PT INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK Update - 1 st Quarter 2014 1
Disclaimer No representation or warranty is made as to the accuracy, completeness or reliability of the information in the presentation. No copy or use of this presentation should occur without the permission of PT Industri Jamu Dan Farmasi Sido Muncul Tbk. This presentation should not be relied upon as a recommendation or forecast by PT Industri Jamu Dan Farmasi Sido Muncul Tbk. Nothing in this release should be construed as either an offer to buy or sell or a solicitation of an offertobuyorsellsharesinanyjurisdiction. 2
LIST OF CONTENT 1 COMPANY OVERVIEW 4 OVERVIEW OF HERBAL MEDICINE INDUSTRY 2 INVESTMENT HIGHLIGHTS 5 FINANCIAL HIGHLIGHTS 3 BUSINESS OVERVIEW 3
COMPANY OVERVIEW
COMPANY OVERVIEW The Company was established in 1975 and is domiciled in Semarang and is primarily engaged in pharmaceutical and herbal medicine industry and general trading. Currently, the Company operates a factory located at Jl. Soekarno Hatta km 28, Bergas Sub-District, Klepu, Semarang. The total area of the Company s factory is 34 Ha with total building area of approximately 8,6 Ha The Company has a distribution network that is divided into 3 areas, covering west Indonesia, middle Indonesian and East Indonesia. Currently, the Company also distribute its products to several countries in America, Europe, Australia, Asia and Africa. The Company continues to maintain product quality and innovation, creating safe and efficacious products in order to accommodate the health need of public. 5
COMPANY S HISTORY 1997-2000 To anticipate the improvement in the future, Company built a larger factory and modern in 1997 in Klepu, Ungaran. The factory was inaugurated in 2000. 2013 Initial Public Offering of Company 1984 Pabrik was transferred to Lingkungan Industri Kecil in Jl Kaliwage, Semarang to increase the production capacity. 1970 A limited partnership was established under the name CV Industri Jamu & Farmasi Sido Muncul. 2009 The Company established PT Semarang Herbal Indo Plant which has business activity of processing extract herbal, trading, land transportation, and agriculture 1940 The company began as a home industry managed by Mrs. Rahkmat Sulistio in Yogyakarta 1986 The Company established PT Muncul Mekar which has business activities of trading, transportation, and agriculture 1975 The business of herbal medicine industry transformed into a limited liability company under the name PT Industri Jamu & Farmasi Sido Muncul 1951 Sido Muncul was established as a modest company which means "A dream comes true" 6
MANAGEMENT TEAM BOARD OF COMMISSIONER Sigit Hartojo Hadi Santoso President Commissioner Johan Hidayat Commissioner Budi Setiawan Pranoto Independent Commissioner THE MANAGEMENT OF THE COMPANY HAS DEEP UNDERSTANDING & LONG EXPERIENCE IN JAMU & HERBAL MEDICINE INDUSTRY IN INDONESIA BOARD OF DIRECTORS Irwan Hidayat President Director Sofyan Hidayat Director David Hidayat Director Revi Firmansjah Director 7
VISION DAN MISSION VISION MISSION Become herbal medicine, health foodbeverage and herbal raw material processing company that provides benefit to the society and environment. Develop herbal-based products that are rational, safe and truthful and are based on scientific research. Develop continuous research on herbal medicines Assist and encourage the government, educational institutions, medical professionals to play more active roles in research and development of traditional medicines and medications. Improve public awareness on the importance of maintaining health through healthy lifestyle, the use of natural ingredients and naturopathy medication. Conduct intensive corporate social responsibility (CSR) Manage an environmentally friendly company To become a worldwide herbal medicine company 8
