Slide 1: FY2010 Results
For personal use only FY2010 Results September 2010
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: FY2010 Result
For personal use only FY2010 Result 3 www.ksgroup.com.au
Slide 4: FY2010 Highlights
For personal use only FY2010 Highlights Revenue growth of 3.2% to $454.3 million Underlying EBITDA margin increased from 10 10.7% 7% to 11 11.5% 5% Underlying NPAT growth of 18.5% to $19.4 million Underlying EPS growth of 16.5% to 27.5 cps Record 2H10 performance Successful acquisitions of Pacific T
Slide 5: FY2010 Customer Momentum
For personal use only FY2010 Customer Momentum Steel business produced strong organic growth in 2H10 with increased activity levels from OneSteel, BlueScope and Orrcon. Significant contract renewals with OneSteel and Laminex for 5 years. Won substantial contracts with BlueScope and Chep for th
Slide 6: FY2010 Acquisition Highlights
For personal use only FY2010 Acquisition Highlights The acquisitions of Pacific Transport and Regal Transport Group provide a strong footprint and critical mass to target the growth sectors of oil, gas and resource projects in Western Australia. Completed acquisition of Pacific Transport in Janu
Slide 7: FY2010 Operational Highlights
For personal use only FY2010 Operational Highlights K&S undertook 3 major j operational p initiatives in FY2010: – Consolidated the Sydney operations onto adjoining properties. This will generate significant operational efficiencies and productivity improvements. – Commenced the development of a n
Slide 8: Full Year Result
For personal use only Full Year Result Year ended 30 June 2010 2009 Variance Revenue ($m) 454.3 441.0 3.2% Underlying EBITDA ($m) 52.4 47.4 10.6% EBITDA margin 11.5% 10.7% Underlying EBIT ($m) 32.3 27.5 17.3% EBIT margin 7.1% 6.2% Underlying Net Profit After Tax ($m) 19.4 16.4 18.5% Non‐recurring It
Slide 9: Half Yearly Comparison
For personal use only Half Yearly Comparison Year ended 30 June 2H2010 1H2010 2H2009 1H2009 Revenue ($m) 237.1 217.2 192.7 248.3 Underlying EBITDA ($m) 27 4 27.4 25 0 25.0 20 7 20.7 26 7 26.7 EBITDA margin 11.6% 11.5% 10.8% 10.7% Underlying EBIT ($m) 17.3 15.0 11.5 16.0 EBIT margin 7.3% 6.9% 6.0% 6.
Slide 10: FY2010 Earnings Analysis
For personal use only FY2010 Earnings Analysis S Strong o g improvement p o e e in p profitability o ab y a and d key ey pe performance o a ce measures easu es ssince ce 1H09. Underlying NPAT (excluding non-recurring items) in 2H10 was a record $10.3 million, representing Underlying EPS of 14.4
Slide 11: FY2010 Segment Performance
For personal use only FY2010 Segment Performance K&S Pacific K&S Year ended 30 June 2010 Australia Transport K&S Fuels DTM New Zealand Revenue ($m) 317.7 10.8 58.6 46.8 20.1 Underlying EBITDA ($m) 44.3 1.4 1.7 2.2 2.8 EBITDA margin 13.9% 13.0% 2.9% 4.7% 13.9% Underlying EBIT ($m) 27.3 0.8 1.6 2.1 0.
Slide 12: 5-Year Financial Performance
For personal use only 5-Year Financial Performance Year ended 30 June 2010 2009 2008 2007 2006 Revenue ($m) 454.3 441.0 466.1 418.0 367.5 Underlying EBITDA ($m) 52.4 47.4 52.4 47.2 41.4 EBITDA margin 11.5% 10.7% 11.2% 11.3% 11.3% Underlying EBIT ($m) 32.3 27.5 33.1 28.2 25.6 EBIT margin 7.1% 6.2% 7.
Slide 13: 5-Year Underlying EBIT
For personal use only 5-Year Underlying EBIT Record Half $M Year Result 35 30 25 16.9 17.3 11.5 20 14.8 12.4 2H 1H 15 10 16.2 16.0 15.0 13.2 13.4 5 0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 13 www.ksgroup.com.au
Slide 14: Balance Sheet Summary
For personal use only Balance Sheet Summary As at 30 June ($m) 2010 2009 Cash and equivalents Receivables 12.0 56.7 14.7 47.1 Working capital well Inventories 2.7 3.1 controlled – slight Oh Other 48 4.8 43 4.3 increase in FY2010 Total Current Assets 76.2 69.2 Property, Plant & Equipment 197.2 185.
