Pasar Farmasi Indonesia - Kalbe Farma

Company UpdateAudited FY December 2014

March 2015

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 31 December 2014 audited results of the Company. Theinformation 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 31 December 2014 audited 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 11

Financial Overview 29

Strategies and Outlook 2015 35

Appendix 40

SECTION 1

Corporate Overview

Not all collagen is the same, it’s

time to choose the right one

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 FY December 2014

is as follows:

Largest Publicly-Listed Pharmaceuticals Company in Southeast Asia

Total Sales = Rp 17,369 Bn Total Sales = Rp 17,369 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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(US

D m

m)

0

5,000

10,000

15,000

20,000

(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 came 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%

2014

2014: Completion of

Kalbe’soncology factory

SECTION 2

Market Overview



• Low healthcare expenditure to GDP.

Indonesia’s Health Spending Trends

8

JKN Coverage Roadmap

• National Health Insurance (Jaminan

Kesehatan Nasional or JKN) program has

commenced in January 2014, and covered

more than 50% of the population in 2014. JKN

targets to cover the entire Indonesian

population by 2019.

133 mnpeople *

Target 170 mn people

Target 250 mnpeople

100% coverage

* Including 76.4 mn people covered by Jamkesmas program

before the launch of JKN.

Source : Roadmap to National Health Insurance 2012 - 2019

20152014

2019

3.3%

4.1%

4.2%

4.3%

5.5%

5.8%

9.6%

18.0%

Indonesia

India

Thailand

Malaysia

China

Singapore

United Kingdom

United States

Healthcare Expenditure/GDP 2013 (%)

Source : Centers for Medicare & Medicaid Services, Office of the Actuary; United Kingdom :

Healthcare Report, Economist Intelligence Unit; Kementerian Kesehatan Indonesia, China;

Singapore Government Budget; Economic Survey, India; Frost & Sullivan

6.8 7.9 8.9 10.5 12.2

12.113.1

14.515.9

18.2

2009 2010 2011 2012 2013

Private Expenditure

Public Expenditure

21.123.4

26.4

30.4

19.0

Total Healthcare Expenditure

(USD Bn)

Source : Global Health Expenditure Database, WHO

CAGR

12.5%

38.6 43.2 47.653.8 58.2

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Pharmaceuticals Market Breakdown

9

Kalbe – No. 1 in the Pharma Industry

Kalbe continues to lead in the highly fragmented pharmaceuticals

industry with over 200 players

Total Market FY 2014 Rp 58.2Tn

OTC

41%

Ethicals

(Prescription)

59%

Branded &

Licensed

84%

Unbranded

16%

Pharma Market Breakdown

Pharma Industry

CAGR

10.8%

Market Share

Kalbe 13%

a 6%

b 5%

c 4%

d 4%

Others 68%

(in trillion Rupiah)

Source: IMS Health ITMA YTD 12 2014

Note: Restatement of 2012 IMS market data

Recent Indonesian Pharmaceuticals

Regulatory

10

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

10

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.

SECTION 3

Business Overview



• No. 1 player in Indonesian Prescription Pharma Market.

• The largest medical representatives team in Indonesia with

more than 2,500 personnel.

• Comprehensive product offerings for all income groups.

• Increasing competition following national insurance

implementation.

• Gross Profit Margin (GPM) increased from 60.8% in YTD 12

2013 to 61.1% in YTD 12 2014, mostly due to product mix.

12

Prescription Pharmaceuticals Division

Consistent Top Line Growth

+11.9%

Total Sales Rp 4,329 Bn

Market Share (ITMA)

FY 2014

Total Market = Rp 34.6Tn

KALBE GROUP

15%

a8%

b6%

c4%

d4%

e4% f

3%

OTHERS56%

Source: IMS Health Prescription Pharmaceuticals

YTD 12 2014

3,869 4,329

31 Dec 2013 (Audited)

31 Dec 2014(Audited)

Licensed Products

27.0%

Unbranded Generics

13.4%

Branded Generics

59.7%

• Completed the 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

13

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

14

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 2014, in volume

Therapeutic Class Kalbe’s Products Market Share 2014

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 Extra Joss 27.0%

KALBE GROUP

9%

a8%

b7%

c7%

d6%

e4%

f3%

g3%

Others52%

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

Energy Drink category.

• GPM increased from 53.3% in YTD 12 2013 to

55.6% in YTD 12 2014, due to product mix.


