09 02 30 Q42008AnalystsMeeting

(1)

k

(

) bk

PT

Bank

Mandiri

(Persero)

Tbk

Full Year 2008

Full

Year

2008

Results Presentation

(2)

Information

Description

Per 31 December 2008 No. of

Investor % No. of shares % DOMESTIC

4,000 4,500

BMRI JCI

Government of RI 1 0.00% 14,000,000,000 66.97% Retail 14,844 59.17% 383,526,308 1.83% Employees 9,163 36.53% 191,151,612 0.91%

3,000 3,500

BMRI JCI

Cooperatives 3 0.01% 415,000 0.00%

Foundations 13 0.05% 18,083,500 0.09% Pension Funds 193 0.77% 247,800,000 1.19%

Insurance 51 0.20% 276,178,000 1.32%

1 500 2,000 2,500

Banks 1 0.00% 181,000 0.00%

Corporations 211 0.84% 505,630,033 2.42% Financial Institutions 1 0.00% 13,359,500 0.06%

l d 0 6% 696 8 000 3 33%

500 1,000 1,500

Mutual Funds 115 0.46% 696,578,000 3.33% Total 24,596 98.05% 16,332,902,953 78.13% INTERNATIONAL

Retail 93 0.37% 3,194,000 0.02%

0 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐

from: IPO Jan 1 2008

Institutional 397 1.58% 4,569,550,835 21.86% Total 490 1.95% 4,572,744,835 21.87% TOTAL 25,086 100.00% 20,905,647,788 100.00%

3 ‐0₃ 0₄ ‐0₄ 04 ₄0‐ 0₅ ‐0₅ 05 ‐0₅ 0₆ ₆0‐ 60 ‐0₆ 0₇ ‐0₇ 07 ₇‐0 0₈ ‐0₈ 08 ‐0₈

BMRI +200.00% ‐42.14%

(3)

Bank

Mandiri

Presentation

Results Overview Page #



2008 Financial Milestones and Highlights 2‐3



2008 Growth Momentum and Balance Sheet 4‐5



Loan Growth & LDR 6‐10



Strategy Overview 11‐12



Deposit Franchise Development 13‐16



Net Interest Margins 17



High‐Yield Lending Activities 18‐20



Wholesale Lending, Fees and FX Activities 21‐22



Quarterly Overhead Expenses & Detail Qua e y O e ead pe ses e a 155



NPL Movement, Asset Quality & Provisioning 24‐27



New NPL Formation 28



Top NPL Debtor Developments 29



Enhancing Risk Management 30



Overhead Expense Details 31



Leveraging SBU Alliances & Subsidiaries 32‐35



Summary P&LSummary P&L 3636



CAR, ROE, PAT 37

Operating Performance Highlights 38‐46

Supporting Materials 47‐88

(4)

All

financial

milestones

achieved

in

2008...

Metric

Target

Achievement

Gross

NPLs

<5%



NPL Provision

Coverage

>120%



Normalizing ROE

~18%



Normalizing

ROE

18%



Margin

Improvement

~5.2%



Growth in Savings Deposits

>Rp90 tn



Growth

in

Savings Deposits

>Rp90

tn



Retain

Efficiency

Ratio

<50%



G

L

G

th*

18%



Gross

Loan

Growth*

>18%



Corporate

>20%



Commercial

>20%



Consumer

>30%



Micro

&

Retail

>20%



(5)

Key

Financial

Highlights

Bank

Mandiri’s Full

Year

2008

Performance

continued

to

demonstrate

marked

improvements

p

in

a

number

of

key

y

indicators:

FY

2007

FY

2008



%

Loans

Rp138.5

tn

Rp174.5

tn

26.0%

Net

NPL Ratio

1.51%

1.09%

(27.8%)

Gross NPL Ratio 7.17% 4.73% (34.0%)

Low

Cost

Funds

Ratio

61.6%

56.7%

(7.9%)

[Low Cost Funds (Rp)] Rp152.4 tn Rp164.0 tn 7.7%

NIM

5.03%

(1)

5.45%

8.3%

Efficiency

Ratio

48.2%

42.3%

(12.3%)

f

b

(2)

Earnings

After

Tax

Rp4,346

bn

5,313

bn

22.3%

(6)

Maintaining

momentum

for

growth

Y‐o‐Y  Y‐o‐Y



Loans

by

SBU*

(Rp Tn)

Deposits

by

Product

– Bank

Only

(Rp Tn)

21.35

250

275 FX Time Rp Time

FX Demand Rp Demand FX Savings Rp Savings

14.82

4.04

4.38 135

150

Micro Small Cons Comm Int'l Corp



34.0% 

63.5% 13.3%

73 43

95.69 15.65 12.56

15.93

14.72 14.69

16.07

200 225 50

17 52 18.74

19.27 13.08 12.49

12.90

13.42

2.68 2.90

3.46 105

120

30.3% 35.4%

51 82

9.78

11.88 13.53 10.49

15.09

93.20 80.47

73.43

66.70

63.34 78.16

125 150 175

4.44

31.46 32 75

36.48

38.71

41.56

10 66 11.08

12.78

14.23 15.74

17.52

7.56 8.86

9.91

1.73

1.94

2.20

60 75 90

54.3%

2 8% 32.1%

57.4%

3 50

4.12

4.70 _5.36 7.72 _6.37 7.38

30.12

33.61

50.43

36.39 41.30 43.97

51.82

11.39

9.07

50 75 100

55 17 62.04 0.95

0.91 _2.14

2.82 _3.39 4.06

4.33

25.85 24.36 28.90

3 .46 32.75

10.66

30 45

60 2.8%

38.4% 57.4%

57.0%

45.17 57.61

81.54 76.29 80.81 75.80 82.23

3.50

0 25 50

Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08

29.94 36.12 34.67

44.84 42.27 47.77 55.17

0 15

Q4 '05 Q4 '06 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08

0.8%

Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q4 '05 Q4 '06 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08

(7)

Strong

and

liquid

balance

sheet

Assets

Amount

%

of

Assets

Liabilities

Amount

%

of

Liab.

(Rp Bn, Bank Only)

Cash

8,064

2.38%

Current

Account

66,908

19.77%

SBI &

BI

Placement

(net)

46,077

13.62%

Savings

89,611

26.48%

Placement

w/other

banks

(net)

22,345

6.60%

Time

Deposits

(Rp)

95,693

28.28%

Marketable

Securities

(

(net)

)

4,053

,

1.20%

Time

Deposits

p

(Fx)

21,354

,

6.31%

Government

Bonds

87,772

25.94%

Total

Deposits

273,566

80.84%

Loans

(Gross)

159,007

46.99%

Securities

Issued

779 0.23%

Provisions

(11,272)

(3.33%)

Deposits

from

other

banks

5,776

1.71%

Other

Advances

(net)

7,090

2.10%

Borrowings

8,638

2.55%

Investments

2,965

0.88%

Other

Interest

bearing

liabilities

2,837

0.84%

Other

Assets

_12,303

_3.64%

Non

Interest

bearing

liabilities

_16,294

_4.81%

Equity

_{30 514}

_{9 02%}

Equity

_30,514

_9.02%

(8)

FX

loan

exposure

contained

as

FX

funding

rises

FX

Loans

FX

Funding

(USD million)

582 ₂₄₇ 3,883 4,021

3,765

4,254

3,755 3,822

4,011

(663) (USD million) +529

356 501

583

823

675

677 730

691 694

687 55

45 38

33 3

6 22

9 984

895

282 248

382 3,108

2,860

3,238

3,472 3,492

3,158

3,348

1,592 _1,696 1,599

1,593

1,705

1,959 458

980

617

282 290 984

1 468 _{1 385}

1,395

1,834

2,908

2,731 2,820 2,998

2,306 466

1,159 _1,007 _1,041 1,291 1,468 1,112 1,385

2005 2006 2007 Q1‐2008 Q2‐2008 Q3‐2008 Q4‐2008 1,163

2005 2006 2007 Q1‐2008 Q2‐2008 Q3‐2008 Q4‐2008

Demand Deposit Time Deposit Savings

(9)

FX

LDR falls

to

80.5%

Rupiah

Loans*

&

LDR

FX

Loans*

&

LDR

43 0%

48.1%

52.5% 53.9% 52.4%

Loans (Rp tn)

LDR (%) _131.1%

123.7%

Loans (Rp tn) LDR (%)

40.4%

43.0%

41.4%

102.5% 104.4%

95.9%

111.0%

8 8

3 37 3 36 3

80.5%

.3 .5

.6 33

.6 35_.3

2005 2006 2007 Q1 '08 Q2 '08 Q3 '08 Q4 '08 2005 2006 2007 Q1 '08 Q2 '08 Q3 '08 Q4 '08

(10)

