Abu Dhabi Aviation Co. — Environmental & Social Information 2021

Sep 25, 2021

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1 Abu Dhabi Aviation Sustainability Report 2020

Contents

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Contents	Page No
About Abu Dhabi Aviation	3
Message from the Chairman	4
ADA Group Review	5-6
Sustainability Strategy and Framework	7
Our Response to Covid-19	8
Corporate Governance	9-10
Financial Performance	11
Human Development	12
Social Development	13-15
Environmental Development	16-19

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About Abu Dhabi Aviation

Abu Dhabi Aviation (ADA) is the largest helicopter operator in the Middle East and currently operating a fleet of Leonardo AW139, Bell 412 and Bell 212, Eurocopter EC135 and Bombarider DHC-8 aircraft. ADA has a main base in Abu Dhabi with international operating locations in the Middle East , Europe and Africa.

The Company has established in 1976 by virtue of an Amiri Decree and started operations and added fixed-wing aircraft in 1991. A third-party maintenance facility was opened in 1994. ADA is owned by Government of the Emirate of Abu Dhabi (30%) and UAE Nationals and Foreign Shareholders (70%). ADA currently has approximately 1,100 employees.

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MISSION

To provide innovative solutions globally, while exceeding shareholder, customer and employee expectations.

VISION

One team, propelling ADA safely and profitably into the future.

VALUES

• Safety

• Teamwork

• Quality

• Integrity and Ethics

The ADA Group continues to expand its business into other markets, including a 50% equity holder of Royal Jet, an international VIP Charter Airline and 100% ownership of Maximus Air. In 2016, ADA opened Abu Dhabi Aviation Training Centre LLC (ADATC), a state-of-the-art helicopter and training simulator facility.

The Company exceeded a million helicopter flight hours with an enviable safetyrecord especially given the extremely high number of offshore takeoffs and landings – many of the company offshore helicopters averaging six to seven cycles per hour. This level of activity demand the highest caliber of flight and maintenance crews supported by noteworthy safety and compliance program.

Abu Dhabi Aviation is a public joint – stock registered in Abu Dhabi Securities Exchange. The Company’s registered office is located at Abu Dhabi International Airport next to Terminal 2, Abu Dhabi Aviation Terminal PO Box 2723, Abu Dhabi, UAE. 3 Abu Dhabi Aviation Sustainability Report 2020

• Customer Focus

GOALS

• Safety is ADA’s top priority & fundamental core value and is never compromised. • We value innovative, timely, efficient, costeffective, reliable and best quality services. • We are committed to achieving the highest levels of customer satisfaction.

• We value the contribution that our team makes in achieving our mission and we support and encourage teamwork to ensure a high level of competence, expertise and competitiveness. • Trust, responsibility, transparency, commitment and accountability, are the pillars of our existence.

Message from the Chairman

We are proud of what the aviation industry has become in the United Arab Emirates and this was attributed to the huge political, economic and infrastructure development in the country. Since 1976, Abu Dhabi Aviation has grown from a single client operation into the largest commercial helicopter operator in the Middle East and North Africa, providing highly specialized aviation services in the most challenging environments around the world.

The core of our success has been attributable to an ongoing investment in employing and retaining highly qualified, skilled and dedicated employees, allowing us to approach One Million helicopter flight hours, while maintaining an enviable safety record.

What has been important to our success is ever increasing engagement with our strategic partners in the Oil and Gas industry, and in the formation of established Joint Ventures, both domestically and internationally. As we expand further, Abu Dhabi Aviation will continue to strive to provide aviation services that set the standard, both regionally and globally, utilizing approved aviation solutions that take the client’s interests as a priority.

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I would like to take this opportunity to thank Abu Dhabi Aviation for their team effort, our clients for their trust, and our shareholders for their dedication and support, all of which has contributed to the success we have attained, and I am confident that we will continue to excel in the years to come.

H.E. Nader Ahmed Al Hammadi Chairman of the Board

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ADA Group Review

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ADA has established ADA International Real Estate LLC (ADAIRE) to manage the Group’s land and properties in the UAE and overseas.

