PT Bank Mandiri (Persero) Tbk · IDX:BMRI
PT Bank Mandiri (Persero) Tbk — FY2005 Earnings Presentation
104 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, March 2006
Slide 1: Full Year 2005 Results Presentation
PT Bank Mandiri (Persero) Tbk Full Year 2005 Results Presentation 0
Slide 2: Shareholding Information
Shareholding Information Shareholders as of 31 December 2005 2,200 Description Investors Shares % 2,000 BMRI DOMESTIC 1,800 JCI 1. Government 1 14,000,000,000 69.1% 1,600 2. Retail 8,722 355,712,500 1.8% 1,400 3. Employees 12,559 132,814,864 0.7% 1,200 4. Pension Funds 107 65,561,000 0.3% 1,000 5. A
Slide 3: Bank Mandiri Presentation Contents
Bank Mandiri Presentation Contents Results Results Overview Overview Page Page ## Financial Financial Summary Summary Page Page ## Q4 Q4 2005 2005 Summary Summary Financials Financials 33 -- 44 Summary Summary Balance Balance Sheets Sheets && P&L P&L 41 41 -43 -43 Quarterly Quarterly Ass
Slide 4: Bank Mandiri Operating Highlights
Bank Mandiri Operating Highlights Q4 2005 2
Slide 5: Key Quarterly Balance Sheet Items & Financial Ratios
Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % FY 2004 9-Mo. 2005 FY 2005 YoY Change (%) Gross Loans 94,403 106,683 106,853 13.2 Government Bonds 93,081 92,267 92,056 (1.1) Total Assets 248,156 250,341 263,383 6.1 Customer Deposits 175,838 186,448 206,289 17.3 Total Equity 24,9
Slide 6: Summary P&L Information – Full 2005 vs. Full 2004
Summary P&L Information – Full 2005 vs. Full 2004 FY 2004 FY 2005 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 19,145 10.7 20,798 8.2 8.6 Interest Expense (9,679) (5.4) (12,044) (4.7) 24.4 Net Interest Income 9,466 5.3 8,754 3.4 (7.5) Other Operating Inco
Slide 7: Total assets grew by 6.1% Y-o-Y
5 As a % of Total Interest Income 40.9% 50.0% 64.5 106.9 92.1 Q4 '05 48.0% 38.2% 51.4 106.7 92.3 Q3 '05 50.5%50.6% 40.7%41.4% 60.2 104.0 92.5 Q2 '05 56.6 99.6 93.2 Q1 '05 46.2% 45.6% 60.7 94.4 93.1 Q4 '04 54.6 87.0 94.0 Q3 '04 Other Assets Total assets grew by 6.1% Y-o-Y – Consolidated 42.3% 47.4% 5
Slide 8: Loan growth was restrained across all segments
Loan growth was restrained across all segments Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only 42.7 Corporate 42.3 40.2 40.6 41.8 41.5 42.9 44.0 45.1 44.7 56.8% Loans (Rp tn) 38.2 38.9 39.5 47.9% 53.7% 44.1 LDR (%) 51.8% 42.4 43.7 40.4 42.5% 37.7 36.1% 35.4% Commercial
Slide 9: Consumer lending growth slows on tighter credit criteria
Consumer lending growth slows on tighter credit criteria Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type 12,000 Other Growth (%) Cash Collateral Loans 688 888 Loan Type Credit Cards 653 Y-o-Y Q-o-Q 1,367 10,000 1,354 Payroll Loans 1,257 Home Equity Loans 727 Other 148.08% 6.85%
Slide 10: Sales of Rp2.54 trillion from the Recap Bond Portfolio in 05
Sales of Rp2.54 trillion from the Recap Bond Portfolio in 2005 At Fair Value, Dec Trading AFS HTM 2005 (Rp tn) (Mark to Market#) (Nominal Value) Total % of Total (Mark to Market*) Fixed Rate 0.6 1.9 1.4 3.8 4.1% Variable Rate 1.6 26.9 59.7 88.2 95.9% Hedge Bonds - - - - - Total 2.1 28.8 61.1 92.1 %
Slide 11: Funding growth of 17.1% in 2005 driven by Rp Time Deposits
Funding growth of 17.1% in 2005 driven by Rp Time Deposits Deposit Analysis – Bank Only Retail Deposits (%) Low-Cost Deposits (%) 200 15.7 180 23.4 21.5 93.2 17.8 20.6 20.6 19.4 18.6 13.3 16.3 23.6 18.0 17.3 11.6 106.9 105.1 160 25.9 21.3 16.5 13.8 11.1 107.7 106.1 96.7 79.8 104.1 72.3 100.7 12.5 66
Slide 12: Savings deposit volume begins to recover
Savings deposit volume begins to recover Savings Deposit Growth Average Quarterly Deposit Costs (%) Savings Deposits (Rp tn) 17.1% As % of Total Deposits Rp DD National Share of Savings Deposits (%) 17.0% 13.9% Rp Savings Rp TD 1 Mo. SBIs 11.9% SBI 13.1% TD 30.6% 8.5% 11.4% 10.6% 27.1% 9.5% 8.4% 7.4
Slide 13: Margins contracted as funding needs rapidly drove up costs
Margins contracted as funding needs rapidly drove up costs All figures - Bank Only 13.9% 13.6%13.5% 13.0% 13.0% 13.0% 12.6%12.8% 2.1% 12.3% 2.0% 11.9% 2.5% 11.8% 1.7% 2.2% 2.2% 2.2% 11.5% 1.5% 1.1% 11.3% 10.9% 10.7% 1.8% 0.8% 11.8%11.6% 10.4% 2.2% 0.8% 2.5% 11.2%11.1%11.1% 11.0%10.8% 10.8% 10.8% 9.5
