Retail Financing CORPORATE GOVERNANCE

PT Bank Mandiri Persero Tbk. In addition, we also focused on establishing branch oices in areas with a high concentration of low cost savings deposits. We developed e-channels with sustainable internet banking features to increase business penetration and catered to small and medium-sized enterprises. Anticipating the increasing competition in e-channel technology, we are also developing mobile banking and internet banking technologies on one platform. This also takes into account the consumption trends of customers to use mobile banking; especially looking into the needs of our highly mobile business customers. implementing account Planning Program In 2012, we started to develop an account plan initiative that enables an anchor team to track performance starting from deal process up to services for our 100 top anchor clients in the Corporate, Commercial, and Institutional Banking segments. In developing the account plan, we are positioning our Relationship Managers RM as leaders who understand the business potential of anchor clients. They are assisted by Sales Specialist Units and Product Specialists to meet client’s demands on transaction banking products and the cross selling of products in retail inancing, such as; payroll loans, supply chain inancing and micro lending. The Head of Branch Oices provided supportive services and ield implementation. The success of this account plan development and implementation initiative resulted in the increase of fee-based income and low cost funds. Maintaining service quality Bank Mandiri was rewarded as The Best Bank Service Excellence in 2011 by Marketing Research Indonesia Infobank Magazine. This is the ifth year in a row that Bank Mandiri has received the award since 2007. Bank Mandiri also received acknowledgement as The Most Consistent Bank in Service Excellence, three consecutive times. These acclaims are a result from Bank Mandiri’s commitment to providing products and services with proactive timely solutions, reliable, friendly convenient service with a consistent etiquette adhering to the spirit of service. To crown these achievements, Bank Mandiri received the Golden Trophy for Banking Service Excellence and the title of “The Living Service Legend”. Consistency in implementing corporate governance Another important achievement for Bank Mandiri is attaining for 6 consecutive years from 2007 to 2012 the title of “The Most Trusted Indonesian Company in Good Corporate Governance.” Growing as a Financial Group To enhance our values as growing as a group with our subsidiaries, in 2012 Bank Mandiri developed strategic guidelines and directions for each subsidiary. These guidelines would assist each subsidiary to play their part in developing their own businesses while synergizing Bank Mandiri’s targets and vision. In 2012 our subsidiaries net proit contributions amounted to Rp2.1 trillion or 13.4 of Bank Mandiri’s net proit. Leveraging operational scale for eiciency To optimize business growth Bank Mandiri in 2012 streamlined cost management plans to better cope with increasing investment needs along with operational costs coupled with the rise in business volume and the trends in price increases. Various cost management initiatives were PT Bank Mandiri Persero Tbk. implemented including overhead cost management, centralization and optimization of infrastructure, re-engineering and automation of transaction process, perfecting e-auction and other initiatives. By implementing these functions Bank Mandiri aplies a more routine cost management,, sustainable and in line with the Bank’s culture. These improvements succeeded in achieving a cost eiciency ratio of 45.5 in 2012. INDONESIA’S ECONOMIC AND BANKING CONDITIONS IN 2012 The Indonesian economy proved resilient in spite of the global uncertainties and the downward trends in Europe, the United States and other regions. Indonesia recorded 6.2 GDP growth and maintained the level of inlation at a safe 4.3 the 2012 State Budget assumption was 6.8. Financial indicators at year end 2012 were strong and the central Bank of Indonesia maintained its policy rate at 5.8, while the rupiah remained stable at around Rp9,670 against the US dollar. Within this environment of macro- economic stability the banking environment showed good performance. Banking credit grew 23 and deposits increased by 15.8, on an annualized basis. The nation’s banking system key indicators relected stability and strong support for the national economy with the CAR ratio reaching 17.43, net interest margin 5.49, NPL gross 2.1 and LDR 83.58. CHALLENGES IN THE SECOND HALF OF THE TRANSFORMATION PROCESS IN 2010-2014 After overcoming the many challenges and achieving targets set in the irst half of the 2010 – 2014 goals, we view the second half with some caution. Banking competition is predicted to intensify. Stronger and aggressive competitors with strong infrastructure, comprehensive products features and professional human resources will be evident. To achieve our targets and set milestones our strategy to