Slide 1: Results for the Year Ended 31 August 2020
RESULTS FOR THE YEAR ENDED 31 AUGUST 2020 30 OCTOBER 2020 1
Slide 2: FY20 Snapshot
FY20 SNAPSHOT • Appointment of new CEO and strengthened executive team • Significant impact from COVID-19 seen from late in the first half and throughout the second half of the financial year. • Softening economic conditions noted in key markets, including the impact of global trade and Brexit, furt
Slide 3: Our Response to COVID-19
OUR RESPONSE TO COVID-19 Response: Significant impact on results and performance: • Remote working solutions • Health, safety and wellbeing of team members has • Restructuring and right-sizing of remained a priority organisation • Border restrictions means team members are unable to • Commenced deve
Slide 4: New Five-Year Strategy
NEW FIVE-YEAR STRATEGY OUR GOALS • Establish and maintain leadership positions in OUR MISSION our areas of expertise • Deliver positive customer outcomes Delivering smart automation solutions that transform industries and lives. • Continue to build on our global brand and OUR VISION reputation for d
Slide 5: Foundations for Profitable Growth 2020-2025
ENGINEERING SCOTT TO HIGH PERFORMANCE 2020 - 2025 PROFITABLE GROWTH FOUNDATIONS FOR 5 See appendix slides for more detail on individual Foundations
Slide 6: Restructuring Programme
RESTRUCTURING PROGRAMME Goal to right size the business and workforce for the new strategy and operating environment. Business now has a strong regional footprint for the future. • Established Centres of Excellence where each plant has a specific focus on a product or industry sector. • Streamlined
Slide 7: FY20 Results Summary Table
FY20 RESULTS SUMMARY TABLE $M FY20 FY19 FY20 results reflect: Revenue 186.1 225.1 • impact of COVID-19 EBITDA (11.6) 20.0 • launch of new strategy Non-trading adjustments1 15.3 - • close out of several challenging Underlying EBITDA2 3.7 20.0 legacy projects NPAT/NLAT (17.5) 8.6 • restructuring and w
Slide 8: Revenue by Operating Region
REVENUE BY OPERATING REGION 120.0 • Revenue down 17% due to existing economic trends, significant impact of COVID-19, and 100.0 complexity of projects. • Positive growth in USA in 1H20 with strong 80.0 performance from BladeStop and Transbotics. • China impacted by COVID-19 shutdown during $MILLIONS
Slide 9: EBITDA
EBITDA • EBITDA $(11.6)m, Underlying EBITDA $3.7m Non-trading adjustments of (15.3)m comprise: • EBITDA impacted by reduced revenue, lower volumes leading to lower overhead recoveries, margin • $7.6m impairment of Australasian pressure and forex impact assets due to the new strategic direction • Non
Slide 10: Strong Operating Cashflow & Net Cash Position
STRONG OPERATING CASHFLOW & NET CASH POSITION • Net operating cashflow of $19.6m, up by $18.9m Net Cash/(Overdraft) and from $0.7m in prior year. Term Loans • FY20 cashflow is now more representative of 14 underlying business. 12 10 • Focus on working capital disciplines has resulted in 8 strong imp
Slide 11: Sector and Regional Review
SECTOR AND REGIONAL REVIEW 11
Slide 12: Our Business
OUR BUSINESS EUROPE . Monufacturing: » we BladeStop, Alvey, Materials Handling & Logistics BladeStop, Appliances, CHINA Materials Handling head & Logistics Manufacturing: 4 Appliances Zz AMERICAS e Manufacturing: Appliances Transbotics & Robotworx Meat, Appliances, Industrial Automation, AUSTRALASIA
Slide 13: Revenue Mix
REVENUE MIX By Region By Industry Segment Percentage of FY20 Sales Revenue Percentage of FY20 Sales Revenue Meat Mining 15% ANZ 18% 22% Americas 32% Appliances China 11% 5% Industrial Automation Materials Europe 28% Handling 41% 28% 13
Slide 14: Mining
MINING • Primarily in Australia. • Strong performance in FY20 with significant inroads made into the automated laboratory and sampling space. • High precious metal and gold prices driving customers’ investment in new and increased capacity. • Strong interest for automating laboratory solutions for a
