Kalbe Farma Tbk PT : Healthy Net Profit Growth of 14.7%

Healthy Net Profit Growth of 14.7%

No. 012/KFCP-DIR/PR/III/17

Jakarta, March31, 2017- PT Kalbe Farma Tbk and Subsidiaries ('Kalbe' or 'the Company') today announced the Company's performance for the year 2016based on the audited consolidated financial statement for the year ended December 31, 2016. Consolidated net sales grew by 8.3% to reach Rp 19,374billion from Rp 17,887billion in 2015. Sales growth showed improvement compared to 3.0% in 2015.

'The Company's audited results for 2016showed positive results, supported by gradual recovery of Indonesia macroeconomic condition and relatively stable Rupiah exchange rate. In line with earlier indication, Kalbe's audited results showed perfomance recovery across Kalbe's business divisions and profitability improvement, in line with our target,' stated Vidjongtius, Kalbe's Finance Director and Corporate Secretary. 'Going forward, Indonesia's gradual economic recovery is expected to support our growth.'

The Company booked net sales of Rp 19,374billion 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 10.4% to Rp 9,488billion. 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 profit grew by 15.5%, with operating profitratio 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.

Ourconsolidated net profit2016grew by 14.7% to reach Rp 2,300billion 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 10 production facilities with international standards, supported by around 17,000 employees and 6,000 sales and marketing personnel, spread in 72 branches across Indonesia. Since 1991, Kalbe's shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).