2004 Q1 Analysts Meeting

0

PT Bank Mandiri (Persero)

PT Bank Mandiri (Persero)

Tbk

Tbk

.

.

Bank Mandiri Presentation Contents

Overview Page #

„ Q1 Summary P&L 3

„ Key Balance Sheet Items & Financial Ratios 4

„ Quarterly Loan Growth & LDR 5

„ Loan Portfolio Growth by Business 6

„ Q1 Corporate Loan Details 7

„ Q1 Commercial Loan Details 8

„ Quarterly Loan Collectibility Profile 9 „ Quarterly Asset Quality & Provisioning 10 „ Recap Bond Portfolio Summary & Movement 11 „ Quarterly Asset Mix & Interest Source 12

„ Quarterly Funding Mix 13

„ Quarterly Savings Deposits & Funding Rates 14 „ Retail Channel & Transaction Growth 15

„ Quarterly Capital Structure 16

„ Quarterly Net Interest Margins and Spread 17 „ Quarterly Non-Interest Operating Income 18

„ Quarterly Overhead Spending 19

„ Industry Efficiency Comparison 20

„ Annual Core Earnings Analysis 21

„ Quarterly Profitability 22

„ Potential Upsides 23

„ Corporate Actions 24

„ Conclusion 25

Overview Page #

„ Q1 Summary P&L 3

„ Key Balance Sheet Items & Financial Ratios 4

„ Quarterly Loan Growth & LDR 5

„ Loan Portfolio Growth by Business 6

„ Q1 Corporate Loan Details 7

„ Q1 Commercial Loan Details 8

„ Quarterly Loan Collectibility Profile 9

„ Quarterly Asset Quality & Provisioning 10 „ Recap Bond Portfolio Summary & Movement 11 „ Quarterly Asset Mix & Interest Source 12

„ Quarterly Funding Mix 13

„ Quarterly Savings Deposits & Funding Rates 14

„ Retail Channel & Transaction Growth 15

„ Quarterly Capital Structure 16

„ Quarterly Net Interest Margins and Spread 17

„ Quarterly Non-Interest Operating Income 18

„ Quarterly Overhead Spending 19

„ Industry Efficiency Comparison 20

„ Annual Core Earnings Analysis 21

„ Quarterly Profitability 22

„ Potential Upsides 23

„ Corporate Actions 24

„ Conclusion 25

Financial Summary Page #

„ Summary Balance Sheet 27

„ Recap Bond Portfolio Detail 28

„ Bank Mandiri Credit Ratings 29

Loan Movement & Portfolio Detail

„ Q1 PL/NPL Movement 31

„ Q1 NPL Details 32

„ Q1 Category 1 and 2 Loan Movement 33

„ Q1 Category 2 Loan Details 34 - 35

„ Historical Restructured Loan Movement 36

„ Q1 Restructured Loan Details 37

„ Q1 Non-Performing Loan Details 38

„ Q1 Loan Portfolio Sector Analysis 39

„ Q1 Rupiah Loan Details 40

„ Q1 FX Loan Details 41

Financial Summary Page #

„ Summary Balance Sheet 27

„ Recap Bond Portfolio Detail 28

„ Bank Mandiri Credit Ratings 29

Loan Movement & Portfolio Detail

„ Q1 PL/NPL Movement 31

„ Q1 NPL Details 32

„ Q1 Category 1 and 2 Loan Movement 33

„ Q1 Category 2 Loan Details 34 - 35

„ Historical Restructured Loan Movement 36

„ Q1 Restructured Loan Details 37

„ Q1 Non-Performing Loan Details 38

„ Q1 Loan Portfolio Sector Analysis 39

„ Q1 Rupiah Loan Details 40

Bank Mandiri Overview

Bank Mandiri Overview

Operating Highlights & Financial Performance

Q1 2004

Summary P&L Information – First Quarter 2004

(11.9)

1.3 777

1.4 882

Gain from Increase in Value & Sale of Bonds

(56.1)

0.1 36

0.1 82

Non Operating Income

(9.2)

(0.3) (168)

(0.3) (185)

Other Operating Expenses**

21.6

4.0 2,465

3.2 2,028

Net Income Before Tax

29.4

(0.8) (491)

(0.6) (379)

G & A Expenses

33.9

(0.9) (558)

(0.7) (417)

Personnel Expenses

NA

(0.4) (243)

0 2

Provisions, Net

12.6

2.9 1,744

2.4 1,549

Net Income After Tax

24.8

4.0 2,429

3.1 1,946

Profit from Operations

86.4

0.9 557

0.5 299

Other Operating Income

46.5

4.2 2,555

2.7 1,744

Net Interest Income

(50.9)

(4.3) (2,623)

(8.4) (5,345)

Interest Expense

(27.0)

8.5 5,178

11.1 7,089

Interest Income

(%)

% of Av.Assets Rp (Billions)

% of Av.Assets* Rp (Billions)

YoY Change

Q1 2004 Q1 2003

* % of Average Assets on an annualized basis

1,165 87 29.8% 22.0% 138.5%

8.4% 44.6%

4.6% 33.7% 34.0% 3.9% 23,299 172,018 239,383 107,317 76,652 Q1 2004

20.6 20,395

19,323 Total Equity

42.5% 36.6%

LDR

27.7% 26.6%

Total CAR(2)

19.4% 19.2%

Tier 1 CAR(2)

139.1% 197.3%

NPL Provisions / NPLs

40.4% 39.0%

Cost to Income(1)

23.6% 36.7%

RoE – after tax (p.a.)

