SHARE CAPITALcontinued a. Authorised, Issued and Fully Paid-in Capital continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 167

40. SHARE CAPITALcontinued b. Additional Paid-In CapitalShare Premium continued

Based on the results of a due diligence review conducted on behalf of the Government dated December 31, 1999 and Management Contract IMPA dated April 8, 2000, it was decided that there was an excess on recapitalisation amounted to Rp4,069,000. The Bank has refunded Rp2,657,000 of Government Recapitalisation Bonds to the Government on July 7, 2000 pursuant to the Management Contract. The remaining balance of Rp1,412,000 was refunded to the Government on April 25, 2003 based on approval from the shareholders during its meeting on October 29, 2002 and the Ministry of State-Owned Enterprises Decision Letter No. KEP-154M- MBU2002 dated October 29, 2002. The refund for above excess of recapitalisation amounted to Rp1,412,000 includes a portion of issued and fully paid capital of Rp251,000. On May 23, 2003, the Minister of Finance of the Republic of Indonesia issued Decree “KMK-RI” No. 227KMK.022003 dated May 23, 2003, which was amended by KMK-RI No. 420KMK.022003 dated September 30, 2003, which provides further guidance on Government Regulations No. 52 year 1999 and No. 97 year 1999 regarding the additional Government participation in Bank Mandiri’s capital. The following are the matters decided under the KMK-RI: a. The final Bank Mandiri recapitalisation amount is Rp173,801,315; b. The recapitalisation fund of Rp5,000,000 is converted into 5,000,000 new shares issued by Bank Mandiri with a nominal value of Rp1,000,000 full amount per share; c. The remaining recapitalisation fund amount of Rp168,801,315 is recorded as share premium within the capital structure of Bank Mandiri. Through quasi-reorganisation, the Bank’s accumulated losses as of April 30, 2003 amounted to Rp162,874,901 were eliminated against additional paid-in capitalshare premium.

c. Distribution of Net Income

Based on the Annual General Share holders’ Meeting held on March 16, 2015 and February 27, 2014, the shareholders approved the distribution of the 2014 and 2013 net income as follows: 2014 2013 Dividends 4,967,968 5,461,126 Retained Earnings Appropriated 2,622,936 2,348,284 Unappropriated 12,280,969 10,394,343 19,871,873 18,203,753 Dividend per share full amount 212.91292 234.04825 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 168

40. SHARE CAPITALcontinued c. Distribution of Net Income continued

Dividends from 2014 net income amounted to Rp4,967,968 were paid on April 17, 2015 and dividends from 2013 net income amounted to Rp5,461,126 were paid on April 15, 2014. Payment of dividends were recorded in the consolidated statement of changes in equity on the respective payment date. The appropriated retained earnings for the year 2014 amounting Rp2,622,936 and the year 2013 amounting Rp2,348,284 is allocated to business expansion and supporting infrastructure construction such as construction of Mandiri University, procurement of office building, procurement of ATM, non-IT capital expenditure and technology system development. 41. INTEREST INCOME AND SHARIA INCOME Interest income and sharia income are as follow: For the year ended December 31, 2015 2014 Interest income Loans 55,191,771 48,237,589 Government bonds 5,273,855 4,634,503 Marketable securities 1,626,369 1,652,818 Consumer financing income 1,523,637 1,118,631 Placements with Bank Indonesia and other banks 1,337,831 1,104,672 Others 1,413,196 815,051 66,366,659 57,563,264 Sharia income Murabahah and Istishna income - net 3,832,690 3,878,231 Musyarakah income 887,760 750,937 Mudharabah income 364,450 420,136 Ijarah income - net 118,568 25,374 5,203,468 5,074,678 71,570,127 62,637,942 Included in interest income from loans is interest income recognised on the non-impaired portion of the impaired loans time value unwinding for the year ended December 31, 2015 and 2014 amounting to Rp560,920 and Rp470,717 and fees and commissions income directly attributable to lending activities amortised using effective interest rate method for the year ended December 31, 2015 and 2014 amounting to Rp1,586,373 and Rp1,705,602. Included in the interest income is interest income from financial assets at fair value through profit or loss amounting to Rp334,442 and Rp284,145, respectively for the years ended on December 31, 2015 and 2014. As of December 31, 2015 and 2014 included in interest income and sharia income is income from transaction with related parties on government bonds and treasury bill amounting to Rp5,364,814 and Rp4,681,935 respectively refer to Note 55.