Slide 1: 1H2024 Results Briefing
1H2024 Results Briefing 6 August 2024
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified. The Company assumes no responsibility or liability whatsoever (in negligence or otherwise) for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein
Slide 3: Today's Agenda
Today’s Agenda 1 Business Updates Mr Lim Boon Kheng, Group CEO 2 1H2024 Financial Performance Mr Eddie Foo, Group CFO 3 Q&A Session
Slide 4: Business Updates
1 Business Updates Mr Lim Boon Kheng, Group CEO
Slide 5: About CSE Global
About CSE Global We are a solutions provider that serves customers across a OUR GLOBAL FOOTPRINT global network. 16 CSE Crosscom UK countries We use our engineering experience and diverse skill sets to design Europe CSE Global and build customized, integrated systems for our customers that 58 Asia P
Slide 6: Why Our Customers Choose Us
Why Our Customers Choose Us We exist because of our customers. Notable projects We make their jobs easier by solving their problems and delivering We have what it takes to get the job done and finish well – what they need. By applying our engineering knowledge to find the no problem is too big that
Slide 7: Business Updates
Business Updates 1 1H2024 Highlights 2 Segmental Performance 3 Key Strategies Building on diversification initiatives, • Current global economic outlook and with a focus on Electrification in USA and ANZ inflationary pressures continue to and Communications in ANZ, SG, UK & USA present uncertainties
Slide 8: 1H2024 Revenue Breakdown By Business Segments
1H2024 Revenue Breakdown By Business Segments 1H2024 S$ million 1H2024 1H2023 YoY % 23% Electrification 216.7 163.6 32.4% Communications 113.6 107.1 6.1% Automation 98.6 78.6 25.5% 51% Total 428.9 349.3 22.8% 26% Note: Total may not sum up due to rounding. Electrification Communications Automation 8
Slide 9: Order Intake and Order Book by Business Segments
Order Intake and Order Book by Business Segments Order Intake Order Book S$ million 1H2024 1H2023 YoY% 1H2024 1H2023 YoY% Electrification 175.6 174.4 0.7% 395.0 229.8 71.9% Communications 115.0 126.7 -9.3% 106.2 97.6 8.9% Automation 100.1 89.9 11.3% 191.1 194.4 -1.7% Total 390.6 391.0 -0.1% 692.3 52
Slide 10: 1H2024 Revenue Breakdown By Projects
1H2024 Revenue Breakdown By Projects 1H2024 S$ million 1H2024 1H2023 YoY% Flow Business * 305.7 311.1 -1.7% 29% Large Greenfield Projects 123.2 38.2 222.7% Total 428.9 349.3 22.8% Flow Business % 71% 89% Note: Total may not sum up due to rounding. 71% Flow Business Large Greenfield Projects *Include
Slide 11: 1H2024 Revenue Breakdown By Industry Segments
1H2024 Revenue Breakdown By Industry Segments 1H2024 S$ million 1H2024 1H2023 YoY % 7% 18% Energy - Onshore 76.8 82.1 -6.4% Energy - Offshore 86.5 72.7 19.0% Infrastructure 234.5 163.8 43.2% 20% Mining & Mineral 31.0 30.7 1.0% 55% Total 428.9 349.3 22.8% Infrastructure: Power, Water, Waste Treatment
Slide 12: Order Intake and Order Book by Industry Segments
Order Intake and Order Book by Industry Segments Order Intake Order Book S$ million 1H2024 1H2023 YoY% 1H2024 1H2023 YoY% Energy 167.6 185.3 -9.6% 157.6 208.9 -24.5% Infrastructure 188.0 171.5 9.6% 500.4 288.7 73.3% Mining & Minerals 35.0 34.2 2.5% 34.3 24.2 42.1% Total 390.6 391.0 -0.1% 692.3 521.8