2.8% 3.2%

RoA - before tax (p.a.)

20.6 1,020

966 Book Value/Share (Rp) (3)

13.0 229

77 EPS (Rp) (3)

8.6% 6.6%

Gross NPL / Total Loans

3.4% 3.0%

NIM (p.a.)

(8.2) 178,811

187,438 Customer Deposits

(7.8) 249,436

259,567 Total Assets

(29.7) 122,907

152,728 Government Bonds

11.6 75,943

68,673 Gross Loans

YoY Change

(%) FY 2003

Q1 2003

IDR billion / %

Key Balance Sheet Items and Financial Ratios

(1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income) (2) Bank only

44.6

41.2 42.3 43.0 44.5

49.2

42.5

48.3 48.3 50.4

58.7

65.4 68.7 66.8

72.6 75.9 76.7

26.5% 26.3% 28.3% _25.3% 27.5%

35.4% 36.1%

42.5%44.6%

Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04

Loans (Rp tn) LDR (%)

No loan growth in Q1 2004; LDR increase due to lower

deposits

Consolidated Quarterly Data

* Note: Includes IBRA loan purchases of Rp 5 tr

-7.7%

2.6% 1.7%

10.6%

-13.6%

13.7%

-0.1%

13.1%14.7%

5.0%

-2.7%

8.7%

4.6%

1.1% 19.4%

0.5%

12.4%

8.5%

38.1%35.3%42.3%_32.5%

23.6%

16.1%

11.8% 4.4%

3.4%

2.5% -0.3%

QoQ Growth (%) YoY Growth (%)

42.7

22.9

1.4

41.8

25.6

3.1

38.9

30.1

4.2

Corporate

Commercial

Consumer

Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04

-8.9%

Continued growth in Consumer in Q1; Better segment mix

As of Mar. 2004; Non-consolidated numbers

Loans by Customer Type (Rp tn) – Bank Only

5.8%

41.1%

53.2%

Share of Loan Book, Jan ‘03 - Mar ‘04

34.7% 2.3%

62.9%

„Target loan mix by 2004 (originally 2007)

¾Corporate: 50%

¾Non-Corporate: 50%

„Strong Consumer Loan Growth across a range of products*

+201.8% Y-o-Y Growth

7.0% 19.6

18.3 Unsecured Loans

(3.6%) 785.7

814.9 Credit Cards

20.3% 594.0

493.5 Cash Collateral

Loans

64.6% 539.8

328.0 Collateralized

Personal Loans

4,212.5

1,859.6 411.1 Mar 2004

Total Consumer

Payroll Loans Mortgages

(Rp bn) Growth

% Dec 2003

12.6% 3,742.0

3.2% 1,802.0

45.2% 282.7

+31.3%

Q1 2004 Loan Detail: Corporate Loans

Loan Profile: Q1 Corporate Loans Only (Rp 38.9 tn)

1 2 3 4 5 Current < 30 31-60 61+ Mfg-F&B Mfg-Chem Mfg-P&P Trading Mfg-Text. Agri. Mfg-Cem. Mining Constr. Other < 5%

IDR USD Other Invest. WC R e st ru ct u re d No Hi s to ry IBRA IBRA Restr.

2 to 1 1 to 2 NC 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C o lle ct ib ilit y Ca t 2 A g in g Se c to r C u rre n c y Pu rp o s e Hi s to ry Mo v e me n t

„91.0% are performing loans

„11.5% are in Category 2

„76.2% of Category 2 loans are current in interest payments

„Primary sectors in Corporate are:

¾ Food & Beverage Mfg

¾ Chemical Mfg

¾ Pulp & Paper Mfg

¾ Trading, Hotels & Restaurants

„46.8% are Rupiah loans

„53.1% are Investment loans

„39.5% are Restructured loans

„11.0% were purchased from IBRA Rp 38.9 trillion in loans were in the Corporate portfolio in Q1, or 53.2% of total loans. Of the Corporate Loans in Q1:

Q1 2004 Loan Detail: Commercial Loans

Loan Profile: Q1 Commercial Loans Only (Rp 30.1 tn)

1 2 3 4 5 Current 1 Day < 30 31-60 61+ Trading Agri. Bus. Serv. Constr. Trans. Mfg-Text. Mfg-Wood Mfg-Chem. Mfg-Others Other < 5%

IDR USD Invest. WC R e st ru ct u re d No Hi s to ry IBRA IBRA Restr.

2 to 1 1 to 2

NC U/G to PL D/G to NPL

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C o lle c tib ility Ca t 2 A g in g Sec to r C ur renc y P ur pos e Hi s to ry M o v em ent

„ 91.1% are performing

„ 19.4% are in Category 2

„ 53.2% of Category 2 loans are current in interest payments

„ Primary sectors in Commercial are:

¾ Trading, Hotels & Restaurants

¾ Agriculture

¾ Business Services

¾ Construction

„ 77.1% are Rupiah loans

„ 45.7% are Investment loans

„ 24.2% are Restructured loans

„ 7.4% were purchased from IBRA Rp 30.1 trillion in loans were in

Commercial portfolio in Q1, or 41.1% of total loans. Of the Commercial Loans in Q1:

0% 20% 40% 60% 80%

100%

Q1 '00 Q2 '00

Q3 '00 Q4 '00

Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02

Q2 '02 Q3 '02

Q4 '02 Q1 '03

Q2 '03 Q3 '03 Q4 '03 Q1 '04

5

Loss

4

Doubt

ful

3

Subs

ta

nda

rd

2

Sp

eci

a

l M

e

n

tio

n

1

Pass

14.

