PT. Kalbe Farma Tbk. Received ASEAN Business Award

PT Kalbe Farma Tbk. (“KLBF”) today announced receipt of ASEAN Business Award.

Kalbe received the ASEAN Business Award as the winner for the Corporate Social Responsibility category in the ASEAN Business and Investment Summit 2007 held in Singapore on November 18, 2007.

Kalbe was the only company from Indonesia who received the award and had been honored as one of the most admired ASEAN Enterprises.

The ASEAN Business Award was held for the first time by ASEAN Business Advisory Council, a council established by the head of ASEAN countries on the 7th ASEAN Summit at Bandar Seri Begawan, Brunei Darussalam on November 2001.

The qualifying criteria among others are ASEAN-incorporated enterprises with at least 40% ASEAN equity, ASEAN presence (operating in two or more ASEAN countries), Annual revenue of at least USD 20 million, and potential to become a global company in the future.

Further, all participants were selected and assessed based on 4 categories: Growth, Innovation, Employment and Corporate Social Responsibility.

“This award is the recognition for Kalbe as one of the best companies in ASEAN, not only in Indonesia. In the future, Kalbe will continuously improve its capability in all areas, not only in corporate social responsibility activities, but also in innovation, employment and growth,” said Johannes Setijono, CEO of Kalbe.

BAHASA

Kalbe's corporate bond ratings is upgraded to AA

Kalbe.co.id - One of Indonesia's most reputable rating agency: PT Pemeringkat efek Indonesia (Pefindo) has just upgraded Kalbe and its 2006's IDR 300 billion corporate bond to become id AA from id AA- for the period Jun 29, 2007 until Jun 1, 2008. This rating outlook is in the "stable" category.

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PT. Kalbe Farma Tbk. Annual General Meeting of Shareholders

In the year 2006, PT Kalbe Farma Tbk. (“the Company”) recorded net sales of IDR 6.07 trillion, 3.42% higher if compared to 2005’s figures of IDR 5.87 trillion. The year of 2006 is often referred to as “The Restructuring Year” by the Management because they have undertaken many projects in order to produce synergies. These synergies are one of the objectives why the Company did a merger the year before.

The Company’s gross profit in 2006 was IDR 3.1 trillion, or 4.57% higher if compared to the 2006’s figures. Some improvement can be seen in the gross profit margin; it has increased from 50.47% in 2005 to become 51.04% in 2006. This is mainly because of the strengthening and stabilizing of Indonesian Rupiah against the United States Dollar which caused reduction of the Company’s cost of imports of raw material.

Operating profit has also increased by 1.06% to become IDR 1.07 trillion if compared with 2005’s restated figures of IDR 1.06 trillion. Operating profit margin was reduced from 18.06% to become 17.64%. Low sales growth is mainly to blame for this.

The Company recorder 2006 net profit of IDR 677 billion, or 8.06% higher if compared to 2005’s restated figure of IDR 626 billion. This growth is mainly contributed by lower interest and financial expense as well as realized gain from foreign exchange.

The Company’s Annual General Meeting of shareholders held on May 22, 2007 has approved the following matters:

1. To approve director’s annual accountability for the year ended on December 31, 2006 as well as to approve and ratify the company’s planning for year 2007;

2. To approve and ratify the company’s yearly result for the year ended on December 31, 2006 which was audited by Public Accountant: Prasetio, Sarwoko & Sandjaja with its undoubted opinion, and to give full discharge of responsibility to the Board of Directors for their management and to the company’s Board of Commissioners for their supervision during the year ended on December 31, 2006 (acquit et de charge) as long as the results are reflected in the financial figures of Company’s annual report for the year ended on December 31, 2006;

3. a. To approve the allocation of the Company’s net profit for the year ended on December 31, 2006 to be as follows:

i. Acknowledging the Company’s execution of share buyback, each share will receive IDR 10 (ten rupiah), or up to IDR 101,560,144,220 (one hundred one billion five hundred sixty million one hundred forty-four thousand and two hundred twenty rupiah), will be given to shareholders as cash dividends;

ii. IDR 6,765,816,539 (six billion seven hundred sixty five million eight hundred sixteen thousand five hundred thirty nine rupiah) will be kept as an additional working capital for the Company;

iii. The remaining amount, IDR 568,255,693,113 (five hundred sixty eight billion two hundred fifty five million six hundred ninety three thousand one hundred thirteen rupiah) will be added to retained earnings;

b. To give authority to the Management to do everything that is needed in relation to the decisions stated in point (3a) above. All these decisions is in accordance to the prevailing rules and regulations which includes the preparation of carrying out the cash dividend payout.

