Contents. The History of the Region s Future HOLDING ANNUAL REVIEW. A message from our CEO. Our Story. Our Commitment. Our Corporate Governance

Transcription

1 The History of the Region s Future HOLDING ANNUAL REVIEW 2015

2 At Majid Al Futtaim we have a history of making the future happen. Through our innovative, and frequently epic projects, our dedication to creating great moments for everyone, every day, has changed the way people live, and has contributed to the growth of the region as well as to the transformation of Dubai and the UAE into a global business and tourist hub.

3 Alain Bejjani, CEO of Majid Al Futtaim, reflects on the milestones achieved in 2015 and foresees a bright future ahead as the company moves closer to achieving its ambitious growth goals. In the past 20 years, Majid Al Futtaim has developed some truly iconic destinations, transforming the face of shopping, entertainment and leisure in Dubai and across a region that spans the Middle East, Africa and Central Asia. Indeed, we ve been part of Dubai s transition into the global metropolis it is today. I am proud to have been a part of this transformation, and I have always admired the tremendous business success story this company has established for the region. The last two decades has seen us grow from our first fully integrated lifestyle mall, City Centre Deira, to 18 shopping malls, including 12 City Centres, the largest shopping mall network brand in the MENA region. We proudly welcome more than 178 million shoppers every year and have created an extraordinarily powerful retail model, which hosts more than 5,000 brands in 3,000 stores. But what sets Majid Al Futtaim apart beyond sheer size and scale? I believe that it is our continuous commitment to innovation, which has become part of our DNA. Possibly the greatest example of this is the recent expansion at Mall of the Emirates where we built a brand new mall right on top of the existing one, without closing it for a single hour. Our innovative methods also extend to creating environments and experiences that inspire people who come visit us. People like Suhail Al Odadi, a 14-year-old boy from Saudi Arabia who was inspired to be the first Saudi skier at the Olympics after his experience at Ski Dubai. This is why we create the environments we do. We also innovate in the way we do business. From training our employees, to sustainable development that has led to the Middle East s largest operating mall of its kind which is the first to be LEED (Leadership in Energy and Environmental Design) Gold-certified. Our spirit of innovation extends to the way we manage our company as well. As one of the first companies in the region to embed sound corporate governance across the business, Majid Al Futtaim is 100% committed to maintaining accountability in our professional conduct and to the stakeholders we engage with. We are currently the highest credit rated private company in the Middle East and this has become a brand feature, which enables us to attract highly experienced Board Members, as well as the best and brightest regional and international management talent. Both Fitch and Standard & Poor s reaffirmed our BBB credit rating in June 2015, with a stable outlook reiterating our credit strengths such as quality of assets, strong corporate governance and prudent financial management. So how do all of these different moving parts come together? They all deliver to our bottom line. In 2015 our net profit continued to increase by 29% and our revenue growth remained stable at 8% year-on-year, while EBITDA increased by 7%. Majid Al Futtaim Properties saw revenue increase by 6% to AED 4 billion and EBITDA rise by 10% to AED 2.6 billion. Majid Al Futtaim Retail saw revenue increase by 7% to AED 22 billion and EBITDA rise by 3% to AED 1.2 billion, assisted by the opening of nine new Carrefour hypermarkets, 11 new supermarkets and five convenience stores. Majid Al Futtaim Ventures achieved strong operational growth with revenue increasing by 34% to AED 1.4 billion and EBITDA for the year increasing by 22% to AED 186 million. So where is Majid Al Futtaim heading? While 2015 was also about transforming our business by shifting to a new archetype with the aim of maintaining the long-term sustainable growth, this continued growth will come from every facet of our company: property, ventures and retail, and will include continued investment in existing properties and expansion into new markets was also about transforming our business by shifting to a new archetype with the aim of maintaining the long-term sustainability and growth of the business in order to achieve our ambitious goals. Today Majid Al Futtaim enjoys 250 million customer interactions every year. We will use that customer experience to get closer, to listen and to learn. And we will translate those learnings into new experiences that are all about creating new great moments for everyone, every day. We are very proud of our company and the people who make it what it is today. And we have many reasons to be excited about a very bright future ahead. So please read on and share in our 2015 achievements.

4 Contents Born from one man s vision, Majid Al Futtaim has gone on to deliver two decades of great moments. The story of Majid Al Futtaim is the story of the region s future.

