1 - Bank BTN

Transcription

1 - Bank BTN

PT Bank Tabungan Negara (Persero) Tbk
Roadshow Presentation
October 2012
Disclaimer
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PT Bahana Securities (“Bahana”), PT Danareksa Sekuritas (“Danareksa”), PT Mandiri Sekuritas (“Mandiri”), Credit Suisse (Singapore) Limited (“Credit Suisse”), or Goldman Sachs (Singapore) Pte.
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For the purposes of this presentation, the FX rate used is US$1.00: IDR9,500.
2
Issuer
Underwritten
renounceable rights
issue
Private placement of
Republic of Indonesia
rights shares

PT Bank Tabungan Negara (Persero) Tbk (“BTN”)

Expected exercise price of between IDR1,000 – 1,400(1)
IDR1,513 – 2,118bn (US$159 – 221m)(1)
94,943 rights for every 555,000 existing shares, to issue 1,512,858,200 Class B common shares: ~17.1% of
shares outstanding






Pro forma shareholding
post rights


Lock up
Distribution
Standby Purchasers,
Joint Global
Coordinators and
Bookrunners







The Republic of Indonesia (“ROI”), acting through the Ministry of State Owned Enterprises (“MSOE”), is a
current 71.85% shareholder and entitled to 1,086,968,500 Rights
MSOE will not exercise its rights and will sell its rights to the Standby Purchasers
Standby Purchasers will exercise these rights and will sell these via a private placement
ROI’s pro forma shareholding will decrease from 71.85% to 61.35%, immediately post rights issue
ROI’s shareholding may decrease to 60% if all outstanding options issued under BTN’s employee stock option
program are exercised, which will expire between 2015 - 2017
BTN will be subject to lower tax rate of 20% from 25%, once free float increases to 40%
BTN: 12 months
Republic of Indonesia: 6 months
Rights issue: Reg S and participation by US QIBs with investor representation letter
Private placement: Reg S only
Standby Purchasers: Bahana, Danareksa and Mandiri
Joint Global Coordinators: Credit Suisse, Bahana, Danareksa and Mandiri
Joint Bookrunners: Credit Suisse, Bahana, Danareksa, Mandiri and Goldman Sachs
Note: Consolidated figures shown unless otherwise stated.
(1) Based on preliminary price range submitted to BAPEPAM-LK.
3
Indicative timetable
International roadshow

Mon – Tue, 22 October 2012 – 30 October 2012
Placement
November 2012
Start of bookbuilding

Mon, 22 October 2012
Pricing and trade date (T)

Fri, 2 November 2012
Rights issue
Settlement (T+13)

Fri, 23 November 2012
Extraordinary General Meeting

Wed, 7 November 2012
Shares trade ex-rights

Mon, 19 November 2012
Record date for entitlement for rights
Rights trading period


Last day for payment of excess rights 
Allotment date for excess rights

Refund date for excess rights

Wed, 21 November 2012
Fri – Thu, 23 – 29 November 2012
Mon, 3 December 2012
Tue, 4 December 2012
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Public Holiday
Indonesia
Singapore
Hong Kong
London
Thu, 6 December 2012
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Table of Contents
1
Company Overview
6
2
Key investment highlights
13
3
Additional financial information
31
4
Appendix
38
5
1. COMPANY OVERVIEW
6
Company highlights
 Largest mortgage provider in Indonesia(1) with over
110 years of operational track record
 Dominant market share (c.98%) in government
subsidized mortgage programme(2)
 9th largest bank by loans(3)
 10th largest bank by deposits and assets(3)
 One of only four state owned banks
(1)
(2)
(3)
As of 30 June 2012.
As of 28 June 2012.
As of 31 August 2012, based on Bank Indonesia report.
Early history 1970

1897: BTN was established as “Postspaarbank” under the Dutch
Government

1950: Re-established as “Bank Tabungan Pos” by Indonesian
Government

1963: Assumed its current name of Bank Tabungan Negara

1974: Appointed by the Government as the sole institution to provide
housing finance to lower and middle income groups

