09 07 29 Q22009AnalystsMeeting

(1)

k

(

) bk

PT

Bank

Mandiri

(Persero)

Tbk

Q2 2009

Q2

2009

Results Presentation

(2)

Share

Information

No. of

Investors % No. of shares % Per 30 June 2009

Description

3 500 4,000

Investors DOMESTIC

1. Government of RI 1 0.00% 14,000,000,000 66.80% 2. Retail 11,494 53.55% 274,599,808 1.31% 3. Employees 8,868 41.31% 191,307,923 0.91% 4. Cooperatives 4 0.02% 80,000 0.00% 2 500

3,000 3,500

BMRI JCI

5. Foundations 11 0.05% 11,077,000 0.05% 6. Pension Funds 149 0.69% 235,132,500 1.12% 7. Insurance Cos. 41 0.19% 274,074,000 1.31% 8. Banks 1 0.00% 181,000 0.00% 9. Corporations 146 0.68% 325,650,437 1.55% 10 Financial Institutions 1 0 00% 2 050 000 0 01% 1 500

2,000 2,500

10. Financial Institutions 1 0.00% 2,050,000 0.01% 11. Mutual Funds 118 0.55% 786,467,000 3.75%

Total 20,834 97.06% 16,100,619,668 76.82% INTERNATIONAL

1. Retail 84 0.39% 3,421,500 0.02% 2. Institutional 548 2.55% 4,854,812,931 23.16% 500

1,000 1,500

, , ,

Total 632 2.94% 4,858,234,431 23.18% 100.00% TOTAL 21,466 100.00% 20,958,854,099

0 500 11 ‐ Ju l ‐ 0 11 ‐ Oc t ‐ 11 ‐ Ja n ‐ 11 ‐ Ap r ‐ 11 ‐ Ju l ‐ 0 11 ‐ Oc t ‐ 11 ‐ Ja n ‐ 11 ‐ Ap r ‐ 11 ‐ Ju l ‐ 0 11 ‐ Oc t ‐ 11 ‐ Ja n ‐ 11 ‐ Ap r ‐ 11 ‐ Ju l ‐ 0 11 ‐ Oc t ‐ 11 ‐ Ja n ‐ 11 ‐ Ap r ‐ 11 ‐ Ju l ‐ 0 11 ‐ Oc t ‐ 11 ‐ Ja n ‐ 11 ‐ Ap r ‐ 11 ‐ Ju l ‐ 0 11 ‐ Oc t ‐ 11 ‐ Ja n ‐ 11 ‐ Ap r ‐

from: IPO Jan 1 2009

0

3 ‐03 ‐04 ‐04 04 ‐04 ‐05 ‐05 05 ‐05 ‐06 ‐06 06 ‐06 ‐07 ‐07 07 ‐07 ‐08 ‐08 08 ‐08 ‐09 ‐09

85 BMRI +370.37% +56.79%

(3)

Bank

Mandiri

Presentation

Contents

Results Overview Page #



H1 2009 Financial Highlights 2



H1 2009 Growth Momentum and Balance Sheet 3‐4



Loan Growth & LDR 5‐7



Strategy Overview 8‐9



Deposit Franchise Development 10‐14



Net Interest Margins 15



High‐Yield Lending Activities 16‐18



Wholesale Lending, Fees and FX Activities 19‐21



NPL Movement, Asset Quality & Provisioning o e e , sse Qua y o s o g 22‐24



New NPL Formation and NPL Restructuring Progress 25‐27



Enhancing Risk Management 28



Overhead Expense Details 29



Leveraging SBU Alliances & Subsidiaries 30‐32



Operating Profit & Summary P&L 33‐34



CAR, ROE, PAT 35

Operating Performance Highlights 36‐44

Operating Performance Highlights 36 44

Supporting Materials 45‐84

(4)

Key

Financial

Highlights

Bank Mandiri’s H1 2009 Performance continued to demonstrate marked

improvements in several key indicators:

p

y

H1

‘08

H1

‘09



%

Loans

Rp149.6

tn

Rp181.6

tn

21.4%

Net

NPL Ratio

0.97%

1.00%

3.1%

Gross NPL Ratio 4.74% 4.78% 0.8%

Low

Cost

Funds

Ratio

64.0%

56.7%

(11.5%)

[Low Cost Funds (Rp)] Rp151.2 tn Rp162.7 tn 7.6%

NIM

5.25%

5.35%

1.9%

Efficiency

Ratio

44.4%

38.9%

(12.3%)

f

b

2

(5)

Maintaining

momentum

for

growth

Y‐o‐Y



Y‐o‐Y



Loans

by

SBU*

(Rp Tn)

Deposits

by

Product

– Bank

Only

(Rp Tn)

21.35 16 16

18.15 250

275 FX Time Rp Time

FX Demand Rp Demand FX Savings Rp Savings

15.50 4.38 4.55

4.84

140 160

Micro Small Cons Comm Int'l Corp

 23.6%  40.0% 20.1% 73 43 95.69 91.94 97.90 15.65 12.56 15.93 14.72 14.69 16.07 16.16 200 225 50 18.74

19.27 19.66 20.56

12.90 13.42 14.82 14.10 15.50 2.68 2.90 3.46 4.04 100 120 140 54.6% 20.1% 17.3%

51 82 _{45 36}

9.78 11.88 13.53 _10.49 15.09 19.51 17.52 93.20 80.47 73.43 66.70 63.34 78.16 125 150 175

4 44 4 41 4.40

36.48 38.71

41.56 40.64 41.88

11.08 12.78 14.23 15.74 17.52 7.56 8.86 9.91 13.08 12.49 1.73 1.94 2.20 80 100 29.5% 9 8% 14.8% 8.3% 4.12

4.70 _5.36 7.72

6.37 7.38 8.15 8.32

30.12 33.61 50.43 36.39 41.30 43.97 51.82 42.99 45.36 11.39 9.07 50 75 100

55 1762.04 64.12 65.84

0.95

0.91 2.14

2.82 3.39 4.06

4.33

4.44 4.41

25.85 24.36 28.90 31.46 32.75 10.6611.08 40 60 9.8% 37.8% 7.8% 45.17 57.61

81.54 76.29 80.81 75.80 82.23 77.24 82.79 3.50

0 25 50

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

29.9436.12 34.67

44.84 42.27 47.77 55.17 0.95

0 20

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

2.5%

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

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

(6)

Strong

and

liquid

balance

sheet

Assets

Amount

%

of

Assets

Liabilities

Amount

%

of

Liab.

