PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — Corporate Update (March 2008)
60 slides from PT Kalbe Farma Tbk's corporate update, March 2008
Slide 1: Company Update (FY2007) – Company Performance YTD Mar 2008
Company Update Company Update (FY2007) Company Performance YTD Mar 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 Farma is the market leader in prescription pharmaceuticals, nutritional and consumer health products in Indonesia Prescription Distribution and Nutritional Consumer Health Pharmaceutical Packaging Licensed products Pregnancy nutrition OTC Cons
Slide 9: 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 10: 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 11: 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 12: 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 13: Section III. Industry Overview
Section III. Industry Overview 13
Slide 14: 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 15: 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 16: 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 17: 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 18: Top Manufacturers in ITMA, IHPA and IPA Market
III. Industry Overview Top 10 Manufacturers in ITMA, IHPA and IPA Market. ITMA Market Share – Q1 2008 IHPA Market Share – Q1 2008 IPA Market Share – Q1 2008 KALBE FARMA 7.4% KALBE FARMA SANBE 8.9% PFIZER DEXA MEDICA 5.4% DEXA SANBE 5.3% 5.2% MEDICA 8.0% 4.0% SANBE TEMPO 7.9% SOHO DEXA MEDICA KALBE S
Slide 19: Section IV. Business Overview A. Prescription Pharmaceuticals
Section IV. Business Overview A. Prescription Pharmaceuticals 19
Slide 20: 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 21: Kalbe is the number 1 player in prescription pharmaceuticals
IV. Business Overview – Prescription Pharma Kalbe is the number 1 player in prescription pharmaceuticals KALBE FARMA 7.4% SANBE 6.6% DEXA MEDICA 5.5% PFIZER 4.3% SANOFI-AVENTIS 3.5% OTHERS INDOFARMA 58.0% 3.4% KIMIA FARMA 3.0% INTERBAT 2.9% OTSUKA FAHRENHEIT 2.5% 2.9% Total Market = IDR 15.3 T Note:
Slide 22: Section IV. Business Overview B. Nutritional
Section IV. Business Overview B. Nutritional 22
Slide 23: 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 24: Business Overview – 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 25: Section IV. Business Overview C. Consumer Health
Section IV. Business Overview C. Consumer Health 25
Slide 26: 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 27: Consumer Health – 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 Naturade Gold 1.8% Others* 6.9% Extra Joss M-150 7.4% 30.6% Kuku Bima 13.1% Krating Daeng Hemaviton 21.9% 18.4% Total Market = IDR 360.1 B Source: AC Nielsen for
Slide 28: Consumer Health – Market Share OTC
IV. Business Overview – Consumer Health Kalbe is a market leader in every major category in which it competes Market Share – OTC TEMPO SCAN PACIFIC SOHO 8% 7% KALBE FARMA 17% * Others 47% KONIMEX 5% SANBE GLAXOSMITHKLIN 4% BAYER PHAROS E CH LANDSON INDONESIA INDONESIA 3% 2% 3% 4% Total Market = IDR
Slide 29: Section IV. Business Overview D. Distribution and Packaging
Section IV. Business Overview D. Distribution and Packaging 29
Slide 30: 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 31: Distribution & Packaging – Revenue Composition
IV.Business Overview – Distribution & Packaging Distribution revenues are mostly (76%) from own group Products, while packaging revenues more than half (56%) are from third parties. Distribution Revenues by Packaging Revenues by Composition Composition 3rd party Kalbe 32% 33% 3rd Group Kalbe 67% 68%
Slide 32: Section V. Operational Overview
Section V. Operational Overview 32
Slide 33: 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 34: 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 35: Manufacturing – Kalbe Farma Cikarang
V. Operational Overview – Manufacturing Infrastructure Kalbe Farma - Cikarang 35
Slide 36: Manufacturing – Bintang 7 Pulo Gadung
V. Operational Overview – Manufacturing Infrastructure Bintang 7 – Pulo Gadung 36
Slide 37: Manufacturing – Dankos Pulo Gadung
