CSE Global Limited · SGX:544
CSE Global — Q1 2018 Earnings Presentation
27 slides from CSE Global's earnings presentation, May 10, 2018
Slide 1: 1Q2018 Results Briefing
1Q2018 Results Briefing CSE Global Limited Fullerton Hotel 10 May 2018
Slide 2: Agenda
Agenda 1. Address by CEO 2. Financial Performance by CFO 3. Q&A 2
Slide 3: Address by CEO
Address by CEO CSE
Slide 4: Business Overview
Business Overview • 1Q2018 overall a good result, despite the headwinds Negatives • Low order intake of S$68.9m • Negative operating cash flow, to fund the 2 large projects Positives • Gross margins are stable at around 26-27%, showing some recovery. • Strong improvement in net profitability 4
Slide 5: 1Q2018 Revenue
1Q2018 Revenue Oil & Gas Communication Australia Q1 2018 $92.2m Onshore $13.5m Offshore 46% 3% 54% $30.5m $2.6m $35.4m 26% $23.7m 71% $65.9m Mining & Mineral Infrastructure Oil & Gas
Slide 6: Key activities
Key activities Build on the positive momentum Continue to strengthen • Singapore Government business • Energy solution and services business in Australia • Deep water business in USA Continue to build • Radio business in Australia • Onshore business in USA Continue to remodel restructure • Tel
Slide 7: Plan Going Forward
Plan Going Forward Generate cash Cost control Continue to focus on building small greenfield projects and brownfield projects Continue to work on opportunities in large greenfield projects Build the footprint in Americas and Australia through acquisitions and new setup 7
Slide 8: Business Outlook
Business Outlook Summary • Conditions in the industry sectors which the Group operates remain challenging. Despite the improved oil and gas and commodity prices, our customers remain highly focused on cost control and cash flow generation. • The Group will continue to support and service its existin
Slide 9: Financial Performance by CFO
Financial Performance by CFO 9
Slide 10: 1Q 2018 Financial Overview Continuing Operations
1Q 2018 Financial Overview Continuing Operations Revenue Grew by 23.7% to S$92.2m Gross Margin Decreased to 26.8% from 29.2% in 1Q17, higher than FY2017 of 26% EBIT Increased by 90.2% to S$7.8m compared to S$4.1m in 1Q17 PATNCI Increased to S$5.7m from S$3.0m in 1Q17 EPS 1.11 cents per share compare
Slide 11: 1Q 2018 Financial Overview: Financial Position & Cashflow
1Q 2018 Financial Overview Continuing Operations Financial Position & Cashflow Cash outflow from operations of S$5.3m in 1Q18, mainly from increased work-in- progress and payments of accounts payables brought forward from FY2017. Net Cash of S$5.0m at 1Q18 vs S$15.5m at 4Q17. Equity attributab
Slide 12: Summary Financials 1Q 2018
Summary Financials 1Q 2018 S$’m 1Q 2018 1Q 2017 Change Revenue 92.2 74.5 23.7% Gross Profit 24.7 21.7 13.7% Operating expenses 18.4 18.0 2.1% Operating profit 6.3 3.7 69.2% EBIT 7.8 4.1 90.2% Profit attributable to shareholders 5.7 3.0 90.0% Gross margin (%) 26.8% 29.2% -2.4pp EBIT margin (%) 8.5% 5
Slide 13: 1Q 2018 FX Movement
1Q 2018 FX Movement 1Q 2018 1Q 2017 Variance (%) USD/SGD: 1.3234 1.4265 -7.22% GBP/SGD: 1.8274 1.7703 3.22% AUD/SGD: 1.0455 1.0662 -1.94% 13
Slide 14: 1Q 2018 Constant Currency
1Q 2018 Constant Currency 1Q 2018 S$M 1Q 2018 1Q 2017 Variance (%) Constant Variance (%) Currency Revenue: 92.2 74.5 23.7% 97.5 30.8% PATMI: 5.7 3.0 90.0% 5.9 96.8% 14
Slide 15: Revenue by Geographical Region – 1Q 2018
