Difference in value from restructuring transactions of entities under common control continued

146 Adaro Energy Annual Report 2008 www.adaro.com Adaro in Summary From Us to You Running Adaro Management Report Owning Adaro PT ADARO ENERGY Tbk Schedule 514 FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated

3. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES continued

b. Acquisition of PT Alam Tri Abadi continued

The restructuring transaction of 15 July 2008 was accounted for using the pooling-of-interests method as required under SFAS No. 38 Revised 2004, since the Company and ATA are entities under common control. The details of the book value of net assets acquired and the difference arising from this restructuring transaction of entities under common control are as follows: 2008 Purchase consideration through cash payment 356,000 Book value of net assets acquired 143,886 Difference in value from restructuring transactions of entities under common control 212,114

c. Acquisition of PT Makmur Sejahtera Wisesa

On 15 January 2008, MSW increased its issued and paid in capital through the issuance of 887,405 new shares with a par value of Rp 50,000 full amount per share. The Company acquired 443,703 of the new shares issued amounting to Rp 22,185, and the Company’s interest in MSW increased from 45.00 to 49.80. On 24 January 2008, the Company acquired an additional 49.80 interest in MSW through purchases from PT Saratoga Sentra Business “SSB” and PCI, each of 24.90 for Rp 11,524.50, and the Company’s interest in MSW increased from 49.80 to 99.60. For this acquisition, the Company paid Rp 864 in cash and issued new shares in the Company amounting to Rp 22,185. The restructuring transactions of January 2008 were accounted for using the pooling -of-interests method as required under SFAS No. 38 Revised 2004, since the Company, SSB and PCI are entities under common control. The details of the book value of the net assets acquired and the difference arising from restructuring transaction of entities under common control are as follows: 2008 Purchase consideration through cash payment 23,049 Purchase consideration through exchange of the Company’s new shares 22,185 45,234 Book value of net assets acquired 43,193 Difference in value from restructuring transactions of entities under common control 2,041 Difference in value from restructuring transactions of entities under common control - 2005 212 Difference in value from restructuring transactions of entities under common control - 2008 2,041 Difference in value from restructuring transactions of entities under common control 2,253 On 26 September 2008, MSW increased its issued and paid in capital through the issuance of 3,496,000 new shares with a par value of Rp 50,000 full amount per share. The Company acquired all the new shares issued, and the Company’s interest in MSW increased from 99.60 to 99.91. The details of the net assets acquired and goodwill are as follows: 2008 Purchase consideration through cash payment 174,800 Net assets acquired 174,782 Goodwill 18 On 23 December 2008, MSW increased its issued and paid in capital through the issuance of 437,535 new shares with a par value of Rp 50,000 full amount per share. The Company acquired 437,535 of the new shares issued amounting to Rp 21,877, and the Company’s interest in MSW increased from 99.91 to 99.92. 2008 Purchase consideration through cash payment 21,877 Net assets acquired 21,877 Goodwill -