PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — Q3 2012 Earnings Presentation
57 slides from PT Kalbe Farma Tbk's earnings presentation, October 2012
Slide 1: Company Update: Unaudited YTD September 2012 Results
Company Update Unaudited YTD September 2012 Results October 2012 Healthy, Tasty
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 September 2012 unaudited results of the Company. The information co
Slide 3: Table of Contents
Table of Contents SECTION 1 Corporate Overview 4 SECTION 2 Market Overview 8 SECTION 3 Business Overview 12 SECTION 4 Financial Overview 38 SECTION 5 Corporate Actions & Outlook in 2012 44 SECTION 6 Appendix 48 3
Slide 4: Section 1: Corporate Overview
SECTION 1 Corporate Overview 4
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: 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 • In Q4 2009, the new Healthcare Law has been 4.50% 4.1% 3.8% 1 4.00% 3.5% approved and provides guideline for 3.50% 3.3% 0 3.00% Gove
Slide 8: Section 2: Market Overview
SECTION 2 Market Overview 8
Slide 9: Pharmaceuticals Market Breakdown
Pharmaceuticals Market Breakdown Market Splits Remain Stable Total Market Trend 2007 – F2012 OTC Ethical/Prescription 56.4 55.6 55.9 58.1 58.1 57.0 43.6 44.4 44.1 41.9 41.9 43.0 2007 2008 2009 2010 2011 F2012 Ethical / Prescription (Rp Bn) 14,889 17,178 20,220 22,785 25,046 27,526 Ethical / Prescrip
Slide 10: Indonesian Pharmaceuticals Market
Indonesian Pharmaceuticals Market Highly Fragmented Industry with more than 200 Pharmaceutical Players Total Market (ITMA) Pharmacy (IPA) Hospital (IHPA) YTD 12 2011 YTD 12 2011 YTD 12 2011 b c b b c a c d a d a 5% 5% d e KALBE 6% KALBE 7% 5% e KALBE 7% 5% 4% e 7% 4% 5% 5% 4% f GROUP 4% f GROUP 4% f
Slide 11: Recent Indonesian Pharmaceuticals Regulatory
Recent Indonesian Pharmaceuticals Regulatory Price Caps on Key Generic Drugs Ministry of Health Decree No. 092 /Menkes/SK/II/2012 issued on 23 February 2012 • Replaces the previous Ministry of Health Decree No. 632 /Menkes/SK/III/2011. • The Indonesian Ministry of Health has set selling price and re
Slide 12: Section 3: Business Overview
SECTION 3 Business Overview
Slide 13: Prescription Pharmaceuticals Division: Net Sales Performance
Prescription Pharmaceuticals Division Net Sales Performance • Net sales grew by 15.4% to Rp 2,412 Bn in YTD 09 2012. +15.4% • The largest medical representatives team in Indonesia with more than 2,300 2,412 personnel. 2,090 • Unique and innovative marketing strategy. • The Division has launched 12 n
Slide 14: Prescription Pharmaceuticals: Product Range
Prescription Pharmaceuticals Division Comprehensive Product Range Targeted to All Income Groups Sales Contribution By Number of Product Categories Products Therapeutic Class YTD 09 2012 • General Anti-Infectives • Hospital Solutions Licensed • Oncology Licensed 89 • Blood and Blood Forming Organs Pr
Slide 15: Prescription Pharmaceuticals Market Share
Prescription Pharmaceuticals Division Leading in Indonesia Prescription Pharmaceuticals Market Share Total Market (ITMA) Pharmacy (IPA) Hospital (IHPA) YTD 12 2011 YTD 12 2011 YTD 12 2011 c KALBE KALBE a b c d KALBE b d b c d e 6% e 7% e GROUP a GROUP 8% 4% 4% 4% GROUP 7% 5% 8% 5% 4% 4% 5% f 10% 8%
Slide 16: New Production Facilities
Prescription Pharmaceuticals Division New Production Facilities • New production facility in Cikarang: • Dedicated for generic drugs’ tablet production line. • Certification from local FDA has been obtained in December 2011. • Inaugurated by Minister of Health in February 2012. • New production faci
Slide 17: Consumer Health: Strong Brand Equity
