Mandiri

(1)

PT Bank Mandiri (Persero) Tbk

PT

Bank

Mandiri (Persero)

Tbk

Q2

2010

Results

Presentation

(2)

Share

Information

Description

Per 30 June 2010 No. of

Investor % No. of shares % Investor

DOMESTIC

1. Government of RI 1 0.006% 14,000,000,000 66.73% 2. Retail 6,077 38.85% 102,274,289 0.49% 3. Employees 8,200 52.42% 122,437,619 0.58% 4. Cooperatives 3 0.02% 30,000 0.00% 5. Foundations 12 0.08% 8,783,000 0.04% 6. Pension Funds 85 0.54% 160,701,500 0.77% 7. Insurance 39 0.25% 241,264,000 1.15%

8. Banks 1 0.01% 36,000 0.00%

9. Corporations 82 0.52% 230,344,313 1.10% 10. Financial Institutions ‐ 0.00% ‐ 0.00% 11. Mutual Funds 116 0.74% 515,021,000 2.45%

Total 14,616 93.43% 15,380,891,721 73.31%

INTERNATIONAL

1. Retail 52 0.33% 1,753,500 0.01%

2. Institutional 975 6.23% 5,598,975,655 26.69%

Total 1 027 6 57% 5 600 729 155 26 69%

from: IPO Jan 1, 2010

Total 1,027 6.57% 5,600,729,155 26.69%

TOTAL 15,643 100.00% 20,981,620,876 100.00%

84

,

(3)

Bank

Mandiri

Presentation

Contents

Results Overview Page #



2010 Financial Highlights 3



SBU Performance 4‐5



5‐Year Transformation Improvements 6



Balance Sheet Overview 7



Loan Growth & LDR 8‐9



Net Interest Margins 10



Strategy Overview 11‐12



Deposit Franchise Development 13‐16



Wholesaleo esa e e d g a d ees Lending and Fees 17‐188



High‐Yield Lending Activities 19‐22



NPL Movement, Asset Quality & Provisioning 23‐26



Progress on Selected Debtors 27



Enhancing Risk Management 28



Overhead Expense Details 29



Leveraging SBU Alliances & Subsidiaries 30‐32



Operating Profit & Summary P&LOperating Profit & Summary P&L 3333



CAR, ROE, PAT 34



2010 Guidance 35

Operating Performance Highlights 37‐44

(4)

Supported

by

a

new

Organization

Structure

P id t Di t

Board of Commissioners President Director

Deputy President Director RISWINANDI

ZULKIFLI ZAINI

Corporate Banking*)

Commercial & Business Banking

Micro & Retail Banking

Risk Management Finance &

Strategy Compliance &

HC

Internal Audit Consumer

Finance

Treasury, FI & Special Asset

Mgmt

Change Mgmt. Office Institutional

Banking

Technology & Operations

ABDUL

RACHMAN SUNARSO

BUDI G. SADIKIN

MANSYUR S.

NASUTION

KRESNO

SEDIARSI FRANSISCA N.

MOK

THOMAS

ARIFIN

OGI

PRASTOMIYONO PAHALA N.

MANSURY

HARYANTO BUDIMAN RIYANI T. BONDAN

SENTOT A. SENTAUSA

Bank Syariah

Mandiri AXA Mandiri

Bank Sinar Harapan Bali

Mandiri

Mandiri Tunas Finance Mandiri

Sekuritas (Inv. Banking)

BMEL

International Remittance

Commissioner Directors EVP Coordinator

Risk and Capital Committee Information & Technology Committee Human Capital Policy Committee Wholesale Executive Committee Retail & Support Executive Committee Committees under

The Directors

(5)

Key

Financial

Highlights

Bank

Mandiri’s H1

2010

Performance

continued

to

demonstrate

marked

improvements

p

in

several

key

y

indicators:

H1

‘09

H1

‘10



%

Loans

Rp181.6

tn

Rp218.0

tn

20.0%

Net

NPL Ratio

1.00%

0.62%

(38.0%)

Gross NPL Ratio 4.78% 2.54% (46.9%)

Low

Cost

Funds

Ratio

56.7%

57.3%

1.0%

[Low Cost Funds (Rp)] Rp162.7 tn Rp187.1 tn 15.0%

NIM

5.35%

5.18%

(3.2%)

Efficiency

Ratio

38.9%

38.7%

(0.7%)

f

b

(6)

Maintaining

momentum

for

growth

Y‐o‐Y  Y‐o‐Y



Loans

by

SBU*

(Rp Tn)

Deposits

by

Product

– Bank

Only

(Rp Tn)

14.9 11.2

11.2 280

300

320 _FX Time _Rp Time

FX Demand Rp Demand FX Savings Rp Savings 19.3

5.4 5.6 6.0

170 180 190

Micro Small Cons Comm Int'l Corp



(38.2%) 

24.7%

24 7% 21.7%

147.5tn 186.2tn

Total Total 256.0tn _{302.1tn 11.9%}

95 7 97 9 101.5 108.5

113.7 118.3 15.9

21.4 16.2

18.1 16.5

220 240 260 280

20 6 21.7

23.6 24.7 26.7

14.8 14.1 15.5

16.3

17.1 17.7

4.4 4.6 4.8

5.1 5.4

120 130 140 150 160

( )

20.9% 24.7%

29.7%

51 8 _{45 0}

9.8 15.1 _19.5 17.5 20.3 18.0

21.2 22.0

93.2 80.5 73.4

95.7

91.9 97.9 15.7 12.6

140 160 180 200

0.4

41.6 40.6 41.9

43.6 49.1 49.1 53.1

14.2

19.3 19.7 20.6

8 9 13.1

1

1.9 2.7

80 90 100 110 120

25.7% 26.7%

(91 3%)

4.1

4.7 7.4 _8.2 8.3 8.7 9.7

9.9 10.8

30.1 33.6

50.4 51.8 43.0 45.4 43.7 51.8

45.8 45.0

11.4 9.1

60 80 100 120

65 8 68 8 69 8 74.5 80.7 0.9

2.8

4.4 4.4 4.4

4.2 4.5 0.2

25.9 24.4 31.5

10.7 11.1

7.6 8.9

1.7

40 50 60

70 (0.7)%

22 6% (91.3%)

30.0%

45.2 57.6

81.5 82.2 77.2 82.8 87.3 96.8 89.5 94.7 3.5

4.1

0 20 40 60

Q4 '05 Q4 '06 Q4 '07 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

29.9 36.1 44.8

62.0 64.1 65.8 68.8 69.8 1.0

0 10 20 30

Q4 '05 Q4 '06 Q4 '07 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

14.4% 22.6%

4 Q4 05 Q4 06 Q4 07 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

Q4 05 Q4 06 Q4 07 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

(7)

Balanced

Earnings

from

all

Business

Units

21.5%

1 777

1,346

Corporate

Net Interest Income

NII (Rp bn) % of Total

Alliance Strategy Focus

17.8%

26.1%

24.5%

5.3%

2,446 1,777

334

1,629

Treasury FI & SAM Commercial #

Q2 '08

Building Future Growth Engine

(Consumer& Micro/Retail) CM = Rp2,275 billion

Leveraging Our Cash Generator

(Corporate& Treasury, FI & SAM) CM = Rp 3,961 billion

6.5%

39.0%

39.5%

8.1%

3,949 645

508

2,436

Micro & Retail * Treasury, FI & SAM

Q2 '10

Fee Income

Fees (Rp bn) % of Total

8.1%

11.7%

1,172

508

Consumer Finance

17.0% 9.6%

12.5%

11.4%

405 342

220 298

Commercial #

Corporate _Q2_'08

Q2 '10

11.8%

32.0% 52.8%

39 0%

1 388 1,140

929 208

Micro & Retail * Treasury, FI & SAM

Strengthen Emerging Business

(Commercial Banking) CM = Rp2,115illion

39.0%

5.9%

8.1%

288

1,388

103

Consumer Finance

(8)

