Company update q2 2012

7/31/2012

1

Company UpdateUnaudited YTD June 2012 Results

July 2012

2

Forward Looking StatementThis 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 30 June 2012 unaudited results of the Company. Theinformation contained in this presentation has not been independently verified. No representation, warranty or undertaking, express orimplied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or theopinions contained herein. None of the Company or any of their respective affiliates, and their respective commissioners, directors andemployees, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising fromany use of this presentation or its contents or otherwise arising in connection with the presentation. Any decision to purchase or subscribe forsecurities 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 absentregistration or an exemption from registration.

This presentation and its contents are confidential unless they are or become generally available as public information in accordance withprevailing laws and regulations (other than as a result of a disclosure by you) and must not be distributed, published or reproduced (in wholeor in part) or disclosed by recipients to any other person. This presentation does not constitute a recommendation regarding the securities ofthe Company.

This presentation, including the information and opinions contained herein, is provided as of the date of this presentation and is subject tochange without notice, including change as a result of the issuance of 30 June 2012 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 futureoperations (including development plans, objectives relating to the Company's products and services and anticipated product launches) areforward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present andfuture business strategies and the environment in which the Company will operate in the future. These forward-looking statements speakonly as at the date of this presentation. The Company expressly disclaims any obligation or reflection of any change in the Company'sexpectations 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 andindustry publications which have not been independently verified, and no representation is made as to the accuracy of such information.

7/31/2012

2

Table of Contents

3

SECTION 2 Market Overview 8

SECTION 3 Business Overview 12

SECTION 4 Financial Overview 38

SECTION 5 Corporate Actions & Outlook in 2012 45

SECTION 1 Corporate Overview 4

SECTION 6 Appendix 49

4

SECTION 1

Corporate Overview

7/31/2012

3

Domestic 96%

Export 4%

•Established in 1966 and headquartered in Jakarta

•A public company since 1991 and listed in the Indonesia Stock Exchange

•The largest publicly-listed pharmaceuticals company in Southeast Asia

•Sales breakdown by segment and by geographical location for YTD June 2012 is

as follows:

•Over 10,000 employees and a marketing and sales force of 4,000 covering 80% of

the Indonesian consumer health and 100% of the Indonesian prescription

pharmaceuticals market

Largest Publicly-Listed Pharmaceuticals Company in Southeast Asia

Total Sales = Rp 6,244 Bn Total Sales = Rp 6,244 Bn

Corporate Overview

5

Prescription Pharmaceuticals

26%

Consumer Health16%

Nutritionals21%

Distribution & Logistics

37%

Corporate Strategy

6

1966 1977 1985 1989 1991 1993 20051981 1994 1995 1997 2007 2010

1966:Company founded

1977:Dankos Lab

1981:Spin-off the distribution business to PT Enseval due to government regulation

1985:Acquired Bintang Toedjoe &Hexpharm

1989:Igar Jaya and DankosIPOs

1991:Kalbe Farma IPO

1993: Acquired

Sanghiang Perkasa and consolidated nutritional business to SanghiangPerkasa

1994: Entered

energy drink business

EPMT IPO

1995: Disposed of 50% of food business (PT Bukit Manikam Sakti) to Arnotts

1997: Disposed of Kalbe’s

remaining 50% ownership in PT Bukit Manikam Sakti to Arnotts

Disposed glass packaging division to Schott

Acquired Woods Peppermint brand

Acquired 80% of Saka Farma

2005:Consolidation of Kalbe Group

2006

2006:Scale through mergers and acquisitions

2007: Launch of new corporate logo

as part of transformation process

Products enter every ASEAN countries (except Laos)

Opening of the Stem Cell and Cancer Institute

Implementation of end-to-end supply chain management

Integrate information technology systems

2010: Disposed of Kageo Igar Jaya Established a joint venture

company, Asiawide Kalbe Philippines Inc.

Inaugurated Panca SradhaKalbe as our Corporate Values

Inception and Entrepreneurial

Driven Expansion1966–1995

Enhanced Focus and Consolidation1996–2005

Regionalization2006–2015

Kalbe has a long track record of sustainable growth

6

2011

2011: EPMT Rights Issue to

finance expansion Increased dividend

payout ratio to 51%

0

200

400

600

800

1000

1200

1400

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(US

D m

m)

0

2000

4000

6000

8000

10000

12000

(IDR

bn

)

Sales USD Sales IDR

2012

2012:♦ Generic production

facility comes on stream♦ Acquired PT Hale

International♦ Established a joint

venture company PT Kalbe Milko Indonesia

7/31/2012

4

• Total expenditure on health averaged 2.1%

of GDP over the 11 year period 1999-2009.

Indonesia’s Health Spending Trends

7

Share of Total Health Expenditure (%) 1999-2009

• In Q4 2009, the new Healthcare Law has been

approved and provides guideline for

Government to increase the healthcare

spending from 2% up to 5% of GDP.

• Law on National Social Security System has

been passed since 2004, but implementation

regulation on Social Security Provider Body

(BPJS) has just been passed in October

2011. There will be two BPJS: BPJS Health

(Jan 1, 2014) and BPJS Labor (Jul 1, 2015).

