100322 Q42009AnalystsMeetingv2

(1)

k

(

) bk

PT

Bank

Mandiri

(Persero)

Tbk

FY 2009

FY

2009

Results Presentation

(2)

Share

Information

Description

Per 31 December 2009 No. of

Investor % No. of shares % Investor

DOMESTIC

1. Government of RI 1 0.005% 14,000,000,000 66.76% 2. Retail 11,041 53.27% 194,898,289 0.93% 3. Employees 8,394 40.50% 125,478,548 0.60% 4. Cooperatives 5 0.02% 130,000 0.00% 5. Foundations 9 0.04% 9,415,500 0.04% 6. Pension Funds 137 0.66% 188,342,000 0.90% 7. Insurance 41 0.20% 279,256,500 1.33%

k

8. Banks 1 0.00% 91,000 0.00%

9. Corporations 139 0.67% 298,551,365 1.42% 10. Financial Institutions ‐ 0.00% ‐ 0.00% 11. Mutual Funds 123 0.59% 617,191,500 2.94%

Total 19,891 95.97% 15,713,354,702 74.93% INTERNATIONAL

1. Retail 74 0.36% 6,398,500 0.03%

2. Institutional 761 3.67% 5,250,363,603 25.04%

Total 835 4 03% 5 256 762 103 25 07%

from: IPO Jan 1 2009

Total 835 4.03% 5,256,762,103 25.07% TOTAL 20,726 100.00% 20,970,116,805 100.00%

(3)

Bank

Mandiri

Presentation

Contents

Results Overview Page #



2009 Financial Highlights 2



SBU Performance 3‐4



5‐Year Transformation Improvements 5



Balance Sheet Overview 6



Loan Growth & LDR 7‐8



Net Interest Margins 9



Strategy Overview 10‐11



Deposit Franchise Development 12‐15



Wholesaleo esa e e d g a d ees Lending and Fees 166‐17



High‐Yield Lending Activities 18‐21



NPL Movement, Asset Quality & Provisioning 22‐25



New NPL Formation and NPL Restructuring Progress 26‐27



Enhancing Risk Management 28



Overhead Expense Details 29



Leveraging SBU Alliances & Subsidiaries 30‐32



Operating Profit & Summary P&LOperating Profit & Summary P&L 3333 34‐34



CAR, ROE, PAT 35



2010 Guidance 36

Operating Performance Highlights 37‐45

(4)

Key

Financial

Highlights

Bank Mandiri’s Full Year 2009 Performance continued to demonstrate

marked improvements in several key indicators:

p

y

FY

‘08

FY

‘09

%

Loans

Rp174.5

tn

Rp198.5

tn

13.8%

Net

NPL Ratio

1.09%

0.42%

(61.5%)

Gross NPL Ratio 4.73% 2.79% (41.0%)

Low

Cost

Funds

Ratio

56.7%

58.4%

2.9%

[Low Cost Funds (Rp)] Rp164.0 tn Rp186.5 tn 13.7%

NIM

5.45%

5.22%

(4.2%)

Efficiency

Ratio

42.3%

40.2%

(4.9%)

f

b

(5)

Maintaining

momentum

for

growth

Y‐o‐Y



Y‐o‐Y



Loans by SBU*

(Rp Tn)

Deposits by Product – Bank Only

(Rp Tn)

14.90 280 300 320

FX Time Rp Time

FX Demand Rp Demand

FX Savings Rp Savings

17 10 5 07

5.38

160 180

Micro Small Cons

Comm Int'l Corp

 (30.2%)  22.9% 15 4% 15.6% 146.5tn 169.4tn

Total Total 273.6tn 299.7tn 9.6%

95 69 97 90 101.52

108.51 15.93 21.35 16.16 18.15 21.35 220 240 260

280 FX Savings Rp Savings

19.27 19.66 18.74

21.65 23.59 14.82 14.10

13.42 16.27 17.10 4.38 4.55 4.84

5.07 120 140 13.4% 15.4% 22.5% 51 82

9.78 15.09 _19.51 17.52 15.09

18.04 93.20 80.47 73.43 95.69 91.94 97.90 15.65 12.56 140 160 180 200 4 48

41.56 40.64 41.88

43.59 49.06 12 78 14.23 8.86 9.91 13.08 1.73 1.94 2.20 2.68 80 100 19.5% 0 0% 18.0% 0 9% 4.12

4.70 7.38 _8.15 8.32 7.38

9.66

30.12

33.61

50.43 51.82 _42.99 45.36 43.65

51.82 11.39 9.07 60 80 100 120

62 04 64 12 65 84 68.80 69.82 0.91 2.14

2.82

4.44 4.41 4.40 4.17 4.48

25.85 24.36 28.90 31.46 10.66 11.08 12.78 7.56 40 60 0.0% 12 5% 0.9% 30.8% 45.17 57.61

81.54 82.23 _77.24 82.79 87.29 96.79

3.50 4.12 0 20 40 60

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

29.94 36.12 34.67 44.84

62.04 64.12 65.84 68.80 0.95

0 20

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

17.7% 12.5%

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

(6)

Balanced

Earnings

from

all

Business

Units

22.5% 3 514

2,432

Corporate

Net Interest Income

NII (Rp bn) % of Total

Alliance Strategy Focus

22.1%

24.2%

29.2%

7.7%

4,646 3,514

834

2,612

Treasury & Int'l Commercial #

2007

Building Future Growth Engine

(Consumer& Micro/Retail) CM = Rp4,662 billion

Leveraging Our Cash Generator

(Corporate& Treasury) CM = Rp5,289 billion

4.2%

35.9%

32.1%

9.6%

5,107 671

1 003

3,876

Micro & Retail * Treasury & Int l

2009

Fee Income

Fees (Rp bn) % of Total

9.6%

12.3% 1,955

1,003

Consumer Finance

12.8% 12.0%

12.9%

13.5% 707

631

402 400

Commercial #

Corporate ₂₀₀₇

2009

20.0%

19.0% 47.9%

48 7% 2 549

994

1,491 622

Micro & Retail * Treasury & Int'l

Strengthen Emerging Business

(Commercial Banking) CM = Rp4,449 billion

48.7%

6.4%

6.8% 356

2,549

199

Consumer Finance

(7)

Transformation

drove

broad

improvements

No Description 2005 2006 2007 2008 2009 CAGR

2005-2009

Growth/

%

Consolidated Rp Billion

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

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

10.6% 10.1%

16.8% 13.8%

3. Customer Deposits 206,289 205,708 247,355 289,112 319,550 11.6% 10.5%

4. Gross NPLs 25.20% 16.34% 7.17% 4.73% 2.79%

5. Net NPLs 15.34% 5.92% 1.51% 1.09% 0.42%

(42.3%) (41.0%)

(59.3%) (61.5%)

6. LDR 51.72% 57.20% 54.29% 59.16% 61.36% 4.4% 3.7%

7. Cost Efficiency Ratio 55.57% 48.86% 46.72% 42.26% 40.18%

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

(7.8%) (4.9%)

85 6% 34 7%

(8)

Strong

and

liquid

balance

sheet

Assets

Amount

%

of

Assets

Liabilities

Amount

%

of

Liab.

