PT Bank Mandiri (Persero) Tbk · IDX:BMRI

PT Bank Mandiri (Persero) Tbk — Q2 2007 Earnings Presentation

78 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, July 2007

  1. Slide 1: Q2 2007 Results Presentation

    PT Bank Mandiri (Persero) Tbk Q2 2007 Results Presentation 0

  2. Slide 2: Share Information

    Share Information as of 30 June 2007 3,500 Description No. of No. of shares % Investors 3,250 DOMESTIC 3,000 1. Government of RI 1 14,000,000,000 67.47% BMRI 2. Retail 8,702 346,472,097 1.67% 2,750 JCI 3. Employees 9,478 165,906,155 0.80% 2,500 4. Coops/Foundations 10 17,989,500 0.09% 5. Pension Fun

  3. Slide 3: Bank Mandiri Presentation Contents

    Bank Mandiri Presentation Contents Results Results Overview Overview Page Page # # ƒƒ H1 H1 Financial Financial Highlights Highlights 22 ƒƒ Quarterly Quarterly Loan Loan Growth Growth & & LDR LDR 33 ƒƒ Quarterly Quarterly Funding Funding Mix Mix && Deposit Deposit Costs Costs 44 ƒƒ Quarterly Quarter

  4. Slide 4: Key Financial Highlights

    Key Financial Highlights* Bank Mandiri’s H1 2007 Performance continued to demonstrate marked improvements in a number of key indicators: Organization Structure H1 2006 H1 2007 Change Loans Rp107.8 tn Rp116.3 tn 7.9% Net NPL Ratio 13.9% 3.9% (71.9%) Low Cost Funds Ratio 45.5% 58.3% 28.1% (1) NIM 4.4%

  5. Slide 5: LDR at 56.4% on 7.9% Y-o-Y consolidated growth

    LDR at 56.4% on 7.9% Y-o-Y consolidated growth Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only Loans (Rp tn) 57.3% 55.9% 56.4% Corporate LDR (%) 44.0 45.2 53.6 51.3 50.5 42.3 44.7 40.2 42.5% Commercial 37.7 35.1 35.7 32.5 32.9 32.6 31.6 22.2 Consumer 10.8 11.5 11.8 12.6

  6. Slide 6: Q2 Deposits rose 4.1% on a 9.3% gain in IDR Savings

    4 8.8% 7.4% 3.5% 2.6% 3.7% 1.7% Q2 '07 Q1 '07 Q2 Deposits rose 4.1% on a 9.3% gain in IDR Savings Rp Savings 1 Mo. SBIs Q4 '06 Q3 '06 FX TD Q2 '06 12.7% 11.9% 4.3% 2.7% 4.4% 3.3% Average Quarterly Deposit Costs (%) Q1 '06 Q4 '05 Rp DD Q3 '05 Rp TD FX DD Q2 '05 1.5% 7.4% 6.3% 4.1% 0.5% 3.7% Q1 '05 Q4

  7. Slide 7: Q2 NIM falls to 4.9% on lower Recap bond yields

    Q2 NIM falls to 4.9% on lower Recap bond yields Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency* 20% Yield on Assets IDR 13.0% 13.0% Cost of Funds 15% 12.1% 11.8% 11.6% 11.4% 10.7% 11.0% 10% 8.8% 10.8% 10.8% 10.6% 9.5% 9.4% 9.4% 8.0% 8.9% 5% 8.7%8.2% 5.0% 7.8%7.6% 7.3% 7.3% 0% 6

  8. Slide 8: Non-loan Related Fees & Commissions up 40.6% Y-o-Y

    Non-loan Related Fees & Commissions up 40.6% Y-o-Y Non-loan related fees & commissions Details of Q2 2006 & 2007 Credit Cards Transfer, Coll., Clearing & Bank Ref. Opening L/C & Bank Guarantees Non-Loan Related Q2 Q2 Y-o-Y % of Operating Income* Fees & Fee from Subsidiaries Commissions 2006 2007 U O

  9. Slide 9: Q2 Cost to Income Ratio up to 40.2% on Personnel costs

    Q2 Cost to Income Ratio up to 40.2% on Personnel costs Quarterly Consolidated Operating Expenses & CIR* Breakdown of Q2 2006 & 2007 Operating Expenses CIR* (%) 83.3% Change Annual Avg CIR (%) Q2 ‘06 Q2 ‘07 (Y-o-Y) Personnel Expenses 58.9% 57.6% Base Salary 244,849 294,225 20.17% Other Allowances 336

