[PPT] - PT Bank Rakyat Indonesia (Persero) Tbk. Q1 - 2014 Financial Update PowerPoint Presentation

SLIDE 1

PT Bank Rakyat Indonesia (Persero) Tbk.

Q1 - 2014 Financial Update Presentation

2014 – optimizing capacity, securing growth

Jakarta, 23 April 2014

SLIDE 2

Outline

2

Macro Economy Q1 2014 - a maintained performance Financial Updates Business Update:

1. Micro Banking
2. Consumer Loans
3. Small Commercial and Medium Loans
4. SoE and Corporate Loans
3. Fee Based Income

Key Take Aways Appendixes

SLIDE 3

Macro Economy

3

SLIDE 4

4

Indonesia Macro Economy – a sign of better economy

GDP growth by the end of 2013 was better than expected at 5.78%

and GDP per capita increased to Rp 37.54 Mn. For 2014, cushioned by domestic based economy, we expect that GDP will grow by 5.5 – 5.9% yoy

A good sign for Indonesia economy was shown by a positive trade

balance in February and narrowing of CAD/GDP to -1.98% in Q4

2013. Further, reserve asset have increased, able to cover 5.7

months of imports and government external debt, which are above international standard of 3 months.

Rupiah appreciated against dollar with exchange rate of Rp 11,361

by the end of March 2014.

Source:BPS, BI & Bloomberg

GDP Trade Balance Reserved Assets & Exchange Rate

23.88 27.03 30.66 33.53 37.54 4.63% 6.22% 6.49% 6.23% 5.78% 2009 2010 2011 2012 2013 GDPPer Capita (in Rp Mn) GDPGrowth

0.16
0.07
0.29

0.13

1.7
0.53
0.88
2.33

0.07

0.81

0.02 0.79 1.53

0.44

0.79

2 4 6 8 10 12 14 16 18 20

Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

Trade Balance (USD.bn) Export Import 112.8 104.8 98.1 95.7 99.4 102.6

9,793 9,735 10,004 11,406 12,171 11,361

20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0

8,000 8,500 9,000 9,500 10,000 10,500 11,000 11,500 12,000 12,500

Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14

Reserved Assets (USD Mn) Exchange Rate (IDR/USD)

Current Account

(5,905) (9,998) (8,529) (4,018)

2.66
4.41
3.85
1.98

Q1 '13 Q2 '13 Q3 '13 Q4 '13 Current Account (USD mn) Current Account (% of GDP)

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5

Indonesia Macro Economy – a sign of better economy

In March 2014, YoY Inflation can be controlled at

7.32%, driven by lower volatile goods compare to previous

year. This relatively benign inflation had improve consumer

purchasing power, shown by the increasing trend of consumer confidence and retail sales index .

Investment still quite strong as indicated by the increase of

Foreign Direct Investment, reached Rp 71.2 Trillion in Q4 2013.

Source:BPS, BI & Bloomberg

Inflation (%) Retail Sales Index & Consumer Confidence Foreign Direct Investment - Quarterly

4.30 5.9 5.9 8.4 8.38 8.22 7.75 7.32 4.40 4.21 3.98 4.72 4.98 4.53 4.57 4.61 2.66 2.91 6.7 15.47 16.65 18.27 17.37 17.47 5.68 14.2 11.46 13.94 11.83 11.91 9.85 7.25

2012 Q1 2013 Q2 2013 Q3 2013 2013 Jan-13 Feb-14 Mar-14 Headline Inflation Core Inflation Administered Price VolatileGoods 51.5 56.1 56.6 56.8 65.5 66.7 67 71.2 Q1 Q2 Q3 Q4 2012 2013 (IDR Trillion) 102 107 112 117 122 127 132 137 142 147 120 130 140 150 160 170 180 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Retail Sales Index (LHS) Consumer Confidence (RHS)

SLIDE 6

8.00% 9.25% 6.50% 6.00% 6.00% 5.75% 5.75% 6.00% 7.25% 7.50% 7.50% 9.00% 10.25% 7.50% 7.00% 7.00% 6.75% 6.75% 6.75% 7.25% 7.50% 7.50% 7.00% 8.25% 5.50% 4.50% 4.50% 4.00% 4.00% 4.25% 5.50% 5.75% 5.75% 2007 2008 2009 2010 2011 2012 Q1 '13 1H '13 Q3 '13 2013 Feb '14

BI Rate upper band lower band

IndonesiaBanking Industry

6 BI Rate, Upper & Lower Band Loan Growth & NPL LDR, Deposit and M1 & M2 Growth

For the last 3 months, BI maintained BI rate

level at 7.50%, with lending rate and deposit facility rate of 7.50% and 5.75%, respectively.

Loan growth was slowing down, as expected

by BI, with NPL increasing in February 2014, seasonality pattern contribute to this condition.

As the growth of M1 and M2 are slowing

down in the past year, the same trend was happened in deposit growth. Thus, LDR of Indonesia banking industry increasing.

