0

PT Bank Mandiri (Persero) Tbk

Q4 2006 Results Presentation

1

Bank Mandiri Presentation Contents

Results Overview Page #

FY Financial Highlights 2

Quarterly Loan Growth & LDR 3Quarterly Funding Mix 4

Quarterly Savings Deposits & Funding Rates 5

Retail Funding Strategy & Electronic Networks 6 - 7

ATM & e-Channel Utilization 8 - 9

Quarterly Net Interest Margins and Spread 10

Quarterly Overhead Expenses & Detail 11

Quarterly NPL Movement & Asset Quality 12 - 13

Provisioning & Collateral 14

Quarterly Analysis of NPL Downgrades 15

Core Earnings Analysis & Profitability 16

Operating Performance Highlights

Top NPL Debtor Developments 17 - 20

NPL Resolution Program 21 - 23

Transformational Themes & SBU Strategy 24 – 41

2007 Milestones 42

Supporting Materials 43 - 87

Results Overview Page #

FY Financial Highlights 2

Quarterly Loan Growth & LDR 3Quarterly Funding Mix 4

Quarterly Savings Deposits & Funding Rates 5

Retail Funding Strategy & Electronic Networks 6 - 7

ATM & e-Channel Utilization 8 - 9

Quarterly Net Interest Margins and Spread 10

Quarterly Overhead Expenses & Detail 11

Quarterly NPL Movement & Asset Quality 12 - 13

Provisioning & Collateral 14

Quarterly Analysis of NPL Downgrades 15

Core Earnings Analysis & Profitability 16

Operating Performance Highlights

Top NPL Debtor Developments 17 - 20

NPL Resolution Program 21 - 23

Transformational Themes & SBU Strategy 24 – 41

2007 Milestones 42

Supporting Materials 43 - 87

2

Key Financial Highlights

Organization Structure

FY 2006FY 2005

300.8%2,421tnRp604 bnEarnings After Tax

61.4%5.9%15.3%Net NPL

12.1%48.9%55.6%Efficiency

14.6%4.7%4.1%NIM

10.3%Rp117.7 tnRp106.7 tnLoans

Bank Mandiri’s Full Year Performance for 2006 demonstrated marked improvements in a number of key indicators:

3

QoQ Growth (%)YoY Growth (%)

44.549.242.548.348.350.458.765.468.766.872.675.976.782.387.094.499.5

104.0106.9106.9105.1

108.8117.7

107.8

57.2%

25.3%

35.4%

42.5%51.8%

53.7%

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Loans (Rp tn)LDR (%)

22.6

31.4 33.037.7

35.1 35.7

1.6 3.7 5.18.5

45.242.340.638.2 39.5

44.0 44.7 53.640.2

32.632.9

22.2

8.66.1 6.7 8.2

1.91.2 1.7 2.0

12.610.8 11.5 11.8

1.5

Q4 '02

Q2 '03

Q4 '03

Q2 '04

Q4 '04

Q2 '05

Q4 '05

Q2 '06

Q4 '06

Loan volume grew Q-o-Q in all segments but Commercial

Quarterly Loan Data – Consolidated

1.8%12.2%1.947Micro

7.9%29.6%8.636Small

11.5%9.3%12.620Consumer

100.0%9.0%109.380Total

29.8%(8.7%)32.564Commercial

49.0%19.9%53.613Corporate

% of Portfolio

Loans(Rp tn)

By Segment (Bank only)

Y-O-Y Growth (%)

Quarterly Loan Segment Details – Bank Only

Corporate

Commercial

Consumer

As of December 2006; Non-consolidated numbers

SmallMicro

4

14.3

18.0

22.1

22.3

24.4

25.1

29.6

28.9

31.9

33.4

40.6

40.5

42.3

44.6

52.0

49.5

47.8

44.2

45.2

41.8

44.7

46.6

57.6

14.1

31.1

31.2

27.7

27.2

26.1

24.8

24.8

27.9

30.1

28.8

30.8

30.7

30.9

28.0

27.5

30.8

28.3

30.1

30.2

28.0

29.5

33.6

97.1

87.8

106.9

107.7

106.1

104.1

105.1

96.7

85.9

80.5 70.3

68.4

63.4

90.8

89.1

85.7

80.5

16.5

21.5

23.4 21.5 17.8 20.6 20.6 19.4 18.618.0 17.3

16.5 13.8 12.511.6

11.113.3 16.3

15.715.9 15.1 13.4

12.6

13.2

11.612.612.311.9 12.311.9 11.6 14.9

100.7

66.5

65.0

72.3

79.8

93.2

0

20

40

60

80

100

120

140

160

180

200

Q4 '99

Q4 '00

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Rp Savings Deposits Rp Demand Deposits FX Demand Deposits Rp Time Deposits FX Time Deposits

Rupiah Savings rose 23.7% in Q4 while Time Deposits fell 6.1%

Deposit Analysis – Bank Only

Dep

osits

by

Typ

e (R

p tn

)

73.6%

52.9%

68.7%68.6%66.5%68.3%

62.6%61.5%56.2%57.3%

51.7%

44.6%

53.7% 45.0%45.3%51.5%

54.1%50.9%

44.5%

37.0%33.8%32.1%

23.1%

31.4%

Retail Deposits (%) Low-Cost Deposits (%)

As a %

of Total D

eposits

5

Savings deposit volume surged by Rp11.0 tn in Q4

17.619.719.822.122.324.425.129.628.931.933.440.540.542.344.652.049.547.844.245.241.844.746.657.6

29.2%

23.6%22.7%

10.0%

22.8%

16.2%

11.7%

30.6%

15.9%

15.6%17.5%

15.2%13.5%11.5% 16.8%

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Savings Deposits (Rp tn)As % of Total Deposits

National Share of Savings Deposits (%)

6.0%

3.0%3.5%3.4%3.7%

6.1%

3.7%

4.7%

10.6%

5.3%6.9%

9.5%

4.3% 4.8%

9.9%

17.1%

6.4%

13.9%

8.4%6.8%

11.4%

10.4%

17.0%

7.4%8.5%

13.1%

7.8%

11.9%

Rp DDRp SavingsRp TD1 Mo. SBIs

Savings Deposit Growth Average Quarterly Deposit Costs (%)

SBITD

SD

DD

2.7% 2.4%

0.8% 0.5%1.4%

4.4%

2.6%1.7%

1.1%1.9%

2.2%2.1%

4.2%4.0%Q

1 '02Q

2 '02Q

3 '02Q

4 '02Q

1 '03Q

2 '03Q

3 '03Q

4 '03Q

1 '04Q

2 '04Q

3 '04Q

4 '04Q

1 '05Q

2 '05Q

3 '05Q

4 '05Q

1 '06Q

2 '06Q

3 '06Q

4 '06

FX DDFX TD

FX TD

FX DD

6Passion to Serve, Passion to Perform

Individual (Mass & Mass Affluent)High Net-worth Individual (Wealth)Employee of Corporate & Commercial Customers

Enhance network capability and coverage (branches, ATM and electronic channel) to strengthen transactional payment capability Optimize strong customer base in Corporate & Commercial segment to serve transactional needs of its employees, distributors and suppliers (cross BU alliances)Aggressively penetrating ethnic trading clusters (ie. Tanah Abang, Mangga Dua) through integrated business suite offeringDeliver “red carpet” service and wide range of investment and personal insurance products for High Net-worth, and provide specific offering to attract and retain Mass Affluent segmentContinuously improve branch service level to increase speed and convenience in order to attain Leading Services Bank position

Key Target Market

Key Target Market

Small & Micro businesses

Key StrategyKey Strategy

Key ProductsKey Products

Network enhancement: install 375 new ATMs, 2 ATM Drive Thru, 50 new Self Services Pass Book Printers, open 41 new branches and 5 new Priority LaunchesEnhance transaction features: joint ATM Mastercard, implement various additional payment features, shopping through e-channel, improve EDC features

Mandiri Fiesta, Tabungan Rencana Mandiri, Business Savings, multi-payment features through electronic channels Consumer Treasury, Structured Investment Products, Mutual Funds, BankassuranceInt’l remittance

Retail Funding & Transactional Fee Income “Optimizing Strong Network & Customer Base”

Selected Key Initiatives 2007Selected Key

Initiatives 2007

7

ATM Functionality Overview

ATM functionality and convenience continues to build

Source: McKinsey

Bank MandiriKey Competitor

Insurance Payment (SinarMas, Eka Life, Astra CMG)Installment Payment (Columbia, OTO Multi Artha, OTO KreditMotor, Sun Prima)Education Payment (STIE Trisakti)Multi Payment (PGN, Modul PenerimaanNegara)Acquiring/ATM NetworkPurchase Payment (2007 : PT KAI, Air Asia, Lion Air)Insurance Payment (2007 : Bumi Asih Jaya, SequishLife, AXA)

Bill Payment

Mini Statement

Registration

Share Network

Withdrawal

Exchange Rate Information

Bank Transfer

Balance Inquiry

Purchases

Tuition Fee Payment

Loan Payment

Internet & CableTV Payment

Insurance Payment

Cell Phone BillPayment

Credit Card Payment

ATM Functionality Overview Recently Added Features

8

ATM transfer and payment transactions continue to grow

315.3354.5422.5492.1521.8554.9576.6607.5627.6665.7710.2677.0

203.9

232.9

290.5

159.0

226.2

271.8

268.7

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Other Payment Transfer

Withdrawal/Inquiry Avg Daily Volume (000)

ATM Average Daily Transaction Volume ATM Average Daily Transaction Value

8.312.219.525.429.441.756.462.665.688.397.498.095.6

113.2146.8176.2186.8201.6218.7234.4242.0256.2285.0272.2

17.220.1

29.237.7

46.153.2

62.343.9

75.381.5

92.699.7

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Other Payment Transfer Withdrawal Avg Daily Value (Rp Bn)

9

Average Daily Transactions for SMS & Call Centers

106

6,988

1,722

11,435

8,233

1,356

6951,069

3,072

3,808

679

706

27159

1,0231,016 1,086 1,175

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

SMS Trans. (000)

Call Center Trans. (000)

Growth in other channels shows the strength of our franchise

Users for Other e-Banking Services

* Debit Cards reintroduced in Jan. ‘04

341

1,014

2,665

3,772

4,429

5,024

7 18 72 164 234

497680

1,132

1,523

1,897

5,752

469

11 22166 199 258

358

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Debit Cards Issued* (000)SMS Subs. (000)Internet Bank. Subs. (000)

10

Quarterly Margins reach 4.9% on declining Cost of Funds

All figures - Bank Only

2.6%

2.5%

3.0%

2.4%

2.5%

3.0%

3.0%

3.9% 2.9%

2.9%

3.4%

2.8%

3.0%

3.3%

3.3%

3.7%

4.7%

4.5%

4.0%

4.3%

4.3%

3.6%

3.8%

3.6%

4.2%

4.1%

4.6%

4.9%

0.8% 0.8%

1.8%

2.2%

1.1%

1.5%

1.7%

2.2%

2.1%

2.0%

2.5%

2.2%

2.2%

2.5%

3.2% 3.2% 4.2% 4.2%

3.8%

4.1%

4.1%

3.4%

3.7%

3.4%

4.1%

3.8%

4.3% 4.6%

Q1 '00

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Spread

NIM

11.3%10.9%

11.9%

13.0%12.3%12.6%12.8%13.0%

13.9%13.6%13.5%13.0%

11.8%11.5%

10.4%

9.5%9.3%8.8% 8.7%

8.2%

9.4%

10.7%

11.8%11.4%11.6%

11.0%

10.5%10.1%10.1%

10.8%11.2%11.1%11.1%

10.8%

11.8%11.6%11.0%10.8%

9.6%9.1%

7.2%

6.3%5.7%

7.8%7.6%7.3%

6.4%

8.9%8.4%

7.3%

4.8%4.6%4.8%4.6%4.6%5.1%

Yield on Assets

Cost of Funds

11

379276359336314428270753365500472775388460618749521670763

1,034678793767842

788810

1,016

370 325

299298 406

322389475 408495

419377

527555

597723

604677667

1,241

744709

869

637695

211

327

649

957

Q1 '00

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

G&A Expenses (Rp bn) Personnel Expenses (Rp bn)

Full Year Average Cost to Income Ratio dropped to 48.8%

54.3%

83.3%

33.7%

43.7%38.9%

36.9%33.8%

37.1%

48.8%

57.6%

45.4%

31.1%

39.9%42.8%

40.4%

CIR* (%)

Annual Avg CIR (%)

*Excluding Bond gains

(52.0%)196,326 409,354 Post Employment Benefits

(4.3%)249,619 260,771 Base Salary

20.6%1,015,800 841,955 Total G & A Expenses

(32.4%)60,953 90,117 Subsidiaries

61.3%85,203 52,834 Employee Related

87.4%99,242 52,950 Professional Services

9.1%79,454 72,804 Transportation & Traveling

140,562

242,361

190,327

1,240,925

82,488

24,396

463,916

Q4 ‘05

43.1%201,103 Promotion & Sponsorship

15.2%279,271 Occupancy Related

G & A Expenses

(29.9%)869,459Total Personnel Expenses

(23.3%)63,286 Subsidiaries

(30.6%)322,140 Other Allowances

Personnel Expenses

Change (Y-o-Y)

Q4 ‘06

10.6%210,574 IT & Telecommunication

38,088 56.1%Training

Breakdown of Q4 2005 & 2006 Operating ExpensesQuarterly Consolidated Operating Expenses & CIR

12

352

12,615

2,2446,07874,605

90,702

Beg.Balance

U/ G f romNPL

D/ G to NPL NetDisburse.

