PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — Q3 2009 Earnings Presentation
52 slides from PT Kalbe Farma Tbk's earnings presentation, November 2009
Slide 1: Company Presentation YTD September 2009 Results
Company Presentation YTD September 2009 Results Natural Taste, Healthier Life Excellence in Execution
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation has been prepared for informational purposes only by PT Kalbe Farma Tbk. (“Kalbe” or the “Company”). This presentation has been prepared solely for use in connection with the release of the 30 September 2009 unaudited results of the Company. The informatio
Slide 3: Table of Contents
Table of Contents SECTION 1 Corporate Overview 4 SECTION 2 Market Overview 7 SECTION 3 Business Overview 12 SECTION 4 Operational Overview 33 SECTION 5 Financial Overview 36 SECTION 6 Outlook 2009-2010 42 SECTION 7 Appendix 46 Excellence in Execution 3
Slide 4: Corporate Overview
SECTION 1 Corporate Overview 4 Excellence in Execution
Slide 5: Corporate Overview
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 • Kalbe markets and
Slide 6: Corporate Strategy
Corporate Strategy Kalbe was established in 1966 and has a long track record of profitable growth Inception and Entrepreneurial Enhanced Focus and Consolidation Globalization Driven Expansion 1996–2005 2006–2015 1966–1995 1966 1977 1981 1985 1989 1991 1993 1994 1996 1997 2005 2006 2007 2008 1966: 19
Slide 7: Market Overview
SECTION 2 Market Overview 7 Excellence in Execution
Slide 8: Growing Pharmaceutical Market
Growing Pharmaceutical Market Total Market Trend, 2005-2008 and Forecast 2009 By company type Local Foreign 73.9% 71.2% 71.5% 71.9% 72.2% 26.1% 28.8% 28.5% 28.1% 27.8% 2005 2006 2007 2008 F2009 Total Market (Rp Bn) 23,582 23,477 25,696 29,942 33,536 Total Growth (%) 13.6 (0.4) 9.5 16.5 12.0 Foreign
Slide 9: Pharmaceutical Market Breakdown
Pharmaceutical Market Breakdown Market Splits Remain Stable Total Market Trend, 2005-2008 and Forecast 2009 OTC Ethical 38.0% 40.2% 42.3% 43.4% 43.9% 62.0% 59.8% 57.7% 56.6% 56.1% 2005 2006 2007 2008 F2009 Total Market (Rp Bn) 23,582 23,477 25,696 29,942 33,536 Total Growth (%) 13.6 (0.4) 9.5 16.5 1
Slide 10: Indonesian Pharmaceuticals Market
Indonesian Pharmaceuticals Market Total Market (ITMA) Hospital (IHPA) Pharmacy (IPA) YTD June 2009 YTD June 2009 YTD June 2009 Dexa Medica Group Dexa Dexa Novartis 5% Medica Group Sanofi Aventis Pfizer Medica Group Group Soho Tempo 8% Pfizer Group Sanbe 6% Group 4% Sanbe Group Group Group 3% 9% 5% S
Slide 11: Recent Indonesian Regulatory
Recent Indonesian Regulatory Limitation of Promotional Spending by Cigarette and Pharmaceutical Companies Ministry of Finance Decree No.104/PMK.03/2009 • It regulates the maximum amount of promotional and distribution costs that are tax-deductible for cigarette and pharmaceutical companies. • For ph
Slide 12: Business Overview
SECTION 3 Business Overview 12 Excellence in Execution
Slide 13: Consolidated Sales
Consolidated Sales Strong Sales growth with improving Gross Profit Margin 13.6% 6,500 49.8% 6,494 49.6% • Consolidated sales grew by 13.6% to 49.4% Rp 6,494 Bn in YTD 09 2009. 49.2% 6,000 49.0% 49.2% 49.0% • Gross Profit Margin improved from 48.8% 5,718 49.0% in YTD 09 2008 to 49.2% in 5,500 48.6% 4
Slide 14: Consolidated Sales Contribution
Consolidated Sales Contribution YTD September 2008 YTD September 2009 (Unaudited) (Unaudited) Prescription Prescription Distribution & Distribution & Pharmaceuticals Pharmaceuticals Packaging Packaging 24% 25% 34% 34% Consumer Consumer Health Health Nutritionals Nutritionals 20% 20% 22% 21% Excellen
