2002 Q4 Analysts Meeting
PT Bank Mandiri (Persero)
Audited Results & Financial Performance for
the Year Ended 31 December 2002
04 April 2003
0
Consistent Improvement in Profitability in Past 3 Years
4,000
26.2%
25%
21.5%
3,000
20%
2,500
2,000
1,500
3,586
8.1%
2,746
15%
Return on Equity
Profit After Tax, Rp. Billion
3,500
30%
10%
1,000
500
5%
1,181
0%
0
2000
2001
PAT
2002
ROE
1
A Strong Capital Base to Support Growth
100
CAR
BI Min Req
35%
31.3%
80
30%
70
26.4%
60
58.08
[+36.3%]
20%
42.61
15%
30
20
25%
23.4%
50
40
72.51 [+24.8%]
CAR
RWA/Total Capital, Rp. Trillion
90
16.11
13.33
18.34
10%
10
0
5%
2000
2001
Risk Weighted Assets
2002
Tier I & Tier II Capital
2
Asset Quality Continues to Improve, Whilst Provisioning
Policy Remains Conservative
190.4%
25%
200%
180%
160%
146.7%
129.5%
140%
120%
15%
100%
10%
80%
19.8%
60%
5%
9.4%
40%
9.7%
7.3%
3.1%
2000
2001
Gross NPL Ratio
Net NPL Ratio
20%
1.9%
0%
Provisioning Coverage
NPL Ratio
20%
0%
2002
Prov/NPL
3
Loan Growth Book is Leading to
Better Loan to Deposit Ratio
Including Rp 4.9 trillion
IBRA Loan Acquisition
70
65.4 [+35.3%]
45%
48.3 [+12.4%]
50
35.4%
35%
43.0
26.3%
40%
30%
25.3%
25%
30
LDR
Loans, Rp. Trillion
60
40
50%
20%
15%
20
10%
10
5%
0%
0
2000
2001
Loans
2002
LDR
4
1)
Loan Growth Across All Customer Segments
Loan Segmentation by Gross Annual Sales (2002)
Loan Growth by Facility Size
Rp. Trillion
60
50,7
50
40
2000 (total loan = Rp 42.4 tn)
2001 (total loan = Rp 47.2 tn)
2002 (total loan = Rp 63.9 tn)
38,2
Consumer
2.4% (Rp 1.5 tn)
Commercial
34.7%
(Rp 22.2 tn)
33,8
30
Corporate
62.9%
(Rp 40.2 tn)
20
10
6,5 5,2
9,0
4,2
2,0 3,8
Notes :
0
Corporate( > 25 b)
2002 Growth: 32.7%
Note: 1) Bank Only
Commercial (5b < 25 b)
73.9%
Consumer ( Rp.300 billion
Commercial : GAS < Rp.300 billion
5
3-Pronged Strategy for a Sound Balance Sheet and Asset
quality
1. Conservative Provisioning
More conservative Provisioning than BI Requirements (Rp 5.5 Trillion Excess
on Earning Assets)
High Provisioning Coverage (190% Provisions/NPL Ratio)
2. Rigorous & Accountable Loan Restructuring and Recovery
19-Step Approach to Restructuring
Continuous Collection Efforts (Rp 1.1 Trillion Collected in 2002)
3. Sound Risk Management Principles & Processes
“4 Eyes” Policy/Independent Risk Management Organization
Customer Ratings
Industry Studies
Concentration Risk Policy
6
Growing Contribution from Loans
& Lesser Reliance on Bonds
60%
75.3%
80%
73.5%
67.2%
43.9%
40%
60%
50%
31.5%
30%
40%
24.4%
20%
22.5%
19.1%
18.4%
30%
20%
10%
% of Total Interest Income
Ratio of Loans to Bonds
50%
70%
10%
0%
0%
2000
2001
Ratio of Loans to Bonds
% Int. from Bonds
2002
% Int. from Loans
7
Savings Deposit Growth Is Leading
to a Better Funding Mix
40
[+34.2%] 16.3%
16%
29.93
30
20
14%
[+23.7%] 11.7%
12%
11.0%
22.31
10%
18.03
8%
15
6%
10
% of Total Deposits
Savings Deposits, Rp. Trillion
35
25
18%
4%
5
2%
0
0%
2000
2001
Savings Deposits
2002
% of Total
8
Distribution Network Broadening –
Especially Electronically
10-fold increase in
electronic transactions
within 2 years
2,500
176,232
180,000
160,000
# of Distribution Outlets
140,000
120,000
1,500
100,000
80,000
1,000
63,257
1,559
500
1,184
16,346
546
533
635
60,000
40,000
687
0
20,000
Avg. Daily ATM Transaction Volume
2,000
0
2000
2001