Revenue by Geographical Region – 1Q 2018 S$'m Q1 2018 Q1 2017 Var % Americas 62.1 37.2 66.7% EMEA 1.4 8.8 -84.1% Asia Pacific 28.7 28.5 0.7% Total 92.2 74.5 23.7% Q1 2018 Q1 2017 31% 38% Americas Americas 50% EMEA EMEA Asia Pacific Asia Pacific 67% 2% 12% 15
Slide 16: EBIT by Geographical Region – 1Q 2018
EBIT by Geographical Region – 1Q 2018 S$'m Q1 2018 Q1 2017 Var % Americas 3.8 (0.0) N.M. EMEA (0.9) 0.3 N.M. Asia Pacific 4.9 3.8 28.7% Total 7.8 4.1 90.2% EBIT by Geography 6.0 5.0 4.9 3.8 3.8 4.0 3.0 2.0 Q1 2018 Q1 2017 1.0 0.3 0.0 (0.0) (1.0) (0.9) (2.0) Americas EMEA Asia Pacific 16
Slide 17: Revenue by Industry – 1Q 2018
Revenue by Industry – 1Q 2018 S$'m Q1 2018 Q1 2017 Var % Mining & Mineral 2.6 2.0 31.3% Infrastructure 23.7 19.1 24.0% Oil & Gas 65.9 53.5 23.3% Total 92.2 74.5 23.7% Q1 2018 Q1 2017 3% 3% 26% 25% Mining & Mineral Mining & Mineral Infrastructure Infrastructure Oil & Gas Oil & Gas 71% 72% Infrastruct
Slide 18: EBIT by Industry –1Q 2018
EBIT by Industry –1Q 2018 S$'m Q1 2018 Q1 2017 Var % Mining & Mineral 0.2 0.1 122.4% Infrastructure 3.6 2.6 38.9% Oil & Gas 4.0 1.4 178.9% Total 7.8 4.1 90.2% Q1 2018 Q1 2017 3% 3% 35% Mining & Mineral Mining & Mineral Infrastructure Infrastructure 51% 46% Oil & Gas Oil & Gas 62% Infrastructure: Pow
Slide 19: Revenue by Geographical Region – Qtrly Trends
Revenue by Geographical Region – Qtrly Trends S$'m Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Americas 62.1 74.2 53.9 40.9 37.2 EMEA 1.4 4.8 1.6 8.3 8.8 Asia Pacific 28.7 37.8 30.1 36.3 28.5 Total 92.2 116.7 85.6 85.5 74.5 19
Slide 20: Revenue by Industry – Qtrly Trends
Revenue by Industry – Qtrly Trends S$'m Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Mining & Mineral 2.6 11.9 2.7 9.1 2.0 Infrastructure 23.7 24.7 23.4 23.3 19.1 Oil & Gas 65.9 80.1 59.4 53.2 53.5 Total 92.2 116.7 85.6 85.5 74.5 20
Slide 21: FY 2018 Group Balance Sheet
FY 2018 Group Balance Sheet S$M 31-Mar-18 31-Dec-17 30-Sep-17 30-Jun-17 31-Mar-17 Cash at Hand & Bank 43.2 46.9 47.4 53.9 75.8 Quoted Investments 1.3 1.3 1.3 9.4 9.4 Work in Progress (Net) 57.9 53.7 41.4 38.4 42.3 Inventories 13.2 14.6 18.4 19.3 16.8 Trade Receivable 75.6 77.5 85.3 92.8 81.0 Other R
Slide 22: 1Q 2018 Group Cash Flow Statement
1Q 2018 Group Cash Flow Statement S$'m Q1 2018 Q1 2017 As at beginning of the period 46.9 90.8 Net Operations (5.3) 1.6 Interest and tax (2.0) (0.4) Capital Expenditure (Net) (0.9) (3.5) Payment for subsidiary/assets acquired (1.0) (8.2) Quoted Investment - (2.1) Bank Loans 6.1 (0.5) Dividends - - N
Slide 23: 1Q/ FY 2018 Orders
1Q/ FY 2018 Orders New orders Outstanding orders $68.9m $381.9m $148.6m $175.0m $204.2m 86.9 29.1 19.3 4Q 86.4 EMEA 15.6 78.7 3Q 2Q 71.0 57.6 1Q 90.7 The Americas Asia 96.4 75.4 84.7 117.9 Pacific 68.9 FY 2018 FY 2017 1Q 2018 4Q 2017 1Q 2017
Slide 24: Order Intake by Industry
Order Intake by Industry S$'m Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Oil & Gas 49.4 59.1 54.8 57.8 86.4 Mining 3.2 6.5 4.0 6.0 2.4 Infrastructure 16.3 21.2 27.6 27.0 29.0 Total 68.9 86.9 86.4 90.7 117.9 24
Slide 25: Backlog by Industry
Backlog by Industry S$'m Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Oil & Gas 60.3 78.2 101.0 106.9 103.1 Mining 4.8 4.5 10.0 8.7 11.9 Infrastructure 83.5 92.3 96.6 92.4 89.2 Total 148.6 175.0 207.6 207.9 204.2 25
Slide 26: Human Resource
Human Resource 1Q 2018 4Q 2017 1Q 2017 The America 676 642 520 EMEA Asia Pacific 411 442 419 1,127 1,104 1,009 26
Slide 27: Q&A Thank You
Q&A Thank You Questions & Answers 27