FX Impact EndBalance

Q4 2006 Loan Movement, PL & NPL

Performing Loan Movements (Rp bn) - Bank Only Non-Performing Loan Movements (Rp bn) – Bank Only

18,677

6,078

26,248

2,244 423 1,3322,196 632

Beg.Balance

U/G to PL D/G fromPL

Disburse. Collections Write-Offs FX Impact EndBalance

13

NPL Movement - Consolidated

19.8%9.7% 6.6%

7.3%7.3%

8.4%8.2%7.2%

16.3%

70.9%

26.2%25.3%

7.1%

8.6%

7.3%

24.9%24.6%17.8%24.6%23.4%

5.9%13.6%13.9%15.0%

190.4%

139.1%

70.0%

44.4%

128.8%

74.8%

150.7%

100.9%

1999200020012002Q

1 '03Q

2 '03Q

3 '03Q

4 '03Q

1 '04Q

2 '04Q

3 '04Q

4 '04Q

1 '05Q

2 '05Q

3 '05Q

4 '05Q

1 '06Q

2 '06Q

3 '06Q

4 '06

Gross NPL Ratio Net NPL RatioProv/NPL Prov/NPL incl. Coll.

Provisioning coverage reflects BI requirements

Category 2 Loans – Bank Only

4,03315,35012,65516,20217,43215,58515,34510,98310,6219,9129,8528,334

12,35214,39416,42312,91212,08612,17510,99116,966

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1999200020012002Q

1 '03 Q

2 '03 Q

3 '03Q

4 '03Q

1 '04Q

2 '04Q

3 '04Q

4 '04Q

1 '05Q

2 '05Q

3 '05Q

4 '05Q

1 '06Q

2 '06Q

3 '06Q

4 '06

2 - Special Mention Loans (Rp Bn)

15.5%

12.9%

9.4%

15.0%

24.8%

0%

10%

20%

30%

40%

50%

Cat 2 %

14

NPL, Provisioning & Collateral Details – Bank Only

10.07%-0.20 Micro

7.62%(0.16)0.66 Small

18.68

0.52

6.99

10.31

NPLs(Rp tn)

4.13%(0.11) Consumer

19.24%(6.13) Corporate

NPLs(%)

Q4(Rp tn)

21.47%(1.15)Commercial

(7.57)Total 17.08%

100%50%15%5%1%BMRI Policy

100%

54321Collectibility

Non-PerformingLoans

PerformingLoans

50%

15%

15%

5%

100%2%BMRI pre-2005

100%50%1%BI Req.

Provisioning Policy

Collateral Valuation DetailsNon-Performing Loans by Segment

Bank Mandiri’s current provisioning policy adheres to BI requirements

As of 31 December ’06, loan loss provisions excess to BI requirements = Rp901.3 bn

Collateral has been valued for 107 accounts and collateral provisions of Rp 14,591 bn have been credited against loan balances of Rp 20,543 bn

Collateral value is credited against cash provisioning requirements on a conservative basis. For assets valued above Rp 5bn:

Collateral is valued only if Bank Mandiri has exercisable rights to claim collateral assets70% of appraised value can be credited within the initial 12 months of valuation, declining to:

50% of appraised value within 12 to 18 months30% of appraised value within 18 to 24 monthsNo value beyond 24 months from appraisal

11,349 202 500 1,266 767 Total Cash Prov. (Rp bn)

54321Collectibility

63

70.2%38.6%25.1%7.5%1.0%% Cash Provisions

12

1,071

30

7,682

2# of Accounts

5,714 125 Collateral Prov. (Rp bn)

15

8.0

1.8

8.2

0.1

3.4

10.0

Q2 2005

2.0

0.4

1.4

0.1

0.5

4.5

Q3 2005

1.0

1.2

1.4

1.0

0.3

0.6

Q3 2006

0.1

36.3

1.1

0.2

3.2

0.4

Q2 2006

Q4 2006 Details

94,812.6

1,045.9

64,748.8

1,042.9

2,964.1

20,137.4

Q4 ‘06 Balance (Rp bn)

Q1 2006

Q4 2006

UG toPL

DG to NPL

Q4 2005

Loan Background

4.6

1.2

0.6

0.1

59.1

10.9

Total Corporate, Commercial & Small Business Loans

Net Upgrades/Downgrades#

1.8

0.2

2.3

0.2

0.3

0.8

4.5

3.6

5.1

1.2

4.8

2.9

6.3

0.3

2.2

0.2

59.1

14.1

1.7

1.6

1.5

0.3

-

3.2

Total

Overseas

Post-Merger

Pre-Merger

IBRA

Restructured

Quarterly Analysis of Upgrades and Downgrades*

* Excluding Micro & Consumer Banking# % downgrades and upgrades are quarterly figures

Note: For a breakdown of Corporate and Commercial loans, please refer to the detail slide in the appendix.

16

3,357

4,145

3,514

4,787

5,492

5,589

260

114

402 380

2,021

2,072

1,651

4,335

74

1,454

247

166

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2000 2001 2002 2003 2004 2005 2006

Gain on Sale/Value of Securities

FX Gain

Core Earnings

Pre

-Pro

visi

on O

pera

ting

Pro

fit

IDR bn

2006 core earnings up 28.9% from 2005 to a record high

472 308 519 510290

602690

97 305

967

610 372

(410)

645799

819

775

(623)

1,168

1,549

1,7441,329

1,300

1,017

1,528

1,408

829

1,234

2000 2001 2002 2003 2004 2005 2006

Q1 PAT Q2 PAT Q3 PAT Q4 PAT

8.1%

21.5%23.6%

10.0%

22.8%

26.2%

2.5%

RoE - After Tax(Annualized)

Core Earnings Profit After Tax & ROE

17

Raja Garuda Mas

Raja Garuda Mas

The agreement to restructure the syndicated loans of 3 companies within the group (“Riau Complex”) was concluded on 19 October 2006, with the total facilities of USD 1.43 billion as of 30 September 2006 (Bank Mandiri’s portion was USD 589.93 million). The loan restructuring agreement was signed between the group and 3 major creditors (Bank Mandiri, BNI and Bank Panin) first. Following that, all remaining creditors to 2 entities (RAPP and RAK) have signed the agreement. Meanwhile, majority of creditors have agreed to loan restructuring agreement to the remaining 1 entity (RPE).Based on this agreement, the obligor has agreed to increase principal installments from USD 21.6 million to USD 100 - USD 110 million a year from 2007 to 2016 as well as financial ratios and collateral to guard creditors’ interests.The debtor has fulfilled its obligations under this new agreement in October, November and December 2006 as well as January 2007.

Argo PantesArgo Pantes

The obligor is comprised of 11 companies, of which 6 companies are in integrated textile manufacturing and 5 companies are in other industries (property, tire and steel industry). Total exposure to this obligor of Rp2.28 trillion has been restructured. The unsustainable portion of these loans will be settled through disposal of non-core and property assets. Loan restructuring agreement was signed on 18 October 2006, with the obligor fulfilling all commitments since that time.

Progress on Selected Top Debtors

18

KianiKiani

Kiani has made payments of USD 37 million, fulfilling all past-due obligations, both principal and interest.As of December 2006, the debtor has been categorized as Collectibility 2. In February the obligor has made an additional payment of approximately USD 11 million, leaving the outstanding balance of USD 170 million.

Domba MasDomba Mas

The obligor has submitted a proposal to resolve all of its NPLs through refinancing from other creditors. This process is expected to finalized by the first semester of 2007.The obligor has already repaid, through refinancing, loans to 4 companies of equivalent Rp352.5 billion on 8 February 2007. The remaining outstanding loans are equivalent Rp1,253 billion to 6 companies.

Sumber MitraSumber Mitra

Total Group exposure equivalent to Rp403.1 billion.The loan obligations of PT Sumber Mitra Jaya were settled for Rp163.0 billion on 21 December 2006.The loan obligations of Rp240.1 billion to PT. Kalimantan Energi Lestari has been restructured. The restructuring agreement has been effective since 20 December 2006 and the resulting obligations have been fulfilled accordingly.

Progress on Selected Top Debtors

19

Pupuk IskandarMuda

Pupuk IskandarMuda

This syndicated loan facility includes BNI and BRI, with BM’s portion of ± Rp387 billion (± 51%).The loan has been restructured since September 2006 and debtor has properly fulfilled its obligations.

BosowaBosowa

This obligor consists of 12 companies with the total exposure of Rp1.66 trillion.

Loan obligations of 4 companies were settled in Q4-2006 and the obligations of PT Bantimurung Indah and PT Bosowa Marga Nusantara were settled in January and February of 2007.

The remaining companies will be restructured in the first half of 2007.

BenangsariBenangsariTotal exposure is USD 43.1 million.Loan restructuring agreement has been signed and effective since 9 October 2006.The debtor has since fulfilled its obligations.

ApacApacTotal exposure is equivalent to Rp599.7 billion.Performance since restructuring has been good.Collectibility upgraded to special mention since May 2006.

Progress on Selected Top Debtors

20

Pacific AndesPacific Andes

Bisma NarendraBisma Narendra

Total loan exposure is Rp104 bn.The loans were restructured in September 2006 and the debtor has subsequently performed accordingly. The Bank charges interest at commercial rates and has as security debtor’s land assets valued at Rp17.5 bn as additional collateral.

5 subsidiaries of the Pacific Andes group secured loans of ~USD 91.99 million (as of 30 September 2006), of which 4 have repaid loans of USD 87.2 million.PT Sun Hope Investment, with outstanding loans of USD 4.8 million, will repay principal and interest monthly through June 2009 as scheduled.

Progress on Selected Top Debtors

21

On Dec 22, 2006, Bank Mandiri obtained the shareholder approval to implement PP No.33/2006 and PMK 87/2006 to resolve its NPLs

Agenda 2Agenda 2

Proposed Resolution Shareholder Position

Agenda 1Agenda 1

• Agreed to the proposed resolution through, among others, the Program Penyelesaian Kredit Macet Bank Mandiri (“PPKM Mandiri”).

• 99.99% of eligible attendees voted in favor of the resolution.

• Agreed to the proposed resolution to amend several articles in Articles of Association to allow the implementation of the program to accelerate the resolution of its distressed assets

• 88.43% of eligible attendees voted in favor of the resolution.

Agreement for Bank Mandiri to execute the program to accelerate the resolution of its distressed assets

Amendment to the Articles of Association to enable the implementation of the program to accelerate the resolution of its distressed assets

EGM Resolutions provide authority to act under PP No.33/2006 & PMK 87/2006

22

Need to achieve a common understanding among the different stakeholders through the Oversight Committee to support the implementation of PPKM Mandiri

Government via a joint Ministerial Decree (SKB No. 121/KMK.01/2007 & No. KEP-19/MBU/2007) has formed the Monitoring Team to oversee restructuring of problem loans in State-Owned Banks (Oversight Committee) with the following tasks:

1. Review all the laws that potentially impact the options for resolving the NPLs in State-Owned Banks

2. Coordinate with BI to ensure the implementation of adequacy risk management practices and Good Corporate Governance in resolving problem loans in State-Owned Banks

3. Monitor the implementation of the Performance Management Contract between Government and the management of State Owned Bank with regard to NPL resolution

4. Coordinate the socialization process with the relevant stakeholders (incl. with law-enforcement agencies, the state auditors, and parliament)

23

The first step will entail an NPL Historical Review …

3. NPL Resolution• Restructuring• Non-Restructuring

2. NPL Selection

2. NPL Selection

Collateral SalesLitigationSettlement

1. Desktop Analysis

1. Desktop Analysis

PPKM Mandiri 2007

II. NPL Disposal ProcessI. NPL Historical Review

If the Review shows that debtors are cooperative, with strong goodwill to settle, and there are no issues on procedural compliance…

If the Review shows that there are serious issues with procedural compliance…

Review* of selected accounts will adopt an holistic view on the cooperativeness (incl. goodwill to settle) of the debtors, as well as compliance with procedures

Enter PPKM Mandiri 2007 Program

Enter PPKM Mandiri 2007 Program directly into the auction process, without an option for direct settlement

If the Review shows that debtors are not cooperative, but there are no issues on procedural compliance…

Discuss with the relevant authorities to receive clearance to be included in PPKM Mandiri 2007

NPL Historical Review will determine the amount of NPL portfolio to be included in NPL Disposal Process NPL Historical Review will determine the amount of NPL portfolio to be included in NPL Disposal Process

24Passion to Serve, Passion to Perform

Long Term Vision To Be The Dominant Multi-specialist Bank

Dominant Bank in Indonesia, with 20-30% market share of revenue across all segments, with distinctive strategies for each business that capture synergies across different market segments

Dominant Bank in Indonesia, with 20-30% market share of revenue across all segments, with distinctive strategies for each business that capture synergies across different market segments

Dominant Multi-specialist Bank Model

To be the customers’ bank of choice, offering the most extensive range of products and most convenient accessTo be the customers’ bank of choice, offering the most extensive range of products and most convenient access

Corporate Consumer FinanceCommercial Micro & Retail

“To be the dominant wholesale bank, offering integrated transaction, credit and capital market products to large local corporations”

“To be the primary commercial bank, leveraging our dominant corporate position to provide services to SMEsup– and downstream in the value chain”

To be the most convenient loan provider and a preferred partner among local consumer finance players

