Share Information 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000. from: IPO Jan BMRI % 42.14% JCI % 50.38%

Transcription

1 PT Bank Mandiri (Persero) Tbk Full Year 2008 Results Presentation

2 Share Information 4,500 4,000 3,500 BMRI JCI DOMESTIC Description No. of Investor Per 31 December 2008 % No. of shares % Government of RI % 14,000,000, % 3,000 2,500 2,000 1,500 1, Oct Jul Apr Jan Oct Jul Apr Jan Oct Jul Apr Jan Oct Jul Apr Jan Oct Jul Apr Jan Oct Jul 0 03 from: IPO Jan BMRI % 42.14% JCI % 50.38% Retail 14, % 383,526, % Employees 9, % 191,151, % Cooperatives % 415, % Foundations % 18,083, % Pension Funds % 247,800, % Insurance % 276,178, % Banks % 181, % Corporations % 505,630, % Financial Institutions % 13,359, % Mutual Funds % 696,578, % 33% Total 24, % 16,332,902, % INTERNATIONAL Retail % 3,194, % Institutional % 4,569,550, % Total % 4,572,744, % TOTAL 25, % 20,905,647, % 89

3 Bank Mandiri Presentation Contents Results Overview Page # 2008 Financial Milestones and Highlights Growth Momentum and Balance Sheet 4 5 Loan Growth & LDR 6 10 Strategy Overview Deposit Franchise Development Net Interest Margins 17 High Yield Lending Activities Wholesale Lending, Fees and FX Activities Quarterly e y Overhead ead Expenses & Detail 15 NPL Movement, Asset Quality & Provisioning New NPLFormation 28 Top NPL Debtor Developments 29 Enhancing Risk Management 30 Overhead Expense Details 31 Leveraging SBU Alliances & Subsidiaries Summary P&L 36 CAR, ROE, PAT 37 Operating Performance Highlights Supporting Materials

4 All financial milestones achieved in Metric Target Achievement Gross NPLs <5% NPL Provision Coverage >120% Normalizing ROE ~18% Margin Improvement ~5.2% Growth in Savings Deposits >Rp90 tn Retain Efficiency Ratio <50% Gross Loan Growth* >18% Corporate >20% Commercial >20% Consumer >30% Micro & Retail >20% * Prior to the write off & repayment of NPLs 2

5 Key Financial Highlights Bank Mandiri s Full Year 2008 Performance continued to demonstrate marked improvements in a number of key indicators: FY 2007 FY 2008 % Loans Rp138.5 tn Rp174.5 tn 26.0% Net NPL Ratio 1.51% 1.09% (27.8%) Gross NPL Ratio 7.17% 4.73% (34.0%) Low Cost Funds Ratio 61.6% 56.7% (7.9%) [Low Cost Funds (Rp)] Rp152.4 tn Rp164.0 tn 7.7% (1) NIM 5.03% 5.45% 8.3% Efficiency Ratio 48.2% (2) 42.3% (12.3%) Earnings After Tax Rp4,346 bn 5,313 bn 22.3% Including non recurring interest income: (1) 5.2%; (2) 46.7% 3

6 Maintaining momentum for growth Loans by SBU* (Rp Tn) Y o Y Deposits by Product Bank Only (Rp Tn) Y o Y 150 FX Time Rp Time Micro Small Cons % 275 FX Demand Rp Demand Comm Int'l Corp % % 250 FX Savings Rp Savings % % % % % % 2.8% % % % '05 '06 Q3 '07 '07 Q1 '08 Q2 '08 Q3 '08 '08 *Cash Collateral Loans have been reallocated to Small Business 0 '05 '06 '07 Q1 '08 Q2 '08 Q3 '08 '08 4

7 Strong and liquid balance sheet (Rp Bn, Bank Only) Assets Amount % of Assets Liabilities Amount % of Liab. Cash 8, % Current Account 66, % SBI & BI Placement (net) 46, % Savings 89, % Placement w/other banks (net) 22, % Time Deposits (Rp) 95, % Marketable Securities (net) 4, % Time Deposits (Fx) 21, % Government Bonds 87, % Total Deposits 273, % Loans (Gross) 159, % Securities Issued % Provisions (11,272) (3.33%) Deposits from other banks 5, % Other Advances (net) 7, % Borrowings 8, % Investments 2, % Other Interest bearing liabilities 2, % Other Assets 12, % Non Interest bearing liabilities 16, % Equity 30, % Total 338, % Total 338, % 5

8 FX loan exposure contained as FX funding rises FX Loans FX Funding (USD million) 3, ,163 3, ,834 4, ,908 3,755 3, ,731 2,820 (663) (USD million) , ,883 4, ,348 3,472 3, , , , ,959 1,593 1,599 1,592 1,696 1,705 1,395 2,998 2,306 1,159 1,291 1,468 1,385 1,007 1,041 1, Q Q Q Current S.Mention Sub Standard Doubtful Loss Q Q Q Demand Deposit Time Deposit Savings 6

9 FX LDR falls to 80.5% Rupiah Loans* & LDR FX Loans* & LDR Loans (Rp tn) 43.0% 40.4% 41.4% 48.1% 52.5% 53.9% 52.4% LDR (%) 131.1% 123.7% 111.0% 102.5% 104.4% 95.9% Loans (Rp tn) LDR (%) 80.5% Q1 '08 Q2 '08 Q3 '08 ' Q1 '08 Q2 '08 Q3 '08 '08 *Excluding loans to banks & restructuring losses 7

10 LDR of 59.2% reflecting strong liquidity Quarterly Loan Data Consolidated Quarterly Loan Segment Details Bank Only Loans (Rp tn) LDR (%) 35.4% 26.3% 42.5% % Corporate % Commercial % 57.2% 56.4% 54.3% 62.2% 59.2% Q3 Q2 Q1 Q3 Q2 Q Consumer Small Micro Q3 Q2 Q1 Q3 Q2 Q1 '08 '08 '08 '08 '07 '07 '07 '07 '06 '05 '04 '03 '02 '08 '08 '08 '08 '07 '07 '07 '07 '06 '05 '04 '03 '02 '01 '00 By Segment (Bank only) Loans (Rp tn) Y O Y Growth (%) % of Portfolio 26.0% Corporate % 48.05% Commercial % 27.55% 7.20% Small % 9.53% Micro % 2.75% QoQ Growth (%) YoY Growth (%) Consumer % 12.12% Total % % As of Dec 2008; Non consolidated numbers 8

11 Rp83.1 tn in loans disbursed in 2008 Loan Movement (Rp tn) Bank Only Loan Disbursement by Segment (Rp tn) Bank Only Q3 '08 Disburs. Install. Payment FX Impact Write Offs '08 Corporate Commercial Small Micro Cons Fin Total 9

12 Rp23.7tn in loans disbursed in 08 Loan Movement (Rp tn) Bank Only Loan Disbursement by Segment (Rp tn) Bank Only Q3 '08 Disburs. Install. Payment FX Impact Write Offs '08 Corporate Commercial Small Micro Cons Fin Total 10

13 Committed to Improving Shareholder Value Business Strategy Reduce Cost offunds Improve Assets Yield Diversify into Fee Income Competitive, sustainable returns, with above average rates of growth Support Strategy Reduce Provision/NPL ii Reduce Cost Efficiency Strategic Alliances Leverage on cash generator to accelerate growth in higher yield business 11

14 Building on our Business and Support Strategies with an Alliance Focus Cross sell products to employeesas customers: Payroll Mortgage or auto loans Corporate/ Retail cards Alliance Strategy Focus Corporate SBU Strategic Alliances Improving supplier network and distributor Providing basic transaction and cash management Supporting suppliers and distributors in working capital financing Cross sell products for employee as customers : Payroll, mortgage, auto loans, commercial / retail cards Developing wealth management for individual Director or owner operators Support Strategy Business Strategies 1. Strengthening our deposit franchise, to become primary payment bank 2. Developing high yield business 3. Enhancing wholesale franchise and diversifying wholesale transactions 4. Connecting the business, leveraging synergy 5. Non organic growth & synergy in optimizing subsidiaries Efficiency Risk Management Human Capital Information Technology Performance Culture Increase IT Operations efficiency and centralized and consolidated procurement Increase earning assets monitoring and perfecting early warning signal Consolidated risk and monitoring subsidiaries Enhance employee productivities and internal culture Apply best practice for recruit, retain and develop Implement Business Solution Excellence to support payment bank strategy Implement Service Excellence Strategy to support business growth and services Apply Value Based Management as the next step of Performance Culture 12

