PT Bank Mandiri (Persero) Tbk · IDX:BMRI

PT Bank Mandiri (Persero) Tbk — Q4 2006 Earnings Presentation

93 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, March 2007

  1. Slide 1: Q4 2006 Results Presentation

    PT Bank Mandiri (Persero) Tbk Q4 2006 Results Presentation 0

  2. Slide 2: Bank Mandiri Presentation Contents

    Bank Mandiri Presentation Contents Results Results Overview Overview Page Page ## „ FY „ FY Financial Financial Highlights Highlights 22 „ Quarterly „ Quarterly Loan Loan Growth Growth && LDR LDR 33 „ Quarterly „ Quarterly Funding Funding Mix Mix 44 „ Quarterly „ Quarterly Savings Savings Deposits D

  3. Slide 3: Key Financial Highlights

    Key Financial Highlights Bank Mandiri’s Full Year Performance for 2006 demonstrated marked improvements in a number of key indicators: Organization Structure FY 2005 FY 2006 Loans Rp106.7 tn Rp117.7 tn 10.3% NIM 4.1% 4.7% 14.6% Efficiency 55.6% 48.9% 12.1% Net NPL 15.3% 5.9% 61.4% Earnings After Tax

  4. Slide 4: Loan volume grew Q-o-Q in all segments but Commercial

    Loan volume grew Q-o-Q in all segments but Commercial Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only 57.2% Corporate Loans (Rp tn) 53.7% 44.0 44.7 53.6 42.3 45.2 40.2 40.6 LDR (%) 38.2 39.5 51.8% 42.5% Commercial 37.7 35.7 32.9 35.4% 35.1 32.6 31.4 33.0 25.3% 22.2 22.6

  5. Slide 5: Rupiah Savings rose 23.7% in Q4 while Time Deposits fell 6.1%

    Rupiah Savings rose 23.7% in Q4 while Time Deposits fell 6.1% Deposit Analysis – Bank Only Retail Deposits (%) Low-Cost Deposits (%) 200 15.7 12.6 180 15.9 15.1 13.4 23.4 21.5 80.5 93.2 17.8 20.6 20.6 19.4 18.6 13.3 16.3 18.0 17.3 90.8 89.1 85.7 16.5 13.8 12.5 11.6 105.1 106.9 160 11.1 107.7 106.1 9

  6. Slide 6: Savings deposit volume surged by Rp11.0 tn in Q4

    Savings deposit volume surged by Rp11.0 tn in Q4 Savings Deposit Growth Average Quarterly Deposit Costs (%) Savings Deposits (Rp tn) 17.1% Rp DD As % of Total Deposits National Share of Savings Deposits (%) Rp Savings 17.0% 13.9% Rp TD 1 Mo. SBIs 11.9% 13.1% 10.4% SBI 8.5% 11.4% 10.6% 9.9% TD 9.5% 8

  7. Slide 7: Retail Funding & Transactional Fee Income

    Retail Funding & Transactional Fee Income “Optimizing Strong Network & Customer Base” ƒ Individual (Mass & Mass Affluent) ƒ Small & Micro businesses Key Key Target Target ƒ High Net-worth Individual (Wealth) Market Market ƒ Employee of Corporate & Commercial Customers ƒ Enhance network capability an

  8. Slide 8: ATM functionality and convenience continues to build

    ATM functionality and convenience continues to build ATM Functionality Overview Recently Added Features ATM Functionality Overview ƒ Insurance Payment (Sinar Share Network Mas, Eka Life, Astra Bank Transfer CMG) Purchases ƒ Installment Payment Tuition Fee Exchange Rate (Columbia, OTO Multi Payment I

  9. Slide 9: ATM transfer and payment transactions continue to grow

    8 99.7 272.2 Q4 '06 92.6 285.0 Q3 '06 81.5 256.2 Q2 '06 75.3 242.0 Q1 '06 43.9 234.4 Q4 '05 ATM transfer and payment transactions continue to grow 62.3 218.7 Q3 '05 ATM Average Daily Transaction Value 53.2 201.6 Q2 '05 46.1 186.8 Q1 '05 37.7 176.2 Q4 '04 29.2 146.8 Q3 '04 20.1 113.2 Q2 '04 17.2 95.6

  10. Slide 10: Growth in other channels shows the strength of our franchise

    Growth in other channels shows the strength of our franchise Users for Other e-Banking Services Average Daily Transactions for SMS & Call Centers 5,752 11,435 Debit Cards Issued* (000) SMS Trans. (000) SMS Subs. (000) 5,024 Call Center Trans. (000) Internet Bank. Subs. (000) 4,429 8,233 3,772 6,988

  11. Slide 11: Quarterly Margins reach 4.9% on declining Cost of Funds

    10 11.0% 6.4% 4.6% 4.9% Q4 '06 11.4%11.6% 7.3% 4.3% 4.6% Q3 '06 7.8% 7.6% 3.8% 4.1% Q2 '06 Quarterly Margins reach 4.9% on declining Cost of Funds 11.8% 4.1% 4.2% Q1 '06 10.7% 7.3% 3.4% 3.6% Q4 '05 9.4% 5.7% 3.7% 3.8% Q3 '05 8.2% 4.6% 4.8% 4.6% 4.8% 3.4% 3.6% Q2 '05 8.9% 8.7% 4.1% 4.3% Q1 '05 4.1% 4

