2004 Q2 Analysts Meeting

0

Bank Mandiri Presentation Contents

Overview Page #

„ H1 2004 Summary P&L 3

„ Key Balance Sheet Items & Financial Ratios 4

„ Reconciliation to IFRS 5

„ Quarterly Loan Growth & LDR 6

„ Loan Portfolio Growth by Business 7

„ Quarterly Loan Collectibility Profile 8

„ Quarterly Asset Quality & Provisioning 9

„ Recap Bond Portfolio Summary & Movement 10

„ Quarterly Asset Mix & Interest Source 11

„ Quarterly Funding Mix 12

„ Quarterly Savings Deposits & Funding Rates 13

„ Quarterly Capital Structure 14

„ Quarterly Net Interest Margins and Spread 15

„ Quarterly Non-Interest Operating Income 16

„ Quarterly Overhead Spending 17

„ Industry Efficiency Comparison 18

„ Annual Core Earnings Analysis 19

„ Quarterly Profitability 20

„ Potential Upsides 21

„ Corporate Actions 22

„ Conclusion 23

Overview Page #

„ H1 2004 Summary P&L 3

„ Key Balance Sheet Items & Financial Ratios 4

„ Reconciliation to IFRS 5

„ Quarterly Loan Growth & LDR 6 „ Loan Portfolio Growth by Business 7 „ Quarterly Loan Collectibility Profile 8 „ Quarterly Asset Quality & Provisioning 9 „ Recap Bond Portfolio Summary & Movement 10 „ Quarterly Asset Mix & Interest Source 11

„ Quarterly Funding Mix 12

„ Quarterly Savings Deposits & Funding Rates 13

„ Quarterly Capital Structure 14

„ Quarterly Net Interest Margins and Spread 15 „ Quarterly Non-Interest Operating Income 16

„ Quarterly Overhead Spending 17

„ Industry Efficiency Comparison 18 „ Annual Core Earnings Analysis 19

„ Quarterly Profitability 20

„ Potential Upsides 21

„ Corporate Actions 22

„ Conclusion 23

Financial Summary Page #

„ Summary Half-Year Balance Sheet 25

„ Summary Quarterly Balance Sheet 26

„ Summary Quarterly P&L 27

„ Recap Bond Portfolio Detail 28

„ Bank Mandiri Credit Ratings 29

Loan Movement & Portfolio Detail

„ Q2 PL/NPL Movement 31

„ Q2 Non-Performing Loan Details 32 - 33

„ Q2 Category 1 and 2 Loan Movement 34

„ Q2 Category 2 Loan Details 35 - 36

„ Historical Restructured Loan Movement 37

„ Q2 Restructured Loan Details 38

„ Q2 Loan Portfolio Sector Analysis 39

„ Q2 Corporate Loan Details 40

„ Q2 Commercial Loan Details 41

„ Q2 Rupiah Loan Details 42

„ Q2 FX Loan Details 43

Additional Information

„ Consumer Banking Details 44 - 47

„ Bank Syariah Mandiri Details 48 - 49

„ Mandiri Sekuritas Details 50

„ Operational Loss Details 51

Financial Summary Page #

„ Summary Half-Year Balance Sheet 25 „ Summary Quarterly Balance Sheet 26

„ Summary Quarterly P&L 27

„ Recap Bond Portfolio Detail 28

„ Bank Mandiri Credit Ratings 29

Loan Movement & Portfolio Detail

„ Q2 PL/NPL Movement 31

„ Q2 Non-Performing Loan Details 32 - 33 „ Q2 Category 1 and 2 Loan Movement 34

„ Q2 Category 2 Loan Details 35 - 36

„ Historical Restructured Loan Movement 37

„ Q2 Restructured Loan Details 38

„ Q2 Loan Portfolio Sector Analysis 39

„ Q2 Corporate Loan Details 40

„ Q2 Commercial Loan Details 41

„ Q2 Rupiah Loan Details 42

„ Q2 FX Loan Details 43

Additional Information

„ Consumer Banking Details 44 - 47

„ Bank Syariah Mandiri Details 48 - 49

„ Mandiri Sekuritas Details 50

2

Bank Mandiri Overview

Summary P&L Information – H1 2004

(42.3) 0.8 950 1.3 1,647

Gain from Increase in Value & Sale of Bonds (66.7) 0.0 30 0.1 90

Non Operating Income

2.6

(0.3)

(316)

(0.2)

(308)

Other Operating Expenses**

41.5

3.7

4,453

2.5

3,147

Net Income Before Tax

35.7

(0.9)

(1,114)

(0.6)

(821)

G & A Expenses

24.7 (1.0) (1,160) (0.7) (930) Personnel Expenses (90.0) (0.1) (92) (0.7) (917) Provisions, Net 37.2 2.5 3,073 1.7 2,239

Net Income After Tax

44.7

3.7

4,423

2.4

3,057

Profit from Operations

57.8

1.0

1,177

0.6

746

Other Operating Income

36.7

4.1

4,978

2.8

3,641

Net Interest Income

(52.6) (4.1) (4,932) (8.1) (10,406) Interest Expense (29.5) 8.2 9,910 11.0 14,047 Interest Income (%) % of Av.Assets Rp (Billions) % of Av.Assets* Rp (Billions) YoY Change H1 2004 H1 2003

8.2 37.2

8.1 (6.9) (9.0) (25.4)

23.2 YoY Change (%)

1,138 154 27.5% 19.9% 129.9%

8.2% 47.9%

4.6% 36.9% 27.7% 3.7% 22,759 171,616 234,686 102,277 82,250 H1 2004

11.6

20,395 21,044

Total Equity

42.5% 36.1%

LDR

27.7% 30.7%

Total CAR(2)

19.4% 20.6%

Tier 1 CAR(2)

139.1% 178.2%

NPL Provisions / NPLs

40.4% 39.9%

Cost to Income(1)

23.6% 24.5%

RoE – after tax (p.a.)

2.8% 2.5%

RoA - before tax (p.a.)

11.6

1,020 1,052

Book Value/Share (Rp) (3)

229 112

EPS (Rp) (3)

8.6% 7.3%

Gross NPL / Total Loans

3.4% 3.1%

NIM (p.a.)

