2018Q1 Analysts Meeting (Long Form) FINAL

Indonesia’s Best Asean Prominent:

Grow above the market, portfolio quality focused, employer of choice in Indonesia

Accelerate in Growth Deepen Client

Integrate The Group

Segments

Relationship

• Become the first choice in consumer

• Strengthen Bank Mandiri’s position as banking, especially in the middle-

 Drive subsidiaries’ performance by

the No. 1 Corporate Bank income class

increasing synergies within the

• Grow in-line with the market in the • Focus on micro fixed income earners

Mandiri Group.

Middle Corporate segment and asset-backed consumer lending

 Increase distribution network

• Offering sector specific solution and • Selectively grow SME segment and

productivity

integrated product packages. productive micro by focusing on asset

 Strengthen presence in ASEAN

countries

quality

Current Achievements (1Q2018)

Current Achievements (1Q2018)

Current Achievements (1Q2018)

 Consumer Loans Rp79.8Tn (+14.7% YoY)

 Large Corporate Loans Rp255.0Tn (+9.0% YoY)  Micro Loans Rp85.6Tn (+22.6% YoY)

 Total income from subsidiaries Rp648Bn

 Wholesale Fee Income Rp2.2Tn (28.8% of  SME Loans Rp51.0Tn (-11.3% YoY)

(11.1% of EAT)

 Average CASA per branch grew by 4.4%

wholesale income)

How We Plan To Get There

Strategic Initiatives

Description

▪ Grow large corporate lending above the market growth rate

Focus on Core Business

and deepen relationships with existing clients ▪ Increase fee based income & wholesale current accounts

▪ Accelerate consumer lending growth: mortgages, auto loan

Expanding into

Underpenerated Low-Risk

and salary based loans

▪ Push retail CASA growth through Bank@Work ▪ Defend market share in SME

Segments

▪ Lower cost to income ratio through digitalization and

productivity enhancements

▪ Reduce NPL ratio by improving the loan underwriting process ▪ Increase utilization and sophistication of data analytics to

Strengthen The Foundation

enhance insights and cross-selling.

Our Portfolio Mix Would Be More Retail-Focused

Assets Composition Mix 1)

Liabilities Composition Mix 1)

Consumer

30% Micro

Time Deposits

SME

Middle Corporate

CASA

Large Corporate

1Q18

1Q18

1) Bank-only figures

Stable Macroeconomic Indicators

Our View on Macroeconomic By the Inflation remained stable

Indonesian Economic Growth Improved

in 4Q17

End of 2018

Headline inflation (% YoY)

10 Core inflation (% YoY)

BI Rate 9

7 Days RR 6.5

GDP growth

Inflation

USD/IDR

Benchmark Rate

Q 1 2 Q 3 Q 4 Q 1 Q Q 2 Q 3 Q 4 1 Q 2 Q 3 Q Q 4 1 Q 2Q14 3Q14 4 Q 1 Q Q 2 Q 3 4 Q 1 Q Q 2 Q 3 4 Q 1 Q 2 Q 3 Q Q 4

Source : CEIC, Bloomberg

Tn

43 4.1 1Q17

(% 1Q17

Rp

gi

x( 2017

13.8 a 2016

er T 2015

t Mar es

Aft

ter

ng

In

arni 2011

9.2 E 2010 Ne

(% Y (66

ve

Loan 2017 Tn

ti Rp

ng

osi

ormi

OP 6

1.9% 2013 e e b

Rp

P b ld P

erf

1.9% 2012 u ld u

2.2% 2011 w w IM

PPOP , ng N

Non P

2.8% 2009 2016 2016 in in t t n

n e e m m ay

Turni

Key Financial Highlights

Bank Mandiri’s 1Q2018 performance continues to improve:

r Loans

1Q 2017

1Q 2018

7.1% Gross NPL Ratio

Rp 656.2 Tn

Rp 703.0 Tn

-66 bps

Net NPL Ratio

-17 bps

Low Cost Funds Ratio

94 bps

[Low Cost Funds (Rp)]

Rp 465.6 Tn

Rp 497.2 Tn

NIM

-8 bps Efficiency Ratio

72 bps PPOP

6.7% Earnings After Tax

Rp 10.8 Tn

Rp 11.5 Tn

Rp 4.1 Tn

Rp 5.9 Tn

Fine Tuning Growth Momentum

Loans by SBU + Subsidiaries Deposits by Product – Consolidated

(Rp Tn) Y-o-Y (Rp Tn)

Y-o-Y

r Total

FX Time

Rp Time

FX Demand

Rp Demand

Mdl. Corp

FX Savings

Rp Savings

Lrg Corp+Inst.+SAM

Q' 1 Q' 2 3 Q' 4 Q' 1Q

Q' Q' Q' 14 14 14 14 '15

2Q

Q'

4 Q'

1 Q'

Q' 2 3 Q'

Q' 4 Q' 1 2 Q'

Q' 3 4 Q'

Q' 1 Q'

Q'

Q'

Q'

Q'

Q'

Q'

Q'

1 2 3 4 1 2 3 4 1Q

2Q

Q'

Q'

Q'

Q'

15 15 16 16 16 16 17 17 17 17 18 14 14 14 14 15 15 15 15 '16

Strong and Liquid Balance Sheet

Assets

1Q 2018

1Q 2017

Liabilities

1Q 2018 1Q 2017

Cash

186,246 178,124 Current Acc w/ BI & Other Banks

21,213 Current Account

310,936 287,519 Placement w/ BI & Other banks

62,665 Savings

272,106 265,471 Receivables (Acceptances & Others)

73,767 Time Deposits

Marketable Securities

769,288 731,115 Government Bonds

58,695 Total Deposits

16,878 9,026 Provisions of Loans

Loans (Gross)

656,211 Securities Issued

20,706 33,893 Net Loans

(34,755) Deposits from other banks

187 195 Reverse Repo

621,457 Subordinated Debt

41,497 34,536 Other Provisions

2,309 Borrowings

15,058 15,783 Deferred Tax Assets

(1,723) Other Int. Bearing Liabilities

69,346 57,935 Other Assets

5,514 Non Int. Bearing Liabilities

57,499 Equity incl. Minority Interest

Total

1,098,158 1,034,307 Total

Lower Credit Cost

Summary P&L (Rp Bn)

Interest Income

-5.0% Interest Expense

Net Interest Income

Net Premium Income

Net Interest Income & Premium Income

Other Non Interest Income * Other Fees and Commissions

-14.6% * Gain fr. sale & Incr. in Val & Sale of Bonds

Total Non Interest Income

Total Operating Income

-3.5% Provisions, Net

2.7% Personnel Expenses

-11.2% G&A Expenses

-17.6% Other Expenses

Total Expense

-13.3% Profit from Operations

6.5% Non Operating Income

79 -134.2% Net Income Before Tax

Net Income After Tax

LDR Increased to 91.2%, Bank Only Loan Growth of 5.1%

Quarterly LDR

Quarterly Loan Segment Details

Break Y-o-Y

(Consolidated)

(Bank Only)

down r

Q' 1 2 3 4 1 2 3 4 1 2Q 3Q 4 1 2 3 4 1 2 3 4 43 36.838.2

12 12 12 12 13 13 13 13 14 '14 '14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 3 9 40 32.8 .5 .3

QoQ Growth (%)

YoY Growth (%) 102

Q' 4 12.2% 1 10.2% Q' 3 Q' 9.5%

Large Corp

Mdl. Corp SME

Q' 1 2 Q' 3 Q' 4 Q' 1 Q' Q' 2 Q' 3 Q' 4 Q' 1 Q' 2 Q' 3 4 1Q 2Q 3 0.0%

Q' -3.6% Q' 4 Q' -0.9% Q' 1 2 Q' 3 Q' Q' 4 Q' 1 2 Q' Q' 3 4 Q' 1 Q'

12 12 12 12 13 13 13 13 14 14 14 14 '15 '15 15 15 16 16 16 16 17 17 17 17 18

As of March 2018; Non-consolidated numbers

Rp 106.4 Tn in Loans Disbursed in 1Q 2018

Loan Movement – 1Q 2018 Bank-Only Loan Disbursement by Segment – 1Q 2018 Bank-Only Rp Tn