60% 65% 70% 75% 80% 85% 90% 5% 10% 15% 20% 25% 30% 35% 40% Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 M1 (LHS) M2 (LHS) DepositGrowth (LHS) LDR(RHS)

Mar’14

10.0% 22.8% 24.6% 23.1% 22.2% 20.6% 23.1% 21.6% 21.2% 20.2% 3.31% 2.56% 2.17% 1.87% 1.97% 1.88% 1.86% 1.77% 1.90% 1.99% 2009 2010 2011 2012 1Q13 1H'13 9M'13 2013 Jan'14 Feb '14 LoanGrowth (RHS) NPL (LHS)

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7

Q1 2014 – a maintained performance

SLIDE 8

Financial Updates

8

SLIDE 9

9

Financial Highlights

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

2009 2010 2011 2012 2013 Q1'13 Q1'14 ∆ yoy Asset/Liabilities Total Assets (IDR Billion) 314,746 398,393 456,531 535,209 606,370 511,977 595,741 16.4% Total Loans (Gross) (IDR Billion) 205,522 246,964 283,583 348,227 430,618 361,250 432,436 19.7% Total Deposits (IDR Billion) 254,118 328,556 372,148 436,098 486,366 403,089 470,017 16.6% Asset Quality NPL (gross) 3.52% 2.78% 2.30% 1.78% 1.55% 1.97% 1.78% NPL (nett) 1.08% 0.74% 0.42% 0.34% 0.31% 0.46% 0.47% Liquidity LDR 80.88% 75.17% 76.20% 79.85% 88.54% 89.62% 92.01% Reserve Requirement - IDR 5.90% 8.05% 9.33% 10.64% 8.02% 8.02% 8.02% Reserve Requirement - FX 1.00% 1.00% 8.00% 8.17% 8.00% 8.00% 8.00% Profitability Net Profit (IDR Billion) 7,308 11,472 15,083 18,521 21,160 5,007 5,902 17.9% NIM 9.1% 10.8% 9.6% 8.42% 8.55% 8.19% 9.06% ROE 35.2% 43.8% 42.5% 38.66% 34.11% 32.63% 30.95% ROA before tax 3.7% 4.6% 4.9% 5.15% 5.03% 4.76% 5.02% Cost of Fund (CoF) 6.0% 4.9% 4.7% 3.68% 3.71% 3.54% 3.94% Cost Efficiency Ratio (CER) 46.8% 42.2% 41.2% 43.11% 42.13% 44.22% 41.80% Operating Expense to Operating Income 77.7% 70.9% 66.7% 59.93% 60.58% 60.46% 62.96% Capital Tier1 CAR 12.0% 12.0% 13.7% 15.86% 16.13% 16.90% 17.46% Total CAR 13.2% 13.8% 15.0% 16.95% 16.99% 17.91% 18.27%

SLIDE 10

10

(IDR Billion)

Balance Sheet – a Strong Balance Sheet Structure with sufficient liquidity

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Description 2009 2010 2011 2012 2013 Q1'13 Q1'14 YoY

Total Assets 314,746 398,393 456,531 535,209 606,370 511,977 595,741 16.4%

Gross Loans

205,522 246,964 283,583 348,227 430,618 361,250 432,436 19.7%

Government Bonds (Recap)

15,027 13,626 8,996 4,316 4,511 4,313 4,315 0.1%

Other Earnings Assets

76,487 113,669 127,774 131,547 115,168 104,187 105,204 1.0% Total Earning Assets 297,037 374,259 420,353 484,089 550,297 469,750 541,955 15.4% Earning Assets Provision (11,576) (14,007) (15,869) (14,584) (15,072) (14,737) (15,432) 4.7% Total Earning Assets (net) 285,461 360,252 404,484 469,505 535,225 455,013 526,523 15.7% Total Non Earning Assets 29,285 38,141 52,047 65,704 71,145 56,964 69,218 21.5% Total Liabilities & S.E 314,746 398,393 456,531 535,209 606,370 511,977 595,741 16.4% Total Customer Deposits 254,118 328,556 372,148 436,098 486,366 403,089 470,017 16.6%

Demand Deposits

49,965 77,049 75,579 78,753 78,017 57,937 71,026 22.6%

Saving Deposits

104,119 125,198 152,474 182,643 210,004 172,489 199,949 15.9%

Time Deposits

100,034 126,310 144,095 174,702 198,346 172,663 199,042 15.3% Other Interest Bearing Liabilities 20,941 16,595 18,413 14,466 19,873 18,774 19,175 2.1% Non Interest Bearing Liabilities 12,429 16,569 16,195 20,008 21,261 25,769 27,962 8.5% Tier I Capital 20,846 27,673 38,215 51,593 65,964 58,216 72,909 25.2% Total Shareholder's Equity 27,257 36,673 49,775 64,637 78,870 64,345 78,587 22.1%

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11

Composition – by business segment (%) Loans Outstanding – by business segment

(IDR Trillion)

Loan – Mix and Growth

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only Micro Consumer Small Commercial Medium SoE Corporate Non-SoE Total Loan

Total loan grew 19.7% (yoy), with Microloan as the growth driver, grew 21% (yoy) and maintained as the largest component of loan portfolio, 31.4%

54.1 75.4 90.2 106.8 132.1 112.2 135.8 41.1 51.4 55.8 61.5 73.9 63.8 75.5 57.2 62.4 67.6 75.6 94.0 71.5 86.8 14.9 13.8 13.8 16.5 20.3 16.5 19.1 17.4 20.4 32.0 49.8 62.5 57.9 69.4 20.9 23.5 24.3 38.0 47.7 39.3 45.9 205.5 247.0 283.6 348.2 430.6 361.2 432.4

