Pasar Farmasi Indonesia - Kalbe

Company UpdateUnaudited YTD September 2014

October 2014

Not all collagen is the same,

it’s time to choose the right one

2

Forward Looking StatementThis 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 September 2014 unaudited results of the Company.The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express orimplied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or theopinions contained herein. None of the Company or any of their respective affiliates, and their respective commissioners, directors andemployees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising fromany use of this presentation or its contents or otherwise arising in connection with the presentation. Any decision to purchase or subscribe forsecurities of the Company should not be made on the basis of the information contained in this presentation.

The presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absentregistration or an exemption from registration.

This presentation and its contents are confidential unless they are or become generally available as public information in accordance withprevailing laws and regulations (other than as a result of a disclosure by you) and must not be distributed, published or reproduced (in wholeor in part) or disclosed by recipients to any other person. This presentation does not constitute a recommendation regarding the securities ofthe Company.

This presentation, including the information and opinions contained herein, is provided as of the date of this presentation and is subject tochange without notice, including change as a result of the issuance of 30 September 2014 unaudited results of the Company .

This presentation includes "forward-looking statements". These statements contain the words "anticipate", "believe", "intend", estimate","expect" and words of similar meaning. All statements other than statements of historical facts included in this presentation, including,without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for futureoperations (including development plans, objectives relating to the Company's products and services and anticipated product launches) areforward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present andfuture business strategies and the environment in which the Company will operate in the future. These forward-looking statements speakonly as at the date of this presentation. The Company expressly disclaims any obligation or reflection of any change in the Company'sexpectations with regard thereto, or any change in events, conditions or circumstances on which any statement is based.

Market data and certain industry forecasts used in this presentation were obtained from market research, publicly available information andindustry publications which have not been independently verified, and no representation is made as to the accuracy of such information.

Table of Contents

3

Corporate Overview 4

Market Overview 7

Business Overview 13

Financial Overview 31

Strategies and Outlook 2014 37

Appendix 42

SECTION 1

Corporate Overview



Domestic95%

Export5%

Prescription Pharmaceuticals

25%

Consumer Health17%

Nutritionals26%

Distribution & Logistics

32%

• 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 by segment and by geographical location for YTD September

2014 is as follows:

Largest Publicly-Listed Pharmaceuticals Company in Southeast Asia

Total Sales = Rp 12,758 Bn Total Sales = Rp 12,758 Bn

Corporate Overview

5

Corporate Strategy

6

Kalbe has a long track record of sustainable growth

6

0

200

400

600

800

1000

1200

1400

1600

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

(US

D m

m)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

(IDR

bn

)

Sales USD Sales IDR

1966 1977 1985 1989 1991 1993 20051981 1994 1995 1997 2007 2010

1966:Company founded

1977:Strengthen pharmabusiness by establishing Dankos Lab

1981:Spin-off the distribution business to PT Enseval due to government regulation

1985:Expansion to consumer health through acquisition of BintangToedjoe and in pharmathrough HexpharmJaya acquisition

1989:Igar Jaya and DankosIPOs

1991:Kalbe Farma IPO

1993: Strengthening

nutritionals business by acquiring Sanghiang Perkasa and consolidating nutritional business to SanghiangPerkasa

1994: Entered

energy drink business

EPMT IPO

1995: Disposed of 50% of food business (PT Bukit Manikam Sakti) to Arnotts

1997: Disposed of Kalbe’s

remaining 50% ownership in PT Bukit Manikam Sakti to Arnotts

Disposed glass packaging division to Schott

Acquired Woods Peppermint brand

Acquired 80% of Saka Farma

2005:Consolidation of Kalbe Group

2006

2006:Scale through mergers and acquisitions

2007: Launch of new corporate

logo as part of transformation process

Products entered every ASEAN countries (except Laos)

Opening of the Stem Cell and Cancer Institute

Implementation of end-to-end supply chain management

Integrated information technology systems

2010: Disposed of Kageo Igar Jaya Established a joint venture

company, Asiawide Kalbe Philippines Inc.

Inaugurated Panca SradhaKalbe as our Corporate Values

Inception and Entrepreneurial

Driven Expansion1966–1995

Enhanced Focus and Consolidation1996–2005

Regionalization2006–2015

2011

2011: EPMT Rights Issue to

finance expansion Increased dividend

payout ratio to 50%

2012

2012:♦ Generic production

facility comes on stream♦ Acquired PT Hale

International♦ Established a joint

venture company PT Kalbe Milko Indonesia

2013

2013: Cancellation of

the Company’s Treasury Stocks 0f 7.7%

SECTION 2

Market Overview



Total Healthcare Expenditure

122 139168

194221

251281

312 343

2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F

• Total expenditure on health averaged 2.1% of

GDP over the 11 year period 1999-2009.