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe’s brands YTD December 2011 Therapeutic Class Kalbe’s Products Market Share by Volume Antacid Promag, Waisan 77.4%* Anti Diarrhea Neo Entrostop 44.8%** Cough Remedies Komix, Woods, Mextril, Mixadin 39.1% C
Slide 18: Consumer Health Division: Net Sales Performance
Consumer Health Division Net Sales Performance • Consumer Health net sales increased by 9.5% to Rp 1,609 Bn in YTD 09 +9.5% 2012, from Rp 1,469 Bn in YTD 09 1,609 2011. 1,469 • The increase was supported by good sales growth of OTC. • Gross profit margin decreased from 55.9% in YTD 09 2011 to 55.6%
Slide 19: Consumer Health: Leading Market Position
Consumer Health Division Leading Market Position OTC Energy Drink YTD 12 2011 YTD 12 2011 (Unit) b c d Others a 8% 8% 5% d 8% e c 6% 8% f a 4% 7% KALBE 4% 42% GROUP 13% b OTHERS 13% Extra Joss 50% 24% Total Market = Rp 18.0Tn Total Market (in volume) = 2,371Mn Source : IMS Health ITMA OTC YTD 12 201
Slide 20: Consumer Health: 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 21: 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. • Promoting ExtraJoss through direct-to-customer programs to improve awareness, conv
Slide 22: Nutritionals: Complete Range of 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 22
Slide 23: Relatively Low Milk per Capita Consumption
Nutritionals Division Relatively Low Milk per Capita Consumption Milk per Capita Consumption (kg) 40 -2.3% 35 30 25 20 1.6% 15 0.5% 10 2.7% 1.1% 1.6% 5 0 Indonesia Thailand Philippines Malaysia Vietnam South Korea 2006 2.29 13.55 1.48 7.49 2.71 35.7 2007 2.39 12.28 1.51 8.15 2.39 34.92 2008 2.5 12.9
Slide 24: Growth of Indonesian Powdered Milk Market
Nutritionals Division Growth of Indonesian Powdered Milk Market By Volume (Kg ‘000) By Value (Rp Bn) 3.9% 5.8% 169,093 14,810 162,795 13,995 FY 2010 FY 2011 FY 2010 FY 2011 Source : AC Nielsen, YTD 12 2011 24
Slide 25: Nutritionals Division: Net Sales Performance
Nutritionals Division Net Sales Performance • Nutritionals Division net sales were up +15.9% by 15.9% to Rp 2,095 Bn in YTD 09 2,095 2012 from Rp 1,808 Bn in YTD 09 1,808 2011. • Existing major products continued to gain market share. • Gross profit margin increased to 62.8% in YTD 09 2012 from 60.5
Slide 26: Gaining Market Shares Against Multinational Competitors
Nutritionals Division Gaining Market Shares Against Multinational Competitors Powder Milk Market Share YTD 12 2011 Market Share of Kalbe Nutritionals Products in its Category YTD December 2011 h i g f 3% 3% 2% Others Kalbe’s Products Market Share e 2% 3% a 6% 31% Diabetasol 79.5% d Milna 63.5% 9% Pr
Slide 27: Nutritionals: 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 28: 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 Reward
Slide 29: The Most Extensive Distribution Network
Distribution & Logistics Division The Most Extensive Distribution Network RDC Branches Cities 2 65 47 29
Slide 30: Distribution & Logistics: Net Sales Performance
Distribution & Logistics Division Net Sales Performance • Distribution & Logistics Division is run under PT Enseval Putera Megatrading Tbk (EPMT), a publicly listed company (now, 91.75% owned). 3,578 • Net sales represents the 3rd party product sales and +53.9% distribution margin of internal produc
Slide 31: Distribution Business Details on Stand Alone Basis
Distribution & Logistics Division Distribution Business Details on Stand Alone Basis Raw Materials (Figures in Rp Bn) Medical Trading & Devices others 12,000 Gross profit margin 12.0% 4% 7% 10,000 9,588 10.2% 10.0% 8,000 8.0% 3rd Party Principal 6,000 Income before tax 6.0% 23% margin Kalbe 4,000 4.
