Annual Report 2019

Dear Shareholder, I am pleased to report that your Group has delivered a commendable performance during the financial year 2018/2019 with a Group PAT of MUR 382.7m (2018: MUR 352.1m after discontinued activities). Our finance segment has registered growth of 22% and 14% net operating income and PAT respectively, as compared to last year, and the asset book has increased by 22%, which puts us on the right track for continued growth in the future. Achievements Looking back on the year, the process of making CIM Financial Services Ltd (CFSL) a simpler, more focused business was partly achieved with the successful listing of Lavastone Ltd (formerly Cim Property Development Ltd) on the Development and Enterprise Market (‘DEM’) by the end of last year. I am pleased to report that shareholders have been able to freely trade their shares in Lavastone since 14 January 2019, as an example of the additional value that we seek to bring to our shareholders. Since then, we have focused our efforts on taking steps to consolidate our position in the consumer finance domain, given that we continue to be the leader in the hire purchase sector in Mauritius, as well as the second largest player in the leasing market, further to the acquisition of Mauritius Eagle Leasing Co Limited (MELCO) from IBL in August 2018. Cim Finance is now focusing its development plans on the respective core businesses, namely consumer finance, cards and payment, leasing and factoring activities. In the light of the changes which the Group has undergone in recent years, the Board of CFSL has sought to simplify the structure of the Group, to reduce Board duplication and costs, while increasing efficiency. We are confident that this will be achieved through the imminent amalgamation of Cim Finance Ltd, Cim Agencies Ltd, Mauritius Eagle Leasing Company Limited, Cim Management Services Ltd and Cim Shared Services Ltd with and into CFSL. In terms of reinforcing our operations, we have also successfully relocated our head office to the Manhattan Building in EdithCavell Street, whichnowgives usmuchnicer facilities which will enable nicer communication between the employees and this will improve the team cohesion. Chairman’s Message CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 12