5 Since 1995 we have grown from strength to strength, and our vision is to continuously create more great moments for more customers across an ever-expanding footprint. From the day we opened the groundbreaking City Centre Deira in 1995, and changed the face of retail in the Middle East and North Africa, Majid Al Futtaim has been driven by a single purpose to continuously innovate our customers experiences. Today, through our commitment to innovation, Majid Al Futtaim is the leading shopping mall, retail and leisure pioneer across the Middle East and North Africa (MENA). Our business spans 13 international markets, employs over 28,000 people, and has redefined industry standards. We own and operate 18 shopping malls, 12 hotels and three mixed-use communities in MENA. Our shopping malls portfolio includes the popular City Centre franchise, the iconic Mall of the Emirates, as well as the My City Centre brand in our neighbourhood mall category. And we represent renowned international brands such as Abercrombie & Fitch, AllSaints and lululemon athletica. While in the retail sector, we hold the exclusive rights to the renowned Carrefour franchise in 38 markets across the Middle East, Africa and Central Asia. Our leisure facilities include 182 VOX Cinemas, 22 Magic Planet family entertainment centres, as well as unforgettable experiences that no one had ever seen before like the magic of real snow in our iconic indoor ski slope at Ski Dubai, or our exhilarating indoor skydiving experience at ifly Dubai. Always looking out for strategic diversification opportunities, our business portfolio has more recently expanded into the healthcare sector through our City Centre Clinic, the food and beverage industry with Gourmet Gulf, the finance sector with Najm credit cards, and we also have just launched Enova, an energy and facilities management solutions company. As we continue to grow and transform we will always remain dedicated to creating unique destinations and customer experiences that challenge convention, innovate the industry landscape, lead sustainability in the region, and drive unparallelled progress.

6 2015, laying the foundation for the region s future In 2015 we delivered yet another year of resilient growth, as we remain focused on achieving our goal of doubling the size of the business in the next five years. Robust Growth The continued strength of Majid Al Futtaim s business fundamentals has helped deliver stable financial performance across all areas of the business. Net profit from continuing operations increased by 29% to AED 3.3 billion, while revenue growth continued to remain stable at 8% year-on-year to AED 27.3 billion, and EBITDA increased 7% to AED 3.8 billion. Highest Rated Privately Owned Corporate in the GCC In June 2015 our BBB credit rating was reaffirmed by Fitch and Standard & Poor s. In addition we raised USD 500 million capital through a Sukuk issuance, now listed on NASDAQ Dubai and on the Irish Stock Exchange. We also further optimised our liquidity position through the upsizing and tenor extension of our club revolver facility. Rapidly Growing Franchise As the largest hypermarket master franchisee in MENA, Majid Al Futtaim Retail opened nine new Carrefour hypermarkets, 11 new supermarkets and five convenience stores in 2015, and entered a new market, Armenia. Revenue in the Majid Al Futtaim Retail business unit increased by 7%, and EBITDA rose by 3%. More Rooms to Grow In the Hotels business, our hotels enjoyed an average occupancy rates of 72% for the year. During 2015 we opened the world s second largest Hilton Garden Inn near Mall of the Emirates, which is our first LEED Gold hotel. We also relaunched the Kempinski Mall of the Emirates with refurbished rooms and three new dining experiences. Expanding our Shopping Offerings 2015 saw the unveiling of the AED 1 billion Mall of the Emirates expansion, the opening of City Centre Me aisem and City Centre Shindagha, and the launch of City Centre Muscat s new expansion, which added 72 new stores (including fashion and dining options) to the mall. Exciting New Experiences The Majid Al Futtaim Ventures business unit enjoyed a remarkable 34% year-on-year growth in revenues, while EBITDA increased 22%. This strong increase can be attributed to higher performance from all its entities, including Majid Al Futtaim Cinemas adding 58 more screens in the region, as well as launching a new luxurious fine dining cinema experience called ThEATtre by Rhodes. Successes also included the opening of popular global stores such as Abercrombie & Fitch, lululemon athletica and Peacocks. And another highlight at our flagship Mall of the Emirates was the launch of Apple s first flagship store in the MENA region. Leading Sustainability Our efforts in 2015 helped cement our reputation as pioneers of sustainability in the region. Our new Hilton Garden Inn at Mall of the Emirates became our first LEED Gold hotel. We also achieved 11 sustainability awards, with City Centre Mirdif becoming the largest mall in the world to receive LEED Gold accreditation, and City Centre Me aisem was awarded for its excellence in sustainability with a LEED Platinum title. Key Recognitions In 2015 we gained industry recognition from across the business. Majid Al Futtaim Properties was awarded Retail Company of the Year by Gulf Business, Carrefour UAE was voted 2015 s Most Admired Retailer-Hypermarket for Outstanding Customer Experience by Retail ME Awards, and VOX Cinemas was voted 2015 s Most Admired Retailer-Entertainment by Retail ME Awards was a strong year for Majid Al Futtaim as we look to seize opportunities, deliver sustainable growth, and build our company s and the region s future.