20

30

40

50

60

70

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

public private out-of-pocket private

Source: The World Bank

4.8%

4.1%3.8%

3.5%3.3%

2.1%

0

0.2

0.4

0.6

0.8

1

1.2

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

Malaysia Thailand Philippines India Singapore Indonesia

Healthcare Expenditure/GDP 2010

86101

116133

153173

196

221

247

0

0.2

0.4

0.6

0.8

1

1.2

-

50.0

100.0

150.0

200.0

250.0

300.0

2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F

Total Healthcare Expenditure

(Rp Tn) Growth of 14.1%

Source : Business Monitor International: Pharmaceutical & Healthcare Report, Q3 2011

(Indonesia, Malaysia, Thailand, Philippines, India, Singapore)

Source : Business Monitor International: Pharmaceutical & Healthcare Report, Q3 2011

(Indonesia, Malaysia, Thailand, Philippines, India, Singapore)

8

SECTION 2

Market Overview

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5

43.6 44.4 44.1 41.9 41.9 43.0

56.4 55.6 55.9 58.1 58.1 57.0

2007 2008 2009 2010 2011 F2012

OTC Ethical

Pharmaceuticals Market Breakdown

Source: IMS QPMU 4Q 2011

9

Ethical (Rp Bn) 14,889 17,178 20,220 22,785 25,046 27,526

Ethical Growth (%) 6.0 15.4 17.7 12.7 9.9 9.9

OTC (Rp Bn) 11,561 13,788 15,200 15,713 18,035 20,750

OTC Growth (%) 21.1 19.3 10.2 3.4 14.8 15.1

Total Market (Rp Bn) 26,450 30,966 35,420 38,498 43,081 48,276

Total Growth (%) 12.1 17.1 14.4 8.7 11.9 12.1

Market Splits Remain Stable

Total Market Trend 2007 – F2012

KALBE GROUP

8%

a7%

b6%

c5%

d4% e

4% f3%

OTHERS63%

10

Indonesian Pharmaceuticals Market

Highly Fragmented Industry With More Than 200 Pharmaceutical Players

Total Market (ITMA)

YTD 12 2011

Hospital (IHPA)

YTD 12 2011

Pharmacy (IPA)

YTD 12 2011

Total Market = Rp 13.8TnTotal Market = Rp 43.1Tn Total Market = Rp 7.9Tn

KALBE GROUP

13%

a5%

b5%

c5% d

5%e

4% f3%

OTHERS60%

KALBE GROUP

9%

a7%

b7%

c5%

d4%

e4% f

4%

OTHERS60%

Source : IMS Health Prescription Pharmaceuticals YTD 12 2011(Ethical + OTC)

7/31/2012

6

Recent Indonesian Pharmaceuticals

Regulatory

11

Ministry of Health Decree No. 092 /Menkes/SK/II/2012 issued on 23 February 2012

• Replaces the previous Ministry of Health Decree No. 632 /Menkes/SK/III/2011.

• The Indonesian Ministry of Health has set selling price and retail price caps on 498 generics drugs for

pharmacies, hospitals and other healthcare institutions throughout Indonesia.

Ministry of Health Regulation No. 1010/MENKES/PER/XI/2008 issued on 3 November 2008• It prohibits foreign pharmaceutical companies from registering drugs in Indonesia unless they have local

production facilities.

Ministry of Health Decree No. HK.02.02/Menkes/068/I/2010 issued on 14 January 2010

• Physicians (including doctors, dentists, dental specialists and specialists) who serve in the government health

service facilities shall prescribe generic drugs for all patients.

• Physicians can write prescriptions to be taken at the pharmacy or outside of healthcare facilities if generic drugs

are not available in the healthcare facilities.

• Doctors at the hospital or healthcare facilities may approve the change of generic drugs with branded generic /

prescription drugs if generic drugs are not yet available.

Price Caps on Key Generic Drugs

Mandatory Use of Generic Drugs in Government Healthcare Facilities

Local Production Facilities Requirements

Ministry of Health Decree No. 094 /Menkes/SK/II/2012 issued on 23 February 2012

• Replaces the previous Ministry of Health Decree No. 633 /Menkes/SK/III/2011 issued on 24 March 2011

• The Indonesian Ministry of Health has set different price caps based on different regions for government procurement

in government healthcare facilities.

11

SECTION 3

Business Overview

7/31/2012

7

13

Prescription Pharmaceuticals Division

Net Sales Performance

• Net sales grew by 15.2% to Rp 1,598 Bn in

YTD 06 2012.

• The largest medical representatives team

in Indonesia with more than 2,300

personnel.

• Unique and innovative marketing strategy.

• The Division has launched 8 new products

in the first half of 2012.

• Lower gross profit margin in YTD 06 2012

is mostly due to product mix.