4. a. To accept resignation request of Yosef Darmawan Angkasa as the Company’s Director and Rustiyan Oen as the Company’s Commissioner with appreciation of gratitude for their recorded supervision and services rendered; and to fully free them of their obligations and responsibilities. (acquit et de charge)

b. To approve the appointed Ferdinand Aryanto as the Company’s Commissioner as of the end of this AGM until the next AGM in 2008. This resulted in the following Management list:

President Director : Johannes Setijono

Vice President Director : Johanes Berchman Apik Ibrahim

Vice President Director : Budi Dharma Wreksoatmodjo

Director : Bernadette Ruth Irawati Setiady

Director : Santoso Oen

Director : Vidjongtius

Director : Herman Widjaja

Director : Justian Sumardi

President Commissioner : Boenjamin Setiawan

Commissioner : Nina Gunawan

Commissioner : Ferdinand Aryanto

Independent Commissioner : Johannes Baptista Soemarlin

Independent Commissioner : Inne Erna Adriana Soekaryo

d. To give full authority to the Company’s Board of Directors to notarized the new Board of Directors and Board of Commissioners lists and to report them to the appropriate government organization by way of registering it into the Company’s registered form or any necessary action needed to be done in accordance to the prevailing rules and regulations.

d. To give full authority to the meetings of the company’s Board of Commissioners to determine salary and incentive for member of Board of Commissioners and to give full authority to Board of Commissioners of the company to determine honorarium/salary for member of the company’s directors for year 2007;

5. To give full authority to Board of Commissioners and/or Directors of the company to appoint Public Accountant listed in Capital Market Supervisory Body for auditing the company’s bookkeeping for year 2007, also to give authority to the company’s board of directors to determine their honorarium and other appointment requirements.

BAHASA

Kalbe Farma Announced 2007 First Quarter Results

JAKARTA, Indonesia – Apr 30, 2007 – PT Kalbe Farma Tbk. (“Kalbe”) today released financial results for the year ended Mar 31, 2007.

“The main growth driver in this first quarter of 2007, is the Prescription Division. This division’s growth rate of more than 37% is much higher than its CAGR for the last five years. This is a clear evidence to indicate that more than ever before, we are more focused on building and maintaining our leading position in Indonesia’s pharmaceutical industry,” said Justian Sumardi, Corporate Secretary of Kalbe.

Mar 31, 2007 Financial Highlights

Revenues - Kalbe reported revenue of IDR 1.56 trillion for the first quarter of 2007, an increase of 8.65% compared to the previous year’s figure of IDR 1.43 trillion.

Prescription Revenues - Kalbe main business line, the Prescription Pharmaceutical Division, contributes 28.2% to the total consolidated revenues. This division reported revenue of IDR 437.94 billion, or 37.57% higher than the previous year’s performance. The main reason for this growth is that Kalbe has successfully completed one of its merger integration projects which is to reorganize the marketing divisions within the whole group. The reorganization has resulted in an increase of customer coverage by about 20%, and has also created new teams to cover several new therapeutic classes which were not covered before.

Nutritional Revenues - Kalbe’s 2^nd most important division is the Nutritional Division which contributes 23.2%. This division record revenues of IDR 360.23 billion, or 17.44% higher than the previous year’s figures. We believed that it could performed better just like before because Kalbe’s nutritional products are generally higher priced than the competitors’ to target the high income segment who is not significantly affected by the relatively recent fuel price hike. Although demand of Kalbe’s nutritional products has been consistently increasing considerably but this period’s growth is less than the division’s CAGR within the last four years. The main reason for this is that this division has been experiencing finished goods supply shortage problems. This problem is caused by one of the toll out manufacturing facilities. Fortunately, this condition will not persist for longer time because Kalbe’s new subsidiary, Kalbe Morinage Indonesia has just been inaugurated. The new factory has started its commercial production as of April 9, 2007.

