PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — H1 2014 Earnings Presentation
49 slides from PT Kalbe Farma Tbk's earnings presentation, July 2014
Slide 1: Company Update
Refreshing… Healthy… It’s the real thing! Company Update Unaudited YTD June 2014 July 2014
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 2014 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 Strategies and Outlook 2014 35 Appendix 40 3
Slide 4: Section 1: Corporate Overview
SECTION 1 Corporate Overview Refreshing… Healthy… It’s the real thing!
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 2010: 2012: Disposed of Kageo Igar Jaya ♦ Generic production 1981: 1995: Established a joint ventur
Slide 7: Section 2: Market Overview
SECTION 2 Market Overview Refreshing… Healthy… It’s the real thing!
Slide 8: Indonesia's Health Spending Trends
Indonesia’s Health Spending Trends • Total expenditure on health averaged 2.1% of Healthcare Expenditure/GDP 2010 GDP over the 11 year period 1999-2009. 4.8% 5.00% 1 4.50% 4.1% 3.8% 1 • 4.00% 3.5% BPJS Health program has commenced on 3.50% 3.3% 0 3.00% January 2014 and with a target to cover 40% 2.5
Slide 9: Pharmaceuticals Market Breakdown
Pharmaceuticals Market Breakdown Kalbe – No. 1 in the Pharma Industry Kalbe continues to lead in the highly fragmented pharmaceuticals industry with over 200 players Pharma Market Breakdown Market Share Kalbe 12% a 6% OTC b 5% 41% c 5% d 4% Others 68% Branded & Ethicals Licensed Pharma Industry (Pre
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: Section 3: Business Overview
SECTION 3 Business Overview Refreshing… Healthy… It’s the real thing!
Slide 12: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Consistent Top Line Growth +12.6% • No. 1 player in Indonesian Prescription Pharma Market. 2,126 • The largest medical representatives team in Indonesia with 1,887 more than 2,350 personnel. • Comprehensive product offerings for all income groups. • Among three
Slide 13: Prescription Pharmaceuticals Division: Growth Drivers
Prescription Pharmaceuticals Division Growth Drivers Penetrating further in the unbranded Strengthening presence in generics market specialty products • Selection of focused categories to achieve scale • Completion of Kalbe’s first oncology factory • Utilization of dedicated unbranded generic plant
Slide 14: Consumer Health Division
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe’s brands Therapeutic Class Kalbe’s Products Market Share 2013 Antacid Promag, Waisan 75.2% Anti Diarrhea Neo Entrostop 44.8% Cough Remedies Komix, Woods, Mextril, Mixadin 33.9% Cold Remedies Mixagrip Reg,
Slide 15: Consumer Health Division: Net Sales Performance
Consumer Health Division Strong Net Sales Performance +18.8% • No. 1 Player in OTC market and No. 2 in 1,419 Energy Drink category. 1,194 • GPM was stable at the level of 53.7% in YTD 06 2014 compared to 53.6% in YTD 06 2013. 30 Jun 2013 30 Jun 2014 (Unaudited) (Unaudited) OTC Energy Drink YTD 12 20
Slide 16: Consumer Health Division: Innovative New Products
Consumer Health Division Innovative New Products Hydro Coco An isotonic drink made of real coconut water. Original Love Juice Fresh bottled fruit juice made of quality fruits available in pomegranate, orange, guava, apple, and soursop flavors Promag Suspension Liquid antacid in sachet Nitros Concent
Slide 17: Nutritionals Division
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) 5.2% 11.4% 17,615 183,944 15,808 174,855 FY 2012 FY 2013 FY 2012 FY 2013 Source : AC Nielsen, YTD 12 2013 18
Slide 19: Nutritionals Division: Net Sales Performance
Nutritionals Division Strong Net Sales Performance +22.1% • Strong brand awareness of existing major 2,148 products 1,759 Kalbe’s Products Market Share 2013 Diabetasol 88.0% Milna 65.7% 30 Jun 2013 30 Jun 2014 (Unaudited) (Unaudited) Prenagen 57.0% Morinaga Chil Mil 8.1% Morinaga BMT 10.4% Powdered