15 Deposits rise by 16.0% Y o Y and 18.5% Q o Q Deposit Analysis Bank Only Average Quarterly Deposit Costs (%) Rp DD Rp Savings Rp TD 1 Mo. SBIs 15% 13.1% 13.9% 11.9% Rp Savings Deposits FX Savings Deposits Rp Demand Deposits FX Demand Deposits Rp Time Deposits FX Time Deposits Low Cost Deposits (%) 10.9% 88% 8.8% 9.2% 8.2% 8.0% 8.3% 9.3% 7.4% 7.4% 6.9%6.8% 6.3% 3.5% 3.6% 3.2%3.0% 2.9% 3.8% 10.4% 9.5% 11.4% 10% 9.9% 7.4% % 4.7% % 61.5% 59.2% 5% 61% 6.1% 57.2% % % 3.3% 3.0% 2.6% 2.5%2.5% 2.8% 2.2% % 45.3% 0% 6% 4% 2% % FX DD FX TD 32.9% ' % 3.7% 2.8% 3.7% 4.0% 2.6% % % 2.1% 1.9% 1.6% 1.8% % 82.2 ' Q3 ' Q2 ' Q1 ' ' Q3 ' Q2 ' Q1 ' ' ' ' '99 0 '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 '05 '04 '03 '02 '03 '02 '01 13

16 , ,009 22,328 '08 14 Building a strong savings deposit franchise Savings Deposit Growth Transaction channel growth Other Savings Deposits (Rp tn) As % of Total Deposits Payment Transfer Withdrawal/Inquiry Avg ATM Daily Vol (000) National Share of Savings Deposits (%) % 40.0% 35.6% % 32.8% 1, % 2% 30.6% % 22.7% Quarterly Call Center Trans. (000) 17.5% 17.2%18.5% 19.1%19.3% 16.9% 17.9% 16.0% 16.2% Quarterly SMS Trans. (000) 2,988 2,784 3,029 3, % 12.8% 15.3% 11.0% 11.7% 1,722 18,116 19,772 17,969 16,974 11,575 1,086 6,988 1,016 1, , Q3 '08 Q2 '08 Q1 '08 '07 '06 '05 '04 '03 '02 '01 '00 '08 Q3 '08 Q2 '08 Q1 '08 '07 '06 '05 '04 '03 '02 '01 '00

17 through an enhanced transaction capability Quarterly Transaction Volume (Mn) Quarterly Transaction Value (Rp tn) Quarterly Users (000s) ATM Branch SMS Banking Internet Banking ,000 10,000 Debit Cards 9,000 8,000 7,000 6,000 5,000 5,024 SMS Banking Internet Banking 5,752 6,642 7,629 10, ,828 4, '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 Q3 '06 Q2 '06 Q1 ' ATM SMS Banking Internet Banking '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 Q3 '06 Q2 '06 Q1 '06 4,000 3,000 2,000 1, ,413 1,897 1,523 2,989 3, '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 Q3 '06 Q2 '06 Q1 '06 15

18 Enhancing deposit franchise, building on wholesale transactions Wholesale Deposit Growth (CASA) (Rp tn) Cash Management Growth in Commercial Banking Comm Savings Comm Demand Corp Savings Corp Demand % Total Transactions (000) # of Customers % , ,

19 NIM falls to 5.4% on asset yields of 10.5% Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency* 13.0% 13.0% Yield on Assets Cost of Funds 10.8% 10.8% 10.7% 11.0% 10.1% 10.5% 9.5% 9.4% 8.9% 9.0% 9.3% 9.2% 2.4% '00 6.3% 7.3% 6.4% NIM 48% 4.8% 48% 4.8% 3.9% '01 2.8% '02 3.7% '03 4.3% '04 3.6% '05 4.9% '06 5.5% Q1 '07 4.9% Q2 '07 4.9% Q3 '07 4.5% 4.3% 3.8% 4.2% 4.7% '07 5.1% Q1 '08 5.5% Q2 '08 6.0% Q3 '08 *Excluding the impact of non recurring interest income 5.3% 5.4% '08 20% 15% 10% 5% 0% 15% 10% 5% 0% 18.9% 15.9% 14.0% 13.1% 11.9% 14.0% 12.5% 11.1% 11.7% 7.4% 8.2% 5.4% IDR 13.2% 12.1% 12.0% 10.4% 11.1% 12.1%13.2% 9.2% 10.9% 10.8% 8.8% 8.2% 8.3% 8.0% 7.7% 8.0% 9.2%10.3% 6.9% 5.0% 4.6% 4.0% 4.6%5.8% Avg Loan Yield Avg Bond Yield Avg 1 Mo. SBI Avg COF 9.5% FX 6.5% 7.6% 7.3% 5.1% 5.7% 53% 5.3% 58%58% 5.8%5.8% 6.8% 6.7% 3.8% 5.3% 5.3% 4.9% 2.7%2.6% 3.0% 4.0% 3.4% 3.5% 1.4% 1.8% 2.6% 2.7% 2.2% '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 '05 '04 '03 '02 '01 '00 17

20 Building our high yield business in Micro & Small Loan Yields Micro Credits (Rp Bn) 1,699 Small Credits (Rp Bn) Consumer Loans (Rp Bn) 19.7% 12.8% 12.7% 1,734 4,720 2, % 4,376 13, % 14,815 12, % 17, Growth Growth Growth 2008 Disbursement Breakdown ( 08) Disbursement Breakdown ( 08) Disbursement Breakdown ( 08) 3, , ,587 3,737 4, ,829 1,365 1,969 1,201 8, Non Prog Program Rural Banks Micro Unsecured Micro TOTAL Mortgage Home Equity Loan Coops Alliances Channeling Food Suff. Cash Coll TOTAL Payroll Loan Other Total 18

21 as well as Consumer lending, which rose 35.4% Y o Y on Mortgages gg and Credit Cards Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type Rp19.27 tn Growth (%) Other 20, Loan Type 1,279 2,223 1,145 2,113 Credit Cards Y o Y Q o Q 18, Payroll Loans Home Equity Loans Mortgages 619 Other % 11.65% 2,008 16,000 3,993 3,999 1, ,000 Credit Cards 16.55% 5.23% 3,658 1,908 3,192 1, ,000 Payroll Loans 32.65% (0.16%) 3,721 3,761 3,010 1,426 3,702 2,789 3,612 2,6444 1,358 2,427 1,293 2,285 1,231 2,165 1,2411,996 1,2791,906 1,367 1,930 10,000 8, Home Equity Loans 8.28% (1.08%) 3,437 Mortgages 49.59% 4.34% 3,390 3,404 3,522 3,666 3,867 3,979 4,033 4,131 1,2701,921 6,000 8,052 7,717 7,,199 6, ,000 5,382 4,501 2,852 3,865 3,663 3,610 3,574 3,452 3,250 3,050 1,522 1,802 2,000 Total Consumer 35.38% 2.84% *Auto & Motorcycle Loans channeled or executed through finance companies = Rp4.79 tn in our Commercial Loan Portfolio '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 Q3 '06 Q2 '06 Q1 '06 '05 '04 '03

22 1,331k Visa & Mastercards transacted Rp2.0 tn in 2008 Mandiri Visa & Mastercards and EOQ Receivables Total Card Quarterly Sales by Type of Transaction (Rp Bn) Receivables (Rp Bn) Cards (000s) Transfer Balance Cash Advance Retail 1,331 1,226 1, , ,089 1, ,914 1,904 1,668 1,443 1,514 1,225 1, , , , , , , , , , , , , , , '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 Q3 '06 Q2 '06 Q1 '06 '05 Q3 '05 Q2 '05 Q1 '05 '04 '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 Q3 '06 Q2 '06 Q1 '06 '05 '04 '03 '02 20