200.0

400.0

2009 2010 2011 2012 2013 Q1'13 Q1'14

26.3 30.5 31.8 30.7 30.7 31.1 31.4 20.0 20.8 19.7 17.6 17.2 17.7 17.5 27.8 25.3 23.8 21.7 21.8 19.8 20.1 7.3 5.6 4.9 4.7 4.7 4.6 4.4 8.5 8.3 11.3 14.3 14.5 16.0 16.0 10.2 9.5 8.5 10.9 11.1 10.9 10.6

0.0 50.0 100.0

2009 2010 2011 2012 2013 Q1'13 Q1'14

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12

Non Performing Loan - gross (%)

Loan Quality

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedin this presentationare bank only

Loan & NPL - trend

Seasonal Pattern : NPL

Compare to Q4, NPL tends to increase in Q1

NPL Seasonality: BRI & Banking Industry

3.52% 2.78% 2.30% 1.78% 1.55% 1.97% 1.78% 205.5 247.0 283.6 348.2 430.6 361.2 432.4

100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00%

2009 2010 2011 2012 2013 Q1'13 Q1'14 NPL (%) Total Loan (Rp Tr) 0% 2% 3% 5%

Q4'08 Q1'09 Q4'09 Q1'10 Q4'10 Q1'11 Q4'11 Q1'12 Q4'12 Q1'13 Q4'13

BRI NPL Industy NPL

Inflation BRI NPL Industy NPL

From the past experience, fuel price hike will give impact to increasing NPL in the next 9 – 12 months after the price adjustment NPL (%) 2009 2010 2011 2012 2013 Q1'13 Q1'14

Micro 1.40 1.21 1.19 1.09 1.04 1.29 1.33 Consumer 1.35 1.40 1.53 1.60 1.40 1.69 1.50 Small Commercial 4.21 5.11 4.53 3.75 3.13 4.63 3.85 Medium 12.31 6.90 7.11 5.09 4.38 5.47 5.27 SoE 0.23 0.00 0.00 0.00 0.00 0.00 0.00 Corporate 7.83 4.64 2.24 1.00 0.87 0.97 0.92 Total 3.52 2.78 2.30 1.78 1.55 1.97 1.78

1.78% 1.99% 7.32%

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13

Deposits - Seeking low cost- solid retail funds

Deposits: Trend Deposit Composition, COF & BI Rate

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Each Q1 tend to have a

lower QoQ growth than Q4

Compare to Q4, CASA

ratio tend to be lower in Q1

Deposit – QoQ Growth

(%)

(IDR trillion)

12%

3% 18% 33%

Q4'10 Q1'11 Q4'11 Q1'12 Q4'12 Q1'13 Q4'13 Q1'14

30% 40% 50% 60%

CASA Ratio

In the tighter liquidity situation in the banking system in 2014, BRI has successfully manage its CASA ratio in Q1 2014, to be higher than Q1 2013 position

Seasonality:

50.0 77.0 75.6 78.8 78.0 57.9 71.0 104.1 125.2 152.5 182.6 210.0 172.5 199.9 100.0 126.3 144.1 174.7 198.3 172.7 199.0

254.1 328.6 372.1 436.1 486.4 403.1 470.0 2009 2010 2011 2012 2013 Q1'13 Q1'14 Demand Deposit Savings Time Deposit TOTAL

60.6% 61.6% 61.3% 59.9% 59.2% 57.2% 57.7% 39.4% 38.4% 38.7% 40.1% 40.8% 42.8% 42.3% 6.02% 4.90% 4.70% 3.68% 3.71% 3.54% 3.94% 6.50% 6.50% 6.00% 5.75% 7.50% 5.75% 7.50%

1.00%

1.00% 3.00% 5.00% 7.00% 9.00% 11.00% 13.00% 15.00% 17.00% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2009 2010 2011 2012 2013 Q1'13 Q1'14

LowCost HighCost COF BI Rate

SLIDE 14

14

(IDR Billion)

Income Statement - Highlights

... Much stronger income generation from operations...

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only Note: *) Detail on theFee & Other Operating Incomeon page 34 **)annualized

Description 2009 2010 2011 2012 2013 Q1'13 Q1'14 YoY

Interest Income 35,071 43,971 46,949 47,922 57,301 12,873 16,456 27.8% Interest Expense (12,180) (11,449) (13,079) (12,461) (14,395) (3,219) (4,373) 35.9% Net Interest Income 22,891 32,523 33,870 35,461 42,906 9,654 12,084 25.2% Fee & Other Opr. Income *) 3,257 5,458 5,524 8,166 8,165 1,726 1,805 4.6% Gross Operating Income 26,148 37,980 39,394 43,627 51,071 11,380 13,888 22.0% Other Operating Expenses (11,773) (15,648) (16,288) (18,602) (21,284) (4,949) (6,014) 21.5% Pre Provision Operating Profit 14,375 22,332 23,106 25,025 29,788 6,431 7,874 22.5% Provision (5,805) (7,926) (5,532) (2,555) (3,916) (654) (1,108) 69.5% Non Operating Profit/Loss 1,327 497 1,157 1,169 1,776 356 605 69.9% Profit Before Tax n Minor. Int. 9,897 14,903 18,731 23,639 27,648 6,133 7,372 20.2% Net Profit 7,308 11,472 15,083 18,521 21,160 5,007 5,902 17.9% EPS**) 296.3 465.0 611.4 750.8 857.8 811.9 957.0 17.9%

SLIDE 15

Business Updates

15

SLIDE 16

Micro Banking

Sustaining Growth-

16

SLIDE 17

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Micro Loan Micro KUR

Micro Banking – Loan

Total Micro Loan and KUR increased 21.0% (yoy), supported both by growth in micro

KUR and micro loan

Number of borrower in Micro reach 6.7 million in Q1-2014,increase around 1 million

from Q1-2013

Micro KUR NPL is positioned at 2.02%, a slight increase from 1.99% in March 2013.