(4.0)

178,811 184,370

Customer Deposits

(5.9)

249,436 257,772

Total Assets

(16.8)

122,907 137,003

Government Bonds

8.3

75,943 66,787

Gross Loans

YTD Change (%)

FY 2003 H1 2003

IDR billion / %

Audited Reconciliation to IFRS

4,398

(188) 81

-199

55 (17)

52 104 (662)

4,586

Rp (Billions)

FY ’03 H1 ’03 H1 ’04

FY ’02 FY ’01

2,580

341 (146)

-4 44 1,108 (669)

2,239

Rp (Billions)

3,251

3,580

3,176

Net profit in accordance with IFRS

-293

Securities & Gov. Bond (trading portfolio)

28

-De-recognition of revaluation of premises & equipment

(77)

2 (184)

Deferred income taxes

(2)

-Accretion on deferred inc. arising from loan purchase from IBRA

-(94) 10

Employee benefits

117

(77) 351

Allow. for possible losses on commitments & contingencies

178

(6) 430

Net Adjustment

-(995)

De-recognition of allowances

-(52)

-Change in fair value of derivatives

112

215 955

Allow. for possible losses on earning assets IFRS Adjustments

3,073

3,586

2,746

Net profit under Indonesian GAAP

Rp (Billions) Rp

(Billions) Rp

44.6

41.2 42.3 43.0 44.5

49.2

42.5

48.3 48.3 50.4

58.7

65.4 68.7 66.8

72.6 75.9 76.7

82.3

26.5% 26.3% 28.3% _25.3% 27.5%

35.4% 36.1%

42.5%44.6%

47.90%

Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04

Loans (Rp tn) LDR (%)

Loan growth 7.2% in Q2; LDR increased as well

Consolidated Quarterly Data

-7.7%

2.6% 1.7%

10.6%

-13.6%

13.7%

-0.1%

13.1%14.7%

5.0%

-2.7%

8.7%

4.6%

1.1% 19.4%

0.5%

12.4%

8.5%

38.1%_35.3%42.3%

32.5%

23.6%

16.1%

11.8%

23.2%

7.2% 4.4%

3.4%

2.5% -0.3%

QoQ Growth (%) YoY Growth (%)

Consumer and Commercial loan growth improves segment mix

Loans by Customer Segment (Rp tn) – Bank Only

„On target for loan mix by end-2004 ¾Corporate: 50%

¾Non-Corporate: 50% Non-Performing Loans by Segment

6.64

0.19 3.13

3.32 NPLs

(Rp tn)

100%

6.5% 42.6%

50.9% % of Portfolio

19.5%

210.1% 45.9%

-2.9% Y-O-Y Growth

(%)

77.55

5.05 33.03

39.46 Loans

(Rp tn)

3.76% Cons.

8.41% Corp.

NPLs (%) By Segment

(Bank only) Comm. Total

8.56%

9.48%

Loan Segment Details – Bank Only

22.90 _22.63

25.60

31.39 33.03

1.40 1.63 3.10

3.74 5.05

38.92 40.62

42.70 _41.80

38.18 39.46

40.23

30.06

22.20

4.23 1.51

Q4

'0

2

Q1

'0

3

Q2

'0

3

Q3

'0

3

Q4

'0

3

Q1

'0

4

Q2

'0

4

Corporate

Commercial

0% 20% 40% 60% 80% 100% Q1 ' 0 0 Q2 ' 0 0 Q3 ' 0 0 Q4 ' 0 0 Q1 ' 0 1 Q2 ' 0 1 Q3 ' 0 1 Q4 ' 0 1 Q1 ' 0 2 Q2 ' 0 2 Q3 ' 0 2 Q4 ' 0 2 Q1 ' 0 3 Q2 ' 0 3 Q3 ' 0 3 Q4 ' 0 3 Q1 ' 0 4 Q2 ' 0 4

5 - Loss 4 - Doubtful 3 - Substandard 2 - Special Mention 1 - Pass

12.8% 14.5% 15.0% 24.8% 26.2% 35.7% 0% 20% 40% 60% 80% 100%

Cat 2 %

Cat. 2 as

%

of Total Loans

Special Mention loans declining

Loans by Collectibili

ty –

B

ank Only (

%

NPL Movement - Consolidated

8.2% 19.8%

9.7%

7.3% 8.6%

62.2%

1.8%

190.4%

82.3%

129.5% 146.7%

129.9%

Q1

'0

0

Q3

'0

0

Q1

'0

1

Q3

'0

1

Q1

'0

2

Q3

'0

2

Q1

'0

3

Q3

'0

3

Q1

'0

4

Maintaining conservative provisioning

„ As of 30 Jun ‘04:

¾Provisions/NPL coverage = 129.9%

¾Collateral values not deducted for Categories 3,4 and 5

¾Provisions excess to BI requirements = Rp 2.8 tn

„ Restructuring during Q2 ‘04:

¾Loans Restructured = Rp 170 bn

¾Bad Debt Recovery = Rp 231 bn

5 4

3 2

1 Collectibility

Non-Performing Loans Performing

Loans

50% 15% 15%

5%

100% 2%

BMRI Policy

100% 50%

1% BI Req.

Provisioning Policy

Recap Bond Portfolio

Portfolio Sales as of June 2004 (Rp bn) 102.3 67.4 33.5 1.4 Total 6.3 83.9 12.1 Total 65.9% 32.8% 1.4% % of Total

6.2% 6.3 -Hedge Bonds 82.0% 59.7 22.9 1.3 Variable Rate 11.8% 1.4 10.6 0.1 Fixed Rate

% of Total

HTM

(Nominal Value)

AFS

(Mark to Market)

Trading

(Mark to Market)

At Fair Value, June 2004 (Rp tn)

177.4 176.9 153.5 _148.8 123.0 107.3 102.3 4.0 17.5 8.2 1.0 15.8 24.5 0 40 80 120 160 200

1999 2000 2001 2002 2003 Q1 '04 Q2 '04 0 5 10 15 20 25 Recap Bonds Bond Sales

Bond Portfolio Movement (Fair Value), 1999 – Q2 ‘04

Ru pia h (Trillio ns) 10 63 8,181 Q2 ‘04 60 653 17,540 Q1 ‘04 716 1,868 Realized Profit Unrealized Profit Bonds Sold IDR bn 70 (52) 25,721 24,505 H1 ‘04 2003

0 40,000 80,000 120,000 160,000 200,000 240,000 280,000

Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04

Government Bonds Loans Other Assets

47.4%

42.3% 60.6%

48.5% 74.1%

68.2% 67.8%

63.6% 75.4% _74.7%

74.9%

34.1% 41.6% 29.9%

22.1% 19.3%

19.0% 18.1%

19.0% 19.8%

Int. from Bonds Int. from Loans

As a

%

of Total Interest Income

Growing Contribution from Loans vs. Bonds – Bank Only

0 20 40 60 80 100 120 140 160 180 200

Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04

Rp Savings Deposits Rp Demand Deposits FX Demand Deposits Rp Time Deposits FX Time Deposits

