PT Bank Mandiri (Persero) Tbk · IDX:BMRI

PT Bank Mandiri (Persero) Tbk — Q3 2008 Earnings Presentation

88 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, Oct 30, 2008

1. Slide 1: PT Bank Mandiri 3rd Quarter 2008 Results Presentation

   PT Bank Mandiri (Persero) Tbk rd 3 Quarter 2008 Results Presentation

2. Slide 2: Share Information

   Share Information Per 30 September 2008 Description 4,000 % of Investors # of Shares % DOMESTIC BMRI 3,500 1 Government of RI 1 14,000,000,000 66.97% JCI 2 Retail 13,185 355,670,429 1.70% 3,000 3 Employees 9,174 197,603,657 0.95% 4 Cooperatives 2 465,000 0.00% 2,500 5 Foundations 16 23,056,500 0.11%

3. Slide 3: Bank Mandiri Presentation Contents

   Bank Mandiri Presentation Contents Results Overview Page # ƒQ3 2008 Financial Highlights 2 ƒQ3 2008 Growth Momentum and Balance Sheet 3-4 ƒLoan Growth & LDR 5-6 ƒLiquidity Strategy 7-10 ƒQuarterly Funding Mix & Deposit Costs 11 ƒQuarterly Net Interest Margins 12 ƒQuarterly Fees & Commissions 13 ƒRec

4. Slide 4: Key Financial Highlights

   Key Financial Highlights Bank Mandiri’s 9-Month 2008 Performance continued to demonstrate marked improvements in a number of key indicators: 9-Month 2007 9-Month 2008 U% Loans Rp121.7 tn Rp162.8 tn 33.7% Net NPL Ratio 3.30% 0.56% (83.0%) Gross NPL Ratio 12.21% 4.44% (63.6%) Low Cost Funds Ratio 58.2

5. Slide 5: Building momentum for growth

   Building momentum for growth Loans by SBU* Deposits by Product – Bank Only (Rp Bn) Y-o-Y (Rp Bn) Y-o-Y U U 135 Rp Savings Deposits Rp Demand Deposits Corp Int'l Comm 4.04 83.4% 250 FX Demand Deposits Rp Time Deposits Cons Small Micro 13.42 35.4% FX Time Deposits 15.9 120 3.46 16.1 17.3% 14.7 18.74 1

6. Slide 6: Solid balance sheet insulates against rate increases

   Solid balance sheet insulates against rate increases (Bank Only) % of % of Assets Amount Liabilities Amount Assets Liab. Cash 7,966 2.67% Current Account 54,453 18.28% SBI & BI Placement (net) 31,877 10.70% Savings 82,162 27.58% Placement w/other banks 6,257 2.10% Time Deposits (Rp) 78,162 26.23% (n

7. Slide 7: LDR rises to 65.0% as a result of 33.7% Y-o-Y growth

   LDR rises to 65.0% as a result of 33.7% Y-o-Y consolidated growth Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only Loans (Rp tn) 65.0% LDR (%) 62.2% 59.7 55.4 61.1 68.7 57.2% 56.4% 54.3% 53.6 Corporate 50.5 53.7% 44.7 40.2 42.3 42.5% 38.2 Commercial 39.1 41.2 35.7 36.4 3

8. Slide 8: Rp25.2 tn in loans disbursed in Q3 '08

   Rp25.2 tn in loans disbursed in Q3 ‘08 Loan Movement (Rp tn) – Bank Only Loan Disbursement by Segment (Rp tn) – Bank Only 4.40 9.64 0.06 146.46 25.23 0.83 134.50 2.38 1.14 0.96 4.70 25.23 16.04 Q2 '08 Disbursment Installment Payment FX Impact Write-Offs Q3 '08 Corporate Commercial Small Micro Consum

9. Slide 9: Mandiri strategies to address liquidity concerns

   Mandiri strategies to address liquidity concerns 1 ƒ At present, Bank Mandiri’s liquidity level is above our safety level, and is projected to be controlled in the short, medium and long terms. ƒ We are closely monitoring and anticipating cash flow requirements, especially FX ( loans Hands-On Hands-

10. Slide 10: Mandiri strategies to address liquidity concerns

    Mandiri strategies to address liquidity concerns 3 ƒ In trade finance, we are being selective on financing for new LC Imports and minimize the possibility of customer defaults, making sure that customers have funds for repaying Cautious Cautious FX FX the financing. Position Position ƒ Manage our NO

11. Slide 11: Mandiri FX loans relatively well controlled

    Mandiri FX loans relatively well controlled Low FX loan NPLs Sector concentration of FX Loans does Ex-Restructured FX Loans relatively low not exceed 20% (USD Million) (Rp Billion) Sector Nominal % Farming Labour & Farming 235 5.86% 7,211 16.242 Oil & Gas 640 15.95% 247 4,011 Mfg F&B 449 11.20% 687