V. Operational Overview – Manufacturing Infrastructure Dankos – Pulo Gadung 37
Slide 38: Manufacturing – Bintang 7 Pulomas
V. Operational Overview – Manufacturing Infrastructure Bintang 7 – Pulomas 38
Slide 39: Manufacturing – Hexpharm Cipanas
V. Operational Overview – Manufacturing Infrastructure Hexpharm - Cipanas 39
Slide 40: Manufacturing – Fima Bekasi
V. Operational Overview – Manufacturing Infrastructure Fima - Bekasi 40
Slide 41: Section VI. Growth Drivers
Section VI. Growth Drivers 41
Slide 42: Growth Drivers – Nutritional and Consumer Health New Product Development
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 43: 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 44: 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 45: Section VII. Financial Overview
Section VII. Financial Overview 45
Slide 46: Financial Overview – Financial Performance
VII. Financial Overview – Financial Performance Kalbe’s revenues, operating income and net income have grown at a CAGR of 14%, 11% and 14%, respectively, from 2002 to 2007 Revenues Operating Income Net Income 8,000 800 800 90 7,000 700 1,200 140 700 80 120 600 70 6,000 600 1,000 USD (Mio) IDR (Bio)
Slide 47: Financial Overview – Financial Performance
VII. Financial Overview – Financial Performance Kalbe’s revenues, operating income and net income. 7,005 6,072 ∆ 15% 5,871 ∆ 3% ∆ 5% 1,106 1,071 ∆ -3% 1,129 653 677 ∆ 4% 706 ∆ 4% FY-2005 FY-2006 FY-2007 Revenues Operating Profit Net Income Notes: 1 Based on Audited Financial Report 2 Growth rates ba
Slide 48: Financial Overview – Revenue Drivers
Financial Overview – Revenue Drivers Net Sales of each Segment, based on 2006 and 2007 Financial Audited Report 1,806.3 1,599.9 1,457.1 1,468.4 1,322.6 1,205.9 1,053.9 944.1 895.7 802.3 246.2 274.0 ∆-10.4% ∆21.0% ∆11.6% ∆24.0% ∆11.3% ∆21.8% En Drink Nutrition OTC Ethical Packaging Distribution 2006
Slide 49: Financial Overview – Income Statements
Financial Overview – Income Statements As of December 31, 2006 & 2007 IDR (billion) FY 2006 % to N.S. FY 2007 % to N.S. % Change NET SALES 6,072 100.0 7,005 100.0 15.4 COGS 2,973 49.0 3,453 49.3 16.1 GROSS PROFIT 3,099 51.0 3,552 50.7 14.6 OPERATING EXPENSES : q Selling 1,631 26.9 1,979 28.3 21.3 q
Slide 50: Financial Overview – Balance Sheets (Assets)
Financial Overview – Balance Sheets As of December 31, 2006 & 2007 IDR (billion) FY 2006 FY 2007 % Change ASSETS CURRENT ASSETS q Cash and Cash Equivalents 1,262 1,116 (11.6) q Net Short Term Investments 260 176 (32.3) q Account Receivables 652 870 33.4 q Other Receivables 108 58 (46.3) q Inventory
Slide 51: Financial Overview – Balance Sheets (Liabilities)
Financial Overview – Balance Sheets As of December 31, 2006 & 2007 IDR (billion) FY 2006 FY 2007 % Change LIABILITIES CURRENT LIABILITIES q Short-term Loans 31 44 41.9 q Account Payables 344 328 (4.7) q Other Payables 40 46 15.0 q Accrued Expenses 120 207 72.5 q Taxes Payable 116 127 9.5 q Maturitie
Slide 52: Financial Overview – Cash Flow
Financial Overview – Cash Flow As of December 31, 2006 & 2007 IDR (billion) FY 2006 FY 2007 NET CASH: q Operating Activities 705.7 362.9 q Investing Activities 260.1 (42.30) q Financing Activities (596.20) (473.80) NET (DECREASE) INCREASE 369.6 (153.2) In cash and Cash Equivalents CASH AND CASH EQUI
Slide 53: Section VIII. Recent Activities
Section VIII. Recent Activities 53
Slide 54: Recent Activities – The New Logo
VIII. Recent Activities – The New Logo The new logo was launched in Mar 2007. This is to reflect the new Kalbe Previous New Kalbe’s new brand image was launched in Mar 2007. This new logo signifies Kalbe’s intention and commitment to share all the benefits from our techical know-how with our cus
Slide 55: 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 56: 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 57: 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 58: Section IX. Future Outlook
Section IX. Future Outlook 58
Slide 59: 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 60: 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