Indonesia’s Health Spending Trends

8

BPJS Coverage - Roadmap

• BPJS Health program has commenced on

January 2014 and with a target to cover 40% -

50% of the population in 2014 and the entire

Indonesian population by 2019.

4.8%

4.1%3.8%

3.5%3.3%

2.1%

0

0.2

0.4

0.6

0.8

1

1.2

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

Malaysia Thailand Philippines India Singapore Indonesia

Healthcare Expenditure/GDP 2010

(Rp Tn) Growth of 13.9%

Source : Business Monitor International: Pharmaceutical & Healthcare Report, Q3 2011

(Indonesia, Malaysia, Thailand, Philippines, India, Singapore)

Source : Business Monitor International: Indonesia Pharmaceuticals & Healthcare Report

Q3 2012

120 mn people

50% coverage

250 mn people

100% coverage

2014 2019

Up to date, more than 128 mn people have been

covered, including 76.4 mn people covered by

Jamkesmas program before the launch of BPJS

Source : Roadmap to National Health Insurance 2012 - 2019

9

National Healthcare Insurance(Jaminan Kesehatan Nasional – JKN)

Towards a universal coverage in 2019

Poor & near

poor residents

Categories Monthly Premium

Rp 19,225 / person /month

Formal sector

workers

5% of the salaries and compensations:

• 4% paid by the employers

• 1% paid by the employees(as of July 1, 2015)

Informal

sector

workers

Rp 25,500 (class III) / person /month

Rp 42,500 (class II) / person /month

Rp 59,500 (class I) / person /month

Subsidized

Non-

subsidized

• Mandatory for all Indonesians.

• All participants to pay monthly premium to BPJS Kesehatan as administrator.

Premium Payment

BPJS Kesehatan Card

10

Primary healthcare

facilities

• Improving availability, cost efficiency and

transparency through centralized

electronic procurement

• Electronic tender using price caps as

ceiling price

Health financing on limited resources

National Healthcare Insurance(Jaminan Kesehatan Nasional – JKN)

Secondary &

tertiary healthcare

facilities

Drug Procurement

Out

Patient

In Patient

Primary healthcare

facilities

Capitation system / tariff

per capita Rp 3,000 – Rp

10,000 / person / month

Non Capitation

Rp 25,000 – Rp 750,000

Diagnosis-related group :

fixed payment for a bundling

of treatments & medicines

based on diagnosis

Healthcare Tariff Reimbursement Scheme

http://www.google.com/url?url=http://www.panoramio.com/photo/25372592&rct=j&frm=1&q=&esrc=s&sa=U&ei=Nk5OVK2rNoTWmgXMjIH4Aw&ved=0CBwQ9QEwAzgU&usg=AFQjCNH7VRPeIxqp-NwvENqpIrQAdOsKWw

https://www.google.com/url?url=https://zulliesikawati.wordpress.com/tag/pharmacy/&rct=j&frm=1&q=&esrc=s&sa=U&ei=PVFOVLnRG8LXmAXtl4L4Aw&ved=0CCoQ9QEwCg&usg=AFQjCNGLpti6wEdAygdtqTyK77x3i3KnsQ

35.5 38.643.2

47.653.8

FY2009 FY 2010 FY 2011 FY 2012 FY 2013

Pharmaceuticals Market Breakdown

11

Kalbe – No. 1 in the Pharma Industry

Kalbe continues to lead in the highly fragmented pharmaceuticals

industry with over 200 players

Total Market FY 2013 Rp 53.8Tn

OTC

41%

Ethicals

(Prescription)

59%

Branded &

Licensed

86%

Unbranded

14%

Pharma Market Breakdown

Pharma Industry

CAGR

10.95%

Market Share

Kalbe 12%

a 6%

b 5%

c 5%

d 4%

Others 68%

(in trillion Rupiah)

Source: IMS Health ITMA YTD 12 2013

Note: Restatement of 2012 IMS market data

Recent Indonesian Pharmaceuticals Regulatory

12

Ministry of Health Decree No. 436 /Menkes/SK/XI/2013 issued on 11 November 2013

• Replaces the previous Ministry of Health Decree No. 092 /Menkes/SK/II/2012 with some additional units.