LDR of

59.2%

reflecting

strong

liquidity…

65.0%

Loans (Rp tn) LDR (%)

68.7 76.4

Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only

42.5%

53.7% 57.2% 56.4% 54.3%

62.2% 59.2%

LDR (%)

40.2 38.2 42.3 44.7

53.6

50.5

59.7 55.4

61.1

35 7 36 4 3 39.1 41.2

43.8 Corporate Commercial 26.3% 35.4% % 38.2 22.2

31.4 35.7 32.6 32.5 36.4 35.5

10 7 11 1 11.7 14.3 15.8

17.5 18.7 19.3

Commercial Consumer 4 3 .0 4 8 .3 6 5 .4 7 5 .9 9 4 .4 1 0 6 .9 1 1 7 .7 1 1 4 .3 1 1 6 .3 1 2 1 .7 1 3 8 .5 1 3 5 .5 1 4 9 .6 1 6 2 .8 1 7 4 .5 Q 4

Q4 Q4 4Q Q4 Q4 Q4 1Q Q2 Q3 Q4 Q1 Q2 Q3 Q4

7.6 10.2 10.0

13.7 13.1 13.3 13.8 15.1

1.7 1.9 2.1 2.7 2.9 3.5 4.0 4.4

1.5 3.7

8.5 10.7 11.1 11.7

Q 4 Q 4 Q 4 Q 4 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Small Micro 26.0% '0

0 '01 '02 '03 '04 '05 '06 '07 '07 '07 '07 '08 '08 '08 '08 '02 '03 '04 '05 '06 '07 '07 '07 '07 '08 '08 '08 '08

By Segment

(Bank only)

Loans (Rp tn)

Y‐O‐Y Growth (%)

% of Portfolio

Corporate 76.41 27.90% 48.05%

7.20%

Commercial 43.81 20.29% 27.55%

Small 15.15 10.34% 9.53%

Micro 4.38 63.43% 2.75%

QoQ Growth (%) YoY Growth (%)

Consumer 19.27 35.13% 12.12%

(11)

Rp83.1

tn in

loans

disbursed

in

2008

9 65

Loan Movement (Rp tn) – Bank Only Loan Disbursement by Segment (Rp tn) – Bank Only

83 13

19.72

32.11

6.05

3.72

9.65

83.13

6.38

5.51

159.01

18.47

126.83

83.13

45.24

Q3 '08 Disburs. Install. Payment FX Impact Write‐Offs Q4 '08

(12)

Rp23.7tn

in

loans

disbursed

in

Q4

‘08

Loan Movement (Rp tn) – Bank Only Loan Disbursement by Segment (Rp tn) – Bank Only

1 82

146 46

23.66

5.78

10.80 _5.88

0.42

159.01

1.71

0.95

1.82

146.46

4.92 23 66

14.26

23.66

14.26

Corporate Commercial Small Micro Cons Fin Total Q3 '08 Disburs. Install. Payment FX Impact Write‐Offs Q4 '08

(13)

Committed

to

Improving

Shareholder

Value

Reduce Cost of Funds Reduce Cost of Funds Improve Assets Yield Diversify into Fee Income

Business

Strategy

d i i /

Competitive,

sustainable

_{Reduce Provision/NPL}

Reduce Cost Efficiency

sustainable

returns,

with

above

‐

average

t

f

th

Support

Strategy

rates

of

growth

Leverage on cash generator to accelerate growth in higher yield business

Strategic

Alliances

(14)

Building

on

our

Business

and

Support

Strategies

with an Alliance Focus

with

an

Alliance

Focus

1. Strengthening our deposit franchise, to become

primary payment bank

Business Strategies Alliance Strategy Focus

 Improving supplier network and distributor

 Cross sell productsto

employees as customers:

2. Developing high yield business

3. Enhancing wholesale franchise and diversifying

wholesale transactions

4 Connecting the business leveraging synergy

Corporate

distributor

‐ Providing basic transaction and cash management

‐ Supporting suppliers and distributors in working capital financing

employees as customers:

‐ Payroll

‐ Mortgageor auto loans

‐ Corporate/ Retail cards

SBU Strategic

4. Connecting the business, leveraging synergy

5. Non‐organic growth & synergy in optimizing

subsidiaries

Cross sell productsfor employee as customers : Payroll, mortgage, auto loans commercial / retail cards

Alliances

Support Strategy

loans, commercial / retail cards

Developing wealth managementfor individual Director or owner operators

Increase IT Operations efficiency and

Increase earning assets monitoring and

Enhance employee productivities and

Implement Business

Solution Excellence to

Apply Value Based Management as the

Efficiency Risk Management Human Capital Information Technology Performance Culture

centralized and consolidated procurement

perfecting early

warning signal

Consolidated risk and monitoring subsidiaries

internal culture Apply best practice for

recruit, retain and develop

support payment bank strategy

Implement Service

Excellence Strategyto b i h

next step of Performance Culture support business growth

(15)

Q4

Deposits

rise

by

16.0%

Y

‐

o

‐

Y

and

18.5%

Q

‐

o

‐

Q

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

Deposit Analysis – Bank Only

15% Rp DD Rp Savings

Average Quarterly Deposit Costs (%) 9 5 . 1 2 1 .4 250 275

Rp Time Deposits FX Time Deposits

Low‐Cost Deposits (%)

9.5% 13.9% 11.4% 13.1% 11.9% 10.4%

8 8% 9.2%

10.9% 10%

15%

Rp TD 1 Mo. SBIs

7 8 .2 .7 2 3

. 20 1

.6 13

.9 1 2 .1 1 3 .7 1 5 .9 1 4 .7 1 4 .7 1 6 .1 175 200 225

61.5% 59 2% 6 1%

5.3% 4.7% 9.9% 7.4% 6.9%6.8% 6.3% 7.4% 9.3% 7.4% 8.8% 8.2%8.0%8.3% 9.2% 5% 10% 9.8 11.9 13.5 78.2 15.1 8

0 7₂

7 0 .0 6 9 .1 7 3 .4 ₆ 6 .7 6 3 .3 1 6 .5 2 1 .5 .4 0 .6 17

.3 11_.6

9 125 150 175 44.5% 45.3% 54.2%

58.6% 61.5% 59.2%_57.2% 6.1%

3.7% 3.0% _2.6% 2.5%2.5%2.2%2.8% 3.8% 3.5% _3.6%3.2% 3.0%2.9% 3.3% 6.3% 0% 5%

4 1 4 2 4.9 4.7

4.7 _5.4 7.7

6.4 7.4

.0 30.

3 3 .6 3 1 .0 3 3 .1 3 5 .4 5 0

.4 36

.3 44

.0 5 1 .8 9.1 11.911.4

9.1 10.214.611.2

8 7 .8 1 0 6 .9 1 0 0 .7 8 0 .5 6 6

.5 93_.2

.5 2_.9

75 100

23.1% 32.9%

31.4% 0%

4.0% _{3 7%}

3 7% 6%

FX DD FX TD

1 4 .3 1 8 .0 2 2 .1 2 9 .6 4 0 .6 5 2 .0 4 5 .2 5 7 .6 5 7 .2 6 2 .5 6 5 .7 8 1 .5 7 6 .3 8 0 .8 7 5 .8 8 2 .2 3.5 4.1 4.2 1 4 .1 3 1 .1 3 1 .2 2 4 .8 2 8

.8 0 1

9 7 .1 8 0 25 50 2.4% _2.1% 1.9% 1.6%1.8% 2.6% 3.7% 2.8%3.7% 0% 2% 4% 0 Q 4 '9 9 Q 4 '0 0 Q 4 '0 1 Q 4 '0 2 Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 4 '0 6 Q 1 '0 7 Q 2 '0 7 Q 3 '0 7 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8 13 0% Q 4 '0 2 Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 4 '0 6 Q 1 '0 7 Q 2 '0 7 Q 3 '0 7 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8

(16)

Building

a

strong

savings

deposit

franchise…

Savings Deposits (Rp tn)

Savings Deposit Growth Transaction channel growth

Other g p ( p )

As % of Total Deposits

National Share of Savings Deposits (%)

55.00 58.76 65.9 74.71 84.70 37 37 49.59 51.04 54.48 57.09 55.80 Other Payment Transfer Withdrawal/Inquiry Avg ATM Daily Vol (000)