7 Contents Shopping Malls Cinemas Hotels Mixed-use Communities Financial Services Food and Beverages Hypermarkets and Supermarkets Leisure and Entertainment Healthcare Energy and Facilities Management Fashion Our diverse portfolio of businesses and brands speak to our entrepreneurial spirit and strong ambition to continually grow.

8 The Majid Al Futtaim story began in 1995 with the establishment of City Centre Deira in Dubai the landmark shopping mall that not only changed the retail landscape for the region but also shifted people s lifestyle. Each year since we have continued to grow and innovate. Cinestar Sofitel Carrefour City Centre Dalkia** Magic Planet Cinestar Sofitel Carrefour City Centre ORIX* Dalkia** Magic Planet Cinestar Sofitel Carrefour City Centre Fashion ORIX* Dalkia** Magic Planet Cinestar Sofitel Carrefour City Centre Najm Credit Card City Centre Qurum Ibis/Novotel Dubai City Centre Bahrain Mall of the Emirates Ski Dubai Kempinski Dubai The Wave Muscat Fashion ORIX* Dalkia** Magic Planet Cinestar Sofitel Carrefour City Centre City Centre Fujairah Sheraton Hotel (MOE) Playnation (Mirdif) City Centre Mirdif Wahooo! Water Park Najm Credit Card City Centre Qurum Ibis/Novotel Dubai City Centre Bahrain Mall of the Emirates Ski Dubai Kempinski Dubai The Wave Muscat Fashion ORIX* Dalkia** Magic Planet Cinestar Sofitel Carrefour City Centre My City Centre Nasseriya City Centre Me'aisem City Centre Clinic Kempinski Bahrain Gourmet Gulf Waterfront City City Centre Beirut City Centre Fujairah Sheraton Hotel (MOE) Playnation (Mirdif) City Centre Mirdif Wahooo! Water Park Najm Credit Card City Centre Qurum Ibis/Novotel Dubai City Centre Bahrain Mall of the Emirates Ski Dubai Kempinski Dubai The Wave Muscat Fashion ORIX* Dalkia** Magic Planet Cinestar Sofitel Carrefour City Centre Dubai Dubai Rest of UAE Oman UAE Oman Egypt *Sold in 2013 **Enova announced in June 2015, formerly known as MAF Dalkia UAE Oman Egypt Saudi Arabia UAE Oman Egypt Saudi Arabia Kuwait Bahrain Jordan Qatar UAE Oman Egypt Saudi Arabia Kuwait Bahrain Jordan Qatar Pakistan Iraq UAE Oman Egypt Saudi Arabia Kuwait Bahrain Jordan Qatar Pakistan Iraq Lebanon Georgia Armenia

9 Kazakhstan Armenia Georgia Our business spans 13 countries in MENA and Central Asia and employs over 28,000 people, with plans in place to expand. Lebanon Iraq Jordan Kuwait Pakistan Bahrain Egypt Qatar UAE Oman Saudi Arabia

