www.crescententerprises.com Crescent Enterprises Annual Report 2014 STRENGTH IN DIVERSITY

ANNUAL REPORT 2014

TABLE OF CONTENTS

CEO Message 2 Our Profile 4 Our People 6 Our Strategy 8 Group Companies 10 Gulftainer Group 12 Momentum Logistics 16 Gama Aviation Plc 18 Uruk Engineering & Contracting 22 Clinical Pathology Services 24 Global Gumbo Group 26 Private Equity Investments 28 The Abraaj Group 30 Growthgate Capital 32 TVM Capital Healthcare Partners 34 Siraj Palestine Fund I 36 Duet-IBC MENA Real Estate Opportunities Fund 38 Samena Limestone Holdings 40 CE-Ventures 42 Corporate Culture 44 Corporate Governance 46 Sustainability 47 Corporate Citizenship 48

1 CEO MESSAGE

‘STRENGTH IN DIVERSITY’ IS NOT ONLY A Year of Strength through Gama Aviation excelled in its pursuit A REFLECTION OF OUR COMPANY’S Diversification of growth and expansion, marking HISTORY, BUT ALSO OF ITS DYNAMIC Our persistence to diversify over the 2014, as an incredibly significant year PRESENT AND FUTURE. THE RAPID years has been projected into the with its reverse takeover of Hangar8 DIVERSIFICATION OF THE UAE AND formation of a group of 20 subsidiary Plc, a leading UK private jet operator. GROWTH THROUGHOUT THE REGION and affiliate companies, each thriving The transaction resulted in a valuation HAS PROPELLED US ON OUR OWN within their very own business sector. of £82.3mn (US$128.5mn) for Gama UNIQUE JOURNEY OF DEVELOPMENT, However, our motivations for success are Aviation and a combined market WHICH HAS PROVEN THAT not led by the possibility or confirmation capitalisation of the new entity, Gama SUSTAINABLE VALUE AND STRENGTH of profit – rather they are directed by Aviation Plc, of around £120.4mn CAN BE FOUND IN SOME OF THE the added value of a balance between (US$188mn), not to mention the GREATEST DISSIMILARITIES. positive financial performance and market advantage attained through sustainability, to serve as a cohesive the partnership. The expanded group package contributing towards our long- now has more than 145 aircraft under term success. management, and is operating from 44 different locations in 15 countries From ports and logistics, power and across five continents. engineering, and business aviation, to private equity investments, healthcare, Crescent Enterprises’ Engineering, media and entertainment, and start- Procurement and Construction ups, each of our subsidiary and affiliate (EPC) subsidiary, Uruk Engineering & companies have realised this ideal and Contracting, completed a US$540mn Al stood out over the past year Mansuriya power plant in collaboration in their own defining way. with its partner, Alstom, as part of a three-part contract with the Iraqi Our globally-recognised ports and Ministry of Electricity. logistics subsidiary, Gulftainer, made an international splash by entering Amidst actively pursuing and developing the USA market, when it signed a 35- international multimedia projects, our year concession to operate the first entertainment subsidiary, Global Gumbo container and mixed-cargo facility at Group (G3) turned its attention to the Florida’s Port Canaveral. The deal will management and production of its first bring impressive revenue and value signature artist Xriss Jor. The Lebanese creation to the Floridian community singer was selected as the winner during and economy, with Gulftainer’s plans the inaugural Dubai Music Week as to strengthen the terminal through a part of the Quincy Jones Talent Search US$100mn investment in infrastructure, competition, resulting in a management equipment and locally-sourced human and production deal with G3 and the capital. Gulftainer’s new project will opportunity to work with Grammy also contribute more than US$630mn Award-winning, legendary producer, to Florida’s economy, US$280mn in Quincy Jones on a debut single. In the revenue to Port Canaveral, and will coming year, G3 is working towards generate more than US$350mn producing an Extended Play (EP) album in tax contributions. and music video for Xriss as well as the release of her first international debut The fully integrated, third party logistics set for 2016. provider enhancing Gulftainer’s offerings, Momentum Logistics, saw Crescent Investments’ private equity increased revenues and margins through investments also witnessed success the diversification of its customer in executing new transactions and portfolio. It achieved this by developing completing exits to realise positive non-port related business streams and returns for us, both as investors and implementing greater cost-efficiency shareholders. We also expanded our measures throughout its operations. In portfolio with two new MENA-focused 2014, the company continued its fleet financial investments: RAK Ceramics replacement programme by introducing through Samena Limestone Holdings, modern fuel-efficient alternatives, and Duet-IBC MENA Real Estate including 110 commercial vehicles and Opportunities Fund. 240 multipurpose trailers. Our newest division, CE-Ventures, also had an exceptionally progressive first year with five new concepts in the development pipeline, the first of which is expected to launch publically in 2015. Crescent Enterprises Annual Report 2014 We have also continued on our journey towards sustainability. Through extensive planning and engagement, we have developed a detailed roadmap for our forward-looking plans, to build upon our goals and those of our group of companies. A key aspect of this process has been addressing the needs of our stakeholders, who are by far the most important facilitators for our success, by continuing to actively engage them in discussion and through activity.

As always, corporate citizenship remains a pillar of our motivations. In 2014, we consciously aligned our impact efforts with several leading global organisations and philanthropic campaigns focused on social entrepreneurship, environmental stewardship, and education and community. Although each and every one of the many initiatives we supported were extremely important, our direct involvement as a lead partner with the Middle East Theatre Academy was truly an outstanding moment. The launch of the programme for underprivileged youth in the region was an incomparable opportunity we are proud to be a An Invaluable Balance of part of, and an experience which has Corporate Culture prompted us to formally develop similar The strength we have realised through initiatives for the public. the diversity of our corporate culture, which consists of governance, Leveraging our Strength sustainability and citizenship, has also for the Future played an influential part in Crescent The strength we have found in the Enterprises’ evolution. Our strong diversity of what Crescent Enterprises adherence to the best sustainable represents today, will be the very business practices and the highest level trait we put forth towards our future of corporate governance, coupled with We have great expectations for these ambitions in growth. As we look ahead, our core desire to create shared value equipped with this rewarding strategy enterprises currently in the works, for all of our stakeholders, has guided including our intentions to show that of capitalising on diversity, combined our Company’s commitment to ethical with the inspiration of the region’s rapid a successful business is one which and accountable global expansion. encompasses sustainability, social development and activities, and with optimism in our future reach and impact, mindfulness and profitability. Corporate Governance has been we will continue on a path towards a positive influence for Crescent creating and enforcing sustainable Overall, 2014 was a strong year for Enterprises’ activities, and an area value for our stakeholders, with long- Crescent Enterprises, in which we which we have built upon each and term value and inclusive growth consolidated our existing businesses every year with purpose. To add to at the very core. and focused on organic growth. This led the clear structure of the internal to revenues increasing by 40 per cent to governance in place within our US$412mn. We intend to continue on a Company, we became a signatory of path of organic growth and business-led the United Nations Global Compact in collaboration for an equally successful 2014. Additionally, as a founding partner 2015, and for many more years to come. of the Pearl Initiative we continue to Equipped with our experience in the uphold and advocate for practices of MENA Region, we will further build on accountability across the region. our achievements by expanding our reach into areas such as sub-Saharan Badr Jafar Africa and emerging Asia, in areas Chief Executive Officer of infrastructure development and consumer-centric businesses.

3 OUR PROFILE

CRESCENT ENTERPRISES, ONE STRENGTH IN DIVERSITY OF THE UAE’S MOST PROMINENT MULTINATIONAL COMPANIES, HAS Through entrepreneurial expertise, capital and experience, we aspire to build SUCCEEDED IN GROWING A DIVERSE, and prime our group of companies active in the fields of ports and logistics; GLOBAL RANGE OF SUSTAINABLE, power and engineering; healthcare; media and entertainment; private equity; SCALABLE, AND PROFITABLE and business incubation. OPERATING FIRMS. THE COMPANY IS HEADQUARTERED IN THE UAE, In doing so, we strive for inclusive leadership, global competitiveness and EMPLOYS 5,196 PROFESSIONALS purpose in the sectors we operate and within the communities in which we THROUGH ITS 20 SUBSIDIARIES AND serve, while delivering value to all of our stakeholders. AFFILIATES, AND OPERATES ACROSS FIVE CONTINENTS.

Foster a culture of impact innovation by supporting the exchange of knowledge

Conduct business Adhere to the highest ethically, honestly and standards at every level transparently Entrepreneurship of our operations

Integrity Excellence

VALUES

Responsibility Cooperation

Serve the community Build strong and protect the Diversity relationships based on environments in mutual respect with which we work our partners

Respect cultural diversity and have compassion and humility

20 22 5,196 subsidiaries countries active employees through and affiliates of operation our subsidiaries and affiliates

Crescent Enterprises Annual Report 2014 BUSINESS SECTORS

Ports and Business Power and Healthcare Media and Private Equity Logistics Aviation Engineering Entertainment Investments

As a global company, Crescent Enterprises’ interests and Our group of companies and financial investments have activities are held and operated through a ‘relationship-driven’ been carefully composed as a reflection of the regional trend approach with our 20 subsidiaries and affiliates. towards diversification, revealing a balance between our traditional strengths in infrastructure-related industries and In addition to commercial influence, we provide strategic and alternative sectors of the economy. operational counsel, which includes serving on our respective group companies’ Board of Directors, and delivering input on their activities, governance standards and strategy.

GROUP COMPANIES

PRIVATE EQUITY INVESTMENTS

Crescent Enterprises is a wholly-owned subsidiary of Crescent Group, one of the most progressive family business firms, which has been shaping the Middle East and North Africa Region for over 43 years.

Alongside the diversification of Sharjah and the wider United Arab Emirates, the Crescent Group diverged into a variety of industries and markets across the world, culminating in the creation of Crescent Enterprises. Today, the Group operates a portfolio of more than 25 companies through its two main subsidiaries, Crescent Enterprises and Crescent Petroleum, the first and the largest indigenous, privately- owned upstream oil & gas company in the Middle East.

5 OUR PEOPLE

Badr Jafar Neeraj Agrawal Chief Executive Officer Executive Director

Key Leadership Positions: Through his passion for social Key Leadership Positions: • Managing Director, Crescent Group entrepreneurship, he sits on the Global • Investment Committee Member, Crescent Enterprises • President, Crescent Petroleum Board of Education for Employment • Group CFO and Board Member, • Chairman, Pearl Petroleum (EFE), the Global Honorary Board of the Crescent Group • Chairman, Executive Board, Cherie Blair Foundation for Women, is • Executive Board Member, Gulftainer Group a member of the Synergos Arab World Social Innovators (AWSI) Program Gulftainer Group • Board Committee (Asset & Liability Badr Jafar is Managing Director of Board of Governors and is a Founding Management), Member Dana Gas PJSC the Crescent Group, which has been Board Member of Endeavor UAE, an • Board Member, Uruk Engineering operating from the UAE as a family initiative encouraging high-impact & Contracting business group for 44 years. The entrepreneurship. • Board Member, Clinical Pathology Services Group today comprises of two main companies: Crescent Petroleum, the Badr is active with higher education • Executive Committee Member, region’s first independent and privately- institutions, chairing the Alumni Crescent Petroleum owned petroleum company in the Advisory Council of the Cambridge Neeraj Agrawal oversees Crescent Middle East; and Crescent Enterprises, University Judge Business School Enterprises’ operations and investments. the Group’s conglomerate operating and serving as Board Member of its He has supported the Company’s across six core sectors. International Advisory Board. evolution and transformation throughout He is also a member of the Business its years of expansion, by fostering new Badr serves as Chairman of Gas Cities Advisory Council of the American investments as well as nurturing its LLC, a joint venture between Crescent University of Sharjah, and a member of various established businesses within Petroleum and Dana Gas PJSC, and the Research and Innovation Advisory the fields of ports and logistics, mining, as Chairman of Pearl Petroleum, Council for The Centre of Excellence for healthcare, and power plant engineering a partnership between Crescent Applied Research & Training (CERT) at and construction. Petroleum, Dana Gas, OMV of Austria the Higher Colleges of Technology in and MOL of Hungary. Abu Dhabi. In his capacity as a Board Member of the Crescent Group, Neeraj is responsible Additionally, Badr is active in a variety As a keen advocate of the arts, he is an for finance functions, and for building of other industries including ports and appointed member of the Guggenheim relationships with the investment and logistics, serving as Chair of the Executive Middle Eastern Circle, the Artistic Director’s banking community. Board of Gulftainer Group, the world’s Circle of The Old Vic Theatre Trust, and largest private container port operator. co-founder of the Middle East Theatre His numerous achievements throughout He plays an active role in private equity Academy. In 2014, Badr was awarded the his 26 years with the Group include the initiatives, serving as a member of the Gold Medal in the Arts by the Kennedy successful formation and capitalisation boards of The Abraaj Group (UAE) and Centre International Committee on the of Dana Gas, the US$1.2bn acquisition Growthgate Capital (Bahrain). Arts for his work to bridge cultures through and financing of Centurion Energy music and theatre. International Inc., and the Middle East’s In 2010, Badr founded the Pearl first forward-looking accelerated US$1bn Initiative, a non-profit venture in Badr is an active member of the Young Sukuk issued by an associate company cooperation with the United Nations Presidents’ Organisation (YPO), serving in 2007. The Sukuk received the 2013 Office for Partnerships to promote a as Ex-Officio Chair of the YPO Emirates ‘Restructuring Deal of the Year’ award at corporate culture of transparency and Chapter. Badr was honoured as a Young the International Financial Law Review accountability across the Gulf Region of Global Leader by the World Economic Middle East Awards ceremony. the Middle East. Forum and is Vice-Chair of its Global Agenda Council on Energy Security.

