CSE Global Limited · SGX:544
CSE Global — FY2023 Earnings Presentation
35 slides from CSE Global's earnings presentation, Feb 28, 2024
Slide 1: FY2023 Results Briefing
FY2023 Results Briefing 28 February 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 FY2023 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 57 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 FY2023 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: FY2023 Revenue Breakdown By Business Segments
FY2023 Revenue Breakdown By Business Segments FY2023 S$ million FY2023 FY2022 YoY % 23% Automation 170.0 164.5 3.3% 46% Communications 220.5 153.1 44.0% Electrification 334.5 240.1 39.4% 30% Total 725.1 557.7 30.0% Automation Communications Electrification 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 FY2023 FY2022 YoY% FY2023 FY2022 YoY% Automation 181.5 267.2 -32.1% 192.3 184.8 4.1% Communications 247.7 156.1 58.7% 104.7 78.0 34.3% Electrification 561.1 395.4 41.9% 433.5 217.3 99.5% Total 990.2 818.7 20.9% 730.6
Slide 10: FY2023 Revenue Breakdown By Projects
FY2023 Revenue Breakdown By Projects FY2023 S$ million FY2023 FY2022 YoY% 13% Flow Business * 629.6 502.5 25.3% Large Greenfield Projects 95.5 55.2 73.0% Total 725.1 557.7 30.0% Flow Business % 87% 90% *Includes Brownfield and Small Greenfield Projects which tend to be recurring in nature 87% Flow B
Slide 11: FY2023 Revenue Breakdown By Industry Segments
FY2023 Revenue Breakdown By Industry Segments We have a sizeable base of loyal customers. Some of our customers have been with us for over 30 years, and 90% are repeat customers. FY2023 S$ million FY2023 FY2022 YoY % 8% 22% Energy - Onshore 156.0 134.6 15.9% Energy - Offshore 168.5 142.1 18.6% Infra
Slide 12: Order Intake and Order Book by Industry Segments
Order Intake and Order Book by Industry Segments Order Intake Order Book S$ million FY2023 FY2022 YoY% FY2023 FY2022 YoY% Energy 310.4 402.1 -22.8% 160.7 179.4 -10.4% Infrastructure 611.5 350.6 74.4% 539.5 279.6 92.9% Mining & Minerals 68.2 66.0 3.4% 30.4 21.0 44.7% Total 990.2 818.7 20.9% 730.6 480
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 The current global economic outlook and inflationary pressures continue to present uncertainties in the markets we operate. Despite these uncertainties in the macroeconomic environment, our strategy to focus in Electrification and Communications businesses will continue to yie
Slide 18: FY2023 Financial Performance
2 FY2023 Financial Performance Mr Eddie Foo, Group CFO
Slide 19: Group Performance
Group Performance • Revenue at a record high at S$725.1m (+30.0% yoy) led by FY2023 FY2022 Electrification & Communications business segments Revenue S$725.1m S$557.7m • Gross profit grew by 36.7% to S$199.9m, gross margin was relatively stable at 27.6% Gross margin 27.6% 26.2% • EBITDA surged by 88
Slide 20: Summary Financials
Summary Financials S$ million 2H2023 2H2022 Change FY2023 FY2022 Change Revenue 375.8 295.5 27.2% 725.1 557.7 30.0% Gross profit 104.0 73.4 41.8% 199.9 146.2 36.7% Operating expenses (84.2) (72.5) 16.1% (162.3) (138.0) 17.6% EBITDA 32.0 15.4 107.9% 62.8 33.4 88.1% Net profit attributable to equity o
Slide 21: FX Movement
FX Movement 2H2023 2H2022 Change (%) FY2023 FY2022 Change (%) USD/SGD 1.3518 1.3992 -3.39% 1.3450 1.3803 -2.56% GBP/SGD 1.6909 1.6419 2.99% 1.6653 1.7122 -2.74% AUD/SGD 0.8799 0.9417 -6.56% 0.8907 0.9622 -7.43% 21
Slide 22: Constant Currency Figures
Constant Currency Figures 2H2023 Change Change S$ million 2H2023 2H2022 Constant (%) (%) Currency Revenue 375.8 295.5 27.2% 390.5 32.1% PATMI 11.5 0.2 4795.3% 12.0 5020.7% FY2023 Change Change S$ million FY2023 FY2022 Constant (%) (%) Currency Revenue 725.1 557.7 30.0% 752.8 35.0% PATMI 22.5 4.8 372
Slide 23: FY2023 Revenue Breakdown By Business Segments
