Q Performance with Unaudited Financial Statements. Excellence and Alignment

Transcription

1 Q Performance with Unaudited Financial Statements 1

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 the 31 March 2009 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 the unaudited 31 March 2009 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 Q Highlights Double Digit Revenue Growth Up 14.1% Improved Margins Gross Profit Margin 0.9% Operating Profit Margin 0.2% Net Income Margin 0.9% Improved Working Capital Management NOC up by 1 day Stronger cash generation by Rp 264 Bn Solid Financial Position Cash Balance of Rp 1.6 Tn 3

4 Revenue Growth Revenue has increased by 14.1% to Rp 1,989 Bn in Q % 26.1% 9.2% 11.9% 14.1% Note: The figures are represented in Billion Rupiah 4

5 Sales Contribution Q (Unaudited) Q (Unaudited) Distribution & Packaging 25% Prescription Pharmaceuticals 29% Nutritionals 26% Consumer Health 20% 5

6 Indonesian Pharmaceuticals Market Pharmaceuticals Market Share ITMA Q Pharmaceuticals Market Share IHPA Q Pharmaceuticals Market Share IPA Q Total Market in value= Rp 8.2 trillion Total Market in value = Rp 2.6 trillion Total Market in value = Rp 1.6 trillion Source: IMS Health Q

7 Prescription Pharmaceuticals Division Prescription Pharmaceuticals Net Sales Q Q (in Rp billion) 15.6% (Unaudited) (Unaudited) (Unaudited) 12.4% Prescription Pharmaceuticals net sales grew 12.4% to Rp 569 Bn in Q with CAGR of 14.0% over the past 3 years. Prescription Pharmaceuticals gross profit margin was increased by 0.7% to 65.4% in Q1 2009, compared to that of the previous period. 7

8 Prescription Pharmaceuticals Division Prescription Pharma Market Share ITMA Q Prescription Pharma Market Share IHPA Q Prescription Pharma Market Share IPA Q Total Market = Rp 4.6 trillion Source: IMS Health Q Total Market = Rp 2.2 trillion Total Market = Rp 1.2 trillion 8

9 Consumer Health Division Consumer Health Net Sales Q Q (in Rp billion) -11.7% Consumer Health Top 10 Brands Sales Contribution 26.1% (Unaudited) (Unaudited) (Unaudited) Consumer Health division consists of: OTC Pharmaceuticals Energy Drink Consumer Health net sales was up by 26.1% to Rp 426 Bn in Q from Rp 338 Bn in Q Consumer Health gross profit margin was 53.7% in Q Others 29% Top 10 Products 71% Top 10 brands such as Extra Joss, Promag, Mixagrip, Fatigon, Woods, Komix and others contributed around 71% of total Consumer Health Division s sales. 9

10 Consumer Health Division Market share of Kalbe s top products as per 31 March 2009 Therapeutic Class Kalbe's Products Market Share by Volume Antacid Promag Reg, Promag DA, Waisan 84.3% Anti Diarrhea Neo Entrostop 47.1% Cough Remedies Komix, Woods, Mextril 41.5% Cold Remedies Mixagrip Reg, Mixagrip FB, Procold 36.4% Energy Drink Extra Joss 36.0% Physical / Brain Blood Cerebrovit, Fatigon 35.4% Source : AC Nielsen Q

11 Consumer Health Division OTC Market Share ITMA Q Energy Dink Market Share Q By Volume Total Market in value = Rp 3.6 trillion Source: IMS Health Q Total Market in unit = 1.3 billion Total Market in value = Rp 1.7 trillion Source: AC Nielsen MAT

12 Nutritionals Division Nutritionals Net Sales Q Q (in Rp billion) 26.8% 9.2% Nutritionals division net sales were up by 9.2% to Rp 499 Bn in Q from Rp 457 Bn in Q1 2008, with CAGR of 17.7% in the past 3 years. (Unaudited) (Unaudited) (Unaudited) Nutritionals gross profit margin was improved from 48.1% in Q to 54.2% in Q as most of raw material prices have come down. 12

13 Nutritionals Division Nutritionals Market Share YTD By Value Market share of Kalbe Nutritionals products as per March 2009 Total Market in value = Rp 2.3 trillion Source: AC Nielsen YTD Kalbe Nutritionals Products Market Share by value (%) Prenagen 54.2 Diabetasol 69.7 Milna 67.9 Morinaga BMT 9.1 Chil Mil 9.1 Chil Kid 4.7 Chil School 1.7 Entrasol

14 Distribution & Packaging Division Sales Composition Distribution & Packaging Sales Composition in Q (unaudited) Distribution & Packaging Sales Composition in Q (unaudited) Distribution Sales Q (unaudited) Packaging Sales Q (unaudited) Distribution Sales Q (unaudited) Packaging Sales Q (unaudited) 3rd Party 23% Kalbe 77% 3rd Party 65% Kalbe 35% 3rd Party 22% Kalbe 78% 3rd Party 68% Kalbe 32% 14

