GENERAL AND ADMINISTRATIVE EXPENSES

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in millions of Rupiah, unless otherwise stated Appendix 5139 50. EMPLOYEE BENEFITS continued Pension Plan continued The members of the defined benefit pension plans are the employees from the legacy banks who have rendered three or more services years at the time of merger and are comprise of active employees of the Bank, former employee those who have resigned and did not transfer their beneficial right to other pension plan and pensioners. Based on the decision of the General Meeting of Shareholders dated 28 May 2007, Bank Mandiri increased the pension benefit from each of the Pension Plans. The decision was stated in each Pension Plan Regulation and has been approved by the Minister of Finance of the Republic of Indonesia with decision letter No. KEP-144KM.102007 DPBMS; No. KEP-145KM.102007 DPBMD; No. KEP-146KM.102007 DPBMT and No. KEP-147KM.102007 DPBME, all dated 20 July 2007. Based on the approval of the General Meeting of Shareholders AGM on 17 May 2010, Bank Mandiri increased the retirement benefits of each pension fund. Decision to increase pension benefits was set forth in the Regulation of Pension Fund respectively and has been approved by the Minister of Finance Decree No. KEP-441KM.102010 dated 10 August 2010 DPBMS; No. KEP-442KM.102010 dated 10 August 2010 DPBMD; No. KEP-443KM.102010 dated 10 August 2010 DPBMT and No. KEP-444KM.102010 dated 10 August 2010 DPBME. Based on the approval of the General Meeting of Shareholders AGM on 23 May 2011, Bank Mandiri increased the retirement benefits of each pension fund. Decision to increase pension benefits was set forth in the Regulation of Pension Fund respectively and has been approved by the Minister of Finance Decree No. KEP-588KM.102011 dated 20 July 2011 DPBMS; No. KEP-589KM.102011 dated 20 July 2011 DPBMD; No. KEP-590KM.102011 dated 20 July 2011 DPBMT and No. KEP-591KM.102011 dated 20 July 2011 DPBME. Based on the approval of the General Meeting of Shareholders AGM on 2 April 2013, Bank Mandiri increased the retirement benefits of each pension fund. Decision to increase pension benefits was set forth in the Regulation of Pension Fund respectively and has been approved by the Minister of Finance Decree No. KEP-349NB.12013 dated 14 June 2013 DPBMS; No. KEP- 350NB.12013 dated 14 June 2013 DPBMD; No. KEP-351NB.12013 dated 14 June 2013 DPBMT and No. KEP-352NB.12013 dated 14 June 2013 DPBME. Based on the approval of the Board of Commissioner Meeting on 2 July 2014, Bank Mandiri gave other benefits to each pension fund. Decision to give this other benefits was set forth in the respective Regulation of Pension Fund and has been approved by the Minister of Finance Decree No. KEP-1773NB.12014 dated 17 July 2014 DPBMS; No. KEP-1774NB.12014 dated 17 July 2014 DPBMD; No. KEP-1775NB.12014 dated 17 July 2014 DPBMT and No. KEP- 1776NB.12014 dated 17 July 2014 DPBME. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in millions of Rupiah, unless otherwise stated Appendix 5140 50. EMPLOYEE BENEFITScontinued Pension Plan continued As at 31 December 2014 and 2013, the provision for pension benefit obligation are calculated by the independent actuary as shown in the independent actuarial report of PT Milliman Indonesia dated 17 January 2015 for the year ended 31 December 2014 and the independent actuarial report of PT Dayamandiri Dharmakonsilindo dated 13 January 2014 for the year ended 31 December 2013. PT Milliman Indonesia as stated in the independent actuarial report dated 17 January 2015 has also recalculated employee benefit costs for the year ended 31 December 2013 for Dana Pensiun Bank Mandiri Satu DPBMS and Dana Pensiun Bank Mandiri Empat DPBME. The assumptions used for the years ended 31 December 2014 and 2013 are as follows: DPBMS DPBMD DPBMT DPBME Discount rate 8.50 per annum 2013: 9.15 8.50 per annum 2013: 9.15 8.50 per annum 2013: 9.15 8.50 per annum 2013: 9.15 Expected rate of return on pension plan assets 9.50 per annum 2013: 9.50 9.00 per annum 2013: 9.00 8.50 per annum 2013: 8.50 9.00 per annum 2013: 9.00 Working period used As at 31 July 1999 As at 31 July 1999 As at 31 July 1999 As at 31 July 1999 Pensionable salary PhDP used Last month salary of 31 July 1999, which adjusted on 31 December 2002 Last month salary of 31 July 