Company Update - Q1 2008

Company Update
 Company Update (FY2007)
 Company Performance YTD Mar 2008
Table of Contents
SECTION I
SECTION II
SECTION III
SECTION IV
Kalbe At a Glance
Corporate Overview
Industry Overview
Business Overview
IV.A. Prescription Pharmaceuticals
IV.B. Nutritional
IV.C. Consumer Health
IV.D. Distribution and Packaging
SECTION V Operational Overview
SECTION VI Growth Drivers
SECTION VII Financial Overview
SECTION VIII Recent Activities
SECTION IX Future Outlook
2
3
6
13
15
28
37
41
49
53
Section I. Kalbe At a Glance
3
I. Kalbe At a Glance – Company Highlights
Largest Publicly-Listed
Pharmaceutical
Company in Southeast
Asia


More than 40-year old pharmaceutical company with long track record of profitable growth.
After the merger with PT Dankos Laboratories Tbk. and PT Enseval effective on December 16,
2005, Kalbe has become the largest publicly-listed pharmaceutical company in Southeast Asia with
approximately US$1 billion market capitalization.


Large target population of 235 million in Indonesia, and 570 million in Southeast Asia.
OTC and prescription pharma in the Indonesian and Southeast Asian markets expected to grow
annually at 12% and 13% respectively over the next four years.

The market leader in Indonesian prescription pharma market with 7.4% market share; a leader in
consumer health market as well with 17.7% OTC market share, 8.6% share in nutrition market and
30.6% in energy drink market.
Unrivaled health distribution network which covers more than 1 million outlets.
3
Substantial Market
Opportunity
Market Leading
Positions in Indonesia
Strong, Diversified,
High Growth Product
Portfolio
Highly Experienced
Senior Management
Team
Strong Financial Track
Record
Substantial Growth
Opportunities
4

 Consumer health portfolio which includes 13 market leading OTC brands in 5 main therapeutic
categories, the market leading brand in pregnant nutrition and clinical foods, and the leading energy
drink in Indonesia.
 Prescription pharma portfolio of 284 products and over 500 SKUs.


Average senior management tenure of over 20 years at Kalbe, providing strategic continuity and
depth of senior management bench.
Average industry experience of over 20 years developing, manufacturing, marketing and selling
consumer health and pharmaceutical products.
 Broad based growth across all business segments with consolidated revenues, operating income
and net income have grown at a CAGR of 14%, 11% and 14%, respectively, from 2002-2007.
 Strong balance sheet with net cash position of almost USD 100 million at Q1 2008.
 Consumer health new product development
 Development of prescription pharmaceutical portfolio
 Continued expansion in Southeast Asia
I. Kalbe at a Glance – Historical Data
Kalbe was established in 1966 and has a long track record of profitable growth
Inception and Entrepreneurial
Driven Expansion
1966–1995
1966 1977 1981 1985 1989
1966:
1977:
Company Dankos Lab
founded
1985:
Acquired
Bintang
Toedjoe &
Hexpharm
1989:
Igar Jaya
and
Dankos
IPOs
1981:
Spin-off the
distribution
business to PT
Enseval due to
government
regulation
Excellence, Sustainable Growth,
Going Global
2006–2015
Enhanced Focus and Consolidation
1996–2005
1991
1993 1994
1996
1997
1991:
Kalbe Farma
IPO
1994:

Entered
energy drink
business
1996:

EPM IPO
Disposed of
50% of food
1993:
business (PT
 Acquired
Bukit Manikam
Sanghiang
Sakti) to
Perkasa and
Arnotts
consolidated
nutritional
business to
Sanghiang
Perkasa
2005
2007
2005:
Consolidation of
Kalbe Group
2006-2010 Business Focus
 Expand regional footprint
 Build global brands and infrastructure
 Scale through mergers and
acquisitions
 Proprietary drug development
 Global partnerships and networks
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
900
800
700
600
500
400
300
200
100
0
8000
7000
6000
5000
4000
3000
2000
1000
0
1991
1992
1993
1994
1995
1996
1997
1998
1999
sales USD
Note:
Audited financials. Figures since 2005 are post-merger figures.