“To be the primary chosen bank for the affluent segment and the ‘transaction bank’ for the mass affluent”

“Maintain our current presence in Micro and keep options open for possibility of further expansion”

Treasury & FION

“To be prominent bank in providing treasury products and services”

To be the trusted and preferred partner for international business and capital market”

25Passion to Serve, Passion to Perform

Leveraging leadership in cash generating business to build emerging and future growth engines

Commercial Banking

Building Future

Growth Engine Leveraging on Our Cash Generator

Strengthen Emerging Business

11

33

Corporate & Treasury

Consumer Finance & Micro/Retail

Banking

22

Optimizing Synergies

Across Business Unit

Optimizing Synergies

Across Business Unit

26Passion to Serve, Passion to Perform

1,742

1,198

2,7482,115

938

3,463

218

Corporate Commercial Micro&Retail TRS Cons. Fin Others incl.SAM

Profit BeforeTax

Each Strategic Business Unit generated profit in 2006

Rp billion

SBU 2006 Earnings before Tax (Unaudited)

27Passion to Serve, Passion to Perform

Leveraging corporate leadership to build retail and consumer

Corporate Treasury Commercial Cons.Fin Micro &

Retail Others Total

Spread 793 660 1,022 681 194 21,751 25,100 Provision 130 (62) 64 214 219 2,845 3,409 Net Revenue 663 722 958 467 (25) 18,906 21,691

Spread 1,500 (365) 1,090 13 3,433 (21,021) (15,351) Dep. Ins 113 4 48 - 223 13 401 Net Revenue 1,387 (369) 1,042 13 3,210 (21,034) (15,752)

NII Net Int. Inc. 2,050 354 2,000 480 3,184 (2,128) 5,939

Fee Based Fee Based 268 787 128 201 1,167 99 2,649

G & A 25 90 43 76 1,104 1,330 2,669 Personel 37 81 99 45 1,534 956 2,752 Others 141 31 244 341 514 (852) 420

Net Profit Net Profit Before Tax

2,115 938 1,742 218 1,198 (3,464) 2,748

Y-T-D December 2006

Asset Revenue

Liabilities Revenue

Overhead

28Passion to Serve, Passion to Perform

Retail Funding & Transactional Fee

Income

Retail Funding & Transactional Fee

Income

Commercial FundingCommercial Funding

Commercial AssetCommercial Asset

Corporate & Financial Institution Fee IncomeCorporate & Financial Institution Fee Income

Corporate Liabilities

Corporate Liabilities

Corporate AssetCorporate Asset

+Treasury

Fee IncomeTreasury

Fee Income

Building a strong low cost deposit and transactional platform franchise to match key competitor in 2008

Diversifying value centers and building dominant position in keygrowth areas

Building market leadership in consumer finance through aggressive growth in credit card, mortgage, payroll loan and alliance with auto or consumer durables finance co

Retain leadership and grow profitably

Focusing on value-chain financing and high margin loans

Tapping into the decentralization of government budget and regional autonomy

Diversifying income to capital market services, trade and cash management fees

Key Thrusts in 2007Key Thrusts in 2007

Consumer FinanceConsumer Finance

29Passion to Serve, Passion to Perform

AXA Mandiri Financial Services

Board of Commissioners

IT Business Solutions & Application

ServicesInvestor

RelationsMarket &

Operational Risk

Human Capital

Intl Banking & Capital Market

Services

Consumer Card

Jakarta Network

Jakarta Commercial

SalesCorporate Banking I

IT OperationsStrategy &

PerformanceLearning CenterTreasuryConsumer

Loans

Regional NetworkRegional

Commercial Sales 1

Planning, Policies,

Procedures, ArchitectureAccountingCorporate

RiskLegalBank SyariahMandiri

Micro Business

Credit OperationsProcurement

& Fixed Asset

Commercial Risk Compliance

Small Business

Central OperationsRetail &

Consumer Risk

Mass & Electronic Banking

Wealth Management

Customer Care

BMEL

Credit Risk & Policy

Technology & Operations

Finance & Strategy

Risk Management

Compliance & Human Capital

Treasury &International

Consumer Finance

Micro & Retail

BankingCommercial

BankingCorporate Banking

Special Asset

Management

Change Management

Office

WholesaleProduct

Management

Chief Economist

PlantationSpecialist Regional

Commercial Sales 2

Syndicated & Structured

Finance

Mandiri Securities

Internal Audit

Corporate Secretary

President Director & CEO

Deputy President Director

Risk and Capital Commitee Information Technology Committee Personnel Policy Committee

Audit CommitteeRisk Policy CommitteeNomination & Remuneration CommitteeGood Corporate Governance Committee

Credit Recovery II

Credit Recovery I

Asset Management

Corporate Banking II

Corporate Banking III

DirectorGroup

Committee under Commissioner

*

Commissioner

Committee under CEO & Deputy CEO

*

Subsidiaries

Key Principle Changes

Implementation of Strategic Business Unit Base Organization

Organization Structure

1. Establishment of 6 Strategic Business Units (SBU) : Corporate, Treasury & International, Commercial, Consumer Finance, Micro & Retail and Special Asset Management with better defined and focused business development accountability

2. Each Strategic Business Unit has autonomy and flexibility in developing its business, primarily in the planning and human resources areas.

3. Marketing and risk management functions enhanced by;

• setting up plantation specialist function and structured finance groups in Corporate Banking, Regional Sales 2 in Commercial Banking

• Separating credit risk and policy from operational risk and merging several groups in IT & Operations

4. Confirmed job grading and authorities up through 2 levels under BoD (L3)

5. Development of Talent Management and human resources integrated with Performance Based Culture Program

30Passion to Serve, Passion to Perform

Large Private and Listed CorporationState-Owned Enterprises and Government Institution MNCsBank, Insurance and Securities

Trade Services, Trade Finance and Bank Guarantee Cash Management and transactional payment featuresTreasury products and remittanceCapital Market services (equity & debt capital market, advisory)Syndication & structured finance

Key Target Market

Key Target Market

Key StrategyKey Strategy

Key ProductsKey Products

Selected Key Initiatives 2007Selected Key

Initiatives 2007

Implement Client Services Team’s (CST) for major clients (ie. Pertamina, Ministry of Finance, Telkom etc.) to provide integrated one-stop services including capital market service (Mandiri Sekuritas) Build best in class Syndication & Structured Finance UnitEnhance capability, features and pricing strategy for Cash Management and Trade Services as key fee income productsStrengthen international presence (London, Hong Kong, Singapore, Cayman and Shanghai planned to be open in 2007)

Corporate & Financial Institution Fee Income“Integrated One-Stop Services”

Implement CST organization, set-up Syndication & Structured Finance GroupOpen Shanghai branch; increase reciprocal business relationship with bank and non-bank financial institutions; improve correspondent banking arrangement with domestic banksCustomized and integrated cash management services delivery through implementation of Unified Payment Gateway and Cash Management Engine

31Passion to Serve, Passion to Perform

Reflected in Client Services Team (CST) Program and Alliance Program, Especially for Large Corporate Clients

Client Service Team (CST)

Relationship Manager

Treasury

Trade finance Corporate finance

Credit

Capital marketOther

+

Corporate

Consumer Commercial

Internal Strategic Alliance

“ A One-way Integrated Approach – CST” “ Alliance Focusing in Value Chain Business”

Cross sell products to the employees as well as customers

Payroll accountMortgage or auto loansCorporate/ Retail cards

Actively leverage the supplier and distributor network

Provide basic transaction and cash management serviceSupport the suppliers and distributors on day to day financingLaunch attractive reward programs

Cross sell products to the employees as well as customers

Payroll account, Mortgage or auto loans, Commercial / Retail cards

Exploit the wealth management opportunities for individual owner operators

32Passion to Serve, Passion to Perform

TOP 10 SUN & Corporate Obligation Transaction(excluding Banks)

December 2006 (Ytd)

Supported by Mandiri Securities’ Capital Market Capabilities

No BrokerTransaction

Value(Rp million)

Market

Share

1 Danareksa Sekuritas 43,897 10.2%2 Bahana 28,855 6.7%3 Trimegah Securities 27,124 6.3%4 Mandiri Sekuritas 19,576 4.6%5 Danatama Makmur 13,029 3.0%6 Lautandhana 12,667 3.0%7 Sarijaya 11,347 2.6%8 Sinarmas 10,926 2.6%9 Nusadana 10,029 2.3%10 Indo Premier 9,930 2.3%11 Others 241,043 56.3%

428,420 100%Total

Top 10 Local Broker Dec 2006 (Ytd)

No SecuritiesTransaction

Volume

Market Share % *

1 Mandiri Sekuritas 31,345 33%2 CIMB-GK Securities Indonesia 13,284 14%3 Bahana Securities 7,489 8%4 Arab - Malayasian Capital 6,562 7%5 Trimegah Securities Tbk 6,018 6%6 KIM ENG Securities 5,875 6%7 AAA 4,915 5%

8 Danpac Sekuritas 3,403 4%9 Binaartha Parama 3,307 3%10 NISP Sekuritas 1,973 2%

Others 11,377 12%95,549 100%Total

33Passion to Serve, Passion to Perform

Loan Target to Infrastructure Sector in 2007

1,593

215 10

1,865

452

Agri-culture

Energy Toll roads& Airports

Telco Maritime Industry

Total Energy Dam Develop

ment

Total

Rp Billion

2,143

921

2,050

6,047

798

135

Corporate Commercial

Rp Billion

TelcoToll roads& Airports

Agri-culture

34Passion to Serve, Passion to Perform

Top players in attractive sectors: Retail, Wholesale, Multi-finance, Food & Beverages, Manufacturing, Energy & Mining, Construction and PlantationTop players in 5 top regions (Jakarta, Jabar, Jatim, Jateng, Sumut) and 5 potential regions (Banten, Kaltim, NTT, NTB, Sulsel) Regional government bodies and state-owned enterprises

Focus and strengthen alliance program to optimize value-chain business from corporate customer (focusing on industry with network of multi suppliers and distributors)Build strong foothold in key prosperous regions and deepen relationship with key government decision makers at regional levelContinuously implementing risk based pricing and customer profitability analysis (CPA) to improve portfolio productivity and total revenue from business relationshipOptimize end-to-end process to improve Turn Around Time (TAT) in order to provide faster and competitive offering to customers

Key Target Market

Key Target Market

Key StrategyKey Strategy

Key ProductsKey Products

Enhance loan processing capability: Proactive sales & marketing, integrated Loan Monitoring System and Loan Origination System, Commercial Asset Purchase system, collection systemLaunch alliance program : RM’s and CBCs capability in proactive marketing and salesSet-up funding teams in potential prosperous region

Cash management and transactional payment featuresStructured investment and treasury productsTailored loan products for key sectors

Commercial Asset & Liabilities“Value-Chain Financing and Tapping into Regional Autonomy”

Selected Key Initiatives 2007Selected Key

Initiatives 2007

35Passion to Serve, Passion to Perform

• adjustment and follow-up until the end of process

• visit or contact for additional loan

• identify client needs in other areas

• data gathering and documentation

loan department

Improve Proactive Sales & MarketingCBC Manager/ CBC Relationship Manager coordinates all Sales Team

• develop marketing plan• decide on objectives

for new/existing clients• industry

understanding, research and analysis

• develop client visit log• 1st round client credit

evaluation

• develop target client strategy

• client visit• consultative selling of

loans/non-loan product• information gathering and

documentation

existing client

• consultation to propose non-loan product

• visit with product specialist when loan or non-loan product needs arise

Product Specialist(Wholesale Product Management Group)

Credit Department

• coordination and follow-up for loan process

target client

• discuss with JCS/RCS Group Head on loans and potential clients

• credit rating analysis• prepare credit report• loan review

• close cooperation to provide detailed client information

• visit with CO if necessary

CBC Manager/ CBC Relationship Manager

CreditAnalyst

loan committee

legal department

36Passion to Serve, Passion to Perform

Value Chain Financing Business Model As A Key Strategy in Developing Commercial Business

• Approved by MD

• Approved by Risk Mgmt

Prospecting Initiate Contact

Develop Scheme

Approve Scheme

Sign MOU/ Formal

Agreement

Socialize Scheme

Sell Scheme

Monitor Progress

• MOU signed by Commer-cial MD& WijayaKarya

• Scheme assignedto CBC Sudirman

• Scheme socializedto WijayaKarya Sub-contractors

• ~35 sub-contractors already showed interest

• Monthly moni-toring of progress

• Periodicre-socialization of scheme

Wijaya Karya

• Shortlisted~20 Corporate Banking cust.