However migration of micro KUR borrower to commercial micro loan keep continuing, reach 879 thousand with plafond of Rp 13.2 Trillion in Q1-2014.

Performance Migration of Micro KUR to Micro Loan

(IDR Trillion) Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Micro Borrower

(Million)

54.1 75.4 90.2 106.8 132.1 112.2 135.8 2009 2010 2011 2012 2013 Q1'13Q1'14

3.4 5.7 11.2 15.1 20.8 16.4 21.7

1.3 1.4 1.9 2.2 2.6 2.3 2.7

1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 3.0

2009 2010 2011 2012 2013 Q1'13 Q1'14

0.5 2.5 4.5 6.5 8.5 10.5 12.5 14.5 16.5 18.5 20.5

Outstanding (IDR Trillion) Borrowers (in Million) 2.22 4.23 5.39 7.8 12.1 8.7 13.2

301 417 531 684 842 720 879

2 4 6 8 10 12 14 100 200 300 400 500 600 700 800 900 1000

2009 2010 2011 2012 2013 Q1'13Q1'14 Plafond (IDR Trillion) Borrowers (in Thousand)

5.1 5.3 5.5 6.5 5.7 6.7

2010 2011 2012 2013 Q1'13Q1'14

SLIDE 18

18 Micro Funding, providing liquidity from stable core funding

Deposit Micro Deposit Composition

Micro Banking - Deposit

Q1’13

IDR Trillion

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Saving dominates total Micro’sdeposit, with average size of around IDR 5 million To secure continued loan growth with enough liquidity from low cost and stable core funds

Demand Deposit Time Deposit Saving

75.5 90.0 107.5 126.6 146.2 124.0 144.7 2009 2010 2011 2012 2013 Q1'13 Q1'14 88.0% 1.1% 11.0% 87.4% 1.2% 11.4%

Q1’14

SLIDE 19

1.0 2.9 5.3 10.0 5.9 10.6 0.3 1.0 2.3 5.1 2.2 4.4 617 1,304 2,671 2,154 2,673

(300) 200 700 1,200 1,700 2,200 2,700 (1.0) 1.0 3.0 5.0 7.0 9.0 11.0

2010 2011 2012 2013 Q1'13 Q1'14 Loan Deposit # of Teras BRI

2,128

TerasBRI - Performance

Teras BRI - more accessible, getting closer to customers

Micro Banking – Teras BRI

TerasBRI - Contribution to Micro Loan & Deposit

19

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

IDR Trillion

Loan Deposit TerasBRI and mobile TerasBRI are the arm-length of conventional micro outlet, designed to develop the market and protect the market from competitors. TerasBRI continuously shows superior performance with loan growth of 78.8% and deposit of 95.8% yoy.

0.3% 0.9% 1.8% 3.5% 1.8% 3.0%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

2010 2011 2012 2013 Q1'13 Q1'14

1.3% 3.2% 5.0% 7.6% 5.3% 7.8% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

2010 2011 2012 2013 Q1'13 Q1'14

SLIDE 20

Consumer Loans

20

SLIDE 21

Mortgage 16.7% Vehicle Loan 3.7% Salary Based Loan 77.4% Other 2.2%

Consumer Loan- growing in a profitable way

Trend

(IDR Trillion)

Composition

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

2009 2010 2011 2012 2013 Q1'13 Q1'14 1.35 1.40 1.53 1.60 1.40 1.69 1.50

34.2 41.1 43.8 49.0 57.5 51.1 58.4 6.9 10.3 12.0 12.5 16.4 12.7 17.0 41.1 51.4 55.8 61.5 73.9 63.8 75.5

2009 2010 2011 2012 2013 Q1 '13 Q1 '14 Salary Based Loan Others Total Consumer Loan

Consumer loan grew 18.4% (yoy), with the

biggest contribution coming from salary based loan, around 77% of BRI’s consumer loan

In the last 5 years, loan quality can be

maintained below 2%, in Q1 2014 recorded at 1.50% declining from 1.69% in Q1 2013

21

SLIDE 22

Small Commercial & Medium Loans

22

SLIDE 23

23

Small Commercial & Medium Loans – a successful restructuring…

Small Commercial Medium

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

As the result of continuous restructuring, NPL is trending down steadily….

