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Slide 1

Analyst Briefing

First Half and Second Quarter

2014 Results

Jakarta, 17 July 2014

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Slide 2

• Financial Results

• Appendix

Agenda

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Slide 3

1H14 Highlights

LDR

Average daily LDR was in declining trend.

CASA

CASA ratio stood at 44%, resulted from lower TD

NPAT

Normalized NPAT: Rp 1,753 bn

Reported NPAT : Rp 1,489 bn

The difference between the Normalized

NPAT vs Reported NPAT is due to the

application of the new OJK regulation on

Insurance Fee impacting ADMF’s fee

income recognition.

Loan

Rp 141 trillion

↑13% YoY

Total loans was Rp 141 trillion, increase of

13% from the previous year.

Asset Quality

NPL and CoC slightly rose from last quarter

driven by micro and smaller ticket SME.

NIM and Opex Growth (%)

Decline in NIM was due to increase in CoF, yet

compensated by lower opex growth. Opex growth

has been trending down in past three quarters.

CASA Ratio (%)

42 4426

4048

2008 2010 2013 1Q14 2Q14

% 3Q13 4Q13 1Q14 2Q14

NPL 2.2 1.9 1.9 2.1

CoC 2.7 2.3 2.5 3.0

7.15.6

2.82.7

1H13 1H14

9.98.4

◄ Risk Adj. NIM

◄ CoC

98.9

94.195.1

99

105.4

93

94.6

101.9104

102.5

2Q13 3Q13 4Q13 1Q14 2Q14

LDR Ave LDR

612

◄ NIM

◄ Y-y Opex Grwth

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Slide 4

Highlights of Balance Sheet

Rp billion 1H13 1H14 YoY 1Q14 2Q14 QoQ

Total Assets 158,103 185,433 17% 185,920 185,433 0%

Loans (gross) 123,935 140,647 13% 135,818 140,647 4%

Government Bonds 3,895 5,719 47% 5,513 5,719 4%

Total Deposits 118,741 136,663 15% 138,915 136,663 -2%

Current Account 15,631 19,500 25% 18,406 19,500 6%

Savings 25,991 29,320 13% 28,321 29,320 4%

Time Deposit 51,316 61,603 20% 65,159 61,603 -5%

Borrowings and LT. Funding 25,803 26,240 2% 27,029 26,240 -3%

Equity 29,234 31,558 8% 32,106 31,558 -2%

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Slide 5

Highlights of Income Statement

Rp billion 1H13 1H14 YoY 1Q14 2Q14 QoQ

Net Interest Income 6,683 6,744 1% 3,425 3,319 -3%

Non Interest Income 2,376 2,105 -11% 1,086 1,019 -6%

Operating Income 9,059 8,849 -2% 4,511 4,338 -4%

Cost of Credit 1,598 1,829 14% 827 1,001 21%

Risk Adjusted Op. Income 7,461 7,020 -6% 3,684 3,336 -9%

Operating Expenses 4,699 4,961 6% 2,489 2,472 -1%

Net Profit after taxes 1,985 1,489 -25% 875 614 -30%

Normalized NPAT 1,985 1,753 -12% 938 816 -13%

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Slide 6

Key Ratios

*) Loan to funding is defined as (Loans + Reserves with BI + Cash in Vault + HTM bonds) / (Third Party Deposits + net borrowing and LTF + net capital)

% 1H13 1H14 YoY 1Q14 2Q14 QoQ

Net Interest Margin 9.9 8.4 -1.5 8.6 8.1 -0.5

Cost of Credit 2.8 2.7 -0.0 2.5 3.0 0.5

Cost / Income 51.9 56.1 4.2 55.2 57.0 1.8

BOPO 75.7 69.7 -6.1 89.6 56.0 -33.6

ROAA 2.6 1.6 -1.0 1.9 1.3 -0.6

ROAE 14.3 9.8 -4.5 11.4 8.1 -3.3

Assets to Capital (x) 6.0 6.3 0.3 6.2 6.3 0.1

Stand Alone Loan to Funding * 91.9 91.6 -0.3 85.6 91.6 6.0

Consolidated Loan to Funding * 91.1 91.4 0.3 86.7 91.4 4.7

Regulatory LDR 105.4 98.9 -6.4 94.1 98.9 4.8

Stand Alone CAR 18.4 17.8 -0.6 18.4 17.8 -0.6

Consolidated CAR 18.7 17.7 -1.0 18.8 17.7 -1.0

NPL – Gross 2.4 2.1 -0.3 1.9 2.1 0.2

Loan Loss Coverage (LLP/Total Loans) 2.6 2.6 0.0 2.5 2.6 0.1

Coverage (LLP/NPL) – Mass Mkt 112.0 118.7 6.7 123.2 118.7 -4.5

Coverage (LLP/NPL) – Non Mass Mkt 119.4 146.2 26.7 151.8 146.2 -5.7

Untuk Anda, BisaSlide 7

A new OJK regulation on Insurance Fee impacting ADMF’s

fee income recognition

Background

Fee Income

Recognition

• On 31 December 2013, OJK issued new regulation, in the form of circular letter, No SE-

