PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — H1 2010 Earnings Presentation
55 slides from PT Kalbe Farma Tbk's earnings presentation, July 2010
Slide 1: Company Update H1 2010 Results
Company Update H1 2010 Results July 2010
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 June 30, 2010 unaudited results of the Company. The information contai
Slide 3: Table of Contents
Table of Contents SECTION 1 Corporate Overview 4 SECTION 2 Market Overview 7 SECTION 3 Business Overview 12 SECTION 4 Financial Overview 38 SECTION 5 Corporate Action & Outlook in 2010 45 SECTION 6 Appendix 49 3
Slide 4: Corporate Overview
SECTION 1 Corporate Overview 4 Excellence in Execution
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 has a long track record of sustainable growth Inception and Entrepreneurial Enhanced Focus and Consolidation Regionalization Driven Expansion 1996–2005 2006–2015 1966–1995 1966 1977 1981 1985 1989 1991 1993 1994 1996 1997 2005 2006 2007 2009 1966: 1977: 1985: 1989: 1991: 199
Slide 7: Market Overview
SECTION 2 Market Overview 7 Excellence in Execution
Slide 8: Indonesia's Health Spending Trends
Indonesia’s Health Spending Trends • Total expenditure on health averaged 2% Total Expenditure on Health as % of GDP of GDP over the 11 year period 1996-2006. 2.5 2.0 • The Government is planning to implement 1.5 the National Social Security System. 1.0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2
Slide 9: Pharmaceutical Market Breakdown
Pharmaceutical Market Breakdown Market Splits Remain Stable Total Market Trend 2005 – 2009 and Forecast 2010 OTC (Rp Bn) Ethical (Rp Bn) 38.0% 39.1% 42.3% 43.4% 43.4% 43.7% 62.0% 60.9% 57.7% 56.6% 56.6% 56.3% 2005 2006 2007 2008 2009 F2010 Ethical (Rp Bn) 14,622 14,033 14,837 16,969 19,225 21,142 Et
Slide 10: Indonesian Pharmaceuticals Market
Indonesian Pharmaceuticals Market The Industry is Highly Fragmented With More Than 200 Pharmaceutical Players Total Market (ITMA) Hospital (IHPA) Pharmacy (IPA) FY 2009 FY 2009 FY 2009 Dexa Medica Group Dexa Soho Dexa Novartis 5% Medica Group Group Medica Group Pfizer Group Soho Tempo 8% Pfizer Sanb
Slide 11: Recent Indonesian Pharmaceuticals Regulatory
Recent Indonesian Pharmaceuticals Regulatory Price Caps on Key Generic Drugs Ministry of Health Decree No. HK.03.01/Menkes/146/I/2010 issued on 27 January 2010 • Replace the previous Ministry of Health Decree No. 302/Menkes/SK/III/2008. • The Indonesian Ministry of Health has set drug store selling
Slide 12: Business Overview
SECTION 3 Business Overview
Slide 13: Consolidated Sales Breakdown
Consolidated Sales Breakdown Predominantly Serves Local Market Sales Breakdown By Segment Sales Breakdown By Geographical H1 2010 H1 2010 Prescription Distribution & Export Packaging Pharmaceuticals 4% 27% 34% Consumer Domestic Nutritionals Health 96% 22% 17% Total Sales = Rp 4,707 Bn Total Sales =
Slide 14: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Net Sales Performance 1,600 65.3% 65.7% 70.0% • Net sales grew by 16.4% to Rp 1,256 Bn in H1 2010. 1,400 60.0% • Growing faster than that of the pharmaceuticals 1,200 16.4% 1,256 50.0% industry. 1,000 1,079 • Improved gross profit margin from 65.3% in H1 40.0% 8
Slide 15: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Leading in Indonesia Prescription Pharmaceuticals Market Share Total Market (ITMA) Hospital (IHPA) Pharmacy (IPA) FY 2009 FY 2009 FY 2009 Dexa Pfizer Kalbe Medica Group Novartis Group Dexa Group 7% Pfizer Group Sanofi Aventis Pfizer Medica Group Sanbe 4% Group G
Slide 16: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Comprehensive Product Range Targeted To All Income Groups Sales Contribution By Number of Therapeutic Class Products Product Categories H1 2010 • General Anti-Infectives Licensed • Hospital Solutions Licensed • Oncology Products 82 • Blood and Blood Forming Orga
