PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — Q3 2008 Earnings Presentation
47 slides from PT Kalbe Farma Tbk's earnings presentation, November 2008
Slide 1: Company Performance YTD September 2008
Company Performance YTD September 2008
Slide 2: Contents
Contents Part 1 Kalbe at a Glance Part 2 Pharmaceutical Industry Overview Part 3 Business Overview A. Prescription Pharmaceuticals B. Nutritionals C Consumer Health C. D. Distribution and Packaging Part 4 Operational Overview Part 5 Growth Drivers Part 6 Financial Overview Part 7 Recent Activities P
Slide 3: Part 1 Kalbe at a Glance
Part 1 Kalbe at a Glance 3
Slide 4: Company Highlights
Company p y Highlights g g Largest Publicly-Listed ♦ More than 42-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 has become the l
Slide 5: Historical Data
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 2007–2015 1966 1977 1981 1985 1989 1991 1993 1994 1996 1997
Slide 6: Corporate Overview
Corporate p Overview Established in 1966 is a public company since 1991 and listed on the Indonesia Stock Exchange, Kalbe Farma is now the largest publicly-listed pharmaceutical company in Southeast Asia • Kalbe markets and sells its p products in 6 major j markets in Southeast Asia which in aggrega
Slide 7: Corporate Overview: Divisions of Kalbe Group
Corporate p Overview 4 Divisions of Kalbe Group KALBE GROUP Prescription Consumer Distribution & Nutritionals Pharmaceuticals Health Packaging Energy Drink OTC Pharmaceuticals 7
Slide 8: Business Overview
Business Overview Kalbe Farma is the market leader in prescription pharmaceuticals, nutritionals and consumer health products in Indonesia Prescription Distribution & Nutritionals Consumer Health Ph Pharmaceuticals ti l P k i Packaging • Licensed products • Pregnancy nutrition • OTC Pharmaceuticals
Slide 9: Corporate Subsidiaries
Corporate Subsidiaries Pharmaceuticals Nutritionals Distribution & Consumer Health 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 Adiluh
Slide 10: Awards & Achievements
Awards & Achievements Kalbe’s K lb ’ excellent ll t performance f is i recognized i d by b a number b off organizations i ti through the following awards Year 2008: • Kalbe Group received 3 ICSA 2008 medalion. • PT Bintang Toedjoe received K3 Award for implementing K3 System Management consistently
Slide 11: Part 2 Pharmaceutical Industry Overview
Part 2 Pharmaceutical Industry Overview 11
Slide 12: Pharmaceutical Industry in Indonesia
Pharmaceutical Industry in Indonesia • In 2007, the size of local pharmaceutical market was IDR 24.6 trillion (approx. USD2.8 billion) or grew by 9.2% and is expected to grow around d 9.1% 9 1% in i 2008. 2008 • The market comprised of 60% Prescription Pharmaceutical products and 40% Over the Counte
Slide 13: 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 SANBE KALBE GROUP 14% 4% 8% GROUP 14% 8% DEXA SANBE MEDICA DEXA 6% GROUP MEDICA DEXA 10% GROUP MEDIC
Slide 14: Part 3 Business Overview
Part 3 Business Overview 1. Prescription Pharmaceuticals 2. Nutritionals 3 3. Consumer Health 4. Distribution & Packaging 14
Slide 15: Business Overview: Prescription Pharmaceuticals
Business Overview Prescription Pharmaceuticals Licensed Products Branded Generics Generics Number of • 69 products • 236 products • 41 products Products • General Anti-infectives;Cefspan. • General Anti-infectives: • General Anti-infectives: Cefotaxime , Fixef; Cravit, Reskuin; Tarivid Broadced, Mer
Slide 16: Prescription Pharmaceuticals Market Share
Business Overview Prescription Pharmaceuticals Kalbe is the number 1 player in prescription pharmaceuticals market Prescription Pharmaceuticals Market Share KALBE GROUP 13% DEXA MEDICA GROUP 7% SANBE 7% PFIZER GROUP * Others * 4% 65% SANOFI‐AVENTIS GRP 4% Total Market= IDR 8,17 T Note: Prescription
Slide 17: Part 3 Business Overview
Part 3 Business Overview 1. Prescription Pharmaceuticals 2. Nutritionals 3 3. Consumer Health 4. Distribution & Packaging 17
