PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — H1 2013 Earnings Presentation
48 slides from PT Kalbe Farma Tbk's earnings presentation, July 2013
Slide 1: Company Update Unaudited YTD June 2013
Company Update Unaudited YTD June 2013 July 2013 Nutrition for performance
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 2013 unaudited results of the Company. The information contain
Slide 3: Table of Contents
Table of Contents Corporate Overview 4 Market Overview 7 Business Overview 11 Financial Overview 29 Corporate Actions and Outlook 2013 35 Appendix 39 3
Slide 4: Corporate Overview
SECTION 1 Corporate Overview Nutrition for performance
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 • Sales breakdown b
Slide 6: Corporate Strategy
Corporate Strategy 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 2012: 2010: ♦ Generic production 1981: 1995: Disposed of Kageo Igar Jaya facility comes on stream Spi
Slide 7: Market Overview
SECTION 2 Market Overview Nutrition for performance
Slide 8: Indonesia's Health Spending Trends
Indonesia’s Health Spending Trends • Total expenditure on health averaged 2.1% Healthcare Expenditure/GDP 2010 of GDP over the 11 year period 1999-2009. 5.00% 4.8% 1 4.50% 4.1% 3.8% 1 4.00% 3.5% • BPJS Health program of health coverage 3.50% 3.00% 3.3% 0 shall commence in Jan 2014 and intends to 2.5
Slide 9: Pharmaceuticals Market Breakdown
Pharmaceuticals Market Breakdown Kalbe – No. 1 in the Pharma Industry Kalbe continues to be the leader in the highly fragmented pharmaceuticals industry with over 200 players Pharma Market Breakdown Market Share Kalbe 12% a 6% OTC b 5% 40% c 5% d 4% Others 68% Branded & Ethicals Licensed Pharma Indu
Slide 10: Recent Indonesian Pharmaceuticals Regulatory
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 population members Presidential Decree No. 13 Year 2013 regar
Slide 11: Business Overview
SECTION 3 Business Overview Nutrition for performance
Slide 12: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Strong Top Line Growth +18.1% • No. 1 player in Indonesian Prescription Pharma Market. 1,598 1,887 • The largest medical representatives team in Indonesia with more than 2,300 personnel. • Comprehensive product offerings which covers all income groups 30 Jun 201
Slide 13: Prescription Pharmaceuticals Division: Growth Drivers
Prescription Pharmaceuticals Division Growth Drivers Market Share Unbranded Generic (ITMA) YTD 12 2012 a Penetrate further in the unbranded Others 26% 45% generics market Kalbe b 16% 13% Source: IMS QPMU 4Q 2012 Note: 2012 data adjusted for inclusion of additional companies in survey universe Comple
Slide 14: Consumer Health Division
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe’s brands YTD December 2012 Therapeutic Class Kalbe’s Products Market Share by Volume Antacid Promag, Waisan 73.8%* Anti Diarrhea Neo Entrostop 44.8%** Cough Remedies Komix, Woods, Mextril, Mixadin 33.9% C
Slide 15: Consumer Health Division: Strong Net Sales Performance
Consumer Health Division Strong Net Sales Performance +19.0% • No. 1 Player in OTC market and No.2 in Energy 1,194 Drink category. 1,003 • GPM decreased from 55.5% in YTD 06 2012 to 53.6% in YTD 06 2013 due to change in product mix and Rupiah depreciation. GPM amounted 30 Jun 2012 30 Jun 2013 to 55.
