Pasar Farmasi Indonesia

Company Update
Audited FY December 2014
March 2015
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 December 2014 audited 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 December 2014 audited 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.
2
Table of Contents
Corporate Overview
4
Market Overview
7
Business Overview
11
Financial Overview
29
Strategies and Outlook 2015
35
Appendix
40
3
SECTION 1
Corporate Overview
Not all collagen is the same, it’s
time to choose the right one
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 by segment and by geographical location for FY December 2014
is as follows:
Distribution &
Logistics
32%
Nutritionals
26%
Prescription
Pharmaceuticals
25%
Consumer Health
17%
Total Sales = Rp 17,369 Bn
Export
5%
Domestic
95%
Total Sales = Rp 17,369 Bn
5
Corporate Strategy
Kalbe has a long track record of sustainable growth
Inception and Entrepreneurial
Driven Expansion
Enhanced Focus and Consolidation
Regionalization
1996–2005
2006–2015
1966–1995
1981:
Spin-off the
distribution business
to PT Enseval due to
government
regulation
1966:
Company
founded
1966 1977
1981
1977:
Strengthen
pharma
business by
establishing
Dankos Lab
1600
1400
1991:
Kalbe Farma
IPO
1985
1985:
Expansion to
consumer
health
through
acquisition of
Bintang
Toedjoe and
in pharma
through
Hexpharm
Jaya
acquisition
1989
1991
1989:
Igar Jaya
and
Dankos
IPOs
1994:
 Entered
energy drink
business
 EPMT IPO
1993
1995:
Disposed of 50%
of food business
(PT Bukit
Manikam Sakti)
to Arnotts
1994
1995
2005:
Consolidation
of Kalbe Group
1997
2005
2006:
Scale through
mergers and
acquisitions
2006
1997:
 Disposed of Kalbe’s
remaining 50%
ownership in PT Bukit
Manikam Sakti to
Arnotts
 Disposed glass
packaging division to
Schott
 Acquired Woods
Peppermint brand
 Acquired 80% of Saka
Farma
1993:
 Strengthening
nutritionals
business by
acquiring
Sanghiang Perkasa
and consolidating
nutritional business
to Sanghiang
Perkasa
2010:
 Disposed of Kageo Igar Jaya
 Established a joint venture
company, Asiawide Kalbe
Philippines Inc.
 Inaugurated Panca Sradha
Kalbe as our Corporate
Values
2007
2010
2007:
 Launch of new corporate
logo as part of
transformation process
 Products entered every
ASEAN countries (except
Laos)
 Opening of the Stem Cell
and Cancer Institute
 Implementation of end-toend supply chain
management
 Integrated information
technology systems
2012:
♦ Generic production
facility came on
stream
♦ Acquired PT Hale
2014:
International
 Completion of
♦ Established a joint
Kalbe’s
venture company PT
oncology factory
Kalbe Milko Indonesia
2011
2012
2011:
 EPMT Rights Issue to
finance expansion
 Increased dividend
payout ratio to 50%
2013
2013:
 Cancellation of
the Company’s
Treasury Stocks
0f 7.7%
20,000
1200
15,000
1000
800
10,000
600
400
5,000
200
0
0
2004
2005
2006
2007
2008
2009
Sales USD
2010
2011
2012
2013
2014
Sales IDR
6
(IDR bn)
(USD mm)
2014
SECTION 2
Market Overview
Not all collagen is the same, it’s
time to choose the right one
Indonesia’s Health Spending Trends
•
Low healthcare expenditure to GDP.
•
National
Health
Insurance
(Jaminan
Kesehatan Nasional or JKN) program has
commenced in January 2014, and covered
more than 50% of the population in 2014. JKN
targets to cover the entire Indonesian
population by 2019.
Healthcare Expenditure/GDP 2013 (%)
United States
18.0%
United Kingdom
9.6%
Singapore
5.8%
China
5.5%
Malaysia
4.3%
Thailand
4.2%
India
4.1%
Indonesia
Total Healthcare Expenditure
(USD Bn)
30.4
CAGR
12.5%
3.3%
Source : Centers for Medicare & Medicaid Services, Office of the Actuary; United Kingdom :
Healthcare Report, Economist Intelligence Unit; Kementerian Kesehatan Indonesia, China;
Singapore Government Budget; Economic Survey, India; Frost & Sullivan
JKN Coverage Roadmap
26.4
19.0
12.1
6.8
21.1
13.1
7.9
23.4
14.5
8.9
15.9
18.2
Private Expenditure
Public Expenditure
10.5
12.2
2014
133 mn
people *
2019
2015
Target 250 mn
people
100% coverage
Target 170
mn people
Source : Roadmap to National Health Insurance 2012 - 2019
2009
2010
2011
2012
2013
Source : Global Health Expenditure Database, WHO
* Including 76.4 mn people covered by Jamkesmas program
before the launch of JKN.