Branches
ATMs
2002
ATM Transactions
9
Maintained Margins Despite a
Fluctuating Interest Rate Environment
16%
2.9%
2.7%
14%
2.8%
12%
2.4%
2.2%
10%
2.0%
1.8%
1.6%
8%
1.2%
6%
4%
13.3%
13.1%
11.4%
11.1%
11.5% 10.3%
1.2%
0.8%
2%
0.4%
0%
0.0%
2000
Avg Yield of Earning Assets
Interest spread/NIM
Avg Yield/Cost of Funds
3.2%
3.0%
2001
Avg Cost of Funds
2002
NIM
Interest Spread
10
Overhead Spending Remains Under Control Despite Heavy
Investment in Brand & IT Platform
42.8%
2,500
45%
40%
2,000
35%
31.1%
30%
1,500
1,000
25%
2,060
1,863
1,670
1,747
1,566
20%
15%
Cost to Incomes Ratio
Overhead Expenses, Rp. Billion
39.9%
1,350
10%
500
5%
0
0%
2000
2001
Personnel Expenses
G&A Expenses
2002
Cost to Income Ratio
11
Gaining Increasing International Recognition
•Landmark US$125 Million Subordinated Debt Deal in 2002
¾ The first sub-bond from Indonesia since 1997
¾ The first 10-year final maturity bond from Indonesia since 1997
¾ 69% of Allocation to Overseas Investors
•International Awards
Global Finance
¾ Best Indonesian Bank, 2001 and 2002
¾ Best Trade Finance, 2001 and 2002
The Banker
¾ Indonesian Bank of the Year, 2001 and 2002
FinanceAsia
¾ Best Local Bank, 2001 and 2002
The Asset
¾ Best High Yield Bank Bond Deal
¾ Best Commercial Bank 2002
IFR Asia
¾ Best Indonesia Capital Market Deal 2002
12
Significant Contribution to Government
Budget Revenues
2000
2001
2002
(Rp Billion)
(Rp Billion)
(Rp Billion)
1,658
2,996
3,822
140
78
131
7
138
178
Total Tax Contribution*
1,805
3,212
4,131
•Dividends
1,011
1,373
1,793**
Total Contributions
2,816
4,585
5,924
Year:
From:
•Deposit Taxes
•Employee Taxes
•Other Taxes
*Excluding Corporate Taxes
**Proposed for 2002 at 50% of Net Income
13
THANK YOU
"These materials are not, and are not intended to be, for distribution, directly or indirectly, in or
into the United States. These materials are not, and are not intended to be, an offer of securities for sale in
the United States. Securities may not be offered or sold in the United States or to, or for the benefit of, U.S.
persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933) unless they are
registered or exempt from registration. Any public offering of securities to be made in the United States will
be made by means of a prospectus that may be obtained from the issuer. Such Prospectus will contain
detailed information about the company and management, as well as financial statements."
14
Loan Portfolio by Sector
31 Dec 2001
11.1%
31 Dec 2002
12.3%
4.4%
11.6%
6.2%
6.4%
11.3%
5.8%
6.1%
2.9%
4.9%
2.9%
0.4%
3.0%
0.7%
7.7%
0.3%
4.6%
50.3%
47.3%
Manufacturing
Agriculture
Trading, restaurant & hotel
Transportation, warehousing & communications
Other services
Mining
Construction
Electricity, gas & water
Social services
Others
15
Bonds Portfolio Breakdown
(Rp16.8 Tr)
(Rp31.6 Tr)
Hedge
Bonds
11.3%
Variable
Rate Bonds
57.9%
Available
for Sale
21.2%
(Rp9.3 Tr)
Trading
6.2%
Fixed Rate
Bonds
30.8%
(Rp45.8 Tr)
(Rp86.2 Tr)
Held to
Maturity
72.5%
(Rp108.0 Tr)
Total Government Bonds as of Dec’02 : Rp 148.8tn
16
Asset Mix
2001
13.5%
2002
3.8%
3.8%
16.1%
Loans
22.5%
5.9%
Loans
0.7%
1.8%
1.0%
6.4%
5.5%
Bonds
58.5%
Government bonds
Loans (net)
Other assets
0.9%
Bonds
59.4%
Placement with other bank
Securities
Current accounts with BI
