ANALYST MEETING & PRESS CONFERENCE

ANALYST MEETING & PRESS CONFERENCE

FY2018 Ended 31 December 2018

Jakarta, 1 April 2019

Executive Summary 3

Financial Highlights 6 Business Growth Retail & Commercial 11 Development of Digital Banking 20 Corporate Outlook FY 2019 25 Bank Bukopin In Brief 30

TABLE OF CONTENTS

Analyst Meeting BBKP – FY2018

EXECUTIVE SUMMARY

3

• Raising capital through issuance of new shares to shareholders and public

through Limited Public Offering (“PUT IV”). KB Kookmin Bank (herein after referred to as “Kookmin”) came in as the Standby Buyer, which bought 2.563.000.000 shares at offered price Rp570/shares and settled on 27 July 2018. Upon completion of PUT IV, Kookmin became the second largest shareholder of PT Bank Bukopin Tbk (herein after referred to as “BBKP“ or “Company”) with 22% shares ownership.

• Kookmin is the largest South Korean bank, with total asset as of December 2018

approximately KRW 357 trillion (eq. IDR 4.466 trillion). Kookmin is the largest part of KB Financial Group (KBFG), one of the major holdings company and a leading financial services conglomerate in Korea.

• Following the PUT IV and Kookmin officially enlisted as one of the shareholder,

BBKP on 29 October 2018 conducted Extraordinary General Meeting of Shareholders (EGMS). To support the strengthening of risk management in BBKP, Kookmin appointed a Commissioner and a Director, which subjected to regulatory approvals.

• The year 2018 was closed with a stronger capital structures upon the completion

of PUT IV, with Capital Adequacy Ratio (CAR) improved to 13.41% and equity increased 27% to IDR 8.6 trillion.

STRENGTHENING CAPITAL

1


EXECUTIVE SUMMARY

4

IMPROVING ASSET QUALITY

• Optimizing internal business processes and strengthening synergies in improving

asset qualities and customers’ loan management NPL net improved to 4.75%, down 1.62% from December 2017.

• Focus on improving current asset to build stronger foundation for future growth. • Growth in business mainly in loan products with low capital charges, inline with

the company’s strategies in Consumer Loan expansion growth in Pension Loans and Joint Financing with our subsidiaries, Bukopin Finance (BuFin) and Bank Syariah Bukopin (BSB).

• Released several new products in 2018 to boost further growth in fee based

income, i.e. : digitalized payment point online bank (PPOB) through BukopinNet, digital banking platform through Wokee, a modified trade finance products to facilitate monthly big bills through Flexy Bill, etc.

• Reorganization to strengthen risk management and internal control, i.e. : 1) Business Director separated into 3 based on business segments

(Commercial, SME and Consumer); 2) Separation of Quality Assurance roles to strengthen risk management; 3) Appointment of Risk Director, separated from Compliance Director; 4) Integration of Operations and Information Technology (IT) Director

2


EXECUTIVE SUMMARY

5

OPTIMIZING EFFICIENCY

• Improving internal daily operations to optimize efficiency, which resulted in lower

overhead costs during 2018 : IDR 2.76 trillion or managed to save approximately IDR 206 billion (total OH cost down 6.9% than previous year). The savings in daily costs has brought the efficiency ratio, which indicated by BOPO, slightly improved to 98.4%.

• The efficiency in overhead costs mainly from the lower general and administrative costs which saved approximately IDR 137 billion or 7,8%, while the personnel cost slightly down 3.9%.

• Rebalancing the customers’ deposit structures, which resulted in increasing

proportions of low cost deposit products (current account and savings account). CASA improved to 39.3%.

• Well-managed liquidity amidst tightening market and challenging year for trading, with LCR well above minimum requirements and stood at 106% at year end, and LDR on moderate level of 86,2%.

• Within the same year in strengthening capital, improving NPL ratio and cost efficiency, the company managed to book double profit from last year, with the bank only (BBKP) profit before tax IDR 202 billion, or grew 113.8% from 2017.

