Kalbe Farma Tbk PT : Keeping a Positive Top Line Growth

Keeping a Positive Top Line Growth

No. 013/KFCP-DIR/PR/IV/17

Jakarta,April28, 2017- PT Kalbe Farma Tbk and Subsidiaries ('Kalbe' or 'the Company') today announced net sales of Rp 4,898 billion for the first quarter of 2017, an increase of 7.7% compared to the first quarter of 2016 of Rp 4,550 billion.

'Despite lower than the targeted outlook, in the first quarter of this year, sales of internal Kalbe products showed positive trend, driven by volume growth in line with intensive marketing activities as well as distribution penetration,' stated Vidjongtius, Kalbe's Finance Director and Corporate Secretary. 'We will continue our expansion plan and new product launching to offer a more comprehensive product portfolio. On the back of a relatively stable Indonesian macroeconomic setting, we believe we can achieve the targeted growth for 2017, while keeping an eye on the impact of Rupiah movement.'

The Company booked net sales of Rp 4,898 billion in the first quarter of 2017, or growing by 7.7%. Sales growth was mostly driven by sales volumein generaland gradually improving purchasing power.

Gross profit was up by 9.9% to Rp 2,411billionin the first quarter of 2017. Gross profit margin improved to49.2%from48.2% in the same period last year,on the back of Rupiah's strength and stabilitythus far. To maintain margin going forward, the Company will continue to combine product mix management and operating efficiency improvement.

Operating profit grew by 5.9% in the first quarter of 2017, with operating profitratio reached 15.7%, down from 16.0% in the same period in 2016driven by more active marketing activities. The Company will continue to manage its marketing and sales effectiveness and monitor other operating expenses to maintain operating profit level.

Net profit grew by 4.4% to Rp 588billion in the first quarter of 2017compared to Rp 563billion in the same period last year. Net profit growth was lower compared to net sales growth, mostly due to the decline in operatingprofit margin.

Taking into account the macroeconomic and competitive landscape, the Company maintains net sales growth target 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 30subsidiaries and 10 production facilities with international standards, supported by around 17,000 employees and 6,000 sales and marketing personnel, spread in 72branches across Indonesia. Since 1991, Kalbe's shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).