(Rp Bn, Bank Only)

Cash

5,606

1.67%

Current

Account

62,882

18.69%

SBI &

BI

Placement

(net)

28,312

8.41%

Savings

91,112

27.07%

Placement

w/other

banks

(net)

29,001

8.62%

Time

Deposits

(Rp)

97,900

29.09%

Marketable

Securities

(

(net)

)

8,748

,

2.60%

Time

Deposits

p

(Fx)

18,148

,

5.39%

Government

Bonds

87,840

26.10%

Total

Deposits

270,042

80.25%

Loans

(Gross)

164,535

48.89%

Securities

Issued

637

0.19%

Provisions

(12,037)

(3.58%)

Deposits

from

other

banks

7,032

2.09%

Other

Advances

(net)

6,040

1.79%

Borrowings

5,755

1.71%

Investments

3,523

1.05%

Other

Interest

bearing

liabilities

2,801

0.83%

Other

Assets

14,947

4.44%

Non

Interest

bearing

liabilities

18,810

5.59%

Equity

31 439

9 34%

4

Equity

31,439

9.34%

(7)

FX

LDR continues

to

decline

along

with

FX

Loans

FX

Loans

FX

Loans*

&

LDR

(USD million)

323 ₂₂ 3444

582

282 248

247 3,765

4,254

3,755 3,822

(770) 4,011

131.1%

123 7%

Loans (Rp tn) LDR (%)

730

691 694

687

617 55

32

45 38

34

33

132 45

3

6 22

9

16 6 984

895

282

382

378 ₃₉₉

3,158 3,348

3,084

102.5%

123.7%

104.4%

95.9%

111.0% 3,052

980

617

588 550 282

132 45

290

6

3 ₃

80.5% 78.3%

68.5%

1,834

2,908 _2,731 _2,820 2,998

2,306

1,969 2,052

466 31.3 33.8

3

7.6 _33.4 _34.3 3_6.6 35.3 _34.3

30.1

1,163

2005 2006 2007 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09

5 Current S.Mention Sub Standard Doubtful Loss

005 006 00 Q 08 Q 08 Q3 08 Q 08 Q 09 Q 09

(8)

LDR of

62.2%

reflecting

strong

liquidity…

65.0% 63 2%

Loans (Rp tn)

LDR (%) 68 7

76.4 78.8 79.7 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%

LDR (%)

40 2 42.3 44.7 53.6 50.5 59.7 55.4 61.1 68.7

39 1 41.2 43.8 42.6 43.6 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

39.1 41.2

10 7 11 1 11 7 14.3 15.8

17.5 18.7 19.3 19.7 20.6

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

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

7.6 10.2 10.0

13.7 13.1 13.3 13.8 15.1 14.4 15.8

1.7 1.9 2.1 2.7 2.9 3.5 4.0 4.4 4.6 4.8 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 ' 30.5%

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

By Segment (Bank only)

Loans (Rp tn)

Y‐O‐Y Growth (%)

% of Portfolio

Corporate 79.66 30.43% 48.41%

3.7% 21.4%

Commercial 43.64 11.58% 26.52%

Small 15.84 18.71% 9.63%

Micro 4.84 39.98% 2.94%

6 1.4%

QoQ Growth (%) YoY Growth (%)

Consumer 20.56 17.35% 12.50%

Total 164.54 22.33% 100.00%

(9)

Rp20.4tn

in

loans

disbursed

in

Q2

‘09

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

1.10

2.22

160.07

20.44

4.25

7.32

4.13

0.27

164.54

4.09

1.92

20.44

11.12

Corporate Commercial Small Micro Cons Fin Total

7

(10)

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

Strategic

Alliances

(11)

Building

on

our

Business

and

Support

Strategies

with an Alliance Focus

with

an

Alliance

Focus

1. Strengthening our deposit franchise, to become

primary payment bank

Business Strategies Alliance Strategy Focus

 Improving supplier network and

distributor

 Cross sell productsto employees as customers:

2. Developing high yield business

3. Enhancing wholesale franchise and diversifying

wholesale transactions

4 Connecting the business leveraging synergy

Corporate

distributor

‐ Providing basic transaction and cash management

‐ Supporting suppliers and distributors in working capital financing

employees as customers:

‐ Payroll

‐ Mortgageor auto loans

‐ Corporate/ Retail cards

SBU Strategic

4. Connecting the business, leveraging synergy

5. Non‐organic growth & synergy in optimizing

subsidiaries Cross sell productsfor employee as customers : Payroll, mortgage, auto

loans commercial / retail cards

Alliances

Support Strategy loans, commercial / retail cards

Developing wealth managementfor individual Director or owner operators

Increase IT Operations

efficiency and Increase earning assets monitoring and

Enhance employee productivities and

Implement Business

Solution Excellence to

Apply Value Based Management as the Efficiency Risk Management Human Capital Information Technology Performance Culture

centralized and consolidated procurement

perfecting early

warning signal

Consolidated risk and monitoring subsidiaries

internal culture Apply best practice for

recruit, retain and develop

support payment bank

strategy

Implement Service

Excellence Strategyto

b i h

next step of Performance Culture

support business growth and services

(12)

Q2

Deposits

rise

22.0%

Y

‐

o

‐

Y

Rp Savings Deposits FX Savings Deposits Rp Demand Deposits FX Demand Deposits Deposit Analysis – Bank Only

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% 57.2%

57.8% 57.0%

Low‐Cost Deposits (%)

9.5% 13.9% 11.4% _9.5% 13.1% 11.9% 10.4% 9 2% 10.9% 10% 15% Rp TD 1 Mo. SBIs 15 ₁ 6 21.4 16.2 18.1 225 250 275 23.1% 32.9% 44.5% 45.3% 6 1% 5.3% 4.7% 9.9% 7.4% 6.9%6.8% 6.3% 7.4% 9.3% 8.7% 7.4% 8.8% 8.2%8.0%8.3% 9.2% 9.1% 7.4% 5% 10% 15 1 8 70 69

73.4 66.7 63.3 78.2 95.7 91.9 97.9 21 23.4 _20.6 17.3 _11.6 15.7 12.6 13.9 12.1 13.7 .9 14.7 14.7 6 .1 150 175 200 225 6.1% 3.7% 3.0%

2.6% _2.5%2.5%2.2%2.8%

3.8% 4.2% 3.4% 3.5% 3.6% 3.2%3.0%2.9% 3.3%2.8% 2.5% 0% 5%

4.7 5 4 7.7 6 4 7.4 8.2 8.3

33 ₃ 1 33. 1 35.4 50.4

36.4 41.3 44.0

51.8

43.0 45.4

9 1

11.911.4

9.1 10.214.611.2 9.8 11.9 13.5 10.5 15.1 19.517.5 97. 1 87.8

106.9 100.7 80.5 66.5

93.2 80.5 72.9 0.0 9.1 16.5 .5

75 100 125

150 _0%

4.0% _{3 7%} _{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 76.3 80.8 75.8 82.2 77.2 82.8

