PT Bank Mandiri(Persero) Tbk Q2 2010 Results Presentation · NPL Movement, Asset Quality & Provisioning 23‐26 Progress on ... FRANSISCA N. MOK THOMAS ARIFIN

PT Bank Mandiri (Persero) TbkPT Bank Mandiri (Persero) TbkQ2 2010Results Presentation

23 J l 201023 July 2010

0

Share Information

DescriptionPer 30 June 2010

No. of Investor

% No. of shares %Investor

DOMESTIC1. Government of RI 1 0.006% 14,000,000,000 66.73%

2. Retail 6,077 38.85% 102,274,289 0.49%

3. Employees 8,200 52.42% 122,437,619 0.58%

4. Cooperatives 3 0.02% 30,000 0.00%

5. Foundations 12 0.08% 8,783,000 0.04%

6. Pension Funds 85 0.54% 160,701,500 0.77%

7. Insurance 39 0.25% 241,264,000 1.15%

8. Banks 1 0.01% 36,000 0.00%

9. Corporations 82 0.52% 230,344,313 1.10%

10. Financial Institutions ‐ 0.00% ‐ 0.00%

11. Mutual Funds 116 0.74% 515,021,000 2.45%

Total 14,616 93.43% 15,380,891,721 73.31%INTERNATIONAL1. Retail 52 0.33% 1,753,500 0.01%

2. Institutional 975 6.23% 5,598,975,655 26.69%

Total 1 027 6 57% 5 600 729 155 26 69%

from: IPO Jan 1, 2010

Total 1,027 6.57% 5,600,729,155 26.69%

TOTAL 15,643 100.00% 20,981,620,876 100.00%

84

,

BMRI +605.88% +21.83%

JCI +444.65% +13.13%

Bank Mandiri Presentation ContentsResults Overview Page #

2010 Financial Highlights 3

SBU Performance 4‐5

5‐Year Transformation Improvements 6

Balance Sheet Overview 7

Loan Growth & LDR 8‐9

Net Interest Margins 10

Strategy Overview 11‐12

Deposit Franchise Development 13‐16

Wholesale Lending and Fees 17‐18o esa e e d g a d ees 8

High‐Yield Lending Activities 19‐22

NPL Movement, Asset Quality & Provisioning 23‐26

Progress on Selected Debtors 27

Enhancing Risk Management 28

Overhead Expense Details 29

Leveraging SBU Alliances & Subsidiaries 30‐32

Operating Profit & Summary P&L 33Operating Profit & Summary P&L 33

CAR, ROE, PAT 34

2010 Guidance 35

Operating Performance Highlights 37‐44

1

Supporting Materials 46‐83

Supported by a new Organization Structure

P id t Di tBoard of Commissioners President Director

Deputy President Director

RISWINANDI

ZULKIFLI ZAINI

Corporate Banking*)

Commercial& Business Banking

Micro & RetailBanking

Risk Management

Finance &Strategy

Compliance & HC

Internal AuditConsumer Finance

Treasury, FI & Special Asset

MgmtChange Mgmt.

Office

Institutional Banking

Technology & Operations

ABDUL RACHMAN SUNARSO

BUDI G.SADIKIN

MANSYUR S. NASUTION

KRESNO SEDIARSI

FRANSISCA N. MOK

THOMAS ARIFIN

OGI PRASTOMIYONO PAHALA N.

MANSURY

HARYANTO BUDIMAN RIYANI T.BONDAN

SENTOT A. SENTAUSA

Bank SyariahMandiri AXA Mandiri

Bank SinarHarapan Bali

Mandiri

MandiriTunas Finance

Mandiri Sekuritas

(Inv. Banking)

BMEL

International Remittance

Commissioner Directors EVP Coordinator

Risk and Capital Committee Information & Technology Committee Human Capital Policy Committee Wholesale Executive Committee Retail & Support Executive Committee

Committees underThe Directors

Credit Committee

Key Financial Highlights

Bank Mandiri’s H1 2010 Performance continued to demonstrate marked improvements in several key indicators:p y

H1 ‘09 H1 ‘10 %

Loans Rp181.6 tn Rp218.0 tn 20.0%

Net NPL Ratio 1.00% 0.62% (38.0%)Gross NPL Ratio 4.78% 2.54% (46.9%)

Low Cost Funds Ratio 56.7% 57.3% 1.0%[Low Cost Funds (Rp)] Rp162.7 tn Rp187.1 tn 15.0%

NIM 5.35% 5.18% (3.2%)

Efficiency Ratio 38.9% 38.7% (0.7%)

f b b

3

Earnings After Tax 2,927 bn 4,034 bn 37.8%

Maintaining momentum for growth

Y‐o‐Y

Y‐o‐Y

Loans by SBU*(Rp Tn)

Deposits by Product – Bank Only(Rp Tn)

14.911.2

11.2

280

300

320 FX Time Rp TimeFX Demand Rp DemandFX Savings Rp Savings19.35.4 5.6

6.0

170180190

Micro Small Cons Comm Int'l Corp

(38.2%)

24.7%

24 7%

21.7%147.5tn 186.2tnTotal Total 256.0tn 302.1tn 11.9%

95 7 97 9101.5

108.5113.7

118.315.9

21.416.2

18.116.5

220

240

260

280

20 6 21.7

23.6 24.7

26.7

14.8 14.115.5

16.317.1 17.7

4.4 4.64.8

5.1

5.4

120130140150160

( )

20.9%

24.7%

29.7%

51 8 45 09.8

15.119.5

17.5 20.3

18.021.2 22.0

93.280.5

73.4

95.791.9

97.915.7 12.6

140

160

180

200

0.441.6 40.6 41.9 43.6

49.1 49.153.1

14.2

19.3 19.7 20.6

8 9

13.1

11.9

2.7

8090

100110120

25.7%

26.7%

(91 3%)

4.1

4.7 7.4 8.2 8.3 8.79.7

9.9 10.8

30.133.6

50.4 51.843.0

45.4 43.751.8

45.8 45.0

11.49.1

60

80

100

120

65 8 68 8 69 8 74.5 80.70.9

2.8

4.4 4.4 4.4 4.2 4.5 0.2

25.924.4

31.510.711.1

7.68.91.7

40506070 (0.7)%

22 6%

(91.3%)

30.0%

45.2 57.681.5 82.2 77.2 82.8 87.3 96.8 89.5 94.73.5

4.1

0

20

40

60

Q4 '05 Q4 '06 Q4 '07 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

29.9 36.144.8

62.0 64.1 65.8 68.8 69.81.0

0102030

Q4 '05 Q4 '06 Q4 '07 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

14.4%22.6%

4

Q4 05 Q4 06 Q4 07 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10Q4 05 Q4 06 Q4 07 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

*Loans from Treasury & International have been reallocated to Corporate following the reorganization in early 2010

Balanced Earnings from all Business Units

21.5%1 777

1,346Corporate

Net Interest IncomeNII (Rp bn) % of TotalAlliance Strategy Focus

17.8%

26.1%

24.5%

5.3%

2,446

1,777

334

1,629

Treasury FI & SAM

Commercial #

Q2 '08

Building Future Growth Engine(Consumer & Micro/Retail)

CM = Rp2,275 billion

Leveraging Our Cash Generator(Corporate & Treasury,

FI & SAM) CM = Rp 3,961 billion

6.5%

39.0%

39.5%

8.1%

3,949

645

508

2,436Micro & Retail *

Treasury, FI & SAM Q2 '10

Fee IncomeFees (Rp bn) % of Total

8.1%

11.7%1,172508

Consumer Finance

17.0%

9.6%

12.5%

11.4%405

342

220

298

Commercial #

Corporate Q2 '08Q2 '10

11.8%

32.0%

52.8%

39 0%1 388

1,140

929

208

Micro & Retail *

Treasury, FI & SAMStrengthen Emerging Business

(Commercial Banking)CM = Rp2,115illion

39.0%

5.9%

8.1%288

1,388

103Consumer Finance

5# Including Small Business *Excluding Small Business

Transformation has driven broad improvements

No Description 2005 2006 2007 2008 2009CAGR/‘05‐’09

H1 ’09 H1 ‘10 Growth%

Consolidated Rp Billion

1. Total Assets 263,383 267,517 319,086 358,119 394,617 10.6%

2. Total Credit 106,853 117,757 138,554 174,498 198,547 16.8%

358,897 402,084 12.0%

181,611 217,996 20.0%

3. Customer Deposits 206,289 205,708 247,355 289,112 319,550 11.6% 287,055 326,578 13.8%

4. Gross NPLs 25.20% 16.34% 7.17% 4.73% 2.79% (22.4%)

5. Net NPLs 15.34% 5.92% 1.51% 1.09% 0.42% (14.9%)

4.78% 2.54% (2.2%)

1.00% 0.62% (0.4%)

6. LDR 51.72% 57.20% 54.29% 59.16% 61.36% 9.6%

C Effi i

62.20% 66.33% 4.1%

7.Cost Efficiency Ratio

55.57% 48.86% 46.72% 42.26% 40.18% (15.4%)

8. Net Profit 603 2,421 4,346 5,313 7,155 85.6%

38.94% 38.66% (0.3%)

2,927 4,034 37.8%

6

Strong and liquid balance sheet, Q2 2010

Assets Amount% of Assets

Liabilities Amount % of Liab.

(Rp Bn, Bank Only)

Cash 5,974 1.60% Current Account 67,053 17.95%

SBI & Placement with BI 40,982 10.97% Savings 105,499 28.24%

Pl t ith th b k 23 741 6 35% Time Deposits 129 552 34 68%Placement with other banks 23,741 6.35% Time Deposits 129,552 34.68%

Government Bonds 82,472 22.08% Total Deposits 302,105 80.86%

Marketable Securities 5,324 1.43%

Loans (Gross) 195,285 52.27% Liabilities to BI 2,381 0.64%

Provisions of Loans (10,559) (2.83%) Deposits from other banks 7,236 1.94%

Loans (Net) 184,726 49.45% Fund Borrowings 4,516 1.21%

Reverse Repo 6,020 1.61% Loan Capital 3,852 1.03%

Investments 3,882 1.04% Other Liabilities 16,996 4.55%

Deferred Tax Assets 5,649 1.51%

Other Assets 14,824 3.97% Equity 36,508 9.77%

Total 373,593 100.00% Total 373,593 100.00%

7

Total 373,593 100.00% Total 373,593 100.00%

LDR rising to 66.3% on loan growth of 7.9%…

Loans (Rp tn)

LDR (%) 76.478.8 79.7

82.0 82.7 82.988.7Corporate

CommercialS ll

Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only

53.7%57.2% 59.2%

65.0%

63.2%62.2%

62.8% 64.1%

66.3%LDR (%)

44.7

53.6 55.4

68.7

43 8 42 6 43 6 45.3

50.6 50.454.2

SmallMicroConsumer

26.3%

35.4%

42.5% 40.2 38.242.3

44.7

22.2

31.435.7

32.635.5

41.243.8 42.6 43.6

15 1 15 8 16 6 17.48 0

19.715.818.7 19.3 19.7 20.6 21.7 23.6 24.8

26.7

43.048.365.475.994.4

106.9117.7138.5135.5149.6162.8174.5175.2181.6188.3198.5201.9218.0

Q4 '

Q4 '

Q4 '

Q4 '

Q4 '

Q4 '

Q4 '

Q4 '

Q1 '

Q2 '

Q3 '

Q4 '

Q1 '

Q2 '

Q3 '

Q4 '

Q1 '

Q2 '

7.610.2

13.1 13.815.1 14.4 15.8 16.6 18.0

1.7 2.7 2.9 4.0 4.4 4.6 4.8 5.15.4 5.6 6.0

1.53.7

8.510.7 11.1

Q4 '

Q4 '

Q4 '

Q4 '

Q4 '

Q4 '

Q1 '

Q2 '

Q3 '

Q4 '

Q1 '

Q2 '

Q3 '

Q4 '

Q1 '

Q2 '00 01 02 03 04 05 06 07 08 08 08 08 09 09 09 09 10 10

'02

'03

'04

'05

'06

'07

'08

'08

'08

'08

'09

'09

'09

'09

'10

'10

By Segment (Bank only)

Loans(Rp tn)

Y‐O‐Y Growth (%)

% of Portfolio

Corporate 88.67 11.32% 45.41%

7.9%

20.0% Commercial 54.24 24.29% 27.78%

Small 19.68 24.25% 10.08%

Micro 6.04 24.74% 3.09%

8

QoQ Growth (%)

YoY Growth (%)

Consumer 26.66 29.64% 13.65%

Total 195.29 18.69% 100.00%

As of June 2010; Non‐consolidated numbers

Rp24.7tn in loans disbursed in Q2 2010

3 28

Loan Movement (Rp tn) – Bank Only Loan Disbursement by Segment (Rp tn) – Bank Only