5
2000
Sales IDR
2001
2002
2003
2004
2005
2006
2007
(IDR bn)
(USD mm)
Long Track Record of Sustainable Revenue Growth
Section II. Corporate Overview
6
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 aggregate
represent a population of almost 570 million
• Sales contribution of Kalbe’s main business segments as per FY 2007 income statement:
– prescription pharmaceuticals 25.8% of revenues
– nutritional
22.8% of revenues
– consumer health
26.5% of revenues
– distribution and packaging
24.9% of revenues
• Over 14,000 employees and a marketing and sales force of 6,000 covering 80% of the Indonesian
consumer health and 100% of the Indonesian prescription pharmaceutical market
7
II. Corporate Overview – Business Overview
Kalbe Farma is the market leader in prescription pharmaceuticals, nutritional and consumer
health products in Indonesia
Prescription
Pharmaceutical
Key
Product
Categories
Market
Position in
Key
Markets2
FY 2007
Revenue
 Licensed products
 Branded generics
 Unbranded generics





Pregnancy nutrition
Baby milk products
Baby biscuits
Baby cereals
Clinical food
Consumer Health
 OTC
pharmaceuticals
 Energy drinks
Distribution and
Packaging
 Consumer health
 Prescription pharma
 Medical instruments and
diagnostics
 Consumer products
 Fine chemical raw
materials
Number 1 in Indonesian A market leader in  Number 1 in
prescription pharmaceutical Indonesian
nutrition
Indonesian OTC
market
market and has the
market
leading market position  Number 1 in
in high end nutrition
Indonesian energy
market
drinks market
 Largest pharmaceutical
distribution network in
Indonesia
 40 distribution centers
 Indirectly and directly
covers more than 1mm
outlets
IDR 1,806.3 billions
IDR 1,742.4 billions
Note:
1 Audited financials. Pro forma for restructuring completed 12/16/05
2 IMS & AC Nielsen data as of 12/31/07
8
Nutritional
IDR 1,600.0 billions
IDR 1,856.2 billions
II. Corporate Overview – Subsidiaries
Pharmaceuticals
Nutritions
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
Milenia Dharma Insani
99.988% ownership
99.20% ownership
57.61% ownership
Hexpharm Jaya Labs
Enseval Medika Prima
99.60% ownership
57.61% ownership
Saka Farma Labs
Global Mechindo Megatrading
80.00% ownership
58.18% ownership
Innogene Kalbiotech Pte. Ltd
90.79% ownership
Kalbe International Pte. Ltd
100.00% ownership
Packaging
Kageo
63.10% ownership
Kalbe Vision Pte. Ltd
Avesta Continental Pack
100.00% ownership
48.25% ownership
Cordlife Indoneisa
30.00% ownership
Pharma Metric Labs
34.45% ownership
Orange Kalbe Ltd
30.00% ownership
9
Distribution
Indogravure
24.61% ownership
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
(1992 – 1998)
since 2005
• President Director of EPM
• Managing Director of Kalbe
(1998 – 2005)
(2002 – 2005)
• Joined the Group in 1982
• Joined Bintang Toedjoe in 1985
Budi Dharma Wreksoatmodjo
Johanes Berchman Apik Ibrahim
Director
Director
• Finance Director of Kalbe
•Director of Kalbe
(1997-2005)
•since 2005
• Finance Director of Dankos
• President Director of Dankos
(1992-1997)
(2002-2005)
• Joined Kalbe Farma in 1990
• President Director of B7 (1996-2002
Vidjongtius
10
Herman Widjaja
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 of Kalbe since 2008
Commissioner
•Commissioner of Kalbe
•Commissioner of Kalbe
• Manufacturing Director of Kalbe
•since 2008
• President Director of B7
(2005-2006)
since 2007
since 2000
• Commissioner of EPMT
•Director of Kalbe since 2005
•Plant Manager of B7 in 1995
since 2001
Yozef D. Angkasa
Santoso Oen
•Product Manager of B7 in 1997
Ferdinand Ariyanto
Independent Commissioner
•Independent Commissioner
of Kalbe since 2008
•Head of Indonesian Medical Council
since 2005
•Health Minister of Indonesia in Kabinet
