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PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 19

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b. Principles of Consolidation continued 4 Statements of cash flows - using the middle rates as published by Bank Indonesia at the balance sheet date, except for profit and loss statement balances which are translated using the average middle rates and shareholders’ equity balances which are translated using historical rates. The resulting net translation adjustment is presented as “Differences Arising from Translation of Foreign Currency Financial Statements” under the Shareholders’ Equity section of the consolidated balance sheets. As of December 31, 2004 and 2003, the financial statements of PT AXA Mandiri Financial Services were not consolidated as the Bank’s ownership as of December 31, 2004 and 2003 was below 50 and the Bank does not exercise control over the entity at those dates. If the change in ownership interests in PT AXA Mandiri Financial Services was applied as of April 30, 2003, the consolidated assets and liabilities and the consolidated net profit and shareholders’ equity would be as follows: April 30, 2003 Without As Reported PT AXA Mandiri Audited Financial Services Consolidated assets 261,285,909 261,267,164 Consolidated liabilities 243,998,291 243,982,783 As of and for the Four-month Period Ended April 30, 2003 Without As Reported PT AXA Mandiri Audited Financial Services Consolidated net profit 1,357,515 1,357,257 Consolidated shareholders’ equity 17,284,380 17,284,380 c. Foreign Currency Transactions and Balances Bank Mandiri maintains its accounting records in Indonesian Rupiah. Transactions in currencies other than Rupiah are recorded at the prevailing rates of exchange in effect on the date of the transactions. At the balance sheet date, all foreign currency monetary assets and liabilities are translated into Rupiah using the Reuters spot rates at 4.00 p.m. WIB Western Indonesian Time on December 31, 2004 and 2003, and April 30, 2003. The resulting gains or losses are credited or charged to the current period’s profit and loss. The exchange rates used against the Rupiah were as follows amounts in full Rupiah: December 31, December 31, April 30, 2004 2003 2003 US Dollar 1Rp 9,285 8,425 8,675 British Pound Sterling 1Rp 17,908 15,057 13,836 Japanese Yen 100Rp 9,059 7,893 7,263 Euro 1Rp 12,660 10,649 9,657 PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 20

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