Crescent Enterprises Annual Report 2014 V. Ravi Kumar Tushar Singhvi Samer Choucair Executive Director VP, Corporate Development & Investments VP, CE-Ventures

Key Leadership Positions: Key Leadership Positions: Key Leadership Positions: • Investment Committee Member, • Investment Committee Member, • Executive Committee Member,  Crescent Enterprises Crescent Enterprises Global Gumbo Group • Board Member, Crescent Group • Board Member, Gama Aviation • Board Member, Clinical Pathology Services • Executive Committee Member, Samer Choucair is responsible for • Executive Director, Corporate Affairs & Clinical Pathology Services identifying, assessing, and incubating Business Services Crescent Petroleum • Investment Committee Member, innovative and sustainable start-up • Executive Committee Member, Gulftainer Group opportunities, including the launch of Crescent Petroleum • Fund Advisory Board Member, several projects focused on food and TVM Capital Healthcare Partners beverage (F&B), industrial clothing, Ravi Kumar is responsible for managing • Limited Partners’ Board Member, energy efficiency, cultural economy, and Crescent Enterprises’ global office Siraj Palestine Fund e-commerce. He also oversees Crescent operations with innovative and effective Enterprises’ entertainment subsidiary, common business services, including Tushar Singhvi is responsible for Global Gumbo Group (G3). accounts, human resources and evaluating and executing new organisational development, information investment opportunities, and managing Samer has more than 16 years of and communication technology, and existing portfolio companies through experience in start-ups across a variety supply chain management. He is also in strategy and corporate development. of industries, from entertainment to F&B, charge of providing strategic direction He has been instrumental in cultivating e-commerce, media, and healthcare in and management oversight for the and stewarding corporate prospects, as Canada, UAE, Saudi Arabia, Oman, Company’s operations and investments, well as contributing to the development and Singapore. and is equally involved in business and refinement of Crescent Enterprises’ development activities. strategic and operational plans within the ports and logistics, business aviation, Ravi initiated the development of the healthcare, and private equity verticals. framework for defining the Company’s sustainability strategy and objectives, Tushar has more than 12 years of with a view to drive change and ensure experience in investment management, that environmental health, social well- corporate finance, mergers and being and economic performance are acquisitions, strategy and project embedded in the organisation’s strategy, management in sectors including operations and reporting. power, logistics, oil and gas, healthcare and infrastructure development. He Ravi is a Board Member of the Crescent has worked on a range of transactions Group, responsible for overseeing including capital raising, divestment the corporate affairs and business advisory, debt advisory and services functions, playing a key role restructuring. in establishing a corporate governance framework for the Group and its key affiliated companies.

7 OUR STRATEGY

Crescent Enterprises has identified three core geographies, the Middle East and North Africa Region, Sub-Saharan Africa, and Developing Asia, and sectors within these areas that show significant growth potential.

Crescent Enterprises Annual Report 2014 IDENTIFIED PROSPECTS ARE Performance Management Financial Metrics CAPTURED THROUGH CRESCENT Crescent Enterprises focuses on Balance Sheet (US$ mn) ENTERPRISES’ CURRENT GROUP performance management by actively OF COMPANIES, AS WELL AS engaging with its companies and Total Assets THROUGH NEW PARTNERSHIPS AND ventures to drive value creation, in a 2014 1,461 INVESTMENTS IN COMPANIES WITH role which extends beyond commercial MOTIVATED MANAGEMENT TEAMS, influence, by actively providing 2013 1,438 AND ENTREPRENEURS WHO ARE strategic and operational guidance as 2012 977 DEDICATED TO BUILDING LONG- well as market and financial intelligence. 2011 543 TERM, SUSTAINABLE BUSINESSES In addition, we are represented on AND ENHANCING STAKEHOLDER each of our group companies’ Board Shareholder Funds VALUE. OUR FINANCIAL AMBITIONS of Directors and relevant committees, REMAIN FIXED ON DEVELOPING OUR enabling us to oversee and monitor 2014 958 CORE GROUP OF COMPANIES AND progress and performance, provide 2013 952 ACHIEVING SUSTAINABLE RETURNS strategic oversight, and ensure the 2012 806 OVER THE LONG-TERM. enforcement of best-in-class corporate 2011 463 governance standards. Evaluation Process When evaluating business and industry Financial Performance Revenues (US$ mn) opportunities, and how our expertise In 2014, Crescent Enterprises’ group can best be leveraged to create companies executed projects and 2014 412 enduring success for all stakeholders, investments worth US$177mn, including 2013 294 we use a clearly defined five-step the new investments in Samena 2012 157 process. The result of each stage is Limestone Holdings, and Duet-IBC MENA presented to Crescent Enterprises Real Estate Opportunities Fund. 2011 68 Investment Committee for review and approval.

Evaluation Process

Detailed Investment Initial Preliminary Diligence & Investment Terms & Screening Evaluation Legal Decision 1 2 3 Valuation 4 5 Documentation

Conduct an initial screening Investigate the opportunity Develop a valuation model Coordinate and execute Present a Final Investment of the opportunity against by performing preliminary and commence discussion multiple streams of due Memorandum and Post- pre-defined criteria industry and market research; on investment terms and diligence (commercial, Execution Memorandum to for assessment. analysis of the Company’s key principles (legal and financial, legal and the Executive Committee business plan and growth commercial). ESG assessment), and for final decision and post- strategy; assessment of the subsequently finalise all investment monitoring management team, and a execution documents protocols. preliminary Environmental, to produce a Post- Social and Corporate Execution Memorandum Governance (ESG) screening (100 day objectives, and to ensure the opportunity implementation checklist). complies with the ESG policy. A summary of this information is developed into an Opportunity Memorandum.

In 2014, a total of 45 industry opportunities were reviewed. The result of each stage of the evaluation process is presented to Crescent Enterprises Investment Committee for review and approval.

9 Group Companies OUR GROUP OF COMPANIES HAVE BEEN CAREFULLY COMPOSED AS A REFLECTION OF THE REGIONAL TREND TOWARDS DIVERSIFICATION, REVEALING A BALANCE BETWEEN OUR TRADITIONAL STRENGTHS IN INFRASTRUCTURE-RELATED INDUSTRIES AND ALTERNATIVE SECTORS OF THE ECONOMY.

Crescent Enterprises Annual Report 2014 11 GROUP COMPANIES

6.4mn/8%ä Gulftainer registered strong growth in throughput across all of its terminals by 8% from 6 million to 6.4 million TEUs.

Crescent Enterprises Annual Report 2014 GULFTAINER GROUP www.gulftainer.com

GULFTAINER GROUP (GULFTAINER) From 2012, Gulftainer began recording IS THE LARGEST, PRIVATELY OWNED, significant increases in its throughput INDEPENDENT PORT MANAGEMENT of 24 per cent to just under four million COMPANY IN THE WORLD, DELIVERING TEUs (Twenty-Foot Equivalent Unit), WORLD-CLASS PERFORMANCE TO followed by a 50 per cent increase to ITS CUSTOMERS FOR MORE THAN six million TEUs in 2013, driven primarily 38 YEARS. by its acquisition of Gulf Stevedoring Contracting Company in Saudi Arabia. The Sharjah-based company holds three UAE operations located in Khorfakkan 2014, was a significant year for Port, and Port Khalid in Sharjah, along Gulftainer as it took its first step into with Ruwais in Abu Dhabi where they North America after being awarded a manage operations on behalf of the 35-year concession by the Canaveral international plastics company, Borouge. Port Authority to operate the Port’s first container and mixed-cargo facility. In In addition to these activities, Gulftainer addition, Gulftainer registered a strong operates container and break-bulk growth in throughput across all of its cargo facilities in Iraq at Umm Qasr Port, terminals by 8 per cent from 6 million to Brazil at Recife Port, Lebanon at Tripoli 6.4 million TEUs. Meanwhile, individual Port, and container terminal facilities in facility highlights include a significant Jeddah and Jubail Ports in Saudi Arabia. combined growth of 46 per cent at the Gulftainer also operates in the USA, at company’s Iraq Container Terminal and Port Canaveral, Florida. Iraq Project Terminal at the Umm Qasr Port in Iraq. Crescent Enterprises’ long-term relationship with Gulftainer dates back Port Canaveral (USA) to 1976, when its parent company, Gulftainer made its strategic expansion Crescent Group, established it to into the USA in June 2014, at Port manage and operate the first Middle Canaveral in Florida to operate and East container terminal in Sharjah. develop its container and multi-purpose Crescent Enterprises supports the firm’s cargo terminal through a 35-year expansion efforts and offers strategic concession deal. The deal highlighted guidance on potential expansion and reinforced Gulftainer’s reputation opportunities through its representation for productivity, efficiency and the on Gulftainer’s Executive Board and credibility it derives from extensive Investment Committee. years of successful global operations. Crescent Enterprises Ownership: Port Canaveral currently handles 50 per cent ownership with approximately 40 million tonnes of Management Control mixed cargo annually and is one of the busiest cruise ports in the world. The container terminal, which is focused 2014 Highlights on the Caribbean, Latin America and Central Florida trade markets, is In line with the company’s commercial expected to generate US$280mn of strategy and growth, Gulftainer’s focus revenue to Port Canaveral, and will for 2014, remained fixed on activities in contribute more than US$630mn to support of its vision of becoming one Florida’s economy with more than of the world’s top container terminal US$350mn in tax contributions. operators through its comprehensive portfolio of projects spread across Gulftainer’s US$100mn investment in 6.4mn/8%ä the globe. infrastructure, equipment and locally- sourced human capital is also part of the extensive partnership, which is expected to generate approximately 2,000 direct and indirect jobs once fully operational by H1 2015. Gulftainer’s Sharjah Container Terminal operations

13 GROUP COMPANIES

GULFTAINER GROUP www.gulftainer.com

Jeddah & Jubail (Saudi Arabia) Customs procedures were also attuned, In less than one year from acquiring a involving an introduction to a new online 51 per cent stake in Gulf Stevedoring application system to create a seamless Contracting Company (GSCCO), the exchange of information and greater largest container terminal operator efficiency between the Sharjah Port in Saudi Arabia, Gulftainer enhanced Authority, customs and Gulftainer. efficiency by 30 per cent to achieve record breaking productivity levels Operational Updates in terms of terminal operations and a (Iraq, Brazil & Lebanon) growing customer base exceeding that Gulftainer’s operations in Iraq, Brazil of previous years. In March 2014, GSCCO and Lebanon showed advancement set a new ship productivity record at throughout 2014. Its operations at its Jeddah Northern Container Terminal Umm Qasr Port in Iraq saw record (NCT), achieving an impressive 209 growth of 46 per cent over its 2013 container moves per hour. The terminal throughput. Gulftainer also witnessed also signed a three-year contract with an influx of new business opportunities COSCO Container Lines, and set a as a result of the opening of the newly new monthly record in May 2014, for built Umm Qasr Logistics Centre, a container volumes of 179,525 TEUs. 750,000 square metre facility north of Umm Qasr Port in Iraq. This facility Khorfakkan & Sharjah (UAE) is connected to the port through a As one of the most important bonded corridor and has warehousing transshipment hubs in the region, and storage facilities, serving as a one- due to its unique location just outside stop-shop for all logistic needs. Steady the Strait of Hormuz, the Khorfakkan progress also continued at Gulftainer’s Container Terminal (KCT) remains operations in Brazil at Recife Port, with amongst the top performing container a 33 per cent improvement in EBITDA terminals in Europe, the Middle East from 2013, due to additional revenue and Africa Region as per the Journal sources and utilisation of assets in of Commerce. In support of its future Suape and other surrounding ports growth and to significantly strengthen in northeast Brazil. Construction also the terminal’s operational efficiency and remains on track for Gulftainer’s Tripoli overall productivity, Gulftainer made Port in Lebanon, which is scheduled to a US$60mn investment in state-of- commence operations by mid-2016, and the-art ship-to-shore and rubber tyred will accommodate some of the largest gantry cranes. The new equipment was container vessels operating in the also complemented by the company’s Eastern Mediterranean. implementation of new information and technology systems throughout its global operations, enhancing efficiency and ensuring greater security and safety 2015 Outlook for its customers and stakeholders. Gulftainer will continue to strive to be one of the world’s top container terminal Gulftainer’s Sharjah Container Terminal operators within the next 10 years, with (SCT) marked a significant milestone a key target of handling 18 million TEUs in 2014, surpassing 400,000 TEUs in globally. Coupled with its pursuit of new annual throughput throughout the year, growth opportunities, Gulftainer will with double-digit growth year-on-year. also continue to invest in its existing In addition to the terminal’s consistently terminals to expand their capacities and high productivity levels, volumes were further enhance their operations. boosted by the arrival of new services in 2014, including UASC’s Gulf India Service (GIS1), which connects Sharjah to Sohar in Oman, Mundra in India, and Karachi in Pakistan.