12. Slide 12: FX loan exposure contained as FX funding rises

    FX loan exposure contained as FX funding rises FX Loans FX Funding (USD million) (USD million) (343) +488 4,018 4,007 4,075 4,011 4,030 3,939 3,952 3,934 4,007 247 249 247 248 3,865 247 248 249 3,687 3,790 3,815 3,756 40 39 40 39 35 43 34 44 34 42 3,694 40 39 35 46 3,519 661 249 652 38 46 658 664 69

13. Slide 13: Q3 Deposits rise by 15.5% Y-o-Y and 4.3% Q-o-Q

    11 3.2%3.0% 2.9% 9.2% 7.4% 2.6%2.9%2.8% 1.5%1.6% 2.8% Q3 Deposits rise by 15.5% Y-o-Y and 4.3% Q-o-Q Q3 '08 8.2%8.0% 8.3% 2.2% 6.3% Q2 '08 Rp Savings 6.9% 6.8% 1 Mo. SBIs 2.5%2.5% 2.4% Q1 '08 2.0% 3.9% 3.6% FX TD Q4 '07 Q3 '07 Average Quarterly Deposit Costs (%) 2.6% 1.7% 3.7% 3.5% 8.8% 7.4% Q2 '07

14. Slide 14: Q3 NIM reaches 6.0% on asset yields of 10.1%

    Q3 NIM reaches 6.0% on asset yields of 10.1% Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency* 20% 18.9% 17.6% Yield on Assets 15.9% 13.0% 13.0% Cost of Funds IDR 14.0%17.6% 14.1% 15% 13.2% 12.5% 11.9% 12.1% 12.0% 12.1% 14.4% 10.4% 11.1% 10.8% 10.8% 11.0% 10.7% 10% 11.7% 7.4% 10.

15. Slide 15: 9-Mo. Fees & Commissions grew by 40.3% Y-o-Y

    9-Mo. Fees & Commissions grew by 40.3% Y-o-Y Breakdown of Q3 2007 & 2008 Non-Loan Related Fees & Commissions (Rp bn) Non-Loan Related Fees & 9-Mo. U% Q3 U% 9-Mo. ‘07 Q2 ‘08 Q3 ‘08 9-Mo. ‘08 Commissions (Y-o-Y) (Q-o-Q) Administration Fees 537.53 261.24 300.59 799.25 48.7% 15.1% Opening L/Cs, Bank Gua

16. Slide 16: Limited Impact on Government Recap Bonds

    Limited Impact on Government Recap Bonds Recap Bond Portfolio by Type and Maturity (Rp bn) Bonds by Rate Type & Portfolio as of Sep 2008 (Rp bn) Trading 70 Maturity/ Available for Sale Held to 1.71 Portfolio 60 Fixed Rate Rp bn Maturity Nominal MTM Nominal MTM 50 Variable Rate 40 Fixed Rate Bonds 30

17. Slide 17: Q3 Cost to Income Ratio drops to 40.6%

    Q3 Cost to Income Ratio drops to 40.6% on lower G&A expense, bringing YTD average to 43.1% Quarterly Consolidated Operating Expenses & CIR* Breakdown of Q3 2007 & 2008 Operating Expenses CIR* (%) Q3U 9-Mo.U Q3 ‘07 Q3 ‘08 (Y-o-Y) (Y-o-Y) Annual Avg CIR (%) Personnel Expenses Base Salary 327,524 356,8

18. Slide 18: Q3 NPLs of Rp7.2 tn due to FX impacts

    Q3 NPLs of Rp7.2 tn due to FX impacts despite higher payments and lower downgrades Non-Performing Loan Movements (Rp bn) – Bank Only Movement by Customer Segment (Rp Bn) 500 115 454 347 58 Cons 157 Micro/Small 7,109 7,200 Comm 400 85.8 Corp 300 119.3 200 172.0 100 41.9 19.3 37.4 77.3 29.7 16.2 28.4

19. Slide 19: Gross NPLs decline to 4.4% with provisioning coverage of 138.9%

    Gross NPLs decline to 4.4% with provisioning coverage of 138.9% NPL Movement - Consolidated Category 2 Loans – Bank Only 70.9% 212.6% 20,000 50% 190.4% Cat 2 % 201.7% 18,000 175.8% 16,000 146.7% 40% 25.3% 138.9% 35.7% 151.1% 139.1% 122.6% 14,000 129.5% 109.0% 128.8% 12,000 30% 19.8% 86.7% 100.9% 24.

20. Slide 20: Cash Provisioning for Category 3 and 4 loans

    Cash Provisioning for Category 3 and 4 loans now at 77.4% and 89.8% respectively Non-Performing Loans by Segment Collateral Valuation Details NPLs Q3U NPLs Collectibility 1 2 3 4 5 (Rp tn) (Rp tn) (%) Total Cash Corporate 4.68 (0.07) 6.81% 1,421 2,415 1,558 747 4,355 Prov. (Rp bn) Commercial 1.50 0.

