K & S Corporation Limited · ASX:KSC
K & S — Investor Presentation (March 2005)
23 slides from K & S's investor presentation, Mar 3, 2005
Slide 1: K&S Corporation Limited
RATION LIMITED &5 CORPO K
Slide 2: Half Year Performance, Outlook Second Half, Strategy
¢ Half Year Performance ¢ Outlook Second Half ° Strategy
Slide 3: Operating revenues up 18.7%
¢ Operating Revenues up 18.7%. ¢ New Contracts contributed an additional $9.3 million in operating revenues (Capral, Orrcon & Coca-Cola). ¢ NZ business units increased operating revenues by $6.0 million.
Slide 4: Existing customers sales increased by $11.5 million
* Existing customers sales increased by $11.5 million. * Overall increase in operating revenue by $26.8 million to $170.3 million. ¢ Other revenues of $10.8 — major item was sale of Brisbane warehouse complex for $9.4 million.
Slide 5: EBIT increased by 27.8% to $12.6 million
¢ EBIT increased by 27.8% to $12.6 million: Components of EBIT Increase Operations 1.4 Brisbane Property Sale 0.5 Buildings Revaluation 0.8
Slide 6: Record result $8.0 million PAT up 33.5%
Record result $8.0 million PAT up 33.5%. Margins remain under pressure as customers look for cost downs. Interim dividend up by 1.5 cents to 6.5 cents per share.
Slide 7: Land and buildings revaluation, shareholders funds and net debt
¢ During half Director’s revalued Group’s land & buildings. This resulted in increasing shareholders funds by $6.5 million. ¢ With the impact of revaluation and increase in PAT Shareholders Funds increased by 23.5% to $77 million. ¢ The Group’s net debt reduced by $5.3 million to $29.4 million.
Slide 8: Gearing level at lower end of target range
* Gearing level is at the lower end of target range at 42.9%, ¢ Gearing is expected to increase over the next 12 months as the Laverton project is completed.
Slide 9: Half year financial summary
Operating Revenue $m 170.3 143.6 18.7 EBIT $m 12.6 9.8 27.8 PAT $m 8.0 6.0 33.5 Net Borrowings $m 29.4 43.4 -32.3 Shareholders Funds $m 77.0 62.4 23.5 Earnings Per Share Cents 13.3 10.0 33.0 Dividends Per Share Cents 6.5 5.0 30.0 NTA $ 1.14 0.89 28.1 Return on Shareholders A) 10.4 9.6 8.0 Funds Gear
Slide 10: EBIT by half year
$M 14, 7.0 12.6 8.8 9.1 9.8 2000 2001 2002 2003 2004 Half Year
Slide 11: PAT by half year
$M 10.0 8.0 6.0 4.0 2.0 3.8 49 PAT 6.0 5.0 8.0 2000 2001 2002 2003 Half Year 2004
Slide 12: Earnings per share by half year
$0.14 4 $0.12 + $0.10 4 $0.08 + $0.06 + $0.04 + $0.02 4 $0.00 $0.065 $0.080 11 “3 U2 $0.100 $0.085 $0.133 2000 2001 2002 2003 Half Year 2004
Slide 13: Dividends paid
Divicencds Paicl cents 7.0 5 6.0 5 5.0 5 4.0 4 6.5 3.0 5 5.0 2.0 5 3.8 3.8 2.5 1.0 5 0.0 2000 2001 2002 2003 2004 Half Year
Slide 14: Full year profit expected to exceed 2003/04 result
Full year profit expected to exceed 2003/04 result. Sale of existing Melbourne terminal to be completed. Strong global economy should help support domestic economy.
Slide 15: Expected growth in second half operating revenues
¢ We expect growth in operating revenues in second half. ¢ There are opportunities in both Australia and New Zealand for growth.
Slide 16: K&S has been in business for over years
K&S has been in business for over 55 years. Core expertise is in the provision of supply chain solutions and the functions that can be leveraged off. Our offering includes:- — Land, sea & rail capabilities — Local transport — Warehousing — Supply chain IT and reporting capability
Slide 17: Key customers by sector
Metals Paper / Timber Smorgon PaperlinX Alcoa Norske Skog Capral Aluminium Laminex Crane Aluminium GTFP Orrcon Boral Bulk New Zealand Sugar Tenon Ltd QMag Fonterra Consumer Goods Nestle Australia VisyPak CUB * The top 25 customers provide 73% of our revenue.
Slide 18: Long term alliances with key customers
¢ Our strategy is to develop long term alliances with key customers based upon evergreen contracts. ¢ Development of our supply chain capabilities, which allows us to expand our potential client base and increase yields for higher value services.
Slide 19: Partnerships and competitive tendering
¢ Where appropriate we have entered into partnership arrangements with other transport and logistics providers to service the needs of major customers. ¢ We aggressively seek growth opportunities through competitive tendering in both Australia and New Zealand.
Slide 20: Targeting further acquisitions
¢ We continue to target further acquisitions where they meet our overall strategy and objectives. ¢ Clearly any potential target needs to have long term contracts underpinning their business which provides consistent revenues.
Slide 21: Investment and upgrade programs
¢ Investment and upgrade programs where innovation and IT form key components. ¢ A key part of our strategy is the common customers in New Zealand and Australia. ¢ We continually review our asset and equipment base.
Slide 22: Customer site photos
Slide 23: Any Questions?