PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — H1 2011 Earnings Presentation
65 slides from PT Kalbe Farma Tbk's earnings presentation, July 2011
Slide 1: Company Update
Company Update 9 Unaudited YTD June 2011 Results July 2011
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 30 June 2011 Unaudited results of the Company. The information contain
Slide 3: Table of Contents
Table of Contents SECTION 1 Corporate Overview 4 SECTION 2 Market Overview 8 SECTION 3 Business Overview 13 SECTION 4 Financial Overview 38 SECTION 5 Corporate Actions & Outlook in 2011 45 SECTION 6 Appendix 56 3
Slide 4: Corporate Overview
SECTION 1 Corporate Overview 4
Slide 5: Panca Sradha Kalbe
Panca Sradha Kalbe A Platform for Sustainable Growth In line with the expansion of Kalbe Group into its current coverage of 20 subsidiary companies and growing business units, there is increasing need for formulation of internal values to serve as uniform guidelines of acceptable conduct for all emp
Slide 6: Corporate Overview
Corporate p Overview Largest Publicly-Listed Pharmaceuticals Company in Southeast Asia • Established in 1966 and headquartered q 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
Slide 7: Corporate Strategy
Corporate p Strategy gy Kalbe has a long track record of sustainable growth Inception and Entrepreneurial Enhanced Focus and Consolidation Regionalization Driven Expansion 1996–2005 2006–2015 1966–1995 1966 1977 1981 1985 1989 1991 1993 1994 1995 1997 2005 2006 2007 2009 1966: 1977: 1985: 1989: 1991
Slide 8: Market Overview
SECTION 2 Market Overview 8
Slide 9: Indonesia's Health Spending Trends
Indonesia’s Health Spending p g Trends • Total expenditure on health averaged 2% of 2.5 Total Expenditure on Health as % of GDP GDP over the 11 year period 1996-2006. 2.0 • Indonesian Government and the Parliament 1.5 are currently finalizing the bill on Social 1.0 1996 1997 1998 1999 2000 2001 2002
Slide 10: Pharmaceutical Market Breakdown
Pharmaceutical Market Breakdown Market Splits Remain Stable Total Market Trend 2006 – F2011 OTC Ethical 59.6 59 6 56.4 56 4 55 6 55.6 55.9 55 9 58 1 58.1 59.5 59 5 40.4 43.6 44.4 44.1 41.9 40.5 2006 2007 2008 2009 2010 F2011 Ethical (Rp Bn) 14,044 14,861 17,167 19,564 21,945 24,589 Ethical Growth (%
Slide 11: Indonesian Pharmaceuticals Market
Indonesian Pharmaceuticals Market The Industry is Highly Fragmented With More Than 200 Pharmaceutical Players Total Market (ITMA) Pharmacy (IPA) Hospital (IHPA) YTD 03 2011 YTD 03 2011 YTD 03 2011 Pfizer Dexa Soho Novartis Group Group Dexa Pharos Group Medica Group Pfizer Dexa Group Soho 4% 4% Pharo
Slide 12: Recent Indonesian Pharmaceuticals Regulatory
Recent Indonesian Pharmaceuticals Regulatory Price Caps on Key Generic Drugs Ministry of Health Decree No. 632 /Menkes/SK/III/2011 issued on 24 March 2011 • Replaces the previous Ministry of Health Decree No. HK.03.01/Menkes/146/I/2010. • The Indonesian Ministry of Health has set selling price and r
Slide 13: Business Overview
SECTION 3 Business Overview
Slide 14: Consolidated Sales Breakdown
Consolidated Sales Breakdown Predominantly Serves Local Market Sales Breakdo nB Breakdown By Segment Sales Breakdo nB Breakdown By Geographical YTD 06 2011 YTD 06 2011 Prescription Distribution & Export Logistics Pharmaceuticals 5% 28% 30% Consumer Domestic Nutritionals Health 95% 23% 19% Total Sale
Slide 15: Prescription Pharmaceuticals Division: Net Sales Performance
Prescription Pharmaceuticals Division Net Sales Performance 1,600 65.7% 66.1% 70.0% • Net sales grew by 10.4% to Rp 1,387 Bn in 1,500 65.0% YTD 06 2011. 1,400 1,300 +10.4% 1,387 60.0% • Gross profit margin slightly increased by 0.4%. 1,200 55.0% • The Th largest l medical di l representatives i team