Pembangunan VII and Kabinet Reformasi
Farid A. Moeloek
11
Independent Commissioner
•Independent Commissioner
of Kalbe since 2008
•Independent Comissioner of
PT Global Mediacom
•Head of CBA Asia
John A. Prasetio
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
•Nominator of Metro TV MDGs Award for the child mortality reduction program, Nov 26, 2007
•One of the “Most Admired ASEAN Enterprises” and the winner of ASEAN Business Awards for CSR
category in the event held by ASEAN Advisory Business Council on Nov 18, 2007
•“Pioneer of Corporate Social Responsibility Award” from Bekasi District Authority
•“Honorable City Tax Payer Award” from Central Jakarta district city Mayor on Aug 23, 2007
•Investor Award 2007 (Ranked 24th of 100 Best Companies, and ranked 2nd in cigarette, pharmacy, and
household appliances sector) from Investor Magazine
Year 2006:
•“Trusted Company Award” and “Best Company in the Consumer
Industry Award” from IICG (Indonesian Institute for Corporate
Governance)
• “Top 10 Value Creator 2006” for companies with assets >Rp 1 trillion
from SWA Magazine, Markplus & Co
•Asia’s Best Managed Companies Poll Awards 2005 from AsiaMoney
•Investor Award 2006 (the best in cigarette, pharmacy, and household
appliances sector) from Investor Daily and Investor Magazine
•CEO of the year 2006 award for Kalbe’s President Director, Johannes
Setijono from Bisnis Indonesia
•Best ”Second Liner” Company to Invest from Bisnis Indonesia
•“Best Company promoting Education awareness in the whole of West
Java District 2006" from Governor of West Java, Danny Setiawan
12
Section III. Industry Overview
13
III. Industry Overview - Indonesia
•
•
•
•
14
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 oil price fluctuation at the global market.
Agriculture and mining sectors are the strongest growth to support the
economy.
Switching the general fuel subsidy into direct subsidy in food and healthcare
Approaching the coming general election in 2009 will push the Government to
accelerate their program and increase its spending.
III. Industry Overview – Segmentation
0.5–1.5K
0.7
Middle
Mass
145.8
< 0.5K
1.6
Global Pharma
Lower Mass
Lower Mass
Source: BPS and Management
Estimates for Pharma,
Nutritional & Consumer Health
15
Kalbe
39.1
Middle Mass
Dexa
Mass
Affluent
Domestic Brand Market Prescription Pharma
0.5
Sanbe, Konimex, Tempo, Pharos
1.5–4K
Mass Affluent
Domestic Mass Market
17.7
Affluent
Affluent
Nutrifood
1.0
Domestic High End
> 4K
Domestic Low End
22.4
Combiphar, Interbat, Indofarma, Kimia Farma, Phapros
Mkt. Size
(US$bn)
Global/Regional Consumer
Income
(US$)
P&G, Nestle, Mead Johnson, Nutricia, Unilabs, NZMI
Population
(mm)
Pfizer, Glaxo, Abbott, Sanofi, Astrazeneca
The Indonesian market is comprised of distinct market segments based on income levels with
participants positioned distinctly against these segments
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 (OTC) products. This high OTC contribution is due to low
purchasing power of majority people and lack of nation wide health
care system.
• In terms of competition, the industry is very fragmented with around
200 pharma companies, including around 30 MNCs.
• Patent law and Product Registration regulation in Indonesia have
been implemented according to the WTO’ standard.
* Source: IMS Report
16
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 the low purchasing power.
• Common diseases and health-needs surrounding the community
i.e. dengue, TB, diarrhea, immunization, malnourished and high
maternal mortality rate.
• Degenerative and chronic diseases show a higher trend as a
reflection of longer life expectation.
17
III. Industry Overview
Top 10 Manufacturers in ITMA, IHPA and IPA Market.