Khorfakkan Container Terminal is a top performer amongst terminals in Europe, the Middle East, and Africa Region

Crescent Enterprises Annual Report 2014 US$60mn Gulftainer invested US$60mn in state-of-art equipment at its Khorfakkan Container Terminal.

15 GROUP COMPANIES

3 million Kgs Delivery and storage of approximately 3 million kilograms in 2014.

Crescent Enterprises Annual Report 2014 MOMENTUM LOGISTICS www.momentumlogistics.com

MOMENTUM LOGISTICS (MOMENTUM) The success of the SAB product IS A FULLY INTEGRATED, THIRD PARTY demonstrated the value and opportunity LOGISTICS PROVIDER, OFFERING in leveraging the combination of all A COMPLETE SUITE OF SUPPLY Momentum’s business unit services. CHAIN MANAGEMENT SOLUTIONS INCLUDING TRANSPORTATION Operational Improvements FREIGHT FORWARDING, Throughout the year, Momentum WAREHOUSING, LOGISTICS CITIES invested heavily in improving its AND CONTAINER SERVICES. operational structure and processes for greater stakeholder value through the Launched in 2008, to enhance Gulftainer following actions: Group’s service offering, the company now has operations spanning the Middle • Continued the fleet replacement East, with headquarters located at the programme, introducing modern Sharjah Inland Container Depot (SICD). fuel-efficient vehicles. The fleet now comprises 110 commercial vehicles and Crescent Enterprises Ownership: 240 multipurpose trailers, deployed at 50 per cent ownership with multiple depots to optimise utilisation. Management Control

Momentum’s • Leveraged market share by introducing fleet consists of superior IT platforms to its operations, 110 commercial including a Global Positioning System, vehicles and 240 multipurpose trailers. 2014 Highlights an online bookings feature, and an The firm’s continued focus on aligning Electronic Data Interchange with its four divisions has created the customer platforms to ensure timely opportunity to identify and target access to accurate cargo information. specific business sectors and customers, to increase retention levels and • Operated at 100 per cent warehouse revenues. With this strategy, Momentum occupancy at SICD (300,000 square directed its attention towards exploiting feet) and developed further break bulk the regional trade environment cargo solutions at the Bonded Open and expanding its transportation, Storage at SICD (1,000,000 square feet). warehousing network, and specialised • Received in excess of 100 flights at the logistics service offerings. Sharjah Air Bridge (Sharjah International Revenue Airport) during 2014, resulting in the onward delivery and storage of The company witnessed an increase in approximately 3,000,000 kilograms. revenues and margins by diversifying its customer portfolio to be less ‘port • Leveraged agency agreements with centric’, and by implementing greater refrigerated spare part manufacturers cost efficiency measures throughout (Carrier, Themo King, Starcool and its operations. Diakin) to penetrate the spare part sales and warranty repairs market To attract higher-profile clients, within the Middle East. Momentum carried out a transport fleet replacement programme. The increased customer base created higher demand for contractual business, resulting in 2015 Outlook consistent revenue flows. Over the next five years, Momentum Momentum also introduced new will capitalise on the growth in products and services for each of consumerism, rapid industrialisation, its divisions, increasing the business and greater focus of governments in the volumes from both existing and new Middle East on the logistics industry, by customers. Among its most successful using its strong and unique asset base. additions is the Sharjah Air Bridge This includes Oman’s development of (SAB) product, which outperformed logistics as a key driver to economic expectations with a throughput in excess diversity, and Saudi Arabia’s substantial of 3,000,000 kilograms during 2014. industrialisation programme which will demand modern logistics solutions.

17 GROUP COMPANIES

145+ aircraft

Gama Aviation operates through 44 locations across five continents, and manages a fleet of over 145 aircraft.

Crescent Enterprises Annual Report 2014 GAMA AVIATION PLC www.gamaaviation.com

GAMA AVIATION PLC IS A LEADING, Under the terms of the agreement, LONDON STOCK EXCHANGE (AIM)- Hangar8 Plc took on 27.3mn new LISTED GLOBAL BUSINESS AVIATION ordinary shares worth £2.80 (US$ SERVICES PROVIDER, FOUNDED IN 4.38) each, translating to a valuation 1983 IN THE UNITED KINGDOM. of £82.3mn (US$128.5mn) for Gama Aviation and a combined market The company offers business aircraft capitalisation of the new entity, Gama charter, aircraft management, Fixed Aviation Plc, of approximately £120.4mn Base Operations (FBO), engineering, (US$188mn). design and maintenance, aircraft valeting, and aviation software services. As part of the transaction, a primary Gama Aviation Plc has a network of issuance of 6.13 million new ordinary 44 operating locations across five shares was made, and £17.2mn continents, managing a fleet of more (US$26.9mn) was raised to pay off than 145 aircraft. existing debt as well as provide further working capital to the new entity. The company’s global headquarters is located at Farnborough Airport in The two businesses, which share similar the UK, with regional headquarters in growth strategies and geographic Connecticut, USA; Sharjah, UAE; and locations, have combined their Hong Kong, China. strengths to take advantage of the global and regional business aviation Crescent Enterprises has played an sector’s anticipated growth, placing it active role in Gama Aviation’s strategic high amongst its market competitors. direction, by means of Board and As Gama Aviation Plc, the enlarged Executive Committee representation group now has more than 145 aircraft since the Company’s investment in under management, operating from 44 2007. It also offers insight and support different locations in 15 countries across for Gama Aviation’s operations in the five continents, with a strong presence Middle East, providing a regionally- in North America, UK, Continental focused perspective through the Europe, Africa, Middle East, Asia, and Company’s long-standing history and South America. understanding of the region. Sharjah International Airport Crescent Enterprises Ownership: In July 2014, Gama Aviation opened Significant Minority its exclusive executive terminal (FBO) at Sharjah International Airport, a full- service business aviation hub serving Sharjah, Dubai and the Northern 2014 Highlights Emirates, welcoming over 1,000 VIP Gama Aviation focused its attention for passengers and 1,300 crew from August the year on consolidating its market 2014 to the year’s end. The new terminal, presence in the USA and the Middle which provides streamlined processes East, as well as consolidating the UK for customs and boarding, has cut travel engineering businesses. The company time down significantly for executive also made an announcement on 8 jet passengers, and has aided Sharjah December 2014, of its intention to stage International to position itself as a highly a reverse takeover of Hangar8 Plc, a credible business aviation gateway to leading UK-based private jet operator. the Northern Emirates. The terminal is in the first phase of a US$15mn investment Reverse Takeover to supplement Gama Aviation’s existing In December, Gama Aviation infrastructure. announced the reverse takeover of AIM-listed Hangar8 Plc, which manages 48 business aircraft. The takeover completed on 8 January 2015.

Gama Aviation’s Fixed Base Operations in Sharjah, UAE is a popular private aviation gateway to the Northern Emirates.

19 GROUP COMPANIES

GAMA AVIATION PLC www.gamaaviation.com

The second phase, expected to be Operator Certificate completed by the end of 2015, will Gama Aviation was awarded the Swiss include a hangar facility catering to Air Operator Certificate, allowing the business jets and the development company to offer third party charters of aeromedical infrastructure, a core out of Switzerland from its own fleet of competency of the company, flying over business jets, setting the stage for Gama 3,400 aeromedical flights a year. Aviation to further expand its existing activity in Europe, Russia, and the Wheels Up Partnership Middle East. Gama Aviation’s operating partnership with Wheels Up, a membership-based private aviation company focused on reducing the upfront investment cost 2015 Outlook for private travellers, has continued Following its recent reverse takeover, to thrive. In October 2013, it was Gama Aviation Plc, as it will be known, awarded a contract to manage and will look towards opportunities operate a Wheels Up US-based fleet of that maximise its scale, expand its Beechcraft King Air 350i and Citation unparalleled breadth of geographical XLS aircraft through seven ‘regional coverage and its depth of capability and clusters’, including Gama Aviation’s FBO service. This includes interests to expand in Teterboro, New Jersey, USA. Gama its footprint in the wider Asia region, Aviation marked a successful 12 months through full service offerings including of service in 2014, having recruited 156 aircraft management, charter services, pilots, supporting more than 40 flights Fixed Base Operations, maintenance and a day, and maintaining a fast growing repair. The Asian expansion will be made fleet of more than 37 aircraft. Wheels Up through a joint venture with Hutchinson has also stated its intention to use Gama Whampoa (China) Ltd, one of China’s Aviation for the launch of its European leading conglomerates. operations in 2016. The company also plans to widen Defence Contracts its presence at Sharjah International The company was awarded a contract Airport with heightened engineering to supply the design solution and major capacities, through its commitment to parts to the British Army, for Traffic building a new hangar, for purposes Alerting Systems, GPS and 8.33kHz of maintenance and aircraft storage VHF comms upgrade to a number of its to accommodate the increasing range Gazelle helicopter fleet. of Sharjah-based and visiting aircraft. Gama Aviation is also taking measures Charter Fleet Expansion to broaden its engineering coverage Gama Aviation added a Legacy 600 with additional types and certifications, and Challenger 600 to its growing fleet enabling it to serve a wider variety of of aircraft, in addition to the multi-role customers. Beechcraft King Air 350 C turboprop, a unique add-on providing four optional configurations for executive, commuter, cargo and medivac purposes. Prior to the reverse takeover of Hangar8 Plc, the fleet total stood at 96 aircraft under management.

Gama Aviation has over 300,000 sq. ft. of hangar maintenance space across its operating bases.

Crescent Enterprises Annual Report 2014 156 pilots in 12 months In 2014, Gama Aviation recruited 156 pilots to support its growing partnership with Wheels Up in the USA.

21 GROUP COMPANIES 728 MW of Power

Uruk is the first EPC contractor to complete an Iraqi Ministry of Electricity Fast Track project and also completed the 728 MW project in record time.