• Determines the selling price and retail price caps on 535 generics drugs for pharmacies, hospitals and other

healthcare institutions throughout Indonesia.

Ministry of Health Regulation No. 1010/Menkes/PER/XI/2008 issued on 3 November 2008

• Prohibits foreign pharmaceutical companies from registering drugs in Indonesia unless they have local

production facilities.

Price Caps on Key Generic Drugs

National Healthcare Insurance System

Local Production Facilities Requirements

12

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 Health Insurance

• Replaces Presidential Decree No. 12 Year 2013.

• All Indonesians are required to be members of the Health Insurance.

• First stage of implementation in 2014 will cover subsidy recipients, military members, civil servants, and formal

sector workers. Second stage will cover all population members by 1 January 2019.

Ministry of Health Circular No. KF/Menkes/167/III/2014 issued on 26 March 2014

• National Health Insurance is conducted through electronic purchasing method based on an e-catalogue.

• Manual procurement applies for drugs outside the e-catalogue.

Presidential Decree No. 39 Year 2014 regarding List of Business Lines with its Investment Requirements

• Maximum foreign ownership in a pharmaceuticals company is 85%, higher than the previous provision of 75%.

Foreign Ownership

SECTION 3

Business Overview



2,870 3,201

30 Sep 2013(Unaudited)

30 Sep 2014 (Unaudited)

• No. 1 player in Indonesian Prescription Pharma Market.

• The largest medical representatives team in Indonesia with

more than 2,350 personnel.

• Comprehensive product offerings for all income groups.

• Increasing competition following national insurance

implementation.

• Gross Profit Margin (GPM) declined from 61.1% in YTD 09

2013 to 60.2% in YTD 09 2014, mostly due to Rupiah

depreciation and product mix.

Licensed Products

27.0%

Unbranded Generics

12.7%

Branded Generics

60.2%

14

Prescription Pharmaceuticals Division

Consistent Top Line Growth

+11.5%

Total Sales Rp 3,201 Bn

Market Share (ITMA)

FY 2013

Total Market = Rp 31.6Tn

KALBE GROUP

15%

a9%

b6%

c4%

d4%

e4% f

3%

OTHERS55%

Source: IMS Health Prescription Pharmaceuticals YTD 12 2013


• Completion of Kalbe’s first oncology factory

in Indonesia in 2014

• Commercialization started in Q3 2014

• Starting building competence in stem cells

and genomics

Prescription Pharmaceuticals Division

Penetrating further in the unbranded

generics market

15

Growth Drivers

Expanding licensed products from

multinational companies to gain technology

transfer

Strengthening presence in

specialty products

• Selection of focused categories to achieve scale

• Utilization of dedicated unbranded generic plant

Stem Cells and

Cancer Institute

16

Consumer Health Division

Strong Brand Equity with Leading Market Position

Market share of Kalbe’s brands

Source : AC Nielsen YTD 12 2012 and Company’s estimation 2013, in volume

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, Mixagrip FB, Procold 37.4%

Multivitamin Cerebrovit, Fatigon, Sakatonik Liver 30.8%

Children Multivitamin Cerebrofort, Sakatonik ABC 18.1%

Energy Drink ExtraJoss 25.0%

1,883 2,175



a39%

Extra Joss, 25%

b13%

c7%

d3%

Others13%KALBE

GROUP9%

a9%

b8%

c7%

d5%

e3% f

3%

Others55%

• No. 1 Player in OTC market and No. 2 in

Energy Drink category.

• GPM increased from 53.5% in YTD 09 2013 to

54.1% in YTD 09 2014.


17

Strong Net Sales Performance

Energy Drink

YTD 12 2013 (Unit)

OTC

YTD 12 2013

Total Market = Rp 22.2 Tn

Source : IMS Health OTC YTD 12 2013


+15.5%

Source : AC Nielsen YTD 12 2012 and Company’s estimation 2013, in volume

18


Innovative New Products

Hydro CocoAn isotonic drink made of real coconut water.