Slide 16: Prescription Pharmaceuticals Division: Product Range
Prescription Pharmaceuticals Division Comprehensive Product Range Targeted To All Income Groups Sales Contribution By y Number of Therapeutic Class P d t Products Product Categories • General Anti-Infectives YTD 06 2011 • Hospital Solutions Licensed Licensed 96 • Oncology Products • Blood and Blood
Slide 17: Prescription Pharmaceuticals: Market Share
Prescription Pharmaceuticals Division Leading in Indonesia Prescription Pharmaceuticals Market Share Total Market (ITMA) Pharmacy (IPA) Hospital (IHPA) YTD 03 2011 YTD 03 2011 YTD 03 2011 Sanofi Aventis Dexa Medica Dexa Medica Pfizer Sanofi Aventis Pfizer Group Sanbe Group Dexa Medica Group Novartis
Slide 18: Prescription Pharmaceuticals: New Production Facility
Prescription Pharmaceuticals Division New Production Facility • New production facility in Cikarang: • Dedicated for generic drugs’ tablet production line. • Constructions completed in December 2010 • The certification from local FDA is expected to be obtained in September 2011. • New production fac
Slide 19: Consumer Health Division: Brand Equity
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe Kalbe’s s top products YTD March 2011 Therapeutic Class Kalbe’s Products Market Share by Volume Antacid Promag, Waisan 85.2%* Anti Diarrhea Neo Entrostop p 44.8%* Cough Remedies Komix, Woods, Mextril, Mix
Slide 20: Consumer Health Division: Net Sales Performance
Consumer Health Division Net Sales Performance • C Consumer H lth nett sales Health l iincreased dbby 1,000 55.3% 56.1% 60.0% 12.9% to Rp 932 Bn in YTD 06 2011 from 950 55.0% Rp 826 Bn in YTD 06 2010. 900 +12.9% 932 50.0% % 850 45.0% • The increase in sales was mainly 800 826 supported by the OTC sa
Slide 21: Consumer Health Division: Leading Market Position
Consumer Health Division Leading Market Position OTC Energy Drink YTD 03 2011 YTD 12 2010 (Unit) Others p Tempo Group Pharos Group M-150 7% 7% 7% Abb tt Group Abbott G 4% Soho Group 5% Kuku Bima Konimex Kratingdaeng 8% 41% 5% GSK Group 7% Kalbe 4% Group 14% Others Hemaviton 50% 15% ExtraJoss 26% Tot
Slide 22: Consumer Health: Launching Innovative New Products
Consumer Health Division Launching Innovative New Products Fatigon Hydro An isotonic drink made of real coconut water Tipco Fruit Juice A healthy drink made of fruits and vegetables Komix DT A non-drowsy cough syrup with more convenient packaging E-Juss Ginseng Healthy energy drink with extract frui
Slide 23: Ready to Drink ExtraJoss in Philippines
Consumer Health Division Ready to Drink ExtraJoss in Philippines • Following the success of Ready-to-Drink (RTD) ExtraJoss in returnable glass bottle (RGB), Kalbe has launched Extra Joss in PET bottle in March 2011. 2011 • Kalbe has introduced a new variant of energy drink, EnerJuice, the first ener
Slide 24: Nutritionals Division: Complete Range of Products
Nutritionals Division Complete Range of Nutritional Products • Catered to expecting & lactating mothers, babies, toddlers, children, tweens, teens and d adults. d lt Expecting Lactating Baby Toddler Kid Tween Teen 25+ 35+ Clinical 24
Slide 25: Relatively Low Milk per Capita Consumption
Nutritionals Division Relatively Low Milk per Capita Consumption Milk per Capita Consumption (kg) 40 -2.2% 30 2.4% kg 20 10 -3.6% 2.9% 2.3% 1.6% 0 Indonesia Vietnam Philippines Thailand South Korea Malaysia 2006 2.27 2.69 1.45 14.24 35.61 8.03 2007 2.35 2.36 1.47 11.96 34.83 8.66 2008 2.47 2.77 1.28
Slide 26: Growth of Indonesian Powder Milk Market
Nutritionals Division Growth of Indonesian powder milk market By Volume (Kg ‘000) 000) By Value (Rp Bn) 154,953 10.3% 13,384 9.3% 140,494 12,245 MAT Mar 2010 MAT Mar 2011 MAT Mar 2010 MAT Mar 2011 Source : AC Nielsen, MAT 03 2011 26
Slide 27: Nutritionals Division: Net Sales Performance
