Internal Factor Evaluation Matrix (IFE)

KEY INTERNAL FACTORS

Weight

Rating

Weighted
Score

STRENGTHS
1-O

Vertically integrated business model

0.20

0.80

2-M

Adaros coal is regarded as ultra-low pollutant

0.15

0.60

Low cost producer

0.10

0.30

0.10

0.30

3-MT
4-O

Strong liquidity position

5-M

Long-term contracted with diversified bluechip customers

6-F

Enhanced financial solvency

WEAKNESSES

1-O

Single site concession and supporting

infrastructure, accounting for all of current
production

0.15

0.15

2-O

Operations are located far inland and in

remote locations

0.10

0.10

3-M

Limited product line

0.02

0.04

Declining operational performance

TOTAL IFE SCORE

1.00

C=Culture, MT=Management, M=Marketing, F=Finance, O=Operations, HR=Human

Resources, I= Information Systems R=Research & Devt
Adapted from: Adaro 2011 Annual Report

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