2012
Mubadala Annual Report
Message from our Chairman
Under the guidance of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, the development and diversification of the local economy is a central priority of the Government of Abu Dhabi.
HH General Sheikh Mohamed bin Zayed Al Nahyan
Crown Prince of Abu Dhabi, Deputy Supreme Commander of the Armed Forces of the UAE, Chairman of Mubadala Development Company
Through its policies and initiatives, the Government has taken a number of steps to accelerate this process in recent decades. Few have been as transformative as the creation of Mubadala Development Company in 2002.
This marks Mubadala’s tenth year of operations. After establishing itself with a single project in the regional energy sector, much has changed – Mubadala is now an active investor in more than 12 industries around the world with over 33,000 employees.
However, what has not changed is Mubadala’s broad-based mandate to generate sustainable financial returns for its Shareholder and in doing so contribute to the social and economic development of the Emirate of Abu Dhabi and the UAE.
This was the purpose for which Mubadala was founded and it will remain the guiding ambition as the organization evolves in the future.
I would like to thank the board, executive management and employees of Mubadala for their efforts and wish them every success in the year ahead.
Messages from our senior leadership
Looking back at Mubadala’s first ten years, I am proud and humbled by our company's growth. We began with Dolphin Energy, a multinational gas pipeline initiative characterized by its complexity, its strategic role for Abu Dhabi, and the world-class partnerships that made it possible.
In many ways, this project represents the blueprint for the global business we have developed, maintaining steady focus on our Shareholder’s vision of a strong, diversified Abu Dhabi economy underpinned by a thriving society.
Our commercial focus remains at the forefront of what we do. Through the delivery of essential social infrastructure such as universities and medical facilities, and the development of new industrial hubs, we aim to place Abu Dhabi at the forefront of sectors with high potential and tangible returns that offer career opportunities for current and future generations.
The single most powerful idea about Mubadala is that you can invest for financial and social returns – this is our investment and asset management approach and has remained steadfast since our formation.
2012 saw significant advances across all our priority sectors. We advanced our global platforms and commercial partnerships, with several of our Abu Dhabi based businesses taking their place as leaders in high-tech industries, while also delivering key social infrastructure for the Emirate.
We remain focused on building our globally integrated business and helping realize Abu Dhabi’s ambition of becoming a diversified and innovation-driven economy.
Our full year 2012 results reflect our steadfast commitment to conscientious financial planning and ongoing stewardship of businesses and investments.
We have seen across-the-board improvements on last year’s performance, and will continue to mitigate risk and volatility as we pursue steady, sustainable progress against our financial targets over the coming year.
We are proud that in 2012 a number of our assets generated revenues for the first time and began to fulfill their roles in Abu Dhabi’s diversification plans.
We are building a world-class, global business and are resolutely focused on establishing the organizational and risk management framework that supports the diverse nature of our operations and growth plans. Developing our internal institutions is a priority for Mubadala, and we adopt global best practice in areas such as corporate governance, compliance, risk management and employee development.
2012 Operational Highlights
Industry, Metals & Mining
10 MILLION
Emirates Aluminium (EMAL) safety recordwork-hours with no lost time to injury
1.5 MILLION TONS
By July 2012, EMAL had achieved the fastest production ramp-up by a single site aluminium smelter to dateof hot metal produced by EMAL
Healthcare
2 world-class
85,000 registered patients at Imperial College London Diabetes Centres in Al Ain & Abu Dhabidiabetes treatment centers
177,000
Since 2007, thousands have received diabetes prevention, treatment & education at UAE’s ICLDC facilitiesdiabetes patients
4,500
Sophisticated diagnostic capability offered at National Reference Laboratorydiagnostic tests
AEROspace
A330
First shipment of UAE-made composite aerostructures delivered to Airbusailerons delivered by Strata
950
Mubadala's maintenance, repair & overhaul (MRO) businesses now under contract with numerous airlines globallyairplanes under management
Real Estate & Infrastructure
4 office towers completed
2012 saw delivery of key infrastructure in Abu Dhabi’s new Central Business District on Al Maryah Islandat Sowwah Square
OIL & GAS
presence in
12 countries
Mubadala Petroleum manages assets & operations at all stages of the upstream value chainproduction averaging
378,000
Mubadala Petroleum’s working interest production across an international portfoliobarrels oil equivalent/day
Semiconductors
GLOBALFOUNDRIES
WORLD'S
2nd LARGESTAs of March 2012, Mubadala’s Advanced Technology Investment Company (ATIC) acquired full ownership of GLOBALFOUNDRIESsemiconductor foundry by revenue
Renewables
630MW
London Array offshore wind farm began producing power in 2012 – now the world’s largest offshore wind projectphase 1 capacity
Information & Communications Technology
2nd satellite launched
With addition of Y1B, satellite coverage now reaches over 80 countriesby Yahsat
Mubadala's Global Footprint
Global Platforms
Mubadala is building on Abu Dhabi’s competitive advantages to build businesses, alongside established international partners, in multiple sectors.
