Membership of the Board of Commissioners and Committees under the supervision of the Board of

Annual Report 2013 PT Bank Mandiri Persero Tbk. 5 Organization Development 6 Capacity Fulillment 7 Learning Development 8 Employee Relations c P Alignment of HCMS through various Human Capital initiatives, namely: 1 Flexi Time Roll Out 2 Flexible Beneit Roll Out 3 Talent and succession readiness 4 Internalization Employee Value Proposition New Horizon TIPCE d Strengthening Mandiri University 1 Development of Mandiri University infrastructure 2 Development eKMS 3 Development of a Competency Based Learning Curriculum Bank Mandiri is committed to fulilling and continually enhancing its human resources development plan so as to create world-class human capital. In this way, Bank Mandiri employees will not only be marked by their probity and integrity, but also their resilience, competencies and capabilities, and their ability to compete not only at the domestic level but also at the regional and international levels. To bring this goal to fruition, besides improving competencies Bank Mandiri will also apply the following initiative a Enhancing fulillment capability so as to secure the best talent in the market. b Improving the Human Capital Management System HCMS in line with the Corporate Plan 2010- 2014. c The alignment of the HCMS with strategic human capital initiatives. d Strengthening and supporting the role of Mandiri University

3. Membership of the Board of Commissioners and Committees under the supervision of the Board of

Commissioners There were a number of changes in the membership of the Board of Commissioners in 2013, namely, the withdrawal of Mr. Muchayat and Mr. Cahyana Ahmadjayadi as Commissioners by the Government of Indonesia by virtue of Ministry of State Enterprises Letter No. SR-182MBU2013, dated March 22, 2013. This was then Conirmed by the Annual General Meeting of Shareholders in 2013 by a resolution that was set out in Deed No.. 19 dated August 28, 2013 which granted both Commissioners honorable discharges, and appointed Mr. Agus Suprijanto, Mr. Rudi Rubiandini, and Mr. Abdul Aziz as members of the Board of Commissioners. Mr. Agus Suprijanto and Mr. Abdul Aziz, by virtue respectively of Bank Indonesia Letters No. 1579GBIDPIP Rahasia, dated October 24, 2013, and No. 1580GBIDPIPRahasia, dated October 24, 2013, concerning Fit and Proper Test Results for Appointment to the Board of Commissioners of PT Bank Mandiri Persero Tbk., were declared to have passed the it and proper tests conducted by Bank Indonesia, thereby efectively permitting them to conduct oversight functions and to advice the Board of Directors. However, Bank Indonesia through its Letter No. 1559DPIPRahasia dated August 16, 2013 declared that the request for the nomination of Mr. Rudi Rubiandini as a Commissioner of the Company could not be acted upon as he did not meet the administrative requirements. Consequently, the Ministry of SOEs through its Letter No. SR-520MBU2013 dated August 18, 2013, stated that the person concerned had been withdrawn from his duties as a member of the Board of Commissioners of Bank Mandiri. Board of Commissioners’ Supervisory Report Annual Report 2013 PT Bank Mandiri Persero Tbk. In the performance of its duties, the Board of Commissioners is assisted by a number of committees, namely: a. Audit Committee; b. Risk Monitoring and Good Corporate Governance Committee, and c. Remuneration and Nominations Committee. All of the committee properly carried out their duties and obligations in accordance with their respective charters, and provided recommendations and reports to the Board of Commissioners on those matters that needed to be attended to by the Board of Commissioners as part of the performance of its duties and functions. The memberships and descriptions of the Board of Commissioners and its subordinate committees are set out in the Chapter on the Board of Commissioners in the Corporate Governance Report section of this Annual Report. The year 2013 marked an important milestone in the history of the transformation of Bank Mandiri and will serve as a barometer of success in the coming years. The achievements made in 2013 will most assuredly serve as the foundation for the next stage of Bank Mandiri’s transformation of the bank. In other words, our ability to deine the future direction of transformation program will depend greatly on our achievements in 2013. Bank Mandiri put in an encouraging inancial performance, as relected in business volumes and after-tax proit. Similarly, the Bank’s inancial ratios and operational eiciency levels also improved Jakarta, February 12, 2014 Edwin Gerungan Chief Commissioner and Independent Commissioner Board of Commissioners’ Supervisory Report Annual