(Rp Bn, Bank Only)

Cash

8,398

2.27%

Current

Account

69,863

18.87%

SBI &

BI

Placement

(net)

45,330

12.24%

Savings

106,450

28.75%

Placement

w/other

banks

(net)

25,321

6.84%

Time

Deposits

(Rp)

108,506

29.30%

Marketable

Securities

(

(net)

)

11,003

,

2.97%

Time

Deposits

p

(Fx)

14,904

,

4.02%

Government

Bonds

87,985

23.76%

Total

Deposits

299,723

80.94%

Loans

(Gross)

179,688

48.52%

Securities

Issued

623

0.17%

Provisions

(11,595)

(3.13%)

Deposits

from

other

banks

10,052

2.71%

Other

Advances

(net)

4,304

1.16%

Borrowings

3,634

0.98%

Investments

6,819

1.84%

Other

Interest

bearing

liabilities

6,217

1,68%

Other

Assets

13,059

3.53%

Non

Interest

bearing

liabilities

14,954

4.04%

Equity

35 109

9 48%

Equity

35,109

9.48%

(9)

LDR of

61.4%

reflecting

strong

liquidity…

65.0% 63 2% 62 8%

Loans (Rp tn)

LDR (%) _{68 7}

76.478.8 79.7 82.0 82.7 Corporate

Commercial S ll

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

42.5%

53.7% 57.2% 56.4% 54.3%

62.2% % 59.2% 63.2% 62.2% 62.8% 61.4%

LDR (%)

40 2 42.3 44.7 53.6 50.5 59.7 55.4 61.1 68.7

41 243.8 42.6 43.6 45.3 50.6 Small Micro Consumer 26.3% 35.4% 42.5% _40.2 38.2 22.2 31.4 35.7

32.6 32.5 36.4 35.5

39.141.2

10 7 11 1 11 7 14.3 15.8

17.5 18.7 19.319.7 20.6

21.7 23.6

43.0 48.3 65.4 75.9 94.4 106.9 117.7 114.3 116.3 121.7 138.5 135.5 149.6 162.8 174.5 175.2 181.6 188.3 198.5

Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 '

7.6 10.2 10.0

13.713.1 13.3 13.815.1 14.4 15.8 16.6 17.4

1.7 1.9 2.1 2.7 2.9 3.5 4.0 4.4 4.6 4.8 5.1 5.4 1.5 3.7

8.5 10.7 11.1 11.7

Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' 30.5%

00 01 02 03 04 05 06 07 07 07 07 08 08 08 08 09 09 09 09 '02 '03 '04 '05 '06 '07 '07 '07 '07 '08 '08 '08 '08 '09 '09 '09 '09

By Segment (Bank only)

Loans (Rp tn)

Y‐O‐Y Growth (%)

% of Portfolio

Corporate 82.74 8.29% 46.05%

3 7%5.5% 21.4%

15.7% 13.8%

Commercial 50.56 15.41% 28.14%

Small 17.42 14.97% 9.69%

Micro 5.38 22.97% 2.99%

7

1.4% 3.7% QoQ Growth (%)

YoY Growth (%)

Consumer 23.60 22.46% 13.13%

(10)

Rp72.5tn

in

loans

disbursed

in

2009

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

4 95

4.53

9.45

72.45

16.75

27.77

5 03

16.53

4.95

159.01

72.45

5.03

2.22

179.69

72.45

159.01

36.99

Corporate Commercial Small Micro Cons Fin Total

(11)

Q4

NIM of

5.3%

with

significant

drop

in

COF

18.9% 18.3% 17 6%

20%

Yield on Assets

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

14.1%

13.3%

12.0%

11.1%

13.2% _12.9% _12.6% 12.5% 17.6% 14.0% 10.8% _10.3% 8 5% 14.0% 17.6% 13.1% 11 7% 10% 15% 13.0% 13.0%

10.7%11.0% _{10 5%10.7%} 10.8%10.8%10.8%

Cost of Funds _IDR

8.2% _7.7% 8.0% 8.5%

6.7% 7.4% 10.4% 8.2% 8.3% 10.9% 7.4% 6.5% 11.1% 11.7% 5.4% 6.9% 4.6% _4.0% 5.8% _5.3% 4.7% 5% 10% 9.5% 8.9% 10.7% 9.3% 10.1%10.5%10.7% 9.9% 9.4%9.4% 15% 0%

Avg Loan Yield Avg Bond Yield Avg 1‐Mo. SBI Avg COF

NIM 6.3% 4 8% 7.3% 6.4% 5.3% 5.5% 4 9% 6.5% 7.6% _7.3% 6.6%

5 8% 6.5% 5 8%6.4% 9.5% 10% NIM 4.8% 4.5% 4.3% 3.8% 4.2% 4.9% 4.8% 4.3% FX

5.1% 5.8% 5.8%6.4%

6.7%

1.4% 1.8%

5.3%

5.3% _4.9%

2 6% 0 3%0 2% 3.8% 4.0% 3.4% 3.5% 2.7% 2.1%_1.5% 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%

2.6% 0.3%0.2% Q4 '00 Q4 '01 Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q4 '00 Q4 '01 Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09

(12)

Committed

to

Improving

Shareholder

Value

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

rates

of

growth

Leverage on cash generator to

accelerate growth in higher yield

business

(13)

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

U di k infrastr ct re(b h IT ti i k PMS) t bl diff ti t d t i

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

(14)

Q4

Deposits

rise

9.6%

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 (%)

Rp Time Deposits FX Time Deposits

31.4%

44 5% 45 3%

54.2% 58.6%

61.5% 59.2% _{57.8% 57.5%} 58.8%

Low‐Cost Deposits (%)

9.5% 13.9%

11.4%

9 3%9.5% 13.1% 8 5% 11.9% 10.4% 9.3% 10.9% 10% 15% Rp TD 1 Mo. SBIs 21.4 16 18.1 16.5 14.9 260 280 300 23.1% 32.9% 44.5% 45.3% 6 1% 6.9% 5.3% 4.8% 4.7% 4 1% 8.4% 6.4% 9.9% 8.1%

7.4% 7.1%_6.9%

9.3% _8.7% 8.1% 7.2% 8.5% 7.4% 9.3% 8.8% 8.3% 8.2% 9.1% 7.4% 6.6% 6.5% 5% 10% 18 0 73.4 95.7 91.9 78.2 95.7 108.5 23.4 _20.

