CSE Global Limited · SGX:544
CSE Global — Q3 2018 Earnings Presentation
28 slides from CSE Global's earnings presentation, Nov 8, 2018
Slide 1: 3Q & 9M2018 Results Briefing
3Q & 9M2018 Results Briefing CSE Global Limited Fullerton Hotel 8 November 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 • 3Q2018 overall a good result, markets remains cautious Positives • Gross margins are stable at around 27%. • Strong improvement in net profitability • Strong positive operating cash flow +S$25m • Stable order intake of S$81m Negatives • The lull in large greenfield projects conti
Slide 5: Business Outlook
Business Outlook Positive momentum for the rest of FY2018: • Oil & gas - steady inflow of small greenfield and brownfield for both onshore and offshore - no FID for large greenfield targeted imminent, no order expected • Infrastructure - steady inflow of small greenfield and brownfield - still worki
Slide 6: Further Information on 9M2018 Revenue
Further Information on 9M2018 Revenue Communication Australia $276.7m 4% Onshore Offshore 46% $12.2m 54% $32.9m $85.7m $101.6m 28% $77.2m 68% $187.3m Oil & Gas Infrastructure Mining & Mineral
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 • The current improvement in oil and gas and commodity prices has not translated into significant investments in large greenfield projects in the markets that we operate. Customers remain focused on cost control and cashflow generation. That notwithstanding, we continue to s
Slide 9: Financial Performance by CFO
Financial Performance by CFO 9
Slide 10: 3Q 2018 Financial Overview
3Q 2018 Financial Overview Revenue Grew by 8.0% to S$92.4m Gross Margin Increased to 27.5% from 25.1% in 3Q17, higher than FY2017 of 26.0% EBIT Rose by 35.5% to S$6.4m compared to S$4.7m in 3Q17 PATNCI Soared by 67.0% to S$5.0m from S$3.0m in 3Q17 EPS (basic) 0.99 cents per share compared to 0.58 ce
Slide 11: 9M 2018 Financial Overview
9M 2018 Financial Overview Revenue Grew by 12.6% to S$276.7m Gross Margin Increased to 27.1% from 26.5% in 9M17, higher than FY2017 of 26% EBIT Rose by 48.2% to S$19.4m compared to S$13.1m in 9M17 PATNCI Increased to S$15.0m from S$9.0m in 9M17 EPS (basic) 2.96 cents per share compared to (1.52) cen
Slide 12: 9M 2018 Financial Overview: Financial Position & Cashflow
9M 2018 Financial Overview Financial Position & Cashflow Cash inflow from operations of S$24.8m in 3Q18 and S$47.4m in 9M18, mainly due to higher collections from trade receivables. Net Cash of S$34.4m at 3Q18 vs S$20.9m at 1H18 vs S$15.5m at 4Q17. Equity attributable to owners of the Company
Slide 13: Summary Financials 3Q/9M 2018 vs 2017
Summary Financials 3Q/9M 2018 vs 2017 S$’m 3Q 2018 3Q 2017 Change 9M 2018 9M 2017 Change Revenue 92.4 85.6 8.0% 276.7 245.6 12.6% Gross Profit 25.4 21.5 18.1% 74.9 65.2 14.9% Operating expenses 18.9 20.2 -6.6% 57.1 56.3 1.3% Operating profit 6.5 1.3 410.4% 17.8 8.8 101.6% EBIT 6.4 4.7 35.5% 19.4 13.
Slide 14: 3Q & 9M 2018 FX Movement
3Q & 9M 2018 FX Movement Variance Variance 3Q 2018 3Q 2017 9M 2018 9M 2017 (%) (%) USD/SGD: 1.3656 1.3652 0.03% 1.3384 1.3949 -4.05% GBP/SGD: 1.7862 1.7735 0.72% 1.8136 1.7720 2.35% AUD/SGD: 1.0031 1.0746 -6.66% 1.0179 1.0631 -4.25% 14
Slide 15: 3Q & 9M 2018 Constant Currency
3Q & 9M 2018 Constant Currency 3Q 2018 S$M 3Q 2018 3Q 2017 Variance (%) Constant Variance (%) Currency Revenue: 92.4 85.6 8.0% 96.6 12.9% PATMI: 5.0 3.0 67.0% 5.1 71.0% 9M 2018 S$M 9M 2018 9M 2017 Variance (%) Constant Variance (%) Currency Revenue: 276.7 245.6 12.6% 287.5 17.1% PATMI: 15.0 9.0 67.0
Slide 16: Revenue by Geographical Region – 9M 2018