1976: Extended first mortgage loan

1989: Started operating as a commercial bank and issued the first
corporate bond

1994: Obtained permit to operate as a foreign exchange bank

2002: Assigned as a commercial bank with focus on commercial
housing finance

2009: Launched the first residential Mortgage-Backed Securities in
Indonesia

2009: Listed as public company at Indonesia Stock Exchange on 17
December 2009
1980 - 1990
2000 - today
Key statistics(1)
Market Capitalization (as of 19 Oct 2012)
Total assets
Gross customer loans
Non-bank customer deposits
Total equity (excl non-controlling interest)
Net profit (FY2011)
Net profit (9M 2012)
(2)
Total income (FY2011)
(IDR bn)
13,527
98,756
76,566
69,212
8,120
1,119
1,021
4,298
(US$ mn)
1,424
10,395
8,060
7,285
855
118
107
452
Source: Company filings, Bloomberg.
(1)
As of 30 September 2012, unless otherwise stated.
(2)
Total income defined as net interest income and total other operating income.
Key financial ratios
Tier 1 CAR
Total CAR
Net interest margin
Loans-to-deposits ratio
Loans-to-funding ratio
Net NPL ratio
(1)
(2)
Return on equity under BI
(3)
Return on assets under BI
(4)
Return on equity
(5)
Return on assets
14.4%
15.2%
6.0%
110.4%
87.8%
2.5%
19.1%
2.0%
17.6%
1.5%
Source: Company information, as of / for 9 months ended 30 September 2012, unless otherwise stated.
(1)
Loans-to-funding ratio calculated as gross loans / (third party funding + fund borrowings)
(2)
Annualised for FY2012 and calculated based on net profit/average Tier 1 capital based on Bank
Indonesia regulation.
(3)
Annualised for FY2012 and calculated based on income before income tax (include tax benefit and
extraordinary item)/ average total assets based on Bank Indonesia regulation.
(4)
Unaudited ROE annualised based on net profit for nine months ended 30 September 2012 / average
balance of total equity, where the average total equity is calculated based on the average of the
balance on the last day of each month during the relevant period.
(5)
Unaudited ROA annualised based on net profit for nine months ended 30 September 2012 / average
balance of total assets, where the average total assets is calculated based on the average of the
balance on the last day of each month during the relevant period.
7
Company ownership and share price development
Share price development since IPO
Share ownership composition
2,000.0
200
1,500.0
150
1,000.0
100
Share Price (IDR)
250
Volume (m)
2,500.0
50
500.0
0
Dec-09 May-10
Oct-10
Apr-11
BTN Share Volume
Oct-11
Apr-12
0
Oct-12
Ownership
GOI
# of Shares
6,354,000,000
%
71.8%
Public
2,489,583,000
28.2%
912,035,519
36.6%
1,577,547,481
63.4%
Domestic
Foreign
Total
8,843,583,000
BTN Share Price
Source: Bloomberg as of 19 Oct 2012.
Source: Company information as of 30 September 2012.
Public share ownership

As of 19 October 2012, BBTN closed at IDR 1,530 per share, 91.3%
higher than its IPO price of IDR 800 on 17 Dec 2009

