K & S Corporation Limited · ASX:KSC
K & S — Investor Presentation (September 2021)
21 slides from K & S's investor presentation, Sep 7, 2021
Slide 1: FY2021 Overview
FY2021 Overview K&S Corporation Limited September 2021
Slide 2: FY2021 Overview
FY2021 Overview 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 shares in K&S Corporati
Slide 3: Safety Performance
Safety Performance • Safety performance of all operations continues to improve • Rolling 12 month LTIFR reduced to 4.9 • Continuous improvement of SH&E management systems including subcontractor compliance systems • Strong focus throughout the Group to proactively eliminate/reduce safety incidents 3
Slide 4: Revenue & Profit
Revenue & Profit • Operating Revenue reduced to $688.5 million (-12.9% vs pcp) • Underlying Profit before tax increased to $17.1 million (+44.4% vs pcp) • Statutory Profit before tax increased to $27.5 million (+72.8% vs pcp) • Full year revenue declined due to a combination of the cessation of cont
Slide 5: Financial Summary
Financial Summary Profit & Loss 2021 2020 % Movement Operating Revenue $m 688.5 790.6 -12.9% Statutory profit before tax $m 27.5 15.9 72.8% Earnings before interest, tax and depreciation $m 83.3 82.4 1.1% Underlying profit before tax, interest and depreciation1 $m 72.9 78.3 -6.9% Underlying profit b
Slide 6: Balance Sheet
Balance Sheet Balance Sheet 2021 2020 % Movement Total Assets $m 525.8 540.1 -2.7% Net Borrowings (excluding lease liabilities) $m 26.6 69.6 -61.8% Shareholders Funds $m 268.7 239.2 12.4% Earnings per Share cents 14.1 8.6 63.9% Gearing (excluding lease liabilities) % 9.0 22.5 60.0% Net tangible asse
Slide 7: Cash Flow
Cash Flow • Operating cash flow for the year was $75.5 million, 9.2% down pcp • The reduction was predominantly as a result of reduced operating revenues • FY2021 also benefited from $19.3m in asset sales vs $12.5m in the pcp; cash capex increased to $34.3m vs $19.9m pcp • Surplus generated cashflow
Slide 8: Cost Reductions
Cost Reductions • Cost reduction strategies have continued to be implemented across the business, including the rationalisation and replacement of fleet, exiting property leases and investment in IT solutions to improve customer service • As a result of the various initiatives, the Group’s underlyin
Slide 9: Fleet
F ] e et K&S CORPORATION LIMITED
Slide 10: Fleet
Fleet • FY2020 Capex was $20.6 million • FY2021 Capex was $35.1 million • FY2022 Capex forecast is $88.8 million • The Group is continuing to invest in a modern operating fleet as well as a $27.5m new property acquisition in Perth WA, which is expected to be earnings accretive from FY2023 onwards •
Slide 11: IT Infrastructure
IT Infrastructure • Ongoing rationalisation of the supporting IT infrastructure to improve customer, operational and back office functions • New ERP upgrades in progress/planned for the K&S Fuels, Aero Refuellers and Heavy Haulage businesses • Overall IT platform and performance has remained resilie
Slide 12: Property
Property • New $27.5 million purpose built logistics facility in Perth. Land purchase settled in July 2021 and construction expected to be completed by March 2022 • This will enable the Group to exit two externally leased sites in Perth, deliver improved operations synergies and realise significant
Slide 13: Industrial Relations
Industrial Relations • Strong employee engagement, particularly evident through COVID-19 related lockdowns • The Group maintains good relationships with unions • Minimal industrial action in the past decade 13
Slide 14: Trading Performance
Trading Performance • Intermodal steel and timber volume from our major customers were strong, with major infrastructure projects undertaken by the various state governments underpinning ongoing activity levels • Our contract logistics business unit again experienced a pleasing FY2021 • Our chemical
Slide 15: Covid-19
Covid-19 • Management of COVID-19 continues to require a concerted ongoing effort • Our key priority was, and remains, the safety and welfare of our employees and their families. Cognisant of the Group’s large and mobile workforce, which provides services to a substantial number of customer sites, i
Slide 16: Share Performance
Share Performance Share Price (closing price at 30 June) and NTA/Share Trends 3.00 2.50 2.00 $ 1.50 1.00 0.50 0.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Share Price NTA/Share $ 16
Slide 17: Dividend History
Dividend History 12 Full year FY2021 10 Final Interim dividends of 4.5 6.5c/share represented a Cents per share 8 6.0 yield of 3.94% 6 3.5 (5.63% fully 3.5 4 3.0 franked) at the 3.0 5.0 6.5 2.0 2.0 closing share 2 3.0 3.5 3.0 price of 25 2.0 2.0 2.0 0 1.5 1.5 August 2021 2012 2013 2014 2015 2016 201
Slide 18: FY2021 Dividend
FY2021 Dividend • The Group has a policy of determining the dividends with reference to the underlying profit after tax for the relevant period, as opposed to statutory profit after tax and specifically excludes any impact of government wage subsidies from the dividend calculation • A fully franked
Slide 19: Outlook
Outlook • Providing earnings guidance going forward remains difficult, particularly having regard to ongoing uncertainties created by COVID-19 • It is not possible to predict with any certainty the extent or duration of COVID-19 related impacts on the Australian or New Zealand economies, or upon the
Slide 20: Information
Information Mr. Paul Sarant Mr. Raunak Parikh Managing Director / CEO Chief Financial Officer K&S Corporation Ltd K&S Corporation Ltd Ph: (03) 8744 3500 Ph: (03) 8744 3500 paul.sarant@ksgroup.com.au raunak.parikh@ksgroup.com.au 20
Slide 21: Thank You
THANK YOU