1999, which adjusted on 31 December 2002 Last month salary of 31 July 1999, which adjusted on 31 December 2002 Last month salary of 31 July 1999, which adjusted on 31 December 2002 Expected rates of PhDP increase Nil Nil Nil Nil Mortality Rate Table 2014 and 2013: Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners 2014 and 2013: Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners 2014 and 2013: Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners 2014 and 2013: Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners Turnover rate 2014 and 2013: 5.00 for employees’ age of 25 and decreasing linearly up to 0.00 at age 55 2014 and 2013: 5.00 for employees’ age of 25 and decreasing linearly up to 0.00 at age 55 2014 and 2013: 5.00 for employees’ age of 25 and decreasing linearly up to 0.00 at age 55 2014 and 2013: 5.00 for employees’ age of 25 and decreasing linearly up to 0.00 at age 55 Disability rate 2014 and 2013: 10.00 of TMI III 2014 and 2013: 10.00 of TMI III 2014 and 2013: 10.00 of TMI III 2014 and 2013: 10.00 of TMI III Actuarial method Projected Unit Credit Projected Unit Credit Projected Unit Credit Projected Unit Credit Normal retirement age 48 years to 56 years depending on the grades 56 years for all grades 56 years for all grades 56 years for all grades Maximum defined benefit amount 80.00 of PhDP 80.00 of PhDP 62.50 of PhDP 75.00 of PhDP Expected rate of pension benefit increase Nil Nil Nil 2.00 per year Tax rates - average 2014 and 2013: 3.00 of pension benefit 2014 and 2013: 3.00 of pension benefit 2014 and 2013: 3.00 of pension benefit 2014 and 2013: 3.00 of pension benefit PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in millions of Rupiah, unless otherwise stated Appendix 5141 50. EMPLOYEE BENEFITS continued Pension Plan continued The projected benefit obligations and fair value of plan assets as at 31 December 2014, based on independent actuarial report, are as follows: DPBMS DPBMD DPBMT DPBME Projected benefit obligations 1,474,919 1,647,936 634,988 504,829 Fair value of plan assets 1,566,369 1,894,023 806,043 559,406 Funded Status 91,450 246,087 171,055 54,577 Unrecognised past service cost - - - - Unrecognised actuarial losses 35,627 183,351 125,401 9,710 Surplus based on SFAS No. 24 Revised 2010 55,823 62,736 45,654 44,867 Asset ceiling - - - - Pension Plan Program Assets recognised in consolidated statements of financial position - - - - There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions. There are no plan assets recognised in the consolidated statements of financial position because the requirements under SFAS No. 24 regarding “Employee Benefits” are not fulfilled. The projected benefit obligations and fair value of plan assets as at 31 December 2013, based on independent actuarial report, are as follows: DPBMS DPBMD DPBMT DPBME Projected benefit obligations 1,391,476 1,472,346 589,041 474,597 Fair value of plan assets 1,540,476 1,770,137 816,426 551,037 Funded Status 149,000 297,791 227,385 76,440 Unrecognised past service cost - - - - Unrecognised actuarial losses 104,833 268,790 213,160 9,710 Surplus based on SFAS No. 24 44,167 29,001 14,225 66,730 Asset ceiling - - - - Pension Plan Program Assets recognised in consolidated statements of financial position - - - - There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions. There are no plan assets recognised in the consolidated statements of financial position because the requirements under SFAS No. 24 regarding “Employee Benefits” are not fulfilled. The composition of plan assets from Pension Fund for the years ended 31 December 2014 and 2013 are as follows: 2014 DPBMS DPBMD DPBMT DPBME Deposit 38 31 11 26 Bonds 28 42 36 34 Direct investment 5 14 21 13 Land and building 15 4 26 7 Shares 8 4 - 1 Government Bonds - 4 4 5 Others 6 1 2 14 Total 100 100 100 100 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in millions of Rupiah, unless otherwise stated Appendix 5142 50. EMPLOYEE BENEFITS continued Pension Plan continued The composition of plan assets from Pension Fund for the years ended 31 December 2014 and 2013 are as follows: continued 2013 DPBMS DPBMD DPBMT DPBME Deposit 12 29 3 18 Bonds 43 47 35 39 Direct investment 5 10 21 6 Land and Building 13 2 24 1 Shares 12 6 4 5 Government Bonds 7 5 12 24 Others 8 1 1 7 Total 100 100 100 100 Labor Law No. 132003 Bank