1.75

3.28

24.655.91 4.33 0.10 0.54

195.29

2.59181.51

7.4624.65

9.58

Corporate Commercial Small Micro Cons Fin Total

9

Q1 '10 Disburs. Install. Payment FX Impact Write‐Offs Q2 '10

Q2 NIM of 5.2% on higher Yield on Assets

Yield on AssetsC t f F d

18.9%18.3%17.6%

20%

Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency*

13.0% 13.0%

11.0% 10.5%10.7%10.8%10.8%10.8%

Cost of Funds14.1%

13.3% 13.2%

11.2%12.1%

12.9% 12.8% 12.2%13.1%12.5%

14.0%

8.2%

11.7%10.8%

7.9%9.2%

10.6%14.0%

17.6%

13.1%11.9%

10 4%11.1% 11.7%10%

15%IDR

9.5%

8.9%

10.7%11.0%

9.3%

10.1%

9.9%9.4%

9.4%8.9%9.1%

7.9%7.2%

6.2%7.4%

10.4%

8.0%9.2% 9.1% 6.6%

6.2%5.4%

7.7%6.9%

4.5% 4.6%5.9%

5.1%4.4%

5%

15%COF

6.3%

4.8%

7.3%

6.4%

5.3%5.5%4.9%4 8%

0%

Avg Loan Yield Avg Bond YieldAvg 1‐Mo. SBI Avg COF

6.5%7.6% 7.3%

5 1%

6.6%5.8%

6.5%5.8%

6.4%5 2%

9.5%10%

COF 4.8%4.5%4.3%

3.8%4.2%

4.8%4.3%

4.0%4.0%FX

5.1% 5.2%6.7%

1.4% 1.8%

5.3%

3.3% 2.7%

0 5% 0 3%0 2% 0 3%

3.8% 4.0% 3.4%2.6% 2.7% 2.1%

1.5%0.7%

0%

5%2.4%3.9%2.8%3.7%4.3%3.6%4.9%4.7%5.1%5.5%6.0%5.4%5.5%5.3%4.9%5.3%5.1%5.2%

0.5% 0.3%0.2% 0.3%Q4 '00

Q4 '01

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q4 '06

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q4 '00

Q4 '01

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q4 '06

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

10*Excluding the impact of non‐recurring interest income

Committed to Improving Shareholder Value

Reduce Cost of FundsReduce Cost of Funds

Improve Assets Yield

Diversify into Fee Income

Business Strategy

d i i /

Competitive,sustainable Reduce Provision/NPL

Reduce Cost Efficiency

sustainable returns, withabove‐averaget f th

Support Strategy

Leverage on cash generator

rates of growth

Leverage on cash generator (wholesale) to accelerate growth in higher yield business and retail deposit

Strategic Alliances

11

Strategy focus on 3 areas of highest potential:Wholesale Transactions, Retail Payments & High Yield Loans

T b I d i ' t d i d

, y g

To be Indonesia's most admired& progressive financial institution

#1 in Indonesia in market capitalization by 2014

Strengthen leadership in wholesale transaction banking

C h i

Build #1 or #2 positions in key retail financing segments

Wi i

Be the retail deposit bank of choice

Comprehensive financing & transaction solutions

Holistic relationship

Win in mortgage, personal loan & cards Become a major player i i b ki

Win through differentiated customer experience and targeted

approach for leading Indonesian institutions

in micro‐banking Champion Syariah in Indonesia

propositions

Deploy innovative payment solutions

Breaking down organization 'silos' to provide integrated solutions to customers and alliances programs

Upgrading ke infrastr ct re (branches IT operations risk PMS) to enable differentiated c stomer e perience

12

Upgrading key infrastructure (branches, IT, operations, risk, PMS) to enable differentiated customer experience

Strengthen human capital in performance, team work and innovation

Q2 Deposits rise 11.9% Y‐o‐Y

Rp Savings Deposits FX Savings DepositsRp Demand Deposits FX Demand Deposits

Deposit Analysis – Bank Only

13.9%15% Rp DD Rp Savings

Average Quarterly Deposit Costs (%)

44.5% 45.3%

62.1%57.8% 57.5% 57.1%

Low‐Cost Deposits (%)

Rp Demand Deposits FX Demand DepositsRp Time Deposits FX Time Deposits

11.4%9 3%

9.5%8.7%

8 1%

13.1%

11.9%

10.4%

9.2%

10.9%

10%

Rp TD 1 Mo. SBIs

23.1%32.9%31.4%

44.5%

21.4 18.116.5

14.9 11.211.2

260

280

300

4 2%

9.5%

6.9%

5.3%4.8%4.7%

3.6%3 2%

8.4%6.4%

9.9%

6.9%6.8%6.3%

7.4%

9.3% 8.1%7.2%

6.5% 6.5%

8.5%

7.4%8.2%8.0%8.3%

9.1%

7.4%6.6%

6.2%5%

%

73.4

95.7 91.9

97.9

101.5

108.5

113.7

118.3

23 4 20 6

15.713.4

12.6

15.9

16.28

180

200

220

240

2606.1%

3.7%3.7%3.5%3.0%

2.5%2.5%2.2%2.8%

3.8%4.2%

3.4%3.5%3.3% 3.1%3.2%3.0%2.9%

3.3%2.8%2.5%2.7%2.6% 2.1%

0%

5%

8 79.7

9 9 10.8

50.4

51.8 43.0

45.4

43.7

51.8 45.8

45.0

9.1

9.815.1

19.517.5 20.3

18.021.2 22.0

87.

106.9

100.7

80.5

66.5

93.2

85.7

80.5

4

16.521.5

23.4 20.6 17.3 11.6

100

120

140

1600%

4.0%4.2%3.9% 3 7%3.9%

6%

FX DD FX TD

14.

18.0

22.

29.

40.

52. 0

45.

46.

57.

81. 5

82.

77.

82. 8

87.

96. 8

89.5

94.7

3.5 3.94.1

4.7 7.4 8.2 8.3 8.7 9.9

14.1

31.1

31.2

24.8

28.8

28.0

30.1

29.5

33.69.111.9 11.4 7.7

97.1

.8

20

40

60

802.4%

0.8%0.5%

2.1%2.2%2.0%

2.4%

1.5%1.6%1.8%1.1%0.9%

0.9%

2.6%1.7%

1.1%

3.9%

2.6%2.9%2.8%

3.7%3.9%3.3%3.0%

1.9%

0.3%

0%

2%

4%

3 0 1 6 6 0 2 6 6 5 2 2 8 3 8 5 71

0

Q4 '99

Q4 '00

Q4 '01

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q3 '06

Q4 '06

Q4 '07

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

13

0.2%0%

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q4 '06

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Building a strong savings deposit franchise…

Savings Deposits (Rp tn)

A % f T l D i

Savings Deposit Growth Transaction channel growth

OtherAs % of Total Deposits

National Share of Savings Deposits (%)

84.797.4

106.6116.7

131.4 129.9 136.5

55.861.6

63.267.2

73.0 71.9 73.2

Other

Payment

Transfer

Withdrawal/Inquiry

Avg ATM Daily Vol (000)

34.6%32.8%33.4%33.7% 34.5%

35.5%34.9%

4 6 6 8

1,0

1,1

1,1

1,2

1,3

1,2

1,3

19.629.3

39.1

55.0

30.829.8

37.4

49.6

22.8%

30.6%

22.7%

29.2%

34.5%34.1%

492.1

607.5

677.0

853.4

043.4

100.5

158.9

230.6

315.4

293.3

321.8

16.2%

11.6%12.8%

15 3%

16.9%17.5%16.0%17.2%

18.5%18.0%17.3%17.8%

17.9%17.6%17.3%

3 0092,955

3,165

2,7802,8222,976

3,335Quarterly Call Center Trans. (000)

Quarterly SMS Trans. (000)

17.96

22.12

29.59

40.50

52.00

45.20

57.60

81.54

89.61

85.39

91.11

95.95

106.45

99.38

105.50

11.0%11.7%

15.3%

1,0693,072

6,988

11,575

16,974

22,328

25,819

33,502

39,569

42,546

44,512

47,705

27 679 1,0161,086

1,722

2,9883,009

Q4 '00

Q4 '01

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q4 '06

Q4 '07

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2'10

Q4 '00

Q4 '01

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q4 '06

Q4 '07

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

14

…through enhanced transaction capabilitiesQuarterly Transaction Volume (Mn)

150 ATM

95.5 97.1100 11,000 Debit CardsSMS Banking

Quarterly Transaction Value (Rp tn) Quarterly Users (000s)

115.0

122.9

141.9

125

BranchSMS BankingInternet Banking

77.1

87.792.7

80 8,828

10,006

9,950

8,059

9,000

10,000 g

Internet Banking

88.8

99.8110.1

115.0

100

57.7 64.7

70.1

60 6,642

7,629

7,202

7,565

7,8348,059

6,0406,219

7,000

8,000

67.8 70.0

77.9

75

35.5

40.7

49.1

40

5,024

5,752

4 3554,793

5,480

,

5,000

6,000

35.1 36.2 36.6 38.542.1

40.6

41.4 41.7

33 5

47.7

26.6

50 31.9

35.5

20

ATMSMS BankingInternet Banking 1,897

2,413

2,989

3,6524,355

3,000

4,000

8.311.612.217.0

19.822.3

25.8

33.5

1 3 1 7 2 4 3.4 5.56.1

12.0

0

25

0.3 0.4 0.5 0.7 1.0 1.81.3 1.8 2.4

2 6

0.6 0.9 1.6 2.23.6 3.84.0

5.9

7.88.7

0

1,523,

358 469 564 705 849

9881,165

1,239

1,253

0

1,000

2,000

15

0.8 1.3 1.7 2.4 3.40

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

2.60 Q1 '06

Q2 '06

Q3 '06

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

358 4690

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09*

Q3 '09

Q4 '09

Q1 '10Q2'10

* Inactive cards have been purged

…and innovative payment solutionsPre‐Paid Card Volume (000s)

350 1,200

Indomaret

Pre‐Paid Transaction Volume (000s) Cash Management Users

261.0

293.0

275

300

325

Indomaret 890.5

1,030.0

1,078.0

1,000

Indomarete‐TollGaz

225.0

200

225

250 e‐TollGaz

800

148.8

132.0

150.0150

175

200

494.3

588.1 606.0

520.5600 6,153 6,300

57 7

90.2

58 0

98.0111.0

75

100

125 379.5

286.0

206.0

400

2 414

4,066

38.9

57.7

29.3 35.7

58.0

14 7 14 7 14 7

34.0 35.0 36.0

39.3

0

25

50 103.1 98.0

173.0

2.3 1.5 1.230.5

1.0 2.7 3.6

0

200

745

2,414

16

14.7 14.7 14.70

Apr‐09

May‐09

Jun‐09Jul‐09Aug‐09

Sep‐09Oct‐09

Nov‐09

Dec‐09

Jan‐10Feb‐10Mar‐10

10‐Apr

Mei 10

Jun 10

0

Apr‐09

May‐09

Jun‐09Jul‐09Aug‐09

Sep‐09Oct‐09

Nov‐09

Dec‐09

Jan‐10Feb‐10Mar‐10

Apr‐10

Mei‐10

Jun‐10

2006 2007 2008 2009 H1 '10*• Decline through March 2010 due to Data Cleaning to identify only active customers

Diversifying our strength in Wholesale lending…Breakdown of Net Expansion in Corporate SBU LendingQ2 ’09 – Q2 ’10 (Total Rp14.85 tn)

4 775Mi i Oil & G

%

Breakdown of Net Expansion in Commercial SBU LendingQ2 ’09 – Q2 ’10 (Total Rp11.23 tn)

2 471B S

%

40 1%

1,783

2,643

3,489

4,775

Other

Mfg‐F&B

Plantations

Mining‐Oil & Gas 82.0%

40.3%

18.0%

25 5% 1,274

1,294

1,482

2,471

Trad‐Distr

Mfg‐Chem

Plantations

Bus Serv 40.1%

38.1%

37.4%

33.8%

1,030

1,156

1,185

,

Bus Serv

Agri‐oth

Trad‐Ret25.5%

482.1%

1343.9%

19.6% 737

1,082

1,269

,

Mfg‐P&P

Mass Trans

Mfg‐F&B

33.8%

52.2%

47.1%

48.2%

36

746

813

951

Trad oth

Mfg‐RawM

Comm

Mfg‐Metal 157.3%

11.2%

74.9%

451

497

570

646

Mining

Oth

Mfg‐RawM

Mfg‐oth 11.2%

143.0%

73.2%

(275)

(232)

(193)

36

Mfg‐Text

Trad‐Exp

Trans‐oth

Trad‐oth 70.0%

‐22.5%

‐20.8%

‐47 4% 214

218

364

451

Utilities

Trad‐oth

Agri‐oth

Mining 43.5%

53.4%

7.3%

66 4%

Rp Billion(460)

(426)

(305)

Mining‐oth

Mfg‐Chem

Trad‐Distr47.4%

‐17.0%

‐6.4%

‐39.8%Rp Billion(179)

(128)

123

Trans‐oth

Trad‐Dom

Soc Serv

66.4%

34.1%

‐41.2%

‐53.4%

17

p(1,866)

(4,000)

(3,000)

(2,000)

(1,000)

0 1,000

2,000

3,000

4,000 Mfg‐oth ‐61.9% (1,152)

(1,200)

(900)

(600)

(300)

0 300

600

900

1,200

1,500

1,800

Constr ‐21.3%

…into Fee‐based Income

Non‐Loan Related Fees & Commissions

H1 ‘09 Q1 ‘10 Q2 ‘10 H1 ‘10H1 %(Y o Y)

Q2 %(Q o Q)

Breakdown of H1 2009 & 2010 Non‐Loan Related Fees & Commissions (Rp bn)

Commissions (Y‐o‐Y) (Q‐o‐Q)

Administration Fees 642 368 394 762 18.6% 7.2%

Opening L/Cs, Bank Guarantees & 250 145 127 272 8 7% (12 5%)

Capital Markets250 145 127 272 8.7% (12.5%)

Subsidiaries 228 114 117 230 0.8% 2.7%

Transfers, Collections, Clearing & 114 58 62 120 4 8% 6 0%

Bank Reference114 58 62 120 4.8% 6.0%

Credit Cards 250 169 160 329 31.6% (5.6%)

Mutual Funds & ORI 19 12 17 28 45.5% 44.4%Mutual Funds & ORI 19 12 17 28 45.5% 44.4%

Others* 384 224 233 457 18.9% 4.2%

Total 1,888 1,089 1,109 2,197 16.4% 1.8%

Total Operating Income# 11,266 6,133 6,900 13,032 15.7% 12.5%

Non‐Loan Related Fees to Operating Income**

16.8% 17.8% 16.1% 16.9% 0.6% (9.5%)

18

* 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

Building our high yield business in Micro & Small…Micro Credits

(Rp Bn)23.7%

5 310

13.74%

Consumer Loans(Rp Bn)

Small Business Credits(Rp Bn)

LoanYields

12.9%

4,839

6,036

1,197

24.7%18,109

23,419

5,310

29.32%

15,496

19,326

3,830

24.7%9

Q2 2009 Growth Q2 2010

Disbursement Breakdown (H1 2010)

9

Q2 2009 Growth Q2 2010


Q2 2009 Growth Q1 2010


*Excluding Credit Cards

Disbursement Breakdown (H1 2010) Disbursement Breakdown (H1 2010)