Crescent Enterprises Annual Report 2014 URUK ENGINEERING & CONTRACTING www.urukgroup.com

URUK ENGINEERING & CONTRACTING The FAC is only given when five criteria (URUK) OFFERS TURNKEY SOLUTIONS are met: a Reliability Test Run (RTR) is IN ENGINEERING, PROCUREMENT AND undertaken, a performance test of the CONSTRUCTION (EPC) WITH PROJECTS generator is set; a punch list (a checklist RANGING FROM POWER, OIL AND GAS, of works to evaluate) is completed; TO PETROCHEMICALS, WASTE WATER a Preliminary Acceptance Certificate AND INFRASTRUCTURE, USING ITS OWN (PAC) is issued; and finally, the defect ASSETS AND RESOURCES. liability warranty period has ended. Uruk was also awarded the ISO Since its inception in 2003, the company 9001:2008 certificate for its quality has consistently demonstrated leadership management system. in the field and worked with a variety of global companies, including Bechtel Thought Leadership International, GE, Alstom, and ABB, in Uruk demonstrated thought leadership addition to several Iraqi ministries. Uruk in the energy sector throughout 2014, is headquartered in Dubai, UAE, with an with Dr. Jafar D. Jafar, CEO of Uruk, office in Baghdad, Iraq. speaking at several high profile events. In February, he spoke at MEED’s Iraq Crescent Enterprises plays an influential Energy Projects, and in May he gave role in providing strategic support to a speech entitled ‘The Challenges of Uruk, working closely with the company Providing Fuel to Iraq’s Power Sector’ at to provide the highest standards of the Iraq Future Energy Forum. He also corporate governance at every level of covered the topic of the ‘Gas Challenge the value chain. for Iraq’s Power Sector’ at the Iraq Power and Iraq Petroleum conferences in June. Crescent Enterprises Ownership: Significant Minority

2015 Outlook 2014 Highlights Uruk will concentrate on rehabilitation projects for existing power plants, Al Mansuriya Power Plant many of which will require significant Uruk’s commitment to Iraq over the past maintenance or expansion in order seven years as a leader in the country’s to optimise the efficiency of their most important energy projects was output. It will also help repair power reinforced in 2014, upon the completion plants damaged during recent military of its most recent 728 MW power plant activities throughout the Middle East. project in Al Mansuriya. This power plant falls under Uruk’s three-contract In addition, Uruk will continue to partnership with the Iraqi Ministry of increase its involvement in the oil Electricity, to rebuild the country’s and gas sector, extending its services infrastructure. Not only was Uruk the to projects commissioned by the first EPC contractor to complete a government, with entities such as the Ministry of Electricity Fast Track project, South Oil Company, the South Gas but it also completed the 728 MW Company and the Basrah Gas Company. project in record time. The firm’s efforts Uruk’s commitment to this sector is also culminated with an impressive significant, whereby it also plans to environmental health and safety record, develop oil and gas fields in central with 6 million man-hours recorded Iraq, namely the Diyala Region. without any major incident on-site at the company’s projects in Taji, Qudus and Finally, Uruk has identified positive Mansuriya. prospects in the private sector. The company is evaluating the feasibility In addition, the Ministry of Electricity of establishing an international recognised Uruk’s efforts for work consortium of companies to fully build The Al Mansuriya completed in 2012, issuing the first Final and implement an independent power power plant, completed Acceptance Certificate (FAC) that any plant in Iraq in an effort to diversify in 2014, is one of the firm’s three projects EPC contractor has received in 25 years, its portfolio. with the Iraqi Ministry for the Taji Power Plant Project. of Electricity.

23 GROUP COMPANIES

CLINICAL PATHOLOGY SERVICES www.cpslabs.com

ESTABLISHED IN 2005, CLINICAL Clientele Growth Additionally, through its efforts PATHOLOGY SERVICES (CPS) WAS Encouraged by the Dubai Healthcare to propel client engagement, CPS THE FIRST PURPOSE-BUILT, STAND- Authority’s (DHA) introduction of launched focused ‘Business to ALONE PRIVATE MEDICAL TESTING mandatory medical insurance in Consumer’ marketing campaigns aimed LABORATORY IN DUBAI. the Emirate by 2016, CPS has been at educating and enhancing public empanelled with insurance firms, awareness on healthcare issues and Fully equipped to meet the growing positioning itself to increase its clientele. wellness throughout the UAE. demand for healthcare and world- class clinical standards in the region, In line with its long-term objectives to CPS also implemented a new state of CPS is the first fully Clinical Pathology expand service offerings and operations, the art Laboratory Information System Accredited (UK) pathology laboratory in 2014, CPS became the first lab to and related applications, leading to outside of the European Union. hold an Import Licence in the UAE. enhanced efficiencies and improved The firm used this to broaden its customer relationship management. It is also the first UAE facility to achieve coverage in select African and Asian The new system enables automated the General Civil Aviation Authority countries, including Yemen and pathology processes with easy tracking accreditation, for the purpose of Afghanistan, where it offers specialised and monitoring of specimens, and faster carrying out drug and alcohol testing in testing at affordable prices. verification of key patient demographics, the aviation industry. The laboratory also test results and quality controls. holds international affiliation agreements Enhanced Technology & Efficiency with Guys’ and St. Thomas’ NHS Medical Research & Development Coupled with its external outreach Foundation Trust and King’s College initiatives, the company’s efforts CPS explored areas for potential medical Hospitals in the UK. to implement technology-focused research and development throughout the region in 2014. These efforts resulted Crescent Enterprises holds a majority improvements for both its services and in CPS welcoming medical research stake in the business, with management communication with clients played institutions to its Dubai laboratory control, while Dr Mashal Nawab is a a prominent role in its customer and to discuss potential collaboration founding partner. Crescent Enterprises revenue growth. opportunities aimed at the advancement works closely with CPS’ management In May 2014, CPS launched its new of global diagnostic and medical to achieve its vision of becoming the website, not only featuring detailed research in the Middle East. leading diagnostic service provider of information on its specific laboratory choice in the region. While supplying service offerings, but also serving as a strategic direction in examining trusted resource by providing practical, corporate development opportunities, medical information for the public 2015 Outlook Crescent Enterprises also provides and practitioners. CPS will continue implementation of support to CPS in certain functions, its business development initiatives including finance, legal, IT, human to increase value for its stakeholders. resources and insurance. Focus will also remain on further expanding CPS’ operations and service Crescent Enterprises Ownership: offerings in the UAE through strategic Majority with Management Control collaborations, specifically targeting the ‘Business to Consumer’ segment and the insurance market. Exploration of price 2014 Highlights sensitive markets and partnerships with healthcare partners to build long-term, To fully capitalise on the current and mutually beneficial relationships future potential of the healthcare will also remain important focus areas diagnostics market in the UAE, and for the company. to further enhance its international footprint, CPS focused on the implementation of several initiatives in 2014. These targeted areas include clientele growth, enhanced technology, CPS is the first fully Clinical efficiency, and medical research and Pathology Accredited (CPA UK) pathology development. laboratory outside of the European Union.

Crescent Enterprises Annual Report 2014 2,000+

CPS provides a comprehensive suite of over 2,000 laboratory tests and 40 profiles.

25 GROUP COMPANIES

Talent Development

G3’s first signature artist, Lebanese singer, Xriss Jor, is working on her international debut album with Quincy Jones’ production team.

Crescent Enterprises Annual Report 2014 GLOBAL GUMBO GROUP www.globalgumbogroup.com

GLOBAL GUMBO GROUP (G3) IS A Production & Management In the coming year, G3 is working FIRST OF ITS KIND CROSS-CULTURAL of ‘Xriss Jor’ towards producing an Extended Play MUSIC AND ENTERTAINMENT (EP) album and music video for Xriss Jor, COMPANY, CO-FOUNDED WITH Xriss Jor first hit the spotlight at the and will support the release of her first LEGENDARY, MULTIPLE GRAMMY inaugural music industry trade show of international debut set for 2016. AWARD-WINNING MUSIC PRODUCER, the Middle East, Dubai Music Week in QUINCY JONES. the exclusive Quincy Jones Talent Search competition, which included a panel of By developing multimedia opportunities judges comprising the industry’s top 2015 Outlook across each entertainment platform music producers, Timbaland, and Black In addition to further developing its devoted to nurturing new Arab talent Eyed Peas artist, Will.iam, and Quincy current and future growing list of events and acquiring cross over content to Jones himself. Among a select group of and multimedia ventures, G3 has set launch globally, G3 sets out to shape competing artists who were nominated out to restructure its overall business the future of the music industry and by executives from Sony, University strategy and objectives in the coming associated entertainment in the MENA Music and A&R, the Lebanese songstress year. This includes incorporating a Region. The firm operates in Dubai, UAE, was chosen as the winner after delivering broader scope of projects beyond the and Los Angeles, USA. a show-stopping rendition of Beyonce’s live entertainment and events space that song ‘Listen’. Xriss Jor also walked away it currently occupies. As a co-founder of the company along from the event with a production and with Quincy Jones Production, Crescent management deal with G3 and a once- Enterprises participates in the strategic in-a-life time opportunity to have the and financial guidance of G3, with a legendary Quincy Jones produce her focus on leading the commercial and debut single. legal evaluations of all proposed projects and correlating budgets with overall Following her win, Xriss Jor headed business performance. to the USA to work on her album with Quincy Jones’ production team, and an Crescent Enterprises Ownership: exclusive panel of writers and composers 50 per cent ownership with from the upper echelons of the music Management Control industry whose portfolios include top female artists Rhianna and J-Lo, among others. With a voice as prominent and powerful as the likes of Adele, Alicia 2014 Highlights Keys, and Etta James, Xriss Jor is While continuing to actively pursue expected to join this powerhouse’s ranks, and develop new projects, G3 placed adding a unique touch of Arab flavor its attention on the management and to the mix. production side of the company, with a special focus on the growth of its first signature artist, Lebanese singer Xriss Jor.

Lebanese singer Xriss Jor was named the winner of the Dubai Music Week Quincy Jones Talent Search competition in 2013.

27 Private Equity Investments CRESCENT INVESTMENTS IS THE DIVISION WHICH HOLDS ALL OF THE PRIVATE EQUITY AND OTHER ALTERNATIVE INVESTMENTS OF CRESCENT ENTERPRISES. WITH A LONG-TERM VIEW, ITS STRATEGY IS GEARED TOWARDS MAINTAINING A BALANCED PORTFOLIO BY INVESTING ACROSS ALTERNATIVE ASSET CLASSES, INCLUDING PRIVATE EQUITY, VENTURE CAPITAL AND REAL ESTATE.

Crescent Enterprises Annual Report 2014 29 PRIVATE EQUITY INVESTMENTS

THE ABRAAJ GROUP www.abraaj.com

THE ABRAAJ GROUP (“ABRAAJ” OR 2014 Highlights Liberty Star Consumer Holdings: Abraaj THE “GROUP”) IS A LEADING PRIVATE Abraaj has evolved into a purpose- acquired a majority stake in Liberty Star EQUITY INVESTOR OPERATING IN built next-generation firm, exploring Consumer Holdings (Libstar), one of the GROWTH MARKETS ACROSS AFRICA, sustainable investment opportunities, largest unlisted food and personal care ASIA, LATIN AMERICA, THE MIDDLE directing its interests throughout a manufacturers in South Africa, offering EAST AND TURKEY. EMPLOYING OVER diverse group of high-growth industries a range of quality private label and 300 PEOPLE, ABRAAJ HAS MORE within the consumer, education, own-branded products. The company, THAN 25 OFFICES SPREAD ACROSS healthcare, financial services and energy which operates nationally through 28 FIVE REGIONS WITH HUBS IN DUBAI, infrastructure sectors. business units and is located in five of ISTANBUL, MEXICO CITY, NAIROBI, South Africa’s nine provinces, employs AND SINGAPORE. During 2014, Abraaj completed 12 around 4,200 people with nationwide new investments, deploying over manufacturing, supply and distribution The Group currently manages c. US$9bn US$450mn across seven countries capabilities. Abraaj will continue to across regional, sector and country and five sectors, including healthcare, support Libstar’s buy and build strategy, specific Funds. Abraaj has realised c. industrials, education, consumer staples as well as the company’s growth US$5.1bn from over 70 full and partial and consumer discretionary. Abraaj also strategy, which includes new product exits, and Funds managed by the Group completed 19 full and partial exits, and lines and an upgrade and expansion to have made over 140 investments across realized over US$280mni of value across its existing facilities. 10 sectors including consumer, energy, 14 countries and eight sectors. financials, healthcare and utilities. Additional Business Highlights The Group is committed to the highest New Investments Investments environmental, stakeholder engagement Polyclinique Taoufik: Abraaj acquired • Stake in La Flèche Bleue Algérienne, a and corporate governance standards a majority stake in Polyclinique Taoufik, leading Algerian company specialising and is a signatory to the United Nations- the first private healthcare institution in transportation and logistics services backed Principles for Responsible established as part of efforts to Investment and the United Nations modernise Tunisia’s healthcare system. • Majority stake in Turkish dairy business Global Compact (UNGC). Abraaj’s The hospital currently treats 75,000 Yörsan Group, in partnership with founder, Arif Naqvi, was appointed to in-patients and out-patients annually, EBRD and the Yörük family UNGC Board by UN Secretary-General and is the second largest in Tunisia Ban Ki-moon in 2012, and to the Interpol with a bed capacity of 136. Abraaj aims • Acquisition of a stake in KPN Academy, Foundation Board in 2014. to increase patient capacity, add new one of Thailand’s leading out-of-school services, upgrade and renovate the education service providers As a Founding Shareholder and hospital, and invest in human resources Limited Partner, Crescent Enterprises and training. • Majority stake in Wine Connection monitors the performance of all invested Group, Southeast Asia’s leading wine- funds, and takes a keen interest in the Kool Food: Abraaj invested in themed Food and Beverage chain strategic rationale employed by Abraaj, Kool Food, a Moroccan chocolate including review of select co-investment confectionery manufacturer targeting opportunities. Crescent Enterprises also the fast-growing mass consumption provides strategic guidance by means of market with affordable products. representation on Abraaj’s Board Kool Food offers several categories of Directors. of products, which are sold locally as well as exported to countries in the Crescent Enterprises Investment Maghreb Region, including Algeria and Interest: Founding Shareholder and Tunisia. Abraaj will enhance Kool Food’s Limited Partner offerings with new products and assist it in implementing social and governance standards throughout the corporation.

