عربي

Annual Report 2010

Board of Directors' Report

The Board of Mubadala is pleased to present the consolidated financial statements for the year ended 31 December 2010, covering the overall performance of the Group in all business sectors and areas of activity.

Financial Highlights
Mubadala reported a profit for the year of AED 1.1 billion and an increase in operating income to AED 17.6 billion. Notably, revenues from the sale of goods and services increased by 22% to AED 15.9 billion, strengthened by further revenue growth in the Oil & Gas, Infrastructure and Aerospace Units.

At the total comprehensive income level Mubadala reported a loss of AED 315 million. The continued volatility in global markets reduced the fair valuation of investments by AED 819 million, with the majority of the loss coming from a decrease in the value of Aldar and AMD shares, which were partially offset by gains on GE shares and Carlyle investments. The downturn in the domestic real estate market resulted in a decrease in the fair value of investment properties of AED 928 million.

Mubadala’s Oil & Gas Unit remained the biggest contributor to revenue as the Company continued to develop and grow other sectors in line with its diversification mandate. Significant contributors to the full year revenue again included Aerospace, Infrastructure and Real Estate & Hospitality.

Dolphin Energy contributed AED 3.3 billion in operating revenue, with Pearl Energy adding AED 1.6 billion, an increase on last year primarily driven due by rising oil and gas prices throughout the year.

The Aerospace Unit contributed AED 4.9 billion of operating revenue through its two main operating units, both of which are focused on Maintenance, Repair and Overhaul (MRO) services; SR Technics, a Zurich based aviation specialist and Abu Dhabi Aircraft Technologies (ADAT) which was consolidated for the first time. Notably, STRATA completed the construction of its Al Ain facility in August 2010.

Mubadala Infrastructure’s education related Public Private Partnership (PPP) projects continue to bring valuable private sector expertise to the Government of Abu Dhabi and contributed AED 3.5 billion of revenue in 2010.

Sowwah Island, being developed by Mubadala Real Estate and Hospitality, will be the core of Abu Dhabi’s new Central Business District and home of the new headquarters of the Abu Dhabi Stock Exchange. Plot sales at Sowwah Island continued through 2010 including signing up the Farglory Group, its first international investor.

The liquidity position of the Group remains strong with cash and cash equivalents of AED 6.3 billion at the year end, the reduction on last year largely due to increased capital expenditure, additional investments and loans.

Mubadala has been rated since September 2008. Our long term ratings Aa3 / AA / AA by Moody’s, Standard & Poor’s and Fitch Ratings respectively all with stable outlook. Mubadala’s ratings are a reflection of the strength of our portfolio and the continuing support offered by our sole shareholder, the Government of Abu Dhabi.

During 2010, the Group’s equity increased by 26% to AED 62 billion, while total assets increased by 14% to AED 101.5 billion.

The prudent management of our portfolio resulted in solid growth in 2010 and we look forward to driving our performance in 2011 to new levels. Mubadala will continue to create value and position its assets to capitalize on expected growth both here and around the world.

For and on behalf of Board of Directors,

Director    Chief Executive Officer & Managing Director    Chief Financial Officer

21 March 2011