09 02 06 BMRI Analyst Meeting
PT Bank M andiri (Persero) Tbk
2009 Analyst Day
All financial milest ones achieved in 2008...
§ Gross NPL below 5%
§ Increased coverage of NPLs to > 120%
§ Gross loan grow t h > 18%*
§ M ajor leap in savings deposit s to > Rp90 t n
§ M argin improvement to approximately 5.2%
§ Retain efficiency rat io < 50%
# All data reported in t his presentat ion are based on in-house unaudited numbers
* Prior to t he w rite-off & repayment of NPLs
1
Grow t h moment um remains robust
Q4 2007*
Q4 2008*
Change
Total Asset s
Rp319.1 t n
Rp358.5 t n
12.4%
Total Deposit s
Rp247.4 t n
Rp289.1 t n
16.9%
Low Cost Deposit s
Rp152.4 t n
Rp164.0 t n
7.7%
• Current Account s
Rp 67.0 t n
Rp 69.1 t n
3.1%
• Saving Account s
Rp 85.4 t n
Rp 95.0 t n
11.2%
Total Loans
Rp138.5 t n
Rp174.5 t n
25.9%
* Consolidated In-house #’s
2
M aint aining moment um for grow t h
Loans by SBU*
(Rp Bn)
Deposit s by Product – Bank Only
(Rp Bn)
2008
R %
300
150
M icro
Small
Cons
Comm
Int 'l
Corp
4.4
14.8
63.3%
13.3%
125
19.3
75
1.7
7.6
11.1
10.7
50
24.4
25.9
14.2
15.7
41.6
34.0%
95.7
30.3%
4.4
15.1
54.3%
50.4
51.8
2.8%
4.7
7.4
57.0%
100
80.5
81.5
82.2
0.8%
Q4 '07
Q4 '08
9.8
9.1
11.4
44.8
73.4
57.5%
2.8
62.0
12.6
32.1%
93.2
31.5
21.4
15.9
150
1.0
29.9
Rp Savings Deposit s
250
0.9
25
Rp Demand Deposit s
FX Savings Deposit s
200
13.1
1.9
8.9
Rp Time Deposit s
FX Demand Deposit s
35.4%
2.7
100
FX Time Deposit s
2008
R %
38.4%
30.1
50
33.6
4.1
3.5
36.1
45.2
57.6
0
0
Q4 '05
Q4 '06
Q4 '07
Q4 '08
Q4 '05
Q4 '06
* Cash Collat eral Loans have been reallocat ed t o Small Business
3
St rong and liquid balance sheet
(Rp Bn, Bank Only – In-house)
Amount
% of
Asset s
Amount
% of
Liab.
Cash
8,064
2.38%
Current Account
66,908
19.77%
SBI & BI Placement (net )
46,077
13.61%
Savings
89,611
26.47%
Placement w / ot her banks
(net )
21,717
6.42%
Time Deposit s (Rp)
95,693
28.27%
M arketable Securit ies (net )
1,374
0.41%
Time Deposit s (Fx)
21,354
6.31%
Government Bonds
87,772
25.93%
Total Deposit s
273,566
80.82%
Loans (Gross)
159,007
46.97%
Securit ies Issued
779
0.23%
Provisions
(11,372)
(3.36%)
Deposit s from ot her banks
5,776
1.71%
Ot her Advances (net )
7,576
2.24%
Borrow ings
8,639
2.55%
Invest ment s
3,058
0.90%
Ot her Int erest bearing
liabilit ies
2,837
0.84%
Ot her Asset s
15,235
4.50%
Non Int erest bearing liabilit ies
16,490
4.87%
Equit y
30,422
8.99%
Total
338,508
100.00%
Asset s
Total
338,508
100.00%
Liabilit ies
4
Low er LDR’s, part icularly in FX, reflect liquidit y
FX Loans* & LDR
Rupiah Loans* & LDR
52.5%
Loans (Rp t n)
LDR (%)
53.9%
Loans (Rp t n)
52.4%
LDR (%)
131.1%
48.1%
123.7%
43.0%
40.4%
41.4%
111.0%
104.4%
102.5%
95.9%
80.4%
120.4
2007
Q1 '08
Q2 '08
35.2
2006
36.6
2005
34.3
Q4 '08
33.4
Q3 '08
37.6
Q2 '08
33.8
31.3
Q1 '08
106.7
2007
97.5
86.3
2006
85.0
73.9
68.1
2005
Q3 '08
Q4 '08
* Excluding loans t o banks & rest ruct uring losses
5
FX loan exposure contained as FX funding
rises
FX Loans
FX Funding
(USD million)
(USD million)
+511
(663)
4,254
4,011
3,765
582
32 3
3,158
895
3,755
282
45 6
730
691
3,822
248
22
38
3,472
3,348
687
694
30
984
3,238
3,108
382
55 3
4,003
3,883
247
44
34
3
356
623
3,492
583
2,860
675
501
458
980
1,941
1,593
290
1,599
1,592
282
677
823
1,705
1,696
1,395
2,908
466
2,731
2,820
2,998
2,310
1,834
1,163
2005
1,159
2006
Current
2007
S.M ent ion
Q1-2008
Q2-2008
Sub St andard
Q3-2008
Doubt ful
Q4-2008
Loss
2005
1,007
1,041
2006
2007
Demand Deposit
1,291
Q1-2008
1,468
1,385
1,112
Q2-2008
Time Deposit
Q3-2008
Q4-2008
Savings
6
Committed to Improving Shareholders Value
Business
St rat egy
Reduce Cost of Funds
Improve Asset s Yield
Compet it ive,
sustainable
ret urns, w it h
above-average
Support
St rat egy
Reduce Provision/ NPL
Reduce Cost Efficiency
rates of
grow t h
St rat egic
Alliances
Leverage on cash generator to
accelerate grow t h in higher
yield business
Key Priorit ies in 2009 - 2010
Alliance Strategy Focus
St rengt hening our deposit franchise, to
become primary payment bank
- Providing basic t ransact ion
and cash management
2.