06/D.05/2013 regarding vehicle insurance, which took effect on March 1, 2014

• By this regulation, OJK :

• set a range of gross premium that an insurance company could charge to customers

• regulate the commission to be given to agents and the discount to customer, which are

based on the gross premium

• As such, third parties (including multifinance companies and banks) are prohibited to sell

insurance at the rate higher or lower than the premium rate set by the regulator.

• To certain extend, the new regulation would benefit Adira Insurance, due to regulated pricing

that would eliminate unhealthy price competition among general insurance companies

• Income generated from insurance would need to be amortized vis-a-vis booked upfront

previously, hence, pricing adjustment must be made to maintain economics of the loans.

• ADMF need to recognize the incomes from insurance premium discount and other loan related fee

over the loan tenor using the effective interest rate (EIR) method.

• There is a timing difference between the amount that is recognized under the EIR method and the

amount should the income recognized immediately (cash basis).

Untuk Anda, BisaSlide 8

A new OJK regulation on Insurance Fee impacting ADMF’s

fee income recognition (continued)

Financial

Impact

• Depending on the loan tenor, financial impact of the income recognition will vary. Assuming loan

with tenor of 3 years, under the EIR income fee will be recognized as follow:

• Year 1: 54%

• Year 2: 34%

• Year 3: 12%

• Throughout the years, the income would be normalized. For comparison, ideally if regulation had

not been introduced, Adira Finance could directly recognize the income immediately.

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Slide 9

IDR Cost of Funds (%), LDR (%)

9394.6

101.9104102.5

9.67.2

9.28.88.1 8.1

6.86.25.24.8

2Q13 3Q13 4Q13 1Q14 2Q14

Liquidity : Average LDR stood at 93%

◄ Daily Ave

LDR

◄ ADMF CoF

◄ IDR CASA,

TD CoF

IDR Yield (%), IDR Loans (Rp tn)

37%37%38%40%41%

63%63%62%60%59%

24.3

12.7

24.124.3 24.2 25

11.7 11.9 12.2 12.6

2Q13 3Q13 4Q13 1Q14 2Q14

127.7112.7 116.0 122.3

◄ Non Mass

Mkt +4w

Yield

◄ Mass mkt

loans yield

NIM and Risk Adj NIM (%)

6.8 7.0 6.8 6.1

2.8 2.7 2.3

5.1

3.02.5

2Q13 3Q13 4Q13 1Q14 2Q14

Risk Adj NIM CoC

9.7 9.7 9.1

• LDR stood at 98.9% in June 14 from last quarter of

94.1% due to release of expensive funding to ease

CoF, while the average LDR was 93%, in a

declining trend.

• Increase in ADMF CoF mainly driven by re-pricing

of matured bonds and matured loans.

• Yield in non mass market rose 100bps, while mass-

market yield was stagnant.

◄ Mass mkt

loans

◄ Non Mass Mkt

+4w loans

124.1

8.6 8.1

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Slide 10

ADMF - JF and Self Finance (Rp tn)

38%39%49%67%37%

61%51%33% 63%62%

49.148.648.345.641.3

2011 2012 2013 1Q14 2Q14

JF Self Finance

Capital

20%

Borrowi

ngs

39%

Bonds

41%

Liquidity : Continue the use of long term funding, accounted

for 85% of ADMF source of fund, saved LDR by 35.5%.

• The use of long term funding is a strategic option to

diversify funding and provide more steady liquidity

amidst the increasing rate environment, as well as

to address interest rate risk and asset-liability

duration mismatch.

• The use of long term funding reduced JF portion in

ADMF and capital.