ITMA Market Share – Q1 2008
IHPA Market Share – Q1 2008
KALBE
FARMA
7.4%
KALBE FARMA
8.9%
SANBE
5.4% DEXA
MEDICA
4.0%
SOHO
3.6%
OTHERS
61.6%
PFIZER
3.4% BINTANG
TOEDJOE
3.2%
BAYER
INDONESIA
DANKOS2.9%
2.5%
Total Market = IDR 26.1 T
SANBE
8.0%
SANBE
7.9%
TEMPO
SCAN
PACIFIC
3.5%
PHAROS
INDONESIA
2.5%
PFIZER
DEXA MEDICA
5.3%
5.2%
DEXA MEDICA
7.1%
OTSUKA
4.3%
* Others
53.3%
SANOFIAVENTIS
3.7%
DANKOS
3.6%
PFIZER
3.1%
FAHRENHEIT
FERRON
2.7%
ASTRAZENECA PAR
PHARM
2.6%
2.6%
Total Market = IDR 3.8 T
Source: IMS Health, for manufactured Q1 2008
18
IPA Market Share – Q1 2008
GEN0190n.ppt
* Others
60.3%
LAPI
2.2%
Total Market = IDR 5.5 T
KALBE
FARMA
4.6%
SANOFIAVENTIS
4.0%
NOVARTIS
2.9%
INTERBAT
2.7%
BAYER
INDONESIA
2.7%
MERCK
KGAA
2.2%
Section IV. Business Overview
A. Prescription Pharmaceuticals
19
IV. Business Overview – Prescription Pharma
Kalbe has broad portfolio of prescription products which comprised of 284 products
Licensed Products
Ttl # Products
68

180
Generics

36
 General Anti-infectives: Cefspan, Fixef;
Cravit, Reskuin; Tarivid, Cefizox; Cefazol,
Bactesyn
 Hospital Solutions: Octalbin
 Oncology : Paxus; Epirubicin-Kalbe,
Endrolin
 Blood and Blood-Forming Organs: Kalnex,
Hemapo
 Musculo-Skeletal System: Mediflex,
Durolane
 Alimentary Tract and Metabolism:
Cernevit, Dialac
 General Anti-infectives: Broadced,
Kalfoxim, Mycoral, Clavamox
 Central Nervous system: Neurotam,
Neurocet; Neuralgin RX, Brainact
 Musculo-Skeletal System: Kaltrofen
 Cardiovascular System: Angioten,
Cholestat
 Alimentary Tract and Metabolism:
Rantin, Ulsikur, Pronicy, Metrix,
Plantacid,
 General Anti-infectives:
Cefotaxime; Amoxycillin,
Ciprofloxacin; Rifampicin;
Ceftriaxone, Prednisone
 Alimentary Tract and
Metabolism: Ranitidine
 Cardiovascular System:
Simvastatin, Captopril
 Central Nervous system:
Piracetam
Recent
Product
Launches
Octalbin, Lodopin, Dialac, Hepavax Gene,
Lanzox, Durolane, Flexasur, Durolane,
Synbio, F-Slim, Atopiclair
Osteonate OD, Nepatic, Beta One,
Fritens, Brainact Oral, Nevox, Merofen
Glimepiride, Omeprazole,
Domperidone, Cefixime, Bisoprolol
Planned
Product
Launches
2008: 3 products
2008 : 10 products
2008 : 5 products
Key Products
20

Branded Generics
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
58.0%
INDOFARMA
3.4%
KIMIA FARMA
3.0%
INTERBAT
2.9%
OTSUKA
2.5%
Total Market = IDR 15.3 T
Note: Prescription Pharma = ITMA ETH (KF+DKS+HJ)
Source:
IMS Health, Q1 2008
21
GEN0190n.ppt
FAHRENHEIT
2.9%
Section IV. Business Overview
B. Nutritional
22
IV.Business Overview – Nutritional
Kalbe has a highly attractive nutritional portfolio comprised of strong, market leading brands
Nutritionals
Key Products
Recent Product
Launches
Planned Product
Launches
Q1 2008 Sales
 Pregnancy Nutrition (Prenagen)
– 60% market share
 Baby biscuit (Milna)
– 56% market share
 Baby milk
– Morinaga BMT 10% market share
– Chil Mil 11% market share
 Clinical Food
– Diabetasol 68% market share
Chil School Platinum, Milna Marie
Biscuit, Prenagen Emesis, Diabetasol
Vita Digest, Entrasol Weight
Management, Nutrive Rellax
Various nutritional supplements for
adult, baby and toddlers
IDR 456.6 billions
Note: Source: Latest AC Nielsen data and Management estimation
23
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%
Mead Johnson
4.6%
Abbott
5.4%
Nestle
29.9%
Fonterra
5.0%
Nutricia
8.2%
SHP
8.6%
Sari Husada
15.8%
FFI
11.0%
Total Market = IDR 2.1T