Deferred Tax Assets-net
17
Audited Results & Financial Performance for
the Year Ended 31 December 2002
04 April 2003
0
Consistent Improvement in Profitability in Past 3 Years
4,000
26.2%
25%
21.5%
3,000
20%
2,500
2,000
1,500
3,586
8.1%
2,746
15%
Return on Equity
Profit After Tax, Rp. Billion
3,500
30%
10%
1,000
500
5%
1,181
0%
0
2000
2001
PAT
2002
ROE
1
A Strong Capital Base to Support Growth
100
CAR
BI Min Req
35%
31.3%
80
30%
70
26.4%
60
58.08
[+36.3%]
20%
42.61
15%
30
20
25%
23.4%
50
40
72.51 [+24.8%]
CAR
RWA/Total Capital, Rp. Trillion
90
16.11
13.33
18.34
10%
10
0
5%
2000
2001
Risk Weighted Assets
2002
Tier I & Tier II Capital
2
Asset Quality Continues to Improve, Whilst Provisioning
Policy Remains Conservative
190.4%
25%
200%
180%
160%
146.7%
129.5%
140%
120%
15%
100%
10%
80%
19.8%
60%
5%
9.4%
40%
9.7%
7.3%
3.1%
2000
2001
Gross NPL Ratio
Net NPL Ratio
20%
1.9%
0%
Provisioning Coverage
NPL Ratio
20%
0%
2002
Prov/NPL
3
Loan Growth Book is Leading to
Better Loan to Deposit Ratio
Including Rp 4.9 trillion
IBRA Loan Acquisition
70
65.4 [+35.3%]
45%
48.3 [+12.4%]
50
35.4%
35%
43.0
26.3%
40%
30%
25.3%
25%
30
LDR
Loans, Rp. Trillion
60
40
50%
20%
15%
20
10%
10
5%
0%
0
2000
2001
Loans
2002
LDR
4
1)
Loan Growth Across All Customer Segments
Loan Segmentation by Gross Annual Sales (2002)
Loan Growth by Facility Size
Rp. Trillion
60
50,7
50
40
2000 (total loan = Rp 42.4 tn)
2001 (total loan = Rp 47.2 tn)
2002 (total loan = Rp 63.9 tn)
38,2
Consumer
2.4% (Rp 1.5 tn)
Commercial
34.7%
(Rp 22.2 tn)
33,8
30
Corporate
62.9%
(Rp 40.2 tn)
20
10
6,5 5,2
9,0
4,2
2,0 3,8
Notes :
0
Corporate( > 25 b)
2002 Growth: 32.7%
Note: 1) Bank Only
Commercial (5b < 25 b)
73.9%
Consumer ( Rp.300 billion
Commercial : GAS < Rp.300 billion
5
3-Pronged Strategy for a Sound Balance Sheet and Asset
quality
1. Conservative Provisioning
More conservative Provisioning than BI Requirements (Rp 5.5 Trillion Excess
on Earning Assets)
High Provisioning Coverage (190% Provisions/NPL Ratio)
2. Rigorous & Accountable Loan Restructuring and Recovery
19-Step Approach to Restructuring
Continuous Collection Efforts (Rp 1.1 Trillion Collected in 2002)
3. Sound Risk Management Principles & Processes
“4 Eyes” Policy/Independent Risk Management Organization
Customer Ratings
Industry Studies
Concentration Risk Policy
6
Growing Contribution from Loans
& Lesser Reliance on Bonds
60%
75.3%
80%
73.5%
67.2%
43.9%
40%
60%
50%
31.5%
30%
40%
24.4%
20%
22.5%
19.1%
18.4%
30%
20%
10%
% of Total Interest Income
Ratio of Loans to Bonds
50%
70%
10%
0%
0%
2000
2001
Ratio of Loans to Bonds
% Int. from Bonds
2002
% Int. from Loans
7
Savings Deposit Growth Is Leading
to a Better Funding Mix
40
[+34.2%] 16.3%
16%
29.93
30
20
14%
[+23.7%] 11.7%
12%
11.0%
22.31
10%
18.03
8%
15
6%
10
% of Total Deposits
Savings Deposits, Rp. Trillion
35
25
18%
4%
5
2%
0
0%
2000
2001
Savings Deposits
2002
% of Total
8
Distribution Network Broadening –
Especially Electronically
10-fold increase in
electronic transactions
within 2 years
2,500
176,232
180,000
160,000
# of Distribution Outlets
140,000
120,000
1,500
100,000
80,000
1,000
63,257
1,559
500
1,184
16,346
546
533
635
60,000
40,000
687
0
20,000
Avg. Daily ATM Transaction Volume
2,000
0
2000
2001
Branches
ATMs
2002
ATM Transactions
