PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — H1 2009 Earnings Presentation
66 slides from PT Kalbe Farma Tbk's earnings presentation, September 2009
Slide 1: Company Presentation September 2009
Company Presentation September 2009 Natural Taste, Healthier Life September 2009
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 June 2009 unaudited results of the Company. The information con
Slide 3: Table of Contents
Table of Contents SECTION 1 Corporate Overview 4 SECTION 2 Macro Economic Overview 8 SECTION 3 Business Overview 16 SECTION 4 Operational Overview 39 SECTION 5 Financial Overview 43 SECTION 6 Outlook 2009-2010 53 SECTION 7 Conclusion 57 SECTION 8 Appendix 60 3 September 2009
Slide 4: Section 1 Corporate Overview
SECTION 1 Corporate Overview September 20094
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 Share
Market Share Prescription Nutritionals Pharmaceuticals Kalbe Group 13% Dexa Others Medica Group 20% Nestle 7% Fonterra 30% 6% Sanbe 7% Others Pfizer Kalbe Nutritionals 65% Group 8% 4% Sari Husada Sanofi Aventis Nutricia 15% Group 10% FFI 4% 11% Total Market in Value= Rp 9.2 trillion Total Market in
Slide 8: Section 2 Macro Economic Overview
SECTION 2 Macro Economic Overview September 20098
Slide 9: Indonesia Overview
Indonesia Overview Statistics: • Total population: 228,864,000 • Gross national income per capita (PPP international $): 3,310 • Probability of dying between 15 and 60 years m/f (per 1 000 population): 231/192 • Total expenditure on health as % of GDP (2006): 2.2 With population of 228 million and g
Slide 10: Indonesia Outlook
Indonesia Outlook The outlook for growth continues to improve • GDP growth was 4.2% YoY in H1 2009, 3rd highest in the G20. • Controlled inflation and it is expected that inflation to be below 4% in December 2009. 10 September 2009
Slide 11: Growing Pharmaceutical Market
Growing Pharmaceutical Market Total Market Trend, 2005-2008 By company type Market Share Foreign Local 71.3 73.0 70.3 70.7 71.1 28.7 27.0 29.7 29.3 28.9 2004 2005 2006 2007 2008 Total Market 20,750 23,582 23,463 25,828 30,137 Total Growth (%) 13.7 (0.5) 10.1 16.7 Foreign 5,956 6,363 6,960 7,560 8,70
Slide 12: Pharmaceutical Market Breakdown
Pharmaceutical Market Breakdown Ethical Market Dominated the Pharmaceutical Industry Total Market Trend, 2005-2008 Market Share Ethical OTC 43.3 38.0 40.2 42.4 39.0 62.0 59.8 57.6 56.7 61.0 2004 2005 2006 2007 2008 Total Market 20,750 23,582 23,463 25,828 30,137 Total Growth (%) 13.7 (0.5) 10.1 16.7
Slide 13: 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 14: Total Market Trend, 2005 – 2009 (f)
Total Market Trend, 2005 – 2009 (f) 14 September 2009
Slide 15: 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 16: Section 3 Business Overview
SECTION 3 Business Overview September 200916
Slide 17: Sales Growth and Margin Improvement
Sales Growth and Margin Improvement Strong Sales growth with improving Gross Profit Margin 6,000 49.1% 50.0% 49.0% 5,000 47.8% • Consolidated sales grew by 12.6% to 48.0% 47.0% Rp 4,217 Bn in H1 2009. 4,000 46.0% 3,000 12.6% 45.0% • Gross Profit Margin improved from 44.0% 2,000 3,746 4,217 43.0% 47.
