2012 Indonesia Knowledge Festival

AGENDA• BACKGROUND

o Our 56 Years Journey as a Knowledge Management Companyo The Synergy of 3 Strengthso One Bank, One Vision

• MERGER PROCESSo A Merger for Growtho Merger Success Storyo Merger Architectureo Strategy of Combining Cultures

• OUTCOMESo Progress & Outcomeo Financial Progresso Branch Networko Testimony & Recognition

o Training Sessiono Managing our Talento Command Center & Helpdesko Senior Management Walkabout & CEO Visit

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BACKGROUND

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56 Years Journey as a Knowledge Management Company

u Completed re-branding to PT Bank CIMB Niaga Tbku Effective merger between CIMB Niaga and LippoBank

Established as PT Bank Niaga

2008

u Merger with:• Bank Agung – 1973• Bank Tabungan Bandung – 1978• Bank Amerta – 1983

2002

2005

2004

First Indonesian bank to provide ATM serviceInitial Public Offering (IPO)

CIMB Group (previously Commerce Asset-Holding Berhad) purchased 50.99% of Bank Niaga shares from BPPN

Launched Sharia Banking

u Rights Issue Rp1.3 tiou Issued USD100mio subdebt

1955

2009u Strengthened position as fifth-largest bank in Indonesiau Completed system and operational integration (SPD 1)

u Established Micro Finance unit under the brand “Mikro Laju”

19871973 –1983

1989

2006

Issued USD200mio subdebt

2010

u YoY, Net Profit increased by 62% to Rp2,5 tio, Total Loan grew by 26% to Rp104.9 tio, Total Deposits grew by 37% to Rp117.8 tio

u Rated AAA (idn) by Fitch Ratingsu Issued a total of Rp2.98 tio subdebts, Rights Issue Rp1.5 tio

The Most Trusted Company 2010

CGPI – IICG

Best Responsibility of The Boards 2010 (IICD )

The Best GCG Overall 2009 (IICD )

Annual Report Award 2004 – 2010

2011

u Net Profit increased 25% YoY to Rp3.2 tio, Total Loan grew 20% to Rp125.7 tiou Launched 2-Wheeler Financing called Motor laju

u Paid Rp200 bio interim dividendsu Issued Rp1.5 tio Senior Debt

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The Synergy of 3 Strengths

The merger of LippoBank into CIMB Niaga represents the single greatest leap forwardto occur in Southeast Asia’s banking sector in recent times. Through the hard work ofmanagement and employees, the steadfast support of shareholders and the diligentcooperation of Indonesian regulating bodies, CIMB Niaga has successfully integrated allof its Banking Systems and Operations.

One Bank, One Vision

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One Bank, One Vision

Humanistic – Competitive

“Winning Culture with Caring of people”

…the desired culture for CIMB Niaga is described as…

…expectations for being supportive, constructive, and open to influence and challenge in their dealings with one other. People are also expected to think regionally and act locally, set a high standard, achieve superior performance, maintain high integrity at all respects,

and rewards will be gained accordingly.

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One Bank, One Vision

MERGER PROCESS

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A Merger for Growth

The merger of Bank Niaga and LippoBank is a significant milestone for CIMBGroup as it was a major step in realizing our regionalization agenda.

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A Merger for Growth

•Serving our customers better:•5th largest bank in Indonesia•Total assets over Idr.100 trillion•Total loans over Idr.72 trillion•Total Deposits Idr.82 trillion•Better products, prices and services

Financial Scalability

•Broadening our range of products•comprehensive product portfolio with combined strengths of corporate lending, mortgages, SMEloans, and payment processing system that offers attractive growth opportunities.

Products & Capabilities

•Providing customers with better access to CIMB Niaga•the 5th largest bank in Indonesia in terms of branch network and ATM channels. This will expand us to reach out to customers better.

Wider Distribution Network

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Merger Success Story

CIMB Niaga is the first bank in Southeast Asia to achieve full integration of all IT and operation platform functions using a single “big bang” business and IT integration

approach.

The vast majority of employees supported the merger. Continuous workshops, well conceived communication resources as well as a range of socialization programs to embrace employees from all levels resulted in 97% of the bank’s employees opting to join with the merged bank.

All banking systems and operations were fully integrated within 10 months; just over 4 months ahead of schedule.

The majority of customers have stayed with the merged bank conforming to target patterns set by the CIMB Niaga anti-attrition team during early merger planning. Customers now have better access through the expanded distribution network. Additionally, they have a broader range of products and services to choose from. The merger has greatly enhanced the Bank’s financial scale, widening opportunities for all stakeholders.

The merger has been steadfastly supported by both Indonesian and Malaysian regulatory bodies.

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Merger Architecture

The ISC’s terms of reference are as follows:• To review all decisions on business continuity and integration

planning• To monitor the base business budget approval• To monitor the integration progress and provide updates to the IGC• To dissolve post SPD1 stabilization.

The IPO’s terms of reference are as follows:• To share methodology, approach and templates with ITF teams.• To work with ITF teams to define the Target Operating Model (TOM) and

synergy realization.• To manage inter-dependencies and issue resolution across teams.• To be responsible for tracking and ensuring that merger milestones are

met and that the overall quality of work meets expectations.• To provide bi-weekly status reporting to the ISC.

