BANK BUKOPIN CORPORATE PRESENTATION 3Q 2015

DISCLAIMER IMPORTANT: The following forms part of, and should be read in conjunction with, this presentation. This report is prepared by PT Bank Bukopin 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. No warranty (expressed or implied) is made to the accuracy or completeness of the information. Some of the statements contained in this document contain “forward looking” statements with respect to the financial conditions, results of operations and businesses, and related plans and objectives. These Statements do not directly or exclusively relate to historical facts and reflect the Company’s current intentions, plans, expectations, assumptions and beliefs about future events. The Statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made. Such statements are not, and should not be construed as a representation to future performance of the Company. Readers are urged to view all forward-looking statements contained herein with caution.

2

OUTLINE

Financial Update

4

Business Update

7

Corporate Update

21

Appendix

26

3

Financial Update

Financial Highlight

Sep ‐14 

Dec ‐14*

Sep ‐15 

(IDR  Trillion)

(IDR  Trillion)

(IDR  Trillion)

Sep ‐14  (%)

YoY (%)

Asset

77.9

79.1

89.5

14.84

Loan

50.4

55.3

62.7

24.50

Deposit

64.1

65.4

73.5

14.68

‐ Current Account

8.9

8.9

8.1

(9.45)

‐ Saving Account

14.9

15.4

15.0

0.68

‐ Time Deposit

40.4

41.1

50.5

25.15

Equity

6.7

6.8

7.4

10.66

Interest Income

5.2

7.1

6.1

17.26

Fee Based Income

0.7

0.9

0.9

26.21

Dec ‐14* (%)

Sep ‐15  (%)

YoY (%)

CAR

14.49

14.21

14.16

(0.33)

ROE

16.05

12.50

16.70

0.64

ROA

1.66

1.33

1.58

(0.08)

NIM

3.74

3.70

3.56

(0.18)

BOPO

85.91

88.27

85.90

(0.01)

LDR

77.11

83.89

84.88

7.77

NPL Gross

3.09

2.78

2.86

(0.23)

NPL Net

2.42

2.07

2.20

(0.21)

64.96

67.29

61.54

(3.42)

CIR Bank Only

Earning Before  Tax**

861.8

971.1

977.8

13.45

Earning After  Tax**

676.6

726.8

798.3

17.98

Consolidated *Audited **In IDR Billion

5

Loan & Deposit Highlight Loan (IDR Trillion)

Deposit (IDR Trillion)  73.5 65.4 64.1

62.7 55.3 50.4 62.79%

68.70%

62.96%

63.10%

Time Deposit

62.36% 64.10%

Saving Account

Retail

Current Account

Commercial

23.18%

35.90%

37.64%

36.90% 13.86%

Sep‐14

Dec‐14*

Sep‐15

Sep‐14

23.57%

0.33%

13.64%

Dec‐14*

20.35%

10.95% Sep‐15

*Audited 

6

Business Update

Core Business Bank Bukopin’s business activities of lending and funding include four pillars which are Micro Business, Small and Medium Enterprises (SME), Consumer Business and Commercial Business.

Objective: To become a top bank through focusing on value Micro

SME

Consumer

Commercial

“To be a market leader in  business to business  Micro and a prime player  for Rural Micro Banking”

“To be a key player in SME  Banking”

“To be a Preferred Partner  for Mass, Mass Affluent  Customers and Business  Owners”

“Sustain Current Market  Position”

RETAIL

COMMERCIAL

MAIN BUSINESS PILLARS Supported by Treasury Business, International Banking and Fee-Based Services 8

Strategic Plan

Strengthening the Structure of Capital

Enhance the Role of Risk Management and Compliance Aspects

Improvement of Information Systems and Technology

Focusing on Retail Segment

To Be the Reputable Financial Institution In Integrated Financial Services

Strengthening Non Interest Income Business

9

Business Focus – Funding ‐ Mass Afluent Customers in Retail Segment ‐ Corporate Partnership ‐ Government Financial ‐ Private Financial Priority Institutions

‐ Discipline Business Process ‐ Reward System Business  Process

Segment  Customer

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jhgjhgjgjhgjh Customer  Base and  Quality

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‐ Outlets ‐ E‐Banking ‐ E‐Money ‐ Branchless Banking

Channel  Distribution

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‐ Point Reward Savings Account. ‐ Merdeka Time Deposit. Development ‐ Cash Card for PLN. ‐ BPJS Smart Card for BPJS ketenagakerjaan. ‐ Cash Management for LPDB, Securities, Insurance, BPJS Ketenagakerjaan, etc.

