K & S Corporation Limited · ASX:KSC
K & S — FY2008 Earnings Presentation
17 slides from K & S's earnings presentation, Oct 15, 2008
Slide 1: Investor Presentation – October 2008
Investor Presentation – October 2008 For personal use only Presented by: Legh Winser – Managing Director Bryan Walsh – Chief Financial Officer
Slide 2: K&S – Agenda
For personal use only K&S – Agenda • Full year financial results. • Strategy • Brookes Transport • Outlook
Slide 3: K&S – Full Year Result
For personal use only K&S – Full Year Result • Revenue $466.1 million – 11.5%↑ – Australian Operations 12.2%↑ – New Zealand Operations 0.2% ↓ • EPS 28.6 cents per share – 12.8% ↑ • Profit after tax of $19.7 million – 15.4%↑ • Normalised profit after tax excluding non trading items from previous year
Slide 4: Full Year Result
For personal use only K&S – Full Year Result • Normalised profit before tax excluding non trading items from previous year results reached $28.0 million – $4.5 million ↑. • Improved earnings have come from synergies following DTM acquisition in November 2006. • Post acquisition review identified sav
Slide 5: Full Year Result
For personal use only K&S – Full Year Result • Our rail freight forwarding business has had an excellent year, with productivity improvement due to growth in its customer base. • The majority of our business units performed to expectation. • Group EBIT margin increased to 7.1% from 7.0% in the perio
Slide 6: Full Year Result
For personal use only K&S – Full Year Result • Fully franked final dividend of 8.0 cents per share – making the total dividend for the year 16 cents an increase of 14.3%. • Represents a payout ratio of 56.0% and a yield of 5.3%. • Dividend will be paid on 31 October 2008, with DRP available for shar
Slide 7: Financial Overview
For personal use only K&S – Financial Overview 2007 2008 % Operating Revenue $m 418.0 466.1 11.5 Profit after tax $m 17.0 19.7 15.4 Normalised PAT $m 16.5 19.7 19.2 Normalised EBIT $m 28.5 33.4 17.2 Earnings Per Share € 25.3 28.6 12.8 Dividend Per Share € 14.0 16.0 14.3 Gearing % 44.6 46.5 (3.8) Los
Slide 8: Operating Revenue
For personal use only Operating Revenue $M 450 400 350 242.4 202.7 300 183.9 Full Year 250 170.5 Interim 152.2 200 150 215.3 223.7 100 183.2 170.3 143.6 50 0 2004 2005 2006 2007 2008
Slide 9: Normalised profit after tax
For personal use only $M Normalised profit after tax 20 15 9.9 8.6 7.4 Full Year 7.6 Interim 10 6.3 5 9.8 8.2 7.9 7.6 6.0 0 2004 2005 2006 2007 2008
Slide 10: Normalised EBIT
For personal use only Normalised EBIT $M 35 30 25 17.0 14.9 20 12.6 Full Year 13.0 Interim 15 10.8 10 16.4 13.4 13.6 11.5 5 9.8 0 2004 2005 2006 2007 2008
Slide 11: Dividends
For personal use only Dividends cents 16 14 12 8.00 7.00 7.00 10 7.00 Final 8 6.00 Interim 6 4 8.00 7.00 7.00 6.50 5.00 2 0 2004 2005 2006 2007 2008
Slide 12: Brookes Transport
For personal use only K&S – Brookes Transport • K&S acquired Brookes Transport. 1 February 2008. • Brookes have a strong focus on the timber industry in Western Australia. • Their customers include:- – Laminex, Wesbeam, WA Plantations, Wespine and Dynea.
Slide 13: Brookes Transport
For personal use only K&S – Brookes Transport • Brookes have revenues of $22 million per year with further growth opportunities. • Synergies will be extracted as we complete the integration process. • Acquisition will be earnings positive to K&S.
Slide 14: Strategy
For personal use only K&S - Strategy We have a large and diversified customer base. One Steel Coca Cola PaperlinX Carter Holt Harvey Norske Skog Capral Laminex Holden Alcoa Orrcon Air Liquide QMAG
Slide 15: Strategy
For personal use only K&S - Strategy • We continue to evaluate potential acquisition opportunities. • We see growth in revenues in Australia. • There are further industry consolidation opportunities. • We continue to actively tender for new business. • Since being granted self insurance under the Co
Slide 16: Strategy
For personal use only K&S - Strategy • Environmental issues have become a major area of activity. • We are a member of the Australian Greenhouse Challenge Plus Programme. • Under the Greenhouse Challenge Programme K&S is committed to actively reduce our carbon footprint and maintain an inventory of
Slide 17: Outlook
For personal use only K&S - Outlook • The major industry sectors in which we operate have performed well during the year. • Economic conditions that currently prevail may lead to uncertain times ahead. • We are confident that we are well placed to deal with the uncertain trading conditions.