ADQ - Unveiling 5 Years of Progress

[Music] good afternoon everyone um it's a pleasure really to share with you the story of adq we celebrate our fifth anniversary and um we haven't shared our story um and so I'm hled and honored to do that with you um I wanted to thank actually uh my colleague hammad for giving you a warmup on um on how we're organized and what we're doing um adq is a story about transformation about sustainable growth and in a way the story of adq is the story of Abu Dhabi is the story of the uee and so what I want to do is I want to take you back for a minute or so to our Founding Father the Founding Father sh of our nation there we go oh my dad what or could did so that that's our inspiration and believe it or not this is just 50 years ago it's amazing when this country has achieved and at adq we're proud to take this even forward and I'll share with you not only the basics uh of adq I'll share with you the the five years what we have done what Transformations we made happen I'll also share with you a look into the future what we're going to do so our mate is to to invest in clusters in in sectors in a portfolio sorry um and to make sure that these clusters generate sustainable Financial returns we're all about the future of the country the future generation of the people who live in this country and that will need money of course um we heard about uh um sustainable investing so we need trillions already but we need 12 years for more as well and we're part of part of that ecosystem that generates it we have four values I did want to hide them from you these are very important for us to build a culture that can actually do this not only today but in 20 30 years we're collaborative we collaborate with other s wealth fund we collaborate with other government institution we collaborate with other countries with driven we push we push the boundaries we make decisions every week and we execute them the next day this is our culture we're agile actually no one I think can live and thrive in this country if you're not agile the things change so fast and we Embrace change we love change and last but not least we're accountable we feel responsible for the companies that were entrusted to us we feel responsible for growing them these are some of the results and numbers uh over the last 5 years we have about 25 sizable companies these are Abu Dhabi government owned companies that we were entrusted with to grow them to make them even better we have organized ourselves in seven clusters I'll share with you a little bit more later we have over 7 ,000 employees in our ecosystem we operate not only in Abu daab we already operating in 130 countries I'll continue to grow International we are close to a quarter of Abu Dhabi strong oil GDP and close to a fifth of the UAE non oil GDP and we have grown the profits of our companies with more than 20% per anom we have saved over the last five years billions and billions of government support in the companies that is now not needed anymore and instead we're generating billions and we're giving dividends back to the go rout a little bit about the Clusters we have four priority clusters energy and utilities it's the largest one youve heard from Hamad a little bit about it taka is the largest company in that cluster uh it's of course an important cluster and it will continue to grow continue to grow internationally as well Healthcare and Life Sciences Healthcare was a cluster we started with we were endal with hospitals we were endal with the man the insurance company Life Sciences we have built and I'll come back later to our acquisition strategy and how we think about that foods and agriculture similar to Life Sciences we wor out with some companies but most of it we have acquired I'll talk about it later as well and then last but not least mobility and Logistics we own and manage the airports ABAB airports ABAB ports atat real company uh atat Airways and we have built on that I'll share with that a little bit later as well we have three emerging clusters Financial Services we want to grow it we were asked to set up the country's first digital Bank weo bank successfully launched products and now also consumer products tourism and entertainment is another emerging cluster we have successfully built on atck the Exhibition Center and build it into a large events uh and tourism uh conglobate and last but not least sustainable man manufacturing very important to continue to export other products than only oil and the largest company there is Emirate steel which we have reverse merged into our and has become now a Green Building Materials company I'll share with you what we have done and how we have contributed to Abu dhabi's growth from four different lenses first one I'll share with you the asset transfers the companies that we were involved with and we started with and that were now growing and growing internationally the second lens is Acquisitions which companies have we bought and why did we do that the third one is portfolio cons consolidation or transformation it's a very important tool and I'll share with you what we've done and how we built Regional Champions and then last but not least our corporate development how have we uh organized ourselves as a company how have we grown ourselves uh as a business and how have we um made ourselves or put ourselves on a map so the first one you see here the companies that we were in dealt with it started in February 2019 with the first Royal degree where 30 companies were transferred uh to us they you see some of the familiar names half a year later uh we were at out with more companies including satat which is the industrial holding company the stock exchange for example you can read it on the slide a little bit later again uh the nuclear L came to us it's a very important part of the energy mix and the energy uh uh ecosystem and we were asked to manage uh that company and so on and so forth um one last thing I want to say about this is It's Not only that we were inded with companies we have also setup companies so for example um because we own the airport and the largest uh carrier here at the Airways we felt that we owe it to Abu Dhabi to build an ecosystem an aviation ecosystem that is as rich and as vibrant as possible and we thought low cost yelles they need to be part of it so we set up a joint venture with whair to bring lowcost uh operations to amav the last thing uh I want to say is um one of the most recent transfers is St we uh this is a very exciting one that we as a Waste Management Center and they were responsible for collecting waste and basically lad fill it a little bit away from the city and the leadership and of course everyone who lives here wants uh us to be more responsible than landfills so we have decided to do a 100% diversion from landfills so in 10 15 years how much how many years 15 years 15 years nothing will be land fil everything will be recycled we're looking into waste to sof sustain sustainable Aviation fuels it's a massive transition uh that is going to happen and we're very proud that we were chosen uh to lead that transmission Acquisitions so here you see some of the Acquisitions we made and I want to specifically highlight two sectors where we have made Acquisitions one is Pharmaceuticals uh you see far marks you see uh Asino you see berie and you see Amur these are four pharmaceutical companies exported to different parts of the world we have brought them together at the One Umbrella we're going to make more Acquisitions in pharmaceutical and we'll build one of the largest pharmaceutical businesses in the world at watered in