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 17 Cahya Mata Sarawak Berhad The Group also recorded losses of RM35.17 million in FY 2016 from the share of results at its associates. This was largely due to the losses reported by the Group’s 25% associate, OM Materials (Sarawak) Sdn Bhd in 1H2016, as a result of exceptionally low commodity prices, low demand and currency hedging losses. The results improved in 2H2016 with CMS recording a profit of RM13.73 million from the share of results of its associates. Our performance level, going forward, is expected to steadily improve. As at the year end, our balance sheet remained in a comfortable position with a relatively lower ratio of gearing (0.11 times) compared to many other public-listed companies. For FY 2017, we have approved RM285.00 million in capital expenditure (CAPEX) for certain projects as part of our expansion plans. These projects include an unloader crane for CMS Cement (Bintulu) and plant expansion relating to clinker production at the limestone, sandstone and shale quarries. A certain amount of CAPEX has also been earmarked for a second line for one of our quarries along with the associated machinery; plus for new asphaltic bitumen batch plants in anticipation of demand for asphalt from the Pan Borneo Highway project when it takes off. CMS remains fully committed to investing in all required CAPEX to maintain our growth trajectory and to take advantage of opportunities arising from the State’s development plan including the Pan Borneo Highway project. TOTAL REVENUE FY 2016 RM 1.55 billion PROFIT BEFORE TAX FY 2016 RM 302.14 million STRATEGIC INVESTMENTS – LISTED ASSOCIATES STRATEGIC INVESTMENTS – OTHERS CEMENT DIVISION CONSTRUCTION MATERIALS & TRADING DIVISION CONSTRUCTION & ROAD MAINTENANCE DIVISION PROPERTY DEVELOPMENT DIVISION STRATEGIC INVESTMENTS – UNLISTED ASSOCIATES