3

FINANCIAL HIGHLIGHTS

FY 2018 ENDED 31 DECEMBER, 2018

Hotel Ritz-Carlton Pacific Place, Jakarta, 1 April 2019


Analyst Meeting BBKP – FY2018 7

BALANCE SHEET-1 (in billion Rupiah, otherwise stated)

BALANCE SHEET - ASSET

(Consolidated)

ACHIEVEMENTS YoY TREND

FY 2017 FY 2018

Cash 678 816 20,31%

Current Account on BI (Reserve) 4.618 4.031 (12,71%)

Current Account on Other Banks 479 803 67,62%

Placement at BI and Other Banks 9.563 6.355 (33,55%)

Securities 10.072 7.842 (22,14%)

Reverse Repo – net 1.129 1.001 (11,28%)

Derivative 4 0 (96,86%)

Disbursed Loans 72.632 66.444 (8,52%)

Provisions -2.153 -2.079 (3,42%)

Fixed Asset – Net 2.755 3.075 11,61%

Other Asset 6.192 6,913 11,64%

TOTAL ASSET 106.443 95.644 (10,15%)


LIABILITY & EQUITY (Consolidated)

ACHIEVEMENT YOY TREND

FY 2017 FY 2018

Current Liabilities 667 297 (55,52%)

Customers’ Deposit 88.586 76.150 (14,04%)

- Current Account 13.069 10.043 (23,15%)

- Savings Account 20.068 19.917 (0,75%)

- Time Deposit 55.450 46.190 (16,70%)

Placement from Other Banks 1.585 3.122 97,00%

Securities with Repurchase Agreement 3.389 1.607 (52,59%)

Acceptance Liabilities 170 135 (20,74%)

Received Loans 847 1.279 51,05%

Issued Subordinated Bonds 3.292 3.296 0,11%

Other Liabilities 1.084 1.049 1,46%

TOTAL LIABILITIES 99.684 87.049 -12,67%

Paid-Up Capital 1.120 1.376 22,91%

Additional Paid-Up Capital 1.724 2.924 69,60%

Fixed Asset Revaluation - Net 1.162 1.369 17,85%

General Reserve 2.712 2.945 8,58%

TOTAL EQUITY 6.759 8.594 27,16%

TOTAL LIABILITY AND EQUITY 106.443 95.644 -10,15%

BALANCE SHEET-2 (in billion Rupiah, otherwise stated)


INCOME STATEMENT (Consolidated)

ACHIEVEMENTS YoY TREND

FY 2017 FY 2018

Interest Income 9.623 7.981 (17,07%)

Interest Expenses (6.490) (5.388) (16,98%)

Net Interest Income 3.133 2.593 (17,24%)

Other Operating Income 767 784 2,11%

Overhead Cost (2.966) (2.760) (6,94%)

General and Administrative Cost (1.741) (1.604) (7,85%)

Personnel (1.225) (1.155) (5,65%)

Operating Profit 122 145 19,17%

Non Operating Income (Expense) 0 71 30174,58%

Profit Before Tax 122 216 77,59%

Profit After Tax 136 190 39,79%

INCOME STATEMENT (in billion Rupiah, otherwise stated)

9


FINANCIAL RATIOS (Bank Only) ACHIEVEMENT

YoY TREND FY 2017 FY 2018

PROFITABILITY

Return on Asset (ROA) 0,09% 0,22% 0,13%

Return on Earning (ROE) 1,85% 2,95% 1.10%

Net Interest Margin (NIM) 2,89% 2,83% (0,06%)

EFFICIENCY

BOPO 99,04% 98,41% (0,63%)

ASSETS QUALITY

NPL – Gross 8,54% 6,67% (1,87%)

NPL – Net 6,37% 4,75% (1,62%)

LIQUIDITY & CAPITAL

Loan to Deposit Ratio (LDR) 81,34% 86,18% 4,84%

Net Stable Funding Ratio (NSFR) - 106,75% -

Liquidity Coverage Ratio 206,00% 106,20% (99,80%)

