Indicative 2016 Results (Unaudited) February 2017
Table of Contents 2 Macro Overview 3 Business Overview 35 Indicative 2016 Results 14 3 2017 Outlook 20 3
Macro Overview Gradual Recovery 3 1. Growth Improvement and Low Inflation 2015 2016 4.72% 4.67% 4.73% 4,79% 5,02% 5.04% 5.18% 5.02% 4.91% 4.94% 3. Government Infrastructure Projects 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q GDP growth increased from 4.79% in 2015 to 5.02% in 2016, driven by private consumption, investment, and pick up in mining, manufacturing, and construction sectors. Inflation was recorded at 3.0% - 3.2% supported by low energy prices, limited domestic demand, and relatively solid Rupiah exchange rate. 2. Rupiah Strengthening in 2016 2.7% more positive sentiment, stable economy and tax amnesty program Source : Bank Indonesia Infrastructure projects continue to contribute to growth 4. ASEAN Economic Community International expansion opportunity Non-tariff barriers remain a challenge 5. Regulatory Update Government Stimulus Package 10-100% foreign ownership in pharmaceuticals raw materials - Pharmaceuticals finished goods sector remains capped at 85% Source : BKPM
Healthcare Industry National Health Insurance Progress 4 JKN Coverage 2019 2016 2014 133mn people 2015 158mn people 170mn people Target : 250mn people (100% coverage) Healthcare Allocation in 2017 Government Budget Source : BPJS Kesehatan JKN Highlights & Outlook Reported a deficit of Rp 6.7 trillion (Sept 16) BPJS Kesehatan Regulation No. 4 year 2016 regarding Implementation Coordination of Benefit (COB) Source : BPJS Kesehatan, BPJS Online Source : Ministry of Finance
Section 2 Business Overview 5
Our Business Strengthening Our Footprints as a Health Care Company 6 What Business Are We In Mission Vision Strategy Values We are an Innovative Health Care Business providing Health Care Products & Its Related Services To improve health for a better life To be the best Indonesian Global Health Care company driven by innovation, strong brands and excellent management We are dedicated to provide comprehensive healthcare solution throughout one s lifetime by : 1. Sustainable Growth 2. Innovation, Quality, and Productivity 3. World Class Competence & Organization We believe in Kalbe Panca Sradha : Trust, Mindfulness, Innovation, Strive to be the best, Interconnectedness
Our Strategic Focus 2017 Corporate Initiatives 7 *ERM : Enterprise Risk Management SCM : Supply Chain Management
Key Achievements & Activities Corporate Initiatives 8 Collaborative Innovation JV PT Media Komunika Teknologi Visit by head of BPOM Kalbio Global Medika JV Kalbe Genexine Biosimilar Factory JV PT Kalbe Milko Indonesia JV PT Kalbe Blackmores Nutrition
Key Achievements & Activities Corporate Initiatives 9 Leadership Development Kalbe Middle Management Program Finance Officer Development Program Kalbe Learning Center Training Programs Business Structure & Portfolio Oncology Factory Biosimilar Factory Stem Cells and Cancer Institute
Key Achievements & Activities Corporate Initiatives 10 Business Structure & Portfolio Customer Relationship Management Kalbe Customer Care Kalbe Home Delivery KALCare Experiential Store Kalbe Family Rewards Card Digital Platform Services Mobile Applications Utilization Mommychi Mom & Child Mobile Application Diabetes Solution Center KalbeMed Mobile Application Mobile Application
Key Achievements & Activities Corporate Initiatives 11 Business Structure & Portfolio International Expansion In Store Sampling & Selling for Hydrococo Community and Product Sampling of Fitbar PICC Putrajaya Baby Fair Malaysia UAE Philippines Nigeria Myanmar Vietnam Pharma Actvities in Oncology Department Medical Seminar of Diabetasol with MMDA (Myanmar Diabetic Association) Product Sampling of Morinaga in Victoria Kids Day at Victoria Hospital Sampling activity in Vietnam