• Met with Corp Banking MD

• Contacting Corp Banking RMsfor assistance

• Met with WijayaKarya

• Obtained partner data

• Working cap loan for sub-contractors

• Credit limit: 80% of WC need

• Collaterals: Main – AR Additional –10% of credit limit

PT PanamasSosro

Source: Mandiri; BCG analysis; team analysis

37Passion to Serve, Passion to Perform

Corporate and Commercial customer base will attract productand transactional services for Retail segment

Corporate

Consumer Commercial

• Actively leverage the supplier and distributor network– Provide basic transaction and

cash management service– Support the suppliers and

distributors on day to day financing

– Launch attractive reward programs

• Cross sell products to the employees as well as customers – Payroll account– Mortgage or auto loans– Corporate/ Retail cards

• Cross sell products to the employees as well as customers – Payroll account, Mortgage or auto loans,

Commercial / Retail cards• Exploit the wealth management opportunities for

individual owner operators

Key success factors:

• Commitment across BUs• Aligned incentives

• Integrated operations• Tailored products

38Passion to Serve, Passion to Perform

Cross-selling to existing funding customers (>6mio)Corporate & commercial customer’s employees“Walk-in” customer from developers & property brokers

Optimize strong customer base in Corporate & Commercial segments to cross-sell, co-brand and alliance Strengthen presence and business relationship at point of sales, especially with top 10 developers and major property brokers in potential cities/areaProvide innovative consumer loan products which give flexibility for customersContinue aggressive young adult customer acquisition through Mandiri Everyday Card Enhance end-to end process (segmented and behavioral scoring system, call center availability and response time, collection system) to enable a sound and profitable portfolio growth and to provide fast and convenient access for customersPenetrate high-yielding auto or consumer durables financing through alliances with prominent players

Key Target Market

Key Target Market

Cross-selling to existing funding customers (>6mio)Potential young adult segmentsCo-brand or corporate card (corporate & commercial customers)

Key StrategyKey Strategy

Introducing new products in mortgage, and personal loans including KPR Flexible, KPR Top-up), and Mitrakarya (employee loans), Platinum/Titanium, Mandiri Everyday Card, Affinity & Co-brand Card, Corporate Card

Key ProductsKey Products

Alliance with auto or consumer durables FincoSet-up initial scoring tools at the potential point of sales eg. top developersCo-brand Card: Telkom, Bank DKI, Pro XL and Corporate Card: Chevron, Star-One,TuguEnhancing Card features and program to improve usage such as Power Mileage, Redemption, and Bill PaymentSeek for alliance and potentially acquire a multi-finance company

Consumer Finance: “Aggressive Growth Through Cross-Sell, Alliance & Acquisition”

Loans Cards

Selected Key Initiatives 2007Selected Key

Initiatives 2007

39

283411655199328540

1,802

1,860

1,902

1,912

1,918

1,932

1,938

1,930

1,906

2,165

2,285823

815786

934

428494

594

479

510

3,610

3,574

3,250

3,050

2,885

2,591

1,996

1,011

1,522

3,452152

3,666

3,867

3,979

4,033

4,131

4,217

4,2233,5672,852

1,058

1,939

1,921

1,996

1,493

1,293

1,231

1,241

1,279

1,367

1,354

1,257

1,2061,270

1,136

1,544

816

727

653

688

888

792

876

959

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Other

Cash Collateral Loans

Credit Cards

Payroll Loans

Home Equity Loans

Mortgages

Consumer lending rose 9.3% Y-o-Y and 5.1% in Q4

61.03%73.81%Cash Collateral Loans

5.04%(5.46%)Credit Cards

5.55%18.35%Payroll Loans

(5.19%)(11.27%)Home Equity Loans

0.99%18.35%Mortgages

Growth (%)

Q-o-QY-o-Y

9.29%

24.38% 2.46%Other

Total Consumer

Loan Type

5.05%

*Auto & Motorcycle Loans channeled or executed through finance companies = Rp 3.43 tn in our Commercial Loan Portfolio

Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type

40Passion to Serve, Passion to Perform

Introducing programs to increase revolving balance in cardsExample: Everyday Mandiri MasterCard

How to activate young adults?How to activate young adults?

How to retain young adults?How to retain young adults?

Which marketing channels to use?

Which marketing channels to use?

Which TV stations & shows?

Which TV stations & shows?

Which events?Which events?

Which endorsements to use?

Which endorsements to use?

Have acceptance and discount programs in ...

Ensure rewards offer ...

Have presence in ...

Advertise in ...

Sponsor activities/events like ...

Use the following ...

Supermarket purchases Clothing Electronics/computer Restaurant dining

High-end electronics Branded apparel Mobile phone Domestic travel

TV ads Friends/word of mouth Branches/ATMs

Bowling Billiards Clubbing

Kris Dayanti Dewa Dian Sastrowardoyo

41Passion to Serve, Passion to Perform

Improve service and strengthen position of Point-Of-Sale presence

Bank Mandiri

Main Competitor

Experience (Soft)Convenience

Price• Charge comparable

prices (provided BM is available at point of sale)

Product• Innovative products that

are perceived to be more affordable

• Strengthen position in alliance with developers to improve profit and presence at point of sale

• Maintain standard level of service, especially at interaction points with BM staff

Service (hard)• Overall TAT to be

the best in the market –overcome customer expectation of 7 days turnaround time

Most convenient mortgageCurrent Situation:

• About 4-5% revenue share in consumer loan, with about 10% share in mortgage

• Alliance with 180 developers

• Some varianced in turnaround time, e.g. 21% of customer must wait longer than 8 days

42Passion to Serve, Passion to Perform

2007 Major Goals

Gross NPL below 10% and Net NPL below 5%

Fulfill all criteria to be considered an anchor bank (consolidator bank) as of the end of 2007

ROE improvement to above 13% (envisioned a normalized ROE of above 18% starting from 2008)

Gross loan growth of more than Rp 20 trillion or 18%

Above 30% growth in consumer loan driven by key products: credit card, mortgage, payroll loan, and auto loan (through channeling and alliances)

Above 30% growth in corporate loan driven by key sectors: CPO, infrastructure (toll roads & energy), telecommunication and consumer goods

Major leap in saving deposit to more than Rp 60 trillion

Margin improvement to above 4.6%, driven by major NPL recovery, aggressive asset growth and continuous improvement in funding mix

Retain efficiency ratio at about 50%

Customer service satisfaction leader in the industry

Implement best practice Strategic Business Unit operating model

43

25.3%25.4%23.6%Total CAR(2)

1,150

30

23.2%

18.0%

44.0%

25.2%

51.7%

4.1%

55.6%

2.5%

0.5%

23,214

206,289

263,383

92,056

106,693

FY 2005

12.6

296.9

13.5

(0.3)

1.6

(1.5)

10.3

YoY Change (%)

1,295

119

24.6%

19.6%

74.8%

16.3%

57.2%

4.7%

48.9%

10.0%

1.1%

26,341

205,708

267,517

90,648

117,671

FY 2006

24,381 Total Equity

55.9%LDR

24.8%Total CAR incl. Market Risk

19.7%Tier 1 CAR(2)

49.5%Provisions / NPLs

46.8%Cost to Income(1)

6.6%RoE – after tax (p.a.)

0.9%RoA - before tax (p.a.)

1,201 Book Value/Share (Rp)

58 EPS (Rp)

24.6%Gross NPL / Total Loans

4.4%NIM (Y-T-D)

194,473 Customer Deposits

253,713 Total Assets

90,957 Government Bonds

108,796 Gross Loans

Q3 2006IDR billion / %

Key Quarterly Balance Sheet Items & Financial Ratios

(1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains(2) Bank only – Not including Market Risk

44

Summary P&L Information – FY 2005 vs. FY 2006

48.80.1247 0.1166 Gain from Increase in Value & Sale of Bonds

166.70.0120 0.045 Non Operating Income

(1.3)(0.2)(593)(0.2)(601)Other Operating Expenses**

129.61.12,831 0.51,233 Net Income Before Tax

5.6(1.3)(3,251)(1.2)(3,080)G & A Expenses

(5.3)(1.2)(3,018)(1.2)(3,187)Personnel Expenses

3.5(1.4)(3,505)(1.3)(3,388)Provisions, Net

300.80.92,421 0.2604 Net Income After Tax

128.21.12,711 0.51,188 Profit from Operations

7.01.02,486 0.92,323 Other Operating Income

15.54.010,345 3.58,955 Net Interest Income

32.1(6.2)(15,916)(4.7)(12,044)Interest Expense

25.110.226,261 8.220,999 Interest Income

(%)% of Av.Assets

Rp (Billions)% of

Av.Assets*Rp (Billions)

YoY ChangeFY 2006FY 2005

* % of Average Assets on an annualized basis** primarily premiums paid under the blanket guarantee scheme

45

177.4

176.9

153.5

153.8

153.9

155.5

148.8

152.738.6

54.0

47.1

50.6 55.4

50.2

54.6

60.7

56.6

60.2

51.4

64.5 57.6

55.1

54.0

59.290.6

91.0

92.3

92.2

137.0

131.4

122.9

107.3

102.3

92.1

92.3

92.5

93.2

93.1

94.0

44.0

43.0

48.3

50.4

57.0

65.4

68.7 66.8

72.6

75.9

76.7

117.7

108.8

107.8

105.148.3

94.4

87.0

82.3

99.5

104.0

106.9

106.9

36.1

39.0

44.6

57.3

60.533.4

27.0

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

Q4 '99

Q4 '00

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Government Bonds Loans Other Assets

41.0%

46.9%44.1%

45.6%

47.4%60.6%

63.6%67.8%68.2%

74.1%75.4%

41.4% 40.9%

47.1%

42.8%42.3%

19.0%19.0% 19.3%22.1%

29.9%34.1%

46.2%50.0%50.6%

40.6%

Int. from Bonds Int. from Loans

Total assets rose by 1.6% Y-o-Y and 5.4% Q-o-QA

s a % of T

otal Interest Income

Tot

al A

sset

s (R

p tn

)

Consolidated

46

Recap Bond sales of Rp400 bn from VR Trading Portfolio

Portfolio Sales as of December 2006 (Rp bn)

90.6561.1028.720.83Total

-

86.50

4.15

Total

67.4%31.7%0.9%% of Total

----Hedge Bonds

95.4%59.7526.700.05Variable Rate

4.6%1.352.020.78Fixed Rate

% of TotalHTM(Nominal Value)

AFS(Mark to Market#)

Trading(Mark to Market*)

At Fair Value, Dec. 2006 (Rp tn)

177.4

176.9 153.5

148.8 123.0

93.1

90.6

91.0

92.1

4.01.5

32.3

0.42.51.0

15.8

24.5

0

40

80

120

160

200

1999 2000 2001 2002 2003 2004 2005 9 Mo.'06

Q4 '06

0

5

10

15

20

25

30

35Recap Bonds

Bond Sales

Bond Portfolio Movement (Fair Value) 1999 – 2006

Rup

iah

(Tri

llion

s)

(4)

45

1,452

9 Mo. ‘06

(66)

257

2,544

2005

105

(1)

400

Q4 ‘06

66

1,365

32,334

2004

1,868Realized Profit

Unrealized Profit

Bonds Sold

IDR bn

(52)

24,505

2003

* Mark to Market impacts Profit# Mark to Market impacts Equity

47

Quarterly Margin Analysis by Currency

Quarterly Rupiah Margins Quarterly Foreign Currency Margins

1.4%1.2%

1.6%2.4%2.5%

2.4%2.1%2.5%

3.9%4.0%3.5%4.1%3.6%4.7%4.6%4.9%5.1%

3.0%2.5%1.9%

3.7%4.1%

2.1%

2.6%

2.4%

3.5%4.5%

1.4%

13.2%

15.9%

14.1%

18.3%18.9%

11.9%

10.8%

8.2%

10.2%

14.0%

17.6%

12.5%

10.4%

11.9%

7.4%

8.5%

13.1%

17.6%

14.0%

6.9%

5.4%7.3%

11.7%

14.4%

11.1%

Q1 '00

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Avg SpreadAvg Loan YieldAvg Bond YieldAvg 1-Mo. SBIAvg COF

0.5%1.6%

0.4%-0.5%

0.8%

1.0%1.6%2.9%

3.4%2.5%1.3%0.1%

-0.2%-0.8%

1.6%0.9%1.2%

0.8%

2.2%1.4%

0.6%

0.2%

-2.9%

3.0%2.9%

3.0%1.4%3.1%

5.1%

7.3%6.5%

11.8%

5.7%

5.6%

7.6%

3.5%

5.3%

4.0%

Q1 '00

Q2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Avg SpreadAvg Loan YieldAvg Bond YieldAvg USD 1Mo SIBORAvg COF

48

Details of Q4 2005 & 2006

107.4

145.6

141.3

136.7

134.1

163.6

133.5

139.2

149.6

143.360.6 38.5

88.381.4 65.5

91.275.4 97.1

32.817.0

34.613.7 70.3

41.24.3

19.8

10.9

76.9 56.4 64.7

56.762.1

92.3 61.348.8

75.4 65.2

113.5

54.9

58.2 66.6

20.323.2

25.425.1

26.132.4 38.0

38.6

37.5

39.9 39.9

41.3

6.5 55.4

22.721.8 17.8 28.7 20.9

20.4

26.5

27.5 31.6

112.5

127.5

116.8

109.1

102.3

106.8

122.2

38.6

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Credit CardsTransfer, Coll., Clearing & Bank Ref.Opening L/C & Bank GuaranteesFee from SubsidiariesOthersAdmin. Fees for Deposits & Loans

7.3%9.6%

11.5%12.4%12.8%12.8%

12.1%10.9%

14.5%13.3%

14.8%

17.7%

% of Operating Income*

Non-loan Related Fees & Commissions jump on L/Cs

Non-loan related fees & commissions

*Non-Loan related fees & commissions/Total Operating Income

*Others include Custodian & Trustee fees, Syndication, Mutual Funds, Payment Points, etc.

17.9%526.9447.0Total

89.8%38.620.4Credit Cards

7.1%41.338.6Transfers,

Collections..

