Bank Mandiri (Persero) Tbk.

Brief of Company Background

PT Bank Mandiri became a Company as stated in Deed No.9, dated October 2, 1998, hereinafter referred to as PT Bank Mandiri (Persero).
PT Bank Mandiri (Persero) was established as part of the banking restructuring program implemented by the Indonesian government. In July 1999, four state-owned banks - Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor Indonesia and Bank Pembangunan Indonesia - were merged into Bank Mandiri, each of which had an integral role in the development of the Indonesian economy. To this day, Bank Mandiri continues its tradition of over 140 years of contributing to the Indonesian banking and economy.

The consolidation and integration

Following a comprehensive consolidation and integration process in all areas, Bank Mandiri has successfully built a solid bank organization and implemented a new integrated core banking system to replace the separate core banking systems of the four legacy banks. Since its inception, Bank Mandiri's performance has continued to improve as profits have steadily increased from Rp1.18 trillion in 2000 to Rp5.3 trillion in 2004. Bank Mandiri conducted an initial public offering on July 14, 2003 of 20% or the equivalent of 4 billion shares.

Phase I Transformation Program (2005 - 2009)

The year 2005 was a turning point for Bank Mandiri, where the Bank decided to become a regional champion bank, which was manifested in a transformation program implemented through 4 (four) main strategies, namely:

• Culture implementation. Performed through performance-based organizational restructuring, performance-based appraisal system restructuring, leadership and talent development, and human resource adjustment to strategic needs.
• Aggressive NPL control. Bank Mandiri focused on handling bad debts and strengthening the risk management system. Market growth through distinctive strategy and value preposition for each segment.
• Increased business growth above average. Bank Mandiri focuses on handling bad debts and strengthening risk management systems. Market growth through distinctive strategy and value preposition for each segment.
• Development and management of alliance programs between Directorates or Business Units in order to optimize services to customers, as well as to further explore the business potential of existing customers and the value chain of these customers.

Phase II Transformation Program (2010 - 2014)

In order to maintain and continuously improve its performance, Bank Mandiri undertook further transformation in 2010-2014, revitalizing its vision to “Become Indonesia's most admired and progressive financial institution”. With this vision, Bank Mandiri set out to achieve financial milestones in 2014, namely market capitalization of over Rp225 trillion with a market share of revenue approaching 16%, ROA reaching around 2.5% and ROE approaching 25%, while maintaining asset quality as reflected by a gross NPL ratio below 4%.

Phase III Transformation Program (2015 - 2020)

Increasingly complex challenges and the need to continuously improve performance and provide the best quality of service to customers require Bank Mandiri to carry out business transformation and organizational management in a sustainable manner. To that end, Bank Mandiri has implemented Phase III transformation 2015-2020. Bank Mandiri's long-term vision is “To be The Best Bank in ASEAN by 2020”. The formulation of this vision can be described as follows:

Bank Mandiri aims to be the best financial institution in ASEAN, in terms of services, products, and returns to shareholders, as well as the benefits received by society at large. This excellence is achieved by providing integrated services and products, financial solutions based on a deep understanding of the industry sector supported by technological advances, human quality and business synergies up to the subsidiaries.
Being the pride of the country and every person who works at Bank Mandiri has a responsibility that must be realized through good management and corporate governance.
With the goal of achieving a market capitalization of USD55 billion and a Return on Equity of 23%-27% by 2020, Bank Mandiri is determined to become an icon of Indonesian banking in ASEAN.

Corporate Plan Restart (2016 - 2020)

In 2016 there was a macroeconomic slowdown with one of the indicators at Bank Mandiri being a significant increase in NPLs. The increase in NPLs was particularly pronounced in the credit quality of segments that had dominated Bank Mandiri's loan growth, but which were not the Bank's original core competencies.

Based on these conditions, as well as not wanting to increase the market cap gap, it is necessary for Bank Mandiri to align the aspirations and vision of Bank Mandiri, Corporate Plan 2020 and return to the initial Core Competency, namely the Corporate Banking segment.

Corporate Plan 2020-2024

There are three main objectives of Bank Mandiri in the strategic focus of Corporate Plan 2020-2024, namely:

1. Be the Prominent Wholesale Bank, beyond lending)
Enhance Bank Mandiri's strength as a Wholesale bank to go beyond lending, by acquiring potential new revenue streams from customers through:

• Provision of beyond lending solutions such as Structured Finance and Trade through collaboration with Bank Mandiri's subsidiaries, namely Mandiri Sekuritas and Overseas Offices.
• Enhancement of transaction banking services, including cash management, forex and trade.
• Focus on anchor client penetration and progressive sectors.
• Enhanced Relationship Manager (RM) capabilities to become financial advisors for Bank Mandiri customers.
• Strengthening the service capabilities of the Wholesale Digital Super Platform KOPRA by Mandiri.

2. Promote sustainable and healthy growth of SME & Micro segments.

Promote Healthy and Sustainable SME & Micro Segment Growth by:

• Strengthening the SME network through strengthening the capabilities of the Sales Team and supporting tools.
• Improving the effectiveness of data analytics through Early Warning System (EWS).
• Streamlining business processes and improving value chain processes as well as using technology to accelerate credit acquisition and analysis.
• Enhancing branch capabilities through one-stop solution services for customers.
• Coaching micro customers to upgrade.
• Improving the micro credit process.

3. Becoming the Best Modern Digital Bank

Become the Best Modern Digital Bank, with the following steps:

• Dominate digital banking market share with a focus on the salaried-employee segment.
• Increasing payroll customer penetration and retail CASA growth through digital channels.
• Development of a financial superstore app that can serve the needs of Bank Mandiri customers.
• Strengthening partnerships with e-commerce in Indonesia.
• Development of Bank Mandiri digital applications that are integrated into the back-end core system.
• Enhancement of the bank's retail digital service capabilities.
• Acceleration of transaction migration to digital channels and optimization of branch network.

Shareholder List

Management