Technology,
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"During 2019, the Technology, Manufacturing & Mining platform made significant progress in building its Pharma and Medtech portfolio, sealing strategic partnerships with leading global investment funds and making a number of direct investments."
Chief Executive Officer
Technology, Manufacturing & Mining
Strategy in Action
Mubadala fully realized its investment in AMD during 2019, generating net proceeds for the year of
and total proceeds of
These transactions represented the successful conclusion of Mubadala's longstanding and deep partnership with the business.
During this relationship, AMD overcame every competitor challenge it had faced in the early years of the decade through a combination of transformational leadership, the efforts of its 10,000 highly talented employees, an outstanding IP portfolio and a clearly focused product strategy. This winning combination of factors enabled AMD's superb performance as the S&P 500's best performing stock of 2019.
Under the world-class leadership of Chief Executive Officer Dr. Lisa Su and Chief Technology Officer, Mark Papermaster, AMD has relentlessly focused on the product lines that best deliver for key customers such as Google, Amazon, Microsoft, Sony and Samsung.
Strategy in Action
The TMM platform continued to develop its presence in the Pharma and Medtech sectors and deepen its relationships with some of the world's leading investment companies. Together with Nordic Capital, we established a dedicated healthcare investments vehicle to invest in leading assets in the sector. In addition to the investment made through this vehicle, we made a direct co-investment in ERT, a clinical trial technology solutions provider.
Working with GHO Capital, the number one mid-market investor dedicated to European healthcare, we co-invested in Sterling Pharma Solutions.
Sterling is a UK-based contract development & manufacturing organization, whose customers include large pharma and biotech players. The investment supports Sterling's drive into international markets, with a number of strategic bolt-on acquisitions in North America and Europe already identified.
During the year, the platform generated strong returns by monetizing a number of its public equity positions.
The platform also invested in the MVM Life Science Partners Fund V. MVM is a trans-Atlantic fund focusing on medical technology, pharmaceuticals, diagnostics and digital health.
Strategy in Action
Mubadala partnered with AMERRA Capital Management LLC to support the acquisition by Andromeda Seafood Group of majority stakes in two European fish farming companies: Nireus SA and Selonda SA.
The integrated business, with an Enterprise Value of US $635 million, will produce Sea Bass and Sea Bream, the second-largest farmed species in Europe after Salmon. It will focus on the introduction of proven farming technologies that have not been previously applied in the Mediterranean aquaculture sector.
The investment will significantly benefit from global food consumption trends.
Strategy in Action
Our Metals and Mining portfolio was further reinforced by a US $130 million strategic investment in Equinox Gold, an emerging intermediate gold producer operating in North and South America with a strong growth pipeline.
Portfolio Highlights
2019 saw GlobalFoundries fully deliver on its strategic pivot to become the world's leading specialty foundry, focusing on the most profitable market segments with clearly differentiated capabilities and IP.
The company made excellent progress in delivering its strategy, reshaping its business footprint and cost structure to further support future growth and deliver to its clients.
Portfolio Highlights
2019 saw Emirates Global Aluminium (EGA) reach a number of significant milestones as it expanded its presence within the aluminium value chain.
Commencing operations in April 2019, the US $3.3 billion Al Taweelah alumina refinery received its first bauxite imports during the year, heralded by the arrival of the largest ever bulk cargo ship to dock at Khalifa Port.
By the end of the year, the refinery had produced its first one million tons of alumina, with full ramp-up to its nameplate capacity of two million tons per year scheduled for 2020. This will meet some 40% of EGA's alumina requirements.
EGA's
Guinea Alumina Corporation (GAC) bauxite export mine also announced its first bauxite ore exports in August 2019.
With a capacity of 12m tons p.a., the company is one of the world's top five bauxite export mines. GAC makes a significant contribution to Guinea's economy, increasing the country's GDP by 5.5% and accounting for more than 3,000 direct and indirect jobs.
In March 2019, EGA broke ground on its US $270 million new state-of-the-art power block at its Jebel Ali smelter in Dubai. This highly efficient facility will reduce greenhouse gas emissions from the site by 10% and in line with the emission targets set out in “UAE Vision 2021,” will reduce NOx emissions by 58%.
Chief Executive Officer
Technology, Manufacturing & Mining
2019 was a standout year for the Technology, Manufacturing & Mining (TMM) platform, as it delivered a very strong financial performance, reinforced the global industry leadership positions of its key assets and established its presence in new high-return business sectors.
The year saw the successful conclusion of the partnership between Mubadala and AMD, during which the company advanced from a market capitalization of US $2.9 billion at the end of 2013 to US $53 billion by the close of 2019.
Total proceeds for Mubadala from its investment in AMD were US $4.3 billion.
GlobalFoundries delivered on its strategic pivot to become the world's leading specialty semiconductor manufacturer and generated outstanding financial performance. In the Pharma and Medtech sectors, monetizations of the platform's holdings in a number of its public equity positions realized strong returns.
Emirates Global Aluminium consolidated its position as the world's third-largest producer of primary aluminium outside China by achieving full vertical integration across the aluminium supply chain. Al Taweelah alumina refinery started operations in April and the company's bauxite mine in Guinea commenced production in August. These achievements further strengthened EGA's stature as the biggest industrial company in the UAE outside the oil and gas industries.
In the Agribusiness sector, the European Commission approved the acquisitions by Andromeda Seafood Group to create a new European market leader for Sea Bass and Sea Bream farming. The company will apply proven global technologies to revolutionize both the productive efficiency and customer service standards of Mediterranean aquaculture.
During 2019, the platform made significant progress in building its Pharma and Medtech portfolio, sealing strategic partnerships with leading global investment funds and making a number of direct investments including in Sterling Pharma Solutions and ERT. TMM also made its first investments in the US consumer sector - a sector that represents 70% of total US GDP.
Beyond all of these achievements, the defining quality of 2019 for the TMM platform was the way all of its people worked in alignment with Mubadala's values. Our team members took full accountability when developing businesses in challenging international markets; showed inspiration and passion when applying business transformation strategies and repeatedly demonstrated their personal integrity while building resilient partnerships with many of the world's leading businesses and investors.