  10. Slide 10: Q2 NPLs drop to Rp17.3 trillion on upgrades & collections

    Q2 NPLs drop to Rp17.3 trillion on upgrades & collections Non-Performing Loan Movements (Rp bn) – Bank Only Movement by Customer Segment (Rp Bn) 390 1,000 617 Cons Micro/Small 727 944 599 98.9 Comm 70 Corp 750 192.4 17,971 61.3 31.6 172.9 52.1 17,292 500 75.3 322.3 250 479.7 431.0 311.7 0 40.7 Q1 '0

  11. Slide 11: Net NPLs at 3.9% with provisioning coverage of 86.7%

    9 50% 40% 30% 20% 10% 0% 14.8% 15,854 Q2 '07 Net NPLs at 3.9% with provisioning coverage of 86.7% 15.9% 16,750 Q1 '07 16,966 Q4 '06 2 - Special Mention Loans (Rp Bn) 10,991 Q3 '06 12.2% 12,175 Q2 '06 12,086 Q1 '06 12,912 Q4 '05 Cat 2 % Category 2 Loans – Bank Only 16,423 Q3 '05 14.8% 14,394 Q2 '05 1

  12. Slide 12: Cash Provisioning for Category 5 loans now at 82.2%

    Cash Provisioning for Category 5 loans now at 82.2% Non-Performing Loans by Segment Collateral Valuation Details NPLs Q2U NPLs (Rp tn) (Rp tn) (%) Collectibility 1 2 3 4 5 Corporate 10.11 (0.01) 20.02% Total Cash 780 1,279 568 396 12,169 Prov. (Rp bn) Commercial 5.64 (0.72) 17.33% % Cash Small 0.75

  13. Slide 13: Net downgrades of less than 0.3% on new loans in Q2

    Net downgrades of less than 0.3% on new loans in Q2 Total Loans originated since 2005 Net Upgrades (%)/Downgrades (%) # Q2 2007 Details Q2 ‘07 DG to UG to Loan Q1 Q2 Q3 Q4 Q1 Q2 Balance NPL PL Background (Rp bn) 2006 2006 2006 2006 2007 2007 % % Corporate 22,659.8 0.59 - - 0.02 - 0.49 0.49 - Commerc

  14. Slide 14: Progress on Selected Debtors

    Progress on Selected Debtors ƒ Total exposure to this debtor is USD76,583,277. ƒ The obligor settled loans to PT. Hasil Tambak Amboina and PT. Kinantan Sena Putra in October 2006. ƒ For PT. Biak Mina Jaya, the obligor had agreed to sell the assets of Biak (machinery, Djajanti Djajanti equipment and

  15. Slide 15: Progress Update on PPKM Mandiri

    Progress Update on PPKM Mandiri • Independent Auditor (Ernst & Young) has completed the review of 150 accounts and is currently reviewing an additional 85 accounts NPL Historical • Based on the review, 33 accounts, with principal value of Rp2.3 tn have met the Review criteria of “Clean” and “Clear”

  16. Slide 16: H1 '07 operating profit up 61.3% from H1 '06

    H1 ‘07 operating profit up 61.3% from H1 ‘06 H1 2006 H1 2007 Rp billion Rp billion 1,522 6,692 3,527 1,201 3,145 4,687 4,840 4,212 Excluding Non- recurring Q1 Interest Income Up 61.3% 2,906 Net Interest Fee-Based Overhead Pre-provision Net Interest Fee-Based Overhead Pre-provision Income Income Expe

  17. Slide 17: H1 core earnings up 50.6% to Rp4,040 billion

    H1 core earnings up 50.6% to Rp4,040 billion Core Earnings Profit After Tax & ROE IDR bn RoE - After Tax 8,000 Gain on Sale/Value of Securities (Annualized) FX Gain Non-Recurring Interest 26.2% Core Earnings 23.6% 7,000 21.5% 22.8% 1,651 Pre-Provision Operating Profit 2,072 6,000 247 775 16.6% 402 3

