PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — FY2008 Earnings Presentation
51 slides from PT Kalbe Farma Tbk's earnings presentation, April 2009
Slide 1: Full Year 2008 Company Results (Audited) & Outlook for 2009
Full Year 2008 Company Results (Audited) & Outlook for 2009 1 Excellence and Alignment
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 the 31 December 2008 unaudited results of the Company. The information
Slide 3: Full Year 2008 Highlights
Full Year 2008 Highlights • Double Digit Revenue Growth Up 12.5%. Gross Profit Margin -2.4% • Pressured Margins Operating Profit Margin -1.6% Net Income Margin -1.1% • Improved Working Capital NOC down by 2 days. Management Stronger cash generation up by more than Rp 445 Bn. • Solid Financial Positi
Slide 4: Double Digit Revenue Growth
Double Digit Revenue Growth 4 Excellence and Alignment
Slide 5: Double Digit Revenue Growth
Double Digit Revenue Growth • Revenue has increased by 12.5% to IDR 7,877 Bn in 2008. • The growth was primarily driven by Nutritionals Division of 20.5% and Distribution and Packaging Division of 24.5%. • Sales of Energy Drink has not yet recovered and therefore the sales of Consumer Health Divisio
Slide 6: Revenue Contribution per Division
Revenue Contribution per Division • As a result of revenue drop, the revenue contribution of Consumer Health Division has declined from 26% in 2007 to 21% in 2008. FY Dec 2007 (Audited) FY Dec 2008 (Audited) 6 Excellence and Alignment
Slide 7: Indonesian Pharmaceutical Market
Indonesian Pharmaceutical Market • YTD December 2008, Kalbe was the market leader with a market share of 14%, well ahead the rest of the players in the total pharmaceutical industry. Pharmaceutical Market Share ITMA – YTD Dec 2008 Total Market = IDR 30.14 Trillion Source : IMS Health YTD 12 2008 7 E
Slide 8: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Number of Key Products Products Prescription Pharmaceuticals Sales Contribution in 2008 (Audited) •General Anti-infectives; Cefspan. Fixef; Cravit, Reskuin, by Product Categories Tarivid,Cefizox, Cefazol, Bactesyn. • Hospital Solutions: Octalbin. Licensed 69 • O
Slide 9: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Prescription Pharmaceuticals • Prescription Pharmaceuticals net sales Net Sales 2006 – 2008 grew 18.0% to IDR 2,131 Bn in 2008 with (in IDR Billion) CAGR of 21% in the past 3 years. ∆23.9% ∆ 18.0% • With more than 2,000 medical 2,131 2,131 1,806 1,809 1,457 repr
Slide 10: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division • Rank #1 in the Prescription Pharmaceuticals Total Market in the last consecutive 3 years. • The division has gained significant market share since marketing team reorganization following the merger of Kalbe and its subsdiary, PT. Dankos Laboraties Tbk in 2006.