3.5

4.1 4.2 4.9 4.7

5.4 6.4

14.1

31.1 31.2 24.8

28.8

28.0 _30.1 .6 1.0 1

9.1 1 0 25 50 75 2.4% _2.1%

1.9% 1.6%1.8%

(13)

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 (%)

55 00 58.76 65.9

74.71 _84.7097.39 106.55

49.59 51.04 54.48

57.09 55.80 61.63 63.20 Other Payment Transfer Withdrawal/Inquiry Avg ATM Daily Vol (000) 30.6% 29 2% 34.6% 38.6%40.0% 35.6% 32.8%33.4%33.7%

4 6 6 8 8 9 1,0 1,0 1,1 1,1

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

16 9%17.5% 17.2%18.5%19.1%19.3%17.9%18.0%17.3%

4

92.1 607.5 677.0 853.4 899.7 976.7 088.8 043.4 100.5 158.9

11.0%11.7% 16.2%

11.6%12.8% 15.3%

16.9% _16.0%17.2% % %

2 988 2 784

3,029_3,4643,009 2,955

3,165 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 81.65 88.52 82.16 89.61 85.39 91.11

1,0693,072

6,988 11,575 16,974 17,969 19,772 18,116 22,328 25,819 33,502

27 679 1,016

1,086 1,722

2,988 2,784 3,464

(14)

...through vastly improved service levels...

MRI

Survey:

Best

Bank

in

Service

Excellence

2008

89.82

Mandiri

89.64 89.13

86 81 87.04

2004 2005 2006 2007

1 Mandiri _89.24

2008

1

87.82 88.00

87.65 89.03

Mandiri

86.91 87.17

Mandiri

82 46 84.57

86.81

3

2

85.76 85.85

86.18 87.32

85.30 86.70

83.11 85.91

80.00 80.53 82.46

84.01 84.66

83.06 84.80

83.04 84.15

81.31 81.38

78.62 78.77

80.67 81.79

81.04 82.11

81.00 81.86

80.12 80.69

73.92 75.69

79.33 80.36

79.29 80.80

76.46

12

73.50

(15)

…and

enhanced

transaction

capabilities

Quarterly Transaction Volume (Mn)

114.98 122.88 125 ATM 77.10 80 10 006 11,000 _Debit Cards SMS Banking

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

99.83110.13 114.98 100 Branch SMS Banking Internet Banking

57 66 64.68 70.10 60 8,828 10,006 9,950 9,000

10,000 SMS Banking_{Internet Banking}

67.76 69.97 77.89 88.75 75 40.71 49.11 57.66 60 6,642 7,629 7,202 7,000 8,000 42 11 50 31.87 35.54 40 5,024 5,752 4,355 4,793 5,116 5,000 6,000

35.10 36.24 36.55 38.51

42.11 40.59

41.39 42.28

19 7722.33 25.82 33.50 25 20 ATM SMS Banking Internet Banking 1,897 2,413 2,989 3,652 3,000 4,000

8.33 11.57 12.24

16.97 19.77

0.84 1.31 1.71 2.39

3.37 5.55 6.088.32

0 _{0 1} 1 02 1.811 281 43

0.56 0.88 1.60 2.20 3.61 3.81 4.044.75

0

1,523 ,

358 469 564

705 849 9881,089 1,111 0 1,000 2,000 13 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

0.28 0.36 0.55 0.71 1.02 1.811.281.43

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 '09 358 469 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*

(16)

Enhancing

deposit

franchise,

building

on

wholesale

transactions

Wholesale Deposit Growth (CASA) (Rp tn)

Cash Management Growth in Commercial Banking

# of Customers

Q2 Transactions (000s)

2 1

Q1 Transactions (000s)

21 0 1.8

2.1

1.4 Comm Savings

Comm Demand Corp Savings Corp Demand

+20.8%

0.6

1 0 19.4

21.0

18.1

4,066

4,910

632

0.7 1.0

12.1 _14.8

2,414 407

239

34.0 36.5 35.2

745 154

24.9 _23.0

2006 2007 2008 H1 '09

2007 2008 2009

2005 2006 2007 2008 Q2 '09

(17)

Q2

NIM of

5.3%

on

asset

yields

of

9.9%

18.9%

20%

Yield on Assets

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

15.9% 11.9% 13.2% 12.1% 12.0% 11.1% 13.2% 12.9%12.9% 12.5% 14.0% 10.6% 8 5% 14.0% 13.1% 10.4% _10.9% 11 7% 10% 15% 13.0% 13.0%

10.7%11.0% 10.7%

10.8% 10.8%

Cost of Funds _IDR

8.2%

10.8%

8.0% _7.7% 8.0%

10.3% 8.5% 7.4% 8.8% 8.2% 8.3%

9.1% 7.4% 11.1% 11.7% 5.4% 6.9% 5.0%

4.6% 4.0% 5.8%5.9%5.3%

5% 10% 9.5% 8.9% 10.7% 9.4% 9.0%9.3%9.2% 10.1%10.5% 10.7% 9.9% 0%

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

15% NIM 6.3% 4 8% 7.3% 6.4%

4 8% 5.3%

5.5% 4 9%

6.5%

7.6% _7.3%

5 7% 5 8% 6.8%6.5%6.6% 9.5%

10%

NIM 4.8% 4.8%

4.5%4.3% 3.8%

4.2%

4.9%

FX

5.1% 5.7% 5.3% 5.8% 6.7%

1.4% 1.8%

5.3% _5.3% _4.9%

2.6% _2.2%0.5%0.4% 3.8%

4.0%

3.4% 3.5%

2.7% _{3.0%2.7% 2.3%}

0% 5%

2.4% 3.9% 2.8% 3.7% 4.3% 3.6% 4.9% 5.5% 4.9% 4.9% 4.7% 5.1% 5.5% 6.0% 5.4% 5.5% 5.3%

(18)

Building

our

high

yield

business

in

Micro

&

Small…

Micro Credits

(Rp Bn)

21.9%

2 94

14.0%

Consumer Loans

(Rp Bn)

Small Credits

(Rp Bn)

Loan

Yields 13.6%

3,45

7

4,839

1,382

15,51

5

18,109

2,594

12,902 15,496 2,594

20.1%

7

Q2 2008 Growth Q2 2009

39.9%

Disbursement Breakdown (H1 ‘09)

5

Q2 2008 Growth Q2 2009*

16.7%

Disbursement Breakdown (H1 ‘09) Q2 2008 Growth Q2 2009

20.1%

Disbursement Breakdown (H1 ‘09)

*Excluding Credit Cards

0

Disbursement Breakdown (H1 09) Disbursement Breakdown (H1 09)