  12. Slide 12: Full Year Average Cost to Income Ratio dropped to 48.8%

    Full Year Average Cost to Income Ratio dropped to 48.8% Quarterly Consolidated Operating Expenses & CIR Breakdown of Q4 2005 & 2006 Operating Expenses 83.3% Change Q4 ‘05 Q4 ‘06 CIR* (%) (Y-o-Y) Annual Avg CIR (%) Personnel Expenses 57.6% 54.3% Base Salary 260,771 249,619 (4.3%) Other Allowances 463

  13. Slide 13: Q4 2006 Loan Movement, PL & NPL

    Q4 2006 Loan Movement, PL & NPL Performing Loan Movements (Rp bn) - Bank Only Non-Performing Loan Movements (Rp bn) – Bank Only 352 90,702 12,615 2,244 74,605 6,078 26,248 6,078 423 1,332 2,244 2,196 632 18,677 Beg. U/ G f rom D/ G t o NPL Net FX Impact End Beg. U/G to PL D/G from Disburse. Collecti

  14. Slide 14: Provisioning coverage reflects BI requirements

    13 50% 40% 30% 20% 10% 0% 15.5% 16,966 Q4 '06 10,991 Q3 '06 12,175 Q2 '06 12.9% 12,086 Q1 '06 2 - Special Mention Loans (Rp Bn) 12,912 Q4 '05 16,423 Q3 '05 14,394 Q2 '05 12,352 Q1 '05 Category 2 Loans – Bank Only 9.4% Cat 2 % 8,334 Q4 '04 9,852 Q3 '04 9,912 Q2 '04 15.0% 10,621 Q1 '04 Provisioning co

  15. Slide 15: NPL, Provisioning & Collateral Details – Bank Only

    NPL, Provisioning & Collateral Details – Bank Only Non-Performing Loans by Segment Collateral Valuation Details NPLs Q4U NPLs Collectibility 1 2 3 4 5 (Rp tn) (Rp tn) (%) Total Cash Corporate 10.31 (6.13) 19.24% Prov. (Rp bn) 767 1,266 500 202 11,349 Commercial 6.99 (1.15) 21.47% % Cash Provisions 1

  16. Slide 16: Quarterly Analysis of Upgrades and Downgrades

    Quarterly Analysis of Upgrades and Downgrades* Total Corporate, Commercial & Small Business Loans Q4 2006 Net Upgrades/Downgrades# Details Q4 ‘06 UG Loan Q2 Q3 Q4 Q1 Q2 Q3 Q4 DG to Balance to Background 2005 2005 2005 2006 2006 2006 2006 NPL (Rp bn) PL Restructured 20,137.4 10.0 4.5 2.9 0.8 0.4 0.6

  17. Slide 17: 2006 core earnings up 28.9% from 2005 to a record high

    2006 core earnings up 28.9% from 2005 to a record high Core Earnings Profit After Tax & ROE IDR bn RoE - After Tax 8,000 Gain on Sale/Value of Securities (Annualized) FX Gain 26.2% Core Earnings 23.6% 21.5% 22.8% 1,651 7,000 2,072 247 775 Pre-Provision Operating Profit 6,000 402 380 819 1,408 5,000

  18. Slide 18: Progress on Selected Top Debtors

    Progress on Selected Top Debtors ƒ The agreement to restructure the syndicated loans of 3 companies within the group (“Riau Complex”) was concluded on 19 October 2006, with the total facilities of USD 1.43 billion as of 30 September 2006 (Bank Mandiri’s portion was USD 589.93 million). ƒ The loan re

  19. Slide 19: Progress on Selected Top Debtors

    Progress on Selected Top Debtors ƒ The obligor has submitted a proposal to resolve all of its NPLs through refinancing from other creditors. This process is expected to finalized by the first semester of 2007. Domba Domba Mas Mas ƒ The obligor has already repaid, through refinancing, loans to 4 comp

  20. Slide 20: Progress on Selected Top Debtors

    Progress on Selected Top Debtors ƒ This syndicated loan facility includes BNI and BRI, with BM’s portion of ± Rp387 billion (± 51%). Pupuk Pupuk Iskandar Iskandar ƒ The loan has been restructured since September 2006 and debtor has properly fulfilled its Muda Muda obligations. ƒ This obligor consist

  21. Slide 21: Progress on Selected Top Debtors

    Progress on Selected Top Debtors ƒ 5 subsidiaries of the Pacific Andes group secured loans of ~USD 91.99 million (as of 30 September 2006), of which 4 have repaid loans of USD 87.2 million. Pacific Pacific Andes Andes ƒ PT Sun Hope Investment, with outstanding loans of USD 4.8 million, will repay pr

  22. Slide 22: Shareholder approval to implement PP No.33/2006 and PMK 87/2006

    On Dec 22, 2006, Bank Mandiri obtained the shareholder approval to implement PP No.33/2006 and PMK 87/2006 to resolve its NPLs EGM Resolutions provide authority to act under PP No.33/2006 & PMK 87/2006 Proposed Resolution Shareholder Position • Agreed to the proposed resolution Agreement for Bank th