COMPANY SHAREHOLDING STRUCTURE AFTER INITIAL PUBLIC OFFERING DESY SULISTIO HIDAYAT IRWAN HIDAYAT SOFYAN HIDAYAT JOHAN HIDAYAT DAVID HIDAYAT SANDRA LINATA HIDAYAT PUBLIC 40.05% 8.10% 8.10% 8.10% 8.10% 8.10% 19.00% 99.99% 99.99% 9
INVESTMENT HIGHLIGHTS
INVESTMENT HIGHLIGHTS Largest herbal medicine and healthy products Company with solid and long track record 1 Strong brand equity and market share leader 2 Product innovation 3 Strong distribution network 4 Vertically integrated business model 5 Intensive R&D 6 11
BUSINESS OVERVIEW
COMPANY S PRODUCTS The Company has over 200 products. The followings are some examples of the Company s major selling products. HERBAL MEDICINE CATEGORIES ENERGY DRINK Tolak Angin Variants Traditional Herbal Medicine HEALTHY DRINK CANDY & DRINKS SUPPLEMENTS & OTHERS 13
PRODUCTION FACILITIES AND SUPPORT SEMARANG Currently, Company has a factory in Jalan Soekarno Hatta Km. 28 Kecamatan Bergas - Klepu, Semarang. Company has equipped the factory with various supporting facilities which have been fulfilled the pharmacy standard. Those are the supporting facilities in the factory: FACILITIES AND PRODUCTION MACHINE WITH CPOB DAN CPOTB STANDARIZATION CERTIFIED LABORATORY ISO-17205 DEMINERALIZATION WATER TREATMENT AND DISPOSAL HOLISTIC CLINIC AGROWISATA LAND 14
RAW MATERIAL HANDLING SIMPLICIA SORTING WASHING CLEAN SIMPLICIA DRYING 15
CLEAN SIMPLICIA EXTRACTION PROCESS FORMULATION ROUGH MILLING PERCOLATION MILLING DRYING STERILIZATION EVAPORATION PACKAGING POWDER EXTRACT PACKAGING LIQUID & CONDENSED EXTRACT 16
RAW MATERIAL POWDER HERBAL MEDICINE PROCESS FORMULATION ROUGH MILLING DRY FRYING PACKAGING MIXING SIEVING FINE MILLING 17
EXTRACT INSTANT POWDER HERBAL MEDICINE PROCESS Others Material Others Material MIXING DRYING MILLING MIXING SIEVING PACKAGING 18
PILL PROCESS Others Material EXTRACT MIXING MOULDING DRYING PACKAGING TABLET PROCESS Bahan Pembantu EXTRACT MIXING DRYING MOULDING PACKAGING 19
CAPSULE PROCESS EXTRACT Others Material MIXING DRYING FILLING SORTING PACKAGING 20
EXTRACT LIQUID PROCESS MIXING Others Material COOKING COOLING FILLING PACKAGING QUARANTINE 21
EXTRACTION Others Material CANDY PROCESS MIXING COOKING MOULDING COOLING PACKAGING 22
DISTRIBUTION SYSTEM The Company is supported by over 108 Sub-Distributors and over 160,000 wholesalers that cover 76 major cities in Indonesia FACTORY Medan Tarakan JAKARTA & WEST INDONESIA MAIN DISTRIBUTION CENTRAL JAVA EAST JAVA & EAST INDONESIA Batam Padang Jambi Bangka BelitungKetapang Bengkulu Palembang Bandar Lampung Pontianak TangerangJakarta Madura PurwakartaCilacap Yogyakarta Solo Bali Cilacap JombangSurabaya Samarinda Palu Banjarmasin Makassar Lombok Sumbawa Tobelo Manado Ternate Gorontalo Kendari Kupang Atambua Ambon Biak Sorong Manokwari Nabire Timika Jayapura Merauke WHOLESALE, SUPERMARKET, STORE, RETAILER JAKARTA & WEST INDONESIA CENTRAL JAVA EAST JAVA & EAST INDONESIA END CUSTOMER Tangerang, Kebon Jeruk, Bekasi, Cipete, Karawang, Cawang, Tambun, Pondok Labu, bangka, Belitung, Padang, Jambi, Bengkulu, Pontianak, Palembang, Pekanbaru, Bandar Lampung, Batam, Ketapang, Medan Yogyakarta, Tegal, Solo, Rembang, Majenang, Semarang, Kebumen, Cilacap, Purwokerto Surabaya, Jember, Panorogo, Tuban, Bali, Kediri, Banyuwangi, Madura, Bojonegoro, Jombang, Sidoarjo, Gresik, Banjarmasin, Sampit, Pangkalan, Bundar, Samarinda, Berau, Tarakan, Lombok, Sumbawa, Pasuruan, Lumajang, Malang, Kupang, Atambua, Ruteng, Ende, Maumere, Makassar, Kendari, Palu, Gorontalo, Manado, Luwuk, Ternate, Tobelo, Ambon, Sorong, Nabire, Jayapura, Biak, Merauke, Manokwari, Timika 23