Slide 15: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Sales Contribution Number of Therapeutic Class YTD 09 2009 (Unaudited) Products by Product Categories • General Anti-Infectives • Hospital Solutions Licensed • Oncology 82 • Blood and Blood Forming Organs Licensed Products • Musculo-Skeletal System Products • Al
Slide 16: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Consistent double digit sales growth Prescription Pharmaceuticals • Prescription Pharmaceuticals net sales Net Sales in Rp Billion grew by 20.7% to Rp 1,640 Bn in YTD 09 2009. 20.7% 1,600 1,640 1,450 67.0% • Gross Profit Margin improved from 1,300 1,359 64.3% 61
Slide 17: Prescription Pharmaceuticals Market Share
Prescription Pharmaceuticals Division Prescription Pharmaceuticals Market Share Total Market (ITMA) Hospital (IHPA) Pharmacy (IPA) YTD June 2009 YTD June 2009 YTD June 2009 Dexa Pfizer Kalbe Medica Group Novartis Group Dexa Group 7% Pfizer Group Sanofi Aventis Pfizer Sanbe 4% Medica Group 7% Group 5
Slide 18: Consumer Health Division
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe’s top products as per June 2009 Therapeutic Class Kalbe's Products Market Share by Volume Antacid Promag Reg, Promag DA, Waisan 82.5% Anti Diarrhea Neo Entrostop 45.7% Cough Remedies Komix, Woods, Mextril
Slide 19: Consumer Health Division
Consumer Health Division Consumer Health Division consists of OTC Pharmaceuticals and Energy Drink Consumer Health Net Sales in Rp Billion 12.0% 1,290 75.0% • Consumer Health net sales grew 12.0% to 1,284 1,090 1,146 70.0% Rp 1,284 Bn in YTD 09 2009 from 890 65.0% Rp 1,146 Bn in YTD 09 2008. 61.3% 6
Slide 20: Consumer Health Division Market Share
Consumer Health Division Consumer Health Division consists of OTC Pharmaceuticals and Energy Drink Market Share Market Share OTC (ITMA) Energy Drink YTD June 2009 MAT June 2009 (Unit) Soho Pharos Group Group Sanbe Others Tempo 9% 6% 4% 10% Group Kalbe Konimex Extra Joss 9% Group 4% 34% GlSK 15% 3% K
Slide 21: Consumer Health Division: Enhanced Business Portfolio
Consumer Health Division Enhanced Business Portfolio • Launched several new products : – Fatigon Hydro+ • An isotonic drink made from natural coconut water in March 2008 – E-Juss • An energy drink with grape extract juices in May 2009 – Cerebrofort Strawberry • New flavor of Cerebrofort – Entrostop
Slide 22: Nutritionals Division
Nutritionals Division • Complete range of nutritional products, mostly in the form of powder milk, catered to expecting & lactating mothers, babies, toddlers, children, and adults. • Currently, there are 10 brands marketed by the Division. Expecting Lactating Baby Toddler 25+ 35+ Clinical Excellence
Slide 23: Indonesian Powder Milk Market
Indonesian Powder Milk Market YoY growth of Indonesian powder milk in 2009 was driven primarily by price increase. Total Market in Unit Total Market in Value Kg (‘000) Rp Billion 68,891 6,083 67,571 5,603 +2.0% +8.6% YTD 08 2008 YTD 08 2009 YTD 08 2008 YTD 08 2009 Source : AC Nielsen YTD 08 2009 Exc
Slide 24: Nutritionals Market Share
Nutritionals Division Nutritionals Market Share YTD June 2009 • Premium products which are Based on Value (Rp) targeted to higher income group. Sari Husada FFI Nutricia • Compete mostly with multi national 11% 10% Kalbe 15% Nutritionals companies who have significant 8% Fonterra presence in the midd
Slide 25: Nutritionals Division
Nutritionals Division Nutritionals • Nutritionals division net sales were up by Net Sales in Rp Billion 6.3% to Rp 1,350 Bn in YTD 09 2009 from Rp 1,270 Bn in YTD 09 2008. 1,400 51.0% 6.3% 50.0% 1,300 1,350 • As the result of the reduction in skimmed 49.0% milk prices, Nutritionals division was able
Slide 26: Nutritionals Division New Products