Report 2013 PT Bank Mandiri Persero Tbk. 1 Edwin Gerungan Chief Commissioner and Independent Commissioner 2 Gunarni Soeworo Independent Commissioner 3 Pradjoto Independent Commissioner 4 Krisna Wijaya Independent Commissioner 5 Wahyu Hidayat Commissioner 1 2 5 3 4 6 7 6 Agus Suprijanto Commissioner 7 Abdul Aziz Commissioner Annual Report 2013 PT Bank Mandiri Persero Tbk. Report of the Board of Directors Budi G. Sadikin Chief Executive Oicer Annual Report 2013 PT Bank Mandiri Persero Tbk. “The story of Indonesia’s success in becoming a major and respected player in the global economic order of the future will be one illed with pride, and we are determined that Bank Mandiri will play a key role in that story.” The year 2013 marked the fourth year of Phase II of our transformation process of Phase II, and has earned itself a special place in the history of Mandiri Group. In the midst of the economic slowdown and pressure on our business development, particularly in the retail segment, Mandiri Group was still able to achieve a very good inancial performance. We successfully completed our strategic initiatives in the three 3 focus areas of Phase II, namely Wholesale Transactions, Retail Deposits Payments, and Retail Financing, which are the keys to the success of our sustainable business development. These three 3 areas are very important because as they will serve as the foundations for the Mandiri Group as we enter 2014, the last year of Phase of the transformation process. ECONOMIC CONDITIONS AND FINANCIAL PERFORMANCE IN 2013 Amid unfavorable business conditions, Mandiri Group realized a net proit of Rp18, 2 trillion, up 17.4 on 2012, when the equivalent igure was Rp15.5 Trillion. Mandiri Group’s proitability ratio, as relected in return on equity ROE was also maintained at around 22. This relects a strong balance sheet and disciplined risk management. Business volumes were also boosted, including lending growth of Rp83.6 trillion or 21.5 YoY, exceeding our target of 20. In fact, Mandiri Group’s assets penetrated the psychologically important level of Rp 700 Trillion to hit Rp733.1 Trillion at the end of 2013. Out total loan book grew 21.5 YoY to Rp472.4 Trillion, with retail inancing accounting gfor Rp130.2 Trillion of this, or 31.2. This relatively high level of growth was underpinned by good risk management and asset quality, with a Gross NPL ratio of 1.90, much better than our 2013 target of 2.25. As regards customer deposits, besides maintaining our position as the bank with the biggest customer deposit base Rp556.3 Trillion, Mandiri Group also managed to attract Rp359.9 Trillion in low-cost funds, accounting for 64.7 of total customer funds and exceeding our 2013 target of Rp350 trillion. This once again conirms the superiority of Bank Mandiri, not only in terms of growth, but also in terms of quality of service, branch network, reliability of electronic channels, and the development of downstream business based on value chains, anchor clients, operating accounts and payroll accounts. In addition, fee-based income also increased from Rp12.2 trillion to Rp14.5 trillion as a result of growth in fee income, both from payment services, import export services trade services and foreign exchange forex Dear Shareholders, Report of the Board of Directors Funding Rp 556,3T Annual Report 2013 PT Bank Mandiri Persero Tbk. transactions. The Bank’s Net Interest Margin NIM stood at 5.57, up 11 bps compared with 2012 and better than the 2013 target. Eiciency was managed well, as relected by an improvement in Bank Mandiri’s eiciency ratio of 254 bps to a level of 42.9 much better than the 2013 target of 45. The distribution network also expanded in excess of the 2013 target, with the number of branch oices increasing by 240 to 2,050. 2013 Financial Performance Exceeds Targets YoY Lending Growth Net Interest Margin Gross NPLs Eiciency Ratio Total Low Cost Funds Number of Branches Rp Trillion Target Target Target Target Target Target Realization Realization Realization Realization Realization Realization 20 5,50 2,25 45,0 350 60 21,5 5,57 1,90 42,9 359,9 240 Fundamentally, the Bank continued to show demonstrate sustainable growth by maintaining consistency on its three business focus areas, namely, corporate transactions, retail deposits and payments, and retail inancing. Our growth was achieved while at the same time having regard to improved asset quality and prudential principles, while honing business-based transactions so as to strengthen liquidity. Our focus on growth in the corporate transaction segment resulted in fee income for 2013 coming in at Rp 4.6 trillion, up 39.4 YoY growth and accounting for 31.7 of total fee income. Meanwhile, fee income from the retail transaction business also increased by 19.3 