15

Strong Net Sales Performance

Energy Drink

YTD 12 2014 (Unit)

OTC

YTD 12 2014

Total Market = Rp 23.6 Tn

Source : IMS Health OTC YTD 12 2014

+16.7%

Source : AC Nielsen YTD 12 2012 and Company’s estimation 2014, in volume

2,505 2,924



Extra Joss27%

a37%

b13%

c7%

d3%

others13%

16


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

H2 – Health and HappinessSupplement product for skin care

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

17

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


18

Growth of Indonesian Powdered Milk Market

Source : AC Nielsen, YTD 12 2014

By Value (Rp Bn)By Volume (Kg ‘000)

10.4%2.2%

187,387 183,317

FY 2013 FY 2014

17,947

19,820

FY 2013 FY 2014


19

Strong Net Sales Performance

+20.8% • Strong brand awareness of existing major

products

• GPM declined to 54.8% in YTD 12 2014 from

60.3% in YTD 12 2013, mostly due to higher

raw material cost in inventory, Rupiah

depreciation and product mix.

Powdered Milk Market Share YTD 12 2014

Total Market = Rp 19.8 Tn

Source : AC Nielsen 2014, based on Value (Rp)

Kalbe’s Products Market Share 2014

Diabetasol 88.0%

Milna 68.8%

Prenagen 55.4%

Morinaga Chil Mil 9.2%

Morinaga BMT 10.9%

Entrasol 9.7%

Morinaga Chil Kid 6.8%

Zee 6.5%

Morinaga Chil School 2.7%

3,792 4,581



a29%

b24%

c13%

Kalbe Nutritionals

11%

d7%

e5%

f2%

g3%

h2%

i2%

Others2%

Launching of New Products

20


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

21


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

22

The Most Extensive Distribution Network

Branches

70 51CitiesRDC

2

17,012

1,930 687

11.3%

4.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-

5,000

10,000

15,000

20,000

Net Sales Gross Profit Income Before Tax

23

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 to 30.6% in YTD 12 2014 from 29.2%

in YTD 12 2013.


-5.2%

(Figures in Rp Bn)

Gross profit margin

Income before taxmargin

Distribution Business Details on Stand Alone Basis

Kalbe Group 70%

3rd Party Principals 18%

Medical Devices 4%

Raw Material Trading 8%

5,836 5,535



Major Third Party Principals by Category

Prescription

Pharmaceuticals Consumer

Medical Instrument

& Diagnostic

Fine Chemical

Raw Materials


24


25

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)

Retail Health Services : 83 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 83

Mitrasana clinics in Jakarta and its

Greater Area.

Medical Devices

673

915 870 969

1,142

742

2009 2010 2011 2012 2013 2014*

* Discontinued tender business in 2014

• 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


26

Strengthening Distribution Network

• New branches in Banyuwangi and Bandung

• Upgraded branches in Bandar Lampung, Tangerang, Surabaya,

Balikpapan and Jambi

2014 overview

Bandar Lampung

Tangerang

Surabaya

Marketing and Sales Infrastructure

27

The largest sales force for Pharma and Consumer Health in Indonesia

Prescription

PharmaceuticalsConsumer Health Nutritionals

Distribution &

Logistics

Infra-

structures

Indonesia

Coverage

Comments

• Over 2,500 medical

representatives

• Over 1,100 marketing

personnel

• > 2,000 sales &

marketing personnel

• Total of > 5,000

employees

• 70 marketing branches

throughout Indonesia

• 46 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 1,100

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

28

Operates 9 GMP facilities complying with international standards

FacilityProducts

Manufactured

Building Area

(m2)Production Lines Licenses Certification

Kalbe Farma 435 91,81914 lines (tablet, capsule, cream, liquid oral,

injection)Astellas

ISO 9001, ISO 14001,

OHSAS18001

Bintang Toedjoe 49 20,849 3 lines; effervescent, powder & liquid --ISO 9001, ISO 14001,

OHSAS18001, HACCP, SMK3

Dankos Farma 189 23,1014 factories; Non-betalactam, Penicillin &

Cephalosporin, Oncology lines

Daiichi,

Samyang

ISO 9001, ISO 14001,

OHSAS18001

Sanghiang Perkasa 132 51,403 8 line dry - powdered miilk MorinagaISO 9001, ISO 14001, HACCP,

OHSAS18001

Hexpharm Jaya 85 16,533 Solid tablet (Non-betalactam products) --ISO 9001, ISO 14001,