  23. Slide 23: Oversight Committee to support implementation of PPKM Mandiri

    Need to achieve a common understanding among the different stakeholders through the Oversight Committee to support the implementation of PPKM Mandiri Government via a joint Ministerial Decree (SKB No. 121/KMK.01/2007 & No. KEP- 19/MBU/2007) has formed the Monitoring Team to oversee restructuring of

  24. Slide 24: The first step will entail an NPL Historical Review

    The first step will entail an NPL Historical Review … Collateral Sales 1. 1. Desktop Desktop 2. 2. NPL NPL 3. NPL Resolution Litigation • Restructuring Settlement Analysis Analysis Selection Selection • Non-Restructuring PPKM Mandiri 2007 I. NPL Historical Review II. NPL Disposal Process If the Revi

  25. Slide 25: Long Term Vision To Be The Dominant Multi-specialist Bank

    Long Term Vision To Be The Dominant Multi-specialist Bank Dominant Multi-specialist Bank Model Dominant Dominant Bank Bank in in Indonesia, Indonesia, with with 20-30% 20-30% market market share share of of revenue revenue across across all all segments, segments, with with distinctive distinctive s

  26. Slide 26: Leveraging leadership in cash generating business

    Leveraging leadership in cash generating business to build emerging and future growth engines Consumer Finance & Micro/Retail Corporate & Banking Treasury 11 Building Future Growth Engine Leveraging on Our Cash Optimizing Optimizing Synergies Synergies Generator 33 Across Across Business Business Un

  27. Slide 27: Each Strategic Business Unit generated profit in 2006

    Each Strategic Business Unit generated profit in 2006 SBU 2006 Earnings before Tax (Unaudited) Rp billion 218 938 1,198 3,463 1,742 2,748 2,115 Corporate Commercial Micro&Retail TRS Cons. Fin Others incl. Profit Before SAM Tax Passion to Serve, Passion to Perform 26

  28. Slide 28: Leveraging corporate leadership to build retail and consumer

    Leveraging corporate leadership to build retail and consumer Micro & Y-T-D December 2006 Corporate Treasury Commercial Cons.Fin Others Total Retail Spread 793 660 1,022 681 194 21,751 25,100 Asset Provision 130 (62) 64 214 219 2,845 3,409 Revenue Net Revenue 663 722 958 467 (25) 18,906 21,691 Spread

  29. Slide 29: Diversifying value centers and building dominant position in key growth areas

    Diversifying value centers and building dominant position in key growth areas Key Key Thrusts Thrusts in in 2007 2007 Retail Retail Funding Funding & & Building a strong low cost deposit and Transactional Transactional Fee Fee transactional platform franchise to match key Retain leadership and grow

  30. Slide 30: Implementation of Strategic Business Unit Base Organization

    Implementation of Strategic Business Unit Base Organization Key Principle Changes Organization Structure 1. Establishment of 6 Strategic Business Units (SBU) : Board of Commissioners Corporate, Treasury & International, Commercial, Audit Committee Risk Policy Committee President Director & CEO Consu

  31. Slide 31: Corporate & Financial Institution Fee Income

    Corporate & Financial Institution Fee Income “Integrated One-Stop Services” ƒ Large Private and Listed Corporation Key Key Target Target ƒ State-Owned Enterprises and Government Institution Market Market ƒ MNCs ƒ Bank, Insurance and Securities ƒ Implement Client Services Team’s (CST) for major clien

  32. Slide 32: Client Services Team Program and Alliance Program

    Reflected in Client Services Team (CST) Program and Alliance Program, Especially for Large Corporate Clients “ A One-way Integrated Approach – CST” “ Alliance Focusing in Value Chain Business” Cross sell products Actively leverage the to the employees as supplier and distributor well as customers ne

  33. Slide 33: Supported by Mandiri Securities' Capital Market Capabilities

    Supported by Mandiri Securities’ Capital Market Capabilities Top 10 Local Broker Dec 2006 (Ytd) TOP 10 SUN & Corporate Obligation Transaction (excluding Banks) Transaction Market December 2006 (Ytd) No Broker Value Share Transaction Market (Rp million) No Securities Volume Share % * 1 Danareksa Seku

  34. Slide 34: Loan Target to Infrastructure Sector in 2007

    Loan Target to Infrastructure Sector in 2007 Corporate Commercial Rp Billion Rp Billion 798 2,050 6,047 921 135 215 10 2 45 2,143 1,593 1,865 Agri- Energy Toll roads Telco Maritime Total Agri- Energy Toll roads Dam Total Telco culture & Airports Industry culture & Airports Develop ment Passion to Se

  35. Slide 35: Commercial Asset & Liabilities

    Commercial Asset & Liabilities “Value-Chain Financing and Tapping into Regional Autonomy” ƒ Top players in attractive sectors: Retail, Wholesale, Multi-finance, Food & Beverages, Manufacturing, Energy & Mining, Construction and Plantation Key Key Target Target ƒ Top players in 5 top regions (Jakarta

  36. Slide 36: Improve Proactive Sales & Marketing

    Improve Proactive Sales & Marketing CBC Manager/ CBC Relationship Manager coordinates all Sales Team CBC Manager/ CBC Relationship Manager • develop target client • develop marketing plan strategy • decide on objectives • discuss with for new/existing clients JCS/RCS Group Head • client visit on loa