Distribution Revenues - Kalbe’s Distribution Division contributes 20.7% of total consolidated revenues, it recorded revenues of IDR 321.2 billion, or 26.26% higher versus the previous year’s figures. Since this Division’s revenues figures only take account revenues generated from third parties’ products, the Management acquired more third parties to distribute through the division’s network.

OTC Revenues - Kalbe’s OTC Division performed quite poorly in this period if compared to the previous year. This division currently contributes 14.1% to the total consolidated revenues; it recorded revenues of IDR 218.79 billion, or 2.71% lower than the previous year’s figures. The Management believed that the reason for this poor performance is that the purchasing power of lower to middle income segment has not recovered strongly.

Energy Drink Revenues – Similar to the previous division, Kalbe’s Energy Drink Division is very much affected by the reduced consumer purchasing power effect. The main consumers for this divisions’ products are people who belong to the low income segment. The division currently contributes 10.5% to the total consolidated revenues. It recorded revenues of IDR 163.88 billion, or 37.8% lower than the previous year’s figures. One of the ways that Management has done is to launch 3 new flavors of Extra Joss: Grape, Cream Soda, and Apple in March 2007.

Packaging Revenues - Kalbe’s Packaging Division contribute 3.4% of the total consolidated revenues. It recorded revenues of IDR 53.34 billion, or 16.33% lower than the previous year. This Division’s revenues figures only take account revenues generated from providing packaging service to third parties’. The Management believed that the reason for this poor performance is that their costs has significantly increased due to the increasing fuel price. Furthermore, the whole industry itself is experiencing a slowdown mainly due to the slower economic consumption.

Gross profit - Gross profit is recorded at IDR 795.32 billion, 10.11% higher than the previous year’s. In parallel, gross profit margin increased from 50.5% of Net Revenues last year to become 51.1% of Net Revenues this year. This is due to the favorable and stable US Dollar exchange rate resulting in favorable cost of raw material that is mostly imported.

Operating Profit - Operating Profit reached IDR 331.82 billion, 5.01% higher than the previous year’s restated figures of IDR 315.99 billion.

Net Profit - However, the Company posted net profit of IDR 222.89 billion; 11.3% higher than 2006’s restated figure of IDR 200.26 billion. The growth is mainly contributed by the decrease of interest expense and realized gain/loss of foreign currency exchange.

KALBE FARMA Announced 2006 Full Year Audited Results

PT Kalbe Farma Tbk. (“Kalbe”) today released financial results for the year ended December 31, 2006.

“Although we only managed to record a single digit sales growth this year, we are quite pleased with the performance because once again we had successfully beat the pharmaceutical industry growth,” said Johannes Setijono, CEO of Kalbe. “The year 2006 was an unusual year for the pharmaceutical industry in Indonesia. The industry usually performed a double digit growth every year but according to IMS, an independent research company which specialized in pharmaceutical information analysis, the market size of the industry (OTC + Prescription drugs) for 2006 has a year-on-year growth rate of -1.9. This figure can be further segregated into -5.7% growth for the Prescription drugs and 4% growth for the OTC drugs.”

This abnormality is mainly due to two macro-level incidents that happened during the year. The first incident is that the Government has decided to greatly reduce the amount of fuel subsidies it is giving to the Indonesians. This happened approximately in the month of October of 2005. As a result fuel price increased by an average 100%. This resulted in a significantly hampered consumer purchasing power especially to the people that belong in the middle to lower earnings segment that experienced the hardest hit.

But an even more disrupting effect came from the new Government regulation which was announced effective as of July 2006. Due to pressure coming from the Government, the association of local pharmaceutical producers decided to take a preemptive action to voluntarily lower the prices of 34 active pharmaceutical ingredients which defines to approximately 1,400 prescription product SKUs in the national market. The price decrease ranges from 10% to 70% of the original price. The deadline given for every pharmaceutical producers to reduce their prices was October 2006. Another regulation that was passed in the same year was the price reduction of certain unbranded generic drugs up to 50%.

