Transaction details Transaction details continued Key management compensation

PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 558 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in thousands of US Dollars, unless otherwise stated

36. TAXATION continued

g. Tax assessment letters

On 22 September 2010, SIS had received an Advance Refund for corporate income tax-fiscal year 2009 amounting to Rp65,217 million equivalent to US5,997 from a total overpayment of Rp95,878 million equivalent to US8,782. On 11 December 2013, the DGT issued a Tax Assessment Letter for the relevant corporate income tax. Based on such letter, SIS’s overpayment had been adjusted by US101, resulting in a revised total overpayment amounting to US8,681. The difference between the adjusted total overpayment and the Advance Refund had been fully refunded in January 2014; and at the same time, SIS filed an objection regarding the adjustment. Based on the DGT’s decision No. KEP-158WPJ.192015 dated 23 January 2015, SIS objection has been approved and the remaining tax overpayment amounting to US101 has been fully received on 23 February 2015. On 26 April 2013, the DGT issued a Tax Assessment Letter for the corporate income tax-fiscal year 2011. Based on such letter, the DGT had agreed to SIS’s overpayment amounting to Rp80,720 million equivalent to US8,311 and reduced US10,476 from SIS’s carried forward fiscal loss for the relevant fiscal year. The overpayment had been fully refunded by the DGT in May 2013. SIS had filed an objection to the DGT’s adjustment on the carried forward fiscal loss which had been rejected by the DGT on 25 July 2014. SIS had filed an appeal with the Tax Court regarding this adjustment on 17 September 2014. Until the issuance of these consolidated financial statements, there had been no decision made on the appeal. On 29 April 2014, the DGT issued a Tax Assessment Letter for the corporate income tax-fiscal year 2012. Based on such letter, the DGT had agreed to SIS’s overpayment amounting to Rp152,378 million equivalent to US13,333 and reduced US4,910 from SIS’s carried forward fiscal loss for the relevant fiscal year. The overpayment was fully refunded by the DGT in May 2014. SIS had filed an objection to the DGT’s adjustment on the carried forward fiscal loss in July 2014. Up to the issuance date of these consolidated financial statements, there had been no decision made on the objection. As at the date of these consolidated financial statements, Adaro was being audited by Directorate General of Customs and Excise for customs for fiscal years 2010-2013 and the DGT for all taxes for the fiscal year 2013. DJP is also auditing SIS for corporate income tax for the fiscal year 2013, PBMM for VAT for fiscal year 2013, Biscayne for VAT for fiscal years 2010-2013, IBT for VAT for fiscal year 2013, AP, AEI, ATA, DSM, JPI, PBMM, MSW and IBT for corporate income tax for the fiscal year 2013. Adaro, SIS, Biscayne, AP, AEI, ATA, DSM, JPI, PBMM, MSW and IBT have not yet received the tax audit results. Management is of the opinion that the tax audit results will not have a material impact on the Group’s consolidated financial statements. 37. TRANSACTIONS AND BALANCES WITH RELATED PARTIES a. Nature of relationships Related parties Nature of relationship PT Servo Meda Sejahtera Associate PT Pulau Seroja Jaya Affiliate PT Rahman Abdijaya Affiliate In February 2014, SMS has been sold Note 13

b. Transaction details

In the normal course of business, the Group engages in transactions with related parties, primarily consisting of purchases of services and other financial transactions. Refer to Notes 1 and 13 for details of the Company’s subsidiaries and associates. 210 PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 559 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in thousands of US Dollars, unless otherwise stated

37. TRANSACTIONS AND BALANCES WITH RELATED PARTIES continued

b. Transaction details continued

Loan to a related party 2014 2013 PT Servo Meda Sejahtera - 40,233 Persentase terhadap total aset - 0.60 In February 2014, ATA has received full repayment of all outstanding loan receivables from SMS. Trade payables 2014 2013 Mining services: PT Rahman Abdijaya 14,371 4,222 Coal barging services: PT Pulau Seroja Jaya 2,849 6,003 Total 17,220 10,225 As a percentage of total liabilites 0.55 0.29 Cost of revenue 2014 2013 Mining services: PT Rahman Abdijaya 77,106 74,197 Coal barging services: PT Pulau Seroja Jaya 36,405 38,350 Total 113,511 112,547 As a percentage of cost of revenue 4.36 4.43 As restated refer to Note 3 The Group’s pricing policy related to transactions with related parties is set based on contracted prices.