Rp Tn

4Q'17 Disburs. Install. Pay-off FX Impact Write-Offs 1Q'18

Micro Consumer Total

Corporate Corporate

Total CAR at 20.9% with ROE at 13.8%

Bank Only - Capital & RWA Movement Profit After Tax & ROE (Consolidated)

Rp Bn 23.2% 24.6%

Total Capital (Rp Tn)

• CAR inclusive of Credit and Market Risk started in December 2004 • CAR inclusive of Credit, Market and Operational Risk started in January 2010

1.1Tn from GIAA Recovery

Q1 Bank-Only NIM of 5.6%

Yield on Assets (%)

Avg Loan Yield

Avg Bond Yield Avg CoF

Cost of Funds (%)

QQQQQQ 4 1 2 3 4 4 1 2 3 4 2 3 4 1 2 3 4 1 2 3 4 '11 1 '12 '12 '12 '12 '13 '14 '14 '14 '14

** 4Q 15 / 3Q16, If we adjust the interest income from special repayment last year, NIM would be 6.5% / 6.0% , YoA would be 9.5% / 8.9%, Average FX Loan Yield 4.2% / 4.2%

Greater Detail On Fee-Based Income

Q-o-Q Non-Loan Related Fees & Commissions

(10.2%) Opening L/C, BG & Cap. Market (Custodian & Trustee)

Administration Fees

12.2% Transfer, Retail Transaction

(13.1%) Credit Cards

(18.1%) Mutual Fund, ORI & Bancassurance

(21.5%) Payroll Package

(4.6%) Foreign Exchange Gains

(17.4%) Cash Recoveries

324.8% Others Income

Gains Fr Sale & Incr. in Value of Sec. & Gov. Bonds

(12.8%) Total Fee Based Income (As Reported)

(7.3%) % of Non Loan Related fees to total opr. income

1Q 18 Cost to Income Ratio of 43.4%

Quarterly Consolidated Operating Expenses & CIR

Breakdown of 1Q 2018 Operating Expenses

Personnel Expenses

Base Salary

Other Allowances

Post Empl. Benefits

4 Total Personnel Expenses

3 3 3 G&A Expenses

IT & telecoms

Occupancy Related

Promo & Sponsor

Transport & Travel

Goods, Prof. Svcs. & Oth.

Employee Related

3 3 3 3 3 3 4 3 Total G&A Expenses

Other Expenses

Total Operating Expenses

G&A Expenses

Personnel Expenses

Diversifying our Strength in Wholesale L ending…

Top 10 Industries in Large Corporate Lending Expansion Top 10 Industries in Middle Corporate Lending Contraction 1Q ’18 – 1Q’17 (Total Rp21.1Tn)

1Q ’18 – 1Q ’17 (Total –Rp11.0 Tn)

Mfg-F&B 4.60

Mining-Metal Ore 3.44 37%

Real Estate 3.19 -37%

Bus Serv 2.79 -14%

Mfg-P&P 1.01 50%

Real Estate

Water 0.95 #DIV/0

Mfg-P&P

Wholesale Transactions Driving CASA

Cash Management Users

Mandiri Cash Management*

Value (Rp Tn)

# of Trx (000)

Excluding Mandiri Transaction System

Consumer and Micro Are Key Retail Growth Drivers

Retail to Total Loans

Micro (Rp Tn)

Growth 1Q2018 150

Growth 1Q2018

Retail to Total Loans

57.5 YoY -11.3%

Tactically Growing Micro Banking..

Quarterly Micro Loan Balances by Type

Micro Loan Growth by Type

% to Total

Gov't Program (KUR)

YoY

Loan Type

Micro

Growth

Salary-Based Loan (KSM)

Loan

70.0 Micro Productive Loan

Government Program

(KUM)

61.3 (KUR)

Salary-Based Loan

(KSM)

Productive Loan

(KUM)

Total Micro Loan

…as well as Consumer Lending, which Rose 14.7% Y-o-Y

Quarterly Consumer Lending Balances by Type

Consumer Lending Growth by Type

Rp Tn

90.0 Others

% to Total

80.0 Auto Loans

YoY

75.0 1.2 Loan Type

Consumer

Credit Cards

Growth

Loans

70.0 Home Equity Loans

Others

Total Consumer Loans

Auto Loans

Credit Cards

Home Equity Loans

Mortgages

Total Consumer

Time Deposit Rates Fell 30 bps QoQ

Retail Deposit Analysis – Bank Only (Rp Tn) Average Quarterly Deposit Costs (%)

Rp Savings Deposits

FX Savings Deposits

Rp Demand Deposits

FX Demand Deposits

Rp DD CASA as % of total deposits

Rp Time Deposits

FX Time Deposits

Rp Savings

1 Q' 0.0% 4 1 2 3 4 1 2 3 4 1 2 3 4Q 1 2 3 4 1 2 3 4 1 2 3 4 1 12 12 12 12 '13

Strong Growth in E-Channel Transaction

Quarterly Transaction Value (Rp Tn)

# of Subscribers (Mn)

Debit Cards***

Mobile Banking

280 Internet Banking

Mobile Banking*

Internet Banking**

* incl. Mandiri Online Mobile App

*** # of issued Debit Cards

** incl. Mandiri Online Web

Retail Payment System Gaining Traction

Volume Mandiri Business

Fee Income from e-channel Tx (Rp Bn) Numbers of EDC

Saving Account (Rp Tn)

YoY Growth

Gross NPLs 3.3%, Coverage at 136%, Category 2 at 4.9%

NPL Movement - Consolidated

Category 2 Loans

4Q'17 1Q'18

Gross NPL Ratio

NPL Coverage Ratio

Wholesale (Rp Tn)

Retail (Rp Tn)

Special Mention/ Total Loans

Q1 2018 Total NPLs of Rp 20.6 Tn

Non-Performing Loan Movements (Rp Tn) – Bank-Only Movement by Customer Segment (Rp Bn)

Large Corp. Middle Corp. SME Micro Cons

4Q' 2017 UG to PL DG to NPL Payment Write-Offs Other

Non-Performing Loans by Segment

Large Corp.

Middle Corp.

* Excluding loans to other banks

1Q18 Net Downgrades of 0.61% On Loans

Total Loans

Net Upgrades(%) / Downgrades(%) #

1Q 2018 Details

DG to UG to Loan

1Q’18

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

NPL PL Background

Balance

% % Large Corp.

(Rp Tn)

- - Mdl. Corp.

1.97 3.02 0.16 3.87 1.13 1.07 0.14 1.33 1.47 1.55 0.08 SME

51.0 1.31 1.50 1.36 0.63 1.20 1.65 1.23 1.55 1.53 1.65 0.12 Micro

85.6 1.37 1.45 1.35 0.84 0.94 1.09 0.86 0.60 0.67 0.72 0.05 Consumer

Total

#% downgrades and upgrades are quarterly % figures

1Q18

red

.2 3 4Q17

ctu

tru

es 2Q17 R

g 1Q17

n .4

ei 4Q16

ter

2Q16

Af 11

1Q16

ing

3 .6 1 4Q15

or

.7 5 3Q15

erf

-P

.2 4Q14 to No s 0

on ad

3Q14 C ard

it

lli wngr

2Q14 d

0 .8 re C .

e xcl

.0 Tri 0 .6

Do

13.6 20.5 1Q '18

49 49 14.8 13.0 22.1 3Q '17

52 14.5 14.7 23.0 .9 4Q '17

48 15.1 11.0 22.6 .3 2Q '17

47 16.0 10.0 21.3 .2 Rp .2

47 15.5 11.1 20.5 .3 4Q '16 39 9.3 13.2 16.8 .1 3Q '16 34 8.9 11.2 13.8 .9 2Q '16

28 5.0 9.7 13.5 at 1Q '16

28 3.9 10.0 13.8 .4 4Q '15

Enhancing Synergies & Value from Subsidiaries

Syariah Banking

Investment Banking

Insurance

Niche Banking

Multi-Finance

Total Assets

Total Disbursement Rp 93 Tn

Bond Trading Volume

Total Assets

Total Loans

Rp 6.6 Tn Total Financing

Rp 44.3 Tn

Rp 28.4Tn

Rp 11.9 Tn

Net Interest Margin Rp 61.2Tn

Equity & FI Underwriting

Annual FYP

Net Interest Margin

2.9% Total Deposits

ROA Rp 82.6Tn

Equity Trading Volume

Rp 56.3 Tn

• Remains the leader in

• Penetrate Bank Mandiri’s syariah financing

• Expansion of business to

• Providing end-to-end bank • Enhancing operating

network and customer • Capital injection program

fully utilize current capital

assurance business

model

base to develop the over 3 years

base

• Continue to build cross-sell • Improving risk

multifinance segment with • Cross-selling syariah a strong focus on new 4 services to broad range of segments IT

