B a n k M a n d i r i 2 0 0 3 A n n u a l R e p o r t 9
Dear Shareholders, In 2003, we achieved several important
milestones in Bank Mandiri’s on-going transformation and development. These
milestones included the following:
1. The privatization of Bank Mandiri through an Initial Public
Offering IPO A lengthy and intensive preparation
process culminated in the listing of Bank Mandiri shares code BMRI on the
Jakarta and Surabaya Stock Exchanges on 14 July 2003. The Bank Mandiri IPO was
more than seven times oversubscribed.
The sale of the Republic of Indonesia’s shares in Bank Mandiri was authorized
by government regulation No. 272003, which also stated that the privatization
should be effected either through the capital markets or by a strategic
divestment of up to 30 of the total shares of the Bank.
Through the IPO, the Republic of Indonesia offered 20 of its total
shareholdings, or four billion ordinary Series B shares, in Bank Mandiri with
a nominal price of Rp 500share and an offering price of Rp 675share.
The government plans to proceed with an additional 10 divestment in 2004,
as envisioned in the enabling regulation. The Annual General Meeting of
Shareholders AGM on 29 May 2003 also approved an Employee Stock Option
Plan ESOP through an Employee Stock Allocation ESA to all staff,
as well as an additional Management Stock Option Plan MSOP awarded to
senior management based on specific criteria. The ESA included both a bonus
share award and a discounted share purchase component.
2. Quasi-reorganization We completed a quasi-reorganization
based upon our audited financial report as at 30 April 2003 following the approval
of our Extraordinary General Meeting of Shareholders EGM held on 30 October
2003. This accounting procedure resulted in two primary benefits:
• Improving the equity structure of the
Bank by offsetting the accumulated losses of Rp161.9 trillion against the share
premium reserves without the necessity of undertaking a legal restructuring.
• Enabling the bank to distribute
dividends from retained earnings in accordance with recent regulations.
3. MTN issuance in the amount of USD300 million
In April 2003, Bank Mandiri issued USD300 million in medium-term
notes MTN which were listed on the
M e s s a g e f ro m t h e Pre s i d e nt C E O
• listed on the JSX and SSX on 14 July 2003 • Implemented a quasi-reorganization
• Issued uSD300 million Mtn • Rolled out the enterprise Mandiri Advanced System eMAS
core banking platform • Acquired the Mandiri VISA card operations
• established a joint venture to market bancassurance products and services
10
2003 net proit
increased by
27.9
M e s s a g e f ro m t h e Pre s i d e nt C E O
B a n k M a n d i r i 2 0 0 3 A n n u a l R e p o r t 11
Singapore Stock Exchange. This exercise was the first tranche of a USD1 billion
MTN program.
4. Implementation of Enterprise Mandiri Advanced System eMAS
