40 CSE GLOBAL LIMITED OPERATIONS AND FINANCIAL OVERVIEW PERFORMANCE OF INDUSTRY SEGMENTS The Infrastructure segment’s revenue share increased to 47.2% over total revenue, became the largest revenue contributor in FY2023, the Energy and Mining & Mineral segment’s share registered 44.8% and 8.0% share of total revenue respectively. The Infrastructure’s segment revenue improved by 56.1% yearon-year from S$219.3 million in FY2022 to S$342.3 million in FY2023, mainly driven by revenue contributions by newly acquired subsidiaries of S$73.7 million as well as higher revenue contributions in USA. Hence, EBIT improved by 122.5% year-on-year to S$27.7 million. The revenue in the Energy segment increased by 17.3% year-on-year to S$324.6 million in FY2023, mainly attributed to more project revenues recognised in the Americas region. In tandem with higher revenues, EBIT for Energy segment increased to S$7.9 million in FY2023, reversing from a loss before interest and tax of S$3.3 million in FY2022. Mining & Mineral revenues decreased slightly by 5.6% year-on-year to S$58.1 million in FY2023. In line with revenue reduction, EBIT decreased by 5.4% to S$4.2 million due to weakened AUD exchange rate which contributed loss of S$0.4 million. CASH FLOW AND LIQUIDITY For FY2023, the Group generated a strong cash inflow from operations of S$72.0 million, compared to S$9.1 million in FY2022 due to the achievement of several large project billing milestones and stronger collections during the year. The Group’s net debt position was S$76.0 million as at end of December 2023, as compared to S$72.2 million as at end of December 2022. Net gearing ratio as at 31 December 2023 was 0.35 with adequate headroom for working capital requirements. ORDER INTAKE The Group reported a 20.9% growth in FY2023 new orders to S$990.2 million compared to S$818.7 million in FY2022, driven by strong growth in the Electrification and Communications business segments, fueled by increasing requirements in power management solutions and products, and stronger demand in critical communications services. With the increase in order intake in FY2023, this brings the order book as at 31 December 2023 to S$730.6 million, a 52.2% increase over S$480.1 million as at 31 December 2022. S$’000 2023 2022 Variance % Electrification 561,053 395,427 41.9% Communications 247,711 156,119 58.7% Automation 181,470 267,175 -32.1% Total 990,234 818,721 20.9% The Electrification business segment continues to lead the growth in order intake, growing 41.9% year-on-year from S$395.4 million in FY2022 to S$561.1 million in FY2023. Notable contracts secured during the year include major electrification projects in the United States of America (“USA”) for the design and manufacturing of power distribution centres, as well as the integration of complex electrical and control systems and equipment in the USA, which are slated for execution between 2024 and 2025. Order intake for the Communications business segment remains strong, bringing in S$91.6 million of new orders in FY2023. This 58.7% increase year-on-year is mainly attributable to new orders from recent acquisitions in the Communications business to expand its geographic footprint and market coverage. About S$181.5 million of new orders were secured by the Group’s Automation business segment in FY2023, compared to S$267.2 million in FY2022 which included one-off major contract relating to a multi-year system maintenance contract from the Singapore Government as well as maintenance of integrated control systems for an offshore facility.
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