(IDR Trillion) (IDR Trillion) 57.2 62.4 67.6 75.6 94.0 71.5 86.8 4.21% 5.11% 4.53% 3.75% 3.13% 4.63% 3.85%

0.00% 2.00% 4.00% 6.00% 0.0 20.0 40.0 60.0 80.0 100.0

2009 2010 2011 2012 2013 Q1'13 Q1'14 Small NPL 14.9 13.8 13.8 16.5 20.3 16.5 19.1 12.31% 6.90% 7.11% 5.09% 4.38% 5.47% 5.27%

2.50% 4.50% 6.50% 8.50% 10.50% 12.50% 14.50% 10

2009 2010 2011 2012 2013 Q1'13 Q1'14 Medium NPL

Medium O/S Small Comm. O/S

SLIDE 24

SoE & Corporate Loans

24

SLIDE 25

3.40 6.46 1.46 3.23 Mar '13 Mar '14 Plafond Outstanding

25

SOE & Corporate Loans

(IDR Trillion)

Note:Numbers statedinthis presentationare bank only

By business segment SoE Loans Corporate Loans Growth Trend

SOE loans quality is manageable with zero percent of

NPL for the last 4 years, while NPL in Corporate also can be maintained at below 1% in March 2014, recorded at 0,92%

For SOE, the biggest portion of loan is disbursed to

Agribusiness and Infrastructure sector while for Corporate is to Agribusiness sector.

2009 2010 2011 2012 2013 Q1'13 Q1'14 Corp 7.83 4.64 2.24 1.00 0.87 0.97 0.92 SoE 0.23

Trickle Down Business

Loans from Corporate & SoE Customers

Agribusin ess 33.7% Industry 12.6% Infrastruc ture, Utilities and Trans 41.8% Mining, Oil and Gas 2.8% Others 9.0% Agribusi ness 41.2% Industry 29.4% Infrastru cture, Utilities and Trans 11.0% Mining, Oil and Gas 8.3% Others 10.0%

In March 2014, loans plafond trickled down from SoE & Corporate segments grow 90.0% (yoy) with outstanding of IDR 3.23 Trillion, grow 121.2% (yoy)

38.3 43.9 56.2 87.8 110.2 97.2 115.2 2009 2010 2011 2012 2013 Q1'13 Q1'14

Corporate SoE Total Corp +SoE Loan

45.4% 46.5% 56.8% 56.7% 56.7% 54.6% 53.5% 43.2% 43.3% 43.3% 59.6% 40.4% 60.2% 39.8%

(IDR Trillion)

SLIDE 26

Fee Based Income

Growing Presence of E-Banking -

26

SLIDE 27

662.1 63.9% 123.9 12.0% 73.5 7.1% 78.3 7.6% 24.5 2.4% 49.4 4.8% 23.9 2.3% Deposit Adm. Fee e-Banking Related Fee

LoanAdm. Fee

Trade Finance Credit Card PaymentService Others 22.3 1.8% 50.7 4.1% 35.6 2.9% 77.0 6.2% 75.4 6.1% 180.2 14.5% 802.6 64.5%

27

Fee Based Income - Composition

Mar 2013 Mar 2014

E-banking Related Fees increasedsignificantly,45.4%, yoy, the highest compare to other Fee Income

components,raising its portion from 12.0% to 14.5% of the total Fee Income.

Deposit administrationfee still contribute the biggest part of fee-based income, as BRI has large number of

customer accounts

Fee Based Income

(Nominal in IDR Billion)

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

2.1 2.8 3.4 3.9 4.9 1.0 1.2

1.0

2.0 3.0 4.0 5.0 6.0

2009 2010 2011 2012 2013 Mar-13 Mar-14

YoY g = 20.1%

IDR Trillion

E-banking related fee grew 45.4% yoy

SLIDE 28

308.4 377.3 673.6 123.9 180.2 2011 2012 2013 1Q131Q14

10.5 17.0 19.4 17.8 20.5 '11 '12 '13 1Q131Q14 0.16 0.37 1.03 0.43 1.38 '11 '12 '13 1Q131Q14 6.9 14.7 23.9 4.1 10.5 '11 '12 '13 1Q131Q14 2.8 9.3 26.8 3.9 11.4 '11 '12 '13 1Q131Q14 1.60 3.40 5.87 3.69 6.72 '11 '12 '13 1Q131Q14 25.4 46.6 84.0 15.8 27.9 '11 '12 '13 1Q131Q14 2.8 7.7 21.0 3.5 8.7 '11 '12 '13 1Q131Q14 249.6 429.2 757.8 157.0216.9 '11 '12 '13 1Q131Q14 482.7 789.2 1,150. 7 241.7334.2 '11 '12 '13 1Q131Q14

28

ATM SMS Banking InternetBanking

# of Users # of Transaction Transaction Value

YOY Growth 38.2% YOY Growth 193.9% YOY Growth 154.0% YOY Growth 15.1% YOY Growth 81.8% YOY Growth 218.7%

E-Banking Performance – a growing presence…

E-banking related fee

(IDR Billion)

YOY Growth 38.3% YOY Growth 76.1% YOY Growth 146.5%

YOY Growth 45.4%

(Million) (IDR Trillion) (Million)

Ample opportunity to grow fee based income coming from e-banking, as BRI has huge base number of customer accounts (As of Mar’14, >50 million accounts)

SLIDE 29

Key Take Aways

29

SLIDE 30

Key Take Aways

30

Micro loan grew at 21% YoY , faster than total loan growth which stood at 19.7% yoy
Deposits growth driven by a faster current account growth (22.6% yoy) and a steady saving

account growth (15.9% YoY)

Fee based income is growing steadily, reaching 20.1% YoY
Despite current economic condition, Q1 2014 is in the same yearly quarterly pattern with

previous period, witha stronger operation performance compare to Q1 2013 position:

Lower NPL (1.97% vs 1.78%)
Maintained CASA portion, with a more resilient growth - despite tighter liquidity in the

industry (57.2% vs 57.7%)