Investment Sectors

Consumer Staples 55% Healthcare 21% Consumer Discretionary 14% Education 7% Industrials 3%

i. Including c. US$56mn from pre-IPO sale of IDH to Actis which was signed in 2014 and realized subsequently in 2015

Crescent Enterprises Annual Report 2014 Exits Fibrex: Abraaj exited its 2007 2015 Outlook Integrated Diagnostics Holdings: investment in Fibrex, an Angolan Through its regional funds, Abraaj will Private equity firm, Actis, in December manufacturer of high-density continue to target a group of high- 2014, acquired a 21 per cent stake in polyethylene (HDPE) and other low- growth industries in global growth Integrated Diagnostics Holdings, out of pressure plastic pipe products used markets, seeking to invest in firms with which 10.4 per cent was sold by Abraaj. in the construction industry. Over sustainable competitive advantage and Since its investment in 2008, Abraaj has the course of Abraaj’s investment, market-leading brands with potential helped the local brand grow by opening Fibrex’s production volume increased for consolidation. Additionally, Abraaj more than 200 new branches, upgrading organically by over 70 per cent. will launch thematic funds focused on equipment and IT, recruiting executives Additionally, Fibrex secured ISO 9001 healthcare, energy infrastructure and and improving the company’s social certification for adherence to the highest real estate. responsibility activities. international standards, and improved its environmental efficiency by upgrading Moulin d’Or: Abraaj completed a full exit its facilities to recycle by-products of the of its 2012 investment in Moulin d’Or, production process. a leading producer of baked goods in Tunisia. With Abraaj’s close operational Additional Business Highlights and financial support, the company Exits expanded its regional footprint, namely • Analistas de Recursos Globales, a through the creation of a joint venture Mexican leasing solutions provider in Algeria and the increase of exports to Libya. Moulin d’Or also built a strong • Lasacorp International, a prominent distribution network, consisting of 160 Peru-based retailer specialising in independent distributors with the ability women’s accessories to reach more than 8,000 points of sale. • Pancake House, one of the largest fast Abraaj completed casual dining chains in the Philippines 12 new investments and 19 full and partial exits.

31 PRIVATE EQUITY INVESTMENTS

GROWTHGATE CAPITAL www.growthgate.com

GROWTHGATE CAPITAL IS A 2014 Highlights Portfolio Updates GROWTH INVESTMENT FIRM Growthgate Capital continued to focus Averda International: Averda THAT ENGAGES IN DIRECT EQUITY on mid-sized platform/target companies International (Averda) is the single INVESTMENTS, FOCUSING ON MID- in the GCC and other key markets of largest environmental solutions provider SIZED COMPANIES IN THE GCC AS the MENA Region. While committed to specialising in integrated resources WELL AS ON SELECT MARKETS OF its current portfolio of companies and management in the MENA Region. THE WIDER MENA REGION. reviewing investment opportunities, the firm’s most significant movements in Following its impressive operational The firm was incorporated as a closed 2014, were the exit of its investment in expansion momentum the previous joint stock company in Bahrain in 2007, Able Logistics and the reverse merger year, in 2014, Averda opened additional with a capital base of US$200mn, of Gama Aviation. operational bases in Africa after winning and today holds a portfolio of five a five-year street cleaning contract companies following two exits in 2014. Exits with Angola and Gabon, and acquiring Through its ‘buy & build’ strategy, a majority stake in Wasteman Holdings Growthgate Capital has succeeded in Able Logistics Group: Growthgate Capital completed a dividend recap Ltd in South Africa. Furthermore, investing and building the capacity Averda expanded operations in Morocco of its portfolio companies within its on Able Logistics Group, a leading freight forwarder and logistics provider by signing a seven-year contract in core businesses, while expanding Casablanca, and secured several water international operations. throughout the Middle East. With the recapitalisation, and from antecedent contracts in Abu Dhabi and Saudi Arabia. The company was also chosen As a Founding Shareholder, Crescent dividend repayments, Growthgate to provide services to the UAE, after Enterprises provides strategic Capital realised circa 145 per cent return being selected by the Dubai Municipality guidance by means of representation on its original investment. This was to launch the Emirate’s first electronic on Growthgate Capital’s Board of followed by a complete exit of Able waste collection service as part of Directors. Crescent Enterprises also Logistics Group in December 2014, by the city’s goals for a sustainable takes a keen interest in the strategic selling its 70 per cent equity stake to recycling programme. rationale employed by the firm on Kerry Freight Services (Kerry) of South Asia for US$32mn. Through these two select investment decisions and International Food Services: transactions, Growthgate Capital has co-investment opportunities. International Food Services (IFS) is a realised a 2.7 times return on its food conglomerate covering distribution, Crescent Enterprises Investment initial investment. food processing, catering, retail, and Interest: Founding Shareholder Gama Aviation: Gama Aviation franchise retail services across the successfully completed a reverse Middle East. takeover of Hangar8 Plc. The new The company extended its network to entity, Gama Aviation Plc, was valued Yemen, Jordan, Libya, Sudan, South for purposes of the reverse merger at Africa, Mauritius and the Seychelles US$188mn. through the appointment of local distributors and agents, adding to its current operations across Saudi Arabia, UAE, Egypt, Syria, and Lebanon. IFS recorded an improvement in revenue generation in 2014, outperforming the revenue growth rates of its industry average of 6.65 per cent and peer companies. The improved performance was primarily due to newly won projects in the catering and labour services division, an increased focus on high margin private label products in Saudi Arabia and other markets; and increased utilisation of the food processing plants.

Crescent Enterprises Annual Report 2014 IrisGuard, Inc.: IrisGuard, Inc. (IG) is a leading provider of iris recognition solutions. The firm focuses on managing human identity requirements, supporting its customers and system integrators in building large-scale iris solutions using patented custom- designed iris cameras that ensure unequalled performance and accuracy.

IG completed the successful application of its technology in the banking sector and UN projects, most notably the registration of 60,000 Syrian refugees in Jordan and Lebanon in 2014. This success led to securing repeat orders from its key existing customers as well as the consideration of a larger pipeline of potential projects. IG’s technology is gaining ground in the banking and humanitarian relief sectors in the Middle East, where it has been tested and proved successful.

Rubicon Group Holding: Rubicon Group Holding (RGH) is a diversified global 2 Major Exits entertainment and animation production company, which develops innovative Growthgate Capital entertainment experiences and made 2 significant interactive educational content across all media platforms. RGH offers products movements in 2014, with RGA also expanded its retail distribution and services in the following business the exit of its investment by growing its private label products streams: Entertainment; Themed and broadened the reach of its design Entertainment; Digital Media; Licensing in Able Logistics and and build business within promising Patent Technology and Intellectual the reverse merger markets in the UAE, Qatar, Egypt and Property Licensing; and Merchandising. other GCC countries. In 2014, RGH added several high value of Gama Aviation. projects to its themed entertainment and educational content pipeline in Through five production facilities and 2015 Outlook Saudi Arabia and France. 40 retail outlets, RGA serves as a manufacturer, wholesaler, retailer, and In addition to seeking opportunities Roots Group Arabia: Roots Group specialist contractor for construction for its additional US$200mn investment Arabia (RGA) is a building materials materials and specialised equipment, over the coming years throughout solutions provider based in Saudi Arabia an interior designer and provider of key markets, Growthgate Capital is with additional operations in Egypt, furniture, fixtures and fit-outs. actively seeking to conduct two entry Malaysia, Lebanon, Syria, China, UAE, investments and complete two Qatar, Jordan, UK, and Nigeria. In 2014, RGA further expanded its exits in 2015. manufacturing division for specialty products and industrial consumables (particularly in relation to paints, chemical lines, power generators, pipes and plumbing materials) to meet growing local demand.

33 PRIVATE EQUITY INVESTMENTS

TVM CAPITAL HEALTHCARE PARTNERS www.tvm-capital.ae

TVM CAPITAL HEALTHCARE PARTNERS 2014 Highlights Portfolio Updates (TVM) IS A PRIVATE EQUITY AND Within just five years and with five Bourn Hall International: Bourn Hall GROWTH CAPITAL FIRM FOCUSED ON investments to date, TVM has already International (BHI), originally based in INVESTMENTS IN THE HEALTHCARE established itself as a leading developer the UK, is the world’s leading centre for MARKETS OF THE MENA REGION, of healthcare business concepts, as well the treatment of infertility. The clinic INDIA, AND TURKEY. as an investor and leader in building introduced In Vitro Fertilisation (IVF) to growth businesses in private healthcare the MENA Region through its operations The firm’s portfolio investments include in the MENA Region and India. After in Dubai, UAE (BHI Dubai) and in Cochin specialist services that are either non- closing the TVM Healthcare MENA I and Gurgaon, India (BHI India). existent or drastically under-supplied, Fund in 2012, at US$50mn, the firm’s such as long-term care, rehabilitation, total assets under management are The last quarter of 2014, showed around the clock and intermittent home close to US$120mn, including co- tremendous growth for BHI Dubai, with care, and world-class fertility treatment. investments from investors in all five of the treatment of its highest number of TVM is affiliated with TVM Capital its portfolio companies. The company patients since its inception in 2012 and Group, which has managed healthcare also leveraged its widespread global 1,245 IVF cycles conducted throughout and life science capital for 30 years, network to evaluate new opportunities in 2014. The clinic also reported its highest with more than 130 investments and collaboration with international partners. positive pregnancy rate ever 90 exits, and approximately 45 Initial at 77.3 per cent. Public Offerings. In parallel with the activities of its portfolio companies and TVM BHI India was recognised as one of the As a private investor dedicated to Operations Group, TVM also established best healthcare providers in the field the healthcare industry in emerging representative offices in Lebanon and of superior leadership, technological markets, TVM conceptualises, develops Boston in 2014, to provide research innovation, customer service, and and invests in healthcare companies support for TVM and its portfolio strategic product development on that have a significant impact on local companies and a framework for its both a national and international level, healthcare infrastructure. While the growing network of clinical partners, for which it received the IVF Service firm’s aim is to generate profit for its advisors, and collaborators in and Provider of the Year in Speciality Chain investors, it has combined its economic around Boston. Category Award at the Frost & Sullivan approach with a social purpose of Healthcare Excellence Awards 2014. creating centres of excellence in New Investments healthcare in regions where access to high quality providers and products are Ameco Medical Industries: In December not available. 2014, TVM acquired a majority stake in Ameco Medical Industries, a medical Crescent Enterprises actively monitors device manufacturer in Egypt, marking the portfolio of TVM and its resulting the firm’s first investment in the country yields through regular contact with the and first investment in the medical device company’s senior management. It also sector in the MENA Region. Ameco provides strategic support through Medical Industries, which was established representation on TVM’s Fund in 1991 and is listed on Egypt’s Nile Advisory Board. Exchange small company stock market, leads in the design and production of a Crescent Enterprises Investment comprehensive range of products across Interest: Limited Partner dialysis, urology and central venous catheters, and has a new product range of percutaneous sheath introducers and diagnostic catheters. The transaction was a public to private buy-out, acquiring existing financial investors and majority of free float, and infusing growth capital for expansion plans over the next few years, with a strong push into US and European markets and increasing manufacturing capacity.

