ANNUAL REPORT 2021 OUR VISION TO BE THE LEADING PROVIDER OF TRANSPORT AND LOGISTICS SOLUTIONS WITHIN OUR TARGET MARKETS IN AUSTRALIA AND NEW ZEALAND. CONTENTS Chairman’s Report Financial Overview Managing Director’s Report Directors’ Report Remuneration Report Financial Report Corporate Directory FINANCIAL CALENDAR Annual General Meeting Half Year Result Full Year Result Annual Report to Shareholders Annual General Meeting 1 3 4 6 14 21 64 23 November 2021 23 February 2022 24 August 2022 14 October 2022 29 November 2022 CHAIRMAN’S REPORT The New Zealand business produced a strong result, with the domestic economy proving to be resilient throughout the year. It continues to realise growth through the provision of its integrated and value adding service offering, with several key customer contracts extended or renewed in the course of the year. The fuel trading business has again provided sound financial results, despite reduced demand for fuel in FY2021 consequent to COVID-19. The fuel retailing and wholesaling markets remain dynamic and continue to exhibit high levels of competition. An expansion of our network and the completion of several key projects to enhance our retail offering are currently being progressed. The implementation of cost reduction strategies continued across the business, contributing strongly to improved underlying profit. In particular, the Group has maintained its focus on operational efficiencies, supplier renegotiations, cessation of underperforming activities, and the rationalisation and replacement of specific fleet assets that reduced operating costs. Ongoing cost reductions are expected to continue to be accretive in FY2022, although these may be offset by possible COVID-19 related impacts. On behalf of the Board of K&S Corporation Limited, I am pleased to present the Group’s Annual Report for the year ended 30 June 2021. Trading conditions in the transport and logistics segments and regions the Group trades in remain challenging. Operating revenues for the year were $688.5 million, 12.9% lower than the prior corresponding period. COVID-19 The Group reported a statutory profit after tax of $18.1 million, 62.9% higher than the previous year statutory profit after tax of $11.1 million. Included in the Group’s statutory result for FY2021 was $16.2 million (before tax) attributable to the JobKeeper subsidy, which was received in the September 2020 quarter. The Group’s statutory result also included $6.0 million of one-off costs treated as significant items. These largely relate to the impairment of the carrying value of buildings and land totalling $4.7 million and $0.9 million in miscellaneous restructuring costs mainly associated with the exiting of the Hyde Park Tank business. After adjusting for the above significant items including government wage subsidies, the current year underlying profit before tax was $17.1 million, an increase of 44.4% on the prior corresponding period. The underlying profit after tax was $11.9 million, an increase of $3.7 million to the prior corresponding period. Operating cash flow was $75.5 million, 9.2% lower than for the previous year. Safety remains a key focus for the Group. The Group’s lost time injury rate reduced from 6.6 at the end FY2020 to 4.9 in the current year. Following strong FY2020 improvements, the Australian transport segment continued to realise further consolidation improvements to the majority of its operating divisions. The reduction of $1.1 million in depreciation expenses as a result of the change to the Group’s depreciation policy partially offset the reduced contribution by our aviation refuelling business, Aero Refuellers. Full year revenue declined due to a combination of the cessation of contracts, exiting of underperforming business units and COVID-19 related reduced customer activity. In FY2021 the Group experienced reduced revenues in a number of business units in Australia and New Zealand as a result of COVID-19. At a minimum, the Group expects to continue to be adversely impacted by COVID-19 in the first half of FY2022. The Group’s operations have not been subject to any Government mandated state border closures. However, as evidenced by the lockdowns in New South Wales and Victoria, COVID-19 continues to present a threat to the Group’s operations and also to key industry sectors serviced by the Group, such as construction. The Group has enacted pandemic protocols to assist manage the safety of employees. The Group has also implemented measures to mitigate potential impacts of COVID-19 upon its continued ability to fulfil core managerial, administrative, and operational functions. BALANCE SHEET Notwithstanding the ongoing impacts of COVID-19, the Group has significantly strengthened its balance sheet in FY2021. The Group’s debt profile carries long maturities and the gearing ratio (excluding lease liabilities) reduced to 9.0% at 30 June 2021, compared to 22.5% in the prior year. The Group’s net debt reduced to $26.6 million, the lowest since 2003. During the course of the year, the Group acquired fixed assets totalling $35.1 million, compared to $20.6 million in the prior year, continuing the investment in a modern operating fleet. Based upon independent valuations, the Group increased the carrying value of its freehold property portfolio by $27.6 million. The Group’s property portfolio consists of high quality industrial assets that have not been adversely impacted by COVID-19. K&S CORPORATION LIMITED ANNUAL REPORT 2021 1 CHAIRMAN’S REPORT DIVIDEND BOARD COMPOSITION The Group’s underlying earnings have improved significantly compared to the prior year. The final dividend declared was determined with reference to the underlying net profit after tax, as opposed to the statutory profit after tax, and specifically excludes any impact of government wage subsidies from the dividend calculation. The Directors have declared a fully franked final dividend of 3.5 cents per share (2020: 3.0 cents per share). This follows the fully franked interim dividend of 3.0 cents per share paid in April 2021, making the total fully franked dividend 6.5 cents per share in respect of the year ended 30 June 2021. The final dividend will be paid on 3 November 2021, with the date for determining entitlements being 19 October 2021. While the Group achieved record low debt levels at the end of FY2021, the Group has an extensive capital expenditure program for FY2022 which includes the development of a parcel of industrial land in Perth. Directors are of the view, based on the ongoing uncertainty relating to the potential impacts of COVID-19 on the economy that could adversely impact the Group’s operations, that a conservative approach to balance sheet management is appropriate. As such, the Directors have elected to reinstate the dividend reinvestment plan (DRP) in respect of the final dividend. The issue price of shares under the DRP will be the volume weighted average price for K&S shares in the five business days ending on 19 October 2021 (the record date for the final dividend), less a discount of 2.5%. Robert Dalton was appointed as a non-executive director with effect from 24 August 2021. Mr Dalton is considered by the board to be independent. Mr Dalton’s appointment continues a process of board renewal. 