c. Key management compensation

The Boards of Commissioners and Directors of the Group are considered key management personnel. Remuneration for the Boards of Commissioners and Directors of the Group for the years ended 31 December 2014 and 2013, was as follows: 2014 2013 Remuneration 20,139 19,145 Post employment benefits 1,746 1,246 Total 21,885 20,391 The Boards of Commissioners and Directors do not receive any other benefits such as management stock options. 211 AdARo ENERgy 2014 ANNuAl REPoRT PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 560 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in thousands of US Dollars, unless otherwise stated

38. EARNINGS PER SHARE

2014 2013 Consolidated profit for the year attributable to the owners of the parent 178,162 233,965 Weighted average number of ordinary shares outstanding in thousands of shares 31,985,962 31,985,962 Basic earnings per share attributable to the owners of the parent full amount 0.00557 0.00731 Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share in thousands of shares 31,985,962 31,985,962 Adjustments for calculation of diluted earnings per share in thousands of shares: Share options Note 42u 2,381,730 2,381,730 Weighted average number of ordinary shares used as the denominator in calculating diluted earnings per share in thousands of shares 34,367,692 34,367,692 Diluted earnings per share attributable to the owners of the parent full amount 0.00518 0.00681 As restated refer to Note 3

39. NET MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

As at 31 December 2014 and 2013, the Group had monetary assets and liabilities denominated in currencies other than US Dollars as follows: 31 December 2014 Foreign currency full amount Equivalent US Monetary assets Cash and cash equivalents Rp 2,071,844,394,483 166,547 S 736,627 558 € 502,962 612 Trade receivables Rp 1,292,785,096,092 103,922 Prepaid taxes Rp 649,373,972,847 52,200 Total monetary assets 323,839 Monetary liabilities Trade payables Rp 805,405,066,156 64,743 S 153,164 116 € 331,465 403 ¥ 1,494,241 13 A 719,676 591 Accrued expenses Rp 60,290,480,242 4,847 € 4,655,717 5,664 A 13,335 11 Taxes payable Rp 140,704,327,150 11,311 Retirement benefits obligation Rp 597,184,032,227 48,005 Provision for mine reclamation Rp 58,340,871,535 4,690 Total monetary liabilities 140,394 Net foreign currency monetary assets 183,445 212 PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 561 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in thousands of US Dollars, unless otherwise stated

39. NET MONETARY ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES continued

31 December 2013 Foreign currency full amount Equivalent US Monetary assets Cash and cash equivalents Rp 1,185,314,954,642 97,245 S 1,146,340 905 € 276,571 382 Trade receivables Rp 1,079,678,287,899 88,575 Prepaid taxes Rp 518,118,643,168 42,507 Loan to a related party Rp 490,397,746,859 40,233 Total monetary assets 269,847 Monetary liabilities Trade payables Rp 531,221,141,553 43,582 S 64,243 51 € 391,794 541 ¥ 365,721 3 A 678,503 605 £ 18,210 30 Accrued expenses Rp 61,108,587,521 5,013 € 4,655,472 6,425 A 42,264 38 Taxes payable Rp 118,928,821,158 9,757 Retirement benefits obligation Rp 440,126,248,849 35,380 Provision for mine reclamation Rp 52,417,631,672 4,300 105,725 Total monetary liabilities Net foreign currency monetary assets 164,122 Monetary assets and liabilities mentioned above are translated using the Bank Indonesia closing rate as at 31 December 2014 and 2013. If assets and liabilities in currencies other than US Dollars as at 31 December 2014 are translated using the exchange rate as at the date of the consolidated statement of financial position, the total net monetary assets will decrease by approximately US5,828.