Slide 17: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division New Production Facility • New production facility in Cikarang: • To be completed by October 2010. • Dedicated for generic drugs’ tablet production line. Facility Upgrading • Upgrading of intravenous facility site has been finalized in March, 2010. The facility h
Slide 18: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Launching of several new products NutriCan • A nutritional product (in milk powder form) for cancer patients, who suffer from malnutrition and deterioration of quality of life. • A new joint research product between Kalbe and FKUI scientists, together with Dharm
Slide 19: Consumer Health Division
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe’s top products as per Dec 2009 Therapeutic Class Kalbe’s Products Market Share by Volume Antacid Promag, Waisan 83.7% Anti Diarrhea Neo Entrostop 44.6% Cough Remedies Komix, Woods, Mextril, Mixadin 40.8%
Slide 20: Consumer Health Division
Consumer Health Division Net Sales Performance 1,200 55.3% 60.0% • Consumer Health net sales was up 53.6% 3.6% to Rp 826 Bn in H1 2010 from 1,000 50.0% Rp 797 Bn in H1 2009. 3.6% 800 40.0% 826 • Single digit sales growth rate was 797 600 30.0% mainly due to unstable sales performance of our energy d
Slide 21: Consumer Health Division
Consumer Health Division Leading Market Position OTC Energy Drink FY 2009 FY 2009 (Unit) Soho Pharos Others M-150 2% Group Group Sanbe 5% Tempo 9% 6% Kratingdaeng Kuku Bima 4% Group 8% 36% Kalbe 9% Konimex 4% Group Darya Varia 15% 3% Others 50% Hemaviton 18% Extra Joss 31% Total Market = Rp 14.7 Tn
Slide 22: Consumer Health Division
Consumer Health Division Launching 7 New Products With Natural Ingredients Fatigon Hydro An isotonic drink made from natural coconut water Mixagrip Pegal Linu A new herbal product called for analgesic and muscle relaxant in liquid sachet form Mensana A new herbal product called for reducing menstrua
Slide 23: Consumer Health Division
Consumer Health Division More Direct to Consumer Activities – Brand Activation Campaign 23
Slide 24: Nutritionals Division
Nutritionals Division Complete Range of Nutritional Products • Catered to expecting & lactating mothers, babies, toddlers, children, tweens, teens and adults. Expecting Lactating Baby Toddler Kid Tween Teen 25+ 35+ Clinical 24
Slide 25: Relatively Low Milk per Capita Consumption
Nutritionals Division Relatively Low Milk per Capita Consumption Milk per Capita Consumption (kg) 40 -2.2% 30 2.4% kg 20 10 -3.6% 2.9% 2.3% 1.6% 0 Indonesia Vietnam Philippines Thailand South Korea Malaysia 2006 2.27 2.69 1.45 14.24 35.61 8.03 2007 2.35 2.36 1.47 11.96 34.83 8.66 2008 2.47 2.77 1.28
Slide 26: Nutritionals Division
Nutritionals Division Growth of Indonesian powder milk market driven primarily by price increase By Volume (Kg ‘000) By Value (Rp Bn) 104,860 1.2% 9,210 3.5% 103,588 8,899 MAT Mar 09 MAT Mar 10 MAT Mar 09 MAT Mar 10 Source : AC Nielsen, MAT 2010 26
Slide 27: Nutritionals Division
Nutritionals Division Net Sales Performance 1,400 60.5% 60.0% 1,200 • Nutritionals Division net sales were up by 48.0% 50.0% 19.8% to Rp 1,039 Bn in H1 2010 from 1,000 19.8% 1,039 Rp 867 Bn in H1 2009. 40.0% 800 867 600 30.0% • Improved gross profit margin to 60.5% in H1 2010 due to Rupiah strengthe
Slide 28: Competing With Multi National Companies
Nutritionals Division Competing With Multi National Companies Market Share Market Share of Kalbe Nutritionals Products FY 2009 In Its Category FY 2009 Mead Johnson Wyeth 4% Nutrifood Kalbe’s Products Market Share Fonterra Abbott 5% 3% Others 4% 70.9% 6% 3% Diabetasol Kalbe Nestle Nutritionals 30% Pr
Slide 29: Nutritionals Division
