CSE Global Limited · SGX:544
CSE Global — FY2015 Earnings Presentation
25 slides from CSE Global's earnings presentation, Feb 25, 2016
Slide 1: Full Year 2015 Results Briefing
Full Year 2015 Results Briefing CSE Global Limited Fullerton Hotel 25 February 2016
Slide 2: Agenda
Agenda 1. 4Q/FY 2015 Financial Overview 2. Business Overview and Outlook 3. Proposed Dividend 4. Q&A 2
Slide 3: 4Q/FY 2015 Financial Review
4Q/FY 2015 Financial Review 3
Slide 4: 4Q 2015 Financial Overview
4Q 2015 Financial Overview Continuing Operations Revenue decreased by 14.6% to S$98.8m, as compared to 4Q14 Gross margins in 4Q15 at 31.1% vs 29.8% in 4Q14 PATMI from continuing operations at S$8.1m vs S$10.0m in 4Q14 Profit attributable to owners of company is 22.5% yoy lower at S$8.1m Op
Slide 5: FY 2015 Financial Overview
FY 2015 Financial Overview Continuing Operations Revenue decreased by 1.1% to S$412.0m, as compared to FY14 Gross margin in FY15 of 28.7% vs 28.6% in FY14 PATMI from continuing operations lowers by 6.4% to S$31.2m in FY15 Profit attributable to owners of company of S$34.1m compared to S$35.4
Slide 6: Summary Financials 4Q/FY 2015
Summary Financials 4Q/FY 2015 S$’m 4Q 2015 4Q 2014 Change FY 2015 FY 2014 Change Revenue 98.8 115.7 -14.6% 412.0 416.7 -1.1% Gross Profit 30.7 34.5 -11.1% 118.2 119.2 -0.9% PATMI from continuing operations 8.1 10.0 -19.8% 31.2 33.3 -6.4% PATMI 8.1 10.4 -22.5% 34.1 35.4 -3.7% Gross margin (%) 31.1% 2
Slide 7: Financial Position & Cashflow
3Q/9M 2015 Financial Overview Financial Position & Cashflow Equity attributable to owners of the Company were S$241.4m at end of Dec15 vs S$210.2m at Dec 14 NAV per share at 31 Dec 2015 was up 14.8% at 46.77 cents vs 40.73 cents at 31 Dec 14 Operating cash inflow of S$41.0m in FY15 vs S$10.7m
Slide 8: 4Q/FY 2015 FX Movement
4Q/FY 2015 FX Movement Variance Variance 4Q 2015 4Q 2014 FY 2015 FY 2014 (%) (%) USD/SGD: 1.4050 1.2942 8.56% 1.3755 1.2680 8.48% GBP/SGD: 2.1372 2.0490 4.30% 2.1088 2.0909 0.85% AUD/SGD: 1.0112 1.1041 -8.42% 1.0365 1.1412 -9.18% 8
Slide 9: 4Q/FY 2015 Constant Currency
4Q/FY 2015 Constant Currency 4Q 2015 S$M 4Q 2015 4Q 2014 Variance (%) Constant Variance (%) Currency Revenue: 98.8 115.7 -14.6% 94.3 -18.5% PATMI: 8.1 10.0 -19.8% 7.9 -21.3% FY 2015 S$M FY 2015 FY 2014 Variance (%) Constant Variance (%) Currency Revenue: 412.0 416.7 -1.1% 394.9 -5.2% PATMI: 31.2 33.