8
Pharmaceuticals Market Breakdown
Kalbe – No. 1 in the Pharma Industry
Kalbe continues to lead in the highly fragmented pharmaceuticals
industry with over 200 players
Market Share
Pharma Market Breakdown
Kalbe
13%
a
6%
b
5%
c
4%
d
4%
Others
68%
OTC
41%
Ethicals
(Prescription)
Branded &
Licensed
84%
59%
Unbranded
16%
Pharma Industry
(in trillion Rupiah)
38.6
43.2
47.6
53.8
58.2
Total Market FY 2014 Rp 58.2Tn
Source: IMS Health ITMA YTD 12 2014
Note: Restatement of 2012 IMS market data
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
9
CAGR
10.8%
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 Health Insurance
• Replaces Presidential Decree No. 12 Year 2013.
• All Indonesians are required to be members of the Health Insurance.
• First stage of implementation in 2014 will cover subsidy recipients, military members, civil servants, and formal
sector workers. Second stage will cover all population members by 1 January 2019.
Ministry of Health Circular No. KF/Menkes/167/III/2014 issued on 26 March 2014
• National Health Insurance is conducted through electronic purchasing method based on an e-catalogue.
• Manual procurement applies for drugs outside the e-catalogue.
Price Caps on Key Generic Drugs
Ministry of Health Decree No. 436 /Menkes/SK/XI/2013 issued on 11 November 2013
• Replaces the previous Ministry of Health Decree No. 092 /Menkes/SK/II/2012 with some additional units.
• Determines the selling price and retail price caps on 535 generics drugs for pharmacies, hospitals and other
healthcare institutions throughout Indonesia.
Local Production Facilities Requirements
Ministry of Health Regulation No. 1010/Menkes/PER/XI/2008 issued on 3 November 2008
• Prohibits foreign pharmaceutical companies from registering drugs in Indonesia unless they have local
production facilities.
10
SECTION 3
Business Overview
Not all collagen is the same, it’s
time to choose the right one
Prescription Pharmaceuticals Division
Consistent Top Line Growth
+11.9%
• No. 1 player in Indonesian Prescription Pharma Market.
4,329
3,869
• The largest medical representatives team in Indonesia with
more than 2,500 personnel.
• Comprehensive product offerings for all income groups.
• Increasing competition following national insurance
implementation.
31 Dec 2013
(Audited)
31 Dec 2014
(Audited)
Market Share (ITMA)
FY 2014
KALBE
GROUP
15%
a
8%
b
6%
c
d
e
4%
4%
4% f
3%
OTHERS
56%
Total Market = Rp 34.6Tn
Licensed
Products
27.0%
Branded
Generics
59.7%
Unbranded
Generics
13.4%
Total Sales Rp 4,329 Bn
• Gross Profit Margin (GPM) increased from 60.8% in YTD 12
2013 to 61.1% in YTD 12 2014, mostly due to product mix.
Source: IMS Health Prescription Pharmaceuticals
YTD 12 2014
12
Prescription Pharmaceuticals Division
Growth Drivers
Penetrating further in the unbranded
generics market
• Selection of focused categories to achieve scale
• Utilization of dedicated unbranded generic plant
Strengthening presence in
specialty products
• Completed the first oncology factory in
Indonesia in 2014
• Commercialization started in Q3 2014
Expanding licensed products from multinational • Starting building competence in stem cells
and genomics
companies to gain technology transfer
Stem Cells and
Cancer Institute
13
Consumer Health Division
Strong Brand Equity with Leading Market Position
Market share of Kalbe’s brands
Therapeutic Class
Kalbe’s Products
Antacid
Promag, Waisan
75.2%
Anti Diarrhea
Neo Entrostop
44.8%
Cough Remedies
Komix, Woods, Mextril, Mixadin
33.9%
Cold Remedies
Mixagrip Reg, Mixagrip FB, Procold
37.4%
Multivitamin
Cerebrovit, Fatigon, Sakatonik Liver
30.8%
Children Multivitamin
Cerebrofort, Sakatonik ABC
18.1%
Energy Drink
Extra Joss
27.0%
Market Share 2014
Source : AC Nielsen YTD 12 2012 and Company’s estimation 2014, in volume
14
Consumer Health Division
Strong Net Sales Performance
+16.7%
2,924
2,505
31 Dec 2013
(Audited)
•
No. 1 Player in OTC market and No. 2 in
Energy Drink category.
