Greetings to all partners in PT Kalbe Farma Tbk and our distinguished stakeholders. I am honored to speak to you at this occassion and share some of our important achievements and initiatives that we have conducted in 2022.

The year 2022 has presented various obstacles and opportunities for companies in Indonesia. The Russia-Ukraine conflict and the decoupling of China-US economies have caused the supply chain bottlenecks, the rising prices of oil and commodities, and inflations in several countries.

On the positive side, the pandemic situation has been recovered throughout the year. Both social and business activities have resumed and the consumer trust rate has been gradually increased to the same rate as before the pandemic. The positive GDP growth has also reached the 5.3% rating, surpassing the pre-pandemic achievement of 5.0% in 2019. The household shoppings also increase due to the low rate of daily COVID-19 cases, the rising number of vaccinations, and the momentous return of social and outdoor activities.

Based on this condition, representing the Board, I am happy to report that the Company has ended the year 2022 with a positive performance. Our net sales have grown to 10.2% for around 28.9 trillions of rupiah, achieving the target that we had set earlier that year. The net profits have also grown to 6.2% with the total of 3.4 trillions of rupiah.

In 2022, the Prescription Division focused on maintaining access to health, by ensuring the availability of ingredient and medicine stocks for the public. We continue to build close relationships with suppliers and increase the operational cost. We try to manage the effects of rising costs of ingredients and transportations, in order to minimize the effects of increased medicine costs that are felt by our consumers.

In order to provide affordable and qualified medicines, in 2021, we also increased the participation of for generic prescriptions in the JKN program.
At the end of 2022, the Company’s generic prescriptions were distributed in over 90% of pharmacies, public and private hospitals, and public health offices, which covered more than 90 million patients. The Company will continuously strengthen its contributions in the JKN program in order to continuously provide health access to the mass public.

The Company also continues to build strategic partnerships with multinational pharmaceutical companies to obtain the transfer technology and improve the health services, both nationally and regionally. In 2022, the Company has achieved an agreement with one of the global pharmaceutical companies, Sanofi, to take over its business activities in Indonesia. The Company also acquired PT Aventis Pharma for 100% to expand the product portfolio in the focus therapy category, specifically vaccine products. This was in accordance with the encouragement by the government to increase the independence of vaccine products domestically.

With the decreasing number of COVID-19 cases, the Company managed to rapidly respond to the changing demands of the market. It increased the preparation of non COVID-19 medicine demands, such as cardio-metabolic and oncology medications, as well as products that can prevent and treat degenerative diseases. In total, the Prescription Division has managed to achieve the sales growth of 7.5% in 2022, from 5.5 trillions to 6.2 trillions in rupiah.

Continuing the success of our brands, such as Promag, Mixagrip, Extra Joss, Komix and Woods, that have gained loyalties from millions of consumers for several decades, in 2022, the Health Product Division was committed to develop flagship products that can improvee the public’s health and immunity. Innovations on preventive products, vitamins and supplements, and herbal products are still underway as a response in the increasing awareness of public health during post pandemic. In accordance with government initiatives to increase the manufactured local content level (TKDN), the Comapny also developed the red ginger ecosystem to support the independence of medicinal ingredients in Indonesia, especially herbal-based medicines.In 2022, the Health Product Division managed to post the net sales growth up to 14.6%, reaching 4.2 trillions of rupiah.

In fulfilling the nutritional needs of the public, the Company provided complete milk products for all ages and consumers with special needs.
Not only distributing to the premium market, the Company had a commitment to fulfill the nutritional needs for the people in lower middle class.
Therefore, since 2021, the Company entered the mas market segment by presenting milk products with affordable prices.
There were also interactive campaigns to educate the public about the health benefits of these nutritional products.
Through this division, we also actively supported the national resillience of Indonesian families through educations about stunting preventions
and the decrease of the mortality rate for mothers and their babies, as well as providing products that could provide nutritional supports for
pregnant women and toddlers such as Prenagen and Milna. In 2022, the net sales of the Nutrition Division experienced a growth up to 9.3%,
reaching 7.8 trillions of rupiah.

Access to health services was continuously developed in the distribution sector. Accompanied by more than five thousand MOSTRANS armadas and
the EMOS digital application range of more than 14,000 customers, the distribution of health products and equipments could reach the consumers more accurately and faster. In 2022, the Company had an initiative to form a joint company in China called Global Starway Synergy Co., Ltd, in order to strengthen the supply chain of raw materials from China and its surrounding areas. It also started the production of the Synthetic Surgical Suture through PT Forsta Kalmedic Global to increase the manufactured local content level (TKDN) for health equipments. The Distribution and Logistic Division managed to obtain a positive achievement, with the increasing rate of the net sales by 10.8%, raising from 9.8 trillions to 10.8 trillions of rupiah.

In the field of international business, the Company also helped to secure the supply of health products to the public in other developing countries, including Asia and Africa. During 2022, in order to expand the penetration of non-prescription products in the Philippines, the Company formed a joint company called Kalbe Ecossential International Inc.,a collaboration between Kalbe International Pte. Ltd. and local distribution companies. The business growth in the Philippines was getting solid and was supported by the power of branding and strong market shares, respresented by the milk product Diabetasol that has led the market in the Philippines. By offering quality products, as well as the correct
customer relations and distribution strategy, the Company has managed to nuild its pressence in more than 40 countries across ASEAN, East and South of Asia, the Middle East, and the Continent of Africa. Finally, it also reached a satisfying performance with a two-digit export value growth that reached 1.7 trillions of rupiah in 2022, through the power of branding and strong market shares.

In the field of research and development, the Company was recognized as an innovative Health Company, as it always tried to be the first company that would obtain the latest science and technology in the health industry and to be applied in both Indonesia and the international market. It actively and gradually commenced comparative studies and innovation collaborations with world-class research centers and academics, as well as multinational companies. In 2018, the Company managed to take a big step by introducing a bio-based medicinal technology, in order to provid a safer treatment for chronic diseases. This step was taken by becoming a pioneer in the development of the biggest production facility for bio-based medicines in Indonesia. Nowadays, the transfer technology is still being implemented by the Company in order to produce domestic biological medicines with affordable selling prices.

In the end, the Company believes that these achievements and initiatives that we have conducted in 2022 will become  a strong foundation in seizing opportunities and responding to future challenges.