10 Contents At the heart of everything we do is our dedication to our people, our communities and our world.

11 Contents At Majid Al Futtaim we believe that great people create great moments, and so our human capital journey is core to our business growth agenda. We currently employ over 28,000 employees, across 84 different nationalities and 13 countries. And as a company we strive to instill values and a culture that cultivates entrepreneurial spirit, innovation, customer service, ethical business practices, teamwork, community involvement and placing the customer at the heart of what we do. We are committed to Emiratisation in the UAE and Localisation in our other markets of operation. Specific best-in-class programmes to recruit and develop talented Emiratis and locals are in place and we offer a wide range of occupational choices spread across various industries, disciplines and countries. Best human capital practices are deeply rooted in our business culture and we provide a range of world-class training and leadership development programmes to help employees achieve ongoing career success. In 2015 we developed and rolled out our bespoke Majid Al Futtaim Leadership Model and Values. Built on the foundation of six core leadership themes, the model describes the concrete behaviours that Majid Al Futtaim leaders should role model at different stages of their career, from individual team members to senior executives. We have since distributed this model across all our operating companies and incorporated it into our yearly 360 survey, interviewing/recruitment guides, onboarding and induction programmes, performance management practices, and learning and development programmes. The Majid Al Futtaim Leadership Institute was launched in May of As the vehicle for fostering and developing leadership talent across the organisation, the Leadership Institute has launched a number of programmes already reaching thousands of employees. These programmes range from Embark, an inspirational induction for new joiners to Majid Al Futtaim, to extensive learning journeys for senior managers down to early career professionals. The Leadership Institute has also launched a company-wide culture shaping programme, and it hosts a Majid Al Futtaim Talks series, bringing world-class speakers to the organisation on a quarterly basis. In the first two quarters of 2015, we launched our first company-wide Organisational Health Index (OHI) survey with over 20,000 respondents to fully understand our strengths and development areas as a group and within each operating company. The OHI saw each operating company develop individual action plans in employeedriven action planning workshops to address specific opportunities across their respective businesses. OHI targets have been set for each operating company, both in terms of improving overall outcome and specific practices to ensure we put the necessary emphasis on organisational health and invest in our future. The OHI survey will become a permanent annual measurement tool of Majid Al Futtaim s yearly calendar to ensure we continuously check on our health and constantly improve also saw us articulate and launch the Majid Al Futtaim culture shaping journey, as well as enhance our human capital best practices in the areas of recruitment, performance management, talent management, and succession planning. We strongly believe that people are our greatest asset and are at the heart of everything we do, so we continuously strive to provide a stimulating and empowering environment that attracts, excites, and retains outstanding talent with the right passion and expertise.

12 Contents At the heart of Majid Al Futtaim s expansion strategy is our commitment towards sustainable development. At Majid Al Futtaim our sustainability mission is to enhance people s lives through sustainable real estate. We want to lead by example by applying international best practices across our portfolio, and in so doing we hope to transform the economic and social development of the region. To date, our region-leading sustainability approach has focused on our Properties business, where we know our greatest sustainability impact lies. We want to develop and operate better buildings which are as environmentally efficient as possible and which deliver social and economic benefits to our various stakeholders, including our communities, customers and supply chain. Since 2010 we have worked hard to address our sustainability impacts and are extremely proud of what we ve achieved so far. However, we re also aware that there is even more we can do to improve our sustainability performance both now and in the future. Prosperous Communities Community Well-being & Engagement Local Economic Development Employees Enhancement Of The Public Realm SUSTAINABILITY MISSION Pioneering Standards ENHANCING PEOPLE S LIVES THROUGH SUSTAINABLE REAL ESTATE Labour Conditions In The Supply Chain Health & Safety Green Building Standards Sustainable Procurement High Performance Assets Water Energy & Carbon Waste Tenants & Operators Customers & Visitors Supported By Strong Foundations For Embedding: POLICIES ANNUAL TARGETS LONG-TERM 2018 GOALS Sustainability Policy Green Builiding Policy Energy Management Policy Labour Policy Pre-acquisition Policy 12 targets for goals for 2018

13 Contents In 2015, the second year of the Majid Al Futtaim Properties five-year sustainability strategy, we made some good progress towards achieving those goals. We achieved 67% of sustainability targets, and partially achieved another 33%. We also gained Green Star status under the Global Real Estate Sustainability Benchmark for the second consecutive year, and overhauled training for tenants on the Green Star system, while enhancing the work of our Green Building Benefits Working Group to demonstrate the business case for sustainable real estate also saw progress through the piloting of our Community Engagement Guidelines and our feasibility research into developing a renewable energy approach, something we will take forward in We also carried out a socio-economic assessment of our Al Zahia development in Sharjah, the first assessment of its kind that we have undertaken. Enhancing people s lives AED 13.8 MILLION COMMUNITY INVESTMENT IAZ 6,307 HOURS OF TRAINING PROVIDED AED 1.2 MILLION PR VALUE CREATED FROM IAZ COMMUNITY INVESTMENT 104 HEALTH & SAFETY AUDITS 42 LABOUR ACCOMMODATION AUDITS ACCIDENT FREQUENCY RATE 1.68 IN UAE & OMAN 3.38 IN OTHER MARKETS 24 INTERNSHIPS & 5 JOB SHADOWING PLACEMENTS 2,370 HOURS OF VOLUNTEERING Through sustainable real estate AED 3 MILLION EXPECTED SAVINGS BY INSTALLING LED LIGHTING ACROSS OUR MALLS 11% LIKE-FORLIKE WATER USE REDUCTION IN MALLS SINCE GREEN STAR RATINGS AWARDED FOR TENANT FIT OUTS 9% OF ASSETS HAVE GREEN BUILDING CERTIFICATION 9% ENERGY REDUCTION IN HOTELS SINCE % RECYCLING RATE AT OUR HEAD OFFICE