30.6% 29 2% 34.6% 38.6%40.0% 35.6% 32.8%

4 6 6 8 8 9 1,0 1,0

19.6 29.3 39.07 30.81 29.79 37.37 16 2% 22.8% 22.7% 29.2%

16 9%17.5%16 0%17.2%18.5%19.1%19.3%17.9%

4 9 2 .1 6 0 7 .5 6 7 7 .0 8 5 3 .4 8 9 9 .7 9 7 6 .7 0 8 8 .8 0 4 3 .4 11.0%11.7% 16.2% 11.6%12.8% 15.3%

16.9% _16.0% 7. %

1 722

2,988 2,784 3,029

3,464 3,009 Quarterly Call Center Trans. (000)

Quarterly SMS Trans. (000)

1 7 .9 6 2 2 .1 2 2 9 .5 9 4 0 .5 0 5 2 .0 0 4 5 .2 0 5 7 .6 0 8 1 .5 4 8 1 .6 5 8 8 .5 2 8 2 .1 6 8 9 .6 1 1,069 3,072 6 ,9 8 8 1 1 ,5 7 5 1 6 ,9 7 4 1 7 ,9 6 9 1 9 ,7 7 2 1 8 ,1 1 6 2 2 ,3 2 8 27 679 1,016 1,086 1,722 Q 4 '0 0 Q 4 '0 1 Q 4 '0 2 Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 4 '0 6 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8 , 7 Q 4 '0 0 Q 4 '0 1 Q 4 '0 2 Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 4 '0 6 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8

(17)

…through

an

enhanced

transaction

capability

Quarterly Transaction Volume (Mn) 120 ATM 64.68 70 10 006 11,000

Quarterly Transaction Value (Rp tn) Quarterly Users (000s)

88.75

99.83110.13 100

Branch SMS Banking Internet Banking

49.11 57.66 60 8,828 10,006 9,000

10,000 Debit Cards

SMS Banking Internet Banking

67.76 69.97 77.89 80 35.54 40.71 40 50 2 6,642 7,629 7,000 8,000 42.1140 59

60 31.87

35.54 30 40 5,024 5,752 4,355 5,000 6,000

35.10 36.24 36.55 38.51

42.1140.59

19.7722.33 40

ATM

SMS Banking Internet Banking

1,897 2,413 2,989 3,652 3,000 4,000

8.33 11.57 12.24

16.97

0.84 1.31 1.71 2.39 3.37

5.55 0

1 02 1 81

0.56 0.88 1.60 2.20

3.61 3.81 0

10 1,523

358 469 564 705

849 988 0 1,000 2,000 15 0 Q 1 '0 6 Q 2 '0 6 Q 3 '0 6 Q 4 '0 6 Q 1 '0 7 Q 2 '0 7 Q 3 '0 7 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8

0.28 0.36 0.55 0.71 1.02 1.81

0 Q 1 '0 6 Q 2 '0 6 Q 3 '0 6 Q 4 '0 6 Q 1 '0 7 Q 2 '0 7 Q 3 '0 7 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8 0 Q 1 '0 6 Q 2 '0 6 Q 3 '0 6 Q 4 '0 6 Q 1 '0 7 Q 2 '0 7 Q 3 '0 7 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8

(18)

Enhancing

deposit

franchise,

building

on

wholesale

transactions

Wholesale Deposit Growth (CASA) (Rp tn)

Cash Management Growth in Commercial Banking 2 1

# of Customers

Total Transactions (000)

21 0 1.8

2.1

Comm Savings Comm Demand Corp Savings Corp Demand

0.6 19.4

21.0

+55%

+146%

4,066 632

0.7 12.1 _14.8

+146%

2,414 407

34.0 36.5

745 24.9 _23.0

2006 2007 2008 2007 2008

(19)

Q4

NIM falls

to

5.4%

on

asset

yields

of

10.5%

18.9%

20%

Yield on Assets

Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency* 15.9% 11.9% 13.2% 12.1% 12.0% 11.1%12.1% 13.2% 12.5% 14.0% 14.0% 13.1% 10.4% 9.2%10.9% 11 7% 10% 15% 13.0% 13.0%

10.7%11.0% _{10 5%}

10.8% 10.8%

Cost of Funds _IDR

8.2%

10.8%

8.0% _7.7% 8.0%9.2% 10.3%

7.4% 8.8% 8.2%

8.3% 11.1% 11.7%

5.4%

6.9%

5.0%

4.6% 4.0%4.6%5.8%

5% 10% 9.5% 8.9% 10.7% 9.4% 9.0%9.3%9.2% 10.1%10.5% 0%

Avg Loan Yield Avg Bond Yield Avg 1‐Mo. SBI Avg COF

NIM 6.3% 4 8% 7.3% 6.4% 4 8% 5.3% 15%

NIM 4.8% 4.8%

4.5%4.3%

3.8%4.2%

6.5% 7.6% 7.3%

5 7% _{5 3%} 5 8%5 8%6.8% 9.5% 10% FX 2 .4 % 3 .9 % 2 .8 % 3 .7 % 4 .3 % 3 .6 % 4 .9 % 5 .5 % 4 .9 % 4 .9 % 4 .7 % 5 .1 % 5 .5 % 6 .0 % 5 .4 %

5.1% 5.7% 5.3% 5.8%5.8%

6.7%

1.4% 1.8%

5.3% _5.3% _4.9%

2.6%2.7%2.2% 3.8% 4.0% 3.4% 3.5% 2.7%2.6%3.0% 0% 5% Q 4 '0 0 Q 4 '0 1 Q 4 '0 2 Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 4 '0 6 Q 1 '0 7 Q 2 '0 7 Q 3 '0 7 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8 Q 4 '0 0 Q 4 '0 1 Q 4 '0 2 Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 4 '0 6 Q 1 '0 7 Q 2 '0 7 Q 3 '0 7 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8 17 *Excluding the impact of non‐recurring interest income

(20)

Building

our

high

yield

business

in

Micro

&

Small…

Micro Credits

(Rp Bn)

19.7% 12.7%

Consumer Loans

(Rp Bn)

Small Credits

(Rp Bn) Loan

Yields 12.8%

1,699

4,720

1,734

12.9%

Q4 2007 Growth Q42008

63.4%

Disbursement Breakdown (Q4 ‘08)

Q4 2007 Growth Q4 2008

38.3%

Disbursement Breakdown (Q4 ‘08)

Q4 2007 Growth Q42008

12.9%

Disbursement Breakdown (Q4 ‘08)

Disbursement Breakdown (Q4 08) Disbursement Breakdown (Q4 08)

1,201

143 1 158

Disbursement Breakdown (Q4 08)

3,055

1,365

1,969

8,272 185

3,055

3,587 4 3,737

532

Rural Banks Micro Unsecured Micro TOTAL Mortgage Home Equity

Loan

Payroll Loan Other Total

‐

ram

llian

lin

ff.

(21)

…as

well

as

Consumer

lending,

which

rose

35.4%

Y

‐

o

‐

Y

on

Mortgages

g g

and

Credit

Cards

Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type Rp19.27 tn 2 ,1 1 2 ,2 2 3 956 1 ,1 4 5 1 ,2 7 9 18,000 20,000 Other Credit Cards Payroll Loans Home Equity Loans

Loan Type

Growth (%)

Y‐o‐Y Q‐o‐Q

3 3 ,6 5 8 3 ,9 9 9 3 ,9 9 3 1 1 ,9 0 8 1 ,9 2 6 2 ,0 0 8 1 3 3 350 425 495 619 12 000 14,000

16,000 Home Equity Loans

Mortgages

Other

158.26%

11.65%

Credit

Cards

16.55%

5.23%

3 ,6 3 ,7 0 2 3 ,7 6 1 3 ,7 2 1 1

,9 1,9₀

1 ,9 9 2 ,1 6 2 ,2 8 2 ,4 2 2 ,6 4 4 2 ,7 8 9 3 ,0 1 0 3 ,1 9 2 8 1 ,3 6 7 1 ,2 7 9 1 ,2 4 1 1 ,2 3 1 1 ,2 9 3 1 ,3 5 8 1 ,4 2 6 1 ,6 7 8 8 72

180 196 211 218 224 230

350

8 000 10,000 12,000

Payroll

Loans

32.65%

(0.16%)

Home Equity Loans

8 28%

(1 08%)

6 7, 7,7

8 ,0 4 ,1 3 1 4 ,0 3 3 3 ,9 7 9 3 ,8 6 7 3 ,6 6 6 3 ,5 2 2 3 ,4 0 4 3 ,3 9 0 3 ,4 3 7 1 2 1 ,9 2 1 3