1,387

1,598

66.1%62.9%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

500

700

900

1,100

1,300

1,500

1,700

1,900

30 June 2011 (Unaudited)


SALES in Rp Bn

Gross Profit Margin

+15.2%

Branded Generics

59%Unbranded Generics

9%

Licensed Products

32%

14


Comprehensive Product Range Targeted to All Income Groups

Sales Contribution By

Product Categories

YTD 06 2012

Total Sales = Rp 1,598 Bn

Number of

Products Therapeutic Class

Licensed

Products90

• General Anti-Infectives

• Hospital Solutions

• Oncology

• Blood and Blood Forming Organs

• Musculo-Skeletal System

• Alimentary Tract and Metabolism

Branded

Generics

251


• Central Nervous system

• Musculo-Skeletal System

• Cardiovascular System


Unbranded

Generics42



• Cardiovascular System

• Central Nervous system

Key Licensors

7/31/2012

8

15


Leading in Indonesia Prescription Pharmaceuticals Market Share

Total Market (ITMA)

YTD 12 2011

Pharmacy (IPA)

YTD 12 2011

Hospital (IHPA)

YTD 12 2011

Source: IMS Health Prescription Pharmaceuticals YTD 12 2011 (Ethical)

Total Market = Rp 25.0Tn Total Market = Rp 6.1Tn Total Market = Rp 11.5Tn

KALBE GROUP

12%

a8%

b6%

c4%

d4%

e4%

f4%

OTHERS58%

a7%

KALBE GROUP

7%

b7%

c7%

d5%

e5% f

3%

OTHERS59%

KALBE GROUP

10%a

8%

b8%

c5%

d4%

e4%

f 3%

OTHERS58%


16

New Production Facilities

• Dedicated for generic drugs’ tablet

production line.

• Certification from local FDA has

been obtained in December 2011.

• Inaugurated by Minister of Health

in February 2012.

• New production facility in

Cikarang:

• Dedicated for oncology drugs.

• Construction started in early April 2011 and

expected to be completed in 18 months.

• New production facility in Pulogadung:

7/31/2012

9

17

Consumer Health Division

Strong Brand Equity with Leading Market Position

Therapeutic Class Kalbe’s Products Market Share by Volume

Antacid Promag, Waisan 77.4%*

Anti Diarrhea Neo Entrostop 44.8%**

Cough Remedies Komix, Woods, Mextril, Mixadin 39.1%

Cold Remedies Mixagrip Reg, Mixagrip FB, Procold 35.9%

Multivitamin & Vitamin CCerebrovit, Fatigon, Sakatonik Liver,

Xon-Ce42.2%

Children Multivitamin Cerebrofort, Sakatonik ABC 21.1%

Energy Drink ExtraJoss 23.8%

Market share of Kalbe’s top products YTD December 2011

Source : AC Nielsen jaguar method, based on volume (unit)

Note : * urban data only

** based on AC Nielsen August 2010

932

1,003

56.1% 55.5%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

500

600

700

800

900

1,000

1,100

1,200



SALES in Rp Bn

Gross Profit Margin

• Consumer Health net sales increased

by 7.7% to Rp 1,003 Bn in YTD 06

2012, from Rp 932 Bn in YTD 06 2011.

• The increase was supported by good

sales growth of OTC.

• Gross profit margin decreased from

56.1% in YTD 06 2011 to 55.5% in

YTD 06 2012 due to change in product

mix.


18


+7.7%

7/31/2012

10


19

Leading Market Position

Energy Drink

YTD 12 2011 (Unit)

OTC

YTD 12 2011

Total Market (in volume) = 2,371Mn

Source : AC Nielsen YTD 12 2011

Total Market = Rp 18.0Tn

Source : IMS Health ITMA OTC YTD 12 2011

KALBE GROUP

13%

a8%

b8%

c8%

d5% e

4% f4%

OTHERS50%

a42%

Extra Joss 24%

b 13%

c7%

d6%

Others8%


20

Innovative New Products

Hydro CocoAn isotonic drink made of real coconut water.

Tipco Fruit JuiceA healthy drink made of fruits and vegetables

Original Love Juice & PomegranateFresh bottled fruit juice made of quality fruits available in

orange, guava, apple and pomegranate flavors. Pomerama is

a pioneer and market leader in pomegranate juice in

Indonesia.

Komix DTA non-drowsy cough syrup with more convenient packaging.

Bintang Toedjoe Turun Panas AnakAnalgesic product for children in convenient sachet

packaging

Bintang Toedjoe Masuk AnginTraditional herbal remedy for common cold symptoms

7/31/2012

11


21

Ready to Drink ExtraJoss in Philippines

• Following the success of Ready-to-Drink (RTD)

ExtraJoss in returnable glass bottle (RGB), Kalbe has

launched Extra Joss in PET bottle in March 2011.

• Promoting ExtraJoss through direct-to-customer

programs to improve awareness, convenience and

availability.

22

Complete Range of Nutritional Products

TeenExpecting Lactating Baby Toddler Kid Tween 25+ 35+ Clinical

• Catered to expecting & lactating mothers, babies, toddlers, children, tweens and

adults.

Nutritionals Division

7/31/2012

12

Indonesia Thailand Philippines Malaysia Vietnam South Korea

2006 2.29 13.55 1.48 7.49 2.71 35.7

2007 2.39 12.28 1.51 8.15 2.39 34.92

2008 2.5 12.94 1.31 7.75 2.72 35.83

2009 2.57 13.68 1.52 7.46 2.87 35.73

2010 2.58 13.74 1.51 7.51 2.76 30.83

2011 2.63 14.34 1.55 7.61 2.85 30.61

2012 2.68 14.92 1.58 7.73 2.98 30.99

0

5

10

15

20

25

30

35

40


23

Relatively Low Milk per Capita Consumption

Milk per Capita Consumption (kg)

Source: FAPRI (Food & Agricultural Policy Research Institute) for whole milk powder, liquid milk and non fat dry milk categories

2006 – 2010 = Real Data; 2011 – 2012 = Projection

2.7%

1.6%

1.1%

0.5%

-2.3%

Note : %growth represents 6 years (2006-2012) CAGR

1.6%

13,995 14,810

FY 2010 FY 2011

162,795 169,093

FY 2010 FY 2011


24

Growth of Indonesian Powdered Milk Market

Source : AC Nielsen, YTD 12 2011

By Value (Rp Bn)By Volume (Kg ‘000)

5.8%3.9%

7/31/2012

13

1,130

1,331

60.5% 62.6%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1,500



SALES in Rp Bn

Gross Profit Margin


25


+17.8%

• Nutritionals Division net sales were up

by 17.8% to Rp 1,331 Bn in YTD 06

2012 from Rp 1,130 Bn in YTD 06

2011.