• Cross-sell capital market

opportunities in various

management systems and

• Bancassurance products to wheel vehicles. • Improving productivity customers

products to Mandiri

Mandiri customers

• Refocus business toward

complete our suite of

higher fee income

consumer offerings

Bank Mandiri’s 2018 Corporate Guidance

2018 Target

1Q2018 Realization

Gross Loan Growth (YoY)

7.1% Low Cost Deposits

11.0% - 13.0%

Rp 497.2 Tn Net Interest Margins

Rp 590 Tn

5.8% Efficiency Ratio

5.7% - 5.8%

43.4% Gross NPLs

3.3% Cost of Credit

2.8% - 3.2%

2.0% - 2.2%

Operating Performance

Highlights

Large Corporate, Government & Institutions

Performance to Date: 1Q2018 (Rp Bn)

Strategies for 2018

1. Focusing on Anchor Clients and

penetrating through using of Transaction Banking

2. Account Plan implementation for top

76 Corporate Banking Customers.

3. Provide ‘one stop service’ solutions for

customer’s transactions and create

new business process to accelerate

the execution of Account Plan including effective and responsive Complaint Handling.

4. Strengthen business alliance with Mandiri InHealth & Mandiri DPLK to ease corporate customers to manage

their needs in health insurance & pension fund / severance

Treasury & Market

Performance to Date: 1Q2018 (Rp Bn)

Strategies for 2018

1. Implement client segmentation strategy for Treasury anchor and non-

5 anchor clients.

2. Increase retail coverage of fixed income and structured products.

3. Develop new FI client coverage model and implement segmentation strategy.

4. Revitalize overseas offices’ function as

a distribution channel, and introduce new business models.

5. Enhance retail brokerage program in

Mandiri Sekuritas.

6. Upgrade business license status of

Mandiri Sekuritas Singapore Office.

Middle Corporate

Performance to Date: 1Q2018 (Rp Bn)

Strategies for 2018

1.Tighten risk management practices by centralizing big ticket loan approval from

regional office to head office

2.Focusing on clients within the value

chain / business ecosystem of our large corporate banking clients

3.Selectively growing the business to sectors and regions as stipulated in bank-wide portfolio guidance

Middle Corporate

Solid & Stable Source of

Expanding Scope of Distribution, 1Q 2018

Low Cost Funds

Loans = Rp 10.5 tn

Loans = Rp 3.0 tn

Loans = Rp 3.1 tn

Funds = Rp9,4 tn

Funds = Rp 4.6 tn

Funds = Rp 2.0tn

FX 7.77 9.00 -13.70%

Saving Deposit*

Total CASA

Total Funding

Java and Bali Loans = Rp 125,6tn Funds = Rp 42.4 tn

CASA Ratio = 69.47% Funding from Java & Bali = 72.54% of total funding

* Business Savings Product

Micro & SME:

Selectively growing our high margin business

Performance to Date: 1Q2018 (Rp Bn)

Strategies for 2018

1. Specialized sales team in Productive Loan (KUM) & Government Program (KUR)

2. Improving incentive scheme based on product profitability and loan quality

3. KUM profiling

4. Creating relationship

model, specifically on Salary-Based Loan (KSM) by approaching the management of the borrower’s

company

5. Widening the penetration of KSM products by using the Bank@Work Project

6. Simplify the SME loan processing

7. Adjust the manual of SME products

Small Medium Enterprise :

Solid & Stable Source of

Scope of Distribution, 1Q 2018

Low Cost Funds*

Loans = Rp 8.6 tn

Loans = Rp 4.3 tn

Loans = Rp 5.2 tn

1Q

1Q Growth

Product

Funds = Rp 19.2 tn

Funds = Rp 7.1 tn

Funds = Rp 8.0 tn

Medan Pematang siantar

Total CASA

Jambi Banjarmas Tangerang

B.Lampung

Bandung Semarang Denpasar

Java and Bali Loans = Rp 27.0 tn Funds = Rp 115.1 tn

Branch Class that covered SME Customers

CASA Ratio = 83.3%

A.1 : 36

B.2 : 68

Funding from Java & Bali = 77.03%

A.2 : 47

B.3 : 70

of total funding

Kredit SME Kebun pada tahun 2018 dipindahkan ke Kantor Pusat sebesar 5.9Tn

B.1 : 37

B.4 : 16

Consumer Banking:

Significant growth in spread and fee income

Performance to Date: 1Q2018 (Rp Bn)

Strategies for 2018 Mortgage:

1. Still using Risk-Based Pricing relative to

the market

2. Automation in notifying loan agreement

to the borrowers

3. Managing the onboarding borrowers by the branches

4. Sharpening sales model in order to

managing both primary and secondary

market

Auto:

1. Marketing program with appointed RAC

2. Using disbursement of Auto Loan as an element of KPI, separated for Region/Area/Branch Offices’

3. Campaigning the use of Mandiri Mobile Apps to increase the branch’s referrals

4. Piloting e-Marketplace (the digital platform for Auto Loan marketing)

InHealth – Opportunity to Increase Fee Income and Contribute to the Insurance Portfolio

Leveraging our institutional, corporate, &

commercial customers

We have over 700 institutional, 300 corporate, and 1,700

commercial customers with the potential to become members

50 of InHealth

0 Providing solutions through our banking

1Q17 1Q18

products to InHealth healthcare provider

Profit (Rp Bn)

GWP (Rp Bn)

• InHealth has 6,880 healthcare providers and recorded over

Rp 454 Bn in claims year to date 2018

• Bank Mandiri will leverage the hospital network as InHealth’s

partner to increase transactions through enhanced cash

management products

• Bank Mandiri also will provide retail packaged products for

all the doctors as InHealth’s partner

Cross-selling Mandiri products to InHealth

members

InHealth earned premium payments of Rp 459Bn in 2018 year

to date from clients. Going forward, Bank Mandiri will

encourage the use of cash management products through

1Q171Q18

Bank Mandiri ’s distribution channels and cross sell other

Total Member

# of Providers

products to over 1.5 Mn InHealth members.

41

se

t Qu

al

ity

Issues

Ne

In

ter

es

tM

ar

gi

Cos

t of

Fund

Yo

CoF

IM

6.3%

6.3%

6.6%

6.6%

7.5%

6.9%

6.9%

7.0%

7.3%

7.1%

7.3%

7.2%

7.3%

6.3%

6.2%

6.0%

6.2%

6.3%

6.3%

6.4%

6.5%

6.5%

7.2%

6.7%

6.7%

7.1%

7.4%

6.9%

6.4%

4Q '07

4Q '08

4Q '09

4Q'10

4Q'11

1Q'12

2Q'12

3Q'12

4Q'12

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

12.4%

13.0%

12.7%

12.3%

13.0%

11.5%

12.0%

12.2%

12.4%

12.3%

12.4%

12.1%

12.0%

11.1%

11.1%

11.0%

10.9%

10.6%

10.0%

10.6%

10.9%

10.8%

10.9%

11.1%

11.1%

11.4%

11.4%

11.5%

11.0%

5.4%

5.7%

5.6%

5.1%

5.2%

4.5%

4.7%

4.5%

4.5%

4.6%

4.0%

4.0%

4.1%

4.4%

4.5%

4.5%

4.4%

4.4%

4.3%

4.2%

4.2%

3.8%

3.7%

3.7%

3.6%

3.5%

3.5%

3.6%

3.4%

Mandiri Tunas Finance: Total Financing YTD of Rp 6.6 Tn

Total Disbursement and the Breakdown for Joint Financing and Non JF

Breakdown of Financing

1Q 2018 Performance

1Q

1Q

Change

Used Car

Non JF

Loans (Rp Bn)