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 Group itself. The Group has secure long term bank facilities and low gearing levels, and will continue to take a conservative approach to financial risk as well as maintaining a strong focus on working capital management and underlying profit improvement. The Group will continue to target organic growth, particularly in market segments such as contract logistics that will deliver stronger returns on investment. On behalf of the Board, I thank our customers, suppliers and employees, who have contributed to the continued success of the Group. In particular, I thank the senior management team, led by Paul Sarant, for their ongoing commitment and dedication. Tony Johnson Chairman 2 K&S CORPORATION LIMITED ANNUAL REPORT 2021 FINANCIAL OVERVIEW OPERATING REVENUE ($M) OPERATING CASH FLOW ($M) 905.2 844.1 755.2 688.8 790.6 688.5 83.1 75.5 61.8 49.4 41.1 40.8 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 UNDERLYING PROFIT AFTER TAX ($M) GEARING (%) 12.0 34.9 34.7 37.0 35.4 7.5 7.7 8.3 3.9 2.3 22.5 9.0 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 K&S CORPORATION LIMITED ANNUAL REPORT 2021 3 MANAGING DIRECTOR’S REPORT Operating revenues decreased by 12.9% to $688.5 million. Underlying profit before tax increased to $17.1 million from $12.0 million for the prior corresponding period, underpinned by our strong ongoing continuous improvement initiatives completed in FY2021 and FY2020. The lost time injury frequency rate across the Group decreased from 6.6 in the previous year to 4.9 in the current year. In addition, whilst the total recordable injury frequency rate increased by approximately 4.4% compared to the previous year, the total number of recorded incidents reduced by 12.4% from the previous year. The improvement of all facets of safety performance remains a high priority for the Group. SAFETY The global COVID-19 pandemic continues to present the Group with a series of challenges concerning the ongoing safety of our employees and sub-contractors, and those who we interact with every day to provide transport and logistics services for our customers and communities. The engagement, commitment and leadership displayed by all our workforce to ensure our workplace remained safe during this pandemic has been of the highest order. As an essential service provider, we have continued to operate throughout the pandemic, albeit with ongoing alterations to state and territory border crossing controls, ensuring supply chains remain in place for our customers and the broader community. Mandatory vaccination requirements have also been announced by authorities in several jurisdictions which apply to various of our operations. We have supported our employees who wish to access vaccinations through the provision of paid leave. We thank the many employees in our workforce who have elected to support a national vaccination program. Our primary concern remains the physical and mental wellbeing of our employees and their extended families. Sadly, the Group sustained two fatality accidents in FY2021, as well as having a vehicle involved in a major on-road incident in Melbourne in May 2021 in which five pedestrians were injured. As with all safety incidents, the Group undertakes comprehensive investigations and will implement identified continuous improvement opportunities arising out of these accidents. The Group recognises that its social licence to operate is contingent upon achieving 4 K&S CORPORATION LIMITED ANNUAL REPORT 2021 industry leading on-road behaviours and safety outcomes, for which we are respected as an industry leader. The Group also rolled out its new online subcontractor registration portal, KasSub, in FY2021. KasSub provides a central portal to allow the Group to provide enhanced visibility on the licensing, accreditation, induction and insurance status of its subcontractors. We will continue to proactively invest in this, and any other, technology that assists to improve our performance. ENVIRONMENT Ongoing fleet upgrades have enabled the Group to continue its emissions improvements. During the year vehicle emissions reductions reached 79% of 2003 levels for NOx (FY2020: 74%), and 94% of 2003 levels for particulate matter (FY2020: 93%). Carbon dioxide generation for 2019-20 was 156,780 tonnes, down from 180,866 tonnes in the previous year. The Group will embark upon a major fleet upgrade in FY2022, adopting the latest Euro 6 emissions standards to further improve environmental performance. COMPLIANCE The Group has maintained ISO 9001:2015 accreditation standards, including other relevant accreditations which included: WA Main Roads, NHVAS Mass, Maintenance, and Basic Fatigue Management, along with Food Safety/ HACCP and TruckSafe. AUSTRALIAN TRANSPORT Intermodal and Import/Export The intermodal and import/export operations again performed soundly, with eastern seaboard activity levels remaining firm despite COVID-19 impacts. Improving asset utilisation and the disposal of under-utilised or surplus assets continues to be a key focus. Intermodal steel and timber volumes from our major customers were strong, with high activity levels in the construction sector and major infrastructure projects undertaken by the various state governments underpinning ongoing activity levels. We continue to incur increased costs in our rail transport operations as a result of increased rail network costs. We have focussed on securing parcels of rail volumes that improve our rail network balance and performance. Full year revenue declined due to a combination of the cessation of contracts, exiting of underperforming business units and COVID-19 related reduced customer activity. However, the successful retention and renegotiation of several customer contracts saw returns from the intermodal and import/export operations improve in the second half of FY2021. Contract Logistics Our contract logistics business unit continues to provide a strong contribution to Group earnings. The Western Australia based heavy haulage business performed well with a strong year underpinned by record commodity prices driving mine refurbishment activity. FY2022 forward demand remains solid. Chemical and Fuel Transport Our chemical and energy transportation businesses in FY2021 remain sound, despite the minimal activity in the Hi-Ex explosives transport sector, and significantly reduced fuel transport demand in the energy division as a result of COVID-19 and adverse weather impacts in central Queensland. Chemtrans continues to develop and deploy a range of systems and procedures that will reinforce Chemtrans as the market leader in the transport of dangerous goods with regards to environmental and safety performance, while continuing to deliver efficiency benefits to its customer base. Aviation Services Our specialised aviation refuelling business experienced a significant fall in volumes as a consequence of COVID-19, as our airport refuelling services materially declined. Fire season activity was also minimal. A focus on operational efficiencies sees this business poised for a better FY2022 if there is a return to more normal fire season activity levels. The new Port Hedland International