21. Slide 21: Annualized net downgrades of 0.84% on new loans in Q3

    Annualized net downgrades of 0.84% on new loans in Q3 Total Loans originated since 2005 Net Upgrades (%)/Downgrades (%) # Q3 2008 Details Q3 ‘08 DG to UG to Loan Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Balance NPL PL Background 2006 2006 2007 2007 2007 2007 2008 2008 2008 (Rp bn) % % Corporate 50,372.3 - 0.02 -

22. Slide 22: Progress on selected debtors as of 30 Sept '08

    Progress on selected debtors as of 30 Sept ’08 ƒ Loans outstanding to this debtor as of 30 Sept 2008 were Rp1.087 billion. Semen Semen Bosowa Bosowa ƒ The restructuring approval on Semen Bosowa Maros has been signed on 25 September 2008. Maros Maros ƒ The debtor is now being monitored for an upgrade

23. Slide 23: 9-Mo. '08 operating profit up 26.2%

    9-Mo. ‘08 operating profit up 26.2% from 9-Mo. ’07 excluding non-recurring interest income 9-Month 2007 9-Month 2008 Rp billion Rp billion 3,123 2,390 6,701 11,009 5,712 9,684 Up 6,362 7,431 26.2% Excluding Non- recurring Q1 Interest Income 5,887 Net Interest Fee-Based Income Overhead Pre-provision

24. Slide 24: Pre-Provision Operating Profit

    9-Mo. Core earnings up 26.6% to Rp7,149 bn Core Earnings Profit After Tax & ROE IDR bn Gain on Sale/Value of Securities 8,000 FX Gain 213 RoE - After Tax Non-Recurring Interest 311 Core Earnings 26.2% (Annualized) 475 282 1,651 7,000 23.6%22.8% 1,306 21.5% 2,072 6,000 247 18.1% Pre-Provision Operati

25. Slide 25: Operating Performance Highlights

    Operating Performance Highlights 23

26. Slide 26: Leveraging leadership in cash generating businesses

    Recap: Leveraging leadership in cash generating businesses to build emerging and future growth engines SBU 9-Month ‘08 Contribution Margin Consumer Finance & Micro Corporate & & Retail Banking Building 507 Rp3,708 bn Treasury Future Rp2,509 bn Growth 2,553 Engine 11 3,201 Leveraging Optimizing Optim

27. Slide 27: ...supported by 5 pillars of subsidiaries

    …supported by 5 pillars of subsidiaries Syariah Banking Investment Insurance Niche Banking Multi-Finance Bank Bank Sinar TUNAS FINANCE Harapan Bali Total Assets Bond Trading Volume Total Assets Total Loans Total Financing Rp16.5 tn Rp23.28 tn Rp4.025 tn Rp250 bn Rp2.436 bn Total Financing Bond Under

28. Slide 28: Each SBU contributing to strong NII & Fee growth

    Each SBU contributing to strong NII & Fee growth Total Net Interest Income Total Fees & Other Op. Inc. Total Contribution Margin (Rp bn) (Rp bn) (Rp bn) Corporate 1,751 316 1,824 Treasury 515 421 685 Commercial 1,873 338 1,950 MRB 4,537 1,441 3,201 Consumer 827 190 507 Finance Total 9,503 2,706 8,16

29. Slide 29: Corporate Banking: Contribution Margin declines on rate increase

    Corporate Banking: Contribution Margin declines on rate increase Performance to Date, 9-Month 2008 Contribution Margin (after PPAP) Rp bn Q1 Q2 Q3 Q4 Rp bn 316 139 2,906 1,929 104 1,824 692 1,299 2,079 (18%) 1,824 488 1,077 537 983 547 592 452 614 741 545 (6) 2006 2007 2008 Asset Liabilities Fees Ov

30. Slide 30: Corporate Banking: Strengthening Growth in Key Areas

    Corporate Banking: Strengthening Growth in Key Areas Breakdown of Net Expansion by Sector, Q3 ’07 – Q3 ‘08 Consumer Loans from Alliance Program Rp Billion (Total Rp17.67 tn) (10 top corporate clients) Rp Billion U% 1,259 Mfg-F&B 5,805 45.04% 1,128 Comm 4,791 67.55% Mining-Oil & Gas 2,829 50.91% 693

31. Slide 31: Mandiri Sekuritas continues to be well capitalized

    Mandiri Sekuritas continues to be well capitalized 9-Mo. ’07 9-Mo. ’08 Growth Y-o-Y (Rp Bn) (%) Revenues 316 324 2% • Investment Banking 116 121 4% • Capital Market 168 140 (17%) • Treasury 9 10 11% • Investment Mgt 22 52 136% Operating Expenses 148 198 34% Earnings After Tax 83 46 (45%) Equity Tran

32. Slide 32: Treasury & International Banking

    Treasury & International Banking Performance to Date, 9-Month 2008 Net Interest Income Rp bn Rp bn 421 936 70 569 187 515 342 5 685 9-Mo. '06 9-Mo. '07 9-Mo. '08 Business Volume (Rp bn) 515 Rp bn Loans Deposits 1,011 2,512 3,007 2,823 4,231 4,348 5,290 913 Interest Fees Revenue Losses on Overhead Pr