572

Disbursement Breakdown (H1 09)

1,937

2,232 ₄₆₄

664

572

3,063 824

313

438

2 456

295

1,363 882

2,456

295

Rural Banks Micro Unsecured Micro TOTAL Mortgage Home Equity

Loan

Payroll Loan Other Total

Non

‐

Prog

Program Coops

Cash

Coll

TOTAL

(19)

…as

well

as

Consumer

lending,

which

rose

17.3%

Y

‐

o

‐

Y

on

Mortgages

g g

and

Payroll

y

Loans

Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type

Rp20 56 tn

2, 4 1,1 4 1,27 9 1,353 1,493 18 000 20,000 22,000 Other Credit Cards Payroll Loans Home Equity Loans

Loan

Type

Growth

(%)

Y‐o‐Y Q‐o‐Q Rp20.56 tn 3 3, 9 3,9 9 3,98 3 4,099 1 1,92 6 2,008

2,113 2,223 2,251

4 52 495 619 956 4 5 9 14,000 16,000 18,000

Mortgages

Other*

56.25%

10.35%

Credit

Cards

22.14%

8.93%

3 3,7 0 3,76 1 3,721 3,697 3,704

1 1 2, 2 2 2,

2,78

3,010

3,192

3

,658 999 93 3

1,367 1,279 1,241 1,231 1,293 1,358

1,426

1,678

1

,908 6

180 196 211218 224 230

350425

10,000 12,000

Payroll

Loans

12.04%

2.90%

Home Equity Loans

0 05%

0 18%

7 7 8, 8,3

8,8

4,131 4,033 3,979 3,867 3,666 3,522 3,404

3,390

3,437

3

,612 02 1

1,921

1,930 1_,906 _,996 _,165 _,285 2_,427 ₆₄₄ ₉

1,270

72

6,000

8,000

Home

Equity

Loans

0.05%

0.18%

Mortgages

22.43%

5.22%

283

1,522

3,050 3,250 3,452 3,574 3,610 3,663 3,865 4,501

5,382 6,393

7

,199 ,717 052 376 14

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

Total

Consumer

17.34%

4.58%

17 283_Q4 '03 Q4 '04 Q4 '05 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 * Auto & Motorcycle Loans channeled or executed through finance

companies = Rp4.76 tn in our Commercial Loan Portfolio

* Auto loans through Tunas Finance of Rp252 bn booked in the

(20)

1,486k

Visa

&

Mastercards

transacted

Rp2.27

tn

in

Q2

2009

Mandiri Visa & Mas ter car d s a nd E O Q R eceiv a bles To ta l Car d Quart e rly Sales by Ty p e of Tr a n sa ct io n (Rp B n) 1 226 1,273 1,331 1,409 1,486 R e ceiv ables (Rp Bn) Car d s (000s) 54 59 19 39 52 Tr ans fer Balance Cash Adv ance Re ta il 919 966 1,033 1,089 1,159 1 ,226 61 57 63 63 59 9 10 32 59 39 651 752 765 784 817 872 919 62 58 62 17 19 17 10 338 62 61 57 81 56 59 68 72 68 67 24 16 10 18 8 23 42 3 11 17 567.5 814.9 1,270.2 1,367.4 1,279.4 1,240.8 1,230.7 1,292.8 1,357.5 1,426.2 1,677.6 1,907.5 1,925.9 2,007.7 2,112.7 2,223.2 2,251.0 2,452.2 226 535 521 532 606 600 553 621 755 836 936 1,067 1,225 1,514 1,443 1,668 1,904 1,914 1,891 2,163 61 57 18 5 9 2 4 4 8 7 8 5 2 6 5 9 7 7 2 0 2

Q4 '02

Q4 '03

Q4 '04

Q4 '05

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

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

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

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

(21)

Diversifying

our

strength

in

Wholesale

lending…

Breakdown of Net Expansion in Corporate SBU Lending Q2 ’08 – Q2 ’09 (Total Rp18.07 tn)

4 970

Mf F&B

%

Breakdown of Net Expansion in Commercial SBU Lending Q2 ’08 – Q2 ’09 (Total Rp5.34 tn)

d % 71 03% 1 948 2,774 2,888 4,970 Constr Agri Bus Serv Mfg‐F&B _51.23% 121.40% 46.39% 88 41% 759 989 1,565 Mfg‐F&B Agri Trading‐Distr 71.03% 27.62% 45.43% 980 989 1,687 1,948 Mfg‐RawM Comm Mfg‐Chem Constr _88.41% 33.99% 15.73%

5 754 23% 354

644 664 Mfg‐Oth Mass Trans Other 7.93% 38.99% 5.06% 403 596 844 Trad‐Distr Mining‐Oil & Gas Utilities g _5,754.23% 57.89% 11.41%

29.09% 275

318 334 Mfg‐P&P Mfg‐Text Constr 6.58% 20.23% 21.92% 179 209 249 Mfg‐Oth Soc Serv Other _32.61% 122.30% 4.45% 162 195 266 Comm Mfg‐NonM Trading‐H&R g 27.58% 101.57% 166 93% Rp Billion (163) (132) (90) Trad‐Ret Trad‐H&R Trad‐Oth _(7.44%) (72.29%) (39.86%) Rp Billion (569) 147 162 Trading‐Dom Mining Comm 166.93% 16.55% (64.65%) ( ) 19 p (261) (2,000) (1,000) 0 1,000

2,000 3,000 4,000 5,000 6,000

Mining‐Oth _(18.41%) ₍₇₆₀₎

(1,000) (500) 0 500

(22)

…into

Fee

‐

based

Income

Non‐Loan Related Fees & Commissions H1 ‘08 Q1 ‘09 Q2 ‘09 H1 ‘09 Q2 %

(Q o Q)

H1 %

(Y o Y)

Breakdown of Q2 2008 & 2009 Non‐Loan Related Fees & Commissions (Rp bn)

(Q‐o‐Q) (Y‐o‐Y)

Administration Fees 498.67 290.33 351.77 642.10 21.2% 28.8%

Opening L/Cs, Bank Guarantees & Capital

191.46 121.41 128.46 249.88 5.8% 30.5%

Markets 191.46 121.41 128.46 249.88 5.8% 30.5%

Subsidiaries 281.92 79.83 148.55 228.39 86.1% (19.0%)

Transfers, Collections, Clearing & Bank

105 58 57 70 56 38 114 07 (2 3%) 8 0%

Reference 105.58 57.70 56.38 114.07 (2.3%) 8.0%

Credit Cards 165.68 113.35 136.98 250.33 20.9% 51.1%

Mutual Funds & ORI 26.96 6.17 13.16 19.32 113.3% (28.3%)