10

Business Focus – Lending ‐ 12 Retail Segmentations ‐ 4 Corporate Segmentations ‐ Middle Class Consumers

‐ Discipline Business Process ‐ Reward System

Priority  Segment jhgjhgjgjhgjh Business

Business  Process

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‐ Government Retirees for Micro Banking ‐ Two step loans partnership

Customer  Base and  Quality gfhgfgfhghf Channel  Distribution ‐ Outlets ‐ Credit Cards

nbcbvcvcbvc Product  Development

‐ Project Based ‐ Distribution Based ‐ Transaction Based ‐ Consumption Based

11

Business Focus – Fee Based

‐ Discipline Business Process ‐ Reward System

Business  Process

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Priority  Segment jhgjhgjgjhgjh Business

‐ Credit Card Holders ‐ Public Utility Payment ‐ Treasury ‐ Micro Banking

Transactional  Focus

Channel  gfhgfgfhghf Distribution ‐ PPOB ‐ E‐Banking ‐ Merchant

Product  nbcbvcvcbvc Development ‐ Community Credit Card ‐ Billing System ‐ Forex ‐ Mutual Fund ‐ Best Transaction Reward

12

Deposit Composition Composition by Segment (IDR Trillion)

Composition by Product (IDR Trillion)

73.5

65.4

65.4 64.1 0.22%

23.24%

64.1

0.19%

0.19%

19.47% 18.11% 68.70%

37.18%

(0.11%)

62.79%

62.96%

33.02% 30.51%

Micro SME Consumer Commercial

Time Deposit Saving Account Current Account 23.18%

46.03%

44.52%

Dec‐14*

23.57%

20.35%

47.32% 13.86%

Sep‐14

73.5

Sep‐15

Sep‐14

0.33%

13.64%

Dec‐14*

10.95% Sep‐15

Third Party Funds increased YoY by 14.68% from IDR 64.1 Trillion to IDR 73.5 Trillion, and YtD by 12.46% from IDR 65.4 Trillion to IDR 73.5 Trillion. The biggest YoY growth comes from time deposit by 25.15%. due to increased in the long term deposit.

*Audited 

13

Loan Composition Outstanding Loan (IDR Trillion)

50.4 9.55%

55.3 10.00%

Credit Sector (%)

62.7

18.67%

12.07%

Trade

40.80%

Service 39.39%

38.76%

Construction

40.12%

Micro

19.96%

SME 15.17%

13.60%

35.89%

37.64%

Sep-14

Dec-14*

Consumer 10.92%

36.89%

Sep-15

Others

20.57%

Commercial

Loan increased YoY by 24.50% from IDR 50.4 Trillion to IDR 62.7 Trillion, mainly supported by growth of Micro Segment. Meanwhile, in terms of sectors, the biggest market is construction sector. *Audited 

14

Loan Quality Bukopin NPL (%) 3.09

Bukopin NPL Gross NPL Net

2.78

2.86

YoY (%)

NPL Gross

(0.23) (0.21)

2.42 2.07

Sep-14

Dec-14*

2.20

NPL Net

Sep-15

NPL Gross (%) NPL Gross

Sep ‐14

Dec ‐14*

Sep ‐15

Retail

3.85%

3.79%

4.01%

Commercial

1.89%

1.29%

1.10% Bank only *Audited 

15

Retail ‐ Micro Loan Breakdown (IDR Trillion) 7.6

Micro Banking strategies and policies are as follows: • Focus on Direct Loan to the pensioners of Government Employees, Indonesian National Army (TNI) and Indonesian National Police (POLRI). • Focus on the development of Strategic Alliance with PT Taspen and PT Asabri. • Optimization of reseller/partner’s performance. • Branchless micro banking product development. • Focus on fattening and credit quality improvement of Swamitra • Focus on developing cooperative and pensioner businesses.

