Annual Report 2015 Growing with Our Customers Annual Report 2015 Growing with Our Customers Growing 2015 Annual Report Growing with Our Customers Theme Journey PT Bank Danamon Indonesia, Tbk. 2011 2012 Opening Opportunities Dedicated to Excellence & Membuka Peluang for Growth Delivering Value Menuju Hidup Lebih Baik Opening Opportunities for Growth In 2011, Danamon celebrated Banknotes that circulate within a its 55th anniversary. Over the community can be works of art with Membuka Peluang Menuju Hidup Lebih Baik course of 55 years, Danamon high aesthetic value. As a financial Opening Opportunities for Growth has evolved to become a modern institution, Danamon wishes to financial institution, serving appreciate the beauty of unique customers, from individual fonts, pictures, colors and printing customers and micro businesses techniques. Ideas and symbolic to large scale business. meanings depicted in banknotes are Laporan Tahunan 2011 Annual Report Laporan Tahunan presented through the Indonesian Laporan Tahunan Annual Report 2011 2011 saw achievements in Banknote Series and as featured in PT Bank Danamon Indonesia, Tbk. Menara Bank Danamon Jl. Prof. Dr. Satrio Kav. E-IV No. 6 Laporan Tahunan many sectors, serving as the a number of Danamon’s corporate Mega Kuningan, Jakarta 12950, Indonesia Annual Report 2011 Tel. 62 21 5799 1001-03 Fax. 62 21 5799 1160-61 PT Bank Danamon Indonesia, Tbk. www.danamon.co.id foundation for the next cycle materials. of growth for Danamon. Such achievements open the way for Danamon to increase its presence and open up more opportunities towards for better living. 2013 PT Bank Danamon Indonesia, Tbk. 2014 Annual Report 2014Enhancing Our PT Bank Danamon Indonesia, Tbk. Managing Challenges, Capability to Reach Transforming for Out and Serve for Managing Challenges, Transforming Sustainability Danamon is able to produce Sustainability Danamon relies on its wide a strong financial results to network, services and products, face the macro-economic all in a synergy with Adira Finance, uncertainty in the future. Adira Insurance, and Adira Kredit. Danamon implements a business In accord with its vision Annual Report 2014 approach founded on prudence and mission, Danamon and efficiency, adopting corporate Managing Challenges, Transforming for continuously improves its governance practice at international service quality in order to 2014 Annual Report standards. Danamon closed 2014 in PT Bank Danamon Indonesia, Tbk. Menara Bank Danamon Jl. maintainProf. Dr. Satrio Kav. E-IV No. 6 customer loyalty. a strong position. Mega Kuningan, Jakarta 12950, Indonesia Tel. 62 21 5799 1001-03 Fax. 62 21 5799 1160-61 www.danamon.co.id Sustainability Aware of the challenges ahead, Danamon continues to transform its business model to increase productivity and sustainable performance. Annual Report 2015 2015 Growing with Our Customers Danamon’s success lies in the hands of customers. At all times, we conduct business with customers as the main focus, in line with our vision: “We care and enable millions to prosper.” Having customers as our utmost priority is also embedded in the Danamon’s mission: “A customer centric organization covering all customer segments, each with a unique value preposition, centered on sales and service excellence, supported by world class technology.” Danamon ended 2015 by continuing a business model transformation to Growing with Our further increase productivity and performance in a very challenging year. We believe that our short, medium and long term initiatives will provide a solid Customers platform for future growth. “Printed from recycled paper manufactured by Danamon’s recycling partner, “Printed from recycled paper manufactured by Danamon’s recycling which used waste paper from Danamon’s operations” partner, which used waste paper from Danamon’s operations” Growing with our Customers Danamon’s success lies in the hands of customers. At all times, we conduct business having customers as our main focus in line with our vision: “We care and enable millions to prosper.” Having customers as our utmost priority is also embedded in one of Danamon’s missions: “A customer centric organization covering all customer segments, each with a unique value proposition, centered on sales and service excellence, supported by world class technology.” Danamon ended a challenging 2015 with a continuing transformation of its business model to further increase productivity and performance. We believe that our short, medium and long term initiatives will provide a solid platform for growth in the future. This Annual Report is available in Bahasa Indonesia and English. In case of any discrepancies, the Indonesian version shall prevail. 