Kalbe Farma Tbk PT : Preserving Positive Growth in a Soft Market

Press Release No.015/KFCP-DIR/PR/IV/18

Jakarta,April30, 2018- PT Kalbe Farma Tbk and Subsidiaries ('Kalbe' or 'the Company')today announced net sales of Rp 5,015billion for the first quarter of 2018, an increase of 2.4% compared to the first quarter of 2017of Rp 4,898billion.

'In a soft market condition where signs of improvement are yet to appear, we focus on preserving market share and implementing cost control,' stated Bernadus Karmin Winata, Kalbe's Finance Director and Corporate Secretary. 'Various long term strategies such as capacity expansion plan and new product launching will continue. Backed by a conviction on the country's macro economy recovery, we believe that the Company's performance will accelerate in line with the market pick-up.'

The Company booked net sales of Rp 5,015billion in the first quarter of 2018, or growing by 2.4%. Sales growth was mostly driven by sales volumein most of the divisions, except in the consumer health segment that remains challenged by stagnant growth.

Gross profit reached Rp 2,428 billion in the first quarter of 2018, stable compared to Rp 2,411 billion in 2017. Gross profit margin declined to48.4%from49.2% in the same period last year,on the back of Rupiah's weakness. To maintain margin going forward, the Company will continue to combine product mix management and operating efficiency improvement.

Operating profit slightly grew by 1.7% in the first quarter of 2018, with operating profit ratio reached 15.6%, or stable compared to 15.7% in the same period in 2017. The Company will continue to control its marketing expenses while improving its effectiveness, and monitor other operating expenses to maintain operating profit level.

Net profit amounted to Rp 589billion in the first quarter of 2018, stablecompared to the same period last year. Net profit growth was lower compared to net sales growth, mostly due to the decline in grossprofit margin.

Taking into account the macroeconomic and competitive landscape, the Company maintains targeted net sales growth in 2018 by 7%-9% with the same rate of growth of net profit. The targeted operating profit margin is expected to be stable in the range of 14.5% - 15.5%. The Company allocates capital expenditure budget of Rp 1.0 - 1.5 trillion, mostly for production and distribution capacity expansion. Our dividend policy is raised in the range of 45% - 55% 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), nutritionals division (ChilKid, Prenagen, Diabetasol, etc), and distribution division. Kalbe currently has more than 35 subsidiaries and 12 production facilities with international standards, supported by around 17,000 employees, spread in 74 branches across Indonesia. Since 1991, Kalbe's shares have been listed on the Indonesia Stock Exchange (IDX: KLBF).