  18. Slide 18: Operating Performance Highlights

    Operating Performance Highlights 16

  19. Slide 19: Recap: Leveraging leadership in cash generating businesses

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

  20. Slide 20: Future businesses generated largest profit in H1 2007

    Future businesses generated largest profit in H1 2007 . . . SBU H1 ‘07 Earnings before Tax (Unaudited) Rp billion 320 1,317 1,314 972 596 3,022 1,137 Corporate Treasury & Commercial Micro & Consumer Others, Incl. Profit Before Int'l Retail Finance SAM Tax 18

  21. Slide 21: Strong franchise in all SBUs indicated by solid profitability

    Strong franchise in all SBUs indicated by solid profitability Treasury Y-T-D June 2007 Corp Comm M&RB Cons Others Total & Int’l Spread 464 261 699 332 494 775 11,595* Asset Provision 176 55 248 160 117 988 1,744 Revenue Net Revenue 288 206 451 172 377 (213) 9.851 Spread 705 35 527 1,885 7 88 (5,324)

  22. Slide 22: Corporate Banking

    Corporate Banking: Contribution margin grew by 83.4%, primarily driven by liabilities Corporate Performance to Date (H1 ‘07) Contribution Margin (after PPAP) Rp bn Rp bn 45 189 1,313 176 705 1,137 83.4% 1,137 620 464 Asset Liabilities Fees Overhead Operating Provisions Profit H1 2006 H1 2007 Spread

  23. Slide 23: Strategic Alliances w/SBUs to serve Prime Customers

    Strategic Alliances w/SBUs to serve Prime Customers Corporate Providing Services & Business Development for Providing Services & Business Development for Telecommunication Company Oil & Gas Company Groups Facilities Offered Targets Groups Facilities Offered Targets Consumer Consumer Loans (KPR, Outs

  24. Slide 24: Rp10 tn in credit approved for infrastructure toll roads

    Bank Mandiri has approved Rp10 tn in credit for selected high- quality infrastructure toll roads Corporate (Rp bn) Trans Java Toll Credit Approval Non-Trans Java Toll Credit Approval 113 5,540 3.337 3,387 300 4,843 1.385 300 1,385 2.178 2,178 1.235 1,235 560 448 357 420 560 448 357 420 Withdrawn H2

  25. Slide 25: Treasury & International Banking

    Treasury & International Banking: Significant fee income generator for the bank Treasury Performance to Date (H1 ‘07) Breakdown of Treasury Fee-Based Income (%) Rp bn (%) 445 90 55 Forex; 30.4% 651 596 Fixed Income; 42.6% Others; (Earning on SBI Sales & 35 11.7% changes in value) 261 POL Transfer; 3

  26. Slide 26: Commercial Banking

    Commercial Banking: Commercial Generating balanced revenues from an emerging business Performance to Date (H1 ‘07) – P&L Contribution Margin (after PPAP) Rp bn Rp bn 972 49.8% 72 516 67 1,220 248 972 649 699 Asset Liabilities Fees Overhead Operating Provisions Profit After Spread Spread Profit PPAP

  27. Slide 27: Diversified business across geography & sectors

    Diversified business across geography & sectors Commercial Commercial Operating Profit by Geography (Jun ‘07) Commercial Loans by Sector (%) (%) Jakarta Mfg 55.1% 33.2% Mining 2.9% Agri Utilities 8.3% 1.7% Constr Other Others 15.5% 11.9% 12.1% Java ex- Jakarta Services Sumatera Social Trading 17.3%

  28. Slide 28: Micro & Retail Banking

    Micro & Retail Banking: Micro Retail Solid growth in profitability driven by improving liabilities spread Performance to Date (H1 ‘07) Contribution Margin (after PPAP) Rp bn Rp bn 695 1,314 79.3% 1,437 1,885 1,475 160 733 1,314 332 Asset Liabilities Fees Overhead* Operating Provisions Profit Spread

  29. Slide 29: Building a strong savings deposit franchise

    Building a strong savings deposit franchise Micro Retail Savings Deposit Growth Transaction channel growth Savings Deposits (Rp tn) As % of Total Deposits Avg ATM Daily Vol (000) Withdrawal/Inquiry National Share of Savings Deposits (%) Transfer Payment Other 31.7% 492.1 521.8 554.9 576.6 607.5 627.