0 06 96 5 85 27 4

1 ,2 7 0 21 72 4 000 6,000

8,000

_Home

_Equity

_Loans

_8.28%

_(1.08%)

Mortgages

49.59%

4.34%

283 1 ,5 2 2 3 ,0 5 0 3 ,2 5 0 3 ,4 5 2 3 ,5 7 4 3 ,6 1 0 3 ,6 6 3 3 ,8 6 5 4 ,5 0 1 5 ,3 8 2 6 ,3 9 3 ,1 9 9 7 1

7 52

328 2 ,8 5 2 1 ,8 0 2 815 21 0 2,000 4,000

Total

Consumer

35.38%

2.84%

19 283_Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 1 '0 6 Q 2 '0 6 Q 3 '0 6 Q 4 '0 6 Q 1 '0 7 Q 2 '0 7 Q 3 '0 7 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8 *Auto & Motorcycle Loans channeled or executed through finance companies = Rp4.79 tn in our Commercial Loan Portfolio

(22)

1 ,3

3

1 k

V

is

a

&

M

as

te

rc

ar

d

s

tr

an

sac

te

d

R

p

2 .0

tn

in

Q

4

2

0

8

Man d ir i V is a & Mas te rc ar d s a n d E O Q R e ce iv a b le s To ta l C ar d Q u ar te rl y Sal e s b y Ty p e o f Tr a n sa ct io n (Rp B n ) 1 1 5 9 1 ,2 2 6 1 ,2 7 3 1 ,3 3 1 R e ce iv ab le s (Rp B n ) C ar d s (0 0 0 s) 6 3 6 3 3 2 5 9 1 9 Tr an sf e r B al an ce C as h A d van ce Re ta il 8 7 2 9 1 9 9 6 6 1 ,0 3 3 1 ,0 8 9 1 ,1 5 9 6 1 6 2 5 7 9 1 0 3 2 6 5 1 7 5 2 7 6 5 7 8 4 8 1 7 8 7 2 6 8 6 7 6 2 5 8 1 1 1 7 1 9 1 7 3 3 8 6 2 6 1 5 7 8 1 5 6 5 9 6 8 7 2 6 8 2 4 1 6 1 0 1 8 8 2 3 4 2 3 1 1 567.5 814.9 1,270.2 1,367.4 1,279.4 1,240.8 1,230.7 1,292.8 1,357.5 1,426.2 1,677.6 1,907.5 1,925.9 2,007.7 2,112.7 2,223.2 2 2 6 535 521 532 606 600 553 621 755 836 936 1,067 1,225 1,514 1,443 1,668 1,904

1,914 20

5 9 2 4 4 8 7 8 5 2 6 5 9 7 7 2

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

5 1 2 6 0 3 1 5 6 6 7 5 4 3 8 4 4

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

(23)

Diversifying

our

strength

in

Wholesale

lending…

Breakdown of Net Expansion in Corporate Lending Q4 ’07 – Q4 ’08 (Total Rp16.67 tn) 5 232 Mf F&B % Breakdown of Net Expansion in Commercial Lending Q4 ’07 – Q4 ’08 (Total Rp7.39 tn) 4 89

B S O h

% 272 74% 2 372 2,898 3,136 5,232 Bus Serv Comm Mfg‐Oth

Mfg‐F&B _59.45%

43.55% 62.96% 86 75% 876 1,303 4,789 l Mfg‐Oth Construction

Bus Serv‐Oth 272.74%

27.09% 31.41% 1,203 1,545 1,674 2,372 Construction Plantations Mfg‐Chem

Bus Serv _86.75%

33.00% 25.53% 50 12% 691 818 854

Trading‐Oth Distribution Agriculture _23.91% 40.05% 18.48% 578 716 904 ,

Trading‐Exp Utilities Mining‐Oth

50.12% 75.01% 44.47%

97.36% 517

554 638

Mfg‐Text Mfg‐P&P

Mfg‐Chem _17.94%

62.70% 34.50%

(157)

335 527

Mfg‐Wood Trading‐Dom

Trading‐Ret _525.28%

164.09%

(25.85%) 196

459 510

Trans‐Oth Mfg‐F&B

Mass Trans _31.81%

27.77% 136.96% Rp Billion (1,530) (673) (186) Other Mfg‐Metal

Mfg‐P&P _(4.94%)

(47.68%) (25.36%) Rp Billion (590) (538) (109)

Real Estate Mining

Mfg‐Wood _(9.54%)

(35.24%) (73.55%) 21 p (1,907) (2 ,0 0 0 ) (1 ,0 0 0 ) 0

1_,0

0 0 2 ,0 0 0 3 ,0 0 0 4 ,0 0 0 5 ,0 0 0 6 ,0 0 0

Mining‐Oil & Gas _(25.95%) _(3,581)

(4 ,0 0 0 ) (3 ,0 0 0 ) (2 ,0 0 0 ) (1 ,0 0 0 ) 0

1_,0

0 0 2 ,0 0 0 3 ,0 0 0 4 ,0 0 0 5 ,0 0 0 Other (73.10%)

(24)

…into

Fee

‐

based

Income

Non‐Loan Related Fees &

FY ‘07 Q3 ‘08 Q4 ‘08 FY ‘08 Q4 % FY%

Breakdown of Q4 2007 & 2008 Non‐Loan Related Fees & Commissions (Rp bn)

Commissions FY 07 Q3 08 Q4 08 FY 08 (Q‐o‐Q) FY %

Administration Fees 735.46 300.59 311.78 1,111.03 3.7% 51.1%

Opening L/Cs, Bank Guarantees &

399 14 131 89 141 57 464 92 7 3% 16 5%

Capital Markets 399.14 131.89 141.57 464.92 7.3% 16.5%

Subsidiaries 354.32 112.23 82.98 477.13 (26.1%) 34.7%

Transfers, Collections, Clearing &

186 55 55.67 55 69 216 95 0 4% 16 3%

Bank Reference 186.55 55.67 55.69 216.95 0.4% 16.3%

Credit Cards 251.39 99.86 112.67 378.20 12.8% 50.4%

Mutual Funds & ORI 26.36 15.10 13.32 49.03 (11.8%) 86.0%

Others* 494.26 164.12 217.17 726.00 32.3% 46.9%

Total 2,447.48 879.46 935.18 3,423.25 6.3% 39.9%

Total Operating Income# _{16 160 56} _{5 122 73} _{5 834 48} _{19 885 03} _{13 9%} _{23 0%} Total Operating Income 16,160.56 5,122.73 5,834.48 19,885.03 13.9% 23.0%

Non‐Loan Related Fees to

Operating Income** 15.1% 17.17% 16.0% 17.2% (6.8%) 13.7%

* Others includes Syndication, Payment Points, ATMs, Debit Cards, etc.

** Non‐Loan related fees & commissions/(Total Operating Income ‐Non‐recurring interest income)

(25)

Strong

FX

revenues

but

limited

derivative

exposure

800

FX Fees(Rp bn) – Bank Only

Notional Fair Derivative Derivative Derivative Exposure (Rp bn) – Bank Only

Transactions Notional Amount

Fair Value

Derivative Receivable

Derivative Payables

Foreign Exchange

F d b 493 459 4 38

600 Forward ‐buy 493 459 4 38

Forward ‐sell 409 350 59 1 Swap ‐buy 2,162

2,287 144 19

767.0 400

Swap ‐sell 4,369 4,341 122 94 Interest Rate

Swap ‐interest rate 22 31 10

378.1 200

Total 360 161

Less: Allowance for possible losses (6) ‐

61 9

298.5

Total 364 161

61.9 0

(26)

FY

NPLs decline

by

Rp2.79

tn on

write

‐

offs

of

Rp5.5

tn

Non‐Performing Loan Movements (Rp bn) – Bank Only Movement by Customer Segment (Rp Bn)

383.4

235.6

Cons

Micro/Small

11.32 _1.35

2.90

0.93

Comm Corp

5.51 2 09

8 53

_2,561.0

327 6

181.2

2.09

8.53 1,112.1

327.6 34 5

1,066.9

1,279.4

2,327.2

230.0

13.2

34.5

UG to PL DG to NPL W/O Q4 '07 UG to PL DG to NPL Payment Write‐Offs Other Q4 '08

(27)

Q4

NPLs of

Rp8.5

tn due

to

FX

impacts

as

well

as

Rp2.1

tn in

downgrades

Non‐Performing Loan Movements (Rp bn) – Bank Only Movement by Customer Segment (Rp Bn)

