Corporate Presentation

Unadited Financial Report 2012 Analyst Meeting PT Bank Pembangunan Daerah Jawa Timur Tbk Ritz Carlton Hotel-Jakarta, 1 August 2012

Table of Content
page Macro environment 4-8 Macro economic environment 5 Banking sector performance 6 Banking sector performance-East Java 7 Economic prospect of East Java toward Bank Jatim 8 Financial Review Balance Sheet Summary Income Statement Summary Financial Ratio Earning Asset Composition Loan Breakdown Top Ten Loan by Industry Concentration 9-15 10 11 12 13 14 15 page 16-31 17 18 19 20

Performance Overview Bank Jatim Key Financial Highlight Lending Growth Multipurpose Loan Strengthen Lending Position Multipurpose Loan Strengthen Lending Position (East Java) Third Party Fund Raising 21 Correlation between NIM, CoF and Productive Assets 22 Operational Networking 23 Human Resources 24 Risk Profile 25 Good Corporate Governance 26-27 Award & Achievement 28 Growth Strategy for Enhanced Business 29 IT Development Strategy 30 Strategy 31 Corporate Profile Share Ownership Board of Commissioner Board of Director Share Performance

32-37 33 34 35 36

Agenda

Macro economic Review Financial Overview

Performance Overview Corporate Profile

3

Macro economic Review

Macro Economic Review

Inflation pressure under control (national) CPI inflation in May 2012 was 0.07% (mtm) or on an annual basis was recorded at 4.45% (yoy). The contained inflation was in line with the movement of core inflation, which remained low (4.14%, yoy), attributable to declining global commodity prices and contained domestic demand. Optimized growth at 6,3% Indonesia economic growth quarter III-2012 predicted lower grow at 6,3% and within the range 6,1%-6,5% on 2012 and 6,3%-6,7% on 2013.
Source: Bank Indonesia

BI Rate predicted at 5.75% Exchange rate level still consistent with inflation estimation toward with still low and controlled within the range which defined, at 4,5% + 1% on 2012 and 2013. Rp/USD exchange rate is on Rp9.200-Rp9400

Source: Bloomberg

Banking Sector Performance

May 2012, loans has growth about 26,59% compared with May 2011 which reach IDR 1.899 trillion and Third Party Funds also record growth about 21,36 % compared with May 2011 which reach IDR2.826 trillion. Besides, Working Capital Loan at the May 2012 has growth about 27,86% compared with May 2011 which reach IDR 707 trillion and Investment Loan at the May 2012 has growth about 27,67% compared with May 2011 which reach IDR 300 trillion.
Deskripsi* Loan Third Party Fund LDR ROA Mei-11 1.899 2.397 78,45% 2,97% Mei-12 2.404 2.909 81,61% 3,05% YoY 26,59 21,36

4.03% 2.69% 2.64%

CAR

17,41%

17,87%

East Java
Description* Loan
Source: Bank Indonesia

Dec-11 222,4 252,3

May-12 237,3 260,5

% 6,23 3,15
6

Third Fund Party

The Economic Prospect of East Java Towards Bank Jatim

We have strong macroeconomic backdrop in East Java that provides us economic opportunity to grow our bank in size and quality.
10.0% 9.0% 8.0%

9.3%
6.4% 6.1% 5.7%

Second-largest contributor towards Indonesian economy. Approximately 15% of the national GDP comes from East Java;
6.7% 6.1% 6.1%

7.0% 6.0% 5.0% 4.0%

3.0% 2.0% 1.0% 0.0%

5.9% 5.8% 5.2%

6.4% 6.2%

5.0% 4.7% 4.3%

In 2011, East Javas economy grew at 7.2%, faster than national economic growth at 6.5%. In 2012, East Java estimates will grow 7.5 %;
As of 4th quarter 2011, placed as second largest GDP in Java Island , accounting for 14.7% of Java islands economy;

2006

2007

2008

2009

2010

West Java & Banten

E ast Java

National

The relatively high loans-to-deposits ratio, and low levels of non-performing loans. The inflation rate calendar year (JanuaryMay 2012) in East Java reached 0.99 percent, while the inflation rate year on year (in May 2011 to May 2012) for 4.58 percent of East Java.