ADMF Source of Fund

Capital

15%

Borrowi

ngs

42%

Bonds

43%

1H13 1H14

Rp 25.5tn Rp 26.7 tnLoan to Funding - Conso 1H14 (%)

28

126.9

98.9102.9

91.4

24

BDI Stand

Alone

BDI +

ADMF

Loans

LDR Consol Loan to

Funding

▲

ADMF

loans

LT. Fund

▼

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Slide 11

CASA Journey : CASA ratio stood at 44%, improved from

last quarter’s 42%.

Customer Deposits (Rp tn)

44%45%48%41%

26%

56%55%

52%

59%74%

2008 2011 2013 1H13 1H14

CASA TD

7588

111

Customers People & Infrastructure Product / Services

• Grow the customer base focusing on self

employed and affluent segment

• Leverage Adira and DSP – 4 Adira branches

piloting for cross selling and expand to all

Adira branches by end of year 2014

• Relocation of non performing ATMs and

branches

• Launched SMS Banking and in Q3 – 2014 will

launch Mobile Banking apps

• Introduced Customer Lifecycle Management to

increase the stickiness of customers

• Improve skills and increase +/- 1,000 number

of sales force to nearly 3,000 by end of 2014

from 2008.

• Financial Supply Chain to boost funding

• X-sell, new Bancassurance and CASA

products

• Speed up process, reduce queuing time

• Centralized complaint handling system

93110

High cost TD was released to ease CoF

25.9 26.3 26.2 26 26.8 26.9 26.5 27.9 28.8 32.1 29.4 29.1 28.3 29.3

61.665.2

61.361.357.654.35355.150.649.151.349.648.347.2

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

Jun-

14

SA (Rp tn) TD (Rp tn)CAGR

CASA 5yr

22%

Y-y CASA

17%

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Slide 12

NoA

191

482

655

804

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

CASA journey: Financial Supply Chain to boost funding

showed promising outlook.

FSC Funding Project (Rp bn)

1,059

932

693

572703

1,0541,024

1,478

1,146

668

656770

1,1581,138

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

O/S Ave. Bal• Financial Supply Chain (FSC) is a joint program between

Wholesale, SME and ADMF to optimize funding capacity

targeting principal/anchors down to distributors nationwide

• There are more than 24 anchors and 332 distributors

participating in this program.

• YTD average balance growth reached 30%, with CASA

portion of 72% as of June 14

30%

• CASA supply chain is one of Danamon’s funding programs

(SME, retail banking & DSP) specifically targeting

distributor, retailers, students, individual/employees

particularly to boost CASA in certain area.

• The major contributors for this project are SME and Retail

Banking.

• Both outstanding balance and NoA booked encouraging

YTD growth of 41% and 67%, respectively.

CASA VC Project

(Rp mn)

474

4,6214,850

6,512

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

O/S

41%

67%

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Slide 13

Overall loans grew by 13%, with shift of assset mix.

54% 53% 52% 52% 51%

7% 6% 7% 7% 7%

27% 27% 28% 28% 29%

12%13%

14% 14%14%

2Q13 3Q13 4Q13 1Q14 2Q14

Loan Composition Rp trillion

124129

135

Loan Growth

%

Rp billion 1H13 1H14 YoY

Wholesale 15,119 19,360 28%

SMEC* 33,370 40,229 21%

Retail 8,264 9,933 20%

Mass

Market67,182 71,124 6%

Total 123,935 140,647 13%

* SME and Commercial segments

136

• Loans rose 13%

underpinned by non-

mass market

segment that

expanded 22% to Rp

70 trillion.

• Mass market growth

remained modest at

6% to Rp 71 trillion,

reducing the share of

loan portfolio to 51%

vs last year’s 54%.

141

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Slide 14

SME Loans (Rp tn)

22.919.8

11.314.2

17.821

2010 2011 2012 2013 1H13 1H14

SME : Continuously monitor loan growth and asset quality

CAGR 23% 16%

10.9

4.32.5 2.1

19.8

13

4.72.9 2.2

22.9

Java, Bali,

Lampung, NTT,

NTB

Sumatra Kalimantan Sulawesi + E.Ind Total

1H13 1H14

SME Outstanding Loans by Region (Rp tn)

19%

9% 17%8%

16%

• The increase in NPL is primarily caused by smaller ticket SME/Emerging SME (below Rp 3bn).

• Special Mention increase in SME segment mainly caused by coal mining related sector.