Crescent Enterprises Annual Report 2014 Manzil Health Care Services: Manzil After closing the TVM Health Care Services, founded in 2011, as Emirate Outreach Healthcare Healthcare MENA I Services, provides high-quality care and rehabilitation services in the comfort Fund at US$50mn, of the home for adult and paediatric patients in the MENA Region. The TVM’s total assets under company is now the largest home management are close to care service provider in the UAE with more than 140 nurses, therapists, and caregivers. US$120mn A new office in Dubai was added to including co-investments the clinic’s list of UAE-wide facilities in 2014. The latest facility will offer from investors in all the services of eight Department of Health Authority-licensed nursing staff five of its portfolio for paediatric and adult patient care companies. to residents of the area. Since TVM’s investment, the company has been the ProVita International Medical Center: only UAE home services provider to ProVita International Medical Center secure licenses in several UAE Emirates, offers long-term care for ventilated while recruiting key executives in various patients, and those requiring continuous positions, and providing support to medical and nursing intervention for In 2014, TVM Capital Healthcare Partners the company’s infrastructure. Manzil is serious medical conditions in a non- Inc. was established in Boston to provide licensed in Abu Dhabi, Al Ain, Ras Al hospital setting. a framework for the firm’s growing Khaimah and Dubai, and is currently in network of clinical partners, advisors, the process of licensing and developing With a current capacity of 90 beds and collaborators in and around the a presence in new markets, including in the UAE, ProVita has over 350 area. With a presence in the emerging Saudi Arabia, Qatar and Jordan. employees providing around the clock hub, TVM will continue to build its medical care and 24-hour physician Cambridge Medical & Rehabilitation current relationship with academic coverage. ProVita received its first Center: Cambridge Medical & centres associated with Harvard Medical patient in January 2011, and marked a Rehabilitation Center (Cambridge) is an School, Partners Healthcare and other total patient count of 77 by the end of Abu Dhabi-based medical care company, top notch healthcare organisations. December 2014. A second facility in providing individualised, non-acute long- Abu Dhabi is expected to be operational term care and therapies to patients. by June 2015, adding another 30 beds, The medical care company saw progress bringing total capacity to 120 beds. 2015 Outlook Expansion projects into Qatar and Saudi in 2014, both at the real estate and TVM will continue to expand its Arabia are also in progress. management levels. The construction companies across the MENA Region, of Cambridge’s Abu Dhabi facility was Affiliation Agreements: As part of its with a focus on the GCC, Levant Region, completed and opened its doors with vision to provide a continuum of care Egypt and India, with projects already 45 beds in June 2014, with an additional to patients across the region and to begun in Qatar and Saudi Arabia. These 45 beds in December 2014, bringing have direct involvement with research efforts will also remain coupled with the total capacity to 90 beds. Al Ain and community education activities, firm’s continued collaborative efforts Phase I, which will hold 45 beds, was TVM holds affiliation agreements with with its existing and new international also completed and operations are US-based Joslin Diabetes Centre and partners. expected to commence in Q2 2015. Spaulding Rehabilitation Centre. The company has also begun the process to expand in Dubai, Qatar and Saudi Arabia.

35 PRIVATE EQUITY INVESTMENTS

SIRAJ PALESTINE FUND I www.siraj.ps

THE SIRAJ FUND MANAGEMENT 2014 highlights Portfolio Updates COMPANY (SFMC) WAS FOUNDED BY In line with its sustainable development WebTeb: WebTeb is an online platform MASSAR INTERNATIONAL TO MANAGE interests for the country, in 2014, that provides healthcare products, AND OVERSEE INVESTMENT FUNDS Siraj closed two new investments in services and information to the Arabic IN PALESTINE THAT SPUR INDUSTRIAL addition to consolidating the success speaking population. DEVELOPMENT, PROMOTE ECONOMIC of its current group of companies GROWTH, AND CONTRIBUTE TO THE and prepared three of its portfolio In 2014, WebTeb announced the closing SUSTAINABLE DEVELOPMENT OF companies for exit in 2015. of a US$3.2mn Series C Investment. THE COUNTRY. The company established a strong New Investments community presence, attracting 4 In 2011, SFMC launched the Siraj million unique monthly visitors to its Palestine Fund I (Siraj), a US$90mn The National Bank: Siraj invested in The National Bank (TNB), a universal bank website and also launched its first private equity fund specialising in mobile application, which passed the investments in viable start-ups, growth providing a wide variety of financial solutions to the corporate and retail 300,000 download mark. Moreover, prospects, distressed businesses, WebTeb’s status as one of the most buyouts, small and medium enterprises, sectors, including investment banking and microfinance lending. Established prominent Arabic content sites was and relatively large enterprises across affirmed by winning the Sheikh Salem various economic sectors in Palestine. following a merger between Al Rafah Microfinance Bank and the Arab Al-Ali Al-Sabah Informatics Award for both Website and Smartphone App The Fund engages closely with company Palestinian Investment Bank, TNB is categories. management through each investment, one of the leading banks in Palestine, with paid in capital of US$75mn, and promoting efficient technological and Wassel Group: Wassel Group is a public has the largest shareholder base in the developmental advancements, as well shareholding company specialising in Palestinian banking sector with over as introducing world-class corporate logistics, and through its subsidiaries, 13,000 shareholders. governance and knowledge transfer offers leasing and security services, processes. By acting as a catalyst event and exhibition organisation to revitalise the domestic corporate Magical Arabia “Batuta”: Batuta is a leading Arabic source for comprehensive services, and sells Xerox printing platform, the Fund’s investment initiative and copy machines. directly contributes towards building a travel information that offers its users a guide for over 250 destinations from more stable and secure nation. In June 2014, the Investment Committee across the Middle East and around the approved a follow-on investment of globe, as well as user-generated content The firm has assessed more than 190 US$6.5mn, providing necessary capital to related to major attractions, restaurants, potential deals in 15 different sectors, introduce new products that will support and hotels. Batuta provides a cardless including start-ups, small and mid-size Wassel Group’s positioning as the leading booking service for a large segment enterprises requiring growth capital, and logistics company providing holistic of travellers who research online, but thus far has concluded 12 investments. products and services to its clients. These prefer to close deals in person and settle additions include credit facilities, and Crescent Enterprises provides strategic payment offline. Batuta’s audience has warehouse management services. guidance through its representation scaled to more than 1.2 million unique on the Siraj Limited Partners’ Advisory monthly visitors and has also expanded Board. its community of followers on social media channels to more than 2 million Crescent Enterprises Investment members. Interest: Limited Partner

Crescent Enterprises Annual Report 2014 These developments are expected PalGaz for Gas Distribution Services: to grow the company’s domestic PalGaz for Gas Distribution Services distribution, improve performance, and is the fastest growing gas distribution increase revenue, as part of Wassel company in Palestine, serving all Group’s focus on capacity building and market sectors. company restructuring for aggressive expansion. In 2014, PalGaz increased its tonnage sales by 20 per cent compared to Nakheel Palestine for Agriculture the previous year and completed gas Investments: Nakheel Palestine for piping of two major construction areas; Agriculture Investments specialises Reehan neighbourhood and the first in the production and sale of Medjool phase of Rawabi residential. Meanwhile, dates in Palestine. an additional follow-on investment Diversification of Investment of US$1.65mn was approved by the Commitments In 2014, Nakheel focused on improving Investment Committee for acquisition, its production quality by slowing its buy-out, and share swap. With the Financial 63% Tourism 2% planting process to expand its water support of Siraj, PalGaz also engaged in Logistics 13% Engineering 1% source, resulting in a harvest of 335 expansion efforts, including the hiring Gas 10% Hospitality 1% tonnes. Nakheel depended on its date of a new sales team, the introduction Agriculture 5% Media 1% production to meet the demand as the of a direct sales model to increase ITC 4% amount purchased from farmers was margins as well as the outsourcing of fully minimised compared to 2013. To its secondary line of business such as promote the brand and raise market installing gas pipes in buildings. awareness, the company entered new 2015 Outlook markets in Germany, Austria, and HD Vision: HD Vision is a production While the Fund remains in the Switzerland as well as attended local company setting out to create a new investment phase until 2016, Siraj’s food exhibitions and international trade standard of quality in the local media primary attention will be on further fairs in Belgium, France, UAE, Malaysia, market, by introducing new products developing its portfolio of companies and Oman. and techniques that are currently to a mature level of growth. These non-existent in Palestine. In addition plans are coupled with Siraj’s advanced Four years after to meeting market prices among its negotiations on three exits in late 2014, inception of the Fund, competitors across various media which are expected to conclude in sectors including documentary, drama, early 2015. Siraj has managed advertising, news, and animation, in 2014 HD Vision invested in equipment to commit 83% procurement and increased the number of its Fund in of employees, as part of its strategy to become one of the leading production companies in Palestine. 12 portfolio companies across nine sectors.

37 PRIVATE EQUITY INVESTMENTS

DUET-IBC MENA REAL ESTATE OPPORTUNITIES FUND www.investbridgecapital.com www.duetgroup.net

DUET-IBC MENA REAL ESTATE 2014 Highlights New Investments OPPORTUNITIES FUND, WHICH WAS Duet-IBC MENA Real Estate Sanctuary Falls: The Sanctuary Falls FORMED IN PARTNERSHIP BETWEEN Opportunities Fund takes a long-term residential community, located in Dubai’s DUET MENA AND INVESTBRIDGE view of the market and selectively Jumeirah Golf Estates, is approximately CAPITAL (IBC), IS THE FIRST REAL undertakes investments in which short 22km southwest of Dubai’s city centre, ESTATE CREDIT FUND FOCUSED term market fluctuations have been and features 97 villas with five to six ON THE MENA REGION SINCE THE clearly understood and protected bedrooms ranging from 5,600-10,700 FINANCIAL CRISIS. against. In 2014, the firm finalised two sq. ft. The project is under development completion funding investments for by Shaikh Holdings, a family enterprise The Fund deploys capital through residential properties in Dubai. with a diversified portfolio of residential, structured debt and equity arrangements commercial and hospitality real estate, in real estate investments within the and is under main contract development MENA Region, with primary interests in by Arabtec, a leading UAE construction residential, retail, hospitality and office company. The project’s development classes, including three transaction types: is ongoing with the first set of villas Completion Funding; Development 97villas expected to be completed by June 2015. Funding; and Build to Suit. with five to six IBC is an investment firm that bedrooms will comprise Jumeirah Village Circle Residential provides corporate advisory and asset Development: The Jumeriah Village management services to principals and the Sanctuary Falls Circle Residential Development is a private clients in the MENA Region, with middle income residential development, US$529mn of assets under management residential community. consisting of an 81 residential unit in both operating and development real building and a 73 residential unit building, estate projects. with a combined total net saleable area of 240,346 sq. ft. The developer is a Duet MENA, a Duet Group company UAE development firm with significant based in Dubai, has approximately experience in Dubai, and China State US$850mn of assets under management Construction Engineering Corporation through public fund vehicles. Duet (Middle East) (L.L.C) is the main Group is a global alternative asset contractor. manager founded in 2002, which manages over US$5.5bn of equity across three business areas: Hedge/Long-Only Funds; Private Equity; and Fund Hedge Funds.

Crescent Enterprises monitors the performance of all invested funds, and takes a keen interest in the strategic rationale employed by Duet-IBC MENA Real Estate Opportunities Fund.

Crescent Enterprises Investment Interest: Limited Partner

Crescent Enterprises Annual Report 2014 2015 Outlook Duet-IBC MENA Real Estate Opportunities Fund will continue to 154 focus on completion and development funding opportunities for both Residential Units residential and hospitality assets in in the Jumeriah Village prime locations in the UAE. Circle residential development will provide a projected IRR of 31% upon completion.

The project, which was approximately 85 per cent complete at the time of the investment, is now finished, and units are now in the handover phase. Duet- IBC MENA Real Estate Opportunities Fund has been fully repaid the principal on this investment with a projected IRR of 31 per cent once the final interest payments are made in June and September 2015.

