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Ceo's Speech 2014

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Dear Colleagues,

Happy new year to you all. I hope you celebrated the start of 2014 in good spirits with family and friends. Now that we just passed a few days of the new year, it’s good to look ahead and think about what this year may bring us. But first, a quick look back. 2013 was quite a year for all of us at SUMMIT. We’ve been through many developments, in sometimes less than favourable circumstances. But we’ve also achieved a huge amount. Within automatic analyzer and reagents of clinical chemistry business we have made good progress: twenty new customers, getting upsales from our current clinical laboratories customers, successfully launching our new product line of chemistry reagent, and finalizing registration process at Ministry of Health of Republic of Indonesia for our future signature product which is new biomarker for monitoring diabetes, glycated albumin reagent. Within Medical Information System business, we have launched the new sales and system implementation strategy of our Laboratory Information System TD-Synergy and carefully cuted on it throughout the year. In several customers, we got upsales of new LIS modules such as Microbiology Module, Histology-Cytology Module, Blood Bank Module, and Web Module for Specimen Collection, Request and Result Management. We also had just signed a cooperation agreement as local partner for one of the top world wide Radiology Information System NovaRad. By having LIS and RIS in our product line will definitely upgrade our value proposition to clinical laboratories and hospitals. Within our new coagulation reagent business, we have reached significant milestone through some researches collaborating with wellknown Clinical Pathologists in some education centers of Clinical Pathologist Department such as at Medical Faculty of University of Indonesia and Medical Faculty of University of Padjajaran. Of course, there’s still a lot of work ahead. As you might have known, starting the first of January of 2014, the Government of Republic of Indonesia launched a National Health Insurance1.
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UU No 40 tahun 2004 tentang Sistem Jaminan Sosial Nasional (SJSN) dan UU No 24 tahun 2011 tentang Badan Penyelenggara Jaminan Sosial (BPJS)

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All health care coverage under Askes (for civil servants), Jamsostek (for the private sector) and Asabri (for the police and army) will be transferred to BPJS Health Care (it is used to be PT. Askes) starting on January 1, 2014. By 2019, the system is intended to cover the entire population of 250-plus million people. This individual health insurance will cover promotive, preventive, curative and rehabilitative services. It includes medic and non medic benefits such as accommodation and ambulance. The impacts on in vitro diagnostics (IVD) business, our business field, will be as follows:    Expanded market size on government sectors especially for basic laboratory testing (routine clinical chemistry, CBC, urine and microbiology) Downside on private sectors Potential price disparity between private sectors and government sectors (eprocurement and e-catalog) Next year, 2015, we will face the integration of ASEAN economic which is called the Asean Economic Community (AEC)2. AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labour, and freer flow of capital. In detail, ASEAN will become a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy. The impact on IVD business in Indonesia will be as follows:    Foreign investment on new hospital and laboratory Stimulate New Local and Overseas Manufacture Free movement of goods: this is quite unlikely as long as there is no significant price disparity between countries which this is role of

manufacturer/principals With these new situation changes and might be challenges, we do believe that there is also huge opportunities of expanding our mission to serve more patients as our true end users as well as our partners, the clinical laboratories, clinical pathologists, and hospitals. In order to do the mission and at the same time, to expand our existence in IVD business in Indonesia, we will recruit more Technical Support Officers, Business Development Officer, and Marketing Representative for Sumatera and Sulawesi
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http://www.asean.org/communities/asean-economic-community

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island. We are also finalizing our new facility which is the cold storage room to make sure our reagents are kept safely and in good condition as it should be. Our objectives and strategies of this year are: 1. To become a major player in providing reagents of metabolic disease and diabetes mellitus. 2. To make sure our organization is ready to face the challenges 3. To expand our company’s competitive advantage by providing top quality IVD products 4. To maintain and increase good and mutual benefit relationship with our customers 5. To follow government rules in the new tender process of goods and services through the e-catalog and e-procurement process. In order to achieve those objectives, at this moment I would like to ask all of you, my beloved colleagues to make sure that each one of us delivers quality of work, be more professional, and more passionated about this business. That will only be possible with your continued dedication and teamwork. Primarily in your own work, but equally across the whole company. So I encourage all of us in our decision making to evaluate not only what is best for our part of the business, but also the potential impact on other parts and on the company as a whole. The past few years have had a significant impact on all of us, but I would like to thank you all for your significant support and dedication during these challenging times. This year will bring its own challenges but I’m sure by working together, keeping focussed on our priorities and putting our customers first, we can realise our ambitions. These will certainly continue to be my priorities and I am convinced I can count on you to do the same.

CEO

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