6 17_. 11

15.7 12.6

13.9 12.1 13.7

15.9 .2

180 200 220

240 6.1%

3.7% 3.7% 3.5%

3.0% 2.8% 2.6% 2.6% 2.5%

3.8%4.2%

3.4% 3.5% 3.3% 4.1%

3.5% 3.6% 3.6% 3.3%

2.8% 2.5% 2.7%2.6% 0%

5%

4 7 7 4 8 2 8.3 8.7 9.7

3 3 33 35.

50.4 51.8 _43.0 45.4 43.7

51.8

11 9 11 4

9.1 10.214.6 11.2

9.8 15.1_19.517.515.1 18.0

9

7

87.8

106.9 100.7 80.5 66.5

93.2 80.5 72.9

70.0 69.1

16.5

21.5 6 .3 1.6

80 100 120 140

160 0%

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

FX DD FX TD

14.3 18.0 22.1 29.6 40.6 52.0 45.2 57.6 57.2 62.5 65.7 81.5 82.2 77.2 82.8 87.3 96.8

3.5

4.1 4.2 4.9 4.7

4.7 7.4 8.2 8.3

14.1

31.1 31.2 24.8

28.8 28.0 30.1

3.6 31.0 3.1 4

9.1 11.9 11.4

7 .1 0 20 40 60 80 2.4% 0.8% 0.5%

2.1% 2.2% 2.0%_{1.7% 1.9%}_{2.0% 1.8%}

1.1% 0.9% 0.9%_0.6% 2.6%

1.7% 1.1%

(15)

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 (%)

84.70 97.39

106.55 116.69 131.44 55.80 61.63

63.20 67.16 72.95 Other Payment Transfer Withdrawal/Inquiry Avg ATM Daily Vol (000) 30.6% 29 2% 34.6%

32.8% 33.4%33.7% 34.5% 35.5%

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

19.6 29.3 39.07 55.00 30.81 29.79 37.37 49.59 16 2% 22.8% 22.7% 29.2%

16 9% 17.5% 17.2%18.5% 18.0%17.3%17.8% 17.9% 17.6%

4

92.1 607.5 677.0 853.4 43.40 100.5 158.9 230.6 315.4

11.0% 11.7% 16.2%

11.6%12.8%

15.3%

16.9% _16.0%17.2% %17.8%

3,009 2,955 3,165 2,780 2,822 Quarterly Call Center Trans. (000) Quarterly SMS Trans. (000)

17.96 22.12 29.59 40.50 52.00 45.20 57.60 81.54 89.61 85.39 91.11 95.95 106.45

1,0693,072

6,988 11,575 16,974 22,328 25,819 33,502 39,569 42,546

(16)

…through

enhanced

transaction

capabilities

Quarterly Transaction Volume (Mn)

142.03 150 ATM 95.53 100 10 006

11,000 _Debit Cards

SMS Banking

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

114.98 122.88 132.26 125 Branch SMS Banking Internet Banking 77.10 87.72

80 8,828

10,006 9,950 9,000 10,000 SMS Banking Internet Banking 88.75 99.83110.13 100 49 11 57.66 64.68 70.10 60 6,642 7,629 7,202 7,5657,666 5 820 7,000 8,000 67.7669.97 77.89 75 31.87 35.54 40.71 49.11 40 5,024 5,752 4,355 4,793 5,480 5,820 5,000 6,000

35.10 36.24 36.5538.51 42.11

40.59

41.39 38.1738.62

33 50 39.5742.55 50 20 ATM SMS Banking Internet Banking 1,897 2,413 2,989 3,652 3,000 4,000 8.33 11.5712.24 16.9719.77 22.3325.82 33.50

0.84 1.31 1.71 2.39

3.37 5.556.08 11.96

16.52

0 25

1 02 1 81 1.28

1 77 2.09 0.56 0.88 1.60 2.20 3.61 3.81

4.04 5.89 7.09

0

1,523 ,

358 469 564

705 849 988 1,165 1,214 0 1,000 2,000 0 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09

0.28 0.36 0.55 0.71 1.02 1.81 1.77

(17)

…and

innovative

payment

solutions

Pre‐Paid Card Volume (000s)

165.6

175 700 688.2

Indomaret

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

150

Indomaret

507.7

582.4

600

Indomaret e‐Toll Gaz

112.8

99.5

100

125 e‐Toll

Gaz

428.7

507.7

400 500

69.9

79.3

75 100

339.2

300 400

6,153

30.0

49.2

30.7

40.2

50

120.7

105 5

211.6 207.7

200

2 414

4,066

9.5

6.4

25.0

14.7 14.7 14.7 14.7 14.7

34.3

0 25

40.3

90.3 105.5 82.4

3.1 2.7 2.1 1.1 1.7 8.8

0 100

745

2,414

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(18)

Diversifying

our

strength

in

Wholesale

lending…

Breakdown of Net Expansion in Corporate SBU Lending Q4 ’08 – Q4 ’09 (Total Rp6.33 tn)

3 140

A i

% 40 87%

Breakdown of Net Expansion in Commercial SBU Lending Q4 ’08 – Q4 ’09 (Total Rp6.75 tn)

1 724

T d Di t

% 60 24% 1,770 2,061 2,176 3,140

Mining‐Oil & Gas

Mfg‐F&B

Telecoms

Agri _40.87%

29.00% 14.69%

32.51% 1,093

1,100 1,410 1,724

Other Trans

Mfg‐F&B

Trad‐Distr 60.24%

66.81% 44.80% 14.35% 904 1,072 1,268 ,

Bus Serv

Mfg‐Chem

Constr

g _32.51%

35.19% 15.90%

17.70% 463

472 1,068

,

Mfg‐RawM

Mining‐Coal

Plantations 28.33% 204.58% 79.98% (169) 275 342 492 Trad Exp

Trad‐Ret

Other

Mfg‐RawM _360.56%

7.00% 43.91%

(14 44%) 261

279 367 420

Mfg Oth

Agri Equip

Real Estate

Mfg‐P&P 29.21%

173.05% 616.04% 2 52% (564) (427) (177) (169)

