09 02 06 BMRI Analyst Meeting

(1)

(2)

1

§

Gross NPL below 5%

§

Increased coverage of NPLs t o > 120%

§

Gross loan grow t h > 18%*

§

M ajor leap in savings deposit s t o > Rp90 t n

§

M argin improvement t o approximat ely 5.2%

§

Retain efficiency rat io < 50%

All financial milest ones achieved in 2008...

# All dat a report ed in t his present at ion are based on in-house unaudit ed numbers

(3)

2

Grow t h moment um remains robust

Q4 2007*

Q4 2008*

Change

Tot al Asset s

Rp319.1 t n

Rp358.5 t n

12.4%

Tot al Deposit s

Rp247.4 t n

Rp289.1 t n

16.9%

Low Cost Deposit s

Rp152.4 t n

Rp164.0 t n

7.7%

• Current Account s

Rp 67.0 t n

Rp 69.1 t n

3.1%

• Saving Account s

Rp 85.4 t n

Rp 95.0 t n

11.2%

Tot al Loans

Rp138.5 t n

Rp174.5 t n

25.9%

(4)

3

45.2 57.6 81.5 82.2 3.5 4.1 4.7 7.4 30.1 33.6 50.4 51.8 11.4 9.1 9.8 15.1 93.2 80.5 73.4 95.7 15.7 12.6 15.9 21.4

0

50

100

150

200

250

300

Q4 '05

Q4 '06

Q4 '07

Q4 '08

FX Tim e Deposit s Rp Tim e Deposit s FX Dem and Deposit s Rp Dem and Deposit s FX Savings Deposit s Rp Savings Deposit s

29.9 36.1 44.8 62.0 1.0 0.9 2.8 4.4 25.9 24.4 31.5 41.6 10.7 11.1 14.2 19.3 7.6 8.9 13.1 14.8 1.7 1.9 2.7 4.4

0

25

50

75

100

125

150

Q4 '05

Q4 '06

Q4 '07

Q4 '08

M icro Sm all

Cons Com m

Int 'l Corp

M aint aining moment um for grow t h

2008

R

%

34.0%

30.3%

54.3%

2.8%

0.8%

2008

R

%

63.3%

13.3%

35.4%

Loans by SBU*

(Rp Bn)

32.1%

38.4%

Deposit s by Product – Bank Only

(Rp Bn)

* Cash Collat eral Loans have been reallocat ed t o Small Business

57.5%

(5)

4

St rong and liquid balance sheet

Asset s

Amount

% of

Asset s

Liabilit ies

Amount

% of

Liab.

Cash

8,064

2.38%

Current Account

66,908

19.77%

SBI & BI Placement (net )

46,077

13.61%

Savings

89,611

26.47%

Placement w / ot her banks

(net )

21,717

6.42%

Time Deposit s (Rp)

95,693

28.27%

M arketable Securit ies (net )

1,374

0.41%

Time Deposit s (Fx)

21,354

6.31%

Government Bonds

87,772

25.93%

Total Deposit s

273,566

80.82%

Loans (Gross)

159,007

46.97%

Securit ies Issued

779

0.23%

Provisions

(11,372)

(3.36%)

Deposit s from ot her banks

5,776

1.71%

Ot her Advances (net )

7,576

2.24%

Borrow ings

8,639

2.55%

Invest ment s

3,058

0.90%

Ot her Int erest bearing

liabilit ies

2,837

0.84%

Ot her Asset s

15,235

4.50%

Non Int erest bearing liabilit ies

16,490

4.87%

Equit y

30,422

8.99%

Total

338,508

100.00%

Total

338,508

100.00%

(6)

5

Low er LDR’s, part icularly in FX, reflect liquidit y

Rupiah Loans* & LDR

FX Loans* & LDR

6

8

.1

7

3

.9

8

5

.0

8

6

.3

9

7

.5

1

0

6

.7

1

2

0

.4

40.4%

43.0%

41.4%

48.1%

52.5%

53.9%

52.4%

2005

2006

2007

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Loans (Rp t n) LDR (%)