Slide 18: Sales Contribution
Sales Contribution H1 2008 H1 2009 (Unaudited) (Unaudited) Prescription Distribution & Prescription Distribution & Pharmaceuticals Packaging Pharmaceuticals Packaging 26% 33% 24% 35% Consumer Nutritionals Consumer Nutritionals Health Health 22% 20% 19% 21% 18 September 2009
Slide 19: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Sales Contribution Number of Key Products H1 2009 (Unaudited) Products by Product Categories • General Anti-infectives • Hospital Solutions Licensed • Oncology Products 82 • Blood and Blood Forming Organs Licensed • Musculo-Skeletal System Products • Alimentary
Slide 20: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Consistent double digit sales growth Prescription Pharmaceuticals Net Sales in Rp Billion 1,100 70.0% • Prescription Pharmaceuticals net sales 1,050 65.3% grew by 19.5% to Rp 1,079 Bn in H1 65.0% 2009. 1,000 60.0% 19.5% • Gross Profit Margin improved from 950 60
Slide 21: Prescription Pharmaceuticals Division
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 Medica Group 5% Sanbe 4% Group G
Slide 22: Prescription Pharmaceuticals Division: Enhanced Business Portfolio
Prescription Pharmaceuticals Division Enhanced Business Portfolio • Kalbe launched 13 brands for Smith&Nephew products in wound management category which focus on acute and chronic ulcers. • Kalbe also strengthened its position in Prescription Pharmaceutical market by establishing Kalbe Vision in 20
Slide 23: Prescription Pharmaceuticals Division: Enhanced Business Portfolio
Prescription Pharmaceuticals Division Enhanced Business Portfolio • Innogene Kalbiotech Pte Ltd, a subsidiary of Kalbe based in Singapore, spearheads the innovation and globalization for Kalbe with research-based products. • Currently Innogene holds the licensing and marketing rights for Nimotuzumab
Slide 24: 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 25: Consumer Health Division
Consumer Health Division Consumer Health Division consists of OTC Pharmaceuticals and Energy Drink Consumer Health Net Sales in Rp Billion • Consumer Health net sales was up by 3.7% 800 60.0% to Rp 797 Bn in H1 2009 from Rp 769 Bn in 795 57.3% H1 2008. 790 785 53.6% 55.0% • Consumer Health gross pro
Slide 26: Consumer Health Division
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) Pharos Soho Group Group 6% Sanbe Others Tempo 9% 4% 10% Group Kalbe Konimex Extra Joss 9% Group 4% 34% GlSK 15% 3% K
Slide 27: Consumer Health Division: Enhanced Business Portfolio
Consumer Health Division Enhanced Business Portfolio • Launched new products with “healthier” concept : – Ready to drink • Fatigon Hydro+, an isotonic drink made from natural coconut water in March 2008 – Powder form • E-Juss, an energy drink with grape extract juices in May 2009 27 September 2009
Slide 28: 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 28 Septemb
Slide 29: 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 51,653 4,563 50,985 4,189 -3.05% +1.31% +8.93% H1 2008 H1 2009 H1 2008 H1 2009 H1 08 H1 09 H1 2008 H1 2009 Source : AC Ni
Slide 30: Nutritionals Division
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 31: Nutritionals Division
Nutritionals Division Nutritionals Net Sales in Rp Billion 50.0% 890 48.0% • Nutritionals division net sales were up by 870 4.5% to Rp 867 Bn in H1 2009 from Rp 829 Bn in H1 2008. 850 45.0% 830 4.5% 45.0% • Nutritionals gross profit margin was 810 867 improved from 45.0% in H1 2008 to 790 829 48.0%
Slide 32: Nutritionals Division
Nutritionals Division • Kalbe Nutritionals Division has continued to improve its understanding towards the needs and aspirations of its consumers. • It has established a telemarketing Customer Relationship Management (CRM) Team to call and visit targeted mothers. And recently, it has set up Nutritio
Slide 33: 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 33 September 2009
Slide 34: Distribution & Packaging Division