Funding Mix Improves

Deposit Analysis – Bank Only

Deposits by Type (Rp tn)

62.6%

50.9% 48.7%

44.6% 46.4%

53.7%

51.7%

57.3% _56.2%

61.5%62.0%

47.8%

26.8%

48.6% 44.5%

37.0% 33.8%

32.1% 31.4%

32.1% 32.9%

22.6%

Retail Deposits (%) Low-Cost Deposits (%)

As a

%

Savings Deposit Growth Generating a Better Funding Mix

42.3 16.6 15.3 31.9 29.6 24.4 22.1 19.7 18.0 40.5 25.3% 10.3% 15.5% 11.9% 10.0% 11.5% 11.2% _15.2% 16.8%

Q1 ' 00

Q2 '00

Q3 ' 00

Q4 ' 00

Q1 ' 01

Q2 '0 1 Q3 '0

1 Q4 '0

1 Q1 '

02 Q2 '

02 Q3 '0

2 Q4 '

02 Q1 '

03 Q2 '

03 Q3 '0

3 Q4 '0

3 Q1 '0

4 Q2 '

04 Savings Deposits (Rp tn)

As % of Total Deposits

National Share of Savings Deposits (%)

3.6%

3.7% 3.7%

6.1% 6.9%

2.7%

5.1% 4.4%_4.8%

10.6% 9.5% 8.1% 5.4% 10.8% 6.0% 7.1% 15.9% 13.8% 11.6% 6.6% 17.3% 7.4% 15.1% 13.0% 9.9% _8.4% 17.2% J an ' 02 Ma r ' 0 2 Ma y '0 2 Jul '0 2 Se p '0 2 No v '0 2 J an ' 03 Ma r ' 0 3 Ma y '0 3 Jul '0 3 Se p '0 3 No v '0 3 J an ' 04 Ma r ' 0 4 Ma y '0 4 Demand Deposits Savings Time Deposits 1 Mo. SBIs Savings Deposit Growth _{Average Monthly Rupiah Deposit Costs (%)}

SBI TD SD DD

44.0 42.3 42.6 47.0 51.3 51.6

58.1 61.0 56.1 64.3

72.5 77.8 79.5

89.5 91.9 94.2 96.2

15.1 14.6 15.1 15.4 17.8 16.8 18.4 17.0

20.7 21.0

25.0 25.5 28.1 26.5

13.3 13.3

9.7

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04 RWA (Rp tn) Total Capital (Rp tn)

26.1%

31.3%32.2%

29.3%

26.4% 26.6%

27.9%

29.8%

27.5% 31.4%

28.5% 29.3% 29.8%

23.4%

28.6% 27.7%

26.4% CAR

BI Min Req

High CAR maintained through strong internal capital

generation

Margins improving through better Assets/Liabilities mix

All figures - Bank Only

2.

6% 2.5%

3.

0% 2.

4% 2.5%

3.

0% 3.0%

3.

9% _2.

9% 2.9%

3.

4% 2._8% 3._0% 3.3% 3.3%

3.

7%

4.

7% 4._5%

0. 8% 0. 8% 1. 8% 2.

2% 1._1% 1.5%

1.

7% 2._2%

2.

1% 2._{0% 2.}

5% 2. 2% 2. 2% 2. 5% 3. 2% 3. 2% _4. 2% 4. 2% Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Spread NIM 11.3% 10.9% 11.9% 13.0% 12.4%12.6%12.8%13.0% 13.9%13.6%13.5% 13.0% 11.8% 11.5% 10.4% 9.5% 9.3% 8.8% 10.5% 10.1%10.1%

10.8%11.2%11.1%11.1%10.8%

11.8%11.6% 11.0%10.8% 9.6% 9.1% 7.2% 6.3% 4.6% 5.1%

Yield on Assets Cost of Funds

46 57 89

135

89

162

112

173 180

339

150 190

302 _{282 280} 309

102 101

Q1 '00

Q3 '00

Q1 '01

Q3 '01

Q1 '02

Q3 '02

Q1 '03

Q3 '03

Q1 '04

9.6%

2.3%

10.5%

4.9% 4.8%

4.1%

4.8%

6.3%

5.1% 7.2% % of Operating Income*

Rising non-loan related fees & commissions

Non-loan related fees & commissions _{Details of Q2 2003 & 2004}

Transfers etal 7.6% Fees from

Subs. 10.3% Others

31.6%

LCs & Guarantees

28% Admin Fees

22.4%

Credit Cards 4.9% Transfers etal

8% Fees from

Subs. 6% LCs & Guarantees

20%

Admin Fees 36.4%

Others

Q2 2003 (Rp190 bn)

379 _{276 359 336 319} 433

259

736

360 487 490

723

387 434 561

733

491 623 370

325 211 294

293

417 327

402 457

409 521

476

394

558

602 380

666

957

Q1 '00

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

G&A Expenses (Rp bn) Personnel Expenses (Rp bn)

Efficiency ratios maintained despite salary adjustments and

higher G&A expenses

33.7%

40.3% 38.9%

42.5%

36.9% 34.4%

27.0%

33.8% 40.0%

37.1%

31.1%

39.9%

42.8%

40.4% Cost to Income Ratio (%)

Scale maintains efficiency advantage over competitors

Bank Only, As of June 2004

35.3% 38.7%41.6% 43.1% 45.1%

66.5% 68.6%71.9%

88.8% M andi ri D ana m on BN I BR I BC A Pe rm a

ta _BII

BT N Li pp o 723 516 461 386 ₃₆₉ 211 154 364 330 M andi ri BN I BT N BR I BC A D ana m on BI I Li pp o Pe rm a ta 8,890

5,788 5,739 5,586

4,110 3,690 3,571

2,720 2,563 Man d ir i BC A BN I BT N Pe rm a ta Li ppo BI I Da n a m o n BR I 4,123 754 1,509 1,565 1,717 1,769 1,824 2,915 3,592 M andi ri BT N BN I Pe rm a ta BR I D ana m on BC

A _BII

Li

pp

o

Revenue/ Employee* (Rp Mn)

Cost/ Income (p.a.) (%) Loans/ Employee (Rp Mn) Deposits/ Employee (Rp Mn) 471

217 _{200 195}

177 ₁₆₅ 106 45 ₃₃ M andi ri D ana m on BC A BT N BN I BR I BI I Pe rm a ta Li pp o