Slide 16: Consumer Health Division: Innovative New Products
Consumer Health Division Innovative New Products Hydro Coco An isotonic drink made of real coconut water. Tipco Fruit Juice A healthy drink made of fruits and vegetables Original Love Juice & Pomerama Fresh bottled fruit juice made of quality fruits available in orange, guava, apple and pomegranate
Slide 17: Nutritionals Division: Complete Range of Nutritional Products
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 25+ 35+ Clinical 17
Slide 18: Growth of Indonesian Powdered Milk Market
Nutritionals Division Growth of Indonesian Powdered Milk Market By Volume (Kg ‘000) By Value (Rp Bn) 3.7% 8.6% 17,550 16,159 190,398 183,157 FY 2011 FY 2012 FY 2011 FY 2012 Source : AC Nielsen, YTD 12 2012 18
Slide 19: Nutritionals Division: Strong Net Sales Performance
Nutritionals Division Strong Net Sales Performance +32.1% • Existing major products continued to gain 1,759 market share. 1,331 Kalbe’s Products Market Share FY 2012 Diabetasol 88.1% Milna 76.5% 30 Jun 2012 30 Jun 2013 Prenagen 55.6% (Unaudited) (Unaudited) SALES in Rp Bn Morinaga Chil Mil 10.7% Mor
Slide 20: Nutritionals Division: Launching of New Products
Nutritionals Division Launching of New Products Fitbar A healthy snack bar made of oats and cereals that comes in 2 flavors, fruits and nuts, with only 110 calories per bar, Zero Cholesterol and Zero Trans Fat, enriched with Calcium, Vitamins A, B12 and C. KidZee and Zee Powder milk for kids and twe
Slide 21: Multi Channel Customer Touch Points
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 500-880 and online shopping through www.kalbestore.com . Kalbe Family Rewards
Slide 22: Distribution & Logistics: Most Extensive Distribution Network
Distribution & Logistics Division The Most Extensive Distribution Network RDC Branches Cities 2 66 48 22
Slide 23: Distribution & Logistics: Net Sales Performance
Distribution & Logistics Division Net Sales Performance on Consolidated Basis +11.6% • Distribution & Logistics Division is run under PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly 2,312 2,581 listed company (91.75% owned). • Net sales represents the 3rd party product sales and distribution
Slide 24: Major Third Party Principals by Category
Distribution & Logistics Division Major Third Party Principals by Category Prescription Medical Instrument Fine Chemical Pharmaceuticals Consumer & Diagnostic Raw Materials 24
Slide 25: Distribution & Logistics: Growth Drivers
Distribution & Logistics Division Growth Drivers Medical Devices Retail Health Services : 54 Mitrasana Clinics Medical Devices is an area of potential • Opening of Mitrasana Clinics as a growth, especially in the one-stop service with 4-in-1 implementation of National Healthcare concept, including f
Slide 26: Strengthening Distribution Network
Distribution & Logistics Division Strengthening Distribution Network • Continues 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 Indo
Slide 27: 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 28: Manufacturing Infrastructure
Manufacturing Infrastructure Operates 11 GMP facilities complying with international standards Products Building Area Facility Production Lines Licenses Certification Manufactured (m2) 9 lines of Non Beta Lactam Products ISO 9001, ISO 14001, Kalbe Farma 448 42,684 Astellas (tablet, capsule, cream, l
Slide 29: Financial Overview
SECTION 4 Financial Overview Nutrition for performance
Slide 30: Consolidated Sales
Consolidated Sales Strong Top Line Growth of Internal Kalbe Products Net Sales (in Rp Bn) 18.9% 30 Jun 2012 (Unaudited) 7,421 30 Jun 2013 (Unaudited) 6,244 11.6% 18.1% 32.1% 19.0% 2,312 2,581 1,598 1,887 1,331 1,759 1,003 1,194 Prescription Consumer Health Nutritionals Distribution & Consolidation P
Slide 31: Consolidated Operating Performance
Consolidated Operating Performance Stable Margin Gross Profit Margin Operating Expenses to Net Sales Ratios 49.1% 48.8% 31.6% 32.6% 32.5% 47.9% 0.7% 0.8% 0.9% 4.8% 5.0% 4.7% Selling & Marketing 31 Dec 2012 30 Jun 2012 30 Jun 2013 (Audited) (Unaudited) (Unaudited) General & Administrative 26.2% 26.8%
Slide 32: Consolidated Net Earnings
Consolidated Net Earnings Sustainable Earnings Growth Income Before Tax Net Income (in Rp bn) (in Rp bn) + 12.7 % 1,226 +14.2 % 1,088 922 807 30 Jun 2012 30 Jun 2013 30 Jun 2012 30 Jun 2013 (Unaudited) (Unaudited) (Unaudited) (Unaudited) • Income before tax margin declined from 17.4% • Net income ma