Aerospace
Mubadala is driving the development of the aerospace sector in Abu Dhabi by creating a leading network of globally integrated businesses with capability across key areas such as Maintenance, Repair and Overhaul (MRO), aerostructure manufacturing, aerospace-related financing and leasing solutions, and flight training.
“From Strata’s first delivery of advanced composite aerostructures for Airbus to the graduation of the UAE’s first military helicopter pilot from Horizon, Mubadala is putting Abu Dhabi on the global aerospace industry map.”
Homaid Al Shemmari
Executive Director, Mubadala Aerospace
“For me, Mubadala is not just a catalyst for the development of Abu Dhabi’s economy, but also for the development of its people. Many who were part of the team when I first joined are now managers at Mubadala and other organizations. The opportunities for career growth and professional development are unlimited.”Hanaa Al-Moosawi
Senior Analyst, Mubadala Aerospace
Industry, Metals & Mining
Mubadala is creating global industrial champions in the metals and mining sector, actively nurturing related primary and downstream businesses and support services, while securing upstream resources.
“We are particularly proud of EMAL’s operational, financial and safety performance to date and its positive local contribution to job creation and GDP. As we lead the development of a metals-related cluster in Abu Dhabi, we are helping to advance industrial performance and expertise in the Emirate.”
Ahmed Yahia
Executive Director, Mubadala Industry
“I was one of the first female Nationals to wear the personal protective equipment and work at the smelter. I feel proud that I am breaking new ground for Emirati women in this field.”Awatef Al Hosani
Quality Department, EMAL
Information & Communications Technology
Mubadala is investing in a global portfolio of top-tier information and communications technology assets, bringing new services, capabilities and job opportunities to the regional market.
“With our unique understanding of regional requirements, Mubadala’s IT, technology, telecoms and satellite assets are gaining market share and continuing to deliver wider socio-economic benefits for Abu Dhabi.”
Jassem Mohamed Al Zaabi
Executive Director, Mubadala Information & Communications Technology
“I watched the Y1B satellite launch in Kazakhstan from the offices of Yahsat at three o’clock in the morning. As the rocket soared into the sky, I felt elated to be part of a project that helps connect millions of people.”Mona Al Muhairi
Human Capital & Administration, Yahsat
Oil & Gas
Building on the Emirate’s competitive advantages, Mubadala Petroleum pursues exploration and production activities in the Eastern Hemisphere, generating strong financial returns and contributing to meeting the Emirate’s current and future energy demands.
“We see strong exploration opportunities ahead as we deploy operational and technical expertise honed across our multinational portfolio.”
Maurizio La Noce
CEO & Executive Director, Mubadala Petroleum
“Mubadala Petroleum’s expertise is amazing; we have people with cross-disciplinary skills sharing their knowledge every day. That’s the beauty of this company – you have the opportunity to learn about different disciplines directly from some of the best industry experts.”Saad Al Hajeri
Production Manager, Mubadala Petroleum
Renewables
Masdar, Abu Dhabi’s multi-faceted renewable energy company, is advancing the development, commercialization and deployment of technologies that unlock the potential of sustainable energy solutions.
“Masdar continues to advance the leadership role that Abu Dhabi is playing in the global renewables sector. Solar and wind power projects at home and overseas are reaching maturity – tangible results of our commitment to R&D and international partnerships.”
