FY 2013 Results PresentationFY 2013 Results PresentationSeptember 2013

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DisclaimerDisclaimer 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 Corporation Limited. The information in this document does not purport to contain all the information that the recipient may require to evaluate an acquisition of shares in K&S Corporation Limited and does not take into account the investment objectives, financial situation or needs of any particular investor. The recipient should conduct its own independent review, investigation and analysis of K&S Corporation Limited and obtain any professional advice they require to evaluate the merits and risks of an investment in K&S Corporation Limited, before making any investment decision based on their investment objectives.

This presentation has been prepared by K&S Corporation Limited. The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives financial situation or particular needs of any particular personpresentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of K&S Corporation Limited, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forward looking statements, forecasts, prospects or returns contained in this presentation. Such forecasts, prospects or returns are by their nature y g p p p p p ysubject to significant uncertainties and contingencies and the actual results, performance and achievements of K&S Corporation Limited may differ materially from those expressed or implied in this presentation.

Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.

This presentation has been prepared for publication in Australia and may not be distributed or released in the United States. This presentation does not constitute an offer of shares for sale in the United States or in any other jurisdiction in which such an offer would be illegal.

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FY 2013 Results P t tiPresentation

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FY2013 HighlightsFY2013 Highlights

• Revenue growth of 1.8% to $564.6 million• Profit after tax of $15.9 million• Strong performance by Western Australian business• Acquires Collare Transport in Western Australia• Generates record operating cashflow of $46.4 millionp g• Balance Sheet further strengthened with gearing at 17.6%• Lost Time Injury rate was reduced to 11.

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FY2013 ResultsFY2013 Results

We have seen two distinctly different half years:-

• The first half we had extremely strong demand for logistics and transport services particularly in the resources sector.p y

• Demand from manufacturing was at a consistent level.

• In the second half we have seen reduced demand across all sectors of the economy.

• Activity slowed in the resources sector with declining commodity prices and miners looked to reduce their costs and scale back projects.

• Manufacturing sector continued to be impacted by the high A$.

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FY2013 ResultsFY2013 Results

During the difficult second half we continued to review our cost base and reduced our variable costs.

Subcontractor costs, casual labour and overtime have been reduced.

We implemented a freeze on new employment as a measure to reduce costs.

Capital expenditure on non essential equipment has been significantly reduced.

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Full Year ResultFull Year Result

Full Year ended 30 June 2013 H1 H2 Total

Revenue ($m) 293.5 271.1 564.6

EBITDA ($m) 29.3 22.2 51.8

EBITDA i 10 0% 8 3%EBITDA margin 10.0% 8.3%

EBIT ($m) 16.7 10.9 27.6

EBIT margin 5.7% 4.0%

Less Net Interest  ($m) (2.8) (2.5)($ ) ( ) ( )

Net Profit Before Tax ($m) 13.9 8.4 22.3

Less Tax ($m) (3.9) (2.6)

Net Profit After Tax ($m) 10.1 5.8 15.9

EPS (cents) 11.3 6.3 17.6

Dividend Per Share (cents) 6.5 4.5 11.0

Franking 100% 100%

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Full Year ResultFull Year Result

Full Year ended 30 June 2013 2012 Variance

Revenue ($m) 564.6 554.8 1.8%

EBITDA ($m) 51.8 54.7 (5.3%)

EBITDA i 9 2% 9 9%EBITDA margin 9.2% 9.9%

EBIT ($m) 27.6 30.3 (8.9%)

EBIT margin 4.9% 5.5%

Less Net Interest  ($m) (5.3) (6.9)($ ) ( ) ( )

Net Profit Before Tax ($m) 22.3 23.4 (4.7%)

Less Tax ($m) (6.4) (7.0)

Net Profit After Tax ($m) 15.9 16.4 (3.0%)

EPS (cents) 17.6 18.7 (5.9%)

Dividend Per Share (cents) 11.0 11.0 ‐

Franking 100% 100%

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2013 Segment Performance2013 Segment Performance