9
Maintained Margins Despite a
Fluctuating Interest Rate Environment
16%
2.9%
2.7%
14%
2.8%
12%
2.4%
2.2%
10%
2.0%
1.8%
1.6%
8%
1.2%
6%
4%
13.3%
13.1%
11.4%
11.1%
11.5% 10.3%
1.2%
0.8%
2%
0.4%
0%
0.0%
2000
Avg Yield of Earning Assets
Interest spread/NIM
Avg Yield/Cost of Funds
3.2%
3.0%
2001
Avg Cost of Funds
2002
NIM
Interest Spread
10
Overhead Spending Remains Under Control Despite Heavy
Investment in Brand & IT Platform
42.8%
2,500
45%
40%
2,000
35%
31.1%
30%
1,500
1,000
25%
2,060
1,863
1,670
1,747
1,566
20%
15%
Cost to Incomes Ratio
Overhead Expenses, Rp. Billion
39.9%
1,350
10%
500
5%
0
0%
2000
2001
Personnel Expenses
G&A Expenses
2002
Cost to Income Ratio
11
Gaining Increasing International Recognition
•Landmark US$125 Million Subordinated Debt Deal in 2002
¾ The first sub-bond from Indonesia since 1997
¾ The first 10-year final maturity bond from Indonesia since 1997
¾ 69% of Allocation to Overseas Investors
•International Awards
Global Finance
¾ Best Indonesian Bank, 2001 and 2002
¾ Best Trade Finance, 2001 and 2002
The Banker
¾ Indonesian Bank of the Year, 2001 and 2002
FinanceAsia
¾ Best Local Bank, 2001 and 2002
The Asset
¾ Best High Yield Bank Bond Deal
¾ Best Commercial Bank 2002
IFR Asia
¾ Best Indonesia Capital Market Deal 2002
12
Significant Contribution to Government
Budget Revenues
2000
2001
2002
(Rp Billion)
(Rp Billion)
(Rp Billion)
1,658
2,996
3,822
140
78
131
7
138
178
Total Tax Contribution*
1,805
3,212
4,131
•Dividends
1,011
1,373
1,793**
Total Contributions
2,816
4,585
5,924
Year:
From:
•Deposit Taxes
•Employee Taxes
•Other Taxes
*Excluding Corporate Taxes
**Proposed for 2002 at 50% of Net Income
13
THANK YOU
"These materials are not, and are not intended to be, for distribution, directly or indirectly, in or
into the United States. These materials are not, and are not intended to be, an offer of securities for sale in
the United States. Securities may not be offered or sold in the United States or to, or for the benefit of, U.S.
persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933) unless they are
registered or exempt from registration. Any public offering of securities to be made in the United States will
be made by means of a prospectus that may be obtained from the issuer. Such Prospectus will contain
detailed information about the company and management, as well as financial statements."
14
Loan Portfolio by Sector
31 Dec 2001
11.1%
31 Dec 2002
12.3%
4.4%
11.6%
6.2%
6.4%
11.3%
5.8%
6.1%
2.9%
4.9%
2.9%
0.4%
3.0%
0.7%
7.7%
0.3%
4.6%
50.3%
47.3%
Manufacturing
Agriculture
Trading, restaurant & hotel
Transportation, warehousing & communications
Other services
Mining
Construction
Electricity, gas & water
Social services
Others
15
Bonds Portfolio Breakdown
(Rp16.8 Tr)
(Rp31.6 Tr)
Hedge
Bonds
11.3%
Variable
Rate Bonds
57.9%
Available
for Sale
21.2%
(Rp9.3 Tr)
Trading
6.2%
Fixed Rate
Bonds
30.8%
(Rp45.8 Tr)
(Rp86.2 Tr)
Held to
Maturity
72.5%
(Rp108.0 Tr)
Total Government Bonds as of Dec’02 : Rp 148.8tn
16
Asset Mix
2001
13.5%
2002
3.8%
3.8%
16.1%
Loans
22.5%
5.9%
Loans
0.7%
1.8%
1.0%
6.4%
5.5%
Bonds
58.5%
Government bonds
Loans (net)
Other assets
0.9%
Bonds
59.4%
Placement with other bank
Securities
Current accounts with BI
Deferred Tax Assets-net
17