Current Account to (CASA) 37,41% 39,34% 1,94%

Capital Adequacy Ratio (CAR) 10,52% 13,41% 2,89%

FINANCIAL RATIOS

BUSINESS GROWTH : RETAIL & COMMERCIAL




LOANS COMPOSITION

48.946

33.133

15.813

23.686

72.632

44.541

29.282

15.259

21.903

66.444

RETAILBUSINESS

SME CONSUMER COMMERCIALBUSINESS

TOTAL

FY 2017 FY 2018

Focus on improving internal business processes and customers’ loan management to ensure repayment compliance, improving and settlement on problematic loans efforts in lowering NPL

Selected growth on disbursing loan, mainly on products with low capital charges to maintain asset qualities in supporting improvement of NPL ratio and maintain healthy capital ratios

(in billion Rupiah, otherwise stated)

67,04%

32,96%

RETAIL BUSINESS

COMMERCIALBUSINESS

16,89%

17,55%

17,64%

47,92%

Trading

Service

Construction

Others

By Segments

By Sectors


ASSET QUALITIES

Dec-17 Dec-18

NPL Net NPL Gross CKPN

2.079

2.153

6,67%

8,54%

6,37%

4,75%

31,87% 31,31%

7,97%

28,85%

Service Trading Construction Others

The largest NPL proportion from several economic sectors : Service, Trade and Construction NPL risk in the scope of manageable and measurable Handling of NPLs has a structured action plan and optimistic that non-performing loans can be completed in

the following quarters The ratio of non-performing loans gradually declined as the implementation of structured action plans as a

manifestation of the company's commitment to improve the quality of productive assets

NPL COMPOSITION BY SECTOR

2018


39.34%

60,66% By

Products

CASA Time Deposit

88,6 T 76,2 T

33,1 T 30,0 T 55,5 T 46,2 T

2017 2018

CASA Trend

CASA Time Deposit

62,59%

39,34% 37,41%

60,66%

CUSTOMERS DEPOSIT COMPOSITION

CASA proportion in 2018 increased 1.94% to 39.34%, and will continuously growing as the company developing further the digital banking app (Wokee), renewing the Priority Banking, increasing transactional engagements, growing the Consumer Loan products and strengthening relationship management with the customers.

11.92%

9,07%

79,01%

By Sectors

SOE & Group

GovernmentRelated

Individu &PrivateCompany

68.18%

31,82%

By Segment

Retail Commercial


88,6 T 76,2 T

33,1 T 30,0 T 55,5 T 46,2 T

SOURCES OF FEE BASED INCOME

The fastest growing fee-based income sources in 2018 were : • Financial Service 61% to IDR 148 billion (Bank

guarantee, Trade finance, etc) • Public Service 2.9% to IDR 137 billion (E- Channel,

Administration, etc) Largest contributors by amount: • Credit Card IDR 232 billion • Treasury IDR 151 billion • Bank Guarantee IDR 75 billion

31,25% 20,26%

18,40%

19,93%

10,16%

Card & Merchant Treasury

Public Service Financial Service

Others

Digitalized version of Payment Point Online Bank (PPOB), by utilizing application go replace EDC, widening market shares, and lowering marketing and operational costs

Digital banking platform, an account on your phone to ease customers in opening other accounts, executing daily payments and transactions, suitable for the current mobile generations. Pay by QR Payment is available at > 3000 merchants.

Synergy with Financial Technology digital start-ups to collaborate in growing business, both through incubation or non-incubation. A co-working space available at Jl.Raden Saleh, Jakarta.

A modified trade finance product to accommodate customers’ big monthly payments (big bills), i.e. electricity, gasoline, water, etc.

2018


• Focus on growing consumer loans, mainly mortgage (KPR), vehicle (KPM) through joint financing with Bukopin Finance (BuFin), and pension loan with Bank Syariah Bukopin (BSB).