YE Dec 31, 2006 Financial Highlights

Revenues - Kalbe reported revenue of IDR 6.07 trillion for the year ended in December 31, 2006, an increase of 3.42% compared to the previous year’s figure of IDR 5.87 trillion. Given the “not so good performance” year, the year 2006 was a meaningful year to Kalbe because this is commonly called ”The Restructuring Year” as the BOD has overtaken several projects that are aimed to successfully integrate the previous 2005 merger.

Prescription Revenues - Kalbe main business line, the Prescription Pharmaceutical Division, contribute 24% to the total consolidated sales. This division reported revenue of IDR 1.46 trillion, or 8% higher than the previous year’s performance. The main reason for this growth is that Kalbe has successfully completed its integration project to reorganize the marketing divisions within the whole group, coupled with the fact that Kalbe is not as deeply affected by the price reduction regulation. Therefore this rarely happening single digit growth from the division is well received by the Management because it is considered to be a rewarding experience if we compare ourselves to the rest of the companies in the Prescription Industry that performed an average of -5.7% year on year growth. This fact further supports how Kalbe became the number 1 player in the prescription industry with a market share of 10.6% as stated by IMS by the end of 2006. In the same statistics report, Kalbe ranked 3^rd at the end of the previous year with a 9.4% market share.

Nutritional Revenues - Kalbe’s 2^nd most important division is Nutritional Division which contribute 21.8%. The division is also not spared by the macro-level incidents but still manage to record sales of IDR 1.32 trillion, or 21.4% higher than the previous year’s figures. We believed that one of the reasons for this somewhat high growth is that Kalbe’s Nutritional Division mainly manufactures a generally higher priced products which are targeted towards the high income segment people which is not as greatly affected by the fuel price hike.

OTC Revenues - Kalbe’s OTC Division performed quite poorly this year if compared to the previous years. This division contribute 15.5% to the total consolidated sales; it recorded sales of IDR 1.32 trillion, or 3.8% lower than the previous year’s figures. Although the OTC is not as regulated as the Prescription industry, the Management believed that the reason for this is the macro-level incidents that was mentioned earlier in this document as well as a significant reduction of OTC products exports to Nigeria.

Energy Drink Revenues - Kalbe’s Energy Drink Division is very much affected by the reduced consumer purchasing power effect. This Division is currently contributing 14.8% to the total consolidated sales. It recorded sales of IDR 896 billion, or 8% lower versus 2005 figures. We believed that one of the main reasons for this minus growth is that Indonesia’s Energy Drink Industry performed poorly. The energy drink industry is also facing a fierce competition from non head to head competitors in other beverage category such as vitamin water. On the other hand, the exports of our energy drink products is doing relatively well, such as our exports to Philippines.

Distribution Revenues - Kalbe’s Distribution Division contribute 19.9% of total consolidated sales, it recorded sales of IDR 1.21 trillion, or 3.1% lower versus the previous year’s figures. This Division’s sales figures only take account sales generated from third parties’ products. The Management believed that the reason for this minus growth is that the previous year’s performance which is used as a benchmark with 2006, still include the sales of products from two principals that parted their ways with us in 2005.

Packaging Revenues - Kalbe’s Packaging Division contribute 4% of the total consolidated sales. It recorded sales of IDR 246 billion, or 5.8% higher than the previous year. This Division’s sales figures only take account sales generated from providing packaging service to third parties’. The Management believed that the reason for this slow growth is that while the fuel price hikes significantly increased their costs. The industry itself is experiencing a slowdown mainly due to the slower economic consumption for the year.

Gross profit - Gross profit is recorded at IDR 3.1 trillion which is 4.57% higher than the previous year’s. At the same time gross profit margin increased from 50.47% of Net Sales last year to become 51.04% of Net Sales this year. This is due to the favorable and stable US Dollar exchange rate resulting in favorable cost of raw material that is mostly imported.

Operating expense - Operating expense increased by 6.52% versus the same period last year. The Company will further make utmost efforts to minimize its expenses particularly its selling expenses so as to be in proportion with its sales growth towards the year end.

Operating Profit - Operating Profit reached IDR 1.07 trillion which is 1.06% higher than the previous year’s restated figures which was IDR 1.06 trillion. Operating profit ratio decreased from 18.06% of Net Sales to become 17.64% of Net Sales this year.