1 394


1,013 676

1,182

1,394

5,717

85 261520

1,9723,067

2,465

2,9893,855

82Rural Banks Micro Unsecured Micro TOTAL Mortgage Home Equity

LoanPayroll Loan Other Total

Non‐Prog

Program

Coops

Cash Coll

TOTA

L

19

…as well as Consumer lending, which rose 29.7% Y‐o‐Y on Mortgages, Credit Cards and Vehiclesg g ,

Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type

Rp26.66 tn

3,

2,2

2,565

2,918

22 500

25,000

27,500 Other

Credit Cards

Payroll Loans

Home Equity Loans

Loan TypeGrowth (%)

Y‐o‐Y Q‐o‐Q

4

4,7

4,9852,

2,2

2,2 5

2,452

2,754

2,989

2,973

239

9561,1451,279

1,3531,493

1,758

295

17,500

20,000

22,500Mortgages Other* 95.39% 14.93%

Credit Cards 32.08% 8.92%

3 3,

3,6

3,753

3,822

3,890

3

3,19

3,658

3,999

3,993

3,983

4,099

4,252

4,541

719

1

1,908

1,926

2,008

113

23

51

180 224

495

619

12,500

15,000 Payroll Loans 21.62% 5.63%

Home Equity Loans 5 03% 1 79%

9

10

10,6

11,62

4,

3,6

3,437

3,612

3,702

3,761

3,721

3,697

,704

699

3

1,9

1,930

2,285

3,010

2

1,270

1,367

1,293

72

180

7,500

10,000Home Equity Loans 5.03% 1.79%

Mortgages 31.91% 8.85%

283

1,522

3,050

3,610

5,382

6,393

7,199

7,717

8,052

8,376

8,814

9,193

0,017

681

26

328

2,852

131

666

1,802

921

815

21

0

2,500

5,000

Total Consumer 29.65% 7.78%

20

283Q4 '03

Q4 '04

Q4 '05

Q4 '06

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

* Auto & Motorcycle Loans channeled or executed through finance companies = Rp5.9 tn in our Commercial Loan Portfolio

MTF: Total Financing in 2010 increased

Rp bn

Total Booking and the Break Down for Joint Financinng and Non JF

Breakdown of Financing Program for 2010

1. EMPIRE – Branch Referral Non JF JF New Car Used Car Motorcycle1. EMPIRE Branch Referral

Program

2. COP & Fleet with Targeted Corporate & Commercial

363

11723 23 27

29

customers

3. Continue to build new relationships with top 10

84

113

249

274 284

251275

116 9895 97 92

17 2123 27

Dealers & deepen existing relationship

4. Floor financing targeted at sed car dealerships

121 117 160144

84

117 132 156 164 157

218

used car dealerships

5. Leverage on Bank Mandiri’s network & fixed assets

128 134 139

190

250 Jan 10 Feb 10Mar 10Apr 10Mei 10 Jun 10

128 134 113

139

21

Jan 10

Feb 10

Mar 10

Apr 10

Mei 10

Jun 10

1,770k Visa & Mastercards transacted Rp3.24 tnin Q2 2010

Mandiri Visa & Mastercards and EOQ Receivables Total Card Quarterly Sales by Type of Transaction (Rp Bn)

1 4861,544

1,6081,678

1,770Receivables (Rp Bn)Cards (000s)

6058

50

55

4355

64

75

2600

2800

3000

Transfer BalanceCash AdvanceRetail

1 0891,159

1,2261,273

1,3311,409

1,486

63 63 59

54

59 19 39

52

2000

2200

2400

752

872

1,089

6162

579

10

32

1400

1600

1800

338

651

81

68

18 8

11800

1000

1200

567.5

814.9

1,270.2

1,367.4

1,292.8

1,907.5

1,925.9

2,007.7

2,112.7

2,223.2

2,251.0

2,452.2

2,753.7

2,989.3

2,973.4

3,238.7

226

338

535

521

532

606

600

836

1,514

1,443

1,668

1,904

1,914

1,891

2,163

2,552

2,676

2,497

2,848

62 61 5781 5624 16 1018 8

200

400

600

22

5 9 2 4 8 5 9 7 7 2 0 2 7 3 4 7

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q4 '06

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

5 1 2 6 0 6 4 3 8 4 4 1 3 2 6 7 8

0

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q4 '06

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q2 NPLs raised to Rp4.7 tn on Rp0.9tn down grades

1 000

Non‐Performing Loan Movements (Rp tn) – Bank Only

gMovement by Customer Segment (Rp Bn)

131.6

1,000

Cons

Micro/Small

Comm0.89

0.100.54

265 9

750 Corp

4.60 0.170.89

0.05 4.74

265.9

89.6 500

367.9 289.4 250

127.4132.7 72.6

43.1

250

23

-

127.4 26.9 55.0

0 UG to PL DG to NPL W/OQ3 '09 UG to PL DG to NPL Payment Write‐Offs Other Q4 '09

Gross NPLs declined to 2.54% with provisioning coverage at 206%

20,000 50%

NPL Movement ‐ Consolidated

gCategory 2 Loans – Bank Only

16,000

18,000

,

40%

Cat 2 %

190.4%

219.1%

206.0%

12,000

14,00035.7%

26 2%30%19

25.28%

146.7%138.9% 136.1%

8,000

10,000

26.2%24.8%

15 5%

20%

9.80%

16.34%

129.5%139.1%

128.8%116.0%

4,000

6,000

9.2%

15.0%

9.4%

12.9%

15.5%

11.9%11.5%10.0%9.2%

10.2% 9.7% 9.0% 10%

9.70% 7.308.60% 7.10

7.17 5.

70.0%

44.4%

4,03315,35012,65516,20210,9838,334

12,91216,96615,14814,05813,45113,50215,41216,33215,89518,14817,50617,41717,479

0

2,000

Q4

Q4

Q4

Q4

Q4

Q4

Q4

Q4

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

0%

% 0% 7% 5.14%4.74%4.44%4.73%85%4.78%3.79%2.79%2.56%2.54%

15.3%

0.56% 0.55%

44.4%

Q4

Q4

Q4

Q4

Q4

Q4

Q4

Q4

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2 4 '994 '004 '014 '024 '034 '044 '054 '064 '071 '082 '083 '084 '081 '092 '093 '094 '091 '102 '10

2 ‐ Special Mention Loans (Rp Bn)24

4 '994 '004 '014 '024 '034 '044 '054 '064 '071 '082 '083 '084 '081 '092 '093 '094 '091 '102 '10

Gross NPL Ratio Net NPL Ratio Prov/NPL

Cash Provisioning of Total Loans 5.4%

NPLs(Rp tn)

Q2(Rp tn)

NPLs(%)

Amount of Cash ProvisioningNon‐Performing Loans by Segment

(Rp bn) Loans d

# of Provisioning ( b )

Corporate 1.42 0.08 1.60%

Commercial 1.71 0.15 3.15%

Small 0.54 (0.15) 2.75%

Outstanding Customers (Rp bn)

Individual 15,214 546 7,840

C ll ti 180 071 871 308 2 717S a 0 5 (0 5) 5%

Micro 0.39 0.03 6.44%

Consumer 0.68 0.04 2.56%

Total 4 74 0 14 2 33%*

Collective 180,071 871,308 2,717

Total 195,285 871,854 10,557

Total 4.74 0.14 2.33%• Bank Mandiri’s current cash provisioning to total loans (Bank only) stands at 5.41%

Methodology for Impairment:Bank Mandiri has established criteria for decrease in value based on Loan Segmentation:

* Excluding Restructuring Losses and loans to other banks.

a a d as estab s ed c te a o dec ease a ue based o oa Seg e tat o

Individual Impairment

1. Corporate and Commercial customer segments with objective evidence of decrease in value.2. Outstanding loan balances of more than Rp5 billion for other segments which have objective evidence of decrease in value3. Restructured loans for Corporate and Commercial customer segments4. Restructured loans with outstanding balances of more than Rp5 billion for other segments which have objective evidence of

decrease in value.

Collective Impairment

25

Collective Impairment

1. All segments excluded from individual impairment2. All restructured loans excluded from individual impairment

Q2 2010 annualized net downgrades of 1.27% on loans originating since 2005

Total Loans originated since 2005

g g

Net Upgrades (%)/Downgrades (%) # Q2 2010 Details

Loan Q1 ‘10 Balance Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 DG to

NPLUG toPLBackground Balance

(Rp bn) 2008 2008 2008 2009 2009 2009 2009 2010 2010 NPL%

PL%

Corporate 67,737.6 0.10 0.11 0.48 1.05 1.15 ‐ 0.03 0.28 0.17 0.17 ‐

Commercial 41,759.9 0.14 0.21 1.05 0.78 0.03 0.21 0.04 0.51 0.27 0.37 0.10

Small/Micro 19,778.7 0.58 0.59 1.20 1.06 1.00 1.19 0.84 1.36 0.86 1.14 0.27

Consumer 23,320.6 0.13 0.22 0.13 0.49 0.27 0.30 0.11 0.40 0.33 0.47 0.14

Total 152,596.7 0.18 0.21 0.65 0.91 0.38 0.25 0.12 0.50 0.32 0.40 0.08

# % downgrades and upgrades are quarterly % figures

26

# % downgrades and upgrades are quarterly % figures

Progress on selected debtors as of 30 June 2010

Total outstanding as of 30 June 2010 was Rp 1.3 trillion.

Industry : Airline.G d Industry : Airline.

IPO is scheduled in Q3– Q4 2010 Kick‐off process of IPO

The debtor has signed cooperation (non‐credit) agreements including cash management, corporate card and EDC installment.

Garuda Indonesia

management, corporate card and EDC installment.

Argo Total outstanding to this debtor as of 30 June 2010 was Rp 1.3 trillion. (Col 2)

Argo Manunggal Group

Industry : Property, Textile, Steels

The obligor settled loans of unsustainable loan of Argo Pantes and Grand Pintalan Textile total Rp 312 bn in Q2/2010.

T t l t t di t thi d bt f 30 J 2010 R 1 6 t illi

Domba Mas Group

Total outstanding to this debtor as of 30 June 2010 was Rp 1.6 trillion.

Industry : oleo chemical, lens optic and hotels

The obligor has signed a Conditional Sales & Purchase Agreement (CSPA) with i Th i l i f Ol Ch i l f b i i i

27

new investor. The operational preparation of Oleo Chemical fabric is on going.

Strengthening Risk Management & Monitoring Systemy

Corporate Customer by Rating Summary of Risk Management Initiatives

• Wholesale Transaction: Optimize credit decision process by focusing on quantitative factors of analysis, redefining clear role of risk team , and aligning RM Organization into

High Risk (Rating C‐ G)

Medium Risk (Rating BBB – B)

Creditbusiness expansion

• High Yield Business: Assign dedicated team, set up loan factory, enhanced business process (incl. tools, monitoring & collection system, policy )

• Optimize capital by implementing ERM & VBA

Low Risk (Rating AAA – A)

15% 12% 11% 15% 15%100%

• Development of risk measurement system for derivative & structured product (Summit)

Optimize capital by implementing ERM & VBA• Consolidate risk management of subsidiaries

34%24% 21%

25% 24%

60%

80%

Market• Implement Market Risk Internal Model• Intraday Limit Monitoring• Enhance Policy & Procedure for Treasury & ALM • Enhance FTP (Fund Transfer Pricing) method• Develop liquidity stress test & safety level64% 68%

60% 61%

40%

%

Operational

• ORM implementation in all unit, incl. overseas offices & subsidiary

• Bring Op. Risk top issues into Management

Develop liquidity stress test & safety level• Develop measurement of capital for IRBB 51%

64% 60% 61%

20%

28

g p p g• Review Op. Risk on new procedures & new products0%

2006 2007 2008 2009 H1 '10

Q2 Cost to Income Ratio at 38.4%

70.5%

83.3%CIR* (%)Annual Avg CIR (%) Q2 ‘09 Q2 ‘10

Q2 2010

Q o Q Y o Y

Breakdown of Q2 2009 & 2010 Operating ExpensesQuarterly Consolidated Operating Expenses & CIR*

70.5%

59.5%

g ( ) Q‐o‐Q Y‐o‐Y

Personnel Expenses

Base Salary 425,916 407,961 (0.60%) (4.22%)

Other Allowances 597 580 595 230 (3 72%) (0 39%)

28 2%

41.8%

47.2%

40.4%42.8% 43.2%

39.0%38.4%40.4%

47.2%

40.07%

Other Allowances 597,580 595,230 (3.72%) (0.39%)

Post Empl. Benefits* 186,116 94,200 8.45% (49.39%)

Training 32,266 81,798 228.39% 153.51%

Subsidiaries 148,455 195,344 18.22% 31.58%

723 1

86

1,30

1,158

1,

1,197

1,39

1,019

1,328 1,306

1,375

28.2% , ,

Total Personnel Expenses 1,390,333 1,374,533 5.28% (1.14%)

G & A Expenses

IT & Telecoms 171 774 198 555 16 87% 15 59%

95

649 327

377

3

1,241

69

09 1,005

8 165

1,116

90

6 IT & Telecoms 171,774 198,555 16.87% 15.59%

Occupancy Related 260,771 320,868 13.49% 23.05%

Promo. & Sponsor. 168,747 229,767 77.83% 36.16%

Transport & Travel 67 342 83 625 16 02% 24 18%

336

753

775

749

1,034

842

1,016

993

769

1,034

916

1,148

827

1,004

1,110

1,384

1,051

1,265

57 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

Transport & Travel 67,342 83,625 16.02% 24.18%

Prof. Services 115,264 126,734 11.89% 9.95%

Employee Related 100,139 130,928 (3.76%) 30.75%

Subsidiaries 120 247 174 834 18 36% 45 40%

Q4 '00

Q4 '01

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q4 '06

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

G&A Expenses (Rp bn) Personnel Expenses (Rp bn)29

Subsidiaries 120,247 174,834 18.36% 45.40%

Total G & A Expenses 1,004,284 1,265,311 20.40% 25.99%

*Excluding the impact of non‐recurring interest income & bond gains *VSS costs moved to Employee‐Related in G&A in 2009