15 Distribution & Packaging Division Distribution & Packaging Net Sales Q Q (in Rp billion) 18.1% 11.9% Net Sales figures represent the net sales of 3 rd party principals. Distribution & Packaging division net sales grew 11.9% to Rp 495 Bn in Q Its CAGR for the past 3 years is approximately 15.0%. (Unaudited) (Unaudited) (Unaudited) Gross Profit Margin improved from 12.5% to 17.3% in Q1 2009, or increased by 4.8%. Distribution division contributed around 84% of the total Distribution & Packaging net sales. 15

16 Distribution & Packaging Division Distribution Division YTD Mar 2008 (unaudited) YTD Mar 2009 (unaudited) RMT 8% MIDI 3% Others 0% Ethical 28% RMT 7% MIDI 4% Others 0% Ethical 29% Nutrition 28% Nutrition 27% OTC 13% OTC 12% Consumer 20% Consumer 21% 16

17 Distribution & Packaging Division Packaging Division The charts below show the contribution of the revenue from Packaging Division. Q (Unaudited) Q (Unaudited) 17

18 Improved Margins 65.4% 64.7% 65.1% Gross Profit Margin Consolidated gross profit margin has improved by 0.9%, despite depreciation of IDR/USD exchange rate, by approximately 27%. Prescription Pharma Consumer Health 53.7% 54.2% 48.1% Nutritionals YTD Mar 2008 (unaudited) Q (unaudited) 12.5% 17.3% Distribution & Packaging 48.1% 47.2% 0.7% 6.1% 4.8% 0.9% 11.4% Total Consold YTD Mar 2009 (unaudited) Q (unaudited) Month end BI USD/IDR middle Change 31-Jan 9,291 11, % 28-Feb 9,051 11, % 31-Mar 9,217 11, % Average 9,186 11, % Most raw material prices have dropped, ranging from 2% to 27%. Prices Q Q Change Skim Milk Powder % Caseinate Calcium % Whey Powder % Paracetamol % Taurine % Amoxycillin % Dextrometorphan % 18

19 Improved Margins Operating Expenses to Net Sales Ratios 0.2% 0.7% In Q1 2009, total operating expenses increased by 16.7%. 0.4% 0.1% Total operating expenses to net sales ratio was up from 31.9% in Q to 32.6% in Q Operating Expense Contribution Q (Unaudited) Selling expenses contributed around 80% to total operating expenses. 19

20 Improved Margins Operating Profit Margin Operating Profit increased to Rp 308 Billion; its margin was up 0.2%, to 15.5% in Q Q (Unaudited) Q (Unaudited) Net Income Margin Net Income increased by 24.0%, from Rp 172 Bn to Rp 213 Bn in Q1 2009, with Net Income Margin rising from 9.8% in Q to 10.7% in Q Q (Unaudited) Q (Unaudited) 20

21 Improved Working Capital Management Q (Unaudited) Q (Unaudited) Change Days of Account Receivable Days of Inventory Days of Account Payable Net Operating Cycle With implementation of end to end Supply Chain Management (SCM), it has become possible to manage inventory level more efficiently. As a result, inventory turnover has been reduced by 14 days by Q Q (Unaudited) Q (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 1,908,413,945,680 2,160,566,469, ,152,523,352 Cash paid to suppliers and employees (1,188,244,803,018) (1,114,088,379,834) 74,156,423,184 Cash provided by operations 720,169,142,662 1,046,478,089, ,308,946,536 Stronger free cash flows from the operation, increased by approximately Rp 264 Bn over the Q figure. Receipts of claims for income tax refund 580,939,353 6,343,773,896 5,762,834,543 Payments of advertising, exhibition, and promotion expenses (242,523,435,567) (202,718,207,152) 39,805,228,415 Payments of income taxes (94,419,540,552) (127,942,936,929) (33,523,396,377) Payments for other operating expenses, net (225,144,973,959) (299,398,463,004) (74,253,489,045) Net Cash Provided by Operating Activities 158,662,131, ,762,256, ,100,124,072 21

22 Solid Financial Position Increased Net Cash Position Net Cash Balance Q Q (in Rp billion) Increased by Rp. 438 Bn Q (Unaudited) Q (Unaudited) Q (Unaudited) 22

23 Solid Financial Position Total Debt & Gearing Ratio Very low gearing ratio (Unaudited) (Unaudited) (Unaudited) 23

24 Share Buyback Phase Period Total Shares Repurchased Phase I 8 February August ,262,000 Phase II (until Nov 12, 2008) 17 September March ,685,500 Based on Bapepam-LK No.XI.B.3 Phase A 14 November February ,338,500 Phase B 17 February May ,031,500 TOTAL 760,317,500 Since May 19, 2009, Kalbe has continued its Share Buyback Program Based on Bapepam-LK No.XI.B.3 Phase C, with maximum shares to be repurchased equal to12.51% of outstanding shares. 24

