Internal Audit Consolidation with Subsidiary

PT Bank Mandiri Persero Tbk. To ensure the achievement of strategic initiatives implementation in 2012, CMO intensively continues to facilitate coordination and problem solving between Project Owner and related work units through ‘one-one-one meetings’ so as to establish good monitoring. In this way problem solving may be settled comprehensively, timely executed, in an efective and eicient manner. The growth level of problem solving on iT and non iT strategic initiatives increased by 43 compared to the settlements in the last ive years. in addition, Post implementation Review PiR is implemented to ensure focused and oriented project objectivity as well as its implications toward the Bank’s revenue and business development. PiR evaluation reported settlements in 2012 increased to almost two times compared with 2011. Bank Mandiri succeeded in expanding its ATM network in 2012 to 2,060 ATMs, to make a total of 10,985 active ATM units. The achievement is attributable to efectiveness in improvement of ATM command center functions to accelerate implementation processes. Bank Mandiri also expanded eDcs network in 2012, to 94,568 units. This is due to efectiveness of eDc command center function that is able to enhance eDc installment capacity from 250 units per day previously to 750 units per day. To ensure the implementation of the initiatives of corporate Plan 2010-2014 are on target and meet their expected results; cMo continues its coordination with all related work units. cMo is ready for consultation and be a mediator for any solution required should problems arise during implementation. cMo also functions to analyze project achievement, provide recommendations on projects that tend out of course, and conduct issues escalations that require directions and decisions from the Management. The following are the achievements of the corporate Plan initiative implementation in 2012: 1 implementation of selected 5 Main initiatives 5u and 5 Additional initiatives 5T, covering Micro Development and culture one Bank; 2 strengthening Bank Mandiri retail through sharpening the function of three pillars: Business unit, Risk Management, and credit operations in loan process, 3 synergy optimization between Bank Mandiri and subsidiaries; Bank syariah Mandiri, Mandiri Tunas Finance, and Mandiri AxA general insurance. entering 2013, cMo continues to review, facilitate and serve as the catalyst on organization alignment as well as business process reinement to ensure related units’ efectiveness. cMo will also boost the Bank’s six Key Priorities in achievement through business process positioning on the retail segment and solidifying the synergy with subsidiaries. cMo will further coordinate strategic initiative implementation to provide overall optimum added value to the company. 2. To leAD neW Business DeveloPMenT Besides the organic method of sharpening the business strategy and improving strategic initiative efectiveness to support Bank Mandiri’s business growth, cMo is also responsible forh non-organic processes. in this role, cMo carries out acquisitions, promotes joint ventures as well as strategic cooperation with other institutions. The non-organic business development process initiated by CMO begins by identifying acquisitions of potential companies, as well as cooperation with strategic partners that may accelerate the Bank’s business growth. CMO further leads the non-organic initiative implementation process and takes an active role in delivering Bank Mandiri shareholders value, with the acquired companies or through its strategic partners. The process was completed through business strategy development targeting future goals. CMO also actively provided responsive and innovative inputs to ensure business plan applications. CMO also functioned by mentoring post-acquisition subsidiaries, speciically during early operations, including coordination with work units with regard to the risk management and consolidation process. The post-acquisition process of PT Asuransi Dharma Bangsa to its new name PT Mandiri AxA general insurance MAgi was completed at the end of 2011. cMo is also actively leading the positioning process to ensure business synergies in general insurance development with the optimization between MAgi and Bank Mandiri business groups. cMo continues the appraisal process of non-organic growth initiatives on joint ventures, acquisitions or other type of partnerships. This process is sustained by the development of a business strategy to enhance Bank Mandiri’s shareholder value, as well as value for its strategic partners. cMo also initiates and identiies the potential companies targeted and believed to be able to contribute to the acceleration of Bank Mandiri’s business growth. This is to be in line with Bank indonesia’s stipulation on the single presence policy and multiple licenses established through Bank indonesia Regulation no. 1224 PBi2012 dated 26 December 2012 concerning single ownership of indonesia Banking, and Regulation no. 1226PBi2012 dated 26 December 2012 regarding Business Activity and oice network Based on Banks core capital. Moving forward, cMo, as stated by the Management’s direction in six Key Priorities, in the year 2013, will continue to review every opportunity to grow inorganically, especially in areas that could improve the Bank’s business growth and market share, as well as provide business synergies to all within Bank Mandiri’s Business group. 3. To suPPoRT THe BoARD oF DiRecToRs on oTHeR sTRATegic PRoJecTs As the Bank’s think tank, cMo supports the Management to maximize the company’s value creation. cMo provides out of the box thinking, innovative and quick response towards business development and regulations. in this respect, cMo was involved as strategic support to the Board of Directors and stakeholders during 2012. This process provided a positive impact on the Bank’s performance and reputation. cMo was also involved in developing cooperation with institutions, including Asuransi ekspor indonesia Asei, in the move to boost the Bank’s business. suPPoRTing uniTs RevieW CHANGE MANAGEMENT OFFICE