Original Love JuiceFresh bottled fruit juice made of quality fruits available in pomegranate, orange, guava, apple, and soursop flavors

Promag Fruity 4sAntacid tablet with fruit flavors

NitrosConcentrated energy drink in liquid form with convenient tube packaging

Extra Joss BlendNew variant of energy drink with added powdered milk in sachet packaging

Promag GazeroHerbal remedy to relieve flatulence

Woods HerbalHerbal cough syrup

Bintang Toedjoe Masuk AnginTraditional herbal remedy for common cold symptoms

Herbal Products

19

Complete Range of Nutritional Products

TeenExpecting Lactating Baby Toddler Kid Tween 25+ 35+ Clinical

• Catered to expecting & lactating mothers, babies, toddlers, children, tweens and

adults.

Nutritionals Division


20

Growth of Indonesian Powdered Milk Market

Source : AC Nielsen, YTD 12 2013

By Value (Rp Bn)By Volume (Kg ‘000)

11.4%5.2%

174,855 183,944

FY 2012 FY 2013

15,808

17,615

FY 2012 FY 2013

2,709 3,325




21

Strong Net Sales Performance

+22.8% • Strong brand awareness of existing major

products

• GPM declined to 55.1% in YTD 09 2014 from

60.5% in YTD 09 2013, mostly due to Rupiah

depreciation, higher raw material price and

product mix.

Powdered Milk Market Share YTD 12 2013

Total Market = Rp 17.6 Tn

Source : AC Nielsen, based on Value (Rp)

Kalbe’s Products Market Share 2013

Diabetasol 88.0%

Milna 65.7%

Prenagen 57.0%

Morinaga Chil Mil 8.1%

Morinaga BMT 10.4%

Entrasol 8.1%

Morinaga Chil Kid 5.8%

Zee 5.5%

Morinaga Chil School 2.4%

a30%

b22%

c13%

Kalbe Nutritionals

10%

d8%

e6%

f3%

g2%

h2%

i2%

Others2%

Launching of New Products

22


Diva

Nutrive Benecol

Smoothie with special ingredient to lower cholesterol

Fitbar

A healthy snack bar with low calories, zero cholesterol and

zero trans fat.

Health drink with collagen and antioxidant for skin care

Zee

Powdered milk for kids and tweens targeted to the middle

segment, now also available in sachet packaging

Morinaga Soya & P-HP

Customized infant formula and growing up milk for lactose intolerance

and milk protein allergy.

Multi Channel Customer Touch Points

23


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 Rewards Card offers point rewards for

consumers to build consumer loyalty. KALCare Experiential Store provides various services to build customer

engagement and support branding activities.

http://www.kalbestore.com/

Distribution & Logistics Division

24

The Most Extensive Distribution Network

Branches

69 51CitiesRDC

2

12,480

1,398 480

11.2%

3.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Net Sales Gross Profit Income Before Tax

3,978 4,057



25

Net Sales Performance on Consolidated Basis

• Distribution & Logistics Division is run under

PT Enseval Putera Megatrading Tbk (EPMT.JK), a publicly

listed company (91.75% owned).

• Net sales represents the 3rd party product sales and

distribution margin of internal product sales for consolidated

accounting purposes.

• GPM slightly increased at the level of 29.5% in YTD 09 2014

from 29.4% in YTD 09 2013.


+2.0%

(Figures in Rp Bn) Gross profit margin

Income before taxmargin

Distribution Business Details on Stand Alone Basis

Kalbe Group 71%

3rd Party Principals 18%

Medical Devices 3%

Raw Material Trading 8%

Major Third Party Principals by Category

Prescription

Pharmaceuticals Consumer

Medical Instrument

& Diagnostic

Fine Chemical

Raw Materials


26

502673

915 870969

1142

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013


27

Growth Drivers

Medical Devices is an area of potential

growth, especially in the implementation

of National Healthcare Insurance

System where demand for medical

devices is projected to grow further.

Net Sales (in Rp Bn)

CAGR

17.9%

Retail Health Services : 80 Mitrasana Clinics

• Developing Mitrasana Clinics as a

one-stop service with 4-in-1

concept, including family doctor,

pharmacy, laboratory, and

convenient store.

• A 100% owned subsidiary of EPMT.

• To date, Kalbe has opened 80

Mitrasana clinics in Jakarta and its

Greater Area.