Others* 338.35 162.89 221.28 384.17 35.9% 13.5%

Total 1,608.61 831.67 1,056.59 1,888.26 27.0% 17.4%

Total Operating Income# 8,927.82 5,601.03 5,664.74 11,265.77 1.1% 26.2%

Non‐Loan Related Fees to Operating

Income** 18.02% 14.85% 18.65% 16.76% 25.6% (7.0%)

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

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

(23)

Strong

FX

revenues

but

limited

derivative

exposure

800

FX Fees(Rp bn) – Bank Only

Notional Fair Derivative Derivative

Derivative Exposure (Rp bn) – Bank Only

Total

Q2

Transactions Notional

Amount

Fair

Value

Derivative

Receivable

Derivative

Payables

Foreign Exchange

d b

587 4

600 Forward ‐buy _2,552 _2,520 ₁ ₃₃

Forward ‐sell

389 384 8 2

Swap ‐buy

859 859 9 10

587.4

400

859 859 9 10

Swap ‐sell

4,705 4,482 228 6

Interest Rate

142.4 155.0

132.8 200

Swap ‐interest rate 20 ‐ 20

Total

246 71

ll f bl l

102.9 _83.5

72 7

193.7 109.9

120.3

82.2 106.9

Less: Allowance for possible losses

(5) ‐

Total

241 71

21 16.1

83.5 _72.7 0

(24)

Q2

NPLs fell

to

Rp8.6

tn on

upgrades

and

FX

impacts

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

p

Movement by Customer Segment (Rp Bn)

80 2 41.2

57.5 Cons

Micro/Small

C

10.52

1.36

0.48

0.30

0.27

0 51

80.2 _Comm

Corp

0.51

8.56

1,182.1

109.3

147 8 220.2

96.3 69.3

22 2.5

147.8 _102.9

(25)

Gross

NPLs decline

to

4.78%

with

provisioning

coverage

improving

at

136.1%

20,000 50%

NPL Movement ‐Consolidated

70.9

% _212.6%

g

p

g

Category 2 Loans – Bank Only

16,000 18,000

,

40% Cat 2 %

%

146.7%

190.4%

175.8%

201.7%187.5%

163 8% 182.4%

12,000 14,000

26 18%

30%

1

9

25.28%

129.5%

139.1% 128.8%

86.7%

109.0%122.6% 138.9%

127.1%

116.6% 136.1%

100 9%

151.1%

163.8%

8,000 10,000

26.18%

14 98% 15.86%

20%

9

.80%

16.34% 16.29%

15.47

% ₁

70.0%

44.4%

100.9%

4,000 6,000

9.16%

14.98%

12.87%

15.86%

13.99%

11.46%

9.22%10.20%

9.66% 10%

9.70%

7.30

8.60%

7.1

0

% ₁

2.20%

7.1

7 5_.

4,033 15,350 12,655 16,202 10,983 8,334 12,912 16,966 16,750 15,854 15,586 15,148 14,058 13,451 13,502 15,412 16,332 15,895

0 2,000

Q

4 Q4 Q4 Q4 4Q Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 2Q Q3 Q4 Q1 Q2

0%

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

4.44% 4.73% .85% 4.78%

15.3%

1.5% 1.1% 1.0%

Q

4 Q4 Q4 Q4 4Q Q4 Q4 Q4 Q1 2Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 4

'99 '004 4 '01 4 '02 4 '03 '044 4 '05 4 '06 1 '07 '07 2 3 '07 4 '07 1 '08 '08 2 3 '08 4 '08 1 '09 2 '09

2 ‐Special Mention Loans (Rp Bn)

23

4

'99 '004 4 '01 4 '02 4 '03 '044 4 '05 4 '06 1 '07 '07 2 3 '07 4 '07 1 '08 '08 2 3 '08 4 '08 1 '09 2 '09

Gross NPL Ratio Net NPL Ratio

(26)

Cash

Provisioning

remains

high

for

both

NPLs

and

Annualized

net

upgrades

of

1.52%

on

loans

originating

since

2005

Total Loans originated since 2005

g

Net Upgrades (%)/Downgrades (%)# _Q2 ₂₀₀₉ _Details

Loan Q2 ‘09

Balance Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

DG to NPL

UG to PL Background Balance

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

NPL %

PL %

Corporate 61,262.6 0.49 0.55 ‐ ‐ 0.10 0.11 0.48 1.05 1.15 ‐ 1.15

Commercial 28,739.2 0.60 0.18 0.02 0.33 0.14 0.21 1.05 0.78 0.03 0.09 0.07

Small/Micro 16,512.5 1.56 1.07 0.59 0.92 0.58 0.59 1.20 1.06 1.00 1.17 0.17

Consumer 18,808.0 0.34 0.28 0.01 0.42 0.13 0.22 0.13 0.49 0.27 0.48 0.21

Total 125,332,3 0.29 0.23 0.08 0.28 0.18 0.21 0.65 0.91 0.38 0.25 0.63

# %downgradesandupgrades are quarterly % figures

(28)

Progress

on

selected

debtors

as

of

30

June

2009

 Total Groupp exposurep outstandingg as of 30 June 2009 was Rp1,491p , billion,, with performingp g loans (PL) of Rp 1,321 billion (89% of total) and non‐performing loans (NPL) of Rp 170 billion (11% of total).

 Industry : integrated textiles and property

A

 The Group consists of 7 companies: Alfa Goldland Realty (Category 2), Argo Pantes

(Category 2), Budhidarma Jakarta (Category 2), Daya Manunggal (Category 2), Grand Textile Industry (Category 2), Lawe Adyaprima Spinning Mills (Category 5) and Grand Pintalan Textile Ind. (Category 2).

Argo

Manunggal

Group

 Collateral coverage is currently 213% of loans outstanding.  Update:

 Due to the impact of the global crisis in 2008 and early 2009, the principal payments have been restructured for the textile and property sector loans to adjust to the cash‐ flow ability.

 The Toll access for Alam Sutera has been under construction since July 2007 and has recently been completed. The opening of the Toll Access Road corresponds with the recently been completed. The opening of the Toll Access Road corresponds with the Grand launching in August 2009, and is expected to accelerate sales.

 Account strategy: Closely monitor for the debtor’s requirements according to the entire restructuring scheme.

(29)

Progress

on

selected

debtors

as

of

30

June

2009



Total

outstanding

to

this

group

as

of

30

June

2009

was

Rp322

billion.



Industry

:

integrated

textile

.



The

debtor

has

been

upgraded

to

debtor

settled

loans

in

Q2/2009

amounting

to

Rp86

billion

(principal

and

interest).



The

account

strategy

is

“maintain”

and

we

are

now

in

the

process

of

intensive

monitoring.

