CSE Global Limited · SGX:544
CSE Global — Q3 2014 Earnings Presentation
22 slides from CSE Global's earnings presentation, Nov 12, 2014
Slide 1: 3rd Quarter 2014 Results Briefing
3rd Quarter 2014 Results Briefing CSE Global Limited Fullerton Hotel 12 November 2014
Slide 2: Agenda
Agenda 1. Business Overview and Outlook 2. 3Q/9M 2014 Financial Results 3. Q&A 2
Slide 3: Business Overview
Business Overview • Good order intake • Cash generation positive • ROS remains above 8% 3
Slide 4: Outlook Continuing Operations
Outlook Continuing Operations • Operating environment remains challenging and competitive. • Weaker oil and commodity prices could soften demand. 4
Slide 5: Outlook Continuing Operations
Outlook Continuing Operations • Cautiously optimistic that its performance in FY14 would be better than FY13 - an outstanding order book of S$201.7 million - strong growth in order intake - continue to focus on small greenfield and brownfield projects • Strong financial position - Improved Net Cash
Slide 6: 3Q/ 9M 2014 Review
3Q/ 9M 2014 Review Continuing Operations 6
Slide 7: 3Q 2014 Financial Overview
3Q 2014 Financial Overview Continuing Operations Revenue increased by 15.2%, as compared to 3Q13 PATMI of S$9.4m compared to S$6.7m in 3Q13 PATMI up 39.6%, as compared to 3Q13 Operating cash inflow of S$8.8m in 3Q14 New orders in 3Q14 totalling S$119.3m, +29.1% vs in 3Q13 Return on Equit
Slide 8: 9M 2014 Financial Overview
9M 2014 Financial Overview Continuing Operations Revenue increased by 9.2%, as compared to 9M13 PATMI of S$25.0m compared to S$23.9m in 9M13 PATMI up 4.7%, as compared to 9M13 Operating cash outflow of S$1.2m in 9M14 New orders in 9M14 totalling S$288.1m Return on Equity 17.0% annualised
Slide 9: Summary Financials 3Q/9M 2014
Summary Financials 3Q/9M 2014 Continuing Operations S$’m 3Q 2014 3Q 2013 Change 9M 2014 9M 2013 Change Revenue 112.3 97.5 15.2% 313.6 287.0 9.2% Gross Profit 31.5 27.4 15.1% 88.7 83.1 6.6% Profit before tax (continuing operations) 13.8 10.2 35.6% 36.4 33.6 8.4% PATMI (continuing operations) 9.4 6.7
Slide 10: 3Q 2014 Overview
3Q 2014 Overview Continuing Operations Revenue - 15.2% growth in revenue mainly from US and Australia - Continual growth in offshore work in US, secured all major projects in GoM - Growth in sales activities in Australia Net Profit - Gross Profit grew 15.1% yoy, gross margins relatively stable a
Slide 11: 3Q 2014 FX Movement
3Q 2014 FX Movement Variance Variance 3Q 2014 3Q 2013 9M 2014 9M 2013 (%) (%) USD/SGD: 1.2530 1.2640 -0.87% 1.2593 1.2533 0.48% GBP/SGD: 2.0934 1.9756 5.96% 2.1049 1.9368 8.68% AUD/SGD: 1.1531 1.1634 -0.88% 1.1535 1.2262 -5.93% 11
Slide 12: 3Q 2014 Constant Currency
3Q 2014 Constant Currency Continuing Operations 3Q 2014 S$M 3Q 2014 3Q 2013 Variance (%) Constant Variance (%) Currency Revenue (continuing ops): 112.3 97.5 15.2% 112.9 15.8% PATMI (continuing ops): 9.4 6.7 39.6% 9.4 39.6% 9M 2014 S$M 9M 2014 9M 2013 Variance (%) Constant Variance (%) Currency Reven