23 Diversifying our strength in Wholesale lending Breakdown of Net Expansion in Corporate Lending (Total Rp16.67 tn) % Breakdown of Net Expansion in Commercial Lending (Total Rp7.39 tn) % Mfg F&B 5, % Bus Serv Oth Oh 4, % 74% Mfg Oth 3, % Construction 1, % Comm 2, % Mfg Oth % Bus Serv 2, % Agriculture % Mfg Chem 1, % Distribution % Plantations 1, % Trading Oth % Construction 1, % Mfg Chem % Mining Oth % Mfg P&P % Utilities % Mfg Text % Trading Exp % Mass Trans 510 Trading Ret % % Trading Dom % Mfg F&B % Mfg Wood (157) (25.85%) Trans Oth % Mfg P&P (186) (4.94%) Mfg Wood (109) (9.54%) Mfg Metal (673) Other (1,530) Rp Billion (47.68%) Mining (538) (25.36%) Real Estate (590) Rp Billion (35.24%) (73.55%) Mining Oil & Gas (1,907) (25.95%) Other (3,581) (73.10%) (2,000) (1,000) 0 1,000 2,000 3,000 4,000 5,000 6,000 (4,000) (3,000) (2,000) (1,000) 0 1,000 2,000 3,000 4,000 5,000 21

24 into Fee based Income Breakdown of 2007 & 2008 Non Loan Related Fees & Commissions (Rp bn) Non Loan Related Fees & Commissions FY 07 Q FY 08 % (Q o Q) FY % Administration Fees , % 51.1% Opening L/Cs, Bank Guarantees & Capital Markets % 7.3% 16.5% Subsidiaries (26.1%) 34.7% Transfers, Collections, Clearing & Bank Reference % 0.4% 16.3% Credit Cards % 50.4% Mutual Funds & ORI (11.8%) 86.0% Others* % 46.9% Total 2, , % 39.9% Total Operating Income # 16, , , , % 23.0% Non Loan Related Fees to Operating Income** 15.1% 17.17% 16.0% 17.2% (6.8%) 13.7% * Others includes Syndication, Payment Points, ATMs, Debit Cards, etc. ** Non Loan related fees & commissions/(total Operating Income Non recurring interest income) # Excluding non recurring interest income 22

25 Strong FX revenues but limited derivative exposure FX Fees(Rp bn) Bank Only Derivative Exposure (Rp bn) Bank Only 800 Transactions Foreign Exchange Notional Fair Derivative Derivative Amount Value Receivable Payables Forward buy Forward sell Swap buy 2,162 2, Swap sell 4,369 4, Interest Rate Swap interest rate Total Less: Allowance for possible losses (6) Total

26 FY NPLs decline by Rp2.79 tn on write offs of Rp5.5 tn Non Performing Loan Movements (Rp bn) Bank Only Movement by Customer Segment (Rp Bn) Cons Micro/Small Comm Corp , , , , ,279.4 '07 UG to PL DG to NPL Payment Write Offs Other '08 UG to PL DG to NPL W/O 24

27 NPLs of Rp8.5 tn due to FX impacts as well as Rp2.1 tn in downgrades Non Performing Loan Movements (Rp bn) Bank Only Movement by Customer Segment (Rp Bn) Cons Micro/Small Comm Corp , , Q3 '08 UG to PL DG to NPL Payment Write Offs Other '08 UG to PL DG to NPL W/O 25

28 Gross NPLs rise to 4.7% with provisioning coverage still strong at 127.1% Category 2 Loans Bank Only NPL Movement Consolidated 212.6% 20,000 50% 190.4% Cat 2 % 201.7% 187.5% 18, % 40% 16, % 146.7% 14, % 109.0% 122.6% 127.1% 151.1% 25.28% 139.1% 128.8% 129.5% 30% 12, % 86.7% 100.9% 10, % 20% 8, % 16.34% 15.86% 13.99% 14.98% 15.47% 70.0% 44.4% 12.87% 6, % 9.69% 10% 12.20% 9.16% 4, % 9.22% 7.17% 7.10% 8.60% 7.30% 15,412 13,502 13,451 14,058 15,148 15,586 15,854 16,750 16,966 12,912 8,334 10,983 16,202 12,655 15,350 2,000 4, % 4.44% 4.74% 5.14% 3.3% 15.3% 0% % '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 '05 '04 '03 '02 '01 '00 '99 '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 '05 '04 '03 '02 '01 '00 '99 2 Special Mention Loans (Rp Bn) 26 Gross NPL Ratio Net NPL Ratio Prov/NPL Prov/NPL incl. Coll.

29 Cash Provisioning remains high for both NPLs and Category II loans Non Performing Loans by Segment Collateral Valuation Details NPLs (Rp tn) (Rp tn) NPLs (%) Corporate % Commercial % Small (0.05) 05) 2.31% Micro % Consumer 0.47 (0.01) 2.45% Total % 69%* * Excluding Restructuring Losses and loans to other banks. Bank Mandiri s current provisioning policy adheres to BI requirements As of 31 December 08, loan loss provisions ii excess to BI requirements = Rp430 bn Provisioning Performing Non Performing Policy Loans Loans Collectibility BI Req. 1% 5% 15% 50% 100% BMRI Policy 1% 5% 15% 50% 100% BMRI pre % 15% 50% 100% 100% Collectibility Total Cash Prov. (Rp bn) % Cash Provisions so s Collateral Prov. (Rp bn) 1,468 2, , % 18.0% 29.7% 86.7% 89.4% 4, ,022 # of Accounts Collateral has been valued for 21 accounts and collateral provisions of Rp5,629 bn (48.6% of appraised value) have been credited against loanbalances ofrp7 Rp7, bn Collateral value is credited against cash provisioning requirements on a conservative basis. For assets valued above Rp 5bn: Collateral is valued only if Bank Mandiri has exercisable rights to claim collateral assets 70% of appraised value can be credited within the initial 12 months of valuation, declining to: 50% of appraised value within12 to 18 months 30% of appraised value within 18 to 24 months No value beyond 24 months from appraisal 27

30 2008 Annualized net downgrades of 2.60% on loans originating gsince 2005 Total Loans originated since 2005 Net Upgrades (%)/Downgrades (%) # 2008 Details Loan Background 08 Balance (Rp bn) Q1 Q2 Q3 Q1 Q2 Q DG to NPL % UG to PL % Corporate 56, Commercial 27, Small/Micro 14, Consumer 17, Total 115, # % downgrades and upgrades arequarterly % figures 28

31 Progress on selected debtors as of 31 Dec 08 Semen Bosowa Maros 3 companies (Bosowa Berlian Motor, Bosowa Multi Finance and Semen Bosowa Maros) have been restructured effective 26 September These loans collectibility have been upgraded to 1 (Current) for Bosowa Multifinance and 2 (Special Mention) for others. Total outstanding to this group as of31 December 2008 were Rp1,351 billion. The obligor settled loans in 2008 amounting to Rp171 billion (principal and interest). We are now monitoring the approved restructuring. Djajanti The group consist of 5 companies (Artika Optima Inti, Biak Mina Jaya, DjajantiPlaza, j Djarma Aru, Nusa Prima Pratama Industry). Total outstanding to this group as of 31 December 2008 were Rp663.6 billion. The Bank is now in the process of liquidating the loan collateral. In 2008, we have already received USD 15.3 million from liquidation of collateral. The loans have been fully provided. 29

32 Strengthening Risk Management & Monitoring System Corporate Customer by Rating Summary of Risk Management Initiatives 100% High Risk (Rating C G) Medium Risk (Rating BBB B) Low Risk (Rating AAA A) 15% 12% 11% Credit Enhance business process credit approval, CR methodologies & tools (monitoring system) Develop & enhance collectionsystems Optimize credit portfolio management system Consolidate risk profile (incl. overseas offices & subsidiaries Credit, Market & Operational) 80% 60% 34% 24% 21% Market Implementation of stress test analysis Development of derivative system (summit) Enhance our Treasury policy 40% 20% 0% 51% 64% 68% Operational ORM implementation in all unit, incl. overseas offices & subsidiary Set up Operational Risk Committee under RCC Synchronization of Risk Based Audit methodology with RCSA (ORM)