Medical Devices

• 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 several Regional Distribution Centers (RDC) throughout

Indonesia

4. Expand warehouse capacity

• Collaborating with sub-distributors to gain territorial expansion


28

Strengthening Distribution Network

• New branch in Banyuwangi

• Upgraded branches in Bandar Lampung, Tangerang, Surabaya

• Branch upgrades in process in Balikpapan and Jambi

2014 overview

• 3 new branches in Lhokseumawe, Kudus, Sukabumi

• Upgraded branches in Pontianak, Cirebon, and Mataram

2013 overview

Bandar Lampung

Tangerang

Surabaya

Marketing and Sales Infrastructure

29

The largest sales force for Pharma and Consumer Health in Indonesia

Prescription

PharmaceuticalsConsumer Health Nutritionals

Distribution &

Logistics

Infra-

structures

Indonesia

Coverage

Comments

• Over 2,350 medical

representatives

• Over 1,000 marketing

personnel

• > 2,000 sales &

marketing personnel

• Total of > 4,000

employees

• 69 marketing branches

throughout Indonesia

• 45 branches & 24 at

subsidiaries

• > 1,000 trucks

• > 500 motorcycles

• Directly cover

200,000 outlets

• Products available in

over 1mn outlets or

80% of total

consumer health

market

Market coverage

• 70% of GP market

covered

• 90% of specialist market

covered

• 100% of all hospitals

covered

• 100% pharmacy

coverage

• Largest marketing

team in Indonesia

• Approximately 1,000

marketing and sales

force

• Market Coverage

throughout Indonesia

• Most developed

telemarketing team in

the nutritional sector

• 80% of consumer

health market

•100% of prescription

pharma market

• Largest sales force in

Indonesia

Manufacturing Infrastructure

30

Operates 10 GMP facilities complying with international standards

FacilityProducts

Manufactured

Building Area

(m2)Production Lines Licenses Certification

Kalbe Farma 448 56,7469 lines of Non Beta Lactam Products

(tablet, capsule, cream, liquid oral, injection)Astellas

ISO 9001, ISO 14001,

OHSAS18001

Bintang Toedjoe 46 20,849 3 lines; effervescent, powder & liquid --ISO 9001, ISO 14001,

OHSAS18001, HACCP

Dankos Farma 189 23,1014 factories; Non Beta Lactam, Penicillin &

Cephalosporin, Oncology lines

Daiichi,

Samyang

ISO 9001, ISO 14001,

OHSAS18001

Sanghiang Perkasa 132 11,8696 lines (4 lines sachet, 1 line tin,

1 line mixed sachet)Morinaga

ISO 9001, ISO 14001, HACCP,

OHSAS18001

Saka Farma 32 1,763 Liquid, Non Beta Lactam products --ISO 9001, ISO 14001,

OHSAS18001

Hexpharm Jaya 73 16,533Solid tablet & dry syrup

(Non Beta Lactam products)-- ISO 9001

Fima 24 2,500 Large volume Parenteral Line BaxterISO 9001, ISO 14001,

OHSAS18001

Kalbe Morinaga 19 33,733 1 wet - drier line, 1 can line, 2 sachet lines Morinaga ISO 9001, ISO 22000

Orange Kalbe Ltd. - 5,000 2 lines; tablet and cream -- NAFDAC (local FDA)

Hale International 6 10,000 Semi hot-filled PET -- ISO 22000/2005 GMP, HACCP

SECTION 4

Financial Overview



2,870 1,883

2,709 3,978

11,440

3,201 2,175

3,325 4,057

12,758

Prescription Pharmaceuticals

Consumer Health Nutritionals Distribution & Logistics

Consolidation



Consolidated Sales

32

Strong Top Line Growth of Internal Kalbe Products

11.5%15.5%

22.8%

2.0%

11.5%

Net Sales (in Rp Bn)

26.4% 27.1% 26.8%

4.8% 4.7% 4.8%0.8% 0.9% 0.8%

31 Dec 2013 (Audited)



Selling & Marketing

General & Administrative

Research & Development

15.9% 16.0% 15.7%




48.0% 48.7% 48.1%




Consolidated Operating Performance

33

Stable Margin

• Marketing efforts to drive brand awareness

• Research & development activities to support

product development

Gross Profit Margin Operating Expenses to Net Sales Ratios

Operating Profit Margin

1,366 1,487



1,814 1,988



Consolidated Net Earnings

34

Positive Earnings Growth

Income Before Tax

(in Rp bn)

Net Income

(in Rp bn)

• Income before tax margin declined from 15.9% in YTD

09 2013 to 15.6% in YTD 09 2014, mostly due to lower

gross profit margin.

+9.6%

• Net income margin declined from 11.9% in YTD 09

2013 to 11.7% in YTD 09 2014, in line with lower

income before tax margin.