Developing high yield business
- Support ing suppliers and
dist ribut ors in w orking capit al
financing
3.
Enhancing w holesale franchise and diversifying
w holesale t ransact ions
4.
Connect ing t he business, leveraging synergy
5.
Non-organic grow t h & synergy in opt imizing
subsidiaries
dist ribut or
employees as cust omers:
Corporat e
- M ort gage or aut o loans
- Corporat e/ Ret ail cards
1.
§ Improving supplier net w ork and
§ Cross sell product s t o
- Payroll
Business Strategies
SBU
Strategic
Alliances
§ Cross sell product s for employee as cust omers : Payroll, mort gage, aut o
loans, commercial / ret ail cards
§ Developing w ealt h management for individual Direct or or ow ner
operat ors
Support Strategy
Efficiency
• Increase IT
Operat ions efficiency
and cent ralized and
consolidat ed
procurement
Human Capital
Risk M anagement
•
Increase earning
asset s monit oring
and perfect ing early
w arning signal
•
Consolidat ed risk and
monit oring
subsidiaries
•
Enhance employee
product ivit ies and
int ernal cult ure
•
Apply best pract ice
for recruit , ret ain and
develop
Information Technology
Performance Culture
•
Implement Business
Solut ion Excellence t o
support payment
bank st rat egy
• Apply Value Based
M anagement as t he
next st ep of
Performance Cult ure
•
Implement Service
Excellence St rat egy t o
support business
growt h and services
Enhancing deposit franchise, st rengt hening
ret ail payment s
Number of GazCards Issued
11,817
8,813
9,078
9,347
Dec '07
M ar '08
Jun '08
Jul '08
12,372
12,566
12,597
13,061
Aug '08
Sep '08
Oct '08
Nov '08
13,701
Dec '08
1.
Est imat ed t ransact ion grow t h at 3.28% annually.
2.
E-t oll penet rat ion in t he first year est imat ed at
2%, rising t o 18% by year 10
3.
Average balance for each card is Rp 214,627/ card.
4.
Year 1 target of ~ 63,000 cards
* * E-t oll was launched on January 30, 2009
Sust ained savings & ret ail payment franchise
Transact ion channel growt h
Savings Deposit Growt h
Savings Deposit s (Rp t n)
Ot her
As % of Tot al Deposit s
57.09
55.80
74.71
84.70
54.48
51.04 65.9
49.59 58.76
55.00
Payment
Nat ional Share of Savings Deposit s (%)
Transfer
Wit hdraw al/ Inquiry
Avg ATM Daily Vol (000)
38.6%
40.0%
29.79
29.3
30.81
19.6
35.6%
34.6%
37.37
39.07
32.8%
1,043.4
1,088.8
976.7
11.6%
899.7
16.2%
853.4
22.8%
677.0
29.2%
607.5
492.1
30.6%
22.7%
16.9% 17.5%
16.0%
17.2%
18.5% 19.1%
19.3%
Quart erly Call Cent er Trans.
(000)
17.9%
3,029
2,988
Quart erly SM S Trans. (000)
2,784
3,464
12.8%
15.3%
1,722
11.0% 11.7%
1,086
15,864
16,857
19,116
15,840
Q4 '06
Q4 '07
Q1 '08
Q2 '08
Q3 '08
Q4 '08
11,435
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q4 '08
Q3 '08
Q2 '08
Q1 '08
Q4 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q4 '05
27
6,988
89.61
82.16
88.52
81.65
81.54
57.60
45.20
52.00
40.50
29.59
22.12
17.96
1,016
679 3,072
1,069
Enhancing deposit franchise, building on
w holesale t ransact ions
Cash M anagement Growt h in Commercial Banking
Wholesale Deposit Growt h (CASA)
(Rp t n)
2.1
Comm Savings
Comm Demand
1.8
Tot al Transact ions
(000)
# of
Cust omers
Corp Savings
Corp Demand
21.0
19.4
+55%
0.6
+146%
0.7
12.1
14.8
34.0
24.9
2005
36.5
23.0
2006
2007
2008
407
632
745
2,414
4,066
2007
2008
2006
2007
2008
Building our high yield business
§
§
Consumer Loans
M icro Banking
Small Business
Expand physical dist ribut ion net work (addit ional
SBDCs) and enhance and develop loan
processing and business model, LOS
Enhancement , and also Scoring Syst em
§
Expand physical dist ribut ion net work
t hrough t he opening of 200 M BU’s and
100 new sales out let in 2009.