5

%

15.

0

%

24.

8

%

26.

2

%

35.

7

%

0% 20% 40% 60% 80% 100%

Ca

t 2

%

Cat. 2 as% of Total Loans

Loan Collectibility

NPL Movement - Consolidated

62.2%

8.4%

7.3%

9.7%

19.8%

1.6%

138.5%

146.7%

129.5%

82.3%

190.4%

Q1

'0

0

Q3

'0

0

Q1

'0

1

Q3

'0

1

Q1

'0

2

Q3

'0

2

Q1

'0

3

Q3

'0

3

Q1

'0

4

Gross NPL Ratio

Net NPL Ratio

Prov / NPL

Asset Quality

„ Conservative provisioning at 31 Mar ‘04:

¾Prov/NPL coverage = 138.5%

¾Collateral values not deducted for 3,4,5

¾Excess to BI requirement = Rp 2.8 tn

„ Restructuring and recovery during Q1 ‘04:

¾Written-off loans recovered = Rp 189 bn

¾NPL collections = Rp 184 bn

„ NPL Breakdown by Customer Segment NPLs PLs

50%

15% 3

15%

5% 2

100% 2%

Mandiri Policy

100% 50%

1%

BI Requirement

5 4

1

Provisioning By Collectibility

73.2 4.2 30.1 38.9 Loans Outstanding

(Rp tn)

3.46% 0.15

Consumer Total

Commercial Corporate

(Bank Only) NPL Ratio

(%) NPLs

(Rp tn)

8.66% 6.34

8.92% 2.68

9.03% 3.51

Recap Bond Portfolio

Portfolio Sales as of Mar 2004 (Rp bn)

100.0%

107.3 68.5

37.3 1.4

Total

100.0%

7.4 85.9 14.0

Total

63.9% 34.8%

1.3% % of Total

6.9%

7.4

-Hedge Bonds

80.0%

59.7 24.8

1.3 Variable Rate

13.1%

1.4 12.5

0.1 Fixed Rate

% of Total

HTM

(Nominal Value)

AFS

(Mark to Market)

Trading

(Mark to Market) At Fair Value,

Mar 2004 (Rp tn)

177.4 176.9

153.5 _148.8

123.0

107.3 4.0

17.5

1.0 15.8

24.5

0 40 80 120 160 200

1999 2000 2001 2002 2003 Q1 '04 0 5 10 15 20 25 Recap Bonds

Bond Sales

Bond Portfolio Movement (Fair Value), 1999 – Q1 ‘04

Rupiah (Trillions)

653 1,868

Realized Profit Unrealized Profit Bonds Sold

IDR bn

60 (52)

17,540 24,505

Q1 ‘04 2003

0 27,500 55,000 82,500 110,000 137,500 165,000 192,500 220,000 247,500 275,000

Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '03

Government Bonds Loans Other Assets

60.6%

48.5% 74.1%

68.2% 67.8%

63.6% 75.4% 74.7%

74.9%

34.1%

41.6% 29.9%

22.1% 19.3%

19.0% 18.1%

19.0% 19.8%

Int. from Bonds Int. from Loans

As a

%

of Total Interest Income

Growing Contribution from Loans vs. Bonds – Bank Only

0 20 40 60 80 100 120 140 160 180 200

Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04

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

Funding Mix Improves

Deposit Analysis – Bank Only

Deposits by Type (Rp tn)

48.7%

44.6% 46.4%

53.7%

51.7%

57.3% _56.2% 61.5% 62.0%

26.8%

48.6% 44.5%

37.0% 33.8%

32.1% 31.4%

32.1% 32.9%

Savings Deposit Growth Generating a Better Funding Mix

40.5 15.3 28.9 22.3 17.6 24.0% 10.3% 15.5% 11.9% 10.0% 11.5%

11.2% _15.2% 16.8%

Q1 ' 00

Q2 ' 00

Q3 ' 00

Q4 ' 00

Q1 ' 01

Q2 '0 1 Q3 '0

1 Q4 '0

1 Q1 '0

2 Q2 '0

2 Q3 '0

2 Q4

'02 Q1 '

03 Q2 '

03 Q3 '

03 Q4 '

03 Q1 '

04

Savings Deposits (Rp tn) As % of Total Deposits

National Share of Savings Deposits (%)

3.7% 3.7% 6.1% 6.9% 2.7% 5.1% 4.4% 10.6% 9.5% 8.1% 5.4% 10.8% 7.1% 15.9% 13.8% 11.6% 6.6% 17.3% 7.4% 15.1% 13.0% 9.9% _8.4% 17.2% J an ' 02 Ma r ' 0 2 Ma y '0 2 Jul '0 2 Se p '0 2 No v '0 2 J an ' 03 Ma r ' 0 3 Ma y '0 3 Jul '0 3 Se p '0 3 No v '0 3 J an ' 04 Ma r ' 0 4 Demand Deposits Savings Time Deposits 1 Mo. SBIs

72.4

112.3

7.1

184.5 163.9

17.7 49.7

106.4 385.9

679.2 698.3

725.2

1,114.4 1,069.4

61.8

281.6

695.2

158.7 51.8

26.6

Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 SMS Subs. (000)

SMS Trans. (000) Call Center Trans. (000)