14 As a growing company with an expanding portfolio of businesses, we fully understand that our role within the community extends to our social responsibility. The Majid Al Futtaim Charity Foundation was established in 2006 to help improve the quality of life for communities in the UAE and across the Middle East. It seeks to play an active role in creating a better future by providing healthcare and education assistance to underprivileged and marginalised sectors in the UAE, and also works with local and international charities to reach those in need. Outside of our healthcare and education initiatives, sponsoring charitable events as well as supporting Ramadan activities and other community initiatives constitute another important area of operation for us. This provides us with an opportunity to play an active role in community development as well as establish meaningful partnerships with other organisations that will have a far-reaching impact on the development of the UAE. The SMART (Start Making All the Right Turns) Programme Targeting children aged between 12 to 18 years, the SMART Programme promotes the Majid Al Futtaim Charity Foundation s healthcare initiative. SMART utilises fun, interactive activities to promote a healthy lifestyle, helped by a character called Nasheet, the SMART mascot. This leading programme was the winner of the H.H. Sheikh Hamdan Bin Rashid Al Maktoum Award for distinguished Academic Performance 2015 (Best Institution Supporting an Educational Programme). The SMART Programme is a channel for promoting public health instead of resisting diseases, and its primary aim is to encourage healthy lifestyles in three major categories: Boosting the level of physical activity Maintaining a balanced diet Refraining from smoking It also educates students on how to avoid noncommunicable diseases such as hypertension, obesity, diabetes, and high cholesterol. All of this is achieved by collaboratively involving schools and communities, along with the relentless support of the media and government organisations to create greater impact in our society. In 2015, the SMART Programme visited 47 public schools and 22 private schools, engaging a total of 8,173 students. The programme also worked with a variety of organisations and health authorities to organise a calendar of major public events throughout the UAE.

15 At Majid Al Futtaim we remain committed to best-in-class governance principles.

16 Our commitment to best in class corporate governance is a key competitive advantage, and enables us to have effective oversight of our synergistic businesses. We place considerable emphasis on governance and transparency within our operational framework and have voluntarily adopted the principles of the Combined Code on Corporate Governance for listed companies in the United Kingdom across all areas of our business. Majid Al Futtaim Properties, Retail and Ventures each maintain their own majority independent Board of Directors, responsible for setting strategic goals, measuring the success of the businesses in achieving objectives and maintaining corporate accountability. Each Board has a separate Audit and Risk Committee as well as a Human Capital and Remuneration Committee. Our strong operating companie s Board structures report to the Majid Al Futtaim Holding Board, which sets out the principles of corporate governance across each of our operating entities and geographies, and provides independent oversight to protect shareholders interests. The Holding Board acts as shareholder of the operating companies and controls decisions related to strategic new businesses, markets or divestments, and manages funding and capital allocation. The Board of Directors for our operating companies meets a minimum of four times a year, and to promote a consistent, group-wide strategy, Holding s CEO attends the Board meetings of all three subsidiaries. Our board and committee structure HOLDING MAJID AL FUTTAIM RETAIL Sub Committees Audit & Risk Committee MAJID AL FUTTAIM PROPERTIES Sub Committees Audit & Risk Committee MAJID AL FUTTAIM VENTURES Sub Committees Audit & Risk Committee HR & Remuneration Committee HR & Remuneration Committee HR & Remuneration Committee