Mining‐Coal

Mfg‐Text

Trad‐Dom

Trad‐Exp _(14.44%)

(32.85%) (13.14%)

(39.81%) 178

215 252 261

Gas

Mining‐Oil & Gas

Trad‐Oth

Mfg‐Oth 2.52%

7.78% 40.67% 181.70% Rp Billion (940) (615) (592)

Mfg‐P&P

Trad‐Distr

Mining‐Metal Ore

( )

(85.57%) (33.20%) (26.27%)

Rp Billion (931)

(412) (166)

Trad‐Dom

Leasing Electricity _(47.97%) (63.51%) (78.31%) p (3,684)

(4,000) (3,000) (2,000) (1,000) 0 1,000

2,000 3,000 4,000

Mfg‐Oth _(45.29%) _(1,043)

(1,200) (900) (600) (300) 0 300

(19)

…into

Fee

‐

based

Income

Non‐Loan Related Fees & Commissions 2008 Q3 ‘09 Q4 ‘09 2009 Q4 % (Q o Q)

FY %

(Y o Y)

Breakdown of Q4 2008 & 2009 Non‐Loan Related Fees & Commissions (Rp bn)

(Q‐o‐Q) (Y‐o‐Y)

Administration Fees 1,111.03 355.32 361.21 1,358.63 1.7% 22.3%

Opening L/Cs, Bank Guarantees & Capital

464.92 128.78 140.70 519.36 9.3% 11.7%

Markets 464.92 128.78 140.70 519.36 9.3% 11.7%

Subsidiaries 477.13 114.93 235.00 578.32 104.5% 21.2%

Transfers, Collections, Clearing & Bank

216 95 57 49 58 19 229 75 1 2% 5 9%

Reference 216.95 57.49 58.19 229.75 1.2% 5.9%

Credit Cards 378.20 166.24 184.54 601.11 11.0% 58.9%

Mutual Funds & ORI 55.39 14.42 33.83 67.57 134.7% 22.0%

Others* 719.64 235.53 336.80 956.50 43.0% 32.9%

Total 3,423.25 1,072.70 1,350.28 4,311.24 25.9% 25.9%

Total Operating Income# _19,885.03 _5,480.50 _6,274.75 _23,021.02 _14.5% _15.8%

Non‐Loan Related Fees to Operating

Income** 17.22% 19.57% 21.52% 18.73% 9.9% 8.8%

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

** Non‐Loan related fees & commissions/(Total Operating Income ‐Non‐recurring interest income)

(20)

Building

our

high

yield

business

in

Micro

&

Small…

Micro Credits

(Rp Bn)

22.8% 14.2%

Consumer Loans

(Rp Bn)

Small Business Credits

(Rp Bn) Loan

Yields 13.7%

4,376

5,381

1,005

23.0%

17,04

4

20,604

3,560

20.9%

14,815 17,100

2,285

15.4%

Q4 2008 Growth Q4 2009

Disbursement Breakdown (2009)

4

Q4 2008 Growth Q4 2009*

Q4 2008 Growth Q4 2009

*Excluding Credit Cards

0

Disbursement Breakdown (2009) Disbursement Breakdown (2009)

1,037

796

702

4,365

4,741 1,046

2,420

7,788

240

796

6,365

376

4,741

3,285

4,627

376

Rural Banks Micro Unsecured Micro TOTAL Mortgage Home Equity

Loan

Payroll Loan Other Total

Non

‐

Prog

Program Coops

Cash

Coll

(21)

…as

well

as

Consumer

lending,

which

rose

22.5%

Y

‐

o

‐

Y

on

Mortgages

g g

and

Credit

Cards

Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type

Rp23.60 tn

2,9 8 1,493 1,758 2,295 20,000 22,000 24,000 Other

Credit Cards Payroll Loans Home Equity Loans

Loan

Type

Growth

(%)

Y‐o‐Y Q‐o‐Q

3 4,0

4,2

5

4,541

1

2,008

2,113 2,223 2,251

2,452 2,754 8 9 495 619 956 1,1451,2791,353 1,493 16,000 18,000

Mortgages

Other*

79.49%

30.54%

Credit

Cards

34.46%

8.56%

3 3,7

3,7 2 3,69 7 3,704 3,699 3,753 3,01 0 3,192 3,658

3,999 3,993 3,983 099 52

1,3 1,29 3 1,908 ,926 180 224 495 10,000 12,000 14,000

Payroll

Loans

13.72%

6.79%

Home Equity Loans

0 85%

1 46%

8 8 8, 9,1

10,0 4,1 3 3,66 6 3,437 3,612 3

,702 761 21 7

1,92 1 1,930 2,285 0 1,270 67 3 72 6,000 8,000 ,

Home

Equity

Loans

0.85%

1.46%

Mortgages

24.41%

8.97%

283

1,522

3,050 3,610

5,382 6,393

7,199 7,717 8,052 8,376 814 193 17

328 2,852 3 1 6 1,802 1 815 21 0 2,000 4,000

Total

Consumer

22.46%

8.96%

283_Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4

'09 * Auto & Motorcycle Loans channeled or executed through finance

companies = Rp4.83 tn in our Commercial Loan Portfolio

(22)

Rp1.9

tn in

New

Financing

through

Mandiri

Tunas

Finance

Rp bn

Value of Financing Disbursed Breakdown of Financing Program for 2010

1. EMPIRE

– Branch

Referral

Finance

389

1. EMPIRE

Branch

Referral

Program

2. COP

&

Fleet

with

Targeted

Corporate

&

Commercial

New Car ; 38 0%

362

customers

3. Continue

to

build

new

relationships

with

top

10

38.0%

1689

1957

527

Dealers

&

deepen

existing

relationship

4. Floor

financing

targeted

at

sed car dealerships

Used Car; 52.0% M'cycle;

10.0%

1689

679

used

car

dealerships

5. Leverage

on

Bank

Mandiri’s

network

&

fixed

assets

(23)

