PT Kalbe Farma Tbk · IDX:KLBF
PT Kalbe Farma Tbk — Q1 2014 Earnings Presentation
48 slides from PT Kalbe Farma Tbk's earnings presentation, April 2014
Slide 1: Company Update
Company Update Unaudited YTD March 2014 April 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 31 March 2014 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 2014 35 Appendix 39 3
Slide 4: Corporate Overview
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 2010: 2012: Disposed of Kageo Igar Jaya ♦ Generic production 1981: 1995: Established a joint ventur
Slide 7: Market Overview
SECTION 2 Market Overview = Peas ih 2s ) LAKI BERANI MAU _BERANI BIADU
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.
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: Business Overview
SECTION 3 Business Overview AGy > ae, LAKI BERANI MAU _BERANI BIADU
Slide 12: Prescription Pharmaceuticals Division
Prescription Pharmaceuticals Division Strong Top Line Growth +13.5% • No. 1 player in Indonesian Prescription Pharma Market. 1,056 930 • The largest medical representatives team in Indonesia with more than 2,350 personnel. • Comprehensive product offerings for all income groups. 31 Mar 2013 31 Mar 2
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
Consumer Health Division Strong Net Sales Performance +24.6% • No. 1 Player in OTC market and No. 2 in 694 Energy Drink category. 557 • GPM decreased from 53.1% in YTD 03 2013 to 52.6% in YTD 03 2014 due to Rupiah depreciation and change in product mix. 31 Mar 2013 31 Mar 2014 (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 Tipco Fruit Juice A healthy drink made of fruits and vege
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
Nutritionals Division Strong Net Sales Performance +32.5% • Strong brand awareness of existing major 1,055 products 796 Kalbe’s Products Market Share 2013 Diabetasol 88.0% Milna 65.7% 31 Mar 2013 31 Mar 2014 (Unaudited) (Unaudited) Prenagen 57.0% SALES in Rp Bn Morinaga Chil Mil 8.1% Morinaga BMT 10
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: 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 68 50 22
Slide 23: Distribution & Logistics Division
Distribution & Logistics Division Net Sales Performance on Consolidated Basis +4.6% • Distribution & Logistics Division is run under PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly listed company (91.75% owned). 1,207 1,262 • 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 Division: Growth Drivers
Distribution & Logistics Division Growth Drivers Medical Devices Retail Health Services : 67 Mitrasana Clinics Medical Devices is an area of potential • Opening of 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 • 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 2,350 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: Financial Overview
SECTION 4 Financial Overview
Slide 30: Consolidated Sales
Consolidated Sales Strong Top Line Growth of Internal Kalbe Products Net Sales (in Rp Bn) 16.5% 31 Mar 2013 31 Mar 2014 4,067 (Unaudited) (Unaudited) 3,490 13.5% 4.6% 32.5% 24.6% 1,207 1,262 930 1,056 1,055 694 796 557 Prescription Consumer Health Nutritionals Distribution & Consolidation Pharmaceut
Slide 31: Consolidated Operating Performance
Consolidated Operating Performance Stable Margin Gross Profit Margin Operating Expenses to Net Sales Ratios 0.8% 0.7% 0.8% 48.0% 48.4% 47.8% 4.8% 4.7% 4.7% Selling & Marketing 31 Dec 2013 31 Mar 2013 31 Mar 2014 General & (Audited) (Unaudited) (Unaudited) 26.4% 26.5% 26.5% Administrative Operating P
Slide 32: Consolidated Net Earnings
Consolidated Net Earnings Sustainable Earnings Growth Income Before Tax Net Income (in Rp bn) (in Rp bn) + 12.4% +11.0 % 657 585 493 444 31 Mar 2013 31 Mar 2014 31 Mar 2013 31 Mar 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) • Income before tax margin declined from 16.8% in YTD • Net income
Slide 33: Working Capital Management
Working Capital Management Improvement Trend in Inventory Improvement trend in days No. of days of inventory after the peak in 158 December 2013 129 131 120 131 142 108 114 132 Net Operating Cycle has 122 127 110 115 107 been decreased by 27 days from 158 days in 2008 to 131 50 days in March 2014 48