Transformation

has

driven

broad

improvements

No Description 2005 2006 2007 2008 2009 CAGR/_{‘05‐’09} H1 ’09 H1 ‘10 Growth_

%

Consolidated Rp Billion

1. Total Assets 263,383 267,517 319,086 358,119 394,617 10.6%

2. Total Credit 106,853 117,757 138,554 174,498 198,547 16.8%

358,897 402,084 12.0%

181,611 217,996 20.0%

3. Customer Deposits 206,289 205,708 247,355 289,112 319,550 11.6% 287,055 326,578 13.8%

4. Gross NPLs 25.20% 16.34% 7.17% 4.73% 2.79% (22.4%)

5. Net NPLs 15.34% 5.92% 1.51% 1.09% 0.42% (14.9%)

4.78% 2.54% (2.2%)

1.00% 0.62% (0.4%)

6. LDR 51.72% 57.20% 54.29% 59.16% 61.36% 9.6%

C Effi i

62.20% 66.33% 4.1%

7. Cost Efficiency

Ratio 55.57% 48.86% 46.72% 42.26% 40.18% (15.4%)

8. Net Profit 603 2,421 4,346 5,313 7,155 85.6%

38.94% 38.66% (0.3%)

2,927 4,034 37.8%

(9)

Strong

and

liquid

balance

sheet,

Q2

2010

Assets

Amount

%

of

Assets

Liabilities

Amount

%

of

Liab.

(Rp Bn, Bank Only)

Cash

5,974

1.60%

Current

Account

67,053

17.95%

SBI

&

Placement

with

BI

40,982

10.97%

Savings

105,499

28.24%

Pl

t

ith th

b

k

23 741

6 35%

Time Deposits

129 552

34 68%

Placement

with

other

banks

23,741

6.35%

Time

Deposits

129,552

34.68%

Government

Bonds

82,472

22.08%

Total

Deposits

302,105

80.86%

Marketable

Securities

5,324

1.43%

Loans

(Gross)

195,285

52.27%

Liabilities

to

BI

2,381

0.64%

Provisions

of

Loans

(10,559)

(2.83%)

Deposits

from

other

banks

7,236

1.94%

Loans

(Net)

184,726

49.45%

Fund

Borrowings

4,516

1.21%

Reverse

Repo

6,020

1.61%

Loan

Capital

3,852

1.03%

Investments

3,882

1.04%

Other

Liabilities

16,996

4.55%

Deferred

Tax

Assets

5,649

1.51%

Other

Assets

14,824

3.97%

Equity

36,508

9.77%

Total

373,593

100.00%

Total

373,593

100.00%

(10)

LDR

rising

to

66.3%

on

loan

growth

of

7.9%…

Loans (Rp tn)

LDR (%) 76.4

78.8 79.7 82.0

82.7 82.9 88.7

Corporate Commercial S ll

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

53.7% 57.2% 59.2%

65.0% 63.2% 62.2% 62.8% 64.1% 66.3% LDR (%) 44.7 53.6 55.4 68.7

43 8 _{42 6} 43 6 45.3

50.6 50.4 54.2 Small Micro Consumer 26.3% 35.4% 42.5% 40.2 38.2 42.3 44.7 22.2 31.4 35.7 32.6 35.5

41.2 43.8 42.6 43.6

15 1 15 8 16 617.4 8 0

19.7

15.8 18.7 19.3

19.7 20.6 21.7

23.6 24.8 26.7

4 3 .0 4 8 .3 6 5 .4 7 5 .9 9 4 .4 1 0 6 .9 1 1 7 .7 1 3 8 .5 1 3 5 .5 1 4 9 .6 1 6 2 .8 1 7 4 .5 1 7 5 .2 1 8 1 .6 1 8 8 .3 1 9 8 .5 2 0 1 .9 2 1 8 .0 Q 4 ' Q 4 ' Q 4 ' Q 4 ' Q 4 ' Q 4 ' Q 4 ' Q 4 ' Q 1 ' Q 2 ' Q 3 ' Q 4 ' Q 1 ' Q 2 ' Q 3 ' Q 4 ' Q 1 ' Q 2 ' 7.6 10.2

13.1 13.8 15.1 14.4 15.8

16.6

18.0

1.7 2.7 2.9 4.0 4.4 4.6 4.8 5.1

5.4 5.6 6.0

1.5 3.7

8.5 10.7 11.1

Q 4 ' Q 4 ' Q 4 ' Q 4 ' Q 4 ' Q 4 ' Q 1 ' Q 2 ' Q 3 ' Q 4 ' Q 1 ' Q 2 ' Q 3 ' Q 4 ' Q 1 ' Q 2 ' 0

0 01 02 03 04 05 06 07 80 08 08 08 90 09 09 09 10 10 '02 '03 '04 '05 '06 '07 '08 8'0 '08 '08 '09 9'0 '09 '09 '10 '10

By Segment

(Bank only)

Loans (Rp tn)

Y‐O‐Y Growth (%)

% of Portfolio

Corporate 88.67 11.32% 45.41%

7.9%

20.0% _Commercial

54.24 24.29% 27.78%

Small 19.68 24.25% 10.08%

Micro 6.04 24.74% 3.09%

8

QoQ Growth (%) YoY Growth (%)

Consumer 26.66 29.64% 13.65%

Total 195.29 18.69% 100.00%

(11)

Rp24.7tn

in

loans

disbursed

in

Q2

2010

3 28

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

1.75

3.28

24.65

5.91

4.33

0.10

0.54

195.29

2.59

181.51

7.46

24.65

9.58

(12)

Q2

NIM

of

5.2%

on

higher

Yield

on

Assets

Yield on Assets C t f F d

18.9%_18.3% 17.6%

20%

Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency*

13.0% 13.0%

11.0% 10.5%10.7% 10.8%10.8%10.8%

Cost of Funds

14.1% 13.3% 13.2% 11.2% 12.1% 12.9% 12.8% 12.2%13.1% 12.5% 14.0% 8.2% 11.7% 10.8% 7.9% 9.2% 10.6% 14.0% 17.6% 13.1% 11.9% 10 4% 11.1% 11.7% 10% 15% IDR 9.5% 8.9% 10.7%11.0% 9.3% 10.1% 9.9% 9.4% 9.4% 8.9%9.1% 7.9% 7.2% 6.2% 7.4% 10.4% 8.0%

9.2% 9.1% _6.6%

6.2% 5.4% 7.7% 6.9% 4.5% 4.6% 5.9% 5.1% 4.4% 5% 15% COF 6.3% 4.8% 7.3% 6.4% 5.3%5.5% 4.9%4 8% 0%

Avg Loan Yield Avg Bond Yield

Avg 1‐Mo. SBI Avg COF

6.5%

7.6% _7.3%

5 1%

6.6%

5.8% 6.5% 5.8%6.4%

5 2%

9.5%

10%

COF 4.8% _4.5%4.3%

3.8% 4.2% 4.8% 4.3% 4.0%4.0% FX 5.1% 5.2% 6.7% 1.4% 1.8% 5.3% 3.3% 2.7%

0 5% _{0 3%0 2%} 0 3%

3.8% 4.0% _3.4%

2.6% 2.7% 2.1% 1.5% 0.7% 0% 5% 2 .4 % 3 .9 % 2 .8 % 3 .7 % 4 .3 % 3 .6 % 4 .9 % 4 .7 % 5 .1 % 5 .5 % 6 .0 % 5 .4 % 5 .5 % 5 .3 % 4 .9 % 5 .3 % 5 .1 % 5 .2 %

0.5% _0.3%0.2% 0.3%

(13)

Committed

to

Improving

Shareholder

Value

Reduce Cost of Funds Reduce Cost of Funds

Improve Assets Yield

Diversify into Fee Income

Business

Strategy

d i i /

Competitive,

sustainable

_Reduce_{Provision/NPL}

Reduce Cost Efficiency

sustainable

returns,

with

above

‐

average

t

f

th

Support

Strategy

Leverage on cash generator

rates

of

growth

Leverage on cash generator

(wholesale) to accelerate growth in higher yield business and retail deposit

(14)

Strategy

focus

on

3

areas

of

highest

potential:

Wholesale

Transactions,

Retail

Payments

&

High

Yield

Loans

T b I d

i '

t d i d

,

y

g

To be Indonesia's most admired

& progressive financial institution

#1 in Indonesia in market capitalization by 2014

Strengthen leadership in

wholesale transaction

banking

C h i

Build #1 or #2 positions in key retail financing segments

Wi i

Be the retail deposit bank of choice

Comprehensive

financing &

transaction solutions

Holistic relationship

Win in

mortgage, personal loan & cards

Become a major player

i i b ki

Win through

differentiated

customer experience and targeted

approach for leading Indonesian institutions

in micro‐banking

Champion Syariah in

Indonesia propositions

Deploy innovative

payment solutions

Breaking down organization'silos' to provide integrated solutions to customers and alliances programs

Upgrading ke infrastr ct re(branches IT operations risk PMS) to enable differentiated c stomer e perience

12 Upgrading key infrastructure(branches, IT, operations, risk, PMS) to enable differentiated customer experience

(15)

Q2

Deposits

rise

11.9%

Y

‐

o

‐

Y

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

Deposit Analysis – Bank Only

13.9%

15% Rp DD Rp Savings

Average Quarterly Deposit Costs (%)

44.5% 45.3%

62.1%

57.8% 57.5% 57.1%

Low‐Cost Deposits (%) Rp Demand Deposits FX Demand Deposits Rp Time Deposits FX Time Deposits 11.4% 9 3% 9.5% 8.7% 8 1% 13.1% 11.9% 10.4% 9.2% 10.9% 10%

Rp TD 1 Mo. SBIs

23.1%

32.9%31.4%

44.5%

21.4 _18.116.5 14.9 11.211.2 260 280 300 4 2% 9.5% 6.9%

5.3%4.8%4.7%_3.6% 3 2% 8.4% 6.4% 9.9% 6.9%6.8% 6.3% 7.4% 9.3% _8.1% 7.2% 6.5% 6.5% 8.5% 7.4% 8.2%8.0%8.3% 9.1% 7.4% 6.6% 6.2% 5% % 7 3 .4 9 5

.7 9₁

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

.5 113

.7

1

8

.3

23 4 20 6

15.7 13.412.6 15.9 16.2 8 180 200 220 240 260 6.1% 3.7%3.7%3.5% 3.0%

2.5% 2.5%2.2% 2.8%

3.8%4.2%_3.4%3.5%3.3%

3.1% 3.2% 3.0%2.9% 3.3% 2.8%_2.5%2.7%2.6% 2.1% 0% 5%

8 7 9.7 9 9 10.8

5

0

.4

5

1

.8 43

.0 4 5 .4 4 3 .7 5 1

.8 45

.8

4

5

.0

9.1

9.8 15.1_19.517.5 20.3

18.0 21.222.0 8 7 . 1 0 6 .9 1 0 0 .7 8 0 .5 6 6 .5 9 3

.2 85

.7 8 0 .5 4 16.5 21.5 23.4 20.6 17.3 11.6 100 120 140 160 0%

4.0%4.2%3.9% _{3 7%3.9%} 6%

FX DD FX TD

1 4 . 1 8 .0 2 2 . 2 9 . 4 0 . 5 2 .0 4 5 . 4 6 . 5 7 . 8 1 .5 8 2 . 7 7 . 8 2 .8 8 7 . 9 6 .8 8 9 .5 9 4 .7 3.5 3.9 4.1

4.7 7.4 8.2 8.3 8.7 9.9

1 4 .1 3 1 .1 3 1 .2 2 4 .8 2 8 .8 2 8

.0 30_.1 29.5

3

.6

9.1 11.9 11.4 7.7

9 7 .1 .8 20 40 60 80 2.4% 0.8%0.5% 2.1%2.2%2.0% 2.4% 1.5%1.6%1.8% 1.1%0.9% 0.9% 2.6% 1.7% 1.1% 3.9% 2.6%2.9%2.8% 3.7%3.9% 3.3% 3.0% 1.9% 0.3% 0% 2% 4%

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

(16)

Building

a

strong

savings

deposit

franchise…

Savings Deposits (Rp tn) A % f T l D i

Savings Deposit Growth Transaction channel growth

Other As % of Total Deposits

National Share of Savings Deposits (%)

84.7 97.4

106.6116.7

131.4 129.9 136.5

55.8 61.6

63.2 67.2

73.0 71.9 73.2

Other

Payment

Transfer

Withdrawal/Inquiry

Avg ATM Daily Vol (000)

34.6%

32.8%33.4%33.7% _34.5%35.5%

34.9%

4 6 6 8 1,0 1,1 ,11 1,2 1,3 1,2 1,3

19.6 29.3 39.1 55.0 30.8 29.8 37.4 49.6 22.8% 30.6% 22.7% 29.2% 34.5% 34.1% 4 9 2 .1 6 0 7 .5 6 7 7 .0 8 5 3 .4 0 4 3 .4 1 0 0 .5 1 5 8 .9 2 3 0 .6 3 1 5 .4 2 9 3 .3 3 2 1 .8 16.2% 11.6%12.8% 15 3%

16.9%17.5%_16.0%17.2%18.5%18.0%17.3%

17.8%

17.9%17.6%17.3%

3 0092,955 3,165

2,7802,822

2,9763,335

Quarterly Call Center Trans. (000)

Quarterly SMS Trans. (000)

1 7 .9 6 2 2 .1 2 2 9 .5 9 4 0 .5 0 5 2 .0 0 4 5 .2 0 5 7 .6 0 8 1 .5 4 8 9 .6 1 8 5 .3 9 9 1 .1 1 9 5 .9 5 1 0 6 .4 5 9 9 .3 8 1 0 5 .5 0 11.0%11.7% 15.3% 1,0693,072 6 ,9 8 8 1 1 ,5 7 5 1 6 ,9 7 4 2 2 ,3 2 8 2 5 ,8 1 9 3 3 ,5 0 2 3 9 ,5 6 9 4 2 ,5 4 6 4 4 ,5 1 2 4 7 ,7 0 5

(17)

…through

enhanced

transaction

capabilities

Quarterly Transaction Volume (Mn)

150

ATM

95.5 97.1

100 _11,000

Debit Cards SMS Banking

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

115.0 122.9

141.9

125

Branch SMS Banking Internet Banking

77.1

87.792.7

80 8,828

10,006 9,950 8,059 9,000 10,000 g Internet Banking

88.8 99.8 110.1 115.0 100 57.7 64.7 70.1

60 6,642

7,629 7,202 7,565 7,8348,059 6,0406,219 7,000 8,000 67.8 70.0 77.9 75 35.5 40.7 49.1 40 5,024 5,752 4 355 4,793 5,480 , 5,000 6,000

35.1 36.2 36.6 38.5 42.1 40.6 41.4 _41.7 33 5 47.7 26.6

50 31.9

35.5

20

ATM

SMS Banking

Internet Banking _1,897

2,413 2,989

3,652 4,355

3,000 4,000

8.3 11.612.217.0

19.822.3 25.8

33.5

1 3 1 7 2 4 3.4 5.5

6.1 12.0

0 25

0.3 0.4 0.5 0.7 1.0 1.8

1.3 1.8 2.4

2 6 0.6 0.9 1.6 2.2

3.6 3.84.0 5.9 7.88.7

0

1,523 ,

358 469 564

705 849 988 1,165 1,239 1,253 0 1,000 2,000

(18)

…and

innovative

payment

solutions

Pre‐Paid Card Volume (000s)

350 1,200

Indomaret

Pre‐Paid Transaction Volume (000s) Cash Management Users

261.0 293.0 275 300 325 Indomaret 890.5 1,030.0 1,078.0 1,000 Indomaret e‐Toll Gaz