17 Contents Our business, property and affairs are overseen under the direction of the Majid Al Futtaim Holding Board, which provides independent oversight of the subsidiary operating companies management performance; and holds the Board and management accountable to the shareholder. Amongst many other eminent appointments, Mr Viswanathan Shankar was Group Executive Director and a member of the Board of Directors of Standard Chartered PLC. He also served as Chief Executive Officer for Standard Chartered across Europe, Middle East, Africa and the Americas, as well as Executive Chairman of Principal Finance, and Chairman of Standard Chartered Private Bank. Appointed in 2012 Appointed in 2009 Sir Michael Rake is currently the Chairman of BT Group PLC, the UK s largest telecom operator, Chairman of payments processing firm Worldpay Group LLC, and a director of McGraw Hill Financial. Previous appointments include Chairman of KPMG International, Senior Partner at KPMG UK, Chairman of KPMG Europe, and President of the Confederation of British Industry ( ) amongst many others. Appointed in 2012 Ian Davis Sir Michael Rake Chairman Viswanathan Shankar Mr Davis is Chairman of Rolls Royce, an independent Non-Executive Director of British Petroleum and Johnson & Johnson, Inc., a senior adviser to Apax Partners LLP, as well as a Non-Executive member of the UK Cabinet. Previous appointments include Managing Partner of the McKinsey practice in the UK and Ireland, and McKinsey Chairman and Worldwide Managing Director. During his career, Mr Davis also served as a consultant to a range of global organisations across the private, public and not-for-profit sectors. Alain Bejjani Chief Executive Officer Khalifa Sulaiman Deputy Chairman Appointed in 2011 A prominent UAE national, Mr Khalifa Sulaiman has enjoyed a seasoned profession in government, representing his country at the highest levels locally, regionally, and internationally. In his career he has been Ambassador to the Court of St James in the UK, Chairman of H.H. The Ruler s Court, Dubai, and Director and Chairman of the National Bank of Dubai PJSC. Appointed in 2015 Mr Alain Bejjani has built a distinguished career at Majid Al Futtaim. He was formerly the Chief Corporate Development and Brand Officer at Majid Al Futtaim Holding, and Vice President (Legal) and Head of Business Development at Majid Al Futtaim Properties. Prior to that, he was Executive Vice-Chairman of the Investment Development Authority of Lebanon (IDAL) and a founding partner of a law firm. Andrew Sharp Company Secretary Tariq Al Futtaim Appointed in 2005 Mr Tariq Al Futtaim has been involved in the Majid Al Futtaim business as Vice President since the group was first formed. He is currently the Chairman of the Majid Al Futtaim Charity Foundation, an esteemed charitable initiative well known for its work in the healthcare and education sectors. Appointed in 2009 Along with being Company Secretary for Majid Al Futtaim Holding, Mr Sharp also serves as Company Secretary for its operating company Boards and a number of joint venture Boards across a portfolio of companies throughout the MENA region. Previous positions include Deputy Company Secretary for Fuller Smith & Turner PLC, a FTSE 250 company, and Assistant Company Secretary and Pension Fund Secretary for Nestlé Holdings (UK) PLC and Cereal Partners UK.

18 The continued strength of Majid Al Futtaim s business fundamentals helped deliver a stable financial performance in 2015.

19 In 2015 Majid Al Futtaim built a strong foundation for the future by maintaining a robust financial profile and delivering steady, resilient growth. As per our transparent disclosure policies, our full consolidated financial statements for 2015 (and going back historically) can be found on our website In this section we provide a clear, user-friendly overview of the financial developments and highlights for 2015, together with the key top-line figures and matrices. All financials presented here are IFRS-based. Revenues and EBITDA (AED million) MAJID AL FUTTAIM GROUP FINANCIAL SNAPSHOT 16,778 18,403 Revenues CAGR = 10% 20,579 22,696 25,261 27,343 2,279 2,736 2,969 3,276 3,586 3, Financial Highlights Driven by strong fundamentals and operational performance, the financial results for the year ending 31 December 2015 show net profit from continuing operations increase by 29% to AED 3.3 billion. There was also steady growth, with total revenues growing by 8% to AED 27.3 billion. While EBITDA from recurring operations grew by 7% year-on-year to reach AED 3.8 billion. We also continued to maintain a strong balance sheet, with total assets valued at more than AED 50 billion and a net debt of around AED 9.2 billion. REVENUES EBITDA In June 2015 our BBB credit rating was reaffirmed by Fitch and Standard & Poor s. In addition we raised USD 500 million capital through a Sukuk issuance, now listed on NASDAQ Dubai and the Irish Stock Exchange.

