution & Logistics Division
Distribution & Logistics Division Mitrasana Clinics • A 100% owned by of EPMT. • Opening of Mitrasana Clinics as a one-stop service, includes family doctor, pharmacy, laboratory, and convenient store. • To date, Kalbe has opened 20 Mitrasana clinics in Jakarta and its Greater Area. • Offered in 2 bu
Slide 34: 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 • Over 2,000 sales & • Over 2,000 medical • Approximately 1,000 • Over 1,000 marketing marketing personnel represe
Slide 35: Manufacturing Infrastructure
Manufacturing Infrastructure Operates 9 GMP facilities comply with international standards Products Bldg 2 Facility Manufactured Area (m ) Production Lines Licensees Certification 9 lines of Non Beta Lactam products ISO9001, ISO14001, Kalbe Farma 448 42,684 (tablet, capsule, cream, liquid oral, inje
Slide 36: Section 4 Financial Overview
SECTION 4 Financial Overview 36
Slide 37: Consolidated Sales
Consolidated Sales Strong Net Sales Net Sales (in Rp Bn) YTD 09 2009 YTD 09 2010 12.0% 7,273 6,494 8.2% 16.4% 1.8% 22.6% 2,221 2,403 1,640 1,909 1,350 1,655 1,283 1,306 Prescription Consumer Health Nutritionals Distribution & Consolidation Pharmaceuticals Logistics* Figures based on Unaudited Financ
Slide 38: Strong Financial Performance
Strong Financial Performance Improved Gross Profit Margin & Controlled Operating Expenses Gross Profit Margin Operating Expenses to Net Sales Ratios Total Opr. Expenses Margin 2.1% 32.9% 33.5% 0.6% 0.7% 0.8% 51.2% 5.5% 5.5% Selling 26.7% 27.2% General & Administrative 49.2% Research & Development YT
Slide 39: Strong Financial Performance
Strong Financial Performance Margins Improvement Operating Profit Margin Net Income Margin 20.0% 20.0% 17.7% 1,600 16.2% 1,600 16.0% 16.0% 1,200 22.3% 1,200 12.4% 1,288 12.0% 12.0% 9.5% 1,053 800 800 8.0% 46.5% 902 8.0% 400 4.0% 400 616 4.0% - 0.0% - 0.0% YTD 09 2009 YTD 09 2010 YTD 09 2009 YTD 09 2
Slide 40: Strong Financial Performance
Strong Financial Performance High Growth Earnings per Share 50.0% 96 100 Earnings per Share has grown by 1,400 90 50.0% Y-o-Y driven by several factors: 1,200 80 1,244 • Profit Before Tax increased by 25.5% 64 70 1,000 991 60 • Lower tax rate 800 902 50 • Corporate income tax rate is reduced from 28
Slide 41: Solid Financial Position
Solid Financial Position Rp 1.4 Trillion of Net Cash Position Total Debt and Gearing Ratio Cash & Net Cash Balance 43.7% 45.0% 1,570 1,400 40.0% 1,562 1,401 1,200 35.0% 1,322 1,261 1,223 1,224 1,000 30.0% 1,116 800 25.0% 918 883 917 915 805 20.0% 600 1,020 12.6% 11.2% 15.0% 400 9.3% 7.9% 7.7% 10.0%
Slide 42: Working Capital Management
Working Capital Management Improved Net Operating Cycle YTD 06 2010 YTD 09 2010 (Unaudited) (Unaudited) ∆ Change Kalbe’s days of inventory down Days of Account Receivable 52 49 3 by 15 days Days of Inventory 137 122 15 Days of Account Payable 46 33 13 Net Operating Cycle 143 138 5 Net Operating Cycl
Slide 43: Section 5 Corporate Actions & Outlook in 2010
SECTION 5 Corporate Actions & Outlook in 2010 43
Slide 44: Corporate Actions in 2010
Corporate Actions in 2010 Joint Venture Company in the Philippines Kalbe has formed a 50-50 percent joint venture firm, Asiawide Kalbe Philippines, Inc. with ARC Holdings Inc., a Philippines' Corporation, to market ready-to-drink ExtraJoss in returnable glass bottle (RGB) in the Philippines. Disposa
Slide 45: Achievements in 2010
Achievements in 2010 Awards in 2010 • The 2010 Best Company for Cigarettes, Pharmaceutical and Households Needs Sector in Investor Awards, from Investor Magazine. • The 2010 Indonesian Most Admired Company Award in Pharmaceutical Category in IMAC Award, from Business Week and Frontier. • 2nd Rank fo
Slide 46: Outlook 2010
Outlook 2010 “8 to ALL” 1. Continue the implementation of the Productivity – Innovation – Cash flow (PIC) Program to all business units 2. Enhance business portfolio through new products and business developments 3. Expand business territory through collaboration 4. Implement Direct-to-Customer (D2C
Slide 47: Section 6 Appendix Financial Information
SECTION 6 Appendix Financial Information YTD September 30, 2010 (Unaudited) 47
Slide 48: Unaudited Financial Statement YTD 2010: Balance Sheets
Unaudited Financial Statement YTD 09 2010 Consolidated Balance Sheets 30 September 2009 30 September 2010 (Unaudited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,223,600,573,265 1,570,132,925,725 28.3% Short-term Investments 22,837,840,447 5,378,019,042 -76.5% Trade Receiv
Slide 49: Unaudited Financial Statement YTD 2010: Balance Sheets
Unaudited Financial Statement YTD 09 2010 Consolidated Balance Sheets 30 September 2009 30 September 2010 (Unaudited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Short-term Loans 306,016,567,241 167,055,772,948 -45.4% Trade Payables 475,006,616,261 429,282,089,528 -9.6% Other Payables 34,43
Slide 50: Unaudited Financial Statement YTD 2010: Statements of Income
Unaudited Financial Statement YTD 09 2010 Consolidated Statements of Income 30 September 2009 30 September 2010 (Unaudited) (Unaudited) % Change NET SALES 6,493,993,791,287 7,272,485,365,251 12.0% COGS 3,301,578,746,140 3,545,374,704,843 7.4% % to NS 50.8% 48.8% -2.1% GROSS PROFIT 3,192,415,045,147
Slide 51: Unaudited Financial Statement YTD 2010: Cash Flows
Unaudited Financial Statement YTD 09 2010 Consolidated Statements of Cash Flows 30 September 2009 30 September 2010 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 6,864,658,327,130 7,742,255,598,532 12.8% Cash paid to suppliers and employees (5,724
Slide 52: Unaudited Financial Statement YTD 2010: Cash Flows
Unaudited Financial Statement YTD 09 2010 Consolidated Statements of Cash Flows 30 September 2009 30 September 2010 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans 1,873,170,212,990 649,385,577,717 -65.3% Proceeds from sale of treasury stock - 3,121,157
Slide 53: 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 jhandajani@kalbe.co.id Website : www.kalbe.co.id x 593 (S KALBE