Slide 1: F2017 Half Year Overview
F2017 Half Year Overview For personal use only F2017 Half Year Overview February 2017
Slide 2: Disclaimer
F2017 Half Year Overview For personal use only Despite anything stated in this notice or elsewhere in the document, none of the information (whether considered separately or together) constitutes an offer, invitation, solicitation, advice or recommendation with respect to the issue, purchase or sale
Slide 3: Safety Performance
Safety Performance For personal use only • Safety performance of the domestic operations continues to improve • Rolling 12 month LTIFR reduced ~ 17% • Ongoing revision of SHE management systems • Concerted efforts across the Group to limit the total number of safetyy incidents F2017 Half Year Overvi
Slide 4: Revenue & Profit
Revenue & Profit For personal use only • Operating Revenue steady at $352 $352.0 0 million (‐0.9% ( 0 9% vs pcp) • Profit before tax increased to $5.8 million (+13.6% vs pcp) • Profit after tax was $4.0 million compared to previous yyears underlying y gpprofit after tax of $3.6 million • Revenues fr
Slide 5: Financial Summary
Financial Summary For personal use only Profit & Loss 2016 2015 % Movement Revenue $m 352.0 355.1 ‐0.9% Operating Profit before Interest, Tax and $m 27.4 28.0 ‐2.4% p Depreciation excludingg Significant g Items Operating Profit before Interest and Tax $m 9.1 8.7 4.6% excluding Significant Items Prof
Slide 6: Balance Sheet
Balance Sheet For personal use only Balance Sheet 2016 2015 % Movement Total Assets $m 448 5 448.5 456 3 456.3 ‐1.7% 1 7% Net Borrowings $m 110.1 111.6 ‐1.4% Shareholders Funds $m 203.5 206.4 ‐1.4% Earnings per Share before Significant Items cents 3.3 3.0 10.0% Gearing % 34.8 35.1 0.8% F2017 Half Ye
Slide 7: Cash Flow
Cash Flow For personal use only • Operating cash flow for the half year was $19.1 million, 29.0% down on the previous corresponding period • The reduction was predominantly as a result of the timing of some large customer receipts, receipts which have subsequently been collected F2017 Half Year Over
Slide 8: Cost Reductions
Cost Reductions For personal use only • Cost reduction strategies have continued to be implemented across the business, including the rationalisation and replacement of specific fleet, employee reductions and IT solutions to improve customer service • The cost reduction strategies have had a positiv
Slide 9: Fleet
Fleet For personal use only • F2015 Capex was $47.4m • F2016 Capex was $51.1m • F2017 Capex forecast $65.9m • Whilst our average fleet life is low we continue to proactively invest in new technology F2017 Half Year Overview February 2017
Slide 10: IT Infrastructure
IT Infrastructure For personal use only • Ongoing simplification and improvement of the supporting IT infrastructure to improve customer, operational and back office functions • New roll outs of F2020 (ERP) to support New Zealand growth and Scott Corp business F2017 Half Year Overview February 2017
Slide 11: Property
Property For personal use only • Recent consolidation in WA to Hazelmere site has been successful • Planned exit of 3rd party lease at Altona (Chemtrans) with capital works at our company owned Truganina site to be completed circa June 2017 F2017 Half Year Overview February 2017
Slide 12: Aero Refuellers
Aero Refuellers For personal use only • Aero Refuellers was acquired in November 2015 • It provides a further diversification of our revenue base • The operational skill set is aligned to our strengths • Fully integrated and performing well • It has strong potential organic growth opportunities F201
Slide 13: Scott's Transport Integration (STI)
Scott’s Scott s Transport Integration (STI) For personal use only • The merger was completed on 30 January 2017 • Integration process is advanced and progressing • STI was established by the late Allan Scott OAM more than 60 years ago and is one of Australia’s largest privately owned transport compa
Slide 14: Trading Performance
Trading Performance For personal use only • Commodity prices have improved significantly during the last quarter of 2016. To date we have not realised any material i l increase i in i associated i d activity i i • The pperformance of the east coast operations p duringg the first half has improved; t
Slide 15: Trading Performance
Trading Performance For personal use only • During the half year period we were awarded approximately $35.4m of new annualised contract revenues. The h majority j i off these h contracts will ill commence over the balance of FY17 • There have been no material contract losses during this period; we h
Slide 16: Share Performance
Share Performance For personal use only F2017 Half Year Overview February 2017
Slide 17: Dividend
Dividend For personal use only • A fully franked Interim Dividend of 1.5 cents per share (2016: 1.5 cents per share) has been declared • Will be paid on 4 April 2017 • DRP is active F2017 Half Year Overview February 2017
Slide 18: Outlook
Outlook For personal use only • Providing earnings guidance for the second half remains difficult • Our new contracts that have recently commenced will provide additional revenues in the second half • We currently anticipate FY17 second half earnings will be l lower than h the h FY17 fifirst h half,
Slide 19: Information
Information For personal use only Mr. Bryan Walsh Mr. Paul Sarant Chief Financial Officer Managing Director / CEO K&S Corporation Ltd K&S Corporation Ltd Ph: (08) 8721 1706 Ph: (03) 8744 3528 bryan.walsh@ksgroup.com.au paul.sarant@ksgroup.com.au F2017 Half Year Overview February 2017