33 Cost to Income Ratio drops to 40.4% on restrained Personnel expenses Quarterly Consolidated Operating Expenses & CIR* Breakdown of Q & 2008 Operating Expenses CIR* (%) Annual Avg CIR (%) 58.9% 47.2% 47.2% 40.4% 42.4% 40.2% 40.4% 28.2% 2% ' , ,309 1,049 1,175 1,020 1,197 1, , , , , '01 '02 '03 '04 '05 '06 Q1 '07 G&A Expenses (Rp bn) Personnel Expenses (Rp bn) *Excluding the impact of non recurring interest income & bond gains Q2 '07 Q3 '07 '07 Q1 '08 Q2 '08 Q3 '08 '08 Personnel Expenses 08 FY 08 (Q o Q) FY Base Salary 357,178 1,427, % 17.22% Other Allowances 588,904 2,039, % 7.68% Post Empl. Benefits 94, ,472 (25.89%) 34.91% Training 43, ,889 (31.92%) (10.92%) Subsidiaries 112, ,105 (8.51%) 26.34% Total Personnel Expenses 1,196,663 4,563, % 13.27% G & A Expenses IT & Telecoms 218, , % 0.42% Occupancy Related 312,628 1,008, % 9.29% Promo. & Sponsor. 150, , % 16.36% Transport & Travel 90, , % 7.23% Prof. Services 147, , % 21.46% Employee Related 86, ,879 (1.09%) 13.28% Subsidiaries 143, , % 41.83% Total G & A Expenses 1,147,582 3,861, % 12.86% 31

34 Leveraging cash generator to accelerate high yield growth Building Future Growth Engine (Consumer & Micro/Retail) CM = Rp5.425 trillion Alliance Strategy Focus Strengthen Emerging Business (Commercial Banking) CM = Rp2.427 trillion Leveraging Our Cash Generator (Corporate & Treasury) CM = Rp3.286 trillion Net Interest Income NII (Rp bn) 2,300 Corporate 2, ,112 Commercial 2,632 Treasury & Int'l Micro & Retail Consumer Finance ,017 3,628 Fee Income Fees (Rp bn) 6, Corporate Commercial 480 Treasury & Int'l Micro & Retail Consumer Finance ,176 2,091 % of Total 25.2% 18.3% 23.2% 19.4% 3.3% 5.7% 39.8% 48.8% 8.5% 7.5% % of Total 10.9% 9.9% 5.1% 11.3% 3.3% 30.8% 49.2% 48.8% 8% 5.6% 8.4% 32

35 Leveraging cash generator to accelerate high yield growth and deposit franchise Co Branding Prepaid Card Program Consumer Loans from Alliance Program (10 top corporate clients) Rp Billion 1,128 1,259 1, '06 Q1 '07 Q2 '07 Q3 '07 '07 Q1 '08 Q2 '08 Q3'08 '08 Corporate Card Holder from Alliance Program (10 to corporate clients) 1,796 1,869 1,616 1,620 2,007 Plantation Small & Micro Lending from Alliance Program Rp Billion '07 Q1 '08 Q2 '08 Q3'08 '08 '06 Q1 '07 Q2 '07 Q3 '07 '07 Q1 '08 Q2 '08 Q3'08 '08 33

36 Enhancing synergies & values from subsidiaries Syariah Banking Investment Bank Insurance Niche Banking Multi Finance Bank Sinar Harapan Bali TUNAS FINANCE Total Assets Rp17.0 tn Bond Trading Volume Rp31.01 tn Total Assets Rp3.57 tn Total Loans Rp257 bn Total Financing Rp1,715.4 bn Total Financing Bond Underwriting Annual FYP Net Interest Margin* Net Interest Margin Rp13.3 tn Rp1.73 tn Rp572 bn 10.9% 6.9% Total Deposits Equity Trading Volume Fee Contribution ROA ROA (Before Tax) Rp14.9 tn Rp42.57 tn Rp103.8 bn 3.5% 7.1% ROE ROA ROE ROE ROE (After Tax) 21.0% 0.6% 55.2% 12.5% 33.1% Remain the leader in syariah financing Capital injection program over 3 years Cross sell syariah products to Mandiri customers Expansion of business to fully utilize current capital base Cross sell capital market services to broad range of Mandiri customers Refocus business toward higher fee income Provide end to end bank assurance business Continue to build crosssell opportunities in various segments Bank assurance products complete our suite of consumer offerings Enhance operating model Improve risk management systems and IT Improve productivity * Excluding deposits made by Bank Mandiri Use Bank Mandiri s network infrastructure throughout h t Indonesia to develop multi finance segment, especially in vehicle ownership financing. 34

37 FY 2008 operating profit up 45.4% from FY 2007 excluding non recurring interest income FY 2007 FY 2008 Rp billion Rp billion 4,653 3,163 9,380 8,211 12,786 Excluding Nonrecurring Q1 Interest tincome 7,738 7,263 15,285 10,558 Up 45.4% NetInterest Income Fee BasedIncome OverheadExpenses & Pre provision Others Operating Profit Notes : 1. Fee based income excluding gain on sale & increasing value GB & securities 2. Overhead expenses + others excluding provisions NetInterest Income Fee BasedIncome OverheadExpenses & Pre provision Others Operating Profit 35

38 Strong income growth Summary P&L (Rp Billions) FY 2007 Q FY (Q o Q %) FY (%) Interest Income 23,929 6,830 8,331 27, % 14.2% Interest Expense (11,143) (2,825) (4,055) (12,051) 42.1% 8.1% Net Interest Income 12,786 4,005 4,276 15, % 19.5% Other Operating Income 3,163 1,094 1,570 4, % 47.1% Gain from Increase in Value & Sale of Bonds 228 (10) (100.0%) (100.0%) Provisions, Net (1,740) (944) (796) (2,595) (438.7%) 49.1% Personnel Expenses (4,029) (1,172) (1,197) (4,564) (4.7%) 13.3% G & A Expenses (3,422) (916) (1,148) (3,862) 14.1% 12.9% Other Operating Expenses** (774) (229) (386) (1,006) 53.8% 30.0% Profit from Operations 6,212 1,861 2,361 7, % 27.4% Non Operating Income (7) 158 (106.5%) 30.6% Net Income Before Tax 6,333 1,954 2,354 8, % 27.4% Net Income After Tax 4,346 1,344 1,360 5, % 22.3% 36

39 supported by strong capital at 15.7% Capital & RWA Movement IDR bn 31.3% % % % 91.9 CAR 25.3% 25.3% 23.7% 21.1% 1% % Profit After Tax & ROE 26.2% 2% 23.6% 21.5% 22.8% PAT Q3 PAT 775 Q2 PAT Q1 PAT % 1, , ,168 1, ,549 1, , ,7 744 RoE AT 10.0% 1, (623) 15.8% 18.1% 1, ,040 1,113 1,027 1,390 1,345 1,221 1,390 RWA (Rp tn) Total Capital (Rp tn)

40 Operating Performance Highlights g 38

41 Corporate Banking: Contribution Margin declines on rate increase Performance to Date: 2008 Contribution Margin (after PPAP) Strategies for 2009 Rp bn Rp bn 1. Refine organization to be more industry focused,& strengthen th Q1 Q2 2,763 2,906 funding sales team to gain rapid 104 Q3 business growth 2,098 2,483 (14.6%) 2. Strengthen Corporate Banking 692 2,483 Floor in Surabaya and Medan to broaden and deepen our 659 geographic coverage 3. Strengthen our Syndication & Structured Finance team, as 1,077 well as our synergy with 537 Mandiri Sekuritas, to provide a broader variety and more sophisticated product range, 547 and accelerate transactional banking development in 592 Corporate Banking Broaden relationships to offer products and services to our corporate clients suppliers, employees and customers, through strategic alliance program 39

42 Mandiri Sekuritas financial performance has been impacted by the global economy crisis (Rp Bn) Dec 07 (Audited) Dec 08 (Audited) Growth Y o Y (%) Revenues % Investment Banking (3.80%) Capital Market (16.90%) Treasury % Investment Mgt % Operating Expenses % Earnings After Tax (99.11%) Equity Transactions 49,408 42,568 (13.84%) SUN Transactions 70,751 31,010 (56.17%) Bonds Underwritten 3,452 7, % ROA 5.8% 0.6% (89.66%) ROE 14.9% 0.1% (99.13%) 40

43 Treasury & International Banking Operating Profit Rp bn Strategies for , , , Business Volume (Rp bn) Rp bn Loans Deposits 1. Intensify cross selling selling of forex products and services to our corporate and large commercial clients 2. Leverage our overseas network to maintain our syndicated facilities and trade financing to high quality customers in selected sectors 3. Enhancing our regional distribution (RTM) in high growth, export oriented regions in collaboration with Micro & Retail Banking 4. Seek opportunities to enhance the yield ild of our recent portfolio 5. Reinforce Bank Mandiri s competitiveness through new offices in Malaysia and Shanghai 4,885 4,318 4,231 2,823 3, , ,