Revenue by Geographical Region – 9M 2018 S$'m 9M 2018 9M 2017 Var % Americas 176.4 132.0 33.6% EMEA 6.8 18.7 -63.6% Asia Pacific 93.4 94.9 -1.5% Total 276.7 245.6 12.6% 9M 2018 9M 2017 34% Americas 39% Americas EMEA EMEA 54% Asia Pacific Asia Pacific 64% 2% 7% 16
Slide 17: EBIT by Geographical Region – 9M 2018
EBIT by Geographical Region – 9M 2018 S$'m 9M 2018 9M 2017 Var % Americas 11.3 0.3 3365.5% EMEA (2.9) (2.1) -39.0% Asia Pacific 11.1 14.9 -25.7% Total 19.4 13.1 48.2% 16.0 14.9 14.0 12.0 11.3 11.1 10.0 8.0 6.0 9M 2018 9M 2017 4.0 2.0 0.3 0.0 (2.0) (2.9) (2.1) (4.0) Americas EMEA Asia Pacific 17
Slide 18: Revenue by Industry – 9M 2018
Revenue by Industry – 9M 2018 S$'m 9M 2018 9M 2017 Var % Oil & Gas 187.3 166.1 12.8% Infrastructure 77.2 65.7 17.5% Mining & Mineral 12.2 13.8 -11.9% Total 276.7 245.6 12.6% 9M 2018 9M 2017 4% 6% 28% 27% Oil & Gas Oil & Gas Infrastructure Infrastructure Mining & Mineral Mining & Mineral 67% 68% Infr
Slide 19: EBIT by Industry – 9M 2018
EBIT by Industry – 9M 2018 S$'m 9M 2018 9M 2017 Var % Oil & Gas 9.0 2.3 289.6% Infrastructure 10.7 9.9 8.5% Mining & Mineral -0.2 0.9 -124.5% Total 19.4 13.1 48.2% 9M 2018 9M 2017 -1% 7% 18% Oil & Gas Oil & Gas 45% Infrastructure Infrastructure 54% Mining & Mineral Mining & Mineral 75% Infrastructur
Slide 20: Revenue by Geographical Region – Qtrly Trends
Revenue by Geographical Region – Qtrly Trends S$'m Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Americas 55.8 58.6 62.1 74.2 53.9 40.9 37.2 EMEA 2.5 2.9 1.4 4.8 1.6 8.3 8.8 Asia Pacific 34.1 30.7 28.7 37.8 30.1 36.3 28.5 Total 92.4 92.1 92.2 116.7 85.6 85.5 74.5 20
Slide 21: Revenue by Industry – Qtrly Trends
Revenue by Industry – Qtrly Trends S$'m Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Oil & Gas 58.9 62.5 65.9 80.1 59.4 53.2 53.5 Infrastructure 27.6 26.0 23.7 24.7 23.4 23.3 19.1 Mining & Mineral 5.9 3.7 2.6 11.9 2.7 9.1 2.0 Total 92.4 92.1 92.2 116.7 85.6 85.5 74.5 21
Slide 22: FY 2018/17 Group Balance Sheet
FY 2018/17 Group Balance Sheet S$M 30-Sep-18 31-Dec-17 Cash at Hand & Bank 56.1 46.9 Quoted Investments 1.3 1.3 Work in Progress (Net) 24.7 51.9 Inventories 17.5 14.6 Trade Receivable 64.8 73.5 Other Receivable 17.1 17.1 Trade Payable 49.6 60.8 Net Current Assets 106.5 111.9 Loan 21.7 31.4 Net Cash/
Slide 23: 3Q & 9M 2018 Group Cash Flow Statement
3Q & 9M 2018 Group Cash Flow Statement S$'m Q3 2018 Q3 2017 9M 2018 9M 2017 As at beginning of the period 54.1 53.9 46.9 90.8 Net Operations 24.8 6.2 47.4 0.5 Interest and tax expenses 0.3 (1.4) (4.9) (4.9) Exceptional settlement - (16.6) - (16.6) Capital Expenditure (Net) (3.0) (1.3) (4.9) (6.7) Qu
Slide 24: 3Q/ FY 2018 Orders
3Q/ FY 2018 Orders New orders Outstanding orders $239.0m $381.9m $136.5m $148.8m $207.6m 86.9 16.1 4Q 86.4 3Q 86.9 2Q 80.9 EMEA 17.3 14.7 1Q 90.7 The Americas Asia Pacific 49.7 54.9 89.1 117.9 104.5 68.9 72.1 76.6 FY 2018 FY 2017 3Q 2018 2Q 2018 3Q 2017
Slide 25: Order Intake by Industry
Order Intake by Industry S$'M Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Oil & Gas 52.6 60.5 49.5 59.1 54.8 57.8 86.4 Infrastructure 25.2 24.2 16.3 21.2 27.6 27.0 29.0 Mining 3.1 4.4 3.2 6.5 4.0 6.0 2.4 Total 80.9 89.1 69.0 86.9 86.4 90.7 117.9 25
Slide 26: Backlog by Industry
Backlog by Industry S$'M Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Oil & Gas 54.2 60.4 60.3 78.2 101.0 106.9 103.1 Infrastructure 79.7 82.9 83.5 92.3 96.6 92.4 89.2 Mining 2.6 5.4 4.8 4.4 10.0 8.7 11.9 Total 136.5 148.8 148.6 175.0 207.6 207.9 204.2 26
Slide 27: Human Resource
Human Resource 3Q 2018 2Q 2018 3Q 2017 The America 691 716 633 EMEA Asia Pacific 397 432 402 1,127 1,158 1,106 27
Slide 28: Q&A Thank You
Q&A Thank You Questions & Answers 28