CSE Global Limited · SGX:544
CSE Global — Q4 2017 Earnings Presentation
33 slides from CSE Global's earnings presentation, Feb 26, 2018
Slide 1: 4Q/FY2017 Results Briefing
4Q/FY2017 Results Briefing CSE Global Limited Fullerton Hotel 26 February 2018
Slide 2: Agenda
Agenda 1. Address by CEO 2. Financial Performance by CFO 3. Q&A 2
Slide 3: Address by CEO
Address by CEO CSE
Slide 4: Business Overview
Business Overview • 2017 was a challenging year Negatives • Lower gross margins @ 26%, new norm • Negative operating cash flow, to fund project Positives • Good new order received of S$381.9M, strong brownfield & small greenfield projects flow • Good growth infrastructure business 4
Slide 5: Revenue
Segmentation of Revenue by Sector 400.0 $362.4m 350.0 14.0% $317.8m 300.0 4.0% 250.0 $246.2m 68% Revenue $236.8m 200.0 75% 150.0 $25.7m 100.0 7% $22.0m 16.5% 7% 50.0 $90.5m $58.9m 53.6% 25% 19% 0.0 2016 2017 Infrastructure Mining Oil & Gas
Slide 6: Further Information on 2017 Revenue
Further Information on 2017 Revenue Oil & Gas Communication Australia 2017, $362.4m Onshore, Offshore, $42.6m $122.3m $123.9m 50% 50% $90.5m 25% $25.7m $246.2m 7% 68% Infrastructure Mining Oil & Gas
Slide 7: Update
Update • Increased presence – 13 offices in United States of Americas – 11 offices in Australia/New Zealand • Grown Mining & infrastructure – Revenue 32% in 2017 (16% in 2015 & 26% in 2016) – EBIT 76% in 2017 (24% in 2015 & 37% in 2016) • Diversify into midstream and downstream O&G business and expa
Slide 8: Key activities
Key activities • Generate cash flow • Cost control • Continue to focus on building small greenfield projects and brownfield projects • Build the footprint in Americas and Australia through acquisitions and new setup 8
Slide 9: Business Outlook
Business Outlook Summary • The current oil/gas and commodity prices continue to influence investment decisions and customers remain highly focused on cost control and cash flow generation. • With a current outlook of the higher flow orders in greenfield and brownfield orders, the Group expects a muc
Slide 10: Dividends (Proposed)
Dividends (Proposed) FY2015 FY2016 FY2017 Dividends (Cents): Interim 1.25 1.25 1.25 Special Interim - - - Final 1.25 1.5 1.0# Special 0.25 - 0.5# Total 2.75 2.75 2.75 Payment Date: 18 May 2018 Book Closure: 4 May 2018 AGM: 19 April 2018 #: proposed and subject to approval at AGM 10
Slide 11: 4Q 2017 & FY 2017 Financial Performance
4Q 2017 & FY 2017 Financial Performance 11
Slide 12: 4Q 2017 Financial Overview Continuing Operations
4Q 2017 Financial Overview Continuing Operations Revenue Grew by 49.1% to S$116.7m Gross Margin Decreased to 24.8% from 35.1% in 4Q16 EBIT Decreased by 21.1% to S$6.5m compared to S$8.3m in 4Q16 PATNCI before EI Decreased to S$4.3m from S$6.2m in 4Q16 PATNCI after EI Loss of S$37.3m in 4Q17 EPS -7.2
Slide 13: FY 2017 Financial Overview Continuing Operations
FY 2017 Financial Overview Continuing Operations Revenue Grew by 14.0% to S$362.4m Gross Margin Decreased to 26.0% from 31.7% in FY16 EBIT Decreased by 28.8% to S$19.6m compared to S$27.6m in FY16 PATNCI before EI Decreased to S$13.3m from S$21.2m in FY16 PATNCI after EI Loss of S$45.1m in FY17 EPS