The scope of work of ADAIRE includes:

ADA has 100% ownership in Abu Dhabi Aviation Training Centre LLC (ADATC) for simulator training. The facility has nine bays scalable to eighteen bays at phase two. ADATC holds the following FFS simulators:

• AW139

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• Bell 412

• King Air 350

• Embraer ERJ 145

ADATC provides also the following courses:

• Pilot Initial and Type Rating (Ground and Flight)

• Recurrent and Refresher (Ground and Flight)

• LOFT

• Airframe and Avionics

• GCAA EASA and GACA approved courses

• GCAA EASA and GACA Examiners

• NVG Training

• CRM, First Aid, Fire Fighting, Dangerous Goods and others

• Asset Management

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• Property Management

• Leasing Services

• Joint Ventures

• Private Equity

• Facilities Management Services

• Development Management Services

• Investments

AgustaWestland Aviation Services LLC is a joint venture between ADA (70%) and the aircraft manufacturer Leonardo Helicopter (30%) to provide the following services:

• Helicopter MRO and Logistics

• Spare Parts Distribution Centre

• Component Repair and Overhaul

• Floats and Rafts Inspection, Repair and Overhaul

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ADA Group Review

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ADA has 100% ownership in Maximus Air L.L.C. (MAX), the largest air cargo operator in the UAE and among the largest in the Middle East. It has a fleet of Antonov AN-124-100 and Ilyushin IL-76TD. The company provides end to end outsized cargo solutions including dangerous goods, equestrian and live animals.

Royal Jet L.L.C. (RJ) is jointly owned by Abu Dhabi Aviation PJSC (50%) and Presidential Flight Authority (50%).

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The fleet includes eleven (8) aircraft:

• (6) Boing Business Jets BBJ

• (2) Global 5000

The company’s core offerings are:

• Luxury VIP Aircraft Charter

• Medical Evacuation Services

• Charter Brokerage

• Aircraft Management and Acquisition Consultancy

• Fixed Base Operations (FBO)/VIP Terminal at Abu Dhabi International Airport and Seychelles

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Other subsidiaries include ADA Real Estate Management and General Maintenance LLC (REMCO) and ADA Millennium Consulting – Owned by Abu Dhabi Aviation Sole Proprietorship LLC (ADAME).

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Sustainability Strategy and Framework

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Sustainability is the fundamental of everything we do. We strive hard to operate responsibly and transparent by living our vision as one team, propelling ADA safety and profitably into the future. We are committed to provide positive impact on our communities, while at the same time maintaining sustainable success.

ADA framework has four key pillars: Economic, Human, Social, and Environmental. ADA believe that an effective framework will help achieve its strategic business objectives.

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Our Response to Covid-19

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COVID-19 and the low oil prices during the current period had a negative impact on the Group, as it did for the majority of companies globally, but due to the diversification of Group’s activities, ADA managed to sustain profitability.

Out of ADA Group, the two companies that were materially affected by the current environment are RJ and ADA Training Center. Both companies have taken various measures to reduce their cost including salary reductions. The Group is continuously monitoring the impact of Covid-19 and will be taking further timely actions if necessary.

Due to regulations and COVID-19 risks, ADA got its shared services and support staff to work remotely from home. ADA reacted accordingly and introduced paperless environment, electronic document management and digital signatures in addition to embracing video-calls. Productivity was not adversely affected and ADA is operating as normal.

From safety point of view, the company took various actions to mitigate the risks of COVID-19, including disinfecting premises (offices, hangar and staff compound), fumigating aircraft, installing thermal imaging cameras, staff segregation and making the use of PPE mandatory in the workplace.

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Corporate Governance

Abu Dhabi Aviation has been developing and implementing an efficient and effective organizational structure at the level of the company’s various departments and divisions, to ensure a high level of coordination and administrative interaction, as shown below the organizational structure of the company and approved by the company’s board of directors, as follows:

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Board of Directors

The Board of Directors are all UAE Nationals. The BOD has been active in building a strong corporate governance culture that plays an important role in defining and implementing the standards of responsibility that enable the management to manage the Company to the best benefits of shareholders.

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Corporate Governance

Audit, Nomination and Remuneration Committee Members	Audit, Nomination and Remuneration Committee Members
Name	Position
Sheikh Ahmed Mohamed Sultan Al Dhaheri	Chairman of the Committee
Mr. Ahmed Ali Khalfan Al Dhaheri	Member
Mr. Abdulla Seddiq Al Khoori	Member

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Ownership Structure	Ownership Structure
Share Capital	444,787,200
ListingDate	December 15, 2000
Company Type	Public Joint Stock Company (PJSC)
Auditor	Deloitte & Touche (M.E.)

