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ADNOC DISTRIBUTION is the UAE market leader in retail and wholesale transportation fuels and is engaged primarily in the sale and distribution of fuel as well as in the operation of forecourt convenience stores. 2020 ADNOC Distribution Annual Report | 3

OUR VISION OUR MISSION We harness energy resources in the service Through partnership, innovation and a relentless of our nation. focus on high-performance and efficiency we maximize the value of energy resources.

OUR VALUES

PROGRESSIVE RESPECTFUL EFFICIENT We harness the UAE’s spirit of We encourage a culture of inclusivity We are a performance-driven company, innovation to ensure that our business and mutual respect, and always dedicated to maximizing the value of energy remains at the forefront of the global operate to the highest professional resources for the benefit of our people, our energy industry. and ethical standards. community, our partners and our nation.

COLLABORATIVE RESPONSIBLE We work in close collaboration with We are committed to identifying ways that our partners and peers, leveraging can make a difference to our community, our collective strengths to deliver while maintaining an unwavering commitment mutually beneficial results. to health, safety and the environment.

OUR CULTURE Our fundamental spirit and the character of our people.

BRING SEEK DELIVER THE ENERGY EXCELLENCE RESULTS

Unwavering passion, energy and We thrive on innovating new solutions, We are driven to deliver and willing to enthusiasm defines our character and seizing opportunities and raising do what it takes to ensure meeting our is reflected in how we work. standards across everything we do. targets and reaching our aspirations.

EMBRACE EXCEED TEAMWORK EXPECTATIONS

Collaborative work is critical to We endeavor to achieve our best every our success and founded on the day and to never settle for anything understanding that together we less than the very best from ourselves, achieve more than we can alone. our people and our company. 4

THE LATE SHEIKH ZAYED BIN SULTAN AL NAHYAN Founder of the 2020 ADNOC Distribution Annual Report | 5

HIS HIGHNESS SHEIKH KHALIFA BIN ZAYED AL NAHYAN HIS HIGHNESS SHEIKH MOHAMED BIN ZAYED AL NAHYAN President of the United Arab Emirates Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces 6

ADNOC DISTRIBUTION AT A GLANCE

WHO WE ARE Umm Al Quwain. Our expansion into To further compliment the services Dubai began in 2018, with the opening we offer at our fuel and retail stations, ADNOC Distribution is the UAE’s of three fuel service stations. This we operate the only government- largest fuel and retail convenience growth was significantly accelerated in authorized vehicle inspection centers brand, with 445 service stations and 2020 with 20 new stations opening in in Abu Dhabi, and we expanded our 326 convenience stores (as of 31 the emirate throughout the year. vehicle inspection services to the December 2020) across the country, other Emirates in 2020. servicing all seven emirates, as well We continue to hold our position as as two retail fuel service stations in the leading marketer and distributor We also offer car care services such , with more to come in of fuels to commercial, industrial and as lube changes, tire change, and car the near future. government customers in the UAE. washes at many of our locations. In We provide aviation fuel, refueling, and addition, we lease space at our service We are currently the sole fuel related aviation services to strategic stations to restaurants and other distributor in the emirate of Abu Dhabi customers throughout the country, as service providers, including major and have a dominant market position well as refueling and related services household brands such as McDonalds, in the northern emirates of Sharjah, to civil aviation customers at seven KFC and Starbucks. Ras Al Khaimah, Fujairah, Ajman and airports across the UAE. .