3

1

.3

3

.8

3

7

.6

3

.4

3

4

.3

3

6

.6

3

5

.2

102.5%

131.1%

123.7%

104.4%

95.9%

111.0%

80.4%

2005

2006

2007

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Loans (Rp t n) LDR (%)

(7)

6

FX Loans

FX loan exposure contained as FX

funding

rises

(USD million)

FX Funding

1,159

1,007 1,041 1,291

1,468

1,112

1,385 1,592

1,395

1,696

1,599

1,593

1,705

1,941 356

458

501

583

823

675

677

2005 2006 2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008

Demand Deposit Time Deposit Savings

1,163

1,834

2,908

2,731 2,820

2,998

2,310 466

980

730

691 694

687

623

282

55

32

45 38

34

30

290

3

6 22

44

3

984

895

582

282 248

247

382

2005 2006 2007 Q1-2008 Q2-2008 Q3-2008 Q4-2008

Current S.M ent ion Sub St andard Doubt ful Loss

3,108

2,860

3,238

3,472

3,883

3,492

4,003

3,158

3,765

4,254

3,755

3,822

4,011

3,348

(663)

+511

(8)

Committed to Improving Shareholders Value

Reduce Cost of Funds

Improve Asset s Yield

Reduce Provision/ NPL

Reduce Cost Efficiency

Leverage on cash generat or t o

accelerat e grow t h in higher

yield business

Compet it ive,

sustainable

ret urns, w it h

above-average

rates of

grow t h

Business

St rat egy

St rat egic

(9)

Key Priorit ies in 2009 - 2010

• Increase IT

Operat ions efficiency

and cent ralized and

consolidat ed

procurement

•

Increase earning

asset s monit oring

and perfect ing

early

w arning signal

•

Consolidat ed risk and

monit oring

subsidiaries

•

Enhance employee

product ivit ies and

int ernal cult ure

•

Apply best pract ice

for recruit , ret ain and

develop

•

Implement

Business

Solut ion Excellence t o

support payment

bank st rat egy

•

Implement

Service

Excellence St rat egy

t o

support business

grow t h and services

• Apply Value Based

M anagement as t he

next st ep of

Performance Cult ure

Efficiency

Risk M anagement

Human Capital

Information Technology

Performance Culture

Support Strategy

1.

St rengt hening our

deposit franchise

, t o

become

primary payment bank

2.

Developing

high yield business

3.

Enhancing

w holesale franchise

and diversifying

w holesale t ransact ions

4.

Connect ing t he business

, leveraging synergy

5.

Non-organic grow t h &

synergy in opt imizing

subsidiaries

Business Strategies

Alliance Strategy Focus

Corporat e

§ Improving supplier net w ork and dist ribut or

- Providing basic t ransact ion and cash management

- Support ing suppliers and dist ribut ors in w orking capit al financing

§Cross sell product st o employees as cust omers:

- Payroll

- M ort gageor aut o loans

- Corporat e/ Ret ail cards

§Cross sell product sfor employee as cust omers : Payroll, mort gage, aut o loans, commercial / ret ail cards

§Developing w ealt h managementfor individual Direct or or ow ner operat ors

(10)

8,813 9,078 9,347

11,817 12,372 12,566 12,597

13,061 13,701

Dec '07 M ar '08 Jun '08 Jul '08 Aug '08 Sep '08 Oct '08 Nov '08 Dec '08

Enhancing deposit franchise, st rengt hening

ret ail payment s

1.

Est imat ed t ransact ion grow t h at 3.28% annually.

2.

E-t oll penet rat ion in t he first year est imat ed at

2%, rising t o 18% by year 10

3.

Average balance for each card is Rp 214,627/ card.

4.