1,608k

Visa

&

Mastercards transacted

Rp2.79

tn

in

Q4

2009

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

1 409

1,4861,544 1,608

Receivables (Rp Bn)

Cards (000s) 60

58 43 55 2400 2600 2800

Transfer Balance Cash Advance Retail 1,089 1,159 1,2261,273 1,331 1,409

63 63 59 54

32

59 19 39 52

1800 2000 2200

752

872 61 62

57 9 10 32 1200 1400 1600 338 651 81 56 68

24 18 8

11 600 800 1000 1200 567. 5 814. 9 1,270. 2 1,367. 4 1,292. 8 1,907. 5 1,925. 9 2,007. 7 2,112. 7 2,223. 2 2,251. 0 2,452. 2 2,753. 7 2,989. 3 226 338 53 5 52 1 53 2 60 6 60 0 83 6 1,51 4 1,44 3 1,66 8 1,90 4 1,91 4 1,89 1 2,16 3 2,55 2 2,67 6

62 61 57 81 56

24 16 10

200 400 600

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

Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09

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

(24)

Q4

NPLs fell

to

Rp5.4

tn on

upgrades

and

repayments

1 200

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

p y

Movement by Customer Segment (Rp Bn)

136.8

1,000 1,200

Cons

Micro/Small

C

7.00

1 11

319 2 64.1

80.3

800

Comm

Corp

1.11

0.48

0.51

0.80

0.33

5.39

_319.2

142.1

600

589 2

327.5

109.9

400

589.2

114 5 242.0

200

114.5

0

UG to PL DG to NPL W/O

(25)

FY

NPLs declined

on

upgrades

and

repayments

2,400

Cons

/

Non‐Performing Loan Movements (Rp bn) – Bank Only Movement by Customer Segment (Rp Bn)

10.4

35.4 _264.7

2,000

Micro/Small

Comm

Corp

8.53

2.17

1.89

1.29

484.7

388.9

265.5

1,600

1.89

2.22

969.5 504.0

1,200

0.65

5.39

1,638.8

731.1

800

391.7

600.4

400

0

UG to PL DG to NPL W/O

(26)

Gross

NPLs declined

to

2.79%

with

provisioning

coverage

improving

at

200.5%

20,000 50%

NPL Movement ‐Consolidated

70.9

% 264.4%

g

p

g

Category 2 Loans – Bank Only

16,000 18,000

,

40%

Cat 2 %

%

190.4% 151.1% 175.8% 200.5%

212 6%

12,000 14,000

35.7%

26 2%

30%

1

9

25.28%

146.7%

109.0%

138.9%

212.6%

8,000 10,000

26.2% 24.8%

15 5%

20%

9

.80%

16.34%

129.5%

139.1% 128.8%

86.7%

100.9%

4,000 6,000

9.2%

15.0%

9.4% 12.9%

15.5%

11.9%_11.5%

10.0%_9.2%9.7%_{10.2%9.7%10.6%9.7%}

10%

9.70%

7.30

8.60%

7.1

0

7.1

7 4.

70.0%

44.4%

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

0 2,000

Q

4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 4Q Q1 Q2 Q3 4Q Q1 Q2 Q3 Q4

0% % 0_% 7% 5.14% _4.74%

4.44% 4.73% 74% 4.78% _3.79% _2.79%

15.3%

0.56% 0.42%

44.4%

Q

4 Q4 Q4 Q4 4Q Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 1Q Q2 Q3 Q4 4

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

2 ‐Special Mention Loans (Rp Bn)

4

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

(27)

Cash

Provisioning

remains

high

for

both

NPLs and

annualized

net

downgrades

of

0.48%

on

loans

originating

since

2005

Total Loans originated since 2005

g

Net Upgrades (%)/Downgrades (%)# _Q4 ₂₀₀₉ _Details

Loan Q4 ‘09

Balance Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

DG to NPL

UG to PL

Background Balance

(Rp bn) 2007 2008 2008 2008 2008 2009 2009 2009 2009

NPL %

PL %

Corporate 61,504.1 ‐ ‐ 0.10 0.11 0.48 1.05 1.15 ‐ 0.03 0.03 ‐

Commercial 39,178.1 0.02 0.33 0.14 0.21 1.05 0.78 0.03 0.21 0.04 0.10 0.06

Small/Micro 18,698.3 0.59 0.92 0.58 0.59 1.20 1.06 1.00 1.19 0.84 1.05 0.21

Consumer 22,072.3 0.01 0.42 0.13 0.22 0.13 0.49 0.27 0.30 0.11 0.44 0.55

Total 141,452.8 0.08 0.28 0.18 0.21 0.65 0.91 0.38 0.25 0.12 0.25 0.13

(29)

Progress

on

selected

debtors

as

of

31

Dec

2009



The

borrower’s

total

outstanding

exposure

as

at

31

December

2009

was

Rp1,313

billion.

G

d



Industry

:

air

transportation/

airline

.



A

portion

of

the

MCB (5%

or

Rp50.94

billion)

had

been

paid,

while

the

remaining

portion

(95%

or

Rp967.87

billion)

was

converted

into

shares

of

PT

Garuda

Indonesia

Garuda

Indonesia

on

Dec.

30,

2009

.

The

shares

will

be

realized

at

the

IPO

of

Garuda

Indonesia,

which

is

scheduled

in

Q3/2010.



The

overseas

syndicated

loans

(GIE Sulawesi)

with

BM

portion

of

approximately

USD 37

illi

ill b

h d l d Th l

t

d f

USD

37

million

will

be

rescheduled.

The

loan

agreement

are

now

ready

for

signing.



The

local

syndicated

loan

had

been

fully

paid

on

October

2009

(total

amount

of

Rp24 billion BM’s portion Rp1 billion)

Rp24

billion,

BM s

portion

Rp1

billion).



The

borrower’s

total

outstanding

exposure

as

at

31

December

2009

was

Rp467

Cisadane

Raya

Chemiclas

billion.



Industry

:

Oleo

Chemical.



Loan

had

been

restructured

November

2009.