OHSAS18001

Finusolprima Farma 26 10,700

Large volume parenteral (LVP) in glass bottle

line, LVP in flexy bag line, Haemodialysis

Solution Line

BaxterISO 9001, ISO 14001,

OHSAS18001

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

18001

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



3,869 2,505

3,792

5,836

16,002

4,329 2,924

4,581 5,535

17,369

Prescription Pharmaceuticals

Consumer Health Nutritionals Distribution & Logistics

Consolidation



Consolidated Sales

30

Consistent Top Line Growth of Internal Kalbe Products

11.9%16.7%

20.8%-5.2%

8.5%

Net Sales (in Rp Bn)

Consolidated Operating Performance

31

Stable Operating 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

48.0% 48.8%



7,679

15.9% 15.9%



26.4% 26.9%

4.8% 5.2%

0.8% 0.8%



Selling & Marketing

General & Administrative

Research & Development

8,476

+ 10.4%

2,549 2,761

+ 8.3%

32.1% 32.9%

Consolidated Net Earnings

32

Positive Earnings Growth

Income Before Tax

(in Rp bn)

Net Income

(in Rp bn)

• Income before tax margin declined from 16.1% in YTD

12 2013 to 15.9% in YTD 12 2014, mostly due to higher

interest expense and miscellaneous expenses.

+7.4%

• Net income margin slightly declined from 12.0% in

YTD 12 2013 to 11.9% in YTD 12 2014, in line with

lower income before tax margin.

+7.6%

1,920 2,065



2,573 2,764



16.1% 15.9% 11.9%12.0%

43 45 44 50

48 48 49

142

122 110 115 107

132 125

27 38 35

57 41

50 46

158

129 120 108 114

131 128

2008 (Audited)

2009 (Audited)

2010 (Audited)

2011 (Audited)

2012 (Audited)

2013 (Audited)

2014 (Audited)

Days of Account Receivables Days of Inventories

Days of Account Payables Net Operating Cycle

Working Capital Management

33

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 30 days

from 158 days in 2008 to 128

days in 2014

Improving inventory level

due to stabilizing raw

material price in 2014

No. of days

Solid Financial Position

34

Total Debt and Gearing Ratio Cash & Net Cash Balance

Rp 1.6 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

340 25 141 205 584 296

7.9%

0.5%2.3% 2.9%

7.2% 3.2%

0.0%

5.0%

10.0%

15.0%

0

300

600

2009 (Audited)

2010 (Audited)

2011 (Audited)

2012 (Audited)

2013 (Audited)

2014 (Audited)

Total Debt in Rp Billion

Gearing Ratio1,562

1,902

2,291 1,860

1,426

1,895

1,222

1,877

2,151

1,655

843

1,598

2009 (Audited)

2010 (Audited)

2011 (Audited)

2012 (Audited)

2013 (Audited)

2014 (Audited)

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

5.014.0

19.0 19.0 17.026%

51%60%

51%42%

0%20%40%60%80%

0.05.0

10.015.020.0

2009 (Audited)

2010 (Audited)

2011 (Audited)

2012 (Audited)

2013 (Audited)

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

278 470 469

783 994

781

2009 (Audited)

2010 (Audited)

2011 (Audited)

2012 (Audited)

2013 (Audited)

2014 (Audited)

SECTION 5

Strategies &

Outlook 2015



36

KALBE Business Strategies

Improve marketing &

sales effectiveness

Go Global - deeper

ASEAN penetration,

more product

offering

Strengthen Quality

Assurance,

Compliance & CSR

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

37

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

38

Corporate Social Responsibility

Certified

Environmental

Management

System

ISO 14001:2004

Environmental Sustainability Consumer Protection

Dedicated Customer

Care Team

Kalbe Cares

Education Health Environment Infrastructure

Looking after our stakeholders

Kalbe Junior

Scientist AwardRistek Kalbe

Science Award

Dr. Boen

Distinguished

Lecture Series

Extended

Producer

Responsibilities

Free Medical

Consultations

Blood Donor

ActivitiesDisaster Reliefs

Community Development

Outlook 2015

39

Capex Rp 1 – 1.3 Tn for production capacity and distribution network expansion.