Year 1 target of ~ 63,000 cards

* * E-t oll was launched on January 30, 2009

(11)

Sust ained savings & ret ail payment franchise

1

7

.9

6

2

.1

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

1

.6

5

8

.5

2

8

2

.1

6

8

9

.6

1

11.0% 11.7% 16.2% 22.8% 30.6% 22.7% 29.2% 34.6% 38.6% 40.0% 35.6% 32.8% 11.6%12.8% 15.3% 16.9% 17.5% 16.0%17.2%

18.5% 19.1%19.3%_17.9%

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

Savings Deposit s (Rp t n) As % of Tot al Deposit s

Nat ional Share of Savings Deposit s (%)

Savings Deposit Grow t h

Transact ion channel grow t h

4 9 2 .1 6 0 7 .5 6 7 7 .0 8 5 3 .4 8 9 9 .7 9 7 6 .7 1 ,0 8 8 .8 1 ,0 4 3 .4 19.6 29.3 39.07 55.00 58.76 65.9 74.71 84.70 30.81 29.79 37.37 49.59 51.04 54.48 57.09 55.80 Ot her Paym ent Transfer

Wit hdraw al/ Inquiry

Avg ATM Daily Vol (000)

1,069 3,072 6 ,9 8 8 1 1 ,4 3 5 1 5 ,8 6 4 1 6 ,8 5 7 1 9 ,1 1 6 1 5 ,8 4 0 27 679 1,016 1,086 1,722 2,988 2,784 3,029 3,464 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

Quart erly Call Cent er Trans. (000)

(12)

Enhancing deposit franchise, building on

w holesale t ransact ions

Wholesale Deposit Grow t h (CASA)

(Rp t n)

Cash M anagement Grow t h in Commercial Banking

745

2,414

4,066

2006

2007

2008

# of Cust omers

407

632

2007

2008

Tot al Transact ions (000)

24.9

23.0

34.0

36.5

0.7

0.6

12.1

14.8

19.4

21.0

1.8

2.1

2005

2006

2007

2008

Comm Savings Comm Demand Corp Savings Corp Demand

+55%

(13)

Building our high yield business

Consumer Loans

§ St rengt hen t he port folio mix, w it h emphasis on relat ively-high-yield product s such as KTA and M it ra Karya

§ Enhancing t he pricing st rat egy t o improve yield management

§ Int egrat ion of Tunas Financindo Sarana t o complement t he development of t he Consumer Finance business as a w hole .

M icro Banking

§ Expand physical dist ribut ion net w ork t hrough t he opening of 200 M BU’s and 100 new sales out let in 2009.

§ Develop product s such as refinement s of loans t o TKI, addit ional loan limit s, and micro savings product development . § Ot her st rat egic init iat ives include: set t ing

up Sales Transact ion Cont rols; review ing t he ut ilizat ion of Core Syst ems – specific t o M icro and t he implement at ion of M icro Business Risk Review ; t he implement at ion of pilot project M icro Collect ion Cent er and t he inst allat ion of handheld collect ion.

Consumer Cards

• Acquisit ion of specific segment s t hrough cross-selling funding cust omers for silver and gold low er segment , as w ell as opt imizing cross-sell pot ent ials w it h ot her consumer product s

• Increase sales volume and accelerat e t he format ion of revolving balances t hrough market ing program & usage t o silver segment

Small Business

§ Expand physical dist ribut ion net w ork (addit ional SBDCs) and enhance and develop loan

processing and business model, LOS Enhancement , and also Scoring Syst em

§ Relocat e Small Business t o Commercial Banking in order t o grow expansion in Small Business market niche

§ Refine loan processes by creat ing Credit Risk M anagement dedicat ed t o Small Business, as w ell as opt imizing t he ut ilizat ion of risk-based scoring.

§ Focus on t arget market s such as first -class funding cust omers, exist ing debt ors, t op businessmen, t op SOE’s and Privat e

(14)

532

3,055

0

3,587

Rural Banks M icro Unsecured M icro TOTAL 2 ,6 7 7 4 ,3 7 6 1,699

Q4 2007 Grow t h Q42008

4

,3

8

1

185

1

,0

9

2

143

1

158

8

6

9

6

,8

2

9

N o n -P ro g P ro g ra m C o o p s A lli a n c e s C h a n n e lin g F o o d S u ff . C a sh C o ll T O T A L 1 3 ,0 8 1 1 4 ,8 1 5 1,734