5.5

4.8

32.63%

51.29%

24.39%

28.02%

20.18%

31.75%

Retirement ‐ Direct 30.96%

27.50%

21.17%

Retirement ‐ Channeling Swamitra Others

12.90%

11.85%

7.36%

Sep‐14

Dec‐14*

Sep‐15 *Audited 

16

Retail ‐ SME Loan Breakdown (IDR Trillion)

21.4 19.9

Deposit Breakdown (IDR Trillion)

25.2 27.86%

14.3

31.56%

14.9

30.65%

11.8

23.23%

17.72%

Services

23.86%

10.69% 

Trade

Time Deposit 66.34%

69.07%

61.17%

Construction 11.05%

16.67%

Saving Account Current Account

Transportation Others

11.77%

11.11%

7.51%

23.03% 

23.05%

30.24%

20.04%

23.99%

Sep‐14

Dec‐14*

Sep‐15

Sep‐14

Dec‐14*

13.62%

14.84%

11.13% (0.20%)

19.80%

Sep‐15

Bank Bukopin commits to advance the Small & Medium Enterprises (SME). The commitment is realized through the various products and services that Bank Bukopin offers for business entities in the SME sector. *Audited 

17

Retail ‐ Consumer Deposit Breakdown (IDR Trillion)

Loan Breakdown (IDR Trillion)

7.6

24.3

24.3

42.33%

42.82%

19.6

7.5 6.8

37.22%

22.25%

35.60%

21.34%

24.77%

33.35%

33.65%

Time Deposit Saving Account Current Account

Car loan Credit Card 15.86%

17.41%

23.78%

Housing Loan

65.08%

55.69%

54.72%

1.27%

1.98%

2.46%

Sep‐14

Dec‐14*

Sep‐15

Others 24.67%

Sep‐14

22.22%

Dec‐14*

21.53%

Sep‐15

Bank Bukopin’s Consumer Business targets individual customers through a range of products to meet a variety of customer’s needs. Offering complete range of savings, demand deposits, time deposit, credit card and consumer loan (housing & car loans) products, Bank Bukopin consistently strives to meet customer’s needs. *Audited 

18

Commercial Deposit Breakdown (IDR Trillion)

Loan Breakdown (IDR Trillion)

34.8 23.2 20.8

18.1

29.1

29.5 36.19%

36.19%

27.54% 26.92% 34.12%

Construction & Property Trading, Hotel & Restaurant

20.71%

Time Deposit (1.57%) 80.98%

80.80%

86,88%

Current Account

Energy & Mining 20.48% 11.35%

16.15% 10.53%

17.77% 11.63%

Transportation & Telecommunication Others

6.51%

16.42%

7.49%

19.02%

19.20%

13.12%

Sep‐14

Dec‐14*

Sep‐15

Sep‐14

Dec‐14*

Sep‐15 *Audited 

19

Fee Based Income

945 913 724 56.16%

Bank Bukopin’s Fee Based Income improved YoY by 26,21% from IDR 724 Billion to IDR 913 Billion, mainly supported by Credit Cards & Treasury transactions.

55.64%

53.97%

11.35% 17.32%

11.70%

Credit Cards 11.77%

10.94%

8.97%

Treasury Public Services Others

22.56%

21.55%

18.07%

In IDR Billion  Sep‐14

Dec‐14*

Sep‐15 *Audited 

20

Corporate Update

Shareholder’s Structure

PT Bosowa Corporindo

Cooperative of Bulog Employees (KOPELINDO)

Government of Republic of Indonesia

PUBLIC

30.00%

18.09%

11.43%

40.48%

PT Bukopin Finance

PT Bank Syariah Bukopin

88.25%

89.07%

22

Core & Supplementary Capital 14.49% 14.21% 2.78% 2.60%

11.71%

11.61%

14.16% 3.20%

10.96%

Supplementary Capital Core Capital

Sep‐14

Dec‐14*

Sep‐15

•

According to Bank Indonesia’s Regulations, Bank Bukopin is categorized as BUKU 3 with a core capital of IDR 6.49 Tn.

•

CAR decreased year‐on‐year due to loan expansion, which caused an increase in Risk Weighted Assets (RWA).

