PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — H1 2015 Earnings Presentation
50 slides from PT Kalbe Farma Tbk's earnings presentation, July 2015
Slide 1: Company Update Unaudited YTD June 2015
Company Update Unaudited YTD June 2015 July 2015 Your Daily Nutritional Solution
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 2015 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 2015 35 Appendix 40 3
Slide 4: Corporate Overview
SECTION 1 Corporate Overview Your Daily Nutritional Solution
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: Long Track Record of Sustainable Growth
Corporate Strategy 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 Disposed of Kageo Igar Jaya facility came on 1981: 1995: Established a joint v
Slide 7: Market Overview
Not all collagen is the same, it’s SECTION 2 time to choose the right one Market Overview Your Daily Nutritional Solution
Slide 8: Indonesia's Health Spending Trends
Indonesia’s Health Spending Trends • Low healthcare expenditure to GDP ratio. Healthcare Expenditure/GDP 2013 (%) • National Health Insurance (Jaminan United States 18.0% United Kingdom 9.6% Kesehatan Nasional or JKN) program has Singapore 5.8% commenced in January 2014, and covered China 5.5% more
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 13% a 6% OTC b 5% 41% c 4% 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 residents Presidential Decree No. 111 Year 2013 regarding Hea
Slide 11: Business Overview
SECTION 3 Business Overview Your Daily Nutritional Solution
Slide 12: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Positive Top Line Growth +3.6% • No. 1 player in Indonesian Prescription Pharma Market. • The largest medical representatives team in Indonesia with 2,126 2,202 more than 2,500 personnel. • Comprehensive product offerings for all income groups. • Increasing comp
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 oncology factory and • Utilization of dedicated unbranded generic plant commercial
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 2014 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: Stable Net Sales Performance
Consumer Health Division Stable Net Sales Performance +12.0% • No. 1 Player in OTC market and No. 2 in 1,419 1,589 Energy Drink category. • GPM increased from 53.7% in YTD 06 2014 to 56.2% in YTD 06 2015, mostly due to price 30 June 2014 30 June 2015 increase and product mix. (Unaudited) (Unaudited)
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 H2 – Health and Happiness Supplement Products • H2 Superba
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) 2.2% 10.4% 19,820 187,387 183,317 17,947 FY 2013 FY 2014 FY 2013 FY 2014 Source : AC Nielsen, YTD 12 2014 18
Slide 19: Nutritionals Division: Consistent Net Sales Growth
Nutritionals Division Consistent Net Sales Growth +10.8% • Strong brand awareness of existing major products 2,380 2,148 Kalbe’s Products Market Share 2014 Diabetasol 88.0% Milna 68.8% Prenagen 55.4% 30 June 2014 30 June 2015 (Unaudited) (Unaudited) Morinaga Chil Mil 9.2% SALES in Rp Bn Morinaga BMT
Slide 20: Nutritionals Division: Launching of New Products
Nutritionals Division Launching of New Products Entrasol Quick Start Cereal drink made of milk and oats with high calcium and high fiber Diva Health drink with collagen and antioxidant for skin care Nutrive Benecol Smoothie with special ingredient to lower cholesterol Zee Powdered milk for kids and
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: Most Extensive Distribution Network
Distribution & Logistics Division The Most Extensive Distribution Network RDC Branches Cities 2 70 51 22
Slide 23: Distribution & Logistics: Net Sales Performance
Distribution & Logistics Division Net Sales Performance on Consolidated Basis -5.1% • Distribution & Logistics Division is run under PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly 2,687 2,550 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 : 83 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 • > 2,000 sales & • Over 2,500 medical • Approximately 1,100 • Over 1,100 marketing marketing personnel representa
Slide 28: Manufacturing Infrastructure
Manufacturing Infrastructure Operates 9 GMP facilities complying with international standards Products Building Area Facility Production Lines Licenses Certification Manufactured (m2) 14 lines (tablet, capsule, cream, liquid oral, ISO 9001, ISO 14001, Kalbe Farma 435 91,819 Astellas injection) OHSAS
Slide 29: Financial Overview
SECTION 4 Financial Overview Your Daily Nutritional Solution
Slide 30: Consolidated Sales
Consolidated Sales Consistent Top Line Growth of Internal Kalbe Products Net Sales (in Rp Bn) 4.1% 30 June 2014 30 June 2015 8,720 8,380 (Unaudited) (Unaudited) 12.0% 10.8% -5.1% 3.6% 2,380 2,687 2,550 2,126 2,202 2,148 1,419 1,589 Prescription Consumer Health Nutritionals Distribution & Consolidati
Slide 31: Consolidated Operating Performance
Consolidated Operating Performance Stable Operating Margin Gross Profit Operating Expenses to Net Sales Ratios (in Rp bn) + 7.1% 49.3% 32.0% 33.5% 47.9% 4,298 0.9% 4,012 0.8% 4.7% 4.9% Selling & Marketing 30 June 2014 30 June 2015 General & (Unaudited) (Unaudited) 26.6% 27.7% Administrative Operatin
Slide 32: Consolidated Net Earnings
