Debt Investor Presentation May 2020 Disclaimer Comparative figures - PowerPoint PPT Presentation

Debt Investor Presentation May 2020

Disclaimer Comparative figures have been reclassified where appropriate to conform to the presentation and accounting policies adopted in the consolidated financial statements. The information contained herein has been prepared by First Abu Dhabi Bank P.J.S.C (“FAB”) . FAB relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. This presentation has been prepared for information purposes only and is not and does not form part of any offer for sale or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of FAB. These forward-looking statements include all matters that are not historical facts. The inclusion of such forward- looking information shall not be regarded as a representation by FAB or any other person that the objectives or plans of FAB will be achieved. FAB undertakes no obligation to publicly update or publicly revise any forward-looking statement, whether as a result of new information, future events or otherwise. Please note that rounding differences may appear throughout the presentation. 2

Economic and banking sector review

UAE economic overview ~ 10.4 Mn people (2018e) 1 A cosmopolitan country Expatriates ~ 85 % UAE 2 nd largest economy in GCC USD 414 Bn 2018e Nominal GDP 1 (30 th largest in the world) USD 39,709 GDP per capita 6 th largest proven oil ~ 98 Bn boe (~ 8 % of global oil reserves ) 2 reserves ~3.0Mn barrels/day (2018 crude oil production) One of the highest rated Aa2 (Moody’s) UAE federation established in 1971 comprising 7 Emirates sovereigns One of the 6 GCC (Gulf Cooperation Council) states Real GDP Growth 3 3.3% • The UAE’s policy response to the COVID -19 pandemic 1.7% 1.3% 0.5% was proactive and decisive in the form of fiscal and GDP growth expectations monetary stimulus packages, including a AED 256Bn -3.5% (USD 69.7Bn) stimulus plan launched by the UAE 2017 2018 2019e 2020f 2021f Central Bank (more details on slide #8) • According to the IMF, UAE real GDP is expected to contract by 3.5% in 2020 before rebounding 3.3% in 16 th 74% 2021 as the COVID-19 situation is expected to Diversified & competitive ease of doing non-oil sector normalise and lead to a strong recovery in key economy business rankings, contribution 11 th in 2019 6 economic sectors including transportation, logistics, to nominal GDP 5 tourism and hospitality 1 IMF World Economic Outlook - October 2019 2 OPEC Annual Statistical Bulletin 2019; boe (barrel of oil equivalent) 3 IMF World Economic Outlook – April 2020 4 WAM (Emirates News Agency) 4 5 Federal Competitiveness and Statistics Authority, 2018 Nominal GDP 6 World Bank’s Ease of Doing Business Rankings 2020

Abu Dhabi - the capital Highest sovereign ratings in Aa2 / AA / AA 87% of UAE land area 4 MENA Moody’s / S&P / Fitch Ras al Khaimah Estimated population 4 : 2.9 Mn Ajman Umm al Quwain Sharjah Dubai Ajman Fujairah Abu Dhabi USD 249 Bn 2019e Nominal GDP 1 Dubai Major contributor to UAE GDP 61% of UAE’s 2018 Nominal GDP 2 nd highest GDP per capita USD 85,684 2 in the world AA credit rating was reaffirmed by S&P on 26 March 2020 with a stable outlook: Extract from S&P report: “Abu Dhabi's net asset Sovereign foreign assets – 185 % of GDP 3 Strong fiscal position position (…) alongside proactive policymaking Government debt – only 11% of GDP 3 comfortably cushions it from the sharp fall in oil prices and other external shocks .” On clear path to economic 60% non-oil sector contribution to “ The stable outlook reflects our expectation that nominal GDP 1 , up from 45% in 2013 diversification Abu Dhabi's fiscal position will remain strong over the next two years, although structural and Long term vision to transform the Emirate into a knowledge-based economy and reduce institutional weaknesses will likely persist .” its dependence on the oil sector ( 2030 Economic Vision, Ghadan 2021 ) In the context of COVID-19, Abu Dhabi announced that previously budgeted capital expenditure plans would be maintained, and that oil production would be proactively managed to stabilise oil prices and revenues 1 National Accounts (SCAD) website as of 3rd May 2019, preliminary estimates 2 After Luxembourg - IMF World Economic Outlook, October 2019; GDP per capita based on 2019e Nominal GDP, 2016 Population (SCAD) 3 Fitch Ratings (31 October 2019) 5 4 Abu Dhabi 2019 Bond Prospectus