• Existing major products continued to

gain market share.

• Gross profit margin increased to 62.6%

in YTD 06 2012 from 60.5% in YTD 06

2011 mostly due to lower raw material

price.

26

Market Share of Kalbe Nutritionals Products

in its Category YTD December 2011

Gaining Market Shares Against Multinational Competitors

Source : AC Nielsen, based on Value (Rp)

Powder Milk Market Share

YTD 12 2011

Total Market = Rp 14.8 Tn

a

31%

b

19%

d

9%

c

12%

Kalbe

Nutritionals

9%

e

6%

g

3%f

3%

h

3%

i

2% Others

2%

Source : AC Nielsen, based on Value (Rp)

Kalbe’s Products Market Share

Diabetasol 79.5%

Milna 63.5%

Prenagen 55.4%

Morinaga Chil Mil 8.4%

Morinaga BMT 8.6%

Entrasol 7.6%

Morinaga Chil Kid 5.9%

Zee 3.5%

Morinaga Chil School 1.9%


7/31/2012

14

Launching of New Products

Milna Toddler Milk with Vegetable

Formulated milk combined with vegetables concentrate

specially formulated for children (above 1 year old)

27


Lovamil

A new powder milk product for expecting and lactating

mothers, targeted to the middle segment

KidZee and Zee

Powder milk for kids and tweens targeted to the

middle segment, now also available in sachet

packaging

Nutrive Benecol

Smoothie with special ingredient to lower cholesterol

Fitbar

A healthy snack bar made of oats and cereals that comes in 2 flavors,

fruits and nuts, with only 110 calories per bar, Zero Cholesterol and

Zero Trans Fat, enriched with Calcium, Vitamins A, B12 and C

Innovation in Business Channel

28


Modern

Channel

Traditional

Channel

Nutritionals Division launched new channel of consumer order through hotline service Nutrition Home

Delivery (NHD) 500-880 and online shopping through www.kalbestore.com . Kalbe Nutritionals Rewards

offers point rewards for consumers to increase Kalbe products consumption.

Kalbe e-store - the 1st Online Nutrition Store in Indonesia

http://www.kalbestore.com/

http://www.9ori.com/en/media/images/e296fdfd64.jpg

7/31/2012

15

Distribution & Logistics Division

29

The Most Extensive Distribution Network

Branches

65 47CitiesRDC

2

30


• Distribution & Logistics Division is run under

PT Enseval Putera Megatrading Tbk

(EPMT), a publicly listed company

(now, 91.75% owned).

• Net sales represents the 3rd party product

sales and distribution margin of internal

product sales.

• On 29th September 2011, PT Abbott Indonesia

Nutritional Division has signed a distribution

agreement with EPMT for Indonesia coverage

through trade channel.


+54.1%

1,500

2,312

30.4%28.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

-

500

1,000

1,500

2,000

2,500

3,000

3,500



Distribution & Logistics

Gross Profit Margin

7/31/2012

16


31

Distribution Business Details

Total Net Sales = Rp 6,210 BnFigures based on EPMT YTD 06 2012 Unaudited Financial Statements

(Figures in Rp Bn)

Kalbe Group67%

3rd Party Principals

22%

Medical Devices

4%

Raw Materials Trading &

others7%

Distribution & Logisticsand Health Services89%

6,210

627 214

10.1%

3.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Net Sales Gross Profit Income Before Tax

Gross profit margin

Income before taxmargin


32

Medical Devices, a New Growth Driver

Medical Devices is an area of potential growth, especially in the implementation of

National Healthcare Insurance System where demand for medical devices is

projected to grow further.

Net Sales (in Rp Bn)

233 315

502

673

915 870

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Medical Devices

CAGR

30.1%

Major Principals

7/31/2012

17

33

Major Third Party Principals by Category

Prescription

Pharmaceuticals Consumer

Medical Instrument

& Diagnostic

Fine Chemical

Raw Materials


34

New Retail Health Service : Mitrasana Clinic

• A 100% owned subsidiary of EPMT.

• Opening of Mitrasana Clinics as a one-stop service,

includes family doctor, pharmacy, laboratory, and

convenient store.

• Operational excellence in several areas, such as supply

chain management, system and in-store operation.

• To date, Kalbe has opened 27 Mitrasana clinics in

Jakarta and its Greater Area.

• Offered in 2 business models, namely direct investment

and collaboration / joint - operation models.


7/31/2012

18


35

Kalbe believes that strong distribution network is a key competitive advantage, and therefore

is committed to further improve capacities and facilities to achieve better product availability

and working capital management.