Pre Tax Income/Employee* (Rp Mn)

2.1% 2.2% 2.6%

3.3% 3.7%

4.7% 4.8% 5.2%

7.1% M andi ri Pe rm a ta BC A BT N D ana m

on _BNI

Li pp o BI I BR I Cost/Assets* (%)

3,357

4,145

3,514

2,536

3,280

1,454

260

114

285

2,021

2,072

950

2,796

0 1,500 3,000 4,500 6,000 7,500

2000 2001 2002 2003 H1 '04

Gain on Sale/Value of Securities FX Gain

Core Earnings

Pre-Provision Operating Profit

IDR bn

H1 2004 core earnings 17.3% above H1 2003

H1 H2

8.1%

21.5%

26.2%

24.0%

27.7%

RoE - After Tax (Annualized)

Q2 PAT of Rp 1,329 bn is an increase of 92.6% on Q2 2003

472

₃₀₈

1,168

1,549

1,744

290

1,300

602

690

1,329

967

1,017

1,528

(410)

645 799

819

829

2000 2001 2002 2003 2004

Q4 PAT Q3 PAT Q2 PAT Q1 PAT

Potential Upsides

Written-off Loans Written-off Loans

„ Aggregate of IDR 21.92 tn (US$ 2.34 bn) in written-off loans as of end-June 2004, with significant recoveries on-going:

¾ 2001: IDR 2.0 tn (US$ 224 mn)

¾ 2002: IDR 1.1 tn (US$ 123 mn)

¾ 2003: IDR 1.2 tn (US$ 147 mn)

¾ Q1 ’04: IDR 0.19 tn (US$ 22 mn)

¾ Q2 ’04: IDR 0.19 tn (US$ 20 mn), including property auctions & redemptions bringing in IDR 42 bn against principal of IDR369.3 bn

Property Revaluation Property Revaluation

„ Property revalued by Rp. 3.0 trillion in our June 2003 accounts

„ Based upon a valuation by Vigers as of June 2003, an additional Rp. 2.8 trillion remains un-booked

Conservative Provisioning Conservative

Provisioning

„ Conservative provisioning policy resulted in allowances on loans exceeding BI’s minimum requirements

¾ As of 30 June 2004, excess provisions totaled IDR 2.845 tn (US$ 303 mn)

Loan Collateral Undervalued Loan Collateral

Undervalued

„ Collateral values on NPLs are generally not included for provisioning purposes due to outdated valuations

Corporate Actions

Dividend Policy Dividend

Policy

„ No change to dividend payment policy:

¾50% of Net Profit after tax

Acquisitions Acquisitions

„ Bank Mandiri leads the Bank Mandiri-Buana Consortium in bidding for 51% of Bank Permata being sold by PT. Perusahaan Pengelolaan Asset (PPA).

„ Indicative non-binding bid was submitted on 30 August 2004

In Conclusion

„

Asset mix continues to improve

„

Liability mix continues to improve

„

Retail banking continues to grow (now on the asset side)

„

Margins remain strong

„

Transformation in corporate governance, risk

management and corporate culture continues

„

Asset mix continues to improve

„

Liability mix continues to improve

„

Retail banking continues to grow (now on the asset side)

„

Margins remain strong

„

Transformation in corporate governance, risk

management and corporate culture continues

24

Bank Mandiri Financial Summary

Summary Balance Sheet: Half Years ending June 30 & Dec 31

84,530 43,535 43,551 171,616 73,441 (8,809) 6,781 75,469 82,250 67,357 33,474 1,446 102,277 5,492 8,399 25,490 234,686 Rp (Billions) H1 ‘04 (27.0) 9,007 99,272 115,812

Certificate & Time Deposits

33.8 4,639 41,307 32,546 Savings Deposits 20.9 4,640 38,232 36,012 Demand Deposits (6.9) 18,286 178,811 184,370

Total Deposits – Non-Bank

38.7 723 6,542 4,890 Non-Performing Loans 23.2 8,764 75,943 66,787 Loans 1.1 (939) (9,100) (8,713) Allowances (34.9) 7,177 70,081 103,433 HTM 13.4 3,567 51,437 29,509 AFS (25.4) 10,898 122,907 137,033 Government Bonds 26.5 7,825 66,843 58,074

Loans – Net

21.9 8,041 69,401 61,897 Performing Loans (64.7) 154 1,389 4,091 Trading 54.6 585 5,215 3,553

Securities - Net

30.9

895

6,972 6,416

Current Accounts & Placements w/Other Banks

(21.4)

2,716

27,089 32,421

Cash & Placements w/BI

(9.0)

25,006

249,436 257,772

Total Assets

Rp % Change USD (Millions)#

Rp (Billions) Rp (Billions)

Y-o-Y

H2 ‘03 H1 ‘03

Summary Quarterly Balance Sheet: 31 Dec ‘03, 31 Mar. & 30 Jun. ‘04

84,530 43,535 43,551 171,616 73,441 (8,809) 6,781 75,469 82,250 67,357 33,474 1,446 102,277 5,492 8,399 25,490 234,686 Rp (Billions) Q2 ‘04 (4.4) 9,007 88,456 99,272

Certificate & Time Deposits

4.4 4,639 41,719 41,307 Savings Deposits 4.1 4,640 41,843 38,232 Demand Deposits (0.2) 18,286 172,018 178,811

Total Deposits – Non-Bank

5.6 723 6,421 6,542 Non-Performing Loans 7.3 8,764 76,652 75,943 Loans (1.0) (939) (8,894) (9,100) Allowances (1.7) 7,177 68,518 70,081 HTM (10.3) 3,567 37,321 51,437 AFS (4.7) 10,898 107,317 122,907 Government Bonds 8.4 7,825 67,758 66,843

Loans – Net

7.5 8,041 70,231 69,401 Performing Loans (2.2) 154 1,478 1,389 Trading 26.7 585 4,335 5,215

Securities - Net

(18.9)

895

10,358 6,972

Current Accounts & Placements w/Other Banks

(9.4)

2,716

28,135 27,089

Cash & Placements w/BI

(2.0)

25,006

239,383 249,436

Total Assets

Rp % Change USD (Millions)#

Rp (Billions) Rp (Billions)

Q-o-Q

Q1 ‘04 Q4 ‘03

Summary P&L Information – Q2 2004

(77.7) 0.3 173 1.3 777

Gain from Increase in Value & Sale of Bonds (116.7) (0.0) (6) 0.1 36

Non Operating Income

(11.9)

(0.2)

(148)

(0.3)

(168)