43 6 99 Net Income (Rp Bn)

Approval Rate

71 64 5 162 70 68 36 Disbursement (Rp Bn)

Supporting Materials

2016-2020 Bank Mandiri Corporate Plan – Accelerate In The Growth Segments

Product Focus

Key initiatives

1. Improve processing speed

1 Mortgage

2. Tapping higher ticket size

3. Target developer relationships

1. Streamline segment split between MTF and MUF

Loan Growth

2 Auto Loan

Engine

2. Utilize existing Mandiri branch network for growth

1. Combine consumer personal loans and micro

3 Personal Loan & Micro KSM

salary-based loans

2. Leverage on micro’s distribution footprint

3. Tap into our payroll customer base

1 Dominate payroll segment using Bank@Work for corporate and commercial customers

Funding Engine

2 Improve transaction banking offering to tap cash management for anchor clients’ value chain

Bank Mandiri Remains on Track to B ecome Indonesia’s Most Admired Financial Institution

# of Accounts

# of Outlets • Deposit 23.05 Mn

# of new Accounts (YTD)

2,633 Branches • Loan 1.76 Mn

• Deposit 1.94 Mn

3,390 Micro Outlets • Loan 178,016 (3) including mortgage

17,429 ATMs accounts of 147,192

Cash Management e-Channel Tx

# of Cards Issued

• 22,369 Customers • 35.1Mn Trx in

• 752 Mn Trx YTD

• Credit

4.80 Mn

• -3.2% YoY Growth

• Debit 17.71 Mn 2018 • Prepaid 14.0 Mn (2)

Subsidiary Income

Retail Loans

Alliances

• Rp 216.4 Tn • Bank Guarantee: Rp9.3Tn

• Total Rp 647Bn

• 35.2% of Total Loans • ForEx: USD3.7Bn

• Sum of income from

11 subsidiaries

• Trade: USD7.8Bn

(11.0% of EAT)

(1) Small Business, Micro and Consumers (2)

Excluding Mandiri Transaction System (3)

Incl. KSM Centre, MMU Cash outlet and MobilMU

We are Preparing For Our Next Transformation

Market Cap: IDR 251.4 Tn Revenue Market Share: 12.8% ROE: 21.0%

Market Cap: IDR 136.9 Tn

Gross NPL: 2.15%

Revenue Market Share: 13.4% Net Profit: IDR 9.22 Tn

ROE: 24.24%

Indonesia’s Best

Gross NPL: 2.42%

Market Cap: IDR 60 Tn

Asean Prominent

Revenue Market Share: 8% Net Profit: IDR 2.41 Tn

Bank

ROE: 10%

Gross NPL: 16.3%

3 rd Transformation

• Business transformation

• Developing integrated Human

2 nd Transformation

Capital & IT • Focusing on non-organic growth

• Wholesale transaction banking • Retail payment & deposits

1 st Transformation

• Retail financing

• Building a winning organization • Delivering tailored proposition

for priority segments • Building alliances

• Strengthening risk management

…But We Need to Consider Growing Beyond the Bank

M&A

Finding Business Partners

Bank

Our Deal size has continued

& Group

to move higher

• JV with AXA (AMFS). Gross Written

• BSHB  Rp 40bn (2008)

Premiums Rp1.5tn. +27% YoY

• MTF  Rp250 bn (2009) • Revenue YTD (Bank Only):

• JV with Tunas Ridean (MTF). Total

• Inhealth  Rp 1.3 tn (2013) • Profit from Subsidiaries:

Rp17.2Tn (2.3% YoY)

Financing Rp4.1tn. 15% YoY

• InHealth  partner BPJS

Rp647Bn (11.0% of EAT) • 1Q Revenue Wholesale vs

Retail : Rp 7.7Tn vs Rp 9.5Tn

1Q 2018 PPOP increase by 6.8% YoY

1Q 2017

1Q 2018

Rp Bn

Rp Bn

Increase 6.8%

Pre-provision Premium Income

Net Interest &

Fee-Based Income Overhead Expenses

Pre-provision

Net Interest &

Fee-Based Income Overhead Expenses

& Others

Operating Profit

Premium Income

& Others

Operating Profit

Notes :

1. Fee based income excluding gain on sale & increasing value GB & securities

2. Overhead expenses + others excluding provisions

Committed to Improving Shareholder Value

Reduce Cost of Funds

Business Strategy

Improve Assets Yield Diversify into Fee Income

Competitive. sustainable

Reduce Provision/Loan

returns. with

Support Strategy

Improve Cost Efficiency

above-average rates of growth

 Leverage on cash generator

Strategic

(wholesale) to accelerate growth

Alliances

 Diversity into fee income

…and Offer Innovative Payment Solutions

Pre-Paid Transaction Volume (000s)* Pre-Paid Transaction Value (Rp Mn)* #Pre-Paid Card (000s)

1 2 2 1 2 3 4 5 4 4 3 48 89 84 12 86 14 447 381296328 406 1 53 1 543 5 48 49 50 58 4 59 64 84 85 85 85 Q 1 Q 2 3 Q Q 4 1 Q 2 Q Q 3 Q 4 1 Q 2 Q 3 Q 4 Q 1 Q 2Q 3 Q 467 Q 4 1 Q 2 Q 3 Q Q 4 Q 1 Q 2 3 Q Q 4 1 Q 2 Q Q 3 4 1 20 30 1 42 30 41 50 4 5 Ma Ju Se De Ma Ju Se De Mar Ju Se De Ma Ju Se De Ma Ju Se De Ma Ju Se De Ma Ju Se Q De Q Q 1 0000000 Q 2 3Q 4 Q 1 Q Q 2 Q 3 4 Q 1 Q 2 Q 3 Q 9 15 4 Q 1 Q 2 Q Q 3 Q 4 Q 1 2 Q 3Q 4 Q Q 1 Q 2 3 Q 4 Q Q 1 Q 2 3 Q Q 4 1 Q n p n p n p n p n p n p n p

11 r- -11 -11 11 12 r- -12 -12 12 -13 -13 -13 13 14 r- -14 -14 14 r- 15 -15 -15 15 16 r- -16 -16 16 17 r- -17 -17 17 *volume for quarter

*volume for quarter

Strong Microfinance Growth

51

Outstanding – Rp Tn

Booking Volume – Rp Tn

Asset Spreads(%)

Mandiri Microfinance Outstanding Mandiri Market Share

Our Growth Remains On Track

Rp Billion

12.90% 33.5% Gross NPL Ratio

3.46% (3.5%) Net NPL Ratio

20,640 49.5% Subsidiary EAT

*) CAGR based on EAT 2006 Rp. 238.28 bn

Building a Strong Savings Deposit Franchise…

Savings Deposit Growth

Transaction channel growth

Savings Deposits (Rp tn) As % of Total Deposits

Withdrawal / Inquiry

National Share of Savings Deposits (%)

Avg ATM Daily Vol (000)

Quarterly Call Center Trans. (000)

Quarterly Mobile Trans. (000)

Regulation Summary: Capital Based on Risk Profile. Business Activity & Branch Networking

Bank Mandiri’s Capital Requirement Based on our Risk Profile Bank Mandiri Capital Requirment

Risk Profile

CAR Min

“BUKU”

Tier 1 Capital

1 – Low

1 < Rp 1 Trillion

2 – Low to Moderate

Bank Mandiri is under the “LOW

9% - < 10%

2 Rp 1 Trillion - < Rp 5 Trillion 3 – Moderate

to MODERATE” risk profile

10% - < 11%

3 Rp 5 Trillion - < Rp 30 Trillion 4 – Moderate to High & 5 - High

Bank Mandiri is under “BUKU 4”.

11% - 14%

Minimum 70% loans and financing to the productive sector required to be

4 ≥ Rp 30 Trillion

met at the end of June 2016.