The issued capital is distributed as follows:

Investment Committee Members	Investment Committee Members
Name	Position
Mr. Khalifa Yousif Abdulla Al Khoori	Chairman of the Committee
Mr. Saif Saeed Mohammed Al Dhaheri	Member
Mr. Abdulmunim Saif Hamoud Al Kindi	Member
Mr. Mohamed Khalil Foulathi Al Khoori	Member

• (30%) Government of the Emirate of Abu Dhabi

• (70%) Shareholders, the ownership of non-UAE nationals shall not exceed 30% of the Company’s Share Capital

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Financial Performance

	For the period ended 31 December 2020	For the period ended 31 December 2019	Increase/ (decrease)
Turnover	1,558,504	2,081,716	(25%)
Operating Profit	342,969	519,906	(34%)
Operating Profit - %	22.01%	24.97%
Net profit	154,686	301,205	(49%)
Netprofit - %	9.93%	14.47%
EPS for the period	0.40	0.55	(27%)
	As at 31 December 2020	As at 31 December 2019	Increase/ (decrease)
Total Assets	4,977,147	4,980,248	(0%)
Total Liabilities	1,489,446	1,559,466	(4%)
Total Equity	3,487,701	3,420,782	2%

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Abu Dhabi Aviation’s (ADA, REMCO, ADATC, ADAIRE and ADAME) revenue for the period ended 31 December 2020 amounted to AED 636.19m compared with AED 663.05m for the same period in 2019 (4.05% decrease).

Royal Jet L.L.C. (RJ) made AED 320.09m revenue for the period ended 31 December 2020 compared with AED 661m for the same period in 2019 (51.58% decrease) . The decrease was due to covid19 impact.

Maximus Air L.L.C. (MAX) made AED 602.23m revenue for the period ended 31 December 2020 compared with AED 757.66m for the same period in 2019 (20.52% decrease) . The decrease was due to less logistics and charter sales.

Dividend Payment:

2019 – 20% 2020 – 10%

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Human Development

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Social Development

ALWATHBA COMMUNITY CYCLING SPONSORED BY ABU DHABI AVIATION

Abu Dhabi Aviation acknowledges the important role of sports within a society, and is interested in spreading sport awareness amongst individuals.

As part of it’s corporate social responsibility, Abu Dhabi Aviation sponsors Al Wathba Community Cycling Team with the aim of contributing to achieving community development and creating a healthy and active society that will have a sustainable positive impact in developing societal performances.

Al Wathba team is known for it’s continuous development, and it added triathlon to cycling.

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Social Development

ALAIN COMMUNITY CYCLING RACE SPONSORED BY ABU DHABI AVIATION

Abu Dhabi Aviation sponsored Alain community cycling race this week with more than 150 contestants participating from wadi adventure to the top of jebel hafeet in Alain.

ABU DHABI AVIATION PARTICIPATED IN ABU DHABI DESERT RALLY

Abu Dhabi Aviation is on pace with technological and cultural development, but it supports heritage and never forgets its roots.

ADA is always present in events that show the UAE’s heritage and culture such as, Abu Dhabi Desert Rally.

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Social Development

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Abu Dhabi Aviation launched helicopter messages to spread Covid-19 Awareness by having a helicopter fly across all the emirates displaying messages in Arabic and English urging community members to stay at home, maintain social distancing and avoid gatherings.

The initiative is part of Abu Dhabi Aviation’s effort to support the UAE’s measures to combat coronavirus, keep people safe, protect their health and join the global effort to prevent the spread of Covid19.

The initiative targets all groups of society and urges them to take precautions to prevent the disease from spreading.

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An important and special service given by Abu Dhabi Aviation (ADA) – is air ambulance, in cooperation with our strategic partner national ambulance, to move cases of COVID-19 positive from offshore to onshore.

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Environmental Development

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WASTE MANAGEMENT PROGRAM

ADA Implements a structured Waste Management Program as per UAE and Abu Dhabi Emirate regulatory requirements, particularly, the UAE Federal Law (24), Abu Dhabi Law (21) and OSHAD SF. The Company’s Waste Management Plan is approved and regulated by the Abu Dhabi Waste Management Center. ADA’s Waste Management Policy is based on following priority order of action:

Reduce: Through purchasing policy, operational activity and by raising awareness.

Re-use: Before discarding items, take action to re-use in the first instance within the Company and if this is not applicable, with external organizations or nominated contractors.

Recycle: Where opportunities exist and where regulations apply, waste recycling is encouraged and implemented to minimize the amounts of waste destined for landfill.

Treatment: Where waste are sent for treatment to render safe or reduce hazardous properties prior to recycling or disposal, the Company ensure that segregation, storage, handling, transport and treatment processes comply with legislation.

Disposal: Where the production of waste is unavoidable, the Company ensures that segregation, storage, handling, transport and disposal processes comply with legislation.

