PT Kalbe Farma Tbk : Company Update - Q1 2024 Unaudited Results (02-May-2024)

Acceleration towards Health Resiliency

Company Update

1Q24 Unaudited Results

PT Kalbe Farma Tbk

1st May 2024

Forward-Looking Statement

This presentation has been prepared for informational purposes only by PT Kalbe Farma Tbk. ("Kalbe" or the "Company"). This presentation has been prepared solely for use in connection with the release of 31 March 2024 unaudited results of the Company. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Company or any of their respective affiliates, and their respective commissioners, directors and employees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. Any decision to purchase or subscribe for securities of the Company should not be made on the basis of the information contained in this presentation.

The presentation is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. This presentation and its contents are confidential unless they are or become generally available as public information in accordance with prevailing laws and regulations (other than as a result of a disclosure by you) and must not be distributed, published or reproduced (in whole or in part) or disclosed by recipients to any other person. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation, including the information and opinions contained herein, is provided as of the date of this presentation and is subject to change without notice, including change as a result of the issuance of 31 March 2024 unaudited results of the Company.

This presentation includes "forward-looking statements". These statements contain the words "anticipate", "believe", "intend", estimate", "expect" and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans, objectives relating to the Company's products and services and anticipated product launches) are forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward- looking statements speak only as at the date of this presentation. The Company expressly disclaims any obligation or reflection of any change in the Company's expectations with regard thereto, or any change in events, conditions or circumstances on which any statement is based. Market data and certain industry forecasts used in this presentation were obtained from market research, publicly available information and industry publications which have not been independently verified, and no representation is made as to the accuracy of such information.

Table of Content

Key Updates

4

Key Business Strategies

8

Financial Overview

21

Appendix28

Key Updates

	1Q24	1Q24
6.3%	Net
Sales	12.5% EPS
	growth	growth

On-trackProgress in key projects Commercialization of Zerpidio, Efesa

Dialyzer, Mobile X-Ray,

CT-Scan, endoscopy,

USG machine

Key Updates

• Positive organic top-line growth in all business lines in the local market (Gr 8.2%)
• Sustained gross margin improvement trend
• Controlling operating expenses to secure the bottom line

Radiopharmaceuticals facilities (cyclotrons)

New Product

Development

Key Takeaways

Solid Foundation for Future Growth

Improving Margin Trend

		Improved
40.9%	40.4%	Gross Profit Margin
39.7%
	37.0%	37.0%

14.6%	14.6%	Improved
12.0%	12.4%	Operating Profit
9.3%		Margin

	Strategies			Key Risks
• Managing supply chain and multiple sourcing	• Global financial and geopolitical volatility impact to
• Synergy and efficiency improvement
currency and supply chain
• USD Cash Reserve
		• Temporary challenges in international market
	Revenue Breakdown							160
• Distribution fee reallocation to businesses to reflect end-to-end view	140
	Proforma Before Reallocation	After Reallocation			120
									100
24.2%		33.2%	26.2%			Prescription Pharmaceuticals
38.5%
						Consumer Health	80
	1Q24			1Q24
							Nutritionals	60
13.6%				14.9%
23.7%		25.7%			Distribution and Logistics	40

1Q23	2Q23	3Q23	4Q23	1Q24
Improving Sales and Normalized Inventory Days
148	148	142			14.0%
			131		12.0%
12.2%				117	Gradual
				10.0%
					Normalization of
	9.4%				Inventory Days
				8.0%
					Sales Upturn
		6.5%			6.0%
			6.3%
			5.2%		4.0%
1Q23	6M23	9M23	FY23	1Q24	2.0%
					0.0%

Key Takeaways

Sustained Top-line Growth and Resilient Margins Over a Decade

14,567

15,227

16,367

15,731

11,634	15,416

	48.8%	48.0%	49.0%	48.6%	46.7%	45.3%	44.3%	43.0%
Gross
Profit Margin
Operating
Profit Margin	15.9%	14.8%	15.8%	15.9%	15.2%	14.6%	15.4%	15.3%
Net
Profit Margin
	11.9%	11.2%	11.9%	11.9%	11.7%	11.1%	11.8%	12.1%

40.5%

38.8%

14.6%

12.1%

11.7% 9.1%

							33%
				30%	30%	30%
		32%	30%
	36%
38%
				29%	30%	30%	29%
		26%	29%
22%	24%
		17%	17%	18%	17%	17%	15%
16%	16%

34%

29%

16%

37%

27%

14%

• Sustained consolidated top-line growth at CAGR 5.8% over a decade.
• Resilient margins (Operating Profit Margin at 14%- 15% in 2014-2022) reflecting a well-managed

operational efficiency despite pressure on gross profit from input cost, currency and product mix

• Temporary margin contraction in 2023 reflecting a

confluence of factors :

• Increase in raw material prices and higher

24%

24%

25%

24%

23%

23%

23%

23%

22% 22%

inventory level driven by global supply chain

disruption during the pandemic​

• Non-operating item impact from currency

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

fluctuation​

Prescription Pharmaceuticals		Consumer Health		Nutritionals		Distribution and Logistics

2024 Key Priorities

Broad-based Growth with Emphasis on Higher Growth Categories

Prescription	Medical
Pharmaceuticals	Devices

International Market

Consumer Health	Distribution
& Nutritionals	& Logistics

Innovative Biologics products,	Build local manufacturing
including expanding Insulin
capability
business
	Strengthen our position	Strengthen network
	in the market	and collaboration
	Leverage Kalventis to	Accelerate
	strengthen portfolio	technology transfer

Bring more products to export markets

Expand to new countries

Expand into preventive, wellness, and sports category

Strengthen nutritional presence in affordable and specialty categories

New potential principals

Integrate

cold chain business

Key Business Strategies

Corporate Overview

Market Capitalization

IDR 69.1 tn ($4.4 bn)*

free float

42.01%*

More than Half a Century of Providing Wide-Range Healthcare Solutions

The largest publicly-listed pharmaceuticals company in Southeast Asia

1966	1991	Onwards
Established, headquartered	Listed in the Indonesia	The most integrated
healthcare company in
in Jakarta
Stock Exchange
Southeast Asia

Including treasury stocks

* As of 31 Mar 2024

				Prescription
				Pharmaceuticals
		26.2%
33.2%	Net Sales			Consumer Health
	IDR 8,363 bn
	1Q 2024	14.9%		Nutritionals
	(unaudited)

25.7%		Distribution &
	Logistics

5%

Export

±40

Countries

Middle

EastSEA

South

Africa

Positive Organic Net Sales Growth Post-Pandemic

Net Sales

IDR bn (unaudited)	+ 4.0%
	2,196
2,112	Net Sales Growth	Licensed	Unbranded
(yoy)	Generics
	25%
		28%

Contribution

			Branded
Mar 23		Mar 24	Generics
			47%

Highlights

• Local sales growth of 7.6%
• Gross Profit Margin in 1Q24 decreased to 52.4% from 53.6% in 1Q23 due to product mix, and increased from 50.8% in 4Q23.
• ASP increase of 3% - 5% on selected products

Prescription Pharmaceuticals

Kalbe

13%

a

9%

Market Share

b

6%

13% c

others

61%d4% e 4% 3%

Market Share

• No. 1 player in Indonesian prescription pharma market
• Performs better than pharma market

*Source: IQVIA 4Q23, in value