INTERNATIONAL DISTRIBUTION NETWORK The Company products are sold in some countries in America, Europe, Asia, Africa and Australia due to the higher demand of Company s products. KANADA MONGOLIA AMERIKA SERIKAT ALGERIA JORDAN AFGANISTAN KOREA QATAR HONGKONG SURINAME NIGERIA MALAYSIA BRUNEI DARUSSALAM GHANA SINGAPURA MAURITIUS AUSTRALIA 24
MARKETING STRATEGY The Company has succesfully implemented Integrated Marketing Communication Plus (5PTR) Strategy to maximize the brand equity and sales. 5PTR PRODUCT RELATIONSHIP 25
AWARDS AND CERTIFICATIONS The Company has received over 100 certifications and awards from various parties. The following are selected certifications, awards, and recognitions MINISTRY OF HEALTH BLOOMBERG BUSINESSWEEK & FRONTIER CONSULTING GROUP CPOB AND CPOTB CERTIFICATE The first Herbal Company in Indonesia with pharmacy standard CORPORATE IMAGE AWARD Traditional Herbal Medicine Category 2012 MARKETEERS MAGAZINE IN COLLABORATION WITH MARKPLUS INSIGHT INDONESIA BRAND CHAMPION Herbal Medicine Category 2013 and Minor Health Category Pro 2013 Tolak Angin MARKETING MAGAZINE IN COLLABORATION WITH FRONTIER CONSULTING GROUP TOP BRAND AWARD 2013 Tolak Angin and Kuku Bima FRONTIER CONSULTING GROUP & SWA MAGAZINE ICSA 2012 The Best in Achieving Total Customer Satisfaction Kuku Bima TL SWA & MARS MAGAZINES INDONESIA BEST BRAND AWARD 2012 Tolak Angin 26
HERBAL INDUSTRY AT A GLANCE
DOMESTIC SUPPLIES DISTRIBUTION OF TRADITIONAL MEDICINE AND BPOM REGISTERED PRODUCT COMPANIES (2012) SUMMARY OF DISTRIBUTION OF TRADITIONAL MEDICINE AND BPOM REGISTERED PRODUCT COMPANIES (2008-2013) 297 275 Jumlah Number Perusahaan of Company 222 183 75 55 24 38 8 15 9 1 9 4 10 16 33 39 1 11 1 4 3 8 17 Aceh Darussalam Sumatera Utara Sumatera Barat Jambi Riau Bangka Belitung Sumatera Selatan Lampung Banten Jawa Barat DKI Jakarta Jawa Tengah DI Yogyakarta Jawa Timur Bali Kalimantan Barat Kalimantan Selatan Kalimantan Tengah Kalimantan Timur Nusa Tenggara Barat Nusa Tenggara Timur Sulawesi Selatan Sulawesi Tenggara Sulawesi Utara Maluku Source: Capricorn Indonesia Consult, September 2013 No. Province Company Brand 1. North Sumatera 41 125 2. Banten 43 404 3. West Java 124 1,044 4. DKI Jakarta 114 785 5. Central Java 112 2,443 6. DI Yogyakarta 35 208 7. East Java 131 992 8. Bali 4 27 9. South Kalimantan 10 46 10. South Sulawesi 16 29 Source: Capricorn Indonesia Consult, September 2013 In 2012, there are 1,358 herbal medicine companies where about 78% from total is from Java and there are 6,176 registered herbal medicine brand in BPOM (Indonesia s Food & Drug Administration) during the period 2008 May 2013. 28
HERBAL MEDICINE PRODUCTION GROWTH HERBAL MEDICINE PRODUCTION GROWTH IN INDONESIA Source: Capricorn Indonesia Consult, September 2013 The higher demand of herbal medicine market has prompted some big herbal medicine companies increase their production by continuing to research and improvements in production technology. In this condition, the production of Indonesian herbal medicine in the last 5 years has increased quite high, averaging 34% per year (CAGR). 29
HERBAL MEDICINE CONSUMPTION AND PHARMACY GROWTH OF HERBAL MEDICINE CONSUMPTION IN INDONESIA (in kilograms) GROWTH OF HERBAL MEDICINE CONSUMPTION BASED ON TYPE (in kilograms) 20,818,639 13,888,553 15,504,572 10,336,958 6,246,899 8,486,411 11,655,233 7,768,761 5,650,233 4,153,752 3,637,594 2,680,585 1,968,216 4,846,384 6,298,019 124,931 155,593 248,879 321,229 632,067 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Liquid Powder Tablet Source: Capricorn Indonesia Consult, September 2013 Source: Capricorn Indonesia Consult, September 2013 Consumption of herbal medicine in Indonesia in the period 2008-2012 increased by 35.1% Consumption of herbal liquid and tablet continues to rise, while the powder type tends to fall. The medicine herbal consumers lately tend to prefer the practical way consumption in liquid and tablet/caplet form. 30