Slide 10: Revenue by Geographical Region
Revenue by Geographical Region Continuing Operations S$'m FY 2015 FY 2014 Var % Americas 234.7 220.0 6.6% EMEA 48.0 44.1 8.7% Asia Pacific 129.3 152.6 -15.3% Total 412.0 416.7 -1.1% FY 2015 FY 2014 31% 37% Americas Americas EMEA EMEA 53% 57% Asia Pacific Asia Pacific 12% 10% 10
Slide 11: EBIT by Geographical Region
EBIT by Geographical Region Continuing Operations S$'m FY 2015 FY 2014 Var % Americas 22.5 21.2 6.2% EMEA 5.1 3.0 65.6% Asia Pacific 12.9 22.4 -41.9% Total 40.5 46.6 -13.0% FY 2015 FY 2014 32% Americas Americas 48% 46% EMEA EMEA 56% Asia Pacific Asia Pacific 12% 6% 11
Slide 12: Revenue by Business Solutions
Revenue by Business Solutions Continuing Operations S$'m FY 2015 FY 2014 Var % Process Controls 304.9 310.0 -1.6% Communications & Security 107.1 106.7 0.4% Total 412.0 416.7 -1.1% FY 2015 FY 2014 26% 26% Process Controls Process Controls Communications & Communications & Security Security 74% 74% 1
Slide 13: EBIT by Business Solutions
EBIT by Business Solutions Continuing Operations S$'m FY 2015 FY 2014 Var % Process Controls 36.0 40.6 -11.2% Communications & Security 4.5 6.0 -25.1% Total 40.5 46.6 -13.0% FY 2015 FY 2014 11% 13% Process Controls Process Controls Communications & Communications & Security Security 89% 87% 13
Slide 14: Revenue by Industry
Revenue by Industry Continuing Operations S$'m FY 2015 FY 2014 Var % Mining & Mineral 31.3 43.2 -27.5% Infrastructure 47.4 53.0 -10.6% Oil & Gas 333.3 320.5 4.0% Total 412.0 416.7 -1.1% FY 2015 FY 2014 8% 10% 11% 13% Mining & Mineral Mining & Mineral Infrastructure Infrastructure Oil & Gas Oil & Gas
Slide 15: 4Q 2015 Group Balance Sheet
4Q 2015 Group Balance Sheet S$M 31-Dec-15 30-Sep-15 30-Jun-15 31-Mar-15 31-Dec-14 Cash at Hand & Bank 109.7 66.2 59.5 67.0 66.9 Work in Progress (Net) 47.2 76.5 88.0 73.2 57.0 Inventories 11.8 17.3 17.0 13.9 17.2 Trade Receivable 95.3 104.5 88.0 94.9 99.1 Other Receivable 11.3 10.3 10.8 13.8 10.8 Tr
Slide 16: 4Q/FY 2015 Group Cash Flow Statement
4Q/FY 2015 Group Cash Flow Statement S$'m Q4 2015 Q4 2014 FY 2015 FY 2014 As at beginning of the period 66.2 53.4 66.9 186.6 Net Operations 45.1 11.7 41.0 10.7 Capital Expenditure (Net) (1.0) (0.5) (7.3) (4.5) Net additional investment in - - 7.0 (0.5) Subsidiaries & Associates Bank Loans (3.0) 1.6
Slide 17: Human Resource Growth
Human Resource Growth 4Q 2015 3Q 2015 4Q 2014 789 740 685 ' 516 477 497 The Americas EMEA Asia Pacific 1,230 1,306 1,383 17
Slide 18: FY 2015 Orders
FY 2015 Orders New orders Outstanding orders $351.0m $444.6m $192.7m $222.0m $255.0m 89.9 92.4 169.0 83.9 70.8 4Q Communications & 3Q 87.4 Security 115.1 2Q Process Controls 1Q 94.4 132.1 162.6 108.8 91.2 98.4 69.3 FY 2015 FY 2014 4Q 2015 3Q 2015 4Q 2014 18
Slide 19: Business Overview & Outlook
Business Overview & Outlook 19
Slide 20: Business Review
Business Review Strong cash flow generation Lack of new large greenfield orders 20
Slide 21: Outlook
Outlook • Operating conditions in 2016 remain challenging • Lack of large greenfield projects, need to win some of the limited opportunities • While operating expenditure of customers remains resilient, anticipate lower level of brownfield activities and prices 21
Slide 22: Focus
Focus • Cash generation • Cost control • Building geographical presence and knowhow through organic/inorganic Build for the turnaround. 22
Slide 23: Dividends (Proposed)
Dividends (Proposed) FY2013 FY2014 FY2015 Dividends (Cents): Interim 1.5 1.25 1.25 Special Interim 28.0 - - Final 2.0 1.5# 1.25# Special 1.0 - 0.25# Total 32.5 2.75 2.75 Payment Date: 20 May 2016 Book Closure: 4 May 2016 AGM: 20 April 2016 #: proposed and subject to approval at AGM 23
Slide 24: Business Outlook
Business Outlook Summary CSE has an outstanding order book of S$192.7 million and a net cash position of S$54.2 million at the end of 4Q15. The Group continues to see a lack of large greenfield projects, amid the challenging global economic outlook and low commodity prices. The Group will continue
Slide 25: Questions & Answers Thank You
Questions Questions & Answers Thank You 25