UAE - other indicators UAE remains top FDI destination in GCC 2 A robust and diversified economy 1A 2019e Nominal GDP 2020f Fiscal Balance 1B 2019e Gross Debt (USD Bn) (USD Bn) (% GDP) (% GDP) UAE 10.4 Saudi 779 (12.6) 23.2 Arabia Oman 4.2 406 (11.1) 20.1 UAE Saudi 3.2 Arabia 192 5.2 53.2 Qatar Bahrain 1.5 Kuwait 138 (11.3) 15.2 Kuwait 0.3 Oman 77 (16.9) 59.9 Qatar (2.2) Bahrain 38 (15.7) 101.7 UAE PMI indicates a contraction in the private sector economy 3 Uptick in projects awarded, led by Govt 4 Hotel guests + occupancy - Abu Dhabi & Dubai 5 Abu Dhabi Dubai Other Emirates (USD Bn) Abu Dhabi Tourist Growth(YoY) Dubai Tourist Growth(YoY) 60 17.5% 20 9.3% 8.1% 3.7% 5.1% 55 15 7.6% 6.2% 4.7% 0.8% 2.1% (USD) 50 78% 78% 10 150 77% 76% 75% 75% 73% 72% 72% 100 73% 45 5 50 44.1 90 120 79 108 72 104 69 96 73 85 40 - 0 2015 2016 2017 2018 2019 Apr-15 Apr-16 Apr-17 Apr-18 Apr-19 Apr-20 Q1'16 Q1'17 Q1'18 Q1'19 Q1'20 • Subdued economic growth and COVID-19 push PMI • Projects awarded in Q1’20 jump 91% QoQ (based on RevPAR - Abu Dhabi (LHS) RevPAR - Dubai (LHS) Occupancy rate - Abu Dhabi (RHS) Occupancy rate - Dubai (RHS) to an all-time low value) led by Government of Abu Dhabi 1 IMF World Economic Outlook 1A - October 2019 , 1B – April 2020 4 Meed Projects, Apr 2020 2 World Investment Report 2019 - UNCTAD Federal Competitiveness and Statistics Authority 5 Abu Dhabi, Department of Culture and Tourism ; Dubai, Department of Tourism and 6 3 Markit Economics-PMI (Purchasing Manager Index), Bloomberg (Apr 2020) Commerce Marketing

UAE - other indicators (continued..) Oil Production and Price 1 2018 Nominal GDP breakdown 2 Oil Production (Mn bl/day) (LHS) Construction and Real 4.0 Brent Monthly Average (USD/bl) (RHS) 100 UAE 9% Estate 26% 3.7 USD 414Bn 40% Mining and quarrying 3.5 80 13% Manufacturing 7% Abu Dhabi 3.0 60 USD 254Bn 6% 14% Trade, Restaurants & 14% 9% Hotels 8% 2.5 40 Finance 24% 27 2.0 20 29% 3 Others • Oil production cuts from OPEC+ agreement to come into effect starting May 2020, with additional voluntary cuts of 100k bl/day from June 2020 committed by UAE Sale prices - mainstream residential market property 4 Rental prices - mainstream residential market property 4 Abu Dhabi - All Properties (YoY Change) Abu Dhabi - All Properties (YoY Change) 30% 50% Dubai - All Properties (YoY Change) Dubai - All Properties (YoY Change) 40% 20% 30% 10% 20% 10% 0% -5.2% 0% -6.8% -10% -9.2% -10% -8.8% -20% -20% Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 1 Bloomberg OPCRUAE Index 2 Federal Competitiveness and Statistics Authority 3 Others include Agriculture, Utilities, Transportation, Communication, Government and Other activities 7 4 REIDIN, UAE Monthly Report Apr 2020