Amanat : التقرير المتكامل لسنة 2021

Annual Report

2021

A Transformative Year

TABLE OF

CONTENTS

A Transformative Year

02 About Amanat

06 Chairman's Message

08 2021 Highlights

16 Chief Executive's Report

20 Our Business Model: Building Platforms

26 Our Strategy

32 Chief Financial Officer's Financial and Operational Report

36 Our Platforms

60 Our Markets

72 Environmental, Social and Governance

80 Corporate Governance

100 Executive Management

104 Consolidated Financial Statements

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Amanat Annual Report 2021

Amanat Annual Report 2021

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About Amanat

About Amanat

As the region's largest integrated healthcare and education investment company, Amanat Holdings leverages its extensive track record and proven holistic, hands-on management approach to consistently deliver incremental value to its shareholders.At the same time,Amanat continues to positively impact the societies it operates in, setting new standards across both its chosen sectors while expanding access to high quality services.Amanat was established and listed on the Dubai Financial Market in November 2014, with a paid-up capital of AED 2.5 billion.

Today, Amanat's portfolio encompasses investments in the UAE, Saudi Arabia, and Bahrain with plans to further grow its footprint across the MENA region and beyond. In the healthcare sector, Amanat controls the GCC's largest post-acute care platform, providing vital specialized long-term care to patients recovering from surgery, chronic and mental illness, or disability. It also owns a majority stake in Bahrain's sole women- and children-focused private sector hospital. Meanwhile, in the education sector, Amanat's diversified offering, which ranges from graduate and postgraduate education to corporate and vocational training, continues to attract top regional and international talent equipping them with the knowledge and skills necessary to become tomorrow's leaders.The Company is also increasing its exposure to HealthTech and EdTech while expanding its investments in social infrastructure as it looks to drive the digitalization of both sectors and support long-term sustainable growth across its portfolio.

44

Investments in healthcare

Investments in education

418			11k
Operational beds across 5 specialized	Students across 3 leading
	hospitals		universities

367.0MN	98.4MN	40.6MN
AED	AED	AED
Amanat's total income in	Total income from education	Total income from
FY-2021	in FY-2021	healthcare in FY-2021

202.9MN	103.4MN	280.8MN
AED	AED	AED
Total gain on disposal in	Amanat's adjusted net	Amanat's net profit in
FY-2021	profit in FY-2021	FY-2021

2.4MN		2.4BN
AED	Total assets under management	AED	Capital deployed as at 31
	as at 31 December 2021		December 2021

4	Amanat Annual Report 2021

About Amanat

Leaders in Healthcare &

Education Investing

Amanat Annual Report 2021

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A Unique and Diversified Portfolio

The Company's platforms have been designed to create long-term value through scale and synergy. They offer multi-investment ecosystems that benefit from capital infusions, shared operating partners and future add-on ac- quisitions, thereby offering Amanat's investments multiple avenues from which to drive future growth. Over the years, Amanat has been able to consistently grow and optimize its

portfolio employing a clear investment strategy focused selecting high quality, distinctive and competitively

able companies offering attractive future growth prospects As at year-end 2021, Amanat held stakes in eight

nies, including several industry leaders in their markets, providing unique and diversified exposure region's healthcare and education sectors.

Healthcare

Amanat has four investments in the healthcare sector encompassing specialized care facilities and an investment in real-estate. Today, the Company's healthcare assets operate a total of 418 bed across five specialized hospitals. Amanat's investments include:

Education

Amanat's education investments cover graduate, post-graduate, corporate and vocational training as well as education technology and an investment in real-estate. The Company's education investments include:

	Through its flagship JCI-accredited facility Interna-
	tional Extended Care Center (IECC), the company
	provides acute extended care, critical care and home
Sukoon International Holding	care medical services to patients who are no longer
Company (Sukoon)	suited for care within a traditional hospital setting.
	CMRC is a leading post-acute care and rehabilitation
	provider in the UAE and Saudi Arabia with more than
	250 beds across three facilities. When combined with
Cambridge Medical and	Sukoon, this sees Amanat control the GCC's largest
Rehabilitation Center (CMRC)	post-acute care platform.
	RHWC is the only private sector hospital in Bahrain
	focused on offering women and children healthcare
	services. The facility's strategic location, strong rela-
	tionships with local partners, and a favorable long-
Royal Hospital for Women	term lease agreement offer RHWC a strong base
& Children (RHWC)	from which to drive future growth.

130

Operational beds

256

Operational beds

32

Operational beds

Abu Dhabi University Holding Company (ADUHC)	Middlesex University Dubai (MDX)
A leading, nationally ranked private higher education provider	MDX is the first overseas campus of the internationally renowned
with a track record of almost 20 years in the UAE market.	Middlesex University in London, providing exceptional education
	opportunities across its two campuses for students from more
	than 118 different nationalities.

c. 7,500	c. 3,500
Graduate and post-graduate students	Graduate and post-graduate students

North London Collegiate School Dubai (NLCS)	BEGiN
Amanat owns the real estate assets of NLCS, a premium Interna-	Amanat holds a stake in the US-based,award-winning ed-

Real Estate Property of CMRC's Abu Dhabi Facility

CMRC's Abu Dhabi real estate comprises around 6,000 square meters of land and a built-up area of more than 6,600 square meters encompassing two three-leveled building blocks with 106 beds alongside rehabilitation facilities. This is Amanat's first investment in healthcare real estate further diversifying the Company's exposure in the sector.

tional Baccalaureate curriculum K-12 school.This was Amanat's	ucation technology company, broadening the Company's
first social infrastructure investment giving the company access	holdings in the sector and delivering on its vision of leading
to a stable asset class generating attractive yields and long-term	digitalization across the education sector as BEGiN's partner of
recurring income.	choice in the region.