Slide 13: Growth Strategy
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Slide 14: Growth Drivers – Emerging Megatrends
Growth Drivers – Emerging Megatrends Urbanisation Electrification Decarbonisation • Currently, 56% of the world's • Process of substituting fossil-fuel • Process of removal or reduction of population (4.4 billion) live in cities. sources of power with electricity CO2 output into the atmosphere. gene
Slide 15: Growth Strategy – Diversification and Expansion
Growth Strategy – Diversification and Expansion Diversification into new Expansion of markets brought about by engineering capabilities emerging trends in key markets Diversification Expansion • Increasing demand for key products such as: • Acquisition remains a key growth strategy Power systems p
Slide 16: Growth Plans - Critical Communications
Growth Plans - Critical Communications Our Solutions - Private network - Provides push-to-talk (PTT) and public switch telephone network (PSTN) using tetra radio/LTE network Where we are today: • UK • USA • Australia & New Zealand • Singapore Where we want to be: • Operate globally • Expand into USA
Slide 17: FY2024 Outlook
FY2024 Outlook Outlook CSE is well positioned to achieve a healthy financial performance in 2024 with an order book of S$692.3 million as at 30 June 2024. However, the current global economic outlook and inflationary pressures continue to present uncertainties in the markets we operate. Our strategy
Slide 18: 1H2024 Financial Performance
2 1H2024 Financial Performance Mr Eddie Foo, Group CFO
Slide 19: Group Performance
Group Performance 1H2024 1H2023 • Revenue grew 22.8% to S$428.9m led by Electrification and Automation business segments Revenue S$428.9m S$349.3m • Gross profit increased 23.6% to S$118.4m, gross margin relatively stable at 27.6% compared to 27.4% in 1H2023 Gross margin 27.6% 27.4% • EBITDA improve
Slide 20: Summary Financials
Summary Financials S$ million 1H2024 1H2023 Change Revenue 428.9 349.3 22.8% Gross profit 118.4 95.8 23.6% Operating expenses (95.5) (78.1) 22.2% EBITDA 38.3 30.9 24.1% Net profit attributable to equity owners of the Company 15.0 11.0 36.4% Gross margin (%) 27.6% 27.4% 0.2p.p EBITDA margin (%) 8.9%
Slide 21: FX Movement
FX Movement 1H2024 1H2023 Change (%) USD/SGD 1.3434 1.3383 0.38% GBP/SGD 1.7022 1.6397 3.81% AUD/SGD 0.8881 0.9015 -1.49% 21
Slide 22: Constant Currency Figures
Constant Currency Figures 1H2024 Change Change S$ million 1H2024 1H2023 Constant (%) (%) Currency Revenue 428.9 349.3 22.8% 429.2 22.9% PATMI 15.0 11.0 36.4% 15.0 36.6% 22
Slide 23: 1H2024 Breakdown By Geography Segments
1H2024 Breakdown By Geography Segments REVENUE EBIT 1H2024 1H2023 EBIT by Geography 16.0 15.1 13.8 14.0 2% 3% 12.0 10.3 10.0 34% 8.0 39% 6.0 58% 64% 3.4 4.0 2.0 0.9 0.7 0.0 Americas Asia Pacific EMEA Americas Asia Pacific EMEA 1H2024 1H2023 S$ million 1H2024 1H2023 YoY % S$ million 1H2024 1H2023 YoY
Slide 24: 1H2024 Breakdown By Industrial Segments