Dr. Sultan Ahmed Al Jaber
CEO, Masdar
“Working in Spain at the Torresol solar plant filled me with a desire to establish more renewable projects in the UAE. In the Gulf, our energy heritage is oil and gas, but I think renewables are our future.”Yousif Al Ali
General Manager, Shams Power Company
Semiconductors
Advanced Technology Investment Company (ATIC) has established Abu Dhabi as a key player in the global semiconductor industry through the creation of GLOBALFOUNDRIES and by fostering advanced technology research and development initiatives in the Emirate.
“Our investment in semiconductors reflects Abu Dhabi’s commitment to stake a leadership position in the technology industry and establish a core pillar upon which to base the Emirate’s economic diversification.”
Ibrahim Ajami
Chief Executive Officer, ATIC
“By creating a truly global platform in ATIC, Mubadala has been able to provide excellent opportunities for future Emirati leaders to train and work at the world’s fastest growing semiconductor company, GLOBALFOUNDRIES. Whether in Singapore or Germany, our Al Nokhba program participants are delighted by the global work experience they are gaining.”Hanan Harhara
Head of Human Capital, ATIC
Social Infrastructure
In support of the Abu Dhabi government’s development strategy, Mubadala invests in the establishment, construction and provision of essential social infrastructure.
Healthcare
Mubadala is focused on addressing the region’s most pressing healthcare needs through the creation of world-class facilities and a thriving healthcare sector.
“Until recently, many patients in this region had to travel overseas for life-changing medical procedures. With top-tier partners such as Johns Hopkins Medicine International, Imperial College London, and Cleveland Clinic, we are changing the face of private healthcare in the UAE by creating a network of specialist facilities offering the best in clinical care and expertise."
Suhail Mahmood Al Ansari
Executive Director, Mubadala Healthcare
“We are bringing an innovative model of healthcare to Abu Dhabi; one that is robust, patient-centric and evidence-based, and that enables us to deliver consistently high quality care to those in need. I’m excited to contribute to this effort, and very proud to be part of a team working to achieve this for the UAE.”Dr. Ihsan Al Marzouqi
Senior VP, Mubadala Healthcare; CEO, Healthpoint
Real Estate & Infrastructure
Mubadala is helping to develop the physical and social infrastructure required to underpin a well-organized and rapidly evolving society.
“Our goal is to raise the standard of real estate and deliver key social infrastructure for the people of Abu Dhabi. Sowwah Square, our mixed-use urban development at the heart of Abu Dhabi’s new Central Business District, is a major part of this mission.”
Ali AlMheiri
Executive Director, Mubadala Real Estate & Infrastructure
“It has been truly inspiring to be part of the team that has helped bring Al Maryah Island to life. Contributing to the creation of a long term tangible asset at the heart of Abu Dhabi for generations to come has been both professionally and personally rewarding.”Abdulla Al Shamsi
Vice-President, Mubadala Real Estate & Infrastructure
Services
Mubadala builds and manages businesses in service-based industries to support the development of a robust, globally competitive services sector in Abu Dhabi.
“Through our investment in businesses providing financial, logistics and transportation, and defense technical services, we are enabling Abu Dhabi’s economic development by offering speed to market, economies of scale and greater efficiencies.”
Laurent Depolla
Executive Director, Mubadala Services Ventures
“Al Taif is a great place to develop diverse technical skills. We are bringing a new set of capabilities to the country, and it is rewarding to know that we are helping to support the technical readiness of the UAE Armed Forces.”Abdelrahman Alrousi
Deputy Manager, Al Taif Technical Services
Capital
Mubadala is an active investor in sectors and geographies that hold exciting potential and tangible returns, working in partnership with a number of world-class organizations.
“In 2012 we continued to pursue a value-oriented investment approach with a primary focus on the creation of long-term value and a bias towards capital preservation.”
Hani Barhoush
Executive Director, Mubadala Capital
“Mubadala’s Capital team works to drive financial returns and develop investments that benefit the Group’s strategic initiatives. The Mubadala GE relationship exemplifies our multi-faceted approach, involving co-investing, aerospace technology and leadership development programs, among other pursuits.”Fatima Al Noaimi
Junior Associate, Mubadala Capital