225.0

200 225

250 e_Gaz‐Toll

800 148.8 132.0 150.0 150 175 200 494.3 588.1606.0 520.5

600 _6,153 6,300

57 7 90.2 58 0 98.0 111.0 75 100

125 _379.5

286.0 206.0 400 2 414 4,066 38.9 57.7 29.3 35.7 58.0

14 7 14 7 14 7

34.0 35.0 36.0

39.3 0 25 50 103.1 98.0 173.0

2.3 1.5 1.2 30.5 1.0 2.7 3.6

0 200

745

2,414

16 14.7 14.7 14.7

0 A p r ‐ 0 9 May ‐ 0 9 Ju n ‐ 0 9 Ju l ‐ 0 9 A u g ‐ 0 9 Se p ‐ 0 9 O ct ‐ 0 9 N o v ‐ 0 9 D e c ‐ 0 9 Jan ‐ 1 0 Fe b ‐ 1 0 Mar ‐ 1 0 1 0 ‐ A p r Me i 1 0 Ju n 1 0 0 A p r ‐ 0 9 May ‐ 0 9 Ju n ‐ 0 9 Ju l ‐ 0 9 A u g ‐ 0 9 Se p ‐ 0 9 O ct ‐ 0 9 N o v ‐ 0 9 D e c ‐ 0 9 Jan ‐ 1 0 Fe b ‐ 1 0 Mar ‐ 1 0 A p r ‐ 1 0 Me i ‐ 1 0 Ju n ‐ 1

(19)

Diversifying

our

strength

in

Wholesale

lending…

Breakdown of Net Expansion in Corporate SBU Lending Q2 ’09 – Q2 ’10 (Total Rp14.85 tn)

4 775

Mi i Oil & G

%

Breakdown of Net Expansion in Commercial SBU Lending

Q2 ’09 – Q2 ’10 (Total Rp11.23 tn)

2 471 B S % 40 1% 1,783 2,643 3,489 4,775 Other Mfg‐F&B Plantations

Mining‐Oil & Gas _82.0%

40.3%

18.0%

25 5% 1,274

1,294 1,482 2,471

Trad‐Distr Mfg‐Chem Plantations

Bus Serv _40.1%

38.1% 37.4% 33.8% 1,030 1,156 1,185 ,

Bus Serv Agri‐oth Trad‐Ret

25.5%

482.1%

1343.9%

19.6% 737

1,082 1,269

,

Mfg‐P&P Mass Trans Mfg‐F&B

33.8% 52.2% 47.1% 48.2% 36 746 813 951 Trad oth Mfg‐RawM Comm

Mfg‐Metal _157.3%

11.2% 74.9% 451 497 570 646 Mining Oth Mfg‐RawM

Mfg‐oth _11.2%

143.0% 73.2% (275) (232) (193) 36

Mfg‐Text Trad‐Exp Trans‐oth

Trad‐oth _70.0%

‐22.5%

‐20.8%

‐47 4% 214

218 364 451

Utilities Trad‐oth Agri‐oth

Mining _43.5%

53.4%

7.3%

66 4%

Rp Billion

(460) (426) (305)

Mining‐oth Mfg‐Chem Trad‐Distr

47.4%

‐17.0%

‐6.4%

‐39.8%

Rp Billion (179)

(128)

123

Trans‐oth Trad‐Dom Soc Serv

66.4% 34.1% ‐41.2% ‐53.4% p (1,866) (4 ,0 0 0 ) (3 ,0 0 0 ) (2 ,0 0 0 ) (1 ,0 0 0 ) 0

1_,0

0 0 2 ,0 0 0 3 ,0 0 0 4 ,0 0 0

Mfg‐oth _‐_61.9% _(1,152)

(1 ,2 0 0 ) (9 0 0 ) (6 0 0 ) (3 0 0 ) 0

30₀

6 0 0 9 0 0 1 ,2 0 0 1 ,5 0 0 1 ,8 0 0

(20)

…into

Fee

‐

based

Income

Non‐Loan Related Fees &

Commissions H1 ‘09 Q1 ‘10 Q2 ‘10 H1 ‘10

H1 %

(Y o Y)

Q2 %

(Q o Q)

Breakdown of H1 2009 & 2010 Non‐Loan Related Fees & Commissions (Rp bn)

Commissions (Y‐o‐Y) (Q‐o‐Q)

Administration Fees 642 368 394 762 18.6% 7.2%

Opening L/Cs, Bank Guarantees &

250 145 127 272 8 7% (12 5%)

Capital Markets 250 145 127 272 8.7% (12.5%)

Subsidiaries 228 114 117 230 0.8% 2.7%

Transfers, Collections, Clearing &

114 58 62 120 4 8% 6 0%

Bank Reference 114 58 62 120 4.8% 6.0%

Credit Cards 250 169 160 329 31.6% (5.6%)

Mutual Funds & ORI 19 12 17 28 45.5% 44.4%

Others* 384 224 233 457 18.9% 4.2%

Total 1,888 1,089 1,109 2,197 16.4% 1.8%

Total Operating Income# _11,266 _6,133 _6,900 _13,032 _15.7% _12.5%

Non‐Loan Related Fees to

Operating Income** 16.8% 17.8% 16.1% 16.9% 0.6% (9.5%)

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

(21)

Building

our

high

yield

business

in

Micro

&

Small…

Micro Credits (Rp Bn)

23.7%

5 310

13.74%

Consumer Loans (Rp Bn) Small Business Credits

(Rp Bn)

Loan

Yields 12.9%

4

,8

3

9

6

,0

3

6

1,197

24.7%

1

8

,1

0

9

2

3

,4

1

9

5,310

29.32%

1

5

,4

9

6

1

9

,3

2

6

3,830

24.7%

9

Q2 2009 Growth Q2 2010

Disbursement Breakdown (H1 2010)

9

Q2 2009 Growth Q2 2010

Q2 2009 Growth Q1 2010

*Excluding Credit Cards

Disbursement Breakdown (H1 2010) Disbursement Breakdown (H1 2010)

1 394

1,013 ₆₇₆

1,182

1,394

5,717

85 261

520

1,972

3,067

2,465

2,989

3,855

82

Rural Banks Micro Unsecured Micro TOTAL Mortgage Home Equity

Loan

Payroll Loan Other Total

N

o

n

‐

P

ro

g

P

ro

g

ram

C

o

p

s

C

as

h

C

o

ll

T

O

T

A

(22)

…as

well

as

Consumer

lending,

which

rose

29.7%

Y

‐

o

‐

Y

on

Mortgages,

g g ,

Credit

Cards

and

Vehicles

Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type

Rp26.66 tn

3 , 2 ,2 2 ,5 6 5 2 ,9 1 8 22 500 25,000 27,500 Other Credit Cards Payroll Loans Home Equity Loans

Loan

Type

Growth

(%)

Y‐o‐Y Q‐o‐Q 4 4 ,7 4 ,9 8 5 2

, 2,2

2 ,2 5 2 ,4 5 2 2 ,7 5 4 2 ,9 8 9 2 ,9 7 3 2 3 9 956 1,1451,2791,353 1,493 1 ,7 5 8 2 9 5 17,500 20,000 22,500

Mortgages

Other*

95.39%

14.93%

Credit

Cards

32.08%

8.92%

3 3, 3,6

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

3 23

5 1 180 224 495 619 12,500 15,000

Payroll

Loans

21.62%

5.63%

Home Equity Loans

5 03%

1 79%

9 10

1 0 ,6 1 1 ,6 2 4

, 3,6

3 ,4 3 7 3 ,6 1 2 3 ,7 0 2 3 ,7 6 1 3 ,7 2 1 3 ,6 9 7 ,7 0 4 6 9 9 3 1 ,9 1 ,9 3 0 2 ,2 8 5 3 ,0 1 0 2 1 ,2 7 0 1 ,3 6 7 1 ,2 9 3 72 180 7,500

10,000

Home

Equity

Loans

5.03%

1.79%

Mortgages

31.91%

8.85%

283 1 ,5 2 2 3 ,0 5 0 3 ,6 1 0 5 ,3 8 2 6 ,3 9 3 7 ,1 9 9 7 ,7 1 7 8 ,0 5 2 8 ,3 7 6 8 ,8 1 4 9 ,1 9 3 0 ,0 1 7 6 8 1 2 6 328 2 ,8 5 2 1 3 1 6 6 6 1 ,8 0 2 9 2 1 8 1 5 21 0 2,500 5,000

Total

Consumer

29.65%

7.78%

20 283_Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 4 '0 6 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8 Q 1 '0 9 Q 2 '0 9 Q 3 '0 9 Q 4 '0 9 Q 1 '1 0 Q 2 '1 0