20 We have a proven track record of steady and balanced growth through periods of financial, political and social crises. In the last five years we have consistently shown our commitment to delivering strong financial results on the back of an effective growth strategy. Item MAJID AL FUTTAIM HOLDING LLC CONSOLIDATED FINANCIALS (AED MILLION) Y CAGR Assets 33,956 35,469 37,918 39,454 44,624 50, % Revenues EBITDA 16,778 2,279 18,403 2,736 20,579 2,969 22,696 EBITDA is an important indicator of recurring operational cash flow performance, and therefore, of its underlying health and stability. As such, it is one of the most relevant measures for our debt investors. 3,276 EBITDA MARGIN BY ENTITY (%) 25,261 3,586 27,343 3, % 10.9% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 61.9% 63.4% 62.0% 62.6% 62.0% 63.7% 18.6% 17.5% 12.6% 14.2% 14.2% 13.0% 5.9% 5.5% 5.3% 5.6% 5.3% 5.4% MAF PROPERTIES MAF RETAIL MAF VENTURES

21 An overview of steady, consistent growth within our three operating units. Majid Al Futtaim Properties Properties increased footfall during the past year at its shopping malls by 3% (4% on a like-for-like basis) to 178 million consumers. Revenue increased by 6% to AED 4 billion, and EBITDA rose by 10% to AED 2.6 billion, contributing around 65% of the group s overall EBITDA. MAJID AL FUTTAIM PROPERTIES (AED BILLION) REVENUES EBITDA Item Revenue EBITDA Y CAGR 12.1% 12.8% Revenue per available room (RevPar) at the company s 12 hotels declined by 7% during the year with average occupancy rates of 72% for the year. This decrease can be attributed to the increased supply of rooms versus the previous year, as well as the slower tourism inflow. Majid Al Futtaim Retail 2015 saw the opening of nine new Carrefour hypermarkets, 11 new supermarkets, and five convenience stores, as well as entry into a new market, Armenia. As of 31 December 2015, Retail operated over 65 Carrefour hypermarkets, over 75 Carrefour supermarkets, and six convenience stores across 13 countries, as well as an online store REVENUES 15.1 MAJID AL FUTTAIM RETAIL (AED BILLION) EBITDA Item Revenue EBITDA 5Y CAGR 9.6% 9.3% Revenue increased by 7% to AED 22 billion, and EBITDA rose by 3% to AED 1.2 billion, contributing around 30% of the group s EBITDA. Majid Al Futtaim Ventures In 2015, Ventures achieved strong operational growth with revenue increasing by 34% to AED 1.4 billion, and EBITDA for the year increasing by 22% to AED 186 million MAJID AL FUTTAIM VENTURES (AED MILLION) Cinemas saw a 40% increase in admissions with 58 new screens being added, bringing the total number of screens to 182. Fashion saw the opening of more than 71 new stores including popular global stores such as Abercrombie & Fitch, lululemon athletica and Peacocks, while Najm cards saw an increase of 50% in the number of cards in force, with a 9% increase in transaction REVENUES EBITDA Item Revenue EBITDA 5Y CAGR 13.6% 14.4%

22 Majid Al Futtaim enjoys a strong credit and liquidity profile, well in line with our prudent approach to financial management and board approved policies, guided by BBB credit rating metrics. Secured debt as a percentage of Gross Debt EBITDA from encumbered assets as % of Total EBITDA MAJID AL FUTTAIM S ROBUST CAPITAL STRUCTURE Dec % 28% Dec % <1% Dec % 4% Dec % 4% Dec % 3% We have about AED 9.2 billion of cash and committed available lines, to cover about two and a half years of financing needs (including debt maturities during this period). All of our credit metrics are well within threshold, and have ample headroom. 1,600 1,200 DEBT MATURITY PROFILE (AED MN) 4,451 Majid Al Futtaim Holding Level (AED Million) All of which is Senior Unsecured obligations at Holding level MAJID AL FUTTAIM GROUP S BALANCE FUNDING PROFILE CROSS GUARANTEES Majid Al Futtaim Properties Level (AED Million) All of which is Senior Unsecured obligations at Properties level Other (AED Million) Primarily project finance with limited recourse to borrower ,108 1,593 1, onwards STRONG LEVERAGE METRICS All Senior Unsecured financing obligations rank pari passu among themselves Maintained focus on conservative liquidity and risk management policies Total gross debt amounted to c. AED 10.6 bn as of 31 December 2015 (excluding USD 500mn hybrid issuance) 10,500 9,000 7,500 6,000 4,500 3,000 1, x 1,693 8, x 2,279 8, x 2.2x 2.2x 2.4x 2.3x 2,736 7,787 2, ,911 EBITDA NET DEBT (AED MN) NET DEBT / EBITDA (TIMES) 3,276 7,065 3,586 9,918 3,835 9, Well-received issuance in the Debt Capital Markets in October 2015 issued first 10-year Sukuk (USD 500mn) Both Fitch ratings and Standard & Poor s have reaffirmed BBB rating with stable outlook in June 2015 Optimised debt portfolio and increased revolver component of bank financing to reduce cost of carry Cash position of over USD 380mn and undrawn lines of over USD 2bn (as of 31 December 2015) Average debt life extended to 5.2 years as of 31 December ,000 30,000 25,000 20,000 15,000 10,000 5, % 8,223 17,966 MAJID AL FUTTAIM'S CAPITAL STRUCTURE 8,488 47% 18,101 7,793 40% 19,666 6,911 31% ,943 29% 7,066 24,164 29% 8,008 27,923 29% 9,242 31,731 50% 40% 30% 20% 10% 0% NET DEBT (AED MN) EQUITY (AED MN) NET DEBT / EQUITY (%)