33. Slide 33: Commercial Banking: Strong revenues from both Liabilities & Assets

    Commercial Banking: Strong revenues from both Liabilities & Assets Performance to Date, 9-Month 2008 Contribution Margin (after PPAP) Rp bn Q1 Q2 Q3 Q4 Rp bn 155 338 104 2,114 2,055 1,950 1,957 1,950 1,015 578 27% 617 863 564 630 858 445 485 946 703 487 Asset Liabilities Fees Overhead Operating Prov

34. Slide 34: Commercial Banking: Strong growth in both Liabilities & Assets

    Commercial Banking: Strong growth in both Liabilities & Assets Breakdown of Net Expansion by Sector, Q3 ’07 – Q3 ‘08 Loan & Deposit Geographic Distribution, Q3 2008 (Total Rp6.66 tn) U% Rp2,558; 29.7% Constr 1,249 21.18% Rp2,423; Rp844; 40.6% 14.9% Distribution 895 33.89% Jakarta Rp3,883; Trans 694

35. Slide 35: Strong growth from our Syariah Banking subsidiary

    Strong growth from our Syariah Banking subsidiary Financial Performance (Rp bn) Net Interest Margin & Cost of Funds Q3 ‘07 Q4 ‘07 Q1 ‘08 Q2 ‘08 Q3 ‘08 Financing 9,296 10,305 11,150 12,730 13,766 Deposits 9,865 11,106 12,246 14,270 13,890 YoA 13.6% 13.5% Assets 10,438 12,888 14,031 16,285 16,539 13.0

36. Slide 36: Micro & Retail Banking: Rapidly growing our high margin business

    Micro & Retail Banking: Rapidly growing our high margin business Performance to Date, 9-Month 2008 Contribution Margin (after PPAP) Rp bn 1,441 Q1 Q2 Q3 Q4 Rp bn 3,201 2,658 3,900 77% 1,280 2,203 119 399 3,321 3,201 1,509 491 1,045 471 305 740 293 876 637 440 573 Asset Liabilities Fees Overhead Oper

37. Slide 37: Building a strong savings deposit franchise

    Building a strong savings deposit franchise 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 40.0% 34.6% 35.6% 31.7% 1,088.8 30.6% 492.1 607.5 677

38. Slide 38: Micro & Retail Banking: Focus on growing high yield businesses

    Micro & Retail Banking: Focus on growing our high yield businesses Small Credits Micro Credits KUR (Rp Bn) (Rp Bn) (Rp Bn) Loan Yields 12.5% 19.2% 1,259% 3,508 1,839 13,415 911 4,043 844 9,907 35.4% 83.4% 2,204 67 Q3 2007 Growth Q3 2008 Q3 2007 Growth Q3 2008 Q4 2007 Growth Q3 2008 Disbursement Brea

39. Slide 39: Consumer Finance: Significant growth in spread and fee income

    Consumer Finance: Significant growth in spread and fee income Performance to Date, 9-Month 2008 Contribution Margin (after PPAP) Rp bn Rp bn Q1 Q2 Q3 Q4 639 190 395 158 5% 507 827 412 133 161 79 115 100 200 170 622 90 507 143 150 174 NII Fees Overhead Operating Provisions Profit After 2006 2007 2008

40. Slide 40: Consumer lending rose 6.9% Q-o-Q and 47.0% Y-o-Y

    Consumer lending rose 6.9% Q-o-Q and 47.0% Y-o-Y on Mortgages and Payroll Loans Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type Rp18.74 tn 20,000 Growth (%) Other Loan Type Credit Cards Y-o-Y Q-o-Q 18,000 Payroll Loans 2,113 Home Equity Loans Other 169.34% 19.83% 2,008 16,000 M

41. Slide 41: 1,273k Visa & Mastercards transacted Rp2.03 tn in Q3

    39 Total Card Quarterly Sales by Type of Transaction (Rp Bn) 59 63 1,904 Q3 '08 32 57 1,668 Q2 '08 10 62 1,443 Q1 '08 1,273k Visa & Mastercards transacted Rp2.03 61 1,514 Q4 '07 9 58 17 1,225 Q3 '07 19 62 1,067 Q2 '07 17 67 936 Q1 '07 11 68 836 Q4 '06 72 755 Q3 '06 3 Transfer Balance 42 68 621 Q2 '0

42. Slide 42: Financial targets for 2008

    Financial targets for 2008 Metric Target Gross NPLs <5% Normalizing ROE ~ 18% Gross loan growth* >18% ƒ Corporate# >20% ƒ Commercial >20% ƒ Consumer >30% ƒ Micro & Retail >20% Growth in savings deposits >Rp90 tn Margin improvement ~5.2% Retain efficiency ratio <50% NPL Provision Coverage >120% * Pri

