Mubadala announces a total comprehensive income of Dhs72 billion

Mubadala Investment Company on Thursday released its 2020 financial results for the Group. In 2020, Mubadala achieved a Total Comprehensive Income attributable to the owner of Dhs72 billion for the year, compared to Dhs53 billion in 2019.  It is the largest TCI in Mubadala’s history, driven by significant growth in Mubadala’s public equities portfolio and funds, as well as the company’s assets across various sectors.  

The performance was also attributable to Mubadala’s multi-year strategy to increase investments in sectors with growth ‘tailwinds,’ such as technology, life sciences, and consumer goods, through direct investments and partnerships with leading fund managers.  Major investments in 2020 reinforced that strategy, including long-term agreements with Silver Lake in technology; in life sciences with PCI Pharma in the US; and in consumer goods and telecommunications with the Reliance Group of India. Other significant investments included new commitments and deployments with Apax Partners, Citadel, iSquared Capital and CVC.

Managing Director and Group Chief Executive Officer Khaldoon Al Mubarak said: “Last year, as the world confronted a tragic pandemic, we worked closely with our partners and portfolio companies to offer support to communities hit hard by Covid.  Across the group, our employees dedicated themselves to helping these communities during this crisis, and that important work will continue.”

“We navigated our portfolio through the dramatic macro-economic decline of early 2020, and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth.  In line with our long-term strategy, we increased our investments in sectors where we have high conviction, and with high performing fund managers.  Technology and life sciences in particular have been essential to the world over the last year, and we see those sectors bringing greater opportunity for deeper investment.   We have worked to be well-positioned in these areas and in key geographies as the global economy continues to recover.”

At year-end, Assets Under Management across the group stood at Dhs894 billion compared to Dhs 853 billion in 2019.

Group Chief Financial Officer, Carlos Obeid, added: “This strong performance was a reflection of our agility as an investor, as well as our globally diversified portfolio of equities, funds, and mature and growing companies.  In 2020 we took advantage of the historically low interest rates to lower our cost of borrowing and extend its weighted average life on the back of strong investor demand for our bond issuances. We continue to maintain a prudent gearing ratio standing at 9.1% and a strong cash position as we manage through this economic cycle with a long-term view.”

Mubadala invested a record amount in 2020 as it doubled down on growth sectors, and is close to making a decision on the listing of Emirates Global Aluminium (EGA), said Khaldoon Khalifa Al Mubarak, Chief Executive Officer of Mubadala recently.

 “We’ve invested more in 2020 than we have ever done in any one year prior to that,” Khaldoon Khalifa Al Mubarak told a virtual event organised by Bahrain’s Investcorp. Mubarak did not disclose the figure. He said Emirates Global Aluminium, which is owned by Mubadala and Investment Corp of Dubai, is well placed for an initial public offering. “This company is now a very mature business, a very well-placed business for growth. It’s cost base is in the lowest quartile...it’s a great business,” he said.

Mubadala, which manages $232 billion, invested $853 million in the retail division of India’s Reliance Industries in October after paying $1.2 billion for a 1.85% stake in Reliance’s digital unit, Jio Platform in June. “We have invested more in India in 2020 than the previous 19 years combined, that gives you an indication of how serious we are about investing in India,” Mubarak said, noting Mudabala had been underweight in terms of its exposure to the country in the past.

He confirmed Mubadala’s team is looking at the pipelines business of Saudi Aramco but had yet to decide whether to invest, nor had it taken a view on the listing of Santa Clara-based semi-conductor producer Globalfoundries. Mubarak said future risks include inflation, another pandemic, the trade rift between the United States and China, as well as a global correction and economic slowdown.

Mubadala Investment Company announced recently that it will invest in Rodenstock Group, the leading manufacturer of premium ophthalmic lenses, as a minority investor alongside Funds advised by Apax (Apax Funds). Founded in 1877, Rodenstock has been a global leader in prescription lenses for over 140 years, with a strong track record of innovative product development and market leading technologies. Separately, Mubadala Investment Company has invested $75 million in 5-year pre-IPO convertible bonds of Telegram, an operator of the self-named security-focused social media platform, with Abu Dhabi Catalyst Partners investing a further $75 million.