PT Bank Mandiri (Persero) Tbk

Date: 23/01/2011

Symbol: BMRI

Exchange: Jakarta

Sector: Banking

Recommendation:

Target Price: 9000RP

Current Price: 5600RP

Summary

PT Bank Mandiri , Indonesia's largest bank by assets, estimates 2011 loan growth at about 23 percent

Expansion into Singapore will add to revenue

PT Bank Mandiri said that it is

considering acquiring an insurer and another bank in 2011 to expand its reach at home and throughout the region

First nine months 2010 EBITDA increased by 56% to US$424 million

Fundamental Data in RP

Market Cap: RP117.6T

Shares Outstanding: 21.0B

Yield (%): 2.14%

PE 13.2

Bank Mandiri is the largest bank in Indonesia in terms of total assets, loans and deposits. As per 31st December 2009, it has IDR 394.6 trillion (US$42 billion) in total assets. The Bank offers a broad range of banking products and services to its customers ranging from individuals and small and medium-sized enterprises (SMEs) to large corporations and Government entities.

Bank Mandiri was established and acquired ownership of the share capital of four state-owned banks on October 2, 1998. The four state-owned banks legally merged on July 31, 1999 and Bank Mandiri commenced commercial operations in August 1999. The Bank serves more than 8.7 million customers, which makes it, based on number of customers, one of the largest retail banks in Indonesia.

Customers also have access to their accounts through the Bank's network of ATMs in Indonesia through arrangements with Indonesia's other state-owned banks via the LINK network. Bank Mandiri has one of the largest foreign exchange networks in Indonesia with four overseas branch offices, one subsidiary, one representative office and two remittance offices.

Bank Mandiri, Singapore Branch is one of the Bank's four overseas branches. Besides Singapore, the Bank also has branches in Cayman Islands, Dili (Timor Leste), Hong Kong, a subsidiary in London, a representative office in Shanghai and two remittance office in Hong Kong and Malaysia. The Singapore branch operates under an offshore banking licence granted by the Monetary Authority of Singapore on 31 July 1999.

 Highlights

 Year 2008  Year 2009

 Total Assets  IDR 338.4 trillion or eq USD 31.05 billion

 IDR 394.6 trillion or eq USD 42 billion

 No of employees  22,408  22,909 Number of Branches & cash outlets  1,027  1,095

 Branch’s network of ATM  4,120  4,996 Total number of ATM  7,851  12,666 Total number of Micro Banking Centers  600  800

Valuation Ratios Company Industry Sector S&P 500P/E Ratio (TTM) 13.17 17.06 29.69 18.53P/E High - Last 5 Yrs. 55.25 28.34 148.22 48.34P/E Low - Last 5 Yrs. 7.98 9.85 113.66 12.68

Beta 1.34 1.26 1.20 1.31

Price to Sales (TTM) 4.31 3.40 6.13 2.19Price to Book (MRQ) 3.01 1.01 1.29 2.85Price to Tangible Book (MRQ) 3.01 1.26 1.52 6.96Price to Cash Flow (TTM) 12.42 4.90 12.60 8.44Price to Free Cash Flow (TTM) 3.52 0.82 6.19 49.56

% Owned Institutions -- -- -- --

Dividends Company Industry Sector S&P 500Dividend Yield 2.14 1.73 1.72 1.57Dividend Yield - 5 Year Avg. 3.05 1.84 1.61 2.25Dividend 5 Year Growth Rate -2.85 8.32 7.94 -5.39

Payout Ratio(TTM) 28.07 19.72 30.33 37.29

Growth Rates Company Industry Sector S&P 500Sales (MRQ) vs Qtr. 1 Yr. Ago 21.41 4.90 15.69 11.32Sales (TTM) vs TTM 1 Yr. Ago 3.62 2.36 16.53 10.50Sales - 5 Yr. Growth Rate 11.15 15.61 19.21 7.73

EPS (MRQ) vs Qtr. 1 Yr. Ago 39.18 545.77 325.43 59.36EPS (TTM) vs TTM 1 Yr. Ago 48.64 -- -- --EPS - 5 Yr. Growth Rate 5.61 5.18 10.08 4.55

Capital Spending - 5 Yr. Growth Rate -1.67 10.82 11.08 4.85

Contact Detail:

Issaree Suwunnavid

CEO

Heffernan Capital Management

Chutinush Taksinapinunt

Business Development Director

Heffernan Capital Management

Email: chutinush@heffernan-inc.com

Chutinush Taksinapinunt holds a Bachelor of Business Administrators degree Majoring in Finance and Banking. Chutinush Taksinapinunt is an experienced market maker and Portfolio Manager, having worked with some of Thailand’s largest Securities Company and Financial Institutions.

Price Estimate by Shayne Heffernan PhD

Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com

BangkokSuite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILANDTel: +66 2 126 8000 Fax: +66 2 126 8080New York347 5th Avenue, Suite 1402-508 Ny, NY 10016

Tel: +1 646-403-9881 Fax: +1 646-403-8014 Singapore

3 Raffles Place #07-01 Bharat Building Singapore 048617 Tel: +65 6329 6408Fax: +65 6329 9699

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