ATM, Credit Card and Phone Banking Growth

336.5 268.7

52.2 94.2

159.0 226.2

271.8

116,649 98,004

2,709 6,270

12,201

25,429

41,744

62,551

88,310

Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04

Avg Daily Volume (000) Avg Daily Value (Rp Mn)

ATM Network Average Daily Transaction Volume and Value

Mandiri Visa Card Holders and Receivables Phone Banking Subscribers & Transactions

275.4 225.7 245.3 275.3

338.2 357.5

567.5

747.9 814.9 645.9

823.2 _785.7

Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Cards (000s)

44.0 _{42.3 42.6} 47.0 51.3 51.6

58.1 61.0 _56.1 64.3

72.5 77.8 79.5

89.5 91.9 94.2

15.1 14.6 15.1 15.4 17.8 16.8 18.4 17.0

20.7 21.0 25.0

25.5 28.1

13.3 13.3

9.7

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04 RWA (Rp tn) Total Capital (Rp tn)

26.1%

31.3%32.2%

29.3%

26.4% 26.6%

27.9%

29.8% 31.4%

28.5% 29.3% 29.8%

23.4%

28.6% 27.7%

26.4%

CAR

BI Min Req

High CAR maintained through strong internal capital

generation

Margins improving through better Assets/Liabilities mix

All figures - Bank Only

2.

6% 2.5%

3.

0% 2.

4% 2.5%

3.

0% 3.0%

3.

9% _2.

9% 2.9%

3.

4% 2.

8% 3.0%

3.

3% 3.3%

3. 7% 4. 7% 0. 8% 0. 8% 1. 8% 2.

2% 1._1% 1.5% 1.7% 2.2%

2.

1% 2._{0% 2.}

5% 2. 2% 2. 2% 2. 5% 3. 2% 3. 2% _4. 2% Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Spread NIM 11.3% 10.9% 11.9% 13.0%

12.4% 12.6% 12.8% 13.0%

13.9% 13.6% 13.5% 13.0% 11.8% 11.5% 10.4% 9.5% 9.3% 10.5% 10.1% 10.1%

10.8%11.2% 11.1% 11.1% 10.8%

11.8% 11.6% 11.0% 10.8% 9.6% 9.1% 7.2% 6.3% 5.1%

Yield on Assets Cost of Funds

46 57

89

135

89

162

112

173 180

339

150

190

302

282

56.7 32.8

52.8 9.6

102 101 107.

4

20.3

Q1 '00

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04 Credit Cards

Transfer, Collection, Clearing & Bank Reference Others

Fee from Subsidiaries

Opening L/C & Bank Guarantees

Administration Fee for Deposit & Loan

7.2% 5.1%

6.3% 4.8%

4.1%

4.8% 4.9%

10.5%

2.3%

% of Operating Income

379 276 359 336 319 433 259

736

360 487 490

723

387 470 561

733

491 370

325 211 294

293

417 327

402 457

409

485 476

394

558 380

666

957

Q1 '00

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04 G&A Expenses (Rp bn) Personnel Expenses (Rp bn)

Efficiency ratios maintained despite salary adjustments and

higher G&A expenses

33.7% 38.9%

42.5%

36.9% 34.4%

27.0%

33.8% 40.0%

37.1%

31.1%

39.9%

42.8%

40.4% Cost to Income Ratio (%)

Scale maintains efficiency advantage over competitors

Bank Only, As of March 2004

31.2%38.3%39.7% 43.9%45.2%52.3% 68.2%68.2%74.3% 90.0% Ma n d ir i BN I Da n a m o n BR I BC A C it iba

nk BII

Pe rm a ta BT N Li pp o 229 191 147 112 95 70 ₆₀ 49 89 ₈₇ C it iba nk Ma n d ir i BN I BT N Da n a m o n BC A BR I BI I Pe rm a ta Li pp o 9,131 7,715 7,051 5,5325,483 3,5433,4893,351 2,4362,914 Man d ir i C it ibank BN I BT N BC A Li ppo BI I Pe rm a ta BR I Da n a m o n 3,967 1,383 728 1,388 1,487 1,576 1,608 3,421 3,458 3,891 Ma n d ir i C it iba

nk _BNI

BT N BR I Da n a m o n Pe rm a

ta _BII

BC

A

Li

pp

o

Q1 Revenue/ Employee (Rp Mn)

Q1 Cost/ Income (%) Loans/ Employee (Rp Mn) Deposits/ Employee (Rp Mn) 131.8 116.3

55.4 52.5 50.0 _44.4

33.9 31.9 18.2 8.4 C it iba nk Ma n d ir i BN I Da n a m o n BC A BR I BI I BT N Pe rm a ta Li pp o

Q1 Pre Tax Income/Employee (Rp Mn)

0.5 0.6 0.6

0.9 1.0

1.1 1.1 1.1

1.3 1.3 Ma n d ir i BN I BC A Da n a m o n Pe rm a

ta _BII

BT N Li pp o BR I C it iba nk Q1 Cost/Assets (%) Industry Average

3,357

4,145

3,514

4,305

1,769

1,454

260

114

126

2,021

2,072

777

1,027

0 1,500 3,000 4,500 6,000 7,500

2000 2001 2002 2003 Q1 '04

Gain on Sale/Value of Securities FX Gain

Core Earnings

Pre-Provision Operating Profit

IDR bn

Q1 2004 core earnings expand by 72.2% from Q1 2003

8.1%

21.5%

26.2%

24.0%

30.8%

RoE - After Tax (Annualized)