Market cap is currently IDR 14 trillion (US$1,424 million)(1), implied trailing
price-to-book multiple of 1.7x(2)
40.3%
59.7%
IPO
49.1%
50.9%
Dec-09
61.3%
63.4%
33.2%
38.8%
36.6%
Dec-11
Sep-12
Dec-10
Domestic
(1)
(2)
66.8%
Foreign
Market capitalization as of 19 October 2012.
Book value of IDR 8,120bn as of 30 September 2012.
8
Liquidity and funding structure
Strong track record of deposit growth
Funding mix (30 September 2012)
(in IDR trillions, unless otherwise stated)
69
Non-bank
deposits
Securities
issued
8.9%
62
48
40
34
40
24
CASA
ratio
32
9
11
7
5
2009
2010
Current account
40.0%
Source: Company information.
Repurchase
agreements
Deposits
4.1%
from banks
1.1%
15
18
13
12
2011
Sep-12
Savings account
33.3%
44.6%
Third party
deposits
85.9%
Time deposits
41.9%
Note:
Securitisation not included.
9
Relative capital position
Tier 1 CAR
CAR
BTPN
20.6%
Danamon
Citibank
18.1%
BNI
BTPN
21.6%
Danamon
15.8%
Mega
24.3%
18.1%
BNI
17.4%
14.7%
OCBC NISP
17.1%
BTN
14.5%
HSBC
OCBC NISP
14.4%
Mega
16.2%
Mandiri
16.2%
15.4%
BRI
(1)
Mandiri
14.0%
16.7%
BCA
13.7%
Bukopin
15.9%
HSBC
13.6%
BRI
15.9%
12.4%
Panin
15.8%
12.2%
BTN
15.3%
CIMB Niaga
15.0%
BCA
14.8%
Panin
CIMB Niaga
Bukopin
Standchart
Citibank
BII
Permata
11.7%
(1)
10.6%
Permata
10.1%
9.1%
8.8%
13.8%
BII
12.3%
Standchart
12.0%
Average: 13.5%
Average: 16.4%
Source: Bank Indonesia as of 31 August 2012, except for BTN ratios, which are as of 31 August 2012 audited financials.
BTN will become one of the strongest capitalized banks in Indonesia after the rights issue
10
Indonesia’s macroeconomic environment
Largest Southeast Asia economy
Strong real GDP growth (2011)
Thailand Vietnam
6.0%
16.8%
Malaysia
13.5%
6.5%
5.9%
5.1%
4.9%
3.7%
Indonesia
41.1%
Singapore
11.6%
0.1%
Philippines
10.9%
Indonesia
Vietnam
Malaysia
Singapore
Philippines
Thailand
2011 Southeast Asia GDP US$2,060bn
Source: World Bank.
Source: IMF.
Lowest credit penetration among peers (2011)
Significant population growth (2011)
Loans / GDP (2011)
125%
(in millions)
123%
3,389
118%
1,846
1,059
198
480
90
Population (2011)
241
74%
32%
Vietnam
Credit
Growth (1)
35.0%
Singapore
10.3%
Malaysia
8.7%
Thailand
10.5%
Philippines
10.0%
96
31%
Indonesia
Indonesia
89
Philippines
Vietnam
64
Thailand
29
Malaysia
5
Singapore
Population increment (2010 - 2011) (in thousands)
20.6%
Source: IMF.
Source: World Bank, BMI.
(1)
Credit Growth defined as 2005-10 loan CAGR based on private sector credit growth.
Indonesia has experienced robust economic activity and growth in recent years and BTN is well positioned to capitalize on
the favorable market conditions
11
Mortgage industry in Indonesia
Mortgage outstanding
(in IDR billions, unless otherwise stated)
182,639
50.2%
45.7%
32.7%
22,276
32,459
2003A
2004A
48,743
2005A
64,676
2006A
108,019
83,521
29.1%
29.3%
2007A
2008A
House and apt mortgages outstanding
123,721
14.5%
2009A
140,599
29.9%
13.6%
2010A
2011A
% growth
Source: Bank Indonesia.
Non performing loans
8.0%
7.6%
8.0%
2.7%
2.4%
2.6%
2003A
2004A
2005A
9.7%
3.7%
2006A
Banking sector NPL
8.0%
3.1%
2007A
9.9%
6.9%
6.1%
2.5%
2.6%
2.5%
2008A
2009A
2010A
5.2%
1.8%
2011A
House and apt mortgage NPL
Mortgage growth in Indonesia has been strong due to its growing population and affluence, while NPL ratios for house and
apartment mortgages have remained lower than the overall banking sector
12
2. KEY INVESTMENT
HIGHLIGHTS
13
Key investment highlights
1
Well regarded franchise and the
largest mortgage provider in
Indonesia
2
6
Sustained market leadership due to
unique competitive advantages
Experienced management team
3
5
Strong asset quality and relatively
low-risk business model
Strong growth potential
4
Extensive distribution network
14
1 Well regarded franchise and the largest mortgage provider in Indonesia
Well regarded franchise
Leading market share in mortgages (30 June 2012)
 Long history of operations in the Indonesian mortgage market
Others
29.6%
 Recognizable nationwide distribution network
BTN
22.4%
 Dominant market position in mortgage, especially low-tomiddle income segment
 Overwhelming market leader in FLPP disbursements despite
fully liberalized market
 Focus on housing finance, making up 86.3% of total loan
portfolio as of 30 September 2012
 As of 30 September 2012, total outstanding mortgages was
IDR52 trillion (US$5 billion), represents 68% of total loans &
financing of IDR77 trillion (US$8 billion)
BCA
16.5%
BRI
3.9%
BNI
9.8%
Mandiri
CIMB Niaga 9.1%
8.7%
#1 market share in FLPP(1) disbursements
7%
3%
0%
2%
93%
97%
100%
98%
2009
2010
2011
BTN
Jun-12 (2)
Others
(1)
FLPP is Facilitas Likuiditas Pembiyayaan Perumahan which is the Liquidity Facility of Housing Finance,
or government mortgage subsidy programme.
(2)
As of 28 June 2012.
15
(cont’d)
One of only four state-owned banks
71.8%(1)
60.0%
60.0%
56.8%
Source: Company filings as of 30 June 2012, except BTN, which is as of 30 September 2012.
(1)
Will decrease to 60% post rights issue and placement of GOI’s rights (post-exercise of MESOP)
Strong branding through Government of Indonesia support for state-owned banks
 No state-owned bank allowed to fail during the 1997 Asian Financial Crisis
 The Government of Indonesia recapitalized BTN with IDR13,844 million (US$1,457 million)
 All state-owned banks, including BTN, were able to grow loans and deposits portfolio after the crisis due to their relative stronger capital position
 The support of the Government of Indonesia provided comfort to customers that counter-party risk was significantly lower than the non-state-owned banks
 This status as a state-owned bank has helped to further established BTN’s brand name in Indonesia, which has contributed to the large and loyal deposit
customer base
16
(cont’d)
Total
Housing loans
Non-housing loans
(in IDR billions)
76,566
40,733
Total loans
26,384
25,652
19,088
12,482
Subsidized mortgages
2,783
Non-subsidized mortgages
5,236
Other housing
2009
3,792
8,816
687
Construction loans
Consumer loans
1,901
8,831
Commercial loans
Sep-12
2009
Sep-12
Non-housing
6.4%
Non-housing
13.7%
Construction
9.3%
Other housing
6.8%
1,647
Subsidized
mortgages
46.9%
Construction
11.5%
Subsidized
mortgages
33.5%
Other housing
6.8%
Non-subsidized
mortgages
34.5%
Non-subsidized
mortgages
30.6%
Housing: 93.6%
Non-housing: 6.4%
Housing: 86.3%
Non-housing: 13.7%
Strong growth in non-subsidized and non-housing segments as BTN seeks to diversify into high margin segments
17
2 Sustained market leadership due to unique competitive advantages
Requisite
credentials and
track record