25 Appendix 25

26 Consolidated Statements of Income Q Q In Rp Million (unaudited) (unaudited) Growth In Rp Million (unaudited) (unaudited) % Change NET SALES 1,743,278 1,988, % COGS 920,548 1,032, % % to NS 52.8% 51.9% GROSS PROFIT 822, , % % to NS 47.2% 48.1% OPERATING EXPENSES Selling 449, , , % % to NS 25.8% 26.0% General & Administration 95, , % % to NS 5.5% 5.9% Research & Development 10,569 14, % % to NS 0.6% 0.7% TOTAL OPERATING EXPENSES 555, , % % to NS 31.9% 32.6% OPERATING PROFIT 267, , % % to NS 15.3% 15.5% NET INCOME 171, , % % to NS 9.8% 10.7% Note : Financial figures based on Unaudited Consolidated Financial Statements for Q

27 Consolidated Balance Sheets Q (unaudited) Q (unaudited) In Rp Million % Change ASSETS CURRENT ASSETS Cash and cash equivalents 1,048,138 1,579, % Short term investments, net 175, , % Trade receivables 859, , % Other receivables 61,066 77, % Inventories 1,499,113 1,531, % Other current assets 416, , % TOTAL CURRENT ASSETS 4,059,608 4,592, % FIXED ASSETS 1,230,942 1,327, % OTHER NON CURRENT ASSETS 162, , , % TOTAL ASSETS 5,452,935 6,118, % Note : Financial figures based on Unaudited Consolidated Financial Statements for Q

28 Consolidated Balance Sheets In Rp Million Q Q (unaudited) (unaudited) % Change LIABILITIES CURENT LIABILITIES Short-term loans 46, , % Trade payables 525, , % Taxes payable 236, , % Accrued expenses 168, , % Other payables 48,557 55, % Current maturities of long-term debts Bonds payable, net - 260, ,700 Due to related parties 198 1, % Obligations under capital leases % TOTAL CURRENT LIABILITIES 1,026,784 1,517, % TOTAL NON CURRENT LIABILITIES 365, , % MINORITY INTEREST 664, , % Note : Financial figures based on Unaudited Consolidated Financial Statements for Q

29 Consolidated Balance Sheets Q Q In Rp Million (unaudited) (unaudited) % Change EQUITY Capital stock Issuued and fully paid - 10,156,014,422 shares 507, , % Additional paid-in capital 2,640 2, % Retained earnings Appropriated 26,032 33, % Unappropriated 3,247,639 3,897, % Treasury stock - 757,517,500 shares in 2009 and 325,475,500 shares in 2008 (383,638) (662,709) 72.7% Others (4,386) (41,830) 853.8% SHAREHOLDER'S EQUITY NET 3,396,088 3,736, % TOTAL LIABILITIES & SHAREHOLDER'S EQUITY 5,452,935 6,118, % Note : Financial figures based on Unaudited Consolidated Financial Statements for Q

30 Consolidated Statements of Cash Flows Q Q In Rp Million (unaudited) (unaudited) % Change CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 1,908,414 2,160, % Cash paid to suppliers and employees (1,188,245) (1,114,088) -6.2% Cash provided by operations 720,169 1,046, % Receipts of claims for income tax refund 581 6, % Payments of advertising, exhibition, and promotion expenses (242,523) (202,718) -16.4% Payments of income taxes (94,420) (127,943) 35.5% Payments for other operating expenses, net (225,145) (299,398) 33.0% Net Cash Provided by Operating Activities 158, , % CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales of short-term investments and time deposits 54,480 93, % Interest income received 17,669 18, % Proceeds from sale of property and equipment 2,184 5, % Placements in short-term investments and time deposits (53,153) (121,901) 129.3% Acquisitions of property, plant and equipment (76,267) (67,334) -11.7% Proceeds (payments) from other investing activities, net 2,416 (912) % Net Cash Used in Investing Activities (52,671) (72,604) 37.8% Note : Financial figures based on Unaudited Consolidated Financial Statements for Q

31 Consolidated Statements of Cash Flows In Rp Million Q Q (unaudited) (unaudited) % Change CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank loans 11,957 86, % Buyback of shares (165,326) (93,199) -43.6% Payments of bank loans (13,647) (86,917) 536.9% Payments of interest expense (11,789) (14,126) 19.8% Re-purchase of bonds (2,000) - Proceeds from other financing activities, net 826 9, % Net Cash Used in Financing Activities (179,979) (97,359) -45.9% NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (73,988) 252, % CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,116,346 1,321, % CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,048,138 1,579, % Note : Financial figures based on Unaudited Consolidated Financial Statements for Q