Leveraging cash generator to accelerate high yield growth and deposit franchise

Rp BillionConsumer Loans from Alliance Program

(10 top corporate clients)Co‐Branding Prepaid Card Program

g p

1 6091,821

2,085 2,283

2,558

319

791 897 1,128

1,259 1,275 1,389

1,609

Q4 '06 Q4'07 Q1 '08Q2 '08 Q3'08 Q4'08 Q1 '09Q2 '09Q3 '09Q4 '09Q1 '10 Q2 10

Total Payroll Rp Billion

Corporate Card Holder from Alliance Program(10 top corporate clients)

4,39

4,756

4,3 0

5,169

Rp Billion

14,612 16,495

23,660 (10 top corporate clients)3,463

4 3,500

02

2 0073,625

7,272

12,108

Jan '10 Feb '10 Mar '10 Apr '10 May '10 Jun '10

1,616 1,620 1,796 1,869 2,007

Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

30

Enhancing synergies & values from subsidiariesInvestment BankingInvestment BankingSyariah BankingSyariah Banking InsuranceInsurance Niche BankingNiche Banking Multi‐FinanceMulti‐Finance

Total Assets

Rp26 39 tn

Bond Trading Volume

Rp24 1 tn

Total Assets

Rp6 90 tn

Total Loans

Rp549 6 bn

Total Financing

Rp1 698 bn

Bank Sinar Harapan Bali

Rp26.39 tn Rp24.1 tn Rp6.90 tn Rp549.6 bn Rp1,698 bn

Total Financing

Rp19.87 tn

Equity & FI Underwriting

Rp4.3 tn

Annual FYP

Rp 1,001.87 bn

Net Interest Margin

10.70%

Net Interest Margin

5.77%

Total Deposits Equity Trading Volume Fee Contribution ROA ROA (Before Tax)Total Deposits

Rp23.33 tn

Equity Trading Volume

Rp31.5 tn

Fee Contribution

Rp98.67 bn

ROA

3.31%

ROA (Before Tax)

5.17%

ROE

24.42%

ROA

11.8%

ROE

81.%

ROE

14.59%

ROE (After Tax)

23.45%

• Remain the leader in syariah financing

• Expansion of business to fully utilize current capital b

• Provide end‐to‐end bank assurance business

• Enhance operating model

• Improve risk

•Use Bank Mandiri’s network infrastructure th h t I d i t• Capital injection program

over 3 years

• Cross‐sell syariahproducts to Mandiri customers

base

• Cross‐sell capital market services to broad range of Mandiri customers

• Refocus business toward

• Continue to build cross‐sell opportunities in various segments

• Bank assurance products complete our suite of

management systems and IT

• Improve productivity

throughout Indonesia to develop multi‐finance segment, especially in vehicle‐ownership financing.

31

customers • Refocus business toward higher fee income

complete our suite of consumer offerings

H1 2010 operating profit increased by 14.6% from H1 2009 on higher NII & fee‐basedg

H1 2010H1 2009

3,552

Rp billionRp billion

5,773

Up14 6%

2,481

4,906

9 369

14.6%

9,369

7,1488,660

6,235

Net Interest Income Fee‐Based Income Overhead Expenses & Pre‐provisionNet Interest Income Fee‐Based Income Overhead Expenses & Pre‐provision

32

Net Interest Income Fee‐Based Income Overhead Expenses & Others

Pre‐provision Operating Profit

Notes :1. Fee based income excluding gain on sale & increasing value GB & securities 2. Overhead expenses + others excluding provisions

Net Interest Income Fee‐Based Income Overhead Expenses & Others

Pre‐provision Operating Profit

Strong Revenue Growth

Summary P&LH1 2009 H1 2010 Y‐o‐Y

Rp (Billions) % of Av.Assets* Rp (Billions) % of Av.Assets (%)

Interest Income 16,603 9.6% 16,218 8.3% (2.3%)

Interest Expense (7,943) (4.6%) (6,848) (3.5%) (13.8%)

Net Interest Income 8,660 5.0% 9,369 4.8% 8.2%

Other Operating Income 2,481 1.4% 3,554 1.8% 43.2%

Gain from Increase in Value & Sale of Bonds 124 0.1% 111 0.1% (10.5%)

P i i NProvisions, Net (1,974) (1.1%) (1,856) (1.0%) (6.0%)

Personnel Expenses (2,506) (1.4%) (2,680) (1.4%) 6.9%

G & A Expenses (1,832) (1.1%) (2,316) (1.2%) 26.4%

Other Operating Expenses** (568) (0.3%) (777) (0.4%) 36.8%

Profit from Operations 4,385 2.5% 5,404 2.8% 23.2%

N O ti I 115 0 1% 79 0 0% (31 3%)Non Operating Income 115 0.1% 79 0.0% (31.3%)

Net Income Before Tax 4,500 2.6% 5,483 2.8% 21.8%

Net Income After Tax 2,927 1.7% 4,034 2.1% 37.8%

33

* % of Average Assets on an annualized basis** primarily premiums paid under the blanket guarantee scheme

…supported by strong capital, ROE continues to expand

IDR bn

to expandCapital & RWA Movement Profit After Tax & ROE

26 2% RoE AT

195

214.7

31.3%

27.7%

CAR*

2Q4 PAT

21.5%

26.2%23.6%

22.8%

15.8%18.1%

22.1%

22.3%

RoE ‐ AT

172.9

5.826.4%

23.4%

25.3%23.7%

25.3%

21 1% 1 1819

775

1

1,390

2,536

Q4 PATQ3 PATQ2 PATQ1 PAT 2.5%

10.0%

9

108.9

115.9

112.2

134.0

21.1%

15.7% 15 3%

1,

2,031

1

1,528

1,408

1,0 4

1,345

1,693

645 799

8 9 1,166

4

58.1

72.5

1.9

9 15.3%

1 1 2,0

1,

602 690

,329 1,113

1,221

1,526 967

1,017

40 1,234

42.613.3

15.4

17.0

25.5

27.5

27.4

28.4

28.3

27.2

30.5

32.9

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q2'

308

1,168

1,549

1,744

519 510

1,027

1,390

1,400

003

300 97 305 610 372

(623)2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q2 10

RWA (Rp tn) Total Capital (Rp tn)

(623)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

34* Credit Risk Only; CAR inclusive of Market & Operational Risk is 14.50%

On Track to Achieve Our 2010 Targets

Gross Loan Growth 15-18%Savings Deposits > Rp110 tnNet Interest Margins ~ 5.35%Net Interest Margins 5.35%Efficiency Ratio ~ 45%Gross NPLs < 4 0%Gross NPLs < 4.0%Provisioning Coverage > 150%New Distribution Infrastructure Targets:New Distribution Infrastructure Targets:

# of New ATMs 2,500# f N EDC 25 000# of New EDCs 25,000# of New Micro Outlets 500

35

O iOperating PerformancePerformance Highlightsg g

36

Corporate Banking:Contribution Margin declines on rate increase

Rp bn Rp bnPerformance to Date: H1 2010 Contribution Margin (after PPAP) Strategies for 2010

1. Build up the industry‐based focus, including investment in human resources

342 192

1,144

Q1 Q2

Q3 Q4

2 906

gdevelopment, to support the organization in achieving higher than market growth

2. Develop an awareness of the importance f ti i i th t ti l th i

3,910

300

1,92728

1,899

692

2,906

2,483

of optimizing the potential growth in wholesale business transactions, fund preservation and collection of fee‐based income with a strengthened product team function (from product sales

1,477

1,077537

1,138659

7.5%

specialist to product development) while increasing service standards and product competitiveness

3. Foster alliances (collaboration) among business units in the effort to maximize

1,899

592547 1,106

824537 business units in the effort to maximize the borrower’s business potential, from downstream to upstream, with a variety of product and service offerings according to the current needs

545 741

522

1,075

5924. Increase the role of Syndicated &

Structured Finance Group and Mandiri Securities in speeding up the development of wholesale transaction banking by providing sophisticated and

37

2007 2008 2009 2010

banking by providing sophisticated and comprehensive products that meet customers’ needs

Mandiri Sekuritas’ financial performance has been impacted by the global economy crisis p y g y

H1 ‘09 H1 ‘10 Y‐o‐Y (%)(Rp Bn)

Revenues 170 165 (3%)

• Investment Banking 69 34 (51%)

• Capital Market 81 82 1%Capital Market 81 82 1%

• Treasury 3 0 (100%)

• Investment Mgt 19 30 58%

Operating Expenses 72 105 46%

Earnings After Tax 17 43 153%

Equity Transactions 18,887 31,539 67%

SUN Transactions 8,416 24,114 187%

Bonds Underwritten 875 4 296 391%Bonds Underwritten 875 4,296 391%

ROA 2.1% 8.2% 290%

ROE 5 2% 11 8% 127%ROE 5.2% 11.8% 127%

38

Treasury, FI & SAM

Rp bn Rp bn

Performance to Date: H1 2010 Contribution Margin (after PPAP) Strategies for 2010

1. New strategy for remittance business in Middle East Southbusiness in Middle East, South Korea and Taiwan.

2. Develop FX online dealing & web‐based FX quotation system in order to generate more FXin order to generate more FX volume from corporate clients.

3. Expand clients’ coverage for foreign exchange, marketable securities and custody services

1,280

2,062

156%

securities and custody services business including foreign investors.

4. Set program and strategy to become major player in

1,382

become major player in banknotes business.

5. Early restructuring and intense monitoring.

803

6. Legal action on non‐cooperative debtors.

7. Enhance e‐procurement system.

8 Optimum utilization on e

39

8. Optimum utilization on e‐auction.* 2010: Including Collection from SAM and excluding

International branches

Commercial Banking:Strong revenues from both Liabilities & Assets

Q1 Q2 Q3 Q4Rp bnRp bn

Performance to Date: H1 2010 Contribution Margin (after PPAP) Strategies for 2010

1. Supporting Bank Mandiri Wholesale Banking vision as an Integrated

405330

2 521

Banking vision as an Integrated Wholesale Bank through sophisticated, customized and completed services to can increase revenue especially through potential

4,449

1 964

4822,521

407

2,114 3,026

p y g pbusiness like Wholesale Banking Deposit and Fee Income.

2. Increasing profit and market share through customer existing share of

714

1,1661,964

2,114 (3.4)%

wallet, increasing revenue from new customer and NPL control.

3. Provide best total business solution for customer by developing product

2,115

795

1,266 1,176564

714and services including quality bundling product, quick services and competitive price.

4. Effective Alliance in units based on

487 852 923 939

946customer base in Commercial and Small segment, especially in developing value chain business.

2007 2008* 2009* 2010**

* incl CM of Small Business & BSM**in June 2010 Decline due to PSAK50&55Implementation 40

Commercial Banking :Stronger Platform & Improved Distribution Capability

Expanding Scope of Distribution, 2010Solid & Stable Source of

Low Cost FundsR T **

ProductQ2 ‘09

Q2 ‘10

Growth

Demand 18 15 18 35 1 11%

Rp Tn **

SumateraLoans = Rp7.2 tnFunds = Rp4.4 tn

KalimantanLoans = Rp2.9 tnFunds = Rp2.2 tn

EasternLoans = Rp1.4 tnFunds = Rp0.7 tn

Deposit18.15 18.35 1.11%

Rupiah 12.69 12.44 ‐2.00%

FX 5.45 5.91 8.39%

Saving Deposit*

1.40 1.51 7.42%

Total Low Cost Fund

19.55 19.86 1.57%Cost Fund

Total Funding

33.00 30.20 ‐8.49%Java and Bali

Loans = Rp41.1 tnFunds = Rp22.9 tn

CBC = 20 Unit

Floor = 22 Unit

TSC = 11 Unit

TSD = 14 Unit

Low Cost Fund Ratio = 69.18%Funding from Java & Bali =84.55% of total funding

41

g

* Business Savings Product** excl. SBG

Strong growth from Bank Syariah Mandiri

13.6% 13.5%13 0%

Net Interest Margin & Cost of FundsFinancial Performance (Rp bn)

FY ’06 FY ‘07 FY ’08 FY ’09 H1 ’10

12.3%12.4%13.0%

12.4% 12.3%12.7%

12.0%

12.1%

YoAFinancing 7,415 10,305 13,278 16,063 19,871

Deposits 8,219 11,106 14,899 19,338 23,333

Assets 9,555 12,888 17,066 22,037 26,385

EAT 65.48 114.64 196.42 290.94 197,598

Ratios:

ROA 1.10% 1.54% 1.83% 2.23% 2.22%

ROE 10 23% 15 94% 21 34% 21 40% 24 42%

6.2%5.9%Syariah Financing (Rp tn)

ROE 10.23% 15.94% 21.34% 21.40% 24.42%

Net NPF 4.64% 3.43% 2.37% 1.34% 0.88%

6.8 6 6. 6 6 6 6 6. 6 6

5.7%5.4%5.4%5.4%5.3%5.3%

5.7%6. %

5.8%5.6%

4.7%

4.9%

19.87

Financing

90.2%91.1%91.1%89.2%99.1%

89.1%86.9%

87.0%

87.9%83.1%83.9%85.2%

FDR

CoF

8% 5.6%

6.3%

7%

6.3%

6.4%

6.3%

5.6%

5.6%

6.1%

.6%

6.2%

6.2%

10.31 11.1512.73

13.77 13.25 13.43 14.2314.94

16.0617.65FDR

NIM

2005Q4 '06Q4 '07Q1 '08Q2 '08Q3 '08Q4 '08Q1 '09Q2 '09Q3 '09Q4 '09Q1 '10Q2'10

7.41

Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2'10

42

Micro & Retail Banking:Rapidly growing our high margin business

Performance to Date: H1 2010 Contribution Margin (after PPAP)

Rp bn Rp bn

Strategies for 2010

1. Leverage our strength in

Q4

Q3

Q2

1,3903,995

g gCorporate and large Commercial customers to quickly build high margin business

1,069

722

Q1

2 073

2,426

2. Continue to improve our payment infrastructure

3. Expand our distribution with a focus on high margin

3,152

1,319 449318

(32 2%)