Branch Networking by Zone

Branch

Sub Branch

Cash Office

Continuous End to End Improvement in the Micro Business

Origination & Targeting

Maintenance & Review

Collection

• Scorecard Refinement •Training & Capacity

Operational Risk

Development of

•1,444 MKS/MMC/Back

Managers

Office/Other Position and 247

Building New

•MKA Revitalization (focus Managers on credit analysis &

•FIN-1 Collection System

Business

•Biweekly RTTA (Risk.

verification)

Threshold. Trigger & Action

•Change in Organization

•Loan Factory for Fixed

Plan) Review Forum

•Crash Program for NPL

•3,720 EDC (hand held)

Income Loan

•Mobile Sales and

debtors settlement

rolled out

•Savings

Maintenance System for MKS

•Early Warning System

•Incentive Scheme

Development

•Pension Loans

Refinement

•Joint Cooperation with Mandiri

•Post Transaction Control

AXA General Insurance (MAGI)

(Welcome Call)

•Joint Cooperation with Bank Syariah Mandiri (BSM) – for Gold Pawning

56

Dr

ove

Rp

10

.02

Tn

in

Transacti

on

QR

ec

ei

vab

les

Tot

al

ar

Quart

erl

Sal

es b

Typ

eo

Tr

an

sact

io

Rp

Bn

Strengthening Risk Management & Monitoring System

Wholesale Customer by Rating Summary of Risk Management Initiatives

High Risk (Rating C- G)

• Wholesale Transaction: Optimize credit decision process by focusing on quantitative factors of

Medium Risk (Rating BBB – B)

analysis. redefining clear role of risk team . and

Low Risk (Rating AAA – A)

aligning RM Organization into business expansion

Credit

• High Yield Business: Assign dedicated team. set up

loan factory. enhanced business process (incl. tools.

monitoring & collection system. policy )

• Optimize capital by implementing ERM & VBA

• Consolidate risk management of subsidiaries

• Development of risk measurement system for derivative & structured product (Summit)

• Implement Market Risk Internal Model

• Intraday Limit Monitoring

Market

• Enhance Policy & Procedure for Treasury & ALM

• Enhance FTP (Fund Transfer Pricing) method

• Develop liquidity stress test & safety level

• Develop measurement of capital for IRBB

• ORM implementation in all unit. incl. overseas offices

& subsidiaries

Operational

• Bring Op. Risk top issues into Management

• Review Op. Risk on new procedures & new products

Key Quarterly Balance Sheet Items & Financial Ratios

IDR billion / % (Cons)

Gross Loans

7.13% Government Bonds

2.71% Total Assets

6.17% Customer Deposits

5.22% Total Equity

8.81% RoA – before tax (p.a.)

33.98% RoE – after tax (p.a.)

30.69% Cost to Income Ratio

1.69% NIM (p.a.)

1.90% Gross NPL / Total Loans

-16.58% Provisions / NPLs

1.98% Tier 1 CAR *

-0.75% Total CAR incl. Credit, Opr & Market Risk*

-0.99% EPS (Rp)

-28.23% Book Value/Share (Rp)

* Bank Only

59

.2

%Y

-o

-Y

to

Rp

,098

Tn

Additional Factors

 Aggregate of Rp 62,199 Tn (US$ 4.518 Bn) in written-off loans as of end-of March 2018, with significant recoveries and write back on-going:

Rp 0.918 Tn (US$94.5m)

Rp 0.683 Tn (US$68.8m)

Rp 1.2 Tn

 Q3’13: Rp 0.630 Tn (US$54.4m)

Rp 1.08 Tn

 Q4’13:

Rp 0.845 Tn (US$69.4m)

Rp 0.818 Tn (US$ 83.2m)

 Q1’14:

Rp 0.552 Tn (US$48.7m)

Rp 3.408 Tn (US$ 378.5m)*

 Q2’14:

Rp 0.765 Tn (US$64.5m)

Rp 1.531 Tn (US$ 249.3m)

 Q3’14:

Rp 0.566 Tn (US$46.4m)

Rp 2.309 Tn (US$ 211.8m)

 Q4’14:

Rp 0.803 Tn (US$64.8m)

 Q1’15:

Rp 0.553 Tn (US$42.4m)

Recoveries  Q4 ‘09:

Rp 0.775 Tn (US$ 82.5m)

 Q2’15:

Rp 0.646 Tn (US$48.5m)

 Q1 ‘10:

Rp 0.287 Tn (US$ 31.6m)

 Q3’15:

Rp 0.751 Tn (US$51.3m)

of Written

 Q2 ‘10:

Rp 0.662 Tn (US$ 73.0m)

 Q4’15

Rp 1.089 Tn (US$79.0m)

off Loans  Q3 ‘10:

Rp 0.363 Tn (US$ 40.7m)**

 Q1’16

Rp 0.570 Tn (US$43.0m)

 Q4 ’10:

Rp 1.349 Tn (US$149.7m)

 Q2’16

Rp 0.645 Tn (US$48.9m)

 Q1 ‘11:

Rp 0.468 Tn (US$53.8m)

 Q3’16

Rp 0.833 Tn (US$63.8m)

 Q2 ‘11:

Rp 0.446 Tn (US$51.9m)

 Q4’16

Rp 1.145 Tn (US$85.0m)

 Q3 ‘11:

Rp 0.508 Tn (US$57.8m)

 Q1 ’17

Rp 0.686 Tn (US$51.5m)

 Q4 ‘11:

Rp 0.78 Tn

(US$86.1m)

 Q2’17

Rp 0.886Tn (US$66.5m)

 Q1 ’12:

Rp 1.647 Tn (US$180.1m)

 Q3 ’17

Rp 0.965Tn (US$71.7m)

 Q2 ’12:

Rp 0.721 Tn (US$76.8m)

 Q4’17

Rp 1.199Tn (US$88.4m)

 Q3 ’12:

Rp 0.489 Tn (US$51.1m)

 Q1’18

Rp 0.965Tn (US$70.1m)

 Q4 ’12:

Rp 0.885 Tn (US$91.8m)

* including the write-back of RGM loans totaling Rp 2.336 Tn ** Including the write back of Kharisma Arya Paksi loans totaling Rp 0.124 Tn and Gde Kadek Rp 0.59Tn.

Summary Quarterly Balance Sheet 1Q 2018 – 1Q 2017

Summary BS

% Total Assets

Rp (tn)

Rp (tn)

Rp (tn)

Rp (tn)

Rp (tn)

21.03 24.27 21.03 33.49 21.21 -0.85% Current Acc w/ BI & other banks

71.81 62.52 68.84 75.64 62.67 14.58% Placement w/ BI & other banks

60.13 74.65 76.59 58.82 73.77 -18.49% Securities Net

63.79 59.61 60.87 59.46 58.63 8.80% Government Bonds

98.34 102.54 2.71% - Trading

4.35 3.49 3.12 3.23 3.07 41.53% - AFS

86.88 89.07 86.24 84.17 89.99 -3.46% - HTM

14.10 10.85 10.84 10.94 9.47 48.85% Loans

656.21 7.13% - Performing Loans

630.1 7.86% - Non-Performing Loans

23.38 25.27 25.72 26.07 26.11 -10.47% Allowances

-34.76 -8.74% Loans – Net

621.46 8.02% Total Deposits – Non Bank

731.12 5.22% - Demand Deposits

178.12 4.56% - Savings Deposits

287.52 8.14% - Time Deposits

265.47 2.50% Shareholders’ Equity*

Summary Quarterly P&L 1Q 2018 – 1Q 2017

Y-o-Y Q-o-Q Summary P&L

Rp (Bn)

Rp (Bn)

Rp (Bn)

r (%) r (%)

Av.Assets*

Av.Assets*

Av.Assets*

-1.4% -5.0% Interest Expense

Interest Income

-10.2% -11.3% Net Interest Income

3.2% -2.0% Net Premium Income

Net Interest Income & Premium Income

5.2% 937.1% -1.7% Other Non Interest Income

1.2% -9.8% *Foreign Exchange Gains – Net

*Other Fees and Commissions

-1.2% -17.4% *Gain from Incr. in value of sec & sale of

Gov.Bonds

Total Non Interest Income

13.6% -8.2% Total Operating Income

6.5% -3.8% Provisions, Net

-29.0% 2.7% Personnel Expense

8.6% -11.3% G&A Expenses

5.7% -17.6% Other Expenses

5.6% -3.9% Total Expense

7.0% -13.3% Profit from Operations

42.3% 6.5% Non Operating Income

13.3% -134.4% Net Income Before Tax

42.4% 5.0% Net Income After Tax

Breakdown of Interest Income & Interest Expense

Interest Income

Rp (Bn)