Nutritionals Division • Launching several new products since 2008. – Nulife No Calorie Sweetener – Nulife Oatmeal+ Oatbran – Nulife Crispy Cereal Bar – Nutrive Benecol, • Smoothie with special ingredient to lower cholesterol. – Prenagen Ready to Drink • Launched Experiential Marketing Activities tha
Slide 27: Distribution & Packaging Division
Distribution & Packaging Division Kalbe has the most extensive distribution network of any pharmaceutical company in Indonesia with 2 Regional Distribution Centers and 41 branches Excellence in Execution 27
Slide 28: Distribution & Packaging Sales Composition
Distribution & Packaging Division Sales Composition Distribution & Packaging Distribution & Packaging Sales Composition in YTD 09 2008 (Unaudited) Sales Composition in YTD 09 2009 (Unaudited) 3rd 3rd party party 46% 46% Kalbe Kalbe 54% 54% Distribution Sales Packaging Sales Distribution Sales Packag
Slide 29: Distribution & Packaging: Third Party Principals
Distribution & Packaging Division Kalbe distributes products for some of the leading healthcare companies in the world Major Third Party Principals by Category Prescription Medical Instrument Fine Chemical Pharmaceuticals Consumer & Diagnostic Raw Materials Excellence in Execution 29
Slide 30: Distribution & Packaging Division
Distribution & Packaging Division Consistent double digit sales growth Distribution & Packaging Net Sales in Rp Billion 14.3% • Net Sales figures represent the net 40.0% 2,200 sales of 3rd party principals. 2,000 2,220 38.0% 1,800 1,943 1,600 35.0% 34.9% 36.0% • Distribution & Packaging net sales 1,
Slide 31: Distribution & Packaging: New Growing Business
Distribution & Packaging Division New Growing Business Medical Devices Business will be a new growth driver for Kalbe 11.5% 5,262 Medical Devices Business offers: 4,720 • Marketing service of medical devices through PT Enseval Medika Prima • Hemodialysis equipment and supplies through PT Renalmed Ti
Slide 32: Distribution & Packaging: Enhanced Business Portfolio
Distribution & Packaging Division Enhanced Business Portfolio • Opening of Mitrasana Clinics as a one-stop service, includes family doctor, pharmacy, laboratory, and convenient store. • To date, Kalbe has opened 10 Mitrasana clinics in Jakarta and its Greater Area. • Expand the medical and diagnosti
Slide 33: Operational Overview
SECTION 4 Operational Overview 33 Excellence in Execution
Slide 34: Marketing and Sales Infrastructure
Marketing and Sales Infrastructure Kalbe has the largest sales force for Prescription Pharmaceuticals and Consumer Health in Indonesia Prescription Distribution & Consumer Health Nutritionals Pharmaceuticals Packaging • Over 2,000 medical • Approximately 1,000 • Over 1,000 marketing • Over 2,000 sal
Slide 35: Manufacturing Infrastructure
Manufacturing Infrastructure Kalbe operates 12 GMP facilities that are compliant with international standards Products Bldg 2 Facility Manufactured Area (m ) Production Lines Licensees Certification 9 lines of Non Beta Lactam products ISO9001, ISO14001, Kalbe Farma 448 42,684 Astellas (tablet, capsu
Slide 36: Financial Overview
SECTION 5 Financial Overview 36 Excellence in Execution
Slide 37: Strong Financial Performance
Strong Financial Performance Improved Gross Profit Margin & Controlled Operating Expenses Operating Expenses to Gross Profit Margin Net Sales Ratios 0.2% 35.0% 0.7% 0.7% 5.8% 49.2% 30.0% 5.5% 49.0% 1.8% 25.0% 20.0% 34.7% 32.9% 15.0% 28.2% 26.7% 10.0% 5.0% 0.0% YTD 09 2008 YTD 09 2009 YTD 09 2008 YTD
Slide 38: Strong Financial Performance: Improved Margins
Strong Financial Performance Improved Margins Operating Profit Margin Net Income Margin 1,200 20.0% 22.2% 12.0% 28.8% 600 19.0% 11.5% 1,000 1,053 616 11.0% 18.0% 500 800 504 10.5% 16.2% 17.0% 818 400 9.5% 10.0% 600 16.0% 8.8% 9.5% 300 14.3% 15.0% 9.0% 400 200 8.5% 14.0% 8.0% 200 100 13.0% 7.5% - 12.
