UBS Global Consumer Conference

Transcription

1 UBS Global Consumer Conference Boston, March 2013

2 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 December 2012 indicative unaudited results of the Company. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of their respective affiliates, and their respective commissioners, directors and employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Any decision to purchase or subscribe for securities 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 absent registration or an exemption from registration. This presentation and its contents are confidential unless they are or become generally available as public information in accordance with prevailing laws and regulations (other than as a result of a disclosure by you) and must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation, including the information and opinions contained herein, is provided as of the date of this presentation and is subject to change without notice, including change as a result of the issuance of 31 December 2012 indicative 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 future operations (including development plans, objectives relating to the Company's products and services and anticipated product launches) are forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or reflection of any change in the Company's expectations 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 and industry publications which have not been independently verified, and no representation is made as to the accuracy of such information. 2

3 Table of Contents BUSINESS OVERVIEW OUR STRATEGIES IN

4 BUSINESS OVERVIEW

5 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 by segment and by geographical location for YTD December 2012 is as follows: Distribution & Logistics 38% Prescription Pharmaceuticals 24% Export, 4% Nutritionals 22% Total Sales = Rp Bn Consumer Health 16% Total Sales = Rp Bn Domestic, 96% Over 10,000 employees and a marketing and sales force of 4,000 covering 80% of the Indonesian consumer health and 100% of the Indonesian prescription pharmaceuticals market 5

6 Indonesia s Health Spending Trends Total expenditure on health averaged 2.1% of GDP over the 11 year period In Q4 2009, the new Healthcare Law has been approved and provides guideline for Government to increase the healthcare spending from 2% up to 5% of GDP. Law on National Social Security System has been passed since 2004, but implementation regulation on Social Security Provider Body (BPJS) has just been passed in October There will be two BPJS: BPJS Health (Jan 1, 2014) and BPJS Labor (Jul 1, 2015) (Rp Tn) Growth of 14.1% Total Healthcare Expenditure % 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% % Healthcare Expenditure/GDP % 3.8% 3.5% 3.3% 2.1% Malaysia Thailand Philippines India Singapore Indonesia Source : Business Monitor International: Pharmaceutical & Healthcare Report, Q (Indonesia, Malaysia, Thailand, Philippines, India, Singapore) Share of Total Health Expenditure (%) public private out-of-pocket private F 2012F 2013F 2014F 2015F Source : Business Monitor International: Pharmaceutical & Healthcare Report, Q (Indonesia, Malaysia, Thailand, Philippines, India, Singapore) Source: The World Bank 6

7 Indonesian Pharmaceuticals Market Highly Fragmented Industry with more than 200 Pharmaceutical Players Total Market (ITMA) YTD Pharmacy (IPA) YTD Hospital (IHPA) YTD KALBE GROUP 13% a 5% b 5% c 5% d 5% e 4% f 3% KALBE GROUP 8% a 7% b 6% c 5% d 4% e 4% f 3% KALBE GROUP 9% a 7% b 7% c 5% d 4% e 4% f 4% OTHERS 60% OTHERS 63% OTHERS 60% Total Market = Rp 43.1Tn Total Market = Rp 7.9Tn Total Market = Rp 13.8Tn Source : IMS Health Prescription Pharmaceuticals YTD (Ethical + OTC) 7

8 Prescription Pharmaceuticals Division Comprehensive Product Range Targeted to All Income Groups Sales Contribution By Product Categories YTD Unbranded Generics 10% Licensed Products 32% Branded Generics 58% Total Sales = Rp 2,412 Bn Licensed Products Branded Generics Unbranded Generics Number of Products Therapeutic Class General Anti-Infectives Hospital Solutions Oncology Blood and Blood Forming Organs Musculo-Skeletal System Alimentary Tract and Metabolism General Anti-Infectives Central Nervous system Musculo-Skeletal System Cardiovascular System Alimentary Tract and Metabolism General Anti-Infectives Alimentary Tract and Metabolism Cardiovascular System Central Nervous system Key Licensors 8

9 Prescription Pharmaceuticals Division New Production Facilities Completed new production facility for generic drugs in Cikarang Construction of oncology plant in Pulogadung 9

10 Consumer Health Division Strong Brand Equity with Leading Market Position Market share of Kalbe s brands YTD December 2011 Therapeutic Class Kalbe s Products Market Share by Volume Antacid Promag, Waisan 77.4%* Anti Diarrhea Neo Entrostop 44.8%** Cough Remedies Komix, Woods, Mextril, Mixadin 39.1% Cold Remedies Mixagrip Reg, Mixagrip FB, Procold 35.9% Multivitamin & Vitamin C Cerebrovit, Fatigon, Sakatonik Liver, Xon-Ce 42.2% Children Multivitamin Cerebrofort, Sakatonik ABC 21.1% Energy Drink ExtraJoss 23.8% Source : AC Nielsen jaguar method, based on volume (unit) Note : * urban data only ** based on AC Nielsen August

