PT Bank Mandiri (
PT Bank Mandiri (
Persero
Persero
)
)
Audited Results & Financial Performance for
the Year Ended 31 December 2002
Consistent Improvement in Profitability in Past 3 Years
1,181
2,746
3,586
8.1%
21.5%
26.2%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2000
2001
2002
0%
5%
10%
15%
20%
25%
30%
PAT ROE
P
rofit After Tax, Rp. Billion
42.61
58.08
72.51
18.34
16.11
13.33
0
10
20
30
40
50
60
70
80
90
100
2000
2001
2002
Risk Weighted Assets Tier I & Tier II Capital 31.3%
26.4%
23.4%
5% 10% 15% 20% 25% 30% 35%
CAR BI Min Req
A Strong Capital Base to Support Growth
RWA/Total Capital, Rp. Trillion
CAR
[+36.3%]
Asset Quality Continues to Improve, Whilst Provisioning
Policy Remains Conservative
19.8%
9.7%
7.3%
9.4%
3.1%
1.9%
129.5%
190.4%
146.7%
0%
5%
10%
15%
20%
25%
2000
2001
2002
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Gross NPL Ratio Net NPL Ratio Prov/NPL
NPL Ratio
P
Loan Growth Book is Leading to
Better Loan to Deposit Ratio
43.0
48.3
65.4
25.3%
35.4%
26.3%
0
10
20
30
40
50
60
70
2000
2001
2002
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Loans LDR
[+12.4%]
[+35.3%]
Loans, Rp. Trillion
LDR
Loan Growth Across All Customer Segments
Corporate 62.9% Commercial
34.7%
Consumer 2.4%
Loan Segmentation by Gross Annual Sales (2002)
33,8
6,5
2,0
38,2
5,2
3,8
50,7
9,0
4,2
0
10
20
30
40
50
60
Corporate( > 25 b) Commercial (5b < 25 b) Consumer (<5b)
2000 (total loan = Rp 42.4 tn) 2001 (total loan = Rp 47.2 tn) 2002 (total loan = Rp 63.9 tn)
Rp. Trillion
Notes :
Corporate : GAS > Rp.300 billion Commercial : GAS < Rp.300 billion
(Rp 1.5 tn)
(Rp 22.2 tn)
(Rp 40.2 tn)
2002 Growth: 32.7% 73.9% 10.4% Loan Growth by Facility Size
1)
3-Pronged Strategy for a Sound Balance Sheet and Asset
quality
1.
Conservative Provisioning
More conservative Provisioning than BI Requirements (Rp 5.5 Trillion Excess
on Earning Assets)
High Provisioning Coverage (190% Provisions/NPL Ratio)
2.
Rigorous & Accountable Loan Restructuring and Recovery
19-Step Approach to Restructuring
Continuous Collection Efforts (Rp 1.1 Trillion Collected in 2002)
3.
Sound Risk Management Principles & Processes
“4 Eyes” Policy/Independent Risk Management Organization
Customer Ratings
Industry Studies
Growing Contribution from Loans
& Lesser Reliance on Bonds
43.9%
31.5%
24.4%
73.5%
67.2%
19.1% 18.4% 22.5%
75.3%
0%
10%
20%
30%
40%
50%
60%
2000
2001
2002
0%
10%
20%
30%
40%
50%
60%
70%
80%
Ratio of Loans to Bonds % Int. from Bonds % Int. from Loans
Ratio of Loans to Bonds
%
o
Savings Deposit Growth Is Leading
to a Better Funding Mix
18.03
29.93
22.31 11.7%
16.3%
11.0%
0
5
10
15
20
25
30
35
40
2000
2001
2002
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Savings Deposits % of Total
Savings Deposits, Rp. Trillion
%
o
f Total Deposits
[+23.7%]
Distribution Network Broadening –
Especially Electronically
546 533 635 687
1,184
1,559 176,232
63,257
16,346
0
500
1,000
1,500
2,000
2,500
2000
2001
2002
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Branches ATMs ATM Transactions
# of Distribution Outlets
Avg. Daily ATM Transaction Volume
Maintained Margins Despite a
Fluctuating Interest Rate Environment
13.1% 13.3%
11.4% 11.1%
11.5% 10.3%
2.9% 3.0%
2.7%
2.2%
1.2%
1.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2000
2001
2002
0.0%
0.4%
0.8%
1.2%
1.6%
2.0%
2.4%
2.8%
3.2%
Avg Yield of Earning Assets Avg Cost of Funds NIM Interest Spread
Avg
Y
ield/Cost of Funds
Overhead Spending Remains Under Control Despite Heavy
Investment in Brand & IT Platform
1,863
1,670 1,566
1,350
1,747
2,060 39.9%
42.8%
31.1%
0
500
1,000
1,500
2,000
2,500
2000
2001
2002
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Personnel Expenses G&A Expenses Cost to Income Ratio
Overhead Expenses, Rp. Billion
Gaining Increasing International Recognition
•Landmark US$125 Million Subordinated Debt Deal in 2002
¾
The first sub-bond from Indonesia since 1997
¾
The first 10-year final maturity bond from Indonesia since 1997
¾
69% of Allocation to Overseas Investors
•International Awards
Global Finance
¾
Best Indonesian Bank, 2001 and 2002
¾
Best Trade Finance, 2001 and 2002
The Banker
¾
Indonesian Bank of the Year, 2001 and 2002
FinanceAsia
¾
Best Local Bank, 2001 and 2002
The Asset
¾
Best High Yield Bank Bond Deal
¾
Best Commercial Bank 2002
IFR Asia
Significant Contribution to Government
Budget Revenues
2,816
1,011
1,805
7
140
1,658
2000
(Rp Billion)
131
78
•
Employee Taxes
From:
5,924
4,585
Total Contributions
1,793
1,373
•
Dividends
4,131
3,212
Total Tax Contribution*
178
138
•
Other Taxes
3,822
2,996
•
Deposit Taxes
2002
(Rp Billion)
2001
(Rp Billion)
Year:
**Proposed for 2002 at 50% of Net Income *Excluding Corporate Taxes
THANK YOU
"These materials are not, and are not intended to be, for distribution, directly or indirectly, in or into the United States. These materials are not, and are not intended to be, an offer of securities for sale in the United States. Securities may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act of 1933) unless they are
50.3% 11.6%
12.3%
6.4%
6.1%
4.9%
3.0%
0.7%
0.3%
4.6%
47.3% 11.3%
11.1%
4.4%
6.2%
5.8%
2.9%
2.9%
0.4%
7.7%
Manufacturing Agriculture
Trading, restaurant & hotel Transportation, warehousing & communications Other services Construction
Mining Electricity, gas & water Social services Others
31 Dec 2001 31 Dec 2002
Bonds Portfolio Breakdown
Total Government Bonds as of Dec’02 : Rp 148.8tn
Hedge Bonds
11.3%
Fixed Rate Bonds
30.8% Variable
Rate Bonds 57.9%
Trading 6.2%
Held to Maturity 72.5% Available
for Sale 21.2%
(Rp86.2 Tr)
(Rp45.8 Tr) (Rp16.8 Tr)
(Rp9.3 Tr) (Rp31.6 Tr)
59.4% 5.9%
3.8%
22.5%
0.9%
1.0%
6.4%
Asset Mix
58.5%
13.5% 3.8%
16.1%
0.7%
1.8%
5.5%
Government bonds Placement with other bank Current accounts with BI Loans (net) Securities Deferred Tax Assets-net Other assets
2001 2002
Bonds Bonds