(23)

MTF:

Total

Financing

in

2010

increased

Rp bn

Total Booking and the Break Down for

Joint Financinng and Non JF Breakdown of Financing Program for 2010

1. EMPIRE

– Branch

Referral

Non JF JF New Car Used Car Motorcycle

1. EMPIRE

Branch

Referral

Program

2. COP

&

Fleet

with

Targeted

Corporate

&

Commercial

363

117 23 23 27

29

customers

3. Continue

to

build

new

relationships

with

top

10

84

113

249

274 284

251

275

116 98

95 97 92 17 21

23 27

Dealers

&

deepen

existing

relationship

4. Floor

financing

targeted

at

sed car dealerships

121 117 160

144

84

117 132

156 164 157

218

used

car

dealerships

5. Leverage

on

Bank

Mandiri’s

network

&

fixed

assets

128 134 139

190

250

Jan 10 Feb 10 Mar 10 Apr 10 Mei 10 Jun 10

128 134 ₁₁₃ 139

Jan

10

Feb

10

Mar

10

Apr

10

Mei

10

Jun

(24)

1,770k

Visa

&

Mastercards transacted

Rp3.24

tn

in

Q2

2010

Mandiri Visa & Mastercards and EOQ Receivables Total Card Quarterly Sales by Type of Transaction (Rp Bn)

1 4861,544

1,608 1,678 1,770 Receivables (Rp Bn) Cards (000s) 60 58 50 55 43 55 64 75 2600 2800 3000 Transfer Balance Cash Advance Retail 1 089 1,159 1,2261,273 1,331 1,409 1,486

63 63 59 54

59 19 39 52 2000 2200 2400 752 872 1,089 61 62 57 9 10 32 1400 1600 1800 338 651 81 68 18 8 11 800 1000 1200 5 6 7 .5 8 1 4 .9 1 ,2 7 0 .2 1 ,3 6 7 .4 1 ,2 9 2 .8 1 ,9 0 7 .5 1 ,9 2 5 .9 2 ,0 0 7 .7 2 ,1 1 2 .7 2 ,2 2 3 .2 2 ,2 5 1 .0 2 ,4 5 2 .2 2 ,7 5 3 .7 2 ,9 8 9 .3 2 ,9 7 3 .4 3 ,2 3 8 .7 226 338 5 3 5 5 2 1 5 3 2 6 0 6 6 0 0 8 3 6 1 ,5 1 4 1 ,4 4 3 1 ,6 6 8 1 ,9 0 4 1 ,9 1 4 1 ,8 9 1 2 ,1 6 3 2 ,5 5 2 2 ,6 7 6 2 ,4 9 7 2 ,8 4 8

62 61 57 81 56

24 16 10 18 8

200 400 600

22

5 9 2 4 8 5 9 7 7 2 0 2 7 3 4 7

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

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

(25)

Q2

NPLs

raised

to

Rp4.7

tn on

Rp0.9tn

down

grades

1 000

Non‐Performing Loan Movements (Rp tn) – Bank Only

g

Movement by Customer Segment (Rp Bn)

131.6

1,000

Cons

Micro/Small

Comm

0.89

0.10

0.54

265 9

750 Corp

4.60

0.17

0.89

0.05

4.74

265.9

89.6

500

367.9 _289.4

250

127.4 132.7

72.6 43.1

250

-127.4

26.9

55.0

0

UG to PL DG to NPL W/O

(26)

G

ro

ss

N

P

Ls

d

e

cl

in

e

d

to

2

.5

4

%

w

it

h

p

ro

vi

si

o

n

in

g

co

ve

ra

g

e

at

2

0

6

%

2 0 ,0 0 0 5 0 % N P L Mo ve m e n t ‐ C o n so lid a te d

g

C a te g o ry 2 Lo an s – B a n k O n ly 1 6 ,0 0 0 1 8 ,0 0 0 , 4 0 % C at 2 % 1 9 0 .4 % 2 1 9 .1 % 2 0 6 .0 % 1 2 ,0 0 0 1 4 ,0 0 0 3 5 .7

% 26

2 % 3 0 % 19 25.28% 1 4 6 .7 % 1 3 8 .9 % 1 3 6 .1 % 8 ,0 0 0 1 0 ,0 0 0 2 6 .2

% 24.8

% 1 5 5 % 2 0 % 9.80% 16.34% 1 2 9 .5 % 1 3 9 .1 % 1 2 8 .8 % 1 1 6 .0 % 4 ,0 0 0 6 ,0 0 0 9 .2 % 1 5 .0

% 9.4

% 1 2 .9 % 1 5 .5

% ₁1.9 % 11.5

% ₁0.0 % 9.2

% 1 0 .2 % 9 .7 % 9 .0 % 1 0 % 9.70% 7.30 8.60% 7.10 7.17 5. 7 0 .0 % 4 4 .4 % 4,033 15,350 12,655 16,202 10,983 8,334 12,912 16,966 15,148 14,058 13,451 13,502 15,412 16,332 15,895 18,148 17,506 17,417 17,479 0 2 ,0 0 0 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 % % 0% 7% 5.14% 4.74% 4.44% 4.73% 85% 4.78% 3.79% 2.79% 2.56% 2.54% 15.3% 0 .5 6 % 0 .5 5 % 4 4 .4 % Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

4 '99 4 '00 4 '01 4 '02 4 '03 4 '04 4 '05 4 '06 4 '07 1 '08 2 '08 3 '08 4 '08 1 '09 2 '09 3 '09 4 '09 1 '10 2 '10

2 ‐ Sp e ci al Me n ti o n Lo an s (Rp B n ) 2 4

4 '99 4 '00 4 '01 4 '02 4 '03 4 '04 4 '05 4 '06 4 '07 1 '08 2 '08 3 '08 4 '08 1 '09 2 '09 3 '09 4 '09 1 '10 2 '10

(27)

Cash

Provisioning

of

Total

Loans

5.4%

NPLs (Rp tn)

Q2

(Rp tn)

NPLs (%)

Amount of Cash Provisioning

Non‐Performing Loans by Segment

(Rp bn) Loans d

# of Provisioning ( b )

Corporate 1.42 0.08 1.60%

Commercial 1.71 0.15 3.15%

Small 0.54 (0.15) 2.75%

Outstanding Customers (Rp bn)

Individual 15,214 546 7,840

C ll ti 180 071 871 308 2 717

S a 0 5 (0 5) 5%

Micro 0.39 0.03 6.44%

Consumer 0.68 0.04 2.56%

Total 4 74 0 14 2 33%*

Collective 180,071 871,308 2,717

Total 195,285 871,854 10,557

Total 4.74 0.14 2.33%

• Bank Mandiri’s current cash provisioning to total

loans (Bank only) stands at 5.41%

Methodology for Impairment:

Bank Mandiri has established criteria for decrease in value based on Loan Segmentation:

* Excluding Restructuring Losses and loans to other banks.

a a d as estab s ed c te a o dec ease a ue based o oa Seg e tat o

Individual Impairment

1. Corporate and Commercial customer segments with objective evidence of decrease in value.

2. Outstanding loan balances of more than Rp5 billion for other segments which have objective evidence of decrease in value

3. Restructured loans for Corporate and Commercial customer segments

4. Restructured loans with outstanding balances of more than Rp5 billion for other segments which have objective evidence of

decrease in value.

Collective Impairment

1. All segments excluded from individual impairment

(28)

Q2

2010

annualized

net

downgrades

of

1.27%

on

loans

originating

since

2005

Total Loans originated since 2005

g

Net Upgrades (%)/Downgrades (%) # Q2 2010 Details

Loan Q1 ‘10

Balance Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

DG to NPL

UG to PL Background Balance

(Rp bn) 2008 2008 2008 2009 2009 2009 2009 2010 2010

NPL %

PL %

Corporate 67,737.6 0.10 0.11 0.48 1.05 1.15 ‐ 0.03 0.28 0.17 0.17 ‐

Commercial 41,759.9 0.14 0.21 1.05 0.78 0.03 0.21 0.04 0.51 0.27 0.37 0.10

Small/Micro 19,778.7 0.58 0.59 1.20 1.06 1.00 1.19 0.84 1.36 0.86 1.14 0.27

Consumer 23,320.6 0.13 0.22 0.13 0.49 0.27 0.30 0.11 0.40 0.33 0.47 0.14

Total 152,596.7 0.18 0.21 0.65 0.91 0.38 0.25 0.12 0.50 0.32 0.40 0.08

# %downgradesandupgrades are quarterly % figures

(29)

Progress

on

selected

debtors

as

of

30

June

2010



Total

outstanding

as

of

30

June

2010

was

Rp 1.3

trillion.