23

History & Key Milestone

Bank Umum Koperasi Indonesia (Bukopin) was formed

1970

1989

• Changed its name into Bank Bukopin • Issued Bond

• Became a public-listed company via IPO • Acquisition of 24.73% shares of PT. Bank Syariah Bukopin • Acquisition of the shares of PT Bukopin Finance

Became a limited liability company, PT Bank Bukopin

1993

2003

Issuance of Series A Bonds, Series B Subordinated Bonds and Sharia Mudharabah Bonds

2006

2008

• Additional acquisition of the shares of PT Bank Syariah Bukopin, bringing the total shares to 65.44% • Paid off Series A Bonds, Series B Subordinated Bonds and Sharia Bonds

• Rights Issue I • Spinned off Sharia Business Unit to PT Bank Syariah Bukopin in which Bank Bukopin owns 65.4%

2009

2011

• Rights Issue II • Increased ownership in PT Bank Syariah Bukopin became 77.57%

Issuance of Subordinated Bond Sustainable I Bank Bukopin Period I Year 2012

2012

2013

Rights Issue III

Increased ownership in PT Bank Syariah Bukopin became 86.82%

2014

2015

• PT Bosowa Corporindo became the Controlling Shareholder • Issuance of Subordinated Bond Sustainable II Bank Bukopin Period I Year 2015 • Increased ownership in PT Bank Syariah Bukopin became 89.07%

24

Outlet & Electronic Network

Branches Sub Branches

September 2014

September 2015

Growth 20142015

40

41

1

119

121

2

Cash Offices

145

148

3

Micro-Service Offices

87

90

3

Payment Point

39

37

(2)

Pickup Service

8

8

0

Total outlet

438

445

7

ATMs

600

734

134

1.951

1,075

(876)

Mini ATMs

Nanggroe Aceh Darussalam North Sumatera

East Kalimantan

Riau Island

West Sumatera

North Sulawesi

West Kalimantan

Riau

Jambi South Sumatera Lampung

DKI Jakarta

Banten West Java

South Kalimantan

Central Java East Java

D.I.Yogyakarta

South Sulawesi

Bali West Nusa Tenggara

East Nusa Tenggara

• Bank Bukopin currently has network in 23 out of 34 provinces in Indonesia. • Bank Bukopin’s ATM card gives its holder access to all major ATM networks in Indonesia (including ATM BCA Prima, ATM Bersama and   ATM Plus), comprising more than 30.000 ATMs. • Bank Bukopin manages more than 30.800 PPOB outlets across Indonesia that reaches out to the urban and rural population. 400 of that  will be added Meeting Point Facility and will be the embryo of  Bank Bukopin’s Branchless Banking. • Our IT system provides real‐time monitoring of each branch’s transactions and positions. 25

Appendix

Board of Commissioners & Directors Board of Commissioners

Mulia P. Nasution President Commissioner

Deddy S.A. Kodir Commissioner

Muhammad Rachmat Kaimuddin Commissioner

Margustienny Oemar Ali Independent Commissioner

Parikesit Suprapto Independent Commissioner

Karya Budiana Independent Commissioner

Directors

Glen Glenardi President Director

Mikrowa Kirana Commercial Director

Adhi Brahmantya Business Development and IT Director

Irlan Suud Heri Purwanto Risk Management, Retail Director Compliance & HR Development Director

Eko R Gindo Setiawan Sudarmaji Finance & Planning Services & Operation Director Director

27

Awards

“Banking Service Excellence 2015 “ Awarded for 7th Best Overall Performance 2015 from InfoBank Magazine

“Service Quality Award” Awarded for recognition of outstanding achievement as 2nd rank of Banking Service Quality in 2014 from ISMS

“Indonesia WOW Service Excellence Award 2015” Consolation PrizeWinner of Indonesia WOW Service Excellence Award 2015 Category Conventional Bank (BUKU III) Region Sumatera from Markplus Inc.

“Indonesia WOW Service Excellence Award 2015” Consolation PrizeWinner of Indonesia WOW Service Excellence Award 2015 Category Conventional Bank (BUKU III) Region Kalimantan from Markplus Inc.

“Service Quality Award” “2015 Banking Service Excelence” Awarded for outstanding achievement as a Awarded for 7th Best Overal Performance nd 2 rank of Banking Service Quality in 2014 for Commercial Bank from InfoBank & MRI from Institute of Management Studies

“Indonesia’s Top 100 Most Valuable Brand 2015” Certified for 47th rank in Most Valuable Indonesian 2015 & awarded for US$ 67 Mil Brand Value & A+ from Brand Finance, SWA & WIR Global

“Infobank Awards 2015” Best of the best Financial Performance 2000-2015 from Infobank

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For further info please contact: [email protected] [email protected]

www.bukopin.co.id