仌
Note:
1.Source: AC Nielsen data as of Q1 2008 and Management estimation (market share rounded)
2. Nutritional consist of baby biscuit, baby cereal and powdered milk sectors
24
Section IV. Business Overview
C. Consumer Health
25
Business Overview – Consumer Health
Kalbe has a highly attractive consumer health portfolio comprised of strong, market leading brands
OTC Pharmaceuticals
 Antacid (Promag, Waisan)
Key Products
Recent Product
Launches
Planned Product
Launches
Q1 2008 Sales
Note:
– 87% market share
 Cough remedies (Woods, Komix, Metril)
– 38% market share
 Anti-diarrhea (Neo-Enterostop)
– 42% market share
 Cold remedies (ProCold, Mixagrip)
– 35% market share
Energy Drinks
 Extra Joss
– 46% market share
(Indonesia)
– 36% market share
(Indonesia)
– 78% market share
(Phillippines)
– 44% market share
(Phillippines)
– volume
– value
– volume
– value
Fatigon Viro, Cerebrovit Active, Cerebrovit
Senior, Woods Antitussive, Mixagrip Flu &
Batuk, Promag Double Action, Kalpanax
Cream, Komix Kid, Bintangin
Caxon Enace, Caxon ion C, Extra Joss
(Cream Soda, Apple, Blackcurrant)
 Preventive products
 Skin care
 Energy Drink line extension
IDR 288.4 billions
IDR 49.6 billions
1 Audited financials
2 Growth rate based on financials in IDR
3 Source: Latest AC Nielsen data and Management estimation
26
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%
M-150
7.4%
Extra Joss
30.6%
Kuku Bima
13.1%
Krating Daeng
21.9%
Hemaviton
18.4%
Total Market = IDR 360.1 B
Source: AC Nielsen for Energy Drink share, Q1 2008
27
IV. Business Overview – Consumer Health
Kalbe is a market leader in every major category in which it competes
Market Share – OTC
TEMPO
SCAN
PACIFIC
8%
SOHO
7%
KALBE FARMA
17%
* Others
47%
GLAXOSMITHKLIN
E CH
3%
LANDSON
2%
KONIMEX
5%
SANBE
4%
BAYER
PHAROS
INDONESIA
INDONESIA
3%
4%
Total Market = IDR 11.4 T
Source: IMS for OTC –ITMA , Q1 2008
28
Section IV. Business Overview
D. Distribution and Packaging
29
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
Pharma
30
Consumer
Medical Instrument
Fine Chemical
& Diagnostic
Raw Materials
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
Composition
Packaging Revenues by Composition
Kalbe
33%
3rd party
32%
Kalbe
68%
仌
Note:
1.Source: Management data of Q1 2008
31
3rd Group
67%
Section V. Operational Overview
32
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
Nutritional and
Consumer
Health
33
Comments
 Sales force of over 2,200
 Directly cover 150,000 outlets
 Indirectly covers over 1mm
outlets or 80% of total
consumer health market
 Largest sales force in Indonesia
 Most developed telemarketing team in
the nutritional sector
 Over 1,900 medical reps
 Market coverage
– 70% of GP market covered
– 90% of specialist market
covered
 100% of all hospitals covered
 100% pharmacy coverage
 Largest sales force in Indonesia
 Over 1,800 sales & marketing
personnel
 Total of 4,000 employees
 60 marketing branches
throughout Indonesia
 40 distribution centers
 1,000 trucks
 500 motorcycles
 80% of consumer health
market
 100% of prescription pharma
market
 24-hour order fulfillment
 4–5-hour order fulfillment for
prescription pharma
 24-hour service for life saving drug
 Direct delivery to end customers
 Offers value added services to
customers
– resource management, strategic
sourcing & supply
– needs-basis marketing service
Prescription
Pharma
Distribution