§
St rengt hen t he port folio mix, wit h emphasis
on relat ively-high-yield product s such as KTA
and M it ra Karya
§
§
Relocat e Small Business t o Commercial Banking
in order t o grow expansion in Small Business
market niche
Develop product s such as refinement s of
loans t o TKI, addit ional loan limit s, and
micro savings product development .
Enhancing t he pricing st rat egy t o improve
yield management
§
§
Ot her st rat egic init iat ives include: set t ing
up Sales Transact ion Cont rols; reviewing
t he ut ilizat ion of Core Syst ems – specific
t o M icro and t he implement at ion of
M icro Business Risk Review; t he
implement at ion of pilot project M icro
Collect ion Cent er and t he inst allat ion of
handheld collect ion .
Int egrat ion of Tunas Financindo Sarana t o
complement t he development of t he
Consumer Finance business as a whole .
§
Refine loan processes by creat ing Credit Risk
M anagement dedicat ed t o Small Business, as
well as opt imizing t he ut ilizat ion of risk-based
scoring.
§
Focus on t arget market s such as first -class
funding cust omers, exist ing debt ors, t op
businessmen, t op SOE’s and Privat e
Cooperat ives, and market ing t hrough business
part ners of Corporat e and Commercial Banking
cust omers
Consumer Cards
•
Acquisit ion of specific segment s t hrough
cross-selling funding cust omers for silver and
gold lower segment , as well as opt imizing
cross-sell pot ent ials wit h ot her consumer
product s
•
Increase sales volume and accelerat e t he
format ion of revolving balances t hrough
market ing program & usage t o silver segment
Building our high yield businesses
M icro Credit s
Small Credit s
(Rp Bn)
Loan
(Rp Bn)
12.8%
Consumer Loans
(Rp Bn)
19.7%
12.7%
Yields
1,734
4,720
1,699
Q4 2007
Grow t h
Disbursement Breakdown (Q4 ‘08)
158
Q4 2007
Disbursement Breakdown (Q4 ‘08)
Grow t h
Q4 2008
Disbursement Breakdown (Q4 ‘08)
1,201
0
1,092
185
1
Q42008
38.3%
869
143
17,044
Q42008
62.9%
12,324
Grow t h
4,376
Q4 2007
2,677
14,815
13,081
12.9%
1,969
6,829
1,365
8,272
3,055
4,381
3,587
3,737
532
TOTAL
Cash Coll
Food Suff.
Channeling
Alliances
Coops
Program
Non-Prog
Rural Banks
M icro
Unsecured
M icro
TOTAL
M ort gage Home Equit y Payroll Loan
Loan
Ot her
Tot al
Tunas Finance as one of our main t hrust s in
Consumer High Yield
Financial performance of Tunas
Finance show s improvement
Financing and Income
acquisit ion of Tunas Finance:
– On 9 December 2008, Bapepam
2,040.9
1,718.4
1,715.4
116.9
84.7
confirmed t hat Tunas Finance
business act ivit ies are in
compliance wit h PM K No.
84/ PM K.012/ 2006
29.9
– On 8 January 2009, BI has issued a
12.9
2005
2006
2007
Net Financing To Cust omers
2008
(%)
• Bank M andiri has complet ed int ernal
preparat ions t o finalize acquisit ion.
1.9%
5.0%
2005
2006
Micro & Retail
closed in first week of February 2009.
• The synergy bet ween Bank M andiri and
6.9%
6.4%
4.5%
ROA
Commercial
• The acquisit ion t ransact ion will be
2.5%
5.0%
5.2%
Consumer Corporate
31.6%
19.6%
1.4%
let t er approving Bank M andiri t o
acquire Tunas Finance.
Bank M andiri will ut ilize it ’s dist ribut ion
channels across Indonesia t o increase
Tunas Finance point of sales.
Net Profit
Financial Rat ios
11.7%
Our St rategy & intent
• Regulat ors have approved t he
(IDR Billion)
1,694.9
Updates and act ions going forw ard
2007
ROE
2008
NIM
Tunas Finance will be achieved t hrough
joint financing which is t arget ed t o
reach Rp 2 t rillion in 2009.
Bank M andiri int ends t o develop and
penet rat e t he vehicle financing segment
by st rat egic alliances t hrough cross-selling
bet ween subsidiaries, cust omers, and
business t o business collaborat ion wit h
sole dist ributors in Indonesia.