Slide 14: Quarterly Margin Analysis by Currency
Quarterly Margin Analysis by Currency Quarterly Rupiah Margins Quarterly Foreign Currency Margins 18.9% 18.3% 11.8% Avg Spread Avg Loan Yield 17.6% Avg Bond Yield 17.6% Avg USD 1Mo SIBOR 15.9% Avg COF 14.0% 14.0% 13.3% 7.6% 14.4% 14.1% 7.3% 13.1% 11.9% 6.5% 12.5% 11.9% 5.7% 11.7% 5.8% 10.2% 10.2% 11
Slide 15: Non-loan Related Fees & Commissions rebound
Non-loan Related Fees & Commissions rebound Non-loan related fees & commissions Details of Q4 2004 & 2005 Credit Cards Transfer, Collection, Clearing & Bank Reference Non-Loan Q4 Q4 Y-o-Y Opening L/C & Bank Guarantees Fee from Subsidiaries Related Fees & 2004 2005 U Commissions Others (%) Administra
Slide 16: Cost to Income Ratio rocketed on one-offs in Q4
Cost to Income Ratio rocketed on one-offs in Q4 Quarterly Operating Expenses & CIR Breakdown of Q4 2004 & 2005 Operating Expenses 83.3% Change Q4‘04 Q4 ‘05 CIR* (%) (Y-o-Y) Annual Avg CIR (%) Personnel Expenses CIR Excl. 1-Offs 57.6% Other Allowances 340,163 463,916 36.4% 52.3% Post Employment Benef
Slide 17: Bank Mandiri Loan Portfolio Analysis
Bank Mandiri Loan Portfolio Analysis Q4 2005 15
Slide 18: Q4 2005 Loan Movement, Performing & Non-Performing Loans
Q4 2005 Loan Movement, Performing & Non-Performing Loans Performing Loan Movements - Bank Only Non-Performing Loan Movements – Bank Only IDR bn 75,496 566 484 901 196 4,286 73,574 3,069 1,383 622 26,752 4,286 24,585 196 Beg. U/G from D/G to Net FX End Beg. U/G to PL D/G from Disburse.CollectionsWrit
Slide 19: Q4 2005 Movement in Category 1 and 2 Loans
Q4 2005 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 544 60,662 59,073 3,907 746 3,011 1,920 3,011 1,920 63 16,423 3,541 838 357 12,912 134 Beg. Bal. D/ Gt o 2 U/ Gf rom D/ Gt o U/ Gf rom Net FXImpact End Bal. Beg. Bal
Slide 20: Provisioning coverage reflects BI requirements
18 50% 40% 30% 20% 10% 0% 12.9% 12,912 14.8% 16,423 Q3 '05 14,394 12,352 Q1 '05 9.4% 2 - Special Mention Loans (Rp Bn) 8,334 9,852 Q3 '04 9,912 15.0% 10621 Q1 '04 10,983 Category 2 Loans – Bank Only 15,345 Cat 2 % Q3 '03 15,585 24.8% 17,432 Q1 '03 16,202 11,371 Q3 '02 Provisioning coverage reflects
Slide 21: NPL, Provisioning & Collateral Details – Bank Only
NPL, Provisioning & Collateral Details – Bank Only Non-Performing Loans by Segment Collateral Valuation Details Collateral value is credited against cash provisioning NPLs Q4U NPLs requirements on a conservative basis. For assets (Rp tn) (Rp tn) (%) valued above Rp 5bn: Corporate 16.70 0.27 37.35%
Slide 22: Quarterly Analysis of Upgrades and Downgrades
Quarterly Analysis of Upgrades and Downgrades* Total Corporate, Commercial & Small Business Loans Net Upgrades/Downgrades# Q4 2005 Details Loan Q4‘05 Q1 Q2 Q3 Q4 DG to UG to Background Balance 2005 2005 2005 2005 NPL PL (Rp bn) Restructured 19,218.3 30.7% 10.0% 4.5% 2.9% 3.0% 0.2% IBRA 4,771.4 15.0%
Slide 23: Bank Mandiri Financial Performance
Bank Mandiri Financial Performance Q4 2005 21
Slide 24: Full Year 2005 core earnings decline 24.8% from FY 2004
Full Year 2005 core earnings decline 24.8% from FY 2004 RoE - After Tax (Annualized) IDR bn 26.2% 8,000 23.6% Gain on Sale/Value of Securities 22.8% 21.5% FX Gain 7,000 Core Earnings 1,651 Pre-Provision Operating Profit 2,072 6,000 775 402 819 5,000 8.1% 1,408 114 2,021 367 1,454 260 799 2.5% 4,000
Slide 25: High CAR maintained at 23.7%
23 23.7% 115.9 27.4 Q4 '05 117.5 27.8 Q3 '05 23.7% 115.9 27.5 Q2 '05 114.1 30.4 Q1 '05 25.3% 108.9 27.5 Q4 '04 102.3 27.2 Q3 '04 27.5% 96.2 26.5 Q2 '04 94.2 28.1 Q1 '04 27.7% Total Capital (Rp tn) 91.9 25.5 Q4 '03 89.5 25.0 Q3 '03 30.7% 79.5 24.4 Q2 '03 BI Min Req 77.8 20.7 Q1 '03 23.4% High CAR mai
Slide 26: Additional Factors
Additional Factors Aggregate of IDR 22.62 tn (US$ 2.30 bn) in written-off loans as of end- December 2005, with significant recoveries on-going: ¾ 2001: IDR 2.0 tn ¾ 2002: IDR 1.1 tn Written-off Written-off Loans Loans ¾ 2003: IDR 1.2 tn ¾ 2004: IDR 1.08 tn ¾ Q4 ’05 : IDR 0.234 tn (US$ 23.8 mn) ¾ F