Slide 14: FY 2017 Financial Overview: Financial Position & Cashflow
FY 2017 Financial Overview Continuing Operations Financial Position & Cashflow Cash outflow from operations of S$2.9m in 4Q17 and S$2.3m in FY17, mainly due to funding of working capital for the large greenfield projects secured in the Americas regions Net Cash of S$15.5m at 4Q17 vs S$70.2m at 4
Slide 15: Summary Financials 4Q And FY 2017
Summary Financials 4Q And FY 2017 S$’m 4Q 2017 4Q 2016 Change FY 2017 FY 2016 Change Revenue 116.7 78.3 49.1% 362.4 317.8 14.0% Gross Profit 28.9 27.5 5.4% 94.1 100.7 -6.5% Gross margin (%) 24.8% 35.1% -29.3% 26.0% 31.7% -18.0% Operating PATMI before exceptional items 4.3 6.2 -29.8% 13.3 21.2 -37.1%
Slide 16: FY 2017 Financial Overview: Exceptional Items
FY 2017 Financial Overview Continuing Operations FY2017 S$‘M PATNCI before Exceptional Items 13.3 Exceptional items: Less: One-off settlement costs (16.8) Impairment of Receivables (11.7) Impairment of Goodwill/Investments, net of NCI (26.4) Write down of Deferred Tax Assets (3.5) (58.5) PATNCI afte
Slide 17: 4Q & FY 2017 FX Movement
4Q & FY 2017 FX Movement Variance Variance 4Q 2017 4Q 2016 FY 2017 FY 2016 (%) (%) USD/SGD: 1.3577 1.3949 -2.67% 1.3856 1.3824 0.23% GBP/SGD: 1.8084 1.7480 3.46% 1.7811 1.8928 -5.90% AUD/SGD: 1.0444 1.0566 -1.15% 1.0584 1.0228 3.48% 17
Slide 18: 4Q & FY2017 Constant Currency
4Q & FY2017 Constant Currency 4Q 2017 S$M 4Q 2017 4Q 2016 Variance (%) Constant Variance (%) Currency Revenue: 116.7 78.3 49.1% 119.1 52.1% PATMI: 4.3 6.2 -29.8% 4.4 -29.3% FY 2017 S$M FY 2017 FY 2016 Variance (%) Constant Variance (%) Currency Revenue: 362.4 317.8 14.0% 358.8 12.9% PATMI: 13.3 21.2
Slide 19: Revenue by Geographical Region – 4Q 2017
Revenue by Geographical Region – 4Q 2017 S$'m Q4 2017 Q4 2016 Var % Americas 74.2 34.2 117.0% EMEA 4.8 9.4 -49.1% Asia Pacific 37.8 34.7 8.7% Total 116.7 78.3 49.1% Q4 2017 Q4 2016 32% Americas 44% Americas 44% EMEA EMEA Asia Pacific Asia Pacific 64% 4% 12% 19
Slide 20: Revenue by Geographical Region – FY 2017
Revenue by Geographical Region – FY 2017 S$'m FY 2017 FY 2016 Var % Americas 206.2 159.7 29.1% EMEA 23.5 41.4 -43.2% Asia Pacific 132.6 116.7 13.7% Total 362.4 317.8 14.0% FY 2017 FY 2016 37% Americas 37% Americas EMEA EMEA 57% 50% Asia Pacific Asia Pacific 6% 13% 20
Slide 21: EBIT by Geographical Region – 4Q 2017
EBIT by Geographical Region – 4Q 2017 S$'m Q4 2017 Q4 2016 Var % Americas 6.0 (0.1) N.M. EMEA (2.6) 2.6 N.M. Asia Pacific 3.0 5.7 -46.7% Total 6.5 8.3 -21.1% 7.0 6.0m 6.0 5.7m 5.0 4.0 3.0m 3.0 2.6m Q4 2017 2.0 Q4 2016 1.0 -0.1m 0.0 Americas EMEA Asia Pacific (1.0) (2.0) (3.0) -2.6m 21
Slide 22: EBIT by Geographical Region – FY 2017
EBIT by Geographical Region – FY 2017 S$'m FY 2017 FY 2016 Var % Americas 6.4 7.2 -12.1% EMEA (4.7) 6.5 N.M. Asia Pacific 17.9 13.8 29.9% Total 19.6 27.6 -28.8% 20.0 17.9m 13.8m 15.0 10.0 7.2m 6.4m 6.5m FY 2017 5.0 FY 2016 0.0 Americas EMEA Asia Pacific (5.0) -4.7m (10.0) 22
Slide 23: Revenue by Industry – FY 2017
