ADNOC Classification: Public AI & futureproofing of business I/ Technology As a core part of its growth strategy, ADNOC Distribution is leveraging advanced technologies, such as Artificial Intelligence, to enhance customer experience. AI-driven initiatives such as Fill and Go – which uses computer vision-enabled license plate recognition for a seamless refuelling process – are differentiating ADNOC Distribution’s offering while positioning the Company as a leader in innovation within the industry. Using innovative Fuel Demand AI Model, we employ predictive demand analytics to optimize fuel delivery across our network. The model offers fuel forecast accuracy exceeding 95%, far surpassing conventional methods averaging 60%, resulting in reduced total fuel inventory runout, and is expected to prevent potential lost sales totalling AED 125 million in a five-year period. Additionally, with the improved fuel demand forecast accuracy the Company’s supply chain fleet reduced total fuel truck emissions by 10% through improved delivery timing efficiencies, supporting ADNOC Distribution’s objective of reducing carbon emissions intensity by 25% by 2030. II/ Rollout of Electric Vehicles (EV) charging points ADNOC Distribution is committed to futureproofing its business through a disciplined rollout of profitable fast and super-fast EV charging points. The chargers are installed across the Company’s service stations and dedicated mobility hubs at strategic locations in the UAE to address current EV customer demand and offer enhanced customer value proposition. ADNOC Distribution has made significant progress in expanding its network of EV charging points across the UAE, as part of its strategy to meet the growing demand for e-mobility solutions. As of end of H1 2024, the Company had more than 100 EV charging points, doubling this number from the end of last year. The network offers fast and super-fast EV charging options, covering key highways and urban areas. ADNOC Distribution aims to further increase its network to 150-200 EV charging points by the end of 2024, cementing its position as a leader in the EV charging market. Sustainability I/ Decarbonization roadmap ADNOC Distribution plans to expand its sustainability-driven efforts to futureproof its business. In January 2023, the Company unveiled its Decarbonization roadmap, committing to a reduction of carbon intensity of its operations by 25% by 2030. The Decarbonization roadmap covers Scope 1 emissions which come directly from the Company’s operations, and Scope 2 carbon emissions which come from the energy ADNOC Distribution uses to run its operations. The Company aims to cut emissions through a set of identified initiatives that will be implemented in 2024 and beyond, such as installing solar panels at service stations, use of biofuels to power its fleet of vehicles and other energy optimization initiatives. ADNOC Distribution also aims to utilize ‘green concrete’, that is eco-friendly and has a smaller carbon footprint than traditional concrete, in the construction of new service stations. ADNOC Distribution started installation of solar panels across its service stations network in Dubai, as part of the Company’s phased approach to UAE-wide solar rollout to provide the power needed for daily operations, and already installed them at 31 stations. Additionally, 100% of the Company’s UAE heavy fleet is now using biofuel. In 2023, ADNOC Distribution started operation of the region’s first high-speed green hydrogen pilot refuelling station opened by ADNOC, to test a fleet of zero-emission hydrogen-powered vehicles. The station creates green hydrogen from water using an electrolyser powered by clean grid electricity and will be certified as “green” from solar sources by the International REC Standard, an internationally recognized certification organization. The pilot will be used to gather data to understand the long-term viability of hydrogen vehicles in the UAE. 9 | P a g e
Second Quarter and First Half 2024 Results Page 8 Page 10