Q1 PAT of Rp 1,744 bn is an increase of 12.6% on Q1 2003

472

₃₀₈

1,168

1,549

1,744

290

1,300

602

690

967

1,017

1,528

(410)

645 799

819

829

2000 2001 2002 2003 2004

Q4 PAT Q3 PAT Q2 PAT Q1 PAT

Potential Upsides

Written-off Loans

Written-off Loans

„ Aggregate of IDR 21.29 tn (US$ 2.49 bn) in written-off loans as of end-March 2004, with significant recoveries on-going:

¾ 2001: IDR 2.0 tn (US$ 224 mn)

¾ 2002: IDR 1.1 tn (US$ 123 mn)

¾ 2003: IDR 1.2 tn (US$ 147 mn)

¾ Q1 ’04: IDR 0.19 tn (US$ 22 mn)

Property Revaluation

Property Revaluation

„ Property revalued by Rp. 3.0 trillion in our June accounts

„ Based upon a valuation by Vigers as of June 2003, an additional Rp. 2.8 trillion remains un-booked

Conservative Provisioning

Conservative Provisioning

„ Conservative provisioning policy resulted in allowances on loans exceeding BI’s minimum requirements

¾ As of 31 March 2004, excess provisions totaled IDR 2.814 tn (US$ 329 mn)

Loan Collateral Undervalued

Loan Collateral Undervalued

„ Collateral values on NPLs are generally not included for provisioning purposes due to outdated valuations

Corporate Actions

Dividend Policy

Dividend Policy

„ 50% Dividend payment policy maintained „ Based upon Full Year EPS of Rp 229:

Rp 65 :

¾ Final Dividend approved at AGM on 05 May 2004

11 June 04 :

¾ Cum Dividend Date

14 June 04 :

¾ Ex Dividend Date

: : :

30 June 04

¾ Payment Date

Rp 50

¾ Less Interim Dividend paid in Dec 2003

Rp 115

In Conclusion

Despite no overall growth in assets and loans during Q1 2004:

„

Asset mix continues to improve

„

Liability mix continues to improve

„

Retail banking continues to grow (now on the asset side)

„

Margins improving

„

Transformation in corporate governance, risk

management and corporate culture continues

„

Asset mix continues to improve

„

Liability mix continues to improve

„

Retail banking continues to grow (now on the asset side)

„

Margins improving

„

Transformation in corporate governance, risk

management and corporate culture continues

Bank Mandiri Financial Summary

Bank Mandiri Financial Summary

Summary Balance Sheet – Quarters ending March 31 & Dec 31

23,299 88,456 41,719 41,843 172,018 67,758 (8,894) 6,421 70,231 76,652 68,518 37,321 1,478 107,317 4,335 10,358 28,135 239,383 Rp (Billions) Mar. ‘04 20.6 2,721 20,395 19,323 Shareholders’ Equity (29.3) 10,331 99,272 125,032

Certificate & Time Deposits

42.2 4,872 41,307 29,335 Savings Deposits 26.5 4,887 38,232 33,071 Demand Deposits (8.2) 20,090 178,811 187,438

Total Deposits – Non-Bank

41.3 750 6,542 4,545 Non-Performing Loans 11.6 8,952 75,943 68,673 Loans (0.8) (1,039) (9,100) (8,968) Allowances (35.6) 8,002 70,081 106,471 HTM 2.7 4,359 51,437 36,329 AFS (29.7) 12,533 122,907 152,728 Government Bonds 13.5 7,913 66,843 59,705

Loans – Net

9.5 8,202 69,401 64,128 Performing Loans (85.1) 173 1,389 9,928 Trading 49.2 506 5,215 2,906

Securities - Net

198.0 1,210

6,972 3,476

Current Accounts & Placements w/Other Banks

12.6 3,286

27,089 24,980

Cash & Placements w/BI

(7.8) 27,957

249,436 259,567

Total Assets

Rp % Change USD (Millions)#

Rp (Billions) Rp (Billions)

Q-o-Q Dec. ‘03

Mar. ‘03

Bank Mandiri’s Credit Ratings

B3 Long Term Bank Deposits

B B+

Long Term Local Currency Debt

Bank Mandiri Ratings

B B2

B Long Term Foreign Currency Debt

Stable Stable

Positive Outlook

Sovereign Ratings

Positive Long Term Local Currency Outlook

B3 Long Term Bank Deposits

B B2

B Long Term Foreign Currency Debt

Stable Positive

Long Term Foreign Currency Outlook

B+ B+

Long Term Local Currency Debt

B B

Short Term Foreign Currency Debt

Fitch Moody’s

Bank Mandiri Additional Loan Movement &

Bank Mandiri Additional Loan Movement &

Portfolio Detail

Q1 2004 Loan Movement, Performing & Non-Performing Loans

104

270

1,012

366

66,832

66,853

Beg. Balance

U/G from NPL

D/G to NPL

Net Disburse.

