Korvest : Full Year Statutory Accounts - June 2022

For personal use only

Appendix 4E

Korvest Ltd

ABN 20 007 698 106

Preliminary Final Report

Financial Year Ended 30 June 2022

Results for announcement to the market:					$A'000
Revenues from ordinary activities	Up	42.2%	to	99,223
Profit from ordinary activities after tax	Up	87.2%	to	11,336
attributable to members
Net profit for the period attributable to	Up	87.2%	to	11,336
members
Earnings per share	Up	85.0%	to	99.0¢
Dividends	Amount per	Franked amount
security	per security
Final dividend (#)
- current reporting period		35.0¢		35.0¢
- previous corresponding period		20.0¢		20.0¢
Interim dividend
- current reporting period		25.0¢		25.0¢
- previous corresponding period		15.0¢		15.0¢
Special dividend
- current reporting period		-		-
- previous corresponding period		-		-
# Final dividend proposed in respect of the current reporting period. The financial effect
of this dividend will be recognised in the next reporting period.
The Dividend Reinvestment Plan is suspended for the final dividend.
Record date for determining entitlements to
	19 August 2022
the dividend
Brief explanation of any of the figures reported above and short details of any bonus or
cash issue or other item(s) of importance not previously released to the market:
Refer attached press release.
This report is based on financial statements that have been audited. The audit report is
included in the 30 June 2022 financial report.

This financial report is the preliminary final report provided to the Australian Stock Exchange under listing rule 4.3C.

The announcement was approved for release by the Board.

For personal use only

Annual Report

Korvest Ltd

and controlled entities

(ABN 20 007 698 106)

30 June 2022

Table of Contents
ESG STRATEGY STATEMENT AND CORE VALUES	.....................................................................................................................3
DIRECTORS' REPORT ..............................................................................................................................................................	7
personalForuse only
REMUNERATION REPORT - AUDITED...................................................................................................................................	13
5 YEAR SUMMARY ...............................................................................................................................................................	25
FINANCIAL STATEMENTS......................................................................................................................................................	26
ASX ADDITIONAL INFORMATION .........................................................................................................................................	68

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Korvest Ltd

ESG Strategy Statement and Core Values

Our ESG Vision is as follows:

Korvest aims to integrate ESG considerations into all facets of our business activities. We conduct our business in a socially onlyresponsible and ethical manner, aiming to protect the environment and benefit the communities where we work. We look after the health, safety and wellbeing of our employees and ensure effective corporate governance, whilst achieving strong

financial performance.

Korvest has developed a set of values that underpin the way in which we operate and help to achieve our vision. The core values are as follows:

• Always Safe & Environmentally Focussed
• Act with Integrity
• Work as One Team
• Think Customer
• Pursue Excellence
• Financially Responsible

useSocial

Safety performance

Through ongoing continuous improvement and consultation Korvest drove down the numbers of lost time injuries compared to FY21, reducing the lost time injury frequency rate by 49%

This was in part achieved through the delivery of Safety "Back to Basics" training to the factory workforce. This training was personaldeveloped and delivered in house and focuses on the safety principles we all need to implement on a daily basis to keep ourselves and our co-workers safe at work. A further roll-out of this training to interstate branches will be conducted in FY23.

Automation of manual handling tasks is a key area of improvement with some repetitive welding and stacking tasks completed during FY22. This is an ongoing focus with further investment planned for FY23.

Manual lifting of products and raw materials during our manufacturing processes is a specific risk in our business and we have also invested in additional jibs and hoists in our welding and fettling bays to further decrease the manual handling required.