  30. Slide 30: Focus on Growing High Yield Small & Micro Loans

    Focus on Growing High Yield Small & Micro Loans Micro Retail Rural Bank Credits Micro Credits Cooperative Credits (Rp Bn) (Rp Bn) (Rp Bn) Loan Yields 13.2% 26.8% 14.5% 71 7% 202 31% 1,140 1,069 843 642 185 430 76% 245 Q2 2006 Growth Q2 2007 Q2 2006 Growth Q2 2007 Q2 2006 Growth Q2 2007 28

  31. Slide 31: Consumer Finance

    Consumer Finance: Consumer Significant growth in spread and fee income Finance Performance to Date* (H1 ‘07) Contribution Margin (after PPAP) Rp bn Rp bn 88 152 494 7 37.9% 320 437 117 320 232 Asset Liabilities Fees Overhead Operating Provisions Profit H1 2006 H1 2007 Spread Spread Profit After PPAP

  32. Slide 32: Consumer lending rose 8.1% Y-o-Y

    Consumer lending rose 8.1% Y-o-Y Consumer Finance Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type Other Cash Collateral Loans Credit Cards Growth (%) 14,000 Loan Type Payroll Loans Home Equity Loans Y-o-Y Q-o-Q Mortgages 1,0171,426 12,000 Other 65.74% 51.90% 1,544 1,293 2,285 1

  33. Slide 33: 966k Visa Cards made Q2 transactions of Rp1,148 bn

    966k Visa Cards made Q2 transactions of Rp1,148 bn Consumer Finance Mandiri Visa Card Holders and EOQ Receivables Visa Card Quarterly Sales by Type of Transaction (Rp Bn) 966.4 Receivables (Rp Bn) Transfer Balance Cards (000s) 872.5 Cash Advance 19 62 784.1 Retail 752.4 17 709.4 67 650.7 11 68 3 72

  34. Slide 34: Stronger relationships with merchant partners will drive card usage

    Stronger relationships with merchant partners on local and national scale will drive higher usage of cards Consumer Finance Compare Q2- 06 to Q2-07 : 59% growth in sales, 15% growth in receivables, and 23% growth number of cards 1,200 Merchants 200 Prime Marketing Program 600 Local Marketing Program

  35. Slide 35: 2007 Major Goals

    2007 Major Goals ƒ Gross NPL below 10% and Net NPL below 4% ƒ Fulfill all criteria to be considered an anchor bank (consolidator bank) as of the end of 2007 ƒ ROE improvement to 13 - 15% (envisioned a normalized ROE of above 18% starting from 2008) ƒ Gross loan growth of more than Rp20 trillion or 1

  36. Slide 36: Supporting Materials

    Supporting Materials 34

  37. Slide 37: Key Quarterly Balance Sheet Items & Financial Ratios

    Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % H1 ‘06 FY 2006 H1 ‘07 YoY Change (%) Gross Loans 107,828 117,671 116,306 7.9% Government Bonds 92,338 90,648 89,490 -3.1% Total Assets 255,278 267,517 265,022 3.8% Customer Deposits 197,027 205,708 206,241 4.7% Total Equity 23,856

  38. Slide 38: Summary P&L Information – H1 '06 vs. H1 '07

    Summary P&L Information – H1 ‘06 vs. H1 ‘07 H1 2006 H1 2007 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 13,266 10.2% 12,335 9.3% (7.0%) Interest Expense (8,416) (6.5%) (5,643) (4.2%) (32.9%) Net Interest Income 4,850 3.7% 6,692 5.0% 38.0% Other Operating

  39. Slide 39: Recap Bond sales of Rp30 bn in Q2 '07

    Recap Bond sales of Rp30 bn in Q2 ‘07 Int. from Bonds Int. from Loans Bonds by Rate Type & Portfolio as of June 2007 (Rp bn) 280 70 1.35 60 Fixed Rate 59.2 260 59.2 64.5 60.5 56.1 50 60.2 57.6 55.1 54.0 33.4 Variable Rate 51.4 36.1 50.6 56.6 27.0 240 60.7 40 75.4% 220 30 1.02 59.745 44.0 74.1% 20 11

  40. Slide 40: CAR fell to 25.1% on a 3.1% drop in capital

    38 25.1% 113.1 28.4 Q2 '07 27.1% 107.9 29.3 Q1 '07 112.2 28.4 Q4 '06 110.4 28.1 Q3 '06 CAR fell to 25.1% on a 3.1% drop in capital 110.7 27.8 Q2 '06 25.2% 110.7 27.9 Q1 '06 Total Capital (Rp tn) 115.9 27.4 Q4 '05 117.5 27.8 Q3 '05 115.9 27.5 Q2 '05 RWA (Rp tn) 26.6% 114.1 30.4 Q1 '05 25.3% 108.9 27.