  37. Slide 37: Value Chain Financing Business Model

    Value Chain Financing Business Model As A Key Strategy in Developing Commercial Business Sosro PT Panamas Wijaya Karya Sign MOU/ Initiate Develop Approve Socialize Sell Monitor Prospecting Formal Contact Scheme Scheme Scheme Scheme Progress Agreement • Shortlisted • Met with • Working cap • Approved

  38. Slide 38: Corporate and Commercial customer base will attract Retail segment

    Corporate and Commercial customer base will attract product and transactional services for Retail segment • Actively leverage the supplier and • Cross sell products to the Corporate distributor network employees as well as – Provide basic transaction and customers cash management service – Payroll a

  39. Slide 39: Consumer Finance: Aggressive Growth Through Cross-Sell, Alliance & Acquisition

    Consumer Finance: “Aggressive Growth Through Cross-Sell, Alliance & Acquisition” Loans Cards ƒ Cross-selling to existing funding customers ƒ Cross-selling to existing funding Key Key Target Target (>6mio) customers (>6mio) Market Market ƒ Corporate & commercial customer’s employees ƒ Potential young

  40. Slide 40: Consumer lending rose 9.3% Y-o-Y and 5.1% in Q4

    Consumer lending rose 9.3% Y-o-Y and 5.1% in Q4 Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type 14,000 Other Growth (%) Cash Collateral Loans Loan Type 12,000 Credit Cards Y-o-Y Q-o-Q 1,544 1,293 Payroll Loans 959 1,231 2,165 876 1,241 1,996 888 1,367 1,930 Home Equity Loans Ot

  41. Slide 41: Introducing programs to increase revolving balance in cards

    Introducing programs to increase revolving balance in cards Example: Everyday Mandiri MasterCard Have acceptance How to How to activate activate and discount young adults? young adults? programs in ... Supermarket purchases Clothing Electronics/computer Restaurant dining How to How to retain retain

  42. Slide 42: Improve service and strengthen Point-Of-Sale presence

    Improve service and strengthen position of Point-Of-Sale presence Bank Mandiri Main Competitor Most convenient mortgage Current Situation: Product • Innovative products that • About 4-5% revenue are perceived to be more share in consumer affordable loan, with about 10% Service (hard) share in mortga

  43. Slide 43: 2007 Major Goals

    2007 Major Goals ƒ Gross NPL below 10% and Net NPL below 5% ƒ Fulfill all criteria to be considered an anchor bank (consolidator bank) as of the end of 2007 ƒ ROE improvement to above 13% (envisioned a normalized ROE of above 18% starting from 2008) ƒ Gross loan growth of more than Rp 20 trillion or

  44. Slide 44: Key Quarterly Balance Sheet Items & Financial Ratios

    Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % FY 2005 Q3 2006 FY 2006 YoY Change (%) Gross Loans 106,693 108,796 117,671 10.3 Government Bonds 92,056 90,957 90,648 (1.5) Total Assets 263,383 253,713 267,517 1.6 Customer Deposits 206,289 194,473 205,708 (0.3) Total Equity 23,21

  45. Slide 45: Summary P&L Information – FY 2005 vs. FY 2006

    Summary P&L Information – FY 2005 vs. FY 2006 FY 2005 FY 2006 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 20,999 8.2 26,261 10.2 25.1 Interest Expense (12,044) (4.7) (15,916) (6.2) 32.1 Net Interest Income 8,955 3.5 10,345 4.0 15.5 Other Operating Income

  46. Slide 46: Total assets rose by 1.6% Y-o-Y and 5.4% Q-o-Q

    45 As a % of Total Interest Income 46.9% 41.0% 59.2 117.7 90.6 Q4 '06 44.1% 42.8% 54.0 108.8 91.0 Q3 '06 47.1% 40.6% 55.1 107.8 92.3 Q2 '06 57.6 105.1 92.2 Q1 '06 40.9% 50.0% 64.5 106.9 92.1 Q4 '05 Total assets rose by 1.6% Y-o-Y and 5.4% Q-o-Q 51.4 106.9 92.3 Q3 '05 Other Assets 41.4% 50.6% 60.2 10

  47. Slide 47: Recap Bond sales of Rp400 bn from VR Trading Portfolio

    Recap Bond sales of Rp400 bn from VR Trading Portfolio At Fair Value, Dec. Trading AFS HTM 2006 (Rp tn) (Mark to Market#) (Nominal Value) Total % of Total (Mark to Market*) Fixed Rate 0.78 2.02 1.35 4.15 4.6% Variable Rate 0.05 26.70 59.75 86.50 95.4% Hedge Bonds - - - - - Total 0.83 28.72 61.10 90.