BDI SME Special Mentioned Loans

597

464

239345353

2.62.21.11.71.8

2Q13 3Q13 4Q13 1Q14 2Q14

Rp bn %

BDI SME NPL

444

346290273250

1.91.61.41.31.3

2Q13 3Q13 4Q13 1Q14 2Q14

Rp bn %

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Slide 15

Trade Finance : 41% Expansion

Cash Loans (Rp tn)

11.9

8.5

9.8

6.9

4.43.4

2010 2011 2012 2013 1H13 1H14

CAGR 43%

Customers People & Infrastructure Product / Services / Coverage

• Robust growth driven by Corporate and

Commercial segment.

• Providing product-bundling solutions

through synergy with other banking

products

• Danamon is investing New Trade Finance

System (NTFS) to add more customer touch

point.

• 28 trade specialists

• Centralized Trade Operation, enabling

Danamon to process and serve efficiently

• Generic, Structured, Commodity Financing &

Syariah (e.g. L/C, trust receipt, guarantee,

outgoing collection service, outgoing collection

financing)

• Trade Service Point at Port (TSPP) in Jakarta,

Medan and Surabaya for Import Tax Payment

and B/L endorsement

• Trade representatives in 14 big cities in Java,

Sumatra, Kalimantan, Sulawesi.

Best Trade Finance bank

in Indonesia by Exporta

2011, 2012, 2013

Best Local Trade Bank

2009

by Euromoney

The Best Trade Bank

2007 - 2009

by FinanceAsia

The Best Trade Bank

In Indonesia 2006

by Asiamoney

The Best Trade Bank

2005 - 2012

Best Local Cash Management

Bank in Indonesia by Asiamoney

2009 - 2011

41%

Non - Cash Loans (Rp tn)

9.8

6.8

9.9

5.64.94.2

2010 2011 2012 2013 1H13 1H14

CAGR 34%

44%

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Slide 16

Commercial Loans and NPL

17.416.6

13.68.4 10 12.7

01.40.31.63.35.2

2010 2011 2012 2013 1H13 1H14

Rp bn NPL (%)

Corporate and Commercial Funding

(Rp tn)

31.632.3

22.217.9

20.324.3

2010 2011 2012 2013 1H13 1H14

Corporate and Commercial : Strong growth with managed

asset qualityCorporate Loans and NPL

19.418.815.1

10.7 12.5 12.7

0.92.7

1.13.83.43.9

2010 2011 2012 2013 1H13 1H14

Rp bn NPL (%)

CAGR 22%

CAGR 21%

28%

CAGR 26%28%

42%

Others

, 77%

Corp,

Comm.

, 23%

Others

, 74%

Corp.,

Comm.

, 26%

Jun-13 Jun-14

Corporate and Commercial Lending Portion

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Slide 17

Mass Market Loan Growth

Mass market segment rose modestly at 6% on the back of

softer growth of DSP and ADMF

Rp billion 1H13 1H14 YoY

Adira

Quantum 1,549 1,635 5%

Adira Finance 45,814 49,132 7%

DSP 19,818 20,357 3%

Total 67,182 71,124 6%

Mass Market Loan (to total loans)Rp trillion

14%15%15%15%16%

35%36%36%37%37%

1% 1% 1% 1% 1%

2Q13 3Q13 4Q13 1Q14 2Q14

67 69 70 70

• Contribution of

ADMF and DSP

reduced by 2%

each from last

year primarily due

to slower industry

growth and

competition,

respectively.

71

Note:

Adira Quantum : white goods financing

Adira Finance : auto financing

DSP : micro lending

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Slide 18

ADMF : 1H14 New Financing grew by 9% to Rp 16.8 tn

Note: Including JF portion.

New Financing (Rp tn)

15.516.8

33.732.432.6

2011 2012 2013 1H13 1H14

9%

2W New Financing (Rp tn)

8.69.8

1919.420.4

2011 2012 2013 1H13 1H14

13%

4W New Financing (Rp tn)

6.8 7.1

14.713.112.2

2011 2012 2013 1H13 1H14

4%

2W Sales and ADMF Mkt Share

8,0447,142 7,771

4,2163,940

11.710.9

15.8 15.7

12.6

2011 2012 2013 1H13 1H14

◄ Industry

unit sold

(000)

◄ ADMF Mkt

Shr (%)

4W Sales and ADMF Mkt Share

894 1,116 1,230

642602

4.84.96.6 5.7 5.4

2011 2012 2013 1H13 1H14

◄ Industry

unit sold

(000)

◄ ADMF Mkt

Shr (%)

Untuk Anda, Bisa

Slide 19

ADMF : Repo assets, loss on repo assets and NCL has

been manageable

Repo Assets as % of Receivables (%)

0.020.02

0.04

0.02

0.03

0.04

0.40.40.400.460.470.53

2010 2011 2012 2013 1H13 1H14

>180 days All stock

Loss on Repo Assets - Average (%)

24.624 2326 27 27

2010 2011 2012 2013 1H13 1H14

NCL ADMF (%) - A sustained performance

3.53.53.53.83.73.83.93.73.83.94.244.24.1

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

• Since end of 2013, NCL was at a stable level with the

company’s prudent and an end-to-end approach risk

management.