  41. Slide 41: Additional Factors

    Additional Factors ƒ Aggregate of Rp25.435 tn (US$ 2.81 bn) in written-off loans as of end-March 2007, with significant recoveries on-going: ¾ 2001: Rp2.0 tn ¾ 2002: Rp1.1 tn ¾ 2003: Rp1.2 tn Written-off Written-off ¾ 2004: Rp1.08 tn Loans Loans ¾ 2005: Rp0.818 tn (US$ 83.2 mn) ¾ 2006: Rp3.408 tn (U

  42. Slide 42: Summary Quarterly Balance Sheet: Q2 '06 – Q2 '07

    Summary Quarterly Balance Sheet: Q2 ‘06 – Q2 ‘07 Q2 ‘06 Q3 ‘06 Q4 ‘06 Q1 ‘07 Q2 ‘07 Y-o-Y Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# % Change Total Assets 255.3 253.7 267.5 261.0 265.0 29.3 3.8 Cash 3.0 3.3 4.0 3.6 4.1 0.5 36.7 Current Accounts w/BI 20.2 19.5 21.6 19.8 20.6 2.3 1.9 Certificat

  43. Slide 43: Summary P&L Information – Q2 2007

    Summary P&L Information – Q2 2007 Q-o-Q Q2 2006 Q1 2007 Q2 2007 Change % of % of Rp Rp % of (Billions) Av.Assets Rp (Billions) Av.Assets (Billions) Av.Assets (%) * * Interest Income 6,759 10.6 6,761 10.2 5,574 8.5 (17.6) Interest Expense (4,119) (6.5) (2,962) (4.5) (2,681) (4.1) (9.5) Net Interest I

  44. Slide 44: Recap Bond Portfolio Details, 30 June 2007

    Recap Bond Portfolio Details, 30 June 2007 – Bank Only Nominal Fair Value Maturity Interest Series MtM Date Rate (%) Trading AFS HTM Trading AFS HTM Fixed Rate - FR0002 15-Jun-09 14.00% 68 - - 111.406 76 - - FR0010 15-Mar-10 13.15% - - 1,350,000 100.000 - - 1,350,000 FR0014 15-Nov-10 15.58% 4,000 2,

  45. Slide 45: 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 Ba3 B+ Indi

  46. Slide 46: Corporate Actions

    Corporate Actions Net Profit for the financial year of 2006 of Rp2,421,405,120,753.71 distributed as follows: ƒ 50%, or Rp1,210,702,560,376.86, for the annual dividend ƒ 10%, or Rp242,140,512,075.37, for a one-time “special dividend“ ƒ Total Dividend Payment of Rp70.28 per share Dividend Dividend To

  47. Slide 47: Q2 2007 Movement in Category 1 and 2 Loans

    Q2 2007 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 145 73,749 2,995 70,888 6 1,636 1,608 45 16,750 1,636 1,608 938 595 15,854 73 682 Beg. D/G to 2 U/G D/G to U/G Net FX End Bal. Beg. Bal. Cat. 1 U/G to D/G to NPL Net

  48. Slide 48: Q2 2007 Loan Detail: Collectibility by Business Unit

    Q2 2007 Loan Detail: Collectibility by Business Unit Loan Profile: Q2 Collectibility (%) by BU - Bank Only Loan Profile: Q2 Collectibility (Rp bn) by BU - Bank Only 55,000 6.8% 5.3% 3.0% 0.9% 0.7% 3.2% 17.4% 15.2% 0.6%0.9% 1.7% 50,000 14.0% 0.3% 10.7% 0.8% 1.9% 1.9% 16.3% 45,000 9.3% 40,000 19.3% 5

  49. Slide 49: NPL Loan Detail: Quarterly by Interest Days Past Due

    NPL Loan Detail*: Quarterly by Interest Days Past Due Quarterly D/G 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 51.9% 51.3% <30 Days (%) Current (%) 10,000 <30 Days (%) 62.5% 25,000 50% 53.0%