FX Impact End Balance

Performing Loan Movements - Bank Only

IDR bn

Non-Performing Loan Movements – Bank Only

6,341 366

6,479

1,012

116

184

760

44

Beg. Balance

U/G to PL D/G from PL

Disburse. CollectionsWrite-Offs FX Impact End Balance

Q1 2004 Loan Detail*: Loans downgraded to NPL

* Corporate & Commercial Loans Only

„ 74.8% were from Commercial borrowers

„ 30.4% were loans purchased from IBRA, while 13.2% were previously restructured

„ Largest downgrades by sector:

¾ Trading, Hotels & Restaurants

¾ Manufacturing of Wood

¾ Manufacturing of Textiles & Leather

„ 58.6% were Rupiah loans

„ 45.2% were for Investment loans

„ 1st _{time downgrades from Trading &}

Hotels, Wood Mfg, Textile & Leather Mfg Rp 976 billion in Corporate and Commercial loans (1.3% of total loans) were downgraded to NPL in Q1. Of these Loans downgraded in Q1:

Co

rp

or

a

te

Commer

c

ia

Restructured No History

IBRA

Trading Mfg-Wood

Mfg-Text.

Mfg-Others

Mfg-Chem. Trans.

Agri. Bus. Serv.

Mfg-Cem.

Other < 5%

IDR USD

Invest. WC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GA

S

Hi

s

to

ry

Se

c

to

r

ur

renc

y

P

u

rpos

e

Loan Profile: Q1 Corporate & Commercial Downgrades to NPL (Rp 976 bn) Bank Only

Q1 2004 Movement in Category 1 and 2 Loans

55,849

313 262

72 122

1,818

1,959 56,233

Beg. Bal. D/ G t o 2 U/ G f rom 2

D/ G t o NPL

U/ G f rom NPL

Net Disburse.

FX Impact End Bal.

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

86 8

294 890

1,818 1,959

10,983 _10,621

Beg. Bal. Cat. 1 D/G U/G to 1 D/G to NPL NPL U/G Net Disburse.

Q1 2004 Loan Detail*: Category 2 Loans

Loan Profile: Q1 Corporate & Commercial Category 2 Loans (Rp 10.3 tn) Bank Only

* Corporate & Commercial Loans Only

„43.5% are to Corporate customers

„63.5% are current or 1 day overdue

„Primary sectors in Category 2 are:

¾ Textile Manufacturing

¾ Agriculture

¾ Trading, Hotels & Restaurants

¾ Cement

„54.8% are Rupiah loans

„61.2% are Investment loans

„61.1% are Restructured loans

„14.9% were purchased from IBRA Rp 10.3 trillion in Corporate &

Commercial loans were in Category 2 in Q1, or 14.1% of total loans. Of these Special Mention loans in Q1:

C or por at e C o mme rc ia l Current 1 Day < 30 31-60 61+ Mfg-Text Agri Trading Mfg-Cem Mfg-Wood Trans Mfg-Chem Bus Serv. Constr.

Other < 5%

IDR USD Invest. WC Re s tr u c tu re d No Hi s to ry IBRA IBRA Restr. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GA S Da y s A g in g Sec tor C ur renc y P ur pos e Hi s to ry

Q1 2004 Loan Detail*: Loans Downgraded to Category 2

Loan Profile: Q1 Corporate & Commercial Downgrades to Cat. 2 (Rp 1.85 tn) Bank Only

* Corporate & Commercial Loans Only

„83.2% are to Commercial customers

„38.6% are current or 1 day overdue

„Primary sectors in Category 2 are:

¾ Textile Manufacturing

¾ Wood Manufacturing

¾ Transportation

¾ Construction

„70.2% are Rupiah loans

„36.1% are Investment loans

„8.3% are Restructured loans

„14.9% were purchased from IBRA Rp 1.85 trillion in Corporate &

Commercial loans were downgraded to Category 2 in Q1, or 2.5% of total loans. Of the Loans downgraded to Special Mention in Q1:

C or p or at e C o mme rc ia Current 1 Day < 30 31-60 61+ Mfg-Text Mfg-Wood Trans Constr Trading Bus. Serv. Mfg-F&B Agri Mfg-Other

Other < 5%

IDR USD Invest. WC Other Re s tr . No Hi s to ry IBRA IBRA Restr. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% GA S Da y s A g in g Sec tor C ur renc y P ur pos e Hi s to ry

Movement in Restructured Loans, 1999 – Q1 ‘04

IDR bn

FY 2003 Restructured Loan Movements

25,123

29,542

23,987

22,640 27,423

10,583

1999 Add Deduct 2000 Add Deduct 2001 Add Deduct 2002 Add Deduct 2003 Add Deduct Q1 '04 Other

Write-Offs Repayments Restructuring Balance

Q1 2004 Loan Detail*: Restructured Loans

Loan Profile: Q1 Corporate & Commercial Restructured Loans (Rp 22.6 tn) Bank Only

* Corporate & Commercial Loans Only

„90.1% are performing

„67.8% are to Corporate customers

„Primary sectors are:

¾ Agriculture

¾ Manufacturing •Chemicals •Textiles •Cement

•Pulp & Paper

¾ Trading & Hotels

„53.8% are Rupiah loans

„59.4% are Investment loans

„3.0% were upgraded to Category 1

„0.6% were downgraded to NPL, while 1.0% were upgraded to PL Rp 22.6 trillion in restructured Corporate & Commercial loans remained in Q1, or 30.9% of total

loans. Of these Restructured Loans in Q1: 1 2 3 4 5 C or p or at e Co m m e rc ia l Agri. Mfg-Chem. Mfg-Text. Mfg-Cem. Trading Mfg-P&P Mfg-Others Constr. Bus. Serv.

