Aamal Company QPSC Aamal Company 2020 Annual Report Resilience Through Diversity His Highness Sheikh Tamim Bin Hamad Al Thani Emir of the State of Qatar 21 P.6 AAMAL COMPANY Q.P.S.C. ANNUAL REPORT 2020 P.7 Aamal Company is one Table of Contents of the region’s largest and most diversified companies, offering Overview Strategic Report Corporate Governance Corporate Responsibility Highlights of the Year Chairman’s Statement Board of Directors Corporate Social 10 26 68 Responsibility (CSR) Activities investors a high quality 92 At a Glance Market Review Corporate Governance 14 28 71 Aamal Sustainability and balanced exposure Framework and ESG Our Assets Business Strategy Board of Directors report Disclosures 18 32 on Corporate Governance 94 78 to Qatar’s economic Our Story CEO and Managing 20 Director’s Report Independent Assurance 34 Report on Compliance with QFMA Laws and growth and development. Investment Rationale relevant legislations 22 Executive Management 80 Financial Statements 36 Board of Directors Report Independent Operational Review on Internal Controls over Auditor’s Report 38 Financial Reporting 110 83 Financial Statements Independent Assurance and Notes Report on Internal Control 114 over Financial Reporting Corporate Responsibility 85 AAMAL’S FOUR SEGMENTS Industrial Manufacturing Read more on page 38 Trading and Distribution Read more on page 50 Property Read more on page 56 Managed Services Read more on page 60 Overview Highlights of the Year 10 Operational Highlights 11 Financial Highlights 13 At a Glance 14 Our Assets 18 Our Story 20 Investment Rationale 22 P.10 AAMAL COMPANY Q.P.S.C. ANNUAL REPORT 2020 Overview Strategic Report Corporate Governance Corporate Responsibility Financial Statements P.2111 Highlights Operational of the Year Highlights • Aamal has taken swift and effective action • Aamal’s healthcare subsidiaries, Ebn Sina in response to the COVID-19 pandemic Medical and Aamal Medical supported ensuring our businesses are operating Qatar’s efforts to minimise the impacts optimally through challenging times, while of the COVID-19 pandemic number one priority remains the health and wellbeing of the employees and customers, • Ebn Sina Pharmacy commissioned installation implementing social distancing measures of two large Robots by GPI Company at its across the business including a transition to warehouse, providing the facility to dispense remote working. Also several subsidiaries drugs accurately and with high volumes were able to launch innovative new services • Expansion of Ebn Sina Pharmacy with a new to support Qatar during pandemic. location at Msheireb Downtown • Completed renovation work of phase 2 • Aamal Maritime Transportation Services at City Center Doha and commenced new completed a major upgrade for one of development work for frontage area and its vessels “Um El Hanaya” ballast water bridges linking to the mall. treatment system as per International • Established Aamal Cables for Trading and Maritime Organisation “IMO” regulation Contracting winning a three year contract • Aamal has been included in the MSCI Qatar with Kahrama worth 694 million Small Cap Index and QE 20 Index • Senyar Drums Factory commenced commercial manufacturing of drums for cables P.12 AAMAL COMPANY Q.P.S.C. ANNUAL REPORT 2020 Overview Strategic Report Corporate Governance Corporate Responsibility Financial Statements P.13 Generating Revenues Financial 21 of QAR 1,306.8 Highlights Aamal Company demonstrates resilience 2020 Segmental Breakdown: Revenue (%)* Three Year Financial Summary: Revenue (QAR) through diversity. Property 14.1% 2020 1,306.8 Trading and distribution 67.3% Industrial 2019 1,294.1 manufacturing 15.1% Managed services 3.5% 2018 1,286.6 *All percentages stated before elimination Three Year Financial Summary: Net Profit (QAR) 2020 Segmental Breakdown: Net Profit (%)* 2020 121.7 Property 11.1% Trading and distribution 70.9% 2019 322.1 Industrial manufacturing 19.0% 2018 Managed services (1.0%) 447.6 *All percentages stated after eliminations and before head office costs Shareholders Structure Equity Attributable to Share Holders (QAR) Al Faisal Holding 45% 2020 7,811.9 Corporate 20% Individual 10% 2019 7,943.6 Sheikh Faisal Bin Qassim al Thani 25% 2018 8,007.4 P.14 AAMAL COMPANY Q.P.S.C. ANNUAL REPORT 2020 Overview Strategic Report Corporate Governance Corporate Responsibility Financial Statements P.15 At a Glance Aamal Company offers investors a high quality • Operations across 27 active business units with market • Acting as a socially responsible member of society, leading positions in key growth sectors including adopting ethical and sustainable policies geared and balanced exposure to Qatar’s growth and industrial manufacturing, real estate, managed services, towards protecting the environment and looking development. Our corporate strategy has always and the medical equipment and pharmaceutical sectors. after the welfare of our employees. • Offering high quality products and services. • Uniquely positioned to benefit from increased private been to create and enhance long-term shareholder and public sector demand, particularly for infrastructure value through profitable growth and diversification, • Being alert and responsive to the markets’ development, as Qatar transforms into an advanced and evolving needs. with particular reference to: self-sustaining economy. • Geographical focus on Qatar at present with • Strong backing from Al Faisal Holding Company, intentions to expand further in the region. a long-term major shareholder of Aamal. • Focus: on industrial manufacturing, real estate and other high-growth sectors. • Diversification & Innovation: continued growth, diversification and innovation across existing businesses to enhance market positions and optimize performance. • Operational Excellence: continue application of clear and disciplined operational and financial principles underlying our strategic growth initiatives. Business units with effective Segmental Breakdown Aamal ownership (%) Frins Avance Pipes CiSan Traing City Cente Aamal Real Ebn Sina Aamal Aamal eical Aamal ECCO Gl Strctral Steel an Casts oa Estate eical Traing an Services 50 100 Aamal Travel 51 ile East Company istribtion 100 100 100 an Torism 100 20 50 100 Gl Rocs 100 74.5 Ebn Sina Aamal or aritime Parmacy Transportation Services 100 74.7 ndustrial Trading Manufacturing Property and Distribution Managed Services Senyar nstries atar oling 50 El Seey Cables atar 38.3 oa Cables 47.3 Aamal Senyar Factory or rms Reaymi 50 100 Senyar or Procing Copper Ro Aamal Cables Aamal 50 Aamal or Car Legen or Family or Traing an Cement Senyar or Procing aintenance Traing an Foot Care Al Faraa inter Entertainment Center Contracting nstries Alminm Ro Aamal ECE 100 istribtion Center Company onerlan 100 99 50 51 100 100 65 100 100 * Equity accounted investee P.16 AAMAL COMPANY Q.P.S.C. ANNUAL REPORT 2020 Overview Strategic Report Corporate Governance Corporate Responsibility Financial Statements P.17 VISION To be recognised as a leader and innovator within the industry sectors we operate in; excelling in service delivery and professionalism to meet and exceed Major Shareholder Number of Employees the expectations of all stakeholders. Al Faisal Holding 3,800 Mission To deliver maximum growth at minimum risk, through a diversified structure, offering high quality exposure to the Qatar growth story. Operations Total (business units) Equity Values 27 QAR 7.8Bn Applying excellence to all our activities by committing to the highest standards in governance, investment in human capital development, and encourage entrepreneurial spirit. P.18 AAMAL COMPANY Q.P.S.C. ANNUAL REPORT 2020 Overview Strategic Report Corporate Governance Corporate Responsibility Financial Statements P.19 Our Assets 24 ndustrial Managed Manufacturing Services Aamal Readymix Aamal Reaymi nstrial Area Facility. Aamal Services Aamal Reaymi anate nstrial 1 Aamal Services Oices 18 Zone in aroa alila site. Ne Al itmi Aamal Cement ndustries nstrial Area Facility. 2 Al Farazdaq Al Faraa Company 19 City Center Sopping all Advanced Pipes and Casts Company APC Factory Al ara nicipality. 3 ECCO Gulf ECCO Gl Oices 20 Frijns Structural Steel Middle East Aamal Tower est ay esaiee Roa Al ara 4 Doha Cables Aamal Travel esaiee Facility, 5 Aamal Travel City Center 21 ara Avene Soroom Sopping all 25 Gulf Rocks 6 Winter Wonderland Gl Rocs esaiee Facility. Winter onerlan City Center 22 Sopping all Aamal for Maritime Transportation Services 7 Fun City/Family AMTS Mesaieed – Hamad Sea Port Entertainment Center Family Entertainment Center 23 Aamal Cables for Trading City Center Sopping all and Contracting 8 Messaieed Facility 1 Senyar Factory for Drums 16 Messaieed Facility 9 12 12 12 National 16 Senyar for Producing Copper Rod Messaieed Facility 10 Assets 26 14 18 14 27 17 7 16 19 Senyar for Producing Aluminium Rod 21 Messaieed Facility 11 13 22 13 Ruwais Port 24 16 23 31 ama Port esaiee Area 16 20 14 16 28 Trading and 16 Sidra Hospital Qatar Distribution Sira ospital Al Garraa 25 29 Foot Care Center Foot Care Center eina Centrale Pearl 14 3 Foot Care Center Al Garraa 12 Qatar Foundation atar Fonation ea arters 1 2 Foot Care Center City Center Sopping all 26 1 15 Ecation City Al ol St 30 Aamal Medical 4 Aamal eical Oices Aamal Tower, 13 West ay Qatar Stock Exchange 7 SE est ay 27 Ebn Sina Medical Wareose nstrial Area ea Oice est ay 14 6 11 9 Parmacy Ras Ab Abo ranc Parmacy City Center ranc Hamad Medical City 10 Parmacy seireb ranc ama eical City 28 5 Al Rmaila East 8 Aamal