23 Our financial health can be attributed to a number of factors. We re a leading MENA asset owner with high profile, landmark locations Our market leadership in markets with positive long term macroeconomic potential due to our retail and consumer focus The low volatility of an operating income with diversified income streams and a balanced financial profile Our complementary businesses with cross-synergies that reduce individual business risks Our robust and best practice corporate governance framework Our prudent financial management with conservative liquidity and risk management policies

24 We remain committed to helping build the region s future, by strengthening our position in the UAE while expanding into growth markets. There are a number of impressive mall developments in the pipeline in the UAE, Oman, Egypt, and KSA in the near future. Expansion into Egypt continues with City Centre Almaza planned as the third City Centre in Egypt and the 14th in the MENA region. With over EGP 4 billion invested, the new mall is expected to create 36,000 direct and indirect job opportunities. City Centre Almaza is projected to open by 2019, and will feature 103,455 square metres of retail space offering over 300 of the best international and local brands, as well as 23 restaurants, 18 food court outlets and nine cafés. In addition to housing a unique retail mix of the leading international and local brands, the centre will include a 13,040 square metre Carrefour, 16 state-of-the-art VOX Cinemas screens, a 1,800 square metre Magic Planet family entertainment centre and 4,000 parking spaces. City Centre Almaza is one component of our solid investment plan in Egypt worth EGP 23 billion, which also encompasses the Mall of Egypt, scheduled to open in 2016, and the expansion of City Centre Maadi; in addition to four neighbourhood centres in new residential cities in Cairo and the development of four new shopping malls in greater Cairo. Our presence in Saudi Arabia will also be expanding with plans to develop two world-class mall concepts in Riyadh, with an investment of SAR 14 billion. Mall of Saudi will be the Kingdom s largest shopping mall and will be home to the country s first snow park. The first phase of development at Mall of Saudi, which is set to commence by mid-2017 and be completed by 2022, will see the opening of the mall, ski slope, one hotel and serviced apartment building, as well as other general infrastructures. Future phases will include the development of the residential, office, medical centre, and hotel plots. Once completed the development will provide a landscaped and green environment for both local residents and tourists to live, work, and play. In east Riyadh, we plan to expand the region s largest mall network by building City Centre Ishbiliyah. Set to commence in 2017, it will cover over 100,000 square metres of gross leasable area and will feature 250 stores, a 9,000 square metre Carrefour hypermarket, a food court, and an entertainment complex inclusive of Magic Planet. We will also be increasing our investment in Oman by OMR 515 million by 2020, reaffirming our long-standing commitment to the Sultanate. Our investment strategy includes Mall of Oman, set to commence construction in 2016; as well as City Centre Sohar, My City Centre Sur, and additional investments from our retail, leisure and entertainment businesses including Magic Planet, Carrefour, and VOX Cinemas. Majid Al Futtaim s investments are anticipated to create more than 42,000 direct and indirect job opportunities in the Sultanate in the next five years. There are also three planned hotels for the UAE, including the Aloft Hotel at City Centre Deira, due to start in Q2 2016; and the Hilton and Hilton Garden City at City Centre Mirdif, due to start in Q In addition to the mall and hotel developments, there are 11 new Carrefour hypermarkets in the pipeline for the MENA region, with the hypermarkets in Iraq, Kazakhstan, Pakistan, and Oman set to open in As we help build the region s future, we will continuously strive to achieve our goal of sustainably delivering double-digit growth in the next five years. And we look forward to delivering more great moments to more customers in more countries.

25 CONTACT Corporate Brochure PO Box Deira MAF Tower 1 Adjacent to Deira City Centre Deira United Arab Emirates majidalfuttaim.com T F