Sustained market leadership

Focused on mortgage finance since 1976

Leverage large and growing pool of middle income customers with its strong and recognized brand

Multiple housing finance awards, including:
− Majalah SWA: Winner in the Housing Loan Category (2010 and 2011)
− ISO 9001:2008: Mortgage Processing (Home Loan Facilities (KPR) and Apartment Facilities (KPA)
Non Subsidy Ready Stock) from application to Loan Disbursement (January 2012)
Strong
relationships
with property
developers

Typically only bank to set up outlets at property developments targeting low-to-middle income segment

Established stellar track record and capability

Strong working relationship with small ticket property developers developed over years
Experience and
expertise in
mortgage
market

Years of institutional knowledge dealing with target segments

Understand credit risks, demands and requirements of low-to-middle income segment

Established database of credit information and expertise in valuation of collateral
Established
processes and
economies of
scale

Able to process large number of small-ticket loans efficiently

Leverage on IT such as the implementation of the new iColl and iLoan systems

Run effective marketing campaigns
18
3 Strong asset quality and relatively low-risk business model
Gross NPL ratios
4.0%
4.1%
4.4%
4.2%
4.0%
Net NPL ratios
4.2%
3.4%
3.5%
3.4%
3.7%
3.4%
3.5%
3.4%
3.7%
3.5%
2.8%
3.2%
2.2%
2.7%
3.3%
2.5%
2.4%
2.2%
2.8%
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-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12
Source: Company presentation.
Note:
Dec 2009/2010/2011 and Jun 12 ratios are audited. The other quarterly ratios are unaudited, using
the same formula calculation as the audited quarters.
Source: Company presentation.
Note:
Dec 2009/2010/2011 and Jun 12 ratios are audited. The other quarterly ratios are unaudited, using the
same formula calculation as the audited quarters.
Gross NPL by segment
Housing loans – fully secured by collateral
Non-housing loans – partially secured
6.3%
5.5%
4.8%
3.8%
3.5%
2.3%
2.8%
2.8%
3.0%
3.2%
2.8%
3.3%
2.8%
3.5%
1.2%
Other housing
Construction loans
Dec-09
Dec-11
2.1%
Consumer loans
2.7%
3.6%
Commercial loans
Sep-12
NPL ratios have fluctuated q-o-q due to seasonal nature of payments, but overall trend has been decreasing due to our
robust credit risk management systems and practices such as the implementation of i-Coll; majority of portfolio is also fully
secured by collateral
19
3 Strong asset quality and relatively low-risk business model (cont’d)
Old scheme – prior to October 2010



2 types of mortgage subsidies provided by GOI
− Interest rate subsidy
− Down payment subsidy
Floating rate charged to consumer subsidized by GOI
Down payment for housing subsidized by GOI
Current FLPP scheme – October 2010 to March 2012





Category
Landed
house
Fixed 7.25% 15-year loan
50.0% cash funded by GOI at cost of 0.5% per annum
BTN funding for remaining 50% of mortgage
70.0% of loan amount covered by insurance arranged by GOI



Similar to current FLPP scheme
Interest rate remains fixed at 7.25%
Loan tenure of up to 20 years
70.0% cash funded by GOI at cost of 0.5% per annum
Max price
(Rp mn)
Simple
apartment
Minimum down
payment
Max loan
(Rp mn)
Sumatra, Java except Jakarta
greater area, Sulawesi
88.0
10.0%
79
Kalimantan, Maluku, Nusa
Tenggara
95.0
10.0%
86
145.0
12.5%
127
95.0
10.0%
86
216.0
12.5%
189
Jakarta greater area, Batam,
Bali
NA
Source: Permenpera RI No. 07 2012.