Airport refuelling installation was commissioned in FY2021. We also completed the redevelopment of Aero Refuellers’ main operational base at Thurgoona in NSW. NEW ZEALAND The New Zealand business produced a strong result, with the domestic economy proving to be resilient throughout the year. The business continues to realise growth through the provision of its integrated and value adding service offering, with several key customer contracts extended or renewed in the course of the year. Industry segments such as dairy, steel and timber again performed strongly in FY2021. Operating cashflows were again strong and debt remains at record low levels. Further growth and diversification of the revenue base remain key priorities, leveraging the strong and expandable infrastructure that has been put in place over the last five years. FUEL AGENCY The fuel trading business has again provided sound financial results, despite reduced demand for fuel in FY2021 consequent to COVID-19. The fuel retailing and wholesaling markets remain dynamic and continue to exhibit high levels of competition. An expansion of our network and the completion of several projects to enhance our retail offering are currently being progressed. HUMAN RESOURCES Employee engagement and communications programs remain a high priority and area of focus across our business. With the ongoing challenges of COVID-19 and the collective toll that the pandemic and lock downs have taken upon the community, we have maintained a high level of communication with our workforce. The physical and mental well being of our workforce have been, and remain, at the forefront of our engagement strategies. We continue to align the operational and management structures to service the needs of business units and customers, while maintaining our strong focus on the retention and development of skilled and qualified employees as the Group’s most valuable asset. OTHER ITEMS The implementation of cost reduction strategies continued across the business, contributing strongly to improved underlying profit. In particular, the Group has maintained its focus on operational efficiencies, supplier renegotiations, cessation of underperforming activities, and the rationalisation and replacement of specific fleet assets that reduced operating costs. Ongoing cost reductions are expected to continue to be accretive in FY2022, although these may be offset by possible COVID-19 related impacts. On 27 July 2021, the Group acquired a strategically located parcel of industrial land in Perth for approximately $13.1 million. The land is currently being developed as a transport terminal, with the Group intending to consolidate operations presently undertaken on two externally leased sites at the new transport terminal when practical completion is achieved later in FY2022. I would like to take this opportunity to thank our management team, and all employees and supporters of the Group who have collectively worked exceptionally hard to continue to improve our company. Paul Sarant Managing Director and CEO K&S CORPORATION LIMITED ANNUAL REPORT 2021 5 DIRECTORS’ REPORT The Directors present their report, together with the consolidated financial report of the Group comprising K&S Corporation Limited (the “Company”) and its subsidiaries (the “Group”), for the year ended 30 June 2021 and the Auditor’s Report thereon. DIRECTORS The Directors of the Company in office at the date of this report, together with particulars of their qualifications, experience and special responsibilities are set out below. Tony Johnson Chairman Age 74, Director since 1986 Tony Johnson BA, LLB, LLM (Companies & Securities) FAICD is a lawyer and an accredited mediator. Mr Johnson is a founder and former Chairman of the national law firm Johnson Winter & Slattery. He has worked extensively in the corporate advisory and commercial disputes area. Mr Johnson is also Chairman of AA Scott Pty Ltd, the largest Shareholder of K&S Corporation Limited and Chairman of Adelaide Community Healthcare Alliance. Member of: – Environmental Committee (Chairman) – Nomination and Remuneration Committee – Audit Committee Paul Sarant Managing Director and Chief Executive Officer Age 53, Director since 2014 Paul Sarant B.Eng., has extensive experience in the transport and logistics sector. Mr Sarant held the position of Executive General Manager DTM for seven years at K&S Corporation prior to his appointment as Managing Director and Chief Executive Officer. Prior to this, Mr Sarant occupied a range of senior management roles, including general management and senior manufacturing, engineering and logistics roles in the course of his fifteen years at Amcor Printing Paper Group/ PaperlinX and was former General Manager at Spicer Stationery Group. Member of: – Environmental Committee Legh Winser Age 73, Director since 2013 Legh Winser is a former Managing Director of the Company, a position which he held for 16 years. He has extensive knowledge of the transport and logistics industry with more than 40 years’ experience. Mr Winser is also a director of AA Scott Pty Ltd, the largest Shareholder of K&S Corporation Limited. Member of: – Environmental Committee – Nomination and Remuneration Committee 6 K&S CORPORATION LIMITED ANNUAL REPORT 2021 Graham Walters AM (Independent Director) Age 79, Director since 22 May 2018 Graham Walters AM FCA is an experienced chartered accountant and director of successful public and private companies and associations, with extensive experience in accounting, finance, audit, risk management and corporate governance. Mr Walters AM is a former Chairman of Partners South Australia of KPMG and a former Chairman of Westpac South Australia. Mr Walters AM is a Director of Adelaide Community Healthcare Alliance. Member of: – Audit Committee (Chairman) – Nomination and Remuneration Committee (Chairman) Sallie Emmett GAICD Age 56, Director since 24 September 2019 Sallie Emmett GAICD LLB GDLP, is a lawyer with over 30 years’ experience as a practising solicitor in both legal and management roles. Mrs Emmett GAICD is a former partner of national law firm Johnson Winter & Slattery. Mrs Emmett GAICD has a broad range of commercial exposure including in workplace relations. Mrs Emmett GAICD operates her own legal and management consulting business and has advised the boards and management of a variety of organisations including private and public companies, government, and educational institutions. Mrs Emmett GAICD has significant transport sector experience, having acted for a number of transport companies. Mrs Emmett GAICD also sits on the board of a number of not for profit organisations. Member of: – Audit Committee SECRETARY Chris Bright BEc, LLB, Grad Dip CSPM, FCIS Age 50, Secretary since 2005 Chris Bright has held the position of General Counsel for 19 years. Mr Bright was admitted as a solicitor in South Australia in 1997. He also has experience working in private practice in Adelaide, principally in commercial dispute resolution. K&S CORPORATION LIMITED ANNUAL REPORT 2021 7 DIRECTORS’ MEETINGS The number of Directors’ meetings (including meetings of Committees of Directors) and number of meetings attended by each of the Directors of the Company during the financial