43. Slide 43: Supporting Materials

    Supporting Materials 41

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

    Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % Q3 ‘07 H1 ‘08 Q3 ‘08 YoY Change (%) Gross Loans 121,738 149,612 162,785 33.7% Government Bonds 90,791 88,386 88,517 (2.5%) Total Assets 273,791 304,680 318,671 16.4% Customer Deposits 210,097 236,213 245,325 16.8% Total Equity 28,0

45. Slide 45: Summary P&L Information – 9-Mo. '07 vs. 9-Mo. '08

    Summary P&L Information – 9-Mo. ‘07 vs. 9-Mo. ‘08 9-Mo. ’07 9-Mo. ‘08 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 17,974 11.6% 19,005 14.2% 5.7% Interest Expense (8,290) (5.3%) (7,996) (6.0%) (3.5%) Net Interest Income 9,684 6.2% 11,009 8.3% 13.7% Other

46. Slide 46: Total Assets rose 4.6% to Rp318.7 tn in Q3 '08

    44 32.4% 56.8% 58.8% 67.4 162.8 88.5 Q3 '08 Total Assets rose 4.6% to Rp318.7 tn in Q3 ‘08 31.0% 32.3% 66.7 149.6 88.4 Q2 '08 52.2% 75.5 135.5 88.6 Q1 '08 91.1 138.5 89.5 Q4 '07 61.2 121.7 90.8 Q3 '07 34.8% 50.1% 59.2 116.3 89.5 Q2 '07 Int. from Loans Other Assets 56.1 114.3 90.6 Q1 '07 41.0% 46.9%

47. Slide 47: RWA up 33.6% Y-o-Y, with a CAR of 17.1%

    45 17.1% 162.7 27.8 Q3 '08 17.7% 152.8 27.1 RWA up 33.6% Y-o-Y, with a CAR of 17.1% on Q2 '08 22.4% 136.8 30.7 Q1 '08 21.1% 134.0 28.3 Q4 '07 22.9% 121.8 27.9 Q3 '07 25.1% 113.1 28.4 Q2 '07 27.1% 107.9 29.3 Q1 '07 112.2 28.4 Q4 '06 Total Capital (Rp tn) 110.4 28.1 Q3 '06 110.7 27.8 Q2 '06 25.2% 110.

48. Slide 48: Additional Factors

    Additional Factors ƒ Aggregate of Rp32.475 tn (US$ 3.444 bn) in written-off loans as of end- September 2008, with significant recoveries on-going: ¾ 2001: Rp2.0 tn ¾ 2002: Rp1.1 tn ¾ 2003: Rp1.2 tn ¾ 2004: Rp1.08 tn Written-off Written-off ¾ 2005: Rp0.818 tn (US$ 83.2 mn) Loans Loans ¾ 2006: Rp3.408

49. Slide 49: Summary Quarterly Balance Sheet: Q3 '07 – '08

    Summary Quarterly Balance Sheet: Q3 ‘07 –‘08 Q3 ‘07 Q4 ‘07 Q1 ‘08 Q2 ‘08 Q3 ‘08 Y-o-Y Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# % Change Total Assets 273.79 319.09 299.59 304.68 318.67 33.79 16.4% Cash 4.32 5.91 4.87 5.20 8.28 0.88 91.8% Current Accounts w/BI 20.55 28.16 23.07 22.84 21.86 2.

50. Slide 50: Summary P&L Information – Q3 2008

    Summary P&L Information – Q3 2008 Q3 2007 Q2 2008 Q3 2008 Q-o-Q Change % of % of % of Rp (Billions) Rp (Billions) Rp (Billions) (%) Av.Assets* Av.Assets* Av.Assets Interest Income 5,639 8.4% 6,033 8.0% 6,830 8.8% 13.2% Interest Expense (2,647) (3.9%) (2,414) (3.2%) (2,825) (3.6%) 17.0% Net Interest

51. Slide 51: Reconciliation to IFRS

    Reconciliation to IFRS FY ’03 FY ’04 FY ’05 FY ’06 FY ’07 Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Net profit under Indonesian GAAP 4,586 5,256 603 2,421 4,346 IFRS Adjustments Allow. for possible losses on earning assets (662) (309) (2,681) 1,598 1,934 Allow. for possib

52. Slide 52: Ex-Recap Bond Portfolio, 30 Sep '08 – Bank Only

    Ex-Recap Bond Portfolio, 30 Sep ‘08 – Bank Only Maturity Interest Nominal Mark To Fair Value Series Date Rate (%) Trading AFS HTM Market Trading AFS HTM Fixed Rate - FR0002 15-Jun-09 14.00% 68 - - 101.722 69 - - FR0010 15-Mar-10 13.15% - - 1,350,000 100.000 - - 1,350,000 FR0014 15-Nov-10 15.58% - 2,

53. Slide 53: Bank Mandiri Credit Ratings

    Bank Mandiri Credit Ratings S&P Moody’s Fitch Pefindo Bank Mandiri Ratings Long Term Foreign Currency Outlook Stable Positive Stable 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 BB- Indivi

54. Slide 54: Corporate Actions

    Corporate Actions Net Profit for the financial year of 2007 of Rp4,346,223,721,208.00 was distributed as follows: ƒ 50%, or Rp2,173,111,860,604.00, for the annual dividend ƒ 40%, or Rp1,738,489,488,483.20, for a one-time “special dividend“ ƒ Total Dividend Payment of Rp186.00 per share Schedule : a.