7.7%122.2113.5L/C &

Guarantees

227.2%64.719.8Subsidiaries

28.0%116.891.2Others*

-12.4%143.3163.6Admin. Fees

Y-o-Y

(%)

Q42006

Q42005

Non-Loan Related Fees &

Commissions(Rp billion)

49

44.0

42.3

42.6

59.2 51.3

51.6

58.1

61.0

56.1

64.3

72.5

77.8

79.5

89.5

91.9

94.2

96.2

102.3

108.9

114.1

115.9

117.5

115.9

110.7

110.7

110.4

112.2

15.5

14.6

15.1

15.4

17.8

16.8

18.4

17.0

20.7

24.4

25.0

25.5

28.1

26.5

27.2

27.5

30.4

27.5

27.8

27.4

27.9

27.8

28.1

28.4

13.3

13.3

9.7Q

2 '00

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q3 '01

Q4 '01

Q1 '02

Q2 '02

Q3 '02

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

RWA (Rp tn) Total Capital (Rp tn)

26.1%

31.3%

26.4%27.5%

25.3% 25.3%25.1%23.7%

23.7%

28.5%29.8%

23.4%

27.7%

30.7%

CAR

BI Min Req

CAR rose to 25.3% on a 1.0% increase in capital

50

Additional Factors

Written-off Loans

Written-off Loans

Aggregate of IDR 24.76 tn (US$ 2.75 bn) in written-off loans as of end-December 2006, with significant recoveries on-going:

2001: IDR 2.0 tn2002: IDR 1.1 tn2003: IDR 1.2 tn2004: IDR 1.08 tn2005: IDR 0.818 tn (US$ 83.2 mn)Q1 ’06: IDR 0.204 tn (US$ 22.5 mn)Q2 ’06: IDR 0.200 tn (US$ 21.6 mn)Q3 ’06: IDR 0.359 tn (US$ 38.9 mn)Q4 ’06: IDR 2.645 tn (US$293.8 mn), including the write-back of RGM loans totaling IDR 2.336 tn

Loan Collateral

Undervalued

Loan Collateral

Undervalued

Collateral values included for provisioning purposes on only 107 accounts. This will rise as current valuations are completed

51

Summary Quarterly Balance Sheet: Q4 ‘05 – Q4 ‘06

23.9

107.7

47.0

42.3

197.0

94.7

(13.2)

26.8

81.0

107.8

61.1

28.9

2.3

92.3

3.8

12.6

0.0

10.3

20.2

3.0

255.3

Rp (tn)

Q2 ‘06

120.5 1.614.38.47.36.5Certificates of BI

6.3 2.421.619.522.220.3Current Accounts w/BI

58.60.44.03.33.32.5Cash

24.4

102.7

48.8

42.9

194.4

95.5

(13.3)

26.8

82.0

108.8

61.1

29.0

0.8

90.9

3.8

13.9

0.4

253.7

Rp (tn)

Q3 ‘06

26.3

96.6

60.3

48.8

205.7

103.3

(14.4)

19.2

98.4

117.7

61.1

28.7

0.8

90.7

4.0

10.0

0.0

267.5

Rp (tn)

Q4 ‘06

13.5 2.923.923.2Shareholders’ Equity

(14.3) 10.7110.1112.7Certificate & Time Deposits

27.96.743.847.2Savings Deposits

5.2 5.444.146.4Demand Deposits

(0.3)22.8198.1206.3Total Deposits – Non-Bank

(28.5)2.127.526.9Non-Performing Loans

10.3 13.1105.1106.7Loans

21.7(1.6)(12.9)(11.8)Allowances

0.0 6.861.161.1HTM

(0.3)3.228.928.8AFS

(1.5)10.192.292.1Government Bonds

8.9 11.592.294.9Loans – Net

23.4 10.977.679.8Performing Loans

(61.1)0.12.22.1Trading

0.80.43.54.0Securities - Net

(38.1) 1.116.316.1Current Accounts & Placements w/Other Banks

(100.0)0.00.08.3Other Placements w/BI

1.629.7254.9263.4Total Assets

% ChangeUS$ (bn)#Rp (tn)Rp (tn)

Y-o-YQ1 ‘06Q4 ‘05

# USD1 = Rp9,003

52

Summary P&L Information – Q4 2006

(1.0)

(1.1)

0.1

(1.2)

(0.2)

(1.3)

(1.9)

(1.8)

(0.1)

0.7

3.2

(6.2)

9.4

% of Av.Assets*

(623)

(736)

63

(799)

(139)

(842)

(1,241)

(1,134)

(50)

432

2,071

(3,952)

6,023

Rp (Billions)

Q4 2005

15.70.181 0.1 70 Gain from Increase in Value & Sale of Bonds

291.70.194 0.0 24 Non Operating Income

6.6(0.2)(161)(0.2)(151)Other Operating Expenses**

66.21.61,032 1.0 621 Net Income Before Tax

25.4(1.6)(1,016)(1.3)(810)G & A Expenses

22.7(1.3)(870)(1.1)(709)Personnel Expenses

(49.0)(0.9)(567)(1.7)(1,112)Provisions, Net

231.71.91,234 0.6 372 Net Income After Tax

57.11.4938 0.9 597 Profit from Operations

(11.6)0.9603 1.1 682 Other Operating Income

9.24.42,868 4.1 2,627 Net Interest Income

(9.4)(5.5)(3,566)(6.2)(3,934)Interest Expense

(1.9)9.96,434 10.3 6,561 Interest Income

(%)% of Av.Assets

Rp (Billions)

% of Av.Assets*

Rp (Billions)

Q-o-Q Change

Q4 2006Q3 2006

* % of Average Assets on an annualized basis** primarily premiums paid under the blanket guarantee scheme

53

Series Interest Mark to

Fixed RateFR0002 15-Jun-09 14.00% 68 111.34 76 FR0013 15-Sep-10 15.43% 30,000 119.07 35,720 FR0010 15-Mar-10 13.15% 1,350,000 100.00 1,350,000 FR0014 15-Nov-10 15.58% 20,000 2,947 120.06 24,013 3,538 FR0017 15-Jan-12 13.15% 20,000 114.60 22,920 FR0018 15-Jul-12 13.18% 20,000 115.46 23,092 FR0019 15-Jun-13 14.25% 20,000 1,101,133 121.71 24,343 1,340,222 FR0020 15-Dec-13 14.28% 533,538 538,491 122.60 654,112 660,185

Sub Total 643,606 1,642,571 1,350,000 784,274 2,003,945 1,350,000 Variable Rate

VR0013 25-Jan-08 11.36% 858,384 100.07 858,993 VR0017 25-Jun-11 9.50% 50,000 328,270 100.00 49,999 328,263 VR0019 25-Dec-14 9.50% 5,050,000 1,114,300 99.95 5,047,374 1,114,300 VR0020 25-Apr-15 11.36% 4,100,000 391,029 100.07 4,102,870 391,029 VR0021 25-Nov-15 9.50% 2,400,000 690 99.89 2,397,288 690 VR0022 25-Mar-16 9.50% 692,844 6,796,813 99.90 692,137 6,796,813 VR0023 25-Oct-16 11.36% 659,738 4,086,068 99.97 659,540 4,086,068 VR0024 25-Feb-17 9.50% 8,210,550 100.00 8,210,550 VR0025 25-Sep-17 9.50% 5,210,550 100.00 5,210,550 VR0026 25-Jan-18 11.36% 3,475,267 100.00 3,475,267 VR0027 25-Jul-18 11.36% 3,475,267 100.00 3,475,267 VR0028 25-Aug-18 9.50% 1,696,428 3,475,267 99.84 1,693,663 3,475,267 VR0029 25-Aug-19 9.50% 5,344,421 3,475,267 99.79 5,333,037 3,475,267 VR0030 25-Dec-19 9.50% 8,016,765 100.00 8,016,765 VR0031 25-Jul-20 11.36% 5,597,343 12,016,765 99.87 5,590,066 12,016,765

Sub Total 50,000 26,727,428 59,744,598 49,999 26,703,233 59,744,598 Grand Total 693,606 28,369,999 61,094,598 834,273 28,707,178 61,094,598

0.77% 31.47% 67.76% 0.92% 31.67% 67.41%90,158,203 90,636,049 Total Fair ValueTotal Nominal Value

HTMMaturity Date

Nominal Fair Value

Trading AFS HTM Trading AFS

Recap Bond Portfolio Details, 31 December 2006 – Bank Only

(Stated in Rp Millions)

54

Bank Mandiri Credit Ratings

4Support Rating

DIndividual Rating

StableShort Term Outlook

BShort Term Local Currency Debt

idnAA

BB-

B+

B

BB-

Positive

Fitch

B1Subordinated Debt

NPBShort Term Foreign Currency Debt

idA+BB-Long Term Local Currency Debt

Bank Mandiri Ratings

StableLong Term Local Currency Outlook

B2Long Term Bank Deposits

WRBB-Long Term Foreign Currency Debt

PositiveStableLong Term Foreign Currency Outlook

BNational Rating

E+Bank Financial Strength

PefindoMoody’sS&P

55

Corporate Actions

DividendPaymentDividendPayment

Dividend Payment of Rp14.853 per share

Schedule :

a. Cum Date : June 14, 2006

b. Ex Date : June 15, 2006

c. Payment Date : June 30, 2006

Total Dividend payments for 2005 = Rp301,684,655,575.70

56

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

Classificationby Aging of

Interest Payments#

Classificationby Aging of

Interest Payments#

BI Collectibility takes precedence#

BI Collectibility takes precedence#

One Debtor, One Project Concept*One Debtor, One Project Concept*

Completeness of Financial Report*Completeness of Financial Report*

DetailedClassification Guidance#

DetailedClassification Guidance#

Business OutlookBusiness growth potentialMarket condition & debtor position in the marketManagement qualityGroup supportEnvironmental factors

Financial ConditionProfitabilityCapital structureCash flow Sensitivity to market risk

Payment AbilityOn time paymentAvailability of debtor’s financial informationCompleteness of credit documentationCompliance toward credit agreementNature of payment sourceAppropriateness of funds usage

In instances where there is disagreement in the determination of earning asset collectibility between the bank, its external auditors and BI, the bank must adopt BI’s determination

The Bank must classify all of its earning assets to a single debtor at the level of the lowest quality assetFor debtors with exposures to more than one bank, all banks must adopt the lowest classification applied by any one bank to the debtor.All earning assets related to a particular project must be classified at the same level

Banks must require debtors to submit current financial statementsFailure to submit financial statements must result in an automatic downgrade of collectibility by one level, or to a maximum classification of sub-standard

No change to BI Prov. Req.CurrentPreviouslyClassification by Payment History

100%181+ days271+ daysCategory 5 - Loss

50%121 – 180 days181 – 270 daysCategory 4 - Doubtful

15%91 – 120 days91 – 180 daysCategory 3 – Sub-Standard

5%1 – 90 days1 – 90 daysCategory 2 – Special Mention

1%CurrentCurrentCategory 1 - Current

# Implemented in Q1 2005 * Implemented in Q2 2005

57

Accounting for Interest, Provisions and Collateral

Recognition of Interest IncomeRecognition of Interest Income

Booking of Payments from

Borrowers

Booking of Payments from

Borrowers

Valuation of Collateral & Provisioning

Valuation of Collateral & Provisioning

ProvisioningProvisioning

IBRA LoansRestructured LoansRegular LoansClassification

Cash BasisCash BasisCash BasisCat. 5 - Loss

Cash BasisCash BasisCash BasisCat. 4 - Doubtful

Cash BasisCash BasisCash BasisCat. 3 – Sub-Standard

Cash BasisCash BasisAccrual BasisCat. 2 – Special Mention

Cash BasisAccrual BasisAccrual BasisCat. 1 - Current

IBRA Loans(w/o new agreement)Restructured LoansRegular LoansClassification

PrincipalPrincipalPrincipalCat. 5 - Loss

PrincipalPrincipalPrincipalCat. 4 - Doubtful

PrincipalInterestInterestCat. 3 – Sub-Standard

PrincipalInterestInterestCat. 2 – Special Mention

PrincipalInterestInterestCat. 1 - Current

IBRA LoansRestructured LoansRegular LoansClassification

100%Cat. 5 - Loss

50%Cat. 4 - Doubtful

15%Cat. 3 – Sub-Standard

5%Cat. 2 – Special Mention

As per BI regulations, except:− Difference between principal and

purchased value book as − Provisions, or− Deferred income if a new

agreement has been made

As per BI regulations, except:− Not reversed by upgrading − Reversed by principal repayment − Beginning provisions determined at

31 Dec. 2004− Based on net book value after

restructuring loss

1%Cat. 1 - Current

All LoansCollateralClassification

Cat. 5 - Loss

Cat. 4 - Doubtful

Cat. 3 – Sub-Standard

−Can be credited against cash provisions for Cat. 2-5

Cat. 2 – Special Mention

Collateral valuation for provisioning is determined by the aging of the most recent independent appraisal (for assets over Rp 5bn):−70% of appraised value within the initial 12 months−50% of appraised value within 12 to 18 months−30% of appraised value within 18 to 24 months−No value after 24 months from appraisal

Not valuedCat. 1 - Current

58

Q4 2006 Movement in Category 1 and 2 Loans

63,614

261

10,130

512126

1,8441,977

73,736

Beg. Bal. D/G to 2 U/G from2

D/G toNPL

U/G fromNPL

NetDisburse.

FXImpact

End Bal.

Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only

912,485

5,5662,118

1,8441,97710,991

16,966

Beg. Bal. Cat. 1D/G

U/G to 1 D/G toNPL

NPL U/G NetDisburs.

FXImpact

End Bal.

