Q3 - 2021 Financial Update Presentation (Updated on 29 Oct 2021)

9M'2021 - Financial Update Presentation

PT BANK RAKYAT INDONESIA (PERSERO) Tbk.

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OUTLINE

CEO Messages …………………………………………………………………………………………………………………………………………	3
9M'21 Highlights ….……………………………………………………………………………………………………………………………………	4
Macro Economy & Banking Industry …………………………………………………….…………………………..…….……..……….……....	8
Investment Proposition …………………………………………………………………………………………………………………………….…	12
Road to Become the Champion of Financial Inclusion ……………………………………………………………………………………..…	19
BRI 9M'21 Performance Highlight ………………………………………………………………………………………………………………….…	28

1. Consolidated Performance Highlight …………………….…………………………………………………………………………….. 29
2. Balance Sheet Highlight - Bank Only …………………………………………………………………………………….………………… 30

3. Profitability Highlight - Bank Only ………….…………………………………………………………………………………………...…	31
4. Key Ratios - Bank Only ……………….…………………………………………………………………………………………………….	32

5. Loan Quality - Bank Only ……………….……………………………………………………………………………...…………………….. 33

Guidance & Takeaways ..……………………………………………………………………………………………………………….………….…	34
Appendix..………………………………………………………………………………………………………………………..……………………….
BRI 9M'21 Consolidated Performance …………………………………………………………………………………………….……………….	38
BRI 9M'21 Bank Only Performance ………………………………………………………………………………………………….……………….	42
BRI 9M'21 Loan Quality …………………………………………………………………………………………..…………………………………..	53
Business Update ….…….……...……………………………………….………………………..………….……………………….……..…………	57
Subsidiaries ……………………………………………………………………….……..……...................................................................................	62
Networks ………………………………………………………………………….……..…….................................................................................	66
ESG Initiatives ……………………………………………………………………….……..……............................................................................	68
Board of Management ..……………………………………………………………………………………………………………………………..	75
Others..………………………………………………………………………………………………………………………..…………………………	78

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CEO MESSAGE

Strengthening Resilience, Securing Strong and Sustainable Growth

Sunarso, CEO

The Covid-19 handling in Indonesia has shown positive development, allowing the government to gradually relax the Community Activity Restriction and thus drive the economic activities to increase. The economy is recovering as reflected in increasing exports, consumption and investment activities. We expect the economy to continue to improve as shown by the increasing trend of Indonesia's Purchasing Managers' Index (PMI), Consumer Confidence Index (CCI), and MSME Business Index in September 2021.

In line with the economic recovery, BRI was able to manage the second-wavecovid-19 impact and showed solid performance. Top line growth is recovering, supported by loan especially in micro segment, which has pushed micro loan composition to 40.8%. Through aggressive cost efficiency programs, we have managed to achieve Cost of Fund at all-time low. The recovering top line and cost efficiency have been the main drivers of solid profitability in the third quarter of 2021. In terms of loan quality, even though Loan at Risk continues to decline, we keep our focus on managing our loan quality, especially SML and NPL. We continue to strengthen our resilience in doing business during the uncertainty due to the pandemic situation through, among others, adequate provisioning and selective growth strategy.

I would like to point up that BRI continues to commit to secure strong and sustainable growth, moving towards becoming the Champion of Financial Inclusion. This bold aspiration will be supported through the establishment as well as integration of Ultra Micro Ecosystem, micro business innovation and development, re-inventing distribution channel and digital transformation, strengthened with performance-driven culture as part of our culture transformation.

On September 13, 2021, we have completed our first initiative to establish The Ultra Micro Holding Company (UMi Holding), an integration between BRI, Pegadaian, and PNM. This initiative was carried out through Rights Issue mechanism and successfully completed with 101.53% subscription (over-subscribed). We thank all our stakeholders for the continued support from the start of this project. The Rights Issue was the first step, but nonetheless, an important milestone of a broader plan to fully combine the three entities, leverage their unique capabilities, and ultimately realize all the synergies and potentials of the UMi Holding. The establishment of UMi Holding is also encompassed in our ESG strategy through fixing new sources of growth as well as building up our micro and ultra micro customer base including underprivileged women, to finally ensure BRI's business sustainability.

We are now in the first-year integration with aim to set up the foundations that focuses on developing and fine-tuning the Co-location and Umi Corner to discover more UMi integration synergies going forward. Our next steps to becoming the Champion of Financial Inclusion will be supported by innovative micro business transformation through business process strengthening, product rejuvenation, and new business model development. We will also implement the network and digital transformation to achieve more productive and efficient business in the future. With these strategy and initiatives, we believe that the UMi Holding will be able to deliver both economic and social values, not only for the three entities, but also the micro and ultra micro entrepreneurs as part of the UMi Ecosystem.

When all is said and done, we believe that the UMi Holding, which is part of our strategy to Secure Strong and Sustainable Future Growth, is a testament of our commitment to continuously creating and delivering sustainable values to all stakeholders, and part of our Employee Value Proposition: "Delivering Value for Indonesia".

9M'21 HIGHLIGHTS

Strengthening Resilience, Securing Strong and Sustainable Future Growth

Declining trend of Covid-19 Case Pandemic

On-track portfolio management

73.2% 75.2%

211.5	239.5
33.3%	34.1%

75.9%	77.8%	80.9%	79.2%	80.5%
		351.3		379.7
		328.8
	307.7
274.3
34.3%	35.8%	39.9%	37.5%	40.8%

2020

2021

Solid profitability supported by yield improvement and COF efficiency

13.7%	13.1%	12.7%	12.4%
			11.5%
		11.0%	10.8%
8.0%	7.9%	7.4%	7.0%			6.9%
		6.0%	5.8%
3.8%	3.3%	3.5%	3.6%	3.2%	3.4%	2.1%
2016	2017	2018	2019	2020	9M'20	9M'21
		COF		Loan Yield	NIM

2016	2017	2018	2019	2020		9M'20	9M'21
		Micro Loan		Micro Comp.		MSME Comp.

Building cushion to mitigate

Covid-19 impact

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Note: All figures are standalone basis

RIGHT ISSUE HIGHLIGHT

The Ultra Micro Holding Company (UMi Holding) was
officially established on September 13, 2021, through the	Proceeds		Government In Kind Contribution
transfer of the Government's shares in Pegadaian and PNM

to BRI marked by the signing of the Deed of Capital	IDR
Contribution In Kind (Inbreng)
95.92 T

The Government transferred 99.99% Pegadaian and PNM's Shares (all Series B shares) to BRI

IDR 54.77 T

The Establishment of Ultra Micro Ecosystem

	Cash Proceeds from Public
	Shareholders
	IDR 41.15 T
28.2 billion	Before Rights Issue

New shares issued	Ownership
		Government 56.75%
Composition
			Public 43.25%*

IDR 95.92 trillion

Total proceeds

101.53%

Oversubscribed

(incl. 0.61% Treasury Stock)

After Rights Issue

Government 56.82%

Public 43.18%*

(incl. 0.49% Treasury Stock)

• The changes in the composition of ownership was due to treasury stock that did not include in the Rights Issue

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