Page 1

ASX ANNOUNCEMENT 24 February 2021 K & S CORPORATION LIMITED K & S Corporation Limited Results for the Half Year Ended 31 December 2020 The Directors of K & S Corporation Limited ( ASX : KSC ) today announce a statutory profit before tax of $ 24.5 million for the half year ended 31 December 2020. The result is 487.6 % higher than the prior corresponding period . Statutory profit after tax was $ 17.2 million , up 493.5 % on the previous year first half statutory profit after tax of $ 2.9 million . Included in the Group's statutory result for the current period was $ 16.2 million ( before tax ) attributable to JobKeeper subsidies received up until September 2020. The Jobkeeper subsidies assisted the Group to maintain its existing workforce . The statutory result also included $ 0.2 million of bad debt recoveries relating to a prior period and $ 1.2 million in restructuring and wage top up costs . These items were collectively treated as significant items . Operating revenue for the period was $ 341.8 million , 19.1 % lower than the prior corresponding period . Excluding the abovementioned significant items , the underlying profit before tax¹ of $ 9.3 million was 65.3 % higher than the prior corresponding period . The underlying profit after tax¹ of $ 6.5 million was 66.6 % higher than the prior corresponding period . The underlying profit benefited from a number of operational improvements , cost savings measures and procurement initiatives as well as a $ 2.8 million reduction in depreciation expenses realised through an alignment in the estimated residual values of the motor vehicle assets to be consistent with their financial lifecycle . In line with the accounting requirements , the change in the estimated residual values has been accounted for prospectively and the full year impact of this change to depreciation expense is expected to be in the range of $ 5 million - $ 6 million . Operating cashflow for the current period was $ 40.5 million , $ 13.5 million higher than the prior corresponding period . Australian Transport Steel volumes from our major customers remained strong , increasing compared to the prior half year . Performance of the contract logistics business was sound . Activity in our Western Australia based heavy haulage business has been strong , underpinned by the mining sector which continues to be relatively unaffected by COVID - 19 . Our specialised aviation refuelling business , Aero Refuellers , has experienced the full impact of COVID - 19 with minimal activity , as well as low fire season activity . Collectively these have resulted in a material activity decline in the first half of FY2021 . K & S Corporation Limited ABN 67 007 561 837 PO Box 57 , Laverton , Victoria , 3028 Australia P : 03 8744 3500 F : 03 8744 3599 W : www.ksgroup.com.au