Kalbe Farma Tbk PT : Keeping the Recovery Momentum

Keeping the Recovery Momentum

No. 021/KFCP-DIR/PR/VII/17

Jakarta,July 31, 2017- PT Kalbe Farma Tbk and Subsidiaries ('Kalbe' or 'the Company') today announced net sales of Rp 10,066 billion for the first semester of 2017, an increase of 5.3% compared to the first semester of 2016 of Rp 9,556 billion.

'Despite lower than the targeted outlook, in the first semesterof this year, Kalbe's sales showed positive trend, driven by volume growth,' stated Bernadus Karmin Winata, Kalbe's Finance Director and Corporate Secretary. 'We believe that economic recovery momentum will continue, despite slower than expected. We will continue our expansion plan and new product launches to offer a more comprehensive product portfolio. With positive macroeconomic setting, we will work towards achieving the targeted growth for 2017, while closely monitoring cost efficiency to protect margin.'

The Company booked net sales of Rp 10,066 billion in the firstsemester of 2017, or growing by 5.3%. Sales growth was mostly driven by sales volumein general.

Gross profit was up by 5.6% to Rp 4,925billionin the first semester of 2017. Gross profit margin held up at 48.9% compared to 48.8% in the same period last year,on the back of Rupiah's stabilitythus far. To maintain margin going forward, the Company will continue to combine product mix management and operating efficiency control.

Operating profit grew by 4.9% in the firstsemesterof 2017, with operating profitratio stable at 15.8%, from 15.9% in the same period in 2016. In line with product development effort, specifically in prescription pharmaceuticals, the Company recorded higher for research and developmentactivities. The Company will continue to manage itsoperationaleffectiveness and monitor other operating expenses to maintain operating profit level.

Net profit grew by 6.1% to Rp 1,216billion in the first semesterof 2017compared to Rp 1,146billion in the same period last year.

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. The Company has paid out a dividend of 45% of 2016 net income.

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).