217.5

76.9

Cons

Micro/Small C

8.53

658.3

Comm Corp

7.20

1.25

2.07

0.46

0.42

1.39

8.53

92.3

28.7

51.2

1,076.5

1,119.9

1,076.5

260 2

115.4

40.5

260.2

UG to PL DG to NPL W/O Q3 '08 UG to PL DG to NPL Payment Write‐Offs Other Q4 '08

(28)

Gross

NPLs rise

to

4.7%

with

provisioning

coverage

still

strong

at

127.1%

20,000 50%

NPL Movement ‐Consolidated

7 0 .9 % 212.6%

g

Category 2 Loans – Bank Only 16,000 18,000 , 40%

Cat 2 %

% 146.7% 190.4% 175.8% 201.7%187.5% 12,000 14,000 26 18% 30% 1 9 2 5 .2 8 % 129.5% 139.1% 128.8% 86.7% 109.0%122.6% 138.9% 127.1% 100 9% 151.1% 8,000 10,000 26.18%

14 98% 15.86%

20% 9 .8 0 % 1 6 .3 4 % 1 6 .2 9 % 1 5 .4 7 % ₁ 70.0% 44.4% 100.9% 4,000 6,000 9.16% 14.98% 12.87% 15.86% 13.99% 11.46% 9.22% 9.69% 10% 9 .7 0 % ₇ .3 0 8 .6 0

% 7_.1

0 % ₁ 2 .2 0 % 7 .1 7 4 ,0 3 3 1 5 ,3 5 0 1 2 ,6 5 5 1 6 ,2 0 2 1 0 ,9 8 3 8 ,3 3 4 1 2 ,9 1 2 1 6 ,9 6 6 1 6 ,7 5 0 1 5 ,8 5 4 1 5 ,5 8 6 1 5 ,1 4 8 1 4 ,0 5 8 1 3 ,4 5 1 1 3 ,5 0 2 1 5 ,4 1 2 0 2,000 Q

4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

9.22%

% 0_% 7% 5

.1 4 % 4 .7 4 % 4 .4 4 % 4 .7 3 % 1 5 .3 % 3 .3 % 1.09% Q

4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 1Q Q2 Q3 Q4 1Q Q2 Q3 Q4 4

'9 9 4 '0 0 4 '0 1 4 '0 2 4 '0 3 4 '0 4 4 '0 5 4 '0 6 1 '0 7 2 '0 7 3 '0 7 4 '0 7 1 '0 8 2 '0 8 3 '0 8 4 '0 8

2 ‐Special Mention Loans (Rp Bn)

4 '9 9 4 '0 0 4 '0 1 4 '0 2 4 '0 3 4 '0 4 4 '0 5 4 '0 6 1 '0 7 2 '0 7 3 '0 7 4 '0 7 1 '0 8 2 '0 8 3 '0 8 4 '0 8

Gross NPL Ratio Net NPL Ratio

(29)

Cash

Provisioning

remains

high

for

both

NPLs

and

II

loans

NPLs (Rp tn)

Q4

(Rp tn)

NPLs (%)

Collateral Valuation Details Non‐Performing Loans by Segment

Collectibility 1 2 3 4 5

Corporate 5.65 0.97 7.93%

Commercial 1.83 0.33 4.19%

Small 0.35 (0.05) 2.31%

Total Cash

Prov. (Rp bn) 1,468 2,776 290 427 6,311 % Cash

Provisions 1.1% 18.0% 29.7% 86.7% 89.4%

S a 0 35 (0 05) 3 %

Micro 0.23 0.10 5.17%

Consumer 0.47 (0.01) 2.45%

Total 8 53 1 33 4 69%*

o s o s Collateral Prov.

(Rp bn) ‐ 4,209 398 ‐ 1,022

# of Accounts 12 1 ‐ 8

Total 8.53 1.33 4.69%

• Bank Mandiri’s current provisioning policy adheres to BI requirements

A f 31 D b ’08 l l i i

• Collateral has been valued for 21 accounts and collateral provisions of Rp5,629 bn (48.6% of appraised value) have been credited against loan balances of Rp7 381 bn

* Excluding Restructuring Losses and loans to other banks.

Provisioning Policy

Performing Loans

Non‐Performing Loans • As of 31 December ’08, loan loss provisions excess

to BI requirements = Rp430 bn

been credited against loan balances of Rp7,381 bn

• Collateral value is credited against cash provisioning requirements on a conservative basis. For assets valued above Rp 5bn:

Policy Loans Loans

Collectibility 1 2 3 4 5

BI Req. 1% 5% 15% 50% 100%

–Collateral is valued only if Bank Mandiri has exercisable rights to

claim collateral assets

–70% of appraised value can be credited within the initial 12

months of valuation, declining to:

•50% of appraised value within 12 to 18 months

BMRI Policy 1% 5% 15% 50% 100%

BMRI pre‐2005 2% 15% 50% 100% 100%

50% of appraised value within 12 to 18 months

•30% of appraised value within 18 to 24 months •No value beyond 24 months from appraisal

(30)

Q4

2008

Annualized

net

downgrades

of

2.60%

on

loans

originating

since

2005

Total Loans originated since 2005

g

Net Upgrades (%)/Downgrades (%)# _Q4 ₂₀₀₈ _Details Loan Q4 ‘08

Balance Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

DG to NPL

UG to PL Background Balance

(Rp bn) 2006 2007 2007 2007 2007 2008 2008 2008 2008

NPL %

PL %

Corporate 56,693.3 0.02 ‐ 0.49 0.55 ‐ ‐ 0.10 0.11 0.48 0.59 0.11

Commercial 27,202.6 2.04 0.11 0.60 0.18 0.02 0.33 0.14 0.21 1.05 1.09 0.04 Small/Micro 14,608.1 1.62 1.87 1.56 1.07 0.59 0.92 0.58 0.59 1.20 1.33 0.13 Consumer 17,260.4 0.25 0.78 0.34 0.28 0.01 0.42 0.13 0.22 0.13 0.32 0.20

Total 115,764.4 0.68 0.42 0.29 0.23 0.08 0.28 0.18 0.21 0.65 0.76 0.11

# %downgradesandupgrades are quarterly % figures

(31)

Progress

on

selected

debtors

as

of

31 Dec

’08

 3 companies (Bosowa Berlian Motor, Bosowa Multi Finance and Semen Bosowa Maros) have been restructured effective 26 September 2008. These loans’ collectibility have been upgraded to 1 (Current) for Bosowa Multifinance and 2 (Special Mention) for others.

 Total remaining outstanding NPL’s as of 31 December 2008 were Rp1 341 billion

Semen

Bosowa

Maros

Total remaining outstanding NPL s as of 31 December 2008 were Rp1,341 billion.

 The obligor settled loans in 2008 amounting to Rp138 billion.

 We are now monitoring the approved restructuring.

Maros

Djajanti

 Loans outstanding to this group as of 31 December 2008 were Rp663.6 billion.

 The Bank is now in the process of liquidating the loan collateral. In 2008, we have already received USD 15.3 million from liquidationq of collateral.

 The loans have been fully provided.

(32)

Strengthening

Risk

Management

&

Monitoring

System

y

Corporate

Customer

by

Rating

Summary

of

Risk

Management

Initiatives

C dit

• Enhance business process credit approval, CR

methodologies & tools (monitoring system)

• Develop & enhance collection systems

High Risk (Rating C‐G) Medium Risk (Rating BBB – B)

Credit

Develop & enhance collection systems

• Optimize credit portfolio management system

• Consolidate risk profile (incl. overseas offices &

subsidiaries – Credit, Market & Operational)

15% 12% 11%

100%

Low Risk (Rating AAA – A)

Market

• Implementation of stress test analysis

• Development of derivative system (summit)

• Enhance our Treasury policy

34%

24% 21%

60% 80%

• ORM implementation in all unit, incl. overseas

Enhance our Treasury policy

64% 68%

40% 60%

Operational

offices & subsidiary

• Set up Operational Risk Committee under RCC

• Synchronization of Risk‐Based Audit

methodology with RCSA (ORM)

51%

64% 20%

(33)

Q4

Cost

to

Income

Ratio

drops

to

40.4%

on

restrained

Personnel

expenses

CIR* (%)

Annual Avg CIR (%)

p

Q4 ‘08 FY ‘08 Q4

(Q‐o‐Q) FY

Breakdown of Q3 2007 & 2008 Operating Expenses Quarterly Consolidated Operating Expenses & CIR*

58.9%

g ( )

Personnel Expenses

Base Salary 357,178 1,427,269 0.11% 17.22%

Other Allowances _588,904 _2,039,033 17.65% 7.68%

28 2% 40.2% 47.2% 40.4% 40.4% 47.2% 42.4%

Post Empl. Benefits 94,539 417,472 (25.89%) 34.91%

Training 43,651 211,889 (31.92%) (10.92%)