  48. Slide 48: Quarterly Margin Analysis by Currency

    47 4.0% 5.1% 5.3% 1.2% Q4 '06 Avg USD 1Mo SIBOR 0.9% Q3 '06 1.6% Q2 '06 Avg Bond Yield Avg Loan Yield -0.8% Q1 '06 -0.2% Q4 '05 Avg Spread Q3 '05 Avg COF 0.1% 1.3% Q2 '05 Quarterly Foreign Currency Margins 2.5% Q1 '05 7.3% 3.5% 3.4% Q4 '04 2.9% Q3 '04 3.0% Q2 '04 2.2% Q1 '04 5.6% 1.4% Q4 '03 3.1% Q3

  49. Slide 49: Non-loan Related Fees & Commissions jump on L/Cs

    Non-loan Related Fees & Commissions jump on L/Cs Non-loan related fees & commissions Details of Q4 2005 & 2006 Credit Cards % of Operating Income* Non-Loan Transfer, Coll., Clearing & Bank Ref. Q4 Q4 Y-o-Y Opening L/C & Bank Guarantees Related Fees & Fee from Subsidiaries Commissions 2005 2006 U Oth

  50. Slide 50: CAR rose to 25.3% on a 1.0% increase in capital

    49 25.3% 112.2 28.4 Q4 '06 110.4 28.1 Q3 '06 25.1% 110.7 27.8 Q2 '06 110.7 27.9 Q1 '06 23.7% 115.9 27.4 Q4 '05 117.5 27.8 Q3 '05 23.7% 115.9 27.5 Q2 '05 CAR rose to 25.3% on a 1.0% increase in capital 114.1 30.4 Q1 '05 25.3% 108.9 27.5 Q4 '04 102.3 27.2 Q3 '04 27.5% Total Capital (Rp tn) 96.2 26.5 Q

  51. Slide 51: Additional Factors

    Additional Factors ƒ Aggregate of IDR 24.76 tn (US$ 2.75 bn) in written-off loans as of end- December 2006, with significant recoveries on-going: ¾ 2001: IDR 2.0 tn ¾ 2002: IDR 1.1 tn ¾ 2003: IDR 1.2 tn Written-off Written-off ¾ 2004: IDR 1.08 tn Loans Loans ¾ 2005: IDR 0.818 tn (US$ 83.2 mn) ¾ Q1 ’

  52. Slide 52: Summary Quarterly Balance Sheet: Q4 '05 – Q4 '06

    Summary Quarterly Balance Sheet: Q4 ‘05 – Q4 ‘06 Q4 ‘05 Q1 ‘06 Q2 ‘06 Q3 ‘06 Q4 ‘06 Y-o-Y Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# % Change Total Assets 263.4 254.9 255.3 253.7 267.5 29.7 1.6 Cash 2.5 3.3 3.0 3.3 4.0 0.4 58.6 Current Accounts w/BI 20.3 22.2 20.2 19.5 21.6 2.4 6.3 Certificat

  53. Slide 53: Summary P&L Information – Q4 2006

    Summary P&L Information – Q4 2006 Q-o-Q Q4 2005 Q3 2006 Q4 2006 Change % of % of Rp % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets* (Billions) Av.Assets (%) Interest Income 6,023 9.4 6,561 10.3 6,434 9.9 (1.9) Interest Expense (3,952) (6.2) (3,934) (6.2) (3,566) (5.5) (9.4) Net Interest Incom

  54. Slide 54: Recap Bond Portfolio Details, 31 December 2006

    Recap Bond Portfolio Details, 31 December 2006 – Bank Only Nominal Fair Value Series Maturity Date Interest Mark to Trading AFS HTM Trading AFS HTM Fixed Rate FR0002 15-Jun-09 14.00% 68 111.34 76 FR0013 15-Sep-10 15.43% 30,000 119.07 35,720 FR0010 15-Mar-10 13.15% 1,350,000 100.00 1,350,000 FR0014 1

  55. Slide 55: Bank Mandiri Credit Ratings

    Bank Mandiri Credit Ratings S&P Moody’s Fitch Pefindo Bank Mandiri Ratings Long Term Foreign Currency Outlook Stable Positive Positive Long Term Bank Deposits B2 Long Term Foreign Currency Debt BB- WR BB- Short Term Outlook Stable Short Term Foreign Currency Debt B NP B Subordinated Debt B1 B+ Indiv

  56. Slide 56: Corporate Actions

    Corporate Actions ƒ Dividend Payment of Rp14.853 per share ƒ Schedule : Dividend a. Cum Date : June 14, 2006 Dividend Payment Payment b. Ex Date : June 15, 2006 c. Payment Date : June 30, 2006 ƒ Total Dividend payments for 2005 = Rp301,684,655,575.70 55

  57. Slide 57: Regulations on Asset Classification: PBI No. 7/2/PBI/2005

    Regulations on Asset Classification: PBI No. 7/2/PBI/2005) Classification by Payment History Previously Current No change to BI Prov. Req. Category 1 - Current Current Current 1% Classification Classification Category 2 – Special Mention 1 – 90 days 1 – 90 days 5% by by Aging Aging ofof Category 3 –

  58. Slide 58: Accounting for Interest, Provisions and Collateral

    Accounting for Interest, Provisions and Collateral Classification Regular Loans Restructured Loans IBRA Loans Cat. 1 - Current Accrual Basis Accrual Basis Cash Basis Recognition Recognition of of Cat. 2 – Special Mention Accrual Basis Cash Basis Cash Basis Interest Interest Income Income Cat. 3 – Su

  59. Slide 59: Q4 2006 Movement in Category 1 and 2 Loans

    Q4 2006 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 261 73,736 10,130 63,614 126 1,977 1,844 512 91 16,966 2,485 10,991 1,977 1,844 5,566 2,118 Beg. Bal. D/G to 2 U/ G from D/G to U/G from Net FX End Bal. Beg. Bal. Ca

