Slide 1: FY2011 Results
For personal use only FY2011 Results August 2011
Slide 2: Disclaimer
For personal use only Disclaimer 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 of any shar
Slide 3: FY2011 Results
For personal use only FY2011 Results 3 www.ksgroup.com.au
Slide 4: FY2011 Highlights
For personal use only FY2011 Highlights Revenue growth of 15.2% to $523.4m EBITDA increased from $51.5m $51 5m to $54.6m $54 6m NPAT of $14.8m EPS to 18.3cps Successful acquisition of Regal Transport Group Perth rail terminal completed Fullyy franked final dividend of 5.0cps Successfully completed a
Slide 5: FY2011 Customer Momentum
For personal use only FY2011 Customer Momentum Weaker trading conditions on the east coast of Australia. Higher value of the $A has significantly affected the demand for locally man fact red goods manufactured goods. Extreme weather conditions impacted January/February trading significantly.
Slide 6: FY2011 Customer Momentum
For personal use only FY2011 Customer Momentum Lower steel volumes on back of reduced production, inventory de-stocking and a change in product and distribution mix. Changes in the distrib distribution tion mi mix of OneSteel’s production prod ction from an interstate linehaul activity to a lowe
Slide 7: FY2011 Customer Momentum
For personal use only FY2011 Customer Momentum Operating revenues for the year was $523.4 million, an increase of 15.2%. The increase was a direct result of the addition of Regal Transport and Pacific Transport. Transport The traditional east coast business revenues declined by 6.3% due to the
Slide 8: What are We doing??
For personal use only What are We doing?? Management is extremely focussed on winning new business and reducing operating costs costs. In December 2010 we merged the operations of both Regal Transport and Pacific Transport into a single large North West focussed business unit. During the merge
Slide 9: What are We doing??
For personal use only What are We doing?? This fleet rationalisation will improve the productivity and utilisation of our equipment. All non critical capital expenditure will be deferred until the economy shows signs of recovery. This will result in a reduction of our overall fixed costs. Va
Slide 10: Full Year Result
For personal use only Full Year Result Full Year ended 30 June 2011 2010 Variance Revenue ($m) 523.4 454.3 15.2% EBITDA ($m) 54.6 51.5 6.0% EBITDA margin 10.4% 11.3% EBIT ($m) 29.5 31.3 ‐5.8% EBIT margin 5.6% 6.9% Less Net Interest ($m) 8.3 5.0 Net Profit Before Tax ($m) 21.2 26.3 ‐19.4% Less Tax ((
Slide 11: FY2011 Segment Performance
For personal use only FY2011Segment Performance K&S Pacific/Regal K&S Full Year ended 30 June 2011 Australia Transport K&S Fuels DTM New Zealand Revenue ($m) 312.4 72.4 61.7 54.5 22.3 EBITDA ($m) 38.5 9.2 1.4 2.5 3.0 EBITDA margin 12.3% 12.7% 2.3% 4.6% 13.5% EBIT ($m) 19.7 5.5 1.3 2.4 0.6 EBIT margi
Slide 12: 5-Year Underlying EBIT
5-Year Underlying* EBIT For personal use only $M 35 30 25 16.9 17.3 13.2 11.5 14 8 14.8 20 2H 1H 15 10 16.2 16.0 15.0 16.3 13.4 5 0 2007 2008 2009 2010 2011 * Underlying EBIT excludes significant one-off non-recurring items. 12 www.ksgroup.com.au
Slide 13: Balance Sheet Summary
For personal use only Balance Sheet Summary As at ($m) 30 June 2011 30 June 2010 Cash and equivalents 9.7 12.0 Receivables 67.5 56.7 Inventories 3.0 2.7 Oh Other 53 5.3 48 4.8 Strong Balance Sheet Total Current Assets 85.5 76.2 Property, Plant & Equipment 222.0 197.2 position following Intangibles
Slide 14: Gearing
For personal use only Gearing Key Liquidity Ratios As at 30 June 2011 As at 30 June 2010 Net Debt $76.7m $52.3m Gearing (Net Debt /Net Debt + Shareholders’ Funds) 26.4% 22.6% Gearing (Net Debt / NTA) 53.9% 39.0% 14 www.ksgroup.com.au
Slide 15: Dividend Summary
For personal use only Dividend Summary Interim dividend of 5.0 cents per share: – Record date for interim dividend is 17 October 2011. – Interim dividend payable on 31 October 2011. DRP remains active with a 2.5% price discount. 15 www.ksgroup.com.au
Slide 16: 5-Year Dividend Payment History
For personal use only 5-Year Dividend Payment History Cents per share cents 16 14 12 8 7 7 10 5 Final Interim 8 5 6 4 8 7 7 7 5 2 0 2007 2008 2009 2010 2011 16 www.ksgroup.com.au
Slide 17: Key Customers
For personal use only Key Customers K&S has a large and diversified customer base. 17 www.ksgroup.com.au
Slide 18: K&S Nationwide
For personal use only K&S Nationwide K&S operates extensively throughout Australia and New Zealand. www.ksgroup.com.au 18
Slide 19: Acquisition Impact
For personal use only Acquisition Impact Integration of Pacific Transport’s and Regal Transport Group’s operations has been completed. Strong presence and infrastructure in the Pilbara region which is experiencing massive growth. Depots in Port Hedland, Hedland Karratha and Newman which will c
Slide 20: Perth Terminal
For personal use only Perth Terminal New rail terminal in the Pacific National rail yard in Perth. Commenced operation mid January 2011. Development is part of 5 year contract between Pacific National and K&S which hi h was signed i d iin 2009 2009. Total investment was $11.7m. The Th rail
Slide 21: Our Safety Target Remains Zero Harm
For personal use only Our Safety Target Remains Zero Harm Lost Time Injuries (LTIFR) per Financial Year 80 70 60 50 40 30 20 10 0 1999/2000 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 21 www.ksgroup.com.au
Slide 22: Corporate Strategy
For personal use only Corporate Strategy Our strategy is focused on achieving continued growth and further enhancing our business. Specific initiatives include: – Development of alliances and long term customer relationships and partnerships with large g enterprises p that value our service. – D
Slide 23: Carbon Emissions
For personal use only Carbon Emissions K&S generated 0.115m tonne CO2e in FY2010. Carbon tax of $23 per tonne rising at 2.5% per year. Road transport industry excluded until July 2014 2014. Targeting 500 largest polluters. Most exposed industries, steel, aluminium, zinc and pulp and paper.
Slide 24: FY2012 Outlook
For personal use only FY2012 Outlook K&S is well positioned for the future with a strong balance sheet and low gearing. – The economy is uncertain and the high A$ will continue to impact Australian manufacturers. – The immediate outlook for the domestic steel industry is expected to remain flat fo
Slide 25: Contacts
K&S For personal use only Contacts Mr Legh Winser Mr Bryan Walsh Managing Director Chief Financial Officer Ph: 0417 885 861 Ph: 0402 899 889 legh.winser@ksgroup.com.au bryan.walsh@ksgroup.com.au 25 www.ksgroup.com.au