Industry :

Airline

.

G

d

Industry

:

Airline

.



IPO

is

scheduled

in

Q3– Q4

2010

Kick

‐

off

process

of

IPO



The

debtor

has

signed

cooperation

(non

‐

credit)

agreements

including

cash

management, corporate card and EDC installment.

Garuda

Indonesia

management,

corporate

card

and

EDC

installment.

Argo



Total

outstanding

to

this

debtor

as

of

30

June

2010

was

Rp 1.3

trillion.

(Col

2)

Argo

Manunggal

Group



Industry

:

Property,

Textile,

Steels



The

obligor

settled

loans

of

unsustainable

loan

of

Argo

Pantes and

Grand

Pintalan Textile

total

Rp 312

bn in

Q2/2010.



T t l

t t

di

t thi d bt

f 30 J

2010

R 1 6 t illi

Domba Mas

Group



Total

outstanding

to

this

debtor

as

of

30

June

2010

was

Rp 1.6

trillion.



Industry

:

oleo

chemical,

lens

optic

and

hotels



The

obligor

has

signed

a

Conditional

Sales

&

Purchase

Agreement

(CSPA)

with

i

Th

i

l

i

f Ol

Ch

i l f b i i

i

(30)

Strengthening

Risk

Management

&

Monitoring

System

y

Corporate

Customer

by

Rating

Summary

of

Risk

Management

Initiatives

• Wholesale Transaction: Optimize credit decision process by focusing on quantitative factors of analysis, redefining clear role of risk team , and aligning RM Organization into

High Risk (Rating C‐G)

Medium Risk (Rating BBB – B)

Credit

business expansion

• High Yield Business: Assign dedicated team, set up loan factory, enhanced business process (incl. tools,

monitoring & collection system, policy )

• Optimize capital by implementing ERM & VBA

Low Risk (Rating AAA – A)

15% 12% 11% 15% 15%

100%

• Development of risk measurement system for derivative & structured product (Summit) Optimize capital by implementing ERM & VBA

• Consolidate risk management of subsidiaries

34%

24% 21%

25% 24%

60% 80%

Market

• Implement Market Risk Internal Model • Intraday Limit Monitoring

• Enhance Policy & Procedure for Treasury & ALM • Enhance FTP (Fund Transfer Pricing) method • Develop liquidity stress test & safety level

64% 68% _60% _61%

40% %

Operational

• ORM implementation in all unit, incl. overseas offices & subsidiary

• Bring Op. Risk top issues into Management Develop liquidity stress test & safety level • Develop measurement of capital for IRBB

51%

64% _60% _61%

20%

28

g p p g

• Review Op. Risk on new procedures & new products

0%

(31)

Q2

Cost

to

Income

Ratio

at

38.4%

70.5%

83.3%

CIR* (%)

Annual Avg CIR (%) Q2 ‘09 Q2 ‘10

Q2 2010 

Q o Q Y o Y

Breakdown of Q2 2009 & 2010 Operating Expenses Quarterly Consolidated Operating Expenses & CIR*

70.5%

59.5%

g ( )

Q‐o‐Q Y‐o‐Y

Personnel Expenses

Base Salary 425,916 407,961 (0.60%) (4.22%) Other Allowances _{597 580} _{595 230} _{(3 72%)} _{(0 39%)}

28 2%

41.8%

47.2%

40.4% 42.8% 43.2%_39.0% 38.4%

40.4%

47.2%

40.07%

Other Allowances _597,580 _595,230 _(3.72%) _(0.39%) Post Empl. Benefits* 186,116 94,200 8.45% (49.39%) Training 32,266 81,798 228.39% 153.51% Subsidiaries _148,455 _195,344 _18.22% _31.58%

7

2

3 1 86

1 ,3 0 1 ,1 5

8 1,

1

,1

9

7

1,3₉

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

28.2% , ,

Total Personnel

Expenses 1,390,333 1,374,533 5.28% (1.14%) G & A Expenses

IT & Telecoms 171 774 198 555 16 87% 15 59%

9 5 6 4 9 3 2 7 3 7 7 3

1,2₄

1

6

9

09 ₁

,0

0

5

8

16

5 1 ,1 1 6 9 0

6 IT & Telecoms 171,774 198,555 16.87% 15.59% Occupancy Related 260,771 320,868 13.49% 23.05% Promo. & Sponsor. _168,747 _229,767 _77.83% _36.16% Transport & Travel _{67 342} _{83 625} _{16 02%} _{24 18%}

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

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

Transport & Travel _67,342 _83,625 _16.02% _24.18% Prof. Services 115,264 126,734 11.89% 9.95% Employee Related 100,139 130,928 (3.76%) 30.75% Subsidiaries 120 247 174 834 18 36% 45 40%

Q 4 '0 0 Q 4 '0 1 Q 4 '0 2 Q 4 '0 3 Q 4 '0 4 Q 4 '0 5 Q 4 '0 6 Q 4 '0 7 Q 1 '0 8 Q 2 '0 8 Q 3 '0 8 Q 4 '0 8 Q 1 '0 9 Q 2 '0 9 Q 3 '0 9 Q 4 '0 9 Q 1 '1 0 Q 2 '1 0 G&A Expenses (Rp bn) Personnel Expenses (Rp bn)

Subsidiaries 120,247 174,834 18.36% 45.40% Total G & A Expenses _1,004,284 _1,265,311 _20.40% _25.99%

(32)

Leveraging

cash

generator

to

accelerate

high

yield

growth

and

deposit

franchise

Rp Billion

Consumer Loans from Alliance Program

(10 top corporate clients)

Co‐Branding Prepaid Card Program

g

p

1 609 1,821

2,085 2,283 2,558

319

791 897

1,128 1,259 1,275

1,389 1,609

Q4 '06 Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 10

Total Payroll

Rp Billion

Corporate Card Holder from Alliance Program

4

,3

9

4

,7

5

6

4,30

5

,1

6

9

Rp Billion

14,612 16,495 23,660

3

,4

6

3

4

3

,5

0

2

2 007

3,625 7,272

12,108

Jan '10 Feb '10 Mar '10 Apr '10 May '10 Jun '10

1,616 1,620 1,796 1,869 2,007

Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10

(33)

Enhancing

synergies

&

values

from

subsidiaries

Investment Banking

Syariah Banking

Syariah Banking InsuranceInsurance NicheNiche BankingBanking MultiMulti‐‐FinanceFinance

Total Assets Rp26 39 tn

Bond Trading Volume Rp24 1 tn

Total Assets Rp6 90 tn

Total Loans Rp549 6 bn

Total Financing Rp1 698 bn

Bank Sinar Harapan Bali

Rp26.39 tn Rp24.1 tn Rp6.90 tn Rp549.6 bn Rp1,698 bn

Total Financing Rp19.87 tn

Equity & FI Underwriting Rp4.3 tn

Annual FYP Rp 1,001.87 bn

Net Interest Margin 10.70%

Net Interest Margin 5.77%

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

Rp23.33 tn

Equity Trading Volume Rp31.5 tn

Fee Contribution Rp98.67 bn

ROA 3.31%

ROA (Before Tax) 5.17%

ROE 24.42%

ROA 11.8%

ROE 81.%

ROE 14.59%

ROE (After Tax) 23.45%

• Remain the leader in syariah financing

• Expansion of business to fully utilize current capital b

• Provide end‐to‐end bank assurance business

• Enhance operating model • Improve risk

•Use Bank Mandiri’s network infrastructure

th h t I d i t

• Capital injection program over 3 years

• Cross‐sell syariah products to Mandiri customers

base

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

• Refocus business toward

• Continue to build cross‐ sell opportunities in various segments

• Bank assurance products complete our suite of

management systems and IT

• Improve productivity

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

customers • Refocus business toward higher fee income

(34)