NCL: [Recovery of write - off] - [Loss on Repossession] - [write - off]

• % Repo / ENR was

maintained at 0.4%

• Old Inventory

(>180 days) stayed

at 0.02%

• LOR Rate

relatively showed

manageable trend

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Slide 20

8.94.6 6.3

19.7

8.95.0 6.4

20.3

Jakarta &

Java

East

Indonesia

Sumatera Total

1H13 1H14

SEMM : Monitoring asset quality is paramount amidst

challenging growth outlook.

• Java growth for DSP remains a challenge.

• Agri business grow nicely, while asset quality remain intact and funding effort through micro branch networks show some progress.

1.7 1.8

1H13 1H14

5%

1.7 2.0

1H13 1H14

20%0%

10% 2%

3%

Customers People & Infrastructure Asset Quality Management

• Boost upper tier micro to reach Rp 1.3tn from

Rp 678bn in 1H2014

• Referral program through DSP prime

customers (3,000 referrers)

• Implementation of CPA (credit process

application) in all branches.

• Direct reporting of credit officers to Risk in

hub & spoke branches.

• Mobile Collection.

• Implement Hub and Spoke models in selected Java

and Jakarta units.

• To date 137 units have been merged,while 122

Pasar units in Java and Jakarta area will be

converted into functional office.

• Optimize capacity (10% reduction of non

performer).

• Competency building (increase knowledge scoring

target).

• To further manage asset quality, several new

initiatives are undertaken amongst others:

– Changing KPI for Account Officer

and Teller

– Assigning dedicated collection team

for specific industry

Loans by Region (Rp tn) Solusi Modal (Rp tn) Agri (Rp tn) Funding (Rp tn)

1.2 1.3

1H13 1H14

7%

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Slide 21

Adira Insurance : Strong growth of GWP and number of

active policy

Gross Written Premium (Rp bn)

923

1,792

8221,085

1,4741,605

2010 2011 2012 2013 1H13 1H14

No of Active Policy (000)

8,1637,6236,562

4,680

5,660 5,799

2010 2011 2012 2013 1H13 1H14

% 2010 2011 2012 2013 1H13 1H14

RBC 401 337 234 205 262 185

CIR 31 32 35 40 40 39

RoE 36 38 36 29 28 33

RoA 15 14 11 9 8 9

• GWP in 1H14 was Rp923 bn or increased by 12%YoY.

• No. of active policies 1H14 was 8,1 mn; rose 24% from

last year

• Cost to Income ratio improved to 39%

• RoE increased strongly to 33% from 28% a year ago,

while RoA also improved to 9%

CAGR 18%CAGR 18%

Note: Lower RBC and RoA from 2011 to 2012 due to the implementation IFRS Insurance

12%

24%

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Slide 22

1H14 - GWP by Source of Business

Others

10%

Financial

Indust.

81%

Agent,

Dealer,

Biz

Alliance

7%

Strategic

Ind

2%

Adira Insurance : Leading Indicators

1H14 - GWP by Class of Business

Auto

68%

Engi

3%

Others

19%

HE

2%

Property

8%

Rp bn

MV 624 (68%)

Non MV 298 (32%)Rp 923 bn

Rp bn

Group 623 (67%)

Non Grp 300 (33%)Rp 923 bn

Customers People & Infrastructure Products / Services / Coverages

• Call center serves 24 hour and during 2014

receive 7 thousands number of calls per

month

• Serving customers by 710 certified agents as

of Jun 2014

• Supported by 1,162 employees in 53 outlets

by end of June 2014

• Health business supported by 968 Hospitals &

Clinics

• Health insurance includes hospitalization,

outpatient, dental & optical care.

• Trade Credit Insurance which protect the

Account Receivable from Buyer/Distributor’s

bad debt.

• In Q1 2014 launched Typhus Insurance (Micro

Insurance)

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Slide 23

Bancassurance excluding one time

fee (Rp bn)

96

171

96104

140 129

2010 2011 2012 2013 1H13 1H14

Cash Management (Rp bn)

135

253

120

192216 228

2010 2011 2012 2013 1H13 1H14

Fee Income : General Insurance dominated fee income,

rose 18%.