Employee health & wellbeing

In addition to safety, Korvest undertakes a number of programmes aimed to improve the health and wellbeing of our employees, including:

• Employee Assistance Program allowing employees to access free counselling sessions for any reason
• Ongoing health surveillance program to monitor the hearing of employees
• Voluntary health screening including cholesterol and blood sugar readings
• Voluntary skin checks
• Voluntary free influenza vaccinations
• Paid time off for first and second COVID-19 vaccinations

ForKorvest Charity Scheme

Korvest has operated a company-wide charity scheme for many years. The scheme allows employees to make salary sacrificed donations to a nominated charity that are matched on a dollar-for-dollar basis by the company. Korvest's Staff Consultative Committee choose the designated charity for 3 years on a rotational basis

Diversity and Inclusion

Korvest is committed to promoting a culture that embraces a diverse mix of employees throughout all levels of the company. We recognise that our success is directly related to our people. Our people reflect a growing diversity, with different gender, ages, family status, cultures, ethnicities, and religions represented among our employees.

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ongoing trial of electric forklifts in place of combustion engine models.

exchanging the Warehouse fleet of forklifts for quieter models

trialling the building of noise barriers around presses

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Korvest Ltd

The Board and Management have set specific gender targets for various areas within the business. Our gender representation statistics are shown in the table below against our long-term objective.

only				Objective		Actual 2021			Actual 2022
			%		Number		%			Number			%
	Number of females in senior management positions	40%		4		20%			5			28%
		Number of females in administration/sales positions	50%		19		49%			21			58%
		Number of female employees in the whole organisation	20%		26		12%			32			15%

Environment

The protection of our environment is a cornerstone of our business. Korvest maintains ISO14001 (Environmental Management) accreditation, a South Australian Environmental Protection Authority (EPA) Licence for the Kilburn manufacturing facility and a WHS Management System in compliance with each states' legislative requirements.

useLegislative compliance

Korvest voluntarily undertook an independent legislative compliance audit of our WHS&E management systems during the reporting period. The audit was undertaken by external consultants with the systems measured against the requirements of the Model Work Health and Safety Laws and Regulations, SA Environmental Protection legislation as well as our SA EPA licence conditions. There were no non-conformances raised by the external consultants. Opportunities for improvements identified as a result of the audit process will be assessed and implemented over the next 12 months.

Good for Environment, Good for business

personalKorvest has built a cooperative working relationship over a long period with the South Australian EPA. We are one of the longest environmentally licenced organisations in the state.

We were honoured to be acknowledged by the SA EPA for our commitment to the environment by way of inclusion as a case study in the 2021 SA EPA "Good for Environment, Good for Business" publication. This publication showcases how successful, i novative businesses can co-exist with the expectations of the local community, delivering environmental improvements and investing in jobs and growth for the wellbeing and prosperity of all South Australians.

Noise Management

With the changing demographic of the Kilburn area, through the SA Urban Renewal Master Plan, Korvest in consultation with the SA EPA voluntarily developed a Noise Management Plan to set out a pathway to reduce noise emissions from our Kilburn site. Initiatives underway or completed include:

the replacement of forklift tonal reversing beepers with white noise alternatives

The trial of the electric forklifts was very successful with the first replacement since the trial specified as an electric unit.

Energy

ForEnergy efficiency and greenhouse gas emissions go hand in hand. Efficient use of energy and implementing opportunities to generate solar power have been an ongoing strategy for Korvest over a number of years.

During the reporting period Korvest invested in a new roof-mounted,grid-connected 269kWDC/200kWAC Solar PV system installed on the roof of the Kilburn warehouse. This is in addition to the existing 99kWDC system installed on the Manufacturing building and 73kWDC system the on the adjoining Fabrication building.

These systems coupled with the LED lighting project completed at Kilburn in 2018 continue to drive down our main grid electricity consumption and consequently our carbon footprint.

The combined solar systems generated approximately 203 MWhs of electricity in the 2021/22 financial year. This is expected to increase in the 22/23 FY as we will have a full 12 month's generation from the new warehouse system.

The chart below demonstrates the effect of the LED and Solar Projects on CO2e emissions for the Kilburn plant relative to the hours worked over the period.

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