Consolidated Net Earnings Positive Earnings Growth Income Before Tax Net Income (in Rp bn) (in Rp bn) +7.0% +7.1% 15.8% 16.3% 12.2% 11.8% 1,325 1,418 1,063 993 30 June 2014 30 June 2015 30 June 2014 30 June 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) • Income before tax margin slightly incr
Slide 33: Working Capital Management
Working Capital Management Temporary Spike in Inventory 158 No. of days Temporary increase in 140 finished goods inventory 129 131 128 120 114 130 142 108 132 125 122 110 115 107 Net Operating Cycle has been decreased by 18 days 50 48 48 49 53 from 158 days in 2008 to 140 43 45 44 46 days in June 20
Slide 34: 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 2,151 1,895 1,895 1,902 1,877 1,860 Total Debt in Rp Billion 1,655 1,598 1,643 Gearing Ratio 1,311 1,212 600 15.0% 500 7.2% 400 4.5% 10.0% 300 2.3% 2.9% 3.2% 200 0.5% 5.0% 100 25
Slide 35: Strategies & Outlook 2015
SECTION 5 Strategies & Outlook 2015 Your Daily Nutritional Solution
Slide 36: KALBE Business Strategies
KALBE Business Strategies Strengthen business Improve marketing & Go Global - deeper portfolio through sales effectiveness ASEAN penetration, product innovation & more product M&A offering Enhance human Strengthen Quality capital development Assurance, Compliance & CSR 36
Slide 37: Corporate Actions
Corporate Actions Dividend Payment for Fiscal Year 2014 Historical Dividends Kalbe has obtained the approval of the AGMS 20.0 60% 80% on May 18, 2015 to pay dividend of Rp 891 bn, 51% 51% 15.0 42% 43% 60% or equivalent to Rp 19 per share. This reflects a 10.0 40% payout ratio of 43% for financial ye
Slide 38: Corporate Social Responsibility
Corporate Social Responsibility Looking after our stakeholders Community Development Environmental Sustainability Consumer Protection Kalbe Junior Ristek Kalbe Scientist Award Science Award ISO 14001:2004 Certified Environmental Management System Dedicated Customer Care Team Kalbe Cares Dr. Boen Ext
Slide 39: Outlook 2015
Outlook 2015 Revised Earnings Guidance 2015 1. Year-on-year Sales Growth 5% - 7% 2. Operating Profit Margin 16% - 17% 3. Earnings per Share Growth 6% - 8% 4. Dividend Payout Ratio 40% - 50% Capex Rp 0.9 – 1.1 Tn for production capacity expansion and distribution network. 39
Slide 40: Appendix: Financial Information YTD June 30, 2015
SECTION 6 Appendix 1 Financial Information YTD June 30, 2015 (Unaudited) Your Daily Nutritional Solution
Slide 41: Unaudited Financial Statement YTD June 2015: Balance Sheets (Assets)
Unaudited Financial Statement YTD June 2015 Consolidated Balance Sheets 31 December 2014 30 June 2015 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,894,609,528,205 1,643,305,126,500 -13.3% Trade Receivables, Net 2,346,943,653,265 2,568,523,364,520 9.4% Other Receiv
Slide 42: Unaudited Financial Statement YTD June 2015: Balance Sheets (Liabilities)
Unaudited Financial Statement YTD June 2015 Consolidated Balance Sheets 31 December 2014 30 June 2015 % Change (Audited) (Unaudited) LIABILITIES CURRENT LIABILITIES Short-term Bank Loans 251,909,102,153 344,210,405,574 36.6% Trade Payables 1,133,092,819,659 1,056,659,531,853 -6.7% Other Payables 422
Slide 43: Unaudited Financial Statement: Consolidated Statement of Income
Unaudited Financial Statement YTD June 2015 Consolidated Statement of Income 30 June 2014 30 June 2015 (Unaudited) (Unaudited) % Change NET SALES 8,379,751,907,130 8,719,777,391,104 4.1% COST OF GOODS SOLD 4,367,381,527,321 4,422,047,678,712 1.3% % to NS 52.1% 50.7% -1.4% GROSS PROFIT 4,012,370,379,
Slide 44: Unaudited Financial Statement: Consolidated Statement of Income (cont.)
Unaudited Financial Statement YTD June 2015 Consolidated Statement of Income 30 June 2014 30 June 2015 (Unaudited) (Unaudited) % Change INCOME FOR THE PERIOD 1,019,093,783,870 1,084,404,884,728 6.4% % to NS 12.2% 12.4% 0.3% OTHER COMPREHENSIVE INCOME (EXPENSES) (3,056,881,413) 15,078,348,380 593.3%
Slide 45: Unaudited Financial Statement: Consolidated Statement of Cash Flows
Unaudited Financial Statement YTD June 2015 Consolidated Statement of Cash Flows 30 June 2014 30 June 2015 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 8,990,931,852,585 9,310,777,184,775 3.6% Cash Paid to Suppliers and Employees (5,407,075,863,2
Slide 46: Unaudited Financial Statement: Consolidated Statement of Cash Flows (cont.)
Unaudited Financial Statement YTD June 2015 Consolidated Statement of Cash Flows 30 June 2014 30 June 2015 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Bank Loans 1,325,643,373,776 493,992,629,816 -62.7% Receipts of Capital Contributions from Subsidiaries' Non-
Slide 47: Appendix: JKN Information
Appendix 2 JKN Information Your Daily Nutritional Solution
Slide 48: National Healthcare Insurance (JKN)
National Healthcare Insurance (Jaminan Kesehatan Nasional – JKN) Towards a universal coverage in 2019 • Mandatory for all Indonesians. • All participants to pay monthly premium to BPJS Kesehatan as administrator. Premium Payment Categories Monthly Premium Poor & near Subsidized Rp 19,225 / person /m
Slide 49: National Healthcare Insurance: Health financing on limited resources
National Healthcare Insurance (Jaminan Kesehatan Nasional – JKN) Health financing on limited resources Healthcare Tariff Reimbursement Scheme Capitation system / tariff Out Primary healthcare per capita Rp 3,000 – Rp Patient facilities 10,000 / person / month Non Capitation Primary healthcare Rp 100
Slide 50: 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 50