Net Profit - However, the Company posted net profit of IDR 677 billion; or 8.06% higher than 2005’s restated figure of IDR 626 billion. The growth is mainly contributed by the decrease of interest expense and realized gain/loss of foreign currency exchange.

BAHASA

Kalbe Farma’s New Look, 6 March 2007

If you have accessed Kalbe’s website (http://www.kalbe.co.id) since 6 March 2007, you must have seen a different look compared to the days before. Starting with the logo, the web’s appearance also underwent a modification. This time Kalbe’s web looks more minimalist, informative and full with useful features. All these followed Kalbe’s new tag line, which is Life Enriching Science.


Front Page

The front page, which is usually called HOME is different with the previous one. The new look offers many conveniences. All the things that are frequently accessed by visitors are placed at the front page, namely: Annual report, Calendar of Event, Kalbe Offices (branch offices), Careers at Kalbe and Community are a group of articles under Kalbe’s web. All are Kalbe’s web characteristics that have been around all these time. Your first pit stop – to care for your health – and explore the Internet.


Additional Features: Health Consultation and My Kalbe

Several features were added or have their functions optimized, namely Health Consultation, which is a forum for health consultation. Users who want to ask will be asked to log in first.


Still Confused?

The web administrators urge the users to login every time they make a visit. Because when they are logged in (free sign up), users can personalized the web appearance. Any articles that are read frequently, can be placed at the front page and therefore it will look as minimalist as the user’s wished. Also, users can use other features as optimum as possible.

(Note: for Kalbe employees who already have a web-mail, there is no need to sign up. Please log-in using the given username and password).


Making a Better Life

All of these can make you feel more comfortable when you are browsing because we really care. With our new look that represents our care and attention for you, we are ready to give the best for all of you. We hold on to our commitment to keep dedicating science to enrich life.
With our new look, we are ready to step further into becoming a web with international standard in order to create a healthy and prosperous community.

Kalbe Shares: Post Flooding Social Service February 2007

No less than 10 doctors with 40 nurses and volunteers from Kalbe Shares came to TNI AL Kodamar Complex, North Jakarta, Thursday, 15 February 2007. PT Kalbe Farma Tbk did this post-flooding social service in collaboration with MitraKeluargaHospital and TNI AL Marine Corps. The activities carried out including free post flooding treatment and the giving out of baby food.

Straight from the location, Dr Sujitno Fadli one of the medical team explained that there are about 545 patients that came for check ups. The community’s enthusiasm is very high. This could be seen during the time of registration that was suppose to be closed at 14.00 lasted much longer because there were so many people. The diseases mostly found were muscle pain, flu, skin diseases (eczema and daphnia) There were also people who still complain of having diarrhea as well as needing to have their wounds treated.

Besides the above activities, during this post-flooding time, Kalbe Farma also distributed medications such as Entrostop, Kalpanax, etc through 60 organizations and flood posts to areas that were flooded. “Besides distributing medications we also give out banner to remind people about the importance of cleanliness to keep diseases namely diarrhea and skin diseases at their minimum” explained Mr. Abdi Aydi Jaya of Kalbe Farma, as one of the event’s coordinators.

The activity is part of Kalbe Shares program which is a CSR project from PT Kalbe Farma Tbk that has been going on for a long time and being carried out continuously, covering aids in the field of education, health and facility repairs.
Kalbe hopes that these activities may contribute in building up the general community’s welfare.

Promag Received Indonesian Original Product Award 2006

The Indonesian Original Product 2006 Award held by the Indonesian Department of Trade and Harian Bisnis Indonesia, Indonesian business newspaper, Promag received the best Indonesian Original Product Award in the category of Over The Counter Medication.

Mari Elka Pangestu, the Indonesian Minister of Trade, attended the event.

The award is acknowledgement of Promag’s existence as a high quality local product with a powerful market competence and therefore becomes the first choice in the Indonesian community. The award also completes the range of other awards received by Promag namely ICSA (Indonesian Customer Satisfaction Award) 2000 -- 2006, IBBA (Indonesian Best Brand Award) 2004 -- 2006, as well as an award from IPRA (International Public Relation Association) - Indonesia 2006.