08 02 15 BMRI Analyst Meeting

(1)

PT Bank Mandiri (Persero) Tbk

2008 Analyst Day

(2)

Gross NPL below 10%

;

Net NPL below 4%

;

Increased coverage of NPLs to > 100%

;

Profitability normalizing, ROE > 15%

;

Gross loan growth > 18%*

;

Major leap in savings deposits to > Rp65 tn

;

Growing balance sheet to more than Rp300 tn

;

Margin improvement to approximately 5%

;

Retain efficiency ratio below 50%

;

Fulfilling all financial milestones

#

...

(3)

preparing for the 2

nd

stage of transformation

“Back on Track” “Outperform the Market” “Shaping the End Game”

~12 months ~12-24 months ~12-24 months

Build winning organization & performance culture

Strengthen risk management & operations Deliver tailored proposition for priority

segments

Revamp alliance program

“Bad Bank” up and running to resolve NPL issues

Key operational improvements well-underway

New BU structure and Performance Management System in place to drive performance culture

Higher professional standards embedded

Piloted and implementing CST model for large corporates

New commercial business model in place for medium and small

commercial

NPLs down to 5% gross

Dominant corporate bank built on CST model

Top commercial players with strong penetration in target segments

Completed acquisition of specialized bank and multifinance company

Market-leading position for affluent and lower affluent banking

Most convenient and service-oriented retail bank

Among most desired employers in Indonesia due to best people development program

NPLs fully resolved and Bad Bank dissolved

Alliance program up and running, creating synergies across segments

Completed acquisition and

integration of major domestic bank

Overall Bank C/I ratio of ~76% with ~15% market

share

C/I ratio of ~59% with ~16-17% market share

C/I ratio of ~54-55% with ~20-30% market share

P/B ratio 2.2

Exploring regional expansion

Top 3 alliance program up and running, creating synergies across segments

Horizon 1:

Fix the leaks and lay foundations

Horizon 2:

Consolidate & build momentum

Horizon 3:

(4)

Specific initiatives to outperform the market..

Commercial

Non-organic Growth

Build

momentum for Growth

Corporate Treasury & Int’l Micro & Retail Consumer Finance

• Extending the implementation of our performance culture by implementing value-based management, including reviewing capital allocation across business units

• Improving operational efficiency through centralization, renegotiating contracts and reallocating resources to more cost efficient channels

• Enhancing productivity of our staff through implementing best practice HR management and building capabilities

• Building the necessary infrastructure to support growth targets, including in risk management

(5)

Building momentum for growth (1)

20.3%

Rp247.5 tn

Rp205.7 tn

Total Deposits

39.7%

Rp152.4 tn

Rp109.1 tn

Low Cost Deposits

Change

Q4 2007*

Q4 2006*

17.5%

Rp138.3 tn

Rp117.7 tn

Total Loans

41.7%

Rp 85.4 tn

Rp 60.3 tn

• Savings Accounts

37.2%

Rp 66.9 tn

Rp 48.8 tn

• Current Accounts

19.9%

Rp320.7 tn

Rp267.5 tn

Total Assets

(6)

57.6 81.5 33.6 50.4 14.9 13.2 14.5 93.2 80.5 73.4 15.7 12.6 15.9 45.2 30.1 0 50 100 150 200 250

Q4 '05 Q4 '06 Q4 '07

Rp Savings Deposits Rp Demand Deposits

FX Demand Deposits Rp Time Deposits

FX Time Deposits

30.9 37.0 47.7 24.4 31.5 11.1 14.2 7.6 8.9 13.1 1.7 1.9 2.7 25.9 10.7 0 10 20 30 40 50 60 70 80 90 100 110

Q4 '05 Q4 '06 Q4 '07

Corp Comm Cons Small Micro

Building momentum for growth (2)

2007 U 26.2% (8.8%) 9.8% 50.0% 41.5% 2007 U 42.1% 47.2% 27.9%

Loans by SBU* (Rp Bn)

29.1%

28.9%

Deposits by Product – Bank Only (Rp Bn)