  60. Slide 60: Quarterly Analysis of NPL and PL changes

    Quarterly Analysis of NPL and PL changes Q3 2005# Q4 2005# Q1 2006# Q2 2006# Q3 2006# Q4 2006# Loan Background Net Net Net Net Net Value (Rp bn) DG to NPL UG to PL Net Corporate Loans Restructured 5.7% 1.1% 0.8% 0.4% - 15,174 3.8 16.6% 12.8% IBRA 0.9% 5.2% - 3.8% 0.5% 2,476 - 70.8% 70.8% Pre-Merger

  61. Slide 61: Q4 2006 Loan Detail: Collectibility by Business Unit

    Q4 2006 Loan Detail: Collectibility by Business Unit Loan Profile: Q4 Collectibility (%) by BU - Bank Only Loan Profile: Q4 Collectibility (Rp bn) by BU - Bank Only 55,000 5.5% 6.6% 0.9%2.6% 0.6% 17.0% 3.3% 0.4%0.6% 18.6% 1.3% 50,000 11.5% 15.4% 0.2% 2.1% 0.6% 45,000 2.2% 20.5% 9.1% 40,000 19.9% 5 3

  62. Slide 62: NPL Loan Detail: Quarterly by Interest Days Past Due

    NPL Loan Detail*: Quarterly by Interest Days Past Due Quarterly Downgrades to NPL & Interest DPD - Bank Only Quarterly NPL Stock & Interest DPD - Bank Only Rp tn 12,000 75.0% 30,000 60.0% Rp Value 60% Current (%) 65.5% Rp Value <30 Days (%) Current (%) 51.3% 51.9% 10,000 <30 Days (%) 62.5% 25,000 50

  63. Slide 63: Rp5,232 bn in loans were restructured in Q4 '06

    Rp5,232 bn in loans were restructured in Q4 ’06 Restructured Loan Movement 1999 - 2006 Loans by Restructuring Type in Q4 2006 Others# IDR bn Write-Offs Repayments Restructuring B alance Maturity extension 58% Additional loans 2% LT loans w/convert. option 7% Maturity 10,583 27,423 25,123 29,542 23,9

  64. Slide 64: Loan Portfolio Sector Analysis, Q4 2006

    Loan Portfolio Sector Analysis, Q4 2006 Mfg-F&B Agri Mfg-Oth 10.5% Mfg-Oth Agri 11.3% Trading-Oth 7.9% Trading-Oth Constr Mfg-F&B Constr 11.5% Mfg-Chem 7.7% Mining Mfg-Chem 7.6% Mfg-P&P Other Mfg-Text 10.3% Mining Bus Serv 7.4% Trading-Ret 4.2% Trans 4.3% Trans Trading-Ret Mfg-P&P 4.5% 6.5% Bus Serv

  65. Slide 65: Q4 2006 Loan Detail: Downgrades to NPL

    Q4 2006 Loan Detail*: Downgrades to NPL Loan Profile: Q3 Downgrades to NPL (Rp 1,644 bn) - Bank Only Corporate, Commercial & Small 100% Other Small Oth<5% Other Business loans downgraded to NPL in Q4 totaled Rp 1,644 billion (1.5% of 90% Trading-Ret total loans). Of these loans: Constr 80% Mfg-Text

  66. Slide 66: Q4 2006 Loan Detail: Non-Performing Loans

    Q4 2006 Loan Detail*: Non-Performing Loans Loan Profile: Q4 NPLs (Rp 17,960 bn) Bank Only Corporate, Commercial & Small 100% Program Business NPLs totaled Rp17,960 billion in Other Synd Q3, or 16.4% of total loans. Of these L/C 90% Oth<5% Export NPLs in Q4: „ 22.1% remain current on interest 80% Bus

  67. Slide 67: Q4 2006 Loan Detail: New Downgrades to Category 2

    Q4 2006 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q4 Downgrades to Cat. 2 loans (Rp 1,283 bn) - Bank Only Rp 1,283 billion (1.2% of total loans) in 100% Other Corporate, Commercial & Small 61+ Other 31-60 Export Business loans were downgraded to Oth<5% Restr 90% Small Category 2 in Q4

  68. Slide 68: Q4 2006 Loan Detail: Category 2 Loans

    Q4 2006 Loan Detail*: Category 2 Loans Loan Profile: Q4 Category 2 Loans (Rp 14,623 bn) Bank Only Rp 14,623 billion (13.4% of total loans) 100% Other in Corporate, Commercial & Small Small Oth<5% Other Business loans were in Category 2 in 61+ IBRA 90% Trans Q4. Of these Special Mention loans in Comm

  69. Slide 69: Q4 2006 Loan Detail: Upgrades to PL

    Q4 2006 Loan Detail*: Upgrades to PL Loan Profile: Q4 Upgrades to PL (Rp 5,974 bn) - Bank Only Corporate, Commercial & Small 100% Small Business loans upgraded to PL in Q4 Other Oth<5% Comm totaled Rp 5,974 billion (5.5% of total Agri 90% Post-merger loans). Of these loans: IDR Mfg-Chem Purpose 80%