Mandiri has implemented an accounting policy for employment benefits SFAS 24 to recognise provision for employee service entitlements. As at 31 December 2014 and 2013 the Group recognised a provision for employee services entitlements in accordance with Labor Law No. 132003 amounting to Rp2,234,193 including compensation benefits for employees who have resigned which compensation have not yet been paid and excluded from actuarial calculation amounted to Rp8,240 and Rp1,965,656 including compensation benefits for employees who have resigned which compensation have not yet been paid and excluded from actuarial calculation amounted to Rp8,240 based on the estimated post employment benefit in the independent actuarial reports Note 34. Provision for employee service entitlements as at 31 December 2014 and 2013 are estimated using the employees service entitlements calculation for the years ended 31 December 2014 and 2013 as shown in the independent actuarial reports of PT Milliman Indonesia dated 17 January 2015 for the year ended 31 December 2014 and the independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated 13 January 2014 for the year ended 31 December 2013. The assumptions used by the actuary for the years ended 31 December 2014 and 2013 are as follows: a. Discount rate is 8.50 per annum 2013: 8.65 per annum. b. Expected rate of annual salary increase is 9.50 per annum 2013: 9.50 per annum. c. Mortality rate table used is Indonesia Mortality Table 2011 or TMI III. d. Turnover rate is 5 for employees’ age of 25 and decreasing linearly up to 0 at age 55. e. Actuarial method is projected unit credit method. f. Normal retirement age is 56 years. g. Disability rate is 10 of TMI III. The amounts recognised in the statement of financial position are determined based on independent actuarial report as follows Bank Mandiri only: 2014 2013 Present value of obligations 1,924,202 1,597,813 Unrecognised past service cost 10,530 15,672 Unrecognised actuarial gainslosses 6,800 134,267 Provision for post employment benefits presented in statements of financial position 1,906,872 1,716,408 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in millions of Rupiah, unless otherwise stated Appendix 5143 50. EMPLOYEE BENEFITS continued Labor Law No. 132003 continued The movement in present value of obligation over the year is as follows Bank Mandiri only: 2014 2013 Beginning balance of present value of obligation 1,597,813 1,757,767 Past service cost - Non Vested - 59,351 Past service cost - Vested - 119 Interest cost 134,108 96,467 Current service cost 146,083 209,180 Benefit paid 94,869 59,163 Impact of changes actuarial adjustment 45,247 490,405 Actuarial gainslosses 95,820 24,497 Ending Balance of Present Value of Obligation 1,924,202 1,597,813 The amounts recognised in the profit or loss based on independent actuarial report are as follows Bank Mandiri only: 2014 2013 Current service cost 146,083 209,180 Interest cost 134,108 96,467 Amortisation of unrecognised pastservice cost 5,142 5,142 Amortisation of unrecognised actuarial gainslosses - 16,494 Recognition of past service cost - vested - 119 Cost of Pension benefits 285,333 327,402 Reconciliations of provision for post employment benefits are as follows: 2014 2013 Bank Mandiri Beginning balance of provision for post employment benefits 1,716,408 1,448,170 Expenses during the year 285,333 327,402 Payments of benefits 94,869 59,164 Provision for post employment benefits Bank Mandiri 1,906,872 1,716,408 Subsidiaries Provision for post employment benefits 319,081 241,008 Total provision for post employment benefits 2,225,953 1,957,416 As at 31 December 2014 and 2013, the amount does not include unpaid severance for resigned employees amounting to Rp8,240 and Rp8,240 respectively, which was excluded from actuarial computation. The present value of funded benefit obligations, fair value of plan assets and the surplus on the program for the last five years, which are Bank Mandiri only: 2014 2013 2012 2011 2010 Present value of defined benefit obligations 1,924,202 1,597,813 1,757,767 1,547,952 1,262,717 Fair value of plan assets - - - - - Program Deficit 1,924,202 1,597,813 1,757,767 1,547,952 1,262,717 Experience adjustments on liabilities program 95,820 24,497 93,991 127,820 58,912 Experience adjustments on plan assets - - - - -