(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%

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%

60% 80%

Market

• _Implement _Market _Risk _Internal _Model

• _Enhance _Policy _& _Procedure _for _Treasury _& _ALM • _Enhance _FTP _(Fund _Transfer _Pricing) _method • _Develop _liquidity _stress _test _& _safety _level • _{Develop measurement of capital for IRBB}

64% 68% _60%

40% %

Operational

• _{ORM implementation} _in _all _unit, _incl. _overseas _offices

& subsidiary

• _Bring _Op. _Risk _top _issues _into _ORC

Develop measurement of capital for IRBB

51%

64% _60%

20%

g p p

• _Review _Op. _Risk _on _new _procedures _& _new _products

0%

(31)

Q4

Cost

to

Income

Ratio

peaks

at

43.2%

on

rising

G&A expenses

70.5%

83.3%

CIR* (%)

Annual Avg CIR (%)

p

Q4 ‘09 FY ‘09 

Q o Q Y o Y

Breakdown of Q4 and FY 2009 Operating Expenses Quarterly Consolidated Operating Expenses & CIR*

70.5%

59.5%

g ( )

Q‐o‐Q Y‐o‐Y

Personnel Expenses

Base Salary 373,440 1,531,919 (1.54%) 7.33%

Other Allowances _{537 478} _{2 080 955} _{12 51%} _{2 28%}

1

28 2%

41.8%

47.2%

40.4% 42.8% 43.2%

40.4%

47.2%

40.07%

Other Allowances _537,478 _2,080,955 _12.51% _2.28% Post Empl. Benefits* 104,710 385,451 329.41% (7.67%)

Training 106,488 206,733 195.60% (4.42%)

Subsidiaries _206,222 _648,544 _20.25% _38.55%

723

1,₂

869 1,309 1 1,158 1,1 6 1,197 1, 1,390 1,019 1 ,328

28.2% , ,

Total Personnel

Expenses 1,328,338 4,853,601 30.37% 6.35% G & A Expenses

IT & Telecoms 188 037 702 441 6 23% (11 29%)

95

7

649

327

377

2 41 1 ,005 6 5 116

IT & Telecoms 188,037 702,441 6.23% (11.29%)

Occupancy Related 386,192 1,168,475 31.60% 15.91%

Promo. & Sponsor. _198,827 _641,865 _9.47% _16.06% Transport & Travel _{100 482} _{309 182} _{36 52%} _{2 29%}

336 753 775 749 1,034 842 1,016 993 769 1,034 916 1,148 827 1,004 1,110 1,384 7

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

Transport & Travel _100,482 _309,182 _36.52% _2.29% Prof. Services 148,804 462,384 40.94% 16.61%

Employee Related 155,521 450,407 34.55% 42.59%

Subsidiaries 205 860 590 139 26 49% 19 47%

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

G&A Expenses (Rp bn) Personnel Expenses (Rp bn)

Subsidiaries 205,860 590,139 26.49% 19.47%

Total G & A Expenses _1,383,723 _4,324,893 _24.70% _12.00%

(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

1 259 1 275 1,389

1,609

1,821

2,085

319

791 897

1,128 1,259 1,275

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

Payroll Accounts from Alliance Program (2009)

Rp Billion

Corporate Card Holder from Alliance Program (10 top corporate clients)

181

197,6

8

204,22

4

207,44

6

219,735

Rp Billion

12,108

14,612 (10 top corporate clients)

1

4 23 42

73,

2

125,293

,315

8

1

4 6

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

3,625

7,272

4

,493

3

,605

2

,081

2

29

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1,616 1,620 1,796 ,869 ,

(33)

Enhancing

synergies

&

values

from

subsidiaries

Investment Banking Investment Banking Syariah Banking

Syariah Banking InsuranceInsurance Niche BankingNiche Banking Multi‐FinanceMulti‐Finance

Total Assets Rp22 0 tn

Bond Trading Volume Rp21 4 tn

Total Assets Rp6 00 tn

Total Loans Rp470 5 bn

Total Financing Rp2 375 bn Bank Sinar

Harapan Bali

Rp22.0 tn Rp21.4 tn Rp6.00 tn Rp470.5 bn Rp2,375 bn

Total Financing Rp16.1 tn

Equity & FI Underwriting Rp4.06 tn

Annual FYP Rp 1,033.0 bn

Net Interest Margin* 12.37%

Net Interest Margin 7.31%

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

Rp19.3 tn

Equity Trading Volume Rp44.2 tn

Fee Contribution Rp146.0 bn

ROA 3.68%

ROA (Before Tax) 4.13% ROE

21.4%

ROA 6.7%

ROE 63.9%

ROE 10.48%

ROE (After Tax) 19.37%

• 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

•Build on Bank Mandiri’s strength in deposit

th i • 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

gathering

•Cross‐sell COP to

employees of Corporate &

Commercial customers

•Referrals from branches customers • Refocus business toward

higher fee income

complete our suite of consumer offerings

(34)

Optimizing

synergy

with

AXA

Mandiri

Total Assets (Rp M) Premium Income (Rp M)

6 002

4,192

3,574

6,002

674.3

572 5

1033

465

1,112

1,714

121.7

269

433.7

572.5

Net Profit (Rp M) ROE (%)

2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009

80.4%

46.2% 60.3% 55.2% 63.9% 208

2004 2005 2006 2007 2008 2009

49 58

121

151

‐60.9%

‐13

(35)

Full

Year

2009

operating

profit

up

16.0%

from

Full

Year

2008

Full

Year

2009

Full

Year

2008

5,484

Rp billion Rp billion

10,590 4,653

9,379

17 358

Up 16.0%

17,358

12,252 15,285

10,558

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

(36)

Strong

Revenue

Growth

Summary

P&L

FY 2008 FY 2009 Y‐o‐Y

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

Interest Income _27,336 _8.5% _32,599 _8.9% _19.3%

Interest Expense _(12,052) _(3.9%) _(15,241) _(4.2%) _26.5%

Net Interest Income _{15 284} _{4 6%} _{17 358} _{4 7%} _{13 6%}

Net Interest Income _15,284 _4.6% _17,358 _4.7% _13.6% Other Operating Income 4,653 1.5% 5,484 1.5% 17.9%

Gain from Increase in Value & Sale of Bonds 1 0.0% 181 0.1% NA

Provisions, Net _(2,595) _(0.8%) _(1,996) _(0.5%) _(23.1%)

Personnel Expenses _(4,564) _(1.4%) _(4,854) _(1.3%) _6.4%

G & A Expenses (3 862) (1 2%) (4 325) (1 2%) 12 0%

G & A Expenses (3,862) (1.2%) (4,325) (1.2%) 12.0%

Other Operating Expenses** (952) (0.2%) (1,412) (0.4%) 48.0%

Profit from Operations _7,910 _2.5% _10,434 _2.8% _31.9%

Non Operating Income 158 0.0% 390 0.1% 146.8%

Net Income Before Tax _8,068 _2.5% _10,824 _3.0% _34.2%

Net Income After Tax _{5 313} _{1 7%} _{7 155} _{2 0%} _{34 7%}

Net Income After Tax _5,313 _1.7% _7,155 _2.0% _34.7%

* % of Average Assets on an annualized basis

(37)