1H2024 Breakdown By Industrial Segments REVENUE EBIT EBIT by Industry 1H2024 1H2023 16.0 14.0 13.0 13.3 7% 9% 12.0 10.2 10.0 38% 44% 8.0 6.0 4.2 47% 55% 4.0 1.6 1.8 2.0 0.0 Energy Infrastructure Mining & Minerals Energy Infrastructure Mining & Minerals 1H2024 1H2023 S$ million 1H2024 1H2023 YoY % S$
Slide 25: Quarterly Revenue Trends
Quarterly Revenue Trends By Business, Q-o-Q (S$ million) ELECTRIFICATION COMMUNICATIONS 61.7 58.4 59.6 115.1 55.1 54.0 101.7 89.5 85.9 85.0 45.4 74.1 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 AUTOMATION GROUP 56.7 231.4 44.4 47.0 189.8 185.4 190.4 197.5 39.9 41.9 38.7 159.4 1Q23 2Q
Slide 26: Quarterly Revenue Trends
Quarterly Revenue Trends By Industry, Q-o-Q (S$ million) ENERGY INFRASTRUCTURE 129.3 84.1 85.9 83.9 84.9 78.4 105.3 70.7 93.1 88.1 85.4 75.7 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 MINING & MINERALS GROUP 17.6 231.4 17.2 189.8 185.4 190.4 197.5 14.1 13.3 13.8 13.0 159.4 1Q23 2Q23
Slide 27: Quarterly Revenue Trends
Quarterly Revenue Trends By Geography, Q-o-Q (S$ million) AMERICAS ASIA PACIFIC 147.7 126.0 78.4 112.2 116.5 113.9 72.6 71.2 62.3 62.8 66.0 92.1 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 EMEA GROUP 6.2 231.4 5.3 5.5 5.3 189.8 185.4 190.4 197.5 5.0 5.0 159.4 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 28: Financial Position & Cash Flow
Financial Position & Cash Flow Cash inflow/(outflow) from operating S$15.8 million in 1H2024 vs (S$1.1) million in 1H2023 activities (S$60.1) million as at 30 June 2024 vs (S$76.0) million Net cash/(debt) as at 31 December 2023 Equity attributable to S$253.6 million at 30 June 2024 vs owners of the
Slide 29: Group Balance Sheet
Group Balance Sheet 30-Jun-24 31-Dec-23 30-Jun-23 PPE 76.4 70.3 68.7 Right-to-use assets 26.1 26.2 20.1 Intangible Assets 95.8 93.4 92.3 Cash at Hand & Bank 101.8 39.4 23.5 Net Contract Assets 43.2 28.1 77.6 Inventories 70.2 70.8 68.6 Trade and Other Receivables 148.0 153.0 155.3 Trade Payables and
Slide 30: Group Cash Flow Statement
Group Cash Flow Statement S$ million 1H2024 1H2023 As at beginning of the period 38.4 24.1 EBITDA 38.3 30.9 Other non-cash adjustments 0.8 0.8 Changes in working capital (15.5) (25.5) Interest and tax (7.8) (7.3) Cash flow from operating activities 15.8 (1.1) 1 Capital expenditure, net of sale (10.9
Slide 31: FY2024 Order Intake/Book By Business Segments
FY2024 Order Intake/Book By Business Segments Order Intake from Order Book from Continuing Operations Continuing Operations $390.6m $975.6m $692.3m $521.8m 283.0 395.0 229.8 301.6 106.2 97.6 204.4 231.4 191.1 194.4 186.2 159.6 FY2024 FY2023 1H2024 1H2023 1Q 2Q 3Q 4Q Automation Communications Electri
Slide 32: Order Intake
Order Intake By Business, Q-o-Q (S$ million) ELECTRIFICATION COMMUNICATIONS 188.0 186.5 76.6 64.8 63.4 55.8 51.6 96.3 92.7 50.1 78.2 82.9 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 AUTOMATION GROUP 58.6 301.6 283.0 48.7 51.8 48.3 231.4 40.6 204.4 186.2 31.3 159.6 1Q23 2Q23 3Q23 4Q23
Slide 33: Human Resources Allocation
Human Resources Allocation 2,071 1,952 No. of headcount 1,874 1,285 1,141 1,266 67 69 67 719 664 619 2Q2024 4Q2023 2Q2023 Asia Pacific EMEA Americas 33
Slide 34: Q&A
Q&A