Subsidiaries and Associates continued PT AXA Mandiri Financial Services

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Appendix 512 1. GENERAL continued

h. Structure and Management continued

As at 31 December 2011 and 2010 , the members of Bank Mandiri’s Audit Committees are as follows: 2011 2010 Chairman, concurrently as member : Gunarni Soeworo Gunarni Soeworo Member : Krisna Wijaya Mahmuddin Yasin Member : Cahyana Ahmadjayadi Krisna Wijaya Member : Zulkifli Djaelani Zulkifli Djaelani Member : Imam Soekarno Imam Soekarno As at 31 December 2011 and 2010 , the members of Bank Mandiri’s Remuneration and Nomination Committees are as follows: 2011 2010 Chairman, concurrently as member : Edwin Gerungan Edwin Gerungan Member : Muchayat Muchayat Member : Gunarni Soeworo Gunarni Soeworo Member : Mahmuddin Yasin Mahmuddin Yasin Member : Pradjoto Pradjoto Member : Cahyana Ahmadjayadi Cahyana Ahmadjayadi Member : Krisna Wijaya Krisna Wijaya Secretary ex-officio : Sanjay Bharwani Sanjay Bharwani As at 31 December 2011 and 2010, the Risk Monitoring and Good Corporate Governance Committee Bank Mandiri are as follows: 2011 2010 Chairman, concurrently as member : Pradjoto Pradjoto Member : Edwin Gerungan Edwin Gerungan Member : Muchayat Muchayat Member : Cahyana Ahmadjayadi Cahyana Ahmadjayadi Member : Krisna Wijaya Krisna Wijaya Member : Tama Widjaja Tama Widjaja Secretary ex-officio : Lisana Irianiwati Lisana Irianiwati As at 31 December 2011 and 2010 Bank Mandiri has a total of 27,907 and 25,236 employees unaudited, respectively.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Directors are responsible for the preparation of the consolidated financial statements of the Bank and Subsidiaries “Group” which have been completed on 7 March 2012. The principal accounting policies adopted in preparing the consolidated financial statements of the Bank and Subsidiaries are set out below: The consolidated financial statements have been prepared in accordance with Indonesian Financial Accounting Standards “IFAS”, and Regulation of the Capital Market Supervisory Board and Financial Institution Bapepam-LK No VIII.G.7 regarding “Financial Statements Presentation Guidelines” included in the Appendix of the Decree of the Chairman of the Bapepam-LK No. KEP-06PM2000 dated 13 March 2000 as amended by the Decree of the Bapepam-LK No. KEP-554BL2010 dated 30 December 2010 and Circular Letter No. SE-02BL2008 dated 31 January 2008 regarding “the Guidelines on Financial Statement Presentations and Disclosures for issuers or Public Companies in General Mining, Oil and Gas and Banking Industry”. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2011 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Appendix 513 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES continued

a. Basis of Preparation of the Consolidated Financial Statements

The consolidated financial statements have been prepared under the historical cost, except for financial assets classified as available for sale, financial assets and liabilities held at fair value through profit or loss and all derivative instruments which have been measured at fair value. The consolidated financial statements are prepared under the accrual basis of accounting, except for the consolidated statements of cash flows. Consolidated statements of cash flows are prepared using the direct method by classifying cash flows in operating activities, investing and financing activities. The financial statements of a Subsidiary company engaged in sharia banking have been prepared in conformity with the Statement of Financial Accounting Standards SFAS No. 101, “Presentation of Financial Statement for Sharia Banking”, SFAS No. 102, “Accounting for Murabahah”, SFAS No. 104, “Accounting for Istishna”, SFAS No. 105, ”Accounting for Mudharabah”, SFAS No. 106, “Accounting for Musyarakah”, SFAS No. 107, “Accounting for Ijarah”, Accounting Guidelines for Indonesian Sharia Banking PAPSI and other Statements of Financial Accounting Standards established by the Indonesian Institute of Accountants and also accounting and reporting guidelines prescribed by the Indonesian banking regulatory authority and Bapepam-LK. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in Indonesia requires the use of estimates and assumptions that affects: • the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements; • the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on Management’s best knowledge of current events and activities, actual results may differ from those estimates. Figures in the consolidated financial statements are rounded to and stated in millions of Rupiah, unless otherwise stated.

b. Changes in accounting policies in current year

The following are amendments of accounting standards and interpretations, which become effective starting 1 January 2011: - SFAS 1 Revised 2009 – Presentation of Financial Statements, - SFAS 2 Revised 2009 – Statements of Cashflows, - SFAS 3 Revised 2010 – Interim Financial Reporting, - SFAS 4 Revised 2009 – Consolidated and Separate Financial Statements, - SFAS 5 Revised 2009 – Operating Segments, - SFAS 7 Revised 2010 – Related Party Disclosures, - SFAS 8 Revised 2010 – Events After the Reporting Period, - SFAS 12 Revised 2009 – Interest in Joint Ventures, - SFAS 15 Revised 2009 – Investment in Associates, - SFAS 19 Revised 2010 – Intangible Assets, - SFAS 22 Revised 2010 – Business Combination, - SFAS 23 Revised 2010 – Revenue, - SFAS 25 Revised 2009 – Accounting Policies, Changes in Accounting Estimates and Errors,