Slide 27: Corporate Actions
Corporate Actions Interim dividend payment of Rp 60 per share on 30 December 2004 AGM approved payment of Rp 70.496 per share final dividend payment, in keeping with our 50% dividend payout policy. Schedule as follows: ¾ Cum Date – 13 June 2005 Dividend Dividend ¾ Ex Date – 14 June 2005 Payment
Slide 28: Economic Overview, NPL Resolution Progress & Operating Highlights
Economic Overview, NPL Resolution Progress & Operating Highlights 26
Slide 29: Macro-economic environment was unfavorable in 2005
Macro-economic environment was unfavorable in 2005 Economic growth increased, but …due, in part, to interest rates … and depreciation (on average) was below initial expectations... reaching 12.75% by end ‘05 ... in the Rupiah exchange rate GDP Growth (% ) 1-Month SBI Rate (%) Rupiah Exchange Rate (A
Slide 30: Driven by inflationary pressure & decreasing purchasing power
Driven by inflationary pressure & decreasing purchasing power Higher inflation rate … …caused by BBM price increase... … impacted purchasing power Headline Inflation Domestic Price for Fuel Products Growth in Real Disposable (%) (Rp/Ltr) Income (%) +87.5% 17.1 +107.8% 12.4 12.1 4,500 11 4,300 12.5 9
Slide 31: Improvement expected in H1 '06
Improvement expected in H1 ’06: FX rate already strengthened, with interest rates expected to stabilize Trend in the Rupiah Exchange Rates Core Inflation Projection 10,250 IDR( Indonesian Rupiah ) 14 12.75 12% 12 10,000 10,010 10% 10 9,750 One Month SBI (%) 8 7% 9,500 6 Core Inflation (%) Spread 4 9
Slide 32: Bank Mandiri's NPL worsened in Q4
Bank Mandiri’s NPL worsened in Q4 due largely to Macroeconomic pressure and, in small part, to results of BI Audit from June ’05 Bank Only NPL Ratio 7.4% 19.0% 25.9% 24.6% 26.7% 26.7% 2.2 0.6 7.6 NPL IDR Trillion 26.8 11.0 6.6 Description Dec. 2004 NPLs increased due to NPLs increased due to NPLs de
Slide 33: Developments within the top 30 NPLs
Developments within the top 30 NPLs Total outstanding loans amounting to Rp1.7 tn. By October 2005, had paid off loans equivalent to Rp900 bn (Oleo). In Q1/2006, payments amounting to Rp148 bn are Domba Mas planned (Refinery, KCP), with the remainder of the loans to the oleo-chemical businesses to b
Slide 34: Collateral execution has not yet appreciably boosted collections
Collateral execution has not yet appreciably boosted collections • Auction program was intended to provide shock therapy for debtors to encourage settlement of their exposure with the bank • The first stage included 140 debtors with 380 certificates of collateral Implementation • Rp10.7 billion was
Slide 35: Principal haircut program requires fine tuning
Principal haircut program requires fine tuning • Through December 2005, 126 debtors with loan principal of Rp61.8 billion had registered for the haircut program • A total of Rp29.8 billion in principal haircuts were offered, for an expected recovery rate of 51.7% • 73 of the 126 debtors with princip
Slide 36: Road blocks to setting up the SPV
Road blocks to setting up the SPV Currently, there is a common (mis) interpretation that State-Owned Enterprise (SOE) assets are considered as equivalent to state assets: Separation of State • If SOE assets are considered to be state assets, then the mechanism for Assets from State disposal and reso
Slide 37: Key initiatives to boost 2006 collection efforts
Key initiatives to boost 2006 collection efforts • Define the floor price as the liquidation value determined by independent appraisal • Execute auction phase II sequentially, with a minimum 3 days off, thereby giving Auction investors time to participate in several auctions at different locations P
Slide 38: Operating profit before provisions remains strong, driven by growth in Consumer
Operating profit before provisions remains strong, driven by growth in Consumer Operating Profit * - Bank Mandiri Operating Profit * - By Segment Business Unit Small & (Rp. billion) Performance (Rp bn) Corp. Comm. Cons. Micro CRG Treasury* 827 4,523 Earning Assets (Avg. 27,502 23,221 10,436 6,899 24
Slide 39: Key consumer products' operating profit