Better NIM despite higher funding cost (8.19% vs 9.06%)
BetterPPOP growth (14.5% vs 22.5%)
Betteroperating cost management, CER (44.2% vs 41.8%)

SLIDE 31

Appendixes

31

Financial Performance Others

SLIDE 32

Financial Performance

32

SLIDE 33

33

Financial Ratios

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Description Q1'13 Q1'14

Cost of Fund (COF) 6.02% 4.90% 4.70% 3.68% 3.71% 3.54% 3.94% Loan to Deposit Ratio 80.88% 75.17% 76.20% 79.85% 88.54% 89.62% 92.01% Net Interest Margin (NIM) 9.14% 10.77% 9.58% 8.42% 8.55% 8.19% 9.06% NPL ratio - Gross 3.52% 2.78% 2.30% 1.78% 1.55% 1.97% 1.78% NPL ratio - Nett 1.08% 0.74% 0.42% 0.34% 0.31% 0.46% 0.47% CKPN to Earning asset 4.29% 4.58% 4.51% 3.43% 2.90% 3.30% 2.95%

Opr. Expense to Opr. Income

77.66% 70.86% 66.69% 59.93% 60.58% 60.46% 62.96% Cost Efficiency Ratio (CER) 46.72% 42.22% 41.17% 43.11% 42.13% 44.22% 41.80% Tier I CAR 12.05% 12.01% 13.67% 15.86% 16.13% 16.90% 17.46% Total CAR 13.20% 13.76% 14.96% 16.95% 16.99% 17.91% 18.27% Return on Assets (ROA) - b.t 3.73% 4.64% 4.93% 5.15% 5.03% 4.76% 5.02% Return on Assets (ROA) - a.t 2.76% 3.57% 3.97% 4.04% 3.85% 3.89% 4.02% Return on Equity (ROE) - Tier I 35.22% 43.83% 42.49% 38.66% 34.11% 32.63% 30.95% Return on Equity (ROE) - B/S 28.83% 35.94% 35.10% 32.41% 30.10% 30.28% 29.30%

Min. Reserve Requirement

5.90% 8.05% 9.33% 10.64% 8.02% 8.02% 8.02% Net Open Position 5.22% 4.45% 5.49% 3.00% 3.15% 6.45% 4.44%

2012 2013 2009 2010 2011

SLIDE 34

Fee & Other Operating Income

IDR Billion

Sources of Income

34 As of Mar 2014, Interest Income contributed 87.2% of total income

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Interest Income

Interest Income from loans contribute 90.7% of total interest income (or 79.1% of total income)

IDR Billion

Total Income

Fee & Other Operating Income 2009 2010 2011 2012 2013 Q1'13 Q1'14 YoY

Gain Fr Value Increase of Securities and Govt. Recap Bonds 270 156 146 56 83

11

n.a. Fees and Commissions 2,102 2,813 3,367 3,928 4,860 1,036 1,244 20.1% Gain fr Forex 713 773 36 427 455 182

100.0%

Recovery

1,525

1,794 2,251 1,932 443 396

10.8%

Others 172 191 181 1,504 835 64 154 139.7% Total Fee & Other Opr. Income 3,257 5,458 5,524 8,166 8,165 1,726 1,805 4.6% Total Income 2009 2010 2011 2012 2013 Q1'13 Q1'14 YoY Interest income 35,071 43,971 46,949 47,922 57,301 12,873 16,456 27.8% Fee & Other Opr.Income 3,257 5,458 5,524 8,166 8,165 1,726 1,805 4.6% Non Operating Income (net) 1,327 497 1,157 1,169 1,776 356 605 69.9% Total Income 39,655 49,926 53,631 57,256 67,242 14,954 18,866 26.2%

Interest Income 2009 2010 2011 2012 2013 Q1'13 Q1'14 YoY

Interest from Loans 29,290 39,587 41,657 42,623 51,733 11,361 14,929 31.4%

Int. from Other Earning Assets

3,975 2,878 4,178 5,299 5,567 1,512 1,528 1.1% Total Interest Income 35,071 43,971 46,949 47,922 57,301 12,873 16,456 27.8%

SLIDE 35

IDR Billion

Other Operating Expenses

35

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Other Operating Expenses 2009 2010 2011 2012 2013 Q1'13 Q1'14 YoY

Personnel 6,586 8,478 8,327 9,215 11,748 2,980 3,146 5.6% General and Administration 3,648 4,534 5,362 6,000 7,103 1,355 1,737 28.2% Losses fr decrease of Securities

and Govt. Bonds value
n.a.