6	Amanat Annual Report 2021

Chairman's Message

Chairman's Message

Amanat Annual Report 2021

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As I reflect back on the last twelve months, I can confidently say that we have delivered on all fronts, reporting record-high profitability, closing four transactions in excess

of AED 1.7 billion to optimize our portfolio, and witnessing a significant hike in our share price from last year's lows

On behalf of the Board of Directors, I am honored to present to you Amanat's 2021 annual report.The year that just ended was a transformative year for the Company, which saw us put the challenges of 2020 in the rearview mirror and start a fresh chapter of growth and value creation for our stakeholders.

At the start of 2021, just as countries around the world were beginning the rollout of COVID-19 vaccines and the global economy was showing signs of a sustained recovery, at Amanat we were inaugurating our new strategic roadmap, outlining our post-COVID-19 strategy and longer-termthree-year vision for the Company. As I reflect back on the last twelve months, I can confidently say that we have delivered on all fronts, reporting record -high profitability, closing four transactions in excess of AED

1.7 billion to optimize our portfolio, and witnessing a significant hike in our share price from last year's lows.

In 2021, we delivered strong financial and operational results driven by solid performances across all our investments and further bolstered by cost-saving and optimization initiatives implemented at the corporate level. In fact, we closed the year reporting our highest ever bottom-line figure of AED 281 million,

testament to the incredible work done by our team during the last extraordinarily challenging period.

Meanwhile, on the portfolio optimization front, we kicked off the year with the acquisition of Cambridge Medical and Rehabilitation Center ("CMRC"), marking our first wholly-owned investment in the healthcare sector in the UAE and one of the biggest GCC healthcare deals in recent years. We followed this up in September with the acquisition of the real estate property of CMRC's facility in Abu Dhabi, our first investment in healthcare real estate. In parallel, we also divested our minority stakes in Taaleem and IMC, generating attractive returns and ample cash to reinvest in opportunities better aligned with our long-term vision.

Concurrently, we launched our third platform focused on social infrastructure, which will aim to enable our portfolio companies to grow, while providing sustainable long-term lease relationships.

In turn, the new platform offers us an opportunity to further diversify our exposure across the healthcare and education sectors and create a portfolio of real estate assets with a sustainable and resilient yield.

That said, the value we are delivering across multiple fronts has become inherently apparent and has equally been reflected on our share price, which recorded a steady appreciation throughout the year on the back of growing interest from investors.The increasing appetite is also directly attributable to our efforts to revamp our investor relations and communication strategies as we integrated best-practice and better aligned them to investor requirements.

We continue to positively impact the societies we operate in, setting new standards across both our chosen sectors while driving long-term change in the way education and healthcare services are accessed and delivered. More specifically, throughout the year we continued to actively support the healthcare and education agendas of GCC governments. On the healthcare front, we are taking part in the advancement of medical tourism and patient repatriation in the region, effectively leveraging our integrated healthcare platforms to offer high-quality specialized medical services that have the ability to compete with those offered by other emerging markets. In parallel, our post-acute care platform, which is now the largest in the region, is playing an increasingly important part in alleviating pressure from traditional healthcare facilities as the region's elderly population continues to grow and the prevalence of lifestyle-related diseases remains high. On the education front, in line with the UAE government's Vision 2021 National Agenda, we have continued to expand access to high-quality education and professional training for students across the UAE. As a company based and listed in the UAE, we have been firm believers in the UAE's transformation roadmap since day one and are proud to have played a role in its realization.

At Amanat, we understand that investors' decisions, including our own as an active investor, are increasingly being made with a focus on the social and environmental impact of a business.As such, across our operations both at the corporate and portfolio company level we have taken on a proactive role to deliver innovative strategies that drive long-term sustainable value. Over the past year, we have focused on evaluating the impacts and opportunities of our businesses and aligning our future goals and strategies to those of communities around the region and the UN's Sustainable

Development Goals. While I am pleased with our progress thus far, I am cognizant that our journey is still ongoing.

In the coming year, our attention will shift towards integrating ESG global best practices relating to governance, business strategy, sustainability, and performance management into all aspects of our operations. On this front, we look forward to showcasing our efforts and ESG roadmap in our upcoming report, while also providing a wide range of performance indicators to measure our future progress. Ultimately, we want to ensure that ESG is at the heart of all the decisions we make so that we can continue to deliver sustainable value to all stakeholders.

2022 is shaping out to be an exciting year for Amanat. While the global healthcare and economic challenges related to COVID-19 are likely to remain with us well into the new year, countries around the world are continuing to demonstrate an increasing ability to coexist with the virus and its variants. This same ability continues to be demonstrated by Amanat and by all our portfolio companies as we successfully adapted to challenging operating conditions during 2020 and then effectively capitalized on the post-COVID-19 rebound in 2021. In light of the strong financial and operational results delivered in the last year I am confident that we are ideally placed to make the most of changing market dynamics and deliver an even stronger performance in 2022.

As the region's only publicly listed investment company focused on healthcare and education, we are also looking to drive long- term change in the communities and industries we operate in. For us, this means investing in companies that are pioneering solutions that address some of the key issues impacting our chosen sectors, and which help support the delivery of government healthcare and education agendas across the region.

Finally, I would like to extend my utmost gratitude to our shareholders, Board of Directors, management, and employees for their continued efforts in helping us deliver on our strategic objectives. I am privileged to have the opportunity to work with you during this journey and I look forward to another successful year together.

Hamad Abdulla Alshamsi

Chairman