+8.8%

43 45 44 50

48 48 49

142

122 110 115 107

132 124

27 38 35

57 41

50 50

158

129 120 108 114

131 123








Days of Account Receivables Days of Inventories

Days of Account Payables Net Operating Cycle

Working Capital Management

35

Improving Days of Inventory

End-to-end supply chain

management would be

continuously implemented

to overcome any

fluctuation in inventory

Net Operating Cycle has

been decreased by 35 days

from 158 days in 2008 to 123

days in September 2014

Days of Inventory has started

to improve after temporary

spike since December 2013

No. of days

278

470 469

783

994

611

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 YTD 9 2014

1,562

1,902

2,291

1,860

1,426 1,609

1,222

1,877 2,151

1,655

843 1,081

FY 2009 (Audited)

FY 2010 (Audited)

FY 2011 (Audited)

FY 2012 (Audited)

FY 2013 (Audited)

YTD 09 2014 (Unaudited)

Cash and Cash Equivalent in Rp Billion Net Cash in Rp Billion

340 25 141 205 584 528

7.9%

0.5%2.3% 2.9%

7.2%6.0%

0.0%

5.0%

10.0%

15.0%

0

100

200

300

400

500

600

FY 2009 (Audited)

FY 2010 (Audited)

FY 2011 (Audited)

FY 2012 (Audited)

FY 2013 (Audited)

YTD 09 2014 (Unaudited)

Total Debt in Rp Billion

Gearing Ratio

5.0

14.019.0 19.0 17.0

26%

51%60%

51%42%

0%

20%

40%

60%

80%

0.0

5.0

10.0

15.0

20.0

2009 2010 2011 2012 2013

Cash Dividend* (Rp/share) Dividend Payout Ratio (%)

Solid Financial Position

36

Total Debt and Gearing Ratio Cash & Net Cash Balance

Rp 1.08 Trillion of Net Cash Position

Dividend Payment Capital Expenditure

* For Fiscal Year

* Cash dividend are adjusted for stock split impact

* Capital Expenditure in Rp Billion

SECTION 5

Strategies &

Outlook 2014



38

KALBE Business Strategies

Improve marketing &

sales effectiveness

Go Global - deeper

ASEAN penetration,

more product

offering

Local penetration,

expand distribution

coverage

Enhance human

capital development

Strengthen business

portfolio through

product innovation &

M&A

2.5 5.014.0

19.0 19.0 17.017%26%

51%

60%

51%42%

0%

20%

40%

60%

80%

0.0

5.0

10.0

15.0

20.0

2008 2009 2010 2011 2012 2013

Cash Dividend* (Rp/share) Dividend Payout Ratio (%)

Cancellation of Treasury Stocks

Corporate Actions

39

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.

Acquisition of PT Hale International

Dividend Payment for Fiscal Year 2013

Kalbe has obtained the approval of the AGMS

on May 14, 2014 to pay dividend of Rp 797 bn,

or equivalent to Rp 17 per share. This reflects a

payout ratio of 42% for financial year 2013.

Dividend has been paid on July 2, 2014.

Historical Dividends

Joint Venture to form PT Kalbe Milko Indonesia

Kalbe signed an agreement with PT Milko Beverage Industry to form a joint venture company, PT

Kalbe Milko Indonesia, to manufacture liquid nutritionals products with an estimated investment

of Rp 100 – 150 Bn.

Kalbe has obtained shareholders’ approval for treasury stock cancellation in the EGMS on May 20,

2013.

* Cash dividend are adjusted for stock split impact

40

Corporate Social Responsibility

Certified

Environmental

Management

System

ISO 14001:2004

Environmental Sustainability Consumer Protection

Dedicated Customer

Care Team

Kalbe Care

Education Health Environment Infrastructure

Looking after our stakeholders

Kalbe Junior

Scientist Award

Ristek Kalbe

Science Award

Dr. Boen

Distinguished

Lecture Series

Extended

Producer

Responsibilities

Free Medical

Consultations

Blood Donor

ActivitiesDisaster Reliefs

Community Development

Outlook 2014

41

Capex Rp 1 – 1.2 Tn for production capacity and distribution network expansion.