(7)

Continue to leverage cash generators (1)

Micro Business Consumer Loans Consumer Cards Wealth Management Small Business Commercial Banking Mass & Electronic Banking Groups

Groups Facilities_Facilities

Mandiri Prioritas Membership

Corporate Card

Mitrakarya Mandiri

Targets

IDR 150 bn 1,600 cards 143 New Customers

Liabilities Product & Investment

Product IDR 75.1 bn

Lending to Petrol Distributors Lending to Petrol Sub-agents

IDR 50 bn

Employees Cooperatives Delivery Order SPBU

IDR 39 bn

IDR 37 bn

Trade Service USD 1.84 bn

EDC on SPBU 150 units Providing Services & Business Development for Oil & Gas Company

Treasury

Foreign Exchange USD 7.71 bn Money Market IDR 3 tn

Performance to Date

IDR 160 bn 2,314 cards 185 Customers

IDR 85.0 bn

IDR 8.6 bn

IDR 0.44 bn

IDR 16.2 bn

IDR 18.3 bn

USD 2.23 bn

259 units

USD 5.30 bn

IDR 5.4 tn

Payroll _- 3,000 account

(IDR 29 bn)

Consumer Finance & Micro & Retail

Banking Rp2,633 bn Commercial Banking Rp2,063 bn Building Future Growth Engine Leveraging Our Cash Generator Strengthen Emerging Business 1 1 3 3 Corporate & Treasury Rp3,830 bn 2 2 Optimizing Synergies Across SBUs Optimizing Synergies Across SBUs

(8)

Customers/Channels

Telkom

Supplier/ Employees

End User

Facilities to sub-contractors

providing construction as well as supplier requirements:

Cash Loans

Non Cash Loans

E-BIZ for Small Business segment

Leveraging on the large number of employees:

Payroll Package for payment of salaries to employees

Consumer Loans for the

employees of the company, ex. Mitra Karya

Optimize Funding and

Lending facilities through our CST Program to increase share of wallet by offering:

Cash Loans

Non Cash Loans

Cash Management Systems

Treasury products to better manage currency exposure from importing capital goods

Trade products, particularly for import of capital goods

Leverage Telkom’s customer base to cross-sell our several products such as:

Co-branding or introducing Credit Cards

Cross-sell consumer loan products

Offer wealth products to selected customers

Bill payment

In addition, we are also

looking for opportunities to leverage Telkom’s outlets to sell Bank Mandiri products

Value Chain Telkom &

Group

Continue to leverage cash generators (2)

(9)

Strengthening the Mandiri Group…

Investment Bank

Syariah Banking _Insurance

• Enhance operating model • Improve risk management

systems and IT

• Improve productivity • Provide end-to-end bank

assurance business • Continue to build

cross-sell opportunities in various segments

• Bank assurance products complete our suite of consumer offerings • Expansion of business to

fully utilize current capital base

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

• Refocus business toward higher fee income

• Remain the leader in syariah financing • Capital injection

program over 3 years • Cross-sell syariah

products to Mandiri customers

ROE 19.7% Embedded Value

Rp466 bn ROA

5.8% ROE

16.6%

ROA 3.4% Total GWP

Rp1.4 tn Equity Trading Volume

Rp49.4 tn Total Deposits

Rp9.9 tn

Net Interest Margin 13.7%

Annual FYP Rp438 bn Bond Underwriting

Rp3.5 tn Total Financing

Rp9.3 tn

Total Loans Rp173 bn Total Assets

Rp3.2 tn Bond Trading Volume

Rp70.8 tn Total Assets

Rp11.5 tn

Niche Banking

(10)

Niche Strategy - Bank Sinar Harapan Bali

Our Strategy & Intent Actions Going Forward

Total Lending (Rp bn)

172.7

107.3 125.9 133.6

0 25 50 75 100 125 150 175

2004 2005 2006 Oct '07

Total NPL (%)