59

0.1%

36.3%

1.1%

0.2%

3.2%

0.4%

2.2%

-

2.2%

0.3%

-

2.4%

2.2%

36.6%

0.2%

-

3.8%

0.4%

Net

Q2 2006#

1.8%

0.2%

2.3%

0.2%

0.3%

0.8%

2.1%

4.3%

2.4%

0.3%

1.8%

0.7%

1.4%

0.0%

2.1%

-

-

0.8%

Net

Q1 2006# Q3 2006#Q4 2005#Q3 2005# Q4 2006#

94,813

1,046

62,749

1,043

2,964

20,137

41,200

104

32,944

799

489

4,963

53,613

942

29,805

244

2,476

15,174

Value (Rp bn)

1.0%

1.2%

1.4%

1.0%

0.3%

0.6%

1.2%

12.3

1.6%

1.5%

1.3%

1.8%

0.8%

0.2%

1.0%

-

0.5%

-

Net

4.5%

3.6%

5.1%

1.2%

4.8%

2.9%

6.3%

3.3%

6.5%

0.1%

2.7%

6.6%

2.9%

3.6%

3.3%

6.1%

5.2%

1.1%

Net

2.0%

0.4%

1.4%

0.1%

0.5%

4.5%

1.7%

9.2%

2.5%

0.2%

1.7%

1.9%

5.5%

0.8%

6.9%

-

0.9%

5.7%

Net

6.3%

0.3%

2.2%

0.2%

59.1%

14.1%

1.8%

3.5%

1.3%

0.2%

6.5%

9.7%

-

3.2%

-

70.8%

16.6%

UG to PL

1.7%

1.6%

1.5%

0.3%

-

3.2%

1.9%

7.3%

2.1%

0.4%

-

1.5%

1.6%

0.9%

0.9%

-

-

3.8

DG to NPL

Total

Overseas

Post-Merger

Pre-Merger

IBRA

Restructured

Total Loans

Total

Overseas

Post-Merger

Pre-Merger

IBRA

Restructured

Commercial & Small Business Loans

Total

Overseas

Post-Merger

Pre-Merger

IBRA

Restructured

Corporate Loans

Loan Background

4.6%

1.2%

0.6%

0.1%

59.1%

10.9%

0.1%

3.9%

0.8%

0.2%

5.0%

8.1%

0.9%

2.3%

-

70.8%

12.8%

Net

Quarterly Analysis of NPL and PL changes

* Corporate, Commercial & Small Business Loans Only# % downgrades and upgrades are quarterly figures

60

Q4 2006 Loan Detail: Collectibility by Business UnitLoan Profile: Q4 Collectibility (%) by BU - Bank Only

60.8%69.5% 69.5%

80.9%

19.9%9.1%

20.5%

11.5% 15.4%

2.1%2.2%

17.0% 18.6%

6.6%

80.5%

1.3%

0.6%0.4%

0.6%0.2%

3.3%0.9%

0.6%5.5% 2.6%

Corp Comm Small Micro Cons

5

4

3

2

1

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

Corp Comm Small Micro Cons

5

4

3

2

1

Loan Profile: Q4 Collectibility (Rp bn) by BU - Bank Only

61

NPL Loan Detail*: Quarterly by Interest Days Past DueQuarterly Downgrades to NPL & Interest DPD - Bank Only

976

665

474

1,108

11,161

6,901

1,177

4,106

1,558

1,304

1,644

1,031

11.8%

43.8%

14.2%

21.0%

65.5%

53.0%

32.8%

38.3%

13.5%

7.1%

15.9%

2.8%

26.0%

10.6%

22.7%

0.5%

25.1%

21.1%

15.9%

10.2%

21.0%

1.1%1.2%0.3%0

2,000

4,000

6,000

8,000

10,000

12,000

Q1'04

Q2'04

Q3'04

Q4'04

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

0.0%

12.5%

25.0%

37.5%

50.0%

62.5%

75.0%

Rp Value

Current (%)

<30 Days (%)

Quarterly NPL Stock & Interest DPD - Bank Only

Rp tn

6,196

6,451

5,925

6,334

17,456

24,962

24,193

26,248

26,424

17,960

25,414

25,665

18.7%

22.5%

26.3%

60.0%

33.0%

28.7%

22.1%

19.0%16.2%

22.1%

5.3%3.3%

4.5%2.8%

17.2%

10.2%8.5%7.7%6.6%

51.3%51.9%

3.9%0.3%1.8%0

5,000

10,000

15,000

20,000

25,000

30,000

Q1'04

Q2'04

Q3'04

Q4'04

Q1'05

Q2'05

Q3'05

Q4'05

Q1'06

Q2'06

Q3'06

Q4'06

0%

10%

20%

30%

40%

50%

60%Rp Value

Current (%)

<30 Days (%)

* Excluding Micro & Consumer Loans Only

62

25,123

29,542

23,987

21,045

19,427

20,914

27,423

10,5831999A

ddD

educt2000A

ddD

educt2001A

ddD

educt2002A

ddD

educt2003A

ddD

educt2004A

ddD

educt2005A

ddD

educt2006

Others#Write-OffsRepaymentsRestructuringBalance

Rp5,232 bn in loans were restructured in Q4 ’06

IDR bn

#Others includes partial payments, FX impacts, and fluctuation in Working Capital facilities

Loans by Restructuring Type in Q4 2006

Additional loans2%

LT loans w/convert.

option7%

Maturity extension

w/reduced rates12%

Maturity extension w/other restr'g*

21%

Maturity extension

58%

*Other Restructuring includes reduction of interest rates, rescheduling of unpaid interest & extension of repayment period for unpaid interest

Restructured Loan Movement 1999 - 2006

1,066

341

9 Mo. ‘06

1,332

5,232

Q4 ‘06

813

391

FY ‘04

1,118NPL Collections

718Loans Restructured

FY ‘05(Rp billions)

63

Trading-Oth7.9%

Agri10.5%

Other10.3%

Bus Serv4.2% Trans

4.3%Trading-Ret

4.5%

Mfg-Text6.1%

Mfg-P&P6.5%

Mfg-F&B11.5%

Mfg-Oth11.3%

Constr7.7%

Mining7.4%

Mfg-Chem7.6%

Mfg-F&B

Mfg-Oth

Agri

Trading-Oth

Constr

Mfg-Chem

Mining

Mfg-P&P

Mfg-Text

Trading-Ret

Trans

Bus Serv

Other

Loan Portfolio Sector Analysis, Q4 2006

(1) Non-consolidated numbers* Each sector < 4%

64

2.8% were still current on interest payments while only 1.1% were less than 30 days overdue

51.9% were Corporate borrowers

39.6% were loans previously restructured

Largest downgrades by sector:

Chemical Manufacturing

Food & Beverages

Trading

54.4% were USD loans

49.8% were Working Capital loans

73.1% were more than 90 days overdue in interest payments

Corp

Com

m

Small

Post-merger

Restr

Other

Mfg-Chem

Mfg-F&B

Mfg-Oth

Trading-Oth

Mfg-Text

Constr

Trading-Ret

Oth<5%

USD

IDR

Invest

WC

Other

Current< 30 Days

31-60 Days

61-90 Days

90+ Days

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GAS Backgrnd Sector Currency Purpose Int. Aging

Q4 2006 Loan Detail*: Downgrades to NPL

* Excluding Micro & Consumer Loans Only

Corporate, Commercial & Small Business loans downgraded to NPL in Q4 totaled Rp 1,644 billion (1.5% of total loans). Of these loans:

Loan Profile: Q3 Downgrades to NPL (Rp 1,644 bn) - Bank Only

65

Q4 2006 Loan Detail*: Non-Performing LoansLoan Profile: Q4 NPLs (Rp 17,960 bn) Bank Only

22.1% remain current on interest payments and 6.5% are less than 90 days overdue

57.4% are to Corporate customers

45.4% are Working Capital loans and 40.2% are Investment loans

Primary sectors are:Manufacturing

•Chemicals•Textiles•Food & Beverage

Trading

52.3% are Rupiah loans

40.5% were previously restructured

2.6% were loans purchased from IBRA

10.5% are Cat. 3 & 2.0% are Cat. 4

Corporate, Commercial & Small Business NPLs totaled Rp17,960 billion in Q3, or 16.4% of total loans. Of these NPLs in Q4:

3

4

5

Post-merger

Restr

L/C

Other

Mfg-Oth

Mfg-Chem

Mfg-Text

Trading

Mfg-F&B

Mfg-NonM

Agri

Bus Serv

Oth<5%

IDR

USD

WC

Invest

Export

SyndProgram

Current

31-60 Days61-90 Days

90+ Days

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Collectibility Backgrnd Sector Currency Purpose Int. Aging* Excluding Micro & Consumer Loans Only

66

Q4 2006 Loan Detail*: New Downgrades to Category 2Loan Profile: Q4 Downgrades to Cat. 2 loans (Rp 1,283 bn) - Bank Only

40.6% are for Commercial & 41.5% are for Corporate customers

68.5% are current & 0.5% are 1 day overdue

Primary sectors downgraded are:MiningWood ManufacturingTrading

F&B Manufacturing

73.8% are Rupiah loans

60.7% are Working Capital loans

10.9% are Restructured loans

Rp 1,283 billion (1.2% of total loans) in Corporate, Commercial & Small Business loans were downgraded to Category 2 in Q4. Of the downgraded Special Mention Loans in Q4:

Corp

Com

m

Small

Current

1 Day

< 30

31-60

61+

Mining

Mfg-Wood

Mfg-Oth

Trading-Oth

Mfg-F&B

Trading-Ret

Agri

Mfg-Metal

Oth<5%

IDR

USD

WC

Invest

Export

Other

Post-merger

Restr

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GAS Int. Aging Sector Currency Purpose Backgrnd * Excluding Micro & Consumer Loans Only

67

Q4 2006 Loan Detail*: Category 2 Loans

Loan Profile: Q4 Category 2 Loans (Rp 14,623 bn) Bank Only

73.1% are to Corporate customers

72.8% are current or 1 day overdue

Primary sectors in Category 2 are:Pulp & PaperTextile ManufacturingChemical Manufacturing TradingPlantations

60.3% are US Dollar loans

38.7% are Working Capital loans

48.4% are Restructured loans

13.9% were purchased from IBRA

33.3% saw no change in collectibility

Rp 14,623 billion (13.4% of total loans) in Corporate, Commercial & Small Business loans were in Category 2 in Q4. Of these Special Mention loans in Q4:

Corp

Com

m

Small

Current

1 Day

< 30

31-60

61+

Mfg-P&P

Mfg-Text

Mfg-Oth

Mfg-Chem

Trading

Agri

Constr

Trans

Oth<5%

USD

IDR

WC

Invest

Synd

Other

Restr

Post-merger

IBRA

Other

New Bal.

UG to PL

PL DG

PL NC

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GAS Days Aging Sector Currency Purpose Backgrnd Move. * Excluding Micro & Consumer Loans Only

68

87.4% were to Corporate borrowers

23.0% were loans with no previous restructuring history

47.7% were loans previously restructured

Largest upgrades by sector:

Pulp & Paper Manufacturing

Textile Manufacturing

69.7% were US Dollar loans

40.6% were Syndicated loans

92.1% of upgrades to PL were NPLs moving to Category 2

Corp

Comm

Small

Restr

IBRA

Post-merger

Mfg-P&P

Mfg-Text

Constr

Mfg-Oth

Mfg-Chem

Agri

Oth<5%

USD

IDR

Synd

Invest

Purpose

Other

1

2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GAS Backgrnd Sector Currency Purpose Collect.

Q4 2006 Loan Detail*: Upgrades to PL

* Excluding Micro & Consumer Loans Only

Corporate, Commercial & Small Business loans upgraded to PL in Q4 totaled Rp 5,974 billion (5.5% of total loans). Of these loans:

Loan Profile: Q4 Upgrades to PL (Rp 5,974 bn) - Bank Only

69

Q4 2006 Loan Detail*: Performing Loans

Loan Profile: Q4 Performing Loans (Rp 76,852 bn) Bank Only

56.3% are to Corporate customers & 33.3% are to Commercial customers

77.9% have no restructuring history

16.7% are Restructured loans

3.2% were purchased from IBRA

Primary sectors are:F&B ManufacturingAgricultureConstructionMining

67.1% are Rupiah loans

58.7% are Working Capital loans

71.6% saw no change in collectibility

7.8% were upgraded from NPL

Rp 76,852 billion (70.3% of total loans) in Corporate, Commercial & Small Business loans were performing in Q4. Of these performing loans in Q4:

* Excluding Micro & Consumer Loans Only

Corp

Comm

Small

Post-merger

Restr

LC

Other

Mfg-Oth

Mfg-F&B

Agri

Constr

Mining

Trading-Oth

Mfg-P&P

Mfg-Chem

Trading-Ret

Oth<5%

IDR

USD

WC

Invest.

Export

SyndOther

1

2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GAS Backgrnd Sector Currency Purpose Collect.