Key Achievements & Activities Corporate Initiatives 12 Business Structure & Portfolio Customer Engagement Events 2016 Indonesia Lawan Diabetes Diva Beauty Yoga Milna Hari Aksi Peduli Gizi Fitbar Donor Kalori Prenagen Pregnancy Educational Journey Indonesia Tangkal Kolesterol Dunia Generasi Platinum Goes to School Posko Mudik ChilGo
Key Achievements & Activities Corporate Initiatives 13 Enterprise Risk Management (ERM) Quality Assurance & Financial Compliance Supply Chain Management (SCM) Powdered milk capacity expansion New liquid milk factory Distribution Infrastructure
Section 3 Indicative 2016 Results 14
Consolidated Operational Performance Positive Top Line Growth 15 Net Sales - Unaudited (in Rp Bn) 31 Dec 2015 31 Dec 2016 (Unaudited) 17,887 8.3% 19,367 4.1% 11.1% 9.7% 8.6% 4,293 4,468 3,066 3,408 5,114 5,611 5,414 5,880 PRESCRIPTION PHARMACEUTICALS CONSUMER HEALTH NUTRITIONALS DISTRIBUTION & LOGISTICS CONSOLIDATED
Consolidated Operational Performance Improving Operating Margin 16 Gross Profit - Unaudited (in Rp bn) 48.0% 10.5% 49.0% 8,592 9,493 31 Dec 2015 31 Dec 2016 (Unaudited) Operating Profit - Unaudited (in Rp bn) 14.8% 2,647 15.6% 15.8% 3,060 Operating Expenses to Net Sales Ratios - Unaudited 33.2% 33.2% 0.9% 1.0% 5.3% 5.4% 27.0% 26.8% 31 Dec 2015 31 Dec 2016 (Unaudited) Selling & Marketing General & Administrative Research & Development 31 Dec 2015 31 Dec 2016 (Unaudited) Marketing efforts to drive brand awareness Research & development activities to support product development
Consolidated Operational Performance Positive Earnings Growth 17 Income Before Tax - Unaudited (in Rp bn) Net Income - Unaudited (in Rp bn) 15.2% 2,721 11.9% 15.7% 3,044 11.2% 2,004 13.5% 11.7% 2,275 31 Dec 2015 31 Dec 2016 (Unaudited) 31 Dec 2015 31 Dec 2016 (Unaudited) Better earnings growth, driven by gross profit margin improvement and operating expenses control
Working Capital Management Managing Net Operating Cycle 18 No. of days 131 132 125 128 122 131 116 123 Net Operating Cycle has increased slightly to 131 days. 48 49 47 50 46 41 49 41 End-to-end supply chain management will be implemented to overcome fluctuation in inventory 2013 2014 2015 YTD 12 2016 (Unaudited) Days of Account Receivables Days of Account Payables Days of Inventories Net Operating Cycle
Working Capital Management Rp 2.6 Trillion of Net Cash Position 19 Total Debt and Gearing Ratio Cash & Net Cash Balance 600 500 400 300 200 100 0 205 2.9% 2012 584 7.2% 2013 296 394 3.2% 3.8% 2014 Total Debt in Rp Billion 2015 282 2.4% 2016 (Unaudited) Gearing Ratio 15.0% 10.0% 5.0% 0.0% 1,860 1,655 2012 1,426 842 2013 1,895 1,598 2014 2,719 2,8872,605 2,324 2015 Cash and Cash Equivalent in Rp 2016 (Unaudited) Dividend Payment Capital Expenditure 900 850 800 750 Total Dividend* (Rp Billion) Dividend Payout Ratio (%) 60% 51% 43% 44% 42% 891 891 2011 *For Fiscal Year 2012 797 891 891 2013 2014 *Cash dividend are adjusted for stock split impact 2015 80% 60% 40% 20% 0% *in Rp Billion 783 2012 994 2013 852 930 2014 2015 1,178 2016 (Unaudited)
Section 4 2017 Outlook 20
Outlook 2017 Aiming for steady growth and stable margin 21 1. Year-on-year Sales Growth 8% - 10% 2. Operating Profit Margin 14.5% - 15.5% 3. Earnings per Share Growth 8% - 10% 4. Dividend Payout Ratio 40% - 50% Capex of Rp 1.2 Tn for production capacity and distribution network expansion.
22 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 : vidjongtius@kalbe.co.id kartika.setiabudy@kalbe.co.id investor.relations@kalbe.co.id Website : www.kalbe.co.id THANK YOU