Corporate Banking Loan Growth Third Party Fund Growth Fee Based Income Corporate Banking Profitability Segment

03 Company at a Glance 04 Management Discussion and Analysis on Companys Performance 05 Review of Business Support Function 01 Main Highlights 02 Management Report Corporate Banking As a part of transformation process of Bank Mandiri, Corporate Banking conducts reorganization of work units by distributing business focus particularly in terms of managing private company, SOEs as well as MinistriesInstitutions. Corporate Banking segment development in 2016 As in previous years, Bank Mandiri still focused on solution sector strategy, for that reason, Bank Mandiri conducted customer mapping to classify according to economy sectors. Moreover, Corporate Banking also focuses on improving in-depth knowledge of each economy and business sector, and developing products and services that can suit the customers needs to result into mutually synergy between the customers and Bank Mandiri. Furthermore, a Corporate Banking monitoring system called Corporate Banking Information Center CBIC was built to have better monitoring customer’s needs by Corporate Banking. Throughout 2016, Corporate Banking has been supporting the government national program, both through providing transactional system as well as fund disbursement, such as: 1. Supporting the government in transactional for State Receivable Tax, Non-Tax State IncomePNBP and custom through State Receivable Module Modul Penerimaan NegaraMPN. 2. Supporting National Budget spending fund disbursement through Treasury and State Budget System Sistem Perbendaharaan Anggaran NegaraSPAN. 3. Developing premium receivable channel for Health Care and Social Security Agency BPJS and in cooperation with the partner of Payment Point Online Bank PPOB. 4. Supporting transactional within healthcare sector by implementing Mandiri Hospital Application Mandiri Aplikasi Rumah SakitMARS for easy access on payment and monitoring. Bank Mandiri through Corporate Banking also supporting the government program in developing infrastructure. Until 2016, Corporate Banking has disbursing loan for infrastructure at Rp50.8 trillion or almost reach 22 from the total loan that has been disbursed by Corporate Banking in 2016. Some of the infrastructure projects that received financing facilities for Corporate Banking in 2016 are: Financing for economy Train-Set 6 Sumatera track, financing for Electric Diesel Train-Set 3 Minangkabau airport, financing for double track train South Sumatera, development of New Jogjakarta International Airport Kulonprogo, financing for bail-out scheme of Cinere-Jagorawi 14km toll road, financing for electricity 35.000MW project. In addition, Corporate Banking also plays a role in financing for instrumental weapon system to Ministry of Finance. Corporate Banking Performance in 2016

1. Corporate Banking Loan Growth

In 2016, loan disbursement has reached Rp228.66 trillion, or an increased by 16.31 compared to 2015 which was Rp196.59 trillion. Following the loan growth, NPL gets better to be 0.32 in 2016 from 2015 which was 0.83, which indicated controlling process and loan settlement were improving.Third Party Fund Growth

2. Third Party Fund Growth

Bank Mandiri managed to increase the number of third party fund from Corporate Banking customers for 15,68 to be Rp178.32 trillion in 2016 which includes LFC of Rp98.41 trillion and time deposit of Rp79.91 trillion, compared to 2015 for Rp154.15 trillion.

3. Fee Based Income

In 2016, fee based income generated by Corporate Banking Bank Mandiri was at Rp2.17 trillion, an increase by 52.79 compared to 2015 which was Rp1.42 trillion. The cumulative of fee based income consist of fee trade finance and fee bank guarantee at Rp543 billion, foreign exchange fee Rp189 billion and loan administration fee at Rp1 billion.

4. Corporate Banking Profitability Segment

Corporate Banking revenue recorded at Rp12,291 billion with the main revenue coming from loan business at Rp5,783 billion or 47 from the total income received by Corporate Banking. Corporate Banking business contribute the net income of Bank Mandiri in 2016 for Rp9,968 billion or an increase by 29 compared to 2015 for Rp7,684 billion. Strategy and Work Plan 2017 Strategy and Work plan 2017 are: Moving forward, Corporate Banking will keep on strengthening its position as the financial market leader of Indonesia corporate, supporting the government program be it in term of financing, transaction, as well as fund disbursement of government project, and providing transactional solution which has been adjusted according to customer’s needs. To support Corporate Plan Bank Mandiri 2016 - 2020 which is to be Indonesia’s best, ASEAN’s prominent where Corporate Banking will be one of the core growth segment and supported by Wholesale Strategy Corporate Plan with one of the main strategy is deepen client relationship”, for that Corporate Banking in 2017 will do the following 3 three initiative strategies. 10 Consolidated Financial Statements 09 Cross Reference of Annual Report Award 2016 Criteria 08 Corporate Social Responsibility 07 Integrated Corporate Governance 06 Corporate Governance 3 initiative strategies which will be developed by Corporate Banking in 2017 :

1. Portfolio Strategy: Strategy to define customer sector