Indonesia Coverage
V. Operational Overview – Manufacturing
Infrastructure
Kalbe operates 11 GMP facilities that are compliant with international
standards, with an additional 1 facility under construction
Facility
Bldg
2
Area (m )
Production Lines
Licensees Certification
Astellas
ISO9001, ISO14001,
OHSAS18001
448
42,684
9 lines of Non Beta Lactam products
(tablet, capsule, cream, liquid oral, injection)
41
17,232
3 lines; effervescent, powder & liquid
–
ISO9001, ISO14001,
OHSAS18001, HACCP
Dankos Farma
189
14,905
3 factories; Non Beta Lactam, Penicillin &
Cephalosporin lines
Daiichi
ISO9001, ISO14001,
OHSAS18001
Sanghiang Perkasa
132
11,869
6 lines (4 lines sachet, 1 line tin, 1 line mixed
sachet)
Morinaga
ISO9001, ISO14001,
HACCP, OHSAS18001
67
7,000
Line Non Beta Lactam products & penicillin
–
–
143
3,400
3 lines; solid, liquid oral, and semi solid
(Non Beta Lactam products)
–
ISO9001
24
2,500
Large volume Parenteral Line
Baxter
ISO9001
900
7,506
18 lines incl packaging & printing
–
–
Avesta
2,700
8,414
25 lines incl sliting, printing
–
–
Indogravure
2,714
6,477
10 lines incl printing
–
–
17
23,041
1 wet – drier line, 1 can line, 2 sachet lines
Morinaga
–
–
5,000
2 lines: tablet and cream
–
NAFDAC (local FDA)
Kalbe Farma
Bintang Toedjoe
Saka Farma
Hexpharm Jaya
Fima
Kageo Igar Jaya
Kalbe Morinaga
Orange Kalbe Ltd 

34
Products
Manufactured
Facility is being built
V. Operational Overview – Manufacturing
Infrastructure
Kalbe Farma - Cikarang
35
V. Operational Overview – Manufacturing
Infrastructure
Bintang 7 – Pulo Gadung
36
V. Operational Overview – Manufacturing
Infrastructure
Dankos – Pulo Gadung
37
V. Operational Overview – Manufacturing
Infrastructure
Bintang 7 – Pulomas
38
V. Operational Overview – Manufacturing
Infrastructure
Hexpharm - Cipanas
39
V. Operational Overview – Manufacturing
Infrastructure
Fima - Bekasi
40
Section VI. Growth Drivers
41
Growth Drivers – Nutritional and Consumer
Health New Product Development
Kalbe continues to develop new and innovative nutritional and consumer health products
Nutritionals
Key
Opportunities
42
 International & brand
expansion
– Prenagen
– Entrasol
– Diabetasol
– Nutrive Rellax
OTC
 Preventive products
 Balance products:
antioxidants, immune
systems, probiotic, and
appetite stimulants
 Beauty products: skin,
anti-aging, body shape,
mouth & teeth, varices
 Isotonic Drink:
Fatigon Hydro
Energy Drinks
 International & brand
expansion
– Extra Joss
– Joss Fit
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
Planned
Product Launches
Key
Opportunities
Licensed
43
Branded Generics
Generics
 Key therapeutic targets
for NCEs
– Oncology
– Cardiology
– Neurology
– Endocrinology,
– Critical Care
– Human vaccine
– Biotechnology
– Dental products
– Ophthalmology
 In-house drug delivery system
– Key target areas: cardiology,
neurology, endocrinology,
analgesic, dental products
 In-house formulation
– Key target areas: cardiology,
neurology, endocrinology,
analgesic, dental products,
ophthalmology, respiratory,
anti aging, kidney
 Key therapeutic
targets
– Antibiotics
– Analgesic
– Gastrointestinal
– Respiratory
2008: 3 products
2008: 10 products
2008: 5 products
Innogene
 Bio-generics market
 Proprietary drug development
 TheraCIM / Nimotuzumab (anti EGFR/HER1 MAb)
– Phase III
– Target market: Glioma, Nasopharyngeal Carcinoma,
Cancer of the Head and Neck, pancreatic, lung, etc.
