CSE Global Limited · SGX:544
CSE Global — H1 2015 Earnings Presentation
27 slides from CSE Global's earnings presentation, Aug 13, 2015
Slide 1: 2Q/1H 2015 Results Briefing
2Q/1H 2015 Results Briefing CSE Global Limited Fullerton Hotel 13 August 2015
Slide 2: Agenda
Agenda 1. 2Q/1H 2015 Financial Overview 2. Business Overview and Outlook 3. Interim Dividend 4. Q&A 2
Slide 3: 2Q/1H 2015 Financial Review
2Q/1H 2015 Financial Review 3
Slide 4: 2Q 2015 Financial Overview
2Q 2015 Financial Overview Revenue increased by 3.8%, as compared to 2Q14 Operating PATMI of S$8.1m compared to S$8.0m in 2Q14 Gross margins decreased from 29.2% in2Q14 to 26.6% in 2Q15 PATMI of S$9.9m compared to S$8.0m in 2Q14, mainly from gain on disposal of Power Diesel of S$1.8m Opera
Slide 5: 1H 2015 Financial Overview
1H 2015 Financial Overview Revenue increased by 8.2%, as compared to 1H14 Operating PATMI of S$15.7m compared to S$15.6m in 1H14 Gross margins decreased moderately from 28.4% in 1H14 to 27.5% in 1H15 PATMI of S$17.5m compared to S$15.6m in 1H14, mainly from gain on disposal of Power Diesel o
Slide 6: 2Q/1H 2015 Financial Overview: Financial Position & Cashflow
2Q/1H 2015 Financial Overview Financial Position & Cashflow Equity attributable to owners of the Company were S$221.1m at end of 2Q15 vs S$210.2m at Dec 14 NAV per share at 30 June 2015 was 42.84 cents vs 39.36 cents at Dec 14 Operating cash outflow of S$12.9m in 2Q15 and S$14.5m in 1H15 due t
Slide 7: Summary Financials 2Q/1H 2015
Summary Financials 2Q/1H 2015 S$’m 2Q 2015 2Q 2014 Change 1H 2015 1H 2014 Change Revenue 112.1 108.1 3.8% 217.7 201.3 8.2% Gross Profit 29.8 31.5 -5.5% 59.9 57.2 4.8% EBIT 11.4 13.5 -15.4% 22.5 22.7 -1.2% Operating PATMI 8.1 8.0 0.4% 15.7 15.6 0.6% PATMI 9.9 8.0 23.4% 17.5 15.6 12.5% Gross margin (%
Slide 8: 2Q/1H 2015 FX Movement
2Q/1H 2015 FX Movement Variance Variance 2Q 2015 2Q 2014 1H 2015 1H 2014 (%) (%) USD/SGD: 1.3420 1.2516 7.22% 1.3516 1.2625 7.06% GBP/SGD: 2.0708 2.1173 -2.20% 2.0617 2.1106 -2.32% AUD/SGD: 1.0452 1.1670 -10.44% 1.0600 1.1537 -8.12% 8
Slide 9: 2Q/1H 2015 Constant Currency
2Q/1H 2015 Constant Currency 2Q 2015 S$M 2Q 2015 2Q 2014 Variance (%) Constant Variance (%) Currency Revenue: 112.1 108.1 3.8% 108.9 0.8% PATMI: 8.1 8.0 0.4% 7.9 -1.6% 1H 2015 S$M 1H 2015 1H 2014 Variance (%) Constant Variance (%) Currency Revenue: 217.7 201.3 8.2% 210.9 4.8% PATMI: 15.7 15.6 0.6% 1
Slide 10: Revenue by Geographical Region
Revenue by Geographical Region S$'m 1H 2015 1H 2014 Var % Americas 116.2 98.2 18.4% EMEA 21.3 18.0 18.3% Asia Pacific 80.2 85.1 -5.8% Total 217.7 201.3 8.2% 1H 2015 1H 2014 37% Americas 42% 49% EMEA 53% Asia Pacific 10% 9% 10
Slide 11: EBIT by Geographical Region
EBIT by Geographical Region S$'m 1H 2015 1H 2014 Var % Americas 11.3 9.6 17.4% EMEA 2.0 0.7 180.7% Asia Pacific 9.2 12.4 -25.6% Total 22.5 22.7 -0.7% 1H 2015 1H 2014 41% 42% Americas 50% EMEA 55% Asia Pacific 9% 3% 11
Slide 12: Revenue by Business Solutions
Revenue by Business Solutions S$'m 1H 2015 1H 2014 Var % Process Controls 163.1 152.3 7.1% Communications & Security 54.6 49.0 11.4% Total 217.7 201.3 8.2% 1H 2015 1H 2014 25% 24% Process Controls Communications & Security 75% 76% 12
Slide 13: EBIT by Business Solutions
EBIT by Business Solutions S$'m 1H 2015 1H 2014 Var % Process Controls 20.5 21.5 -4.3% Communications & Security 2.0 1.2 63.0% Total 22.5 22.7 -0.7% 1H 2015 1H 2014 ‐6% 14% Process Controls Communications & Security 86% 94% 13