Slide 11: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Enhanced Business Portfolio • Innogene Kalbiotech Pte Ltd, a subsidiary of Kalbe based in Singapore, spearheads the innovation and globalization for Kalbe with research-based products. • Currently Innogene holds the licensing and marketing rights for Nimotuzumab
Slide 12: Consumer Health Division
Consumer Health Division Consumer Health Net Sales 2006 – 2008 (in IDR Billion) • Consumer Health division consists of: 1,840 1,856 ∆ 0.9% 1,856 – OTC Pharmaceuticals 11 brands; and 1,840 ∆ (11.2)% 1,653 1,648 – Energy Drink. • Consumer Health net sales was down 2006 2007 2008 by 11.2% to IDR 1,648
Slide 13: Consumer Health Division
Consumer Health Division Market Share of Kalbe’s top products as per December 2008 Market Share Therapeutic Class Kalbe’s Products (by volume) December 2008 Antacid Promag Reg, Promag DA, Waisan 82.5% Anti Diarrhea Neo Entrostop 44.9% Cough Remedies Komix, Woods, Mextril 45.0% Cold Remedies Mixagrip
Slide 14: Consumer Health Division
Consumer Health Division • OTC Pharmaceuticals Division holds # 1 position with 15% market share. • Extra Joss continued to become # 1 player in the Energy Drink market with 38% market share. OTC Pharma Market Share Energy Drink Market Share ITMA – YTD December2008 YTD December2008 (by volume) Total
Slide 15: Consumer Health Division
Consumer Health Division Energy Drink 2008 – A Correction Year 1. Distribution – Increase coverage especially in the rural areas. 2. Reorganization – New sales and marketing team. 3. Communication – Improve communication by emphasizing healthy benefits of Extra Joss ; – Rearrange promotional media p
Slide 16: Consumer Health Division
Consumer Health Division Energy Drink • Currently Extra Joss is the market leader in the Philippines with market share of more than 50% (in unit). 16 Excellence and Alignment
Slide 17: Consumer Health Division
Consumer Health Division Enhanced Business Portfolio • Launched new products with “healthier” concept : – Ready to drink • Fatigon Hydro+, an isotonic drink made from natural coconut water in March 2008 – Powder form • JossFit with 2 different flavors – Tea and Honey – Ginger 17 Excellence and Align
Slide 18: Nutritionals Division
Nutritionals Division • Complete range of nutritional products, mostly in the form of powder milk, catered to expecting & lactating mothers, babies, toddlers, children, and adults. • Currently, there are 8 brands marketed by the Division. Expecting Lactating Baby Toddler 25+ 35+ Clinical 18 Excellen
Slide 19: Nutritionals Division
Nutritionals Division Nutritionals • Nutritionals division is the fastest Net Sales 2006 – 2008 growing division in Kalbe and its net (in IDR Billion) sales were up by 20.5% from IDR 1,600 ∆ 20.9% 1,927 ∆ 20.5% Bn in 2007 to IDR 1,927 Bn in 2008, with 1,600 CAGR of 21% in the past 3 years. 1,323 • K
Slide 20: Nutritionals Division
Nutritionals Division • As per December 2008, Kalbe Nutritionals, spearheaded by PT Sanghiang Perkasa, controlled around 5% of market share in the powder milk market and around 63% of market share in baby biscuit market. Powder Milk Market Share Premium Powder Milk Baby Biscuit Market Share YTD Dece
Slide 21: Nutritionals Division
Nutritionals Division Enhanced Business Portfolio • Launching several new products in 2008. – Nulife No Calorie Sweetener – Nulife Oatmeal+ Oatbran – Nulife Crispy Cereal Bar – Nutrive Benecol, • Smoothie with special ingredient to lower cholesterol. 21 Excellence and Alignment
Slide 22: Distribution & Packaging Division
Distribution & Packaging Division Sales Composition • Increasing 3rd party contribution to division’s total sales. Distribution & Packaging Distribution & Packaging Sales Composition in 2007 (Audited) Sales Composition in 2008 (Audited) 3rd Party 3rd Party 40% 46% Kalbe Kalbe 60% 54% Distribution Sa
Slide 23: Distribution & Packaging Division