•
GPM increased from 53.3% in YTD 12 2013 to
55.6% in YTD 12 2014, due to product mix.
31 Dec 2014
(Audited)
OTC
YTD 12 2014
KALBE
GROUP
9%
a
8%
b
7%
c
7%
d
e
f
6%
4%
g
3%
3%
Others
52%
Energy Drink
YTD 12 2014 (Unit)
b
13%
a
37%
c
7%
d
3%
others
13%
Extra Joss
27%
Total Market = Rp 23.6 Tn
Source : IMS Health OTC YTD 12 2014
Source : AC Nielsen YTD 12 2012 and Company’s estimation 2014, in volume
15
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
H2 – Health and Happiness
Supplement product for skin care
Promag Fruity 4s
Antacid tablet with fruit flavors
Nitros
Concentrated energy drink in liquid form with convenient tube packaging
Extra Joss Blend
New variant of energy drink with added powdered milk in sachet packaging
Herbal Products
Promag Gazero
Herbal remedy to relieve flatulence
Woods Herbal
Herbal cough syrup
Bintang Toedjoe Masuk Angin
Traditional herbal remedy for common cold symptoms
16
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
35+
25+
17
Clinical
Nutritionals Division
Growth of Indonesian Powdered Milk Market
By Volume (Kg ‘000)
By Value (Rp Bn)
2.2%
10.4%
19,820
187,387
183,317
FY 2013
FY 2014
17,947
FY 2013
FY 2014
Source : AC Nielsen, YTD 12 2014
18
Nutritionals Division
Strong Net Sales Performance
+20.8%
3,792
31 Dec 2013
(Audited)
•
4,581
Kalbe’s Products
31 Dec 2014
(Audited)
Powdered Milk Market Share YTD 12 2014
d
7%
g h i Others
f
e 2% 3% 2% 2% 2%
5%
a
29%
Kalbe
Nutritionals
11%
c
13%
Strong brand awareness of existing major
products
b
24%
Total Market = Rp 19.8 Tn
Source : AC Nielsen 2014, based on Value (Rp)
•
Market Share 2014
Diabetasol
88.0%
Milna
68.8%
Prenagen
55.4%
Morinaga Chil Mil
9.2%
Morinaga BMT
10.9%
Entrasol
9.7%
Morinaga Chil Kid
6.8%
Zee
6.5%
Morinaga Chil School
2.7%
GPM declined to 54.8% in YTD 12 2014 from
60.3% in YTD 12 2013, mostly due to higher
raw material cost in inventory, Rupiah
depreciation and product mix.
19
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 targeted to the middle
segment, now also available in sachet packaging
Morinaga Soya & P-HP
Customized infant formula and growing up milk for lactose intolerance
and milk protein allergy.
20
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 500880 and online shopping through www.kalbestore.com . Kalbe Family Rewards Card offers point rewards for
consumers to build consumer loyalty. KALCare Experiential Store provides various services to build customer
engagement and support branding activities.
21
Distribution & Logistics Division
The Most Extensive Distribution Network
RDC
Branches
Cities
2
70
51
22
Distribution & Logistics Division
Net Sales Performance on Consolidated Basis
-5.2%
5,836
5,535
31 Dec 2013
(Audited)
31 Dec 2014
(Audited)
•
Distribution & Logistics Division is run under
PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly
listed company (91.75% owned).
•
Net sales represents the 3rd party product sales and
distribution margin of internal product sales for consolidated
accounting purposes.
•
GPM slightly increased to 30.6% in YTD 12 2014 from 29.2%
in YTD 12 2013.