2,073

2,204business

4. Improve our sales culture and productivity of existing network

740 880

855

583

572(32.2%)

1,527 183

1,344

5. Cross sell to grow our fee based income business1,344

574 727 1,126

761 488

2007 2008* 2009 * 2010*

*Excluding Small Business 43* Includes Deposit Insurance

Consumer Finance:Significant growth in spread and fee income

Performance to Date, H1 2010 Contribution Margin (after PPAP)

Rp bnRp bnRp bn

288283

Q1 Q2

Q3 Q4

1,509

1,176 1,181251

489

931930

455

413

32463953%

831

931

355

455

161133

79

158

324

412

639

143 150 174 252

476 90

170200100

79

44

NII Fees Overhead Operating Profit

Provisions Profit After PPAPAxis Title

2006 2007 2008 2009 2010

S i M i lSupporting Materials

45

Key Quarterly Balance Sheet Items & Financial Ratios

IDR billion / % H1 ‘09 FY ‘09 H1 ‘10 Y‐o‐Y (%)

Gross Loans 181,611 198,547 217,996 20.03%

Government Bonds 88 243 89 133 83 536 (5 33%)Government Bonds 88,243 89,133 83,536 (5.33%)

Total Assets 358,897 394,617 402,084 12.03%

Customer Deposits 287,055 319,550 326,578 13.77%

T l E iTotal Equity 31,439 35,109 36,508 16.12%

RoA ‐ before tax (p.a.) 2.54% 2.96% 2.75%

RoE – after tax (p.a.) 18.70% 22.07% 22.33%

Cost to Income(1) 38.94% 40.18% 38.66%

NIM (p.a.) 5.35% 5.22% 5.18%

LDR 62.20% 61.36% 66.33%

Gross NPL / Total Loans 4.78% 2.79% 2.54%

Provisions / NPLs 136.13% 200.45% 205.97%

Tier 1 CAR(2) 12.62% 12.50% 11.85%

Total CAR(2) 14.10% 15.55% 14.58%

Total CAR incl. Market Risk 14.02% 15.43% 14.50%

EPS (Rp) 139.92 341.72 192.34 37.56%

46

S ( p) 139.92 341.72 192.34 37.56%

Book Value/Share (Rp) 1,503 1,677 1,741 15.83%(1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains(2) Bank only – Not including Market Risk

Total Assets grew 12.0% Y‐o‐Y to Rp402.1 tn

106

110400 Int. from Bonds Int. from Loans

21

91. 7 6

67.

95.7

84.1

89.0

89.8

6.9

0.6

320

360

75 4%74 1%

4 4 13 1

149

162.8

174.5

175.2

181.6

188.3

198.5

201.9

18.0

27.0

33.4

60. 5

36.1

50.6

60.7

64.5

57.6

55.1

54.0

59.2

56.1

59.2

61.2

1 75.5

66.7

4240

28075.4%74.1%

60.6%

63.6%68.0%68.3%67.3%

76.0%

(Rp tn)

44.0

43.0 48.3

65.4 75. 9

94.4

106.9

105.1

107.8

108.8

117.7

114.3

116.3

121.7

38.5

135.5

9.6

85

160

200

47.1%34 8%

50.0%46.9%

50.1%52.2%

56.8%58.8%59.1%57.2%

63.6%

Total A

ssets

9

80

120 40.9% 41.0%34.8%

31.0%32.3%32.4%29.3%29.3%25.4%

22.4%19.6%20.5%17.7%19.0%19.0%

34.1%

40.6%

177.4

176.9

153.5

148.8

122.9

93.1

92.1

92.2

92.3

91.0

90.6

90.6

89.5

90.8

89.5

88.6

88.4

88.5

88.3

88.4

88.2

88.4

89.1

86.8

93.5

0

40

Q4

Q4

Q4

Q4

Q4

Q4

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q24 '99

4 '00

4 '01

4 '02

4 '03

4 '04

4 '05

1 '06

2 '06

3 '06

4 '06

1 '07

2 '07

3 '07

4 '07

1 '08

2 '08

3 '08

4 '08

1 '09

2 '09

3 '09

4 '09

1 '10

2 '10

Government Bonds Loans Other Assets47Consolidated

Additional Factors

Aggregate of Rp33.377 tn (US$ 3.668 bn) in written‐off loans as of end‐March 2010, with significant recoveries on‐going: 2001: Rp2.0 tn 2002: Rp1.1 tn 2003: Rp1.2 tn

Written‐offWritten‐off

2004: Rp1.08 tn 2005: Rp0.818 tn (US$ 83.2 mn) 2006: Rp3.408 tn (US$ 378.5 mn)*Written off

LoansWritten off

Loans 2007: Rp1.531 tn (US$ 249.3 mn) 2008: Rp2.309 tn (US$ 211.8 mn) 9Mo ’09: Rp1.489 tn (US$ 146.4 mn) Q4 ‘09: Rp0.775 tn (US$ 82.5 mn) Q1 ‘10: Rp0.287 tn (US$ 31.6 mn) Q2 ‘10: Rp0.662 tn (US$ 73.0 mn) **)

* including the write‐back of RGM loans totaling Rp2.336 tn

** Including the write back of Kharisma Arya Paksi loans totaling Rp 0.124 tn

48

Summary Quarterly Balance Sheet: Q2 ‘09 –‘10

Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 ‘10 Y‐o‐Y

Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# %

Total Assets 358 90 366 49 394 62 399 24 402 08 44 36 12 03%Total Assets 358.90 366.49 394.62 399.24 402.08 44.36 12.03%

Cash 5.91 9.39 8.87 6.63 6.45 0.71 9.14%

Placement with BI 28.32 30.36 48.81 17.92 25.71 2.84 (9.22%)

Placement with other banks 29.00 25.59 26.57 27.20 25.33 2.79 (12.66%)Placement with other banks 29.00 25.59 26.57 27.20 25.33 2.79 (12.66%)

Securities 3.22 9.75 3.73 35.48 25.75 2.84 699.69%

Government Bonds 88.39 88.36 89.13 86.82 83.54 9.22 (5.48%)

Trading 0.16 0.25 0.43 0.27 0.15 0.02 (6.25%)

AFS 26.22 26.12 25.92 63.13 59.96 6.61 128.71%

HTM 62.01 62.00 62.79 23.42 23.43 2.58 (62.22%)

Loans 181.61 188.28 198.55 201.94 217.99 24.05 20.03%

172 23 180 37 192 34 196 57 213 12 23 51 23 75%Performing Loans 172.23 180.37 192.34 196.57 213.12 23.51 23.75%

Non‐Performing Loans 9.39 7.92 6.21 5.36 4.88 0.54 (48.01%)

Allowances (12.78) (12.29) (12.45) (11.50) (11.55) (1.27) (9.60%)

Loans Net 168 83 176 00 186 10 190 43 206 45 22 77 22 28%Loans – Net 168.83 176.00 186.10 190.43 206.45 22.77 22.28%

Total Deposits – Non‐Bank 287.06 295.55 319.55 312.91 326.58 36.03 13.77%

Demand Deposits 65.61 66.79 72.70 69.80 73.34 8.09 11.78%

Savings Deposits 97.13 102.39 113.80 106.98 113.75 12.55 17.11%

49

g p

Certificate & Time Deposits 124.32 126.37 133.06 136.13 139.49 15.39 12.21%

Shareholders’ Equity 31.44 33.10 35.11 36.78 36.51 4.03 16.13%

# USD1 = Rp9,065

Summary Quarterly P&L

Summary P&LQ2 2009 Q1 2010 Q2 2010 Q‐o‐Q Y‐o‐Y

Rp (Billions)% of

Av.Assets*Rp (Billions)

% of Av.Assets*

Rp (Billions)% of

Av.Assets (%) (%)

Interest Income 8,035 9.10% 8,030 8.09% 8,188 8.17% 1.97% 1.90%

Interest Expense (3,769) (4.27%) (3,396) (3.42%) (3,452) (3.45%) 1.65% (8.41%)

Net Interest IncomeNet Interest Income 4,266 4.83% 4,634 4.67% 4,735 4.73% 2.18% 10.99%

Other Operating Income 1,332 1.51% 1,327 1.34% 2,225 2.22% 67.67% 67.04%

Gain from Increase in Value & l f d

66 0.07% 90 0.09% 21 0.02% (76.67%) (68.18%)Sale of Bonds

66 0.07% 90 0.09% 21 0.02% (76.67%) (68.18%)

Provisions, Net (599) (0.68%) (692) (0.70%) (1,162) (1.16%) 67.92% 93.99%

Personnel Expenses (1,390) (1.57%) (1,306) (1.32%) (1,374) (1.37%) 5.21% (1.15%)( , ) ( ) ( , ) ( ) ( , ) ( ) ( )

G & A Expenses (1,005) (1.14%) (1,051) (1.06%) (1,265) (1.26%) 20.36% 25.87%

Other Operating Expenses** (300) (0.34%) (383) (0.39%) (394) (0.39%) 2.87% 31.33%

Profit from Operations 2 370 2 68% 2 619 2 64% 2 786 2 78% 6 38% 17 55%Profit from Operations 2,370 2.68% 2,619 2.64% 2,786 2.78% 6.38% 17.55%

Non Operating Income 57 0.06% 114 0.11% (35) (0.03%) (130.70%) (161.40%)

Net Income Before Tax 2,427 2.75% 2,733 2.75% 3,750 3.74% 37.21% 54.51%

50

Net Income After Tax 1,527 1.73% 2,003 2.02% 2,031 2.03% 1.40% 33.01%

* % of Average Assets on an annualized basis** primarily premiums paid under the blanket guarantee scheme

Limited Impact on Government Recap Bonds

Maturity/ Trading Portfolio Available for Sale Held to

Recap Bond Portfolio by Type and Maturity (Rp83,537 bn)

0.0270

Bonds by Rate Type & Portfolio as of June 2010(Rp bn)

y/Rp bn MaturityNominal MTM Nominal MTM

Fixed Rate Bonds

< 1 year ‐ ‐ ‐ ‐ 3 60

0.02

30

40

50

60 Fixed Rate

Variable Rate

< 1 year 3

1 ‐ 5 year 141 146 18 18 732

5 ‐ 10 year ‐ ‐ ‐ ‐ 829

> 10 year 120

60

21.7450.15

1.68

0

10

20

30

> 10 year ‐ ‐ ‐ ‐ 120

Sub Total 141 146 18 18 1,684

Variable Rate Bonds

* Mark to Market impacts Profit# Mark to Market impacts Equity^ Nominal value

0 Trading* AFS# HTM^

< 1 year ‐ ‐ ‐ ‐ ‐

1 ‐ 5 year ‐ ‐ 8,640 8,482 1,505

5 ‐ 10 year ‐ ‐ 34,477 34,062 20,239 FY ‘09 Q1 ‘10 Q2 ‘10

Realized Gains/Losses19 01 61 81 0 93

Q2 ‘10 Recap Bond Gains/(Losses) (Rp bn)

> 10 year ‐ ‐ 17,614 17,401 ‐

Sub Total ‐ ‐ 60,731 59,945 21,745

/on Bonds 19.01 61.81 0.93

Unrealized Gains/Losseson Bonds 2.04 (3.00 ) 3.98

51

T o t a l 141 146 60,749 59,963 23,429 Total 21.05 58.81 4.91

Ex‐Recap Bond Portfolio, 30 Jun ‘10 – Bank Only

SeriesMaturity Date

No.Trading AFS HTM Trading

Interest Rate (%)

Marked To Market

Fair ValueNominal

AFS HTM

1 FR0014 15‐Nov‐10 15.58% ‐ 2,947 100.000 ‐ ‐ 2,947 2 FR0020 15‐Dec‐13 14.28% 291 100.000 ‐ ‐ 291

Date ad g S ad gRate (%) Market S

Fixed Rate

‐ ‐ 3,238 ‐ ‐ 3,238

1 VR0017 25‐Jun‐11 6.58% ‐ 290,270 ‐ 97.989 ‐ 284,433 ‐ 2 VR0019 25‐Dec‐14 6 58% ‐ 5 050 000 1 114 300 98 230 ‐ 4 960 615 1 114 300

Variable RateSub Total

2 VR0019 25 Dec 14 6.58% 5,050,000 1,114,300 98.230 4,960,615 1,114,300 3 VR0020 25‐Apr‐15 6.81% ‐ 3,300,000 391,029 98.260 ‐ 3,242,580 391,029 4 VR0021 25‐Nov‐15 6.65% ‐ 100,000 690 97.275 ‐ 97,275 690 5 VR0022 25‐Mar‐16 6.58% ‐ 692,844 6,796,813 98.947 ‐ 685,548 6,796,813 6 VR0023 25‐Oct‐16 6.81% ‐ 659,738 4,086,068 98.939 ‐ 652,738 4,086,068 7 VR0024 25‐Feb‐17 6.65% ‐ ‐ 8,210,550 98.926 ‐ ‐ 8,210,550 8 VR0025 25‐Sep‐17 6.58% ‐ 4,065,402 1,145,148 98.943 ‐ 4,022,431 1,145,148 9 VR0026 25‐Jan‐18 6.81% ‐ 3,475,267 ‐ 98.935 ‐ 3,438,255 ‐ 10 VR0027 25‐Jul‐18 6.81% ‐ 3,475,267 ‐ 98.934 ‐ 3,438,221 ‐ 11 VR0028 25 Aug 18 6 65% 5 171 695 98 922 5 115 94411 VR0028 25‐Aug‐18 6.65% ‐ 5,171,695 ‐ 98.922 ‐ 5,115,944 ‐ 12 VR0029 25‐Aug‐19 6.65% ‐ 8,819,688 ‐ 98.920 ‐ 8,724,435 ‐ 13 VR0030 25‐Dec‐19 6.58% ‐ 8,016,765 ‐ 98.937 ‐ 7,931,547 ‐ 14 VR0031 25‐Jul‐20 6.81% ‐ 17,614,108 ‐ 98.929 ‐ 17,425,461 ‐