YoY to Rp 6.8 trillion or 46.9 of total fee income. The growth in the corporate transaction business also boosted low-cost funds to Rp79.6 trillion, in line with an increase in cash management transactions to a total of 24.5 million transactions, up 86.9 YoY. A number of banking products aimed at corporate customers, such as trade inance, bank guarantee, cash management and foreign exchange products, are now the Bank’s principal generators of Low Cost Funds. Report of the Board of Directors Kantor Cabang Annual Report 2013 PT Bank Mandiri Persero Tbk. The growth in the retail deposits and payments business also boosted retail Low Cost Funds to Rp250.8 trillion, an increase of 28.1 YoY. In addition, the number of electronic transactions rose to 1,363 million, an increase of 7.6 YoY. The retail inancing business continued to experience very positive growth, so that by the end of 2013 total retail inancing consumer, business banking and micro stood at Rp130.2 trillion or 31.2 of Bank Mandiri’s total loan book bank only and yielded 35.9 of total loan interest income. Thus, it may be said that there has been a shift in income sources from the corporate segment to the retail segment. In the midst of unfavorable conditions in the domestic economy and capital markets, Bank Mandiri shareholder value, Report of the Board of Directors ”The Most Trusted Indonesian Company in Good Corporate Governance” - The Indonesian Institute for Corporate Governance as relected in the Bank’s market capitalization, reached Rp183.1 trillion by the end of 2013, and at one stage even touched its highest level ever of Rp250.8 trillion in April 2013, something that places Mandiri Group 6th among the top banks in the ASEAN Region. Another achievement of note was that Bank Mandiri has been able to maintain for six 6 consecutive years its status as a bank with “the best service quality.” The achievement, which is certainly not an easy one, makes Bank Mandiri a service legend in the Indonesian banking industry. In addition, for seven 7 consecutive years Bank Mandiri has also able to maintain its status as “The Most Trusted Indonesian Company in Good Corporate Governance”, as assessed by The Indonesian Institute for Corporate Governance. This shows that Bank Mandiri is managed in accordance with best practices at both the national and international levels. The inancial performance of the 7 seven Mandiri Group subsidiaries was also encouraging, with the subsidiaries total net proit amounting to Rp2.04 trillion or 11.2 of total Mandiri Group net proit. To further strengthen our presence in the insurance sector, in Quarter IV2013 we agreed to purchase 80 of PT Asuransi Jiwa InHealth Indonesia InHealth. The deal will be carried out in stages. The successful development of Bank Mandiri’s subsidiaries is the result of our focus on the growth of non-organic business. This focus will continue to be pursued in the coming years in a consistent manner as appropriate opportunities arise, and is designed to help us realize our vision of being “The Most Admired and Progressive Financial Institution in Indonesia,” that is, a leading inancial institution in segments of the inancial services industry, including insurance, securities, consumer inance, and Islamic banking. CHALLENGES IN 2013: SUSTAINABLE GROWTH, SOCIETY AND COMMUNITY DEVELOPMENT The year 2013 was a challenging one for the global economy as growth slowed on the back of the sluggish recovery in America and Europe, and decelerating growth in China. The economic policies adopted by the United States, such as tapering, have resulted in quite signiicant pressures on emerging countries, including Indonesia. This is relected in a slowing of the domestic economy, the weakening exchange rate, a widening government budget deicit, and tighter liquidity in the economy. A number of economic indicators have come under pressure, including a decline in economic growth from 6.2 YoY in 2012 to 5.8 YoY in 2013, something that was also inluenced by the stabilization policies adopted by the Annual Report 2013 PT Bank Mandiri Persero Tbk. Government and Bank Indonesia. Inlation rose sharply to 8.38 on the back of an increase in subsidized fuel prices, minimum wage increases, and a hike in electricity prices. The Rupiah came under considerable pressure in 2013, depreciating sharply by 24.7 to Rp12.213USD at one stage. Inlationary pressures and the weakening Rupiah forced BI to raise its policy rate by 175 bps to 7.5. The banks then passed this on in the form of interest rate increases of up to 150 bps, with deposit rates rising on average by 7.25 and lending rates to 12. Bank Indonesia foreign exchange reserves also came under pressure, slumping from USD112.3 billion at the end of 2012 to USD99.4 billion. However, the