Diversify w holesale st rengt h into t ransact ional
banking
Total Wholesale Transact ions
Transact ion Type
Cash M anagement
FX
Trade Finance
Unit s
# of
t ransact ions
2007
2008
Growt h
Reconciliat ion
407,407
632,100
Recovery
Payment
USD mil
28,822
37,229
29.2%
IDR bil
107,710
123,456
14.6%
Credit
& Report ing
55.2%
Collect ion
Int ernat ional
Local
IDR bil
1,118,432
1,427,984
27.7%
USD mil
53,325
72,409
35.8%
IDR bil
617,550
638,726
3.4%
Suppliers
Produce&
St art
Dist ribut e Bill
Remit t ances
Select
End
Generat e
Improving Cash Cycle
Generat e
M it igat ing Risks
A/ R
Purchase
Order
Receive
Acquire
Cust omer
Invoice
St art
End
M at ch Invoice
vs. Delivery
Clear
A/ P
M ake
Payment
St rengt hening Risk M anagement & M onit oring
Syst em
Summary of risk management init iat ives
Corporat e Cust omer by Rat ing
• Enhance business process credit approval, CR
High Risk (Rat ing C- G)
met hodologies & t ools (monit oring syst em)
M edium Risk (Rat ing BBB – B)
Credit
Low Risk (Rat ing AAA – A)
100%
15%
80%
12%
11%
24%
21%
subsidiaries – Credit , M arket & Operat ional)
M arket
34%
60%
40%
64%
• Develop & enhance collect ion syst ems
• Opt imize credit port folio management syst em
• Consolidat e risk profile (incl. overseas offices &
• Implement at ion of st ress t est analysis
• Development of derivat ive syst em (summit )
• Enhance our Treasury policy
• ORM implement at ion in all unit , incl. overseas
68%
offices & subsidiary
51%
Operat ional
20%
• Set up Operat ional Risk Commit t ee under RCC
• Synchronizat ion of Risk-Based Audit met hodology
wit h RCSA (ORM )
0%
2006
2007
2008
16
Leveraging cash generat or t o accelerat e high
yield grow t h
December 2006
Alliance St rategy Focus
NII
Fees
PoT
Building Fut ure Grow t h
Engine
(Consumer & M icro/ Ret ail )
CM = Rp5.425 t rillion
Leveraging Our Cash
Generat or
(Corporat e & Treasury)
CM = Rp3.286 t rillion
Corporat e
Commercial
Treasury & Int 'l
23.2%
2,112
304
3.3%
M icro & Ret ail
Consumer Finance
25.2%
2,300
3,628
771
PoT
5.1%
127
762
30.8%
1,176
39.8%
8.5%
10.9%
268
138
47.6%
5.6%
December 2008
NII
Fees
PoT
St rengt hen Emerging Business
(Commercial Banking )
CM = Rp2.427 t rillion
PoT
Corporat e
2,537
18.3%
420
9.9%
Commercial
2,632
19.4%
480
11.3%
Treasury & Int 'l
768
M icro & Ret ail
Consumer Finance
5.7%
6,632
1,017
903
2,091
48.8%
7.5%
21.2%
359
49.2%
8.4%
Leveraging cash generat or t o accelerat e high
yield grow t h
Early Alliance Program Result s
Corporat e Card Holders
Consumer Loans
(10 t o corporat e client s)
(10 t op corporat e client s)
Plant at ion Small & M icro Lending
Rp Billion
Rp Billion
1,259 1,275
418
416
427
1,128
2,007
350
1,869
347
1,796
1,616
897
1,620
791
149
319
Q4'07
Q1 '08
Q2 '08
Q3'08
Q4'08
Q4 '06 Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08
Q4 '06 Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08
2010: t o be a Dominant M ult i-Specialist Bank
and considered as a Regional Champion Bank
Defining a Dominant M ult i-specialist
Implicat ions of Dominant M ult i-specialist st rat egy
WHAT IT MEANS ?
“DOMINANT”
Target ing 20%-30% market share
of revenue of each segment .
§ No.1 or No. 2 in each segment is t he focus
§ M arket Capitalizat ion comparable w it h banks in Sout h
east Asia
§ Target ing higher revenue grow t h above compet itors
and market .
“MULTI-SPECIALIST”
§ Increase market share significant ly in micro, small
Having a dist inct ive st rat egy in
each segment w hich different iat e
w it h compet it ors.
§ Select key priorit ies to each segment appropriate to
business and consumer finance segment s.
it s revenue pool.
§ Act ive in internat ional banking , along w it h t he
act ivit ies of t rade & w orkers (TKI).
“REGIONAL PLAYER”
Becoming blue-chip corporat e in
Asia Pacific
“MOST PREFERRED”
Providing value proposit ion t o t he
segment we are focusing.
WHAT IT DOES NOT MEAN ?
§ Aggressive Internat ional presence.
§ M e too st rategy, target ing t he same market segment s
as compet it ion.
§ Drive business grow t h aggressively w it hout
considerat ion of revenue grow t h or profitabilit y.
Indonesia Economic Out look 2009
• Inflation to decline to 6.8% in 2009
•
Economic growth is expected to slow to 4.8% in 2009
• Private spending and investment growth to decelerate
• Low dependence on export and weaker import would lessen the external impact
• Rupiah trading at Rp11,302/US$ at the end of 2009
• Fiscal stimulus would help to support the economy
• Downside risk remains
21
For Additional Information:
Please refer to our website at www.bankmandiri.co.id
Or Contact:
Sukoriyanto Saputro
Corporate Secretary
Tel:
(6221) 524 5299
Fax: (6221) 5296 4024
Jonathan Zax
Head of Investor Relations
Tel:
(6221) 3002-3171
Fax: (6221) 5290 4249
E-mail: ir@bankmandiri.co.id
PT Bank M andiri (Persero) Tbk
Plaza M andiri
Jl. Jend. Gat ot Subrot o Kav. 36-38
Jakart a 12190
M ain Tel: 526-5045
2009 Analyst Day
All financial milest ones achieved in 2008...
