PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — YTD Q3 2014 Earnings Presentation
49 slides from PT Kalbe Farma Tbk's earnings presentation, October 2014
Slide 1: Company Update
Not all collagen is the same, it’s time to choose the right one Company Update Unaudited YTD September 2014 October 2014
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 2014 unaudited results of the Company. The information co
Slide 3: Table of Contents
Table of Contents Corporate Overview 4 Market Overview 7 Business Overview 13 Financial Overview 31 Strategies and Outlook 2014 37 Appendix 42 3
Slide 4: Section 1: Corporate Overview
Not all collagen is the same, it’s time to choose the right one SECTION 1 Corporate Overview
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 • Sales breakdown b
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 2010: 2012: Disposed of Kageo Igar Jaya ♦ Generic production 1981: 1995: Established a joint ventur
Slide 7: Section 2: Market Overview
Not all collagen is the same, it’s time to choose the right one SECTION 2 Market Overview
Slide 8: Indonesia's Health Spending Trends
Indonesia’s Health Spending Trends Healthcare Expenditure/GDP 2010 • Total expenditure on health averaged 2.1% of 4.8% 5.00% 1 GDP over the 11 year period 1999-2009. 4.50% 4.1% 1 4.00% 3.8% 3.5% 3.50% 3.3% 0 3.00% • BPJS Health program has commenced on 2.50% 2.00% 2.1% 0 January 2014 and with a targ
Slide 9: National Healthcare Insurance
National Healthcare Insurance (Jaminan Kesehatan Nasional – JKN) Towards a universal coverage in 2019 • Mandatory for all Indonesians. • All participants to pay monthly premium to BPJS Kesehatan as administrator. Premium Payment Categories Monthly Premium Poor & near Subsidized Rp 19,225 / person /m
Slide 10: National Healthcare Insurance
National Healthcare Insurance (Jaminan Kesehatan Nasional – JKN) Health financing on limited resources Healthcare Tariff Reimbursement Scheme Capitation system / tariff Out Primary healthcare per capita Rp 3,000 – Rp Patient facilities 10,000 / person / month Non Capitation Primary healthcare Rp 25,
Slide 11: 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 12% a 6% OTC b 5% 41% c 5% d 4% Others 68% Branded & Ethicals Licensed Pharma Industry (Pre
Slide 12: 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 13: Section 3: Business Overview
Not all collagen is the same, it’s time to choose the right one SECTION 3 Business Overview
Slide 14: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Consistent Top Line Growth +11.5% • No. 1 player in Indonesian Prescription Pharma Market. 3,201 • The largest medical representatives team in Indonesia with 2,870 more than 2,350 personnel. • Comprehensive product offerings for all income groups. • Increasing c
Slide 15: Prescription Pharmaceuticals Division: Growth Drivers
Prescription Pharmaceuticals Division Growth Drivers Penetrating further in the unbranded Strengthening presence in generics market specialty products • Selection of focused categories to achieve scale • Completion of Kalbe’s first oncology factory • Utilization of dedicated unbranded generic plant
Slide 16: Consumer Health Division
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe’s brands Therapeutic Class Kalbe’s Products Market Share 2013 Antacid Promag, Waisan 75.2% Anti Diarrhea Neo Entrostop 44.8% Cough Remedies Komix, Woods, Mextril, Mixadin 33.9% Cold Remedies Mixagrip Reg,
Slide 17: Consumer Health Division
Consumer Health Division Strong Net Sales Performance +15.5% • No. 1 Player in OTC market and No. 2 in 2,175 Energy Drink category. 1,883 • GPM increased from 53.5% in YTD 09 2013 to 54.1% in YTD 09 2014. 30 Sep 2013 30 Sep 2014 (Unaudited) (Unaudited) OTC Energy Drink YTD 12 2013 YTD 12 2013 (Unit)
Slide 18: 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 Promag Fruity 4s Antacid tablet with fruit flavors Nitros