external pressures were not suicient to prevent Mandiri Group from continuing to provide a maximum contribution to society and the community, or from coming up with a range of new innovations to help improve national prosperity. Mandiri Group’s experience of maintaining growth in the face of economic turbulence in 2005 and 2008 served it well in 2013, enabling it to continue being the pride of the nation. On the domestic front, Mandiri Group maintained its position in 2013 as the largest inancial institution in Indonesia with total assets of Rp733.1 Trillion and more than 14 million depositor accounts. Mandiri Group has transformed itself into a highly trustworthy and reliable inancial institution, as shown by achievements such Assets Rp 733,1T as annual growth in Low Cost Funds of 13.9, Low Cost Funds contribution of 64.7, loan growth of 21.5, retail inancing contribution of more than 31.2, and net income of Rp18.2 trillion, or an increase of 17.4 annually. From the market share aspect, Bank Mandiri has the largest market share by assets and for deposits in the national banking sector, with the igures being 15.2 and 15.6, respectively. As the largest inancial institution in Indonesia, Mandiri Group not only generates proit but also acts consistently to ensure the progress of the country and empowerment of communities. We extended inancing to the infrastructure sector, either directly or as part of a syndicate, amounting to Rp59.5 trillion bank only, including inancing for the transport, tolled expressway, power generation, telecommunications, and oil and gas sectors, as well as the MP3EI program. During 2013, the number of Bank Mandiri customers involved in the export trade increased 15.25 to 2,109 customers, while total inancing extended to exporters amounted to Rp 25 trillion based on a transaction volume of 51.3 thousand. We also extended Rp44.3 trillion to the palm oil industry for the development of new plantations extending to more than 930 thousand hectares, or 10 of the total area planted with oil palms in Indonesia. In order to support the eforts to expand home ownership, we extended mortgage loans for the purchase of more than 174 thousand homes. We also provided auto inancing for the purchase of more than 200 thousand vehicles. In addition, to help empower the social economy, by the end of 2013 we had disbursed Rp64.6 trillion in loans to more than 649 thousand MSME customers. We also channeled loans to more than 295 thousand customers under the People’s Business Credit KUR scheme based on a limited of Rp14.5 trillion. The operation of this scheme is is supported by 1,778 micro units and oices throughout the archipelago and a business banking network made up of 320 outlets. Report of the Board of Directors Annual Report 2013 PT Bank Mandiri Persero Tbk. As regards corporate social responsibility, Partnership Program funds as part of the Partnership and Environmental Development Program PKBL were provided to more than 1,801 people. Furthermore, our Environmental Development Program provides community development assistance for victims of natural disasters, the construction of places of worship, environmental conservation, sanitation and clean water improvements, and the education sector as an expression of Bank Mandiri’s concern for the community. The achievements made in 2013 are not the culmination. We need to ensure the long term sustainability of Bank Mandiri so that it can be bequeathed from generation to generation. To that end, we have set aside USD 82.6 million in funds for the development of our IT system and USD 785 billion for other developments. We are also working to lay strong organizational foundations for the training of knowledge workers through the development of our Enterprise Learning Management System and Enterprise Knowledge Management System. We have also inculcated the paradigm of sustainable value creation through the promotion of a culture of innovation across the organization so as to optimize the potential of every Bank Mandiri employee. The organization’s cultural values have also been reairmed, with the emphasis on decisiveness, intrapreneurship, courage in decision making based on measurable risks, patriotism, winning mentality, alacrity, and customer satisfaction. STRATEGIC POLICY: SUSTAINED GROWTH IN 3 THREE BUSINESS FOCUSES The various achievements of Mandiri Group are inseparable from the commitment and discipline of the Bank in executing and completing the implementation of its strategic initiatives in its three business focus areas, namely, Corporate Transactions, Retail Deposits and Payments, and Retail Financing, both intra Mandiri Group and external synergies. These strategic initiatives are as described below:

1. Corporate transactions