  70. Slide 70: Q4 2006 Loan Detail: Performing Loans

    Q4 2006 Loan Detail*: Performing Loans Loan Profile: Q4 Performing Loans (Rp 76,852 bn) Bank Only Rp 76,852 billion (70.3% of total loans) 100% Other in Corporate, Commercial & Small Other Synd Small Business loans were performing in Q4. 90% Oth<5% Export 2 Of these performing loans in Q4: LC USD „

  71. Slide 71: Q4 2006 Loan Detail: Restructured Loans

    Q4 2006 Loan Detail*: Restructured Loans Loan Profile: Q4 Restructured Loans (Rp 20,286 bn) Bank Only Of the remaining Rp 20,286 billion in 100% Program Small restructured Corporate, Commercial Oth<5% Synd 90% & Small Business loans in Q4, or 18.5% Comm 5 Trading of total loans: Export „ 63.7% are p

  72. Slide 72: Q4 2006 Loan Detail: IBRA Loans

    Q4 2006 Loan Detail*: IBRA Loans Loan Profile: Q4 IBRA Loans (Rp 2,964 bn) Bank Only Rp 2,964 billion in loans purchased 100% Oth<5% Program from IBRA remain on the books as of Mfg-NonM Comm 90% 5 IDR WC Q4, accounting for 2.7% of total loans: Mfg-Text PL NC „ 84.0% are performing 80% Mfg-Oth „ 22.2

  73. Slide 73: Q4 2006 Loan Detail: Corporate Loans

    Q4 2006 Loan Detail: Corporate Loans Loan Profile: Q4 Corporate Loans Only (Rp 53,613 bn) Bank Only Rp 53,613 billion in loans were in the 100% Other Corporate portfolio in Q4, or 49.0% of Other Export IBRA total loans. Of the Corporate Loans in 90% 5 61+ Oth<5% Q4: Synd L/C 80% 3 1 Day „ 80.8% are

  74. Slide 74: Q4 2006 Loan Detail: Commercial Loans

    Q4 2006 Loan Detail: Commercial Loans Loan Profile: Q4 Commercial Loans* Only (Rp 32,564 bn) Bank Only Rp 32,564 billion in loans were in the 100% Other PL UG Commercial portfolio in Q4, or 29.8% Export Other 90% 5 61+ of total loans. Of the Commercial Oth<5% USD Loans in Q4: Restr 80% 43 „ 78.5% ar

  75. Slide 75: Q4 2006 Loan Detail: Small Business Loans

    Q4 2006 Loan Detail: Small Business Loans* Loan Profile: Q4 Small Business Loans* Only (Rp 8,636 bn) Bank Only Rp 8,636 billion in loans were in the 100% USD Other Pre-merger PL UG 5 Small Business portfolio in Q4, or 7.9% Oth<5% Program Restr 4 of total loans. Of the Small Business 90% 61+ 2 Bus Se

  76. Slide 76: Q4 2006 Loan Detail: Rupiah Loans

    Q4 2006 Loan Detail*: Rupiah Loans Loan Profile: Q4 Loans (Rp 60,936 bn) Bank Only Rp 60,936 billion in loans were Rupiah 100% PL UG Other Other denominated in Q4, or 55.7% of total 5 61+ Oth<5% Small 90% Export loans. Of the Rupiah Loans in Q4: 34 31-60 Mfg-Chem Restr „ 84.6% are performing loans w

  77. Slide 77: Q4 2006 Loan Detail: Foreign Currency Loans

    Q4 2006 Loan Detail*: Foreign Currency Loans Loan Profile: Q4 FX Loans (Rp 33,877 bn) Bank Only Rp 33,877 billion in loans were foreign 100% PL UG currency denominated in Q4, or 31.0% Export Other of total loans. Of the FX Loans in Q4: Oth<5% Comm 90% 61+ IBRA 5 Synd „ 74.7% are performing loans wit

  78. Slide 78: Cards issued reached 873k, with Q4 transactions of Rp915 bn

    Cards issued reached 873k, with Q4 transactions of Rp915 bn Mandiri Visa Card Holders and EOQ Receivables Visa Card Quarterly Sales by Type of Transaction (Rp Billion) 872.5 Transfer Balance Receivables (Rp Bn) Cash Advance 11 784.1 Cards (000s) 752.4 Retail 68 709.4 3 650.7 72 Transferred from GE 1

  79. Slide 79: Credit Card portfolio continued to improve in Q4

    Credit Card portfolio continued to improve in Q4 Mandiri Visa Card Delinquency Rates Monthly Charge-offs, NPLs & Recoveries (%) (Rp Billion) 140.9 21.3% NPLs (90+DPD) 30 DPD - Rp Write-Offs 90 DPD - Rp Recoveries 30 DPD - Cards 106.1 90 DPD - Cards 16.0% 98.7 16.8% 103.0 16.1% 87.5 13.3% 82.9 75.6 1

  80. Slide 80: Summary of Principal Subsidiaries

    Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp697.23 billion • Equity Investment of Rp715.38 billion • Equity Investment of Rp79.50 billion • Total Assets of Rp9,612 billion, with total • Total Assets Rp 2,367 billion, total • Total Ass