Subsidiaries _112,391 _468,105 (8.51%) 26.34%

1_,2

8 6 9 1 ,0 4 9 1 ,3 0 9 1 1 ,1 7 5 1 ,1 7 1 ,1 9 7 28.2% Total Personnel

Expenses 1,196,663 4,563,768 2.11% 13.27% G & A Expenses

IT & Telecoms _{218 055} _{791 861} 19 40% 0 42%

9 5 7 6 4 9 3 2 7

377

7₉

5 9 2 9 9

1_,0

IT & Telecoms 218,055 791,861 19.40% 0.42%

Occupancy Related _312,628 _1,008,130 19.36% 9.29%

Promo. & Sponsor. 150,162 553,047 61.34% 16.36%

Transport & Travel _{90 182} _{302 273} 15.72% 7.23%

3 3 6 7 5 3 7 7 5 7 4 9 1 ,0 3 4 8 4 2 1 ,0 1 6 7 1 0 7 4 8 9 5 7 9 9 3 7 6 4 1 ,0 3 4 9 1 6 1 ,1 4 8 7

Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

Transport & Travel _90,182 _302,273 15.72% 7.23%

Prof. Services _147,293 _396,520 54.09% 21.46%

Employee Related _86,184 _315,879 (1.09%) 13.28%

Subsidiaries _{143 078} _{493 974} 21 38% 41 83%

Q 4 '0 0 Q 4 '0 1 Q 4 '0 2 Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 4 '0 6 Q 1 '0 7 Q 2 '0 7 Q 3 '0 7 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8

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

Subsidiaries _143,078 _493,974 21.38% 41.83%

Total G & A Expenses _1,147,582 _3,861,684 25.26% 12.86%

(34)

Leveraging

cash

generator

to

accelerate

high

yield

growth

25.2% 2 537

2,300

Corporate ₂₀₀₆

g

Net Interest Income

NII (Rp bn) % of Total

Alliance Strategy Focus

18.3%

23.2%

19.4%

3.3%

2,632 2,537

304

2,112

Treasury & Int'l Commercial

2006 2008

Building Future Growth Engine

(Consumer& Micro/Retail) CM = Rp5.425 trillion

Leveraging Our Cash Generator

(Corporate& Treasury) CM = Rp3.286 trillion

5.7% 39.8%

48.8%

8.5%

6,632 768

771

3,628

Micro & Retail Treasury & Int l

8.5%

7.5% 1,017

771

Consumer Finance

Fee Income

Fees (Rp bn) % of Total

10.9% 9.9%

5.1%

11.3% 480

420

127 268

Commercial

Corporate ₂₀₀₆

2008

3.3% 30.8% 49.2%

48 8% 2 091

903

1,176 762

Micro & Retail Treasury & Int'l

Strengthen Emerging Business

(Commercial Banking) CM = Rp2.427 trillion

48.8%

5.6%

8.4% 359

2,091

138

(35)

Leveraging

cash

generator

to

accelerate

high

yield

growth

and

deposit

franchise

Rp Billion

Consumer Loans from Alliance Program

(10 top corporate clients)

Co‐Branding Prepaid Card Program

g

p

791

897

1,128

1,259 1,275

319 391

486 532

Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08

Plantation Small & Micro Lending from Alliance

Program Rp Billion

Corporate Card Holder from Alliance Program

(10 to corporate clients)

350 347

418 416 427

Program Rp Billion

1,616 1,620

1,796 1,869

2,007

(10 to corporate clients)

149

234 259

268

Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08 Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08

(36)

Enhancing

synergies

&

values

from

subsidiaries

Investment Bank Investment Bank Syariah Banking

Syariah Banking InsuranceInsurance NicheNiche BankingBanking MultiMulti‐‐FinanceFinance

Total Assets Rp17 0 tn

Bond Trading Volume Rp31 01 tn

Total Assets Rp3 57 tn

Total Loans Rp257 bn

Total Financing Rp1 715 4 bn

Bank Sinar

Harapan Bali TUNAS FINANCE

Rp17.0 tn Rp31.01 tn Rp3.57 tn Rp257 bn Rp1,715.4 bn

Total Financing Rp13.3 tn

Bond Underwriting Rp1.73 tn

Annual FYP Rp572 bn

Net Interest Margin* 10.9%

Net Interest Margin 6.9%

Total Deposits Equity Trading Volume Fee Contribution ROA ROA (Before Tax) Total Deposits

Rp14.9 tn

Equity Trading Volume Rp42.57 tn

Fee Contribution Rp103.8 bn

ROA 3.5%

ROA (Before Tax) 7.1% ROE

21.0%

ROA 0.6%

ROE 55.2%

ROE 12.5%

ROE (After Tax) 33.1%

• Remain the leader in syariah financing

• Expansion of business to fully utilize current capital b

• Provide end‐to‐end bank assurance business

• Enhance operating model • Improve risk

•Use Bank Mandiri’s network infrastructure

th h t I d i t

• Capital injection program over 3 years

• Cross‐sell syariah products to Mandiri customers

base

• Cross‐sell capital market services to broad range of Mandiri customers

• Refocus business toward

• Continue to build cross‐ sell opportunities in various segments

• Bank assurance products complete our suite of

management systems and IT

• Improve productivity

throughout Indonesia to develop multi‐finance segment, especially in vehicle‐ownership financing.

customers • Refocus business toward higher fee income

complete our suite of consumer offerings

* Excluding deposits made by Bank Mandiri

(37)

FY

2008

operating

profit

up

45.4%

from

FY

2007

excluding

non

‐

recurring

interest

income

FY

2008

FY

2007

4,653

Rp billion Rp billion

9,380 3,163

8,211

15,285

Up 45.4%

8,211

7,738

15,285

10,558 12,786

7,263

Excluding Non‐ recurring Q1 I t t I

Net Interest Income Fee‐Based Income Overhead Expenses & Pre‐provision

Interest Income

35 Net Interest Income Fee‐Based Income Overhead Expenses &

Others

Pre‐provision Operating Profit

Notes :

1. Fee based income excluding gain on sale & increasing value GB & securities 2. Overhead expenses + others excluding provisions

Net Interest Income Fee‐Based Income Overhead Expenses & Others

Pre‐provision Operating Profit

(38)

Strong

income

growth…

Summary P&L

(Rp Billions) FY 2007 Q3 2008 Q4 2008 FY 2008

Q4 ‘08 _

(Q‐o‐Q %)

FY _

(%)

Interest Income _{23 929} _{6 830} _{8 331} _{27 336} _{35 8%} _{14 2%}

Interest Income _23,929 _6,830 _8,331 _27,336 _35.8% _14.2%

Interest Expense _(11,143) _(2,825) _(4,055) _(12,051) _42.1% _8.1%

Net Interest Income _12,786 _4,005 _4,276 _15,285 _37.8% _19.5%

Other Operating Income _3,163 _1,094 _1,570 _4,653 _103.1% _47.1%

Gain from Increase in Value

& Sale of Bonds 228 (10) ‐ ‐ (100.0%) (100.0%)

Provisions, Net (1,740) (944) (796) (2,595) (438.7%) 49.1%

Personnel Expenses _(4,029) _(1,172) _(1,197) _(4,564) _(4.7%) _13.3%

G & A E

G & A Expenses _(3,422) ₍₉₁₆₎ _(1,148) _(3,862) _14.1% _12.9%

Other Operating Expenses** ₍₇₇₄₎ ₍₂₂₉₎ ₍₃₈₆₎ _(1,006) _53.8% _30.0%

Profit from Operations _6,212_, _1,861_, _2,361_, _7,911_, _45.5% _27.4%

Non Operating Income ₁₂₁ ₉₃ ₍₇₎ ₁₅₈ _(106.5%) _30.6%

Net Income Before Tax _6,333 _1,954 _2,354 _8,069 _36.0% _27.4%

(39)

…supported

by

strong

capital

at

15.7%

26 2%

IDR bn

Capital & RWA Movement Profit After Tax & ROE

31.3%

27.7%

CAR

Q4 PAT

21.5%

26.2%

23.6% 22.8%

15.8%18.1%

RoE ‐AT

26.4%

23.4%

25.3%

23.7%

25.3%

21 1%

819

775

Q4 PAT

Q3 PAT

Q2 PAT

Q1 PAT _2.5%

10.0%

115 9 112 2

134.0

172.9

21.1%

15.7%

645

799

58.1

72.5

91.9

108.9 115.9 112.2

1 1_,7 ₁

,3 602

690

967

610 372

42.6

13.3 15.4 17.0 25.5 27.5 27.4 28.4 28.3 27.2

2000 2001 2002 2003 2004 2005 2006 2007 2008

308

519 510

97 305

610 372

(623)