Losses from forex transaction

212

n.a. Premium Paid on Govt Guarantees 423 517 610 729 885 212 249 17.8% Promotion 418 479 603 731 652 134 105

21.5%

Others 699 1,640 1,386 1,928 897 268 564 110.3% Total Other Opr. Expenses 11,773 15,648 16,288 18,602 21,284 4,949 6,014 21.5%

SLIDE 36

Balance Sheet (consolidated)

36

Note:Since FY 2010, figures are PSAK50 &55 compliant

IDR Billion

Description 2009 2010 2011 2012 2013 Q1'13 Q1'14 YoY

Total Assets 316,947 404,286 469,899 551,337 626,183 529,509 615,719 16.3%

Gross Loans

208,123 252,489 294,515 362,007 448,345 375,789 450,157 19.8%

Government Bonds (Recap)

15,027 13,626 8,996 4,316 4,511 4,313 4,315 0.1%

Other Earnings Assets

75,913 113,580 129,136 132,720 115,690 105,860 105,754

0.1%

Total Earning Assets 299,063 379,696 432,647 499,042 568,546 485,962 560,226 15.3% Earning Assets Provision (11,665) (14,121) (16,092) (14,916) (15,419) (15,083) (15,740) 4.4% Total Earning Assets (net) 287,398 365,575 416,555 484,126 553,127 470,879 544,485 15.6% Total Non Earning Assets 29,549 38,710 53,345 67,211 73,055 58,631 71,233 21.5% Total Liabilities & S.E 316,947 404,286 469,899 551,337 626,183 529,509 615,719 16.3% Total Customer Deposits 255,928 333,652 384,264 450,166 504,281 418,050 487,669 16.7%

Demand Deposits

50,094 77,364 76,779 80,075 79,337 59,007 71,973 22.0%

Saving Deposits

104,463 125,990 154,133 184,365 212,997 174,671 203,063 16.3%

Time and Certificate Deposits

101,371 130,298 153,353 185,726 211,948 184,372 212,633 15.3% Other Interest Bearing Liabilities 21,284 17,297 19,361 15,784 20,896 20,687 20,376

1.5%

Non Interest Bearing Liabilities 12,477 16,663 16,454 20,505 21,678 26,138 28,582 9.4% Tier I Capital 21,057 28,135 38,809 52,325 67,270 58,991 74,102 25.6% Total Shareholder's Equity 27,257 36,673 49,820 64,882 79,327 64,635 79,092 22.4%

SLIDE 37

Income Statement (consolidated)

37

Note:Since FY 2010, figures are PSAK50 &55 compliant

*) annualized

IDR Billion

Description 2009 2010 2011 2012 2013 Q1'13 Q1'14 YoY Interest Income 35,334 44,615 48,164 49,610 59,461 13,352 17,099 28.1% Interest Expense (12,285) (11,727) (13,737) (13,127) (15,355) (3,434) (4,698) 36.8% Net Interest Income 23,049 32,889 34,427 36,484 44,106 9,919 12,401 25.0% Fee & Other Opr. Income 3,270 5,545 5,776 8,390 8,348 1,796 1,825 1.6% Gross Operating Income 26,319 38,433 40,203 44,873 52,455 11,715 14,227 21.4% Other Operating Expenses (11,960) (16,114) (17,086) (19,491) (22,381) (5,180) (6,321) 22.0% Pre Provision Operating Profit 14,360 22,319 23,117 25,382 30,074 6,535 7,906 21.0% Provision (5,799) (7,917) (5,533) (2,700) (3,946) (676) (1,100) 62.6% Non Operating Profit/Loss 1,331 506 1,172 1,177 1,782 357 606 69.7% Profit Before Tax n Minor. Int. 9,891 14,908 18,756 23,860 27,910 6,216 7,412 19.2% Net Profit 7,308 11,472 15,088 18,687 21,354 5,087 5,938 16.7% EPS *) 609.5 478.4 628.9 757.5 865.6 824.8 963 16.7%

SLIDE 38

Others

38

SLIDE 39

39

The STRENGTH : Network

E-Channel Conventional Outlet

include 3 overseas offices

Note: Numbers statedinthis presentationare bank only

RO Banda Aceh

RO. Banjarmasin
RO. Makassar
RO. Manado
RO. Palembang
RO. Jakarta 1, 2, and 3
RO. Denpasar
RO. Bandung
RO. Semarang
RO. Surabaya & Malang

RO Medan RO Pekanbaru

RO. Padang
RO. Yogyakarta
RO. Papua

Papua

Regional Office Distribution

Regional Offices Branch Offices Sub-Branch Offices BRI Unit Teras BRI Cash Counters Teras BRI Keliling Outlets 2009 2010 2011 2012 2013 Q1'13 Q1'14 yoy Head Offices 1 1 1 1 1 1 1

Regional Offices

17 18 18 18 18 18 18

Branches

406 413 431 446 453 446 456 10 Sub Branches 434 470 502 545 565 545 562 17 BRI Units 4,538 4,649 4,849 5,000 5,144 5,001 5,144 143 Cash Offices 728 822 870 914 950 919 953 34 Teras BRI 217 617 1,304 1,778 2,206 1,804 2,208 404 Teras Mobile 100 350 465 350 465 115 Total 6,341 6,990 8,075 9,052 9,802 9,084 9,807 723 E-Channel 2009 2010 2011 2012 2013 Q1'13 Q1'14 yoy ATM 3,778 6,085 7,292 14,292 18,292 14,367 18,479 4,112 EDC 6,398 12,719 31,590 44,715 85,936 49,381 85,936 36,555 CDM 22 39 89 92 192 92 192 100 Kiosk 60 96 100 100 100 100 100

E-Buzz

1 2 19 42 50 45 45

Total

10,259 18,941 39,090 59,241 104,570 63,985 104,752 40,767

SLIDE 40

18 12 11 6 7 5

4

40

Milestones - Networks

Hybrid Branch All outlet real time

nline,

E-Buzz, Teras BRI, BRILink, Internet Banking MoCash TerasBRI Mobile Mobile Banking CDM, Cash Management