year were: Director Number of meetings held: Number of meetings attended: Mr T Johnson Mr P Sarant Mr L Winser Mr G Walters AM Mrs S Emmett GAICD Directors’ Meetings1 Audit Committee Meetings Nomination & Remuneration Committee Meetings Environmental Committee Meetings 14 14 14 14 14 14 6 6 – – 6 6 1 1 – 1 – – 4 4 1 4 – – 1. In addition to the eleven scheduled directors’ meetings, there were a further three directors’ meetings held in the course of FY2021. PRINCIPAL ACTIVITIES The principal activities of the Group during the course of the financial year were transport and logistics, contract management, warehousing and distribution and fuel distribution. There were no significant changes in the nature of the activities of the Group during the year. OPERATING AND FINANCIAL REVIEW The Board presents the FY2021 Operating and Financial Review, which has been designed to provide Shareholders with a clear and concise overview of the Group’s operations, financial position, business strategies and outlook. The review complements the financial report and has been prepared in accordance with the guidelines in ASIC RG247. 8 K&S CORPORATION LIMITED ANNUAL REPORT 2021 DIRECTORS’ REPORT The consolidated profit for the year ended 30 June 2021 attributable to the members of K&S Corporation Limited (“K&S”) is shown below, along with comparative results for the previous corresponding period: Financial Overview Operating Revenue Statutory profit after tax Statutory profit before tax Earnings before interest and tax (EBIT) Earnings before interest, tax and depreciation (EBITDA) Less JobKeeper income Less bad debts recovered Add other significant items Underlying profit before interest, tax & depreciation1 Underlying profit before interest & tax1 Underlying profit before tax1 Underlying operating profit after tax1 Total assets Net borrowings excluding lease liabilities Shareholders’ funds Finance costs Depreciation Dividend per share Net tangible assets per share Operating cash flow Return on assets Gearing ratio (excluding lease liabilities) Employee numbers Lost time injuries Lost time injuries frequency rate $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 cents $ $’000 % % 2021 20202 % Movement 688,541 790,639 (12.9%) 18,123 27,541 30,917 83,336 (16,235) (199) 6,001 72,903 20,484 17,108 11,976 525,837 26,566 268,717 3,376 52,419 6.5 2.04 11,128 15,934 26,254 82,426 (13,731) – 9,648 78,343 22,171 11,851 8,296 540,140 69,608 239,157 10,320 56,172 5.0 1.61 75,454 83,074 3.5 9.0 1,972 22 4.9 2.1 22.5 2,161 31 6.6 62.9% 72.8% 17.8% 1.1% 18.2% 100.0% (37.8%) (6.9%) (7.6%) 44.4% 44.4% (2.7%) (61.8%) 12.4% (67.3%) (6.7%) 30.0% 26.7% (9.2%) 66.7% (60.0%) (8.7%) (29.0%) (25.8%) 1. Underlying profits and earnings per share based on underlying profits are categorised as non-IFRS Financial information and therefore have been presented in compliance with ASIC Regulatory Guide 230- Disclosing non-IFRS information issued in December 2011. Underlying adjustments have been considered in relation to their size and nature and have been adjusted from the statutory information for disclosure purposes to assist readers to better understand the financial performance of the underlying business in each reporting period. These adjustments primarily include the Government wage subsidies received, bad debt recovery, redundancies, asset impairment expenses and costs associated with the sale of Regal General Freight. The exclusion of these items provides a result which, in the Directors view, is more closely aligned with the ongoing operations of the Consolidated Group. The non-IFRS information has not been subject to audit or review by the auditor. 2. FY2020 balances have been restated based on the impact of change in accounting policy for the treatment of the Group’s freehold buildings. Refer to relevant statements and Note 2(aa) for further details. The Group is a tier one logistics provider, recognised as a leader in the development and provision of specialist logistics solutions for its customers. The Group operates in the Australian and New Zealand markets. The Group’s success is underpinned by a strong focus on safety, service and continuous improvement. The environment for the transport and logistics sector in FY2021 continued to be challenging. The transport and logistics sector continues to experience high levels of competition and pressure on rates, a low growth economic environment and the concentration of bargaining power in large and sophisticated buyers of transport and logistics services. In addition, the COVID-19 pandemic has impacted economic activity and market sentiment, albeit that stimulus provided by federal and state governments has under-pinned a level of consumer confidence in FY2021. Operating revenues decreased by 12.9% to $688.5 million. The Group achieved a statutory profit before tax of $27.5 million, an increase of $11.6 million or 72.8% on the prior corresponding period. K&S CORPORATION LIMITED ANNUAL REPORT 2021 9 Included in the Group’s statutory result for FY2021 was $16.2 million (before tax) attributable to the JobKeeper subsidy, which was received in the September 2020 quarter. The Group’s statutory result also included $6.0 million of one off costs treated as significant items. These largely relate to the impairment of the carrying value of buildings and land totalling $4.7 million and $0.9 million in miscellaneous restructuring costs mainly associated with the exiting of the Hyde Park Tank business. After adjusting for the above significant items including government wage subsidies, the current year underlying profit before tax was $17.1 million, an increase of 44.4% to the prior corresponding period. The underlying profit benefitted from a $1.1 million before tax reduction in depreciation expenses realised through an alignment in estimated residual values of the motor vehicle assets to be consistent with their financial lifecycle. Safety remains a key focus for the Group. The Group’s lost time injury rate reduced from 6.6 at the end FY2020 to 4.9. Australian Transport Following strong FY2020 improvements, the overall segment continued to realise further consolidation improvements to the majority of its operating divisions. The reduction of $1.1 million in depreciation expenses as a result of the change to the Group’s depreciation policy more than offset a reduced contribution by our aviation refuelling business, Aero Refuellers. Full year revenue declined due to a combination of the cessation of contracts, exiting of underperforming business units and COVID-19 related reduced customer activity. The implementation of cost reduction strategies continued across the business, contributing strongly to improved underlying profit. In particular, the Group has maintained its focus on operational efficiencies, supplier renegotiations, cessation of underperforming activities, and the rationalisation and replacement of specific fleet assets that reduced operating costs. Ongoing cost reductions are expected to continue to be accretive in FY2022, although these may be offset by possible COVID-19 related impacts. 