Rp 788 bn

Distribution of Fee Income

1H14 (%)

Gen ins,

49%

Cash Mgt,

17%

Bancas.

Excl one

time fees,

12%

Others,

22%

General Insurance (Rp bn)

383

687

323

504

618 664

2010 2011 2012 2013 1H13 1H14

Note : General insurance including investment fees

CAGR 10%

CAGR 18%

CAGR 11%

18% 13%

1%

Untuk Anda, Bisa

Slide 24

Asset Quality :BDI Loans are dominated by trading industry.

Overall NPL still manageable.

BDI NPL (%)

2.61.8

3.11.6

2.71.2

6.8

2.3 1.70.7 1.0 1.3

0.5

9.5

Trading Household Processing Real Est. Agri Construct. Mining

Jun-13 Jun-14

BDI Loans by Industry (% of total loans)

32.1

2314.7

7 4.7 1.8 2.1

35.1

2015.3

6.8 4.6 1.9 1.8

Trading Household Processing Real Est. Agri Construct. Mining

Jun-13 Jun-14

Industry Loans by Industry (% of total loans)

29

14

5

24

8 85 6

29

14

5

25

9 85 5

Trading Mortgage Auto Processing R.Estate,

Biz

Agri Construction Mining

Apr-13 Apr-14

• Trading loans rose driven by Commercial and

Corporate segment

Industry NPL (%)

2.7 2.41

2.1 1.6 1.9

3.9

1

2.8 2.41.1

2.0 2.51.6

4.4

1.9

Trading Mortgage Auto Processing R.Estate, Biz Agri Construction Mining

Apr-13 Apr-14

• Increase in NPL ratio for mining industry is

partly caused by worsening performance of

some coal-related borrowers

Untuk Anda, Bisa

Slide 25

Operating expense has been trending down for the past

three quarters. Y-y growth was managed at 6%.

4,603 4,743 4,659 4,511 4,338

2,391 2,507 2,489 2,489 2,472

2Q13 3Q13 4Q13 1Q14 2Q14

Operating Income Operating Expense

Operating Income and ExpenseRp billion

57.055.253.452.852.0

◄ Cost to

Income Ratio

(%)

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Slide 26

Cost of Credit was 2.7% in 1H14 vs 2.8% last year

3.02.52.3

2.72.8

86%89%

81%95%

86%

14%

11%

19%

5%14%

2Q13 3Q13 4Q13 1Q14 2Q14

Mass Market Non Mass Market

Cost of Credit / Avg. Loans

(%)

Cost of Credit

(Rp billion)

828 835751 827

1,001

Untuk Anda, Bisa

Slide 27

NPL remained low

66% 72% 74% 74% 73%

4% 4% 5% 4%5%15% 18%

15% 15%15%

15% 6% 7% 7%7%

2Q13 3Q13 4Q13 1Q14 2Q14

Wholesale

SM E &

Commercial

Retail

M ass market

87.5% 90.1% 88.6% 88.4%88.4%

10.1% 9.4% 9.5% 9.5%8.0%2.2% 1.9% 2.1%2.4% 1.9%

2Q13 3Q13 4Q13 1Q14 2Q14

Non-

Performing

Special

Mention

Current

Loan’s Collectibility% of Outstanding loans

Non-Performing Loans by SegmentRp billion

2,935 2,799 2,5502,5352,909

Untuk Anda, Bisa

Slide 28

Majority of special mention loans were within 30 days

90%92%91%92% 87%

3%

3%3%3% 3%3% 4%

2%

5% 6%2% 3%

3%

2% 3%

2Q13 3Q13 4Q13 1Q14 2Q14

Wholesale

SME & Commercial

Retail

Mass market

85.2% 84.6% 85.0% 83.7% 83.9%

9.70% 9.90% 9.60% 10.70% 10.5%

5.2% 5.5% 5.4% 5.7% 5.6%

2Q13 3Q13 4Q13 1Q14 2Q14

61 - 90 Days

31 - 60 Days

1 - 30 Days

Special mention loans by Aging% of Special Mention Loans

Special Mention Loans by SegmentRp billion

12,54612,139

10,87712,882 13,432

Untuk Anda, Bisa

Slide 29

Ample capitalization for growth

RWA / Total Assets Capital Adequacy Ratio (%)