The accompanying notes form an integral part of these consolidated financial statements. 2020 ADNOC Distribution Annual Report | 7

WHAT WE DO

RETAIL COMMERCIAL BUSINESS BUSINESS

FUEL Car Care Services CORPORATE ADNOC Distribution is the UAE’s We offer car care services at many ADNOC Distribution is the largest leading operator of retail fuel service of our service station locations supplier of diesel and gasoline stations, operating in 445 domestic including car wash and lube change to commercial, industrial and locations as of 31 December 2020. services. In addition, various services government customers in the UAE We are the only operator of retail fuel are provided by our partners and wholesale fuels market. We also sells stations in Abu Dhabi and a dominant tenants, such as vehicle servicing, lubricants (engine oils and greases), operator in the Northern Emirates. repairs and tire changes. used by commercial, industrial, marine and government customers We have expanded presence in UAE Rental properties for motor vehicles as and now operate 26 fuel service We manage and lease retail space well as for other engines, machinery stations in neighboring Dubai emirate. within our service stations. Our and equipment. We are the only fuel provider to tenants occupy more than 900 operate in all seven emirates, as well properties, offering quick service AVIATION as have two stations located in restaurants and supplementary We provide fuel distribution services Saudi Arabia. products and services including and aircraft refueling operations to banking and automobile insurance. ADNOC’s civil aviation customers. We are also active in the retail sale In addition, we also sell aviation fuel, of liquefied petroleum gas (LPG), Major tenants include well-known and provides refueling and related compressed natural gas (CNG) and global brands such as McDonald’s, services, to strategic aviation automotive lubricants. Starbucks, KFC, Subway and customers in the UAE. . NON-FUEL Our non-fuel activities comprise Vehicle inspection convenience stores located at fuel We operate 28 vehicle inspection service stations, as well as value centers across the UAE, and we added services such as car washes, are the only authorized providers lube changes, rental properties and of government-mandated annual vehicle inspection. vehicle inspections in the Emirate of Fuel Volumes Abu Dhabi. Convenience Stores ADNOC Distribution is the UAE’s largest retailer by number of stores and operate 326 convenience stores in the UAE by the end of 31 December 2020. Retail (5,758 million liters) 67% Corporate (2,357 million liters) 27% Aviation (542 million liters) 6%

The accompanying notes form an integral part of these consolidated financial statements. 8

WHERE WE OPERATE

184 North Emirates NUMBER OF UAE FUEL STATIONS (31 December 2020) 2 Saudi Arabia 26Dubai 235 Abu Dhabi SIGNED DEFINITIVE AGREEMENTS TO ACQUIRE

STATIONS*35 *of these an agreement to acquire 20 stations signed in February 2021

United Arab Emirates (UAE) is our core limit the consequences of pandemic our network in Saudi Arabia to 37 from market at the end of 31 December and support businesses through 2 stations at the end of 2019 (subject 2020. The UAE is the second-largest fiscal and monetary stimulus helped to pending regulatory approvals and economy, after Saudi Arabia, in the economy to reopen quickly. certain other conditions). Saudi Arabia Gulf Cooperation Council (GCC), based is largest economy in the GCC region on nominal gross domestic product UAE government is continuing to with transport fuel demand around (GDP). The country is regarded as make solid progress in ensuring the four times higher than in the UAE. one of the prime destinations for economy recovers back to pre- foreign investment in the GCC, based COVID-19 levels by making vaccine Economic activity was subdued in on its prudent fiscal management, available to wider population. 2020 due to COVID-19 crisis and low return-oriented growth policies, Government’s policies are expected oil prices. However, 2021 should see investor-friendly regulation, economic to support economic growth in country’s economy return to diversification and stable leadership. 2021 and thus progressive growth trajectory. An expanding non-oil sector – recovery in demand for fuel and particularly in trade, finance, real non-fuel products. In line with Saudi vision 2030, the estate and tourism – supports the government is taking measures to view that the UAE is generally less We also accelerated our expansion decrease the country’s dependency vulnerable to energy price fluctuations in Saudi Arabia by signing a definitive on the oil sector and support than most of its GCC neighbors. agreement on 30 December 2020 to economic diversification, thereby acquire 15 retail fuel stations. This opening up ample opportunities for 2020 was unprecedented year for was followed by two more definitive foreign investors to enter large Saudi countries around the world, impacted agreements in February 2021 to Arabian market and pursue growth. by COVID-19 pandemic. UAE acquire 20 retail fuel stations, taking government’s proactive measures to 2020 ADNOC Distribution Annual Report | 9