– Very similar to Erbitux: same mechanism but much less
side effects (e.g: pimples)
– To be marketed in Indonesia in 2008 via Special Access
Scheme (SAS), and later to ASEAN, Taiwan and S. Africa
 1E10 (N-glycolyl containing ganglioside MAb)
– Phase III trial start in Singapore, South Korea & Taiwan
– Target market: NSCLC, Breast cancer
– Est. launch in 2010–2012
 Kalsolac (Lactate-based pharma)
– Approved for resuscitation post cardiac surgery (New
Zealand) & Traumatic Brain Injury (EU)
– Target mkt: Traumatic Brain Injury, Cardiology and Stroke
– Has been launched in Indonesia as Totilac (Apr 2006) and
the Philippines (Nov 07) for Heart surgery patients
– Potentially able to repair/improve neurological function
after suffering from brain trauma
– Australia application for compositional patent is in progress
– US: Animal Study Completion
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
Philippines
44
 Brand building of Woods and Milna products
 Marketing and brand building of Extra Joss
Thailand
 Market bio-generic products in the very near
future
Vietnam
 Marketing of selected OTC, energy drink
and prescription pharma products
Section VII. Financial Overview
45
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
700
1,200
6,000
600
1,000
5,000
500
4,000
400
3,000
300
2,000
200
1,000
100
-
FY- FY- FY- FY- FY- FY2002 2003 2004 2005 2006 2007
IDR
Ytd
Growth3
-
25%
12%
140
120
100
80
60
40
20
-
800
600
400
200
FY- FY- FY- FY- FY- FY2002 2003 2004 2005 2006 2007
USD
16% 3%
IDR
16%
Ytd
–
Growth3
800
700
600
500
400
300
200
100
-
90
80
70
60
50
40
30
20
10
FY- FY- FY- FY- FY- FY2002 2003 2004 2005 2006 2007
USD
17% 18% 20% (3)% 4%
IDR
Ytd
–
Growth3
21%
(3)% 45% 4% 9%
Notes:
1 Audited financial report. Pro forma for restructuring completed on 12/16/05
2 Company financials converted at average exchange rates of US$1=IDR 8,940 in 2002, US$1=IDR 8,465 in 2003, US$1=IDR 9,290 in 2004, US$1= IDR
9,830 in 2005, US$1=IDR 9,141 in 2006 and US$1=IDR 9,164 in 2007
3 Growth rates based on IDR
46
USD
USD (Mio)
7,000
IDR (Bio)
800
IDR (Bio)
8,000
Net Income
USD (Mio)
Operating Income
USD (Mio)
IDR (Bio)
Revenues
VII. Financial Overview – Financial Performance
Kalbe’s revenues, operating income and net income.
7,005
6,072
5,871
∆ 15%
∆ 3%
1,106
653
FY-2005
Revenues
Notes:
1 Based on Audited Financial Report
2 Growth rates based on IDR
47
1,071
677
FY-2006
Operating Profit
∆ -3%
∆ 4%
1,129
706
FY-2007
Net Income
∆ 5%
∆ 4%
Financial Overview – Revenue Drivers
Net Sales of each Segment, based on 2006 and 2007 Financial Audited Report
1,806.3
1,599.9
1,468.4
1,457.1
1,322.6
1,205.9
1,053.9
944.1
895.7
802.3
246.2
∆-10.4%
∆21.0%
En Drink
2006
48
2007
Nutrition
∆11.6%
OTC
∆24.0%
Ethical
274.0
∆11.3%
Packaging
∆21.8%
Distribution
Financial Overview – Income Statements
As of December 31, 2006 & 2007
IDR (billion)
NET SALES
FY 2007 % to N.S. % Change
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
q General and Administrative
q Research and Development
TOTAL OPERATING EXPENSES
1,631
369
28
2,027
26.9
6.1
0.5
33.4
1,979
397
46
2,422
28.3
5.7
0.7
34.6
21.3
7.6
64.3
19.5
OPERATING PROFIT
1,071
17.6
1,129
16.1
5.4
677
11.2
706
10.1
4.3
NET INCOME
49
FY 2006 % to N.S.