Q4 2007 Grow t h Q42008

M icro Credit s

(Rp Bn)

12.9

%

62.9%

Small Credit s

(Rp Bn)

Loan Yields

Disbursement Breakdow n (Q4 ‘08) Disbursement Breakdow n (Q4 ‘08)

12.8% 19.7%

Building our high yield businesses

1 2 ,3 2 4 1 7 ,0 4 4 4,720

Q4 2007 Grow t h Q4 2008

38.3%

Disbursement Breakdow n (Q4 ‘08)

12.7%

3,737

1,365

1,969

1,201

8,272

M ort gage Hom e Equit y Loan

Payroll Loan Ot her Tot al

(15)

Tunas Finance as one of our main t hrust s in

Consumer High Yield

Financial performance of Tunas

Finance show s improvement

•

Regulat ors have approved t he

acquisit ion of Tunas Finance:

–

On 9 December 2008, Bapepam

confirmed t hat Tunas Finance

business act ivit ies are in

compliance w it h PM K No.

84/ PM K.012/ 2006

–

On 8 January 2009, BI has issued a

let t er approving Bank M andiri t o

acquire Tunas Finance.

•

Bank M andiri has complet ed int ernal

preparat ions t o finalize acquisit ion.

•

The acquisit ion t ransact ion w ill be

closed in first week of February 2009.

•

The synergy bet ween Bank M andiri and

Tunas Finance w ill be achieved t hrough

joint financing w hich is t arget ed t o

reach Rp 2 t rillion in 2009.

Our St rat egy & int ent

Updat es and act ions going forw ard

Bank M andiri w ill ut ilize it ’s dist ribut ion

channels across Indonesia t o increase

Tunas Finance point of sales.

Bank M andiri int ends t o develop and

penet rat e t he vehicle financing segment

by st rat egic alliances t hrough cross-selling

bet ween subsidiaries, cust omers, and

business t o business collaborat ion w it h

sole dist ributors in Indonesia.

1.4%

1.9% 2.5%

5.0%

11.7%

5.0%

19.6%

31.6%

5.2%

4.5%

6.4% 6.9%

2005 2006 2007 2008

ROA ROE NIM

Financial Rat ios

(%)

Consumer Corporate

Commercial Micro & Retail

1,694.9 1,718.4

2,040.9

1,715.4

29.9

12.9

84.7

116.9

2005 2006 2007 2008 Net Financing To Cust om ers Net Profit

(16)

Diversify w holesale st rengt h into t ransact ional

banking

Total Wholesale Transact ions

Transact ion Type

Unit s

2007

2008

Grow t h

Cash M anagement

# of

t ransact ions

407,407

632,100

55.2%

FX

USD mil

28,822

37,229

29.2%

Trade Finance

IDR bil

107,710

123,456

14.6%

Remit t ances

IDR bil

1,118,432

1,427,984

27.7%

Int ernat ional

USD mil

53,325

72,409

35.8%

Local

IDR bil

617,550

638,726

3.4%

Acquire Cust omer Generat e

A/ R Produce& Dist ribut e Bill

Payment Collect ion

Reconciliat ion

& Report ing Credit Recovery

Select Suppliers

Generat e Purchase

Order

Receive Invoice

M at ch Invoice vs. Delivery M ake

Payment Clear

A/ P

Improving Cash Cycle

M it igat ing Risks

St art

End

St art

(17)

16

St rengt hening Risk M anagement & M onit oring

Syst em

Corporat e Cust omer by Rat ing

Summary of risk management init iat ives

Credit

M arket

Operat ional

•

ORM implement at ion in all unit , incl. overseas

offices & subsidiary

•

Set up Operat ional Risk Commit t ee under RCC

•

Synchronizat ion of Risk-Based Audit met hodology

w it h RCSA (ORM )

•

Implement at ion of st ress t est analysis

•

Development of derivat ive syst em (summit )

•

Enhance our Treasury policy

•

Enhance business process credit approval, CR

met hodologies & t ools (monit oring syst em)

•

Develop & enhance collect ion syst ems

•

Opt imize credit port folio management syst em

•

Consolidat e risk profile (incl. overseas offices &

subsidiaries – Credit , M arket & Operat ional)