Distribution & Packaging Division Distribution & Packaging • Net Sales figures represent the Net Sales 2006 – 2008 (in IDR Billion) net sales of 3rd party principals. ∆ 20.0% ∆ 24.5% 2,170 1,742 • Distribution & Packaging division 1,452 net sales grew 24.5%, the highest among all divisions. Its CAGR
Slide 24: Distribution & Packaging Division
Distribution & Packaging Division Distribution Net Sales 2006 -2008 (in IDR Billion) • Revenue of Distribution Division, ∆ 26.3% conducted under Enseval Putera ∆ 21.7% Megatrading (EPMT), grew by 26.3% while revenue of Packaging Division, conducted under Kageo Igar (IGAR), grew by 15.1%. 2006 2007 2
Slide 25: Distribution & Packaging Division
Distribution & Packaging Division Distribution Division • The charts below show the contribution of the revenue in the Distribution division. YTD Dec 2007 (Audited) YTD Dec 2008 (Audited) MIDI Others MIDI Others RMT RMT 5% 0% 7% 0% 7% Ethical 8% Ethical 25% 26% Nutrition 25% Nutrition 26% OTC OTC 12
Slide 26: Distribution & Packaging Division
Distribution & Packaging Division Packaging Division • The charts below show the contribution of the revenue from Packaging Division. YTD Dec 2007 (Audited) YTD Dec 2008 (Audited) Paper Folding Paper Folding Carton Carton Packaging Packaging 16% 17% Aluminium Foil Packaging Aluminium 83% Foil Packag
Slide 27: Distribution & Packaging Division
Distribution & Packaging Division Enhanced Business Portfolio • In 2008, EPMT has set up 2 subsidiaries, wholly owned, namely PT. Enseval Medika Prima and PT. Global Chemindo Megatrading to accelerate growth of medical diagnostic business and raw material trading. • The sales growth of these 2 busin
Slide 28: Distribution & Packaging Division
Distribution & Packaging Division Enhanced Business Portfolio • Opening of Mitrasana Clinics as a one-stop service, includes family doctor, pharmacy, laboratory, and convenience store. • Currently, there are 4 clinics in Cikarang, +/- 50 km from Jakarta and intends to open about 6 more clinics in 20
Slide 29: Pressured Margins
Pressured Margins 29 Excellence and Alignment
Slide 30: Pressured Margins
Pressured Margins Gross Profit Margin • Despite the sharp increase of raw material prices, consolidated gross profit margin has declined by 2.4% driven primarily by drop of margin in the Nutritionals division. – The price of skim powder milk has increased by more than double since 2006. • Gross Prof
Slide 31: Operating Efficiencies
Operating Efficiencies Operating Expenses to Net Sales Ratios ▼0.80% ▼0.91% • In 2008, the costs of operation costs have been declined by 0.80% due to rationalization of marketing expenses ▲0.09% and efficiencies in administration ▲0.03% costs. • Marketing expenses have been able to be controlled at
Slide 32: Improved Working Capital Management
Improved Working Capital Management 32 Excellence and Alignment
Slide 33: Supply Chain Management Implementation
Supply Chain Management Implementation • Starting 2008, Kalbe has implemented End – to – End Supply Chain Management with a major milestone in 2008 of implementing single inventory system for prescription pharmaceutical & over the counter divisions. • Key deliverables : – Production Plan based on na
Slide 34: Improved Working Capital Management
Improved Working Capital Management FY 2007 FY 2008 ∆ • With implementation of end – to – (Audited) (Audited) Change end Supply Chain Management Days of Account Receivables 45 days 43 days 2 days (SCM), inventory level has been able to be managed efficiently. As the Days of Inventory 149 days 142 da
Slide 35: Solid Financial Position
Solid Financial Position 35 Excellence and Alignment
Slide 36: Strong Cash Generation
Strong Cash Generation • EBITDA has increased with CAGR of 6% since 2004. 1,321 1,295 1,235 1,221 1,030 2004 (Audited) 2005 (Audited) 2006 (Audited) 2007 (Audited) 2008 (Audited) 36 Excellence and Alignment
Slide 37: Improved Gearing Ratio
Improved Gearing Ratio • Debt reduction and gearing ratio improvement. 2004 2005 2006 2007 2008 (Audited) (Audited) (Audited) (Audited) (Audited) 37 Excellence and Alignment