6,072
100.0
Financial Overview – Balance Sheets
As of December 31, 2006 & 2007
FY 2006
FY 2007
% Change
CURRENT ASSETS
q Cash and Cash Equivalents
q Net Short Term Investments
q Account Receivables
q Other Receivables
q Inventory
q Other Current Assets
TOTAL CURRENT ASSETS
1,262
260
652
108
885
155
3,321
1,116
176
870
58
1,427
114
3,760
(11.6)
(32.3)
33.4
(46.3)
61.2
(26.5)
13.2
OTHER NON CURRENT ASSETS
1,303
1,378
5.8
4,625
5,138
11.1
IDR (billion)
ASSETS
TOTAL ASSETS
50
Financial Overview – Balance Sheets
As of December 31, 2006 & 2007
FY 2006
FY 2007
% Change
CURRENT LIABILITIES
q Short-term Loans
q Account Payables
q Other Payables
q Accrued Expenses
q Taxes Payable
q Maturities of Long term Debts
TOTAL CURRENT LIABILITIES
31
344
40
120
116
6
659
44
328
46
207
127
2
755
41.9
(4.7)
15.0
72.5
9.5
(66.7)
14.6
TOTAL NON CURRENT LIABILITIES
421
367
(12.8)
1,080
1,121
3.8
549
630
14.8
SHAREHOLDERS' EQUITY NET
2,995
3,387
13.1
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
4,625
5,138
11.1
IDR (billion)
LIABILITIES
TOTAL LIABILITIES
MINORITY INTEREST
51
Financial Overview – Cash Flow
As of December 31, 2006 & 2007
IDR (billion)
FY 2006
FY 2007
NET
q
q
q
705.7
260.1
(596.20)
362.9
(42.30)
(473.80)
NET (DECREASE) INCREASE
In cash and Cash Equivalents
369.6
(153.2)
CASH AND CASH EQUIVALENT
at Beginning of Year
917.9
1,261.5
CASH AND CASH EQUIVALENT
at End of Year
1,261.5
1,116.4
52
CASH:
Operating Activities
Investing Activities
Financing Activities
Section VIII. Recent Activities
53
VIII. Recent Activities – The New Logo
The new logo was launched in Mar 2007. This is to reflect the new Kalbe
Previous 
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 customers, not only with the aim to
promote better health, but also to bring about meaningful
changes that will ultimately enrich their lives generally.
While we have kept the original DNA helix to symbolize
our commitment to “the scientific pursuit of health for a
better life”, we have also added the representatiton of the
helix as two people embodies the Company’s focus on
people, caring and sharing. The green color, meanwhile
has been associated with Kalbe since the Company’s
origins, and characterizes life, growth and innovation.
54
New 
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.
– Thus, Management has decided to make use of its excess free cash flow to increase its
shareholder's value
• Approval
– Approval was sought in Kalbe’s Extraordinary General Meeting held on February 8, 2007
• Size
– Maximum funding determined to be IDR1.23 trillion (approx. USD133 million)
– Up to 1,015,601,442 shares (approx. 10% of outstanding shares)
• Mechanism
– Buyback transactions will be executed by Danareksa Securities
– The buyback period is 18 months, i.e. until August 7, 2008
– Transacitions will be executed during 30 mins after/before market opens/closes
– Maximum daily shares purchased in the buyback cannot exceed 25% of total daily shares
traded
55
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 International
Pte. Ltd. with total investments of
USD 5 million.
• Continuous CRM program through
the opening of ‘Nutrition for Life’ at
Pondok Indah Mall 2nd Floor No.
240 – 241. This is one of Kalbe
Nutritional’s services with lots of
interesting, educative and
informative activities in nutritional
area.
56
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
• Launching of Endrolin in Philippine and
Procold in Vietnam
• CSR Program at PT Bintang Toedjoe :
JOSS Mudik
57
Section IX. Future Outlook
58
IX. Future Outlook – Overall Business
• Kalbe Farma has designed its business portfolio based on 6 footholds:
PHARMACEUTICAL
NUTRITIONAL
CONSUMER
HEALTH
MEDICAL & DIAGNOSTIC
INSTRUMENTS
DISTRIBUTION &
LOGISTIC
RETAIL HEALTH
SERVICES
• Strengthen and expand existing and new business portfolios
• Optimize and improve productivity through operation excellence
• Increase R&D productivity
• Expand regionally
• Develop competent leaders
59
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 investor’s decision. It should be noted that the information contained in this Presentation is subjected to further review, and that such
information may be updated and/or amended from time to time as circumstances change or more information becomes available. Some of
those revisions or changes may be material.
Each recipient of this Presentation should therefore perform their own independent analysis of the business, operations, financial condition,
creditworthiness, status and affairs of Kalbe. Each recipient should also conduct their own enquiries into the adequacy, accuracy, and
completeness of any information relating to Kalbe, as the information and data contained in this Presentation are not substitutes for the
recipient’s independent evaluation and analysis.
This presentation is not an offering document and will be updated regularly according as necessary.
60