Slide 13: Revenue by Geographical Region
Revenue by Geographical Region Continuing Operations S$'m 9M 2014 9M 2013 Americas 158.0 145.4 EMEA 29.6 45.1 Asia Pacific 126.0 96.5 Total 313.6 287.0 9M 2014 9M 2013 33% 40% Americas Americas EMEA EMEA 50% 51% Asia Pacific Asia Pacific 16% 10% 13
Slide 14: PAT by Geographical Region
PAT by Geographical Region Continuing Operations S$'m 9M 2014 9M 2013 Americas 10.8 11.5 EMEA 1.0 2.1 Asia Pacific 13.2 10.2 Total 25.0 23.9 9M 2014 9M 2013 43% Americas 43% Americas 48% EMEA EMEA 53% Asia Pacific Asia Pacific 9% 4% 14
Slide 15: Revenue by Business Solutions
Revenue by Business Solutions Continuing Operations S$'m 9M 2014 9M 2013 Automation 237.0 215.4 Telecommunications 74.3 67.5 Environment 2.3 4.1 Total 313.6 287.0 9M 2014 9M 2013 1% 1% 24% 24% Automation Automation Telecommunications Telecommunications Environment Environment 75% 75% 15
Slide 16: PAT by Business Solutions
PAT by Business Solutions Continuing Operations S$'m 9M 2014 9M 2013 Automation 24.6 22.6 Telecommunications 1.2 1.2 Environment (0.8) 0.0 Total 25.0 23.8 9M 2014 9M 2013 -3% 0% 4% 5% Automation Automation Telecommunications Telecommunications Environment Environment 93% 95% 16
Slide 17: Revenue by Industry
Revenue by Industry Continuing Operations S$'m 9M 2014 9M 2013 Mining & Mineral 31.4 24.6 Infrastructure 39.5 31.3 Oil & Gas 242.7 216.8 Total 313.6 272.8 9M 2014 9M 2013 10% 9% 13% 11% Mining & Mineral Mining & Mineral Infrastructure Infrastructure Oil & Gas Oil & Gas 77% 80% 17
Slide 18: 3Q 2014 Group Balance Sheet
3Q 2014 Group Balance Sheet S$M 30-Sep-14 30-Jun-14 31-Mar-14 31-Dec-13 Cash at Hand & Bank 53.4 46.2 63.8 186.6 Work in Progress (Net) 57.0 53.0 37.8 35.8 Inventories 10.0 14.6 11.3 15.3 Trade Receivable 106.9 107.1 115.4 112.7 Trade Payable 56.9 59.4 69.6 72.5 Dividend Payable - - - 144.5 Net Curr
Slide 19: 3Q 2014 Group Cashflow
3Q 2014 Group Cashflow S$'m 3Q 2014 3Q 2013 9M 2014 9M 2013 As at beginning of the period 46.2 90.9 186.6 74.2 Net Operations 8.8 18.5 (1.2) 65.7 Capital Expenditure (Net) (1.7) (0.6) (3.8) (0.7) Net additional investment in - (12.2) (0.5) (15.6) Subsidiaries & Associates Bank Loans 6.5 (7.7) 38.7 (
Slide 20: Human Resource Growth
Human Resource Growth 3Q 2014 2Q 2014 3Q 2013 847 830 665 522 523 547 The Americas EMEA Asia Pacific 1,450 1,436 1,303 20
Slide 21: 3Q 2014 Orders
3Q 2014 Orders New orders Outstanding orders $288.1m $362.7m $201.7m $194.7m $207.4m 13.0 13.0 14.8 91.7 105.7 112.6 115.0 4Q 119.3 92.4 Environmental 3Q Telecommunication 2Q Automation 12 95.4 105.2 83.0 69.1 77.6 73.4 73.4 FY 2014 FY 2013 3Q 2014 2Q 2014 1Q 2014 21
Slide 22: Q&A Thank You
Q&A Questions & Answers Thank You 22