2000 2001 2002 2003 2004 2005 2006 2007 2008

RWA (Rp tn) Total Capital (Rp tn)

(623)

2001 2002 2003 2004 2005 2006 2007 2008

(40)

O

i

Operating

Performance

(41)

Corporate

Banking:

Contribution

Margin

declines

on

rate

increase

Rp bn Rp bn

Performance to Date: Q4 2008 Contribution Margin (after PPAP) Strategies for 2008

1. Refine organization to be more

i d t f d & t th

2,098

423 139

2,763 ₁₀₄

2 483

Q1 Q2

Q3 Q4

2,906

(14 6%)

industry focused ,& strengthen

funding sales team to gain rapid

business growth

2. Strengthen Corporate Banking

2,483

692

659

(14.6%)

2,483

_Floor_in_Surabaya_and_Medan_to

broaden and deepen our

geographic coverage

3 Strengthen our Syndication &

1,077

537

3. Strengthen our Syndication &

Structured Finance team, as

well as our synergy with

Mandiri Sekuritas, to provide a

broader variety and more

592

547

broader variety and more

sophisticated product range,

and accelerate transactional

banking development in

Corporate Banking 440

545 741

Corporate Banking

4. Broaden relationships to offer

products and services to our

corporate clients’ suppliers,

l d t

2007 2008

employees and customers,

through strategic alliance

(42)

Mandiri

Sekuritas’

financial

performance

has

been

impacted

p

by

y

the

global

g

economy

y

crisis

Dec ’07

(Audited)

Dec ’08

(Audited)

Growth Y‐o‐Y

(%)

(Rp Bn)

Revenues

426

429 0.84%

• Investment

Banking

158

152 (3.80%)

• Capital Market

Capital

Market

226

187 (16.90%)

• Treasury

10

17 77.90%

• Investment

Mgt

32

71 124.88%

Operating

Expenses

199

255 28.39%

Earnings

After

Tax

108

0.96 (99.11%)

Equity

Transactions

49,408

42,568

(13.84%)

SUN

Transactions

70,751

31,010

(56.17%)

Bonds

Underwritten

3,452

7,133

106.63%

ROA

5.8%

0.6%

(89.66%)

(43)

Treasury

&

International

Banking

Operating Profit

Rp bn

1 Intensif cross selling of fore prod cts Strategies for 2008

1. Intensify cross‐selling of forex products

and services to our corporate and large

commercial clients

2. Leverage our overseas network to

.2 5.8 .6

2006 2007 2008

maintain our syndicated facilities and

trade financing to high quality

customers in selected sectors

3. Enhancing our regional distribution

2006 2007 2008

Loans Deposits

Business Volume (Rp bn)

Rp bn

3. Enhancing our regional distribution

(RTM) in high growth, export‐oriented

regions in collaboration with Micro &

Retail Banking

4 S k t iti t h th i ld

4. Seek opportunities to enhance the yield

of our recent portfolio

5. Reinforce Bank Mandiri’s

competitiveness through new offices in

Malaysia and Shanghai

1 2 3 7 3 1 8 5

2005 2006 2007 2008

(44)

Commercial

Banking:

Strong

revenues

from

both

Liabilities

&

Assets

Q1 Q2

Rp bn Rp bn

Performance to Date: Q4 2008 Contribution Margin (after PPAP) Strategies for 2009

1. To widen asset margin especially

477

Q1 Q2

Q3 Q4

477 217

2,832

405

2,114

15%

2,427

in_Medium Small Commercial_Commercial Loan_Loan and

Segment (Limit under Rp100

Billion)

617 578

1,451

405

2,427

2. To increase sustainability of loan

portfolio by expanding “KMK”

fixed product.

3 Financing the subcontractors of

564

617 _{3. Financing}_the_{subcontractors}_of

large corporates, particularly in

infrastructure, mining, and

telecom

4 T it h lli t t i

946

630

1,120.0

4. To pitch alliance strategic

partner target sfrom the 10

biggest corporate customers

and 17 biggest commercial

t th t h

487

703

customers that have

significantly business impact.

5. To develop bundling products by

utilizing push product and

2007 2008

(45)

Commercial Banking : Stronger Platform Improved

Distribution Capability

y

Expanding Scope of

Distribution,

2008

Solid

_Low

&

Stable

_Cost

_Funds

Source

of

Product 2007 2008 Growth

Demand

19 36 20 98 8 4%

Rp Tn Sumatera

Loans = Rp 6.4 Tn Funds = Rp 5.6 Tn

Kalimantan

Loans = Rp2.7 Tn

Funds = Rp2.2 Tn

Eastern

Loans = Rp0.9 Tn

Funds = Rp1.8 Tn

Deposit 19.36 20.98 8.4%

Rupiah 15.24 15.10 ‐0.9%

FX 4.11 5.88 43.1%

Saving

Deposit* 1.75 2.12 21.1%

Total Low

Cost Fund 21.11 23.10 9.4% Cost Fund

Total

Funding 30.52 35.22 15.4%

Java and Bali

Loans = Rp34.3 Tn

Funds = Rp25.6 Tn

CBC = 17 Unit Floor = 18 Unit TSC = 11 Unit TSD = 6 Unit

Low Cost Fund Ratio = 65.59% Funding Jawa & Bali 72.69% from total funding

(46)

Strong

growth

from

our

Syariah Banking

subsidiary

13.6% 13.5% 13.5%

y

Net Interest Margin & Cost of Funds Financial Performance (Rp bn)

Q4 ’06 Q4 ‘07 Q1 ‘08 Q2 ’08 Q3 ’08 Q4 ’08

12.3% 12.2% 12.4%

13.0%

12.4%

% YoA

Financing 7,415 10,305 11,150 12,730 13,766 13,251

Deposits 8,219 11,106 12,246 14,270 13,890 14,897

Assets 9,555 12,888 14,031 16,285 16,539 17,064

EAT 65.48 114.64 46.24 96.28 147.39 193.15

Ratios:

ROA 1.10% 1.54% 2.05% 1.94% 1.91% 1.82%

ROE 10 23% 15 94% 22 64% 22 78% 22 18% 20 98%

Syariah Financing (Rp tn)

ROE 10.23% 15.94% 22.64% 22.78% 22.18% 20.98%

Net NPF 4.64% 3.43% 2.63% 2.15% 2.20% 2.45%

.8 ₅ 6 6_. 6_.7 6_. 6_. 6_.

5.7%

5.4% _5.3% 5.4% 5.4% 5.3% 5.3% 5.7%

Financing

90.2%

92.8%

91.1% 91.1%

89.2%

99.1%

89.0%

FDR CoF

% 5_.6

% 3%

% 3_% 4_% .2_%

9.30 10.31

11.15

12.73 13.77 13.25 _NIM

2005 Q4 '06 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 7.41

(1)

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15 14 10 10 6 4 3 3 3 2

51,457 46,461 06,483 05,553 64,830 47,962 36,967 32,255 33,711 23,959

BRI Mandir BNI BCA Danamo Niaga Panin BII Permat Lippo 33.0%

32.1% 27.8% 27.4% 26.3% 25.1% 21.2% 20.1% 15.5% 6.1%

BRI Lippo BCA Permat Danamo Panin BII BNI Mandir Niaga

93.7% 90.7% 90.4% 86.4% 83.8% 80.6% 79.1% 73.2% 62.1% 54.7%

Niaga Danamo Permat BRI Panin BII Lippo BNI Mandir BCA

Ra

ti

o

f

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ro

vi

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to

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i on a a on i

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352% 198% 178% 146% 130% 118% 104% 81% 78% 69%

BCA BRI Lippo Mandir Danam Permat BNI BII Panin Niaga

0.1% 0.4% 0.4% 0.6% 0.7% 0.8% 1.1% 1.9% 1.9% 2.1%

BCA Lippo Mandi Danam Permat BRI BNI BII Panin Niaga

0.6% 0.8% 2.1% 2.8% 2.9% 3.0% 3.2% 3.4% 4.4% 6.5%

BCA Lippo Danam BII BRI Niaga Perma Panin Mandi BNI

8

ri mon

mon ta ri

(2)

A

ss

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ili

ty

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ix

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in

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ss

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(%

)

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ss

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ts

(Rp

b

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)

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ie

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ts

(p

.a.