Other < 5%

IDR USD

Other

Invest. WC

2 to 1 1 to 2

NC U/G to PL

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C o lle c tib ility GA S Sec to r C ur renc y P ur pos e M o v em ent

Q1 2004 Loan Detail*: Non-Performing Loans

Loan Profile: Q1 Corporate & Commercial NPLs (Rp 6.2 tn) Bank Only

* Corporate & Commercial Loans Only

„56.7% are to Corporate customers

„66.6% are Investment loans

„Primary sectors are:

¾ Manufacturing •Pulp & Paper •Textiles

•Cement •Wood

¾ Trading, Hotel & Restaurant

¾ Agriculture

„53.3% are Rupiah loans

„36.0% were previously

restructured, while 38.9% were loans purchased from IBRA Rp 6.2 trillion in Corporate &

Commercial NPLs remained in Q1, or 8.5% of total loans. Of these NPLs in Q1:

Co

rp

o

ra

te

C

o

mme

rc

ia

Invest.

WC

Mfg-P&P Trading

Agri.

Mfg-Text.

Mfg-Cem. Soc. Serv. Mfg-Wood Bus. Serv.

Trans.

Other < 5%

IDR USD

Restruct 1st Time

IBRA

IBRA Restr.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GA

S

P

u

rpos

e

Se

c

to

r

C

ur

renc

y

Hi

s

to

Hotel & Restaurant 3.7%

Agriculture 10.3%

Mfg-Chemicals 9.1%

Mfg-F&B 9.0% Bus. Serv.

6.4% Construction

6.3% Mfg-Pulp & Paper

5.7% Mfg-Others

4.8% Mfg-Wood

4.2% Mining

4.1%

Mfg-Base Metal

1.5% Trading 10.4%

Mfg-Textile 7.4% Transportation

5.8%

Mfg-Cement 3.8%

Others 5.0%

Electricity 2.4%

Loan Portfolio Sector Analysis

Breakdown By Sector, March 2004(1)

(1) Non-consolidated numbers

„No sector accounts for more than 15% of total loans

„Minimizing exposure to problem sectors including

¾Textiles (7.4%)

¾Plywood (4.2%)

¾Hotels & Restaurants (3.7%)

„Focusing on growth sectors including:

¾Agriculture

¾Fisheries

Q1 2004 Loan Detail: Rupiah Loans

Loan Profile: Q1 Corporate & Commercial Rupiah Loans (Rp 41.4 tn) Bank Only 1 2 3 4 5 Current < 30 31-60 61+ Trading Agri Mfg-F&B Bus Serv Trans Mfg-Cem Constr Mfg-Text Mfg-Oth Oth<5% C or p or at e C o mme rc ia l Invest. WC R e st ru ct u re d No Hi s to ry IBRA IBRA Restr.

2 to 1 1 to 2 NC 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C o lle ct ib ilit y Ca t 2 A g in g Se c to r Bu s in e s s Pu rp o s e Hi s to ry Mo v e me n t

„92.0% are performing loans

„13.6% are in Category 2

„69.2% of Category 2 loans are current in interest payments

„Primary sectors in Corporate are:

¾ Trading, Hotels & Restaurants

¾ Agriculture

¾ Food & Beverage Mfg

¾ Business Services

„43.9% are Corporate loans

„40.7% are Investment loans

„29.4% are Restructured loans

„5.2% were purchased from IBRA Rp 41.4 trillion in loans were Rupiah denominated in Q1, or 56.6% of total loans. Of the Rupiah Loans in Q1:

Q1 2004 Loan Detail: Foreign Currency Loans

Loan Profile: Q1 Corporate & Commercial FX Loans (Rp 27.6 tn) Bank Only 1 2 3 4 5 Current < 30 31-60 61+ Mfg-Chem Mfg-Text Mfg-P&P Mining Trading Constr Mfg-Wood Mfg-Oth Power Oth<5% C or por at e C o mme rc ia l Invest. WC R e st ru ct u re d No Hi s to ry IBRA IBRA Restr.

2 to 1 1 to 2 NC 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C o lle ct ib ilit y Ca t 2 A g in g Se c to r Bu s in e s s Pu rp o s e Hi s to ry Mo v e me n t

„89.5% are performing loans

„16.9% are in Category 2

„55.9% of Category 2 loans are current in interest payments

„Primary sectors in Corporate are:

¾ Manufacturing of

‰Chemicals

‰Textiles & Leather

‰Pulp & Paper

¾ Mining

¾ Trading, Hotels & Restaurants

„75.1% are Corporate loans

„63.7% are Investment loans

„37.9% are Restructured loans

„15.9% were purchased from IBRA Rp 27.6 trillion in loans were foreign currency denominated in Q1, or 37.7% of total loans. Of the FX Loans in Q1:

Movement in Restructured Loans, 1999 – Q1 ‘04

IDR bn

FY 2003 Restructured Loan Movements

25,123

29,542

23,987

22,640 27,423

10,583

1999 Add Deduct 2000 Add Deduct 2001 Add Deduct 2002 Add Deduct 2003 Add Deduct Q1 '04 Other

Write-Offs Repayments Restructuring Balance

Q1 2004 Loan Detail*: Restructured Loans

Loan Profile: Q1 Corporate & Commercial Restructured Loans (Rp 22.6 tn) Bank Only

* Corporate & Commercial Loans Only „90.1% are performing

„67.8% are to Corporate customers

„Primary sectors are:

¾ Agriculture

¾ Manufacturing •Chemicals •Textiles •Cement

•Pulp & Paper

¾ Trading & Hotels

„53.8% are Rupiah loans

„59.4% are Investment loans

„3.0% were upgraded to Category 1

„0.6% were downgraded to NPL, while 1.0% were upgraded to PL Rp 22.6 trillion in restructured Corporate & Commercial loans remained in Q1, or 30.9% of total

loans. Of these Restructured Loans in Q1:

1 2 3 4 5

C

or

p

or

at

e

Co

m

m

e

rc

ia

l

Agri. Mfg-Chem.