Minimum size is 36.0m2 (landed) and 28.8m2 (apartment)

3 main criteria for eligible borrowers:
− First time home buyers
− Borrowers’ maximum income of IDR3.5 million for landed house and
IDR5.5 million for simple apartment
Future FLPP scheme – post August 2012

Region
Papua and West Papua
60.0% of subsidized mortgage funded by GOI at cost of 0.5% per annum
Fixed rate ranging from 8.15% to 8.50% for landed houses and 9.25% to
9.80% for simple apartments up to 15-years
Current FLPP scheme – March 2012 to August 2012

Current FLPP criteria – since May 2012
− Tax ID and tax slip or statement of income from company

Loans are fully secured by land & property

No need to pay 10% VAT on property purchases
Relatively low risk business model in subsidized mortgage as borrowers are first time home buyers and loans are fully
secured and 70% insured/cash funded by GOI
20
4 Extensive distribution network
Total cash outlets, offices and branches
711
640
415
Post offices
2,661
335
324
2,738
ATMs
1,181
2,922
2,045
1,277
745
286
528
304
286
2009
316
376
2011
Sep-12
111
2010
Cash outlets
Office and branch distribution (30 Sep 12)
Others
11.8%
Java
74.8%
2009
2010
2011
Sep-12
2009
2010
2011
Sep-12
Offices and branches
Sumatra
13.4%
Post office distribution (30 Sep 12)
Others
21.3%
Java
54.7%
Sumatra
24.0%
ATM distribution (30 Sep 12)
Others
13.6%
Sumatra
13.5%
Java
72.8%
BTN has an extensive and growing distribution network, with most customer touch points located in the more densely
populated islands of Java and Sumatra
21
4 Extensive distribution network (cont’d)
PT Pos Indonesia overview

Established cooperation in 2005; renewed in December 2010

Post offices electronically connected to BTN on real time basis

Offers banking products and services such as opening of bank accounts,
deposits and withdrawals, checking balances, paying tuition fees through
SPP Online BTN and paying mortgage installments

Facilities owned and operated by PT Pos Indonesia

Partnership renewed every 2 years and expected to be renewed by
November 2012
Advantages of PT Pos Indonesia cooperation

Easier access for customers through real-time system

Cost efficient especially in terms of procuring a wider customer base
− Ability to capture local resident population surrounding post office

Expanded network
− As of September 30, 2012, maintain electronic linkages with 2,922
post office across Indonesia

Currently only bank with BI license to collect deposits (non-Sharia) from
post offices
Partnership with PT Pos Indonesia expands BTN’s distribution network by over 2,900 access points
22
5 Strong growth potential
Indonesia nominal GDP per capita
Mortgage loan as a % of GDP (2011)
(in US$)
88.6%
6,904
6,157
5,465
40.4% 39.3%
4,829
29.7%
2011A
Source: IMF.
2012E
2013E
2014E
2015E
2016E
3.7%
2.5%
2.3%
Indonesia
10.7%
Philippines
China
Malaysia
Taiwan
Singapore
15.6%
India
3,797
USA
3,509
Thailand
4,255
2017E
Source: CEIC.
Mortgage growth outlook remains strong due to continued rising affluence and low mortgage penetration
23
5 Strong growth potential (cont’d)
Indonesia housing price index
Housing supply shortage (2011)
130
125
120
115
110
105
100
95
90
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Source: www.bps.go.id, www.kemenpera.go.id.
Source: Bank Indonesia, indexed to 100 as of January 2007.
Low housing price compared to regional peers
(in US$ per sq m)
20,371
16,350
15,122
11,306
6,932
2,182
2,099
Indonesia
2,913
Malaysia
2,996
Cambodia
Philippines
China
Taiwan
India
Japan
Singapore
Hong Kong
3,204
Thailand
7,112

Housing demand amounted to 800,000 new homes each year, while
housing supply reached only 400,000 per year

Cumulative backlog as of 2011 reached approximately 14 million houses

Further upside growth potential in the Indonesian housing market:
− Strong GDP per capita growth through 2018
− Indonesia’s housing prices are still on the low end compared to regional
peers
− One of the lowest mortgage penetration rate in Asia Pacific at only
2.3% of GDP in 2011
Note:
Prices specific to CBD area.
Source: Global property guide.
Housing prices remain relatively low and Indonesia continues to suffer from a shortfall of houses for its
growing population
24
5 Strong growth potential (cont’d)
Sharia business overview
Sharia revenue and revenue contribution

Sharia business was established in 2005

Operates separately from consumer and
commercial banking

As of 30 September 2012, BTN had 50 Sharia
branches, 240 Sharia channeling outlets,
46,247 customer accounts for Sharia financing
products and 164,727 customer accounts for
Sharia funding products