Key consumer products’ operating profit Operating Profit per Product (Pre-Provision) Key Initiatives in 2005 (Rp. billions) • Launched new product: “Graha Mandiri 701 Angsuran Berjenjang” Consumer • Set up 3 Sales Centers (Jakarta, Medan, Loans Makassar) 61 585 • Established strategic alliances with
Slide 40: Major enhancements in infrastructure
Major enhancements in infrastructure • Additional 120 branches Outlets • Reconfigured 29 outlets • Added 3 Priority Banking outlets • Installed 5 Drive-Thru ATMs Electronic Channels • Distributed 10,497 EDC terminals Electronic • Implemented interbank SKN and • TV cable and internet provider Channel
Slide 41: Key business initiatives to drive operating performance in 2006
Key business initiatives to drive operating performance in 2006 Implementation of Implement an integrated marketing model through Client Service Teams (CST), Client Service including capital market services through Mandiri Sekuritas, which focus on our Team (CST) top 20 customers Alliance Program Ex
Slide 42: Bank Mandiri Financial Summary
Bank Mandiri Financial Summary Q4 2005 40
Slide 43: Summary Balance Sheet: Dec 2004, Sept & Dec 2005
Summary Balance Sheet: Dec 2004, Sept & Dec 2005 FY’04 Q3‘05 FY ‘05 Y-o-Y Rp (trillions) Rp (trillions) Rp (trillions) USD (billions)# Rp % Change Total Assets 248.2 250.3 263.4 26.8 6.1 Cash 2.4 2.6 2.5 0.3 3.4 Current Account w/BI 16.0 18.8 20.3 2.1 27.0 Certificates of BI 8.0 0.1 6.5 0.7 (18.6) O
Slide 44: Summary Quarterly Balance Sheet: Q1 '04 – Q4 '05
Summary Quarterly Balance Sheet: Q1 ‘04 – Q4 ‘05 Q1 ‘04 Q2 ‘05 Q3 ‘05 Q4 ‘05 Q-o-Q Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# Rp % Change Total Assets 249.4 256.8 250.3 263.4 26.8 5.2 Cash 2.4 2.3 2.6 2.5 0.3 (2.8) Current Accounts w/BI 14.3 15.9 18.8 20.3 2.1 7.8 Certificates of BI 3.7 5.4 0.1 6.5 0
Slide 45: Summary P&L Information – Q4 2005
Summary P&L Information – Q4 2005 Q-o-Q Q4 2004 Q3 2005 Q4 2005 Change % of % of Rp % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets* (Billions) Av.Assets (%) Interest Income 4,784 8.0 5,318 8.4 6,023 9.4 13.3 Interest Expense (2,443) (4.1) (3,091) (4.9) (3,952) (6.2) 27.9 Net Interest Income 2
Slide 46: Recap Bond Portfolio Details, December 2005 – Bank Only
Recap Bond Portfolio Details, 31 December 2005 – Bank Only Interest Rate Nominal Mark To Fair Value Series Maturity Date (%) Trading AFS HTM Market Trading AFS HTM Fixed Rate FR0002 15-Jun-09 14.00% 68 102.47 70 FR0004 15-Feb-06 13.13% 2,700 99.91 2,698 FR0005 15-Jul-07 12.25% 11,000 98.44 10,829 FR
Slide 47: Bank Mandiri's Credit Ratings
Bank Mandiri’s Credit Ratings S&P Moody’s Fitch Pefindo Sovereign Ratings Outlook Positive Positive Stable Long Term Bank Deposits B3 Long Term Foreign Currency Debt B+ B2 BB- Short Term Foreign Currency Debt B NP NR Long Term Local Currency Debt BB B2 NR Short Term Local Currency Debt B Bank Mandir
Slide 48: Reconciliation to IFRS
Reconciliation to IFRS FY ’02 FY ’03 FY ’04 FY ’05 Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Net profit under Indonesian GAAP 2,746 4,586 5,256 603 IFRS Adjustments Allow. for possible losses on earning assets 955 (662) (309) (2,681) Allow. for possible losses on commitments & continge
Slide 49: Bank Mandiri's Strategic Roadmap
Bank Mandiri’s Strategic Roadmap 47
Slide 50: Our aspiration is to be a Dominant Multi-Specialist Bank
Our aspiration is to be a Dominant Multi-Specialist Bank Dominant Multi-specialist Bank Model Dominant Dominant Bank Bank inin 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 str
Slide 51: Individual segment strategies
Individual segment strategies Maintaining our position as market leader and focusing our effort to shift into a more profitable product mix (e.g. fee-based products) Corporate Corporate Leveraging our strength in wholesale and investment banking through Mandiri Sekuritas Banking Banking Ensuri
Slide 52: Transformation themes for achieving these aspirations