Distribution Business Details on Stand Alone Basis
(Figures in Rp Bn)
Gross profit margin
20,000
17,012
12.0%
11.3%
10.0%
15,000
10,000
5,000
1,930
Kalbe Group 70%
Income before tax
margin
8.0%
4.0%
4.0%
Raw Material Trading 8%
2.0%
Medical Devices 4%
687
-
6.0%
3rd Party Principals 18%
0.0%
Net Sales
Gross Profit
Income Before Tax
23
Distribution & Logistics Division
Major Third Party Principals by Category
Prescription
Pharmaceuticals
Consumer
Medical Instrument
& Diagnostic
Fine Chemical
Raw Materials
24
Distribution & Logistics Division
Growth Drivers
Medical Devices
Retail Health Services : 83 Mitrasana Clinics
Medical Devices is an area of potential
growth, especially in the implementation
of
National
Healthcare
Insurance
System where demand for medical
devices is projected to grow further.
•
•
•
Net Sales (in Rp Bn)
Developing Mitrasana Clinics as a
one-stop
service
with
4-in-1
concept, including family doctor,
pharmacy,
laboratory,
and
convenient store.
A 100% owned subsidiary of EPMT.
To date, Kalbe has opened 83
Mitrasana clinics in Jakarta and its
Greater Area.
1,142
915
870
969
742
673
2009
2010
2011
2012
2013
2014*
* Discontinued tender business in 2014
25
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 several Regional Distribution Centers (RDC) throughout
Indonesia
4.
Expand warehouse capacity
Collaborating with sub-distributors to gain territorial expansion
2014 overview
•
•
Bandar Lampung
Tangerang
New branches in Banyuwangi and Bandung
Upgraded branches in Bandar Lampung, Tangerang, Surabaya,
Balikpapan and Jambi
Surabaya
26
Marketing and Sales Infrastructure
The largest sales force for Pharma and Consumer Health in Indonesia
Prescription
Pharmaceuticals
Consumer Health
Nutritionals
Comments
• > 2,000 sales &
marketing personnel
• Total of > 5,000
employees
• 70 marketing branches
throughout Indonesia
• 46 branches & 24 at
subsidiaries
• > 1,000 trucks
• > 500 motorcycles
• Over 2,500 medical
representatives
• Approximately 1,100
marketing and sales
force
• Over 1,100 marketing
personnel
Market coverage
• 70% of GP market
covered
• 90% of specialist market
covered
• 100% of all hospitals
covered
• 100% pharmacy
coverage
• Directly cover
200,000 outlets
• Products available in
over 1mn outlets or
80% of total
consumer health
market
• Market Coverage
throughout Indonesia
• 80% of consumer
health market
•100% of prescription
pharma market
• Most developed
telemarketing team in
the nutritional sector
• Largest sales force in
Indonesia
Infrastructures
Indonesia
Coverage
Distribution &
Logistics
• Largest marketing
team in Indonesia
27
Manufacturing Infrastructure
Operates 9 GMP facilities complying with international standards
Products
Manufactured
Building Area
(m2)
Kalbe Farma
435
91,819
14 lines (tablet, capsule, cream, liquid oral,
injection)
Astellas
ISO 9001, ISO 14001,
OHSAS18001
Bintang Toedjoe
49
20,849
3 lines; effervescent, powder & liquid
--
ISO 9001, ISO 14001,
OHSAS18001, HACCP, SMK3
Dankos Farma
189
23,101
4 factories; Non-betalactam, Penicillin &
Cephalosporin, Oncology lines
Daiichi,
Samyang
ISO 9001, ISO 14001,
OHSAS18001
Sanghiang Perkasa
132
51,403
8 line dry - powdered miilk
Morinaga
ISO 9001, ISO 14001, HACCP,
OHSAS18001
Hexpharm Jaya
85
16,533
Solid tablet (Non-betalactam products)
--
ISO 9001, ISO 14001,
OHSAS18001
Finusolprima Farma
26
10,700
Large volume parenteral (LVP) in glass bottle
line, LVP in flexy bag line, Haemodialysis
Baxter
Solution Line
ISO 9001, ISO 14001,
OHSAS18001
Kalbe Morinaga
19
33,733
1 wet - drier line, 1 can line, 2 sachet lines
Morinaga
ISO 9001, ISO 22000, OHSAS
18001
Orange Kalbe Ltd.