39 PRIVATE EQUITY INVESTMENTS

SAMENA LIMESTONE HOLDINGS www.samenacapital.com

SAMENA LIMESTONE HOLDINGS IS A 2014 Highlights Revamping sales and distribution: SUBSIDIARY OF SAMENA CAPITAL, Since closing the transaction in June Management has begun revamping its A PRINCIPAL INVESTMENT GROUP 2014, Samena Limestone Holdings, sales and distribution strategy through WITH INVESTMENTS ACROSS under the direction of its holding two initiatives: firstly, by investing in a MULTIPLE ASSET CLASSES IN THE company, Samena Capital, has been full sales and distribution capability in SUBCONTINENT, ASIA, MIDDLE EAST actively working with the management Saudi Arabia, which includes acquiring AND NORTH AFRICA. team of RAK Ceramics to implement a new dealer relationships, establishing a Value Creation Plan consisting of key showroom and employing a sales and The group’s current total assets initiatives to drive the company’s growth distribution team on the ground. under management are in excess and improve its overall productivity. of US$745mn across two primary Secondly, the company’s global investment strategies. Key initiatives Business to Business (B2B) strategy is being revised with a view to increase Samena Limestone Holdings, together Strengthening corporate governance: RAK Ceramics’ exposure in major with a consortium of investors, owns a The corporate governance structure was architect centres, including New York, 30.6 per cent stake in RAK Ceramics, enhanced throughout the organisation; London and Dubai. The target is to the third largest manufacturer of the Board was expanded, an Executive bring the contribution of B2B sales to ceramics globally. RAK Ceramics, Committee was established and the the top line within a 60-75 per cent which is listed on the Abu Dhabi Boards of subsidiaries were reorganised. range, versus the current 35-40 per cent. Stock Exchange (“ADX”), has In addition, several new management production facilities in the UAE, India, members were recruited for the Adoption of a new dividend policy: Bangladesh, China and Iran and sells positions of President of Tiles & Sanitary The Board introduced a new sustainable to 160 countries worldwide, offering Ware, Chief Legal Counsel, Head of dividend policy, which aims for a pay- a comprehensive product portfolio Performance Management Office, out ratio of at least 60 per cent of comprising more than 8,000 designs Chief HR Officer and Head of Investor consolidated net income. The policy is in ceramic tiles, gres porcellanato and Relations. subject to consideration of the business a portfolio of sanitary ware products. outlook, capital requirements for growth The company was established in 1991, Improving profitability: RAK Ceramics opportunities, optimal leverage levels, by H.H. Sheikh Saud Bin Saqr has executed a short-term strategy healthy cash reserves and regulatory Al Qasimi, Ruler of Ras Al Khaimah and focusing on the core operations of tiles, approvals. UAE Supreme Council Member, and sanitary ware, table ware and faucets, H.H. Sheikh Mohammed Bin Saud Al and scaling down non-core businesses. Qasimi, Crown Prince of Ras Expansion plans, especially in the more Al Khaimah. profitable sanitary ware division, have been initiated accordingly for the UAE, Crescent Enterprises provides strategic India and Bangladesh. Within the non- guidance through its representation core portfolio of assets, the company has on the Samena Limestone Holdings signed Memorandums of Understanding Advisory Board. for the divestment of RAK Sudan and Laticrete, while the exit of RAK Pharma Crescent Enterprises Investment was concluded in 2014. The sale of the Interest: Limited Partner company’s real estate portfolio has also been initiated. Management expects a positive impact on the consolidated gross margin in Q1 2015, driven by the shift in focus to more profitable businesses coupled with the divestment of several loss-making divisions.

Crescent Enterprises Annual Report 2014 Business Highlights 2015 Outlook Revenue: Reported revenues declined Samena Limestone Holdings will by 6.4 per cent to AED3.3bn in 2014, continue implementation of its Value with core businesses declining by Creation Plan for RAK Ceramics to 1.9 per cent to AED2.8bn. Non-core unlock shareholder value as operational revenues decreased by 26.3 per cent to improvements and strategic initiatives AED482.5mn, in line with management’s take effect. Simultaneously, Samena strategy to scale down the UAE Limestone Holdings will help grow contracting business. RAK Ceramics in the following new and existing markets: EBITDA: Despite the decrease in the company’s top line, RAK Ceramics Focus markets: The company aspires to reported continued momentum in its be a top three player in the UAE, Saudi performance, growing EBITDA by 2.9 Arabia, other GCC markets, India and per cent to AED584.4mn in 2014 as Bangladesh. a result of implementing its strategic initiatives during the year. Value markets: The company aspires to be a top five ceramics exporter in the Net Profit: Reported net profit was European, MENA and Levant Regions. AED281.7mn, a 3.5 per cent increase Samena Limestone over 2013, despite booking losses of Frontier markets: The company will AED56.5mn arising from hyperinflation evaluate potential opportunities with Holdings, together and currency fluctuations in Sudan and a focus on product mix optimisation with a consortium of Iran. Adjusted net profit (excluding the across markets in Africa, South East impact of hyperinflation) increased by Asia, the US and Russia. investors owns a 14.1 per cent to AED338.3mn. Combined, these initiatives will support Effective working capital management management’s three year vision for the in Q4 2014, resulted in lowering debt company to achieve ‘global leadership in by AED164mn to a closing balance ceramics lifestyle solutions’; namely for 30.6% of AED1.4bn. RAK Ceramics to become the dominant emerging market player, a complete- stake in RAK Ceramics. solutions provider with best-in-class quality and innovation under a premium global brand.

41 CE-Ventures IN SUPPORT OF ENTREPRENEURSHIP AND INNOVATION, CRESCENT ENTERPRISES LAUNCHED A NEW DIVISION IN 2014, CE-VENTURES, TO SERVE AS AN INCUBATION HUB FOR START-UPS SPANNING A WIDE RANGE OF SECTORS AND INDUSTRIES ACROSS THE MIDDLE EAST AND NORTH AFRICA. CE-VENTURES DEVELOPS NEW BUSINESSES AND ASSISTS GROUP COMPANIES IN TRANSFORMING IDEAS INTO VIABLE PROJECTS THAT ALSO GENERATE A SUSTAINABLE SOCIAL IMPACT.

Crescent Enterprises Annual Report 2014 Phase Development Through a precise and coordinated process, each venture is led through four phases of development and predefined milestones, ensuring their long-term success as a viable and sustainable business.

Scope Role

Identify and Develop companies/ Early stage Innovation evaluate innovation businesses projects projects and help and start-up grow them opportunities

Concept Development Business Plan Incubation Growth • Product / Service Development • Seed Funding • Series A-C Financing Definition • Market Research • Management Team • Expansion (Franchising, • Market Size and Potential • Product / Service design • Product / Service Acquisitions, Greenfield) • High-level Financial • Financial Modeling Development • Strategic Partnerships Summary • Go-to-Market Roadmap • Pilot or Prototype • Expansion of Product • Business Plan/ • Legal Setup Offerings Action Plan

2014 Highlights 2015 Outlook CE-Ventures has several concepts in the In addition to the two concepts set to energy efficiency, e-commerce, food and launch in 2015, CE-Ventures is aiming beverage, and industrial clothing spaces to advance two more concepts to under development. In 2014, the division the incubation phase and expand the approved and added five new concepts development pipeline by another to its development pipeline, two of which three projects. have advanced to the incubation phase and are expected to launch in 2015.

43 Corporate Culture WE RECOGNISE THAT THE LONG TERM SUCCESS AND SUSTAINABILITY OF OUR BUSINESSES IS DEPENDENT ON THE UNDERLYING STRENGTH OF OUR SOCIETY. TO ACHIEVE OUR CORE FOCUS OF INCLUSIVE GROWTH AND SHARED VALUE FOR ALL OF OUR STAKEHOLDERS, WE HAVE INSTILLED A ROBUST CORPORATE GOVERNANCE FRAMEWORK AND IMPLEMENTED FOCUSED CORPORATE CITIZENSHIP AND SUSTAINBILITY PROGRAMMES THROUGHOUT OUR ACTIVITIES.

Crescent Enterprises Annual Report 2014 45 CORPORATE CULTURE

CORPORATE GOVERNANCE Our Governance Structure The Human Resources Committee Distinct levels of authority have oversees all employee-related matters CORPORATE GOVERNANCE IS been defined to ensure a balanced within the company including skills INTEGRATED INTO EVERY LEVEL governance approach is applied to the development and training, compensation OF CRESCENT ENTERPRISES’ operations and management of Crescent and benefits, recruitment and OPERATIONS, AS WELL AS Enterprises, and its group of companies. performance evaluation. THROUGH OUR PARTNERSHIPS WITH AFFILIATED COMPANIES. • Badr Jafar, Chief Executive Officer THE VALUE OF TRANSPARENCY, • Ravi Kumar, Executive Director COMPLIANCE AND DISCLOSURE ARE Crescent Group Board of Directors • Rene Hansen, Head of Organisational SECOND TO NONE, SUPPORTING Development OUR GROWTH ASPIRATIONS AS A The Board of Directors provides oversight on the activities of its two COMPANY, FOSTERING A COMPETITIVE The Corporate Citizenship Committee ADVANTAGE, ESTABLISHING main subsidiaries, Crescent Enterprises and Crescent Petroleum. establishes, initiates and engages in ACCOUNTABILITY AND INTEGRITY corporate citizenship activities to serve AMONG OUR EMPLOYEES AND • Hamid Jafar, Chairman the social needs of the community. BUILDING A SPIRIT OF TRUST AMONGST OUR STAKEHOLDERS. • Majid Jafar, Vice Chairman • Ola Al haj Hussin, Manager, • Badr Jafar, Managing Director Corporate Citizenship • Razan Jafar, Director • Ghada Abdelkader, Manager, Partnerships and Memberships • Neeraj Agrawal, Director Corporate Development & Investments • Ravi Kumar, Director • Raushanna Salhi, Manager, Communications Crescent Enterprises Executive • Ananth Achanta, Head of Accounts Committee • Kirsty Smallman, Legal Counsel The Executive Committee provides Pearl Initiative oversight on the activities of Crescent As a founding partner of the Pearl Initiative, Enterprises’ group of companies. the private sector-led not-for-profit organisation developed in partnership with • Badr Jafar, Chief Executive Officer the United Nations Office of Partnerships, • Neeraj Agrawal, Executive Director Crescent Enterprises continues to advocate for greater transparency, accountability and • Ravi Kumar, Executive Director best business practises in the Gulf Region. By working alongside Pearl Initiative’s management team, we play a vital role in engaging with and encouraging the private Crescent Enterprises sector and stakeholders to adopt and spread Internal Committees these principles across the region. Crescent Enterprises’ Internal Committees oversee policies and procedures within specific areas across the company.

The Investment Committee is responsible for assessing investments and divestments, joint ventures and United Nations Global Compact corporate development activities within Crescent Enterprises has taken its adherence the Company and its subsidiaries. to corporate transparency and accountability one step further through its membership • Neeraj Agrawal, Executive Director with the United Nations Global Compact, a strategic policy initiative for businesses that • Ravi Kumar, Executive Director are committed to aligning their operations • Tushar Singhvi, VP, Corporate and strategies with 10 universally-accepted Development & Investments principles in the areas of human rights, labour, environment and anti-corruption. We have committed to working towards the United Nations Global Compact’s vision of a sustainable and inclusive global economy, which delivers lasting benefits and is a step towards continued performance improvement for Crescent Enterprises.