Nutritionals Division Net Sales Performance 1,200 60.5% 60.5% 65.0% • Nutritionals Division net sales were up 60.0% 1,100 +8.8% 1,130 by 8.8% to Rp 1,130 Bn in YTD 06 2011 55.0% 1,000 1,039 50.0% f from Rp 1,039 Bn in YTD 06 2010. 900 45.0% • Existing major products continued to 800 40.0% gain marke
Slide 28: Competing With Multi National Companies
Nutritionals Division Competing With Multi National Companies P d Milk M Powder k t Sh Market Share YTD 03 2011 Market Share of Kalbe Nutritionals Products In its Category YTD March 2011 Mead Johnson Abbott 3% Nutrifood Kalbe’s Products Market Share Fonterra Wyeth 3% 2% Others 6% 4% Diabetasol 75.9%
Slide 29: Nutritionals: Launching of New Products
Nutritionals Division Launching of New Products KidZee and Zee Powder milk for kids, tweens, and teens targeted to the middle segment Nutrive Benecol Smoothie with special ingredient to lower cholesterol Lovamil A new powder milk product for expecting and lactating mothers targeted to the middle seg
Slide 30: The Most Extensive Distribution Network
Distribution & Logistics Division The Most Extensive Distribution Network Kalbe has the most extensive distribution network of any pharmaceutical company in Indonesia with 2 Regional Distribution Centers and 65 branches 30
Slide 31: Distribution & Logistics: Net Sales Performance
Distribution & Logistics Division Net Sales Performance 30.4% • Distribution & Logistics Division is run 1,800 29.8% 30.0% under PT Enseval Putera Megatrading 1,600 +7.2% Tbk (EPMT), a public listed company ‐5.5% 1,586 1,400 1 500 1,500 1,500 1 500 25.0% (84.17% owned). 1,200 1,399 20.0% • Disposal
Slide 32: Distribution & Logistics: Expansion Plans
Distribution & Logistics Division Expansion Plans Completed p Rights g Issue in March 2011 in the amount of Rp p 300 Bn to finance 2 years expansion plans: 1. Expand into new territories in Indonesia 2. Upgrade existing branch facilities to improve service quality 3. Establish several Regional Distr
Slide 33: Medical Devices, a New Growth Driver
Distribution & Logistics Division Medical Devices, a New Growth Driver Raw Materials Trading & Others N Nett S l (in Rp Bn) Sales Medical Devices 7% Medical Devices Raw Material Trading 4% 915 714 718 673 581 CAGR 502 CAGR 414 40.7% 310 23.4% 3rd Party 315 233 18% FY 2006 FY 2007 FY 2008 FY 2009 FY
Slide 34: Major Third Party Principals by Category
Distribution & Logistics Division Major Third Party Principals by Category Prescription P i ti Medical M di l Instrument I t t Fine Chemical Fi Ch i l Pharmaceuticals Consumer & Diagnostic Raw Materials 34
Slide 35: New Retail Health Service: Mitrasana Clinic
Distribution & Logistics Division New Retail Health Service : Mitrasana Clinic • A 100% owned by of EPMT. • Opening of Mitrasana Clinics as a one-stop service, includes family doctor, pharmacy, laboratory, and convenient store. • To date, Kalbe has opened 27 Mitrasana clinics in Jakarta and its Grea
Slide 36: Marketing and Sales Infrastructure
Marketing and Sales Infrastructure The largest sales force for Pharma and Consumer Health in Indonesia Prescription Distribution & Consumer Health Nutritionals Pharmaceuticals Logistics • Over 2,000 sales & • Over 2,300 medical • Approximately 1,000 • Over 1,000 marketing marketing personnel represe
Slide 37: Manufacturing Infrastructure
Manufacturing Infrastructure Operates 9 GMP facilities comply with international standards Products Bldg 2 F ilit Facility Manufactured M f t d Area ((m ) A P d ti Lines Production Li Li Licensees C tifi ti Certification 9 lines of Non Beta Lactam products ISO9001, ISO14001, Kalbe Farma 448 42,684 (
Slide 38: Financial Overview
SECTION 4 Financial Overview 38
Slide 39: Consolidated Sales: Net Sales Growth