51%

64%

68%

34%

24%

21%

15%

12%

11%

0%

20%

40%

60%

80%

100%

2006

2007

2008

High Risk (Rat ing C- G)

M edium Risk (Rat ing BBB – B)

(18)

771

3,628 304

2,112 2,300

Consumer Finance M icro & Ret ail Treasury & Int 'l Commercial Corporat e

1,017 6,632 768

2,632 2,537

Consumer Finance M icro & Ret ail Treasury & Int 'l Commercial Corporat e

December 2008

NII

Fees

Leveraging cash generat or t o accelerat e high

yield grow t h

Building Fut ure Grow t h

Engine

(

Consumer

&

M icro/ Ret ail

)

CM = Rp5.425 t rillion

Leveraging Our Cash

Generat or

(

Corporat e

&

Treasury

)

St rengt hen Emerging Business

(

Commercial Banking

)

Alliance St rat egy Focus

PoT

25.2%

23.2%

3.3%

39.8%

8.5% 138 1,176 762 127

268

December 2006

NII

Fees

PoT

10.9%

5.1%

30.8%

47.6%

5.6%

PoT

18.3%

19.4%

5.7%

48.8%

7.5% 359

2,091 903 480 420

PoT

9.9%

11.3%

21.2%

49.2%

(19)

149

350

347

418

416

427

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

319

791

897

1,128

1,259 1,275

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

Rp Billion

Consumer Loans

(10 t op corporat e client s)

Plant at ion Small & M icro Lending

Rp Billion

1,616

1,620

1,796

1,869

2,007

Q4'07

Q1 '08

Q2 '08

Q3'08

Q4'08

Corporat e Card Holders

(10 t o corporat e client s)

Leveraging cash generat or t o accelerat e high

yield grow t h

(20)

2010: t o be a

Dominant M ult i-Specialist Bank

and considered as a Regional Champion Bank

WHAT IT MEANS ?

§

No.1 or No. 2 in each segment is t he focus

§

M arket Capit alizat ion comparable w it h banks in Sout h

east Asia

§

Target ing higher revenue grow t h above compet it ors

and market .

§

Increase market share significant ly in micro, small

business and consumer finance segment s.

§

Select

key priorit ies

t o each segment appropriat e t o

it s

revenue pool.

§

Act ive in

int ernat ional banking

, along w it h t he

act ivit ies of

t rade

&

w orkers

(TKI).

WHAT IT DOES NOT MEAN ?

§

Aggressive

Int ernat ional presence

.

§

M e t oo st rat egy

, t arget ing t he same market segment s

as compet it ion.

§

Drive business grow t h aggressively w it hout

considerat ion of revenue grow t h or profit abilit y.

“DOMINANT”

Target ing 20%-30% market share

of revenue of each segment .

“MULTI-SPECIALIST”

Having a

dist inct ive st rat egy

in

each segment w hich different iat e

w it h compet it ors.

“REGIONAL PLAYER”

Becoming

blue-chip corporat e in

Asia Pacific

“MOST PREFERRED”

Providing

value proposit ion

t o t he

segment we are focusing.

(21)

Indonesia Economic Out look 2009

•

Inflation to decline to 6.8% in 2009

•

Economic growth is expected to slow to 4.8% in 2009

•

Private spending and investment growth to decelerate

•

Low dependence on export and weaker import would lessen the external impact

•

Rupiah trading at Rp11,302/US$ at the end of 2009

•

Fiscal stimulus would help to support the economy

(22)

21

For Additional Information:

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

Or Contact:

Sukoriyanto Saputro

Corporate Secretary

Tel: (6221) 524 5299

Fax: (6221) 5296 4024

Jonathan Zax

Head of Investor Relations

Tel: (6221) 3002-3171

Fax: (6221) 5290 4249

E-mail: ir@bankmandiri.co.id

PT Bank M andiri (Persero) Tbk

Plaza M andiri

Jl. Jend. Gat ot Subrot o Kav. 36-38

Jakart a 12190