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 35 Cahya Mata Sarawak Berhad In 2016, we rolled out a third strategy - the Edging Strategy – to complement our existing initiatives, as well as to counter sluggish market conditions, the lack of large scale greenfield opportunities and operating constraints. This Strategy calls for us to maximise opportunities on the “edges” of our current businesses to create significant growth. Often overlooked by companies, businesses in the “near field of vision” or on the “edge” of a company’s range of focus, often carry opportunities for success with lower risks than a Blue Ocean Strategy or a greenfield expansion. In line with our efforts to in this area, senior management in all our core Divisions, with the exception of our Samalaju Development and ICT Divisions, have incorporated an Edging Strategy into their management plans and budgets for 2017. As we go about our business, we recognise that we need to stand out from other businesses, while remaining relevant to our diverse stakeholders. To this end, CMS is focusing its efforts on becoming an Extraordinary Organisation where we will leverage on four criteria to set ourselves apart from others in the business world. These include demonstrating sustainable high performance; building up a unified workforce where our engaged employees outperform; making sure we work for and are respected by multiple stakeholders; and last but not least, to ensure that we are home to a “Moral Community”. The last criteria advocates the setting up of a workplace environment with an abundance of moral values, loyalty, common purpose, empathy, team spirit and a sense of fairness. As CMS works towards becoming an Extraordinary Organisation , we will look to our PRIDE Mission Statement to keep us on track. We will also tap into several other proven elements to advance forward. We will continue leverage on the good synergies between our core Business Divisions, which are generating the bulk of the Group’s revenue and earnings and are all set to grow in tandem with Sarawak’s own growth story. At the same time, we will ensure we maintain a diversified earnings base so that we have a wider spread of income and profits outside of our cement business, thereby significantly reducing our risks. Helming all these efforts will be our experienced and professional workforce. We are indeed very fortunate to have a dynamic management team and dedicated employees who not only have a keen understanding of how best to leverage our diverse strategies and initiatives, but have shown great resilience in weathering the storms over the years to deliver robust performances. IN APPRECIATION Forty-two years’ on and CMS continues to be recognised as one of Sarawak’s leading infrastructure facilitators. Our success comes on the back of the steadfast support of many parties. On behalf of the Board of Directors, I wish to convey my sincere gratitude to our valued customers, suppliers, business partners, the Federal and State Governments and agencies, as well as our joint venture partners and associate companies. Thank you for your unswerving trust and confidence in CMS, as well as for extending us your unstinting support and cooperation. My heartfelt appreciation goes to our Board of Directors for their wise counsel and astute insights which helped us keep an unwavering focus on our priorities and enabled us to surmount the year’s many challenges. To the CMS family of employees, please accept my utmost gratitude for your unswerving loyalty, diligence and commitment to excellence. Your amazing resilience and worthy efforts continue to take us from strength to strength in our journey of transformational growth and I am positive they will continue to hold us in good stead in the next phase of our journey. As CMS moves towards truly becoming the ‘PRIDE of Sarawak and Beyond’, we call upon all our stakeholders to continue lending us their staunch support. Thank you. Yours sincerely, DATO’ RICHARD CURTIS Group Managing Director 14 March 2017 MANAGement DISCUSSION AND ANALYSIS