  50. Slide 50: Rp145 bn in loans were restructured in Q2 '07

    Rp145 bn in loans were restructured in Q2 ’07 Restructured Loan Movement 2000 - Q2 2007 Loans by Restructuring Type in Q2 2007 Others# IDR bn Write-Offs Repayments Restructuring B alance Maturity extension 60% Additional loans 1% LT loans w/convert. option 7% Maturity 27,423 25,123 2001 29,542 2002

  51. Slide 51: Loan Portfolio Sector Analysis, Q2 2007

    Loan Portfolio Sector Analysis, Q2 2007 Trading Mfg-Oth Agri Mfg-Oth 10.5% 11.1% Agri Mfg-F&B Mfg-F&B 9.7% Trading Mfg-Chem Constr 12.2% Mfg-Chem 8.9% Mfg-P&P Mining Oth<4% 3.7% Trans Constr Oth Mfg-Text 4.7% 8.2% Bus Serv 4.9% Mfg-P&P Bus Serv Trans Mfg-Text 6.8% 5.8% Mining Oth 6.8% 6.5% Oth<4% (1

  52. Slide 52: Q2 2007 Loan Detail: Downgrades to NPL

    Q2 2007 Loan Detail*: Downgrades to NPL Loan Profile: Q2 Downgrades to NPL (Rp783 bn) - Bank Only Corporate, Commercial & Small 100% Other Business loans downgraded to NPL in Oth<5% Small 5 Q2 totaled Rp783 billion (0.73% of 90% Export Mfg-NonM total loans). Of these loans: Trading-Oth USD 80% „ 0.8

  53. Slide 53: Q2 2007 Loan Detail: Non-Performing Loans

    Q2 2007 Loan Detail*: Non-Performing Loans Loan Profile: Q2 NPLs (Rp16,500 bn) Bank Only Corporate, Commercial & Small 100% Program Business NPLs totaled Rp16,500 billion Small LC in Q2, or 15.4% of total loans. Of these Oth<5% 90% Synd NPLs in Q2: „ 18.5% remain current on interest Bus Serv Export

  54. Slide 54: Q2 2007 Loan Detail: New Downgrades to Category 2

    Q2 2007 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q2 Downgrades to Cat. 2 loans (Rp1,096 bn) - Bank Only Rp1,096 billion (1.0% of total loans) 100% Other in Corporate, Commercial & Small Other 61+ Oth<5% Business loans were downgraded to 90% Synd Category 2 in Q2. Of the Special Small

  55. Slide 55: Q2 2007 Loan Detail: Category 2 Loans

    Q2 2007 Loan Detail*: Category 2 Loans Loan Profile: Q2 Category 2 Loans (Rp13,729 bn) Bank Only Rp13,729 billion (12.8% of total loans) 100% in Corporate, Commercial & Small Small 61+ Other Oth<5% Business loans were in Category 2 in 31-60 >2004 90% Q2. Of these Special Mention loans in < 30 Agri Q

  56. Slide 56: Loan Detail: Upgrades to PL

    Q2 2006 Loan Detail*: Upgrades to PL Loan Profile: Q2 Upgrades to PL (Rp653 bn) - Bank Only Corporate, Commercial & Small 100% Other Business loans upgraded to PL in Q2 Small Oth<5% totaled Rp653 billion (0.6% of total 90% Export >2004 loans). Of these loans: Mfg-NonM 80% „ 49.2% were to Commercial

  57. Slide 57: Loan Detail: Performing Loans

    Q2 2006 Loan Detail*: Performing Loans Loan Profile: Q2 Performing Loans (Rp75,565 bn) Bank Only Rp75,565 billion (70.7% of total loans) 100% Other in Corporate, Commercial & Small Small Export Business loans were performing in Oth<5% 2 90% Q2. Of these performing loans in Q2: Synd USD „ 53.5% are t

  58. Slide 58: Q2 2007 Loan Detail: Restructured Loans

    Q2 2007 Loan Detail*: Restructured Loans Loan Profile: Q2 Restructured Loans (Rp21,500 bn) Bank Only 100% Of the remaining Rp21,500 billion in Program Small PL UG restructured Corporate, Commercial Oth<5% Export & Small Business loans in Q2, or 90% 5 20.1% of total loans: Comm Trading 80% „ 68.4% ar