…supported

by

strong

capital,

ROE

continues

to expand

IDR bn

to

expand

Capital & RWA Movement Profit After Tax & ROE

R E AT

2

Q4 PAT

31.3%

27.7%

CAR

21.5%

26.2%

23.6%22.8%

15.8%18.1% 22.1% RoE ‐AT

1 1

819

775

1

1,390

2

,536

Q4 PAT Q3 PAT Q2 PAT Q1 PAT

195.8

26.4%

23.4%

25.3%

23.7%

25.3%

21 1%

2.5%

10.0%

1

,

1

1,528

1

,408

1,0

4

1,345

1

,693

645 799

8 9 1_,166

112.2134.0

172.9

21.1%

15.7%_{15 6%}

1 1

1, 602

690

,329

_1,113

1,221

1,526

967

1

,017

4

0

1,234

58 1 72.5

91.9

108.9

115.9 15.6%

308

1,168

1

,549

1

,744

519 510

1,027

1,390

1,400

300

610 ₉₇ ₃₀₅372

(623)

42.6

58.1

13.3 15.4 17.0 25.5 27.5 27.4 28.4 28.3 27.2 30.5

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (623)

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

(38)

Targets

for

2010...

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

(39)

O

i

Operating

Performance

(40)

Corporate Banking:

Contribution

Margin

declines on rate increase

Rp bn Rp bn

Performance to Date: FY 2009 Contribution Margin (after PPAP) Strategies for 2009

1. Refine organization to be more i d t f d & t th

632 240

3,906 4

3,910 1,144

Q1 Q2

Q3 Q4

2 906

industry focused ,& strengthen funding sales team to gain rapid business growth

2. Strengthen Corporate Banking

3,910

1,109

692

2,906

57.5%

2,483

Floor in Surabaya and Medan to broaden and deepen our

geographic coverage

3 Strengthen our Syndication &

2,405

1,077

537

1,138 659

3. Strengthen our Syndication & Structured Finance team, as well as our synergy with

Mandiri Sekuritas, to provide a broader variety and more

592

547 1,106

537 broader variety and more

sophisticated product range, and accelerate transactional banking development in Corporate Banking

545 741 522

592 Corporate Banking

4. Broaden relationships to offer products and services to our corporate clients’ suppliers,

l d t

2007 2008 2009

(41)

Mandiri

Sekuritas’

financial

performance

has

been

impacted

p

by

y

the

global

g

economy

y

crisis

FY ’08 (Audited)

FY ’09 (Audited)

Y‐o‐Y 

(%)

(Rp Bn)

Revenues

430

353

(18%)

• Investment

Banking

152

128

(16%)

• Capital Market

Capital

Market

188

177

(6%)

• Treasury

18

3

(82%)

• Investment

Mgt

72

45

(38)%

Operating

Expenses

256

183

(28%)

Earnings

After

Tax

0.96

46

4,715%

Equity

Transactions

42,568

41,199

(3%)

SUN

Transactions

31,010

21,379

(31%)

Bonds Underwritten

7 133

4 062

(43%)

Bonds

Underwritten

7,133

4,062

(43%)

ROA

0.6%

2.5%

317%

ROE

0 1%

6 7%

5 054%

(42)

Treasury

&

International

Banking

Q1 Q2 Q3 Q4

Rp bn Rp bn

1. Maximize profit from FX volatility

2 I t if lli f F

1,040

276

53

Q Q Q Q

1,280

2. Intensify cross-selling of Forex

products and services to our corporate and large commercial clients.

3 Strengthen local network presence

1,382

1,435 53

1,382

316

377

263

72%

3. Strengthen local network presence

and distribution through RTMs and Sub RTMs, and support Regional CEOs

4. Develop effective marketing

307

316

118

803

p g

strategy to boost up transaction volume

5. Seek opportunities to enhance

portfolio yield

671

946

348

322

6. Sustain overseas business continuity

by focusing on Indonesia related customer and sharpening business strategy.

266 ₂₁₀

455

153 7. Reinforce overseas competitiveness

through Mandiri International Remittance

8. Provide comprehensive personnel

d i i d l

NII Fees Overhead Operating

Profit

Provisions Profit After

PPAP 2007 2008 2009

(43)

Commercial Banking:

Strong

revenues

from

both

Liabilities

&

Assets

Q1 Q2 Q3 Q4

Rp bn Rp bn

1. To widen asset margin especially

Q Q Q Q

707 ₅₅₁

4 802 353

in Small Commercial Loan and Medium Commercial Loan Segment (Limit under Rp100 Billion)

4,449

1,193 4,802 353

4,449

47%

3,026

2. To increase sustainability of loan portfolio by expanding “KMK” fixed product.

3 Financing the subcontractors of

714

1,166 3,453

2,114

3. Financing the subcontractors of large corporates, particularly in infrastructure, mining, and telecom

4 T it h lli t t i

795

1,266

564

714 _{4. To pitch alliance strategic} partner targets from the 10 biggest corporate customers and 17 biggest commercial

t th t h

487 852 923

946

customers that have

significantly business impact. 5. To develop bundling products by

utilizing push product and

2007 2008* 2009*

* incl CM of Small Business & BSM

(44)

Commercial Banking :

Stronger Platform & Improved Distribution Capability

Expanding

Scope

of

Distribution,

2009

Solid

Low

&

Stable

Cost

Funds

Source

of

R T **

Product 2008 2009 Growth

Demand

Deposit 20.98 19.92 (5.1%)

Rp Tn **

Sumatera Loans = Rp6.8 tn Funds = Rp4.5 tn

Kalimantan Loans = Rp2.8 tn Funds = Rp2.6 tn

Eastern Loans = Rp1.3 tn Funds = Rp0.8 tn

Rupiah 15.09 13.62 (9.7%)

FX 5.89 6.30 7.0%

S i

Saving

Deposit* 2.12 1.57 (25.9%)

Total Low

Cost Fund 23.10 21.49 (7.0%)

Total

Funding 35.22 32.69 (7.2%)

Java and Bali Loans = Rp38.2 tn Funds = Rp24.8 tn

CBC = 19 Unit

Floor = 19 Unit TSC = 11 Unit TSD = 8 Unit

Low Cost Fund Ratio = 65.74% Funding from Java & Bali =75.71% of total fundingg

(45)

Strong

growth

from

Bank

Syariah Mandiri

13.6% 13.5%

Net Interest Margin & Cost of Funds Financial Performance (Rp bn)

FY ’06 FY ‘07 FY ’08 FY ’09

12.3%12.4%

13.0%

12.4% _12.3% 12.7% YoA

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

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

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

EAT 65.48 114.64 196.42 290.94

Ratios:

ROA 1.10% 1.54% 1.83% 2.23%

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

6 2% Syariah Financing (Rp tn)

ROE 10.23% 15.94% 21.34% 21.40%

Net NPF 4.64% 3.43% 2.37% 1.34%

6.