Slide 34: Solid Financial Position
Solid Financial Position Rp 0.97 Trillion of Net Cash Position Total Debt and Gearing Ratio Cash & Net Cash Balance 600 Total Debt in Rp Billion 15.0% 2,291 2,151 Gearing Ratio 1,902 1,877 1,860 500 1,655 1,532 7.9% 1,562 1,426 400 7.2% 6.6% 10.0% 1,222 300 843 969 2.3% 2.9% 200 5.0% 0.5% 100 340 25
Slide 35: Corporate Actions & Outlook 2014
SECTION 5 Corporate Actions & Outlook 2014
Slide 36: Corporate Actions
Corporate Actions Dividend Payment for Fiscal Year 2012 Historical Dividends Kalbe has obtained the approval of the AGMS 20.0 60% 80% on May 20, 2013 to pay dividend of Rp 891 bn, 51% 51% 15.0 60% or equivalent to Rp 19 per share. This reflects a 26% 10.0 17% 19.0 19.0 40% payout ratio of 51% for fi
Slide 37: 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 38: Outlook 2014
Outlook 2014 Earnings Guidance 2014 1. Year-on-year Sales Growth 14% - 16% 2. Operating Profit Margin 16.0%-17.0% 3. Earnings per Share growth of 15% - 17% * 4. Dividend payout ratio minimum 40% * Excluding the impact from foreign exchange translation Capex Rp 1 – 1.2 Tn for production capacity and
Slide 39: Appendix: Financial Information YTD March 2014
SECTION 6 Appendix Financial Information YTD March 31, 2014 (Unaudited)
Slide 40: Unaudited Financial Statement YTD 03 2014
Unaudited Financial Statement YTD 03 2014 Consolidated Balance Sheets 31 December 2013 31 March 2014 (Audited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,426,460,966,674 1,531,636,802,118 7.4% Trade Receivables, Net 2,145,218,904,462 2,302,459,332,955 7.3% Other Receivabl
Slide 41: Unaudited Financial Statement YTD 03 2014
Unaudited Financial Statement YTD 03 2014 Consolidated Balance Sheets 31 December 2013 31 March 2014 (Audited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Bank Loans 583,823,955,413 562,639,665,591 -3.6% Trade Payables 1,151,654,579,697 1,121,630,562,382 -2.6% Other Payables 379,156,683,712
Slide 42: Unaudited Financial Statement YTD 03 2014
Unaudited Financial Statement YTD 03 2014 Consolidated Balance Sheets 31 March 2013 31 March 2014 (Unaudited) (Unaudited) % Change ASSETS CURRENT ASSETS Cash and Cash Equivalents 1,889,128,937,449 1,531,636,802,118 -18.9% Trade Receivables, Net 1,859,381,495,308 2,302,459,332,955 23.8% Other Receiva
Slide 43: Unaudited Financial Statement YTD 03 2014
Unaudited Financial Statement YTD 03 2014 Consolidated Balance Sheets 31 March 2013 31 March 2014 (Unaudited) (Unaudited) % Change LIABILITIES CURRENT LIABILITIES Bank Loans 213,710,903,577 562,639,665,591 163.3% Trade Payables 938,944,522,932 1,121,630,562,382 19.5% Other Payables 265,153,747,563 3
Slide 44: Unaudited Financial Statement YTD 03 2014
Unaudited Financial Statement YTD 03 2014 Consolidated Statement of Income 31 March 2013 31 March 2014 (Unaudited) (Unaudited) % Change NET SALES 3,490,004,328,642 4,066,502,637,352 16.5% COST OF GOODS SOLD 1,801,794,856,080 2,121,798,032,288 17.8% % to NS 51.6% 52.2% 0.6% GROSS PROFIT 1,688,209,472
Slide 45: Unaudited Financial Statement YTD 03 2014
Unaudited Financial Statement YTD 03 2014 Consolidated Statement of Income 31 March 2013 31 March 2014 (Unaudited) (Unaudited) % Change INCOME FOR THE PERIOD 454,386,841,930 505,914,049,669 11.3% % to NS 13.0% 12.4% -0.6% OTHER COMPREHENSIVE INCOME (EXPENSES) 3,440,545,087 (16,322,861,642) -574.4% C
Slide 46: Unaudited Financial Statement YTD 03 2014
Unaudited Financial Statement YTD 03 2014 Consolidated Statement of Cash Flows 31 March 2013 31 March 2014 (Unaudited) (Unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 3,770,258,910,865 4,279,980,271,083 13.5% Cash Paid to Suppliers and Employees (2,291,692,645,
Slide 47: Unaudited Financial Statement YTD 03 2014
Unaudited Financial Statement YTD 03 2014 Consolidated Statement of Cash Flows 31 March 2013 31 March 2014 (Unaudited) (Unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Bank Loans 201,400,815,056 819,310,494,290 306.8% Receipts of Capital Contributions from Subsidiaries' Non-co
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