PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — Q1 2013 Earnings Presentation
48 slides from PT Kalbe Farma Tbk's earnings presentation, April 2013
Slide 1: Company Update
“All benefits of coconut water are here” Company Update Unaudited YTD March 2013 April 2013
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 31 March 2013 unaudited results of the Company. The information contai
Slide 3: Table of Contents
Table of Contents Corporate Overview 4 Market Overview 7 Business Overview 11 Financial Overview 29 Corporate Actions and Outlook 2013 35 Appendix 39 3
Slide 4: Corporate Overview
“All benefits of coconut water are here” SECTION 1 Corporate Overview
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: Market Overview
“All benefits of coconut water are here” SECTION 2 Market Overview
Slide 8: 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 4.50% 4.1% 3.8% 1 4.00% 3.5% • BPJS Health program of health coverage 3.50% 3.00% 3.3% 0 shall commence in Jan 2014 and intends to 2.5
Slide 9: Pharmaceuticals Market Breakdown
Pharmaceuticals Market Breakdown Kalbe – No. 1 in the Pharma Industry Kalbe continues to be the leader in the highly fragmented pharmaceuticals industry with over 200 players Pharma Market Breakdown Market Share Kalbe 12% OTC 40% a 6% b 5% c 5% Branded & Ethicals Licensed d 4% 84% 60% Others 68% Unb
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: Business Overview
“All benefits of coconut water are here” SECTION 3 Business Overview
Slide 12: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Strong Top Line Growth • No. 1 player in Indonesian Prescription Pharma +19.2% Market. 930 • The largest medical representatives team in Indonesia 780 with more than 2,300 personnel. • Comprehensive product offerings which covers all income groups 31 Mar 2012 31
Slide 13: Prescription Pharmaceuticals Division: Growth Drivers
Prescription Pharmaceuticals Division Growth Drivers Market Share Unbranded Generic (ITMA) YTD 12 2012 a Penetrate further in the unbranded Others 26% 45% generics market Kalbe b 16% 13% Source: IMS QPMU 4Q 2012 Note: 2012 data adjusted for inclusion of additional companies in survey universe Comple
Slide 14: Consumer Health Division
Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe’s brands YTD December 2012 Therapeutic Class Kalbe’s Products Market Share by Volume Antacid Promag, Waisan 73.8%* Anti Diarrhea Neo Entrostop 44.8%** Cough Remedies Komix, Woods, Mextril, Mixadin 33.9% C
Slide 15: Consumer Health Division
Consumer Health Division Strong Net Sales Performance +20.1% • No. 1 Player in OTC market and No.2 in Energy Drink category. 557 464 • GPM decreased from 54.5% in YTD 03 2012 to 53.1% in YTD 03 2013 due to change in product mix and Rupiah depreciation. GPM amounted 31 Mar 2012 31 Mar 2013 to 55.2% i
Slide 16: Consumer Health Division: 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 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: Nutritionals Division: Growth of Indonesian Powdered Milk Market
Nutritionals Division Growth of Indonesian Powdered Milk Market By Volume (Kg ‘000) By Value (Rp Bn) 3.7% 8.6% 17,550 16,159 190,398 183,157 FY 2011 FY 2012 FY 2011 FY 2012 Source : AC Nielsen, YTD 12 2012 18
Slide 19: Nutritionals Division
Nutritionals Division Strong Net Sales Performance +22.6% • Existing major products continued to gain market share. 796 649 Kalbe’s Products Market Share Diabetasol 88.1% Milna 76.5% 31 Mar 2012 31 Mar 2013 Prenagen 55.6% (Unaudited) (Unaudited) Morinaga Chil Mil 10.7% SALES in Rp Bn Morinaga BMT 11
Slide 20: Nutritionals Division: 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 21: Nutritionals Division: 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 66 48 22
Slide 23: Distribution & Logistics Division
Distribution & Logistics Division Net Sales Performance • Distribution & Logistics Division is run under +8.6% PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly 1,207 listed company (91.75% owned). 1,111 • Net sales represents the 3rd party product sales and distribution margin of internal pro
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 Division: Growth Drivers
Distribution & Logistics Division Growth Drivers Medical Devices Retail Health Services : Mitrasana Clinics Medical Devices is an area of potential • Opening of Mitrasana Clinics as a growth, especially in the one-stop service with 4-in-1 implementation of National Healthcare concept, including fami
Slide 26: Strengthening Distribution Network