11 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 Clinical 11

12 Nutritionals Division Relatively Low Milk per Capita Consumption Milk per Capita Consumption (kg) -2.3% 1.6% 0.5% 2.7% 1.1% 1.6% 0 Indonesia Thailand Philippines Malaysia Vietnam South Korea Source: FAPRI (Food & Agricultural Policy Research Institute) for whole milk powder, liquid milk and non fat dry milk categories = Real Data; = Projection Note : %growth represents 6 years ( ) CAGR 12

13 Business Overview 2012 Launched new innovative products Acquisition of PT Hale International Established a joint venture company PT Kalbe Milko Indonesia 13

14 Nutritionals Division Multi Channel Customer Touch Points Kalbe e-store - the 1 st Online Nutrition Store in Indonesia Nutritionals Division launched new channel of consumer order through hotline service Kalbe Home Delivery and online shopping through Kalbe Family Reward Card offers point rewards for consumers to increase Kalbe products consumption. 14

15 Distribution & Logistics Division The Most Extensive Distribution Network RDC 2 Branches Cities

16 Distribution & Logistics Division Major Third Party Principals by Category Expansion of distribution and logistics facilities Banjarmasin Jember Surakarta Banda Aceh Denpasar Multi-channel customer touch points : Kalbe e-store, Kalbe Family Rewards Card, Kalbe Home Delivery, Kalbe Customer Care Continued to improve retail health service business model : Mitrasana Clinic 4-in-1 concept : family doctor, pharmacy, laboratory, and convenient store. To date, Kalbe has opened 39 Mitrasana clinics in Jakarta and its Greater Area. 16

17 Distribution & Logistics Division Major Third Party Principals by Category Prescription Pharmaceuticals Consumer Medical Instrument & Diagnostic Fine Chemical Raw Materials 17

18 International Overview 2012 Continued regional expansion Long-lasting kick Diabetasol and Extra Joss Events in the Philippines 18

19 Indicative Results 2012 Strong Top Line Growth in All Segments Net Sales (in Rp Bn) 24.9% 31 Dec 2011 (Audited) 31 Dec 2012 (Unaudited) 13,630 10, % 2, % 3,288 1, % 2, % 2,420 3,012 3,873 5,179 Prescription PharmaceuticalsConsumer Health Nutritionals Distribution & Logistics Consolidation 19

20 Indicative Results 2012 Improved operating expenses efficiency Gross Profit Margin Operating Expenses to Net Sales Ratios 50.9% - 3.0% 47.8% 32.8% 31.6% 0.8% 0.7% 5.4% 4.9% -1.2% Selling & Marketing 26.6% 26.0% General & Administrative Research & Development 31 Dec 2011 (Audited) 31 Dec 2012 (Unaudited) 31 Dec 2011 (Audited) 31 Dec 2012 (Unaudited) Gross Profit Margin decreased by 3.0% mostly due to change in business mix. Improved Operating Expenses to Net Sales Ratio by 1.2% due to strong sales growth. 20

21 Indicative Results 2012 Strong Earnings Growth Income Before Tax (in Rp bn) Net Income (in Rp bn) +15.1% 2, % 1,732 1,987 1, Dec 2011 (Audited) 31 Dec 2012 (Unaudited) 31 Dec 2011 (Audited) 31 Dec 2012 (Unaudited) Income before tax margin declined from 18.2% in 2011 to 16.8% in 2012 Net income margin declined from 13.6% in 2011 to 12.7% in

22 OUR STRATEGIES IN

23 Strategies for Improve marketing and sales effectiveness CORPORATE BRANDING 2. Strengthen business portfolio through innovation and M&A 23

24 Strategies for Go global deeper ASEAN penetration with more product offering 4. Expand distribution coverage New RDC New branches and existing branch capacity expansion Additional trucks & motorcycles 5. Enhance human capital development 24

25 Outlook 2013 Earnings Guidance 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 Tn for production capacity and distribution network expansion Cancellation of Treasury Stocks - subject to shareholders approval in EGMS in May

26 THANK YOU For further information: PT Kalbe Farma Tbk. Jalan Let.Jend. Suprapto Kav. 4 Jakarta 10510, Indonesia Tel. : Fax. : vidjongtius@kalbe.co.id jhandajani@kalbe.co.id investor.relations@kalbe.co.id Website : 26