Rp (Bn)

Rp (Bn)

Loans

-2.5% Government bonds

-7.6% Marketable Securities

7.5% Consumer financing

5.4% Placement at BI and other banks

-74.5% Syariah Income

Interest Expense

Rp (Bn)

Rp (Bn)

Rp (Bn)

Time Deposits

-5.7% Current Account

4.1% Securities issued

1.4% Subordinated loan

1 -6.3% Others

Three Options to Pursue in Recap Bonds Resolution

• BI will gradually replace their use of SBI for market

Bank operations with SUN Indonesia

• BI could buy the Recap bonds gradually and this

includes potential purchases of SUN VR

• The Ministry of Finance will consider to buyback the

SUN VR

Ministry of Finance

• Potential for debt switching with a different tenor of

fixed rate bonds.

• Bundle the recap bonds with assets creating an asset

backed security and sell it to the market.

Market Sale

• Sell the bonds. borrowing FX and use the liquidity to

increase lending.

Government Bond Portfolio

Government Bond Portfolio by Type and Maturity (Rp 105,316 Bn) Bonds by Rate Type & Portfolio as of December (Rp 105,316 Bn)

Maturity/ Trading Portfolio

Available for Sale

Held to

Rp Bn Nominal MTM Nominal MTM Maturity

80 Fixed Rate

70 Variable Rate

Fixed Rate Bonds

< 1 year 50 268 268 7,408 7,676 7,006

1 - 5 year 472

5 - 10 year 2,223

> 10 year 1,171

Sub Total 4,133

* Mark to Market impacts Profit # Mark to Market impacts Equity

Variable Rate Bonds ^ Nominal value

1 Q’18 Government Bond Gains/(Losses) (Rp Bn) < 1 year

1 - 5 year

4Q’16 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18

Realized

5 - 10 year

Gains/Losses 171.88 167.34 328.25 198.07

> 10 year

on Bonds

Sub Total

Unrealized

Gains/Losses -53.15 70.78 16.67 46.71 -18.70 -43.14

on Bonds

Total 4,133

Total

Ex-Recap Bond Portfolio. March 2018 – Bank Only

Fair Value Maturity

Total Available Total Series

Total Trading Total Available For

Total Held To

Marked To

Sale Port.

Maturity Portfolio Market (%)

Trading

For Sale Port. Investment

Port. Fixed Rate

Port.

- - Variable Rate

Sub Total

7 VR0027

1,801,917 - 8 VR0028

3,554,801 - 9 VR0029

3,426,096 - 10 VR0030

5,987,068 - 11 VR0031

29,758,772 - Grand Total

Sub Total

29,758,772 (Stated in Rp Millions)

Total Nominal Value

30,017,523 Total Fair Value

Bank Mandiri Credit Ratings

Moody’s (April 2018)

Fitch Rating (September 2017)

Outlook

BBB- Senior Unsecured Debt

STABLE

Issuer Default Rating

AAA(idn) Bank Deposit

Baa2

National LT Rating

F1+(idn) Counterparty Risk Assessment

Baa2/P-2

National ST Rating

Baa2(cr)/P-2(cr)

Viability Rating

bb+

Support Rating Floor

BBB-

Pefindo (June 2017)

Standard & Poor’s (December 2017)

Corporate Rating

STABLE LT General Obligation

STABLE

Outlook

idAAA

Issuer Credit

BB+

Sovereign Rating

BBB-

Corporate Actions

Net Profit for the financial year of 2017 of Rp20,639,683,141,139.5 was distributed as follows:

• 45% or Rp9,287,857,413,512.78 for the annual dividend • Total Dividend Payment of Rp199.02552 per share

Schedule :

a. Cum Date:

Regular and Negotiated Market:

March 28, 2018

Dividend

Cash Market:

April 3, 2018

b. Ex Date:

Payment &

Regular and Negotiated Market:

March 29, 2018

Stock Split

Cash Market:

April 4, 2018

c. Recording Date:

April 3, 2018

d. Payment Date:

April 20, 2018

T he Company’s Nominal Stock Split from Rp 500 per share to Rp250 per share and amendment of Article of Association related with the Company’s Nominal Stock Split.

1Q 2018 Movement in Category 1 and 2 Loans

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

1Q 2018 Loan Detail: Collectability by Segment

Loan Profile: 1Q Collectability (%) by Segment Loan Profile: 1Q Collectability (Rp bn) by Segment Bank Only

Bank Only

Corp Comm

Small

Micro

Cons

Corp

Comm Small

Micro

Cons 70

71

l*:

Qua

rterl

by

Day

Past Due

an

Only

Q4'14

Q1'15

Q2'15

Q3'15

Q4'15

Q1'16

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

n Value

Quar

ter

ly

NPL

St

ock

In

ter

es

DPD

an

Only

Q1'10

Q2'10

Q3'10

Q4'10

Q1'11

Q2'11

Q3'11

Q4'11

Q1'12

Q2'12

Q3'12

Q4'12

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Q2'15

Q3'15

Q4'15

Q1'16

Q2'16

Q3'16

Q4'16

Q1'17

Q2'17

Q3'17

Q4'17

Q1'18

n Value

xc

lud

ing

Mi

cr

o n su

e r Lo

0 5 % 10 % 15 % 20 % 25 % 30 % 35 % 40 % 45 % %

Cu

rr

e n t (%

< 30

ay

OD

Rp722bn in Loans were Restructured in 1Q ‘18

Restructured Loan Movement 2005 - 1Q2018

Loans by Restructuring Type in 1Q 2018

IDR bn Others#

Write-Offs Repayments Restructuring Balance

Maturity extension

Maturity

w/other

19 20 20 16 17 16 14 13 11 12 13 25 31 35 42 42 42 43 46 44 w/reduced

2005 A dd D e 2006 A dd e D 2007 dd A D e 2008 A dd D e 2009 A dd D e 2010 A dd e D 2011 A dd D e 2012 A dd e D 2013 A dd e D 2014 A dd e D 2015 A dd D e Q A D Q A D Q A D Q A D Q A D Q A D Q A D Q A D Q

(Rp billions) Q3 ’16 Q4 ’16 Q1 ’17 Q2 ’17 Q3 ’17 Q4 ’17 Q1 ’18

*Other Restructuring includes reduction of interest rates, rescheduling of

unpaid interest & extension of repayment period for unpaid interest

Restructured

Others# includes partial payments, FX impacts, and fluctuation in

Working Capital facilities

Collections

Improving Asset Quality and Portfolio Management

Key Areas

Remarks

• Restructuring Unit

Reorganize SAM

Focus on preventing increasing NPLs. To solve temporary problems in business’s and take the

Group

• Recovery Unit

necessary steps for loan restructuring.

Transfering

• Transfering Transfering problem loans from business units to SAM group to be handled more effectively. We will

Problem Loans

Problem Loans

continue to review for more loans to transfer.

Resetting Risk

• Update Risk

Help to reset risk assessment criteria to support

Assessment

Assessment Criteria

business units in improving the loan origination

Criteria

process.