55. Slide 55: Q3 2008 Movement in Category 1 and 2 Loans

    Q3 2008 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 125,759 592 11,721 113,940 8 1,840 1,310 43 13,452 1,840 1,310 446 252 13,502 71 146 Beg. D/G to 2 U/G D/G to U/G Net FX End Bal. Beg. Cat. 1 U/G to D/G to NPL Net F

56. Slide 56: Q3 2008 Loan Detail: Collectibility by Segment

    Q3 2008 Loan Detail: Collectibility by Segment Loan Profile: Q3 Collectibility (%) by Segment Loan Profile: Q3 Collectibility (Rp bn) by Segment Bank Only Bank Only 65,000 3.8% 2.5% 2.3% 1.9% 1.7% 0.4% 0.5% 0.3% 0.7% 2.4% 6.0% 7.5% 8.9% 60,000 11.7% 11.5% 55,000 50,000 45,000 5 40,000 5 4 35,000 4 3

57. Slide 57: NPL Loan Detail: Quarterly by Days Past Due

    NPL Loan Detail*: Quarterly by Days Past Due Quarterly D/G to NPL & Interest DPD - Bank Only Quarterly NPL Stock & Interest DPD - Bank Only Rp tn 70% Current (%) 70% Current (%) 60% <30 Days OD (%) 60% <30 Days OD (%) 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 12,000 30,000 Rp Value Rp Value 25,0

58. Slide 58: Rp1,591 bn in loans were restructured or repaid

    Rp1,591 bn in loans were restructured or repaid in the first nine months of ’08 Restructured Loan Movement 2000 - 9-Mo. ‘08 Loans by Restructuring Type in Q3 2008 Others# IDR bn Write-Offs Repayments Restructuring B alance Maturity extension 49% LT loans w/convert. option Maturity 9% extension Matur

59. Slide 59: Loan Portfolio Sector Analysis, Q3 2008

    Loan Portfolio Sector Analysis, Q3 2008 Mfg-Oth Mfg-F&B Mfg-F&B Agri 12.2% 10.4% Agri Trans Trans 8.5% Mfg-Oth Constr 12.9% Mfg-Chem Constr 8.1% Mining Oth<4% Bus Serv 9.2% Mfg-Chem 7.7% Trading-Oth Trading-Ret Mfg-P&P Trading-Distr Mining 7.2% 3.9% 4.3% Trading-Distr Trading-Oth 4.9% Bus Serv Mfg-P

60. Slide 60: Q3 2008 Loan Detail: Downgrades to NPL

    Q3 2008 Loan Detail*: Downgrades to NPL Loan Profile: Q3 Downgrades to NPL (Rp325 bn) - Bank Only Corporate, Commercial & Small Business 100% 5 Other Oth<5% loans downgraded to NPL in Q3 totaled Invest Mfg-Oth Rp325 billion (0.22% of total loans). Of these 90% Agri Small loans: Synd Trading-Exp 80%

61. Slide 61: Q3 2008 Loan Detail: Non-Performing Loans

    Q3 2008 Loan Detail*: Non-Performing Loans Loan Profile: Q3 NPLs (Rp6,586 bn) Bank Only Corporate, Commercial & Small Business 100% Program Small NPLs totaled Rp6,586 billion in Q3, or 4.5% of Oth<5% Export total loans. Of these NPLs in Q3: 90% Mining LC „ 37.9% remain current on interest Comm Tradi

62. Slide 62: Q3 2008 Loan Detail: Downgrades to Cat. 2

    Q3 2008 Loan Detail*: Downgrades to Cat. 2 Loan Profile: Q3 Downgrades to Cat. 2 loans (Rp1,024 bn) - Bank Only Rp1,024 billion (0.7% of total loans) in 100% 61+ Other 31-60 Consumer Corporate, Commercial & Small Business Oth<5% Synd loans were downgraded to Category 2 in 90% USD Q3. Of the Special

63. Slide 63: Q3 2008 Loan Detail: Category 2 Loans

    Q3 2008 Loan Detail*: Category 2 Loans Loan Profile: Q3 Category 2 Loans (Rp11,371 bn) Bank Only Rp11,371 billion (7.8% of total loans) in 100% 61+ Other Corporate, Commercial & Small Business Small Oth<5% 31-60 Export loans were in Category 2 in Q3. Of these 90% < 30 Agri >2004 Special Mention loan

64. Slide 64: Q3 2008 Loan Detail: Upgrades to PL

    Q3 2008 Loan Detail*: Upgrades to PL Loan Profile: Q3 Upgrades to PL (Rp68 bn) - Bank Only Corporate, Commercial & Small Business 100% Program Oth<5% loans upgraded to PL in Q3 totaled Rp68 billion (0.05% of total loans). Of these loans: 90% Small >2004 Trading-Ret Invest „ 54.8% were to Commercial

