PT. Kalbe Farma Tbk. Annual General Meeting of Shareholders

In the year 2005, PT Kalbe Farma Tbk. (“the Company”) recorded net sales of Rp 5.87 trillion, which is an increase of 16.42% if compared to 2004’s figures. The growth is mainly contributed by the increase in volume sales of its health food’s products (Prenagen, Diabetasol, etc), gained market share of its energy drink (Extra Joss group), and volume sales of it’s OTC (Over The Counter) products (Promag, Mixagrip, Fatigon, Fatigon Spirit, etc).

The Company’s gross profit in 2005 was Rp 3.01 trillion. This is an increase of 22.91% if compared to the previous year’s figures. Noticeable improvement can be shown in the gross profit to net sales ratio; this has increased from 48.56% in 2004 to become 51.26% in 2005. The increase is mainly due to the continuous improvement effort by the Company to find areas of improvements in its production process so it can be more efficient. One such example is finding the right combination of product mix.

Marketing expenses in 2005 was Rp 1.55 trillion; this is 23.62% higher if compared to year 2004. Marketing expense to net sales ratio became 26.37% in 2005 from 24.84% in 2004. This is because of the increased effort in marketing effort to promote new as well as star products.

The Company recorded an increase in operating profit by 19.77% to become Rp 1.11 trillion from the previous year. This caused the operating profit to net sales ratio to increase from 18.32% to become 18.84%.

All these factors lead to an increased 2005 net profits of Rp 653 billion. This figure is 44.96% higher if compared to the figure in 2004. This growth can be achieved due to several reasons. Firstly, better performance in its overall operations. Secondly, interest rate was also higher on average in 2005 comparing to 2004. Finally, it is also due to the fact that Indonesian Rupiah strengthened considerably against United States Dollar.

The Company’s total asset value was Rp 4.73 trillion or an increase of 11.75% if compared to 2004. This is in line with the increased company size due to the merger which was effected on December 16, 2005.

1. 
   The Company’s Annual General Meeting of shareholders which was held on June 21, 2006 has resolved below matters as follows:
   1. To approve director’s annual accountability for the year ended on December 31, 2005 as well as to approve and ratify the company’s planning for year 2006;
   2. To approve and ratify the company’s yearly result for the year ended on December 31, 2005 which was audited by Public Accountant: Prasetio, Sarwoko & Sandjaja with its unqualified 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 31 December 2005 (acquit et de charge) as long as the results are reflected in the financial figures of Company’s yearly result for the year ended on 31 December 2005;
   3.
   a. To approve that there will be no cash dividend payout to all of Company’s shareholders;
   b. To approve that the net income in the amount of IDR 653,329,399,498 (six hundred fifty three billion three hundred twenty nine million three hundred ninety nine thousand four hundred ninety eight) is to be kept as an additional working capital for the Company;
   4.
   a. To approve the reappointment of the Board of Directors and the Board of Commissioners which will be effective starting the end of this annual general meeting of shareholders until the end of the 2008 annual general meeting of shareholders with the composition as follows:
   President Director : Johannes Setijono
   Vice President Director : Johanes Berchman Apik IbrahimVice President
   Director : Budi Dharma Wreksoatmodjo
   Director : Bernadette Ruth Irawati Setiady
   Director : Santoso Oen
   Director : Yozef Darmawan Angkasa
   Director : Vidjongtius
   Director : Herman Widjaja
   Director : Justian Sumardi
   President Commissioner : Boenjamin Setiawan
   Commissioner : Nina Gunawan
   Commissioner : Rustiyan Oen
   Independent Commissioner : Johannes Baptista Soemarlin
   Independent Commissioner : Inne Erna Adriana Soekaryo
   b. 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 2006;
   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 2006, also to give authority to the company’s board of directors to determine their honorarium and other appointment requirements.

Source: Press Release No. 011/KFCP-DIR/PR/VI/06, dated Jun 21, 2006

BAHASA