Slide 18: Business Overview: Nutritionals
Business Overview Nutritionals Nutritionals Number of Products 13 products • Nutrition for pregnant mothers • Prenageng : 61.4% market share • Baby biscuits Key • Milna : 65.3% market share Products • Baby milk • Morinaga BMT :10.0% market share • Chil Mil :11.0% market share Cli i l F • Clinical Fo
Slide 19: Nutritionals Market Share
Business Overview Nutritionals Nutritionals Market Share Nutrifood Gizindo Others 3% 3% 2% Fonterra 6% Mead Johnson 5% Nestle 30% Abbott 5% Wyeth 5% Nutricia 8% Kalbe Nutritionals Sari Husada 15% 9% FFI 11% Total Market = IDR 8.5T 仌 Note: 1.Source: AC Nielsen data SEM Q2 2008 2. Nutrition Division c
Slide 20: Part 3 Business Overview
Part 3 Business Overview 1. Prescription Pharmaceuticals 2. Nutritionals 3 3. Consumer Health 4. Distribution & Packaging 20
Slide 21: Business Overview: Consumer Health
Business Overview Consumer Health OTC Pharmaceuticals Energy Drink Number of • 28 products • 2 products Products • Antacid (Promag & Waisan) • Extra Joss 85.4% market share 30% market k t share h – volume l (I (Indonesia) d i ) • Cough Remedies (Woods,Komix, Mextril) Key 45.7% market share Products
Slide 22: Consumer Health Market Share
Business Overview Consumer Health OTC Pharmaceuticals Market Share Energy Drink Market Share Others KALBE Extra Joss 8% GROUP M‐150 30% 16% 8% TEMPO Kuku Bima GROUP 14% 9% * Others Oth * 58% SOHO GROUP 8% Hemaviton Kratingg KONIMEX PHAROS 18% Daeng 5% GROUP 22% 4% Total Market = IDR 6,25 T Total Mar
Slide 23: Part 3 Business Overview
Part 3 Business Overview 1. Prescription Pharmaceuticals 2. Nutritionals 3 3. Consumer Health 4. Distribution & Packaging 23
Slide 24: Business Overview: Distribution & Packaging
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 Medical Instrument
Slide 25: Distribution & Packaging Revenues by Composition
Business Overview Distribution & Packaging Distribution Revenues by Composition Sep 2007 Distribution Revenues by Composition Sep 2008 3rd 3rd Party Party 23% 23% Kalbe Kalbe 77% 77% Packaging Revenues by Composition Sep 2007 Packaging Revenues by Composition Sep 2008 Kalbe Kalbe 35% 45% 3rd Party 5
Slide 26: Part 4 Operational Overview
Part 4 Operational Overview 26
Slide 27: Marketing & Sales Infrastructure
Operational Overview Marketing g & Sales Infrastructure Kalbe has a marketing and sales force of approximately 6,000 providing coverage for more than 1 million outlets in Indonesia Infrastructure Indonesian Coverage Comments • Sales force of over 2,200 • Directly cover 150,000 outlets • Largest sale
Slide 28: Manufacturing Infrastructure
Operational Overview Manufacturing a u actu g Infrastructure ast uctu e 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
Slide 29: Part 5 Growth Drivers
Part 5 Growth Drivers 29
Slide 30: Growth Drivers: Development of Prescription Pharmaceuticals Portfolio
Growth Drivers Development p of Prescription p Pharmaceuticals Portfolio Licensed Branded Generics Generics Innogene ♦ Key therapeutic targets ♦ In-house drug delivery system ♦ Key therapeutic ♦ Bio-generics market for NCEs – Key target areas: cardiology, targets ♦ Proprietary drug development – Onc
Slide 31: Growth Drivers: Nutritionals and Consumer Health Portfolio
Growth Drivers Development of Nutritionals and Consumer Health Products Portfolio Nutritionals OTC Pharmaceuticals Energy gy Drink • International market and • Preventive products • International market and brand expansion • Balance products: brand expansion - Prenagen antioxidants immune system ant
Slide 32: Growth Drivers: Expansion in South East Asia
Growth Drivers Expansion in South East 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 PHILIPPINES ♦ Marketing and brand building of Extra Joss THAILAND ♦ Ma
Slide 33: Part 6 Financial Overview
Part 6 Financial Overview 33
Slide 34: Financial Overview: 2005-2007