COMPANY S POSITION HERBAL MEDICINE COLD SYMPTOMS Increased consumption of herbal medicine coupled with an increasingly modern production technology has led to the production of herbal medicine increased rapidly. In the period 2008-2012, the production of herbal medicine colds recorded increased an average of 34% per year. Production of herbal medicine which in 2008 amounted to 3,941.8 tonnes in 2012 has increased to 12,709.1 tons PRODUCTION OF HERBAL MEDICINE COLD SYMPTOMS TOLAK ANGIN MARKET SHARE (in kilogram) 12,709,147 No. Company Brand Market Share 9,518,534 1. Sidomuncul Tolak Angin 75.10% 3,941,845 5,291,927 7,203,371 2. Competitor 1 Herbal Medicini 1 5.00% 3. Competitor 2 Herbal Medicine 2 2.00% 4. Competitor 3 Herbal Medicine 3 1.02% 5. Others (below 1%) - 16.88% Sumber: Capricorn Indonesia Consult, September 2013 2008 2009 2010 2011 2012 Source: Capricorn Indonesia Consult, September 2013 31
COMPANY S POSITION ENERGY DRINK Market demand and industry developments have prompted increased production of energy drinks in Indonesia. During the period 2008-2012 the production of energy drinks in Indonesia on average each year increased 23.9%. Production of energy drinks in 2008 amounted to 425.8 million liters, and continue to increase to 1 billion liters by 2012. PRODUCTION OF ENERGY DRINK ENERGY DRINK MARKET SHARE (in liters) 425,820,849 528,904,296 651,359,970 832,834,638 1,001,966,600 No. Company Brand Market Share 1. Sidomuncul Kuku Bima Ener-G 60.02% 2. Competitor 1 Energy Drink 1 12.01% 3. Competitor 2 Energy Drink 2 8.01% 4. Competitor 3 Energy Drink 3 4.01% 5. Competitor 4 Energy Drink 4 2.32% 6. Others (below 1%) 13.63% 2008 2009 2010 2011 2012 Source: Capricorn Indonesia Consult, September 2013 Source: Capricorn Indonesia Consult, September 2013 32
FINANCIAL PERFORMANCE
PRODUCT CONTRIBUTION Sales Mix GROSS PROFIT MIX 2% 1% 1% 0% 2% 1% 7% 6% 1% 8% 1% 1% 10% 8% 11% 7% 10% 7% 2% 3% 1% 4% 2% 1% 4% 1% 4% 3% 5% 2% 1% 9% 3% 7% 1% 7% 64% 61% 53% 43% 40% 37% 47% 46% 35% 24% 21% 22% 26% 27% 33% 43% 42% 46% 2010 2011 2012 2013 Mar-13 Mar-14 (Unaudited) PRODUCT CONTRIBUTION TO SALES Per 31 Mar 2014 (Unaudited) 47% 47% 56% 66% 62% 67% 2010 2011 2012 2013 Mar-13 Mar-14 (Unaudited) PRODUCT CONTRIBUTION TO GP Per 31 Mar 2014 (Unaudited) Healthy Drink Beverage & 8% Confectionery 8% Energy Drink 37% Others 1% Herbal Medicine 46% Beverage & Confectioner y 3% Healthy Drink 7% Energy Drink 22% Others 1% Herbal Medicine 67% 34
PRODUCT CONTRIBUTION (in Million Rupiah) Sales Mix GROSS PROFIT MIX 12,203 9,887 14,414 20,380 4,823 5,131 30,068 32,282 59,149 148,717 42,857 42,725 139,762 229,729 266,666 159,646 54,672 38,963 9,616 7,939 11,412 17,374 1,687 2,618 17,421 19,116 34,039 53,616 17,093 36,857 13,672 41,376 33,031 16,285 5,844 13,122 321,243 243,988 37,926 42,273 1,013,114 223,090 192,153 321,891 401,669 1,201,982 1,339,653 1,266,185 482,523 586,722 785,253 1,030,507 238,200 241,055 2010 2011 2012 2013 Mar-13 Mar-14 (Unaudited) 319,913 412,108 512,577 662,244 111,252 131,704 2010 2011 2012 2013 Mar-13 Mar-14 (Unaudited) 35
BALANCE SHEET ANALYSIS (in million Rupiah) 290,202 346,409 1,168,658 535,344 2,150,999 1,304,651 2,951,507 2,625,456 1,980,975 1,452,671 2,946,025 2,741,366 2010 2011 2012 2013 Mar-13 Mar-14 Asset Equity (Unaudited) The Company s Asset & Equity increased in the last four years, with CAGR of assets and equity respectively 117% and 96%. The Company s Asset & Equity growth y.o.y Mar 2014 respectively 49% and 89% 36