(in IDR billions)
2.3%
2.7%
2009
2010
2011
Sep-11
(in IDR billions)
5,322
6,146
5,056
4,366
3,817
4,226
3,437
2,847
2,405
1,996
2,257
2011A
Sep-12
Sep-12
Sharia deposits
(in IDR billions)
2010A
233
159
Sharia financings
(in IDR billions)
3.6%
Sharia as a % of total income
Sharia assets
2009A
2.9%
222
172
133
Plan to leverage on current branch network to
open more Sharia channeling outlets
2.9%
2009A
1,447
2010A
2011A
Sep-12
2009A
2010A
2011A
Sep-12
Other growth opportunities exist, such as continued strong growth in Sharia business; BTN also exploring other products
and services such as priority banking and bancassurance
25
6 Experienced management team
Board of Directors





Name: Iqbal Latanro
Position: President Director / CEO
Years in banking: > 27
Years in BTN: > 27
Former: Managing Director supervising Loan and
Treasury, Head of Loan Management and Policy Division
and Head of Branches





Name: Saut Pardede
Position: Managing Director / CFO
Years in BTN: > 24
Former: Head of Treasury Division





Name: Evi Firmansyah
Position: Vice President Director / COO
Years in BTN: > 4
Former: Director PT Bank Ekspor Indonesia, Director PT
BNI Securities, Commissioner PT Bank Bumiputera Tbk
and Executive Director PT Danareksa (Persero) Tbk





Name: Irman A. Zahiruddin
Position: Managing Director / Head of Consumer Banking
Years in BTN: > 4
Former: Director Consumer Group PT Bank Permata Tbk,
Director GE Capital, Director PT GE Astra Finance, Card
Area Director Citibank NA – East Indonesia





Name: Sunarwa
Position: Managing Director / CRO
Years in BTN: > 27
Former: Head of Risk Management Division, Head of
Human Resources and Head of IT Division


Name: Purwadi
Position: Managing Director / Head of Commercial
Banking
Years in BTN: > 27
Former: Head of Credit Management and Policy Division
and Head of Branches



Average of 26 years of industry experience and 19 years in BTN
26
6 Experienced management team (cont’d)
Board of Commissioners









Name: Zaki Baridwan
Position: President Commissionner - Independent
Years in BTN: 4
Former: President Commissioner PT Bank BNI Tbk, was Dean Faculty
of Economics Gadjah Mada University and Director of Graduate
Program.
Name: Subarjo Joyosumarto
Position: Commissioner – Independent
Years in BTN: 4
Present: President Director Indonesia’s Banking Development Institution
Former: Executive Director The South East Asia Central Banks
Research & Training Centre and Deputy Governor of Bank Indonesia










Name: Mulabasa Hutabarat
Position: Commissioner
Years in BTN: 4
Present: Head of Pension Fund Bureau Bapepam-LK of Ministry of
Finance Republic of Indonesia
Former: Commissioner of PT Pelindo and Head of Organizing
Committee of Recapitalized Bank Monitoring Team
Name: Deswandhy Agusman
Position: Commissioner – Independent
Years in BTN: 2
Present: Expert Advisor of PNM Investment Management
Former: Commissioner of Bank Permata and Commissioner of Bank BRI
Note: Annual General Meeting of Shareholders on 19 April 2012 approved to appoint Sahala Lumban Gaol and Dwijanti Tjahjaningsih as Commissioners. The appointment is subject to Bank Indonesia’s approval,
based on result of Fit and Proper Test.
27
6 Experienced management team (cont’d)
Management initiatives
Achievements

Successfully listed BTN on the Indonesia Stock Exchange in 2009

Pioneered mortgage securitization in Indonesia
− Issued first ever mortgage backed security (MBS) in Feb 2009
− Since then, has issued three further series of residential MBS, raising IDR1,953 billion (US$206 million)

ISO 9001:2008: Mortgage Processing (Home Loan Facilities (KPR) and Apartment Facilities (KPA) Non Subsidy Ready Stock) from application to loan
disbursement on 9 January 2012

Successfully increased non-subsidized mortgages from IDR12,482bn in 2009 to IDR26,384bn in September 2012

Successfully increased non-housing loans from 6.4% of loan portfolio in 2009 to 13.7% in September 2012

One of the most active banks in the Indonesian bond issuance market
Net income growth
ROE1
21.4%
19.6%
18.2%
16.6%
916
402
430
490
2007
2008
2009
2010
17.7%
1,119
2011
Source: Company presentation and filings.
(1)
Calculated from net profit/average Tier 1 capital based on Bank Indonesia regulation.
28
Key strategies
1
Widen distribution reach
Open cash outlets in post offices with
linkages to increase cross-selling
Improved service standard
Increase cross selling to existing mortgage
customers
Increase wholesale funding through bond
issuance and mortgage securitization





