strategic direction 2011 - kalbe group
TRANSCRIPT
Not all collagen is the same,
it’s time to choose the right one
Analyst Gathering
February 2015
Excellence in Execution
Table of Contents
2
BUSINESS OVERVIEW 6
INDICATIVE 2014 RESULTS & 2015 OUTLOOK 14
MACRO OVERVIEW 3
Section 1
Not all collagen is the same,
it’s time to choose the right one
Macro Overview
Excellence in Execution
2014 Macro highlights
Macro Overview
4
Rupiah – US Dollar
(Exchange Rates on Transaction)
Weakening Rupiah, but with less
volatility
2015 Macro outlook
Rising inflation of 8.36% (yoy)
Political uncertainty
Inflation reached 8.36% (y-o-y) triggered by
fuel price increase on Nov 2014
Legislative Election &
Presidential Election
Infrastructure improvement in longer term
ASEAN Economic Community
• International expansion opportunities
• Non tariff barriers in pharma industry*based on average
12.5%*
Excellence in Execution
133 million people
Target 170 million people
Target 250 million people
The new national health insurance roll-out
Healthcare Industry
JKN has been implemented since Jan 1, 2014.
JKN Coverage
2015 Outlook
• Integration of formal sector workers into JKN
• Discussion of Coordination of Benefits(COB)
2014 Highlights
• JKN covered more than 133 million
people, higher than targeted coverage of
120 million people
Increased health spending in 2015
government budget
33.041.0
46.652.7
67.571.1
2010 2011 2012 2013 2014 (APBNP)
2015 (APBN)
3.5% of
Gov’t
Budget
*in trillion Rp
20192015
2014
Not all collagen is the same,
it’s time to choose the right one
Section 2
Business Overview
Excellence in Execution 7
Strategic Intent
WBAWI
To be the best Indonesian Global Health Care company driven by innovation, strong brands and excellent management
To improve health for a better life
We are an Innovative Health Care Business providing Health Care Products & Its Related Services
1.Sustainable Growth
2.Innovation & Productivity
3.World Class Competence & Organization
Mission
Vision
Strategy
Values We believe in : Trust, Mindfulness, Innovation, Strive to be the
best, Interconnectedness
Excellence in Execution
1. Strengthen business portfolio through innovation and M&A
Our Strategies
8
2. Improve marketing and sales effectiveness
CORPORATE
BRANDING
Morinaga Mall to Mall 2014,
attracting more than 288,000
visitors
Diabetasol 3J Campaign
& Healthy Activities in
World Diabetes Day
Excellence in Execution 9
5. Strengthen quality assurance, compliance, and corporate social responsibilities
Our Strategies3. Accelerate “Go Global” implementation
4. Develop future leaders with competence and “Kalbe Panca Sradha” character
Kalbe Middle
Management
Program
Kalbe Learning
Center
Excellence in Execution 10
2014 Key Achievements & Activities
Upgraded distribution facilitiesStarted commercial production of
oncology production facilities at Pulogadung
Increased production lines and capacities
Bandar Lampung
Tangerang
Surabaya
Strengthening production and distribution network
Excellence in Execution
Strengthening product portfolio through innovation
11
New Product Launches Research & Development
2014 Key Achievements & Activities
Stem Cell and
Cancer Institute
Excellence in Execution
International expansion
12
2014 Key Achievements & Activities
Extra Joss Cup Procold Booth & Sponsorship Mixagrip Store
Branding
Mixagrip Taxi Branding Kalbe Ethical Product Booth -
Medical Forum
Fitbar TV Commercial Diabetasol Product Sampling Woods Winter Wholesale Displays
Philippines
Nigeria Myanmar Vietnam
South Africa
Excellence in Execution
Getting closer to our consumers
2014 Key Achievements & Activities
13
Kalbe e-Store
Kalbe Home Delivery
Kalbe Family Rewards CardKALCare
Experiential Store
Kalbe Customer Care
Integrated Service to Consumers
KalbeMed
Mobile Application
Mommychi
Mom & Child
Mobile Application
Mobile Application Utilization
Diabetes Solution
Center Mobile
Application
Direct to Consumer (DTC)
Activities 2014
Morinaga Entrasol
Fatigon Hydro Coco
Not all collagen is the same,
it’s time to choose the right one
Section 3
Indicative 2014 Results
& 2015 Outlook
Excellence in Execution
3,869 2,505
3,792
5,836
16,002
4,329 2,924
4,581 5,531
17,365
Prescription Pharmaceuticals
Consumer Health Nutritionals Distribution & Logistics
Consolidation
31 Dec 2013 (Audited)
31 Dec 2014(Unaudited)
Consolidated Sales
15
Consistent Top Line Growth of Internal Kalbe Products
+11.9%+16.7%
+20.8%
-5.2%
+8.5%
Net Sales (in Rp Bn)
Excellence in Execution
48.0% 48.8%
31 Dec 2013 (Audited)
31 Dec 2014(Unaudited)
8,474
26.4% 26.9%
4.8% 5.2%0.8% 0.8%
31 Dec 2013 (Audited)
31 Dec 2014(Unaudited)
Selling & Marketing
General & Administrative
Research & Development
15.9% 15.9%
31 Dec 2013 (Audited)
31 Dec 2014(Unaudited)
2,754
Consolidated Operating Performance
16
Stable Operating Margin
• Intensive marketing efforts to drive brand awareness
• R & D to support product development
Gross Profit Margin Operating Expenses to Net Sales Ratios
32.1% 32.9%
Operating Profit Margin
7,679
2,549
+ 10.4%
+ 8.0%
Excellence in Execution
2,573 2,753
31 Dec 2013 (Audited)
31 Dec 2014(Unaudited)
1,920 2,051
31 Dec 2013 (Audited)
31 Dec 2014(Unaudited)
• Income before tax margin declined from 16.1% in FY 2013
to 15.9% in FY 2014 mostly due to higher interest expense
and miscellaneous expenses.
Consolidated Net Earnings
17
Consistent Earnings Growth
Income Before Tax
(in Rp bn)
Net Income
(in Rp bn)
+ 7.0%
• Net income margin declined from 12.0% in FY 2013 to
11.8% in FY 2014.
+6.9 %16.1% 15.9%
12.0% 11.8%
Excellence in Execution
43 45 44 50
48 48 49
142
122 110 115 107
132 126
27 38 35
57 41
50 45
158
129 120 108 114
131 129
31 Dec 2008 (Audited)
31 Dec 2009 (Audited)
31 Dec 2010 (Audited)
31 Dec 2011 (Audited)
31 Dec 2012 (Audited)
31 Dec 2013 (Audited)
31 Dec 2014 (Unaudited)
Days of Account Receivables Days of Inventories
Days of Account Payables Net Operating Cycle
Working Capital Management
18
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 29 days from 158
days in 2008 to 129 days in
2014
Improving inventory level due
to stabilizing raw material price
in 2014No. of days
Excellence in Execution
Solid Financial Position
19
Total Debt and Gearing Ratio Cash & Net Cash Balance
Rp 1.62 Trillion of Net Cash Position
Dividend Payment Capital Expenditure
* 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%
0100200300400500600
2009 (Audited)
2010 (Audited)
2011 (Audited)
2012 (Audited)
2013 (Audited)
2014 (Unaudited)
Total Debt in Rp Billion
Gearing Ratio
1,562 1,902
2,291 1,860
1,426
1,919
1,222
1,877 2,151
1,655
843
1,623
2009 (Audited)
2010 (Audited)
2011 (Audited)
2012 (Audited)
2013 (Audited)
2014 (Unaudited)
Cash and Cash Equivalent in Rp Billion Net Cash in Rp Billion
5.014.0
19.0 19.0 17.0 26%
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
852
2009 (Audited)
2010 (Audited)
2011 (Audited)
2012 (Audited)
2013(Audited)
2014 (Unaudited)
*For Fiscal Year *Cash dividend are adjusted for stock split impact
Excellence in Execution
Capex Rp 1 – 1.3 Tn for production capacity and distribution network expansion.
Outlook 2015
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1. Year-on-year Sales Growth 11% - 13%
2. Operating Profit Margin 16% - 17%
3. Earnings per Share growth of 14% - 16%
4. Dividend payout ratio minimum 50%
Earnings Guidance 2015 *
* Excluding the impact of product recall
Excellence in Execution
THANK YOUFor 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]
Website : www.kalbe.co.id
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