increase customer base and gain market share, will be to intensify and extend our thrusts in three vital business areas; wholesale banking, retail deposits, and payment retail inancing. Bank Mandiri has already established irm support of platforms and business infrastructure with a reliable wholesale and retail distribution network along with proicient human resources. As a result, the Bank remains optimistic that we will accelerate business growth and increase proitability to support our vision in becoming one of the Top 5 ASEAN Banks by the year 2014 and one of the Top 3 by 2020. Bank Mandiri is already showing strong progress that is on track in executing the strategies developed for the 2010 – 2014 Corporate Plan. In line with our promise to stakeholders, our performance has not only improved inancial and business growth but also moved forward in service quality, market capitalization and our position from a regional banking perspective, risk management, implementation of corporate culture, infrastructure and human resources. In 2013 Bank Mandiri will focus on six main priorities to reach the remaining targets by 2014 as dictated by the Corporate Plan. These are: REPORT OF THE BOARD OF DIRECTORS PT Bank Mandiri Persero Tbk. 1. Penetration of the Institutional Banking Segment To improve the Wholesale Transaction Business attention will be given to generate cheap funds and optimize fee based income by leveraging Bank Mandiri’s edge in the wholesale area particularly with government institutions and State Owned Enterprises BUMN. 2. Continuing Account Plan Program Implementation With closer cooperation and coordination with SBU’s we will intensify our strategy of seeking potential customer business through a disciplined approach in pipeline management and customer acquisition strategy. Relationship Managers RM Product knowledge and rapport with the product owner will be broadened so that the customer will receive end-to-end explanations. 3. Strengthening retail payment business Our Retail Payment Business incremental growth and customer acquisition strategy is to focus on ATM, EDC and Mandiri Internet Banking. To optimize these features we will cooperate with third parties, such as convenience stores for operational ATMs and optimization of their performance by developing payment services. We are conducting EDC marketing programs to increase their usage which will include merchants that are already cooperating with Bank Mandiri. 4. Strengthening retail inancing business to achieve 36 composition target In line with our Corporate Plan, we are working on increasing our retail inancing business to become 36 of total loans. For the Business Banking and Micro Banking segments we are currently improving the sales organization and business process. To improve the Consumer Finance Business we will concentrate on credit card activation, sales volumes and revolving rates for credit card products. 5. Strengthening risk management to achieve “NPL Go For 1” and “zero fraud” Risk Management will be strengthened to achieve “NPL Go For 1” and “Zero Fraud”. This will be achieved by stricter monitoring of debtors who have successfully upgrades, maintain credit quality, increase collection and recovery rates. Through these steps we hope to bring NPL’s to less than 1 by 2014. 6. Improvement of subsidiaries businesses non organic initiative To achieve our 2014 vision as the most admired and progressive inancial group, Bank Mandiri will need optimum contribution and support from our subsidiaries. We will work closely with our subsidiaries to cooperate in business, services and corporate governance. In 2012, we already set in motion a strategy for each subsidiary Saturn project so that Bank Mandiri’s targets and vision for 2012 could be met and sustained. This has encouragingly seen more cooperation, coordination and synergy between subsidiaries and a development of an integrated business pattern between Bank Mandiri and its subsidiaries. PT Bank Mandiri Persero Tbk. COMMITMENT TO CONTINUED SUSTAINABLE GROWTH The Transformation Process Program stage two remains ongoing since 2010 and has reaped substantial results as evidenced by Bank Mandiri’s performance. We are grateful to our stakeholders for their strong and active support in helping us move ahead. Our commitment is to continue to maintain a sustainable level of growth and optimize value to stakeholders. This commitment will be met by improving the quality of our human resources, ofering excellence in service quality, proicient corporate governance, improving risk management, adept cost management and maintaining a passionate work culture. We believe that through this ZULKIFLI ZAINI President Director route we will achieve our vision to become Indonesia’s Most Admired and Progressive Financial Institution. We say thank you to all our stakeholders and customers for the trust and support that has made Bank Mandiri’s achievements possible. We believe that with their continuing goodwill we will be able to sustain our pattern of growth and aspire for greater achievements. We