% 2Q13 3Q13 4Q13 1Q14 2Q14

CAR w/ Credit

Risk23.5 22.8 22.0 23.5 22.1

Market Risk

Charge0.1 0.1 0.0 0.0 0.1

Operational

Risk Charge4.7 4.4 4.1 4.7 4.3

CAR

Consolidated18.7 18.3 17.9 18.8 17.7

RWA BDI Only RWA Consolidated

18.2 17.817.3

18.3

17.2

0.50.5

0.6

0.5

0.5

2Q13 3Q13 4Q13 1Q14 2Q14

Tier 1 Capital Tier 2 Capital

Tier 1 and Tier 2 capital ratio (%) - Consol

72%68%67%68%72%

2Q13 3Q13 4Q13 1Q14 2Q14

89%86%84%86%90%

2Q13 3Q13 4Q13 1Q14 2Q14

RWA Other Assets

18.718.3

18.818.7 18.3 17.9 17.7

18.4 18.1 17.818.417.5

2Q13 3Q13 4Q13 1Q14 2Q14

Consolidated Stand Alone

17.9

18.8

17.7

Untuk Anda, Bisa

Slide 30

• Financial Results

• Appendix

Agenda

Untuk Anda, Bisa

Slide 31

Danamon Rating

Untuk Anda, Bisa

Slide 32

Reconciliation with Newsletter

a b c d e f g h i

Net

Interest

Income

Net Under-

writing

Income

Net Sharia

Interest

Income

Other

Operating

Income

Other

Operating

Expenses

Non

Operating

Income

Non

Operating

Loss

Income

before

Tax Taxes

Minority

Interest Income after Minority Interest

6,796 254 62 2,891 (7,931) - (34) 2,037 (503) (46) 1,489

a+c b+d e f+g h i

Net

Interest

Income

Non-

Interest

Income

Operating

Income

Operating

Expenses

Pre-

Provision

Operating

Profit Cost of Credit

Non

Operating

Income/

(Loss) Taxes

Minority

Interest

Net Profit

after Tax

and

Minority

Interest Remark

6,858 3,144 10,003 (7,931) 2,071 - (34) (503) (46) 1,489

(115) (115) 115 - - LPS Deposit Insurance

(11) (11) (11) 11 - Provision for ADMF acquisition cost

(82) (82) (82) 82 - Write off on amortization cost

(100) (100) 100 - - ADMF indirect acquisition cost

(426) (426) 426 - - Decrease in fair value of f inancial assets (MTM)

(2) (2) 2 - - Losses from sale of f inancial assets (marketable securities)

(238) (238) 238 - - - Losses from spot and derivative transaction (realised)

- 1,921 1,921 (1,921) - Impairment losses on f inancial assets

(170) (170) 170 - - Fees/commissions and administrative expenses

(10) (10) (1) (11) 11 - Others

6,744 2,105 8,849 (4,961) 3,888 (1,829) (23) (503) (46) 1,489

Newsletter

Analyst Briefing Presentation

Untuk Anda, Bisa

Slide 33

Inflation benign, trade bounced back to a small surplus

Inflation

• June’s inflation remained

well anchored at

0.43%mom (6.7%yoy) as

better food supply reduce

pressure on food prices

• There could be some

impact of the electricity tariff

increase that will start to

apply in July. But based on

the revised budget deficit

(fiscal deficit approved at

2.4% of GDP), fuel price

hike is not on the table this

year, thus we expect the YE

inflation to reach 5.3%yoy

Trade

• Trade bounced back to a

small surplus of USD 70mn

due to a sharp drop on

imports. We expect the

current account deficit to

reach 2.9% of GDP this

year.

• Consumption indicators

remained relatively stable.

Inflation

%yoyTrade

-50

-35

-20

-5

10

25

40

55

70

85

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0102030405060708091011120102030405060708091011121 2 3 4 5 6 7 8 9 1011121 2 3 4 5

2011 2012 2013 2014

Trade Balance (lhs)

Export (fob)

Import (cif)

USD bn %YoY

Car and Motorcycle sales

%yoy

Retail Sales

%yoy

Untuk Anda, Bisa

Slide 34

BI Rate Maintained, Rupiah remained volatile

Interest Rate%

Foreign Exchange ReservesUSDmn

Source: CEIC, Bloomberg

Credit Growth

%BI Rate

• BI kept BI rate at 7.5% in

June as economic data

relatively stable.

• The lending facility rate and

the deposit facility rate were

also kept at 7.5% and

5.75%.