44 Commercial Banking: Strong revenues from both Liabilities & Assets Performance to Date: 2008 Contribution Margin (after PPAP) Strategies for 2009 Rp bn Rp bn 1, , , ,427 Q1 Q3 Q2 2,114 15% , To widen asset margin especially in Small Commercial Loan and Medium Commercial Loan Segment (Limit under Rp100 Billion) To increase sustainability of loan portfolio by expanding KMK fixed product Financing the subcontractors of large corporates, particularly in infrastructure, mining, and telecom 4. To pitch alliance strategic t 630 partner target sfrom the 10 biggest corporate customers and 17 biggest commercial customers that t have significantly business impact To develop bundling products by utilizing push product and existing product range. 42

45 Commercial Banking : Stronger Platform Improved Distribution Capability Expanding Scope of Distribution, 2008 Solid & Stable Source of Low Cost Funds Sumatera Loans = Rp 6.4 Tn Funds = Rp 5.6 Tn Kalimantan Loans = Rp2.7 Tn Funds = Rp2.2 Tn Eastern Loans = Rp0.9 Tn Funds = Rp1.8 Tn Rp Tn Product Growth Demand Deposit % 8.4% Rupiah % FX % Java and Bali Loans = Rp34.3 Tn Funds = Rp25.6 Tn Saving Deposit* Total Low Cost Fund Total Funding % % % CBC = 17 Unit Floor = 18 Unit TSC = 11 Unit TSD = 6 Unit Low Cost Fund Ratio = 65.59% Funding Jawa & Bali 72.69% from total funding * Business Savings Product 43

46 Strong growth from our Syariah Banking subsidiary Financial Performance (Rp bn) Net Interest Margin & Cost of Funds Q1 08 Q2 08 Q Financing 7,415 10,305 11,150 12,730 13,766 13,251 Deposits 8,219 11,106 12,246 14,270 13,890 14,897 Assets 9,555 12,888 14,031 16,285 16,539 17,064 EAT Ratios: ROA 1.10% 1.54% 2.05% 1.94% 1.91% 1.82% ROE 10.23% 15.94% 22.64% 22.78% 22.18% 20.98% Net NPF 4.64% 3.43% 2.63% 2.15% 2.20% 2.45% Syariah Financing (Rp tn) YoA 13.6% 13.5% 13.5% 13.0% 12.3% 12.2% 12.4% 12.4% Financing 92.8% 90.2% FDR 91.1% 91.1% % % 89.0% CoF NIM 5.7% 5.4% 5.3% 5.4% 5.4% 5.3% 5.3% 5.7% 6.8 8% 5.6% 6.1% 6. 3% 6.7 7% 6. 3% 6. 4% 6..2% '06 Q3 '07 '07 Q1 '08 Q2 '08 Q3 '08 ' '06 Q3 '07 '07 Q1 '08 Q2 '08 Q3 '08 '08 44

47 Micro & Retail Banking: Rapidly growing our high margin business Performance to Date: 2008 Contribution Margin (after PPAP) Rp bn Rp bn 2,090 Q3 Q2 Q1 3,922 5, ,801 4,594 2, ,594 1, % 1,416 1,045 Strategies for Leverage our strength in Corporate and large Commercial customers to quickly ikl build high h margin business 2. Continue to improve our payment infrastructure t 3. Expand our distribution with a focus on high margin business 4. Improve our sales culture and productivity of existing network Cross sell to grow our fee based income business * Includes Deposit Insurance 45

48 Consumer Finance: Significant growth in spread and fee income Performance to Date, 2008 Contribution Margin (after PPAP) Rp bn Rp bn 359 Q1 Q3 Q % 1, NII Fees Overhead Operating Profit Provisions Profit After PPAP

49 Supporting Materials 47

50 Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % FY 07 Q3 08 FY 08 YoY Change (%) Gross Loans 138, , , % Government Bonds 89,465 88,517 88,259 (1.3%) Total Assets 319, , , % Customer Deposits 247, , , % Total Equity 29, ,051 30, % RoA before tax (p.a.) 2.28% 2.45% 2.52% RoE after tax (p.a.) 15.75% 18.09% 18.06% Cost to Income (1) 46.72% 43.03% 42.26% NIM (p.a.) 5.23% 5.46% 5.45% LDR 54.29% 65.03% 59.16% Gross NPL / Total Loans 7.17% 4.44% 4.73% Provisions / NPLs % % % Tier 1 CAR (2) 17.31% 13.96% 12.83% Total CAR (2) 21.11% 17.08% 15.83% Total CAR incl. Market Risk 20.75% 16.98% 15.77% EPS (Rp) % Book Value/Share (Rp) 1,412 1,380 1, % (1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains (2) Bank only Not including Market Risk 48

51 Summary P&L Information 2007 vs FY 2007 FY 2008 YoY Change Rp (Billions) % of Av.Assets* Rp (Billions) % of Av.Assets (%) Interest Income 23, % 27, % 14.2% Interest Expense (11,143) (4.0%) (12,051) (3.8%) 8.1% Net Interest Income 12,786 46% 4.6% 15,285 48% 4.8% 19.5% Other Operating Income 3, % 4, % 47.1% Gain from Increase in Value & Sale of Bonds % 0.0% (100.0%) Provisions, Net (1,740) (0.6%) (2,595) (0.8%) 49.1% Personnel Expenses (4,029) (1.4%) (4,564) (1.4%) 13.3% G & A Expenses (3,422) (1.2%) (3,862) (1.2%) 12.9% Other Operating Expenses** (774) (0.3%) (1,006) (0.3%) 30.0% Profit from Operations 6, % 7, % 27.4% Non Operating Income % % 30.6% Net Income Before Tax 6, % 8, % 27.4% Net Income After Tax 4, % 5, % 22.3% * % of Average Assets on an annualized basis ** primarily premiums paid under the blanket guarantee scheme 49

52 50 Total Assets rose 12.5% to Rp358.5 tn in Int. from Bonds Int. from Loans % 74.1% % 56.8% 58.8% 59.1% % 50.1% % 75.9 Total Assets (Rp tn) 47.1% 46.9% 34.8% 31.0% 32.3% 32.4% 29.3% 40.9% 40.6% 41.0% 34.1% % 19.0% '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 Q3 '06 Q2 '06 Q1 '06 '05 '04 '03 '02 '01 '00 '99 Government Bonds Loans Other Assets Consolidated

53 Additional Factors Written off Loans Aggregate of Rp tn (US$ bn) in written off loans as of end December 2008, with significant recoveries on going: g 2001: Rp2.0 tn 2002: Rp1.1 tn 2003: Rp1.2 tn 2004: Rp1.08 tn 2005: Rp0.818 tn (US$ 83.2 mn) 2006: Rp3.408 tn (US$ mn)* 2007: Rp1.531 tn (US$ mn) 9 Mo 08: Rp1.621 tn (US$ mn) 08: Rp0.688 tn (US$ mn) * including the write back of RGM loans totaling Rp2.336 tn Loan Collateral Undervalued Collateral values included for provisioning purposes on only 21 accounts, carried at approximately 48.6% of appraised value. 51

54 Summary Quarterly Balance Sheet: Q1 08 Q2 08 Q Y o Y Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# % Change Total Assets % Cash % Current Accounts w/bi (42.1%) Certificates of BI % Other Placements w/bi % Current Accounts & Placements w/other Banks % Securities Net (18.9%) Government Bonds (0.4%) Trading (29.5%) AFS (2.0%) HTM % Loans % 8% Performing Loans % Non Performing Loans % Allowances (13.04) (9.18) (9.57) (11.04) (11.86) (1.09) 29.2% Loans Net % Total Deposits Non Bank % Demand Deposits % Savings Deposits % Certificate & Time Deposits % Shareholders Equity (0.2%) # USD1 = Rp10,900 52