Consolidated Sales Net Sales Growth Net Sales (in ( Rpp Bn)) 9.5%* 30 June 2010 (Unaudited) 30 June 2011 (Unaudited) 5.1% 4 949 4,949 4,707 7.2%* 5.5% 10.4% 12.9% 8.8% 1,586 1,500 1,256 1,387 1,039 1,130 826 932 Prescription Consumer Health Nutritionals Distribution & Consolidation Pharmaceuticals L
Slide 40: Strong Financial Performance: Improved Gross Profit Margin
Strong Financial Performance Improved Gross Profit Margin Gross Profit Operating Expenses to Net Sales Ratios +1.5 % +1.5% 32.8% 34.4% +1.6 % 0.8% 0.8% 50.7% 52.1% 5.7% 5 6% 5.6% Selling & Marketing General & Administrative 26.4% 27.8% Research & Development 30 June 2010 30 June 2011 30 June 2010 30
Slide 41: Strong Financial Performance: Double Digit Earnings Growth
Strong Financial Performance Double Digit Earnings Growth Operating Profit Margin Net Income Margin 700 16.0% 900 17.8% 17.8% 13.6% 18.0% 680 14.0% 850 12.2% +4 8% 879 +4.8% 16 0% 16.0% 660 675 12.0% 800 838 14.0% 640 +18.0% 620 10.0% 750 12.0% 10.0% 600 8.0% 700 8.0% 580 6.0% 650 6.0% 560 572 600 4
Slide 42: High Earnings per Share Growth
Strong Financial Performance High Earnings per Share Growth High g EPS Growth 160 3 Yr -CAGR • Expansion of margin 38% • Operating profit margin grew from 14.5% 140 in 2008 to 17.5% in 2010 120 • Net income margin g grew g from 9% in 2008 to 12.6% in 2010 100 • Share buy back program 80 +18.0% • Com
Slide 43: Working Capital Management
Working Capital Management Improved Net Operating Cycle YTD 06 2010 YTD 06 2011 (Unaudited) (Unaudited) ∆ Change Working W ki Capital C it l Management M t is i Days of Account Receivable 52 55 3 improved significantly in 2011 Days of Inventory 137 117 ‐20 Days of Account Payable 46 47 1 Net Operati
Slide 44: Solid Financial Position
Solid Financial Position Rp 2.2 Trillion of Net Cash Position Total Debt and Gearing g Ratio Cash & Net Cash Balance 450 12.6% 14.0% 2,356 400 11.2% 2,216 12 0% 12.0% 350 1,902 1,877 9.3% 10.0% 300 7.9% 1,562 1,471 250 8.0% 1,261 1,322 1,311 1,223 1 116 1,116 200 379 405 6.0% 917 340 883 805 150 311
Slide 45: Corporate Actions & Outlook in 2011
SECTION 5 Corporate Actions & Outlook in 2011 45
Slide 46: Corporate Actions in 2011
Corporate Actions in 2011 Rights Issue of PT Enseval Putera Megatrading Tbk PT Enseval Putera Megatrading Tbk completed Rights Issue in M March h 2011 ini the th amountt off RpR 300 Bn B tot finance fi 2 years expansion plans. Kalbe acted as the stand-by buyer and as of now, Kalbe owns 84.17% in PT
Slide 47: Achievements in 2011
Achievements in 2011 Awards in 2011 • The 2011 Best Corporate Image Award in 3 Categories: Pharmaceutical Distribution, Ethical Pharmaceutical and OTC Pharmaceutical, from Frontier Consulting Group and Bloomberg Businessweek. • The 2011 Best Listed Company for Cigarettes, Pharmaceutical and Househol
Slide 48: Outlook 2011: Enhance Business Portfolio
Outlook 2011 Enhancing Our Value Proposition 1. Enhance business portfolio through new products, business developments, merger and acquisition 48
Slide 49: Outlook 2011: Expand Business Territory
Outlook 2011 Enhancing Our Value Proposition 2. Expand business territory through collaboration 49
Slide 50: Outlook 2011: Direct-to-Consumer Program
Outlook 2011 Enhancing Our Value Proposition 3. Implement Direct-to-Consumer (D2C) Program Customer Relationship Mgmt Talk shows and free health screening Mall to Mall Roadshows Commemorating the 2011 World Kidney Day Nutrition For Life (NFL), Pondok Indah Mall 50
Slide 51: Outlook 2011: Strengthen Distribution Coverage
Outlook 2011 Enhancing Our Value Proposition 4. Strengthen domestic distribution coverage and logistics infrastructure 51
Slide 52: Outlook 2011: PIC Program