Source: Indonesia Statistic Bureau

The Economic Prospect of East Java Towards Bank Jatim

Economic sector

Growth March 2011 March 2012

Contribution for east Java (March 2011- March 2012

Transportation & Communication

Construction Trade, Hotel, & Restaurants Agriculture

13,01%
10,18% 9,69% 2,25%

0,90 %
0,30 % 2,99 % 0,39 %

For economic sector that most growth in March 2011-March 2012 are transportation and communication by 13, 01 percent followed by 10,18 percent of Construction sector, Trade, Hotel and Restaurant of 9,69 percent and agriculture of 2,25 percent.

The contribution of the Trade, Hotel and Restaurant on total economic growth in East Java to achieve the highest level of 2.99 percent, followed by 1.55 per cent of Manufacturing sector, Transportation and Communication sector 0.90 percent, 0.39 percent of the agricultural sector, financial sector , renting and business services 0.41 percent, the services sector 0.43 percent and 0.30 percent of the construction sector. While mining and quarrying, and electricity, gas and water supply growth contributed 0.10 percent and 0.11 percent
Source: Indonesia Statistic Bureau

Financial Overview

Balance Sheet Summary

(In billion rupiah)

Jun-11 Total Assets Secondary Reserve-Gross SBI & Other Placement in BI Placement with other Bank Loans Impairment on financial assets Third Party Funds Current Account Saving Account Time Deposit

Sep-11

Des-11

Mar-12

Jun-12

YoY 23,70% 33,56% 16,30% 46,76% 21,54% 23,64% 21,01% 3,69% 41,49% 35,68%

24.442 7.386
3.202 4.184

25.751 7.697
3.768 3.929

24.847 6.097
2.633 3.463

29.340 10.342
6.685 3.657

30.234 9.864
3.723 6.141

14.880
(230)

15.850
(203)

16.135
(101)

16.562
(150)

18.085
(284)

20.744
10.342 4.542 5.860

21.507
10.314 5.128 6.066

19.935
8.177 7.081 4.677

24.203
12.143 5.906 6.154

25.101
10.724 6.426 7.951

Equity Tier 1 Tier 2 2.417 154 2.499 169 2.604 171 3.354 160 3374 171 39,58% 11,33%

10

Income Statement Summary

(in billion Rupiah)
2Q11 3Q11 4Q11 1Q12 2Q12

Interest Income Interest Expense

639 (196)

719 (210)

718 (209)

666 (197)

701 (221)

Net Interest Income

Non-Interest Operating Income Non-Interest Operating Expense Impairment Provision Operation Expenditure Net Non Interest Income Pre-Provision Operating Profit Operating Profit Non Operational Income Pre-Tax Profit Income Tax Net Profit

443
104 (300) (25) (275) (196) 273 247 3 250 (62) 187

510
15 (176) 31 (207) (161) 318 349 2 351 (88) 263

509
87 (337) (23) (313) (250) 282 259 2 261 (95) 166

469
73 (255) (60) (195) (182) 347 287 4 291 (73) 218

480
100 (378) (156) (222) (278) 358 202 (1) 201 (50) 151

11

Financial Ratio

RATIO
ROA ROE NIM CAR

Jun-11
5,05% 33,30% 7,77% 16,64%

Sept-11
5,29% 36,25% 7,94% 15,99%

Dec-11
4,97% 33,65% 7,95% 16,53%

Mar-12
4,26% 27,18% 6,89% 21,47%

Jun-12
3,43% 22,44% 6,63% 20,51%

LDR
NPL Gross NPL Nett BOPO

71,33%
0,88% 0,35% 59,47%

73,22%
1,18% 0,48% 57,09%

80,11%
0,97% 0,55% 60,02%

67,90%
1,36% 0,75% 61,15%

71,52%
2,55% 1,27% 68,23%

12

Earning Asset Composition

13

Loan Breakdown
Loan
Multipurpose* KUR Keppres Standby Loan Syndicated Loan Jun-11 8,65 1,36 0,37 0,71 0,85 Dec-11 8,87 1,71 0,52 0,62 1,00 Jun-12 9,48 1,87 0,69 0,82 1,00 YoY 9,60% 37,50% 86,49% 15,49% 17,65%

14

Top Ten Loan by Industry Concentration

No
1 2 House hold Wholesale and retail trade

Sector

Jun-11 38.98% 26.00%

Dec-12 47.04% 19.50%

Jun-12 50.96% 16.82%

3
4 5 6 7 8

Construction
Farming, hunting and Forestry E lectric, Gas and Water Processing Industry Social services, social, cultural, entertainment and other personal Real estate, rental business and company service