Transformation themes for achieving these aspirations Strategic Aspiration: Dominant Multi-Specialist Bank Build Build winning winning Delivertailored Deliver tailored Strengthen Strengthenrisk risk organization organization and and propositionfor proposition for Revamp Revampalliance alliance manag
Slide 53: Transformational path towards Bank Mandiri's aspirations
Transformational path towards Bank Mandiri’s aspirations Horizon 3: Consolidate for domestic leadership Horizon 2: Re-organize for growth Horizon 1: • Scale up business models Stabilize the platform • Refine existing business models to achieve top • Participate in domestic positions (e.g., in top 3)
Slide 54: Bank Mandiri Additional Loan Analysis & Portfolio Detail
Bank Mandiri Additional Loan Analysis & Portfolio Detail 52
Slide 55: Changes in BI Regulations for Earning Asset Classification
Changes in BI Regulations for Earning Asset Classification (PBI No. 7/2/PBI/2005) Classification by Payment History Previously Current No change to BI Prov. Req. Classification Category 1 - Current Current Current 1% Classification by Category 2 – Special Mention 1 – 90 days 1 – 90 days 5% by Aging
Slide 56: 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
Slide 57: Quarterly Analysis of NPL and PL changes
Quarterly Analysis of NPL and PL changes Q1 2005# Q2 2005# Q3 2005# Q4 2005# Loan Background Net Net Net Value (Rp bn) DG to NPL UG to PL Net Corporate Loans Restructured 42.6% 6.1% 5.7% 13,049 1.3% 0.2% 1.1% IBRA 18.2% 3.5% 0.9% 3,994 5.2% - 5.2% Pre-Merger - 0.2% - 161 6.1% - 6.1% Post-Merger 8.3%
Slide 58: Q4 2005 Loan Detail: Collectibility by Business Unit
Q4 2005 Loan Detail: Collectibility by Business Unit Loan Profile: Q4 Collectibility (%) by BU - Bank Only Loan Profile: Q4 Collectibility (Rp bn) by BU - Bank Only 1.5% 0.9% 50,000 6.0% 5.0% 0.6% 13.2% 0.8% 3.5% 2.0% 0.7% 23.6% 15.8% 7.1% 5.9% 13.1% 40,000 6.7% 6.9% 6.9% 13.7% 5 30,000 5 11.7% 4 4
Slide 59: Q4 2005 Loan Detail: Downgrades to NPL
Q4 2005 Loan Detail*: Downgrades to NPL Loan Profile: Q4 Downgrades to NPL (Rp 4,106 bn) - Bank Only Corporate, Commercial & Small 100% O/S Program Business loans downgraded to NPL in Small Oth<5% IBRA Export Q4 totaled Rp 4,106 billion (4.1% of Mining-Oth 90+ Days 90% Synd. total loans). Of these l
Slide 60: Q4 2005 Loan Detail: Non-Performing Loans
Q4 2005 Loan Detail*: Non-Performing Loans Loan Profile: Q4 NPLs (Rp 26,248 bn) Bank Only Corporate, Commercial & Small 100% Program Business NPLs totaled Rp26,248 billion O/S Oth<5% Export in Q4, or 26.2% of total loans. Of these 90% IBRA Trans NPLs in Q4: Mfg-Wood 28.7% remain current on interes
Slide 61: Q4 2005 Loan Detail: Loans Written-Off in Q4
Q4 2005 Loan Detail*: Loans Written-Off in Q4 Loan Profile: Q4 NPLs (Rp 1,346 bn) Bank Only Corporate, Commercial & Small 100% Small Program Business loans written-off totaled IBRA USD Export Rp1,346 billion in Q4. Of these Written- Oth<5% 90% off loans in Q4: Constr Synd 67.7% are to Commercial c
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 30,000 60.0% 60% 12,000 75.0% Rp Value 65.5% Rp Value 51.9% 51.3% Current (%) Current (%) 10,000 <30 Days (%) 62.5% 25,000 <30 Days (%) 50
Slide 63: Q4 2005 Loan Detail: New Downgrades to Category 2
Q4 2005 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q4 Downgrades to Cat. 2 loans (Rp 2,097 bn) - Bank Only Rp 2,097 billion (2.1% of total loans) 100% IBRA O/S in Corporate, Commercial & Small 61+ Program Oth<5% Restr USD Export Business loans were downgraded to Small 31-60 90% Categor
Slide 64: Q4 2005 Loan Detail: Category 2 Loans
Q4 2005 Loan Detail*: Category 2 Loans Loan Profile: Q4 Category 2 Loans (Rp 10,962 bn) Bank Only Rp 10,962 billion (10.9% of total loans) 100% New Bal. in Corporate, Commercial & Small 61+ Program IBRA Small 31-60 Oth<5% Synd. Business loans were in Category 2 in 90% Export Q4. Of these Special Men
Slide 65: Q4 2005 Loan Detail: Upgrades to PL
Q4 2005 Loan Detail*: Upgrades to PL Loan Profile: Q4 Upgrades to PL (Rp 148 bn) - Bank Only Corporate, Commercial & Small 100% O/S Business loans upgraded to PL in Q4 Export Small Oth<5% totaled Rp 148 billion (0.1% of total USD 90% Restr Agri Synd. loans). Of these loans: Mfg-RawM 80% 63.4% were