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. We continue to incur increased costs in our rail transport operations as a result of increased rail network costs. We have focussed on securing parcels of rail volumes that improve our rail network balance and performance. Our contract logistics business unit again experienced a pleasing FY2021. Our chemical and energy transportation businesses in FY2021 were sound, despite the Chemtrans business enduring a number of weather impacts, minimal activity in the Hi-Ex explosives cartage division, and the energy business seeing fuel demand decline significantly as a result of COVID-19. The Western Australia based heavy haulage business enjoyed a strong year in FY2021 on the back of record commodity prices driving mine refurbishment activity in north-west Western Australia. Our specialised aviation refuelling business experienced a significant fall in volumes as a consequence of COVID-19 as our airport refuelling services materially declined. Fire season activity was also minimal. A focus on cost reductions and efficiencies sees this business poised for a better FY2022 if there is a return to more normal fire season activity levels. Fuel Agency The fuel trading business has again provided sound financial results, despite reduced demand for fuel in FY2021 consequent to COVID-19. The fuel retailing and wholesaling markets remain dynamic and continue to exhibit high levels of competition. An expansion of our network and the completion of several projects to enhance our retail offering are currently being progressed. New Zealand Transport The New Zealand business produced a strong result, with the domestic economy to be resilient throughout the year. It continues to realise growth through the provision of its integrated and value adding service offering, with several key customer contracts extended or renewed in the course of the year. Balance Sheet and Funding Notwithstanding the ongoing impacts of COVID-19, the Group has significantly strengthened its balance sheet in FY2021, mainly driven by improved trading performance, JobKeeper subsidies and increased property valuations. The Group’s debt profile carries long maturities and the gearing ratio (excluding lease liabilities) reduced to 9.0% at 30 June 2021, compared to 22.5% in the prior year. The Group’s net debt reduced to $26.6 million, the lowest since 2003. During the course of the year, the Group acquired fixed assets totalling $35.1 million, compared to $20.6 million in the prior year, continuing the investment in modern operating fleet. Based upon independent valuations, the Group increased the carrying value of its freehold property portfolio by $27.6 million. The Group’s property portfolio consists of high quality industrial assets that have not been adversely impacted by COVID-19. COVID-19 It is not possible to forecast with any certainty the magnitude of the COVID-19 impact on the Australian and New Zealand economies or upon the Group itself. In FY2021 the Group experienced reduced revenues in a number of business units in Australia and New Zealand as a result of COVID-19. At a minimum, the Group expects to continue to be adversely impacted by COVID-19 in the first half of FY2022. 10 K&S CORPORATION LIMITED ANNUAL REPORT 2021 DIRECTORS’ REPORT The Group’s operations have not been subject to any Government mandated state border closures. However, as evidenced by the current lockdown in New South Wales, COVID-19 continues to present a threat to the Group’s operations and also to key industry sectors serviced by the Group, such as construction. The Group has enacted pandemic protocols to assist the safety of employees. The Group has also implemented measures to mitigate potential impacts of COVID-19 upon its continued ability to fulfil core managerial, administrative, and operational functions. Safety The Group achieved a significant reduction in lost time injuries in FY2021, with the LTIFR falling from 6.6 at the end of FY2020 to 4.9 at the end of the current financial year. Sadly, the Group sustained two fatality accidents in FY2021, as well as having a vehicle involved in a major on-road incident in Melbourne in May 2021 in which five pedestrians were injured. As with all safety incidents, the Group undertakes comprehensive investigations and will implement identified continuous improvement opportunities arising out of these accidents. The Group recognises that its social licence to operate is contingent upon achieving industry leading on-road behaviours and safety outcomes. Managing COVID-19 required considerable resourcing. 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, it is pleasing that to date the Group has had nil employee COVID-19 cases. Our employees’ proactive engagement and support underpinning this outcome has been excellent. We continue to invest in our safety management system and in the training of our employees. Dividend The Group’s underlying earnings have also improved significantly compared to the prior year. The final dividend declared was determined with reference to the underlying net profit after tax, as opposed to the statutory profit after tax, and specifically excludes any impact of government wage subsidies from the dividend calculation. The Directors have declared a fully franked final dividend of 3.5 cents per share (2020: 3.0 cents per share). This follows the fully franked interim dividend of 3.0 cents per share paid in April 2021, making the total fully franked dividend 6.5 cents per share in respect of the year ended 30 June 2021. The final dividend will be paid on 3 November 2021, with the date for determining entitlements being 19 October 2021. While the Group achieved record low debt levels at the end of FY2021, the Group has an extensive capital expenditure program for FY2022 which includes the development of a parcel of industrial land in Perth. Directors are of the view, based on the ongoing uncertainty relating to the potential impacts of COVID-19 on the economy that could impact the Group’s operations, that a conservative approach to balance sheet management is appropriate. As such, the Directors have elected to reinstate the Dividend Reinvestment Plan (DRP) in respect of the final dividend. In accordance with the terms of the DRP rules, previous DRP elections made by Shareholders will remain in force in respect of the resumed DRP. Accordingly, Shareholders who previously elected to participate in the DRP will once again participate in the resumed DRP in respect of the final dividend of 3.5 cents per share in respect of the year ended 30 June 2021. Should any shareholder wish to change their DRP setting, notices to change DRP elections need to be received at least fourteen days before the date upon which the final dividend is to be paid to be effective in respect of the final dividend. The issue price of shares under the DRP will be the volume weighted average price for K&S shares in the five business days ending on 19 October 2021 (the record date for the final dividend), less a discount of 2.5%. Board Composition Robert Dalton was appointed as a non-executive director with effect from 24 August 2021. Mr Dalton is considered by the board to be independent. Mr Dalton has been a registered company auditor for over twenty-five years and is a former Managing Partner of the Ernst & Young Melbourne Accounting and Assurance Practice. Mr Dalton also has a wealth of entrepreneurial knowledge and experience having previously run Ernst & Young’s entrepreneurship initiatives across the Oceania region, as well as being a Regional Director of Ernst & Young’s Asia Pacific Entrepreneur management team. Mr Dalton has worked with a variety of public, private, and start up organisations advising on strategy, commercialisation and global expansion, as well as providing audit and assurance services. Mr Dalton has also held many volunteer director roles in the not for profit sector. Mr Dalton’s appointment continues a process of board renewal. 