-
5,000
2 lines; tablet and cream
--
NAFDAC (local FDA)
Hale International
6
10,000
Semi hot-filled PET
--
ISO 22000/2005 GMP, HACCP
Facility
Production Lines
Licenses
Certification
28
SECTION 4
Financial Overview
Not all collagen is the same, it’s
time to choose the right one
Consolidated Sales
Consistent Top Line Growth of Internal Kalbe Products
Net Sales (in Rp Bn)
8.5%
31 Dec 2013
(Audited)
11.9%
3,869
16.7%
4,329
Prescription
Pharmaceuticals
16,002
31 Dec 2014
(Audited)
2,505
2,924
Consumer Health
20.8%
3,792
4,581
Nutritionals
17,369
-5.2%
5,836
5,535
Distribution &
Logistics
Consolidation
30
Consolidated Operating Performance
Stable Operating Margin
Gross Profit Margin
+ 10.4%
48.8%
48.0%
8,476
7,679
Operating Expenses to Net Sales Ratios
32.1%
32.9%
0.8%
0.8%
5.2%
4.8%
31 Dec 2013
(Audited)
Selling & Marketing
31 Dec 2014
(Audited)
26.4%
26.9%
31 Dec 2013
(Audited)
31 Dec 2014
(Audited)
General &
Administrative
Research &
Development
Operating Profit Margin
15.9%
2,549
31 Dec 2013
(Audited)
+ 8.3%
15.9%
2,761
31 Dec 2014
(Audited)
• Marketing efforts to drive brand awareness
• Research & development activities to support
product development
31
Consolidated Net Earnings
Positive Earnings Growth
Income Before Tax
(in Rp bn)
Net Income
(in Rp bn)
+7.4%
16.1%
2,573
31 Dec 2013
(Audited)
+7.6%
15.9%
12.0%
2,764
1,920
31 Dec 2014
(Audited)
31 Dec 2013
(Audited)
• Income before tax margin declined from 16.1% in YTD
12 2013 to 15.9% in YTD 12 2014, mostly due to higher
interest expense and miscellaneous expenses.
11.9%
2,065
31 Dec 2014
(Audited)
• Net income margin slightly declined from 12.0% in
YTD 12 2013 to 11.9% in YTD 12 2014, in line with
lower income before tax margin.
32
Working Capital Management
Improving Days of Inventory
Improving inventory level
due to stabilizing raw
material price in 2014
No. of days
158
129
142
122
43
45
131
120
108
115
110
50
44
57
38
27
2008
(Audited)
2009
(Audited)
35
2010
(Audited)
2011
(Audited)
Days of Account Receivables
Days of Account Payables
114
128
132
125
107
48
41
2012
(Audited)
48
50
2013
(Audited)
Days of Inventories
Net Operating Cycle
49
Net Operating Cycle has
been decreased by 30 days
from 158 days in 2008 to 128
days in 2014
46
2014
(Audited)
End-to-end supply chain
management would be
continuously implemented
to overcome any
fluctuation in inventory
33
Solid Financial Position
Rp 1.6 Trillion of Net Cash Position
Total Debt and Gearing Ratio
Cash & Net Cash Balance
2,291 2,151
1,902
Total Debt in Rp Billion
1,562
Gearing Ratio
600
15.0%
7.9%
300
340
0.5%
25
2.9%
205
2.3%
141
7.2%
3.2%
584
296
0
1,895
1,860
1,877
1,655
1,598
1,426
1,222
843
10.0%
5.0%
0.0%
2009
2010
2011
2012
2013
2014
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited)
2009
2010
2011
2012
(Audited) (Audited) (Audited) (Audited)
Cash and Cash Equivalent in Rp Billion
Dividend Payment
2013
2014
(Audited) (Audited)
Net Cash in Rp Billion
Capital Expenditure
* Capital Expenditure in Rp Billion
Cash Dividend* (Rp/share)
20.0
15.0
10.0
5.0
0.0
51%
26%
5.0
2009
(Audited)
14.0
2010
(Audited)
60%
Dividend Payout Ratio (%)
51%
42%
19.0
19.0
17.0
2011
(Audited)
2012
(Audited)
2013
(Audited)
994
80%
60%
40%
20%
0%
783
470
781
469
278
2009
2010
2011
2012
2013
2014
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited)
* For Fiscal Year
* Cash dividend are adjusted for stock split impact
34
SECTION 5
Strategies &
Outlook 2015
Not all collagen is the same, it’s
time to choose the right one
KALBE Business Strategies
Strengthen business
portfolio through
product innovation &
M&A
Improve marketing &
sales effectiveness
Enhance human
capital development
Go Global - deeper
ASEAN penetration,
more product
offering
Strengthen Quality
Assurance,
Compliance & CSR
36
Corporate Actions
Dividend Payment for Fiscal Year 2013
Kalbe has obtained the approval of the AGMS
on May 14, 2014 to pay dividend of Rp 797 bn,
or equivalent to Rp 17 per share. This reflects a
payout ratio of 42% for financial year 2013.