Australian New ZealandFull Year ended 30 June 2013

Australian Transport Fuels

New Zealand Transport

Revenue ($m) 481.6 63.4 19.4

EBITDA ($m)  47.7 1.1 3.0

EBITDA margin 9.9% 1.7% 15.5%

EBIT ($m)  26.0 1.1 0.6

EBIT margin 5.4% 1.7% 3.1%

Less Net Interest ($m) (4.8) ‐ (0.5)Less Net Interest ($m) (4.8) (0.5)

Net Profit Before Tax ($m) 21.2 1.1 0.1

Less Tax ($m) (6.1) (0.3) (0.1)

Net Profit After Tax ($m) 15.1 0.8 ‐

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Balance Sheet SummaryBalance Sheet SummaryAs at ($m) 30 June 2013 30 June 2012

Cash and equivalents 15.9 21.0Receivables 64.1 73.2Inventories 3.0 2.9Other 5.3 5.2Total Current Assets 88.3 102.3Property, Plant & Equipment 234.8 219.4

• Gearing within targetrange at 17.6%.

p y, q pIntangibles 71.2 71.1Other 9.4 8.5Total Non‐Current Assets 315.4 299.0Total Assets 403.7 401.3

• Significant capacity tofund growth.

Accounts Payable 46.9 49.2Borrowings 16.3 16.7Provisions 16.7 14.5Other 0.6 1.7Total Current Liabilities 80.5 82.1Borrowings 50.7 66.3Provisions 3.0 3.1Other 29.9 24.9Total Non‐Current Liabilities 83.6 94.3Total Liabilities 164.1 176.4

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Total Liabilities 164.1 176.4Net Assets 239.6 224.9

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Dividend SummaryDividend Summary

• Final dividend of 4.5 cents per share:– Record date for interim dividend is 17 October 2013.– Final dividend payable on 31 October 2013.

• DRP remains active with a 2.5% price discount.

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10 Year Dividend Payment History10-Year Dividend Payment HistoryCents per share

812

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64.5

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Final

Interim

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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Key CustomersKey Customers• K&S has a large and diversified customer base.

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K&S NationwideK&S Nationwide• K&S operates extensively

throughout Australia and gNew Zealand.

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SafetySafety

• Safety remains a key part of everything we do at K&S and will be achieved by continuously improving compliance levels by updating, enhancing refreshing the current safety cultural behaviourenhancing, refreshing the current safety cultural behaviour programme.

• Our self insurance licence is in place until 30th June 2016.

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Our Safety Target Remains Zero HarmOur Safety Target Remains Zero Harm

80

Lost Time Injuries (LTI) per Financial Year

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1997/19981998/19991999/20002000/20012001/20022002/20032003/20042004/20052005/20062006/20072007/2008 2008/20092009/20102010/20112011/2012 2012/2013

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Looking ForwardLooking Forward

• We will continue to grow the business through:– Organic growth

– Tenders

– Acquisitions

• The outlook for the domestic economy continues to look challenging• The outlook for the domestic economy continues to look challenging.• Providing earnings guidance at this time remains a difficult task.• The lower A$ and more accommodative settings of interest rates may g y

in time provide a positive stimulus for the domestic economy.

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Looking ForwardLooking Forward

• We are well placed with a strong Balance Sheet, low gearing and secure customer contracts.O t iti f t ti l i iti ill l b l l l t d• Opportunities for potential acquisitions will also be closely evaluated where it makes strategic sense.

• We have recently won 2 new contracts:-• Argyle Diamonds in Western Australia

• BlueScope Steel in New Zealand.

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K&S ContactsK&S Contacts

Mr Greg StevensonManaging DirectorPh: 03 8744 3501greg.stevenson@ksgroup.com.au

Mr Bryan WalshChief Financial OfficerPh: 0402 899 889bryan walsh@ksgroup com aubryan.walsh@ksgroup.com.au

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