K & S Corporation Limited · ASX:KSC
K & S — H1 FY2008 Earnings Presentation
17 slides from K & S's earnings presentation, Feb 27, 2008
Slide 1: Investor Presentation – February 2008
Investor Presentation – February 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 • Half year financial results • Acquisition – Brookes Transport Co. • Strategy • Outlook
Slide 3: Half Year Result
For personal use only K&S – Half Year Result • Revenue $223.7 million – 3.9% ↑ – Australian Operations 4.6% ↑ – New Zealand Operations 7.8% ↓ • EPS 14.3 cents per share – 18.1% ↑ • Profit after tax of $9.8 million – 21.5% ↑ • Normalised profit after tax excluding non trading items from previous year
Slide 4: Half Year Result
For personal use only K&S – Half Year Result • Normalised profit before tax excluding non trading items from previous year results reached $13.9 million – $2.7 million ↑. • Improved earnings have come from synergies following DTM acquisition in November 2006. • Post acquisition review identified sav
Slide 5: Half Year Result
For personal use only K&S – Half Year Result • Our rail freight forwarding business has had an excellent half 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 7.3% from 6.4% in the
Slide 6: Half Year Result
For personal use only K&S – Half Year Result • Operating cash flows for the period were up 54.8% reflecting the underlying strength of the overall business. • Fully franked interim dividend of 8.0 cents per share – an increase of 14.3%. • Dividend will be paid on 31 March 2008, with DRP available fo
Slide 7: Financial Overview
For personal use only K&S – Financial Overview H107 H108 % Operating Revenue $m 215.3 223.7 3.9 Profit after tax $m 8.1 9.8 21.5 Normalised PAT $m 7.9 9.8 23.9 Normalised PBT $m 11.2 13.9 23.8 Normalised EBIT $m 13.6 16.4 20.4 Earnings Per Share € 12.1 14.3 18.1 Dividend Per Share € 7.0 8.0 14.3 Gea
Slide 8: Operating Revenue
For personal use only $M Operating Revenue 450 400 350 202.7 300 183.9 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 PAT
For personal use only $M 20 Normalised PAT 15 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 $M Normalised EBIT 30 25 14.9 20 12.6 13.0 15 10.8 Full Year Interim 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 cents Dividends 14 12 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: NTA
For personal use only NTA $1.80 $1.77 $1.68 $1.60 $1.45 $1.40 $1.40 $1.40 $1.19 $1.20 $1.14 $1.00 $0.95 $0.92 $0.89 $0.86 $0.80 $0.60 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07
Slide 13: Gearing
For personal use only 120% Gearing 110% 100% 90% 80.8% 80% 70% 61.6% 60.6% 60% 60.6% 50% 42.7% 44.7% 41.2% 44.9% 41.5% 40.0% 40% 37.5% 30% 20% Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07
Slide 14: Brookes Transport
For personal use only K&S – Brookes Transport • K&S acquired Brookes Transport Co. 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 15: 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 16: 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.
Slide 17: Outlook
For personal use only K&S - Outlook • The domestic trading conditions will remain extremely strong for freight & logistic services. • Profitability will remain at the current levels until at least the end of the financial year.