Slide 66: Q4 2005 Loan Detail: Performing Loans
Q4 2005 Loan Detail*: Performing Loans Loan Profile: Q4 Performing Loans (Rp 60,772 bn) Bank Only Rp 60,772 billion (60.6% of total loans) 100% O/S Other in Corporate, Commercial & Small IBRA Program Small Export Business loans were performing in Q4. Oth<5% 2 90% Restr Of these performing loans in Q
Slide 67: Limited Restructured Loan Activity in Q4
Limited Restructured Loan Activity in Q4 Restructured Loan Movement 1999 - Q4 ‘05 Loans by Restructuring Type in Q4 2005 Others# IDR bn Write-Offs Repayments Restructuring Balance Maturity extension 50% Additional loans 3% LT loans 10,583 27,423 25,123 29,542 23,987 21,045 21,551 19,427 w/convert. M
Slide 68: Q4 2005 Loan Detail: Restructured Loans
Q4 2005 Loan Detail*: Restructured Loans Loan Profile: Q4 Restructured Loans (Rp 19,421 bn) Bank Only 100% Of the remaining Rp 19,421 billion in Program PL UG Small restructured Corporate, Commercial & Oth<5% 90% Export Small Business loans in Q4, or 19.4% 5 Trading of total loans: Comm 80% Bus Serv
Slide 69: Q4 2005 Loan Detail: IBRA Loans
Q4 2005 Loan Detail*: IBRA Loans Loan Profile: Q4 Restructured Loans (Rp 4,771 bn) Bank Only 100% Rp 4,771 billion in loans purchased Oth<5% Program Small Agri Export from IBRA remain on the books as of Comm Mfg-Chem IDR Q4, accounting for 4.8% of total loans: 90% PL NC Trading WC 22.4% are perfor
Slide 70: Loan Portfolio Sector Analysis, Q4 2005
Loan Portfolio Sector Analysis, Q4 2005 Mfg-Oth Agri Mfg-F&B Mfg-F&B 10.4% 11.0% Agri Constr Constr Mfg-Oth 9.2% 15.1% Mfg-Chem Mfg-Text Mfg-Chem 8.8% Bus Serv Oth<4% Trading-Oth 14.4% Mfg-Text 6.5% Mfg-P&P Trading-Oth Bus Serv Trading-Ret Trading-Ret 5.4% 5.8% 4.6% Trading-Distr Trading-Distr 4.0%
Slide 71: Q4 2005 Loan Detail: Corporate Loans
Q4 2005 Loan Detail: Corporate Loans Loan Profile: Q4 Corporate Loans Only (Rp 44,725 bn) Bank Only Rp 44,725 billion in loans were in the 100% 31-60 Other PL UG O/S Corporate portfolio in Q4, or 44.6% of < 30 Export Oth<5% IBRA total loans. Of the Corporate Loans in 90% 5 Q4: Synd. 80% Constr 62.
Slide 72: Q4 2005 Loan Detail: Commercial & Small Business Loans
Q4 2005 Loan Detail: Commercial & Small Business Loans* Loan Profile: Q4 Commercial & Small Loans* Only (Rp 42,295 bn) Bank Only Rp 42,295 billion in loans were in the 100% Other IBRA PL UG 61+ Program Commercial portfolio in Q3, or 42.2% 5 Oth<5% Export 90% Restr of total loans. Of the Commercial &
Slide 73: Q4 2005 Loan Detail: Rupiah Loans
Q4 2005 Loan Detail*: Rupiah Loans Loan Profile: Q4 Loans (Rp 55,724 bn) Bank Only Rp 55,724 billion in loans were Rupiah 100% Other IBRA PL UG 61+ denominated in Q4, or 55.5% of total 5 Oth<5% Program 31-60 Small 90% Export loans. Of the Rupiah Loans in Q4: Trans Restr 4 3 Bus Serv 80.4% are perf
Slide 74: Q4 2005 Loan Detail: Foreign Currency Loans
Q4 2005 Loan Detail*: Foreign Currency Loans Loan Profile: Q4 FX Loans (Rp 31,296 bn) Bank Only Rp 31,296 billion in loans were foreign 100% PL UG currency denominated in Q4, or 31.2% 31-60 O/S Oth<5% Export of total loans. Of the FX Loans in Q4: 90% IBRA Comm 5 < 30 Mfg-F&B 51.1% are performing l
Slide 75: Electronic banking channels rapidly expanding
Electronic banking channels rapidly expanding ATM Average Daily Transaction Volume and Value Other Transaction Services 293,246 293,874 6,988 263,908 Debit Cards Issued* (000) SMS Subs. (000) 239,554 SMS Trans. (000) Avg Daily Volume (000) Internet Bank. Subs. (000) 225,829 Call Center Trans. (000)
Slide 76: Credit Card business growth has resumed
74 18 209 Dec '05 4 23 17 193 Nov '05 28 4 20 2 Visa Card Monthly Sales by Type of Transaction 199 Oct '05 2 191 Sep '05 199 Aug '05 30 7 216 Jul '05 7 19 190 Jun '05 4 19 19 172 May '05 3 3 170 Apr '05 21 187 Mar '04 4 21 19 166 Feb '04 5 168 Jan '04 7 20 191 Dec '04 7 18 165 Nov '04 8 24 179 Oct '
Slide 77: Credit Card portfolio stable throughout in Q4
Credit Card portfolio stable throughout in Q4 Mandiri Visa Card Delinquency Rates Monthly Charge-offs, NPLs & Recoveries (%) (Rp Billion) 106.1 21.3% 30 DPD - Rp NPLs (90+DPD) 90 DPD - Rp Write-Offs 82.9 Recoveries 30 DPD - Cards 90 DPD - Cards 75.6 16.8% 70.7 67.2 13.3% 12.7%10.7% 10.2% 45.4 9.1% 9