Industry

o to

g.



Total

outstanding

to

this

debtor

as

of

30

June

2009

was

Rp241

billion.



Industry

:

tin

can

and

bottle

cup.

Ancol

Terang

MPI



The

debtor

has

been

upgraded

to

Initiatives

C dit

• _Enhance _business _process _credit _approval, _CR

methodologies & tools (monitoring system)

• _{Develop & enhance collection systems}

High Risk (Rating C‐G)

Medium Risk (Rating BBB – B)

Credit

Develop & enhance collection systems

• _Optimize _credit _portfolio _management _system

• _Consolidate _risk _profile _(incl. _overseas _offices _&

subsidiaries – Credit, Market & Operational)

Low Risk (Rating AAA – A)

15% 12% 11% 9%

100%

Market

• _{Implementation} _of _stress _test _analysis

• _Development _of _derivative _system _(summit)

• _Enhance _Risk _Mandiri _Policy _(KMRBM)

• _Enhance _Treasury _policy

34%

24% 21% 22%

60% 80%

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

y p y

• _Implement _Risk _Profile _System _(RPM)

64% 68% 69%

40% %

Operational

offices & subsidiary

• _Set _up _Operational _Risk _Committee _under _RCC

• _{Synchronization} _of _Risk‐_Based _Audit

methodology with RCSA (ORM)

51%

64%

20%

28 0%

(31)

Q2

Cost

to

Income

Ratio

rises

to

42.8%

on

higher

Personnel

expenses

CIR* (%)

Annual Avg CIR (%)

p

Q2 ‘08 Q2 ‘09 Q2

Q o Q Y o Y

Breakdown of Q2 2008 & 2009 Operating Expenses Quarterly Consolidated Operating Expenses & CIR*

58.9%

g ( ) _Q‐o‐Q _Y‐o‐Y

Personnel Expenses

Base Salary 358,365 425,916 20.56% 18.85%

Other Allowances 493 668 597 580 27 10% 21 05%

28 2% 40.2% 47.2% 40.4% 35 1% 42.8% 40.4% 47.2% 42.3%

Other Allowances 493,668 597,580 27.10% 21.05%

Post Empl. Benefits 102,075 186,116 32.69% 82.33%

Training 74,818 32,266 7.62% (56.87%)

Subsidiaries 128,772 148,455 21.32% 15.29%

723

1,₂

869 1,04 9 1,309 1 1,158 1,1 7 1,197 1, 1,390

28.2% 35.1% , ,

Total Personnel

Expenses 1,157,698 1,390,333 24.58% 20.09%

G & A Expenses

IT & Telecoms 200 335 171 774 3 71% (14 26%)

95

7

649

327

377

2 41 795 929 9

1,005

7

2

116

IT & Telecoms 200,335 171,774 3.71% (14.26%)

Occupancy Related 240,043 260,771 14.35% 8.64%

Promo. & Sponsor. 200,296 168,747 82.10% (15.75%)

Transport & Travel 73 474 67 342 (0 61%) (8 35%)

336 753 775 749 1,034 842 1,016 710 748 957 993 769 1,034 916 1,148 827 1,004 7

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

Transport & Travel 73,474 67,342 (0.61%) (8.35%)

Prof. Services 90,720 115,264 24.29% 27.05%

Employee Related 82,299 100,139 26.50% 21.68%

Subsidiaries 146 600 120 247 18 72% (17 98%)

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

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

29

Subsidiaries 146,600 120,247 18.72% (17.98%)

Total G & A Expenses 1,033,767 1,004,284 21.40% (2.85%)

(32)

Leveraging

cash

generator

to

accelerate

high

yield

growth

22.1% 1 396

1,169

Corporate _{H1 '07}

g

Net Interest Income

NII (Rp bn) % of Total

Alliance Strategy Focus

18.4%

26.1%

28.6%

5.6%

2,168 1,396

296

1,377

Treasury & Int'l Commercial #

H1 07

H1 '09

Building Future Growth Engine

(Consumer& Micro/Retail) CM = Rp2,589 billion

Leveraging Our Cash Generator

(Corporate& Treasury) CM = Rp2,431 billion

4.7%

37.3%

37.2%

8.9%

2,817 356

470

1,969

Micro & Retail * Treasury & Int l

Fee Income

Fees (Rp bn) % of Total

8.9%

11.0% 836

470

Consumer Finance

12.2%

11.1%

5.8%

11.8% 291

274

89 189

Commercial #

Corporate _H1_'07

H1 '09

28.8%

25.7% 44.6%

45 6% 1 124

634

674 445

Micro & Retail * Treasury & Int'l

Strengthen Emerging Business

(Commercial Banking) CM = Rp2,189 billion

45.6%

9.6%

5.8% 142

1,124

149

Consumer Finance

(33)

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

1,128

1,259 1,275 1,389

1,609

319 391

486 532

791 897

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

Plantation Small & Micro Lending from Alliance

Program Rp Billion

Corporate Card Holder from Alliance Program

(10 to corporate clients)

350 347

418 416 427 427 423

Program Rp Billion

7,272

(10 to corporate clients)

149

234 259 268 1,616 1,620 1,796 1,869 2,007

3,625

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

(34)

Enhancing

synergies

&

values

from

subsidiaries

Investment Banking Investment Banking Syariah Banking

Syariah Banking InsuranceInsurance NicheNiche BankingBanking MultiMulti‐‐FinanceFinance

Total Assets

Rp18 7 tn

Bond Trading Volume

Rp8 42 tn

Total Assets

Rp4 97 tn

Total Loans

Rp342 bn

Total Financing

Rp751 1 bn Bank Sinar

Harapan Bali

Rp18.7 tn Rp8.42 tn Rp4.97 tn Rp342 bn Rp751.1 bn

Total Financing

Rp14.2 tn

Bond Underwriting

Rp875 bn

Annual FYP

Rp 166.6 bn

Net Interest Margin*

11.46%

Net Interest Margin

6.72%

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

Total Deposits

Rp16.4 tn

Equity Trading Volume

Rp18.89 tn

Fee Contribution

Rp55.66 bn

ROA 4.1%

ROA (Before Tax)

3.52%

ROE 18.9%

ROA 5.2%

ROE 45.2%

ROE 11.4%

ROE (After Tax) 18.76%

• 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.

