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.