Other Operating Expenses**

(19.4)

3.4

1,988

4.0

2,465

Net Income Before Tax

26.9

(1.1)

(623)

(0.8)

(491)

G & A Expenses

7.9 (1.0) (602) (0.9) (558) Personnel Expenses (162.1) 0.3 151 (0.4) (243) Provisions, Net (23.8) 2.2 1,329 2.9 1,744

Net Income After Tax

(17.9)

3.4

1,994

4.0

2,429

Profit from Operations

(11.3)

1.0

620

0.9

557

Other Operating Income

(5.2)

4.1

2,423

4.2

2,555

Net Interest Income

(12.0) (3.9) (2,309) (4.3) (2,623) Interest Expense (8.6) 8.0 4,732 8.5 5,178 Interest Income (%) % of Av.Assets Rp (Billions) % of Av.Assets* Rp (Billions) Q-o-Q Change Q2 2004 Q1 2004

28

Recap Bond Portfolio Details –

30 June 2004

Bank Mandiri’s Credit Ratings

B3 Long Term Bank Deposits

B B+

Long Term Local Currency Debt

Bank Mandiri Ratings

B B2

B Long Term Foreign Currency Debt

Stable Stable

Positive Outlook

Sovereign Ratings

Positive Long Term Local Currency Outlook

B3 Long Term Bank Deposits

B B2

B Long Term Foreign Currency Debt

Stable Positive

Long Term Foreign Currency Outlook

B+ B+

Long Term Local Currency Debt

B B

Short Term Foreign Currency Debt

Fitch Moody’s

Bank Mandiri Additional Loan Movement &

Bank Mandiri Additional Loan Movement &

Portfolio Detail

Portfolio Detail

Q2 2004 Loan Movement, Performing & Non-Performing Loans

2,375

2,105

626

200

66,853

70,906

Beg. Balance

U/G from NPL

D/G to NPL

Net Disburse.

FX Impact End Balance Performing Loan Movements - Bank Only

IDR bn

Non-Performing Loan Movements – Bank Only

6,639 200

6,341

626

241

231

416

278

Beg. Balance

U/G to PL D/G from PL

Disburse. CollectionsWrite-Offs FX Impact End Balance

C

o

rpor

at

e

C

o

mme

rc

ia

l

Organic IBRA Restr

Trans Mfg-Oth Mfg-Text Bus. Serv.

Agri Retail

Distr. Mfg-Wood Mfg-NonM Oth<5%

IDR USD

Invest. WC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GAS Backgrnd Sector Currency Purpose

Q2 2004 Loan Detail*: New NPLs

„43.8% remained current on interest payments

„62.3% were Commercial borrowers „2.8% were loans purchased from

IBRA

„43.9% were previously restructured „Largest downgrades by sector:

¾ Transportation ¾ Business Services

¾ Manufacturing of Textiles „85.0% were Rupiah loans

„22.5% were Investment loans

„1st _{time downgrades from Business}

Services, Trading & Hotels New NPLs in Corporate and

Commercial loans totaled Rp 665 billion (0.9% of total loans) in Q2. Of these new NPLs in Q2:

New NPLs by Customer Segment (Rp tn) – Bank Only

Annualized NPL Rate

665.4

251.1 414.2

Total

22.7

22.7

-Overseas

313.9

16.0 297.9

Post-Merger

18.2

-18.2

Pre-Merger

18.6

-18.6

IBRA

292.0

212.5 79.6

Restructured

New NPLs in Q2 2004

3.2%

0.4% 5.7%

Post-Merger

1.5%

-2.2%

Pre-Merger

1.5%

-5.4%

IBRA

5.4%

5.9% 4.4%

Restructured

4.4%

4.4%

-Overseas

72,493.1 39,464.5

33,028.6 Total

2,083.1

2,083.1

-Overseas

38,974.4

17,985.9 20,988.5

Post-Merger

4,718.8

1,367.7 3,351.1

Pre-Merger

5,010.5

3,633.2 1,377.4

IBRA

21,526.4

14,342,4 7,184.0

Restructured

Commercial

Loan Classification Corporate Total

Loan Segment Details – Bank Only

Q2 2004 Loan Detail*: Non-Performing Loans

Loan Profile: Q2 Corp & Comm NPLs (Rp 6.5 tn) Bank Only

„51.4% are to Corporate customers „63.9% are Investment loans

„Primary sectors are: ¾ Manufacturing

•Pulp & Paper

•Textiles

¾ Trading, Hotel & Restaurant ¾ Agriculture

¾ Transportation „52.1% are Rupiah loans „36.3% were previously

restructured

„35.4% were loans purchased from IBRA

Rp 6.5 trillion in Corporate &

Commercial NPLs remained in Q2, or 8.3% of total loans. Of these NPLs in Q2:

Co

rp

o

ra

te

C

o

mme

rc

ia

l

Organic IBRA Restr

Mfg-P&P Mfg-Oth

Agri Retail Trans Mfg-Text

Hotels Soc Serv

Bus Serv

Oth<5%

IDR USD

Invest. WC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Q2 2004 Movement in Category 1 and 2 Loans

56,233 1,926

2,729 74

14 1,446

1,400

60,994

Beg. Bal. D/ G t o 2 U/ G f rom 2

D/ G t o NPL

U/ G f rom NPL

Net Disburse.

FX Impact End Bal.

Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only

544 720

126 613

1,446 1,400

10,621

9,912

Beg. Bal. Cat. 1 D/G U/G to 1 D/G to NPL NPL U/G Net Disburse.

Q2 2004 Loan Detail*: New Category 2 Loans

Loan Profile: Q2 Corp & Comm New Cat. 2 loans (Rp 1.38 tn) Bank Only

„84.9% are to Commercial customers

„45.8% are current or 1 day overdue „Primary sectors in Category 2 are:

¾ Construction ¾ Agriculture ¾ Trading

¾ Chemical manufacturing „72.0% are Rupiah loans

„45.5% are Investment loans „14.1% are Restructured loans „2.6% were purchased from IBRA

Rp 1.38 trillion in Corporate & Commercial loans were new to Category 2 in Q2, or 1.8% of total loans. Of these new Special Mention Loans in Q2:

C

or

p

or

at

e

C

o

mme

rc

ia

l

Current 1 Day

< 30 31-60

61+

Constr Mfg-Oth Trading

Agri Mfg-Chem

Bus Serv Mining Mfg-Wood

Mfg-Text Oth<5%

IDR USD

Invest. WC Other

O

rgani

c

IBRA Restr

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Q2 2004 Loan Detail*: Category 2 Loans