0.70% 1.25% 0.82% 1.25% 0% 1% 1% 2% 2% 3%

2004 2005 2006 Oct '07

Net Interest Margins

13.7%

16.0% _14.1% _13.5%

0% 3% 6% 9% 12% 15% 18%

2004 2005 2006 Q3 '07

Our main focus will be to

strengthen Bank Sinar’s capability and infrastructure by assisting the implementation of appropriate Risk Management Tools, an IT Platform, as well as Human Capital Development

We intend to maintain Bank Sinar’s positioning as the premiere Micro & SME lending institution in Bali, through the introduction of new products aimed specifically toward this particular segment

Bank Mandiri will also utilize Bank Sinar as a vehicle to further

develop and penetrate the Micro & SME segment in Indonesia, which is an integral part of Bank Mandiri’s strategy to develop high-margin segment

EGM to approve the acquisition of Bank Sinar is planned for March 17th, 2008

Following the EGM, and upon approval from BI (anticipated by end of March 2008), we intend to sign the Sale & Purchase

Agreement (SPA) for the

ownership of 80% of Bank Sinar Before completing the

transaction, we have assigned personnel to assist Bank Sinar in preparing for post-acquisition business development (with specific focus on strengthening Risk Management and IT

(11)

1. Strengthening relationships with existing customers where Bank

Mandiri has a dominant share, including plantations, infrastructure,

SOE’s and other government institutions.

2. Finding opportunities to cross-sell fee-based business through

treasury products, cash management and investment banking

activities.

3. Actively target publicly listed companies with which Bank Mandiri is

currently not garnering a sufficient share, particularly in attractive

sectors.

4. Improve our value proposition through more tailored product

offerings, total relationship management and fast turnaround to

targeted customers.

5. Broaden relationships to offer products and services to our

corporate clients’ suppliers, employees and customers.

(12)

Corporate Banking: Cross-selling and alliances to expand

our total value chain exposure

7.5%

11.0%

41.2%

100.0% 40.3%

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

BM Other SOEs Private Banks

JVs/Foreign Total

Payroll Loan Growth from Alliance Program

391 486 532

611

319

0 200 400 600 800

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

Further driving cross-selling opportunities into other SBU’s

e.g. Free Fuel program to increase utilization of EDCs in Pertamina gas stations

Relationships with 145 Top SOEs and Govt Depts

(13)

Commercial Banking : Stronger Platform Improved

Distribution Capability

Movement of Commercial Loans Strategies For 2008

17.1

10.0

0.1

0.2

0.1

31.5 24.4

2006 Di

sb

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rse

m

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ay

m

e

n

ts

FX

Im

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ac

t

In

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U

Mo

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m

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t

Wr

it

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-O

ffs

2007

1. Focus on large and medium commercial

to grow quality loan portfolio

2. Targets growth in selected geographics

and regions including through take overs and strengthening distribution

3. Financing the subcontractors of large

corporates particularly in infrastructure, mining, and telecom

4. Grow the solid and stable source of low

cost funds

5. Strengthening the infrastructure of fee

income business, particularly trade finance and cash management

(14)

CBC = 17 Unit

Floor = 12 Unit

TSC = 9 Unit

Commercial Banking : Stronger Platform Improved

Distribution Capability

Expanding Scope of Distribution, 2007 Solid & Stable Source of

Low Cost Funds

33.3% 15.24

11.43 Rupiah

23.4% 4.11

3.33 FX

31.1% 30.52

23.28 Total

Funding

43.0% 21.11

14.76

Total Low Cost Fund

236.5% 1.75

0.74 Saving

Deposit*

31.2% 19.36

14.76 Demand

Deposit

Growth 2006

Product 2007

Rp Tn

Low Cost Fund Ratio = 69.17% LDR Commercial = 102.95%

Sumatera

Loans = Rp 4.8 Tn Funds = Rp 5.1 Tn

Kalimantan

Loans = Rp2.1 Tn Funds = Rp1.7 Tn

Eastern

Java and Bali

(15)

Treasury & International Banking: Focused on FX and

trade transactions

Volume of Forex Transaction (USD Bn)