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Environmental Development

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ADA achieves IS-BAO Stage 3 – the highest ranking for safe operations from IBAC

In October 2020, ADA achieved the highest ranking for safe operations from IS-BAO, earning Stage 3 Certification from the International Business Aviation Council (IBAC). This recognition validates the relentless commitment and strong leadership that ADA is taking to maintain and exceed the highest international standards for safety, operational excellence, efficiency and professionalism in the aviation industry.

IS-BAO is a code of standards and best practices designed to assist and evaluate operators worldwide. The Stage 3 certification is an upgrade to ADA’s IS-BAO Stage 1 (2016) and ISBAO Stage 2 (2018) awards, and verifies achievement of safety standard milestones. ADA is the only helicopter operator in the UAE that currently holds this prestigious distinction.

This accolade validates ADA’s status among the elite aviation operators not only in the Middle East but in the world. It provides peace of mind for our various stakeholders who trust us for the safety of their passengers and assets , whether offshore, HEMS, VVIP or maintenance support.

Certification for the award requires a comprehensive audit and stringent assessment of safety-related operational processes and management systems, including the company’s SMS, personnel training, compliance monitoring, and documented records of Flight Operation and Airworthiness.

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Environmental Development

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GCAA SMS Effectiveness Assessment 2020

DOT and OSHAD Compliance Audit 2020

Following a meticulous pre-audit preparation period (April – June) and a rigorous assessment by the GCAA for a period of four weeks (July), the GCAA inspectors have assessed ADA’s SMS (CAR Part X) as “Effective”. An effective SMS means that our Safety processes are not just documented, compliant and – suitable for our types of operation our SMS processes have been assesses as mature, achieving the desired outcomes, an having a positive impact on our business.

Because of this GCAA’s score (and confidence placed upon us), ADA will be exempted from the Authority’s annual SMS Audit. ADA’s SMS will now be audited on a 2-year basis (our next audit will be rescheduled in summer 2022).

To maintain this positive status, implementation of internal – routine oversight programs will be carried out such as compliance audits, occurrence investigations, safety culture program, incident reporting, SPIs/SPOs, data analysis, risk management, MOC and other SMS processes.

The Abu Dhabi Department of Transport (Sector Regulatory Authority for Aviation) has successfully completed its Compliance Audit in October as part of maintaining the Company’s OSHAD Accreditation. DOT highlighted various positive observations in their report, as follows:

• Verified Risk register, for all activities are identified in the risk assessment. Risk of COVID-19 has been identified as a hazard and control measures identified.

• Emergency Response Plan Management and role-specific checklists.

• OSH part of the recurrent training every two years.

• • Use of electronic internal tool SMS Pro for incidents and compliance monitoring.

• ADA showed continuous communication and consultation between the applicable regulatory authorities and the customers.

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Environmental Development

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Risk-based, process-focused and coordinated approach to COVID-19 pandemic

Introduction of “ASAP” Safety Strategic Plan 20202022

Risk-based planning and mitigation.

ADA’s management approach is based on the UAE GCAA SMS Model using our Risk Assessment and Change Management Tools. Our mitigations and corrective actions are tailor-made to suit every situation and customer needs. In this scenario there is no “one size fits all” solution.

Process specific actions and controls.

Process Owners identify their specific operational risks, and implement change management when necessary. Business Continuity Plans are developed to ensure ongoing delivery of aviation services. We implement remedial actions throughout the various phases of pandemic suitable to specific operational activities, and areas of business within the Company.

Up-to-date and coordinated response.

Our actions are regularly reviewed in line with governmental instructions and customer needs to ensure they remain current. Our management plan is constantly reviewed and updated to meet constantly changing conditions and needs.

In line with the role of ICAO and the UAE GCAA of providing an industry roadmap as a frame of reference to reduce risks of accidents, the “Abu Dhabi Aviation Safety Actions and Priorities” or “ASAP” was developed to align the Company efforts with the boarder industry Safety initiatives.

Presented to the ADA Senior Management during the Company Safety Review Board (SRB) Meeting in July 2019, ASAP 2020-2022 is the organizational Safety roadmap, which serves as a strategic action plan to assist the Company in achieving its goals through a structured and common framework for management, staff and all relevant stakeholders. ASAP 2020-2022 presents a strategic direction for the management of Aviation Safety for a set period and developed in line with international and national goals, targets and high-risk categories of occurrences (HRCs). It represents the strategy which supports the prioritization and continuous improvement of the Company Safety Management System (SMS) as per GCAA CAR Part X.

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T: +971 2 575 8000 F: +971 2 575 7775 info@ada.ae www.ada.ae P.O. Box 2723 Abu Dhabi, UAE