2013 2012 2011 2009 2007 2006

Note: Numbers statedinthis presentationare bank only

BRIZZI

2010

The STRENGTH:Proven Infrastructure & Improving Service Quality

25 75 28 114 15 136 110 230 80 230 2009 Okt2013 Internet Banking MobileBanking CMS ATM EDC

2013 Developments ofe-bankingalso accelerated, shows byincreasingusage of e-channel Completee-bankingfeatures,> 200 features available

Number of Daily Transaction Proven Infrastructure

Service qualitycontinuously
improved. Currently,BRI positioned

at Rank4th in MRI* survey

Features Enhancement Service Quality – MRI Rank*

ISO 9001:2008 by LRQA

Card Production
Complaint Handling
Payment System by RTGS

&Clearing

RemittanceSystem
Audit Process
Improvingbusiness process, providereliable

transaction and increaseefficiency

BRI is targeting for more ISO certifications, so that

bythe end of 2017, all operatingprocesses will be certified.

* Independent surveyheld by Market Research Indonesia (MRI)

302.8 363.0 374.9 441.0 486.0 113.3 128.8 161.8 355.6 635.9 898.1 1,341.9 281.2 409.8

0.5 1.0 1.7 2.0 2.8 2.5 3.2

0.5

1.0 1.5 2.0 2.5 3.0 3.5

200

400 600 800 1,000 1,200 1,400 1,600

2009 2010 2011 2012 2013 Q1'13 Q1'14 Teller Trx E-Channel Trx

(Million)

E-channel Trx to Teller Trx

SLIDE 41

41

Network

Thelargest real time online conventional &e- channel networks

People

Large,younger & well educated ProvenInfrastructure, ImprovingService Quality Thelargest

Client Base

What BRI has What BRI will do to secure growth What does it mean

BRI ready to grab huge & un-tap potential of Indonesia Ready to embrace changes,faster more effient & reliable

perations

huge business potential development

ptimizing usageof networks

Expanding to new area of potential Moremarketing roles& continuous HR development Developing moreIT based infrastructure& Improving business process(gaining moreISO certificates) Morecross selling potential Reaching newcustomer& new segment

Retail Funding, Selective Loan Growth

2014

2014 & Beyond

ptimizing capacity, securing growth…

Note: Numbers statedinthis presentationare bank only

SLIDE 42

Long Term Foreign Currency IDR

BBB-, Stable Outlook

Short Term Foreign Currency IDR

F3

Support Rating Floor

BBB-

Support Rating

2

Viability Rating

bb+

National Long-Term Rating

AAA (idn), Stable Outlook

Rupiah Subordinated Debt

A+ (idn)

Senior Unsecured Notes

BBB-

Outlook

Stable

Long Term Foreign Issuer Credit

BB+

Long Term Local Issuer Credit

BB+

Short Term Foreign Issuer Credit

B

Short Term Local Issuer Credit

B

Outlook

Stable

Bank Deposit

Baa3/P-3

Bank Financial Strength

D+

Baseline Credit Assessment

(Ba1)

Adjusted Baseline Credit Assessment

(Ba1)

Senior Unsecured Notes

Baa3

National Rating

id AAA, Stable Outlook Standard and Poors BB+, Stable Outlook Fitch BBB-, Stable Outlook Moody's Baa3, Stable Outlook Japan Credit Rating Agency BBB-, Stable Outlook Indonesia Sovereign Ratings MOODY'S PEFINDO FITCH STANDARD AND POORS

BRI Rating Country Rating

Ratings

42

Baa3 Baa3

SLIDE 43

*) percentage from public holding

Shareholders Composition Stock Price: Trend

Shareholders& Stock Performance

Shareholder 2003 2009 2010 2011 2012 2013 Q1’13 Q1’14 Government 59.50% 56.77% 56.75% 56.75% 56.75% 56.75% 56.75% 56.75% Public 40.50% 43.23% 43.25% 43.25% 43.25% 43.25% 43.25% 43.25%

Foreign *) 79.10% 84.16% 84.25% 83.93% 82.84% 78.94% 86.31% 83.83% Domestic *) 20.90% 15.84% 15.75% 16.07% 17.16% 21.06% 13.69% 16.17%

BBRI Stock is member of:

JCI Index
LQ45 Index (Top 45

liquid stocks)

SRI KEHATI Index (a UN

affiliated biodiversity Index of 25 stocks) 43

2,000

4,000 6,000 8,000 10,000 12,000

50

100 150 200 250 300 350

Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Harga Volume

BBRI

volume Price

SLIDE 44

PT BANK RAKYAT INDONESIA (Persero) Tbk. Investor Relations 20th floor BRI I Building Jl Jendral Sudirman Kav 44-46 Jakarta 10210 Indonesia Phone : 62 21 5752006/09, 5751952/79 Fax. : 62 21 5752010 Website : www.ir-bri.com E-mail : ir@bri.co.id

Disclaimer: This report has been prepared by PT Bank Rakyat Indonesia (Persero) Tbk (Bank BRI) independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report. The information in this report has been obtained from sources which we deem reliable. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this report constitute our judgment as of this date and are subject to change without prior notice. We disclaim any responsibility or liability without prior notice of Bank BRI and/or their respective employees and/or agents whatsoever arising which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither Bank BRI and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions, negligent or

therwise, in this report and any inaccuracy herein or omission here from which might otherwise arise.