Strengthening Distribution Network

Banjarmasin Jember Surakarta Banda Aceh

In December 2011, we completed the upgrading of 4 branches in

Banjarmasin, Jember, Surakarta and Banda Aceh.

1. Expand into new territories in Indonesia

2. Upgrade existing branch facilities to improve service quality

3. Establish several Regional Distribution Centers (RDC) throughout Indonesia

4. Expand warehouse capacity

Kalbe completed Rights Issue in March 2011 in the amount of Rp 300 Bn to finance 2 years

expansion plans:

Marketing and Sales Infrastructure

36

The largest sales force for Pharma and Consumer Health in Indonesia

Prescription

PharmaceuticalsConsumer Health Nutritionals

Distribution &

Logistics

Infra-

structures

Indonesia

Coverage

Comments

• Over 2,300 medical

representatives

• Over 1,000 marketing

personnel

• Over 2,000 sales &

marketing personnel

• Total of 4,000

employees

• 65 marketing branches

throughout Indonesia

• 42 branches & 23 at

subsidiaries

•1,000 trucks

• 500 motorcycles

• Directly cover

200,000 outlets

• Products available in

over 1mn outlets or

80% of total

consumer health

market

Market coverage

• 70% of GP market

covered

• 90% of specialist market

covered

• 100% of all hospitals

covered

• 100% pharmacy

coverage

• Largest marketing

team in Indonesia

• Approximately 1,000

marketing and sales

force

• Market Coverage

throughout Indonesia

• Most developed

telemarketing team in

the nutritional sector

• 80% of consumer

health market

•100% of prescription

pharma market

• Largest sales force in

Indonesia

7/31/2012

19

Manufacturing Infrastructure

37

Operates 10 GMP facilities complying with international standards

FacilityProducts

Manufactured

Building

Area

(m2)

Production Lines Licenses Certification

Kalbe Farma 448 42,6849 lines of Non Beta Lactam Products

(tablet, capsule, cream, liquid oral, injection)Astellas

ISO 9001, ISO 14001,

OHSAS18001

Bintang Toedjoe 46 20,849 3 lines; effervescent, powder & liquid --ISO 9001, ISO 14001,

OHSAS18001, HACCP

Dankos Farma 189 14,9053 factories; Non Beta Lactam, Penicillin &

Cephalosporin linesDaiichi

ISO 9001, ISO 14001,

OHSAS18001

Sanghiang Perkasa 132 11,8696 lines (4 lines sachet, 1 line tin,

1 line mixed sachet)Morinaga

ISO 9001, ISO 14001, HACCP,

OHSAS18001

Saka Farma 32 1,763 Liquid, Non Beta Lactam products -- --

Hexpharm Jaya

(Cikarang)88 16,533

Solid tablet & dry syrup

(Non Beta Lactam products)-- ISO 9001

Hexpharm Jaya

(Cipanas)143 3,400 Solid, Liquid oral & semi solid -- ISO 9001

Fima 24 2,500 Large volume Parenteral Line BaxterISO 9001, ISO 14001,

OHSAS18001

Kalbe Morinaga 19 33,733 1 wet - drier line, 1 can line, 2 sachet lines Morinaga ISO 9001, ISO 22000

Orange Kalbe Ltd. - 5,000 2 lines; tablet and cream -- NAFDAC (local FDA)

38

SECTION 4

Financial Overview

7/31/2012

20

1,387 932 1,130

1,500

4,949

1,598

1,003 1,331

2,312

6,244

Prescription PharmaceuticalsConsumer Health Nutritionals Distribution & Logistics Consolidation

30 June 2011 (Unaudited) 30 June 2012 (Unaudited)

Consolidated Sales

39

Net Sales Growth

Net Sales (in Rp Bn)

15.2%

7.7%17.8%

54.1%

26.2%

27.8% 26.8%

5.7% 5.0%

0.8% 0.8%



Selling & Marketing

General & Administrative

Research & Development

52.1%49.1%



Strong Financial Performance

40

Improved operating expenses efficiency

- 3.1%

Gross Profit Margin Operating Expenses to Net Sales Ratios

• Improved Operating Expenses to Net Sales Ratio

by 1.8% due to strong sales growth.

• Gross Profit Margin decreased by 3.1%

mostly due to change in business mix.

-1.8%34.4% 32.6%

7/31/2012

21

675

807

13.6% 12.9%

0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%

500

600

700

800

900

1,000

1,100



Net Income in Rp Bn

Net Income Margin

903

1,088

18.3%17.4%

0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%20.0%

500

700

900

1,100

1,300

1,500



Income Before Tax in Rp Bn

Income Before Tax Margin


41

Strong Earnings Growth

Income Before Tax Margin Net Income Margin

• Income before tax was up by 20.5% to

Rp 1,088 Bn

+20.5%

• Net Income was up by 19.6% to Rp 807 Bn

+19.6%

7297

137158

72 86

FY 2008 (Audited)

FY 2009 (Audited)

FY 2010 (Audited)

FY 2011 (Audited)