§ Gross NPL below 5%
§ Increased coverage of NPLs to > 120%
§ Gross loan grow t h > 18%*
§ M ajor leap in savings deposit s to > Rp90 t n
§ M argin improvement to approximately 5.2%
§ Retain efficiency rat io < 50%
# All data reported in t his presentat ion are based on in-house unaudited numbers
* Prior to t he w rite-off & repayment of NPLs
1
Grow t h moment um remains robust
Q4 2007*
Q4 2008*
Change
Total Asset s
Rp319.1 t n
Rp358.5 t n
12.4%
Total Deposit s
Rp247.4 t n
Rp289.1 t n
16.9%
Low Cost Deposit s
Rp152.4 t n
Rp164.0 t n
7.7%
• Current Account s
Rp 67.0 t n
Rp 69.1 t n
3.1%
• Saving Account s
Rp 85.4 t n
Rp 95.0 t n
11.2%
Total Loans
Rp138.5 t n
Rp174.5 t n
25.9%
* Consolidated In-house #’s
2
M aint aining moment um for grow t h
Loans by SBU*
(Rp Bn)
Deposit s by Product – Bank Only
(Rp Bn)
2008
R %
300
150
M icro
Small
Cons
Comm
Int 'l
Corp
4.4
14.8
63.3%
13.3%
125
19.3
75
1.7
7.6
11.1
10.7
50
24.4
25.9
14.2
15.7
41.6
34.0%
95.7
30.3%
4.4
15.1
54.3%
50.4
51.8
2.8%
4.7
7.4
57.0%
100
80.5
81.5
82.2
0.8%
Q4 '07
Q4 '08
9.8
9.1
11.4
44.8
73.4
57.5%
2.8
62.0
12.6
32.1%
93.2
31.5
21.4
15.9
150
1.0
29.9
Rp Savings Deposit s
250
0.9
25
Rp Demand Deposit s
FX Savings Deposit s
200
13.1
1.9
8.9
Rp Time Deposit s
FX Demand Deposit s
35.4%
2.7
100
FX Time Deposit s
2008
R %
38.4%
30.1
50
33.6
4.1
3.5
36.1
45.2
57.6
0
0
Q4 '05
Q4 '06
Q4 '07
Q4 '08
Q4 '05
Q4 '06
* Cash Collat eral Loans have been reallocat ed t o Small Business
3
St rong and liquid balance sheet
(Rp Bn, Bank Only – In-house)
Amount
% of
Asset s
Amount
% of
Liab.
Cash
8,064
2.38%
Current Account
66,908
19.77%
SBI & BI Placement (net )
46,077
13.61%
Savings
89,611
26.47%
Placement w / ot her banks
(net )
21,717
6.42%
Time Deposit s (Rp)
95,693
28.27%
M arketable Securit ies (net )
1,374
0.41%
Time Deposit s (Fx)
21,354
6.31%
Government Bonds
87,772
25.93%
Total Deposit s
273,566
80.82%
Loans (Gross)
159,007
46.97%
Securit ies Issued
779
0.23%
Provisions
(11,372)
(3.36%)
Deposit s from ot her banks
5,776
1.71%
Ot her Advances (net )
7,576
2.24%
Borrow ings
8,639
2.55%
Invest ment s
3,058
0.90%
Ot her Int erest bearing
liabilit ies
2,837
0.84%
Ot her Asset s
15,235
4.50%
Non Int erest bearing liabilit ies
16,490
4.87%
Equit y
30,422
8.99%
Total
338,508
100.00%
Asset s
Total
338,508
100.00%
Liabilit ies
4
Low er LDR’s, part icularly in FX, reflect liquidit y
FX Loans* & LDR
Rupiah Loans* & LDR
52.5%
Loans (Rp t n)
LDR (%)
53.9%
Loans (Rp t n)
52.4%
LDR (%)
131.1%
48.1%
123.7%
43.0%
40.4%
41.4%
111.0%
104.4%
102.5%
95.9%
80.4%
120.4
2007
Q1 '08
Q2 '08
35.2
2006
36.6
2005
34.3
Q4 '08
33.4
Q3 '08
37.6
Q2 '08
33.8
31.3
Q1 '08
106.7
2007
97.5
86.3
2006
85.0
73.9
68.1
2005
Q3 '08
Q4 '08
* Excluding loans t o banks & rest ruct uring losses
5
FX loan exposure contained as FX funding
rises
FX Loans
FX Funding
(USD million)
(USD million)
+511
(663)
4,254
4,011
3,765
582
32 3
3,158
895
3,755
282
45 6
730
691
3,822
248
22
38
3,472
3,348
687
694
30
984
3,238
3,108
382
55 3
4,003
3,883
247
44
34
3
356
623
3,492
583
2,860
675
501
458
980
1,941
1,593
290
1,599
1,592
282
677
823
1,705
1,696
1,395
2,908
466
2,731
2,820
2,998
2,310
1,834
1,163
2005
1,159
2006
Current
2007
S.M ent ion
Q1-2008
Q2-2008
Sub St andard
Q3-2008
Doubt ful
Q4-2008
Loss
2005
1,007
1,041
2006
2007
Demand Deposit
1,291
Q1-2008
1,468
1,385
1,112
Q2-2008
Time Deposit
Q3-2008
Q4-2008
Savings
6
Committed to Improving Shareholders Value
Business
St rat egy
Reduce Cost of Funds
Improve Asset s Yield
Compet it ive,
sustainable
ret urns, w it h
above-average
Support
St rat egy
Reduce Provision/ NPL
Reduce Cost Efficiency
rates of
grow t h
St rat egic
Alliances
Leverage on cash generator to
accelerate grow t h in higher
yield business
Key Priorit ies in 2009 - 2010
Alliance Strategy Focus
St rengt hening our deposit franchise, to
become primary payment bank
- Providing basic t ransact ion
and cash management
2.