55 Summary P&L Information Q Q o Q Change Rp (Billions) % of Av.Assets* Rp (Billions) % of Av.Assets* Rp (Billions) % of Av.Assets (%) Interest Income 6, % 6, % 8, % 35.8% Interest Expense (2,853) (3.9%) (2,825) (3.6%) (4,055) (4.8%) 42.1% Net Interest Income 3, % 4, % 4, % 37.8% Other Operating Income % 1, % 1, % 103.1% Gain from Increase in Value & Sale of Bonds % (10) (0.01%) 0.0% (100.0%) Provisions, Net % (944) (1.2%) (796) (0.9%) (438.7%) Personnel Expenses (1,256) (1.7%) (1,172) (1.5%) (1,197) (1.4%) (4.7%) G & A Expenses (1,006) (1.4%) (916) (1.2%) (1,148) (1.4%) 14.1% Other Operating Expenses** (251) (0.3%) (229) (0.3%) (386) (0.5%) 53.8% Profit fromoperations 1, % 2% 1, % 2, % 45.5% 5% Non Operating Income % % (7) 0.0% (106.5%) Net Income Before Tax 1, % 1, % 2, % 36.0% Net Income After Tax 1, % 1, % 1, % 16.5% * % of Average Assets on an annualized basis ** primarily premiums paid under the blanket guarantee scheme 53

56 Reconciliation to IFRS FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Net profit under Indonesian GAAP 4,586 5, ,421 4,346 5,312 IFRS Adjustments Allow. for possible losses on earning assets (662) (309) (2,681) 1,598 1,934 2,474 Allow. for possible losses on commitments & contingencies (223) 44 (2) (114) Change in fair value of derivatives 52 Employee benefits (21) 25 Accretion on deferred inc. arising from loan purchase from IBRA (17) De recognition of revaluation of premises & equipment Rights of Lands amortization (137) (7) (7) De recognition of allowances Deferred income taxes (503) (583) (659) NtAdj Net Adjustment t (191) (90) (2,008) 1,037 1,351 1,715 Net profit in accordance with IFRS 4,395 5,166 (1,405) 3,458 5,697 7,021 IFRS = International Financial Reporting Standards 54

57 Limited Impact on Government Recap Bonds Recap Bond Portfolio by Type and Maturity (Rp bn) Bonds by Rate Type & Portfolio as of Dec 2008 (Rp bn) Maturity/ Trading Portfolio Available for Sale Held to Rp bn Nominal MTM Nominal MTM Maturity Fixed Rate Bonds < 1 year year , year > 10 year Sub Total ,227 Variable Rate Bonds < 1 year 1 5 year year 14,599 14,479 36,236 > 10 year 10,942 10,918 23,509 Sub Total 25,839 25,691 59,745 T o t a l ,409 26,244 61, Fixed Rate Variable Rate * Mark to Market impacts Profit # Mark to Market impacts Equity ^ Nominal value 1.71 Trading* AFS# HTM^ Recap Bond Gains/(Losses) (Rp bn) Realized Gains/Losses on Bonds Unrealized Gains/Losses on Bonds FY (30.14) (34.88) 6.28 Total (30.14) 55

58 Ex Recap Bond Portfolio, 31 Dec 08 Bank Only Series Maturity Date Nominal Interest Rate (%) Trading AFS HTM Fair Value Mark to Market Trading AFS HTM Fixed Rate FR Jun % FR Mar % 1,350, ,350,000 FR Nov % 2, ,947 FR Jun % 231, ,694 FR Dec % Sub Total 231,028 1,353, ,694 1,353,306 Variable Rate VR Jun % 298, ,960 VR Dec % 5,050,000 1,114, ,011,772 1,114,300 VR Apr % 4,100, , ,022, ,029 VR Nov % 2,400, ,398, VR Mar % 692,844 6,796, ,366 6,796,813 VR Oct % 659,738 4,086, ,616 4,086,068 VR Feb % 8,210, ,210,550 VR Sep % 5,210, ,210,550 VR Jan % 3,475, ,475,267 VR Jul % 3,475, ,475,267 VR Aug % 1,696,428 3,475, ,694,596 3,475,267 VR Aug % 5,344,421 3,475, ,335,977 3,475,267 VR Dec % 8,016, ,016,765 VR Jul % 5,597,343 12,016, ,582,230 12,016,765 Sub Total 25,839,044 59,744,598 25,691,045 59,744,598 Grand Total 26,070,072 61,097,904 25,941,739 61,097,904 (Stated in Rp Millions) 0.00% 29.91% 70.09% 0.00% 29.80% 70.20% Total Nominal Value 87,167,976 Total Fair Value 87,039,643 56

59 Bank Mandiri Credit Ratings Bank Mandiri Ratings S&P Moody s Fitch Pefindo Long Term Foreign Currency Outlook Stable Positive Stable Long Term Bank Deposits B2 Long Term Foreign Currency Dbt Debt BB WR BB Short Term Outlook Stable Short Term Foreign Currency Debt B NP B Subordinated Debt Ba3 BB Individual Rating C/D Support Rating 3 Bank Financial Strength D Long Term Local Currency Outlook Stable Long Term Local lcurrency Dbt Debt BB BB idaa Short Term Local Currency Debt B National Rating B idnaa+ 57

60 Corporate Actions Dividend Payment Net Profit for the financial year of 2007 of Rp4,346,223,721, was distributed as follows: 50%, or Rp2,173,111,860,604.00, for the annual dividend id d 40%, or Rp1,738,489,488,483.20, for a one time special dividend Total Dividend Payment of Rp per share Schedule : a. Cum Date : June 19, 2008 b. Ex Date : June 20, 2008 Payment c. Payment Date : July 3, 2008 Net Profit for the financial year of 2006 of Rp2,421,405,120, was distributed as follows: 50%, or Rp1,210,702,560,376.86, for the annual dividend 10%, or Rp242,140,512,075.37, for a one time special dividend Total Dividend Payment of Rp70.28 per share 58

61 2008 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) Bank Only Category 2 Loan Movements (Rp bn) Bank Only 125,759 2,930 1, ,836 4, ,064 13,502 2,930 1,470 1,572 1, ,010 15,412 Beg. Bal. D/G to 2 U/G from D/G to U/G from Net FX Impact End Bal. Beg. Bal. Cat. 1 D/G U/G to 1 D/Gto NPL U/G Net FX Impact End Bal. 2 NPL NPL Disburs. NPL Collect. 59

62 2008 Loan Detail: Collectibility by Segment Loan Profile: Collectibility (%) by Segment Bank Only 3.2% 1.8% 1.7% 70, % 0.7% 0.3% 4.0% 04% 0.4% 0.7% 6.1% 6.7% 0.5% 10.8% 65, % 13.0% 60,000 Loan Profile: Collectibility (Rp bn) by Segment Bank Only 55,000 50, , , % 91.0% 80.7% 81.8% 8% 86.7% ,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Corp Comm Small Micro Cons Corp Comm Small Micro Cons 60

63 NPL Loan Detail*: Quarterly by Days Past Due Quarterly D/G to NPL & Interest DPD Bank Only Quarterly NPL Stock & Interest DPD Bank Only 70% 60% 50% Rp tn Current (%) <30 Days OD (%) 70% 60% 50% Current (%) <30 Days OD (%) 40% 40% 30% 30% 20% 20% 10% 10% 0% 12,000 10, Rp Value 0% 30,000 25,000 Rp Value 8,000 20,000 6,000 15,000 4,000 10,000 2, ,161 6,901 1, ,106 1,558 1,304 1, , , , ,456 24,962 24,193 26,248 26, ,665 25, ,960 17,180 16, ,603 10,654 6,558 6,510 6, ,833 Q1 '05 Q2 '05 Q3 '05 '05 Q1 '06 Q2 '06 Q3 '06 '06 Q1 '07 Q2 '07 Q3 '07 '07 Q1 '08 Q2 '08 Q3 '08 '08 Q1 '05 Q2 '05 Q3 '05 '05 Q1 '06 Q2 '06 Q3 '06 '06 Q1 '07 Q2 '07 Q3 '07 '07 Q1 '08 Q2 '08 Q3 '08 '08 * Excluding Micro & Consumer Loans Only 61