thank and express our sincere appreciation to all members of the Board of Commissioners with whose guidance has brought us closer to fulilling our vision. Undoubtly in 2013 as we enter the second half of our planned Transformation Process the Bank will be faced with challenges. While we will see increasing business competition, we work hard by knowing that we have conidence and support from our stakeholders and customers. Bank Mandiri is conident of our improving performance, excellence in customer service and fulilling our commitment to our stakeholders and obligations to our country. Together we can make Bank Mandiri today better than yesterday and better tomorrow than today REPORT OF THE BOARD OF DIRECTORS PT Bank Mandiri Persero Tbk. DIRECTORS AND EvP COORDINATORS 1 President Director Zulkili Zaini 2 Deputy President Director Riswinandi 3 Director of Institutional Banking Abdul Rachman 4 Director of Risk Management Sentot A. Sentausa 5 Director of Micro Retail Banking Budi G. Sadikin 11 Director of Treasury, Financial Institutions Special Assets Management Royke Tumilaar 12 EvP Coordinator of Internal Audit Riyani T. Bondan 13 EvP Coordinator of Consumer Finance Mansyur S. Nasution 1 8 12 2 11 13 9 7 5 4 3 6 10 14 14 EvP Coordinator of Change Management Oice Ventje Rahardjo 6 Director of Compliance and Human Capital Ogi Prastomiyono 7 Chief Financial Oicer and Director of Finance Strategy Pahala N. Mansury 8 Director of Corporate Banking Fransisca N. Mok 9 Director of Commercial Business Banking Sunarso 10 Director of Technology Operations Kresno Sediarsi STATEMENT OF THE BOARD OF COMMISSIONERS STATEMENT OF THE BOARD OF DIRECTORS Statement of the Board of Commissioners regarding responsibility of 2012 Annual Report PT Bank Mandiri Persero Tbk. we, by aixing the below signatures stated that all information in this 2012 annual report of PT Bank Mandiri Persero Tbk. has been contained completely and hereby fully responsible of the validity for its contents. This statement has truthfully made. Jakarta, February 25, 2013 Statement of the Board of Directors regarding responsibility of 2012 Annual Report PT Bank Mandiri Persero Tbk. we, by aixing the below signatures stated that all information in this 2012 annual report of PT Bank Mandiri Persero Tbk. has been contained completely and hereby fully responsible of the validity for its contents. This statement has truthfully made. Jakarta, February 25, 2013 Muchayat Deputy President Commissioner Wahyu Hidayat Commissioner Cahyana Ahmadjayadi Commissioner Pahala N. Mansury Director Finance Strategy and Chief Financial Oficer Fransisca N. Mok Director Corporate Banking Ogi Prastomiyono Director Compliance and Human Capital Kresno Sediarsi Director Technology Operations Royke Tumilaar Director Treasury, Financial Institutions Special Assets Management Sunarso Director Commercial Business Banking Budi G. Sadikin Director Micro Retail Banking Abdul Rachman Director Institutional Banking Sentot A. Sentausa Director Risk Management Krisna Wijaya Independent Commissioner Gunarni Soeworo Independent Commissioner Pradjoto Independent Commissioner PT Bank Mandiri Persero Tbk. Riswinandi Deputy President Director Zulkili Zaini President Director Edwin Gerungan President Commissioner and Independent Commissioner PT Bank Mandiri Persero Tbk. PT Bank Mandiri Persero Tbk. The merging of four of Indonesia’s pioneer banks to one big bank, Bank Mandiri, has established a signiicant force that delivers a meaningful contribution to the economic growth and prosperity of our society. COMPANY PROFILE PT Bank Mandiri Persero Tbk. PT Bank Mandiri Persero Tbk. BANK MANDIRI PROFILE Company Name PT Bank Mandiri Persero Tbk. Ownership Government of Indonesia 60 Public 40 Date of Establishment 2 October 1998 Legal Basis of Establishment Deed No. 10 Dated 2 October 1998 excecuted before Notary Sutjipto, SH Authorized Capital Rp16,000,000,000,000 Issued and Paid Up Capital Rp11,666,666,666,500 Stock Exchange Listing The Company’s shares were listed on the Jakarta Stock Exchange and Surabaya Stock Exchange on July 14th, 2003 PT Bank Mandiri Persero Tbk. Head Oice Plaza Mandiri Jl. Jendral Gatot Subroto Kav. 36-38 Jakarta 12190, Indonesia Telephone : 62 21 526 5045 Facsimile : 62 21 527 4477, 527 5577 Call Center : 62 21 5299 7777, 14000 SWIFT code : BMRIIDJA Website www.bankmandiri.co.id Nature of Business As stipulated in our Articles of Association, our primary operations are in the banking inudstry and in accordance with the provisions of regulated legislation. Bank Mandiri conducts the following business activities : a. Collecting funds from the public in the form of deposits including demand deposits, time deposits, certiicate of deposits, savings andor other equivalents; b. Providing credits; c. Issuing promissory notes; d. Purchasing selling and ofering guarantees on own risk as well as for the beneit of and under the instruction of the customers; e. Other business activities as mandated by the Company’s Articles of Association Information regarding Products and Services are available