H1

2010

operating

profit

increased

by

14.6%

from

H1

2009

on

higher

g

NII

&

fee

‐

based

H1

2010

H1

2009

3,552

Rp billion Rp billion

5,773

Up 14 6%

2,481

4,906

9 369

14.6%

9,369

7,148 8,660

6,235

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

32 Net Interest Income Fee‐Based Income Overhead Expenses &

Others

Pre‐provision Operating Profit Notes :

1. Fee based income excluding gain on sale & increasing value GB & securities

2. Overhead expenses + others excluding provisions Net Interest Income Fee‐Based Income Overhead Expenses &

Others

(35)

Strong

Revenue

Growth

Summary

P&L

H1 2009 H1 2010 Y‐o‐Y

Rp (Billions) % of Av.Assets* Rp (Billions) % of Av.Assets (%)

Interest Income _16,603 _9.6% _16,218 _8.3% _(2.3%)

Interest Expense (7,943) (4.6%) (6,848) (3.5%) (13.8%)

Net Interest Income 8,660 5.0% 9,369 4.8% 8.2%

Other Operating Income 2,481 1.4% 3,554 1.8% 43.2%

Gain from Increase in Value & Sale of Bonds 124 0.1% 111 0.1% (10.5%)

P i i N

Provisions, Net (1,974) (1.1%) (1,856) (1.0%) (6.0%)

Personnel Expenses (2,506) (1.4%) (2,680) (1.4%) 6.9%

G & A Expenses _(1,832) _(1.1%) _(2,316) _(1.2%) _26.4%

Other Operating Expenses** ₍₅₆₈₎ _(0.3%) ₍₇₇₇₎ _(0.4%) _36.8%

Profit from Operations 4,385 2.5% 5,404 2.8% 23.2%

N O ti I 115 0 1% 79 0 0% (31 3%)

Non Operating Income 115 0.1% 79 0.0% (31.3%)

Net Income Before Tax 4,500 2.6% 5,483 2.8% 21.8%

Net Income After Tax _2,927 1.7% 4,034 2.1% 37.8%

* % of Average Assets on an annualized basis

(36)

…supported

by

strong

capital,

ROE

continues

to expand

IDR bn

to

expand

Capital & RWA Movement Profit After Tax & ROE

26 2% RoE AT

1 9 5 2 1 4 .7 31.3% 27.7% CAR* 2 Q4 PAT 21.5% 26.2% 23.6% 22.8%

15.8%18.1% 22.1% 22.3% RoE ‐AT 1 7 2 .9 5 .8 26.4% 23.4% 25.3% 23.7% 25.3%

21 1% 819 1 1

775 1 1 ,3 9 0 2 ,5 3 6 Q4 PAT Q3 PAT Q2 PAT Q1 PAT _2.5% 10.0% 9 1 0 8 .9 1 1 5 .9 1 1 2 .2 1 3 4 .0 21.1%

15.7% _{15 3%} 1 1_, 2,031

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

645 799

8 9 1_,1

6 6 4 5 8 .1 7 2 .5 1 .9 9 15.3%

1 1 2,0

1

, 602

690 ,3 2 9 ₁ ,1 1 3 1 ,2 2 1 1 ,5 2 6 967 1 ,0 1 7 4 0 1 ,2 3 4 4 2 .6 1 3 .3 1 5 .4 1 7 .0 2 5 .5 2 7 .5 2 7 .4 2 8 .4 2 8

.3 27.2

3 0 .5 3 2 .9

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q2'

308 1 ,1 6 8 1 ,5 4 9 1 ,7 4 4

519 510

1 ,0 2 7 1 ,3 9 0 1 ,4 0 0 0 0 3 3 0 0

610₉₇ ₃₀₅372

(623)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q2 10 RWA (Rp tn) Total Capital (Rp tn)

(623)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

(37)

On

Track

to

Achieve

Our

2010

Targets

Gross Loan Growth

15-18%

Savings Deposits

>

Rp110 tn

Net Interest Margins

~

5.35%

Net Interest Margins

5.35%

Efficiency Ratio

~

45%

Gross NPLs

<

4 0%

Gross NPLs

<

4.0%

Provisioning Coverage

>

150%

New Distribution Infrastructure Targets:

# of New ATMs

2,500

# f N

EDC

25 000

# of New EDCs

25,000

(38)

O

i

Operating

Performance

Highlights

g

(39)

Corporate

Banking:

Contribution

Margin

declines

on

rate

increase

Rp bn Rp bn

Performance to Date: H1 2010 Contribution Margin (after PPAP) Strategies for 2010

1. Build up the industry‐based focus,

including investment in human resources

342 ₁₉₂

1,144 Q1 Q2

Q3 Q4

2 906

g

development, to support the

organization in achieving higher than market growth

2. Develop an awareness of the importance f ti i i th t ti l th i

3,910

300

1,927 28

1,899

692

2,906

2,483

of optimizing the potential growth in wholesale business transactions, fund preservation and collection of fee‐based income with a strengthened product team function (from product sales

1,477

1,077

537

1,138 659

7.5%

specialist to product development) while increasing service standards and product competitiveness

3. Foster alliances (collaboration) among business units in the effort to maximize

1,899

592

547 1,106

824

537 business units in the effort to maximize the borrower’s business potential, from downstream to upstream, with a variety of product and service offerings

according to the current needs

545 741 522

1,075 592

4. Increase the role of Syndicated & Structured Finance Group and Mandiri Securities in speeding up the

development of wholesale transaction banking by providing sophisticated and 2007 2008 2009 2010

(40)

Sekuritas’

financial

performance

has

been

impacted

p

by

y

the

global

g

economy

y

crisis

H1 ‘09 H1 ‘10 Y‐o‐Y 

(%)

(Rp Bn)

Revenues

170

165

(3%)

• Investment

Banking

69

34

(51%)

• Capital Market

Capital

Market

81

82

1%

• Treasury

3

0

(100%)

• Investment

Mgt

19

30

58%

Operating

Expenses

72

105

46%

Earnings

After

Tax

17

43

153%

Equity

Transactions

18,887

31,539

67%

SUN

Transactions

8,416

24,114

187%

Bonds Underwritten

875

4 296

391%

Bonds

Underwritten

875

4,296

391%

ROA

2.1%

8.2%

290%

ROE

5 2%

11 8%

127%

ROE

5.2%

11.8%

127%

(41)

Treasury,

FI

&

SAM

Rp bn Rp bn

1. New strategy for remittance business in Middle East South business in Middle East, South Korea and Taiwan.

2. Develop FX online dealing & web‐based FX quotation system in order to generate more FX in order to generate more FX volume from corporate clients. 3. Expand clients’ coverage for

foreign exchange, marketable securities and custody services

1,280

2,062

156%

securities and custody services business including foreign investors.

4. Set program and strategy to become major player in

1,382

become major player in banknotes business.

5. Early restructuring and intense monitoring.

803

6. Legal action on non‐cooperative debtors.

7. Enhance e‐procurement system. 8 Optimum utilization on e

8. Optimum utilization on e‐ auction.

(42)

Commercial

Banking:

Strong

revenues

from

both

Liabilities

&

Assets

Q1 Q2 Q3 Q4

Rp bn Rp bn

1. Supporting Bank Mandiri Wholesale Banking vision as an Integrated

405

330

2 521

Banking vision as an Integrated Wholesale Bank through

sophisticated, customized and completed services to can increase revenue especially through potential

4,449

1 964

482 2,521 ₄₀₇

2,114

3,026

p y g p

business like Wholesale Banking Deposit and Fee Income.

2. Increasing profit and market share through customer existing share of

714

1,166

1,964

2,114

_(3.4)%

wallet, increasing revenue from new customer and NPL control.

3. Provide best total business solution for customer by developing product

2,115

795

1,266 _1,176

564

714

and services including quality

bundling product, quick services and competitive price.