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 Group itself. The Group has secure long term bank facilities and low gearing levels, and will continue to take a conservative approach to financial risk as well as maintaining a strong focus on working capital management and underlying profit improvement. The Group will continue to target organic growth, particularly in market segments such as contract logistics that will deliver stronger returns on investment. The Group continues to review the industry segments in which it operates as well as the ways it offers services to the market. K&S CORPORATION LIMITED ANNUAL REPORT 2021 11 SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There were no significant changes in the state of affairs of the Group during the financial year. ENVIRONMENTAL REGULATION AND PERFORMANCE The Group’s operations are subject to environmental regulations under both Commonwealth and State legislation in relation to its transport and storage business and its fuel business. The Group has a Board Committee which monitors compliance with environmental regulations. Climate Change Reporting under the National Greenhouse Energy Reporting regime (NGER) was completed and submitted in FY2021. Transport and Warehousing The transport and warehousing business is subject to the Dangerous Goods Acts in Commonwealth and State Legislation. The Group monitors performance and recorded several incidents during the year, none of which has the potential to result in any material restrictions being placed upon the Group’s ability to continue its operations in their current form. Fuel The fuel business is subject to the South Australian Environmental Protection Act 1993 and the South Australian Dangerous Substances Act 1979. The Group monitors performance and recorded a number of minor fuel related incidents during the year. In all cases, corrective actions have been taken. DIVIDENDS Dividends paid or declared by the Company to members since the end of the previous financial year were: 1 A fully franked ordinary dividend (taxed to 30%) of 3.0 cents per share amounting to $3,863,563 in respect of the year ended 30 June 2020 was declared on 28 August 2020 and paid on 3 November 2020; and 2 An interim fully franked ordinary dividend (taxed to 30%) of 3.0 cents per share in respect of the year ended 30 June 2021 was declared on 24 February 2021 and paid on 1 April 2021 amounting to $3,863,563. The final dividend declared by the Company for the year ended 30 June 2021 and payable on 3 November 2021 in respect of the year ended 30 June 2021 comprises: 1 A fully franked ordinary dividend (taxed to 30%) of 3.5 cents per share amounting to $4,507,490 (based on the Company’s current issued share capital); and 2 A fully franked preference dividend (taxed to 30%) of 4.0 cents per share amounting to $4,800. The preference share dividends are included as interest expense in determining net profit. DIVIDENDS PAID TO SHAREHOLDERS (cents per share) 12 10 8 6 4 2 0 4.5 6.0 3.5 3.0 5.0 6.5 3.0 3.5 1.5 2.0 3.0 3.5 2.0 2.0 2.0 3.0 2.0 1.5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ■ Interim ■ Final 12 K&S CORPORATION LIMITED ANNUAL REPORT 2021 DIRECTORS’ REPORT EVENTS SUBSEQUENT TO BALANCE DATE On 24 August 2021, the Directors of K&S Corporation Limited declared a final dividend on ordinary shares in respect of the 2021 financial year. The total amount of the dividend is $4,507,490 which represents a fully franked dividend of 3.5 cents per share. The dividend has not been provided for in the 30 June 2021 financial statements and is payable on 3 November 2021. Directors have elected to reinstate the application of the DRP in respect of the final dividend. On 27 July 2021, the Group acquired a parcel of industrial land in Perth for approximately $13.1 million. The land is currently being developed as a transport terminal, with the Group intending to consolidate operations presently undertaken on two externally leased sites at the new transport terminal when practical completion is achieved later in FY2022. On 24 August 2021, K&S announced that Robert Dalton had been appointed as a non-executive director with effect from 24 August 2021. Robert is currently the acting CEO of Sports Australia and has served as a Senior Partner of EY for 25 years. He is also a former non-Executive Director of the Richmond Football Club, a position he held for 15 years, and Chair of Hockey Victoria. No other matters have arisen in the interval between the end of the financial year and the date of this report, including any item, transaction or event of a material and unusual nature which, in the opinion of the Directors of the Company, are likely to affect significantly the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years. INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS Indemnification The Company indemnifies current and former Directors, Executive Officers and the Secretaries of the Company and its controlled entities against all liabilities, costs and expenses to another person (other than the Company or a related body corporate) to the maximum extent permitted by law that may arise from their position as Directors, Executive Officers and Secretaries of the Company and its controlled entities, except where the liability arises out of conduct involving a lack of good faith. Insurance premiums Since the end of the previous financial year, the Company has paid insurance premiums of $254,100 in respect of Directors’ and Officers’ Liability insurance contracts for current and former officers, including Directors, Executive Officers and the Secretaries of the Company and its controlled entities. The insurance premiums relate to: – Costs and expenses incurred by the relevant officers in successfully defending proceedings, whether civil or criminal; and – Other liabilities that may arise from their position, with the exception of conduct involving a wilful breach of duty or position to gain a personal advantage. The Officers of the Company covered by the policy include the current Directors: T Johnson, L Winser, S Emmett GAICD, G Walters AM and P Sarant. Other officers covered by the contract are Executive Officers and the Secretaries of the Company and Directors and the Secretaries of controlled entities (who are not also Directors of the Company), General Managers and other Executive Officers of controlled entities. Indemnification of auditors To the extent permitted by law and excluding in circumstances of negligence, the Company has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year. TAX CONSOLIDATION Effective 1 July 2002, for the purposes of