Initial Outlook Revised Outlook

1. Year-on-year Sales Growth 14% - 16% 11% - 13% *

2. Operating Profit Margin 16% - 17% 16% - 17%

3. Earnings per Share Growth 15% - 17% ** 11% - 13% **

4. Dividend Payout Ratio 42% 42%

Revised Earnings Guidance 2014

* Mostly derived from slower growth of non-Kalbe products

**Excluding the impact from foreign exchange translation

SECTION 6

Appendix

Financial InformationYTD September 30, 2014

(Unaudited)



ASSETS

CURRENT ASSETS

Cash and Cash Equivalents 1,426,460,966,674 1,609,375,003,991 12.8%

Trade Receivables, Net 2,145,218,904,462 2,301,229,340,901 7.3%

Other Receivables 128,159,883,954 115,548,017,140 -9.8%

Other Current Financial Assets 187,742,937,561 194,253,726,357 3.5%

Inventories, Net 3,053,494,513,851 3,049,478,373,769 -0.1%

Prepaid Value Added Tax 40,855,503,867 38,160,133,162 -6.6%

Prepaid Expenses 119,253,269,711 115,735,268,684 -3.0%

Other Current Assets 396,133,471,463 450,421,906,555 13.7%

TOTAL CURRENT ASSETS 7,497,319,451,543 7,874,201,770,559 5.0%

TOTAL NON-CURRENT ASSETS 3,817,741,823,483 4,143,560,938,395 8.5%

TOTAL ASSETS 11,315,061,275,026 12,017,762,708,954 6.2%

31 December 2013

(Audited)

30 September 2014

(Unaudited) % Change

Unaudited Financial Statement

YTD 09 2014

Consolidated Balance Sheets

43

% Change

LIABILITIES

CURRENT LIABILITIES

Bank Loans 583,823,955,413 509,160,049,247 -12.8%

Trade Payables 1,151,654,579,697 1,229,927,237,928 6.8%

Other Payables 379,156,683,712 314,586,629,503 -17.0%

Accrued Expenses 314,518,392,842 323,301,891,293 2.8%

Taxes Payable 186,953,727,366 191,319,360,075 2.3%

Short-term Liabilities for Employees' Benefit 24,391,340,352 41,994,497,283 72.2%

Current Maturities of Obligations Under Finance Leases 91,344,366 - -100.0%

TOTAL CURRENT LIABILITIES 2,640,590,023,748 2,610,289,665,329 -1.1%

TOTAL NON-CURRENT LIABILITIES 174,513,285,703 185,364,488,876 6.2%

TOTAL LIABILITIES 2,815,103,309,451 2,795,654,154,205 -0.7%

EQUITY

ATTRIBUTABLE TO OWNERS OF THE PARENT

Capital Stock -Issued and Fully Paid 468,751,221,100 468,751,221,100 0.0%

Additional Paid-in Capital, Net (34,118,673,814) (34,118,673,814) 0.0%

Retained Earnings 7,633,188,370,750 8,323,067,650,288 9.0%

Others 40,420,603,467 44,612,424,613 10.4%

Sub-total 8,108,241,521,503 8,802,312,622,187 8.6%

Non-controlling Interest 391,716,444,072 419,795,932,562 7.2%

EQUITY, NET 8,499,957,965,575 9,222,108,554,749 8.5%

TOTAL LIABILITIES AND EQUITY 11,315,061,275,026 12,017,762,708,954 6.2%

31 December 2013

(Audited)

30 September 2014

(Unaudited)


YTD 09 2014

44

Consolidated Balance Sheets

NET SALES 11,439,694,257,742 12,758,469,473,880 11.5%

COST OF GOODS SOLD 5,868,531,191,229 6,627,470,848,873 12.9%

% to NS 51.3% 51.9% 0.6%

GROSS PROFIT 5,571,163,066,513 6,130,998,625,007 10.0%

% to NS 48.7% 48.1% -0.6%

Selling Expense (3,100,768,269,863) (3,416,679,276,549) 10.2%

% to NS -27.1% -26.8% 0.3%

General and Administrative Expense (539,479,733,683) (614,133,870,380) 13.8%

% to NS -4.7% -4.8% -0.1%

Research and Development Expense (99,133,807,423) (103,209,360,512) 4.1%

% to NS -0.9% -0.8% 0.1%

Interest Expense and Financial Charges (18,152,489,660) (40,456,011,045) 122.9%

Gain (Loss) on Foreign Exchange, Net (37,520,479,944) 7,278,445,184 119.4%

Interest Income 39,196,702,266 41,990,088,627 7.1%

Gain on Sale of Property and Equipment 12,189,863,052 22,342,141,158 83.3%

Miscellaneous, Net (13,889,070,202) (40,310,736,062) -190.2%

INCOME BEFORE INCOME TAX

BENEFIT (EXPENSE) 1,813,605,781,056 1,987,820,045,428 9.6%

% to NS 15.9% 15.6% -0.3%

INCOME TAX EXPENSES, NET (412,753,035,051) (461,788,706,115) 11.9%

% to NS -3.6% -3.6% 0.0%

30 September 2013

(Unaudited)