INCOME STATEMENT ANALYSIS SALES NET PROFIT (in million Rupiah) (in million Rupiah) 1,866,538 2,198,273 2,391,667 2,372,364 563,642-8% 520,027 237,169 339,935 387,538 406,936 78,320 115,910 2010 2011 2012 2013 Mar-13 Mar-14 (Unaudited) 2010 2011 2012 2013 Mar-13 Mar-14 (Unaudited) The Company s sales y.o.y Mar 2014 decline by -8% and net profit growth by 48%. The increasing of Company s net profit y.o.y Mar 2014 caused by sales mix and the increase of financial income.. 37
FINANCIAL RATIO ANALYSIS Description 31 March 2014 (Unaudited) 31 December 2013 31 December 2012 31 December 2011 31 December 2010 Sales Growth, yoy -7.7% -0.8% 8.8% 17.8% n.a Gross Profit Growth, yoy 8.8% 9.8% 4.9% 28.0% n.a Operating Profit Growth, yoy 19.0% 2.4% 14.9% 31.0% n.a Net Profit Growth, yoy 48.0% 5.0% 14.0% 43.3% n.a Gross Margin 37.7% 42.6% 38.5% 39.9% 36.7% Operating Margin 23.0% 21.8% 21.1% 20.0% 18.0% Pre-tax Margin 28.3% 24.6% 21.5% 20.7% 18.2% Net Profit Margin 22.3% 17.2% 16.2% 15.5% 12.7% Return On Assets - 13.8% 18.0% 29.0% 26.6% Return on Equity - 15.5% 29.7% 63.5% 68.4% 38
Main Office: Gedung Menara Suara Merdeka Lantai 16 Jl Pandanaran No.30 Semarang 50134, Indonesia Phone: (+6224) 7692-8811 Fax: (+6224) 7692-8815 Website: www.sidomuncul.com Factory: Jl Soekarno Hatta km 28 Kecamatan Bergas, Klepu Semarang 50552, Indonesia Phone: (+62298) 523-515 Fax: (+62298) 523-509 T H A N K Y O U39
BALANCE SHEET (in million Rupiah) Description 31 March 2014 (Unaudited) 31 December 2013 31 December 2012 31 December 2011 31 December 2010 ASSET Current Asset 2,201,449 2,366,910 1,584,850 743,798 639,127 Non-Current Asset 744,576 584,597 566,149 424,860 251,075 LIABILITIES Current Liabilities 205,710 324,747 837,684 360,667 267,357 Non-Current Liabilities -1,051 1,304 8,664 272,647 276,436 EQUITY 2,741,366 2,625,456 1,304,651 535,344 346,409 TOTAL LIABILITIES AND EQUITY 2,946,025 2,951,507 2,150,999 1,168,658 890,202 40
INCOME STATEMENT (in million Rupiah) Description 31 March 2014 (Unaudited) 31 December 2013 31 December 2012 31 December 2011 31 December 2010 Sales 520,028 2,372,364 2,391,667 2,198,273 1,866,538 Cost of Goods Sold (323,915) (1,361,583) (1,471,020) (1,320,584) (1,180,604) Gross Profit 196,113 1,010,781 920,647 877,689 685,934 Selling and Marketing Expenses (53,455) (341,463) (336,690) (337,612) (218,599) General and Administrative Expenses (23,196) (152,907) (79,604) (101,128) (132,263) Other Finance Income 28,559 134,601 5,905 11,215 6,653 Other Finance Cost (1,999) (13,256) (708) (606) (3,875) Other Income 2,196 23,869 6,628 7,754 5,694 Other Expense (1,264) (78,967) (2,557) (2,268) (4,353) Profit before Income Tax 146,953 582,658 513,621 455,044 339,191 Income Tax Expenses (31,043) (176,715) (126,083) (115,109) (102,022) Other Comprehensive Income - 993 - - - Comprehensive Income for the Year (Net of Tax) 115,910 406,936 387,538 339,935 237,169 41
CASHFLOW STATEMENT (in million Rupiah) Description 31 March 2014 (Unaudited) 31 December 2013 31 December 2012 31 December 2011 31 December 2010 Net Cash Provided by Operating Activities Net Cash Used in Investing Activities (14,934) (54,114) (16,446) 182,793 299,321 34,246 (193,475) (179,925) (206,780) (95,542) Net Cash Used in Financing Activities - 1,185,813 485,527 (131,755) (55,465) NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 19,312 938,224 289,157 (155,742) 148,314 1,348,955 410,731 121,574 277,316 128,767 1,368,267 1,348,955 410,731 121,574 277,316 42