Slide 19: Nutritionals Division
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 19
Slide 20: Growth of Indonesian Powdered Milk Market
Nutritionals Division Growth of Indonesian Powdered Milk Market By Volume (Kg ‘000) By Value (Rp Bn) 5.2% 11.4% 17,615 183,944 15,808 174,855 FY 2012 FY 2013 FY 2012 FY 2013 Source : AC Nielsen, YTD 12 2013 20
Slide 21: Nutritionals Division
Nutritionals Division Strong Net Sales Performance +22.8% • Strong brand awareness of existing major 3,325 products 2,709 Kalbe’s Products Market Share 2013 Diabetasol 88.0% Milna 65.7% 30 Sep 2013 30 Sep 2014 Prenagen 57.0% (Unaudited) (Unaudited) Morinaga Chil Mil 8.1% Morinaga BMT 10.4% Powdered
Slide 22: Nutritionals Division: Launching of New Products
Nutritionals Division Launching of New Products Diva Health drink with collagen and antioxidant for skin care Nutrive Benecol Smoothie with special ingredient to lower cholesterol Fitbar A healthy snack bar with low calories, zero cholesterol and zero trans fat. Zee Powdered milk for kids and tweens
Slide 23: 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 24: Distribution & Logistics Division
Distribution & Logistics Division The Most Extensive Distribution Network RDC Branches Cities 2 69 51 24
Slide 25: Distribution & Logistics Division
Distribution & Logistics Division Net Sales Performance on Consolidated Basis +2.0% • Distribution & Logistics Division is run under PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly 3,978 4,057 listed company (91.75% owned). • Net sales represents the 3rd party product sales and distribution
Slide 26: 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 26
Slide 27: Distribution & Logistics Division: Growth Drivers
Distribution & Logistics Division Growth Drivers Medical Devices Retail Health Services : 80 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 28: 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 29: 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 2,350 medical • Approximately 1,000 • Over 1,000 marketing marketing personnel representa
Slide 30: Manufacturing Infrastructure
Manufacturing Infrastructure Operates 10 GMP facilities complying with international standards Products Building Area Facility Production Lines Licenses Certification Manufactured (m2) 9 lines of Non Beta Lactam Products ISO 9001, ISO 14001, Kalbe Farma 448 56,746 Astellas (tablet, capsule, cream, l
Slide 31: Section 4: Financial Overview
Not all collagen is the same, it’s time to choose the right one SECTION 4 Financial Overview
Slide 32: Consolidated Sales
Consolidated Sales Strong Top Line Growth of Internal Kalbe Products Net Sales (in Rp Bn) 30 Sep 2013 30 Sep 2014 11.5% (Unaudited) (Unaudited) 12,758 11,440 22.8% 15.5% 2.0% 11.5% 3,978 4,057 2,870 3,201 2,709 3,325 1,883 2,175 Prescription Consumer Health Nutritionals Distribution & Consolidation
Slide 33: Consolidated Operating Performance
Consolidated Operating Performance Stable Margin Gross Profit Margin Operating Expenses to Net Sales Ratios 48.7% 48.1% 0.8% 0.9% 0.8% 48.0% 4.7% 4.8% 4.8% Selling & Marketing 31 Dec 2013 30 Sep 2013 30 Sep 2014 26.4% 27.1% 26.8% General & (Audited) (Unaudited) (Unaudited) Administrative Operating P
Slide 34: Consolidated Net Earnings
Consolidated Net Earnings Positive Earnings Growth Income Before Tax Net Income (in Rp bn) (in Rp bn) +9.6% +8.8% 1,988 1,814 1,487 1,366 30 Sep 2013 30 Sep 2014 30 Sep 2013 30 Sep 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) • Income before tax margin declined from 15.9% in YTD • Net income
Slide 35: Working Capital Management
Working Capital Management Improving Days of Inventory Days of Inventory has started No. of days 158 to improve after temporary spike since December 2013 129 131 120 108 123 142 114 132 122 124 Net Operating Cycle has 110 115 107 been decreased by 35 days from 158 days in 2008 to 123 50 49 43 45 44