Slide 32: Medical Devices, a New Growth Driver
Distribution & Logistics Division Medical Devices, a New Growth Driver 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) Major Principals Medical
Slide 33: 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 33
Slide 34: New Retail Health Service: Mitrasana Clinic
Distribution & Logistics Division New Retail Health Service : Mitrasana Clinic • Opening of 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. • Operational excellence in several areas,
Slide 35: Strengthening Distribution Network
Distribution & Logistics Division Strengthening Distribution Network Kalbe believes that strong distribution network is a key competitive advantage, and therefore is committed to further improve capacities and facilities to achieve better product availability and working capital management. Kalbe co
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 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 38: Section 4: Financial Overview
SECTION 4 Financial Overview 38
Slide 39: Consolidated Sales: Net Sales Growth
Consolidated Sales Net Sales Growth Net Sales (in Rp Bn) 26.0% 30 Sept 2011 (Unaudited) 30 Sept 2012 (Unaudited) 9,694 7,692 53.9% 15.4% 15.9% 3,578 9.5% 2,090 2,412 1,808 2,095 2,324 1,469 1,609 Prescription Consumer Health Nutritionals Distribution & Logistics Consolidation Pharmaceuticals 39
Slide 40: Strong Financial Performance: Improved Operating Expenses Efficiency
Strong Financial Performance Improved operating expenses efficiency Gross Profit Margin Operating Expenses to Net Sales Ratios 33.6% 32.5% -1.1% - 3.1% 51.8% 0.8% 0.7% 48.7% 5.4% 4.8% Selling & Marketing General & Administrative 27.4% 27.1% Research & Development 30 Sept 2011 30 Sept 2012 30 Sept 20
Slide 41: Strong Financial Performance: Strong Earnings Growth
Strong Financial Performance Strong Earnings Growth Income Before Tax Net Income +15.5% +16.7% 1,657 1,243 1,435 1,065 30 Sept 2011 30 Sept 2012 30 Sept 2011 30 Sept 2012 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Income Before Tax in Rp Bn Net Income in Rp Bn • Income before tax margin decline
Slide 42: Working Capital Management
Working Capital Management Improved Net Operating Cycle 158 No. of days Consistent improvement in working capital management 129 120 108 116 142 122 117 110 115 Net Operating Cycle has been decreased by 42 days 50 from 158 days in 2008 to 116 43 45 44 45 days in 2012 57 46 38 35 27 End-to-end supply
Slide 43: Solid Financial Position
Solid Financial Position Rp 1.2 Trillion of Net Cash Position Total Debt and Gearing Ratio Cash & Net Cash Balance 2,291 450 11.2% 12.0% 2,151 400 1,902 10.0% 1,877 350 7.9% 1,562 300 8.0% 1,373 1,322 1,257 250 1,223 6.0% 200 405 917 340 150 4.0% 2.3% 100 1.8% 141 2.0% 50 0.5% 116 25 0 0.0% FY 2008
Slide 44: Section 5: Corporate Actions & Outlook 2012
SECTION 5 Corporate Actions & Outlook 2012 44
Slide 45: Corporate Actions in 2012
Corporate Actions in 2012 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 93.9 billion. Joint Venture to form PT Kalbe Milko Indone
Slide 46: Achievements in 2011 and 2012
Achievements in 2011 and 2012 Major Awards in 2011 and 2012 • ASEAN Business Awards 2011 – Most Admired Enterprise for Innovation category, from ASEAN • Indonesia 2nd Best Investor Relations, from Asia Money. • Best Managed Companies Award, from Finance Asia • Worldstar Award 2011-2012 in Medical an
