Formation of a Holding Company

PT Bank Mandiri Persero Tbk. MANAgEMENT DISCUSSION ANALySIS OF MANAgEMENT’S PERFORMANCE BANK MANAgEMENT Banks may only conduct business activities and create the Oice Network in accordance with the core capital owned which is grouped as follows:

a. Commercial Banks based on Business Activity BOOK 1

Capital: Rp1 trillion Operations that can be performed: 1 Business Activities in Rupiah which include: • Fund raising activities and the funds distribution of a product or basic activity; • Trade inance activities; • Activities with limited scope for agency and joint venture; • Activities and electronic banking payment systems with limited scope; • Temporary investment activities for loan recovery, and • Other services; 2 Activity as the Foreign Exchange PVA. 3 Other activities that are classiied as product or activity in Rupiah are commonly carried out by the Bank and in compliance to the laws and regulations. 4 The Bank shall extend credit or inancing to productive enterprises at the lowest 55 ifty ive percent of the total loans or inancing.

b. BOOK 2

Capital: Rp1 trillion to Rp5 trillion Operations that can be performed: 1 Business Activities in Rupiah and foreign currency: • Fund raising activities • Facilitating the funds distribution with a wider coverage; • Trade inance activities; • Treasury activities on a limited basis; • Other services; 2 Business Activities with wider coverage for: • Agency and joint venture; • Electronic banking and payment systems activities 3 Equity in inancial institutions in Indonesia with the highest total investment of 15 of the Bank’s capital; 4 Temporary investment activities for loan recovery; 5 Another common activity that in compliance with laws and regulations. 6 The Bank shall extend loans or inancing to productive enterprises at a minimum 60 sixty percent of the total loans or inancing.

c. BOOK 3

Capital: Rp5 trillion to Rp30 trillion 1 Operations can be made in Rupiah and foreign currency and equity investments in inancial institutions in Indonesia andor abroad is limited to the Asia region, among others: • Fund raising; • Funds distribution; • Trade inance; • Treasury activities; • Foreign exchange operations; • Agency and joint venture activities; • Activities of electronic banking and payment systems; • Capital investment activities with the highest total investment