Loan Profile: Q2 Corp & Comm Category 2 Loans (Rp 9.5 tn) Bank Only

„ 38.6% are Corporate customers „ 61.1% are current or 1 day overdue „ Primary sectors in Category 2 are:

¾ Textile Manufacturing ¾ Agriculture

¾ Trading, Hotels & Restaurants

¾ Non-Metal Mining „ 54.1% are Rupiah loans „ 63.8% are Investment loans „ 62.5% are Restructured loans „ 7.7% were purchased from IBRA „ 84.2% saw no change in

collectibility

Rp 9.5 trillion in Corporate &

Commercial loans were in Category 2 in Q2, or 12.3% of total loans. Of these Special Mention loans in Q2:

C

or

por

at

e

Co

m

m

e

rc

ia

Current 1 Day

< 30 31-60

61+

Mfg-Text Agri Mfg-NonM

Trading Mfg-Oth Bus Serv

Trans Mfg-Wood

Mfg-Chem Oth<5%

IDR USD

Invest. WC

O

rgani

c

IBRA

IBRA Restr Restr

1 to 2 New Bal.

NC-PL UG to PL

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Movement in Restructured Loans, 1999 – Q2 ‘04

IDR bn

FY 2003 Restructured Loan Movements

25,

1

23

29,

542

23,

987

22,

640

22,

258

27,

4

23

10,

583

1999 Add Deduct2000 Add Deduct2001 Add Deduct2002 Add Deduct2003 Add DeductQ1 '04 Add DeductQ2 '04 Other

Write-Offs Repayments Restructuring Balance

Q2 2004 Loan Detail*: Restructured Loans

Loan Profile: Q2 Corp & Comm Restructured Loans (Rp 22.3 tn) Bank Only

„89.5% are performing

„67.2% are to Corporate customers „Primary sectors are:

¾ Agriculture ¾ Manufacturing

•Chemicals

•Textiles

¾ Trading & Hotels ¾ Business Services „51.5% are Rupiah loans „59.0% are Investment loans „1.8% improved in collectibility „4.0% deteriorated in collectibility Rp 22.3 trillion in restructured

Corporate & Commercial loans remained in Q2, or 28.7% of total loans. Of Restructured Loans in Q2:

1

2 3 4

5

Current

< 30

31-60 61+

Mfg-Oth Agri Mfg-Chem

Mfg-Text

Mfg-NonM Trading Mfg-P&P Bus Serv

Constr Oth<5%

IDR USD Other

Invest. WC

C

o

rporat

e

C

o

mme

rc

ia

l

1 to 2 2 to 1 PL-NC

DG to NPL

NPL-NC

NPL + NPL

-0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Agriculture 9.2%

Mfg-Oth 9.2%

Mfg-Chem 8.4%

Bus Serv 7.1% Mfg-P&P

5.8% Retail

4.4% Mining

4.4% Mfg-Wood

4.1% Hotels & Rest.

3.7%

Construction 6.9%

Mfg-F&B 10.3%

Mfg-Text 7.0% Trans

5.2% Mfg-Non-metal

3.5%

Distribution 3.5%

Others 7.4%

Loan Portfolio Sector Analysis

Breakdown By Sector, June 2004(1)

„No sector accounts for more than 11% of total loans

„Minimizing exposure to problem sectors including

¾Textiles (7.0%) ¾Plywood (4.1%)

¾Hotels & Restaurants (3.7%) „Focusing on growth sectors

including:

¾Agriculture ¾Fisheries

Q2 2004 Loan Detail: Corporate Loans

Loan Profile: Q2 Corporate Loans Only (Rp 39.5 tn)

1

2 3 4

5

Current

< 30

31-6061+

Mfg-F&B Mfg-Chem

Mfg-Oth

Mfg-P&P

Trading Mfg-Text

Mining Mfg-NonM

Bus Serv Oth<5%

IDR USD

Other

Invest. WC

O

rgani

c

IBR

A

IBRA Restr.

R

e

st

ru

ct

u

re

d

New Bal.

2 to 1 PL-NC DG to NPL

NPL-NC NPL

-0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

„91.6% are performing loans „9.3% are in Category 2

„65.2% of Category 2 loans are current in interest payments

„Primary sectors in Corporate are: ¾ Food & Beverage Mfg

¾ Chemical Mfg ¾ Pulp & Paper Mfg ¾ Trading, Hotels &

Restaurants

„45.7% are Rupiah loans „54.1% are Investment loans „37.9% are Restructured loans „10.2% were purchased from IBRA Rp 39.5 trillion in loans were in the Corporate portfolio in Q2, or 50.9% of total loans. Of the Corporate Loans in Q2:

1

2 3 4

5

Current

1 Day < 30

31-60 61+

Mfg-Other Agri Bus Serv

Constr

Retail Mfg-Text

Trans Hotels

Mfg-Wood Oth<5%

IDR USD

Invest. WC

O

rgani

c

IBRA

IBRA Restr.

R

e

st

ru

ct

u

re

d

New Bal.

1 to 2 2 to 1 PL-NC DG to NPL

NPL-NC NPL

-0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Q2 2004 Loan Detail: Commercial Loans

Loan Profile: Q2 Commercial Loans Only (Rp 33.0 tn)

„90.5% are performing „17.7% are in Category 2

„57.7% of Category 2 loans are current in interest payments

„Primary sectors in Commercial are: ¾ Agriculture

¾ Retail

¾ Business Services ¾ Construction

„75.1% are Rupiah loans „45.5% are Investment loans „22.1% are Restructured loans „4.2% were purchased from IBRA Rp 33.0 trillion in loans were in

Commercial portfolio in Q2, or 42.6% of total loans. Of the Commercial Loans in Q2:

Q2 2004 Loan Detail*: Rupiah Loans

Loan Profile: Q2 Corp & Comm Rupiah Loans (Rp 42.8 tn) Bank Only

1

2 3 4

5

Current

< 30

31-60 61+

Mfg-Oth Mfg-F&B

Agri

Trading-Oth

Bus Serv Constr

Retail Trans

Mfg-NonM Oth<5%

C

or

p

or

at

e

Co

m

m

e

rc

ia

Invest. WC

O

rgani

c

IBRA

Restr

1 to 2 2 to 1

PL-NC DG to NPLNPL-NC

NPL

-10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

„92.1% are performing loans „12.0% are in Category 2

„49.1% of Category 2 loans are current in interest payments

„Primary sectors in Corporate are: ¾ Trading, Hotels &

Restaurants ¾ Agriculture

¾ Food & Beverage Mfg ¾ Business Services „42.1% are Corporate loans „40.3% are Investment loans „26.7% are Restructured loans „2.7% were purchased from IBRA Rp 42.8 trillion in loans were Rupiah denominated in Q2, or 55.2% of total loans. Of the Rupiah Loans in Q2:

Q2 2004 Loan Detail*: Foreign Currency Loans

Loan Profile: Q2 Corp & Comm FX Loans (Rp 29.7 tn) Bank Only

„ 89.6% are performing loans „ 14.7% are in Category 2

„ 74.1% of Category 2 loans are current in interest payments

„ Primary sectors in Corporate are: ¾ Manufacturing of

‰Chemicals

‰Textiles & Leather ‰Pulp & Paper

¾ Mining

¾ Trading, Hotels & Restaurants

„ 72.2% are Corporate loans „ 64.3% are Investment loans „ 36.4% are Restructured loans „ 14.3% were purchased from IBRA Rp 29.7 trillion in loans were foreign currency denominated in Q2, or 38.3% of total loans. Of the FX Loans in Q2:

1

2 3 4

5

Current

< 30

31-60 61+

Mfg-Chem Mfg-P&P Mfg-Text

Mfg-Oth

Mining Trading

Constr Mfg-Wood

Mfg-F&B Oth<5%

C

or

p

or

at

e

C

o

mmer

c

ia

Invest. WC

O

rgani

c

IBRA

Restr

New Bal.

1 to 22 to 1

PL-NC

NPL-NC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Consumer Loan Portfolio Detail in Q2

Q-o-Q Y-T-D

Y-o-Y

69.7% (96.1%)

24.8% (3.5%) 796.1% 113.9% 444.5%

35.0% 28.4% 14.6% (2.9%) 222.7%

5.6% 131.5%

2,976.4

604.0 747.9 496.9 118.1 889.3 120.2 Jun 2003

5,052.0 23.5 933.6 479.4 1,058.3 1,902.3 654.5 Jun 2004

19.9%

19.6 18.3

Unsecured Loans

18.8%

785.7 814.9

Credit Cards

(19.3%)

594.0 493.5

Cash Collateral Loans

96.1%

539.8 328.0

Collateralized Personal Loans

4,212.5

1,859.6 411.1 Mar 2004

Total Consumer

Payroll Loans Mortgages

(Rp bn) Dec 2003 Growth (%)

19.3% 3,742.0

2.3%

1,802.0

59.2%

282.7

Other Transaction Services

341

1,014

50 18

164 185 7

234 112

72 106

386

1,357

695

282

62

1,069

1,114

725

679 698 706

27

52

159 Debit Cards Issued* (000) SMS Subs. (000)

SMS Trans. (000) Call Center Trans. (000)

Electronic banking channels rapidly expanding

389.

7

336.

5

290.

5

268.

7

8.

1

19.

2

35.

9 74.

2 _115.

8 203.

9

232.

9

12.

9

26.

2 52.

2 _94.

2 159.

0 _226.

2

271.

8

138,259

98,004

2,709 6,270

12,201

25,429

41,744

62,551

88,310 Avg Daily Volume (000)

Avg Daily Value (Rp Mn)

Credit Card business expanding

Mandiri Visa Card Holders and EOQ Receivables

418.0

275.4 225.7 245.3

275.3

338.2 357.5 567.5

747.9

814.9

933.6

645.9

823.2 _785.7

Cards (000s) Receivables (Rp Bn)

82 ₇₈ 90

95

110

127 8

20

18

22

9 8

7

7

12

12 Transfer Balance

Cash Advance Retail

Visa Card Monthly Sales by Type of Transaction (Rp Billion)

Transferred from GE

Credit Card portfolio quality improving

Mandiri Visa Card Delinquency Rates (%)

106.1

94.6

82.9

57.7

46.4

38.6

21.2

32.8

25.4

31.6

16.2 15.9

0.4 0.7 0.9 1.1 1.3 1.5

Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04

NPLs (90+DPD) Write-Offs Recoveries Monthly Charge-offs, NPLs & Recoveries (Rp Billion)

21.3%

19.3%

16.8%

13.0%

10.8%

9.1%

13.3%

12.1%

10.7%

7.4%

5.8%

4.6% 12.7%

11.5%

9.5%

7.0%

6.3%

5.4% 7.8%

5.8%

3.1% 7.3%

3.9%

2.6%

Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04

30 DPD - Rp 90 DPD - Rp 30 DPD - Cards 90 DPD - Cards

56 147 298

687 187

336

753

1,276

232

634

1,578

2,015

Time Deposit Savings

Demand Deposit Branch Network & Customer Growth

Bank Syariah Mandiri

32

48

88

113

70

115

206

282

Branches

Customers (000s)

Third Party Deposits by Type (Rp Billions)

Bank Syariah Mandiri

856

1,496

3,131

4,652

2,629

4,373

2,163

3,920

475653 _1,1171,141

75

91

137

117

30

16

28 17

Total Earning Assets 3rd Party Funds

Total Financing Extended Net Profit Sharing

PAT

Financial Highlights (Rp Billions)

76.2% _74.6%

66.1%

89.6%

20.9%

13.0% 63.2%

39.3%

3.3% 3.6%

1.8% 7.4%

1.0%

12.6%

3.6% 4.4%

LDR CAR

ROA ROE

Selected Financial Ratios (%)

Mandiri Sekuritas

440,914

161,913

181,122

98,509 123,957

115,448 64,478

206,376

18,410 27,272

16,330 28,862

5,602

351

Other

Mutual Funds Corporate Bonds Shares

Govt. Recap Bonds Trading Gains

Marketable Securitas Portfolio Breakdown (Rp Billion)

62

1,083

1,148

348

712 733

380

47

66

20

18

99

44

53

22 6

2

11

13

16 Assets

Equity Profit

Operating Income Operating Expense Financial Performance (Rp Billion)

26

73 ₆₇

53

8 65

91 ₉₂

105 73

191 ₁₉₁

28 107 226

2000 2001 2002 2003 H1 2004

Notification Warning Termination

Disciplinary Actions Taken (# of Employees) & Total Potential Operational Losses – All Sources

Recent Significant Fraud Proceedings

Branch/Year: Jakarta Tanjung Priok, 2002 Employee: ex Officer (CSO)

Potential Losses: Rp 53.83 b

Recovered: Rp 2.0b + assets Court Judgment: 17 year jail term

Rp 10b penalty

Repayment of Rp 40b Currently on appeal to the Supreme Court

Branch/Year: Jakarta Tanjung Priok, 2002

Employee: ex Officer (CSO)