Financial Overview Revenues, Operating Income, and Net Income from 2005 - 2007 Revenues Operating Income Net Income 7500 766.5 800 1140.0 123.6 125.0 720.0 77.2 80.0 1120.0 700.0 73.7 7000 750 1129.4 120.0 75.0 116.7 705.7 661.1 680.0 7004.9 700 1100 0 1100.0 6500 115.0 660.0 676.6 70.0 603.9 650 10
Slide 35: Revenue, Gross Profit, Operating Income, Net Income YTD September 2008
Financial Overview Revenue, Gross Profit, Operating Income, and Net Income YTD September 2008 5,718 ∆ 10.96% 5,153 in IDR (Billlion) ∆ 6.42% 2,634 2,803 ∆ -12.23% 932 818 605 504 ∆ -16.69% YTD Sep 2007 YTD Sep 2008 Revenues Gross Profit Operating Income Net Income Note: • Based on Financial Report T
Slide 36: Revenues Contribution by Division
Financial Overview Revenues Contribution by Division YTD September 2008 Revenues Contribution Revenues Contribution YTD September 2007 YTD September 2008 Distribution & Pack. Pack Prescription p Distribution Prescription 24% Pharma & Pack. Pharma 26% 26% 27% Consumer Nutritionals Consumer Nutrition
Slide 37: Revenues by Division
Financial Overview Revenues by Division YTD September 2008 5,718 5,153 1 570 1,570 1,418 1,372 1 461 1,461 1,334 1,180 1,269 1,266 ∆ 17.69% ∆ 20.17% ∆ -7.51% ∆ 15.40% ∆ 10.96% P Prescription i ti Pharma Prescription Ph Pharma N t iti Nutritionals Nutrition l CConsumer H Consumer Health lth Health Di
Slide 38: Consolidated Income Statements Highlights
KALBE FARMA TBK. ============================================================= CONSOLIDATED INCOME STATEMENTS HIGHLIGHTS In IDR Billion Jan – Sep 2008 % to NS Jan – Sep 2007 % to NS % Growth NET SALES 5,718 100.0% 5,153 100.0% 11.0% COGS 2,915 51.0% 2,519 48.9% 15.7% GROSS PROFIT 2,803 49.0% 2,634 5
Slide 39: Consolidated Balance Sheets Highlights: Assets
KALBE FARMA TBK. ============================================================= CONSOLIDATED BALANCE SHEETS HIGHLIGHTS In IDR Billion 30 Sep 2008 30 Sep 2007 % Growth ASSETS CURRENT ASSETS Cash & cash equivalent 916 1 091 1,091 -16.0% 16 0% Short-term investment, net 155 243 -36.2% Trade receivables
Slide 40: Consolidated Balance Sheets Highlights: Liabilities
KALBE FARMA TBK. ============================================================= CONSOLIDATED BALANCE SHEETS HIGHLIGHTS In IDR Billion 30 Sep 2008 30 Sep 2007 % Growth LIABILITIES CURRENT LIABILITIES Short-terms loans 119 44 170.4% Trade Payables 539 408 32.1% Other Payables 41 32 28.1% Accrued Expens
Slide 41: Consolidated Cash Flows Statements Highlights
KALBE FARMA TBK. ============================================================= CONSOLIDATED CASH FLOWS STATEMENTS HIGHLIGHTS In IDR Billion Jan - Sep 2008 Jan - Sep 2007 % Growth NET CASH from: Operating Activities 378 188 101.1% Investing Activities (156) (25) 524.0% Financing Activities (442) (339
Slide 42: Part 7 Recent Activities
Part 7 Recent Activities 42
Slide 43: Recent Activities
Recent Activities RISTEK-KALBE SCIENCE AWARDS : Kalbe Farma together with Indonesian Ministry of Research & Technology has held Recognizing Scientific Achievement event. The event was held on Oct 31,2008 at Four Seasons Hotel. Kalbe Nutritionals launched Nutrive Benecol, the world’s first liquid cho
Slide 44: Recent Activities: Shares Buyback
Recent Activities Shares Buyback Shares Buyback Phase I Phase I has ended on August 7, 2008. T t l repurchased Total h d shares h iin Ph Phase I iis 4 4.9% 9% off ttotal t l iissued d and d ffully ll paid id capital. it l The average cost price/share was IDR 1,065. Total fund used for the share repu
Slide 45: Part 8 Future Outlook
Part 8 Future Outlook 45
Slide 46: Future Outlook
Future Outlook • Kalbe Farma has designed its business portfolio on 8 footholds: Kalbe Farma Tbk Health International Pharma Consumer Nutrition Logistic MIDI Packaging Services Business • Strengthen and expand Kalbe s business portfolio. Kalbe’s portfolio • Optimize and improve productivity and supp
Slide 47: Thank You / Important Notice
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