2015 Annual Report PT Bank Danamon Indonesia, Tbk. 1 Highlights Management Company Management Discussion Operational Review Corporate Governance Corporate Social Corporate Data Financial Reports Profile & Analysis Responsibility Statements Table of Contents Theme Journey 76 Shareholders’ Composition 1 Theme 78 Majority and Controlling Shareholders 79 Share Listing Chronology 5 Main Highlights 81 Other Securities Listing Chronology 82 Subsidiaries and Affiliated Companies 5 Performance Highlights 2015 85 Corporate Group Structure 6 Financial Highlights 86 Capital Markets Supporting Institutions 14 Share and Bond Highlights & Professionals 17 Securities Ratings 88 Awards & Certifications 17 Prime Lending Rate 18 Information on Bonds/Sukuk Management Discussion 24 Significant Events 2015 89 and Analysis 26 Management Report 90 2015 Economic and Banking Industry Review 26 Report of The Board of Commissioners 93 Business Segment Review 32 Board of Commisioners 94 Micro Banking 34 Report of the Board of Directors 97 Consumer Banking 44 Board of Directors 102 Small Medium Enterprise Banking 46 Board of Management (SME) 47 Syariah Supervisory Board 104 Syariah Banking 48 Report from the Syariah Supervisory 107 Wholesale Banking and Financial Board Institution 50 2015 – 2016 Plan and Strategy 109 Treasury and Capital Market Discussion 111 Transaction Banking 52 Responsibility for Annual Reporting (Cash Management, Trade Finance & Financial Supply Chain) 113 Subsidiary Business Review 54 Company Profile 113 Adira Finance 117 Adira Insurance 54 Danamon at a Glance 120 Adira Kredit 55 Corporate Identity 123 Marketing Strategy and Market Share 56 Brief History 127 Prospects and Business Development 58 Organization Structure Strategy 60 Vision, Mission, and Corporate Values 128 Financial Review 62 Operational Areas 128 Comprehensive Income 63 Board of Commisioners’ Profile 128 Profit/Loss 66 Independent Parties’ Profile 129 Income 67 Board of Directors’ Profile 131 Expenses 71 Board of Management’s Profile 133 Dupont Analysis 73 Syariah Supervisory Board’s Profile 133 Balance Sheet 74 Number of Employees 2 PT Bank Danamon Indonesia, Tbk. 2015 Annual Report Highlights Management Company Management Discussion Operational Review Corporate Governance Corporate Social Corporate Data Financial Reports Profile & Analysis Responsibility Statements 133 Assets 162 Changes of Tax Regulations In 2015 134 Current Assets 162 Accounting Standards Issued but Not 141 Liabilities Yet Effective 144 Cash Flows 166 Information of Business Continuity 145 Financial Ratios 145 Solvability & Collectibility 167 Operational Review 147 Capital 168 Risk Management 152 Capital Investment and Material Commitment For Capital Expenditures 249 Evaluation On Risk Management Effectiveness 152 Impact of Changes In Interest Rates and In Exchange Rate On The 250 Risk Management Activities Plan In Performance of Danamon 2016 153 Information On Significant Increase Or 252 Human Resources Decrease In Sales/Net Income 260 Information Technology 153 Achievement of Targets 2015 263 Operations 154 Target Plan 2016 155 Information and Material Fact That 266 Corporate Governance Occured After The Date of Accountant Report 267 Commitment To Implement Good 155 Events After The Date of The Financial Corporate Governance Statements 267 Reference For Implementation 155 Dividend Policy and The Allocation of 267 Corporate Governance Implementation Net Income Roadmap 156 Allocation of Net Income 268 Danamon’s Good Corporate Governance 156 Employee Share Ownership Program Focus In 2015 (ESOP/MSOP) 270 Corporate Governance Policy, 156 Information On Allocation of Public Structure and Implementation Offering 272 Danamon’s Corporate Governance 157 Material Information About Implementation Report Investment, Expansion, Divestment, 273 Shareholders Business Merger/Consolidation, 274 General Meeting of Shareholders (GMS) Acquisition or Debt/Capital The Board of Commissioners Restructuring 281 Committees Under The Board of 157 Material Information About 297 Commissioners Transactions That Contain Conflict of Interest And/or Related Party 330 The Board of Directors Transactions 352 Committees Under The Board of 158 Changes of Regulations With Directors Significant Impacts On The Company 359 Relations and Affiliated Party Transactions of The Board of Directors, Board of Commissioners and Majority Shareholders 2015 Annual Report PT Bank Danamon Indonesia, Tbk. 3 Highlights Management Company Management Discussion Operational Review Corporate Governance Corporate Social Corporate Data Financial Reports Profile & Analysis Responsibility Statements Table of Contents 360 Corporate Secretary 411 The Structure of Danamon Group 364 Compliance Function Financial Conglomeration 367 Implementation of Anti-Money 411 Structure of Share Ownership Laundering Program (AML)