FY2023 Revenue Breakdown By Business Segments FY2023 S$ million FY2023 FY2022 YoY % 23% Automation 170.0 164.5 3.3% 46% Communications 220.5 153.1 44.0% Electrification 334.5 240.1 39.4% 30% Total 725.1 557.7 30.0% Automation Communications Electrification 23
Slide 24: FY2023 Breakdown By Geographical Segments
FY2023 Breakdown By Geographical Segments REVENUE EBIT EBIT by Geography FY2023 FY2022 35.0 30.0 28.7 25.0 22.2 3% 4% 20.0 15.0 37% 10.0 8.2 39% 57% 5.0 1.9 2.0 60% 0.0 Americas Asia Pacific EMEA (5.0) (10.0) (10.7) (15.0) Americas Asia Pacific EMEA FY2023 FY2022 S$ million FY2023 FY2022 YoY % S$ mi
Slide 25: FY2023 Breakdown By Industrial Segments
FY2023 Breakdown By Industrial Segments REVENUE EBIT EBIT by Industry FY2023 FY2022 30.0 27.3 25.0 8% 11% 20.0 15.0 45% 12.4 50% 10.0 7.5 47% 39% 4.4 5.0 4.1 0.0 Energy Infrastructure Mining & Minerals (5.0) (3.3) Energy Infrastructure Mining & Minerals FY2023 FY2022 S$ million FY2023 FY2022 YoY % S
Slide 26: Quarterly Revenue Trends
Quarterly Revenue Trends By Business, Q-o-Q (S$ million) AUTOMATION COMMUNICATIONS 44.3 44.3 44.4 47.0 61.7 58.4 40.0 39.9 38.7 55.1 35.8 42.2 41.6 45.4 38.2 31.1 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 ELECTRIFICATION GROUP 189.8 185.4 190.4 89.5 85.9 85.0 77
Slide 27: Quarterly Revenue Trends
Quarterly Revenue Trends By Geography, Q-o-Q (S$ million) AMERICAS ASIA PACIFIC 72.6 71.2 112.2 116.5 113.9 62.3 62.8 56.4 56.0 58.1 91.1 92.1 82.4 79.6 48.0 66.7 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 EMEA GROUP 189.8 185.4 190.4 6.2 5.8 5.5 154.4 159.4 5.2
Slide 28: Quarterly Revenue Trends
Quarterly Revenue Trends By Industry, Q-o-Q (S$ million) ENERGY INFRASTRUCTURE 88.1 93.1 84.1 85.9 83.9 85.4 71.9 72.4 74.4 70.7 75.7 58.1 56.7 61.8 53.6 47.3 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 MINING & MINERALS GROUP 18.2 189.8 185.4 190.4 17.6 15.9 15.1
Slide 29: Financial Position & Cash Flow
Financial Position & Cash Flow Cash S$65.9 million in 2H2023 vs S$1.0 million in 2H2022 inflow/(outflow) S$72.0 million in FY2023 vs S$9.1 million in FY2022 from operations (S$76.0) million as at 31 December 2023 vs (S$72.2) Net cash/(debt) million as at 31 December 2022 Equity attributable to S$216
Slide 30: Group Balance Sheet
Group Balance Sheet S$ million 31-Dec-23 30-Jun-23 31-Dec-22 PPE 70.3 68.7 63.5 Right-to-use assets 26.2 20.1 19.8 Intangible assets 93.4 92.3 80.8 Cash at hand & bank 39.4 23.5 34.2 Contract assets (net) 28.1 77.6 54.2 Inventories 70.8 68.6 52.0 Trade and other receivables 153.0 155.3 138.1 Trade p
Slide 31: Group Cash Flow Statement
Group Cash Flow Statement S$ million 2H2023 2H2022 FY2023 FY2022 As at beginning of the period 23.5 26.2 24.1 45.5 EBITDA 32.0 15.4 62.8 33.4 Other non-cash adjustments 1.9 (3.4) 2.6 (3.1) Changes in working capital 32.1 (11.0) 6.5 (21.2) Interest and tax (8.9) (4.9) (16.1) (9.1) Cash flow from oper
Slide 32: FY2023 Order Intake/Book By Geographical Segments
FY2023 Order Intake/Book By Geographical Segments Order Intake from Order Book from Continuing Operations Continuing Operations $990.2m $818.7m $730.6m $480.1m 300.3 242.8 433.5 299.7 217.3 157.3 188.8 104.7 78.0 224.6 229.8 192.3 184.8 165.7 FY2023 FY2022 FY2023 FY2022 1Q 2Q 3Q 4Q Automation Commun
Slide 33: Quarterly Order Intake Trends
Quarterly Order Intake Trends By Business, Q-o-Q (S$ million) AUTOMATION COMMUNICATIONS 75.8 83.8 66.4 76.8 69.2 51.1 54.3 55.9 41.0 49.4 37.7 39.6 37.9 42.8 37.4 33.3 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 ELECTRIFICATION GROUP 203.1 299.7 300.3 183.8 242.8
Slide 34: Human Resources Allocation
Human Resources Allocation No. of headcount 1,874 1,952 1,832 1,141 1,266 1,207 69 67 60 664 619 565 4Q2023 2Q2023 4Q2022 Asia Pacific EMEA Americas 34
Slide 35: Q&A
Q&A