10.01%
5.73% 3.96% 2.30% 3.26% 2.48%

8.85%
5.91% 4.40% 2.50% 2.80% 2.01%

9.60%
5.76% 4.08% 2.53% 2.22% 1.85%

9
10

Education Service
Financial intermediary Others

1.67%
0.53% 5.08%

1.54%
0.75% 4.70% 100%

1.35%
1.25% 3.58% 100%

TOTAL

100%

15

Performance Overview of Bank Jatim

16

Bank Jatim Key Financial Highlights

Position Total Asset Outstanding Loans Third Party Funds Net Interest Income Non Interest Income Jun-11
24,44 14,88 20,74 0.91 0.15 0.58 0.43

Jun-12
30,23 18,09 25,10 0.95 0.17 0.49 0.38

YoY
23.70% 21.54% 21.01% 4.40% 13.33% -15.52% -11.63%

Total Asset increased by 23,69% YoY to 30,23 trillion; Outstanding Loans grew by 21,57% YoY to 18,09 trillion; Third Party Fund increased by 21,12% YoY to 25,29 trillion; CAR reached 20,51%

Pre-Tax Profit Net Profit

Ratio ROA ROE NIM LDR NPL Gross NPL Net CAR

Jun-11 5.05% 33.30% 7.77% 71.33% 0.88% 0.35% 16.64%

Jun-12 3.43% 22.44% 6.63% 71.52% 2.55% 1.27% 20.51%

Net profit = 75%>< Pre tax profit (assumption)

17

Lending Growth

Total outstanding loan increased by 21,57% YoY to 18,09 trillion. It supported by consumer loan which contributed 51,69% of overall outstanding loan. Consumer growth increase significantly on 4th Quarter 2011 to 2nd quarter 2012 with range 21,59%;

Loans Working Capital Investment Consumer Outstanding Total

Jun-11 6,20 2,82 5,86 14,88

Dec-11 5,83 2,61 7,69 16,13

Jun-12 6,41 2,33 9,35 18,09

YoY
3,39% -17,38% 59,56% 21,57%

18

Lending Growth

LENDING GROWTH EAST JAVA

(In Trillion Rupiah)

Loans
Working Capital Investment Consumer Outstanding Total

Dec-11 128,3 30,1 63,8 222,4

May-12 135,1 33,7 68,4 237,3

% Dec-11 s/d May-12

5,03%
10,68% 6,72% 6,28%

For Lending Growth in East Java, the working capital credit has the largest proportion of Rp 135.1 trillion compared to Rp 237.3 trillion in total loans. As for the growth from December 2011 to May 2012 which has the highest growth is investment loan which grew 10.68% from December 2011 to May 2012. In East Java Total loans grew 6.23% from December 2011 to May 2012

19

Multipurpose Loan Strengthen Lending Position

Out of 471,814 civil servants in East Java, around 52,88 % has been served by Bank Jatim in June 2012 East Java civil servants are increasing at 14 % in 2011. January-June 2012 increasing 4 % and Q3 will be new civil servant recruitment. Borrowers are civil servant whose salary is paid via their payroll Bank Jatim account.

Multipurpose loan Desember 2011 are 247,024 increase to 249,508 in June 2012 .

2010
Total Kreedit (trilyun) Plafon j(uta) Rekening PNS

2011 8,87 35.9 454.235

June 2012 9,480 40.9 471.814

8,28 32.5 398.601

20

Third Party Fund Raising

Third Party Fund

Third Party Fund increased by 21,24% to Rp25,29 trillion (YoY) with Time Deposit and Saving Account contribution. Time Deposit which contributes 31,95% of Third Party Fund total increased progressively 28,87% (QoQ) and 36,03% (YoY) Saving Account provides 25,62% of Third Party Fund total increased progressively 8,91% (QoQ) and 41,79% (YoY) CASA Ratio 2nd Quarter reach 68,05% (above banking industry )
Third Party Fund

21

Correlation between NIM, CoF and Productive Assets

Cost of Fund decrease shows that Bank Jatim has low cost of funding Net Interest Margin decrease because of lending rate has slightly decrease for market lending strategy The result Productive increase by 18,38% Assets