Developing high yield business
- Support ing suppliers and
dist ribut ors in w orking capit al
financing
3.
Enhancing w holesale franchise and diversifying
w holesale t ransact ions
4.
Connect ing t he business, leveraging synergy
5.
Non-organic grow t h & synergy in opt imizing
subsidiaries
dist ribut or
employees as cust omers:
Corporat e
- M ort gage or aut o loans
- Corporat e/ Ret ail cards
1.
§ Improving supplier net w ork and
§ Cross sell product s t o
- Payroll
Business Strategies
SBU
Strategic
Alliances
§ Cross sell product s for employee as cust omers : Payroll, mort gage, aut o
loans, commercial / ret ail cards
§ Developing w ealt h management for individual Direct or or ow ner
operat ors
Support Strategy
Efficiency
• Increase IT
Operat ions efficiency
and cent ralized and
consolidat ed
procurement
Human Capital
Risk M anagement
•
Increase earning
asset s monit oring
and perfect ing early
w arning signal
•
Consolidat ed risk and
monit oring
subsidiaries
•
Enhance employee
product ivit ies and
int ernal cult ure
•
Apply best pract ice
for recruit , ret ain and
develop
Information Technology
Performance Culture
•
Implement Business
Solut ion Excellence t o
support payment
bank st rat egy
• Apply Value Based
M anagement as t he
next st ep of
Performance Cult ure
•
Implement Service
Excellence St rat egy t o
support business
growt h and services
Enhancing deposit franchise, st rengt hening
ret ail payment s
Number of GazCards Issued
11,817
8,813
9,078
9,347
Dec '07
M ar '08
Jun '08
Jul '08
12,372
12,566
12,597
13,061
Aug '08
Sep '08
Oct '08
Nov '08
13,701
Dec '08
1.
Est imat ed t ransact ion grow t h at 3.28% annually.
2.
E-t oll penet rat ion in t he first year est imat ed at
2%, rising t o 18% by year 10
3.
Average balance for each card is Rp 214,627/ card.
4.
Year 1 target of ~ 63,000 cards
* * E-t oll was launched on January 30, 2009
Sust ained savings & ret ail payment franchise
Transact ion channel growt h
Savings Deposit Growt h
Savings Deposit s (Rp t n)
Ot her
As % of Tot al Deposit s
57.09
55.80
74.71
84.70
54.48
51.04 65.9
49.59 58.76
55.00
Payment
Nat ional Share of Savings Deposit s (%)
Transfer
Wit hdraw al/ Inquiry
Avg ATM Daily Vol (000)
38.6%
40.0%
29.79
29.3
30.81
19.6
35.6%
34.6%
37.37
39.07
32.8%
1,043.4
1,088.8
976.7
11.6%
899.7
16.2%
853.4
22.8%
677.0
29.2%
607.5
492.1
30.6%
22.7%
16.9% 17.5%
16.0%
17.2%
18.5% 19.1%
19.3%
Quart erly Call Cent er Trans.
(000)
17.9%
3,029
2,988
Quart erly SM S Trans. (000)
2,784
3,464
12.8%
15.3%
1,722
11.0% 11.7%
1,086
15,864
16,857
19,116
15,840
Q4 '06
Q4 '07
Q1 '08
Q2 '08
Q3 '08
Q4 '08
11,435
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q4 '08
Q3 '08
Q2 '08
Q1 '08
Q4 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q4 '05
27
6,988
89.61
82.16
88.52
81.65
81.54
57.60
45.20
52.00
40.50
29.59
22.12
17.96
1,016
679 3,072
1,069
Enhancing deposit franchise, building on
w holesale t ransact ions
Cash M anagement Growt h in Commercial Banking
Wholesale Deposit Growt h (CASA)
(Rp t n)
2.1
Comm Savings
Comm Demand
1.8
Tot al Transact ions
(000)
# of
Cust omers
Corp Savings
Corp Demand
21.0
19.4
+55%
0.6
+146%
0.7
12.1
14.8
34.0
24.9
2005
36.5
23.0
2006
2007
2008
407
632
745
2,414
4,066
2007
2008
2006
2007
2008
Building our high yield business
§
§
Consumer Loans
M icro Banking
Small Business
Expand physical dist ribut ion net work (addit ional
SBDCs) and enhance and develop loan
processing and business model, LOS
Enhancement , and also Scoring Syst em
§
Expand physical dist ribut ion net work
t hrough t he opening of 200 M BU’s and
100 new sales out let in 2009.