Slide 36: Solid Financial Position
Solid Financial Position Rp 1.08 Trillion of Net Cash Position Total Debt and Gearing Ratio Cash & Net Cash Balance 600 15.0% 2,291 2,151 Total Debt in Rp Billion 1,902 1,877 1,860 500 7.9% 1,562 1,655 1,609 400 Gearing Ratio 7.2% 10.0% 1,426 6.0% 1,222 300 1,081 2.9% 843 200 2.3% 5.0% 0.5% 100 340
Slide 37: Section 5: Strategies & Outlook 2014
Not all collagen is the same, it’s time to choose the right one SECTION 5 Strategies & Outlook 2014
Slide 38: KALBE Business Strategies
KALBE Business Strategies Improve marketing & Strengthen business Go Global - deeper sales effectiveness portfolio through ASEAN penetration, product innovation & more product M&A offering Local penetration, Enhance human expand distribution capital development coverage 38
Slide 39: Corporate Actions
Corporate Actions Dividend Payment for Fiscal Year 2013 Historical Dividends Kalbe has obtained the approval of the AGMS 60% 20.0 80% on May 14, 2014 to pay dividend of Rp 797 bn, 51% 51% 15.0 42% 60% or equivalent to Rp 17 per share. This reflects a 26% 10.0 17% 19.0 19.0 40% payout ratio of 42% fo
Slide 40: 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 Care Dr. Boen Exte
Slide 41: Outlook 2014
Outlook 2014 Revised Earnings Guidance 2014 Initial Outlook Revised Outlook 1. Year-on-year Sales Growth 14% - 16% 11% - 13% * 2. Operating Profit Margin 16% - 17% 16% - 17% 3. Earnings per Share Growth 15% - 17% ** 11% - 13% ** 4. Dividend Payout Ratio 42% 42% * Mostly derived from slower growth of
Slide 42: Section 6: Appendix
Not all collagen is the same, it’s time to choose the right one SECTION 6 Appendix Financial Information YTD September 30, 2014 (Unaudited)
Slide 43: Unaudited Financial Statement YTD 2014: Balance Sheets (Assets)
Unaudited Financial Statement YTD 09 2014 Consolidated Balance Sheets 31 December 2013 30 September 2014 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,426,460,966,674 1,609,375,003,991 12.8% Trade Receivables, Net 2,145,218,904,462 2,301,229,340,901 7.3% Other Rece
Slide 44: Unaudited Financial Statement YTD 2014: Balance Sheets (Liabilities)
Unaudited Financial Statement YTD 09 2014 Consolidated Balance Sheets 31 December 2013 30 September 2014 % Change (Audited) (Unaudited) LIABILITIES CURRENT LIABILITIES Bank Loans 583,823,955,413 509,160,049,247 -12.8% Trade Payables 1,151,654,579,697 1,229,927,237,928 6.8% Other Payables 379,156,683
Slide 45: Consolidated Statement of Income
Unaudited Financial Statement YTD 09 2014 Consolidated Statement of Income 30 September 2013 30 September 2014 (Unaudited) (Unaudited) % Change NET SALES 11,439,694,257,742 12,758,469,473,880 11.5% COST OF GOODS SOLD 5,868,531,191,229 6,627,470,848,873 12.9% % to NS 51.3% 51.9% 0.6% GROSS PROFIT 5,5
Slide 46: Consolidated Statement of Income
Unaudited Financial Statement YTD 09 2014 Consolidated Statement of Income 30 September 2013 30 September 2014 (Unaudited) (Unaudited) % Change INCOME FOR THE PERIOD 1,400,852,746,005 1,526,031,339,313 8.9% % to NS 12.2% 12.0% -0.3% OTHER COMPREHENSIVE INCOME (EXPENSES) 24,440,601,546 1,934,931,420
Slide 47: Consolidated Statement of Cash Flows
Unaudited Financial Statement YTD 09 2014 Consolidated Statement of Cash Flows 30 September 2013 30 September 2014 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 12,178,139,579,866 13,811,617,870,985 13.4% Cash Paid to Suppliers and Employees (7,63
Slide 48: Consolidated Statement of Cash Flows
Unaudited Financial Statement YTD 09 2014 Consolidated Statement of Cash Flows 30 September 2013 30 September 2014 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Bank Loans 815,284,153,306 1,844,926,182,883 126.3% Receipts of Capital Contributions from Subsidiari
Slide 49: 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 49