Kalbe Farma Tbk PT : Maintaining Recovery Momentum

Maintaining Recovery Momentum

Press Release No. 019/KFCP-DIR/PR/VII/16

Jakarta, July 29, 2016 - PT Kalbe Farma Tbk and Subsidiaries ('Kalbe' or 'the Company') today announced its first semester 2016 results. Net sales grew by 9.6% to reach Rp 9,556 billion from Rp 8,720 billion in the same period in 2015.

'Along with Indonesian economic recovery, coupled with improving purchasing power in first half of 2016, the Company shows gradual sales growth recovery and stable margin,' stated Vidjongtius, Kalbe's Finance Director and Corporate Secretary. 'All Kalbe's Divisions show recovery signs, as we continue to conduct active demand creation activities.'

The Company booked net sales of Rp 9,556 billion in the first semester of 2015, or growing by 9.6% compared to the same period in 2015 of Rp 8,720 billion. Sales growth was mostly driven by stronger volume in general, while limited price increase was conducted only to certain products.

Gross profit was up 8.5% to Rp 4,663 billion. The gross margin decreased to 48.8% from 49.3% in the first semester last year. This was mostly due to Rupiah depreciation compared to 2015 and changes in the Company's business mix. To maintain margin, the Company will continue to implement product mix management and pricing policy.

Operating income grew by 10.1% compared to the same period last year, with a ratio of 15.9% of net sales. The Company is committed to maintaining its operating profit growth by improving its marketing and sales effectiveness and monitoring the other operating expenses.

Our net profit increased by 7.8% to reach Rp 1,146 billion from Rp 1,063 billion in first half of 2015. Net profit growth was mostly supported by better operating income and as well as higher interest income.

On account of the macro condition and competition, the Company maintains net sales growth target by 8% -10% with the same rate of growth of net profit. The targeted operating profit margin is stable in the range of 14% - 15%. The Company allocates capital expenditure budget of Rp 1.0 - 1.5 trillion, mostly for production and distribution capacity expansion. Our dividend policy remains at the level of around 40% - 50% payout ratio, depending on 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, Nitros), nutritionals division (ChilKid, Prenagen, Diabetasol, etc), and distribution division. Kalbe currently has more than 20 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).