• Loan Monitoring

Increase

Monitoring

Preventiative actions to improve asset quality by

• Early Warning

Frequency increasing standardized process and upgrading risk

System

tools

• Incentives for Loan

• Achieve higher cash recovery than last year

Intensify Cash

Repayment

• Accelerate loan repayment by writing off interest

Recovery

• Auction Frequency

and penalty

• Asset Marketing Unit

• Identify targeted buyers for specific assets

Loan Portfolio Sector Analysis, 1Q 2018

Palm Plantation & CPO F&B Manufacturing Energy & Water Financial Services Metal Manufacturing Infrastructure Construction Fertilizer Manufacturing Metal Material Mining

Energy & Water

Non-Infrastructure Construction Water Transportation Government

no ti

Wholesale Trading

uc tr

ns

F&B Trading

Co

Property

ture % 3 uc

Textile Manufacturing

* Excluding Micro & Consumer Loans Only

wth

or

tw

ork Gr e

or

tw

-Li

tw A 4,996 2009 TM A 12,666 2009

TM

Ne

on

buti

stri

2,505 3Q'16

1Q 2018 Loan Detail*: Downgrades to NPL

Loan Profile: 1Q NPL Downgrades Only (Rp 3,039 Bn) Bank Only The downgrade to Non-Performing

Other Mfg

Loan in 1Q totaled Rp 3,039Bn. Of these

Bus Serv

loans:

SME

 63% were more than 90 days overdue

Trad-Ret

on interest payments

Others

 72.2% came from our Middle

>90 Days

Corporate Portfolio

Mfg-Chem

 Largest downgrades by sector:

WC

 Construction

 Raw Material Manufacturing

 Distribution Trading

Mfg-RawM

Mdl. Corp

 99.9% were IDR loans

 87.5% were Working Capital loans.

61-90 Days

31-60 Days

Export Current

0% * Excluding Micro & Consumer Collect.

Int. Aging

Sector

Currency Purpose

Segment

1Q 2018 Loan Detail*: Non-Performing Loans

Loan Profile: 1Q Non-Performing Loans Only (Rp 17,804 Bn) Bank Only

NPLs totaled Rp 17,804 Bn in 1Q.

Of these NPLs in 1Q:

SME

 60% were more than 90 days

overdue on interest payments

Other Mfg

 83.4% are to Middle Corporate

Constr

5 Mining-Oil &

customers

>90 Days

Gas Trad-Ret

 74.8% are Working Capital loans and

22.7% are Investment loans

Mfg-F&B

 Primary sectors are:

 Trading Distributions

Rp

Mfg-Chem

Mdl. Corp

 Raw Material Manufacturing

 Chemical Manufacturing

61-90 Days

WC

31-60 Days

 94.3% are Rp loans

0% * Excluding Micro & Consumer Collect.

Lrg. Corp

Int. Aging

Sector

Currency Purpose

Segment

1Q 2018 Loan Detail*: Downgrades to Cat. 2

Loan Profile: 1Q Downgrades to Cat. 2 Only (Rp 5,734 Bn) Bank Only Rp 5,734 Bn loans were downgraded to

Category 2 in 1Q. Of the Special Mention

Loans downgraded:

SME

61+ Days Other Trading

2016-Current

 74.5% are from Middle Corporate and

25.5% are from SME loan

Mfg

 18% are less than 30 days overdue

Plantations

and 32.5% are current in interest

31-60 Days

payments

Trad-Ret

 Primary sectors downgraded are:

 Business Service  Construction

 Retail Trading

Constr

Mdl. Corp

2013-2015

1 Day

 96% are Rp loans

 84% are Working Capital loans

Current Bus Serv

2010-2012

0% * Excluding Micro & Consumer

2005-2009 2000-2004

Segment Days Aging Sector

Currency Purpose Origin Year

1Q 2018 Loan Detail*: Category 2 Loans

Loan Profile: 1Q Category 2 Loans Only (Rp 18,845 Bn) Bank Only Rp 18,845 Bn loans were in Category 2

in 1Q. Of these Special Mention loans:

SME

61- 90 Days Other Mfg

 75.8% are to Middle Corporate

Bus Serv

Invest

31-60 Days

customers

Trad-Ret

 65.7% are current or 1 day

overdue, with an additional 9.8%

1 Day

less than 30 days overdue in interest

Trad-Distr

payments

2013-2015

Constr

 Primary sectors in Category 2 are:

50% Mdl. Corp

 Chemicals Manufacturing  Mass Transportation

 Business Service

 80% are Rp loans

2010-2012

 71.4% are Working Capital loans

Mass Trans

 66.9% were Category 2 in 4 Q ‘17

Lrg. Corp

0% * Excluding Micro & Consumer

2000-2004

Segment Days Aging Sector

Currency Purpose Origin Year

1Q 2018 Loan Detail*: Upgrades to PL

Loan Profile: 1Q Upgrades to PL (Rp 182.2 Bn) Bank Only Corporate, Commercial & Small

Business loans upgraded to PL in 1Q

totaled Rp 182.2 Bn. Of these loans:

Trad-Ret

 65.8% are to Middle Corporate

SME

customers

Roads & Bridge

 98.8% upgraded loans originated later

than 2010

 Largest upgrades by sector:

 Metal Manufacturing

 Roads and Bridges

 Retail Trading

 100% are Rp loans

Mdl. Corp Mfg-Metal

 94.7% are Working Capital loans; 5.2%

were Investment loans

1 0% * Excluding Micro & Consumer Program

Currency Purpose Origin Year

1Q 2018 Loan Detail*: Performing Loans

Loan Profile: 1Q Performing Loans Only (Rp 431,432 Bn) Bank Only Rp 431,432 Bn in Corporate, Commercial

& Small Business loans were performing

Business Other Trading

in 1Q. Of these performing loans:

 59.3% are to Large Corporate

Constr

customers & 29.4% are to Middle

Mdl. Corp

2016-Current

Corporate customers

 97.5% originated since 2005

 Primary sectors are:

Mfg-Chem

 Plantations

Electricity

 Other Manufacturing

Mfg-F&B

 Business Service

RP

 77% are Rupiah loans

Bus Serv

2013-2015

Lrg. Corp

 46.5% are Working Capital loans;

37% are Investment loans

WC

Other Mfg

2010-2012

Plantations 2005-2009

0% * Excluding Micro & Consumer

Currency Purpose Origin Year

1Q 2018 Loan Detail*: Restructured Loans

Loan Profile: 1QRestructured Loans Only (Rp44,542 Bn) Bank Only

Of the remaining Rp 44,542 billion in

31-60 Days Mining

restructured wholesale loans in 1Q :

5 Trad-Imp

 73.1% are Performing

Mfg-F&B

Fx

4 Mfg-Metal

Lrg. Corp

 77% of Restructured Loans are

current in interest payments

 Primary sectors are:

Bus Serv

 Chemical Manufacturing

 60% Plantations

Trad-Distr

2 Current

 Raw Material Manufacturing

Others

 72% are Rp loans

Mass Trans

 50.8% are Working Capital loans

 67.9% are to Middle Corporate

Mfg-RawM

Rp

customers

Mdl. Corp

Mfg-Chem Syndication

<30 Days

* Wholesale Loans Only

Collect.

Int Aging

Sector

Currency Purpose

Segment

1Q 2018 Loan Detail*: Rupiah Loans

Loan Profile 1Q Rupiah Loans Only (Rp 348,569 Bn) Bank Only

Rp 348,569 billion in loans were Rupiah

Export

3 Mfg-F&B

Consumer

denominated in 1Q. Of the Rupiah

Loans in 1Q:

Trans Trad-Ret

 95.2% are performing loans, with

31-60 Days

4.3% in Category 2

 60.5% of Category 2 loans are

Mdl. Corp

current in interest payments

 Primary sectors in Rupiah loans are:

Constr

 Plantations

 Other Manufacturing

1 Others

 Business Services

 49.3% are Large Corporate loans

Bus Serv

 54.5% are Working Capital

WC

Lrg. Corp

loans, 35.2% Investment loans

Other Mfg

Plantations 2005-2009

0% * Excluding Micro & Consumer

2000-2004

Collect.

Int. Aging

Sector

Segment Purpose Origin Year

1Q 2018 Loan Detail*: FX Loans

Loan Profile:4Q FX Loans Only (Rp 100,667 Bn) Bank Only

Rp 100,667 Bn in loans were FX

denominated in 1Q.

31-60 Days

Mdl. Corp

Of the FX Loans in 1Q:

Mass Trans

<30 Days

Mfg-RawM

 99% are performing loans

 86.3% of Category 2 loans are

Other Mfg

current in interest payments

 Primary sectors in FX loans are:

 F&B Manufacturing

Others

 Metal Ore Mining

WC

 Oil & Gas Mining

1 Plantations

Current

Lrg. Corp

 84.2% % are Large Corporate loans

Soc Serv

 40.1% are Investment loans; 28.2%

Mining-Oil &

are Syndication loans

Gas 2013-2015

Mfg-F&B 2005-2009 2000-2004

0% * Excluding Micro & Consumer Collect.

