Bank Mandiris Branch and e-channel Services Improvement Alliance DevelopmentSynergy

03 Company at a Glance 04 Management Discussion and Analysis on Companys Performance 05 Review of Business Support Function 01 Main Highlights 02 Management Report In order to achieve this, Bank Mandiri will focus on three main strategic pillars: 1. The first pillar – Deepen client relationship, strengthen initiate core competency with: - Strengthen Bank Mandiri Position as number 1 in Corporate Banking. 1. Lending: growth in the market around 2.5; 2. Fee-based income contribution around 25 from the total income; 3. 75 wallet share in the top anchor clients. - Growth in line with the market in Commercial Banking: 1. Lending: growth in line with the market; 2. Fee-based income contribution around 20 from the total income. - Targeting 3-4 sector to be given solution and product package of specific sector. 2. The Second Pillar– Accelerate the growth segment, growth new core competency with: - First choice in Consumer banking especially for the middle -income class: 1. Payroll: dominated salary segment through payroll account acquire; 2. Home Moorgate: reaching to the second position in the market; 3. Personal Loans: triple business size; 4. Auto Loans: double business size; 5. CASA: 70 DPK in the form of CASA. - Triple growth in Micro SME. - Selective growth in SME segment and micro-SME by maintaining NPL. 3. Third Pillar – Integrate the group, synergize Mandiri Group with: - Strengthen the existence in 2 ASEAN countries: 4 contribute to group revenue. - Improve network productivity: branch revenue to increase by 20. - Encourage subsidiary company performance through improving synergy in Mandiri group: 20 contribution towards revenue group. Lastly, conduct strengthen foundation in 3 main building block: - Digitalization – reduce the cost to income ratio become ~38 by diverting 80 customer interaction to digital online. - Secure, Fast and Productive – Reduce cost of credit under 1,7 by focusing on strengthening to EWS, collections and restructuring as well as Improving productivity network through re-engineering process and developing analytics engine One Mandiri, which was building HR capability to support strategy achievement and Encourage company synergy culture values, work performance, mindset in Mandiri Group. Strategic Plan 2017 Untuk mencapai aspirasi Bank Mandiri Menjadi Lembaga Keuangan Terbaik di ASEAN Tahun 2020 maka Bank Mandiri telah merumuskan fokus utama tahun 2017 sebagai berikut: 1. Increase market revenue share through growth in business volume and fee-based income above the market; 2. Maintaining a healthy liquidity conditions through the monitoring of the Loan to Deposit Ratio LDR; 3. The growth of earning assets quality by keeping the target NPL Gross, Cost of Credit, CKPN RatioNPL and Write off Loan; 4. Improving Net Interest Margin and repair Cost of Fund; 5. Strengthening the Retail and Wholesale Transaction to improve the ratio of cost of funds, growing fees and commissions and Fee Ratio. Marketing Aspect Marketing Strategy Bank Mandiri designs marketing strategy which is adapted to the evolving needs of customers at all segments based on the “360° Marketing Strategy” that provides a wide range of contact points for the customers, both through conventional and digital media whereas for each program executed, Bank Mandiri will conduct measurement. In line with the ongoing transformation, Bank Mandiri keeps on improving its marketing strategy in order to make it more effective. In 2016, Bank Mandiri was focused on some of the marketing strategies included:

1. Bank Mandiris Branch and e-channel Services Improvement

In order to enhance the customers’ satisfaction, Bank Mandiri continuously improves access to services and product features through expansion of branch network by increasing the number of branches in new areas. In 2016, Bank Mandiri opened 126 new Branch Offices in Indonesia and 48 new Sub-Branch Offices. Several service innovations offered by Bank Mandiri, among others providing weekend banking service on Saturday and Sunday at certain Branches, providing e-channel as a part of utilizing information technology which is able to facilitate its customers in doing banking activities anywhere and anytime, such as accessing account information, making financial transaction and making 247 online payment. These services consist of Mandiri ATM, Mandiri SMS, Mandiri Internet, Mandiri Internet Bisnis, Mandiri Mobile and Mandiri Call. Instructional demos for e-channel services are made available on http:www.bankmandiri.co.iddemoindex. htm to make it accessible for all customers and the public at large. Bank Mandiri develops the existing product features in accordance with the customers needs in each segment in order to attract the customers; interest. In 2016, Bank Mandiri actively introduced new features or products through various programs, among others: a. Online Transportation payment Grab by using e-cash. b. Online Transaction by using LINE Pay e-cash. 10 Consolidated Financial Statements 09 Cross Reference of Annual Report Award 2016 Criteria 08 Corporate Social Responsibility 07 Integrated Corporate Governance 06 Corporate Governance While for the new products relased in 2016, among others: a. Mandiri Card Co Brand Garuda Indonesia. b. Mandiri Card Co Brand Himbara.

2. Alliance DevelopmentSynergy

In order to accelerate its business achievement at all segments, Bank Mandiri carries out alliance or synergy development in the form of alliance between business units, task forces and subsidiaries of Bank Mandiri. In 2016 Bank Mandiri collaborated with several partner companies, such as Indomaret, in distributing digital money as one of alliance development.

3. Market Share Improvement