‐ 60,731,044 21,744,598 ‐ 60,019,483 21,744,598 Sub Total

52

‐ 60,731,044 21,747,836 ‐ 60,019,483 21,747,836 0.00% 73.63% 26.37% 0.00% 73.40% 26.60%

82,478,880 81,767,319 Total Fair ValueTotal Nominal Value

Grand Total

(Stated in Rp Millions)

Bank Mandiri Credit Ratings

S&P Moody’s Fitch Pefindo

Bank Mandiri RatingsBank Mandiri Ratings

Long Term Foreign Currency Outlook Stable Stable Stable

Foreign Long Term Bank Deposits Ba3

L T F i C D bt BB WR BBLong Term Foreign Currency Debt BB WR BB+

Short Term Outlook Stable

Short Term Foreign Currency Debt B NP B

Subordinated Debt Ba3 BB idAA+

Individual Rating C/D idAAA

Support Rating 3

Bank Financial Strength D

Long Term Local Currency Outlook Positive Stable

l b dLong Term Local Currency Debt BB‐ BB+ idAA

Local Long Term Bank Deposits Baa3

Short Term Local Currency Debt B P‐3

53

National Rating B idnAA+

Corporate Actions

Net Profit for the financial year of 2009 of Rp7,155,463,216,743.00was distributed as follows:

35% R 2 504 412 132 860 05 f th l di id d• 35%, or Rp2,504,412,132,860.05, for the annual dividend• Total Dividend Payment of Rp119.43 per share • Interim dividend of Rp19.26 paid on 22 December 2009

Schedule :

DividendDividend

a. Cum Date: Regular and Negotiated Market: June 9, 2010Cash Market: June 14, 2010

b E D tDividendPaymentDividendPayment

b. Ex Date: Regular and Negotiated Market: June 10, 2010Cash Market: June 15, 2010

c. Payment Date: June 28 2010y

Net Profit for the financial year of 2008 of Rp5,312,821,488,698.00was distributed as follows:

• 35% or Rp1 859 487 521 044 30 for the annual dividend• 35%, or Rp1,859,487,521,044.30, for the annual dividend• Total Dividend Payment of Rp88.55 per share

54

Q2 2010 Movement in Category 1 and 2 LoansCategory 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only

314,803

89

3,219 2,053890 145 336 23

3,219 2,0533

26890 145 336

159,495

173,066

17,417 17,479

/ / / / Beg Bal Cat 1 D/G U/G to 1 D/G to NPL U/G Net FX Impact End Bal

55

Beg. Bal. D/G to 2 U/G from 2

D/G to NPL

U/G from NPL

Net Disburs.

FX Impact End Bal. Beg. Bal. Cat. 1 D/G U/G to 1 D/G to NPL

NPL U/G Net Disburs.

FX Impact End Bal.

Q2 2010 Loan Detail: Collectibility by SegmentLoan Profile: Q2 Collectibility (%) by SegmentBank Only

0.1% 0 2% 0 4% 0 4%1.4% 1.8% 1.9% 3.8%

1.6% 90,000

Loan Profile: Q2 Collectibility (Rp bn) by SegmentBank Only

10.2% 5.3% 9.4%

15.2%

10.5%0.2% 0.4%

1.0%0.4%3.8%

70 000

80,000

560,000

70,000

88.2% 91.6% 87.9% 87.0%

4

3

2

1

40,000

50,000

78.3% 1

20,000

30,000

10,000

20,000

56Corp Comm Small Micro Cons

0

Corp Comm Small Micro Cons

NPL Loan Detail*: Quarterly by Days Past Due

70%

Quarterly D/G to NPL & Interest DPD ‐ Bank Only Quarterly NPL Stock & Interest DPD ‐ Bank Only

Rp tn70%

40%

50%

60%Current (%)

<30 Days OD (%)

40%

50%

60%Current (%)

<30 Days OD (%)

10%

20%

30%

40%

10%

20%

30%

40%

0%

10%

10 000

12,000

Rp Value25 000

30,000

Rp Value

0%

10%

6,000

8,000

10,000

15,000

20,000

25,000

11,1616,9011,1774,1061,5581,3041,0311,64423578356 113450359 6325

1,85 81,97529748028385 1617

2,000

4,000

17,45624,96224,19326,24 826,42425,66525,41 417,96017,18016,50013,60310,65 46,5586,5106,5867,8339,67 87,7006,0994,5053,58 93,668

5,000

10,000

57

1 7 6 8 4 1 4 1 4 6 8 7 0 1 7

0

Q1 '05

Q4 '05

Q3 '06

Q2 '07

Q1 '08

Q4 '08

Q3 '09

Q2 '10

6 2 8 4 4 0 0 0 4 8 0 6 8 0 9 9 8

0

Q1 '05

Q4 '05

Q3 '06

Q2 '07

Q1 '08

Q4 '08

Q3 '09

Q2 '10

* Excluding Micro & Consumer Loans Only

Rp245 bn in loans were restructured or repaid in Q2 ‘10

Others#Write‐Offs

Q2 10IDR bn

Loans by Restructuring Type in Q2 2010Restructured Loan Movement 2002 ‐ 2010

Write OffsRepaymentsRestructuringBalance Maturity

extension; 42 9%42.9%

Maturity extension w/reduced rates; 2.0%

29,

23,

21,

19,

20,

20,

16,

17,

16,

15,

;

LT loans w/convert;

1.4%

Additional loans; 1.8%

,542

,987

,045

,427

,914

,645

,560

,104

,046

,271

2002Add

Deduc

2003Add

Deduc

2004Add

Deduc

2005Add

Deduc

2006Add

Deduc

2007Add

Deduc

2008Add

Deduc

2009Add

Deduc

Q1 '10

Add

Deduc

Q2 '10

Maturity extension w/other restr'g*; 52 1%

ct ct ct ct ct ct ct ct 0 ct 052.1%

*Other Restructuring includes reduction of interest rates, rescheduling of unpaid interest & extension of repayment period for unpaid interest

(Rp billions) ‘05 ‘06 ‘07 ‘08 ‘09 Q1 ’10

Q2 ’10

Loans 718 5 573 2 445 677 5 660 33 149

58

#Others includes partial payments, FX impacts, and fluctuation in Working Capital facilities

p p y p pLoans Restructured

718 5,573 2,445 677 5,660 33 149

NPLCollections

1,118 2,398 2,567 1,147 2,058 141 96

Loan Portfolio Sector Analysis, Q2 2010

Mfg‐Oth13.3%

Mfg‐F&B13.1%Agri

Mfg Oth

Agri14.0%

Bus Serv10 6%

Mfg‐Oth

Mfg‐F&B

Bus Serv

Oth 4% 10.6%

Trad‐Distr

Oth<4%

Trans

Mfg‐Chem

i i il & Oth<4%9.7%

Trans

Oil & Gas4.4%

5.6%Mining‐Oil & Gas

Trad‐Ret

ConstrTrans7.9%

Mfg‐Chem7.1%

Mining‐Oil & Gas7.0%

Trad‐Ret6.0%

Trad‐Distr

59

(1) Non‐consolidated numbers* Each sector < 4%


Q2 2010 Loan Detail*: Downgrades to NPL

5

Trad‐Distr

Constr InvestOther100%

Loan Profile: Q2 NPL Downgrades Only (Rp618 bn) Bank OnlyCorporate, Commercial & Small Business

loans downgraded to NPL in Q2 totaled

R 618 billi (0 32% f t t l l ) Of th

Mfg‐Wood

Other <5%

Trad‐Distr

USD

Small

80%

90%Rp618 billion (0.32% of total loans). Of these

loans:

20.7% were current on interest payments

4

91+

Mfg‐Oth60%

70% 57.5% were Commercial borrowers and 22.0% came from our Small Business portfolio

32.8% were loans previously restructuredMfg Oth

WCComm

40%

50%

p y

Largest downgrades by sector:

Retail Trading

Textile Manufacturing

Mfg‐TextIDR

30%

40% Textile Manufacturing

Wood Manufacturing

68.6% were IDR loans

94.13% were Working Capital loans3

Current Trad‐Ret Corp10%

20%

9 . 3% e e o g Cap ta oa s

62.4% were more than 90 days overdue in interest payments

60

0%

Collect. Int. Aging Sector Currency Purpose Segment * Excluding Micro & Consumer Loans Only

Q2 2010 Loan Detail*: Non‐Performing Loans

Bus Serv Other SyndOther

S ll

100%

Loan Profile: Q4 Non‐Performing Loans Only (Rp4,505 bn) Bank OnlyCorporate, Commercial & Small Business NPLs

totaled Rp3,668 billion in Q2, or 1.9% of total

loans Of these NPLs in Q2

Mfg Text

Trad‐oth

Trans

USD

Invest

Small

80%

90%

27.6% remain current on interest payments and an additional 8.6% are less than 90 days overdue

loans. Of these NPLs in Q2:

5 91+ Trad‐Ret

Mfg‐Text USD

Comm60%

70%

than 90 days overdue

38.6% are to Corporate customers

74.2% are Working Capital loans and 18 8% are Investment loans

Trad‐Dom

Constr

40%

50%

18.8% are Investment loans

Primary sectors are: Manufacturing Trading

OthIDR

WC

30%

40% Construction

37.7% are USD loans

24.5% were previously restructured

4 Current

Mfg‐oth

Mfg‐Metal Corp

10%

20% 7.9% are Cat. 3 & 22.2% are Cat. 4

0.6% were upgraded in Q2, while 51.6% saw no change in collectibility

61

3Mfg‐oth

0%

Collect. Int. Aging Sector Currency Purpose Segment * Excluding Micro & Consumer Loans Only

Q2 2010 Loan Detail*: Downgrades to Cat. 2

61+ Mfg‐F&B USD ConsumerProgram100%

Loan Profile: Q2 Downgrades to Cat 2 Only (Rp1,908bn) Bank OnlyRp1,908 billion (0.98% of total loans) in

Corporate, Commercial & Small Business

l d d d t C t 2 i Q2

Small

31‐60Trans

Mfg‐othInvest

80%

90%loans were downgraded to Category 2 in Q2.

Of the Special Mention Loans downgraded:

43.3% are for Commercial & 47.0% are to Small

Plantations

Mfg‐Chem

>200460%

70%Small Business customers

36.3% are current & 1.9% are 1 day

overdue in interest payments<30

Trad‐Distr

IDR

40%

50% Primary sectors downgraded are:

Retail Trading

Business Service

Comm

1 Day

Bus Serv

Roads & BridgeWC

30%

40% Construction

Distribution

91.8% are Rupiah loans

Current

Trad‐Ret

2000‐200410%

20% 70.7% are Working Capital loans

18.4% are Restructured loans

62

Corp

<20000%

Segment Days Aging Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only

Q2 2010 Loan Detail*: Category 2 Loans

Small 61+ Oth<5% Synd

ConsumerProgram100%

Loan Profile: Q2 Category 2 Loans Only (Rp13,772 bn) Bank OnlyRp13,772 billion (7.1% of total loans) in


l i C t 2 i Q2 Of th

Comm

Small

31‐60

61+

Constr

Plantations

Oth<5%

USDInvest

Synd

>200480%

90%loans were in Category 2 in Q2. Of these

Special Mention loans:

65.8% are to Corporate customersComm

1 Day

<30

Mfg‐Chem

Mfg‐NonM

Invest

60%

70% 69.8% are current or 1 day overdue, with

an additional 9.1% less than 30 days

overdue

Mfg‐oth

Trading

40%

50% Primary sectors in Category 2 are:


Pulp & Paper Manufacturing

Corp

Current

Mfg‐P&P

Mfg oth

IDR WC2000‐2004

30%

40%p p g

Trading

Chemical Manufacturing

Non Metal Manufacturing

Mfg‐Text10%

20% 56.8% are IDR loans

58.9% are Working Capital loans


63

<20000%

Segment Days Aging Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only


84.1% were Category 2 in Q1 ‘10

Q2 2010 Loan Detail*: Upgrades to PL

Soc ServMfg‐oth

USD

100%

Loan Profile: Q2 Upgrades to PL (Rp113 bn) Bank OnlyCorporate, Commercial & Small Business

loans upgraded to PL in Q2 totaled Rp113

billi (0 06% f t t l l ) Of th l

Mfg‐Text

oth<5%

Invest80%

90%billion (0.06% of total loans). Of these loans:

51.4% were to Small Business borrowers

80.1 originated in 2005 or laterSmall

Trad‐oth

>200460%

70% 16.1% were previously restructured loans

Largest upgrades by sector:

Construction2 Trad‐Ret

IDR

40%

50% Trading


90.7% were IDR loans

Comm C

WC30%

40% 57.1% were Working Capital loans

86.5% of upgrades to PL were NPLs moving to Category 2

1

Comm Constr 2000‐200410%

20%

64

1 <2000

0%

Collect. Segment Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only

Q2 2010 Loan Detail*: Performing Loans

2Small Oth<5% Consumer

SyndOther100%

Loan Profile: Q2 Performing Loans Only (Rp158,924bn) Bank OnlyRp158,924 billion (81.4% of total loans) in


l f i i Q2 Of thSmall

Constr

Comm

Oth<5%USD

Consumer

80%

90%loans were performing in Q2. Of these

performing loans:

54.9% are to Corporate customers & 33 1% are to Commercial customers

Comm

Mining‐Oil & Gas

Trad‐Ret

Trad‐Distr Invest

>200460%

70%

33.1% are to Commercial customers

82.6% originated since 2005

91% have no restructuring history

9% are Restructured loans

1 Bus Serv

Mfg‐Chem

Gas >2004

40%

50%

0.1% were purchased from IBRA

Primary sectors are:

Food & Beverage Manufacturing

Corp

Plantations

IDR

WC30%

40% Plantation

Business Services

Chemical Manufacturing

79 6% are Rupiah loans

Mfg‐F&B

Mfg‐oth

2000‐2010%

20% 79.6% are Rupiah loans


87.5% saw no change in collectibility

0.1% were upgraded from NPL

65

Mfg‐F&B

<2000

004

0%

Collect. Segment Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only

Q2 2010 Loan Detail*: Restructured Loans

35

SyndSmall100%

Loan Profile: Q2 Restructured Loans Only (Rp15,271 bn) Bank OnlyOf the remaining Rp15,271 billion in

restructured Corporate, Commercial & Small

Agri

Oth<5%

USD Invest

Comm

80%

90% Business loans in Q2, or 7.8% of total loans:

94.1% are performing 75.4% of loans in Category 2 are current in interest payments

2Trad‐H&R

Mfg‐NonM

g

60%

70%

interest payments Of the 5.9% which are in NPL, 1.7% are current in interest payments

Primary sectors are:

31‐60

Mfg Chem

Mfg‐oth

40%

50%

Manufacturing•Textiles•Pulp & Paper•Chemicals

Mfg‐P&P

Mfg‐Chem

IDR WC

Corp

30%

40% Chemicals Trading Non Metal Mfg


1

Mfg‐Text10%

20% 61.6% are Working Capital loans 72.2% are to Corporate customers 4.8% deteriorated in collectibility 0 8% showed improved collectibility

66

Current

31‐60 Days0%

Collect. NPL Aging Sector Currency Purpose Segment * Excluding Micro & Consumer Loans Only

0.8% showed improved collectibility

Q2 2010 Loan Detail: Corporate Loans

2

5

61+ Oth<5%Synd

Consumer100%

Loan Profile: Q2 Corporate Loans Only (Rp88,672 bn) Bank OnlyRp88,672 billion in loans were in the

Corporate portfolio in Q2, or 45.4% of total 2

1 Day<3031‐60

61+

Mfg‐Chem

Trading

Oth<5%

USD80%

90%

98.4% are performing loans, with 10.2% in Category 2

loans. Of the Corporate Loans in Q2:

Comm

Bus ServInvest

>200460%

70% 79.1% of Category 2 loans are current in interest payments

66.6% of NPLs are current in interest payments

1 Cu

Mining‐Oil &

Mfg‐oth

2004

40%

50%

payments

Primary sectors in Corporate are: Food & Beverage Mfg Plantationrrent

Plantations

Mining‐Oil & Gas

IDR

WC

30%

40% Oil‐Gas Transportation


Mfg‐F&B

WC

2000‐200

10%




67

<2000

04

0%

Collect. Cat. 2 Aging Sector Currency Purpose Origin Year

Q2 2010 Loan Detail: Commercial Loans

235

61+ oth<5% USD Consumer

100%

Loan Profile: Q2 Commercial Loans Only (Rp54,242bn) Bank OnlyRp54,242 billion in loans were in the

Commercial portfolio in Q2, or 27.8% of total

31‐60

Mfg F&B

Trad‐oth

Mass Trans

Co su e

80%

90%


loans. Of the Commercial Loans in Q2:

1 Day

<30

Mfg Chem

Constr

Mfg‐F&B

Invest

200460%



1

1 Day

Trad‐Distr

Mfg‐Chem

IDR

>2004

40%

50%

payments

Primary sectors in Commercial are: Business Services Plantations

Current Bus Serv

Plantations

WC30%

40% Distribution Chemical Manufacturing


Mfg‐oth 2000‐200410%




68

<20000%

Collect. Cat. 2 Aging Sector Currency Purpose Origin Year

Q2 2010 Loan Detail: Small Business Loans

2

35USD

Consumer

Program100%

Loan Profile: Q2 Small Business Loans Only (Rp19,677bn) Bank OnlyRp19,677 billion in loans were in the Small

Business portfolio in Q2, or 10.1% of total 2

31‐60

61+Oth<5%

Invest80%

90%


loans. Of the Small Business Loans in Q2:

31 60

Bus Serv

Mfg

>200460%



1

<30

Trad‐Distr

Plantations

IDR

40%

50%

payments

Primary sectors in Small Business are: Retail Trading Distribution

1 DayWC

30%

40% Plantations Business Services


Current

Trad‐Ret 2000‐200

10%




69

<2000

04

0%

Collect. Cat. 2 Aging Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only

Q2 2010 Loan Detail*: Rupiah Loans

235

Oth<5% S llConsumerOther100%

Loan Profile: Q2 Rupiah Loans Only (Rp128,637 bn) Bank OnlyRp128,637 billion in loans were Rupiah

denominated in Q2, or 65.9% of total loans.

31 60

61+

Comm

Constr

Oth<5% Small

I t

80%

90%


Of the Rupiah Loans in Q2:

1 D

<30

31‐60

Trad‐Ret

Trad‐Distr

Comm

Comm

Invest

>200460%



1

1 Day

Mfg‐oth

Mfg‐Chem>2004

40%

50%

payments

Primary sectors in Rupiah loans are: Plantations Food & Beverage Mfg

Current

Bus Serv

CorpWC

30%

40%g g

Business Serices Chemicals Manufacturing

47.1% are Corporate loans

Plantations

Mfg‐F&BCorp

2000‐2010%




70

Plantations

<2000

004

0%

Collect. Cat. 2 Aging Sector Segment Purpose Origin Year * Excluding Micro & Consumer Loans Only

Q2 2010 Loan Detail*: FX Loans

35 61+ Small

SyndOther100%

Loan Profile: Q2FX Loans Only (Rp33,955bn) Bank OnlyRp33,955 billion in loans were FX

denominated in Q2, or 17.4% of total loans.

21 Day<30

31‐60oth<5%

Comm

80%

90%


Of the FX Loans in Q2:

P&P

Chem

Mfg‐oth Invest

>200460%



Curr

Trading

Text

Corp40%

50%

payments

Primary sectors in FX loans are: Oil & Gas Food & Beverage Mfg

1

rent

F&B

Corp

WC

30%

40%g g

Trading Textile Manufacturing Pulp & Paper Mfg

82 6% are Corporate loans

Oil & Gas

WC

2000‐200

10%

20% 82.6% are Corporate loans



71

<2000

04

0%

Collect. Cat. 2 Aging Sector Segment Purpose Origin Year



Credit Card portfolio showed modest deterioration in Q2 ‘10

Mandiri Credit Card Delinquency Rates (%) Quarterly Charge‐offs, NPLs & Recoveries (Rp Bn)

123 1

NPLs (90+DPD)Write‐OffsRecoveries

16.8%

30 DPD ‐ Rp90 DPD ‐ Rp30 DPD ‐ Cards90 DPD ‐ Cards

82 9 83 8 90.7

109.1123.1

11.2% 82.975.6

83.878.7

72.2

63.6

76.4

90.779.4

7.1%

10.2%9.7%

8.1%7.7%

7.2%

8.3%8.2%

10.7%

9.5%

35.932.6

40.837.5 37.1

29.7 28.6

43.5

45.744.5

23.628.2

7.1%6.4%

3.4%

5.3%

6.3%5.6%

4.7%

3.8%4.2% 4.2%

4.8%5.0%4.5%5.0%

4.1%

3.3%

5.8%

33.1

2.0 4.7 6.9 8.813.9 14.5 17.6 16.9 24.4

23.62.7%

1.9% 2.0%

1.8% 1.8%1.8%2.1% 2.4% 2.2%1.7% 1.5%

1.1% 1.0%0.9% 1.0%0.9%

72

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q4 '05

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q4 '05

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Regs. on Asset Classification: PBI No 7/2/PBI/2005

Classificationby Aging ofClassificationby Aging of

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%by Aging of

Interest Payments#by Aging of

Interest Payments#

Business Outlook Fi i l C diti Payment Ability

Category 3 – Sub‐Standard 91 – 180 days 91 – 120 days 15%

Category 4 ‐ Doubtful 181 – 270 days 121 – 180 days 50%

Category 5 ‐ Loss 271+ days 181+ days 100%

DetailedClassification Guidance#

DetailedClassification Guidance#

Business Outlook Business growth potential Market condition & debtor

position in the market Management quality

Financial Condition Profitability Capital structure Cash flow Sensitivity to market risk

Payment Ability On time payment Availability of debtor’s financial information Completeness of credit documentation Compliance toward credit agreement

BI CollectibilityBI Collectibility

Guidance#Guidance# Group support Environmental factors

Nature of payment source Appropriateness of funds usage

In instances where there is disagreement in the determination of earning asset collectibility between the bank, its BI Collectibilitytakes precedence# BI Collectibility

takes precedence#

One Debtor OneOne Debtor One

g g y ,external auditors and BI, the bank must adopt BI’s determination

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 anyOne Debtor, One

Project Concept*One Debtor, One Project Concept*

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

Banks must require debtors to submit current financial statements

73

Completeness of Financial Report*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 Q1 2005 * Implemented in Q2 2005

Q2 2010 Summary of Principal SubsidiariesBank Syariah Mandiri Mandiri Sekuritas AXA Mandiri

• Equity Investment of Rp696.78 bn

• Total Assets of Rp1,716.6 bn, total liabilities of Rp988.3bn and Equity of Rp728.2bn

• Equity Investment of Rp168.13 bn

• Total Assets of Rp6,899.53 bn, Annual First Year Premium (AFYP) of Rp598.54 bn and total profit of Rp89.65 bn

• Equity Investment of Rp1,719.09 bn

•Total Assets of Rp26,385 bn, with total financing extended amounting to Rp19,871bn and total funding of

• Operating Income of Rp51.1bn, and PAT of Rp43.1 bn

• Corporate bond and equity underwriting

• Total Gross Written Premium (GWP) Rp772.97 bn, consisting of unit‐linked premiums of Rp671.65 bn (86.89%) and traditional product premiums of Rp101.32 bn (15 09%) Individual business accounted

Rp23,334 bn

•Operating Income (6‐Mo) amounting to Rp1,226.8bn and Profit After Tax of Rp197.6bn

amounting to Rp4.29 tn.

• Equity transactions in BEI of Rp31.54 tn

• Bond transactions (SUN) through BEI of

bn (15.09%). Individual business accounted for Rp672.66bn (87.02%) while Rp100.3bn (12.98%) came from business group.

• Embedded value of Rp2.58 tn (before expense overruns) and appraisal value of

p

•Market share of Syariah Banking as of Feb 2010) :

• 34.62% in assets• 34.93% in financing extended

Rp24.11 tn

• Total Assets Under Management amounting to Rp15.85 tn

expense overruns) and appraisal value of Rp14.22 tn.

• Operating since December 2003, AXA Mandiri has a presence in 920 Bank Mandiribranches with a team consisting of 1,342

3 93% a c g e e ded• 39.51% in deposits

•CAR = 12.43%

•ROA = 2.22%Financial Advisors (FAs)

•ROE = 24.42%

•408 outlets, consisting of 357 branches & cash offices and 51 KLS, as well as 221

74

branded ATMs

Bank Syariah MandiriBranch Network & Customer Growth Summary Balance Sheet (Rp Billions)

Rp Bn 2006 2007 2008 2009 Q2 ‘10

1,678

1,880Branches

Customers (000s)

p Q

Total Assets 9,612 12,888 17,064 22,037 26,385

Cash & placement w/ BI

1,377 1,583 2,436 3,788 3,885

1,256

Current Accounts & Placements w/Other Banks

326 299 332 486 747

Securities ‐ Net 497 778 1,261 964 959

1,018

8 , 6 96 959

Total Financing 7,401 10,305 13,278 16,063 19,871

Allowances (262) (331) (573) (807) (958)

Total Financing ‐ Net 7,138 9,974 12,705 15,257 18,913

313

390 408

533

759Total Financing Net 7,138 9,974 12,705 15,257 18,913

Third Party Funds 8,219 11,106 14,899 19,338 23,334

Demand Deposits 2,059 1,858 1,851 2,686 6,201

Savings Deposits 2,662 3,860 5,246 7,068 7,990

88134

164 178222

70 115206

357Sa gs epos s ,66 3,860 5,246 7,068 7,990

Time Deposits 3,498 5,388 7,802 9,584 9,142

Shareholders Equity 694 810 1,208 1,600 1,799

75

32 4870

2001 2002 2003 2004 2005 2006 2007 2008 2009 Q2 '10

Bank Syariah MandiriSummary P&L (Rp billions)

2005 2006 2007 2008 2009 6‐Mo ‘10

Total Operating Income 865.5 935.2 1,197.9 1,736.4 2,071.0 1,226.8

3rd Party Share on Returns 386.4 455.5 511.9 793.0 927.1 535.5

Bank's Share in OperatingBank s Share in Operating Income

479.1 479.7 686.0 943.3 1,144.0 691.3

Other Operating income 93.6 142.4 109.2 301.0 347.0 236.2

Operating Expenses 435 6 383 0 475 9 630 0 818 2 463 5Operating Expenses 435.6 383.0 475.9 630.0 818.2 463.5

Income from Operations 137.2 102.1 268.1 279.9 395.2 262.2

Net Income before tax 136.7 95.5 169.7 284.1 362.0 268.8

Net Income after tax 83.8 62.6 114.6 194.7 410.4 197.6

Selected Financial Ratios

LDR 75.6% 90.21% 92.79% 89.12% 83.07% 85.16%

CAR 11.9% 12.56% 12.44% 12.66% 12.39% 12.43%

ROA 1 8% 1 10% 1 54% 1 83% 2 23% 2 22%

76

ROA 1.8% 1.10% 1.54% 1.83% 2.23% 2.22%

ROE 14.6% 10.23% 15.94% 21.34% 21.40% 24.42%

Mandiri SekuritasSummary P&L

Rp Bn 2006 2007 2008 20096‐Mo ‘10

Rp Bn 2006 2007 2008 2009 Q2 ‘10

Summary Balance Sheet

Operating Revenue 221.6 423.7 426.7 409.2 209.4

Brokerage Commissions 20.2 80.8 64.0 79.8 56.2

Investment Mgmt Fees 16.0 28.9 70.1 102.9 68.0

Total Assets 2,367.4 2,757.2 2,391.7 1,485.0 1,716.6

Cash & Equivalent

80.1 57.4 248.7 316.0 575.1

Time deposit ‐ ‐ ‐ ‐ ‐

Advisory fees 3.4 21.0 9.3 27.4 5.7

Underwriting & Selling Fees

5.8 19.0 44.2 32.4 21.6

Time deposit

Marketable Securities

480.1 396.9 632.9 345.0 190.8

Receivables 1,267.0 1,036.0 710.1 467.3 601.3Gain on Trading of Marketable Securities

51.8 69.8 (960) 50.8 15.2

Interest & Dividends 124.2 202.8 238.5 115.6 42.8

Operating Expenses 122.4 198.1 255.5 273.8 158.3

Property & Equipment‐net

10.9 12.9 10.4 7.7 11.7

Total Liabilities 1,619.7 1,936.3 1,728.3 763.5 988.3

P bl tG & A expenses 18.3 29.3 33.3 34.0 17.9

Salaries and allowances 62.2 104.1 104.2 116.8 69.9

Commissions 15.8 28.6 68.8 68.9 51.2

Payable to Clearing & Guarantee body

546.2 240.6 59.7 86.7 131.2

Payable to customers

664.7 557.8 483.9 430.1 598.4

Profit from operations 99.2 224.6 171.2 135.4 51.1

Other income (charges) ‐net

(29.4) (63.8) (154.7) (72.6) 9.1

Income before tax 69 8 160 8 16 5 62 8 60 2

customers

Repo 269.4 407.5 226.3 ‐ ‐

Bank Loans 75.0 620.0 810.0 145.0 100.0

Shareholders

77

Income before tax 69.8 160.8 16.5 62.8 60.2

Net Income after tax 42.6 108.4 1.0 46.2 43.1

Shareholders Equity

747.6 820.8 663.3 721.4 728.2

Bank Sinar Harapan Bali

Our Strategy and Intent Business Plan, 2008‐2010

400

500

600Total Lending (Rp bn)

Our main focus will be to strengthen BSHB has been showing positive

107.3

125.9

133.6

176.0

257.0

470.5

550.0

0

100

200

300Our main focus will be to strengthen Bank Sinar’s capability and infrastructure by assisting the implementation of appropriate Risk Management Tools, an IT Platform, as

BSHB has been showing positive momentum despite recent macroeconomic trends.