Slide 78: Summary of Principal Subsidiaries
Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp632.6 billion • Equity Investment of Rp661.3 billion • Equity Investment of Rp62.4 billion • Total Assets Rp8,273billion, with total • Total Assets Rp1,259 billion, total • Total Assets of R
Slide 79: Bank Syariah Mandiri
Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) 533 Rp Bn 2003 2004 2005 Total Assets 3,422 6,870 8,273 Branches Cash & placement w/ Customers (000s) 1,023 796 1,689 BI Current Accounts & 357 Placements w/Other 36 235 168 Banks Securities - Net 76 427 383 To
Slide 80: Bank Syariah Mandiri
Bank Syariah Mandiri Summary P&L (Rp billions) 2002 2003 2004 2005 Total Operating Income 162.7 279.4 584.2 865.5 3rd Party Share on Returns 71.5 148.4 269.2 386.4 Bank's Share in Operating Income 91.3 131.1 315.0 479.1 Other Operating income 35.5 51.9 102.0 93.6 Operating Expenses 84.4 159.9 276.4
Slide 81: Mandiri Sekuritas
Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2003 2004 2005 Rp Bn 2003 2004 2005 Total Assets 1,079.7 1,435.7 1,258.7 Operating Revenue 102.4 244.0 197.3 Cash & equivalent 82.9 117.4 51.8 Brokerage Commissions 3.9 15.6 20.9 Time deposit 50.0 50.0 - Investment Mgmt Fees 5.1 53.0 42.6 Mar
Slide 82: Bank Mandiri at a Glance
Bank Mandiri at a Glance 80
Slide 83: Organization Chart
Organization Chart Board of Commissioners Chairman – Edwin Gerungan Risk Policy Committee Audit Deputy Chairman - Muchayat Nomination & Remuneration Committee Committee Commissioners – Soedarjono, Richard Claproth, Secretariat & Research Committee MD & SEVP Gunarni Soeworo, Pradjoto, Yap Tjay Soen C
Slide 84: Staffing and Distribution Network Growth
82 90 2,560 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 500 1,184 2001 3,160 2001 ATM-Link Network ATM Network 211 533 2000 Staffing and Distribution Network Growth 2000 513 1999 1999 ATMs New 120 7.6 21,192 2005 909 2005 7.0 19,693 2004 789 2004 59
Slide 85: Loan growth, quality and provisioning relative to peers
83 30.4% Lippo 48.0% Mandiri 40.0% BCA 50.0% Niaga Ratio of Provisions to NPL 54.7% BII 51.0% BNI Loan to Deposit Ratio 55.2% Mandiri 73.0% BII 55.4% Panin 82.0% Permata Loan growth, quality and provisioning relative to peers (%) (%) 56.5% BNI 93.0% Panin 80.6% BRI 133.0% Danamon 81.8% Permata 147.0
Slide 86: Asset and liability mix relative to peers
84 8.4% Mandiri 3.5% Lippo 9.1% Lippo 3.8% BCA Yield on Assets (p.a.) 9.3% BII Cost of Funds (p.a.) 4.2% BNI 9.8% BCA 4.4% BII 10.0% BNI 4.9% Mandiri (%) (%) 10.1% Panin 4.8% BRI 10.4% Niaga 5.2% Niaga 10.9% Permata 5.1% Permata 11.9% Danamon 5.7% Danamon 16.7% BRI 5.8% Panin 33.7% Lippo 32.0% Danam
Slide 87: Efficiency measures relative to peers
85 5.0% BRI 44.9% Panin 3.4% Permata 45.0% BCA 3.0% BII 48.2% Danamon 2.8% Lippo Cost/ Income 51.8% Mandiri Cost/Assets *Annualized 2.7% Danamon 53.8% BNI (%)* (%) 2.4% BNI 57.3% Niaga 2.3% Niaga 57.8% BRI 2.2% BCA 62.0% Lippo 1.8% Mandiri 69.0% BII 1.6% Panin 72.9% Permata 213 Lippo 51 Permata 228
Slide 88: Measures of scale and returns relative to peers
86 197 Panin 7.4% Mandiri 298 Niaga 14.1% BNI Return on Equity (After Tax) 523 Permata 16.6% Panin 674 BRI 12.0% Permata ATMs 690 Lippo 27.2% Lippo (%) 717 BII 27.4% BCA 804 Danamon 25.2% Niaga 2,272 BNI 28.3% BII 2,562 Mandiri 30.8% Danamon Measures of scale and returns relative to peers 3,447 BCA
Slide 89: Bank Mandiri Audited Financial Statements
Bank Mandiri Audited Financial Statements Q4 2005 87
Slide 90: Balance Sheets as of December 31, 2005 and 2004 (Assets)
BALANCE SHEETS As of December 31, 2005 and 2004 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION December 31, 2005 December 31, 2004 December 31, 2005 December 31, 2004 (Audited) (Audited) (Audited) (Audited) ASSETS 1. C as h 2,428,499 2,369,196 2,522,764 2,439,465 2. Placements with Bank In
Slide 91: Balance Sheets as of December 31, 2005 and 2004 (Liabilities)
