CAHYA MATA SARAWAK ANNUAL REPORT 2016

A N N U A L R E P O R T 2 0 1 6 Section 03 P E R F O RMA N C E 2 0 1 6 15 Cahya Mata Sarawak Berhad On top of this, we are privileged to have a very dedicated Board of Directors, a professional management teamand diligent workforce who continue to step up to the plate and deliver on their commitments. These components, together with a healthy balance sheet, sustainable profits, robust corporate governance practices and keen local insights, are paving a pathway for CMS’ sustainable growth. Our growth momentum is also being spurred by the many opportunities, particularly the energy-intensive opportunities under the Sarawak Corridor of Renewable Energy (SCORE). While Sarawak experienced a slowdown in the construction sector in 2016, we believe that given the host of infrastructure projects and related services required across the State in the long-run, things will pick up again. This augurs well for our ambition of tapping into solid and long-term sustainable profits as we maximise our participation in the Sarawak growth story. In light of these developments, CMS, undoubtedly remains one of the best proxy-listed investments for Sarawak’s dynamic growth. Moving forward, your Board is confident that CMS will continue on a sustainable growth trajectory as we position ourselves for long-term sustainable revenue and profitability growth. As a passionate, people- led organisation, we will endeavour to exceed the expectations and uphold the responsibilities placed on us, taking a lead on the big issues, while maintaining our legacy of financial success and sustainable growth. Going forward, your Board is confident that the Group will deliver a satisfactory performance in FY 2017. ACKNOWLEDGEMENTS As CMS presses on in its journey of sustainable growth, we want to acknowledge several parties for their worthy support. On behalf of the Board of CMS, I wish to convey my sincere gratitude to you, our shareholders, for your steadfast trust and confidence in CMS. Our utmost appreciation also goes to our valued customers and clients, bankers, government departments and agencies, vendors, suppliers and all others who have lent us their unwavering support and cooperation. We owe a debt of gratitude to the many external partners that work with or alongside us and whose support and reliability has been instrumental to our success. We wish to express our deep gratitude to the Sarawak State Government and its agencies for having the vision to develop Sarawak, as well as design and implement SCORE in such an innovative manner. Not forgetting our joint venture partner, the Sarawak Economic Development Corporation, and our co-shareholders in our Strategic Investments — we truly appreciate your kind support and cooperation and look forward to maintaining a mutually beneficial relationship with you for a long time to come. Chairman’s Statement To the Group’s over 2,500 employees, as well as the management teams of all the Group’s companies, I wish to express my heartfelt thanks for your loyalty, diligence and resilience, especially amidst the challenges of 2016. To my colleagues on the Boards of all the Group’s companies, my utmost thanks for your guidance and wise counsel that has certainly helped steer CMS and its subsidiaries forward amidst opportunistic and challenging times. At this time, I wish to take this opportunity to express our deepest appreciation to Y A Bhg General Dato’ Seri DiRaja Tan Sri (Dr.) Mohd Zahidi Bin Hj Zainuddin (Retired) who will be stepping down as a Non- Independent, Non-Executive Director of CMS at our upcoming AGM. We thank him for his invaluable contributions during his more than 11-year tenure with us and wish him every success in his future endeavours. As CMS moves forward, we ask that all our stakeholders continue to lend us their invaluable support as we work hard to get the Group back on the road to robust performance and truly establish CMS as the ‘PRIDE of Sarawak and Beyond’. Thank you. Yours sincerely, Y AM TAN SRI DATO’ SERI SYED ANWAR JAMALULLAIL Group Chairman 14 March 2017