• Some business partner to support growth in KPR : refinancing from SMF, and partnership with major developers.

• Pension loans stood slightly down from previous year. In mid 2018, there was a rebalancing in pension loan portfolios approximately IDR 3 trillion to support temporary tighter liquidity. The pension loan then grew significantly more to close the year end near IDR 10 trillion. The company plan to grow pension loans in 2019 and continue to expand strategic alliances for pre-pension and pension loans.

CONSUMER LOANS PROPORTION

(in billion Rupiah, otherwise stated)

Some of Our Business Partners:

1190,221

2124,713

892,640

10748,60

856,722

Credit Card Mortgage (KPR)

Vehicle (KPM) Pension Loans

Others

2017

1115,324

1948,277

628,687

9795,850

1771,273

2018


PENSIONERS GROWTH

174.483

87.907

54452

28725 28230 17382

3755 3187 4537 1441

929.901

490.208 481255

87538 71755 69726 48669 33751 33074 45005

Bukopin Bukopin

6th largest pensioners from ASABRI

• BBKP maintain its position as 6th largest pensioners (from total provider 14 banks) from ASABRI at 17.382 , grew about 14% from 2017. The proportion was 4.19% from total ASABRI pensioners, with outstanding pension loan amounted IDR 40 billion.

• BBKP also maintain its position as 6th largest pensioners (from total provider 47 banks) from TASPEN at 69.726, grew about 9% from 2017. The proportion was 2.64% from total TASPEN pensioners, with outstanding pension loan amounted IDR 184 billion.

• Combined, BBKP stands at the 4th largest pensioners loan providers with 87.108, about 2% share from approximately 3 million total listed pensioners in TASPEN and ASABRI, with potentials to grow higher.

6th largest pensioners from TASPEN


3. Trade Finance

1. PLN Bill

Bukopin Finance Synergy Car Loan Bank Syariah Bukopin Synergy Pension Loan

Sales Joint Financing

Sinergy, Simplification dan Profit Optimization

Monthly

Pension

Payment

Collecting

Agent

Sales

Bank Syariah Bukopin Synergy Flexy Bill

6. Profit

Sharing

Potential Market

Car Loan

Flexy

Bill

Pension

Loan

Top 5 Pension Payment Bank 65.000

pension from TASPEN dan 16.000

ASABRI & 22.000 of pra-pension

Electricity payment PLN Rp 20T / month

Electricity payment PLN via Bank

Bukopin Rp 5T / month

High demand of automotive financing

Liquidity support for Bukopin Finance

SYNERGY WITH SUBSIDIARIES


43 Branch Offices

173 Sub-Branch Offices

104 Cash Offices

DISTRIBUTION CHANNELS

Digital banking app, payment by QR available at > 3000 merchants

>100.000 payment outlets supported by partnership with E-commerce and other online business partners as the collecting agent H2H

11 branches, 7 sub-branches 4 cash office s 97 sharia services 6 mobile cash services

40 branch offices

867 ATM in 51 cities

DEVELOPMENT OF DIGITAL BANKING




E-BANKING PLATFORMS

Internet Banking

Phone Banking

Bukopin Mobile

SMS Banking

Bukopin Net - PPOB

Digital Banking App - Wokee


WOKEE & BUKOPINNET – CURRENT

• Online registration • Account statement • Sub Account • Transfer • Payment • Transfer • Purchase • Card-less withdrawal • Split interest • Split bill • Pay contacts • Pay by QR • E-money

PFM • BukopinNet in partnership with

Collecting Agents (B2B) both in the system of H2H with E-commerce/online or PPOB Bukopin

• Potential for direct agents will be optimized with B2C expansion, to open more customers account and attract walk-in clients

• B2C breakthrough utilizing mobile app will boost fee based income


Video Banking For CDD Process

Integration with Credit Card and Conventional Saving Open API Wokee Services for third party Integration with Bukalapak for open account Personal Finance Manager with machine learning