4



Increase third party funding and reduce
maturity mismatch
2

5


6
Support growth of Sharia business




Introduce new products and features
Open new Sharia branches and Sharia
channeling outlets
Increase employee headcount of Sharia
business



Continue to improve risk management
capabilities
Standardize loan origination and
underwriting processes through the “iLoan”
system
Strengthening collection management
through the “iColl” system
Refining risk management and monitoring
process

Increase focus on non-subsidized mortgage
to more affluent borrowers
Increase portion of non-housing related
loans to enjoy higher margins (capped at
15% of portfolio)

Increase fee-based revenue
Continue growing cards and electronic
banking businesses
Developing services such as remittance
services and payment point services
Grow priority banking and bancassurance
businesses
3
Increase higher margin loans
Strengthen intrapreneurship and
organizational development
Strengthen performance-based measures
and training programs
Implement balanced scorecard
Improve recruitment strategy by developing
a Human Capital Information System
(“iHICS”)
Continue to invest in information technology
29
Key investment highlights – recap
1
Well regarded franchise and the
largest mortgage provider in
Indonesia
2
6
Sustained market leadership due to
unique competitive advantages
Experienced management team
3
5
Strong asset quality and relatively
low-risk business model
Strong growth potential
4
Extensive distribution network
30
3. ADDITIONAL FINANCIAL
INFORMATION
31
Financials
Financial highlights
2009
Dec
Total asset
Total loan & financing (gross)
Deposits from customers
Equity
Net profit
Basic earnings per share (IDR)
CAR (Tier 1)
CAR (BI)
NPL (gross)
NPL (net)
2010
Dec
58,448
40,733
40,215
5,393
490
76
20.4%
21.5%
3.4%
2.8%
2009
Dec
Net profit
Basic earning per share (IDR)
Net interest margin
Cost to income ratio
(1)
(2)
(3)
Return on equity
(4)
Return on assets
Source:
(1)
(2)
(3)
(4)
506
76
4.6%
68.7%
14.5%
1.5%
14.2%
1.0%
2011
Dec
68,386
51,550
47,546
6,447
916
105
15.8%
16.7%
3.3%
2.7%
2010
Dec
916
105
6.0%
58.3%
16.6%
2.1%
15.6%
1.5%
89,121
63,564
61,970
7,322
1,119
127
14.2%
15.0%
2.8%
2.2%
2011
Dec
1,119
127
5.8%
58.4%
17.7%
2.0%
16.4%
1.5%
2009 - 2011
CAGR
48.7%
29.3%
NA
NA
NA
NA
NA
NA
2009 - 2011
CAGR
23.5%
24.9%
24.1%
16.5%
51.1%
29.3%
NA
NA
NA
NA
2011
Sep
2012
Sep
98,756
76,566
69,212
8,120
1,021
116
14.4%
15.2%
3.7%
2.5%
2012
Sep
704
80
5.5%
63.6%
15.0%
1.8%
14.0%
1.3%
1,021
116
6.0%
56.4%
19.1%
2.0%
17.6%
1.5%
Company information.
Calculated based on net profit/average Tier 1 capital based on Bank Indonesia regulation.
Calculated based on income before income tax (include tax benefit and extraordinary item)/ average total assets based on Bank Indonesia regulation.
Unaudited ROE based on net profit / average balance of total equity, where the average total equity is calculated based on the average of the balance on the last day of each month during the relevant period.
Unaudited ROA based on net profit / average balance of total assets, where the average total assets is calculated based on the average of the balance on the last day of each month during the relevant period.
32
Financials (cont’d)
Income statement highlights
(in IDR billions)
Net profit
Basic earning per share (IDR)
Net interest margin
Cost to income ratio
(2)
(3)
(4)
Return on equity
(5)
Source:
Company
information.
Return
on assets
Source:
(1)
(2)
(3)
(4)
2009
2010
2011
2009 - 2011
2011
2012
Dec
Dec
Dec
CAGR
Sep
Sep
506
916
1,119
48.7%
704
1,021
76
105
127
29.3%
80
116
4.6%
6.0%
5.8%
NA
5.5%
6.0%
68.7%
58.3%
58.4%
NA
63.6%
56.4%
19.1%
14.5%
16.6%
17.7%
NA
15.0%
1.5%
2.1%
2.0%
NA
1.8%
2.0%
14.2%
15.6%
16.4%