§
St rengt hen t he port folio mix, wit h emphasis
on relat ively-high-yield product s such as KTA
and M it ra Karya
§
§
Relocat e Small Business t o Commercial Banking
in order t o grow expansion in Small Business
market niche
Develop product s such as refinement s of
loans t o TKI, addit ional loan limit s, and
micro savings product development .
Enhancing t he pricing st rat egy t o improve
yield management
§
§
Ot her st rat egic init iat ives include: set t ing
up Sales Transact ion Cont rols; reviewing
t he ut ilizat ion of Core Syst ems – specific
t o M icro and t he implement at ion of
M icro Business Risk Review; t he
implement at ion of pilot project M icro
Collect ion Cent er and t he inst allat ion of
handheld collect ion .
Int egrat ion of Tunas Financindo Sarana t o
complement t he development of t he
Consumer Finance business as a whole .
§
Refine loan processes by creat ing Credit Risk
M anagement dedicat ed t o Small Business, as
well as opt imizing t he ut ilizat ion of risk-based
scoring.
§
Focus on t arget market s such as first -class
funding cust omers, exist ing debt ors, t op
businessmen, t op SOE’s and Privat e
Cooperat ives, and market ing t hrough business
part ners of Corporat e and Commercial Banking
cust omers
Consumer Cards
•
Acquisit ion of specific segment s t hrough
cross-selling funding cust omers for silver and
gold lower segment , as well as opt imizing
cross-sell pot ent ials wit h ot her consumer
product s
•
Increase sales volume and accelerat e t he
format ion of revolving balances t hrough
market ing program & usage t o silver segment
Building our high yield businesses
M icro Credit s
Small Credit s
(Rp Bn)
Loan
(Rp Bn)
12.8%
Consumer Loans
(Rp Bn)
19.7%
12.7%
Yields
1,734
4,720
1,699
Q4 2007
Grow t h
Disbursement Breakdown (Q4 ‘08)
158
Q4 2007
Disbursement Breakdown (Q4 ‘08)
Grow t h
Q4 2008
Disbursement Breakdown (Q4 ‘08)
1,201
0
1,092
185
1
Q42008
38.3%
869
143
17,044
Q42008
62.9%
12,324
Grow t h
4,376
Q4 2007
2,677
14,815
13,081
12.9%
1,969
6,829
1,365
8,272
3,055
4,381
3,587
3,737
532
TOTAL
Cash Coll
Food Suff.
Channeling
Alliances
Coops
Program
Non-Prog
Rural Banks
M icro
Unsecured
M icro
TOTAL
M ort gage Home Equit y Payroll Loan
Loan
Ot her
Tot al
Tunas Finance as one of our main t hrust s in
Consumer High Yield
Financial performance of Tunas
Finance show s improvement
Financing and Income
acquisit ion of Tunas Finance:
– On 9 December 2008, Bapepam
2,040.9
1,718.4
1,715.4
116.9
84.7
confirmed t hat Tunas Finance
business act ivit ies are in
compliance wit h PM K No.
84/ PM K.012/ 2006
29.9
– On 8 January 2009, BI has issued a
12.9
2005
2006
2007
Net Financing To Cust omers
2008
(%)
• Bank M andiri has complet ed int ernal
preparat ions t o finalize acquisit ion.
1.9%
5.0%
2005
2006
Micro & Retail
closed in first week of February 2009.
• The synergy bet ween Bank M andiri and
6.9%
6.4%
4.5%
ROA
Commercial
• The acquisit ion t ransact ion will be
2.5%
5.0%
5.2%
Consumer Corporate
31.6%
19.6%
1.4%
let t er approving Bank M andiri t o
acquire Tunas Finance.
Bank M andiri will ut ilize it ’s dist ribut ion
channels across Indonesia t o increase
Tunas Finance point of sales.
Net Profit
Financial Rat ios
11.7%
Our St rategy & intent
• Regulat ors have approved t he
(IDR Billion)
1,694.9
Updates and act ions going forw ard
2007
ROE
2008
NIM
Tunas Finance will be achieved t hrough
joint financing which is t arget ed t o
reach Rp 2 t rillion in 2009.
Bank M andiri int ends t o develop and
penet rat e t he vehicle financing segment
by st rat egic alliances t hrough cross-selling
bet ween subsidiaries, cust omers, and
business t o business collaborat ion wit h
sole dist ributors in Indonesia.