8 6 6. 6 6 6 6 6.

5.7%

5.4% 5.4% 5.4% 5.3% 5.3% 5.7%

6.2% 5.9%

5.8% 5.6%

Financing

90.2% 92.8% 91.1% 91.1% 89.2% 99.1% 89.1%

86.9%87.0% 87.9% 83.1%

FDR

CoF

8

% 5.6% 6.3% 7% 6.3% 6.4% 6.3% 5.6% 5.6% 6.1% .6%

9.30 10.31

11.15 12.73

13.77 13.25 13.43 14.23 14.94

16.06

FDR

NIM

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

7.41

(46)

Micro & Retail Banking:

Rapidly

growing

our

high

margin

business

Performance to Date: FY 2009 Contribution Margin (after PPAP)

Rp bn Rp bn

Strategies for 2009

Q4 Q3

Q2 _{(21 1%)}

2,549 3,995 1. Leverage our strength in

Corporate and large

Commercial customers to i kl b ild hi h i 1,069

722 Q1

(21.1%)

4 349

4,339

quickly build high margin business

2. Continue to improve our t i f t t

3,152

1,319 ₄₄₉

318

4,349

164

2,204

payment infrastructure

3. Expand our distribution with a focus on high margin

b i

740

880

855 572

3,316 164

3,152 business

4. Improve our sales culture and productivity of existing

t k

574 727

1,126

758

network

5. Cross sell to grow our fee based income business

2007 2008* 2009 *

(47)

Consumer Finance:

Significant

growth

in

spread

and

fee

income

Performance to Date, FY 2009 Contribution Margin (after PPAP)

Rp bn

Rp bn Rp bn

356

547

Q1 Q2

Q3 Q4

1,509

1,955

1,764 ₂₅₅

489

82%

1,509

413

324

639

831

355

161 133

79

158

324

412

639

143 150 174 252

90 170

200 100

79

NII Fees Overhead Operating

Profit

Provisions Profit After PPAP

(48)

S

i

M

i l

(49)

Key

Quarterly

Balance

Sheet

Items

&

Financial

Ratios

IDR billion / % Q4 ‘08 Q3 ‘09 Q4 ‘09 Y‐o‐Y  (%)

Gross Loans 174,498 188,282 198,547 13.78%

Government Bonds 88 259 88 363 89 133 0 99%

Government Bonds 88,259 88,363 89,133 0.99%

Total Assets 358,439 366,494 394,617 10.09%

Customer Deposits 289,112 295,497 319,550 10.53%

T l E i 30 514 33 103 35 109 %

Total Equity 30,514 33,103 35,109 15.06%

RoA‐before tax (p.a.) 2.52% 2.65% 2.96%

RoE – after tax (p.a.) 18.06% 19.40% 22.07%

Cost to Income(1) _42.26% _39.04% _40.18%

NIM (p.a.) 5.45% 5.21% 5.22%

LDR 59.16% 62.77% 61.36%

Gross NPL / Total Loans 4.73% 3.79% 2.79%

Provisions / NPLs 127.14% 155.25% 200.45%

Tier 1 CAR(2) _12.83% _12.81% _12.50%

Total CAR(2) _15.72% _14.20% _15.55%

Total CAR incl. Market Risk 15.66% 14.13% 15.43%

EPS (Rp)( p) 254.5 220.71 341.72 34.27%

Book Value/Share (Rp) 1,462 1,582 1,677 14.71%

(50)

Total

Assets

grew

10.1%

Y

‐

o

‐

Y

to

Rp394.6

tn

106 400 In t. fr om Bonds In t. fr om Loans 91. 7 6 67. 95.7 84.1 89.0 89.8 6.9 320 360 4 4 13 1 149 162.8 174.5 175.2 181.6 188.3 198.5 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 4 240 280 75.4% 74.1% 60.6% 68.0% 68.3% (Rpt n) 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 5 160 200 47.1% 50.0% 46.9% 50.1% 52.2% 56.8% 58.8% 59.1% 57.2% 63.6% Tota l Assets 9 80 120 40.9% 41.0% 34.8% 31.0% 32.3% 32.4% 29.3% 29.3% 25.4% 22.4% 19.6% 19.0% 19.0% 34.1% 40.6% 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 0 40 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

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

(51)

Additional

Factors



Aggregate

of

Rp32.610

tn (US$

3.471

bn)

in

written

‐

off

loans

as

of

end

‐

December

2009,

with

significant

recoveries

on

‐

going:



2001:

Rp2.0

tn



2002:

Rp1.1

tn



2003:

Rp1.2

tn

Written

‐

off

Loans

Written

‐

off

Loans



2004:

Rp1.08

tn



2005:

Rp0.818

tn (US$

83.2

mn)



2006:

Rp3.408

tn (US$

378.5

mn)*



2007:

Rp1.531

tn (US$

249.3

mn)



2008:

Rp2.309

tn (US$

211.8

mn)



9Mo

’09:

Rp1.489

tn (US$

146.4

mn)



Q4

‘09:

Rp0.775

tn (US$

82.5

mn)

*

including the write‐back of RGM loans totaling Rp2.336 tn

Loan

Collateral

Undervalued

Loan

Collateral

Undervalued



Collateral

values

included

for

provisioning

purposes

on

only

11

accounts,

carried at approximately 30.0% of appraised value.

Undervalued

(52)

Summary

Quarterly

Balance

Sheet:

Q4

‘08

–‘09

Q4 ‘08 Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09 Y‐o‐Y

Rp (tn) Rp (tn) Rp