51. OTHER OPERATING EXPENSES - OTHERS - NET

2014 2013 Insurance premiums on third party funds guarantee program Note 63 1,171,997 1,032,792 Fees and commissions expenses 709,392 563,784 Fees related to Credit card and ATM transactions 340,818 239,117 Insurance sales force compensation 306,156 341,997 Employee restructuring costs 69,733 - Fees from RTGS, remittance and clearing transactions 62,206 56,038 Others 417,708 970,314 3,078,010 3,204,042 Others mainly consist of Subsidiary’s commission expense from bancassurance and other commission expenses. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in millions of Rupiah, unless otherwise stated Appendix 5144 52. NON-OPERATING INCOME - NET 2014 2013 BOT transactions income Note 18a 15,597 15,597 Building rental income 10,235 61,201 Gain on sale of fixed assets 4,122 129,416 Penalties 10,904 9,759 Others - net 10,859 313,671 29,909 510,126

53. COMMITMENTS AND CONTINGENCIES

The following accounts represent accounts which are recorded as off-balance sheet: 2014 2013 COMMITMENTS Commitment Payables: Unused loan facilities granted Related parties 26,730,367 23,511,102 Third parties 66,675,601 61,640,491 93,405,968 85,151,593 Outstanding irrevocable letters of credit Note 31: Related parties 8,325,989 5,797,403 Third parties 6,842,125 9,420,727 15,168,114 15,218,130 Total Commitment Payables 108,574,082 100,369,723 Commitment Payables - Net 108,574,082 100,369,723 CONTINGENCIES Contingent Receivables: Guarantees received from other banks 18,764,479 18,560,454 Interest receivable on non-performing assets 8,567,219 7,391,633 Others 32,729 32,730 Total Contingent Receivables 27,364,427 25,984,817 Contingent Payables: Guarantees issued in the form of: Bank guarantees Note 31: Related parties 17,401,095 13,423,017 Third parties 43,811,806 42,996,519 61,212,901 56,419,536 Standby letters of credit Note 31 Related parties 6,510,384 6,098,592 Third parties 5,379,066 2,553,754 11,889,450 8,652,346 Others 377,195 256,757 Total Contingent Payables 73,479,546 65,328,639 Contingent Payables - Net 46,115,119 39,343,822 COMMITMENTS AND CONTINGENCIES PAYABLE - NET 154,689,201 139,713,545 Include committed and uncommitted unused loan facilities. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in millions of Rupiah, unless otherwise stated Appendix 5145 54. FOREIGN CURRENCY TRANSACTIONS The fair value of forward and cross currency swap transactions are presented as derivative receivablespayables in the consolidated statement of financial position Note 11. Details of outstanding buy and sell foreign currency spot transactions Bank Mandiri only as at 31 December 2014 and 2013 are as follows: 2014 Spot - Buy Spot - Sell Original Currency Rupiah Original Currency Rupiah Original Currency full amount Equivalent full amount Equivalent United States Dollar 77,621,682 961,345 91,040,000 1,127,530 Others - 199,468 - 162,032 1,160,813 1,289,562 2013 Spot - Buy Spot - Sell Original Currency Rupiah Original Currency Rupiah Original Currency full amount Equivalent full amount Equivalent United States Dollar 89,920,346 1,094,331 82,703,495 1,006,502 Others - 142,876 - 181,257 1,237,207 1,187,759 Consist of various foreign currencies.

55. RELATED PARTY TRANSACTIONS

In the normal course of business, Bank Mandiri entered into certain significant transactions with the following related parties:  Related party relationship as the controlling shareholder: The Government of the Republic of Indonesia through Ministry of Finance  Related parties relationship by ownership andor management: Related Parties Nature of Relationship PT Kustodian Sentral Efek Indonesia Associate Company PT Sarana Bersama Pengembangan Indonesia Associate Company Dana Pensiun Bank Mandiri Bank Mandiri as a founder Dana Pensiun Bank Mandiri 1 Bank Mandiri as a founder Dana Pensiun Bank Mandiri 2 Bank Mandiri as a founder Dana Pensiun Bank Mandiri 3 Bank Mandiri as a founder Dana Pensiun Bank Mandiri 4 Bank Mandiri as a founder PT Bumi Daya Plaza Controlled by Dana Pensiun Bank Mandiri since 19 December 2013 PT Pengelola Investama Mandiri Controlled by Dana Pensiun Bank Mandiri since 19 December 2013 PT Usaha Gedung Mandiri Controlled by Dana Pensiun Bank Mandiri since 19 December 2013 PT Estika Daya Mandiri Controlled by Dana Pensiun Bank Mandiri 1 PT Asuransi Staco Mandiri dahulu PT Asuransi Staco Jasapratama Controlled by Dana Pensiun Bank Mandiri 2 PT Mulia Sasmita Bhakti Controlled by Dana Pensiun Bank Mandiri 3 PT Krida Upaya Tunggal Controlled by Dana Pensiun Bank Mandiri 4 PT Wahana Optima Permai Controlled by Dana Pensiun Bank Mandiri 4 Koperasi Kesehatan Pegawai dan Pensiunan Bank Mandiri Mandiri Healthcare Significantly influenced by Bank Mandiri