Int. Aging

Sector

Segment Purpose Origin Year

1Q 2018 Loan Detail: Large Corporate Loans

Loan Profile: 1Q Corporate Loans Only (Rp 265,546 Bn) Bank Only

Rp 265,546 billion in loans were in the

Corporate portfolio in 1Q. Of the

Other Mining

Corporate Loans in 1Q :

Roads & Bridge

Syndication

Soc Serv

Fx

 99.7% are performing loans, with

Mining-Metal

0.8% in Category 2

 100% Category 2 loans are current in

Current Year

interest payments

Trading

 Primary sectors in Corporate are:

Invest

Bus Serv

 Plantations

1 Current

 Food & Beverages

Other Mfg

Manufacturing

 Business Services

Electricity

Rp

 67.0% are Rupiah loans

2013-2015

 38.9% are Investment loans; 37.9%

Mfg-F&B

WC

are Working Capital loans

2010-2012

Plantations 2005-2009

Int. Aging

Sector

Currency Purpose Origin Year

1Q 2018 Loan Detail: Middle Corporate Loans

Loan Profile: 1Q Commercial Loans Only (Rp 141,676 Bn) Bank Only

Rp141,676 Billion in loans were in the

Commercial portfolio in 1Q. Of the

Fx

4 Mfg-Text

Commercial Loans in 1Q:

 89.5% are performing loans, with

2016-Current

Other Mfg

Invest

Year

10.1% in Category 2

Mfg-F&B

 67.8% of Category 2 loans are

Current Other Trading

current in interest payments

 Primary sectors in Commercial are:

Mass Trans

 Plantations

Mfg-Chem

 Trading Distribution

Rp

 Business Services

 89.3% are Rupiah loans

Bus Serv

WC

 58.2% are Working Capital

61+ Days

loans, 37.9% are Investment loans

Others 2010-2012

31-60 Days

<30 Days 2000-2004

Collect.

Int. Aging

Sector

Currency Purpose Origin Year

1Q 2018 Loan Detail: SME Loans

Loan Profile: 1Q Small Business Loans Only (Rp 51,013 Bn) Bank Only

Rp 51,013 Bn in loans were in the Small

Program

Business portfolio in 1Q of the Small

Mfg

Consumer

Business Loans in 1Q:

61+ Days

Other Agri

 95.9% are performing loans, with

Bus Serv

Other Trading

4.7% in Category 2

Invest

Current Year

 22.6% of Category 2 loans are

31-60 Days

Plantations

current in interest payments

 Primary sectors in Small Business

Household

Equip.

are:

Rp

 Retail Trading

 Distribution Trading

 Household Equipment

2013-2015

WC

 98.6% are Rupiah loans

Trad-Distr

 66.7% are Working Capital loans

2005-2009 2000-2004

Int. Aging

Sector

Currency Purpose Origin Year

78.2% BCA

31% Maybank

85.6% BNI

40% BTN

o ti

87.5% Permata

92% Panin

a 88.1% Mandiri

to NP

103% Danamon

it

88.1% Maybank

103% CIMB Niaga

os

ons si

88.1% BRI

143% (%) Mandiri

rovi

to Dep

92.1% Panin

148% BNI

ve to Peers

of

93.8% Danamon

191% BCA

Loan

ti

191% ati Permata

94.7% CIMB Niaga

103.1% BTN

196% BRI

Rel

2.2% g CIMB Niaga

Permata

1.9% n Danamon

ioni

CIMB Niaga

1.7% t) Permata

ver

th

is

Panin

(Ne

1.7% BTN

ow

Gr (%)

ti

Mandiri

a (%)

1.1% Mandiri

2017 NPL

0.9% Loan BRI

ity & Prov

97.3 Permata

4.6% Permata

5.1% ) Panin 7.9% Mandiri )

.a.

4.9% (p Permata p

.a.

8.0% BNI

ts

s(

d 4.1% CIMB Niaga se

8.3% CIMB Niaga

As (%)

8.3% Maybank

Fun

3.7% Danamon

of

3.3% d BRI

on

8.7% Panin

os

iel Y

C 3.0% BNI

Peers

69.5% BRI

42.3% Maybank

ts se

As

ti

n ver

g Panin

50.0% Permata

ve t

it

arni

70.5% Permata

os

51.6% BTN

ati

al (%)

71.6% Danamon

Dep (%)

CIMB Niaga

ot

72.6% Mandiri

os

60.6% BRI

to T

73.2% CIMB Niaga

63.7% BNI

Low

x Rel

Loans

74.5% Maybank

68.4% Mandiri

76.3% Mi BCA

78.7% BTN

148.0 Maybank

96.8 Permata

77.4% CIMB Niaga

67.3% e BTN ts

4.6% CIMB Niaga

se ze 4.2% Mandiri 64.2% li

Danamon

com

As

t/ n (%)* 4.1% t/ A *

Maybank

In (%)

62.8% Mandiri

os

C 3.7% BCA

os 61.3% C Panin

ye Maybank

ag

lo

m ver yee

CIMB Niaga

Panin

lo CIMB Niaga ) e p

Panin

/E

Mn

ve to Peers

Mn

Em

com

n (Rp

2017 a

it/ (Rp

BRI

xI BRI

ati

rof

re P

Rel BNI

res

3.3 Danamon

3.4 Danamon

91

x)

1,431 Danamon

Ta

8.8%

CIMB Niaga

ter

(Af

1,964 BTN

ity

10.3%

Danamon

TMs

q A (%) 14.5%

4,500 CIMB Niaga

E Mandiri

17,658 BCA

on

15.6%

BNI

rn

17,766 Mandiri

tu BTN

ve to Peers

ati Permata

392 Maybank

0.6%

495 CIMB Niaga

1.2%

Maybank

x)

562 Panin

Ta

e CIMB Niaga s Rel ver

327 Permata

for

1.7%

es

835 BTN

(B

1.7%

BTN

ch

ts

ran Danamon

982 Danamon

se (%)

2.5%

As

on 2017 on

1,235 BCA

2.7%

Return

2,070 BRI

rn

2.8%

BNI

tu

e and

6,727 Maybank

4.0% Permata

Equity Research Contact Details

E-MAIL BAHANA SECURITIES

62 21 250 5081 ext. 3622 Henry.wibowo@bahana.co.id BANK OF AMERICA-MERRILL LYNCH

Henry Wibowo

anand.swaminathan@baml.com BCA SEKURITAS

Anand Swaminathan

Gilang.purnama@bcasekuritas.co.id CIMB SECURITIES

Gilang Purnama

jovent.muliadi@cimb.com CITI INVESTMENT RESEARCH

Jovent Giovanny

62 21 515 1330 ext. 262

Salman1.Ali@citi.com CLSA LIMITED

Salman Ali

Sarina.Lesmina@clsa.com CREDIT SUISSE

Sarina Lesmina

Sanjay.Jain@credit-suisse.com DANAREKSA SEKURITAS

Sanjay Jain

62 21 29555 777 ext. 3510 Helmyk@danareksa.com DBS VICKERS SECURITIES

Helmy Kristanto

Suelin@hwangdbsvickers.com.my DEUTSCHE VERDHANA SECURITIES

Lim Sue Lin

raymond.kosasih@db.com GOLDMAN SACHS (ASIA)

Raymond Kosasih

melissa.kuang@gs.com HSBC LTD

Melissa Kuang

Karwengloo@hsbc.com.sg INDO PREMIER SECURITIES

Loo KarWeng

Stephan.Hasjim@ipc.co.id J.P. MORGAN ASIA

Stephan Hasjim

Harsh.w.modi@jpmorgan.com KIM ENG SECURITIES

Harsh Modi

Rahmi.Marina@maybank-ke.co.id MACQUARIE CAPITAL SECURITIES INDONESIA Jayden Vantarakis

Rahmi Marina

Jayden.vantarakis@macquarie.com MIRAE ASSET SEKURITAS