Dividend has been paid on July 2, 2014.
Historical Dividends
60%
20.0
51%
15.0
10.0
5.0
17%
2.5
26%
14.0
51%
19.0
19.0
80%
42%
17.0
40%
20%
5.0
0.0
* Cash dividend are adjusted for stock split impact
60%
0%
2008
2009
2010
Cash Dividend* (Rp/share)
2011
2012
2013
Dividend Payout Ratio (%)
Acquisition of PT Hale International
To accelerate expansion in the ready-to-drink segment, on July 6, 2012, Kalbe
completed the acquisition of PT Hale International, a health beverage
manufacturing company, worth Rp 98.6 billion.
Joint Venture to form PT Kalbe Milko Indonesia
Kalbe signed an agreement with PT Milko Beverage Industry to form a joint venture company, PT
Kalbe Milko Indonesia, to manufacture liquid nutritionals products with an estimated investment
of Rp 100 – 150 Bn.
Cancellation of Treasury Stocks
Kalbe has obtained shareholders’ approval for treasury stock cancellation in the EGMS on May 20,
2013.
37
Corporate Social Responsibility
Looking after our stakeholders
Community Development
Kalbe Junior
Scientist Award
Environmental Sustainability
Ristek Kalbe
Science Award
Consumer Protection
ISO 14001:2004
Certified
Environmental
Management
System
Dedicated Customer
Care Team
Kalbe Cares
Dr. Boen
Distinguished
Lecture Series
Extended
Producer
Responsibilities
Education
Health
Environment
Infrastructure
Free Medical
Blood Donor
Disaster Reliefs
Consultations
Activities
38
Outlook 2015
Earnings Guidance 2015
1.
Year-on-year Sales Growth
11% - 13%
2.
Operating Profit Margin
16% - 17%
3.
Earnings per Share Growth
14% - 16%
4.
Dividend Payout Ratio
40% - 50%
* Excluding the impact of product recall
Capex Rp 1 – 1.3 Tn for production capacity and distribution network expansion.
39
SECTION 6
Appendix 1
Financial Information
YTD December 31, 2014
(Audited)
Not all collagen is the same, it’s
time to choose the right one
Audited Financial Statement
YTD 12 2014
Consolidated Balance Sheets
31 December 2013
(Audited)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents
Trade Receivables, Net
Other Receivables
Other Current Financial Assets
Inventories, Net
Prepaid Value Added Tax
Prepaid Expenses
Other Current Assets
TOTAL CURRENT ASSETS
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
1,426,460,966,674
2,145,218,904,462
128,159,883,954
187,742,937,561
3,053,494,513,851
40,855,503,867
55,120,742,321
460,265,998,853
7,497,319,451,543
3,817,741,823,483
11,315,061,275,026
31 December 2014
(Audited)
1,894,609,528,205
2,346,943,653,265
117,957,876,451
199,389,672,567
3,090,544,151,155
13,609,917,516
69,088,895,897
388,661,675,136
8,120,805,370,192
4,304,226,997,537
12,425,032,367,729
41
% Change
32.8%
9.4%
-8.0%
6.2%
1.2%
-66.7%
25.3%
-15.6%
8.3%
12.7%
9.8%
Audited Financial Statement
YTD 12 2014
Consolidated Balance Sheets
31 December 2013
(Audited)
LIABILITIES
CURRENT LIABILITIES
Short-term Bank Loans
Trade Payables
Other Payables
Accrued Expenses
Taxes Payable
Short-term Liabilities for Employees' Benefit
Current Maturities of Obligations Under Finance Leases
TOTAL CURRENT LIABILITIES
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
EQUITY
ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY
Capital Stock -Issued and Fully Paid
Additional Paid-in Capital, Net
Retained Earnings
Others
Sub-total
Non-controlling Interest
EQUITY, NET
TOTAL LIABILITIES AND EQUITY
% Change
31 December 2014
(Audited)
