CSE Global Limited · SGX:544
CSE Global — Q1 2016 Earnings Presentation
24 slides from CSE Global's earnings presentation, May 11, 2016
Slide 1: 1Q 2016 Results Briefing
1Q 2016 Results Briefing CSE Global Limited Fullerton Hotel 11 May 2016
Slide 2: Agenda
Agenda 1. 1Q 2016 Financial Overview 2. Business Overview and Outlook 3. Q&A 2
Slide 3: 1Q 2016 Financial Review
1Q 2016 Financial Review CSE
Slide 4: 1Q 2016 Financial Overview Continuing Operations
1Q 2016 Financial Overview Continuing Operations Revenue declined by 16.5% to S$84.2m yoy, mainly due to Asia-Pacific and the Americas regions Gross profit decreased by 16.2% yoy or S$4.6m to S$24.1m Gross margins in 1Q16 stable at 28.6% vs 28.5% in 1Q15 PATMI from continuing operations at S
Slide 5: Financial Position & Cashflow
1Q 2016 Financial Overview Continuing Operations Financial Position & Cashflow Equity attributable to owners of the Company were S$238.6m at 31 March 2016 vs S$241.6m at 31 December 2015 Return on Equity annualised at 9.2% NAV per share at 31 March 2016 was lower at 46.24 cents vs 46.82 cents
Slide 6: Summary Financials 1Q 2016
Summary Financials 1Q 2016 S$’m 1Q 2016 1Q 2015 Change Revenue 84.2 100.8 -16.5% Gross Profit 24.1 28.7 -16.2% EBIT 6.4 10.0 -36.2% PATMI from continuing operations 5.5 7.0 -20.9% Profit attributable to shareholders 5.5 7.6 -27.5% Gross margin (%) 28.6% 28.5% 0.3% EBIT margin (%) 7.6% 10.0% -23.6% N
Slide 7: 1Q 2016 FX Movement
1Q 2016 FX Movement 1Q 2016 1Q 2015 Variance (%) USD/SGD: 1.4189 1.3613 4.24% GBP/SGD: 2.0528 2.0526 0.01% AUD/SGD: 1.0019 1.0748 -6.78% 7
Slide 8: Constant Currency
1Q 2016 Constant Currency 1Q 2016 S$M 1Q 2016 1Q 2015 Variance (%) Constant Variance (%) Currency Revenue: 84.2 100.8 -16.5% 82.7 -18.0% PATMI: 5.5 7.6 -27.5% 5.4 -28.9% 8
Slide 9: Revenue by Geographical Region
Revenue by Geographical Region S$'m Q1 2016 Q1 2015 Var % Americas 47.4 58.8 -19.4% EMEA 11.9 8.7 37.7% Asia Pacific 24.9 33.3 -25.4% Total 84.2 100.8 -16.5% Q1 2016 Q1 2015 30% 33% Americas EMEA 56% Asia Pacific 58% 14% 9% 9
Slide 10: EBIT by Geographical Region
EBIT by Geographical Region S$'m Q1 2016 Q1 2015 Var % Americas 2.9 5.1 -42.0% EMEA 0.1 0.6 -93.4% Asia Pacific 3.4 4.3 -20.9% Total 6.4 10.0 -36.2% Q1 2016 Q1 2015 Americas 46% 43% EMEA 53% 50% Asia Pacific 7% 1% 10
Slide 11: Revenue by Industry
Revenue by Industry S$'m Q1 2016 Q1 2015 Var % Mining & Mineral 1.7 2.0 -15.8% Infrastructure 14.5 13.4 8.4% Oil & Gas 68.0 85.4 -20.4% Total 84.2 100.8 -16.5% Q1 2016 Q1 2015 2% 2% 13% 17% Mining & Mineral Infrastructure Oil & Gas 81% 85% Infrastructure: Power, Water, Waste Treatment & Transportati
Slide 12: EBIT by Industry
EBIT by Industry S$'m Q1 2016 Q1 2015 Var % Mining & Mineral 0.1 0.1 -20.9% Infrastructure 2.1 1.9 10.0% Oil & Gas 4.2 8.0 -47.2% Total 6.4 10.0 -36.2% Q1 2016 Q1 2015 2% 1% 19% 32% Mining & Mineral Mining & Mineral Infrastructure Infrastructure Oil & Gas Oil & Gas 66% 80% Infrastructure: Power, Wat