32 customers • Refocus business toward

higher fee income

complete our suite of consumer offerings

* Excluding deposits made by

(35)

H1

2009

operating

profit

up

35.3%

from

H1

2008

H1

2009

H1

2008

2,481

Rp billion Rp billion

4,906 1,989

4 384

8 660

Up 35.3%

4,384

8,660

6,235 7,004

4,610

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

33 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

H1 2008 H1 2009 H1 Y‐o‐Y

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

Interest Income _12,175 _8.1% _16,603 _9.6% _36.4%

Interest Expense _(5,171) _(3.5%) _(7,943) _(4.6%) _53.6%

Net Interest Income _{7 004} _{4 7%} _{8 660} _{5 0%} _{23 6%}

Net Interest Income _7,004 _4.7% _8,660 _5.0% _23.6%

Other Operating Income 1,989 1.3% 2,481 1.4% 24.7%

Gain from Increase in Value & Sale of Bonds 10 0.0% 124 0.1% 1,140.0%

Provisions, Net ₍₈₅₅₎ _(0.6%) _(1,974) _(1.1%) _130.9%

Personnel Expenses _(2,195) _(1.5%) _(2,506) _(1.4%) _14.2%

G & A Expenses (1 798) (1 2%) (1 832) (1 1%) 1 9%

G & A Expenses (1,798) (1.2%) (1,832) (1.1%) 1.9%

Other Operating Expenses** (391) (0.3%) (568) (0.3%) 45.3%

Profit from Operations _3,689 _2.5% _4,385 _2.5% _18.9%

Non Operating Income 72 0.0% 115 0.1% 59.7%

Net Income Before Tax _3,761 _2.5% _4,500 _2.6% _19.6%

Net Income After Tax _{2 610} _{1 7%} _{2 927} _{1 7%} _{12 1%}

34

Net Income After Tax _2,610 _1.7% _2,927 _1.7% _12.1%

* % of Average Assets on an annualized basis

(37)

…supported

by

strong

capital

at

14.1%

26 2% R E AT

IDR bn

Capital & RWA Movement Profit After Tax & ROE

Q4 PAT

21.5% 26.2%

23.6%22.8%

15.8%18.1%18.7%

RoE ‐AT

31.3%

27.7%

CAR

1,4

0

819

775

1,1

6

1,390

Q4 PAT

Q3 PAT

Q2 PAT

Q1 PAT _2.5%

10.0%

183.9 26.4%

23.4%

25.3%

23.7%

25.3%

21 1%

1,3

2 1_,

1,

0

1,528

0

8

1,040

1,345

645

799

6

134.0

172.9 21.1%

15.7%

1 1,₇ ₁ ₁

1,

3

602

690

2

9

1,113

1,221

,526

967

0

17

610 372

1,234

58 1 72.5

91.9

108.9115.9112.2 14.1%

308

1,168

,549

7

44

519 510

1,027

1

,390

1

,400

3

00

97 305

610 372

(623)

42.6

58.1

13.3 15.4 17.0 25.5 27.5 27.4 28.4 28.3 27.2 25.9

2000 2001 2002 2003 2004 2005 2006 2007 2008 Q2 '09 (623)

2001 2002 2003 2004 2005 2006 2007 2008 2009

2000 2001 2002 2003 2004 2005 2006 2007 2008 Q2 09

RWA (Rp tn) Total Capital (Rp tn)

(38)

O

i

Operating

Performance

Highlights

g

(39)

Corporate Banking:

Contribution

Margin

declines on rate increase

Rp bn Rp bn

Performance to Date: H1 2009 Contribution Margin (after PPAP) Strategies for 2009

1. Refine organization to be more

i d t f d & t th

274 139

1,582 104

1,628

Q1 Q2

Q3 Q4

2,906

industry focused ,& strengthen

funding sales team to gain rapid

business growth

2. Strengthen Corporate Banking

544

2,483

_Floor_in_Surabaya_and_Medan_to

broaden and deepen our

geographic coverage

3 Strengthen our Syndication &

811

1,077

537

26.4%

3. Strengthen our Syndication &

Structured Finance team, as

well as our synergy with

Mandiri Sekuritas, to provide a

broader variety and more 811

592

547 1106

broader variety and more

sophisticated product range,

and accelerate transactional

banking development in

Corporate Banking

545 741 522

Corporate Banking

4. Broaden relationships to offer

products and services to our

corporate clients’ suppliers,

l d t

37

2007 2008 2009

employees and customers,

through strategic alliance

(40)

Mandiri

Sekuritas’

financial

performance

has

been

impacted

p

by

y

the

global

g

economy

y

crisis

H1 ’08 H1 ’09 Y‐o‐Y 

(%) (Rp Bn)

Revenues

245

170

(31%)

• Investment

Banking

92

69

(26%)

• Capital Market

Capital

Market

115

81

(30%)

• Treasury

5

3

(40%)

• Investment

Mgt

32

19

(42%)

Operating

Expenses

134

72

(46%)

Earnings

After

Tax

65

17

(73%)

Equity

Transactions

26,940

18,887

(30%)

SUN

Transactions

15,901

8,416

(47%)

Bonds Underwritten

2 633

875

(67%)

Bonds

Underwritten

2,633

875

(67%)

ROA

6.3%

1.6%

(75%)

ROE

15 8%

5 2%

(67%)

ROE

15.8%

5.2%

(67%)

(41)

Treasury

&

International

Banking

Q1 Q2 Q3 Q4

Rp bn Rp bn

1. Intensify cross‐selling of forex

677 ₁₃₇

Q Q Q Q

1,280

corporate and large commercial

clients

2. Seek opportunities to enhance

h ld f f l

677 ₁₃₇

897 94

803

377

the yield of our recent portfolio

3. Sustain our overseas business by

focusing on syndicated facilities

and trade financing to selected

307 118

803

customers in supporting

Indonesia‐related business

4. Enhance our regional

distribution (RTM) in high

803

356 946

348

322 121%

distribution (RTM) in high

growth, export‐oriented regions

in collaboration with Micro &

Retail Banking

5 Reinforce competitiveness

266 ₂₁₀

455

153

5. Reinforce competitiveness

through new Mandiri

International Remittance offices

and our Shanghai office

6 B ild i t ti l i

NII Fees Overhead Operating Profit

Provisions Profit After

PPAP 2007 2008 2009

39

6. Build international experience

for future regional expansion &

(42)

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

682

292 ₂₂₅

2,235 45 _{2 189}

2,114

2,427

in_Medium Small Commercial_Commercial Loan_Loan and

Segment (Limit under Rp100

Billion)

2,189

617

682 2,189

64%

2. To increase sustainability of loan

portfolio by expanding “KMK”

fixed product.

3 Financing the subcontractors of 1266

564

617

1,486

3. Financing the subcontractors of

large corporates, particularly in

infrastructure, mining, and

telecom

4 T it h lli t t i

946

630 4. To pitch alliance strategic

partner targets from the 10

biggest corporate customers

and 17 biggest commercial

t th t h

487

703

923

customers that have

significantly business impact.