on page 393. PT Bank Mandiri Persero Tbk. Board of Commissioners Audit Committee Monitoring Risk GCG Committee Remuneration Nomination Committee Deputy President Director Riswinandi Institutional Banking Abdul Rachman Institutional Banking I Jiantok Hardjiman Corp. Banking I Bambang Setyogroho Jkt Comm. Sales Winarsih Budiriani Distribution Network I Heri Gunardi Distribution Network II Agus Fuad Consumer Card Handayani Consumer Loans Sarastri Baskoro Mandiri Tunas Finance Ignatius Susatyo Wijoyo Mandiri AXA General Insurance Eduardus P. Supit Mass Banking Riza Zulkili Electronic Banking Rico Usthavia Frans Micro Network Development Agus Haryoto Widodo Micro Business Development Tardi Wealth Management Inkawan D. Jusi AXA Mandiri Jon Sandham Bank Sinar Harapan Bali I Wayan Sukarta Mandiri International Remittance Agus Retmono Mandiri Manajemen Investasi Muhammad Hanif Bank Mandiri Dili, Timor Leste M. Jani Reg. Comm. Sales I Aquarius Rudianto Reg. Comm. Sales II Santoso Budi Riyanto Business Banking I Riduan Business Banking II Hermawan Wholesale Transaction Banking Solutions Andrianto Wahyu Adi Bank Syariah Mandiri Yuslam Fauzi Corp. Banking II Didiek Hartantyo Corp. Banking III Kartini Sally Corp. Banking Agro Based Rajon Yahya Corp. Transaction Banking Sales Rahma Novianti Hardi Mandiri Sekuritas Inv. Banking Abiprayadi Riyanto Bank Mandiri Europe, Ltd. Iman Nugroho Soeko Bank Mandiri Hong Kong Dikdik Yustandi Bank Mandiri Singapore Philip Koh Bank Mandiri Shanghai Loke Poh Lam Syndication, Oil Gas Alexandra Wiyoso Institutional Banking II Budi J. Siahaan Pension Fund Financial Institution Evi Yuteva Corporate Banking Fransisca N. Mok Commercial Business Banking Sunarso Micro Retail Banking Budi G. Sadikin Consumer Finance Mansyur S. Nasution Risk And Capital Committee Information Technology Committee Human Capital Policy Committee ORGANIZATION STRUCTURE PT Bank Mandiri Persero Tbk. President Director Zulkili Zaini Compliance Himawan

E. Subiantoro Investor Relations

Bret M. Ginesky Market Operational Risk Management Lisana Irianiwati Wholesale Corporate Centre Audit Titiek Setiyowati Retail Audit Hidayat Prabowo Credit Risk Portfolio Management Tedi Nurhikmat Corporate Risk I Kepas A. Manurung Corporate Risk II Henry Sihotang Commercial Risk Sulaeman Consumer Risk Santaputra Pita Retail Risk E. Wiseto Baroto Accounting Haryanto Sukandar Corporate Secretary Sukoriyanto Saputro Policy, System Procedure Setyowati Chief Economist Destry Damayanti Strategy Performance Nixon L.P Napitupulu Human Capital Services Ridzki Juniadi Human Capital Strategy Policy Alex Denni Learning Center I Nengah Rentaya Legal M. Ariin Firdaus Culture Specialist Aminarti Widiarti Special Asset Management Agus Sudiarto Bank Mandiri Cayman Island Procurement Fixed Assets Mustaslimah Fi Coverage Solutions Ferry M. Robbani Treasury, Fi Special Asset Management Royke Tumilaar Compliance Human Capital Ogi Prastomiyono Finance Strategy Pahala N. Mansury Risk Management Sentot A. Sentausa Change Management Oice Ventje Rahardjo Internal Audit Riyani T. Bondan Treasury Panji Irawan Wholesale Executive Committee Retail Support Executive Committee Credit Committee IT Strategic Business Solutions Mahesh Ranade IT Application Services Suharto Suleh IT Operations O.C Harry Pudjiatmoko Credit Operations Herry Rukmana Central Operations Chrisna Pranoto Customer Care Services Basu Vitri M. Electronic Channel Operations Raizal Munir IT Strategy, Architecture, Planning Mohammad Guntur Technology Operation Kresno Sediarsi The Board of Commissioners and the Committees under the Board of Commissioners Board of Directors Committees under the Board of Directors EVP Coordinator Group Head Deputy Group Head Specialist equivalent to Group Head level Main Subsidiaries Subsidiaries from Main Subsidiaries Foreign Oice Affiliated Entities n n n n n q n n n n PT Bank Mandiri Persero Tbk. VISION: to be indonesia’s most admired and progressive inancial institution MISSION: We strive to form long term and trusted relationships with our customers-both businesses and individuals. We serve them with world-class, innovative inancial solutions. We want to be known for our performance, people and teamwork. By enabling the growth and success of our customer, we will support the longterm growth of indonesia and we will deliver consistently strong returns to shareholders. Vision and Mission of Bank Mandiri has been approved by the Board of Directors and Board of commissioners PT Bank Mandiri Persero Tbk. TRUST To instill conidence in stakeholders through open and sincere relationships based on trustworthiness. INTEGRITY To think, speak and act truthfully, with dignity and uphold the professional code of ethics. PROFESSIONALISM Committed to completing work accurately, based on high level of competence and with a full sense of responsibility. CUSTOMER FOCUS To always position our customers as the primary partners in mutually beneicial relationships that sustain growth. EXCELLENCE To develop and improve in all areas to achieve optimum value added and best results. CULTURE