Slide 14: Revenue by Industry
Revenue by Industry S$'m 1H 2015 1H 2014 Var % Mining & Mineral 17.5 20.6 -15.0% Infrastructure 22.3 27.6 -19.2% Oil & Gas 177.9 153.1 16.2% Total 217.7 201.3 8.2% 1H 2015 1H 2014 8% 10% 10% 14% Mining & Mineral Infrastructure Oil & Gas 76% 82% Infrastructure: Power, Water, Waste Treatment & Transpo
Slide 15: 2Q 2015 Group Balance Sheet
2Q 2015 Group Balance Sheet S$M 30-Jun-15 31-Mar-15 31-Dec-14 30-Sep-14 30-Jun-14 Cash at Hand & Bank 59.5 67.0 66.9 53.4 46.2 Work in Progress (Net) 88.0 73.2 57.0 57.0 53.0 Inventories 17.0 13.9 17.2 10.0 14.6 Trade Receivable 98.8 108.7 109.9 106.9 107.1 Trade Payable 54.7 56.7 63.0 56.9 59.4 Net
Slide 16: 2Q / 1H 2015 Group Cashflow
2Q / 1H 2015 Group Cashflow S$'m Q2 2015 Q2 2014 1H 2015 1H 2014 As at beginning of the period 67.0 63.8 66.9 186.6 Net Operations (12.9) (15.9) (14.5) (10.0) Capital Expenditure (Net) (0.9) (1.0) (1.4) (2.0) Cash consideration received, nett 7.5 - 7.5 - of cash divested Subsequent payment for - - (
Slide 17: Human Resource
Human Resource 2Q 2015 1Q 2015 4Q 2014 2Q 2014 789 830 The Americas 749 728 EMEA Asia 469 507 516 523 1,266 1,333 1,383 1,436 17
Slide 18: 2Q 2015 Orders
2Q 2015 Orders New orders Outstanding orders $200.5m $461.6m $255.0m $194.7m $237.8m $252.5m 173.5 92.2 91.0 92.4 112.6 4Q 3Q Communications & Security 2Q 119.3 Process Controls 1Q 97.4 145.6 161.5 162.6 95.4 82.1 103.1 73.4 2Q 2015 FY 2014 2Q 2015 1Q 2015 4Q 2014 2Q 2014 18
Slide 19: Business Overview & Outlook
Business Overview & Outlook 19
Slide 20: Business Overview
Business Overview • Flat profitability of S$8.1m • Strong order intake of S$97.4m • Robust order book of S$237.8m • Net cash of S$7.1m 20
Slide 21: Business Overview: Corporate Updates
Business Overview • Corporate Updates – Divested Power Diesel in June 2015 – Acquired the assets of Crosscom in June 2015 – Set up office in Peco, Permian Basin – Set up engineering centre in Cochin, India 21
Slide 22: To Re-cap
To Re-cap • We are a system integrator • Industries we serve : - oil & gas (mainly in production (land (include shale), shallow sea, continental shelf and deep sea), also pipeline and chemical/petrol- chemical), - mining (coal, gold, iron, copper, nickel & molybdenum) - infrastructure (transport, po
Slide 23: Industries Outlook
Industries Outlook • Oil & gas, Mining and infrastructure all remains challenging • Brownfield and small greenfield – level of activities had declined • Large greenfield projects – defer/delay and fewer 23
Slide 24: Plan
Plan Focus and invest for future recovery • Continue to focus on brownfield and small greenfield projects • Target new customers • Develop new revenue stream • Strengthen project delivery • Cash generation 24
Slide 25: Business Outlook
Business Outlook Summary CSE has a healthy outstanding order book of S$237.8 million and a net cash position of S$7.1 million at the end of 2Q15. The Group remains optimistic of its performance for FY2015, notwithstanding the challenging global economic outlook and low commodity prices. CSE believ
Slide 26: Interim Dividend
Interim Dividend • An interim dividend of 1.25 cents per share to be paid • Book closure date: 28th August 2015 • Payment date: 18th September 2015 26
Slide 27: Questions & Answers Thank You
Questions Questions & Answers Thank You 27