Singapore Branch Loan Growth

(IDR Bn) Strategies for 2008

52.7

72.5 78.7

2005 2006 2007

547

375

1,323

2005 2006 2007

1. Intensify cross-selling of forex products and services to our corporate and large

commercial clients

2. Leverage our overseas network to grow our syndicated

facilities to high quality

customers in selected sectors 3. Partner with 3rd parties to

improve derivative offerings 4. Enhancing our regional

distribution (RTM) in high growth, export-oriented regions in collaboration with Micro & Retail Banking

5. Seek opportunities to enhance the yield of our recent

(16)

Micro & Retail Banking : Rapidly growing our high

margin businesses

Breakdown of New Micro Loans Disbursed

Breakdown of New Small Business

Loans Disbursed Strategies for 2008

1. Build around our strength

in corporate and large Commercial customers to quickly build high margin business

2. Continue to improve our

payment infrastructure

3. Expand our distribution

with a focus on high margin business

4. Improving sales culture and

productivity of existing network

5. Cross sell to grow our fee

based income business

Rp Bn _{Rp Bn}

580 1,478 2,058 0.015 Ru ra l Ba n k s Mi c ro L o a n s U n se cu re d M icr o Lo an s TO TA L 2, 549 1, 591 2, 460 289 7, 118

97 31 101

(17)

Micro & Retail Banking: Building upon our solid

infrastructure & extensive corporate relationships

Building on Our Corporate Strength

Improving Our Payment

Infrastructure Strengthening Our Distribution

ATM Branches & Outlets Micro Outlets

EDCs

23,690

3,186

1. Growing micro-loans to employees of and suppliers related to our corporate

customers (e.g. loans to petrol distributors, loan to employee cooperatives, etc)

2. Payment Systems for employee payroll and payment points

3. Saving products and ATM Services for employees at corporate company area

Plan 2008 ₂₀₀₇

955 1,025 297

597

4,186

Network

Debit Facility

Transfer

Cash Deposit

Payment/Purchase

Credit Card Tax Payment

Loan Installment Insurance Education Mutual Funds

Informations

BCA BNI Bank Mandiri

Insurance Payment

Installment Payment

Education Payment

Multi Payment

Acquiring/ATM Network

Purchase Payment

Credit Card Payment

Recently Added Features

(18)

Consumer finance: Cross-selling to corporate

employees and driving anchor mortgage products

Breakdown of Consumer Finance*

(Rp Bn) Strategies in 2008

1. Building on our corporate relationships to

crosssell our consumer finance products -particularly cards and payroll loans

2. Continue to focus on growing 3 main

products: mortgages, credit cards, and payroll & personal loans

3. Expand our channels through converting

the outlets into business centers and opening new consumer outlets

4. Optimize the business process, and

continue to improve the existing score cards

5. Focus on top 10 developers and dealers as

main distributors

3,

666

2,

427

2,

644

2,

789

3,

010

3,

663 3,865

4,

501

5,

382

3,

610

3,

522 3,404

3,

390

3,

437

2,

285

1,293 1,358 1,426

1,

678

1,

908

Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Other

Credit Cards Payroll Loans Home Equity Loans Mortgages

2007

U

47.6%

31.7%

(6.2%)

49.1% 121.4%

(19)

Consumer Finance: Expanding high margin products

& driving developer relationships

Grow High Margin Consumer Finance Example of Our Push to Focus on Top 10

Developer

(20)

...translated into specific milestones in 2008

Gross NPL < 5%

Improving return to shareholders, ROE > 19%

Gross loan growth > 22%*

Savings deposit growth to > Rp85 tn

Margin improvement to approximately 5.2%

Retain efficiency ratio below 50%

Increased coverage of NPLs to > 120%

(21)

Notes

__________________________________________________________________________________

(22)

21

For Additional Information:

Please refer to our website at www.bankmandiri.co.id

Or Contact:

Mansyur Nasution 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 Mandiri (Persero) Tbk Plaza Mandiri

Jl. Jend. Gatot Subroto Kav. 36-38 Jakarta 12190