BALANCE SHEETS As of December 31, 2005 and 2004 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION December 31, 2005 December 31, 2004 December 31, 2005 December 31, 2004 (Audited) (Audited) (Audited) (Audited) LIABILITIES AND SHAREHOLDERS' EQUITY 1 Demand Deposits a. Rupiah 30,124,035 28,022,
Slide 92: Statements of Profit and Loss
STATEMENTS OF PROFIT AND LOSS For the periods from January 1 to December 31, 2005 and 2004 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION December 31, 2005 December 31, 2004 December 31, 2005 December 31, 2004 (Audited) (Audited) (Audited) (Audited) INCOME AND EXPENSES FROM OPERATIONS 1. I
Slide 93: Statements of Commitments and Contingencies
STATEMENTS OF COMMITMENTS AND CONTINGENCIES As of December 31, 2005 and 2004 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION December 31, 2005 December 31, 2004 December 31, 2005 December 31, 2004 (Audited) (Audited) (Audited) (Audited) COMMITMENTS COMMITMENT RECEIVABLES 1. Unused fund borr
Slide 94: Management of the Bank as of December 31, 2005
MANAGEMENT OF THE BANK AS OF DECEMBER 31, 2005 SHAREHOLDER Jakarta, 2006 Board of Commissioners - Chairman : Edwin Gerungan Republic of Indonesia : 69.11% S. E & O - Deputy Chairman : Muchayat (Ultimate Shareholders') Board of Directors - Commissioner : Soedarjono PT Bank Mandiri (Persero) Tbk. - Co
Slide 95: Earning Assets and Other Information
EARNING ASSETS AND OTHER INFORMATION As of December 31, 2005 and 2004 (In Millions of Rupiah) BANK December 31, 2005 (Audited) December 31, 2004 (Audited) No ACCOUNT SPECIAL SUB SPECIAL SUB CURRENT DOUBTFUL LOSS TOTAL CURRENT DOUBTFUL LOSS TOTAL MENTION STANDARD MENTION STANDARD I Related Parties A
Slide 96: Foreign Exchange Transaction and Derivatives
FOREIGN EXCHANGE TRANSACTION AND DERIVATIVES As of December 31, 2005 (In Millions of Rupiah) BANK (Audited) NO TRANSACTION Contract Market Value Derivative Receivable & Payable Contract Value Hedging Others Receivable Payable Netting Agreement A. Exchange Rate Related 1 Spot - 458 - - - 2 Forward -
Slide 97: Calculation of CAR
95 CALCULATION OF CAR As of December 31, 2005 and 2004 (In Millions of Rupiah) BANK December 31, NO DESCRIPTION December 31, 2004 2005 (Audited) (Audited) I. COMPONENTS A. Core Capital 20,858,866 20,283,275 1. Paid-Up Capital 10,127,859 10,066,427 2. Disclosed Reserves a. Agio 6,006,255 5,967,897 b.
Slide 98: Loan Purchased from IBRA
96 LOAN PURCHASED FROM IBRA January 1, 2005 to December 31, 2005 (In millions of Rupiah) (Based on Bank Indonesia's Regulation No. 4/7/PBI/2002 dated September 27, 2002 Chapter VI section 24) a. Summary of loan purchased from IBRA Amount NO DESCRIPTION (Audited) 1 Loan principal / outstanding balanc
Slide 99: Financial Ratios
FINANCIAL RATIOS As of December 31, 2005 and 2004 BANK NO KEYS RATIOS December 31, 2005 December 31, 2004 (Audited) (Audited) I. Capital 1. CAR by considering credit risk 23.65% 25.28% 2. CAR by considering credit risk and market risk 23.21% 24.48% 3. Premises and Equipment to Capital 28.21% 26.93%
Slide 100: Loan Purchased from IBRA
LOAN PURCHASED FROM IBRA January 01, 2005 - December 31, 2005 (In millions of Rupiah) NO DESCRIPTION Amount 1 Loan principal / outstanding balance as of December 31, 2005 4,771,405 2 Amount of loan purchased from January 1, 2005 - December 31, 2005 - 3 Total provision / deferred income 159,858 4 All
Slide 101: Notes
Notes _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________
Slide 102: Notes
Notes _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________
Slide 103: Equity Research Contact Details
Equity Research Contact Details BROKERAGE ANALYST TELEPHONE E-MAIL ABN AMRO Asia Securities Indonesia Manoj Nanwani 6221-515-6014 manoj.nanwani@id.abnamro.com BAHANA SECURITIES Andy Lesmana 6221-250-5081 alesmana@bahana.co.id BNP PARIBAS PEREGRINE Tjandra Lienandjaja 6221-5798-4661 tjandra.lienandja
Slide 104: For Additional Information
103 For Additional Information: Please refer to our website at www.bankmandiri.co.id Or Contact: Ekoputro Adijayanto 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
PT Bank Mandiri (Persero) — FY2005 Earnings Presentation on 6ix