NA
14.0%
17.6%
1.0%
1.5%
1.5%
NA
1.3%
1.5%
Company information.
Calculated based on net profit/average Tier 1 capital based on Bank Indonesia regulation.
Calculated based on income before income tax (include tax benefit and extraordinary item)/ average total assets based on Bank Indonesia regulation.
Unaudited ROE based on net profit / average balance of total equity, where the average total equity is calculated based on the average of the balance on the last day of each month during the relevant period.
Unaudited ROA based on net profit / average balance of total assets, where the average total assets is calculated based on the average of the balance on the last day of each month during the relevant period.
33
Balance sheet highlights
(in IDR billions)
2009
Dec
Total assets
2010
Dec
2011
Dec
2009 - 2011
CAGR
2012
Sep
58,448
68,386
89,121
23.5%
98,756
Placement with Bank Indonesia and other banks
2,665
2,372
9,778
91.5%
4,424
Securities
2,951
928
734
(50.1%)
736
Government bonds
7,380
7,193
7,107
(1.9%)
7,689
40,733
51,550
63,564
24.9%
76,566
Premises and equipment
1,237
1,451
1,497
10.0%
1,502
Deposits from customers
40,215
47,546
61,970
24.1%
69,212
Securities sold under repurchase agreements
3,565
3,464
4,450
11.7%
3,335
Securities issued
3,222
4,140
5,437
29.9%
7,136
Equity
5,393
6,447
7,322
16.5%
8,120
Loans and sharia financing/receivables
34
Loan composition
2009
2010
2011
CAGR
2012
Dec
Dec
Dec
2009 - 2011
Sep
Housing loans
38,145
46,710
55,805
21.0%
66,088
19,088
21,945
25,804
16.3%
25,652
12,482
15,635
18,611
22.1%
26,384
Other housing
2,783
3,611
4,199
22.8%
5,236
Construction loans
3,792
5,519
7,191
37.7%
8,816
Non-housing loans
2,588
4,840
7,759
73.2%
10,478
687
1,398
1,463
45.9%
1,647
Consumer loans
Commercial loans
Total loans
1,901
3,442
6,296
82.0%
8,831
40,733
51,550
63,564
24.9%
76,566
2009
Dec
Housing loans
Other housing
Construction loans
Non-housing loans
Consumer loans
Commercial loans
Total loans
2010
Dec
93.6%
46.9%
30.6%
6.8%
9.3%
6.4%
1.7%
4.7%
100.0%
2011
Dec
90.6%
42.6%
30.3%
7.0%
10.7%
9.4%
2.7%
6.7%
100.0%
2012
Sep
87.8%
40.6%
29.3%
6.6%
11.3%
12.2%
2.3%
9.9%
100.0%
86.3%
33.5%
34.5%
6.8%
11.5%
13.7%
2.2%
11.5%
100.0%
35
Loan performance and gross NPL breakdown
2010
Dec
2009
Dec
Current
Special mentioned
Performing loans
Substandard
Doubtful
Loss
Non performing loans
Total loans
NPL (gross)
NPL (net)
34,326
5,037
39,363
120
183
1,067
1,370
40,733
3.4%
2.8%
2009
Dec
Housing loans
Other housing
Construction loans
Non-housing loans
Consumer loans
Commercial loans
Total loans
2011
Dec
43,215
6,653
49,868
153
227
1,302
1,682
51,550
54,051
7,769
61,820
177
199
1,368
1,744
63,564
3.3%
2.7%
2.7%
2.2%
2010
Dec
3.3%
3.8%
2.8%
3.2%
2.8%
3.7%
6.3%
2.7%
3.4%
2012
Sep
2011
Dec
3.2%
3.8%
2.7%
2.6%
2.7%
4.2%
1.5%
5.3%
3.3%
63,637
10,110
73,747
450
625
1,745
2,819
76,566
3.7%
2.5%
2012
Sep
2.7%
2.3%
2.8%
2.8%
3.5%
3.1%
1.2%
3.6%
2.7%
3.5%
3.5%
3.0%
3.3%
4.8%
5.0%
2.1%
5.5%
3.7%
36
Ratings
Corporate rating
Bond
idAA
idAA
Stable
National long term
Bonds
AA(idn)
AA(idn)
Stable
Bank deposits - domestic
currency
Bank financial strength
Baseline credit assessment
Baa3/P-3
DBa3
Stable
37
4. APPENDIX
38
Subsidized Housing
•Standard houses located in Yogyakarta Indonesia that are covered by subsidized mortgages
• At least 36 m2 of building
• Maximum sale price of IDR88 million
39
39
Non Subsidized Housing
• Standard houses located in Bangil East Java Indonesia that are covered by non-subsidized mortgages
• Original LTV 80%
40
40
Non Subsidized Housing
• Standard houses located in West Jakarta Indonesia that are covered by non-subsidized mortgages
• Original LTV 80%
41
41
Thank You
42

1 - Bank BTN

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