Slide 20: Nutritionals Division: Launching of New Products
Nutritionals Division Launching of New Products Diva Health drink with collagen and antioxidant for skin care Nutrive Benecol Smoothie with special ingredient to lower cholesterol Fitbar A healthy snack bar with low calories, zero cholesterol and zero trans fat. Zee Powdered milk for kids and tweens
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 Reward
Slide 22: Distribution & Logistics Division
Distribution & Logistics Division The Most Extensive Distribution Network RDC Branches Cities 2 69 51 22
Slide 23: Distribution & Logistics: Net Sales Performance
Distribution & Logistics Division Net Sales Performance on Consolidated Basis +4.1% • Distribution & Logistics Division is run under PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly 2,581 2,687 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 : 75 Mitrasana Clinics Medical Devices is an area of potential • Developing Mitrasana Clinics as a growth, especially in the implementation one-stop service with 4-in-1 of National Healthcare Insurance concept, i
Slide 26: Strengthening Distribution Network
Distribution & Logistics Division Strengthening Distribution Network • Exploring potential new 3rd party principals selectively • Continuing to expand distribution infrastructure 1. Expand into new territories in Indonesia 2. Upgrade existing branch facilities to improve service quality 3. Establish
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 2,350 medical • Approximately 1,000 • Over 1,000 marketing marketing personnel represe
Slide 28: Manufacturing Infrastructure
Manufacturing Infrastructure Operates 10 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 56,746 Astellas (tablet, capsule, cream, l
Slide 29: Section 4: Financial Overview
SECTION 4 Financial Overview Refreshing… Healthy… It’s the real thing!
Slide 30: Consolidated Sales
Consolidated Sales Strong Top Line Growth of Internal Kalbe Products Net Sales (in Rp Bn) 12.9% 30 Jun 2013 30 Jun 2014 8,380 (Unaudited) (Unaudited) 7,421 12.6% 4.1% 22.1% 18.8% 2,581 2,687 1,887 2,126 2,148 1,759 1,194 1,419 Prescription Consumer Health Nutritionals Distribution & Consolidation Ph
Slide 31: Consolidated Operating Performance
Consolidated Operating Performance Stable Margin Gross Profit Margin Operating Expenses to Net Sales Ratios 0.8% 0.9% 0.8% 48.0% 48.8% 4.8% 4.7% 4.7% 47.9% Selling & Marketing General & 31 Dec 2013 30 Jun 2013 30 Jun 2014 26.4% 26.9% 26.6% Administrative (Audited) (Unaudited) (Unaudited) Research &
Slide 32: Consolidated Net Earnings
Consolidated Net Earnings Sustainable Earnings Growth Income Before Tax Net Income (in Rp bn) (in Rp bn) +8.0% +7.7% 1,325 1,226 993 922 30 Jun 2013 30 Jun 2014 30 Jun 2013 30 Jun 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) • Income before tax margin declined from 16.5% in YTD • Net income
Slide 33: Working Capital Management
Working Capital Management Improving Days of Inventory Days of inventory remain No. of days high in anticipation of 158 Ramadhan festive season 129 131 131 120 142 108 114 131 132 122 Net Operating Cycle has 110 115 107 been decreased by 27 days from 158 days in 2008 to 131 50 50 days in March 2014
Slide 34: Solid Financial Position
Solid Financial Position Rp 1.33 Trillion of Net Cash Position Total Debt and Gearing Ratio Cash & Net Cash Balance 600 15.0% 2,291 2,151 Total Debt in Rp Billion 1,929 1,902 1,877 1,860 500 Gearing Ratio 1,562 1,655 400 7.9% 7.2% 7.2% 10.0% 1,426 1,222 1,330 300 843 200 2.3% 2.9% 5.0% 0.5% 100 340
Slide 35: Section 5: Strategies & Outlook 2014
SECTION 5 Strategies & Outlook 2014 Refreshing… Healthy… It’s the real thing!