Distribution & Packaging Division Sales Composition Increasing 3rd party contribution to division’s total sales Distribution & Packaging Distribution & Packaging Sales Composition in H1 2008(Unaudited) Sales Composition in H1 2009(Unaudited) 3rd Party 3rd Party 44% 47% Kalbe Kalbe 56% 53% Distributi
Slide 35: Distribution & Packaging Division
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 35 September 2009
Slide 36: Distribution & Packaging Division
Distribution & Packaging Division Consistent double digit sales growth Distribution & Packaging Net Sales in Rp Billion 1,500 40.0% 1,450 • Net Sales figures represent the net 1,400 35.4% sales of 3rd party principals. 34.9% 1,350 35.0% 1,300 1,250 18.4% • Distribution & Packaging net sales 1,474 we
Slide 37: Distribution & Packaging Division: 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 38: Distribution & Packaging Division
Distribution & Packaging Division Kalbe has recently opened its new Regional Distribution Center located in Pulogadung, Jakarta Land area 20,000 sqm Building area 13,000 sqm Capacity 16,700 pallets Super flat floor for safety and cleanness 38 September 2009
Slide 39: Section 4 Operational Overview
SECTION 4 Operational Overview September 200939
Slide 40: 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 • Over 2,200 marketing •Over 1,000 marketing • Over 2,000 sal
Slide 41: Manufacturing Infrastructure
Manufacturing Infrastructure Kalbe operates 12 GMP facilities that are compliant with international standards Products Bldg Facility Manufactured Area (m2) Production Lines Licensees Certification 9 lines of Non Beta Lactam products ISO9001, ISO14001, Kalbe Farma 448 42,684 Astellas (tablet, capsule
Slide 42: Manufacturing Infrastructure
Manufacturing Infrastructure Kalbe’s factory in Nigeria has been officially inaugurated in May 2009 and has started its production since then to support Kalbe’s international business in the Sub Saharan region. 42 September 2009
Slide 43: Section 5 Financial Overview
SECTION 5 Financial Overview September 200943
Slide 44: Strong Financial Performance
Strong Financial Performance Improved Gross Profit Margin Gross Profit Margin 60.0% 1.3% • Consolidated Gross Profit Margin has 49.1% 50.0% 47.8% increased by 1.3% from 47.8% in H1 2008 to 49.1% in H1 2009. 40.0% 30.0% • Continued downward trend of oil price has driven down the prices of 20.0% pharm
Slide 45: Price Trend of Major Raw Materials
Price Trend of Major Raw Materials Current prices for major raw materials have come down compared to those of last year Amoxycillin Trihydrat Compacted Paracetamol Skim Milk Powder 40.00 5.50 5.00 4.00 5.00 3.00 35.00 2.00 4.50 ∆ -3.2% ∆ -13.2% 1.00 ∆ -50.4% 30.00 4.00 - 2008 2008 Jan Jan Feb Feb Ma
Slide 46: Strong Financial Performance
Strong Financial Performance Controlled Operating Expenses Operating Expenses to Net Sales Ratios • Total operating expenses to 33.0% 32.5% net sales ratio was down from 5.4% 5.7% 0.7% 33.0% in H1 2008 to 32.5% in 0.7% H1 2009. 26.8% 26.1% • Seling expenses to net sales ratio was down by 0.7% to 26.
Slide 47: Strong Financial Performance
Strong Financial Performance Improved Operating Profit Margin Operating Profit Margin 800 16.6% 17.0% 700 16.0% • Operating Profit increased to 600 14.8% Rp 698 Billion; its margin was 500 400 26.2% 15.0% up 1.8%, to 16.6% in H1 2009. 698 14.0% 300 553 200 13.0% 100 . - 12.0% H1 2008 H1 2009 (Unaudi
Slide 48: Strong Financial Performance
Strong Financial Performance Improved Net Income Margin Net Income Margin 400 9.5% 9.5% • Net Income increased by 380 15.7%, from Rp 345 Bn to Rp 399 Bn in H1 2009, with Net 360 9.2% 15.7% Income Margin rising from 9.2% 399 340 in H1 2008 to 9.5% in H1 2009. 320 345 300 9.0% H1 2008 H1 2009 (Unaudit
Slide 49: Earning Per Share Growth
Earning Per Share Growth 2 years EPS - CAGR (2006 – 2008) is 3.7% 4.5% 2.9% 72 800 67 70 80 430 20.6% 41 45 700 34 40 400 600 60 35 370 30 500 25 400 4.3% 0.1% 40 340 15.7% 707 20 677 706 399 300 310 15 345 200 20 10 280 100 5 250 0 - 0 H1 2008 H1 2009 FY 2006 FY 2007 FY 2008 (Unaudited) (Unaudited)
Slide 50: Improved Working Capital Management