By the end of Q2’10, BSHB grew total loans to Rp549.6 bn, with plans to

2004 2005 2006 2007 2008 2009 Q2'10

1 5%

2.0%Total NPL (%)

Management Tools, an IT Platform, as well as Human Capital Development

We intend to maintain Bank Sinar’spositioning as the premiere Micro & SME lending institution in

achieve Rp1,0 tn bn by the end of 2010.

From the risk perspective, BSHB has been able to preserve its low level of

’

1.25%

0.82%

1.25% 0.63%

0.75%

0.68%

0.83%

0.5%

1.0%

1.5% SME lending institution in Bali, through the introduction of new products aimed specifically toward this particular segment

B k M di i ill l tili B k

NPLs at 0.83% Q2’10. Going forward, BSHB is confident to be able to maintain gross NPLs below 1.0% through 2010.

At the end of Q2’10 BSHB profit

% % % % %

0.0%

2004 2005 2006 2007 2008 2009 Q2 '10

17.5%Net Interest Margins

Bank Mandiri will also utilize Bank Sinar as a vehicle to further develop and penetrate the Micro & SMEsegment in Indonesia, which is an integral part of Bank Mandiri’s

At the end of Q2 10, BSHB profit before tax reached Rp8.9 bn. For the year ended 2010, BSHB is targeting Rp14.8 bn in profit before tax, in line with projected asset growth. As a

16.0%

14.1%

13.5%

13.0%

10.9%

12.4%

10.7%5.0%7.5%10.0%12.5%15.0%

integral part of Bank Mandiri sstrategy to develop high‐margin segment

result of these positive trends, by 2010, BSHB should achieve Rp1,24 tnin total asset.

78

% % % % %0.0%2.5%

2004 2005 2006 2007 2008 2009 Q2 '10

Staffing and Distribution Network GrowthEmployees ATM Network

19,60618,01617,20417,73518,39719,69321,19221,06221,63122,40822,90923,44524,282

513533

1,1841,5592,0222,4702,5602,8003,1864,1204,9964,9975,224

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Q1 '10

Q2 '10

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Q1 '10

Q2 '10

Domestic Branch Network ATM‐Link Network

65 54 63 68 73 78 90 92 951,021,091,101,18

3,164,004,715,536,026,267,047,85

12,6614,1614,35

79

58 46 35 87 30 89 09 24 56 27 95 08 80

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Q1 '10

Q2 '10

60 00 16 37 25 65 41 51 66 65 59

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Q1 '10

Q2 '10

Loan growth, quality & provisioning relative to peersBank Only, As of March 2010

Total Loans(Rp bn)

Loan Growth (YTD)(%)

Loan to Deposit Ratio(%)

208

181

120

115 82 60 45 40 39 37

26.5%

23.7%

22.2%

13.4%

12.4%

12.4%

11.5%

8.8%

0.7% 114 93 88 86 85 80 75 67 61 49,962

,513

,644

,468

,002

,733

,137

,987

,281

,628

BRI

Mandiri

BCA

BNI

CIMB N

ia

Danam

o n

Panin

BTN

Permata

BII

‐1.4%

BRI

Panin

BTN

Mandiri

CIMB N

ia

BCA

Permata

BII

BNI

Danam

o n

4.0%

3.8%

8.0%

6.5%

5.9%

0.6%

5.7%

7.2%

1.9%

9.6%

BTN

Danam

on

CIMB N

ia

BRI

Permata

BII

Panin

BNI

Mandiri

BCA

Ratio of Provisions to NPL(%)

ga

n ga

n

NPL Ratio (Net)(%)

n ga

NPL Ratio (Gross)(%)

366%

230%

147%

125%

117%

92%

90%

85%

56%

50%

BCA

Mandiri

BRI

Panin

BNI

Permat a

Danam

o

BII

CIMB N

i a

BTN

0.3%

0.5%

0.6%

1.1%

1.2%

1.2%

1.9%

2.0%

2.2%

3.3%

BCA

Mandiri

Panin

BNI

Permat a

BRI

Danam

o

BII

CIMB N

i

BTN

0.8%

2.4%

2.8%

2.9%

3.1%

4.0%

4.1%

4.2%

4.2%

4.6%

BCA

Mandiri

BII

Panin

CIMB N

i

BTN

BRI

Danam

o

Permata

BNI

80

a on aga

a on aga

aga

on a

Average

Asset and liability mix relative to peersBank Only, As of March 2010

Loans to Total Earning Assets(%)

Total Assets(Rp bn)

Yield on Assets (p.a.)(%)

75 75 72 70 69 68 60 57 53 45

366,

303,

282,

218,

114,

95,

79,

62,

59,

56,

14 12 12 11 10 10 10 9 8 75.4%

5.2%

2.7%

0.3%

9.5%

8.5%

0.5%

7.2%

3.2%

5.2%

CIMB …

BTN

Danam

on

BRI

Permata

BII

Panin

BNI

Mandiri

BCA

,542

,843

,839

,276

,245

,197

,612

,031

,661

,162

Mandiri

BRI

BCA

BNI

CIMB N

ia g

Danam

on

Panin

Permata

BII

BTN

4.9%

2.7%

2.5%

1.1%

0.6%

0.5%

0.3%

9.3%

8.7%

7.2%

Danam

o n

BRI

Panin

BTN

CIMB N

iag

Permata

BII

BNI

Mandiri

BCA

ga

n

Cost of Funds (p.a.)(%)

Low Cost Deposit Ratio(%)

n ga

Total Deposits(Rp tn)

7 5 5 5 4 4 4 4 3 3

291

241

241

170 92 64 57 46 46 36 2.9%

3.9%

4.0%

4.1%

4.5%

4.7%

5.0%

5.8%

6.6%

8.5%

BCA

Mandiri

BNI

BRI

CIMB N

i a

BII

Permata

Danam

o

BTN

Panin

72.7%

57.1%

55.4%

53.8%

48.1%

43.8%

42.2%

42.1%

34.8%

32.3%

BCA

Mandiri

BRI

BNI

CIMB N

i a

Panin

Permata

BII

Danam

o

BTN

1,276

1,497

1,855

0,906

2,128

4,485

7,143

6,314

6,332

6,411

Mandiri

BRI

BCA

BNI

CIMB N

i a

Danam

o

Panin

BII

Permata

BTN81

aga

naga

naga

n

Average

Efficiency measures relative to peersBank Only, As of March 2010

Revenue/ Employee(Rp Mn)

Loans/ Employee(Rp Mn)

Cost/Assets(%)*

283

256

242

239

233

214

208

169

161 49

BCA

Panin

Mandir i

BTN

BNI

BRI

Permat a

CIMB …

BII

Danam

o

9,771

8,070

7,742

7,645

7,047

6,158

6,006

5,998

5,213

1,356

BTN

Panin

Mandiri

Permata

CIMB N

BNI

BRI

BCA

BII

Danam

o

3.3%

4.5%

4.5%

4.7%

4.8%

5.2%

5.4%

5.8%

6.2%

6.8%

Mandiri

CIMB …

Panin

BCA

Permat a

BTN

BNI

BRI

BII

Danam

oi a oni a iaga

on

Cost/ Income(%)

Deposits/ Employee(Rp Mn)

Pre Tax Income/Employee(Rp Mn)

i a on

53.0%

58.5%

59.2%

62.8%

65.4%

67.1%

69.9%

73.3%

74.1%

79.2%

Mandi

BCA

BRI

Panin

CIMB …

BNI

Perma

BTN

Dana m

BII

12,424

12,024

10,217

9,115

9,017

8,679

7,917

6,941

6,416

1,440

Mandi

BCA

Panin

BNI

Perma

BTN

CIMB …

BRI

BII

Dana m

181

171

160

109

102 95 90 56 36 21

BCA

Mandi

Panin

BNI

Perma

BRI

CIMB N

BII

Danam

BTN

82

ri

… ata

mon

ri

ata

… mon

iri

ata Niaga

mon

*Annualized

Average

Measures of scale and returns relative to peersBank Only, As of March 2010

BranchesEmployees ATMs

1,5

1,2

1,1

1,0 8 6 3 3 2 2

44,7

34,7

23,4

20,1

18,7

11,6

7,2

5,5

5,1

4,1

6,7

4,9

4,6

4,0

1,2 8 7 5 5 5565

290

108

076

887

624

398

355

274

260

BRI

Danam

on

Mandiri

BNI

BCA

CIMB N

iag a

Panin

BTN

Permata

BII

787

792

445

115

750

637

218

593

138

195

Danam

on

BRI

Mandiri

BCA

BNI

CIMB N

iaga

BII

Panin

Permata

BTN

710

997

640

033

271

814

791

571

538

528

BCA

Mandiri

BRI

BNI

CIMB N

iag a

Danam

on

BII

Permata

Panin

BTN

aa

Return on Equity (After Tax)(%)

Net Interest Margins(%)

Return on Assets (Before Tax)(%)

a

33 30 30 26 25 20 17 15 131 3.6%

0.9%

0.1%

6.3%

5.4%

0.5%

7.8%

5.7%

3.9%

3.5%BRI

BCA

Mandiri

Permata

BNI

CIMB N

iag

Panin

BII

BTN

Danam

on

10.0%

9.4%

6.8%

6.0%

5.8%

5.6%

5.6%

5.6%

5.5%

5.1%

Danam

o

BRI

CIMB N

i a

BII

BNI

Permata

Panin

BTN

BCA

Mandiri

3.7%

3.4%

2.9%

2.9%

2.8%

2.6%

2.6%

2.5%

1.9%

1.9%

BRI

BCA

Mandiri

Danam

o

Panin

CIMB N

i a

Permata

BNI

BTN

BII

83

gan aga

n aga

Average

Equity Research Contact DetailsBROKERAGE ANALYST TELEPHONE E‐MAIL

ABN AMRO Asia Securities Indonesia Trevor Kalcic 65‐6518‐7997 [email protected]

BAHANA SECURITIES Teguh Hartanto 6221‐250‐5081 [email protected]

BANK OF AMERICA MERRILL LYNCH Kar Weng Loo 65‐6591‐0419 [email protected]

BNP PARIBAS PEREGRINE Tjandra Lienandjaja 6221‐5798‐4661 [email protected]

CAZENOVE Tan See Ping 65‐6395‐7692 [email protected]

CIMB‐GK SECURITIES Indonesia Mulya Chandra 6221‐515‐1330 [email protected] y @

CITI INVESTMENT RESEARCH Salman Ali 6221‐5290‐8546 [email protected]

CLSA LIMITED Bret Ginesky 6221‐2554‐8827 [email protected]

CREDIT SUISSE Teddy Oetomo 6221‐2553‐7911 Teddy.oetomo@credit‐suisse.com

DANAREKSA SEKURITAS Bonny Budi Setiawan 6221‐350‐9777 [email protected]

DBS VICKERS SECURITIES Agus Pramono 6221‐3983‐2668 [email protected]

DEUTSCHE VERDHANA SECURITIES Raymond Kosasih 6221‐318‐9525 [email protected]

eTRADING SECURITIES A.G. Pahlevi 6221‐574‐1442 [email protected] g

GOLDMAN SACHS (Asia) Vincent Chang 852‐2978‐6681 [email protected]

J.P. MORGAN ASIA Aditya Srinath 6221‐5291‐8573 [email protected]

KIM ENG SECURITIES Rahmi Marina 6221‐2557‐1128 [email protected]

MACQUARIE CAPITAL SECURITIES I d i F W 6221 515 7335 f @ iMACQUARIE CAPITAL SECURITIES Indonesia Ferry Wong 6221‐515‐7335 [email protected]

MANDIRI SEKURITAS Ari Pitoyo 6221‐5296‐9542 [email protected]

MORGAN STANLEY Edward Goh 65‐6834‐8975 [email protected]

NOMURA Anand Pathmakanthan 65‐6433‐6986 [email protected]

85

UBS Joshua Tanja 6221‐570‐2378 [email protected]

The analysts listed above actively follow Bank Mandiri, but not all have issued research reports or formally initiated coverage.

Documents

PT Bank Mandiri(Persero) Tbk Q2 2010 Results Presentation · NPL Movement, Asset Quality & Provisioning 23‐26 Progress on ... FRANSISCA N. MOK THOMAS ARIFIN