Outlook 2011 Enhancing Our Value Proposition 5. Continue the implementation of the Productivity – Innovation – Cash flow (PIC) Program to all business units 52
Slide 53: Outlook 2011: Aligned Supply-Chain Program
Outlook 2011 Enhancing Our Value Proposition 6. Continue the implementation of aligned supply-chain program 53
Slide 54: Outlook 2011: Develop People Competence
Outlook 2011 Enhancing Our Value Proposition 7. Develop people competence and leadership 54
Slide 55: Outlook 2011: Earnings Guidance 2011
Outlook 2011 Earnings Guidance 2011 (excluding packaging business) 1. Year-on-year 1 Year on year Sales Growth 11% - 13% 2. Operating Profit Margin 17.5% - 18% 3. Earnings per Share Rp 155 – Rp 160, representing a year-on-year growth of 15% - 18% 55
Slide 56: Appendix: Financial Information
SECTION 6 Appendix Financial Information YTD June 30, 30 2011 (Unaudited) 56
Slide 57: Unaudited Financial Statement: Consolidated Balance Sheets (Assets)
Unaudited Financial Statement YTD 06 2011 Consolidated Balance Sheets 30 June 2010 30 June 2011 (Unaudited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,470,837,047,302 2,356,318,272,435 60.2% Short term Investments Short‐term 15 397 699 321 15,397,699,321 66 527 688 357 66
Slide 58: Unaudited Financial Statement: Consolidated Balance Sheets (Liabilities)
Unaudited Financial Statement YTD 06 2011 Consolidated Balance Sheets 30 June 2010 30 June 2011 (Unaudited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Short‐term Loans 157,500,587,090 139,497,671,383 ‐11.4% Trade Payables 586,401,834,838 624,173,005,578 6.4% Other Payables 149,280,765,262
Slide 59: Consolidated Balance Sheets vs Dec 2010 (Assets)
Unaudited Financial Statement YTD 06 2011 Consolidated Balance Sheets * 31 Dec 2010 30 June 2011 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,901,871,765,050 2,356,318,272,435 23.9% Short‐term Investments 5,315,920,203 66,527,688,357 1151.5% Trade Receivables 1,26
Slide 60: Consolidated Balance Sheets vs Dec 2010 (Liabilities)
Unaudited Financial Statement YTD 06 2011 Consolidated Balance Sheets * 31 Dec 2010 30 June 2011 (Audited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Short‐term Loans 24,290,351,153 139,497,671,383 474.3% Trade Payables 488,240,634,231 624,173,005,578 27.8% Other Payables 139,052,381,971 1
Slide 61: Consolidated Statements of Income
Unaudited Financial Statement YTD 06 2011 Consolidated Statements of Income 30 June 2010 30 June 2011 (Unaudited) (Unaudited) % Change NET SALES 4 706 809 589 746 4,706,809,589,746 4 948 716 279 038 4,948,716,279,038 5 1% 5.1% COST OF GOODS SOLD 2,322,776,297,551 2,368,068,908,712 1.9% % to NS 49.3%
Slide 62: Consolidated Statements of Income (continued)
Unaudited Financial Statement YTD 06 2011 Consolidated Statements of Income 30 June 2010 30 June 2011 (Unaudited) (Unaudited) % Change INCOME FROM OPERATIONS 838,205,604,761 878,672,818,052 4.8% % to NS 17.8% 17.8% 0.0% OTHER INCOME (CHARGES) Interest Income 23,248,784,810 50,557,108,970 117.5% Inte
Slide 63: Consolidated Statements of Cash Flows
Unaudited Financial Statement YTD 06 2011 Consolidated Statements of Cash Flows 30 June 2010 30 June 2011 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 5,032,729,922,591 5,173,332,213,212 2.8% Cash paid to suppliers and employees (2,976,647,816,02
Slide 64: Consolidated Statements of Cash Flows (continued)
Unaudited Financial Statement YTD 06 2011 Consolidated Statements of Cash Flows 30 June 2010 30 June 2011 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans 318,285,059,132 289,574,000,000 ‐9.0% Proceeds from sale of treasury stock 3,121,157,136 ‐ ‐100.0%
Slide 65: Thank You
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 : [email protected] jhandajani@kalbe co id [email protected] [email protected] Website : www.kalbe.co.id 65