)

(%

)

8 8 7 7 7 7 7 6 5 5 29 22 21 17 10 6 6 5 4 3 1 1 1 1 1 1 1 89.5% 85.1% 76.9% 75.7% 75.2% 75.1% 71.1% 67.7% 57.6% 56.9% Niaga Permata BRI Lippo Danamo BII Panin BNI Mandiri BCA 97,948 27,110 19,564 78,369 00,988 61,443 60,289 54,465 47,107 38,568 Mandiri BCA BRI BNI Danamo Panin Niaga BII Permata Lippo 14.9% 14.8% 12.1% 11.6% 11.4% 11.0% 10.7% 9.9% 9.9% 9.0% BRI Danamo Permata Panin Niaga Lippo BII BNI BCA Mandiri a on i on a

C

o

st

o

f

Fu

n

d

s

(p

.a.

)

(%

)

Lo

w

C

o

st

D

e

p

o

si

t

Ra

ti

o

(%

)

on a i

To

ta

l

D

e

p

o

si

ts

(Rp

tn

)

2 1 1 1 3.4% 3.7% 3.8% 4.1% 4.6% 5.3% 5.3% 6.1% 6.2% 6.4% BCA Mandir BNI BRI Lippo BII Permat Niaga Panin Danam 76.8% 67.5% 63.9% 59.2% 59.1% 41.0% 39.7% 33.4% 27.0% 26.3% BCA Lippo BRI Mandir BNI BII Permat Panin Niaga Danam 30,851 92,897 75,394 43,327 70,763 50,496 43,479 42,166 37,340 30,253 Mandir BCA BRI BNI Danam Niaga Panin BII Permat Lippo

8

6

ri ta m… ri ta mon ri mon ta A ve rag e

(3)

E

ff

ic

ie

n

cy

m

e

as

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s

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lat

iv

e

to

p

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rs

B

an

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,

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r

2

0

8 R

e

ve

n

u

e

/

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m

p

lo

ye

e

(Rp

M

n

)

Lo

an

s/

E

m

p

lo

ye

e

(Rp

M

n

)

C

o

st

/A

ss

e

ts

(%

)*

789 742 716 661 627 561 561 521 448 222

Mand Panin BCA Perma BNI BRI Lippo Niaga BII Danam

9,832 7,641 7,290 6,633 5,632 5,219 5,144 4,898 3,973 1,840

Panin Niaga Perma Mand BNI Lippo BCA BII BRI Danam

2.4% 2.7% 2.8% 3.4% 3.4% 4.2% 4.5% 4.5% 4.5% 4.6%

Panin Mand BCA BNI Niaga BII Danam Lippo BRI Perma

diri ata mon

ata diri

mon

C

o

st

/

In

co

m

e

(%

)

D

e

p

o

si

ts

/

E

m

p

lo

ye

e

(Rp

M

n

)

P

re

Ta

x

In

co

m

e

/E

m

p

lo

ye

e

(Rp

M

n

)

diri mon ata

43.6% 45.3% 45.9% 46.5% 50.6% 57.3% 67.0% 70.6% 71.4% 73.4%

BCA Pani Man BRI BNI Dana Lippo Perm BII Niag

11,564 10,456 9,400 8,075 8,045 7,581 6,590 5,960 4,601 2,008

Panin Man BCA Perm Niag BNI Lippo BII BRI Dana

412 381 368 248 201 180 169 107 97 95

BCA Man Pani BRI Niag Perm Lippo BII Dana BNI

8

n diri amon o mata

n diri mata

a o amon

diri n a mata

o amon

*An

rag

(4)

M

e

as

u

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o

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sc

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d

re

tu

rn

s

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lat

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e

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rs

B

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k

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ly

,

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s

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p

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m

b

e

r

2

0

8 B

ran

ch

e

s

E

m

p

lo

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e

s

A

T

M

s

38, 35, 22, 20, 18, 7, 6, 4, 4, 3, 5, 3, 2, 1,

978 978 819 637 412 398 313 256 253 235

BNI Mandiri BCA BRI Danamon Lippo Panin Niaga Permata BII

,120 ,242 ,079 ,520 ,907 ,075 ,277 ,624 ,591 ,760

BRI Danamon Mandiri BCA BNI BII Niaga Permata Lippo Panin

,710 ,346 ,325 ,431 700 691 690 552 483 352

BCA Mandiri BNI BRI BII Lippo Danamon Permata Niaga Panin

R

e

tu

rn

o

n

E

q

u

it

y

(A

ft

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r

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x)

(%

)

N

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In

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re

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Mar

g

in

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(%

)

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tu

rn

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n

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ts

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e

fo

re

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x)

(%

)

32.9% 28.3% 22.5% 22.4% 15.7% 15.2% 14.2% 13.1% 13.1% 8.1%

BRI BCA Danamo Mandir Niaga Lippo Permat BII Panin BNI

10.4% 8.5% 6.4% 6.3% 6.2% 5.8% 5.5% 5.2% 5.2% 5.0%

BRI Danam Permat BCA BNI Lippo Mandir BII Niaga Panin

4.1% 3.4% 3.3% 2.6% 2.3% 2.0% 1.8% 1.8% 1.4% 0.9%

BRI BCA Danamo Mandir Panin Niaga Permat Lippo BII BNI

8

on i a

on ta ri

on i a

rag

(5)

Equity

Research

Contact

Details

BROKERAGE ANALYST TELEPHONE E‐MAIL

ABN AMRO Asia Securities Indonesia Trevor Kalcic 65‐6518‐7997 trevor.kalcic@sg.abnamro.com

BAHANA SECURITIES Teguh Hartanto 6221‐250‐5081 Teguh.Hartanto@bahana.co.id

BNP PARIBAS PEREGRINE Tjandra Lienandjaja 6221‐5798‐4661 tjandra.lienandjaja@asia.bnpparibas.com

CAZENOVE Tan See Ping 65‐6395‐7692 SeePing.Tan@cazenove.com

CIMB‐GK SECURITIES Indonesia Mulya Chandra 6221‐515‐1330 mulya.chandra@cimb.com

CITIGROUP SECURITIES Stephan Hasjim 6221‐5290‐8579 stephan.hasjim@citi.com

CLSA LIMITED Nicolaos Oentung 6221‐2554‐8829 nicolaos.oentung@clsa.com

CREDIT SUISSE Teddy Oetomo 6221‐2553‐7911 Teddy.oetomo@credit‐suisse.com

DANAREKSA SEKURITAS Elvira Tjandrawinata 6221‐350‐9777 elvira@danareksa.com

DBS VICKERS SECURITIES Agus Pramono 6221‐3983‐2668 agus.pramono@id.dbsvickers.com

DEUTSCHE VERDHANA SECURITIES Raymond Kosasih 6221‐318‐9525 raymond.kosasih@db.com

FOX‐PITT, KELTON Jim Antos 852‐3191‐8988 Jim.antos@fpk.com

J.P. MORGAN ASIA Admond Amit 6221‐5291‐8579 Admond.sw.amit@jpmorgan.com

KIM ENG SECURITIES Yusuf Ade Winoto 6221‐3983‐1455 yawinoto@kimeng.co.id

MACQUARIE CAPITAL SECURITIES Indonesia Ferry Wong 6221‐515‐7335 ferry.wong@macquarie.com

MANDIRI SEKURITAS Made Suardhini 6221‐526‐3445 Made.Suardhini@mandirisek.co.id

MERRILL LYNCH Arief Koeswanto 6221‐515‐8826 arief_koeswanto@ml.com

90

MORGAN STANLEY Roger Lum 65‐6834‐6743 roger.lum@morganstanley.com

UBS Joshua Tanja 6221‐570‐2378 Joshua.tanja@ubs.com

(6)

Plaza Mandiri

Jl. Jend. Gatot Subroto Kav. 36‐38

Jakarta 12190

Main Tel: 526‐5045

PT Bank Mandiri (Persero) Tbk

09 02 30 Q42008AnalystsMeeting

k

(

) bk

PT

Bank

Mandiri

(Persero)

Tbk

Full Year 2008

Full

Year

2008

Results Presentation

Share

Information

Bank

Mandiri

Presentation

Contents



































All

financial

milestones

achieved

in

2008...

Metric

Target

Achievement

Gross

NPLs

<5%





NPL Provision

Coverage

>120%



Normalizing ROE

~18%



Normalizing

ROE

18%



Margin

Improvement

~5.2%



Growth in Savings Deposits

>Rp90 tn



Growth

in

Savings Deposits

>Rp90

tn



Retain

Efficiency

Ratio

<50%

