Segment reporting Adaro Energy 2008 Annual Report English

Adaro Energy Annual Report 2008 www.adaro.com 145 Contact Us Governing Adaro Financial Report Corporate Social Responsibility PT ADARO ENERGY Tbk Schedule 513 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

a. Acquisition of PT Saptaindra Sejati continued

The restructuring transactions on 3 April 2008 between the Company, PCI and SRIS, were accounted for using the pooling-of- interests method as required under SFAS No. 38 Revised 2004, since the Co mpany, PCI and SRIS are entities under common control. The details of the book value of the net assets acquired and the difference arising from the restructuring transaction of entities under common control are as follows: 2008 Purchase consideration through cash payment 127,022 Book value of net assets acquired 115,407 Difference in value from restructuring transactions of entities under common control 11,615 The details of net assets acquired from the transaction with CSP and the adjustme nt to fixed assets acquired are as follows: 2008 Purchase consideration through cash payment 31,754 Book value of net assets acquired 28,850 Adjustment to fixed assets 2,904 Goodwill -

b. Acquisition of PT Alam Tri Abadi

On 3 January 2008, ATA increased its issued and paid in capital through the issuance of 1,500,000 new shares with a par value of Rp 1,000,000 full amount per share. The Company acquired all the new shares issued, and the Company’s interest in ATA increased from 49.99 to 92.02. The restructuring transaction of 3 January 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. 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 1,500,000 Book value of net assets acquired 1,462,282 Difference in value from restructuring transactions of entities under common control 37,718 On 15 July 2008, ATA increased its issued and paid in capital through the issuance of 10,863,438 new shares with a par value of Rp 1,000,000 full amount per share. The Company acquired all the new shares issued for Rp 10,863,438, and the Company’s interest in ATA increased from 92.02 to 98.87. 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 10,863,438 Book value of net assets acquired 10,872,310 Difference in value from restructuring transactions of entities under common control 8,872 On 15 July 2008, the Company increased its ownership in ATA through the acquisition of the shares of SRIS and PCI in ATA, amounting to 94,951 shares and 47,477 shares, respectively, with a total acquisition amount of Rp 356,000. Through these transactions, the Company’s interest in ATA increased from 98.87 to 100.00.