Wokee Agents Banking

Application for payment point agents Bukopin : Public utilities payment

Various biller

Using virtual account

Fee based income

Easy access

Face recognition for credit consumer loan & operation

Interface for consumer car loan Self service banking

Connect with Liiv, KB Kookmin Bank’s digital banking app to accommodate Indonesia – Korea transfers

WOKEE & BUKOPINNET– NEXT PHASE


End-to end Ecosystem Connection

Market Access

Influence the system

Access to Coworking

Space

An Innovation center that redefines bankers of the future. A lab where creators, collaborators, developers shape the future of

financial industry. Focusing in certain segment such as Agri/Aquaculture, Logistic,

Social/Health and Tourism

Providing collaboration space area Access to Bukopin’s network Business investment funds Mentoring Payment gateway

On progress collaboration

Crowd funding agriculture through Tanifund from pre-pensions loan (as an investor)

Various collaborations

START-UP COLLABORATIONS

CORPORATE OUTLOOK

FY 2019




2018 Recovery & Building

Stronger Business

Foundation

2019

Retail Business Focus : Productivity,

Quality, and Business Process

2020

Retail Business

CORPORATE ROADMAP 2018-2020


CORPORATE UPDATE IN Q1-2019

• Final coupon payment and full proceed payment of Subordinated Bonds Phase I year 2012 amounted IDR 1,5 trillion on March 6, 2019 through Kustodian Sentral Efek Indonesia (KSEI). The subordinated bond was issued on March 6, 2012 with coupon rate at 9.25% and rated idA- (PEFINDO).

• Diversification of funding sources from capital

market, by preparing the issuance of asset backed securities with underlying assets pension loans (H1-2019) and mortgage (KPR) in H2-2019, with subjects to changes according to market progress and the company’s performances.


28

Loan Growth

8%

Allocation

Personal 76 %

Mortgage 12 %

Car Loan 12%

< 5 Billions 100 %

5-15 Billions 0 %

> 15 Billions 0 %

Replacement 0%

35%

65%

Deposit Growth

7,4%

Retail

Commercial 30%

70%

Consumer

SME

Commercial

CASA Growth proportion 62 % of all deposits

Time Deposit Growth proportion 38 %

Champion Products

Pension Loan

Pra Pension Loan

FLPP Mortgage

Payroll based loan

Flexy Bill

Flexy Retail

Flexi Health

Money Market Line

New Swamitra

Footprint Competitive Process &

Credit Scoring Strategic Partners Champion Product

Retail Business Key Enabler

CORPORATE PLAN 2019


Productivity

Product and Program

Outlet and Electronic Channel

Human Resources

Quality

Business Process

Relaunch, rebranding & bundling

Outlet productivity:

Recompositing employee ratio

Performance based culture

Focus on retail segment deposit and loan

Increase medium to long term deposit category

New paradigm in credit analysts

Continuously decreasing credit collectability 2 (special mention) & Non Performing Loan

Accelerate sales of foreclosed assets

Competitive loan process and credit scoring

Strengthen operational aspect in loan processing

Simplification & digitization process

Selective investment and overhead cost efficiency

Strong Deposit Structure

NPL and Foreclosed Asset

Focus on retail segment

Prudent and Competitive

Cost and Investment Control

CORPORATE STRATEGIES 2019

BANK BUKOPIN IN BRIEF




COMPANY PROFILE

Company Name : PT Bank Bukopin Tbk Brand : Bank Bukopin Business : Banking Service Date of Establishment : July 10, 1970 Legal Basis of Establishment : Decision Letter No. 13/Dirjen/Kop/70 of the Directorate General for Cooperatives on July 10, 1970. The Bank started its commercial operations as a cooperative bank in Indonesia on March 16, 1971 upon the approval of the Ministry of Finance in its Decision Letter No. Kep-078/DDK/II/3/1971 dated March 16, 1971 Date of Listing in the IDX : July 10, 2016 Shares Code : BBKP SWIFT Code : BBUKIDJA Corporate Rating : idA-, outlook stable (PEFINDO) Head Office : Gedung Bank Bukopin Jalan M.T. Haryono Kav. 50-51 Jakarta Selatan 12770 Phone : +6221-7988266, 7989837 Fax : +6221-7980625, 7980238, 7980244 Website : www.bukopin.co.id Call Center, Email Customer Care : Halo Bukopin 14005, [email protected] Corporate Secretary : Ariesyanti Budi Pratiwi E-mail Corporate Secretary : [email protected]


