CSE Global Limited · SGX:544
CSE Global — FY2016 Earnings Presentation
30 slides from CSE Global's earnings presentation, Feb 24, 2017
Slide 1: 4Q/FY2016 Results Briefing
4Q/FY2016 Results Briefing CSE Global Limited Fullerton Hotel 24 February 2017
Slide 2: Agenda
Agenda 1. 4Q/FY2016 Financial Overview 2. Business Overview and Outlook 3. Q&A 2
Slide 3: 4Q 2016 & FY 2016 Financial Review
4Q 2016 & FY 2016 Financial Review 3
Slide 4: 4Q 2016 Financial Overview Continuing Operations
4Q 2016 Financial Overview Continuing Operations Revenue declined by 20.7% to S$78.3m y-o-y, mainly from O&G industry segment Gross profit decreased by 10.5% y-o-y to S$27.5m Gross margins increased by 12.9%, 4Q16 at 35.1% vs 31.1% in 4Q15, lifted by closing of projects in Asia Pacific region
Slide 5: FY2016 Financial Overview Continuing Operations
FY2016 Financial Overview Continuing Operations Revenue declined by 22.9% to S$317.8m yoy Gross profit decreased by 14.8% yoy to S$100.7m Gross margins in FY16 improves to 31.7% vs 28.7% in FY15 EBIT decreased by 32.0% to S$27.6m in FY16 vs S$40.5m in FY15 EBIT margins were lower at 8.7% i
Slide 6: FY2016 Financial Overview: Financial Position & Cashflow
FY2016 Financial Overview Continuing Operations Financial Position & Cashflow Strong operating cash inflow of S$58.4m in FY16 vs 43.4m in FY15, due to higher collections and billings, as a result of achievement of project delivery milestones for several projects Net Cash of S$70.2m at FY16 vs S$
Slide 7: Summary Financials 4Q & FY 2016
Summary Financials 4Q & FY 2016 S$’m 4Q 2016 4Q 2015 Change FY 2016 FY 2015 Change Revenue 78.3 98.8 -20.7% 317.8 412.0 -22.9% Gross Profit 27.5 30.7 -10.5% 100.7 118.2 -14.8% EBIT 8.3 9.0 -7.8% 27.6 40.5 -32.0% Profit before tax 8.4 8.6 -2.6% 27.7 39.6 -30.0% PATMI from continuing operations 6.2 8.
Slide 8: Key Financial Highlights FY16
Key Financial Highlights FY16 • FY16 PATMI from continuing operations decreased by S$10.0 m (32.1%) yoy: Lower gross profit of S$17.5m (-14.8%) due to lower revenues (-22.9%) achieved across all regions Higher amortisation of intangibles from new acquisitions (S$0.8m) One off acquisition trans
Slide 9: 4Q & FY 2016 FX Movement
4Q & FY 2016 FX Movement Variance Variance 4Q 2016 4Q 2015 FY 2016 FY 2015 (%) (%) USD/SGD: 1.3949 1.4050 -0.72% 1.3824 1.3755 0.50% GBP/SGD: 1.7480 2.1372 -18.21% 1.8928 2.1088 -10.24% AUD/SGD: 1.0566 1.0112 4.49% 1.0228 1.0365 -1.31% 9
Slide 10: 4Q & FY2016 Constant Currency
4Q & FY2016 Constant Currency 4Q 2016 S$M 4Q 2016 4Q 2015 Variance (%) Constant Variance (%) Currency Revenue: 78.3 98.8 -20.7% 77.9 -21.1% PATMI: 6.2 8.1 -23.6% 6.2 -22.9% FY 2016 S$M FY 2016 FY 2015 Variance (%) Constant Variance (%) Currency Revenue: 317.8 412.0 -22.9% 318.6 -22.7% PATMI: 21.2 31
Slide 11: Revenue by Geographical Region – FY 2016
Revenue by Geographical Region – FY 2016 S$'m FY 2016 FY 2015 Var % Americas 159.7 234.7 -31.9% EMEA 41.4 48.0 -13.8% Asia Pacific 116.7 129.3 -9.8% Total 317.8 412.0 -22.9% FY 2016 FY 2015 37% 31% Americas EMEA 50% Asia Pacific 57% 12% 13% 11
Slide 12: EBIT by Geographical Region – FY2016
EBIT by Geographical Region – FY2016 S$'m FY 2016 FY 2015 Var % Americas 7.2 22.5 -67.8% EMEA 6.5 5.0 29.6% Asia Pacific 13.8 13.0 6.3% Total 27.6 40.5 -32.0% FY 2016 FY 2015 26% 32% Americas EMEA 50% Asia Pacific 56% 24% 12% 12
Slide 13: Revenue by Geographical Region – Qtrly Trends
Revenue by Geographical Region – Qtrly Trends S$'m Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Americas 34.2 38.9 39.2 47.4 60.3 58.2 57.4 58.8 EMEA 9.4 11.1 8.9 12.0 13.6 13.1 12.6 8.7 Asia Pacific 34.7 30.9 26.2 24.9 24.9 32.0 39.1 33.3 Total 78.3 81.0 74.3 84.2 98.8 103.2 109.