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Merger Architecture

The internal communication process ensures that staff are regularly updated on all merger happenings.Communication media include the Neptune Intranet Portal, RoadShows, Newsletter, Emails and Focus Groups. Neptune portal serves as a key platform indisseminating merger-related information to all staff members. We actively update the Neptune portal withcontests, FAQs etc.

Management team from both Bank Niaga and Bank Lippo have completed nationwide HRroadshows to explain the merger rationale to staff and encourage their continued participation andsupport for new bank.

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Strategy of Combining Cultures

Humanistic-Competitive

Concern on People

Winning Culture

Concerned with corporate relations and code of conduct

/ strong ethics

Advanced level of competition and high spirit to always be a

winner

“Humanistic Competitive” Culture

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Cultural Integration Steps• began with a high commitment provided by a team of

directors1• conducted in-depth survey of what is required; culture

and workplace behavior2• Blend employees in all branches to avoid dominance of

one particular bank3• chose an agent of change for the corporate culture

integration, especially for branch manager4• formed a task force for harmonization according to

their respective areas5• Massively conducted socialization of new culture6• Established an atmosphere that is conducive to

cultural integration, include continue expansion7

1. Organized introduction and ‘ice-breaker’ sessions for ex-Niaga andex-Lippo employees in the merged bank. 2. Conducted bank-wideevents for employees. Each division presented their Target OperatingModel to other divisions highlighting areas which will have a bank-wide impact. 3. Organized friendly golf tournament betweenLippoBank and Bank Niaga on March 15, 2008 at the Imperial GolfClub, with the objective of promoting rapport between both parties.4. Client facing employees were invited to a brand socialization event,to educate them on the new brand.

Strategy of Combining Cultures

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Training SessionThe greater challenge interms of training wasreally to ensure that ex-LippoBank operations staffwere able to adapt to thenew front end and backend systems. Trainingwould therefore need tobe provided to all FrontOffice and Back Office stafffrom all ex-LippoBankbranches (404 branches).

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Training Session

By Single Platform Day-1 (SPD1) over3,000 CIMB Niaga employees hadreceived some form of SPD1 relatedtraining.

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Training was conducted throughout CIMB Niaga’s branch networkas well as at the Gunung Geulis Learning Center. Topics for trainingincluded: branch systems, newbusiness processes, transactionsystems and e-banking systems.

Training Session

Over the course of the merger integration process, severalworkshops were conducted formiddle management, which aimed to provide a clearer understanding of the full range of synergies and benefits for all staff. The main theme for these sessions was “Change.” External speaker Rhenald Kasali, PhD served as the presenter

Managing Our TalentOne of the fundamental priorities for the merger is talent management – placing the right staff with the rightcompetency in the right job. The current staff strength for Bank Niaga and Bank Lippo exceeds 11,000 employeesacross levels. In alignment to the TOM and enhanced reporting structure, HR has finalized the staff gap analysisand migration plan with respective ITF teams.

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Command Center & HelpdeskThe Command Center & Helpdesk served as the central nervous system for the SPD1 cutover

through which any problems could be monitored and resolved.

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Command Center & HelpdeskAn upbeat working environment at the BranchMerger Helpdesk at Griya Niaga1, Bintaro, Tangerang.

Activities in preparation for SPD1 were centralized at the IT Command Center located at Griya Niaga 1, Bintaro, Tangerang.

Senior Management Walkabout & CEO Visit

A Senior Management Walkabout was conducted in several areas to socialize integration process achievements. Inclusive of these events were visits by CIMB Niaga CEO, Mr. Arwin Rasyid to the IT Command Center & Helpdesk.

OUTCOMES

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Progress and OutcomesEvent Highlights

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Progress and Outcomes

Event Highlights

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Financial Progress

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Dec’10Dec’11

Financial Progress

28Dec’10Dec’11

Financial Progress

29Dec’10Dec’11

PBT (Rp.billion)

7,780

6,402 6,333

3,314

1,481 1,470 1,057 1,025 737 640

BRI BCA Mandiri Danamon BNI Panin Lippo Niaga Permata BTN

Before Merger - 2007

# 8# 7

18,756

16,512

13,619

7,461

4,612 4,392 2,736

1,548 1,522 985

BRI Mandiri BCA BNI Danamon CIMB Niaga Panin Permata BTN BII

2008 2010 2009 2011

Post Merger - 2011

# 6

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Testimony

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Recognition

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Throughout 2011, CIMB Niaga awarded by 33 recognitions locally and internationally in various categories, for its reputation

Recognition

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Recognition

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Recognition

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Conclusion

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1. Establishing an enterprise knolwedgeCulture in legal and operational merger through CIMB Group support and involvement.

2. Senior management commitment in developing knowledge based resource in every stage of the merger

3. Encouraging innovation process to create champion products and solutions.

4. Maximizing the value of intellectual capital from all stakeholder

Our success story of the merger become the strong foundation for CIMB Niaga toward a better knowledge company in “ASEAN FOR YOU” era.