Crescent Enterprises Annual Report 2014 SUSTAINABILITY Through this process of discovery Enabling Stewardship of the Planet and planning, we have defined four Global development megatrends, such as WE ARE FULLY-COMMITTED pillars that are vital to achieving our the depletion of natural resources, air and TO FOCUSING ON CREATING vision of ‘Redefining Growth’; Enabling water contamination, biodiversity loss, AND SUSTAINING LONG-TERM, Ethical Business, Enabling a Stronger and increased greenhouse emissions, INTEGRATED VALUE IN THE PRESENT Society, Enabling Talent, and Enabling affect the environment and our business AND FOR FUTURE GENERATIONS Stewardship of the Planet. operations in the long-term. To address THROUGH OUR JOURNEY OF these factors, we have taken an SUSTAINABILITY. NOT ONLY IS Enabling Ethical Business important step by focusing our primary CRESCENT ENTERPRISES AND ITS As a global firm that operates across attention internally to determine how GROUP OF COMPANIES STRIVING TO multiple sectors and geographies, we can best address our environmental RECOGNISE THE SOCIAL, ECONOMIC aligning goals and activities to achieve impact, including changing our habits, AND ENVIRONMENTAL IMPACT, WE a cohesive vision remains a key focus of monitoring our progress, and publically ARE COHESIVELY ADJUSTING OUR our corporation. To do so, we strive to disclosing these figures. As we progress STRATEGIC DIRECTION TO FACTOR create a culture in which all stakeholders to the second stage of establishing a SUSTAINABILITY INTO OUR DAY-TO- conduct responsible business baseline for environmental management, DAY OPERATIONS AND BUSINESS operations, with a strong commitment we are seeking opportunities to DEVELOPMENT. to transparency and accountability. Our collaborate with organisations that will goal remains fixed on establishing a help identify more tailored opportunities Redefining Corporate Value common system of engagement across for broader improvement throughout our and Value Creation all of Crescent Enterprises’ group of operations. In 2013, we launched our inaugural companies, through both internal and sustainability report, ‘Setting the external activities, to ensure success The complete independently published Foundation’, a documented step in this area. Crescent Enterprises sustainability towards the integration of sustainability report for 2014 is available at: throughout the company, with the Enabling a Stronger Society www.crescententeprises.com. incorporation of key performance Although the act of corporate indicators for future growth, disclosure citizenship has always been a pillar of of best business practices, and the Crescent Enterprises’ operations, it broader development of a governance has matured throughout the years into structure. To ensure accuracy, depth a function within the Company that and purpose in addressing the most strives to create a lasting impact on the material concerns of our stakeholders, communities we serve through strategic we engaged with a leading consulting partnerships with impact institutions, firm for guidance on how to develop and community organisations that share our first report, as well as in applying our values and principles. In support of the principles of the Global Reporting this goal, Crescent Enterprises pledges a Initiative (GRI) guidelines as our base minimum of five per cent of its projected framework. Global megatrends and annual net cash flow towards its industry best practices were also corporate citizenship budget each year. reviewed to examine our impact in the wider context of sustainability. Enabling Talent This year marked the next stage Our greatest asset is our employees, in our sustainability journey, and without whom none of Crescent the development of our second Enterprises’ goals will be achieved. sustainability report for 2014, They are the reason why we are ‘Redefining Growth’, which features a continuously striving to become an detailed roadmap for our future. employer of choice, both regionally and internationally. Ensuring we have energised, talented, and purpose-driven employees working with us, leads us to constantly seek to understand and address what is important for our workforce.

47 CORPORATE CULTURE

CORPORATE CITIZENSHIP Environment IT IS OUR RESPONSIBILITY TO Our environmental activities and initiatives are based on UNDERSTAND THE IMPACT OF OUR the premise that how we act, or fail to act, towards nature DECISIONS AND ACTIVITIES ON and our surroundings is directly related to the sustainability SOCIETY, WHICH IS WHY CORPORATE of our companies and the future of our societies. Through CITIZENSHIP IS SUCH AN IMPORTANT our partnerships with a number of leading environmental MOTIVATOR OF CRESCENT organisations, we have more directly addressed these needs on ENTERPRISES. an immediate level, while bolstering a long-term set of goals Over time, our corporate citizenship internally for future action within our corporate sphere. undertakings have matured into a tool for tangible value and positive change. To best realise our objectives and extend our influence, we have formed strategic partnerships with several impact investment institutions and community organisations whose purposes are aligned with our vision, leveraging the expertise of these relationships to achieve an even greater impact on our communities.

© EWS-WWF Through a structured and clear approach developed by the Corporate Citizenship Committee, three key areas of need and value were defined for 2014 - ‘Environmental’, ‘Education and 2014 Community’, and ‘Entrepreneurship’- leading to an extensive list of initiatives Emirates Wildlife Society-World we proudly supported on a global Wildlife Fund (EWS-WWF) scale throughout the year. As a platinum member of EWS-WWF, Crescent Enterprises actively supports various initiatives that conserve biodiversity, address environmental conservation, awareness and education, tackle climate change, and reduce the UAE’s ecological footprint. Our support in 2014 enabled EWS-WWF to conduct several environmental projects in the UAE, including Earth Hour, Blue Flag, Wadi Wurayah National Park, and Marine Turtle.

* EWS and WWF are two leading non-governmental organisations working together with people and institutions, within the UAE and region, on environmental issues through education, awareness, policy and science-based conservation initiatives.

Crescent Enterprises Annual Report 2014 Entrepreneurship We are invested and active in several areas of the world faced with high levels of youth unemployment and have recognised entrepreneurship as a valued tool for change. With this in mind, in 2014, we contributed our time and support to regional initiatives addressing this issue and that have the potential for scalability on a global level.

Arabreneur Ashoka Gulf Globaliser Sharjah Tatweer Forum Passionate about entrepreneurship and Promoting social change in the broadest In support of the development of the need to tackle the ongoing issue sense possible, Crescent Enterprises the Emirate of Sharjah and its next of unemployment throughout the Arab partnered with the largest network of generation of business leaders, Crescent world, Crescent Enterprises pledged its social entrepreneurs, Ashoka, for its Enterprises signed a partnership support to the Arabreneur initiative by Arab World Social Entrepreneurship agreement with the Sharjah Tatweer hosting the programme’s UAE event, Programme (ASEP), which aims to Forum for its 2014 initiative, Sharjah Arab Digital Summit, which showcased grow the presence and impact of social Leadership Programme (SLP). Over the ambition and talent of seven entrepreneurs in the Gulf Region. With the course of six months, SLP took entrepreneurs and their selected start- the support of Crescent Enterprises, 20 UAE nationals and four expats ups. The summit brought together more ASEP held a conference in the UAE, through lectures on business and than 60 venture capitalists, investors and bringing together key business leaders entrepreneurship at the American business leaders to hear entrepreneurs’ and supporters to preselect the most University of Sharjah, engaged them pitches for funding support. promising social innovators in the region, in group workshops and team projects, who are working specifically to address and hosted them on field visits to * Launched in 2013 with ambitions to empower the start-up community in Palestine, Arabreneur has the current challenges of obesity, water various sectors throughout the Emirate, created a platform for young entrepreneurs to use scarcity, and women’s participation for including Crescent Enterprises’ their creativity and time to develop companies and inclusive growth. operations, for hands-on experience products that support economic and social growth. In 2014, Arabreneur invested US$740,000 in seven and learning. Palestinian start-ups, as well as helped them in * Ashoka is the largest social entrepreneurship establishing and growing their innovative companies. network worldwide, with nearly 3,000 fellows in 70 * Sharjah Tatweer Forum is a collaboration and countries putting their system-changing ideas into community of young people interested in furthering practice on a global scale. Since 1980, Ashoka has the sustainable development of the UAE, the Emirate provided start-up financing, professional support of Sharjah, and in empowering themselves. As an services, and connections to a global network organisation with over 800 active members, the across the business and social sectors. Sharjah Tatweer Forum serves as a catalyst for global, regional and domestic issues of importance to the Emirate of Sharjah.

49 CORPORATE CULTURE

Education and Community Our ability to address the most critical issues facing our societies today, and to lay the foundation for a sustainable future, hinges on the availability and quality of education. It is our belief that the same principle also applies at the economic level, and with the proper programmes and support in place, the benefits for both individuals, and the communities to which they belong, have incredible potential to positively change the world. One area of education that is often overlooked for its importance in a youth’s development and achievements has been art, which is why in 2014, Crescent Enterprises focused the majority of its attention on programmes that deliver this impact.

Middle East Theatre Academy Sharjah International Save the Children’s Healing and With Crescent Enterprises as lead Children’s Film Festival Education through the Arts Programme partner, in 2014, The Middle East Theatre As an advocate of cultural diplomacy Over 4,000 children and 400 mothers Academy (META) launched the ‘Home and for the power that art has in across the Middle East were given the Grown’ initiative, to discover and celebrate transforming lives, Crescent Enterprises opportunity to participate in Healing and the artistic talent of the region through sponsored the Sharjah International Education through the Arts (HEART), theatre and performance. 34 participants Children’s Film Festival 2014. In a collaborative venture between Save were given a once-in- a-lifetime, expense- addition to showcasing the talent of the Children (STC) and Crescent free opportunity, to complete a two- local filmmakers and artists illustrating Enterprises’ subsidiary, Global Gumbo week theatre training programme in regional culture through film, the event Group (G3). made possible by funds Sharjah. The experience culminated in emphasised the influence that the arts raised from sales of G3’s hit charity the production of ‘Dhow Under the Sun’, can play in changing perceptions, and single, ‘Tomorrow-Bokra’. a play in Arabic and English, which they in positively shaping the lives of young publically premiered in the UAE. people through exposure to new cultures The unique initiative gives children and traditions on an international level. affected by chronic stress and poverty * Middle East Theatre Academy is an initiative launched a platform to heal through artistic in 2011 as a first of its kind academy designed to * Sharjah International Children’s Film Festival is introduce, influence and nurture the youth of the Middle the first children’s film festival in the country and the processes, allowing them to express East in the art of theatre. The non-profit academy offers region, organised by Sharjah Media Arts for Children and emotions, develop resiliency, and a range of creative opportunities for young, emerging Youth (FUNN). The festival is dedicated to enhancing learn through creative activities that artists throughout the region, with a special focus the media literacy of children and young people, on motivating underprivileged youth by facilitating fostering children’s creativity and showcasing the very incorporate math, language, history, workshops, master classes and special events. best in filmmaking for, by and about young people. and science.

As an extension of the partnership, at the Dubai International Film Festival G3 premiered, ‘Bokra The Film’, a documentary that takes viewers on a journey across the Middle East with behind the scenes footage of the song’s creative process and the inspiring stories showcased through the development and success of HEART.

* Save the Children is the world’s leading organization for saving children’s lives and helping them grow up educated and protected. Save the Children has been working for children for nearly 100 years, and today reaches girls and boys in more Crescent Enterprises Annual Report 2014 than 120 countries. In 2014, its global movement helped more than 166 million children worldwide. JCEE

Arab Women Sports Tournament Centre of Excellence for Applied Jafar Centre for Executive Education, Research and Training American University of Sharjah Crescent Enterprises provided its support As a founding member, Crescent Crescent Enterprises led the creation to the Arab Women Sports Tournament Enterprises assisted in the 2012 of the Jafar Centre for Executive (AWST), a Sharjah-based event launched launch of the Centre of Excellence Education, which offers a variety of by the Sharjah Ladies Club, exclusively for Applied Research and Training programmes directly related to business for female athletes from across the Arab (CERT) and has since sponsored more and government institutions in the UAE World. The 2014 event brought together than 50 graduating student projects, and wider GCC Region. In addition to 900 female athletes from 14 countries to providing critical support towards the leadership development programmes compete in a range of both traditional ongoing development of UAE National adapted to the needs of each client and modern sports, celebrating the students, as well as opening access organisation, the centre creates and progress of female leadership across to job opportunities within Crescent delivers short courses on specialised the region and bridging cultures. Enterprises and its subsidiaries. topics, presents review classes leading to professional certifications, and provides * Arab Women Sports Tournament was launched by * Centre of Excellence for Applied Research and the Sharjah Ladies Club as a world-class sporting event, Training (CERT) is the commercial, research and expert advisory and consulting services. to celebrate female athletes and embrace participants training arm of the Higher Colleges of Technology from across the Arab World. The Sharjah Ladies Club (HCT), the largest higher education institution in the * Jafar Centre for Executive Education, American was established by Her Highness Sheikha Jawaher UAE. Since 1996, CERT has grown to be one of the University of Sharjah, serves as a centre for executive Bint Mohammed Al Qasimi in 1982 as a space for the largest private education providers in the Middle education programmes directly related to businesses community to promote a healthy and active lifestyle. East, and is one of the largest MENA investors in the and government institutions in the UAE and wider discovery and commercialisation of technology. GCC Region.

51 © Copyright 2014 Concept and Design

Crescent Enterprises The Annual Report contains forward- looking statements, which reflect the current views and predictions of Management. The forward-looking statements could cause actual results to differ based on uncontrollable factors such as general economic Photographs conditions, foreign exchange All photographs contained in this report fluctuations, competitive product have been provided by their original and pricing pressures and regulatory source of representation. developments. Editors Raushanna Salhi Sarah Hassan Sameh Hamtini Claire Ferris-Lay Hollie Parker

Crescent Enterprises Crescent House Buhairah Corniche PO Box 2222, Sharjah United Arab Emirates T: +971 (6) 554 7222 F: +971 (6) 544 7888 [email protected] www.crescententerprises.com

Crescent Enterprises Annual Report 2014