Slide 38: Increased Net Cash Position
Increased Net Cash Position • Since 2006, Kalbe has always been in net cash position. – Net Cash balance as of Dec 31, 2008 was IDR 917 Bn. 2004 2005 2006 2007 2008 2004 (Audited) 2005 (Audited) 2006 (Audited) 2007 (Audited) 2008 (Audited) 38 Excellence and Alignment
Slide 39: Earning Per Share Growth
Earning Per Share Growth • 4 year EPS - CAGR (2004 – 2008) is 13%. 2004 2005 2006 2007 2008 (Audited) (Audited) (Audited) (Audited) (Audited) * Based on outstanding shares less applicable treasury stocks 39 Excellence and Alignment
Slide 40: Cash Distribution to Shareholders
Cash Distribution to Shareholders 2007 - 2008 • Total cash distributed to shareholders in year 2007 & 2008 was approximately Rp. 770 Bn. – Cash Dividend • Rp 10 per share for financial year 2006 and 2007 or approximately Rp 200 Bn. – Share Repurchase Program • As of December 31, 2008, Kalbe has repu
Slide 41: Outlook 2009
Outlook 2009 41 Excellence and Alignment
Slide 42: Outlook 2009
Outlook 2009 Partner in new products Regional & international business expansion Revive Energy Drink business Projected Sales Growth 12 -14% Net Income Margin Improvement 0.5% - 1% Collaboration with Global Strategic Players Aligned SCM Implementation Distribution coverage expansion especially in re
Slide 43: Outlook 2009
Outlook 2009 • Extend the implementation of end – to – end Supply Chain Management to OTC pharmaceutical and Nutritional divisions • Implementation of Strategy throughout the Group. – roductivity • Improving both employee productivity and process productivity. • Implementing Value Stream Mapping, Le
Slide 44: Appendix
Appendix 44 Excellence and Alignment
Slide 45: Consolidated Statements of Income
Consolidated Statements of Income FY 2007 (Audited) FY 2008 (Audited) % Change NET SALES 7,004,909,851,908 7,877,366,385,633 12.45% COGS 3,453,278,199,660 4,073,725,872,514 17.97% % to NS 49.30% 51.71% 2.41% GROSS PROFIT 3,551,630,652,248 3,803,640,513,119 7.10% % to NS 50.70% 48.29% -2.41% OPERATIN
Slide 46: Consolidated Balance Sheets
Consolidated Balance Sheets FY 2007 (Audited) FY 2008 (Audited) % Change ASSETS CURRENT ASSETS Cash and cash eq 1,116,346,134,197 1,321,797,625,299 18.40% Short term investments 175,833,152,370 124,748,588,599 -29.05% Trade Receivables 869,572,349,473 935,357,382,409 7.57% Other Receivables 57,501,2
Slide 47: Consolidated Balance Sheets
Consolidated Balance Sheets FY 2007 (Audited) FY 2008 (Audited) % Change LIABILITIES CURENT LIABILITIES Short-term Loans 43,716,669,680 145,888,622,451 233.71% Trade Payables 328,290,780,126 305,567,569,948 -6.92% Taxes Payable 127,041,938,910 177,900,635,770 40.03% Accrued Expenses 207,403,837,295
Slide 48: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows FY 2007 (Audited) FY 2008 (Audited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 6,962,234,826,198 7,804,970,069,835 12.10% Cash paid to suppliers and employees (4,423,686,203,531) (4,505,841,240,394) 1.86% Cash provided by operatio
Slide 49: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows FY 2007 (Audited) FY 2008 (Audited) % Change CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales of short-term investments and time deposits 883,224,708,073 460,518,817,622 -47.86% Interest income received 70,719,155,436 56,492,357,164 -20.12% Proceeds from
Slide 50: Corporate Subsidiaries
Corporate Subsidiaries Pharmaceuticals & Consumer Health Distribution Bintang Toedjoe Kalbe International Pte. Ltd EPMT 99.90% ownership 100.00% ownership 58.19% ownership Dankos Farma Kalbe Vision Pte. Ltd Tri Sapta Jaya 99.98% ownership 100.00% ownership 58.18% ownership Finusolprima Farma Innogen
Slide 51: Thank You
Thank You For further information, please contact: Vidjongtius Corporate Secretary PT Kalbe Farma Tbk. Jl. Let. Jend. Suprapto Kav.4 Jakarta 10510 Telp: (021) 428-73888 Fax: (021) 428-73680 Email: vidjongtius@kalbe.co.id Website: www.kalbe.co.id 51 Excellence and Alignment