64 Rp2,481 bn in loans were restructured or repaid in 2008 Restructured Loan Movement Loans by Restructuring Type in 2008 IDR bn Others# Write Offs Repayments Restructuring Balance Maturity extension; 48.4% 4% 25,123 Add , De Add 23, De Add 21, De Add 19, De Add 20, De Add 20, De Add 16, De 08 duct d 07 duct d 06 duct d 05 duct d 04 duct d 03 duct d 02 duct d 01 Additional loans; 8.0% 1Maturity LT loans w/convert. extension option; Maturity w/reduced 2.3% extension rates; 27.1% w/other restr'g*; 14.2% (Rp billions) Mo Loans Restructured ,573 2, NPL Collections 813 1,118 2,398 2, *Other Restructuring includes reduction of interest rates, rescheduling of unpaid interest & extension of repayment py period for unpaid interest #Others includes partial payments, FX impacts, and fluctuation in Working Capital facilities 62

65 Loan Portfolio Sector Analysis, 2008 Mfg Oth Mfg F&B Agri Bus Serv Mfg Chem Constr Comm Trad Ret Trad Oth Mining Oil & Gas Trad Distr Mfg Text Oth<4% Mfg Oth 13.8% Oth<4% 9.9% Mfg Text 4.0% Mfg F&B 12.1% Oil & Gas Trad Distr 4.4% 4.3% Trad Oth 4.6% Agri 10.6% Trad Ret 4.8% Comm 5.8% Bus Serv 9.8% Mfg Chem 8.2% Constr 7.9% (1) Non consolidated numbers * Each sector < 4% * Excluding Micro & Consumer Loans Only 63

66 2008 Loan Detail*: Downgrades to NPL 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Non Performing Loans Only (Rp1,858 bn) Bank Only <30 1 Day Current Oth<5% Mfg F&B Bus Serv Mfg Oth Trading Trans Constr Mfg Text USD IDR LC Synd Invest WC Small Comm Corp Corporate, Commercial & Small Business loans downgraded to NPL in totaled Rp1,858 billion (1.16% 16% of total t ll loans). Of these loans: 53.9% were still current on interest payments 60.3% were Corporate borrowers and 35.4% came from our Commercial portfolio 33.5% were loans previously restructured Largest downgrades by sector: Textile Manufacturing Construction Transportation 52.0% were IDR loans 43.6% were Working Capital loans 13.8% were more than 90 days overdue in interest payments 0% Collect. Int. Aging Sector Currency Purpose Segment * Excluding Micro & Consumer Loans Only 64

67 2008 Loan Detail*: Non Performing Loans 100% 90% 80% 70% 60% 50% 30% Loan Profile: Non Performing Loans Only (Rp7,833 bn) Bank Only Oth<5% Bus Serv Constr Trad Dom Trad Oth Mfg Oth Mfg Chem IDR USD Synd LC Invest WC Small Comm Corporate, Commercial & Small Business NPLs totaled Rp7,833 billion in, or 4.1% of total loans. Of these NPLs in : 31.8% remain current on interest payments and an additional 15.3% are lessthan 90days overdue 72.1% are to Corporate customers 54.0% are Working Capital loans and 29.3% are Investment loans Primary sectors are: Manufacturing Chemicals 40% Textiles <30 Corp Trading 1 Day Construction 20% 10% 0% 4 3 Current Mfg Text 57.0% are USD loans 38.5% were previously restructured 11.3% are Cat. 3 & 5.0% are Cat % were upgraded in, while 52.6% saw no change in collectibility Collect. Int. Aging Sector Currency Purpose Segment * Excluding Micro & Consumer Loans Only 65

68 2008 Loan Detail*: Downgrades to Cat % 90% 80% 70% Loan Profile: Downgrades tp Cat 2 Loans Only (Rp2,006 bn) Bank Only Small <30 1 Day Oth<5% Trad H&R Trad Oth USD Other Consumer Invest Mining >2004 Rp2,006 billion (1.3% of total loans) in Corporate, Commercial & Small Business loans were downgraded d dto Category Ct 2 in. Of the Special Mention Loans downgraded in : 50.1% are for Commercial & 28.9% are to Corporate customers 60% 50% 40% 30% 20% 10% Comm Corp Current Constr Mfg Wood Bus Serv Trad Ret Mfg Oth IDR WC % are current & 1.1% are 1 day overdue in interest payments Primary sectors downgraded are: Retail Trading Business Services Wood Mfg Construction 77.2% are Rupiah loans 69.9% are Working Capital loans 7.9% are Restructured loans 0% <2000 Segment Days Aging Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only 66

69 2008 Loan Detail*: Category 2 Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Category 2 Loans Only (Rp12,753 bn) Bank Only Small Comm Corp <30 1 Day Current Oth<5% Bus Serv Mfg Chem Agri Mfg NonM Constr Trading Mfg Text Mfg Oth Mfg P&P IDR USD Other Invest WC > Rp12,753 billion (8.0% of total loans) in Corporate, Commercial & Small Business loans were in Ct Category 2 in. Of these Special Mention loans in : 71.1% are to Corporate customers 75.8% are current or 1 day overdue Primary sectors in Category 2 are: Pulp & Paper Textile Manufacturing Construction Trading Non Metal Manufacturing 52.7% are US Dollar loans 58.7% areworking Capital loans 66.2% are Restructured loans 73.3% were Category 2 in Q3 08 0% <2000 Segment Days Aging Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only 67

70 2008 Loan Detail*: Upgrades to PL Loan Profile: Upgrades to PL (Rp1,190 bn) Bank Only 100% Small USD Oth<5% WC >2004 Comm Trans 90% Mfg Oth 80% 70% 60% Corporate, Commercial & Small Business loans upgraded to PL in totaled Rp1,190 billion (0.75% of total t ll loans). Of these loans: 90.5% were to Corporate borrowers 91.6% originated between 2000 and % were previously restructured loans Largest upgrades by sector: Non Metal Manufacturing 50% 40% 30% 2 Corp Mfg NonM IDR Invest Transportation 100% were Rupiah loans 97.3% were Working Capital loans 99.0% of upgrades to PL were NPLs moving to Category 2 20% 10% 0% 1 <2000 Collect. Segment Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only 68

71 2008 Loan Detail*: Performing Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Performing Loans Only (Rp127,530 bn) Bank Only 2 Small 1 Comm Corp Oth<5% Mining Mfg Chem Constr Trans Bus Serv Agri Mfg F&B Trading Mfg Oth USD IDR Other LC Invest WC > Rp127,530 billion (80.2% of total loans) in Corporate, Commercial & Small Business loans were performing in Q3. Ofth these performing loans in Q3: 55.5% are to Corporate customers & 32.9% are to Commercial customers 71.1% originated since % have no restructuring history 10.6% are Restructured loans 0.2% were purchased from IBRA Primary sectors are: Trading Food & Beverage Manufacturing Agriculture Business Services 75.0% are Rupiah loans 56.3% are Working Capital loans 83.8% saw no change in collectibility 0.9% were upgraded from NPL 0% <2000 Collect. Segment Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only 69

72 2008 Loan Detail*: Restructured Loans 100% 80% Loan Profile: Restructured Loans Only (Rp16,560 bn) Bank Only 5 Oth<5% 3 Constr Agri USD Invest Small Comm Of the remaining Rp16,560 billion in restructured Corporate, Commercial & Small 90% Business loans in, or 10.4% of total loans: 70% 60% 50% 40% 30% 20% 10% 2 1 > 90 Days < 30 Days 1 Day Curren nt Mfg NonM Trading Mfg Chem Mfg Oth Mfg Text Mfg P&P IDR WC Corp 81.8% are performing 83.2% of loans in Category 2 are current in interest payments Of the 18.2% which are in NPL, 30.9% are current in interest payments Primary sectors are: Manufacturing Chemicals Textiles Pulp & Paper Non Metals Trading 52.7% are Rupiah loans 55.3% are Working Capital loans 71.9% are to Corporate customers 8.7% deteriorated in collectibility 9.1% showed improved collectibility 0% Collect. NPL Aging Sector Currency Purpose Segment * Excluding Micro & Consumer Loans Only 70

73 2008 Loan Detail: Corporate Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Corporate Loans Only (Rp76,407 bn) Bank Only <30 1 Day Cur rent Oth<5% Mfg P&P Trading Bus Serv Mfg Chem Mining Agri Trans Mfg Oth Mfg F&B USD IDR Other Synd LC Invest WC > Rp76,407 billion in loans were in the Corporate portfolio in, or 48.1% of total loans. Of the Corporate Loans in : 92.6% are performing loans, with 11.9% in Category % of Category 2 loans are current in interest payments 38.5% of NPLs are current in interest payments Primary sectors in Corporate are: Food & Beverage Mfg Transportation Agriculture Mining 61.5% are Rupiah loans 48.7% are Working Capital loans 15.6% are Restructured loans 0.03% were purchased from IBRA 0% <2000 Collect. Cat. 2 Aging Sector Currency Purpose Origin Year 71