65. Slide 65: Q3 2008 Loan Detail: Performing Loans

    Q3 2008 Loan Detail*: Performing Loans Loan Profile: Q3 Performing Loans (Rp117,096 bn) Bank Only Rp117,096 billion (80.0% of total loans) in 100% Other Corporate, Commercial & Small Business Small Oth<5% 2 loans were performing in Q3. Of these 90% Export Bus Serv performing loans in Q3: USD Synd 80

66. Slide 66: Q3 2008 Loan Detail: Restructured Loans

    Q3 2008 Loan Detail*: Restructured Loans Loan Profile: Q3 Restructured Loans (Rp16,242 bn) Bank Only Of the remaining Rp16,242 billion in 100% Program Small 5 restructured Corporate, Commercial & Small Oth<5% Export Business loans in Q3, or 11.1% of total loans: 4 90% 3 Agri Comm „ 79.4% are perform

67. Slide 67: Q3 2008 Loan Detail: Corporate Loans

    Q3 2008 Loan Detail: Corporate Loans Loan Profile: Q3 Corporate Loans Only (Rp68,733 bn) Bank Only Rp68,733 billion in loans were in the 100% 31-60 Other 5 Corporate portfolio in Q3, or 46.9% of total Oth<5% Export 3 loans. Of the Corporate Loans in Q3: 90% 1 Day LC 2 Mfg-P&P „ 93.2% are performing

68. Slide 68: Q3 2008 Loan Detail: Commercial Loans

    Q3 2008 Loan Detail: Commercial Loans Loan Profile: Q3 Commercial Loans Only (Rp41,183 bn) Bank Only Rp41,183 billion in loans were in the 100% 5 3 Commercial portfolio in Q3, or 28.1% of Export 2 61+ Oth<5% total loans. Of the Commercial Loans in Q3: 90% USD Synd „ 96.4% are performing, with 6.0% i

69. Slide 69: Q3 2008 Loan Detail: Small Business Loans

    Q3 2008 Loan Detail: Small Business Loans Loan Profile: Q3 Small Business Loans* Only (Rp13,766 bn) Bank Only Rp13,766 billion in loans were in the Small 100% 5 USD Program Business portfolio in Q3, or 9.4% of total 2 61+ loans. Of the Small Business Loans* in Q3: 90% Oth<5% Consumer „ 97.1% are per

70. Slide 70: Q3 2008 Loan Detail: Rupiah Loans

    Q3 2008 Loan Detail*: Rupiah Loans Loan Profile: Q3 Loans (Rp85,854 bn) Bank Only Rp85,854 billion in loans were Rupiah 100% 5 3 Other denominated in Q3, or 58.6% of total loans. 61+ Oth<5% 2 Small Export Of the Rupiah Loans in Q3: 90% 31-60 Mfg-Chem „ 95.9% are performing loans with 5.7% in 80% Tra

71. Slide 71: Q3 2008 Loan Detail: Foreign Currency Loans

    Q3 2008 Loan Detail*: Foreign Currency Loans Loan Profile: Q3 FX Loans (Rp37,828 bn) Bank Only Rp37,828 billion in loans were foreign 100% 61+ Other 5 31-60 currency denominated in Q3, or 25.8% of 3 < 30 total loans. Of the FX Loans in Q3: 90% Oth<5% Comm WC „ 91.9% are performing loans with 17.1% i

72. Slide 72: Credit Card portfolio improved in Q3 '08

    Credit Card portfolio improved in Q3 ‘08 Mandiri Credit Card Delinquency Rates (%) Monthly Charge-offs, NPLs & Recoveries (Rp Bn) 30 DPD - Rp 90 DPD - Rp NPLs (90+DPD) 16.8% 30 DPD - Cards Write-Offs 16.1% Recoveries 90 DPD - Cards 98.7 11.7% 87.5 10.8% 82.9 10.7% 10.2% 10.4% 79.4 78.780.1 72.2 8.8%

73. Slide 73: Regs. on Asset Classification: PBI No 7/2/PBI/2005

    Regs. 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 Interest C

74. Slide 74: Accounting for Interest, Provisions & Collateral

    Accounting for Interest, Provisions & 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 – Sub-

75. Slide 75: Summary of Principal Subsidiaries

    Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp670.14 billion • Equity Investment of Rp127.99 billion • Equity Investment of Rp1,061.38 billion • Total Assets Rp2,991 billion, total • Total Assets Rp4,025.67 billion, Annual First • Total

76. Slide 76: Bank Syariah Mandiri

    Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) Rp Bn 2004 2005 2006 2007 Q3 ‘08 1,233 Total Assets 6,870 8,273 9,612 12,888 16,539 Branches Cash & placement w/ 796 1,689 1,377 1,583 1,340 Customers (000s) BI 1,018 Current Accounts & Placements w/Other 235 1