  59. Slide 59: Q2 2007 Loan Detail: IBRA Loans

    Q2 2007 Loan Detail*: IBRA Loans Loan Profile: Q2 IBRA Loans (Rp2,515 bn) Bank Only 100% Rp2,515 billion in loans purchased Oth<5% Program Small from IBRA remain on the books as of Mfg-Text IDR WC Q2, accounting for 2.4% of total 90% 5 Comm Mfg-NonM loans: Mfg-Oth 80% „ 81.0% are performing „ 87.4%

  60. Slide 60: Q2 2007 Loan Detail: Corporate Loans

    Q2 2007 Loan Detail: Corporate Loans Loan Profile: Q2 Corporate Loans Only (Rp50,516 bn) Bank Only Rp50,516 billion in loans were in the 100% 61+ PL UG Corporate portfolio in Q2, or 47.3% of Other <30 total loans. Of the Corporate Loans in 90% 5 1 Day Oth<5% Export Q2: 4 Trans „ 80.0% are performing

  61. Slide 61: Q2 2007 Loan Detail: Commercial Loans

    Q2 2007 Loan Detail: Commercial Loans Loan Profile: Q2 Commercial Loans* Only (Rp32,542 bn) Bank Only Rp32,542 billion in loans were in the 100% PL UG Synd Commercial portfolio in Q2, or 30.4% 90% 5 61+ Oth<5% Export of total loans. Of the Commercial USD Loans in Q2: 43 80% 31-60 Trans >2004 „ 82.7%

  62. Slide 62: Q2 2007 Loan Detail: Small Business Loans

    Q2 2007 Loan Detail: Small Business Loans* Loan Profile: Q2 Small Business Loans* Only (Rp9,007 bn) Bank Only Rp9,007 billion in loans were in the 100% USD Other PL UG 5 Small Business portfolio in Q2, or 4 Oth<5% Program 90% 3 8.4% of total loans. Of the Small 61+ 2 Bus Serv Business Loans* in Q2:

  63. Slide 63: Q2 2007 Loan Detail: Rupiah Loans

    Q2 2007 Loan Detail*: Rupiah Loans Loan Profile: Q2 Loans (Rp57,580 bn) Bank Only Rp57,580 billion in loans were 100% PL UG Oth<5% Other Rupiah denominated in Q2, or 53.9% 5 90% 61+ Small Export of total loans. Of the Rupiah Loans in Mfg-Chem Q2: 3 31-60 Trans „ 85.4% are performing loans with 80% 2

  64. Slide 64: Q2 2007 Loan Detail: Foreign Currency Loans

    Q2 2007 Loan Detail*: Foreign Currency Loans Loan Profile: Q2 FX Loans (Rp34,485 bn) Bank Only Rp34,485 billion in loans were 100% 61+ PL UG foreign currency denominated in Q2, 31-60 Other < 30 or 32.3% of total loans. Of the FX 90% 5 1 Day Oth<5% Comm Loans in Q2: Export „ 76.6% are performing loan

  65. Slide 65: Credit Card portfolio continued to improve in Q2

    Credit Card portfolio continued to improve in Q2 Mandiri Visa Card Delinquency Rates (%) Monthly Charge-offs, NPLs & Recoveries (Rp Bn) 16.8% 30 DPD - Rp NPLs (90+DPD) 90 DPD - Rp 16.0% Write-Offs 30 DPD - Cards Recoveries 90 DPD - Cards 98.7 11.7% 87.5 82.9 10.7% 79.4 10.4% 9.2% 83.8 67.2 9.5% 7.2%

  66. Slide 66: 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. Classification Classification Category 1 - Current Current Current 1% by by Aging Aging of of Category 2 – Special Mention 1 – 90 days 1 – 90 days 5% Interest Int

  67. Slide 67: 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

  68. Slide 68: Summary of Principal Subsidiaries

    Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp759.03 billion • Equity Investment of Rp735.35 billion • Equity Investment of Rp94.25 billion • Total Assets of Rp10,438 billion, with • Total Assets Rp2,641 billion, total • Total Assets Rp

  69. Slide 69: Bank Syariah Mandiri

    Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) Rp Bn 2004 2005 2006 H1’07 837 Total Assets 6,870 8,273 9,612 10,438 Branches 759 Cash & placement Customers (000s) 796 1,689 1,377 1,331 w/ BI Current Accounts & Placements 235 168 326 209 533 w/Other Banks Se