income taxation, K&S Corporation Limited and its domestic based 100% owned subsidiaries formed a tax consolidated Group. Members of the Group entered into a tax sharing arrangement in order to allocate income tax expense to the wholly owned subsidiaries on a pro-rata basis. In addition, the agreement provides for the allocation of income tax liabilities between the entities should the head entity default on its tax payment obligations. CORPORATE GOVERNANCE In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of K&S Corporation Limited support the principles of corporate governance. The Company’s Corporate Governance Statement can be found on this URL on our website: http://www.ksgroup.com.au/corporate-governance/. ROUNDING The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 dated 24 March 2016 and in accordance with that legislative instrument, amounts in the Financial Report and Directors’ Report have been rounded off to the nearest thousand dollars, unless otherwise stated. AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES The entity’s Auditor, Ernst & Young have provided the Group with an Auditors’ Independence Declaration which is on page 58 of this report. DIRECTORS’ INTERESTS The beneficial interest of each Director in their own name in the share capital of the Company shown in the Register of Directors’ Shareholdings as at the date of this report is: Mr L Winser Mr P Sarant Ordinary Shares 43,651 60,000 Directors of the Company have relevant interests in additional shares as follows: Mr L Winser Mr T Johnson Mr P Sarant Mr G Walters AM Ordinary Shares 1,252,799 542,967 126,603 5,252 K&S CORPORATION LIMITED ANNUAL REPORT 2021 13 REMUNERATION REPORT (AUDITED) This remuneration report outlines the Director and executive remuneration arrangements of the Company and the Group in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report, Key Management Personnel (KMP) of the Group are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Company and the Group, directly or indirectly, including any Director (whether executive or otherwise) of the parent company. While the Nomination and Remuneration Committee may review the remuneration paid to Non-Executive Directors and the Managing Director, and the aggregate remuneration paid to the executive team where requested by the Board, the Board of Directors has ultimate responsibility for determining these amounts. REMUNERATION STRUCTURE In accordance with best practice corporate governance, the structure of Non-Executive Director, Managing Director and other executive remuneration is separate and distinct. NON-EXECUTIVE DIRECTOR REMUNERATION Objective The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and retain quality Directors, whilst incurring a cost which is acceptable to Shareholders. Structure The Constitution and the ASX Listing Rules specify that the maximum aggregate remuneration of Non-Executive Directors’ shall be determined from time to time by a general meeting of Shareholders. The latest determination was at the Annual General Meeting held on 20 November 2012 when Shareholders approved a maximum aggregate remuneration of $600,000 per year. The amount of aggregate remuneration sought to be approved by Shareholders and the amounts paid to Directors is reviewed annually. The Board considers the fees paid to Non-Executive Directors of comparable companies when undertaking the annual review, as well as periodically taking advice from external recruitment consultants. No advice was taken from external recruitment consultants in relation to the fees paid to Non-Executive Directors in FY2021. Each Non-Executive Director receives a fee for being a Director of the Company. There was a 2% increase in fees payable to Non-Executive Directors in FY2021, with that increase being effective from 1 September 2020. Non-Executive Directors have long been encouraged by the Board to hold shares in the Company (purchased by the Director on the market). It is considered good corporate governance for Directors to have a stake in the Company whose Board he or she sits on. The remuneration of Non-Executive Directors for the period ended 30 June 2021 is detailed on page 17 of this report. For the purposes of this report, the term executive encompasses the Managing Director, executives, general managers and secretaries of the Parent and the Group. Details of the Key Management Personnel are: i) Directors Mr T Johnson Mr P Sarant Non-Executive Chairman Managing Director and Chief Executive Officer Mr L Winser Non-Executive Director Mr G Walters AM Non-Executive Director Mrs S Emmett GAICD Non-Executive Director ii) Key Management Personnel Mr R Parikh Mr C Bright Chief Financial Officer Company Secretary REMUNERATION PHILOSOPHY The performance of the Group depends upon the quality of its Directors and executives. To prosper, the Group must attract, motivate and retain highly skilled Directors and executives. To this end, the Group adopts the following key principles in its remuneration policy: – Remuneration is set at levels that will attract and retain good performers and motivate and reward them to continually improve business performance. – Remuneration is structured to reward employees for increasing Shareholder value. – Rewards are linked to the achievement of business targets. THE NOMINATION AND REMUNERATION COMMITTEE From time to time, the Nomination and Remuneration Committee may be delegated by the Board of Directors of the Company responsibility for reviewing compensation arrangements for the Directors, the Managing Director and executives. However, the Company has a small Board of Directors and the review of compensation arrangements can efficiently be discharged by the Board itself. Where requested by the Board, the Nomination and Remuneration Committee will assess the appropriateness of the nature and amount of remuneration of Directors and executives by reference to relevant employment market conditions, with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and executives. 14 K&S CORPORATION LIMITED ANNUAL REPORT 2021 EXECUTIVE DIRECTOR AND EXECUTIVE REMUNERATION Objective The Company aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the Company to: – reward executives for Company, business unit and individual performance against targets set by reference to appropriate benchmarks; – align the interests of executives with those of Shareholders; – link reward with performance of the Company; and – ensure total remuneration is competitive by market standards. Structure In determining the level and make up of executive remuneration, the Nomination and Remuneration Committee seeks external information detailing market levels of comparable executive roles from which the Committee makes its recommendation to the Board. For the Managing Director and the other executives, remuneration programs are balanced with a mix of fixed and variable rewards. The makeup and eligibility criteria for short term incentives are approved by the Board at the commencement of each financial year. The Board reviews and considers the fees paid to the Managing Director and other executives of comparable companies when undertaking the annual review, as well as periodically taking advice from external