Slide 36: Kalbe Business Strategies
KALBE Business Strategies Improve marketing & Strengthen business Go Global - deeper sales effectiveness portfolio through ASEAN penetration, product innovation & more product M&A offering Local penetration, Enhance human expand distribution capital development coverage 36
Slide 37: Corporate Actions
Corporate Actions Dividend Payment for Fiscal Year 2013 Historical Dividends Kalbe has obtained the approval of the AGMS 60% 20.0 80% on May 14, 2014 to pay dividend of Rp 797 bn, 51% 51% 15.0 42% 60% or equivalent to Rp 17 per share. This reflects a 26% 10.0 17% 19.0 19.0 40% payout ratio of 42% fo
Slide 38: Corporate Social Responsibility
Corporate Social Responsibility Looking after all our stakeholders Kalbe Junior Science Fair 2013 Environmental Sustainability Consumer Protection ISO 14001:2004 Certified Environmental Management System Kalbe Care Dedicated Customer Care Team More than 84,000 visitors Education Health Environment I
Slide 39: Outlook 2014
Outlook 2014 Revised Earnings Guidance 2014 Initial Outlook Revised Outlook 1. Year-on-year Sales Growth 14% - 16% 11% - 13% * 2. Operating Profit Margin 16% - 17% 16% - 17% 3. Earnings per Share Growth 15% - 17% ** 11% - 13% ** 4. Dividend Payout Ratio 42% 42% * Mostly derived from slower growth of
Slide 40: Appendix: Financial Information
SECTION 6 Appendix Financial Information YTD June 30, 2014 Refreshing… (Unaudited) Healthy… It’s the real thing!
Slide 41: Unaudited Financial Statement YTD 06 2014
Unaudited Financial Statement YTD 06 2014 Consolidated Balance Sheets 31 December 2013 30 June 2014 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,426,460,966,674 1,928,908,852,833 35.2% Trade Receivables, Net 2,145,218,904,462 2,317,635,088,210 8.0% Other Receivabl
Slide 42: Unaudited Financial Statement YTD 06 2014
Unaudited Financial Statement YTD 06 2014 Consolidated Balance Sheets 31 December 2013 30 June 2014 % Change (Audited) (Unaudited) LIABILITIES CURRENT LIABILITIES Bank Loans 583,823,955,413 599,336,078,656 2.7% Trade Payables 1,151,654,579,697 1,191,076,919,184 3.4% Other Payables 379,156,683,712 37
Slide 43: Unaudited Financial Statement YTD 06 2014
Unaudited Financial Statement YTD 06 2014 Consolidated Balance Sheets 30 June 2013 30 June 2014 (Unaudited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,920,097,554,408 1,928,908,852,833 0.5% Trade Receivables, Net 2,060,048,554,788 2,317,635,088,210 12.5% Other Receivables
Slide 44: Unaudited Financial Statement YTD 06 2014
Unaudited Financial Statement YTD 06 2014 Consolidated Balance Sheets 30 June 2013 30 June 2014 (Unaudited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Bank Loans 414,505,353,821 599,336,078,656 44.6% Trade Payables 1,103,271,421,911 1,191,076,919,184 8.0% Other Payables 342,251,253,017 375
Slide 45: Consolidated Statement of Income
Unaudited Financial Statement YTD 06 2014 Consolidated Statement of Income 30 June 2013 30 June 2014 (Unaudited) (Unaudited) % Change NET SALES 7,421,128,221,518 8,379,751,907,130 12.9% COST OF GOODS SOLD 3,798,429,595,868 4,367,381,527,321 15.0% % to NS 51.2% 52.1% 0.9% GROSS PROFIT 3,622,698,625,6
Slide 46: Consolidated Statement of Income
Unaudited Financial Statement YTD 06 2014 Consolidated Statement of Income 30 June 2013 30 June 2014 (Unaudited) (Unaudited) % Change INCOME FOR THE PERIOD 948,042,228,485 1,019,093,783,870 7.5% % to NS 12.8% 12.2% -0.6% OTHER COMPREHENSIVE INCOME (EXPENSES) 2,289,328,006 (3,056,881,413) -233.5% COM
Slide 47: Consolidated Statement of Cash Flows
Unaudited Financial Statement YTD 06 2014 Consolidated Statement of Cash Flows 30 June 2013 30 June 2014 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 7,878,884,252,060 8,990,931,852,585 14.1% Cash Paid to Suppliers and Employees (5,013,911,285,11
Slide 48: Consolidated Statement of Cash Flows
Unaudited Financial Statement YTD 06 2014 Consolidated Statement of Cash Flows 30 June 2013 30 June 2014 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Bank Loans 561,157,433,026 1,325,643,373,776 136.2% Receipts of Capital Contributions from Subsidiaries' Non-co
Slide 49: 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 49