30 Jun 2011 (Unaudited)

30 Jun 2012 (Unaudited)


42

High Earnings per Share Growth

+19.6%

• Expansion of margin• Operating profit margin grew from 14.5%

in 2008 to 18.1% in 2011

• Net income margin grew from 9% in 2008

to 13.6% in 2011

• Share buy back program

• Company has 780,990,000 treasury shares

which represents 7.7% of total

outstanding shares

• Total cash spent for treasury shares was

Rp 687 bn

• Current market value of treasury shares

approximately Rp 2,812 bn

• Increase of ownership in several

subsidiaries

• PT Enseval Putera Megatrading Tbk from

58.8% in 2008 to 91.75% in 2011

• PT Saka Farma from 80% in 2008 to 100%

in 2009

High EPS Growth4 Yr - CAGR

30%

7/31/2012

22

43 45 44 50

46

142

122 110 115

129

27 38 35

57 49

158

129 120

108 126

31 December 2008 (Audited)





No. of days

Days of Account Receivables Days of Inventories

Days of Account Payables Net Operating Cycle

Working Capital Management

43

A Temporary Spike in Working Capital

End-to-end supply chain

management would be

continuously implemented

to overcome any

fluctuation in inventory

Net Operating Cycle has

been decreased by 32 days

from 158 days in 2008 to 126

days in 2012

Temporarily building up

inventory level due to price

trend and Ramadhan festive

season

Solid Financial Position

44

Total Debt and Gearing Ratio Cash & Net Cash Balance

Rp 2.0 Trillion of Net Cash Position

405340

25

141

65

11.2%

7.9%

0.5%

2.3%

1.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

50

100

150

200

250

300

350

400

450

FY 2008 (Audited)

FY 2009 (Audited)

FY 2010 (Audited)

FY 2011 (Audited)

YTD 06 2012 (Unaudited)

Total Debt in Rp Billion

Gearing Ratio

1,322

1,562

1,902

2,291 2,099

917

1,223

1,877

2,151 2,034

FY 2008 (Audited)

FY 2009 (Audited)

FY 2010 (Audited)

FY 2011 (Audited)

YTD 06 2012 (Unaudited)

Cash and Cash Equivalent in Rp Billion

Net Cash in Rp Billion

7/31/2012

23

45

SECTION 5

Corporate Actions &

Outlook 2012

Corporate Actions in 2012

46

To accelerate expansion in the ready-to-drink segment, on July 6,

2012, Kalbe completed the acquisition of PT Hale International, a

health beverage manufacturing company, worth Rp 93.9 billion.

Acquisition of PT Hale International

Special Dividend Payment in 2011

Kalbe has obtained the approval of the AGMS

on May 23, 2012 to pay dividend of Rp 891 bn,

or equivalent to Rp 95 per share. This reflects a

higher payout of 60% which is a special

dividend for financial year 2011.

Dividend has been paid on July 17, 2012.

Historical Dividends

10.0 12.5 25.0

70.095.0

14% 17%26%

51%60%

0%

20%

40%

60%

80%

0.0

20.0

40.0

60.0

80.0

100.0

2007 2008 2009 2010 2011

Cash Dividend (Rp/share) Dividend Payout Ratio (%)

Joint Venture to form PT Kalbe Milko Indonesia

Kalbe signed an agreement with PT Milko Beverage Industry to form a joint

venture company, PT Kalbe Milko Indonesia, to manufacture liquid nutritionals

products with an estimated investment of Rp 100 – 150 Bn.

7/31/2012

24

Achievements in 2011 and 2012

47

• ASEAN Business Awards 2011 – Most Admired Enterprise for Innovation category,

from ASEAN

Major Awards in 2011 and 2012

• Best Managed Companies Award, from Finance Asia

• Worldstar Award 2011-2012 in Medical and Pharmaceutical Category,

from World Packaging Organization in United Kingdom.

• Indonesia 2nd Best Investor Relations, from Asia Money.

Outlook 2012

48

Updated Earnings Guidance 2012

• Encouraging financial results in 1H-2012

• More optimist for price increase in 1H-2012

• Improving trend for newly launched products

1. Year-on-year Sales Growth 20% - 25%

2. Operating Profit Margin 16% - 16.5%

3. Earnings per Share Rp 183– Rp 190, representing a year-on-year growth of 16% - 20%

4. Dividend payout ratio minimum 50%

Prescription

Pharmaceuticals

25%

Consumer

Health

17%Nutritionals

22%

Distribution &

Logistics

36%

YTD September 2011 2012

In the short term, change in business mix is expected to impact margin. However, Kalbe believes that

our Pharma, Consumer Health and Nutritionals businesses will grow faster and allow us to resume

existing business mix and profitability level.

7/31/2012

25

49

SECTION 6

Appendix

Financial InformationYTD June 30, 2012 (Unaudited)

Unaudited Financial Statement

YTD 06 2012

50

Consolidated Balance Sheets

* Comparative Jun 2012 to Dec 2011 in compliance with SFAS No. 1

ASSETS

CURRENT ASSETS

Cash and Cash Equivalents 2,291,335,810,101 2,098,746,986,435 -8.4%

Short-term Investments 113,871,418,384 230,891,547,975 102.8%

Trade Receivables 1,529,991,628,590 1,585,988,331,748 3.7%

Other Receivables 105,319,628,145 123,819,783,907 17.6%

Inventories 1,705,189,186,310 2,284,449,261,310 34.0%

Other Current Assets 210,415,568,777 294,243,929,524 39.8%

TOTAL CURRENT ASSETS 5,956,123,240,307 6,618,139,840,899 11.1%

TOTAL NON-CURRENT ASSETS 2,318,430,872,533 2,522,976,139,682 8.8%

TOTAL ASSETS 8,274,554,112,840 9,141,115,980,581 10.5%

31 December 2011

(Audited)