30 September 2014



YTD 09 2014

45

Consolidated Statement of Income

INCOME FOR THE PERIOD 1,400,852,746,005 1,526,031,339,313 8.9%

% to NS 12.2% 12.0% -0.3%

OTHER COMPREHENSIVE INCOME (EXPENSES) 24,440,601,546 1,934,931,420 -92.1%

COMPREHENSIVE INCOME FOR THE PERIOD 1,425,293,347,551 1,527,966,270,733 7.2%

% to NS 12.5% 12.0% -0.5%

Income for the Period Attributable to:

Owner of the Parent 1,366,122,455,939 1,486,756,355,408 8.8%


Total 1,400,852,746,005 1,526,031,339,313 8.9%

% to NS 12.2% 12.0% -0.3%

Comprehensive Income for the Period

Attributable to:

Owner of the Parent 1,390,210,082,703 1,487,524,969,199 7.0%


Total 1,425,293,347,551 1,527,966,270,733 7.2%

% to NS 12.5% 12.0% -0.5%

Basic Earnings Per Share Attributable

to Owner of the Parent 29 32 8.8%

30 September 2013

(Unaudited)

30 September 2014


46

Consolidated Statement of Income


YTD 09 2014

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Received from Customers 12,178,139,579,866 13,811,617,870,985 13.4%

Cash Paid to Suppliers and Employees (7,632,511,878,718) (8,082,825,158,242) 5.9%

Cash provided by operations 4,545,627,701,148 5,728,792,712,743 26.0%

Receipts of Claims for Income Tax Refund 4,866,857,529 21,974,596,310 351.5%

Payments of Income Taxes (466,289,889,478) (487,114,072,241) 4.5%

Payments of Other Operating Expenses, Net (3,366,976,858,046) (3,610,163,363,492) 7.2%

Net Cash Provided by Operating Activities 717,227,811,153 1,653,489,873,320 130.5%

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Sale of Other Current Financial Assets 190,934,110,817 103,247,693,333 -45.9%

Interest Income Received 38,313,551,258 42,192,422,578 10.1%

Proceeds from Sales of Property, Plant, and Equipment 18,120,095,759 25,430,181,489 40.3%

Acquisitions of Property, Plant and Equipment (782,408,022,837) (610,515,106,319) -22.0%

Placements in Other Current Financial Assets (121,952,000,000) (110,613,567,647) -9.3%

Acquisitions from Other Investing Activities, Net (14,063,983,819) 518,908,685 -103.7%

Net Cash Used in Investing Activities (671,056,248,822) (549,739,467,881) -18.1%

30 September 2013


30 September 2014

(Unaudited)


YTD 09 2014

Consolidated Statement of Cash Flows

47

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Bank Loans 815,284,153,306 1,844,926,182,883 126.3%

Receipts of Capital Contributions from

Subsidiaries' Non-controlling Interest 17,672,394,870 4,887,332,280 -72.3%

Payments of Bank Loans (711,083,093,619) (2,030,290,843,648) 185.5%

Payments of Interest Expense and Financial Charge (17,679,252,523) (41,335,437,964) 133.8%

Payments of cash Dividend Company (889,306,918,544) (795,709,464,371) -10.5%

Subsidiaries (9,963,816,571) (11,316,521,990) 13.6%

Payments of Pension Funds (18,154,657,561) (19,597,768,441) 7.9%

Payments of Obligations under Finance Leases (222,403,962) (87,575,061) -60.6%

Net Cash Provided by (Used in) Financing Activities (813,453,594,604) (1,048,524,096,312) 28.9%

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (767,282,032,273) 55,226,309,127 107.2%

Net Effect of Changes in Foreign Exchange Rates of Foreign Currency

Denominated Cash and Cash Equivalents 22,974,192,035 (4,043,934,371) -117.6%

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,829,015,133,005 1,356,186,110,248 -25.9%

CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,084,707,292,767 1,407,368,485,004 29.7%

30 September 2013


30 September 2014

(Unaudited)

Consolidated Statement of Cash Flows

48


YTD 09 2014

THANK YOU

49

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

mailto:[email protected]



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