70

Q4 2006 Loan Detail*: Restructured LoansLoan Profile: Q4 Restructured Loans (Rp 20,286 bn) Bank Only

63.7% are performing

82.0% of loans in Category 2 are current in interest payments

Of the 36.3% which are in NPL, 27.8% are current in interest payments

Primary sectors are:AgricultureManufacturing

•Chemicals•Textiles•Pulp & Paper

56.2% are Rupiah loans

42.5% are Investment loans

75.2% are to Corporate customers

5.5% deteriorated in collectibility

16.0% showed improved collectibility

Of the remaining Rp 20,286 billion in restructured Corporate, Commercial & Small Business loans in Q4, or 18.5% of total loans:

1

2

3

4

5

Current

61-90 Days

90+

Mfg-Oth

Mfg-P&P

Mfg-Text

Agri

Mfg-Chem

Mfg-NonM

Mfg-F&B

Constr

Trading

Oth<5%

IDR

USD

WC

Invest

Export

Synd

Program

Corp

Com

m

Small

New Bal.

NPL DG

NPL NC

NPL UGDG to NPL

UG to PL

PL DG

PL NC

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Collect. NPL Aging Sector Currency Purpose GAS Movement* Excluding Micro & Consumer Loans Only

71

Q4 2006 Loan Detail*: IBRA LoansLoan Profile: Q4 IBRA Loans (Rp 2,964 bn) Bank Only

84.0% are performing

22.2% of loans in Category 2 are current in interest payments

Of the 78.1% which are in NPL, none are current in interest payments

Primary sectors are:Manufacturing

•Pulp & Paper•Textiles

ConstructionTrading

83.7% are US Dollar loans

52.5% are Syndicated loans, with another 32.7% Investment loans

83.5% are to Corporate customers

59.2% improved in collectibility during the quarter

Rp 2,964 billion in loans purchased from IBRA remain on the books as of Q4, accounting for 2.7% of total loans:

1

2

5

31-60 Days

61-90 Days

90+

Mfg-P&P

Constr

Trading

Mfg-Oth

Mfg-Text

Mfg-NonMOth<5%

USD

IDR

Synd

Invest

WC

Program

Corp

Com

m

NPL DG

NPL NC

UG to PL

PL NC

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Collect. NPL Aging Sector Currency Purpose GAS Movement* Excluding Micro & Consumer Loans Only

72

1

2

3

5

Current

1 Day

61+

Mfg-F&B

Mfg-Oth

Mining

Mfg-P&P

Agri

Mfg-Chem

Mfg-Text

Trading

Oth<5%

IDR

USD

WC

Invest

Synd

ExportOther

Post-merger

Restr

L/C

IBRAOther

New Bal.

NPL DG

NPL NC

UG to PL

PL NC

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Collect. Cat. 2Aging

Sector Currency Purpose Backgrnd Movement

80.8% are performing loans, with 19.9% in Category 2

79.0% of Category 2 loans are current in interest payments

26.8% of NPLs are current in interest payments, with another 0.3% less than 30 days overdue

Primary sectors in Corporate are:Food & Beverage MfgMiningPulp & Paper MfgAgriculture

51.0% are Rupiah loans

55.9% are Working Capital loans

28.3% are Restructured loans

4.6% were purchased from IBRA

Q4 2006 Loan Detail: Corporate LoansLoan Profile: Q4 Corporate Loans Only (Rp 53,613 bn) Bank Only Rp 53,613 billion in loans were in the

Corporate portfolio in Q4, or 49.0% of total loans. Of the Corporate Loans in Q4:

73

78.5% are performing, with 9.1% in Category 2

51.4% in Category 2 are current or 1 day overdue in interest payments

14.2% of NPLs are current in interest payments

Primary sectors in Commercial are:TradingAgriculture Construction Chemical Manufacturing

76.7% are Rupiah loans

53.8% are Working Capital loans

13.7% are Restructured loans

1.5% were purchased from IBRA

1

2

34

5

Current

< 30

31-60

61+

Trading

Mfg-Oth

Constr

Mfg-Chem

Agri

Bus Serv

Mfg-F&B

Mfg-Text

Oth<5%

IDR

USD

WC

Invest

ExportOther

Post-merger

Restr

Other

New Bal.NPL DG

NPL NC

DG to NPLUG to PLPL DG

PL NC

PL UG

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Collect. Cat. 2Aging

Sector Currency Purpose Backgrnd Movement

Q4 2006 Loan Detail: Commercial LoansLoan Profile: Q4 Commercial Loans* Only (Rp 32,564 bn) Bank Only Rp 32,564 billion in loans were in the

Commercial portfolio in Q4, or 29.8% of total loans. Of the Commercial Loans in Q4:

74

92.4% are performing, with 11.5% in Category 2

32.5% in Category 2 are current or 1 day overdue in interest payments

31.2% of NPLs are current in interest payments

Primary sectors in Commercial are:Retail TradingAgriculture Manufacturing Business Services

99.6% are Rupiah loans

67.1% are Working Capital loans

6.0% are Restructured loans

1

2

45

Current

1 Day

< 30

31-60

61+

Trading-R

et

Agri

Mfg

Trading-Oth

Trading-Distr

Constr

Bus Serv

Oth<5%

IDR

USD

WC

Invest

Program

Other

Post-merger

Restr

Pre-merger

New Bal.

NPL NC

PL DG

PL NC

PL UG

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Collect. Cat. 2Aging

Sector Currency Purpose Backgrnd Movement

Q4 2006 Loan Detail: Small Business Loans*Loan Profile: Q4 Small Business Loans* Only (Rp 8,636 bn) Bank Only Rp 8,636 billion in loans were in the

Small Business portfolio in Q4, or 7.9% of total loans. Of the Small Business Loans* in Q4:

* Excluding Micro Loans

75

Q4 2006 Loan Detail*: Rupiah LoansLoan Profile: Q4 Loans (Rp 60,936 bn) Bank Only

1

2

34

5

Current

1 Day

< 30

31-60

61+

Mfg-Oth

Mfg-F&B

Agri

Constr

Trading-Oth

Trading-Ret

Bus Serv

Trans

Mfg-Chem

Oth<5%

Corp

Com

m

Small

WC

Invest

Export

Other

Post-merger

Restr

Other

New Bal.

NPL DG

NPL NC

UG to PL

PL NC

PL UG

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Collect Cat 2 Aging Sector Business Purpose Backgrnd Move

84.6% are performing loans with 9.5% in Category 2

67.2% of Category 2 loans are current in interest payments

18.7% of NPLs are current in interest payments

Primary sectors in Corporate are:Food & Beverage MfgAgricultureConstructionTrading

44.9% are Corporate loans

63.2% are Working Capital loans

18.5% are Restructured loans

0.8% were purchased from IBRA

Rp 60,936 billion in loans were Rupiah denominated in Q4, or 55.7% of total loans. Of the Rupiah Loans in Q4:

* Excluding Micro & Consumer Loans Only

76

Q4 2006 Loan Detail*: Foreign Currency Loans

Loan Profile: Q4 FX Loans (Rp 33,877 bn) Bank Only

74.7% are performing loans with 26.0% in Category 2

71.5% of Category 2 loans are current in interest payments

25.7% of NPLs are current in interest payments

Primary sectors in Corporate are:Manufacturing of

ChemicalsTextiles & LeatherPulp & Paper

AgricultureMining

77.5% are Corporate loans

43.6% are Working Capital loans

26.1% are Restructured loans

7.3% were purchased from IBRA

Rp 33,877 billion in loans were foreign currency denominated in Q4, or 31.0% of total loans. Of the FX Loans in Q4:

1

2

3

5

Current

1 Day< 3031-60

61+

Mining

Mfg-P&P

Mfg-Chem

Mfg-Oth

Mfg-Text

Mfg-F&B

Agri

Trading

Oth<5%

Corp

Com

m

WC

Invest

Synd

Export

Post-merger

Restr

L/C

IBRA

Other

New Bal.

NPL DG

NPL NC

DG to NPL

UG to PL

PL DG

PL NC

PL UG

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Collect Cat 2 Aging Sector Business Purpose Backgrnd Move* Excluding Micro & Consumer Loans Only

77

Cards issued reached 873k, with Q4 transactions of Rp915 bn

Mandiri Visa Card Holders and EOQ Receivables

1,367.4

1,279.4

1,240.8

1,230.71,292.8

1,353.6

1,256.6

1,205.8

1,135.6

933.6

823.2

567.5

645.9747.9

814.9

785.7

1,270.2

872.5

784.1752.4

650.7

225.7275.3

338.2

418.0

709.4

Q4 '02

Q1 '03

Q2 '03

Q3 '03

Q4 '03

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Receivables (Rp Bn)

Cards (000s)

250

332

504

535

521

532

606

600

553

621

755

836

68

72

68

8

60

48 24 16 10

188

23

42

3

11

5681

62

22

33

73 61 5759

Q1 '04

Q2 '04

Q3 '04

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Transfer BalanceCash AdvanceRetail

Visa Card Quarterly Sales by Type of Transaction(Rp Billion)

Transferred from GE

78

Credit Card portfolio continued to improve in Q4

Mandiri Visa Card Delinquency Rates(%)

106.1

82.9

38.6 35.9 38.945.4

67.275.6

98.7

140.9

21.225.4

15.911.8 12.4

7.50.0

12.2 13.1 15.7

30.9

2.6 2.3

87.5

103.0

70.7

14.99.6

3.11.92.32.32.50.40.9 1.5 1.6 1.9 2.1

Jan '04

Apr '04

Jul '04

Oct '04

Jan '05

Apr '05

Jul '05

Oct '05

Jan '06

Apr '06

Jul '06

Oct '06

NPLs (90+DPD)Write-OffsRecoveries

Monthly Charge-offs, NPLs & Recoveries (Rp Billion)

21.3%

9.1%

7.1% 7.1%7.7%

9.2%10.2%

3.6%

5.0%

8.17%

4.5%3.8%

4.3%4.8%

1.9%2.5% 2.4%

3.1%

4.3%

3.2%2.4%

11.7%

13.27%

16.1%

16.0%

8.6%

16.8%

6.8%

10.8%

7.4%

5.3%5.0%

3.3%

13.3%

10.7%

4.6%

3.4%

4.4%5.4%

6.9%

7.2%

5.0%4.5%

5.4%

12.7%

9.5%

2.4%2.1%

7.8%

5.8%

2.5%1.7%

Jan '04

Apr '04

Jul '04

Oct '04

Jan '05

Apr '05

Jul '05

Oct '05

Jan '06

Apr '06

Jul '06

Oct '06

30 DPD - Rp90 DPD - Rp30 DPD - Cards90 DPD - Cards

79

Summary of Principal Subsidiaries

• Equity Investment of Rp715.38 billion

• Total Assets Rp 2,367 billion, total liabilities Rp1,620 billion and Equity of Rp748 billion

• Operating Income of Rp99.2 billion, and PAT of Rp 42.6 billion

• Underwrote Rp 635 billion worth of bonds

• Equity transactions in BEJ of Rp19,576 billion

• Bond transactions (SUN & Corporate) through BES and HIMDASUN of Rp4,116 billion

• Largest local bond house with 47% of all secondary trading of Government bonds in December 2006.

• One of the most active brokers in BEJ (ranks #4 among all local brokers in 2006)

• Assets Under Management totaling Rp2,923 billion

Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri

• Equity Investment of Rp79.50 billion

• Total Assets of Rp1,741 billion and Annual First Year Premiums (AFYP) of Rp433.74 billion

• Total Gross Written Premium (GWP) of Rp829.11 billion, consisting of unit-linked premiums of Rp787.13 billion (95%) and traditional product premiums of Rp41.98 billion (5%). Group business accounted for Rp41.14 billion while Rp787.96 billion was generated from individual premiums.

• Embedded value of Rp350.38 billion (before expense overrun) and appraisal value of Rp1,314.91 billion

• Operating since December 2003, now with a presence in 670 Bank Mandiri branches with a team consisting of more than 839 Financial Advisors (FAs)

• In Q3 2006, AXA Mandiri’s market share in acquiring new business out of all life insurance companies in Indonesia was 3.86%

• Equity Investment of Rp697.23 billion

• Total Assets of Rp9,612 billion, with total financing extended amounting to Rp7,401 billion and total funds of Rp8,219 billion

• Operating Income reached Rp935.2 billion with Profit After Tax of Rp62.6 billion

• Market share for Syariah Banking: 35.97% of assets, 36.20% of financing extended and 39.76% of deposits

• CAR=12.56%

• ROA=1.10%

• ROE=10.23%

• 212 outlets, consisting of 178 branches & Cash Offices, 13 KLS, 20 Payment Point locations and 1 Mobile Cash outlet, as well as 53 branded ATMs

80

Branch Network & Customer Growth

Bank Syariah Mandiri

3248

88

134

164178

206

759

533

357

11570

2001 2002 2003 2004 2005 2006

Branches

Customers (000s)

Summary Balance Sheet (Rp Billions)

633

3,818

1,958

1,261

7,037

5,664

(127)

5,791

383

168

1,689

8,273

2005

450

1,578

753

298

2,629

2,119

(42)

2,162

76

36

1,023

3,422

2003

7,401 5,267 Total Financing

497 427 Securities - Net

326 235 Current Accounts & Placements w/Other Banks

1,377 796 Cash & placement w/ BI

9,612 6,870 Total Assets

20062004Rp Bn

7,138 5,181 Total Financing - Net

8,219 5,882 Third Party Funds

2,059 981 Demand Deposits

2,662 1,567 Savings Deposits

3,498 3,334 Time Deposits

549

(86) (262)Allowances

Shareholders Equity 694

81

Bank Syariah Mandiri

Summary P&L (Rp billions)