Diversify w holesale st rengt h into t ransact ional
banking
Total Wholesale Transact ions
Transact ion Type
Cash M anagement
FX
Trade Finance
Unit s
# of
t ransact ions
2007
2008
Growt h
Reconciliat ion
407,407
632,100
Recovery
Payment
USD mil
28,822
37,229
29.2%
IDR bil
107,710
123,456
14.6%
Credit
& Report ing
55.2%
Collect ion
Int ernat ional
Local
IDR bil
1,118,432
1,427,984
27.7%
USD mil
53,325
72,409
35.8%
IDR bil
617,550
638,726
3.4%
Suppliers
Produce&
St art
Dist ribut e Bill
Remit t ances
Select
End
Generat e
Improving Cash Cycle
Generat e
M it igat ing Risks
A/ R
Purchase
Order
Receive
Acquire
Cust omer
Invoice
St art
End
M at ch Invoice
vs. Delivery
Clear
A/ P
M ake
Payment
St rengt hening Risk M anagement & M onit oring
Syst em
Summary of risk management init iat ives
Corporat e Cust omer by Rat ing
• Enhance business process credit approval, CR
High Risk (Rat ing C- G)
met hodologies & t ools (monit oring syst em)
M edium Risk (Rat ing BBB – B)
Credit
Low Risk (Rat ing AAA – A)
100%
15%
80%
12%
11%
24%
21%
subsidiaries – Credit , M arket & Operat ional)
M arket
34%
60%
40%
64%
• Develop & enhance collect ion syst ems
• Opt imize credit port folio management syst em
• Consolidat e risk profile (incl. overseas offices &
• Implement at ion of st ress t est analysis
• Development of derivat ive syst em (summit )
• Enhance our Treasury policy
• ORM implement at ion in all unit , incl. overseas
68%
offices & subsidiary
51%
Operat ional
20%
• Set up Operat ional Risk Commit t ee under RCC
• Synchronizat ion of Risk-Based Audit met hodology
wit h RCSA (ORM )
0%
2006
2007
2008
16
Leveraging cash generat or t o accelerat e high
yield grow t h
December 2006
Alliance St rategy Focus
NII
Fees
PoT
Building Fut ure Grow t h
Engine
(Consumer & M icro/ Ret ail )
CM = Rp5.425 t rillion
Leveraging Our Cash
Generat or
(Corporat e & Treasury)
CM = Rp3.286 t rillion
Corporat e
Commercial
Treasury & Int 'l
23.2%
2,112
304
3.3%
M icro & Ret ail
Consumer Finance
25.2%
2,300
3,628
771
PoT
5.1%
127
762
30.8%
1,176
39.8%
8.5%
10.9%
268
138
47.6%
5.6%
December 2008
NII
Fees
PoT
St rengt hen Emerging Business
(Commercial Banking )
CM = Rp2.427 t rillion
PoT
Corporat e
2,537
18.3%
420
9.9%
Commercial
2,632
19.4%
480
11.3%
Treasury & Int 'l
768
M icro & Ret ail
Consumer Finance
5.7%
6,632
1,017
903
2,091
48.8%
7.5%
21.2%
359
49.2%
8.4%
Leveraging cash generat or t o accelerat e high
yield grow t h
Early Alliance Program Result s
Corporat e Card Holders
Consumer Loans
(10 t o corporat e client s)
(10 t op corporat e client s)
Plant at ion Small & M icro Lending
Rp Billion
Rp Billion
1,259 1,275
418
416
427
1,128
2,007
350
1,869
347
1,796
1,616
897
1,620
791
149
319
Q4'07
Q1 '08
Q2 '08
Q3'08
Q4'08
Q4 '06 Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08
Q4 '06 Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08
2010: t o be a Dominant M ult i-Specialist Bank
and considered as a Regional Champion Bank
Defining a Dominant M ult i-specialist
Implicat ions of Dominant M ult i-specialist st rat egy
WHAT IT MEANS ?
“DOMINANT”
Target ing 20%-30% market share
of revenue of each segment .
§ No.1 or No. 2 in each segment is t he focus
§ M arket Capitalizat ion comparable w it h banks in Sout h
east Asia
§ Target ing higher revenue grow t h above compet itors
and market .
“MULTI-SPECIALIST”
§ Increase market share significant ly in micro, small
Having a dist inct ive st rat egy in
each segment w hich different iat e
w it h compet it ors.
§ Select key priorit ies to each segment appropriate to
business and consumer finance segment s.
it s revenue pool.
§ Act ive in internat ional banking , along w it h t he
act ivit ies of t rade & w orkers (TKI).
“REGIONAL PLAYER”
Becoming blue-chip corporat e in
Asia Pacific
“MOST PREFERRED”
Providing value proposit ion t o t he
segment we are focusing.
WHAT IT DOES NOT MEAN ?
§ Aggressive Internat ional presence.
§ M e too st rategy, target ing t he same market segment s
as compet it ion.
§ Drive business grow t h aggressively w it hout
considerat ion of revenue grow t h or profitabilit y.
Indonesia Economic Out look 2009
• Inflation to decline to 6.8% in 2009
•
Economic growth is expected to slow to 4.8% in 2009
• Private spending and investment growth to decelerate
• Low dependence on export and weaker import would lessen the external impact
• Rupiah trading at Rp11,302/US$ at the end of 2009
• Fiscal stimulus would help to support the economy
• Downside risk remains
21
For Additional Information:
Please refer to our website at www.bankmandiri.co.id
Or Contact:
Sukoriyanto Saputro
Corporate Secretary
Tel:
(6221) 524 5299
Fax: (6221) 5296 4024
Jonathan Zax
Head of Investor Relations
Tel:
(6221) 3002-3171
Fax: (6221) 5290 4249
E-mail: ir@bankmandiri.co.id
PT Bank M andiri (Persero) Tbk
Plaza M andiri
Jl. Jend. Gat ot Subrot o Kav. 36-38
Jakart a 12190
M ain Tel: 526-5045