In billion Rupiah

Bank Jatim NIM reach above National Average NIM that 5,53% on May 2012

22

Operational Networking

CATEGORY Conventional Branch Office

Dec-11 40

Jun-12 40

BUSINESS PLAN 2012 0

Conventional Sub Branch Office

Sharia Branch Office Sharia Sub Branch Office Cash Office Sharia Office Channeling Payment Point Mobile Cash/Counter ATM Mobile Cash Cash Deposit Machine

64
1 3 164 47 115 57 4 1

64
1 3 167 47 124 57 6 1

25
0 0 13 0 29 9 2 0

ATM*

262

274

115

Until June 2012, Bank Jatim ATM was join with ATM Bersama networking about 40.837 terminal, ATM Prima Networking about 39.216 terminal and could be use in transaction wit EDC machine in merchant with Prima Debit logo.

23

Human Resources
Position BoC BoD Management 1 Management 2 Management 3 Staff Total Non Permanent Total Mar-11 4 4 12 141 443 1441 2045 Jun-11 4 5 8 135 438 1450 2040 Sept-11 4 5 14 145 483 1385 2036 Dec-11 4 5 14 155 478 1362 2018 Mar-12 4 5 13 167 556 1281 2026 Jun-12 4 5 14 186 530 1260 1999

71+1115
3231

206+1229
3475

244+1349
3629

370+1557
3945

331+1684
4041

424+1766
4189

Description

Management 1 Management 2 Management 3

Non Permanent

: : : :

Head of Division Branch Manager, Sub Division Leader, Sub Operational Manager, Sub Branch Manager, Relationship Manager, Senior Analyst Assistant Relationship Manager, Supervisor and Cash Office Manager Contractual Employee, Employee Candidate and Outsourcing Employee

24

Risk Profile

Risk Type

Jun-11

Sept-11

Dec-11

Mar-12

Jun-12

Loan

Moderat

Moderat

Low

Low

LowMod

Loan Risk
Compliance Risk

Market Risk

Market

Low

Low

Lowmod

Low

Low

Liquidity

Low

Low

Low

Low

Low

Reputation Risk

Risk Profile

Liquidity Risk

Operational

Moderat

Moderat

Lowmod

Lowmod

Lowmod

Law

Low

Low

Low

Lowmod

Lowmod

Strategic Risk Law Risk

Operational Risk

Reputation

Moderat

Moderat

Low

Lowmod

Lowmod

Strategic

Low

Low

Lowmod

Lowmod

Lowmod

Compliance

Low

Low

Low

Low

Low

25

Good Corporate Governance

GOOD CORPORATE GOVERNANCE IMPLEMENTATION

ACCOUNTABILITY

TRANSPARENCY

RESPONSIBILITY

INDEPENDENCY

FAIRNESS

POLICY CODE OF CONDUCT SELF ASSESMENT

26

Good Corporate Governance

SELF ASSESMENT GOOD CORPORATE GOVERNANCE IMPLEMENTATION JUNE 2012

ASSESMENT OF ASPECT
BoC task and duty implementation BoD task and duty implementation Committe task completion and implementation Conflict of interest prevention Bank Compliance Function Implementation Internal Audit Function Implementation External Audit Function Implementation Risk Management Function Implementation including Internal Control System Prudential Principle in providing to related party and to big fund Financial and non financial condition transparency, GCG Report Implementation and Internal Report

SCORE
1.175 1.175 1.075 2.700 1.225 1.950 0.700 2.235 1.725 2.250

WEIGHT
10% 20% 10% 10% 5% 5% 5% 7.5% 7.5% 15%

SXW
0.118 0.235 0.108 0.270 0.061 0.098 0.035 0.174 0.129 0.338

Bank Strategic Plan

2.250

5%

0.113

GCG COMPOSITE POINT

100% RATING

1.679 2
27

Awards & Achievement

Awards & Achievements

Annual Report Award 2010 Committee State-owned Company with Bapepam, Ditjen Pajak, Bursa Efek Indonesia, Ikatan Akuntansi Indonesia and Corporate Governance National Committee) 1st ranked Company Category SOE/ROE Financial Non Listed Infobank Award 2011 Excellent Predicated on Bank category with asset 1 Trillion to 10 Trillion for 10 consecutive years