40. NON-CASH TRANSACTIONS

2014 2013 Non-cash activities: Acquisition of assets under finance leases 66,465 20,345 Addition of fixed assets through capitalisation of depreciation expenses 1,090 435 Addition of mining properties through capitalisation of depreciation expenses 142 355 Addition of investment in associates through conversion of advance for investments - 5,413 213 AdARo ENERgy 2014 ANNuAl REPoRT PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 562 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in thousands of US Dollars, unless otherwise stated

41. OPERATING SEGMENTS

Management has determined the operating segments based on reports reviewed by the Board of Directors, which has been identified as the Group’s chief operating decision maker, which makes strategic decisions. The Board of Directors considers the business operation by business type perspective, which comprises coal mining and trading, mining services, logistics and others power plant, asset management, etc.. The segment information provided to the Board of Directors for the reportable segments for the years ended 31 December 2014 and 2013, is as follows: For the year ended 31 December 2014 Coal mining Mining and trading services Logistics Others Eliminations Consolidated External revenue 3,102,126 139,076 38,565 45,677 - 3,325,444 Inter-segment revenue 10,687 347,962 157,159 58,064 573,872 - Revenue 3,112,813 487,038 195,724 103,741 573,872 3,325,444 Cost of revenue 2,519,263 434,494 107,940 40,795 497,048 2,605,444 Selling and marketing expense 45,144 - - 1 - 45,145 General and administrative expense 44,005 20,449 12,104 42,054 4,023 114,589 Finance costs 168,995 15,942 6,665 28,660 30,545 189,717 Finance income 44,584 3,389 3,558 8,014 34,285 25,260 Income tax expense 151,772 2,723 5,652 13,459 31,786 141,820 Profit for the year 200,152 24,378 63,824 14,170 118,984 183,540 Depreciation and amortisation 115,909 82,840 20,958 8,864 87,807 316,378 31 December 2014 Segment assets 2,865,760 828,522 447,258 924,722 1,347,386 6,413,648 Segment liabilities 2,279,465 415,141 183,988 1,311,613 1,034,707 3,155,500 214 PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 563 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in thousands of US Dollars, unless otherwise stated

41. OPERATING SEGMENTS continued

For the year ended 31 December 2013 Coal mining Mining and trading services Logistics Others Eliminations Consolidated External revenue 3,069,303 147,748 38,202 29,889 - 3,285,142 Inter-segment revenue 3,562 261,273 125,275 55,997 446,107 - Revenue 3,072,865 409,021 163,477 85,886 446,107 3,285,142 Cost of revenue 2,421,026 361,331 93,550 32,458 367,381 2,540,984 Selling and marketing expense 42,267 - - - - 42,267 General and administration expense 50,180 36,886 8,380 39,887 4,511 130,822 Finance costs 113,479 15,605 7,607 24,224 44,333 116,582 Finance income 31,984 975 743 14,315 31,878 16,139 Income tax benefitexpense 196,931 4,884 5,115 8,230 13,133 192,259 Profitloss for the year 249,000 17,029 47,217 25,267 21,924 231,997 Depreciation and amortisation 105,267 85,918 16,347 6,354 74,205 288,091 31 December 2013 Segment assets 3,135,442 794,379 384,178 500,023 1,881,929 6,695,951 Segment liabilities 2,572,422 408,511 183,904 1,426,002 1,069,081 3,521,758 As restated refer to Note 3 Sales by destination is as follows: 2014 2013 Domestic 876,714 831,710 Export - India 478,742 519,657 - Japan 351,352 384,682 - Korea 300,790 350,078 - China 304,696 278,025 - Others 1,013,150 920,990 Total 3,325,444 3,285,142 Sales between segments are carried out at contracted prices. The revenue from external parties reported to the Board of Directors is measured in a manner consistent with that in profit or loss. The amounts provided to the Board of Directors with respect to total assets and liabilities are measured in a manner consistent with that of the consolidated statements of financial position. 215 AdARo ENERgy 2014 ANNuAl REPoRT PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 564 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2014 AND 2013 Expressed in thousands of US Dollars, unless otherwise stated

42. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES

a. Coal mining, hauling, barging, transhipment and other related agreements