Distribution & Logistics Division Strengthening Distribution Network • Continues to expand distribution infrastructure 1. Expand into new territories in Indonesia 2. Upgrade existing branch facilities to improve service quality 3. Establish several Regional Distribution Centers (RDC) throughout Indo
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 2,300 medical • Approximately 1,000 • Over 1,000 marketing marketing personnel represe
Slide 28: 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 29: Financial Overview
“All benefits of coconut water are here” SECTION 4 Financial Overview
Slide 30: Consolidated Sales
Consolidated Sales Strong Top Line Growth of Internal Kalbe Products Net Sales (in Rp Bn) 31 Mar 2012 (Unaudited) 16.2% 31 Mar 2013 (Unaudited) 3,490 3,005 8.6% 19.2% 22.6% 20.1% 1,111 1,207 930 780 796 557 649 464 Prescription Consumer Health Nutritionals Distribution & Logistics Consolidation Phar
Slide 31: Consolidated Operating Performance
Consolidated Operating Performance Stable Margin Gross Profit Margin Operating Expenses to Net Sales Ratios 49.0% 31.6% 31.8% 31.9% 47.9% 48.4% 0.7% 0.7% 0.7% 4.8% 5.2% 4.7% Selling & Marketing 31 Dec 2012 31 Mar 2012 31 Mar 2013 General & (Audited) (Unaudited) (Unaudited) Administrative 26.2% 25.9%
Slide 32: Consolidated Net Earnings
Consolidated Net Earnings Sustainable Earnings Growth Income Before Tax Net Income (in Rp bn) (in Rp bn) + 8.0 % +10.1% 542 585 403 444 31 Mar 2012 31 Mar 2013 31 Mar 2012 31 Mar 2013 (Unaudited) (Unaudited) (Unaudited) (Unaudited) • Income before tax margin declined from 18.0% • Net income margin d
Slide 33: Working Capital Management
Working Capital Management Improved Net Operating Cycle 158 Consistent improvement in No. of days working capital management 129 120 108 142 114 112 122 110 115 111 Net Operating Cycle has 107 been decreased by 46 days 50 from 158 days in 2008 to 112 43 45 44 48 48 days in March 2013 57 47 38 35 41
Slide 34: Solid Financial Position
Solid Financial Position Rp 1.7 Trillion of Net Cash Position Total Debt and Gearing Ratio Cash & Net Cash Balance 2,291 2,151 400 7.9% 9.0% 1,902 1,877 1,860 1,889 350 8.0% 1,655 1,675 300 7.0% 1,562 6.0% 250 1,222 5.0% 200 2.9% 2.9% 4.0% 150 340 2.3% 3.0% 100 205 214 2.0% 50 0.5% 141 1.0% 0 25 0.0
Slide 35: Corporate Actions & Outlook 2013
“All benefits of coconut water are here” SECTION 5 Corporate Actions & Outlook 2013
Slide 36: 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 98.6 billion. Joint Venture to form PT Kalbe Milko Indone
Slide 37: Brands Acknowledgement
Brands Acknowledgement Strong market acceptance 37
Slide 38: Outlook 2013
Outlook 2013 Earnings Guidance 2013 1. Year-on-year Sales Growth 15% - 18% 2. Operating Profit Margin 16.0% -17.0% 3. Earnings per Share growth of 15% - 18% 4. Dividend payout ratio minimum 50% • Capex Rp 1 – 1.5 Tn for production capacity and distribution network expansion • Cancellation of Treasur
Slide 39: Appendix: Financial Information
“All benefits of coconut water are here” SECTION 6 Appendix Financial Information YTD March 31, 2013 (Unaudited)
Slide 40: Unaudited Financial Statement YTD 2013: Consolidated Balance Sheets
Unaudited Financial Statement YTD 03 2013 Consolidated Balance Sheets 40
Slide 41: Unaudited Financial Statement YTD 2013: Consolidated Balance Sheets
Unaudited Financial Statement YTD 03 2013 Consolidated Balance Sheets 41
Slide 42: Unaudited Financial Statement YTD 2013: Consolidated Balance Sheets
Unaudited Financial Statement YTD 03 2013 Consolidated Balance Sheets 42
Slide 43: Unaudited Financial Statement YTD 2013: Consolidated Balance Sheets
Unaudited Financial Statement YTD 03 2013 Consolidated Balance Sheets 43
Slide 44: Unaudited Financial Statement YTD 2013: Consolidated Statements of Income
Unaudited Financial Statement YTD 03 2013 Consolidated Statements of Income 44
Slide 45: Unaudited Financial Statement YTD 2013: Consolidated Statements of Income
Unaudited Financial Statement YTD 03 2013 Consolidated Statements of Income 31 March 2012 31 March 2013 (Unaudited) (Unaudited) % Change * adjusted, after stock split 45
Slide 46: Unaudited Financial Statement YTD 2013: Consolidated Statement of Cash Flows
Unaudited Financial Statement YTD 03 2013 Consolidated Statement of Cash Flows 46
Slide 47: Unaudited Financial Statement YTD 2013: Consolidated Statement of Cash Flows
Unaudited Financial Statement YTD 03 2013 Consolidated Statement of Cash Flows 31 March 2012 31 March 2013 (Unaudited) (Unaudited) % Change 47
Slide 48: 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 48