Slide 13: 1Q 2016 Group Balance Sheet
1Q 2016 Group Balance Sheet S$M 31-Mar-16 31-Dec-15 30-Sep-15 30-Jun-15 31-Mar-15 Cash at Hand & Bank 76.3 109.7 66.2 59.5 67.0 Work in Progress (Net) 37.7 47.8 76.5 88.0 73.2 Inventories 12.7 11.8 17.3 17.0 13.9 Trade Receivable 90.6 99.6 104.5 88.0 94.9 Other Receivable 8.8 10.6 10.3 10.8 13.8 Tra
Slide 14: Group Cashflow
1Q 2016 Group Cashflow S$'m Q1 2016 Q1 2015 As at beginning of the period 109.7 66.9 Net Operations 19.7 (1.4) Capital Expenditure (Net) (3.0) (0.8) Payment for subsidiary/assets acquired (10.4) (0.5) Bank Loans (36.5) 0.5 Dividends - - Net effect of FX on cash (3.2) 2.3 As at end of period 76.3 67.
Slide 15: Human Resource Growth
Human Resource Growth 1Q 2016 4Q 2015 1Q 2015 The Americas 749 685 610 EMEA Asia-Pacific 454 507 477 1,130 1,230 1,333 15
Slide 16: Orders
1Q 2016 Orders New orders Outstanding orders $74.9m $351.0m $179.6m $192.7m $252.5m 70.8 61.0 57.7 62.4 4Q 87.4 3Q 32.3 82.1 EMEA 42.8 2Q The Americas 1Q 94.4 Asia Pacific 89.6 87.5 109.4 98.4 74.9 FY 2016 FY 2015 1Q 2016 4Q 2015 1Q 2015 16
Slide 17: Business Overview & Outlook
Business Overview & Outlook 17
Slide 18: Business Outlook - Overall
Business Outlook - Overall • Business environment continues to be difficult • Few large greenfield projects opportunities • Consolidations by producers and service providers have started but slow – oversupply remains. • Operating capital expenditures by producers remains resilient 18
Slide 19: Business Outlook – Overall 2
Business Outlook – Overall 2 • Standardisation by industries to lower cost • Long-term partnership forming for supply and demand 19
Slide 20: Large greenfield projects revenues
Large greenfield projects 500 Millions 400 Total Revenues 300 Non-Large Greenfield Project Revenues 200 100 FY2011 FY2012 FY2013 FY2014 FY2015 FY2011 FY2012 FY2013 FY2014 FY2015 Total Revenues (in million) 370.1 448.2 416.0 433.8 412.0 Small Greenfield & Brownfield Project Revenues 322.4 354.2 344.4
Slide 21: Revenue by Industry Continuing Operations
Revenue by Industry Continuing Operations S$'m FY2015 Mining & Mineral 8.2 Infrastructure 60.2 Oil & Gas 343.6 Total 412.0 FY2015 2% 15% Mining & Mineral Infrastructure Oil & Gas 83% 21
Slide 22: Plan Going Forward
Plan Going Forward - Generate cashflow - 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 - Cost control Be Prepared For The Turnaround 22
Slide 23: Business Outlook
Business Outlook Summary Conditions in the industry sectors which the Group operates remain challenging. Low oil and gas and commodity prices continue to influence investment decisions and customers remain highly focused on cost control. The Group will continue to support and service its existing in
Slide 24: Questions & Answers Thank You
Questions Questions & Answers Thank You 24