583,823,955,413
1,151,654,579,697
379,156,683,712
314,518,392,842
186,953,727,366
24,391,340,352
91,344,366
2,640,590,023,748
174,513,285,703
2,815,103,309,451
251,909,102,153
1,133,092,819,659
422,739,416,901
358,667,243,424
184,590,382,675
34,921,207,677
2,385,920,172,489
221,636,516,794
2,607,556,689,283
-56.9%
-1.6%
11.5%
14.0%
-1.3%
43.2%
-100.0%
-9.6%
27.0%
-7.4%
468,751,221,100
(34,118,673,814)
7,633,188,370,750
40,420,603,467
8,108,241,521,503
391,716,444,072
8,499,957,965,575
11,315,061,275,026
468,751,221,100
(34,118,673,814)
8,900,997,960,322
46,392,656,427
9,382,023,164,035
435,452,514,411
9,817,475,678,446
12,425,032,367,729
0.0%
0.0%
16.6%
14.8%
15.7%
11.2%
15.5%
9.8%
42
Audited Financial Statement
YTD 12 2014
Consolidated Statement of Income
NET SALES
COST OF GOODS SOLD
% to NS
GROSS PROFIT
% to NS
Selling Expense
% to NS
General and Administrative Expense
% to NS
Research and Development Expense
% to NS
Interest Expense and Financial Charges
Interest Income
Other Operating Expenses
Other Operating Income
Share in Loss of the Associated Entity
INCOME BEFORE INCOME TAX
BENEFIT (EXPENSE)
% to NS
INCOME TAX EXPENSES, NET
% to NS
31 December 2013
(Audited)
16,002,131,057,048
8,323,017,600,990
52.0%
7,679,113,456,058
48.0%
(4,230,293,635,075)
-26.4%
(764,512,533,499)
-4.8%
(135,388,356,694)
-0.8%
(28,642,082,811)
50,425,100,828
(51,920,132,128)
56,072,322,107
(2,331,421,555)
31 December 2014
(Audited)
17,368,532,547,558
8,892,737,389,731
51.2%
8,475,795,157,827
48.8%
(4,670,393,647,550)
-26.9%
(901,181,791,170)
-5.2%
(143,175,406,909)
-0.8%
(52,009,056,900)
63,367,657,238
(97,361,969,697)
91,296,113,044
(2,636,507,835)
2,572,522,717,231
16.1%
(602,070,267,545)
-3.8%
2,763,700,548,048
15.9%
(642,609,966,418)
-3.7%
43
% Change
8.5%
6.8%
-0.8%
10.4%
0.8%
10.4%
-0.5%
17.9%
-0.4%
5.8%
0.0%
81.6%
25.7%
87.5%
62.8%
7.4%
-0.2%
6.7%
0.1%
Audited Financial Statement
YTD 12 2014
Consolidated Statement of Income
31 December 2013
(Audited)
INCOME FOR THE PERIOD
% to NS
OTHER COMPREHENSIVE INCOME (EXPENSES)
COMPREHENSIVE INCOME FOR THE PERIOD
% to NS
31 December 2014
(Audited)
% Change
1,970,452,449,686
12.3%
33,791,245,111
2,004,243,694,797
12.5%
2,121,090,581,630
12.2%
8,124,868,452
2,129,215,450,082
12.3%
7.6%
-0.1%
-76.0%
6.2%
-0.3%
1,919,508,370,312
50,944,079,374
1,970,452,449,686
12.3%
2,064,686,665,442
56,403,916,188
2,121,090,581,630
12.2%
7.6%
10.7%
7.6%
-0.1%
1,952,588,559,890
51,655,134,907
2,004,243,694,797
12.5%
2,072,781,310,118
56,434,139,964
2,129,215,450,082
12.3%
6.2%
9.3%
6.2%
-0.3%
41
44
7.6%
Income for the Period Attributable to:
Owners of the Parent Company
Non-controlling Interest
Total
% to NS
Comprehensive Income for the Period
Attributable to:
Owners of the Parent Company
Non-controlling Interest
Total
% to NS
Earnings Per Share Attributable to
Owners of the Parent Company
44
Audited Financial Statement
YTD 12 2014
Consolidated Statement of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers
Cash Paid to Suppliers and Employees
Cash provided by operations
Receipts of Claims for Income Tax Refund
Payments of Income Taxes
Payments of Other Operating Expenses, Net
Net Cash Provided by Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale of Other Current Financial Assets
Interest Income Received
Proceeds from Sales of Property, Plant, and Equipment
Cash Dividends Received