• Credit growth declined

further to 18.5% yoy in Apr-

14.

• Inflation target range

maintained at 3.5-

5.5%yoy(2014) and 3.5%

(2015)

• Forex reserve in June rose

slightly at USD107.7 bn .

Rupiah & Bond Yield

3.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

Ma

r-11

Ap

r-11

Ma

y-1

1J

un

-11

Ju

l-11

Au

g-1

1S

ep

-11

Oc

t-11

No

v-1

1D

ec

-11

Ja

n-1

2F

eb

-12

Ma

r-1

2A

pr-

12

Ma

y-1

2J

un

-12

Ju

l-1

2A

ug

-12

Se

p-1

2O

ct-

12

No

v-1

2D

ec

-12

Ja

n-1

3F

eb

-13

Ma

r-1

3A

pr-

13

Ma

y-1

3J

un

-13

Ju

l-1

3A

ug

-13

Se

p-1

3O

ct-

13

No

v-1

3D

ec

-13

Ja

n-1

4F

eb

-14

Ma

r-1

4A

pr-

14

Ma

y-1

4J

un

-14

BI Rate SBI 9m

PUAB O/N TD 6-8m

%pa

FASBI O/N

Repo rate

Rupiah & Bond Yield

• Rupiah strengthen to

Rp11,555/USD (after

reaching as weak as

Rp12,103/USD) as positive

perception over the national

election continued

• Possible swing in the rupiah

awaiting for the real count

result

8000

8500

9000

9500

10000

10500

11000

11500

12000

12500

4

5

6

7

8

9

10

% Rp/$

IDR - RHS

10 year Yield

Untuk Anda, Bisa

Slide 35

Selected Economics Indicators

Indonesia 2010 2011 2012 2013 2014E 2015E

National Account

Real GDP (% YoY) 6.2 6.5 6.2 5.8 5.3 5.8

Domestic demand ex. Inventory (% y-o-y) 5.3 5.7 6.2 5.1 5.4 6.0

Real Consumption: Private (% y-o-y) 4.7 4.7 5.3 5.3 5.4 5.2

Real Gross Fixed Capital Formation (% y-o-y) 8.5 8.8 9.8 4.7 4.0 8.2

GDP (US$ bn) – nominal 709 847 879 871 894 1,062

GDP per Capita (US$) – nominal 2,983 3,514 3,596 3,490 3,526 4,135

Open Unemployment Rate (%) 7.1 6.6 6.3 6.3 6.1 6.1

External Sector

Exports, fob (% YoY, US$ bn) 32.1 26.9 -6.3 -2.6 1.7 6.0

Imports, fob (% YoY, US$ bn) 43.7 30.8 8.3 -1.4 3.0 4.2

Central government debt (% of GDP) 26.1 24.6 23.1 22.0 21.2 22.2

International Reserves – IRFCL (US$ bn) 96.2 110.1 112.9 99.4 100.8 103.5

Reserve cover (Imports and external debt) 7.1 6.3 6.1 5.4 5.6 5.8

Currency / US$ (Year-end) 8,991 9,068 9,670 12,189 11,600 10,754

Other

BI Policy Rate (% year end) 6.50 6.00 5.75 7.50 7.50 7.75

Consumer prices (% year end) 6.96 3.79 4.30 8.38 5.26 6.13

Fiscal balance (% of GDP; FY) -0.73 -1.16 -1.77 -2.24 -2.30 -2.00

Source: BPS, Bank Indonesia, Danamon Estimates

Untuk Anda, Bisa

Slide 36

Thank You

Investor Relations

PT Bank Danamon Indonesia, TbkMenara Bank Danamon, 6th Floor

Jl. Prof. Dr. Satrio Kav. E4 No.6

Mega Kuningan, Jakarta 12950

Phone: +62 21 5799 1001-03

Fax: +62 21 5799 1445

Email: investor.relation@danamon.co.id

IR Contacts:

Kienata – kienata.lie@danamon.co.id

Indah Hermawan – indah.hermawan@danamon.co.id

Ridy Sudarma – ridy.sudarma@danamon.co.id

Noorvia Kesuma – noorvia.kesuma@danamon.co.id

Disclaimer:This report has been prepared by PT Bank Danamon Indonesia Tbk 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 estimates 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 (expressed or implied) of PT Bank Danamon Indonesia Tbk and/or its affiliated companies and/or their respective employees and/or agents whatsoever and howsoever 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 PT Bank DanamonIndonesia Tbk and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions or mis-statements, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise arise.