5. To develop bundling products by

utilizing push product and

2007 2008 2009*

*) incl CM of Small Rp296 bn & BSM Rp179 bn in H1

40

(43)

Commercial Banking : Stronger Platform & Improved

Distribution Capability

Expanding

Scope

of

Distribution,

2009

Solid

Low

&

Stable

Cost

Funds

Source

of

R T **

Product Q2 2008

Q2

2009 Growth

Demand

16 74 18 15 8 4%

Rp Tn **

Sumatera Loans = Rp 5.6 Tn Funds = Rp 5.3Tn

Kalimantan Loans = Rp2.3 Tn Funds = Rp2.3 Tn

Eastern Loans = Rp1.1 Tn Funds = Rp1.9 Tn

Deposit 16.74 18.15 8.4%

Rupiah 12.42 12.69 2.2%

FX 4.31 5.45 26.5%

Saving

Deposit* 2.60 1.40 (46.2%)

Total Low

Cost Fund 19.34 19.55 1.1%

Cost Fund

Total

Funding 28.11 33.00 17.4% Java and Bali

Loans = Rp32.8 Tn Funds = Rp23.5 Tn

CBC = 19 Unit Floor = 18 Unit TSC = 11 Unit TSD = 8 Unit

Low Cost Fund Ratio = 59.24% Funding from Java & Bali =71.30% of total funding

41 g

(44)

Strong

growth

from

our

Syariah Banking

subsidiary

13.6% 13.5% 13.5%

y

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

FY ’06 FY ‘07 H1 ‘08 FY ’08 H1 ’09

12.3% 12.2% 12.4%

13.0%

12.4% 12.7%

YoA

Financing 7,415 10,305 12,731 13,278 14,232

Deposits 8,219 11,106 14,270 14,899 16,353

Assets 9,555 12,888 16,286 17,066 18,684

EAT 65.48 114.64 96.28 196.42 125.74

Ratios:

ROA 1.10% 1.54% 1.94% 1.83% 2.00%

ROE 10 23% 15 94% 22 78% 21 34% 18 88%

6 2%

Syariah Financing (Rp tn)

ROE 10.23% 15.94% 22.78% 21.34% 18.88%

Net NPF 4.64% 3.43% 2.15% 2.37% 1.92%

6.

8 6 6 6. 6 6 6

5.7%

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

6.2%

Financing

90.2%

92.8%

91.1% 91.1%

89.2%

99.1%

89.1%

87 0%

FDR CoF

8

% 5.6% 6.1% 6.3% 7% 6.3% 6.4% 6.3% 5.6% 5.6%

9.30 10.31

11.15 12.73

13.77 _13.25 _13.43 14.23 86.9% 87.0%

NIM

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

7.41

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

(45)

Micro & Retail Banking:

Rapidly

growing

our

high

margin

business

Performance to Date: H1 2009 Contribution Margin (after PPAP)

Rp bn Rp bn

Strategies for 2009

1,257

Q4

Q3

Q2

1,124 4,594 _{1. Leverage} _our _strength _in

Corporate and large

Commercial customers to

i kl b ild hi h i

,

Q1

2,496

1,893

quickly build high margin

business

2. Continue to improve our

t i f t t

1,416

318

2,047 65 _1,982 2,204

payment infrastructure

3. Expand our distribution with

a focus on high margin

b i

1,982

740

1,045 856

572 3.2%

business

4. Improve our sales culture and

productivity of existing

t k

574 876

1,126

740

321

network

5. Cross sell to grow our fee

based income business

43 2007 2008 2009 *

*Excluding Small Business

(46)

Consumer Finance:

Significant

growth

in

spread

and

fee

income

Performance to Date, H1 2009 Contribution Margin (after PPAP)

Rp bn

Rp bn Rp bn

142

239

Q1 Q2

Q3 Q4

831

836

739

131

639

324

607

355 133

158

412

62%

170

200

355

100

161 79

143 150 174

252

90

170

44

NII Fees Overhead Operating Profit

Provisions Profit After

(47)

S

i

M

i l

Supporting

Materials

(48)

Key

Quarterly

Balance

Sheet

Items

&

Financial

Ratios

IDR billion / % H1 ‘08 FY ‘08 H1 ‘09 H1 Y‐o‐Y (%)

Gross Loans 149,612 174,498 181,611 21.39%

Government Bonds 88 386 88 259 88 243 (0 16%)

Government Bonds 88,386 88,259 88,243 (0.16%)

Total Assets 304,680 358,439 358,897 17.79%

Customer Deposits 236,213 289,112 287,055 21.52%

T l E i 27 711 30 514 31 439 %

Total Equity 27,711 30,514 31,439 13.45%

RoA‐before tax (p.a.) 2.44% 2.52% 2.54%

RoE – after tax (p.a.) 17.89% 18.06% 18.70%

Cost to Income(1) _44.40% _42.26% _38.94%

NIM (p.a.) 5.25% 5.45% 5.35%

LDR 62.16% 59.16% 62.20%

Gross NPL / Total Loans 4.74% 4.73% 4.78%

Provisions / NPLs 122.55% 127.14% 136.13%

Tier 1 CAR(2) _14.48% _12.83% _12.62%

Total CAR(2) _17.72% _15.83% _14.10%

Total CAR incl. Market Risk 17.58% 15.77% 14.02%

EPS (Rp) 124.1 254.5 139.92 12.75%

46

( p)

Book Value/Share (Rp) 1,318 1,462 1,503 14.04%

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

(49)

Total

Assets

grew

17.8%

Y

‐

o

‐

Y

to

Rp358.9

tn

95. 84 89.0 330 360 In t. fr om Bonds In t. fr om Loans 1 6 91.1 75.5 66.7 67.4 7 4.1 0 270 300 330 44.0 43.0 4 1 1 1 11 1 11 12 138.5 135.5 149.6 162.8 174.5 175.2 181.6 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 61.2 210 240 75.4% 74.1% 60.6% (Rpt n) 0 0 48.3 65.4 75.9 94.4 106.9 105.1 107.8 108.8 17.7 14.3 16.3 1.7 5 5 120 150 180 47.1% 50.0% 46.9% 50.1% 52.2% 56.8% 58.8% 59.1% 57.2% 63.6% Tota l Assets

120 90 60

40.9% 41.0% 34.8% 31.0% 32.3% 32.4% 29.3% 29.3% 25.4% 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 0 30 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 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

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

(50)

Additional

Factors



Aggregate

of

Rp33.987

tn (US$

3.330

bn)

in

written

‐

off

loans

as

of

end

‐

June

2009,

with

significant

recoveries

on

‐

going:



2001

R 2 0 t



2001:

Rp2.0

tn



2002:

Rp1.1

tn



2003:

Rp1.2