Slide 47: Outlook 2012
Outlook 2012 Updated Earnings Guidance 2012 • Encouraging financial results in 1H-2012 • More optimist for price increase in 1H-2012 • Improving trend for newly launched products 1. Year-on-year Sales Growth 20% - 25% 2. Operating Profit Margin 16% - 16.5% 3. Earnings per Share Rp 183– Rp 190, repre
Slide 48: Section 6: Appendix Financial Information
SECTION 6 Appendix Financial Information YTD September 30, 2012 (Unaudited) 48
Slide 49: Unaudited Financial Statement YTD 09 2012: Balance Sheets
Unaudited Financial Statement YTD 09 2012 Consolidated Balance Sheets 31 December 2011 30 September 2012 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 2,291,335,810,101 1,372,678,436,980 -40.1% Short-term Investments 113,871,418,384 228,446,066,408 100.6% Trade Recei
Slide 50: Unaudited Financial Statement YTD 09 2012: Balance Sheets
Unaudited Financial Statement YTD 09 2012 Consolidated Balance Sheets 31 December 2011 30 September 2012 (Audited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Short-term Loans 140,056,547,003 115,396,721,989 -17.6% Trade Payables 850,398,382,129 904,531,831,290 6.4% Other Payables 202,423,7
Slide 51: Unaudited Financial Statement YTD 09 2012: Balance Sheets
Unaudited Financial Statement YTD 09 2012 Consolidated Balance Sheets 30 September 2011 30 September 2012 (Unaudited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,879,351,294,974 1,372,678,436,980 -27.0% Short-term Investments 109,968,137,220 228,446,066,408 107.7% Trade Re
Slide 52: Unaudited Financial Statement YTD 09 2012: Balance Sheets
Unaudited Financial Statement YTD 09 2012 Consolidated Balance Sheets 30 September 2011 30 September 2012 (Unaudited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Short-term Loans 115,655,013,503 115,396,721,989 -0.2% Trade Payables 681,252,384,322 904,531,831,290 32.8% Other Payables 130,83
Slide 53: Unaudited Financial Statement YTD 09 2012: Statements of Income
Unaudited Financial Statement YTD 09 2012 Consolidated Statements of Income 30 September 2011 30 September 2012 (Unaudited) (Unaudited) % Change NET SALES 7,691,571,832,728 9,694,014,726,295 26.0% COST OF GOODS SOLD 3,705,015,453,653 4,971,234,725,794 34.2% % to NS 48.2% 51.3% 3.1% GROSS PROFIT 3,98
Slide 54: Unaudited Financial Statement YTD 09 2012: Statements of Income
Unaudited Financial Statement YTD 09 2012 Consolidated Statements of Income 30 September 2011 30 September 2012 (Unaudited) (Unaudited) % Change INCOME FOR THE PERIOD 1,092,512,630,729 1,270,457,502,557 16.3% % to NS 14.2% 13.1% -1.1% OTHER COMPREHENSIVE INCOME (EXPENSES) 6,300,342,353 (3,795,821,51
Slide 55: Unaudited Financial Statement YTD 09 2012: Cash Flows
Unaudited Financial Statement YTD 09 2012 Consolidated Statement of Cash Flows 30 September 2011 30 September 2012 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 8,139,530,313,435 10,457,643,121,511 28.5% Cash paid to suppliers and employees (4,647
Slide 56: Unaudited Financial Statement YTD 09 2012: Cash Flows
Unaudited Financial Statement YTD 09 2012 Consolidated Statement of Cash Flows 30 September 2011 30 September 2012 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans 440,026,410,231 146,419,831,343 -66.7% Receipts of capital contributions from Subsidiaries
Slide 57: 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 57