Abu Dhabi eventually listed on the Abu Dhabi stop Swit the second cluster that is very important to us is food that I'm bu so we have um which most people know because it was by public acquired a large minority state in Louis drivers company which is a global trading company why was that important to us we as you know cannot grow everything we consume in this country and in this em so we need to go out and we want to build relationships and we want to we want to be close to stakeholders who can help us with Imports and growing uh the foods uh and consumption that we need so Louis driers is key at that we also acquired uni fruti at a fruits company globally they have operations at the far East operations in uh South America for example uh etc etc will continue to grow these companies to enhance our spirit then this one is is a very important one we decided that not only do we want our companies to be better and growing we want to create skill skill helps why does skill help it makes you more efficient skill helps because you can attract better Talent skill helps because you can build a more known brand and grow further so I want to highlight a few of them for example the power uh the power utility in Abu Dhabi Abu Dhabi power was a private company it was 100% owned by adq we merged it with taka which was an international oil and gas uh conglomerate to build an International Energy company that is now also owning a substantial Stak in must and is growing internationally in a global energy Giants secondly I me mentioned already emiral steel it merged emiral steel into Aran Aran was listed emiral steel was 100% owned by adq to build a Green Building Materials Regional giant we working hard to further expand it Pure Health we were in doubt with Saha first what we did is to improve transparency to improve performance we carved out some of the laps we carved out uh the pharmacies and we brought that to Pure Health and later when seaha was uh doing substantially better than before we actually merged Saha also in Pure Health why because Pure Health is now the regional Healthcare Giant and it will be one of the largest Healthcare companies uh in the years to come maybe last but not least um uh a Aviation we own several Aviation Services companies in the mro business and yet engineering for example G outo we have merged that reverse buget in ABAB Aviation to create a regional Giant and Aviation Services and also there they will go International in terms of acquisition to to build a global Aviation Services Company corporate development maybe one one thing that I to thank that I would like to mention here one is adq um we were we were called adhc when we started or is it not such a sexy name uh and we have tried to find uh an acronym that sort of uh is more recognizable and uh and we can you know put put on uh on billboards and whatnot we found adq um people can tell you in private what it means it's a bit a complicated story but it has a meaning the second thing I'd like to highlight here is that we associate because of our culture we associate ourselves with sports high performance Sports so we established for example we're not only a sponsor of the U ever cyc Le team we are also we established the women cyle here in Abu Dhabi which is uh uh bankroll by adq and you can see it on the shirts adq is the main sponsor there and most recently uh we have decided to associate ourselves with the uh local MBA uh Basketball Association here and so you'll see a lot more basketball uh activities here in Abu Dhabi uh with our name on it while we're doing transformation there are a couple of things that are very important to us synergies of course we want to capture synergies merges and acquisition very important to fill white spaces in in these to be uh International mobile Giants horizontal enablers I'll I'll come to that actually we have several or four actually centers of competence that we use to build capabilities in our companies because why if you want to be one of the largest companies in the world you ought to be one of the best you cannot be a lousy performer and and and grow it doesn't work and top 12 by top portal performance is is part of that we want our companies to be top performers in their cluster here you see the four centers of competence so we are helping actively our companies in ESG ESG is not only buying electric vehicles as company cars no ESG is transforming your business system it's fundamental it's costly it's a big effort and we have a road map on how we're going to do that Innovation and R the world spends a couple of percent of revenue for most of the companies in R&D we're not yet at that level and we're going to step up I think we have been historically relying on buying Technologies and waiting for all this to develop it that is not going to happen anymore yes we'll still buy Technologies but we'll also develop it ourselves so we're investing in Innovation we're investing in R&D across the boards the third one is digital our 25 companies I think in our 25 companies we had two C levels that had the title Chief digital officer we have hired last year 15 more so this is a massive toration of course that's just hiring but you have to start somewhere we're building actively digital capability in our company digital is the future we want to be top PTI we want to be best in class so must have capability and last but not least talent management it's it starts all with people so we want not only the best people we want to make sure that they're develop the best that they have the best succession plans that they have the best uh rating uh and performance management system in our companies so what have we achieved we have achieved a lot we have achieved not only financially billions and billions of improvement per year we have also made our companies much much better in all aspects we have made Services better we have made internal systems better we have turned companies into growth again um and then the other one I'd like to mention here decarbonization we're actively looking uh at e and ESG how can we decarbonize our companies we want to list most of our companies and of course uh ESG even if it's not necessarily a requirement we still we want to be prepared we want to be ready for the new world so what's next we have now our 25 companies maybe they'll be fewer maybe we'll mer a few others maybe there will be some that we buy because we feel that we need to be in a certain field that we're not yet in but by a large these companies are there by a large these companies are doing much better than they did 5 years ago what we want is we want them to even take it further so we're not going to sit still our Board of course now is used to the 20% improvements in profits every year and there's no reason for that not to demand that to continue so they ask us to continue how do we do that of course we do that by glowing grow growing globally in the end Abu Dhabi is let's say a midsize City Abu Dhabi emirat and the UAE is a midsize country we cannot grow only our business here we have to grow internation we do that regionally we do that in countries where we have priv privileged relations but we do it everywhere so this is very important it's an exciting journey and as I said just by that imperative for our companies to grow sustainably it means that they need to up their performance it me means that they need to up their Rd their Innovation it me means that they need to increase their capabilities in all these areas so that's the journey ahead um it will for sure keep us very busy and will continue to push the boundaries of sustainable growth thank you very much