CORPORATE MILESTONES


PT Bosowa Corporindo

30,0%

KOPELINDO 18,1%

Government

of RI [PERCENTA

GE]

Public [PERCENTA

GE]

PT Bosowa Corporindo is a private national company established in South Sulawesi, Indonesia, with 6 main area of business : automotive, cement, mining and energy, financial services, real estate and education. Bosowa also runs some other projects, i.e. media, sports and agriculture

KB Kookmin Bank is the largest bank in Korea which dominate the mortgage market and digital banking. Officially listed as the second largest shareholder since July 27, 2018 through the Limited Public Offering (LPO) IV

Kopelindo is the cooperative institution of the national logistics company’s employee and pensioners

Government of Republic of Indonesia

PT Bosowa Corporindo

23,4%

KB Kookmin

Bank 22,0%

KOPELINDO 11,5%

Government of RI

[PERCENTAGE]

Public [PERCENTA

GE]

Shareholders Composition After LPO IV

SHAREHOLDERS COMPOSITION Shareholders Composition Before LPO IV


As of December 2017, Bank Bukopin does not have any affiliates, joint venture companies, or special purpose vehicle (SPV)

Financing, leasing and multi-finance company, with total asset IDR 803 billion as of December 2018

Sharia banking service with total asset IDR 6.3 trillion as of December 2018

COMPANY GROUP STRUCTURES


BOARD OF COMMISSIONERS

Deddy S.A. Kodir Commissioner

Mustafa Abubakar President Commissioner –

Independent

Susiwijono Commissioner

M. Subhan Aksa Commissioner

Margustienny Oemar Ali Independent

Commissioner

Karya Budiana Independent

Commissioner

Mulia P. Nasution Independent

Commissioner

Jae Hong Park* Commissioner

*)Effective upon approval from OJK within compliance of POJK No.27/POJK.03/2015, No.37/POJK.03/2017, and/or other relevant regulations


DIRECTORS

Eko R Gindo President Director & CEO

Mikrowa Kirana Business Director - Commercial

Heri Purwanto Business Director – Small

Medium Enterprises (SME)

M. Rachmat Kaimuddin Finance & Planning Director

Hari Wurianto Compliance & Risk Director

Adhi Brahmantya Operation & IT Director

Rivan A. Purwantono Business Director -

Consumer

Jong-Hwan Han*)

Director

*)Effective upon approval from OJK within compliance of POJK No.27/POJK.03/2015, No.37/POJK.03/2017, and/or other relevant regulations

PT BANK BUKOPIN Tbk

INVESTOR RELATIONS E-mail : [email protected]

Telephone: (021) 7988266 Ext. 1166, 1108 Fax: (021) 7980625

www.bukopin.co.id

Disclaimer : This presentation material was prepared by PT Bank Bukopin Tbk (hereinafter referred to as "Bank Bukopin" or "Company") independently and circulated for general information purposes only. This is not intended for certain people who might receive this material. No guarantee (expressed or implied) is made for the accuracy or completeness of the information. Some of the statements contained in this document contain the achievement of reports relating to financial conditions, business and business results, and related plans and objectives. This material does not directly or exclusively relate to facts in the past. This material also does not directly or exclusively reflect both plans, expectations, assumptions and beliefs about events that will occur in the future of the Company. There are uncertainties, known and unknown risks from this report that can cause results, performance or events to differ materially from the original report. This is not just a statement, and must not be interpreted as a representation of the Company's future performance. Readers are advised to look at all the statements listed here carefully.

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