Improved Working Capital Management H1 2008 H1 2009 • As a result of the (Unaudited) (Unaudited) ∆ Change implementation of end to end Days of Account Receivable 46 46 - Days of Inventory 141 136 5 supply chain, Kalbe’s days of Days of Account Payable 47 45 2 inventory has been reduced Net Operating
Slide 51: Strong Cash Generation
Strong Cash Generation EBITDA and EBITDA Margin • Stronger cash generation as 900 20.0% 800 18.7% reflected in Kalbe’s H1 2009 700 17.4% EBITDA. 600 • As per H1 2009, Kalbe’s EBITDA 500 21.0% 15.0% is Rp 789 Bn or up by 21%. 400 789 300 652 200 100 - 10.0% H1 2008 H1 2009 (Unaudited) (Unaudited) EBI
Slide 52: Solid Financial Position
Solid Financial Position Total Debt &Gearing Ratio Cash & Net Cash Balance 43.7% 45.0% 2,500 1,000 40.0% 1,974 35.0% 2,000 800 30.0% 25.0% 1,500 1,322 1,369 600 1,261 1,020 1,116 15.5% 20.0% 918 1,001 12.6% 1,000 883 917 400 15.0% 805 11.2% 683 9.3% 9.20% 606 10.0% 200 405 500 379 311 319 5.0% 0 0.0
Slide 53: Section 6 Outlook 2009 - 2010
SECTION 6 Outlook 2009 - 2010 September 200953
Slide 54: Outlook 2009-2010: Bonds, Dividend and Share Buy Back
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 55: Outlook 2009-2010: Tender Offer in 2009
Outlook 2009-2010 Tender Offer in 2009 • Kalbe conducted a Tender Offer towards 31.81% shares of PT Enseval Putera Megatrading Tbk (“Enseval”). – Offer Price Rp 870,- per share reflects Rp 90,- premium per share toward the highest trading price during the last 90 days prior to the announcement of th
Slide 56: Outlook 2009-2010: 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 57: Section 7 Conclusion
SECTION 7 Conclusion September 200957
Slide 58: Conclusion
Conclusion Largest Publicly-Listed • More than 40 year old Pharmaceuticals Company with long track record of Pharmaceuticals profitable growth. • After the merger with PT Dankos Laboratories Tbk and PT Enseval effective on Company in Southeast December 2005, Kalbe has become the largest Publicly-Lis
Slide 59: Conclusion
Conclusion Highly Experienced • Average senior management tenure of over 20 years at Kalbe, providing strategic continuity and depth of senior management bench. Senior Management • Average industry experience of over 20 years developing, manufacturing, marketing Team and selling consumer health and
Slide 60: Section 8 Appendix Financial Information
SECTION 8 Appendix Financial Information H1 2009 (Unaudited) September 200960
Slide 61: Consolidated Balance Sheets
Consolidated Balance Sheets 30 June 2008 (Unaudited) 30 June 2009 (Unaudited) % Change ASSETS CURRENT ASSETS Cash and cash equivalents 1,001,369,439,000 1,974,275,116,531 97.2% Short term investments 181,697,464,722 33,803,068,876 -81.4% Trade Receivables 947,656,253,014 1,078,243,842,741 13.8% Othe
Slide 62: Consolidated Balance Sheets
Consolidated Balance Sheets 30 June 2008 (Unaudited) 30 June 2009 (Unaudited) % Change LIABILITIES CURENT LIABILITIES Short-term Loans 56,854,272,471 600,610,032,426 956.4% Trade Payable 515,692,805,241 535,294,069,403 3.8% Other Payable 61,100,440,874 77,846,282,441 27.4% Taxes Payable 369,051,694,
Slide 63: Consolidated Statements of Income
Consolidated Statements of Income Period Ended 30 June 2008 Period Ended 30 June 2009 (Unaudited) (Unaudited) % Change NET SALES 3,746,324,192,658 4,217,477,571,977 12.58% COGS 1,956,185,451,178 2,147,467,560,903 9.78% % to NS 52.2% 50.9% -1.30% GROSS PROFIT 1,790,138,741,480 2,070,010,011,074 15.63
Slide 64: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Period Ended 30 June 2008 Period Ended 30 June 2009 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 4,025,527,731,372 4,494,105,314,481 11.6% Cash paid to suppliers and employees (2,631,810,558,193) (2,829,187,5
Slide 65: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Period Ended 30 June 2008 Period Ended 30 June 2009 (Unaudited) (Unaudited) % Change CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales of short-term investments and time deposits 253,579,595,247 390,000,605,519 53.8% Interest income received 33,756,680,63
Slide 66: 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] Website : www.kalbe.co.id September 2009