Nutritionals Division More Direct to Consumer Activities – Brand Activation Campaign 29
Slide 30: The Most Extensive Distribution Network
Distribution & Packaging Division The Most Extensive Distribution Network Kalbe has the most extensive distribution network of any pharmaceutical company in Indonesia with 2 Regional Distribution Centers and 65 branches 30
Slide 31: Distribution & Packaging Sales Composition
Distribution & Packaging Division Sales Composition Distribution & Packaging Distribution & Packaging Sales Composition in H1 2009 (Unaudited) Sales Composition in H1 2010 (Unaudited) 3rd 3rd Parties Parties 48% KF Group KF 47% Group 52% 53% Distribution Sales Packaging Sales Distribution Sales Pack
Slide 32: Distribution & Packaging Division
Distribution & Packaging Division Net Sales Performance • Distribution & Packaging Division comprised of 40.0% 2 publicly listed companies: 35.4% 2,000 35.0% • PT Enseval Putera Megatrading Tbk (EPMT) in 29.8% distribution & logistics business with an ownership of 7.6% 30.0% 83.75%. 1,500 1,586 25.0
Slide 33: Major Third Party Principals by Category
Distribution & Packaging Division Major Third Party Principals by Category Prescription Medical Instrument Fine Chemical Pharmaceuticals Consumer & Diagnostic Raw Materials 33
Slide 34: Medical Devices, a New Growth Driver
Distribution & Packaging Division Medical Devices, a New Growth Driver Medical Devices Net Sales (in Rp Bn) Raw Materials 5% Trading & Others Medical Devices Raw Material Trading 8% 673 714 581 502 414 CAGR CAGR 315 310 32.1% 233 42.3% FY 2006 FY 2007 FY 2008 FY 2009 FY 2006 FY 2007 FY 2008 FY 2009
Slide 35: Mitrasana Clinics
Distribution & Packaging Division Mitrasana Clinics • A 100% owned by of EPMT. • Opening of Mitrasana Clinics as a one-stop service, includes family doctor, pharmacy, laboratory, and convenient store. • To date, Kalbe has opened 20 Mitrasana clinics in Jakarta and its Greater Area. • Offered in 2 bu
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 Packaging • Over 2,000 sales & • Over 2,000 medical • Approximately 1,000 • Over 1,000 marketing marketing personnel represe
Slide 37: Manufacturing Infrastructure
Manufacturing Infrastructure Operates 12 GMP facilities comply with international standards Products Bldg 2 Facility Manufactured Area (m ) Production Lines Licensees Certification 9 lines of Non Beta Lactam products ISO9001, ISO14001, Kalbe Farma 448 42,684 Astellas (tablet, capsule, cream, liquid
Slide 38: Financial Overview
SECTION 4 Financial Overview 38
Slide 39: Consolidated Sales
Consolidated Sales 1st Half 2010 Strong Performance Net Sales (in Rp Bn) H1 2009 H1 2010 11.6% 4,707 4,217 7.6% 16.4% 3.6% 19.8% 1,474 1,586 1,079 1,256 797 826 867 1,039 Prescription Consumer Health Nutritionals Distribution & Consolidation Pharmaceuticals Packaging Figures based on Unaudited Finan
Slide 40: Strong Financial Performance
Strong Financial Performance Improved Gross Profit Margin & Controlled Operating Expenses Gross Profit Margin Operating Expenses to Net Sales Ratios Total Opr. Expenses Margin 1.6% 32.5% 32.8% 0.3% 0.8% 0.8% 49.1% 50.7% 5.7% 5.6% Research & Development General & Administrative 26.1% 26.4% Selling H1
Slide 41: Strong Financial Performance
Strong Financial Performance Margins Improvement Operating Profit Margin Net Income Margin 17.8% 700 14.0% 1,000 16.6% 18.0% 12.2% 600 12.0% 800 20.0% 15.0% 9.5% 838 500 572 10.0% 12.0% 43.5% 600 698 400 8.0% 9.0% 300 399 6.0% 400 6.0% 200 4.0% 200 3.0% 100 2.0% - 0.0% - 0.0% H1 2009 H1 2010 H1 2009
Slide 42: Strong Financial Performance
Strong Financial Performance High Growth Earnings per Share 1200 61 70 Earnings per Share has grown by 48.8% 60 48.8% Y-o-Y driven by several factors: 1000 50 • Profit Before Tax increased by 26.9% 800 41 842 40 • Lower tax rate 600 663 • Corporate income tax rate is reduced from 28% 30 to 25% start