74 2008 Loan Detail: Commercial Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Commercial Loans Only (Rp43,809 bn) Bank Only <30 1 Day Current Oth<5% Mfg F&B Trans Trad Distr Mfg Chem Trad Oth Agri Constr Bus Serv Mfg Oth USD IDR LC Invest WC > Rp43,809 billion in loans were in the Commercial portfolio in, or 27.6% of total loans. Of the Commercial Loans in : 95.8% are performing loans, with 6.1% in Category % of Category 2 loans are current in interest payments 16.7% of NPLs are current in interest payments Primary sectors in Commercial are: Other Mfg Business Services Construction Agriculture 83.9% are Rupiah loans 63.8% are Working Capital loans 9.9% are Restructured loans 0.6% were purchased from IBRA 0% <2000 Collect. Cat. 2 Aging Sector Currency Purpose Origin Year 72

75 2008 Loan Detail: Small Business Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Small Business Loans Only (Rp15,147 bn) Bank Only <30 1 Day Current Oth<5% Soc Serv Constr Trad Oth Trad Distr Mfg Bus Serv Agri Trad Ret USD IDR Consumer Invest WC > Rp15,147 billion in loans were in the Small Business portfolio in, or 9.5% of total loans. Of the Small Business Loans in : 97.7% are performing loans, with 6.7% in Category % of Category 2 loans are current in interest payments 4.2% of NPLs are current in interest payments Primary sectors in Small Business are: Retail Trading Agriculture Business Services Manufacturing 99.7% are Rupiah loans 71.9% are Working Capital loans 2.1% are Restructured loans 0.1% were purchased from IBRA 0% <2000 Collect. Cat. 2 Aging Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only 73

76 2008 Loan Detail*: Rupiah Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Rupiah Loans Only (Rp98,874 bn) Bank Only <30 1 Day Current Oth<5% Trad Ret Mfg Chem Constr Trad Oth Trans Bus Serv Agri Mfg Oth Mfg F&B Small Comm Corp Other Invest WC > Rp98,874 billion in loans were Rupiah denominated in, or 62.2% of total loans. Of the Rupiah Loans in : 96.8% are performing loans, with 6.1% in Category % of Category 2 loans are current in interest payments 14.3% of NPLs are current in interest payments Primary sectors in Rupiah loans are: Food & Beverage Mfg Agriculture Business Services Transportation 47.5% are Corporate loans 63.5% are Working Capital loans 8.8% are Restructured loans 0.02% were purchased from IBRA 0% <2000 Collect. Cat. 2 Aging Sector Segment Purpose Origin Year * Excluding Micro & Consumer Loans Only 74

77 2008 Loan Detail*: FX Loans Loan Profile: FX Loans Only (Rp36,489 bn) Bank Only 100% 61+ Small Other 90% Oth<5% Comm <30 LC 80% Agri 2 1 Day Mining Oth 70% Mfg F&B 60% Mfg Text WC Trading 50% Mfg P&P 40% Corp 1 Mfg Oth 30% Cu rrent 20% Mfg Chem Invest 10% Oil & Gas > Rp36,489 billion in loans were FX denominated in, or 22.9% of total loans. Of the FX Loans in : 87.3% are performing loans, with 18.4% in Category % of Category 2 loans are current in interest payments 44.0% of NPLs are current in interest payments Primary sectors in FX loans are: Oil & Gas Chemical Mfg Pulp & Paper Mfg Trading 80.6% are Corporate loans 41.6% are Investment loans 21.5% are Restructured loans 0.7% were purchased from IBRA 0% <2000 Collect. Cat. 2 Aging Sector Segment Purpose Origin Year * Excluding Micro & Consumer Loans Only 75

78 Credit Card portfolio improved in 08 Mandiri Credit Card Delinquency Rates (%) Monthly Charge offs, NPLs & Recoveries (Rp Bn) 16.8% 16.1% 30 DPD Rp 90 DPD Rp 30 DPD Cards 90 DPD Cards NPLs (90+DPD) Write Offs Recoveries 11.7% 10.7% 10.8% % 10.4% % 8.8% 7.1% 6.9% 7.2% 68% 6.8% 6.5% 6.1% 5.3% 5.4% 4.5% 5.0% 4.3% % 4.4% 3.4% 3.7% 3.6% 4.3% 3.1% % 1.8% 2.1% 2.4% 2.4% 2.0% % 1.2% 1.0% '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 Q3 '06 Q2 '06 Q1 '06 '05 '04 Q3 '04 Q2 '04 Q1 '04 '08 Q3 '08 Q2 '08 Q1 '08 '07 Q3 '07 Q2 '07 Q1 '07 '06 Q3 '06 Q2 '06 Q1 '06 '05 '04 Q3 '04 Q2 '04 Q1 '04 76

79 Regs. on Asset Classification: PBI No 7/2/PBI/2005 Classification by Aging of Interest Payments# Detailed Classification Guidance# Classification by Payment History Previously Current No change to BI Prov. Req. Category 1 Current Current Current 1% Category 2 Special Mention 1 90 days 1 90 days 5% Category 3 Sub Standard days days 15% Category 4 Doubtful days days 50% Category 5 Loss 271+ days 181+ days 100% Business Outlook Financial i Condition Payment Ability Business growth potential Profitability Market condition & debtor Capital structure position in the market Cash flow Management quality Sensitivity to market risk Group support Environmental factors On time payment Availability of debtor s financial information Completeness of credit documentation Compliance toward credit agreement Nature of payment source Appropriateness of funds usage BI Collectibility takes precedence# In instances where there is disagreement in the determination of earning asset collectibility between the bank, its external auditors and BI, the bank must adopt BI s determination One Debtor, One Project Concept* The Bank must classify all of its earning assets to a single debtor at the level of the lowest quality asset For debtors with exposures to more than one bank, all banks must adopt the lowest classification applied by any one bank to the debtor. All earning assets related to a particular project must be classified at the same level Completeness of Financial Report* Banks must require debtors to submit current financial statements Failure to submit financial statements must result in an automatic downgrade of collectibility by one level, or to a maximum classification of sub standard # Implemented in Q * Implemented in Q

80 Accounting for Interest, Provisions & Collateral Classification Regular Loans Restructured Loans IBRA Loans Cat. 1 Current Accrual Basis Accrual Basis Cash Basis Recognition of Cat. 2 Special Mention Accrual Basis Cash Basis Cash Basis Interest Income Cat. 3 Sub Standard Cash Basis Cash Basis Cash Basis Booking of Payments from Borrowers Cat. 4 Doubtful Cash Basis Cash Basis Cash Basis Cat. 5 Loss Cash Basis Cash Basis Cash Basis Classification Regular Loans Restructured Loans IBRA Loans (w/o new agreement) Cat. 1 Current Interest Interest Principal Cat. 2 Special Mention Interest Interest Principal Cat. 3 Sub Standard Interest Interest Principal Cat. 4 Doubtful Principal Principal Principal Cat. 5 Loss Principal Principal Principal Provisioning Valuation of Collateral & Provisioning Classification Regular Loans Restructured Loans IBRA Loans Cat. 1 Current 1% As per BI regulations, except: As per BI regulations, except: Not reversed by upgrading Difference between principal and Cat. 2 Special Mention 5% Reversed by principal repayment purchased value book as Beginning provisions determined at Provisions, or Cat. 3 Sub Standard 15% 31 Dec Deferred income if a new Based on net book value after agreement has been made Cat. 4 Doubtful 50% restructuring loss Cat. 5 Loss 100% Classification Collateral All Loans Cat. 1 Current Not valued Collateral valuation for provisioning is determined by the aging of the most recent independent appraisal (for assets over Rp 5bn): Cat. 2 Special Mention Can be credited against 70% of appraised value within the initial 12 months Cat. 3 Sub Standard cash provisions for Cat. 50% of appraised value within 12 to 18 months % of appraised value within 18 to 24 months Cat. 4 Doubtful No value after 24 months from appraisal Cat. 5 Loss 78