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Results of Adaro Energy’s Annual Perception Survey

In January 2010, we conducted an Annual Perception Survey on Adaro to see what people think about us as a company. 118 respondents have participated and answered a number of questions about Adaro. There have been a number of interesting facts that have emerged from the survey. To start with, we found that majority or 35% of respondents who took the survey were investment analysts. Moreover, our company website proves to be the most preferred resource for people to collect information about Adaro, with the company reports as well as internet to be the most preferred sources to gather data about the firm.

The findings in this survey also suggest that the two most important considerations in making a decision to invest in a company are its fundamentals as well as the firm’s management and planning. According to the results of the survey, it is interesting to note that top three reasons of why one would invest in Adaro are: the prospect of growth offered by the company, the mining industry/sector which Adaro is positioned in and lastly due to the solid fundamentals of the company.

The importance of good corporate governance was highlighted in this survey as 90% of respondents believe that every effort should be made to meet international standards of good corporate governance.

When confronted with questions of transparency and disclosure, respondents in this survey paint a conflicting picture. In general, respondents are most satisfied with the overall level of transparency of Adaro, the quality of Investor Relations replies and the company’s reporting standards.

However, respondents of the survey also noted that Adaro can improve focusing its efforts to improve investor relations on better quality disclosures, followed by better conveyance of corporate strategy and objectives, as well as better address of specific financials.

Several comments from the Annual Perception Survey

What is your image of Adaro?
  • Good management and transparent compared to other Indonesian companies. Good perception in credit investors.
  • Great management and good corporate governance.
  • Concern on environmental issues and good corporate governance practices.
  • Coal mining firm with Astra’s style of management.
If you could tell Adaro’s management one thing, what would that be?
  • Secure consistent and growing revenue and profit, manage cost, and promote envirocoal.
  • Please distribute more dividends.
  • Please focus on corporate governance and protection of minority interests.
  • More information perhaps about your expansion plan as to where you think extra coal sales could come from.
Any misperceptions you feel exist about Adaro?
Seen as a family business instead of professionally run organization.
Who do you think are Adaro’s main peers?
BUMI, Bukit Asam, Indo Tambang Raya, Banpu, Indika Energy, Yangzhou coal, China Coal, Bayan Resources, Aneka Tambang, BHP Billiton.
In what ways does Adaro differentiate from its competitors? What strengths does Adaro have which they do not?
  • Adaro Energy is an integrated energy company, where the company does not only conduct coal mining, but also conducts other efforts that support their main business activity. Through this way, Adaro have been able to be more efficient and effective.
  • Transparency of corporate actions and growth strategy.
  • Good investor relation approach.
  • Focus on environmental issues.