1. Year-on-year Sales Growth 11% - 13%

2. Operating Profit Margin 16% - 17%

3. Earnings per Share Growth 14% - 16%

4. Dividend Payout Ratio 40% - 50%

Earnings Guidance 2015

* Excluding the impact of product recall

SECTION 6

Appendix 1

Financial InformationYTD December 31, 2014

(Audited)



Audited Financial Statement

YTD 12 2014

Consolidated Balance Sheets

41

ASSETS

CURRENT ASSETS

Cash and Cash Equivalents 1,426,460,966,674 1,894,609,528,205 32.8%

Trade Receivables, Net 2,145,218,904,462 2,346,943,653,265 9.4%

Other Receivables 128,159,883,954 117,957,876,451 -8.0%

Other Current Financial Assets 187,742,937,561 199,389,672,567 6.2%

Inventories, Net 3,053,494,513,851 3,090,544,151,155 1.2%

Prepaid Value Added Tax 40,855,503,867 13,609,917,516 -66.7%

Prepaid Expenses 55,120,742,321 69,088,895,897 25.3%

Other Current Assets 460,265,998,853 388,661,675,136 -15.6%

TOTAL CURRENT ASSETS 7,497,319,451,543 8,120,805,370,192 8.3%

TOTAL NON-CURRENT ASSETS 3,817,741,823,483 4,304,226,997,537 12.7%

TOTAL ASSETS 11,315,061,275,026 12,425,032,367,729 9.8%

31 December 2013

(Audited)

31 December 2014

(Audited) % Change


YTD 12 2014

42

Consolidated Balance Sheets

% Change

LIABILITIES

CURRENT LIABILITIES

Short-term Bank Loans 583,823,955,413 251,909,102,153 -56.9%

Trade Payables 1,151,654,579,697 1,133,092,819,659 -1.6%

Other Payables 379,156,683,712 422,739,416,901 11.5%

Accrued Expenses 314,518,392,842 358,667,243,424 14.0%

Taxes Payable 186,953,727,366 184,590,382,675 -1.3%

Short-term Liabilities for Employees' Benefit 24,391,340,352 34,921,207,677 43.2%

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

TOTAL CURRENT LIABILITIES 2,640,590,023,748 2,385,920,172,489 -9.6%

TOTAL NON-CURRENT LIABILITIES 174,513,285,703 221,636,516,794 27.0%

TOTAL LIABILITIES 2,815,103,309,451 2,607,556,689,283 -7.4%

EQUITY

ATTRIBUTABLE TO THE OWNERS OF THE PARENT COMPANY

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 8,900,997,960,322 16.6%

Others 40,420,603,467 46,392,656,427 14.8%

Sub-total 8,108,241,521,503 9,382,023,164,035 15.7%

Non-controlling Interest 391,716,444,072 435,452,514,411 11.2%

EQUITY, NET 8,499,957,965,575 9,817,475,678,446 15.5%

TOTAL LIABILITIES AND EQUITY 11,315,061,275,026 12,425,032,367,729 9.8%

31 December 2013

(Audited)

31 December 2014

(Audited)


YTD 12 2014

43

Consolidated Statement of Income

NET SALES 16,002,131,057,048 17,368,532,547,558 8.5%

COST OF GOODS SOLD 8,323,017,600,990 8,892,737,389,731 6.8%

% to NS 52.0% 51.2% -0.8%

GROSS PROFIT 7,679,113,456,058 8,475,795,157,827 10.4%

% to NS 48.0% 48.8% 0.8%

Selling Expense (4,230,293,635,075) (4,670,393,647,550) 10.4%

% to NS -26.4% -26.9% -0.5%

General and Administrative Expense (764,512,533,499) (901,181,791,170) 17.9%

% to NS -4.8% -5.2% -0.4%

Research and Development Expense (135,388,356,694) (143,175,406,909) 5.8%

% to NS -0.8% -0.8% 0.0%

Interest Expense and Financial Charges (28,642,082,811) (52,009,056,900) 81.6%

Interest Income 50,425,100,828 63,367,657,238 25.7%

Other Operating Expenses (51,920,132,128) (97,361,969,697) 87.5%

Other Operating Income 56,072,322,107 91,296,113,044 62.8%

Share in Loss of the Associated Entity (2,331,421,555) (2,636,507,835)

INCOME BEFORE INCOME TAX

BENEFIT (EXPENSE) 2,572,522,717,231 2,763,700,548,048 7.4%

% to NS 16.1% 15.9% -0.2%

INCOME TAX EXPENSES, NET (602,070,267,545) (642,609,966,418) 6.7%

% to NS -3.8% -3.7% 0.1%

31 December 2013

(Audited)