  70. Slide 70: Bank Syariah Mandiri

    Bank Syariah Mandiri Summary P&L (Rp billions) 2003 2004 2005 2006 H1 ‘07 Total Operating Income 279.4 584.2 865.5 935.2 543.1 3rd Party Share on Returns 148.4 269.2 386.4 455.5 235.0 Bank's Share in Operating 131.1 315.0 479.1 479.7 308.1 Income Other Operating income 51.9 102.0 93.6 142.4 103.3 Op

  71. Slide 71: Mandiri Sekuritas

    Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2004 2005 2006 H1 ‘07 Rp Bn 2004 2005 2006 H1 ‘07 Total Assets 1,435.7 1,258.7 2,367.4 2,641.3 Operating Revenue 244.0 197.3 221.6 200.9 Cash & Brokerage Commissions 15.6 20.9 20.2 30.0 117.4 51.8 80.1 91.6 Equivalent Investment Mgmt Fees 53.

  72. Slide 72: Staffing and Distribution Network Growth

    70 2,802 2 Q2 '07 6,267 Q2 '07 240 2,800 2006 6,265 2006 2,560 6,025 90 2005 2005 500 2,470 2004 5,537 2004 2,022 490 2003 4,716 2003 Staffing and Distribution Network Growth 1,559 520 2002 4,000 2002 ATM-Link Network 1,184 3,160 500 2001 2001 ATM Network 533 211 2000 2000 513 1999 1999 ATMs New 21,

  73. Slide 73: Loan growth, quality and provisioning relative to peers

    71 37.3% BCA 51% BII 48.7% BNI 57% BNI Ratio of Provisions to NPL 48.9% Lippo 61% Niaga Loan to Deposit Ratio 55.3% Mandiri 66% Permata 58.4% BII 84% Mandiri (%) (%) Loan growth, quality and provisioning relative to peers 74.7% BRI 92% Panin 75.7% Danamon 110% Danamon 83.7% Niaga 151% BRI 86.2% Pani

  74. Slide 74: Asset and liability mix relative to peers

    72 10.2% BNI 4.7% BCA 11.3% BCA 4.9% Lippo Yield on Assets (p.a.) 11.4% Mandiri Cost of Funds (p.a.) 5.1% BRI 11.5% BII 5.2% Mandiri 12.1% Lippo 5.7% BNI (%) (%) 12.5% Panin 5.9% Permata 13.0% Niaga 6.1% Panin 13.2% Permata 6.4% BII 15.0% Danamon 7.0% Niaga 16.2% BRI 7.1% Danamon 39.0% BCA 26.8% Dan

  75. Slide 75: Efficiency measures relative to peers

    73 5.0% BRI 35.4% Panin 4.6% Permata 35.6% Mandiri 4.3% Lippo 45.0% BRI Cost/ Income 3.9% BII 46.0% Lippo Cost/Assets *Annualized 3.7% Danamon 48.6% Danamon (%)* (%) 3.3% BNI 49.9% BCA 3.3% Niaga 50.1% Niaga 2.8% BCA 52.3% BNI 2.5% Panin 69.4% BII 2.5% Mandiri 80.0% Permata 63 Danamon 19 Permata 105

  76. Slide 76: Measures of scale and returns relative to peers

    74 345 Panin 12.3% BII Return on Equity (After Tax) 397 Niaga 13.1% Permata 581 Permata 13.2% Panin 691 Lippo 16.1% BNI ATMs 697 BII 17.9% Mandiri (%) 779 Danamon 18.2% Niaga 971 BRI 20.2% Danamon 2,272 BNI 25.3% BCA 2,662 Mandiri 25.9% Lippo Measures of scale and returns relative to peers 4,173 BCA

  77. Slide 77: Equity Research Contact Details

    Equity Research Contact Details BROKERAGE ANALYST TELEPHONE E-MAIL ABN AMRO Asia Securities Indonesia John Rachmad 65-6518-7996 john.rachmad@sg.abnamro.com BAHANA SECURITIES Ari Pitoyo 6221-250-5081 aripitoyo@bahana.co.id BNP PARIBAS PEREGRINE Tjandra Lienandjaja 6221-5798-4661 tjandra.lienandjaja@a

  78. Slide 78: For Additional Information

    79 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) — Q2 2007 Earnings Presentation on 6ix