Acquisitions of Property, Plant and Equipment
Placements in Other Current Financial Assets
Acquisitions from Other Investing Activities, Net
Net Cash Used in Investing Activities
31 December 2013
(Audited)
31 December 2014
(Audited)
% Change
17,253,943,196,843
(10,832,003,854,960)
6,421,939,341,883
18,789,636,782,075
(10,796,383,861,185)
7,993,252,920,890
8.9%
-0.3%
24.5%
5,308,496,966
(650,904,671,554)
(4,849,179,513,083)
927,163,654,212
10,370,282,338
(650,088,972,907)
(5,037,408,409,276)
2,316,125,821,045
95.4%
-0.1%
3.9%
149.8%
219,262,900,420
51,517,056,069
28,053,364,909
2,117,000,000
(993,929,398,633)
(153,574,337,500)
(35,592,673,302)
(882,146,088,037)
166,425,803,899
61,535,428,006
40,268,489,225
528,222,042
(750,705,865,640)
(166,513,567,647)
(28,044,385,406)
(676,505,875,521)
-24.1%
19.4%
43.5%
45
-24.5%
8.4%
-21.2%
-23.3%
Audited Financial Statement
YTD 12 2014
Consolidated Statement of Cash Flows
31 December 2013
(Audited)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Bank Loans
Receipts of Capital Contributions from
Subsidiaries' Non-controlling Interest
Payments of Bank Loans
Payments of Interest Expense and Financial Charge
Payments of cash Dividend
Company
Subsidiaries
Payments of Pension Funds
Payments of Obligations under Finance Leases
Net Cash Provided by (Used in) Financing Activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT
31 December 2014
(Audited)
% Change
1,627,390,328,387
2,137,283,946,487
31.3%
26,504,394,870
(1,317,770,912,697)
(25,881,719,573)
4,887,332,280
(2,430,517,702,602)
(52,947,596,310)
-81.6%
84.4%
104.6%
(890,627,320,090)
(10,066,131,762)
(22,541,928,655)
(327,347,370)
(613,320,636,890)
(796,877,075,870)
(12,654,188,558)
(26,355,615,090)
(91,344,366)
(1,177,272,244,029)
-10.5%
25.7%
16.9%
-72.1%
92.0%
462,347,701,495
181.4%
95,474,047,958
887,720,749
-99.1%
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
1,829,015,133,005
1,356,186,110,248
-25.9%
CASH AND CASH EQUIVALENTS AT END OF YEAR
1,356,186,110,248
1,819,421,532,492
34.2%
Net Effect of Changes in Foreign Exchange Rates of Foreign Currency
Denominated Cash and Cash Equivalents
(568,303,070,715)
46
Not all collagen is the same, it’s
time to choose the right one
Appendix 2
JKN Information
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
poor residents
Rp 19,225 / person /month
Formal sector
workers
5% of the salaries and compensations:
• 4% paid by the employers
• 1% paid by the employees
(as of July 1, 2015)
Informal
sector
workers
Rp 25,500 (class III) / person /month
Rp 42,500 (class II) / person /month
Rp 59,500 (class I) / person /month
Subsidized
Nonsubsidized
BPJS Kesehatan Card
48
National Healthcare Insurance
(Jaminan Kesehatan Nasional – JKN)
Health financing on limited resources
Healthcare Tariff Reimbursement Scheme
Out
Patient
Primary healthcare
facilities
Primary healthcare
facilities
In Patient
Secondary &
tertiary healthcare
facilities
Capitation system / tariff
per capita Rp 3,000 – Rp
10,000 / person / month
Non Capitation
Rp 100,000 – Rp 600,000
Diagnosis-related group :
fixed payment for a bundling
of treatments & medicines
based on diagnosis
Drug Procurement
• Improving availability, cost efficiency and
transparency through centralized
electronic procurement
• Electronic tender using price caps as
ceiling price
49
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
50