Slide 33: Working Capital Management
Working Capital Management A Temporary Spike in Working Capital Temporarily building up 158 inventory level due to No. of days 129 Ramadhan festive season 120 120 142 108 114 122 123 110 115 107 Net Operating Cycle has been decreased by 38 days 50 50 from 158 days in 2008 to 120 43 45 44 48 days in
Slide 34: Solid Financial Position
Solid Financial Position Rp 1.5 Trillion of Net Cash Position Total Debt and Gearing Ratio Cash & Net Cash Balance 450 7.9% 9.0% 2,291 400 8.0% 2,151 1,902 1,877 1,860 1,920 350 7.0% 5.8% 1,655 300 6.0% 1,562 1,505 250 5.0% 1,222 200 415 4.0% 2.9% 150 340 2.3% 3.0% 100 205 2.0% 50 0.5% 141 1.0% 25 0
Slide 35: Corporate Actions & Outlook 2013
SECTION 5 Corporate Actions & Outlook 2013 Nutrition for performance
Slide 36: Corporate Actions
Corporate Actions Dividend Payment for Fiscal Year 2012 Historical Dividends Kalbe has obtained the approval of the AGMS 20.0 60% 80% on May 20, 2013 to pay dividend of Rp 891 bn, 51% 51% 15.0 60% or equivalent to Rp 19 per share. This reflects a 26% 10.0 17% 19.0 19.0 40% payout ratio of 51% for fi
Slide 37: Brands Acknowledgement
Brands Acknowledgement Strong market acceptance and company reputation 37
Slide 38: Outlook 2013
Outlook 2013 Earnings Guidance 2013 1. Year-on-year Sales Growth 15% - 18% 2. Operating Profit Margin 16.0% -17.0% 3. Earnings per Share growth of 15% - 18% 4. Dividend payout ratio minimum 50% • Capex Rp 1 – 1.5 Tn for production capacity and distribution network expansion. • Cancellation of Treasu
Slide 39: Appendix: Financial Information YTD June 2013
SECTION 6 Appendix Financial Information YTD June 30, 2013 (Unaudited) Nutrition for performance
Slide 40: Unaudited Financial Statement YTD 06 2013
Unaudited Financial Statement YTD 06 2013 Consolidated Balance Sheets 31 December 2012 30 June 2013 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,859,662,706,073 1,920,097,554,408 3.2% Trade Receivables 1,805,234,960,760 2,060,048,554,788 14.1% Other Receivables 13
Slide 41: Unaudited Financial Statement YTD 06 2013
Unaudited Financial Statement YTD 06 2013 Consolidated Balance Sheets 31 December 2012 30 June 2013 (Audited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Bank Loans 204,252,407,762 414,505,353,821 102.9% Trade Payables 808,864,741,533 1,103,271,421,911 36.4% Other Payables 291,008,450,355 3
Slide 42: Unaudited Financial Statement YTD 06 2013
Unaudited Financial Statement YTD 06 2013 Consolidated Balance Sheets 30 June 2012 30 June 2013 (Unaudited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 2,098,746,986,435 1,920,097,554,408 -8.5% Trade Receivables 1,585,988,331,748 2,060,048,554,788 29.9% Other Receivables 123
Slide 43: Unaudited Financial Statement YTD 06 2013
Unaudited Financial Statement YTD 06 2013 Consolidated Balance Sheets 30 June 2012 30 June 2013 (Unaudited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Bank Loans 64,038,983,989 414,505,353,821 547.3% Trade Payables 868,710,907,998 1,103,271,421,911 27.0% Other Payables 202,439,971,482 342,
Slide 44: Consolidated Statements of Income
Unaudited Financial Statement YTD 06 2013 Consolidated Statements of Income 30 June 2012 30 June 2013 (Unaudited) (Unaudited) % Change NET SALES 6,243,946,899,934 7,421,128,221,518 18.9% COST OF GOODS SOLD 3,180,797,227,933 3,798,429,595,868 19.4% % to NS 50.9% 51.2% 0.2% GROSS PROFIT 3,063,149,672,
Slide 45: Consolidated Statements of Income
Unaudited Financial Statement YTD 06 2013 Consolidated Statements of Income * adjusted, after stock split 45
Slide 46: Consolidated Statement of Cash Flows
Unaudited Financial Statement YTD 06 2013 Consolidated Statement of Cash Flows 30 June 2012 30 June 2013 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 6,789,208,920,225 7,878,884,252,060 16.1% Cash paid to suppliers and employees (4,604,650,343,75
Slide 47: Consolidated Statement of Cash Flows
Unaudited Financial Statement YTD 06 2013 Consolidated Statement of Cash Flows 30 June 2012 30 June 2013 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans 115,654,125,546 561,157,433,026 385.2% Receipts of capital contributions from Subsidiaries' non-cont
Slide 48: 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] [email protected] [email protected] Website : www.kalbe.co.id 48