PT Kalbe Farma Tbk : Company Update - Q1 2024 Unaudited Results (02-May-2024)

About this update from Pt Kalbe Farma Tbk

Acceleration towards Health Resiliency Company Update 1Q24 Unaudited Results PT Kalbe Farma Tbk 1 st May 2024 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 31 March 2024 unaudited results of the Company. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of their respective affiliates, and their respective commissioners, directors and employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Any decision to purchase or subscribe for securities of the Company should not be made on the basis of the information contained in this presentation. The presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. This presentation and its contents are confidential unless they are or become generally available as public information in accordance with prevailing laws and regulations (other than as a result of a disclosure by you) and must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation, including the information and opinions contained herein, is provided as of the date of this presentation and is subject to change without notice, including change as a result of the issuance of 31 March 2024 unaudited results of the Company. This presentation includes "forward-looking statements". These statements contain the words "anticipate", "believe", "intend", estimate", "expect" and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans, objectives relating to the Company's products and services and anticipated product launches) are forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward- looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or reflection of any change in the Company's expectations with regard thereto, or any change in events, conditions or circumstances on which any statement is based. Market data and certain industry forecasts used in this presentation were obtained from market research, publicly available information and industry publications which have not been independently verified, and no representation is made as to the accuracy of such information. Table of Content Key Updates 4 Key Business Strategies 8 Financial Overview 21 Appendix 28 Key Updates 1Q24 1Q24 6.3% Net Sales 12.5% EPS growth growth On-track Progress in key projects Commercialization of Zerpidio, Efesa Dialyzer, Mobile X-Ray, CT-Scan, endoscopy, USG machine Key Updates Positive organic top-line growth in all business lines in the local market (Gr 8.2%) Sustained gross margin improvement trend Controlling operating expenses to secure the bottom line Radiopharmaceuticals facilities (cyclotrons) New Product Development Key Takeaways Solid Foundation for Future Growth Improving Margin Trend Improved 40.9% 40.4% Gross Profit Margin 39.7% 37.0% 37.0% 14.6% 14.6% Improved 12.0% 12.4% Operating Profit 9.3% Margin Strategies Key Risks • Managing supply chain and multiple sourcing • Global financial and geopolitical volatility impact to • Synergy and efficiency improvement currency and supply chain • USD Cash Reserve • Temporary challenges in international market Revenue Breakdown 160 • Distribution fee reallocation to businesses to reflect end-to-end view 140 Proforma Before Reallocation After Reallocation 120 100 24.2% 33.2% 26.2% Prescription Pharmaceuticals 38.5% Consumer Health 80 1Q24 1Q24 Nutritionals 60 13.6% 14.9% 23.7% 25.7% Distribution and Logistics 40 1Q23 2Q23 3Q23 4Q23 1Q24 Improving Sales and Normalized Inventory Days 148 148 142 14.0% 131 12.0% 12.2% 117 Gradual 10.0% Normalization of 9.4% Inventory Days 8.0% Sales Upturn 6.5% 6.0% 6.3% 5.2% 4.0% 1Q23 6M23 9M23 FY23 1Q24 2.0% 0.0% Key Takeaways Sustained Top-line Growth and Resilient Margins Over a Decade 14,567 15,227 16,367 15,731 11,634 15,416 48.8% 48.0% 49.0% 48.6% 46.7% 45.3% 44.3% 43.0% Gross Profit Margin Operating Profit Margin 15.9% 14.8% 15.8% 15.9% 15.2% 14.6% 15.4% 15.3% Net Profit Margin 11.9% 11.2% 11.9% 11.9% 11.7% 11.1% 11.8% 12.1% 40.5% 38.8% 14.6% 12.1% 11.7% 9.1% 33% 30% 30% 30% 32% 30% 36% 38% 29% 30% 30% 29% 26% 29% 22% 24% 17% 17% 18% 17% 17% 15% 16% 16% 34% 29% 16% 37% 27% 14% Sustained consolidated top-line growth at CAGR 5.8% over a decade. Resilient margins (Operating Profit Margin at 14%- 15% in 2014-2022) reflecting a well-managed operational efficiency despite pressure on gross profit from input cost, currency and product mix • Temporary margin contraction in 2023 reflecting a confluence of factors : • Increase in raw material prices and higher 24% 24% 25% 24% 23% 23% 23% 23% 22% 22% inventory level driven by global supply chain disruption during the pandemic​ • Non-operating item impact from currency FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 fluctuation​ Prescription Pharmaceuticals Consumer Health Nutritionals Distribution and Logistics 2024 Key Priorities Broad-based Growth with Emphasis on Higher Growth Categories Prescription Medical Pharmaceuticals Devices International Market Consumer Health Distribution & Nutritionals & Logistics Innovative Biologics products, Build local manufacturing including expanding Insulin capability business Strengthen our position Strengthen network in the market and collaboration Leverage Kalventis to Accelerate strengthen portfolio technology transfer Bring more products to export markets Expand to new countries Expand into preventive, wellness, and sports category Strengthen nutritional presence in affordable and specialty categories New potential principals Integrate cold chain business Key Business Strategies Corporate Overview Market Capitalization IDR 69.1 tn ($4.4 bn) * free float 42.01% * More than Half a Century of Providing Wide-Range Healthcare Solutions The largest publicly-listed pharmaceuticals company in Southeast Asia 1966 1991 Onwards Established, headquartered Listed in the Indonesia The most integrated healthcare company in in Jakarta Stock Exchange Southeast Asia Including treasury stocks * As of 31 Mar 2024 Prescription Pharmaceuticals 26.2% 33.2% Net Sales Consumer Health IDR 8,363 bn 1Q 2024 14.9% Nutritionals (unaudited) 25.7% Distribution & Logistics 5% Export ± 40 Countries Middle East SEA South Africa Positive Organic Net Sales Growth Post-Pandemic Net Sales IDR bn (unaudited) + 4.0% 2,196 2,112 Net Sales Growth Licensed Unbranded (yoy) Generics 25% 28% Contribution Branded Mar 23 Mar 24 Generics 47% Highlights Local sales growth of 7.6% Gross Profit Margin in 1Q24 decreased to 52.4% from 53.6% in 1Q23 due to product mix, and increased from 50.8% in 4Q23. ASP increase of 3% - 5% on selected products Prescription Pharmaceuticals Kalbe 13% a 9% Market Share b 6% 13% c others 61% d 4% e 4% 3% Market Share No. 1 player in Indonesian prescription pharma market Performs better than pharma market *Source: IQVIA 4Q23, in value

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