Slide 43: Solid Financial Position
Solid Financial Position Rp 1.3 Trillion of Net Cash Position Total Debt and Gearing Ratio Cash & Net Cash Balance 43.7% 45.0% 1,000 40.0% 1,974 35.0% 800 30.0% 1,562 1,471 1,322 1,370 1,312 600 25.0% 1,261 1,223 1,116 1,020 20.0% 15.5% 918 883 917 400 12.6% 805 11.2% 15.0% 9.3% 604 7.9% 10.0% 200 3
Slide 44: Working Capital Management
Working Capital Management Cautiously Managed H1 2009 H1 2010 (Unaudited) (Unaudited) ∆ Change Kalbe’s days of inventory was Days of Account Receivable 46 52 6 up by 1 day to 137 days Days of Inventory 136 137 1 Days of Account Payable 45 46 1 Net Operating Cycle 137 143 6 Net Operating Cycle has be
Slide 45: Corporate Actions & Outlook in 2010
SECTION 5 Corporate Actions & Outlook in 2010 45
Slide 46: Corporate Actions in 2010
Corporate Actions in 2010 Joint Venture Company in the Philippines Kalbe has formed a 50-50 percent joint venture firm, Asiawide Kalbe Philippines, Inc. with ARC Holdings Inc., a Philippines' Corporation, to market ready-to-drink ExtraJoss in returnable glass bottle (RGB) in the Philippines. Disposa
Slide 47: Achievements in 2010
Achievements in 2010 Awards in Early 2010 • The 2010 Best Company for Cigarettes, Pharmaceutical and Households Needs Sector in Investor Awards, from Investor Magazine. • The 2010 Indonesian Most Admired Company Award in Pharmaceutical Category in IMAC Award, from Business Week and Frontier. 47
Slide 48: Outlook 2010
Outlook 2010 “8 to ALL” 1. Continue the implementation of the Productivity – Innovation – Cash flow (PIC) Program to all business units 2. Enhance business portfolio through new products and business developments 3. Expand business territory through collaboration 4. Implement Direct-to-Customer (D2C
Slide 49: Appendix Financial Information
SECTION 6 Appendix Financial Information YTD June 2010 (Unaudited) 49
Slide 50: Unaudited Financial Statement YTD 2010
Unaudited Financial Statement YTD 06 2010 Consolidated Balance Sheets 30 June 2009 30 June 2010 (Unaudited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,974,275,116,531 1,470,837,047,302 -25.5% Short-term Investments 33,803,068,876 15,397,699,321 -54.4% Trade Receivables 1,
Slide 51: Unaudited Financial Statement YTD 2010
Unaudited Financial Statement YTD 06 2010 Consolidated Balance Sheets 30 June 2009 30 June 2010 (Unaudited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Short-term Loans 600,610,032,426 157,500,587,090 -73.8% Trade Payables 535,294,069,403 586,401,834,838 9.5% Other Payables 50,638,147,450 1
Slide 52: Unaudited Financial Statement YTD 2010
Unaudited Financial Statement YTD 06 2010 Consolidated Statements of Income 30 June 2009 (Unaudited) 30 June 2010 (Unaudited) % Change NET SALES 4,217,477,571,977 4,706,809,589,746 11.6% COGS 2,147,467,560,903 2,322,776,297,551 8.2% % to NS 50.9% 49.3% -1.6% GROSS PROFIT 2,070,010,011,074 2,384,033,
Slide 53: Unaudited Financial Statement YTD 2010
Unaudited Financial Statement YTD 06 2010 Consolidated Statements of Cash Flows 30 June 2009 30 June 2010 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 4,494,105,314,481 5,032,729,922,591 12.0% Cash paid to suppliers and employees (3,642,060,145,2
Slide 54: Unaudited Financial Statement YTD 2010
Unaudited Financial Statement YTD 06 2010 Consolidated Statements of Cash Flows 31 June 2009 31 June 2010 (Unaudited) (Unaudited) % Change CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales of short-term investments and time deposits 390,000,605,519 55,424,490,000 -85.8% Interest income receiv
Slide 55: 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] Website : www.kalbe.co.id x 55 (S KALBE