Revenue by Industry – FY 2017 S$'m FY 2017 FY 2016 Var % Mining & Mineral 25.7 22.0 16.5% Infrastructure 90.5 58.9 53.6% Oil & Gas 246.2 236.8 4.0% Total 362.4 317.8 14.0% FY 2017 FY 2016 7% 7% 19% 25% Mining & Mineral Mining & Mineral Infrastructure Infrastructure Oil & Gas Oil & Gas 68% 74% Infras
Slide 24: EBIT by Industry – FY 2017
EBIT by Industry – FY 2017 S$'m FY 2017 FY 2016 Var % Mining & Mineral (0.2) 1.9 N.M. Infrastructure 15.2 8.4 81.6% Oil & Gas 4.7 17.3 -73.1% Total 19.6 27.6 -28.8% 20.0 18.0 17.3m 16.0 15.2m 14.0 12.0 10.0 FY 2017 8.4m 8.0 FY 2016 6.0 4.7m 4.0 1.9m 2.0 -0.2m 0.0 Mining & Mineral Infrastructure Oil
Slide 25: Revenue by Geographical Region – Qtrly Trends
Revenue by Geographical Region – Qtrly Trends S$'m Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Americas 74.2 53.9 40.9 37.2 34.2 38.9 39.2 47.4 EMEA 4.8 1.6 8.3 8.8 9.4 11.1 8.9 12.0 Asia Pacific 37.8 30.1 36.3 28.5 34.7 30.9 26.2 24.9 Total 116.7 85.6 85.5 74.5 78.3 81.0 74.3 84
Slide 26: Revenue by Industry – Qtrly Trends
Revenue by Industry – Qtrly Trends S$'m Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Mining & Mineral 11.9 2.7 9.1 2.0 9.9 6.7 2.8 2.7 Infrastructure 24.7 23.4 23.3 19.1 14.1 16.4 15.5 12.9 Oil & Gas 80.1 59.4 53.2 53.5 54.4 57.9 56.0 68.6 Total 116.7 85.6 85.5 74.5 78.3 81.0 74.3
Slide 27: FY 2017 Group Balance Sheet
FY 2017 Group Balance Sheet S$M 31-Dec-17 30-Sep-17 30-Jun-17 31-Mar-17 31-Dec-16 Cash at Hand & Bank 46.9 47.4 53.9 75.8 90.8 Quoted Investments 1.3 1.3 9.4 9.4 7.4 Work in Progress (Net) 53.7 41.4 38.4 42.3 30.9 Inventories 14.6 18.4 19.3 16.8 14.7 Trade Receivable 79.1 85.3 92.8 81.0 83.0 Other R
Slide 28: 4Q /FY 2017 Group Cash Flow Statement
4Q /FY 2017 Group Cash Flow Statement S$'m Q4 2017 Q4 2016 FY 2017 FY 2016 As at beginning of the period 47.4 71.2 90.8 109.7 Net Operations (2.9) 1.0 (2.3) 61.9 Interest income/(expense) and tax 0.1 0.1 (4.8) (3.5) expenses One-off settlement costs - - (16.6) - Capital Expenditure (Net) (1.3) (1.3)
Slide 29: 4Q/FY 2017 Orders
4Q/FY 2017 Orders New orders Outstanding orders $381.9m $286.6m $175.0m $207.6m $163.1m 86.9 16.1 19.3 4Q 86.4 57.7 86.9 43.2 EMEA 3Q The Americas 71.0 2Q 70.8 30.9 Asia Pacific 1Q 90.7 83.2 104.5 84.7 89.0 117.9 74.9 FY 2017 FY 2016 4Q 2017 3Q 2017 4Q 2016
Slide 30: Order Intake by Industry
Order Intake by Industry S$'m Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Oil & Gas 59.1 54.8 57.8 86.4 43.3 49.6 39.5 62.2 Mining 6.5 4.0 6.0 2.4 1.9 4.2 23.8 2.0 Infrastructure 21.2 27.6 27.0 29.0 12.5 17.0 19.9 10.7 Total 86.9 86.4 90.7 117.9 57.7 70.8 83.2 74.9 30
Slide 31: Backlog by Industry
Backlog by Industry S$'m Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 Oil & Gas 78.2 101.0 106.9 103.1 75.2 82.6 85.9 104.5 Mining 4.5 10.0 8.7 11.9 10.7 20.6 25.8 4.7 Infrastructure 92.3 96.6 92.4 89.2 77.1 75.8 74.9 70.5 Total 175.0 207.6 207.9 204.2 163.1 179.0 186.6 179.7 31
Slide 32: Human Resource
Human Resource 4Q 2017 3Q 2017 4Q 2016 The Americas 642 633 526 EMEA Asia Pacific 419 459 432 1,104 1,106 1,036 32
Slide 33: Q&A Thank You
Q&A Thank You Questions & Answers 33