Slide 15: Gearing
For personal use only Gearing Key Liquidity Ratios As at 30 June 2010 Net Debt $52.3 million Gearing (Net Debt /Net Debt + Shareholders’ Funds) 22.6% Gearing (Net Debt / NTA) 39.0% Strong g net cash flows from operating p g activities in FY2010 of $35.9 million. Funding lines previously extended
Slide 16: Dividend Summary
For personal use only Dividend Summary Fully franked final dividend of 7.0 cents per share: – Record date for final dividend on 15 October 2010. – Final dividend payable on 29 October 2010. Total dividends paid in FY2010 of 14 cents per share, representing a 16.7% increase on prior corresponding
Slide 17: 5-Year Dividend Payment History
For personal use only 5-Year Dividend Payment History Cents per share 18 16 14 12 8 7 7 7 10 5 Final 8 Interim 6 4 8 7 7 7 7 2 0 2006 2007 2008 2009 2010 17 www.ksgroup.com.au
Slide 18: Company Overview
For personal use only Company Overview 18 www.ksgroup.com.au
Slide 19: K&S Corporation
For personal use only K&S Corporation K&S has been in business for more than 65 years. Our core expertise is the provision of supply chain solutions. These services include: – road, rail and sea linehaul – local transport – warehousing – supply chain IT and reporting capability. FY2010 Linehau
Slide 20: Board
For personal use only Board Tony Johnson (Chairman) Greg Boulton AM (Deputy Chairman) Chairman since 2005. Tony is a lawyer and an Director since 1996. Greg is Chairman of private Accredited Mediator who has worked extensively in equity fund Paragon Equity Limited and Southern the corporate advisory
Slide 21: Key Events
For personal use only Key Events 1945 Kain & Shelton commenced trading in Mount Gambier, South Australia 1950 Pioneered the use of refrigerated vans in Australia 1954 Opened its first Ampol fuel agency 1955 Established depot in Melbourne - Sydney and Adelaide terminals followed 1967 Entered rail fre
Slide 22: Key Customers
For personal use only Key Customers K&S has a large and diversified customer base (top 10 = 48% of revenue in FY2010) 22 www.ksgroup.com.au
Slide 23: K&S Nationwide
For personal use only K&S Nationwide K&S operates extensively throughout Australia and New Zealand. Derby Broome Port Hedland Brisbane Karratha Newman Adelaide Perth Sydney Purchased Cochrane’s Transport in Dec 2003 Truganina Terminal 23 www.ksgroup.com.au
Slide 24: K&S Fleet
For personal use only K&S Fleet Fleet Number Primemovers 763 Trailers 1,507 (including tankers, skels, tippers & sideloaders) Rigids 156 Dolly’s 142 Forklifts 160 Sedans and Utilities 168 Containers 1,635 24 www.ksgroup.com.au
Slide 25: Regal Acquisition Impact
For personal use only Regal Acquisition Impact Consolidation of K&S operations within the Western Australian transport services region. Strong presence and infrastructure in the Pilbara region which is experiencing massive growth. Depots in Port Hedland, Hedland Karratha and Newman which will
Slide 26: Perth Freight Terminal
For personal use only Perth Freight Terminal New rail facility on Pacific National property. On track for completion by December 2010. Development is part of 5 year contract between Pacific National and K&S which hi h was signed i d iin 2009 2009. Total expected capex investment of approxima
Slide 27: Our Safety Target Remains Zero Harm
For personal use only Our Safety Target Remains Zero Harm Our investment in safety continues to show improvements. Lost Time & Medical Injury Claims (LTI & MTI) per Financial Year 250 120 100 200 Number of LTI's & MTI's 80 R & MTIFR 150 60 LTIFR 100 40 50 20 0 0 8 9 0 1 2 3 4 5 6 7 8 9 0 99 99 00
Slide 28: 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 29: Successful Acquisition History
For personal use only Successful Acquisition History 2000 FH Transport - $28 million revenues 2001 Stepnell Transport - $15 million revenues 2003 Cochrane’s Transport (NZ) - NZ$10 million revenues, 50 employees 2006 DTM Business B i Logistics L i ti - $45 million illi revenues, 240 employees l 2008
Slide 30: Growth Opportunities
For personal use only Growth Opportunities Revenues are expected to grow in Australia over the long term: – We see growth from our existing customer base. – We continue to bid strongly on new tenders. – Our new state-of-the-art facility at Truganina in Victoria has p improved efficiency y and ppro
Slide 31: FY2011 Outlook
For personal use only FY2011 Outlook K&S is well positioned for a solid performance in FY2011: – The economy appears sound. – The company has in place secure customer contracts. – The full year benefit of the Pacific Transport and Regal Transport Group acquisitions should deliver material revenue
Slide 32: Contacts
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 32 www.ksgroup.com.au