Potential Losses: Rp 53.83 b

Recovered: Rp 2.0b + assets

Court Judgment: 17 year jail term

Rp 10b penalty

Repayment of Rp 40b Currently on appeal to the Supreme Court

Branch/Year: Jakarta Prapatan, 2002 Employee: ex Spoke Manager Potential Losses: Rp 120b

Recovered: Rp 40.3b + assets Court Judgment: 15 year jail term

Rp 5.1b penalty

Repayment of Rp 77b Currently on appeal to the Supreme Court

Branch/Year: Jakarta Prapatan, 2002

Employee: ex Spoke Manager

Potential Losses: Rp 120b

Recovered: Rp 40.3b + assets

Court Judgment: 15 year jail term

Rp 5.1b penalty

Repayment of Rp 77b Currently on appeal to the Supreme Court

Branch/Year: Pontianak, 2002

Employee: ex Hub Outlet Manager Potential Losses: Rp 95.8b

Recovered: Rp 95.7b Court Judgment: 4 year jail term

Rp 200m penalty No appeal

Branch/Year: Pontianak, 2002

Employee: ex Hub Outlet Manager

Potential Losses: Rp 95.8b

Recovered: Rp 95.7b

Court Judgment: 4 year jail term

Rp 200m penalty No appeal

Compliance & Discipline

67.6

10.8 210.5

156.5

Credit Card business expanding

Mandiri Visa Card Holders and EOQ Receivables

418.0

275.4 225.7 245.3

275.3

338.2 357.5 567.5

747.9

814.9

933.6

645.9

823.2 _785.7

Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04

Cards (000s) Receivables (Rp Bn)

82 ₇₈ 90

95

110

127 8

20

18

22

9 8

7

7

12

12

Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04

Transfer Balance Cash Advance Retail

Visa Card Monthly Sales by Type of Transaction (Rp Billion)

Transferred from GE

Credit Card portfolio quality improving

Mandiri Visa Card Delinquency Rates

(%)

106.1

94.6

82.9

57.7

46.4

38.6

21.2

32.8

25.4

31.6

16.2 15.9

0.4 0.7 0.9 1.1 1.3 1.5

Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04

NPLs (90+DPD) Write-Offs Recoveries Monthly Charge-offs, NPLs & Recoveries (Rp Billion)

21.3%

19.3%

16.8%

13.0%

10.8%

9.1%

13.3%

12.1%

10.7%

7.4%

5.8%

4.6% 12.7%

11.5%

9.5%

7.0%

6.3%

5.4% 7.8%

5.8%

3.1% 7.3%

3.9%

2.6%

Jan '04 Feb '04 Mar '04 Apr '04 May '04 Jun '04

30 DPD - Rp 90 DPD - Rp 30 DPD - Cards 90 DPD - Cards

56 147 298

687 187

336

753

1,276

232

634

1,578

2,015

2001 2002 2003 H1 2004

Time Deposit Savings

Demand Deposit

Branch Network & Customer Growth

Bank Syariah Mandiri

32

48

88

113

70

115

206

282

2001 2002 2003 H1 2004

Branches

Customers (000s)

Third Party Deposits by Type (Rp Billions)

Bank Syariah Mandiri

856

1,496

3,131

4,652

2,629

4,373

2,163

3,920

475653 _1,1171,141

75

91

137

117

30

16

28 17

2001 2002 2003 H1 2004

Total Earning Assets 3rd Party Funds

Total Financing Extended Net Profit Sharing

PAT

Financial Highlights (Rp Billions)

76.2% _74.6%

66.1%

89.6%

20.9%

13.0% 63.2%

39.3%

3.3% 3.6%

1.8% 7.4%

1.0%

12.6%

3.6% 4.4%

2001 2002 2003 H1 2004

LDR CAR

ROA ROE

Selected Financial Ratios (%)

Mandiri Sekuritas

440,914

161,913

181,122

98,509 123,957

115,448 64,478

206,376

18,410 27,272

16,330 28,862

5,602

351

2001 2002 2003 H1 2004

Other

Mutual Funds Corporate Bonds Shares

Govt. Recap Bonds Trading Gains

Marketable Securitas Portfolio Breakdown (Rp Billion)

62

1,083

1,148

348

712 733

380

47

66

20

18

99

44

53

22

6

2

11

13

16

2001 2002 2003 H1 2004

Assets Equity Profit

Operating Income Operating Expense Financial Performance (Rp Billion)

26 73 ₆₇ 53 8 65 91 ₉₂ 105 73 191 ₁₉₁ 28 107 226

2000 2001 2002 2003 H1 2004

Notification

Warning

Termination

Disciplinary Actions Taken (# of Employees) & Total Potential Operational Losses – All Sources

Recent Significant Fraud Proceedings

Branch/Year: Jakarta Tanjung Priok, 2002 Employee: ex Officer (CSO)

Potential Losses: Rp 53.83 b

Recovered: Rp 2.0b + assets Court Judgment: 17 year jail term

Rp 10b penalty

Repayment of Rp 40b Currently on appeal to the Supreme Court

Branch/Year: Jakarta Tanjung Priok, 2002 Employee: ex Officer (CSO)

Potential Losses: Rp 53.83 b

Recovered: Rp 2.0b + assets Court Judgment: 17 year jail term

Rp 10b penalty

Repayment of Rp 40b Currently on appeal to the Supreme Court

Branch/Year: Jakarta Prapatan, 2002 Employee: ex Spoke Manager Potential Losses: Rp 120b

Recovered: Rp 40.3b + assets Court Judgment: 15 year jail term

Rp 5.1b penalty

Repayment of Rp 77b Currently on appeal to the Supreme Court Branch/Year: Jakarta Prapatan, 2002 Employee: ex Spoke Manager Potential Losses: Rp 120b

Recovered: Rp 40.3b + assets Court Judgment: 15 year jail term

Rp 5.1b penalty

Repayment of Rp 77b Currently on appeal to the Supreme Court

Branch/Year: Pontianak, 2002

Employee: ex Hub Outlet Manager Potential Losses: Rp 95.8b

Recovered: Rp 95.7b Court Judgment: 4 year jail term

Rp 200m penalty No appeal

Branch/Year: Pontianak, 2002

Employee: ex Hub Outlet Manager Potential Losses: Rp 95.8b

Recovered: Rp 95.7b Court Judgment: 4 year jail term

Rp 200m penalty No appeal

Compliance & Discipline

67.6

10.8

210.5

156.5