9 8 Adaro Energy 2008 Annual Report English

Adaro Energy Annual Report 2008 www.adaro.com 59 Adaro Energy conducts technical marketing throughout the world. Highly qualiied coal combustion consultants retained by Adaro travel to all customers advising on how to optimize their boilers and operations when using Envirocoal. Aside from consistent quality, reliability and dependability, this after sales service and attention provides a top class customer service. Corporate Structure Pre-IPO Structure In mid 2005, an international and local consortium of investors acquired 100 of the shares of Adaro, IBT, Coaltrade and certain intermediate holding companies. Former shareholders, New Hope Corporation Ltd., Consolidated Bulk Handling Pty. Ltd., Andrew Holdings Pty Ltd. and Beheer- en Belegging-smaatchappij Jydeno B.V., along with some of the Indonesian shareholders who joined the international consortium of investors, sold 100.0 of their respective interests to the international consortium. The inancing of the acquisition involved a US 923 million debt inancing senior credit facility and mezzanine, both extended to Arindo Global Netherlands B.V and guaranteed by the directly or indirectly acquired companies, and a 50 million equity inancing. Through an intercompany loan structure, the proceeds from the senior credit facility and the mezzanine facility were lent to the investors to inance the acquisition. This acquisition inancing has been reinanced several times since December 2005, which involved a combination of US400 million 8.5 5 years senior secured notes and US 200 million senior credit facility, until December 2007, when a syndicated term loan and revolving credit facilities of US750 million were extended to Adaro and Coaltrade. After a number of restructurings, PT Padang Karunia, a vehicle controlled by local shareholders, indirectly owned 61 of Adaro Indonesia, 62 of IBT and 59 of Coaltrade via PT Alam Tri Abadi. PT Padang Karunia also directly owned 72 of PT Saptaindra Sejati, the mining contractor. The international consortium controlled their ownership in Adaro Indonesia, IBT and Coaltrade through Ariane Investment Mezzanine Pte. Ltd. “AIM”, Agalia Energy Investments Pte. Ltd. “Agalia” and Ariane Capital Singapore Pte. Ltd “Ariane Capital”. Post-IPO Structure In July 2008, PT Padang Karunia which was renamed PT Adaro Energy Tbk. conducted an Initial Public Offering of 34.8 of 31,985,962,000 shares issued and fully paid at Rp 1,100share, raising approximately Rp 12.2 trillion or US1.3 billion. The shares offered to the public in the IPO were listed on the Indonesia Stock Exchange on July 16, 2008. The proceeds from the IPO were used to increase the investments in ATA whereby ATA would use the fund to buy the shares from the international consortium held under AIM, Agalia and Ariane Capital and purchase minority shares in ATA. The Company has effectively increased its direct and indirect ownership to 100 in Adaro, IBT and Coaltrade from these transactions. The proceeds were also used to purchase shares in SIS owned by some local shareholders which effectively increased the Company’s ownership to 85.92. Some of the proceeds were also used to pay off a portion of the syndicated loan of Adaro and Coaltrade, and to fund capital expenditure and working capital of SIS. Adaro Energy liquidated several intermediate holding companies to simpliied its complex corporate structure inherited from the LBO, in October 2008. Revere Group Ltd., Decimal Investments Ltd., Saluno Investments Pte. Ltd., Rachsing holdings Pte. Ltd., AIM, Ariane Capital and Agalia were liquidated and investments in Biscayne 100, Viscaya 100, RachM100, Rachpore 100, Arindo Holdings 0.3 and Arindo Global 67 were transferred to ATA. There were no changes in the Company’s effective ownership in Adaro, IBT and Coaltrade. Geoff Palmer, General Manager - Marketing • Joined Adaro in March, 1997 • Over 35 years of experience in the mining industry, 20 years in coal operations and 10 in marketing • Managed the wash plant for Westar Mining’s Canadian operations in the 80’s and 90’s • Worked for Kaltim Prima Coal prior to joining Adaro • Graduated from British Columbia Institute of Technology with degree in Physical Metallurgy Equipped with GPS units and well maintained, the hauling rigs and trailers are safe and reliable. Contact Us Governing Adaro Corporate Social Responsibility Financial Report