  81. Slide 81: Bank Syariah Mandiri

    Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) Rp Bn 2003 2004 2005 2006 759 Total Assets 3,422 6,870 8,273 9,612 Branches Cash & placement Customers (000s) 1,023 796 1,689 1,377 w/ BI Current Accounts & 533 Placements 36 235 168 326 w/Other Banks Securitie

  82. Slide 82: Bank Syariah Mandiri

    Bank Syariah Mandiri Summary P&L (Rp billions) 2002 2003 2004 2005 2006 Total Operating Income 162.7 279.4 584.2 865.5 935.2 3rd Party Share on Returns 71.5 148.4 269.2 386.4 455.5 Bank's Share in Operating Income 91.3 131.1 315.0 479.1 479.7 Other Operating income 35.5 51.9 102.0 93.6 142.4 Operati

  83. Slide 83: Mandiri Sekuritas

    Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2003 2004 2005 2006 Rp Bn 2003 2004 2005 2006 Total Assets 1,079.7 1,435.7 1,258.7 2,367.4 Operating Revenue 102.4 244.0 197.3 221.6 Cash & Equivalent 82.9 117.4 51.8 80.1 Brokerage Commissions 3.9 15.6 20.9 20.2 Time deposit 50.0 50.0 - - In

  84. Slide 84: Staffing and Distribution Network Growth

    83 2,800 240 2006 6,265 2006 2,560 90 2005 6,025 2005 500 2,470 2004 5,537 2004 490 2,022 2003 4,716 2003 520 1,559 2002 4,000 2002 ATM-Link Network 500 1,184 2001 3,160 Staffing and Distribution Network Growth 2001 ATM Network 211 533 2000 2000 New ATMs 513 1999 1999 21,062 924 -0.6 15 2006 2006 12

  85. Slide 85: Loan growth, quality and provisioning relative to peers

    84 38.3% BCA 40% BNI 42.8% Lippo 49% Mandiri Ratio of Provisions to NPL 48.6% BNI 56% BII Loan to Deposit Ratio 53.5% Mandiri 62% Niaga 67% Permata Loan growth, quality and provisioning relative to peers 61.4% BII (%) (%) 76.7% Permata 97% Danamon 77.3% BRI 99% Panin 77.8% Danamon 147% BRI 77.9% Pan

  86. Slide 86: Asset and liability mix relative to peers

    85 11.0% Mandiri 5.0% Lippo 11.2% BNI 5.6% BCA Yield on Assets (p.a.) 12.0% Panin 5.6% BNI Cost of Funds (p.a.) 12.1% Lippo 6.5% BRI 12.8% BCA 7.3% Mandiri (%) (%) 13.0% BII 7.6% BII 13.8% Niaga 8.2% Niaga 14.7% Danamon 8.3% Danamon 14.9% Permata 8.3% Panin 17.3% BRI 8.7% Permata 38.8% BCA 26.7% Dan

  87. Slide 87: Efficiency measures relative to peers

    86 4.1% BRI 43.2% BCA 3.4% Permata 45.0% Panin 3.3% Lippo 48.4% Mandiri 3.2% BII Cost/ Income 51.0% BRI Cost/Assets *Annualized 2.8% Danamon 51.7% Danamon (%)* (%) 2.6% BNI 51.8% Niaga 2.4% Niaga 56.7% BNI 2.3% BCA 62.0% BII 1.9% Panin 63.7% Lippo 1.8% Mandiri 68.7% Permata 220 Danamon 48 Permata 26

  88. Slide 88: Measures of scale and returns relative to peers

    87 333 Niaga 7.3% Mandiri Return on Equity (After Tax) 345 Panin 12.5% Permata 582 Permata 14.1% Danamon 691 Lippo 14.3% Panin ATMs 697 BII 18.5% Niaga (%) 779 Danamon 21.4% BII 971 BRI 22.2% BNI 2,272 BNI 25.5% Lippo 2,662 Mandiri Measures of scale and returns relative to peers 28.6% BCA 4,173 BCA

  89. Slide 89: Notes

    Notes _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________

  90. Slide 90: Notes

    Notes _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________

  91. Slide 91: Share Information

    Share Information Shareholders as of 31 December 2006 Description Investors Shares % DOMESTIC 1. Government 1 14,000,000,000 67.9% 2. Retail 12,256 387,240,985 1.9% 3. Employees 9,422 154,200,852 0.7% 4. Pension Funds 115 133,230,500 0.6% 5. Assurance/Banks 30 105,596,500 0.5% 6. Institutions 211 31

  92. Slide 92: Equity Research Contact Details

    Equity Research Contact Details BROKERAGE ANALYST TELEPHONE E-MAIL ABN AMRO Asia Securities Indonesia Aditya Srinath 6221-515-6016 aditya.srinath@id.abnamro.com BAHANA SECURITIES Ari Pitoyo 6221-250-5081 aripitoyo@bahana.co.id BNP PARIBAS PEREGRINE Tjandra Lienandjaja 6221-5798-4661 tjandra.lienandj

  93. Slide 93: For Additional Information

    92 For Additional Information: Please refer to our website at www.bankmandiri.co.id Or Contact: Mansyur Nasution 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 Man

PT Bank Mandiri (Persero) — Q4 2006 Earnings Presentation on 6ix