31 December 2014

(Audited) % Change

INCOME FOR THE PERIOD 1,970,452,449,686 2,121,090,581,630 7.6%

% to NS 12.3% 12.2% -0.1%

OTHER COMPREHENSIVE INCOME (EXPENSES) 33,791,245,111 8,124,868,452 -76.0%

COMPREHENSIVE INCOME FOR THE PERIOD 2,004,243,694,797 2,129,215,450,082 6.2%

% to NS 12.5% 12.3% -0.3%

Income for the Period Attributable to:

Owners of the Parent Company 1,919,508,370,312 2,064,686,665,442 7.6%


Total 1,970,452,449,686 2,121,090,581,630 7.6%

% to NS 12.3% 12.2% -0.1%

Comprehensive Income for the Period

Attributable to:

Owners of the Parent Company 1,952,588,559,890 2,072,781,310,118 6.2%


Total 2,004,243,694,797 2,129,215,450,082 6.2%

% to NS 12.5% 12.3% -0.3%

Earnings Per Share Attributable to

Owners of the Parent Company 41 44 7.6%

44

Consolidated Statement of Income


YTD 12 2014

31 December 2013

(Audited)

31 December 2014

(Audited) % Change


YTD 12 2014

Consolidated Statement of Cash Flows

45

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Received from Customers 17,253,943,196,843 18,789,636,782,075 8.9%

Cash Paid to Suppliers and Employees (10,832,003,854,960) (10,796,383,861,185) -0.3%

Cash provided by operations 6,421,939,341,883 7,993,252,920,890 24.5%

Receipts of Claims for Income Tax Refund 5,308,496,966 10,370,282,338 95.4%

Payments of Income Taxes (650,904,671,554) (650,088,972,907) -0.1%

Payments of Other Operating Expenses, Net (4,849,179,513,083) (5,037,408,409,276) 3.9%

Net Cash Provided by Operating Activities 927,163,654,212 2,316,125,821,045 149.8%

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Sale of Other Current Financial Assets 219,262,900,420 166,425,803,899 -24.1%

Interest Income Received 51,517,056,069 61,535,428,006 19.4%

Proceeds from Sales of Property, Plant, and Equipment 28,053,364,909 40,268,489,225 43.5%

Cash Dividends Received 2,117,000,000 528,222,042

Acquisitions of Property, Plant and Equipment (993,929,398,633) (750,705,865,640) -24.5%

Placements in Other Current Financial Assets (153,574,337,500) (166,513,567,647) 8.4%

Acquisitions from Other Investing Activities, Net (35,592,673,302) (28,044,385,406) -21.2%

Net Cash Used in Investing Activities (882,146,088,037) (676,505,875,521) -23.3%

31 December 2013

(Audited) % Change

31 December 2014

(Audited)

Consolidated Statement of Cash Flows

46


YTD 12 2014

31 December 2013

(Audited) % Change

31 December 2014

(Audited)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Bank Loans 1,627,390,328,387 2,137,283,946,487 31.3%

Receipts of Capital Contributions from

Subsidiaries' Non-controlling Interest 26,504,394,870 4,887,332,280 -81.6%

Payments of Bank Loans (1,317,770,912,697) (2,430,517,702,602) 84.4%

Payments of Interest Expense and Financial Charge (25,881,719,573) (52,947,596,310) 104.6%

Payments of cash Dividend Company (890,627,320,090) (796,877,075,870) -10.5%

Subsidiaries (10,066,131,762) (12,654,188,558) 25.7%

Payments of Pension Funds (22,541,928,655) (26,355,615,090) 16.9%

Payments of Obligations under Finance Leases (327,347,370) (91,344,366) -72.1%

Net Cash Provided by (Used in) Financing Activities (613,320,636,890) (1,177,272,244,029) 92.0%

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (568,303,070,715) 462,347,701,495 181.4%

Net Effect of Changes in Foreign Exchange Rates of Foreign Currency

Denominated Cash and Cash Equivalents 95,474,047,958 887,720,749 -99.1%

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

CASH AND CASH EQUIVALENTS AT END OF YEAR 1,356,186,110,248 1,819,421,532,492 34.2%

Appendix 2

JKN Information



48

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

49

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 100,000 – Rp 600,000

Diagnosis-related group :

fixed payment for a bundling

of treatments & medicines

based on diagnosis

Healthcare Tariff Reimbursement Scheme

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THANK YOU

50

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]



Documents

Pasar Farmasi Indonesia - Kalbe Farma