30 June 2012

(Unaudited) % Change

7/31/2012

26

51



YTD 06 2012

* Comparative Jun 2012 to Dec 2011 in compliance with SFAS No. 1

LIABILITIES

CURRENT LIABILITIES

Short-term Loans 140,056,547,003 64,038,983,989 -54.3%

Trade Payables 850,398,382,129 868,710,907,998 2.2%

Other Payables 202,423,719,905 202,439,971,482 0.0%

Dividend Payables - 890,627,320,090 100.0%

Accrued Expenses 283,137,947,283 426,136,469,610 50.5%

Taxes Payable 154,286,544,102 123,849,340,533 -19.7%

Current Maturities of Obligations Under Finance Leases 285,388,096 275,972,659 -3.3%

TOTAL CURRENT LIABILITIES 1,630,588,528,518 2,576,078,966,361 58.0%

TOTAL NON-CURRENT LIABILITIES 128,030,525,896 133,978,032,382 4.6%

TOTAL LIABILITIES 1,758,619,054,414 2,710,056,998,743 54.1%

EQUITY

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY

Capital Stock -Issued and Fully Paid - 10,156,014,422 Shares 507,800,721,100 507,800,721,100 0.0%

Additional Paid-in Capital 4,441,133,136 4,441,133,136 0.0%

Retained Earnings 6,407,439,270,888 6,324,113,133,264 -1.3%

Treasury Stocks - 780,990,000 Shares (687,283,369,009) (687,283,369,009) 0.0%

Others (17,579,625,197) (13,195,724,352) 24.9%

Sub-total 6,214,818,130,918 6,135,875,894,139 -1.3%

Non-controlling Interest 301,116,927,508 295,183,087,699 -2.0%

EQUITY, NET 6,515,935,058,426 6,431,058,981,838 -1.3%

TOTAL LIABILITIES AND EQUITY 8,274,554,112,840 9,141,115,980,581 10.5%

31 December 2011

(Audited)

30 June 2012



YTD 06 2012

52


ASSETS

CURRENT ASSETS

Cash and Cash Equivalents 2,356,318,272,435 2,098,746,986,435 -10.9%

Short-term Investments 66,527,688,357 230,891,547,975 247.1%

Trade Receivables 1,508,927,327,275 1,585,988,331,748 5.1%

Other Receivables 77,854,053,068 123,819,783,907 59.0%

Inventories 1,534,517,879,330 2,284,449,261,310 48.9%

Other Current Assets 260,512,032,480 294,243,929,524 12.9%

TOTAL CURRENT ASSETS 5,804,657,252,945 6,618,139,840,899 14.0%

TOTAL NON-CURRENT ASSETS 2,090,194,007,687 2,522,976,139,682 20.7%

TOTAL ASSETS 7,894,851,260,632 9,141,115,980,581 15.8%

30 June 2011

(Unaudited)

30 June 2012


7/31/2012

27

53



YTD 06 2012

LIABILITIES

CURRENT LIABILITIES

Short-term Loans 139,497,671,383 64,038,983,989 -54.1%

Trade Payables 624,173,005,578 868,710,907,998 39.2%

Other Payables 145,299,522,273 202,439,971,482 39.3%

Dividend Payables 658,395,793,565 890,627,320,090 0.0%

Accrued Expenses 293,853,619,330 426,136,469,610 45.0%

Taxes Payable 74,152,492,101 123,849,340,533 67.0%

Current Maturities of Obligations Under Finance Leases 269,935,999 275,972,659 2.2%

TOTAL CURRENT LIABILITIES 1,935,642,040,229 2,576,078,966,361 33.1%

TOTAL NON-CURRENT LIABILITIES 114,115,076,251 133,978,032,382 17.4%

TOTAL LIABILITIES 2,049,757,116,480 2,710,056,998,743 32.2%

EQUITY

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY

Capital Stock -Issued and Fully Paid - 10,156,014,422 Shares 507,800,721,100 507,800,721,100 0.0%

Additional Paid-in Capital 4,441,133,136 4,441,133,136 0.0%

Retained Earnings 5,600,207,696,279 6,324,113,133,264 12.9%

Treasury Stocks - 780,990,000 Shares (687,283,369,009) (687,283,369,009) 0.0%

Others (24,942,968,707) (13,195,724,352) 47.1%

Sub-total 5,400,223,212,799 6,135,875,894,139 13.6%

Non-controlling Interest 444,870,931,353 295,183,087,699 -33.6%

EQUITY, NET 5,845,094,144,152 6,431,058,981,838 10.0%

TOTAL LIABILITIES AND EQUITY 7,894,851,260,632 9,141,115,980,581 15.8%

30 June 2011

(Unaudited)