Mfg-Text.

Mfg-Cem.

Trading Mfg-P&P Mfg-Others

Constr. Bus. Serv.

Other < 5%

IDR USD Other

Invest. WC

2 to 1 1 to 2

NC U/G to PL

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

C

o

lle

c

tib

ility

GA

S

Sec

to

r

C

ur

renc

y

P

ur

pos

e

M

o

v

em

Q1 2004 Loan Detail*: Non-Performing Loans

Loan Profile: Q1 Corporate & Commercial NPLs (Rp 6.2 tn) Bank Only

* Corporate & Commercial Loans Only „56.7% are to Corporate customers

„66.6% are Investment loans

„Primary sectors are:

¾ Manufacturing •Pulp & Paper •Textiles

•Cement •Wood

¾ Trading, Hotel & Restaurant

¾ Agriculture

„53.3% are Rupiah loans

„36.0% were previously

restructured, while 38.9% were loans purchased from IBRA Rp 6.2 trillion in Corporate &

Commercial NPLs remained in Q1, or 8.5% of total loans. Of these NPLs in Q1:

Co

rp

o

ra

te

C

o

mme

rc

ia

Invest. WC

Mfg-P&P Trading

Agri.

Mfg-Text.

Mfg-Cem. Soc. Serv. Mfg-Wood Bus. Serv.

Trans.

Other < 5%

IDR USD

Restruct 1st Time

IBRA IBRA Restr.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GA

S

P

u

rpos

e

Se

c

to

r

C

ur

renc

y

Hi

s

to

Hotel & Restaurant 3.7%

Agriculture 10.3%

Mfg-Chemicals 9.1%

Mfg-F&B 9.0%

Bus. Serv. 6.4% Construction

6.3% Mfg-Pulp & Paper

5.7% Mfg-Others

4.8% Mfg-Wood

4.2% Mining

4.1%

Mfg-Base Metal

1.5% Trading

10.4%

Mfg-Textile 7.4% Transportation

5.8%

Mfg-Cement 3.8%

Others 5.0%

Electricity 2.4%

Loan Portfolio Sector Analysis

Breakdown By Sector, March 2004(1)

(1) Non-consolidated numbers

„No sector accounts for more than 15% of total loans

„Minimizing exposure to problem sectors including

¾Textiles (7.4%)

¾Plywood (4.2%)

¾Hotels & Restaurants (3.7%)

„Focusing on growth sectors including:

¾Agriculture

¾Fisheries

Q1 2004 Loan Detail: Rupiah Loans

Loan Profile: Q1 Corporate & Commercial Rupiah Loans (Rp 41.4 tn) Bank Only

1 2 3 4 5

Current < 30 31-60

61+

Trading Agri Mfg-F&B Bus Serv

Trans Mfg-Cem

Constr Mfg-Text

Mfg-Oth Oth<5%

C

or

p

or

at

e

C

o

mme

rc

ia

l

Invest. WC

R

e

st

ru

ct

u

re

d

No

Hi

s

to

ry

IBRA IBRA Restr.

2 to 1 1 to 2 NC

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

C

o

lle

ct

ib

ilit

y

Ca

t 2

A

g

in

g

Se

c

to

r

Bu

s

in

e

s

s

Pu

rp

o

s

e

Hi

s

to

ry

Mo

v

e

me

n

t

„92.0% are performing loans

„13.6% are in Category 2

„69.2% of Category 2 loans are current in interest payments

„Primary sectors in Corporate are:

¾ Trading, Hotels & Restaurants

¾ Agriculture

¾ Food & Beverage Mfg

¾ Business Services

„43.9% are Corporate loans

„40.7% are Investment loans

„29.4% are Restructured loans

„5.2% were purchased from IBRA Rp 41.4 trillion in loans were Rupiah denominated in Q1, or 56.6% of total loans. Of the Rupiah Loans in Q1:

Q1 2004 Loan Detail: Foreign Currency Loans

Loan Profile: Q1 Corporate & Commercial FX Loans (Rp 27.6 tn) Bank Only 1 2 3 4 5 Current < 30 31-60 61+ Mfg-Chem Mfg-Text Mfg-P&P Mining Trading Constr Mfg-Wood Mfg-Oth Power Oth<5% C or por at e C o mme rc ia l Invest. WC R e st ru ct u re d No Hi s to ry IBRA IBRA Restr.

2 to 1 1 to 2 NC 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% C o lle ct ib ilit y Ca t 2 A g in g Se c to r Bu s in e s s Pu rp o s e Hi s to ry Mo v e me n t

„89.5% are performing loans

„16.9% are in Category 2

„55.9% of Category 2 loans are current in interest payments

„Primary sectors in Corporate are:

¾ Manufacturing of

‰Chemicals

‰Textiles & Leather

‰Pulp & Paper

¾ Mining

¾ Trading, Hotels & Restaurants

„75.1% are Corporate loans

„63.7% are Investment loans

„37.9% are Restructured loans

„15.9% were purchased from IBRA Rp 27.6 trillion in loans were foreign currency denominated in Q1, or 37.7% of total loans. Of the FX Loans in Q1: