Kalbe Farma Tbk PT : 2016 Indicative Net Profit Increased by 13.5%

2016Indicative Net Profit Increased by 13.5%

No. 003/KFCP-DIR/PR/II-17

Jakarta,February17, 2017- PT Kalbe Farma Tbk and Subsidiaries ('Kalbe' or 'the Company') today announced the Company's indicative performance(unaudited)for the year2016. Net sales grew by 8.3% to reach Rp 19,367billion from Rp 17,887billion in 2015. Sales growth showed improvement compared to 3.0% in 2015.

'Based on the unaudited financial statement, Kalbe booked a positiveperformancein 2016, supported by gradual recovery of Indonesia macroeconomic condition and relatively stable Rupiah exchange rate. All of Kalbe's Divisions show performance recovery,' stated Vidjongtius, Kalbe's Finance Director and Corporate Secretary. 'Our performance in 2016 showedpositive growth and profitability improvement, in line with our target. Going forward, Indonesia's gradual economic recovery is expected to support our growth.'

The Company booked net sales of Rp 19,367billion in2016, or growing by 8.3%.Sales growth was mostly driven by stronger sales volumein general, improving purchasing power andcontrolled inflation rate.

Gross profit was up by 10.5% to Rp 9,493billion. The gross profit margin improved from48.0% in 2015 to49.0% in 2016, on the back of Rupiah strengthening and stability in 2016. To maintain margin going forward, the Company will continue to combine product mix management and operating efficiency improvement.

Operating income ratio reached 15.8%, growing from 14.8% in the year before. The Company will continue to manage its marketing and sales effectiveness and monitor other operating expenses to maintain operating profit level.

Our indicativeconsolidated net profit2016grew by 13.5% to reach Rp 2,275billion from Rp 2,004billion in 2015. Net profit growth was mostly driven by gross profit improvement, as well as higher interest income.

Taking into account the macroeconomic and competitive landscape, the Company targets a net sales growth of 8% -10% with the same rate of net profit growth. The operating profit margin is expected in the range of 14.5% - 15.5%. The Company allocates capital expenditure budget of Rp 1.2 trillion, mostly for production and distribution capacity expansion. Our dividend policy is maintained at the level of around 40% - 50% payout ratio, by taking into account the cash availability and internal fund requirement.

Kalbe at a Glance

PT Kalbe Farma Tbk. ('Kalbe') was established in 1966 and is one of the largest publicly-listed pharmaceutical companies in Southeast Asia. Kalbe has four main divisions managing a broad and strong portfolio of brands; prescription pharmaceuticals division (Cefspan, Brainact, Broadced, etc), consumer health division comprising over-the-counter drugs (Promag, Mixagrip, Komix, Woods, Fatigon, etc) as well as ready-to-drink and energy drink products (Hydro Coco, Extra Joss), nutritionals division (ChilKid, Prenagen, Diabetasol, etc), and distribution division. Kalbe currently has more than 30 subsidiaries and 9 production facilities with international standards, supported by around 17,000 employees and 6,000 sales and marketing personnel, spread in 71 branches across Indonesia. Since 1991, Kalbe's shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).