14.6%

1.8%

11.9%

75.6%

83.8

136.7

137.2

435.6

93.6

479.1

386.4

865.5

2005

10.23%

1.10%

12.56%

90.21%

62.6

95.5

102.1

383.0

142.4

479.7

455.5

935.2

2006

3.6%

1.0%

20.9%

66.1%

15.8

24.5

23.0

159.9

51.9

131.1

148.4

279.4

2003

10.6%39.3%CAR

83.3%74.6%LDR

103.430.1Net Income after tax

150.443.4Net Income before tax

140.642.3Income from Operations

7.4%

3.6%

84.4

35.5

91.3

71.5

162.7

2002

315.0Bank's Share in Operating Income

269.23rd Party Share on Returns

584.2Total Operating Income

2004

276.4Operating Expenses

2.9%ROA

22.3%

102.0Other Operating income

ROE

Selected Financial Ratios

82

Mandiri Sekuritas

Summary P&L

18.4

48.0

(34.8)

82.8

21.2

48.4

20.6

114.5

131.8

(13.1)

9.0

6.0

42.6

20.9

197.3

2005

99.2 109.448.4Profit from operations

15.8 36.25.7Commissions

62.2 53.729.8Salaries and allowances

52.7

72.4

24.0

11.6

54.1

33.5

25.5

24.9

6.1

5.1

3.9

102.4

2003

5.8 20.6Underwriting & Selling Fees

3.4 10.4Advisory fees

16.0 53.0Investment Mgmt Fees

20.2 15.6Brokerage Commissions

221.6 244.0Operating Revenue

20062004Rp Bn

124.2 82.7Interest & Dividends

122.4 134.6Operating Expenses

18.3 23.4G & A expenses

(29.4)(8.1)Other income (charges) - net

69.8 101.3 Income before tax

63.0

61.9 51.8 Gain on Trading of Marketable Securities

Net Income after tax 42.6

692.8

305.0

137.1

52.7

30.1

565.9

9.6

84.3

746.5

-

51.8

1,258.7

2005

698.9

150.0

67.0

61.7

79.3

380.8

8.0

123.0

794.0

50.0

82.9

1,079.7

2003

1,267.0478.6Receivables

480.1538.8Marketable Securities

-50.0Time deposit

80.1 117.4Cash & Equivalent

2,367.4 1,435.7Total Assets

20062004Rp Bn

1,619.7699.3Total Liabilities

546.2 39.1Payable to Clearing & Guarantee body

664.7 420.3Payable to customers

269.4 2.0Repo

75.0190.0Bank Loans

736.4

11.8 10.9 Property & Equipment-net

Shareholders Equity 747.6

Summary Balance Sheet

83

21,062

19,606

18,016

17,204

17,735

18,397

19,693

21,192

1999

2000

2001

2002

2003

2004

2005

2006

Staffing and Distribution Network Growth

658

635

730

909

546

687

789

924

1999

2000

2001

2002

2003

2004

2005

2006

6,265

6,025

3,160

4,000

4,716

5,537

1999

2000

2001

2002

2003

2004

2005

20062,800

513

533

1,184

2,022

2,470

2,560

1,559

1999

2000

2001

2002

2003

2004

2005

2006Employees

Domestic Branch Network

ATM Network

ATM-Link Network

90500New ATMs 2404905205002117.67.0% Change -0.63.73.1-4.5-8.1

12059New Branches 15435289-112

84

Loan growth, quality and provisioning relative to peersBank Only, As of September 2006

195%

187%

147%

97%

56%

49%

40%

99%

62%

67%

BCA

Lippo

BRI

Panin

Danam

on

Permata

Niaga

BII

Mandiri

BNI

Ratio of Provisions to NPL(%)

100,8

53

86,6

91

61,3

30

53,7

46

39,1

51

31,1

71

22,0

91

17,8

01

10,8

92

21,6

67

Mandiri

BRI

BNI

BCA

Danam

on

Niaga

Permata

BII

Panin

Lippo

Total Loans(Rp bn)

34.1%

-0.8%

-2.1%

-0.5%

0.5%

6.2%

6.4%

8.8%

14.8%

18.2%

Lippo

Panin

BRI

Danam

on

BII

Niaga

Mandiri

Permata

BCA

BNI

Loan Growth (YTD)(%)

0.5%

0.5%

1.7%

1.8%

2.7%

3.3%

3.4%

11.6%

14.3%

1.9%

Lippo

BCA

Danam

on

Panin

BRI

Niaga

Permata

BII

BNI

Mandiri

NPL Ratio (Net)(%)

88.8

%

77.9

%

77.8

%

77.3

%

76.7

%

61.4

%

53.5

%

48.6

%

42.8

%

38.3

%

Niaga

Panin

Danam

on

BRI

Permata

BII

Mandiri

BNI

Lippo

BCA

Loan to Deposit Ratio(%)

1.6

%

2.0

%

3.5

%

3.6

%

4.8

%

4.8

%

6.5

%

7.8

%

16.6

%

26.0

%

BCA

Lippo

Danam

on

Niaga

BII

BRI

Permata

Panin

BNI

Mandiri

NPL Ratio (Gross)(%)

Average

85

Asset and liability mix relative to peersBank Only, As of September 2006

8.7

%

8.3

%

8.3

%

8.2

%

7.6

%

7.3

%

6.5

%

5.6

%

5.6

%

5.0

%

Permata

Panin

Danam

on

Niaga

BII

Mandiri

BRI

BNI

BCA

Lippo

80.3%

70.7%

67.4%

57.5%

57.3%

44.8%

44.2%

38.8%

44.8%

52.9%

Niaga

Permata

BRI

Danam

on

Panin

BII

Lippo

Mandiri

BNI

BCA

69.7%

66.9%

64.6%

56.4%

46.9%

42.6%

39.9%

39.5%

30.0%

26.7%

BCA

Lippo

BRI

BNI

Mandiri

Panin

Permata

BII

Niaga

Danam

on

242,6

13

33,9

50

30,3

44

36,4

39

42,4

03

45,6

78

74,8

96

140,4

57

156,6

98

163,2

63

Mandiri

BCA

BNI

BRI

Danam

on

BII

Niaga

Permata

Panin

Lippo

Loans to Total Earning Assets(%)

Cost of Funds (p.a.)(%)

Total Assets(Rp bn)

Low Cost Deposit Ratio(%)

17.3

%

14.9

%

14.7

%

13.8

%

13.0

%

12.8

%

12.1

%

12.0

%

11.2

%

11.0

%

BRI

Permata

Danam

on

Niaga

BII

BCA

Lippo

Panin

BNI

Mandiri

Yield on Assets (p.a.)(%)

Average

186,80

0

140,14

8

126,36

2

112,16

8

50,20

0

34,95

3

34,84

0

28,81

0

25,47

4

22,83

6

Mandiri

BCA

BNI

BRI

Danam

on

BII

Niaga

Permata

Lippo

Panin

Total Deposits(Rp tn)

86

Efficiency measures relative to peersBank Only, As of September 2006

68.7

%

63.7

%

62.0

%

56.7

%

51.8

%

51.7

%

51.0

%

48.4

%

45.0

%

43.2

%

Permata

Lippo

BII

BNI

Niaga

Danam

on

BRI

Mandiri

Panin

BCA

479

424

414

395

370

269

262

220

298

333

Panin

Mandiri

BCA

Niaga

BNI

BII

BRI

Permata

Lippo

Danam

on

8,8

62

7,5

44

6,9

75

6,7

55

6,4

90

4,9

67

4,3

49

4,2

46

2,9

88

2,7

14

Mandiri

Panin

Niaga

BCA

BNI

BII

Permata

Lippo

BRI

Danam

on

6,241

2,116

1,815

2,309

2,590

3,079

3,150

3,335

4,785

5,881

Niaga

Panin

Mandiri

Permata

BNI

BII

BCA

BRI

Danam

on

Lippo

Revenue/ Employee(Rp Mn)

Cost/ Income(%)

Loans/ Employee(Rp Mn)

Deposits/ Employee(Rp Mn)

215

212

144

119 98 84 74 66

104 48

BCA

Panin

Niaga

BRI

BNI

Lippo

Mandiri

BII

Danam

on

Permata

Pre Tax Income/Employee(Rp Mn)

2.3%

2.4%

2.6%

2.8%

3.2%

3.3%

3.4%

4.1%

1.9%

1.8%

Mandiri

Panin

BCA

Niaga

BNI

Danam

on

BII

Lippo

Permata

BRI

Cost/Assets(%)*

Industry Average

*Annualized

87

Measures of scale and returns relative to peersBank Only, As of September 2006

32.9

%

28.6

%

25.5

%

22.2

%

21.4

%

18.5

%

14.3

%

14.1

%

12.5

%

7.3%

BRI

BCA

Lippo

BNI

BII

Niaga

Panin

Danam

on

Permata

Mandiri

955

921

774

558

441

239

236

222

399

318

BNI

Mandiri

BCA

BRI

Danam

on

Lippo

Permata

BII

Panin

Niaga

11.3%

7.3%

7.1%

7.1%

6.0%

5.8%

5.5%

5.4%

4.9%

4.3%

BRI

BCA

Lippo

Danam

on

Permata

Niaga

BNI

BII

Panin

Mandiri

37,5

45

4,995

3,027

6,000

6,624

7,037

18,5

00

19,4

71

20,7

48

21,0

79

BRI

Mandiri

BCA

BNI

Danam

on

BII

Permata

Lippo

Niaga

Panin

Branches

Return on Equity (After Tax)(%)

Employees

Net Interest Margins(%)

4.6%

3.8%

2.8%

2.6%

2.3%

2.3%

1.8%

1.5%

1.2%

1.0%

BRI

BCA

Lippo

Panin

Niaga

Danam

on

BNI

BII

Permata

Mandiri

Return on Assets (Before Tax)(%)

4,173

2,662

2,272

971

779

697

691

582

345

333

BCA

Mandiri

BNI

BRI

Danam

on

BII

Lippo

Permata

Panin

Niaga

ATMs

Industry Average

88

Notes

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

89

Notes

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

90

Jan 1 2006

IPOfrom:

+55.30%+244.11%JCI

+76.83%+329.63%BMRI

Share Information

Investors Shares %

DOMESTIC1. Government 1 14,000,000,000 67.9%2. Retail 12,256 387,240,985 1.9%3. Employees 9,422 154,200,852 0.7%4. Pension Funds 115 133,230,500 0.6%5. Assurance/Banks 30 105,596,500 0.5%6. Institutions 211 313,304,930 1.5%7. Mutual Funds 85 296,641,000 1.4%Total 22,120 15,390,214,767 74.6%INTERNATIONAL1. Retail 45 10,584,000 0.1%2. Institutional 447 5,230,418,700 25.4%Total 492 5,241,002,700 25.4%

TOTAL 22,612 20,631,217,467 100.0%

DescriptionShareholders as of 31 December 2006

TradingVolume

Open/CloseDown Mo.

Open/CloseUp Mo.

High/Low

VWAP

91

nawal.nely@citigroup.com6221-5290-8564Nawal NelyCITIGROUP SECURITIES

tjandra.lienandjaja@asia.bnpparibas.com6221-5798-4661Tjandra LienandjajaBNP PARIBAS PEREGRINE

raymond.kosasih@db.com6221-318-9525Raymond KosasihDEUTSCHE VERDHANA SECURITIES

Joshua.tanja@ubs.com6221-570-2378Joshua TanjaUBS

aditya.srinath@id.abnamro.com6221-515-6016Aditya SrinathABN AMRO Asia Securities Indonesia

liny.halim@macquarie.com6221-515-7343Liny HalimMACQUARIE SECURITIES INDONESIA

jenny.ma@morganstanley.com852-2848-8206Jenny MaMORGAN STANLEY DEAN WITTER

yawinoto@kimeng.co.id6221-3983-1455Yusuf Ade WinotoKIM ENG SECURITIES

6221-515-8826

6221-526-3445

6221-5291-8570

6221-515-1330

852-3191-8630

6221-3983-2668

6221-350-9888

662-614-6213

6221-574-6911

6221-250-5081

TELEPHONE

Arief Koeswanto

Darmawan Halim

Rizal Prasetijo

Robert Adair

Lawrence Chen

Agus Pramono

Mulya Chandra

Roger Lum

Stephan Hasjim

Ari Pitoyo

ANALYST

lawrence_chen@fpk.comFOX-PITT, KELTON

mulya@danareksa.comDANAREKSA SECURITIES

roger.lum@csfb.comCREDIT SUISSE

arief_koeswanto@ml.com

darmawan@mandirisek.co.id

rizal.b.prasetijo@jpmorgan.com

adair.robert@cimb-gk.com

agus.pramono@id.dbsvickers.com

stephan.hasjim@clsa.com

aripitoyo@bahana.co.id

E-MAIL

DBS VICKERS SECURITIES

MANDIRI SEKURITAS

J.P. MORGAN ASIA

G.K. GOH INDONESIA

MERRILL LYNCH

CLSA LIMITED

BAHANA SECURITIES

BROKERAGE

The equity analysts listed above actively follow Bank Mandiri, but not all have issued research reports or formally instituted coverage.

Equity Research Contact Details

92

For Additional Information:

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

Or Contact:

Mansyur NasutionCorporate Secretary Tel: (6221) 524 5299 Fax: (6221) 5296 4024

Jonathan ZaxHead of Investor RelationsTel: (6221) 3002-3171Fax: (6221) 5290 4249E-mail: ir@bankmandiri.co.id

PT Bank Mandiri (Persero) TbkPlaza MandiriJl. Jend. Gatot Subroto Kav. 36-38Jakarta 12190Main Tel: 526-5045