CAHYA MATA SARAWAK ANNUAL REPORT 2016

www.cmsb .com.my Section 03 P E R F O RMAN C E 2 0 1 6 Cahya Mata Sarawak Berhad 34 1,663km-long Pan Borneo Highway as a key step towards boosting investment in the State. As we ramp up the pace of development in relation to our Kuching land banks and the Samalaju permanent township, our role in township and property development too is set to strengthen. The Group aims to ride the Sarawak growth story through our involvement in the energy-intensive industry investments in SCORE, as well as through the provision of infrastructure, construction materials and related services across the State. Our investment in SACOFA, which also ties in with our strategies, bodes well for us. STRATEGIES FOR SUCCESS Even as we have set out to secure sustainable business growth these last few years, we have been guided by the Group’s two business blueprints, namely the strategies under our Nine-Point Scorecard and our ROAR V.2 Strategy , both of which have helped us maintain our good growth momentum. The strategies under our Nine-Point Scorecard have certainly helped us maintain our good growth momentum. Their value was very evident in 2016 when we continued to leverage on them to guide us through the year’s challenges. We will continue to look to them to fuel growth and ensure we deliver a consistent, robust performance. Our nine strategies advocate that we maintain solid and sustainable profits; uphold prudent financial policies to ensure a strong balance sheet; and ensure an experienced and professional management team in steering CMS forward. We are also called to implement strong corporate governance measures, strengthen ties and build respect among the communities that we serve, as well as garner strong support from our shareholders and bankers. Finally, we are to focus our efforts on private sector- driven profitability; leverage on a strong SCORE play; and develop, for future use, an expertise which will take us beyond Sarawak’s shores. OUR 9-POINT SCORECARD We also have in place our ROAR V.2 Strategy , which we introduced in 2012, following the success of the first ROAR Strategy introduced in late 2006. Standing for Restructure, Organise, Advance and Roar, this Strategy continues to play a key role in ensuring we deliver a proven flow of sustainable profits from a portfolio of synergised businesses. In the case of ROAR V.2 , it sets out a set of challenging milestones and timelines for CMS to advance to even greater heights based on our current strategies and strengths from 2012 through to 2017. Even as 2017 marks the start of the final phase of our ROAR V.2 Strategy , we are confident that as we stick to our proven strategies while adapting to market conditions, we will continue to deliver significant sustainable and transformational profits growth. Our aspiration in all this is to become a Top 30 Company in Malaysia with RM10.00 billion in market capitalisation. SOLID & SUSTAINABLE PROFITS EXPERIENCED MANAGEMENT TEAM STRONG BALANCE SHEET & FINANCIALLY PRUDENT SUPPORTIVE SHAREHOLDERS & BANKERS CORPORATE GOVERNANCE GROWING COMMUNITY RESPECT PRIVATE SECTOR DRIVEN PROFITABILITY GROWING OF EXPORTABLE EXPERTISE SCORE PLAY MANAGement DISCUSSION AND ANALYSIS