30 June 2012


54

Consolidated Statements of Income


YTD 06 2012

NET SALES 4,948,716,279,038 6,243,946,899,934 26.2%

COST OF GOODS SOLD 2,368,068,908,712 3,180,797,227,933 34.3%

% to NS 47.9% 50.9% 3.1%

GROSS PROFIT 2,580,647,370,326 3,063,149,672,001 18.7%

% to NS 52.1% 49.1% -3.1%

Selling Expense (1,378,163,251,374) (1,672,307,721,055) 21.3%

% to NS -27.8% -26.8% 1.1%

General and Administrative Expense (283,516,533,291) (312,560,921,433) 10.2%

% to NS -5.7% -5.0% 0.7%

Research and Development Expense (40,294,767,609) (47,739,505,582) 18.5%

% to NS -0.8% -0.8% 0.0%

Inventory Write-off (11,124,123,041) (14,222,451,739) 27.9%

Interest Expense and Financial Charges (3,990,345,133) (6,322,051,995) 58.4%

Interest Income 50,557,108,970 45,669,378,244 -9.7%

Gain (Loss) on Foreign Exchange, Net (15,357,264,769) 16,409,673,740 -206.9%

Gain on Sale of Property and Equipment 1,304,478,979 13,432,509,284 929.7%

Miscellaneous, Net 3,299,072,677 2,734,775,222 -17.1%

INCOME BEFORE INCOME TAX

BENEFIT (EXPENSE) 903,361,745,735 1,088,243,356,687 20.5%

% to NS 18.3% 17.4% -0.8%

30 June 2011

(Unaudited)

30 June 2012


7/31/2012

28

55

Consolidated Statements of Income


YTD 06 2012

30 June 2011

(Unaudited)

30 June 2012


INCOME TAX EXPENSE, NET 210,506,182,147 262,266,648,961 24.6%

% to NS 4.3% 4.2% -0.1%

INCOME FOR THE PERIOD 692,855,563,588 825,976,707,726 19.2%

% to NS 14.0% 13.2% -0.8%

OTHER COMPREHENSIVE INCOME (EXPENSES) 7,485,025,880 760,145,852 -89.8%

COMPREHENSIVE INCOME FOR THE PERIOD 700,340,589,468 826,736,853,578 18.0%

% to NS 14.2% 13.2% -0.9%

Income for the Period Attributable to:

Parent Company 675,205,595,259 807,301,182,466 19.6%

Non-controlling Interest 17,649,968,329 18,675,525,260 5.8%

Total 692,855,563,588 825,976,707,726 19.2%

% to NS 14.0% 13.2% -0.8%

Comprehensive Income for the Period

Attributable to:

Parent Company 682,690,621,139 807,832,688,963 18.3%

Non-controlling Interest 17,649,968,329 18,904,164,615 7.1%

Total 700,340,589,468 826,736,853,578 18.0%

% to NS 14.2% 13.2% -0.9%

Earnings Per Share Attributable

to Equity Holder of the Parent 72 86 19.6%

56


YTD 06 2012Consolidated Statement of Cash Flows

CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from customers 5,173,332,213,212 6,789,208,920,225 31.2%

Cash paid to suppliers and employees (2,879,347,821,633) (4,604,650,343,758) 59.9%

Cash provided by operations 2,293,984,391,579 2,184,558,576,467 -4.8%

Receipts of claims for income tax refund 5,460,616,386 15,293,283,688 180.1%

Payments of income taxes (269,101,750,391) (280,589,962,128) 4.3%

Payments of other operating expenses, net (1,507,547,753,218) (1,607,696,700,103) 6.6%

Net Cash Provided by Operating Activities 522,795,504,356 311,565,197,924 -40.4%

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of short-term investments

and time deposits 74,088,231,846 20,000,000,000 -73.0%

Interest income received 53,366,658,357 45,669,378,243 -14.4%

Proceeds from sales of property and equipment 17,466,780,318 21,774,894,623 24.7%

Acquisitions of property, plant and equipment (192,871,884,426) (346,458,817,386) 79.6%

Placements in short-term investments

and time deposits (135,300,000,000) (129,600,000,000) 4.2%

Acquisitions from other investing activities, net 463,131,957 1,936,912,433 -318.2%

Net Cash Used in Investing Activities (182,787,081,948) (386,677,632,087) -111.5%

30 June 2011


30 June 2012

(Unaudited)

7/31/2012

29

57


YTD 06 2012Consolidated Statement of Cash Flows

30 June 2011


30 June 2012

(Unaudited)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank loans 289,574,000,000 115,654,125,546 -60.1%

Receipts of capital contributions from

Subsidiaries' non-controlling interest 39,339,700,116 - -100.0%

Payments of bank loans (175,234,229,596) (199,346,066,868) 13.8%

Payments of interest expense (3,504,629,011) (6,719,110,715) 91.7%

Payments of cash dividends

Subsidiaries (5,865,122,995) (21,455,115,931) 265.8%

Payments from other financing activities, net (8,675,780,025) (11,288,128,880) 30.1%

Net Cash Provided by (Used in) Financing Activities 135,633,938,489 (123,154,296,848) -190.8%

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT 475,642,360,897 (198,266,731,010) -141.7%

Net Effect of Changes in Foreign Exchange Rates of Foreign Currency

Denominated Cash and Cash Equivalents (22,495,673,742) (2,338,863,805) -89.6%

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,893,315,663,897 2,289,700,859,692 20.9%

CASH AND CASH EQUIVALENTS AT END OF PERIOD 2,346,462,351,052 2,089,095,264,877 -11.0%

THANK YOU

58

For further information:

PT Kalbe Farma Tbk.

Jalan Let.Jend. Suprapto Kav. 4

Jakarta 10510, Indonesia

Tel. : 62-21-42873888

Fax. : 62-21-42873678

Email : [email protected]

[email protected]

[email protected]

Website : www.kalbe.co.id