4. Effective Alliance in units based on

487 852

923 939

946

customer base in Commercial and Small segment, especially in

developing value chain business.

2007 2008* 2009* 2010**

* incl CM of Small Business & BSM**in June 2010 Decline due to PSAK50&55Implementation

(43)

Commercial Banking :

Stronger Platform & Improved Distribution Capability

Expanding

Scope

of

Distribution,

2010

Solid

Low

&

Stable

Cost

Funds

Source

of

R T **

Product Q2 ‘09

Q2

‘10 Growth

Demand

18 15 18 35 1 11% Rp Tn **

Sumatera Loans = Rp7.2 tn Funds = Rp4.4 tn

Kalimantan Loans = Rp2.9 tn Funds = Rp2.2 tn

Eastern Loans = Rp1.4 tn Funds = Rp0.7 tn

Deposit 18.15 18.35 1.11%

Rupiah 12.69 12.44 ‐2.00%

FX 5.45 5.91 8.39%

Saving

Deposit* 1.40 1.51 7.42%

Total Low

Cost Fund 19.55 19.86 1.57%

Cost Fund

Total

Funding 33.00 30.20 ‐8.49%

Java and Bali Loans = Rp41.1 tn Funds = Rp22.9 tn

CBC = 20 Unit Floor = 22 Unit TSC = 11 Unit TSD = 14 Unit

Low Cost Fund Ratio = 69.18% Funding from Java & Bali =84.55% of total fundingg

(44)

Strong

growth

from

Bank

Syariah

Mandiri

13.6% _13.5% 13 0%

Net Interest Margin & Cost of Funds

Financial Performance (Rp bn)

FY ’06 FY ‘07 FY ’08 FY ’09 H1 ’10

12.3%12.4%

13.0%

12.4% _12.3% 12.7%

12.0% 12.1% YoA

Financing 7,415 10,305 13,278 _16,063 _19,871

Deposits 8,219 11,106 14,899 _19,338 _23,333

Assets 9,555 12,888 17,066 22,037 26,385

EAT 65.48 114.64 196.42 290.94 197,598

Ratios:

ROA 1.10% 1.54% 1.83% 2.23% 2.22%

ROE 10 23% 15 94% 21 34% 21 40% 24 42%

6.2% 5.9%

Syariah Financing (Rp tn)

ROE 10.23% 15.94% 21.34% 21.40% 24.42%

Net NPF 4.64% 3.43% 2.37% 1.34% 0.88%

6

.8 6 6_. 6 6 ₆ ₆ 6_. ₆ ₆

5.7%

5.4%5.4%5.4%5.3%5.3%5.7% 6. %

5.8%5.6% 4.7%

4.9%

19.87

Financing

90.2%91.1%91.1%89.2%99.1%_89.1%86.9%

87.0%

87.9%83.1%83.9%85.2%

FDR

CoF

8

% 5_.6

%

6

.3

% 7%

6

.3

%

6

.4

%

6

.3

% 5.6

%

5

.6

%

6

.1

% .6%

6

.2

%

6

.2

%

10.3111.15

12.7313.77 13.25 13.43 14.23

14.9416.06 17.65

FDR

NIM

2005Q4 '06Q4 '07Q1 '08Q2 '08Q3 '08Q4 '08Q1 '09Q2 '09Q3 '09Q4 '09Q1 '10Q2'10

7.41

Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2'10

(45)

Micro

&

Retail

Banking:

Rapidly

growing

our

high

margin

business

Performance to Date: H1 2010 Contribution Margin (after PPAP)

Rp bn Rp bn

Strategies for 2010

1. Leverage our strength in

Q4 Q3 Q2

1,390

3,995

g g

Corporate and large

Commercial customers to

quickly build high margin

business

1,069

722 Q1

2 073

2,426

2. Continue to improve our

payment infrastructure

3. Expand our distribution with

a focus on high margin

3,152

1,319 ₄₄₉

318

(32 2%)

2,073

2,204

business

4. Improve our sales culture

and productivity of existing

network

740

880

855

583

572 (32.2%)

1,527 183

1,344

5. Cross sell to grow our fee

based income business

1,344

574 727

1,126

761

488

2007 2008* 2009 * 2010*

(46)

Consumer

Finance:

Significant

growth

in

spread

and

fee

income

Performance to Date, H1 2010 Contribution Margin (after PPAP)

Rp bn

Rp bn Rp bn

288

283

Q1 Q2

Q3 Q4

1,509

1,176 1,181

251

489

931

930

455 413

324

639

53%

831

931

355

455

161 133

79

158

324

412

639

143 150 174 252

476

90 170

200 100

79

44

NII Fees Overhead Operating Profit

Provisions Profit After PPAP

Axis Title

(47)

S

i

M

i l

(48)

Key

Quarterly

Balance

Sheet

Items

&

Financial

Ratios

IDR billion / % H1 ‘09 FY ‘09 H1 ‘10 Y‐o‐Y  (%)

Gross Loans 181,611 198,547 217,996 20.03%

Government Bonds 88 243 89 133 83 536 (5 33%)

Government Bonds 88,243 89,133 83,536 (5.33%)

Total Assets 358,897 394,617 402,084 12.03%

Customer Deposits 287,055 319,550 326,578 13.77%

T l E i

Total Equity 31,439 35,109 36,508 16.12%

RoA ‐before tax (p.a.) 2.54% 2.96% 2.75%

RoE – after tax (p.a.) 18.70% 22.07% 22.33%

Cost to Income(1) _38.94% _40.18% _38.66%

NIM (p.a.) 5.35% 5.22% 5.18%

LDR 62.20% 61.36% 66.33%

Gross NPL / Total Loans 4.78% 2.79% 2.54%

Provisions / NPLs 136.13% 200.45% 205.97%

Tier 1 CAR(2) _12.62% _12.50% _11.85%

Total CAR(2) _14.10% _15.55% _14.58%

Total CAR incl. Market Risk 14.02% 15.43% 14.50%

EPS (Rp) 139.92 341.72 192.34 37.56%

46

S ( p) 139.92 341.72 192.34 37.56%

Book Value/Share (Rp) 1,503 1,677 1,741 15.83%

(1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains

(49)

T

o

tal

A

ss

e

ts

g

re

w

1

2

.0

%

Y

‐

o

‐

Y

to

R

p

4

0

2

.1

tn

106 110 4 0 0 In t. fr o m B o n d s In t. fr o m Lo an s 21 91. 7 6 67. 95.7 84.1 89.0 89.8 6.9 0.6 3 2 0 3 6 0 7 5 4

% 74

1 % 4 4 13 1 149 162.8 174.5 175.2 181.6 188.3 198.5 201.9 18.0 27.0 33.4 60.5 36.1 50.6 60.7 64.5 57.6 55.1 54.0 59.2 56.1 59.2 61.2 1 75.5 66.7 4 2 4 0 2 8 0 7 5 .4

% 74

.1 % 6 0 .6 % 6 3 .6 % 6 8 .0 %6 8 .3

% 67

.3 % 7 6 .0 % (Rp tn) 44.0 43.0 48.3 65.4 75.9 94.4 106.9 105.1 107.8 108.8 117.7 114.3 116.3 121.7 38.5 135.5 9.6 8 5 1 6 0 2 0 0 4 7 .1 % 3 4 8 % 5 0 .0 % 4 6 .9 % 5 0 .1 % 5 2 .2 % 5 6 .8 % 5 8 .8 %5 9 .1 % 5 7 .2 % 6 3 .6 % Tot al Ass ets 9 8 0 1 2 0 4 0 .9 % 4 1 .0 % 3 4 .8 % 3 1 .0 %3 2 .3 %3 2 .4

% 29

.3

%2

9

.3

% 25

.4

% 22

.4

% 19

.6

%2

0

.5

% 17

.7 % 1 9 .0 %1 9 .0 % 3 4 .1 % 4 0 .6 % 177.4 176.9 153.5 148.8 122.9 93.1 92.1 92.2 92.3 91.0 90.6 90.6 89.5 90.8 89.5 88.6 88.4 88.5 88.3 88.4 88.2 88.4 89.1 86.8 93.5 0 4 0 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2