recruitment consultants. No advice was taken from external recruitment consultants in relation to the fees paid to the Managing Director and other executives for the year ended 30 June 2021. As safety performance is a key organisational goal and critical to the ongoing operations of the Group, the Board believes that aligning the payment of short-term incentives to reducing lost time injuries is appropriate and in the interests of Shareholders. As the Company’s annual budget for operating profit before tax is set with a view to increasing the profit generated by the Company, growing earnings per share, and improving the Company’s capacity to pay dividends, the Board also believes that aligning the payment of short term incentives to the attainment of budgeted profit before tax on a normalised basis is appropriate and in the interests of Shareholders. The Board also believes that having all of the Company’s executives aligned to the common goal of achieving budgeted operating profit before tax drives positive behaviours amongst the executives in maximising Group wide benefits from operating activities. For the year ended 30 June 2021, the Board approved the adoption of at risk short-term incentives of up to 30% of the base remuneration of the Managing Director and executives. The payment of such short-term incentives is to be settled in cash. Payment of the short term incentive in respect of the 2021 financial year was conditional upon: – outperformance of budgeted Group and divisional (where applicable) profit before tax on an underlying basis and excluding any non-trading items (e.g., government wage subsidies or restructuring charges) (but including any non-trading items that have been included in the budget) on a sliding scale up to a maximum of 20% of base remuneration: Profit Before Tax STI4 Ascot Media Investments Pty Ltd 5 PS Super Nominee Pty Limited 6 Zena Winser Pty Ltd 7 Oakcroft Nominees Pty Ltd 8 Mr Eric Joseph Roughana 9 Ardmore Super Pty Ltd 10 Winscott Investments Pty Ltd 11 Tirroki Pty Ltd 12 Kailva Pty Ltd 13 Dixson Trust Pty Ltd 14 Collins Rural Superfund Pty Ltd 15 Mr Anthony Victor King & Ms Elina Maria King 16 Ray Scott Private Pty Ltd 17 Maine Pty Ltd 18 Mrs Edna Grace Scott 19 Mr Raymond Walter Scott 20 Mr Bruce Grubb & Mrs Valerie Grubb Number of Shareholders 476 661 238 280 43 1,698 % 60.49 14.21 3.98 1.97 1.68 1.60 0.97 0.54 0.53 0.52 0.42 0.33 0.28 0.28 0.27 0.23 0.22 0.19 0.19 0.17 89.07 Number of Ordinary Shares Held 77,905,262 18,299,696 5,125,532 2,538,428 2,167,309 2,058,885 1,252,799 700,000 682,032 667,536 542,967 425,000 364,430 355,343 350,000 292,721 282,457 241,925 241,664 215,837 114,709,823 AA Scott Pty Limited is the registered holder of all the 6% Non Redeemable Cumulative Preference Shares, participating to 8%. The 20 largest shareholders hold 89.07% of the ordinary shares of the Company, and 100% of the preference shares. The following is an extract from the Company’s Register of Substantial Shareholders as at 30th September 2021:- AA Scott Pty Ltd & Associated Companies Linfox Australia Pty Ltd VOTING RIGHTS The voting rights are as follows: Preference Shares: Nil Ordinary Shares: 1 vote per share Number % of Class 83,067,544 22,977,255 65.26 18.05 K&S CORPORATION LIMITED ANNUAL REPORT 2021 63 CORPORATE DIRECTORY HEAD OFFICE 591 Boundary Road Truganina Victoria 3029 Phone: (03) 8744 3500 Facsimile: (03) 8744 3599 REGISTERED OFFICE 141-147 Jubilee Highway West Mount Gambier South Australia 5290 Phone: (08) 8721 1700 Facsimile: (08) 8721 1799 STOCK EXCHANGE K&S Corporation Limited's shares are quoted on the Australian Securities Exchange (ASX code: KSC). SHARE REGISTRY c/o Computershare Investor Services Pty Ltd Level 5, 115 Grenfell Street Adelaide, South Australia 5000 Phone: (08) 8236 2300 Facsimile: (08) 9473 2102 GPO Box 1903 Adelaide SA 5001 Enquiries within Australia: 1300 556 161 Enquiries outside Australia: 61 3 9415 5000 Email: web.queries@computershare.com.au Website: www.computershare.com.au Website: www.ksgroup.com.au OPERATIONS Intermodal/Bulk Melbourne 591 Boundary Road Truganina VIC 3029 Phone: (03) 8744 3700 Portland 53 Fitzgerald Street Portland VIC 3305 Phone: (03) 5523 4144 Geelong 325 Thompson Road North Geelong VIC 3215 Phone: (03) 5278 5777 Ballarat c/o Laminex Industries 16 Trewin Street Wendouree VIC 3355 Phone: (03) 5338 1710 Kyabram 39 McCormick Road Kyabram VIC 3620 Phone: (03) 5852 1011 Sydney 1 Hope Street Enfield NSW 2136 Phone: (02) 9735 2400 Appin West Cliff Colliery Weighbridge Wedderburn Road Wedderburn NSW 2560 Phone: (02) 4640 4109 Brisbane 34 Postle Street Coopers Plains QLD 4108 Phone: (07) 3137 4400 Bundaberg Old Quanaba Mill, Grange Road Bundaberg QLD 4670 Phone: (07) 4159 2150 Townsville 677 Ingham Road Mount Saint John QLD 4818 Phone: (07) 4431 2070 Perth Lot 1 Kewdale Freight Precinct Off Fenton Street Kewdale WA 6105 Phone: (08) 6466 6600 Bunbury 28 Barcoo Close Dardanup West WA 6236 Phone: (08) 9725 4400 Adelaide 30-32 Francis Street Port Adelaide SA 5015 Phone:(08) 7224 5400 Mount Gambier 209 Jubilee Highway West Mount Gambier SA 5290 Phone: (08) 8721 2941 Alice Springs 5827 Dalgety Road Alice Springs NT 0870 Phone: (08) 8950 8701 Darwin 8 College Road Darwin NT 0828 Phone: (08) 8984 4922 New Zealand Cambridge 3847 Te Awamutu Road Cambridge NZ Phone: (07) 827 6002 Mount Maunganui 35 Portside Drive Mount Maunganui NZ Phone: (07) 575 8265 Auckland 126 Kerwyn Ave Highbrook Auckland NZ Phone: (09) 307 0061 Christchurch 55 Lunns Rd Middleton Christchurch NZ Phone: (03) 344 0171 DTM Sydney 2 Hope Street Enfield NSW 2136 Phone: (02) 9735 2300 Melbourne 591 Boundary Road Truganina VIC 3029 Phone: (03) 8744 3509 Adelaide 30-32 Francis Street Port Adelaide SA 5015 Phone: (08) 7224 5400 Brisbane 34 Postle Street, Coopers Plains QLD 4108 Phone: (07) 3137 4400 Perth Lot 1 Kewdale Freight Precinct Off Fenton Street Kewdale WA 6105 Phone: (08) 6466 6646 K&S Heavy Haulage Perth Part 460 Bushmead Road Hazelmere WA 6055 Phone: (08) 9376 9600 K&S Energy/Chemtrans Brisbane 34 Postle Street Coopers Plains QLD 4108 Phone: (07) 3718 4221 Darwin 8 College Road Berrimah NT 0828 Phone: (08) 8995 8100 Sydney 1 Hope Street Enfield NSW 2135 Phone: (02) 9735 2346 Adelaide 19 Bowyer Rd Wingfield SA 5013 Phone: (08) 8347 3449 Melbourne 591 Boundary Road Truganina VIC 3029 PO Box 57 Laverton VIC 3028 Phone: (03) 8744 3700 Mackay 112 Spiller Avenue Mackay QLD 4740 Phone: (07) 4431 2040 Port Kembla Cnr King & Wattle Streets Port Kembla NSW 2505 Phone: (02) 4267 9200 Newcastle 45 Greenleaf Road Kooragang Island NSW 2304 Phone: (02) 4033 7000 Townsville 13 Pilkington Street Garbutt QLD 4814 Phone: (07) 4431 2000 Gladstone Lot 152 Red Rover Road Gladstone QLD 4680 Phone: (07) 4973 1700 Perth 3 Central Avenue Hazelmere WA 6055 Phone: (08) 6274 9600 Perth Cnr Beard and Morley Streets Naval Base WA 6165 Phone: 0417 046 786 K&S Fuels Mount Gambier 40 Graham Road Mount Gambier SA 5290 Phone: (08) 8721 1774 Millicent Cnr Williams & Mt Gambier Roads Millicent SA 5280 Phone: (08) 8733 3133 Aero Refuellers Enfield 1 Hope Street Enfield NSW 2135 Phone: (02) 9735 2392 Thurgoona 22 Hoffmann Road Thurgoona NSW 2640 Phone: (02) 6054 2200 64 K&S CORPORATION LIMITED ANNUAL REPORT 2021 www.ksgroup.com.au