Slide 39: High Growth Earnings per Share
High Growth Earnings per Share 25.5% 64 70 Earnings per Share has grown by 25.5% Y-o-Y 1400 60 driven by several factors: 1200 51 Profit Before Tax increased by 17.1% 1000 17.1% 50 Lower tax rate 991 o Corporate tax rate in 2009 is reduced from 40 800 30% to 28%. 846 22.2% 30 o Publicly Listed C
Slide 40: Improved Working Capital Management
Improved Working Capital Management 12/31/08 9/30/09 (Audited) (Unaudited) ∆ Change As a result of the Days of Account Receivable 43 51 8 implementation of end to end Days of Inventory 142 122 20 supply chain, Kalbe’s days of Days of Account Payable 27 39 12 inventory has been reduced by Net Operati
Slide 41: Solid Financial Position
Solid Financial Position Total Debt &Gearing Ratio Cash & Net Cash Balance 1,400 43.7% 1,200 1,322 1,000 40.0% 1,261 1,224 1,000 1,116 800 30.0% 918 917 916 916 800 883 600 805 1,020 20.0% 600 400 12.6% 536 11.2% 11.0% 400 9.3% 7.7% 10.0% 200 379 405 381 200 311 308 0 0.0% 0 FY 2005 FY 2006 FY 2007
Slide 42: Outlook 2009 - 2010
SECTION 6 Outlook 2009 - 2010 42 Excellence in Execution
Slide 43: Bonds, Dividend and Share Buy Back in 2009
Outlook 2009-2010 Bonds, Dividend and Share Buy Back in 2009 • Kalbe has repaid Kalbe Farma Bonds I Year 2006 amounting Rp 300 Billion in June 2009. • Kalbe has declared cash dividend of Rp12.5/share and paid to the shareholders on 14 August 2009. – An increase of 25% in dividend payout ratio. • Kal
Slide 44: Awards and Achievement in 2009
Outlook 2009-2010 Awards and Achievement in 2009 • 2009 Asia Pacific Excellence in Growth Award, from Frost & Sullivan. • Asia’s 200 Most-Admired Companies and The Indonesia’s Top 10 Companies, from The Wall Street Journal Asia. • The Most Powerful Distribution Performance 2009, for Extra Joss, Komi
Slide 45: Strategic Planning
Outlook 2009-2010 Strategic Planning New products and Regional & international Revive Energy Drink business business developments business expansion Projected Sales Growth 12 -14% Net Income Margin Improvement 0.5% - 1% Collaboration with Global Strategic Players Aligned SCM Implementation Distribut
Slide 46: Appendix: Financial Information
SECTION 7 Appendix Financial Information YTD September 2009 (Unaudited) 46 Excellence in Execution
Slide 47: Consolidated Balance Sheets
Consolidated Balance Sheets 30 September 2008 30 September 2009 (Unaudited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and cash equivalents 915,682,276,642 1,223,600,573,265 33.6% Short term investments 155,616,035,645 22,837,840,447 -85.3% Trade Receivables 976,953,107,016 1,227,029,152,174 25
Slide 48: Consolidated Balance Sheets
Consolidated Balance Sheets 30 September 2008 30 September 2009 (Unaudited) (Unaudited) % Change LIABILITIES CURENT LIABILITIES Short-term Loans 118,935,450,454 306,016,567,241 157.3% Trade Payables 538,712,529,112 475,006,616,261 -11.8% Other Payables 41,233,060,844 34,437,067,140 -16.5% Accrued Ex
Slide 49: Consolidated Statements of Income
Consolidated Statements of Income 30 September 2008 30 September 2009 (Unaudited) (Unaudited) % Change NET SALES 5,717,710,461,544 6,493,993,791,287 13.6% COGS 2,914,685,889,067 3,301,578,746,140 13.3% % to NS 51.0% 50.8% -0.1% GROSS PROFIT 2,803,024,572,477 3,192,415,045,147 13.9% % to NS 49.0% 49.
Slide 50: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 30 September 2008 30 September 2009 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 5,610,317,149,800 6,864,658,327,130 22.4% Cash paid to suppliers and employees (3,730,497,489,924) (4,358,859,802,329) 16.8% Ca
Slide 51: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 30 September 2008 30 September 2009 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans 91,407,104,039 1,873,170,212,990 1949.3% Buyback of shares (315,545,747,116) (124,453,655,137) -60.6% Payments of bank loans (18,45
Slide 52: Thank You
Thank You For further information: PT Kalbe Farma Tbk. Jalan Letjen Suprapto Kav. 4 Jakarta 10510, Indonesia Tel. : 62-21-42873888 Fax. : 62-21-42873678 Email : [email protected] [email protected] Website : www.kalbe.co.id Excellence in Execution 52