Slide 14: Revenue by Industry – FY 2016
Revenue by Industry – FY 2016 S$'m FY 2016 FY 2015 Var % Mining & Mineral 22.0 13.1 68.7% Infrastructure 58.9 53.9 9.2% Oil & Gas 236.8 345.0 -31.3% Total 317.8 412.0 -22.9% FY 2016 FY 2015 3% 7% 13% 19% Mining & Mineral Infrastructure Oil & Gas 74% 84% Infrastructure: Power, Water, Waste Treatment
Slide 15: EBIT by Industry – FY 2016
EBIT by Industry – FY 2016 S$'m FY 2016 FY 2015 Var % Mining & Mineral 1.9 1.6 17.8% Infrastructure# 8.4 8.2 1.4% Oil & Gas 17.3 30.6 -43.6% Total 27.6 40.5 -32.0% # Infrastructure included additional acquisition transaction cost of S$0.4m, amortisation of PPA S$0.4m, provision of doubtful debt S$0.
Slide 16: Revenue by Industry – Qtrly Trends
Revenue by Industry – Qtrly Trends S$'m Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Mining & Mineral 9.9 6.7 2.8 2.7 3.6 2.8 3.3 3.4 Infrastructure 14.1 16.4 15.5 12.9 14.6 13.4 14.3 11.7 Oil & Gas 54.4 57.9 56.0 68.6 80.6 87.0 91.6 85.8 Total 78.3 81.0 74.3 84.2 98.8 103.2 109.1
Slide 17: 4Q 2016 Group Balance Sheet
4Q 2016 Group Balance Sheet S$M 31-Dec-16 30-Sep-16 30-Jun-16 31-Mar-16 31-Dec-15 30-Sep-15 Cash at Hand & Bank 90.8 71.2 64.0 76.3 109.7 66.2 Quoted Investments 7.4 20.4 20.3 0.0 0.0 0.0 Work in Progress (Net) 30.9 27.0 24.5 37.7 47.8 76.5 Inventories 14.7 12.4 12.8 12.7 11.8 17.3 Trade Receivable
Slide 18: 4Q/FY 2016 Group Cash Flow Statement
4Q /FY 2016 Group Cash Flow Statement S$'m Q4 2016 Q4 2015 FY 2016 FY 2015 As at beginning of the period 71.2 66.2 109.7 66.9 Net Operations 1.1 46.8 58.4 43.4 Capital Expenditure (Net) (1.3) 1.3 (6.8) (5.7) Net consideration from disposal - PD - - - 7.5 Quoted investment 13.2 - (7.2) - Net addition
Slide 19: Human Resource
Human Resource 4Q 2016 3Q 2016 4Q 2015 The America 685 526 552 EMEA Asia Pacific 459 477 449 1,036 1,057 1,230 19
Slide 20: 4Q/FY 2016 Orders
4Q/FY 2016 Orders New orders Outstanding orders $286.6m $351.0m $163.1m $179.0m $192.7m 70.8 43.2 46.7 62.4 57.7 87.4 26.8 4Q 3Q 30.9 70.8 EMEA 42.8 The Americas 2Q 1Q 94.4 Asia Pacific 83.2 105.5 89.0 87.5 98.4 74.9 FY 2016 FY 2015 4Q 2016 3Q 2016 4Q 2015
Slide 21: Order Intake by Industry
Order Intake by Industry S$'m FY 2016 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Oil & Gas 194.6 43.3 49.6 39.5 62.2 58.6 73.6 75.0 87.8 Mining 32.0 1.9 4.2 23.8 2.0 2.3 3.7 2.7 2.6 Infrastructure 60.1 12.5 17.0 19.9 10.7 9.9 10.0 16.7 7.9 Total 286.6 57.7 70.8 83.2 75.0 70.8 87
Slide 22: Backlog by Industry
Backlog by Industry S$'m Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Oil & Gas 75.2 82.6 85.9 104.5 110.9 136.7 150.4 167.4 Mining 10.7 20.6 25.8 4.7 7.9 7.1 6.4 7.2 Infrastructure 77.1 75.8 74.9 70.5 73.9 78.1 81.0 77.9 - - - - - - - - Total 163.1 179.0 186.6 179.6 192.7 222.0 2
Slide 23: Business Overview & Outlook
Business Overview & Outlook 23
Slide 24: Business Outlook - Overall
Business Outlook - Overall Business environment remains difficult - forming base? possible - increased enquires but no increase in purchasing yet 24
Slide 25: Update
Update • Increased presence - 9 offices in United States of Americas - 10 offices in Australia/New Zealand • Grown Mining & infrastructure - Revenue 26% in 2016, grow 21% (16% in 2015) - EBIT 37% in 2016, grow 20% (24% in 2015) • Diversify into midstream and downstream O&G business and expand into n
Slide 26: Key activities
Key activities - Generate cash flow - Cost control - Continue to focus on building small greenfield projects and brownfield projects - Win the window of opportunities - Build the footprint in Americas and Australia through acquisitions and new setup Be Prepared For The Turnaround 26
Slide 27: Business Outlook
Business Outlook Summary • Conditions in the sectors in which the Group operates remain challenging. The Group anticipates that the challenging operating conditions will continue to put pressure on its profitability going forward. The Group implemented cost control measures which had resulted in a 1
Slide 28: Business Outlook
Business Outlook Summary • The Group expects a weaker performance in 1Q17 due to delays in award of several projects to the first half of 2017. Despite an anticipated weaker 1Q17 performance, the Group expects the performance of FY2017 to be similar to FY2016. • The balance sheet remains strong with
Slide 29: Dividends (Proposed)
Dividends (Proposed) FY2014 FY2015 FY2016 Dividends (Cents): Interim 1.25 1.25 1.25 Special Interim - - - Final 1.5 1.25 1.5# Special - 0.25 Total 2.75 2.75 2.75 Payment Date: 19 May 2017 Book Closure: 4 May 2017 AGM: 20 April 2017 #: proposed and subject to approval at AGM 29
Slide 30: Questions & Answers Thank You
Questions Questions & Answers Thank You 30