Persatuan Wartawan Indonesia East Java Branch Trophy and Charter Award from Persatuan Wartawan Indonesia of East Java Branch to Bank Jatim of Financial Performance Achievement. Investor Magazine 2011 & 2012 Best Regional Champion Bank with asset above Rp10 trillion

Bisnis Indonesia Daily Newspaper BPD Jatim Special RecognItion for CEO In Developing Corporate Culture PT BPD Jatim Special Recognition for CEO In Developing Corporate Culture
Bisnis Indonesia Daily Newspaper The Best Of 5th BUMD of The Year ROE Performance Achievement.
-28-

MRI & Info Bank 5th Best Performance Overall Regional Bank
Tempo Magazine The Best Bank in term of asset >10 trillon

28

Growth Strategy for Enhanced Business Expand Third Party Funding by Developing Product Expand Loan by Enhanced Growth Multipurpose Loan(for civil servant, pensioners ,others) and SME Loan Explore the new business such as clearing house for RB in East Java Maintain and enhanced the quality of : 1. Loan portfolio 2. Banking operation 3. Product and services 4. Human resources

Growth

Quality

Efficiency

Logistic and infrastructure Reduce cost of fund

29

IT Development and Strategy

Develop internet banking system (i-banking) SMS and Mobile Banking (s-banking) Electronic Loan transfer system Clearing House for Rural bank as member APEX Bank Cooperation with BCA for payment system using debit card dan credit card for Regional Public Hospital and Private Hospital Deployment payment system online system host to host for Regional Tax (Dispenda), Payment for educational fee, water bills and other payment utilities like Electricity bills.

30

Strategy
With the development of the business climate in East Java, a growing number of competitors who see the potential to penetrate the banking market in East Java

SHORT TERM
Bank Jatim focus in the Year 2012

MIDDLE TERM
Bank Jatim focus in the Year 2014 -

BPD REGIONAL CHAMPION (BRC)

Become BPD Regional Champion (BRC) Increase in the Company's performance in terms of financial and non-financial Expansion of service network to strengthen the competitiveness of the Company and continue to serve the people of East Java

Bank Jatim has a short-term target is to increase the bank's performance with respect to service quality and customer satisfaction with : Increase the target for the collection of Third Party Funds to 16,95%; Target of 24% credit amount is prioritized to the Credit of Micro, Small and Medium Enterprises (SMEs) with a composition of at least 80% of total loans and a maximum of 20% for corporate; LDR increase to 78 85 %; Maintaining Operating Expense to Operating Income of 62,63%

In the medium term until the year 2014 the main focus is: Increase the target for the collection of Third Party Funds to 18,62%; Target number of credit amounting to 24.94% who prioritized for Micro Credit, Small and Medium Enterprises (SMEs) with a composition of at least 80% of total loans and a maximum of 20% for corporate; LDR maintaiin 85 %;

Maintaining Operating Expense to Operating Income of 64,77%

31

Corporate Profile

32

Share Ownership

Share Ownership

Shareholders-Series A
Provincial Government of East Java Regency and the city of East java

80,00
51,46 28,54

Shareholders-Series B
Local Investor-Individual Local Investor-Business Entities Foreign Investor- Business Entities & Individual

20,00
3,97 13,20 2,83

33

Board of Commissioner Muljanto

President Commisioner Position period (2011-2015)
From left to right:

Isnanto
Independent Commisioner Position period (2011-2015)

Chairul Djaelani
Commisioner Position period (2011-2015)

Wibisono
Independent Commisioner Position period (2011-2015)

34

Board of Director
Hadi Sukrianto
President Director Position period (2011-2015)
From left to right:

Partono
Agrobusiness & Business Director Position Period (2011-2015) Sharia

Djoko Lesmono
Middle and Business Director Position period (2011-2015) Corporate

Suparlan
Compliance Director Position period (2011-2015)

Eko Antono Operational Director Position period (2011-2015)

35

Share Performance

440

430
420 410 400 390 380 370 360 350 340

Investor Relation Unit Head Office Bank Jatim 2nd floor Rachmad 98-104 Street Surabaya-60271 Email: Contact Person: 1. Revi Adiana Silawati Corporate Secretary (revi.adiana@bankjatim.co.id) (renasanu@yahoo.com)

2.

Ferdian Timur Satyagraha Investor Relation Unit (ferdian.satyagraha@bankjatim.co.id) (ferdian_satyagraha@yahoo.com)

36

Thank You

37