77. Slide 77: Bank Syariah Mandiri

    Bank Syariah Mandiri Summary P&L (Rp billions) 2003 2004 2005 2006 2007 9-Mo. ’08 Total Operating Income 279.4 584.2 865.5 935.2 1,197.9 1,245.2 3rd Party Share on Returns 148.4 269.2 386.4 455.5 511.9 545.0 Bank's Share in Operating 131.1 315.0 479.1 479.7 686.0 700.2 Income Other Operating income

78. Slide 78: Mandiri Sekuritas

    Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2004 2005 2006 2007 Q3 ‘08 9-Mo. Rp Bn 2004 2005 2006 2007 ‘08 Total Assets 1,435.7 1,258.7 2,367.4 2,757.2 2,991.3 Operating Revenue 244.0 197.3 221.6 423.7 321.8 Cash & 117.4 51.8 80.1 57.4 47.6 Equivalent Brokerage Commissions 15.6 20.9 20

79. Slide 79: Bank Sinar Harapan Bali

    Bank Sinar Harapan Bali Total Lending (Rp bn) Implementing the vision of becoming 250 Business Plan, 2008-2010 dominant player in the micro segment 200 BSHB is an integral part of Bank BSHB has been showing positive 150 250.0 Mandiri’s plan to develop the micro 236.0 momentum despite recent 202.0 se

80. Slide 80: Staffing and Distribution Network Growth

    78 3,346 Q3 '08 7,386 Q3 '08 3,186 2007 7,041 2007 Staffing and Distribution Network Growth 2,800 2006 6,265 2006 2,560 2005 6,025 2005 2,470 2004 5,537 2004 2,022 2003 4,716 2003 ATM-Link Network 1,559 2002 4,000 2002 ATM Network 1,184 2001 3,160 2001 533 2000 2000 513 1999 1999 22,079 Q3 '08 978 Q

81. Slide 81: Nationwide Reach in Distribution Network

    Nationwide Reach in Distribution Network 79

82. Slide 82: Loan growth, quality & provisioning relative to peers

    80 50.2% BCA 67% Niaga Loan growth, quality & provisioning relative to peers 59.5% Mandiri 69% Panin Ratio of Provisions to NPL 77% BII Loan to Deposit Ratio 69.6% BNI 71.6% Lippo 99% BNI 76.1% BII 105% Permata (%) (%) 77.0% BRI 124% Danamon 91.7% Danamon 127% Mandiri 93.7% Permata 163% Lippo 93.7%

83. Slide 83: Asset and liability mix relative to peers

    81 8.9% Mandiri 6.5% Niaga 9.5% BCA 6.1% Danamon Yield on Assets (p.a.) 9.6% BNI Cost of Funds (p.a.) 5.5% Panin 10.0% Panin 5.1% Permata 10.3% BII 5.0% BII (%) (%) 10.5% Lippo 4.4% Lippo 12.1% Permata 4.1% BRI 13.2% Niaga 3.7% BNI 14.8% BRI 3.7% Mandiri 14.9% Danamon 3.4% BCA Asset and liability mi

84. Slide 84: Efficiency measures relative to peers

    82 5.0% Permata 73.2% Lippo 4.6% Lippo 72.6% Permata 4.6% BRI 71.1% BII Cost/ Income 4.6% Danamon 61.4% Niaga Cost/Assets *Annualized 4.3% BII 55.1% Panin (%)* (%) 3.5% BNI 54.4% Danamon 3.5% Niaga 52.5% BNI 3.0% BCA 47.6% BCA 2.8% Mandiri 47.3% Mandiri 2.6% Panin 47.3% BRI Efficiency measures relat

85. Slide 85: Measures of scale and returns relative to peers

    83 345 Panin 6.3% BNI Return on Equity (After Tax) 472 Niaga 9.4% Lippo 581 Permata 14.1% Panin 691 Lippo 15.6% Permata ATMs 700 BII 15.9% BII (%) Measures of scale and returns relative to peers 779 Danamon 17.4% Niaga 971 BRI 21.7% Mandiri 2,325 BNI 21.8% Danamon 3,186 Mandiri 25.7% BCA 5,681 BCA 3

86. Slide 86: Notes

    Notes • _____________________________________________________________________________ • _____________________________________________________________________________ • _____________________________________________________________________________ • ____________________________________________________

87. Slide 87: Equity Research Contact Details

    Equity Research Contact Details BROKERAGE ANALYST TELEPHONE E-MAIL ABN AMRO Asia Securities Indonesia Trevor Kalcic 65-6518-7997 trevor.kalcic@sg.abnamro.com BAHANA SECURITIES Teguh Hartanto 6221-250-5081 Teguh.Hartanto@bahana.co.id BNP PARIBAS PEREGRINE Tjandra Lienandjaja 6221-5798-4661 tjandra.li

88. Slide 88: For Additional Information

    87 For Additional Information: Please refer to our website at www.bankmandiri.co.id Or Contact: Sukoriyanto S. 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 Mandi

PT Bank Mandiri (Persero) — Q3 2008 Earnings Presentation on 6ix