Slide 15: Meat
MEAT • Primarily Australia/New Zealand and growing opportunity in the USA. • Demand for BladeStop band-saw machines continues, together with demand for service. • Relatively quiet year for large primal cutting automation. • Number of new opportunities now being progressed, including with pork and po
Slide 16: Appliances
APPLIANCES • Increase in global consumer demand for white goods has seen growing level of interest from large appliance customers. • These world renowned brands, including GE, Haier, Subzero, Electrolux and Bosch, are looking for a mix of upgrades to existing production lines along with new line bui
Slide 17: Materials Handling & Logistics
MATERIALS HANDLING & LOGISTICS • Mainly focused on European market which has been impacted by COVID-19 and Brexit. • Focus on rebuilding European market as well as taking proven technology into ANZ and North America. • Early stage opportunities in both ANZ and USA which will provide successful testi
Slide 18: Industrial Automation
INDUSTRIAL AUTOMATION • Centre of Excellence: Transbotics – autonomous guided vehicles (AGVs) in USA; Robotworx in USA. • Ongoing demand from US companies looking for specialised large weight-carrying autonomous guided vehicles. • In Australia and New Zealand, there are a number of ongoing projects
Slide 19: Regional Focus
REGIONAL FOCUS • ANZ: Primarily Meat and Mining customers. Government stimulus in Australia expected to benefit Scott. Growth potential lies in providing more of our product/systems range to existing customers and building on customer partnerships for new projects. • EUROPE: Most impacted by COVID a
Slide 20: Recent and Current Projects
RECENT AND CURRENT PROJECTS 20
Slide 21: Recent and Current Projects
RECENT AND CURRENT PROJECTS 21
Slide 22: Scott Outlook for FY21
SCOTT OUTLOOK FOR FY21 • LONG TERM TRENDS REMAIN POSITIVE for the automation and robotics industry. • NEW 5-YEAR STRATEGY is seeing Scott focus on areas of expertise and continued innovation to drive growth and margins while reducing risk. • CONTINUING UNCERTAINTY OF COVID-19 ENVIRONMENT: Continuing
Slide 23: Thank You
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Slide 24: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION Non-GAAP financial information: Non-trading Adjustments: Impairments (Australasia) Scott has used several non-GAAP measures • $(0.2)m relating to non-core LED business which has when discussing financial performance. ceased trading These include EBITDA and Underlying E
Slide 25: Glossary of Terms
GLOSSARY OF TERMS • EBITDA: Earnings/ Loss before the deduction of interest, tax, depreciation and amortisation. FY20 EBITDA was impacted by a number of non-trading adjustments totaling $(15.3) million, details of which are included in Scott’s Financial Statements. • Underlying EBITDA: This is EBITD
Slide 26: Authentic Customer Partnerships
AUTHENTIC CUSTOMER PARTNERSHIPS Build authentic customer partnerships which yield repeat business and growth opportunities. • Focus on delivering excellence to customers in our targeted sectors – Mining, Meat, Appliances, Material Handling & Logistics. • Strong customer relationships with streamline
Slide 27: Leading Edge Technology
LEADING EDGE TECHNOLOGY Leverage Scott’s leading technology platforms and offerings. • Pivot the Project/Product/Service mix from 60/20/20 to 40/30/30 to drive growth and margins, while reducing risk. - Project: Bespoke customer solutions focused on areas of expertise to reduce risk, improve custome
Slide 28: One Global Team
ONE GLOBAL TEAM Create an effective global Scott ‘identity’ and culture, with a focus on delivering excellence and positive customer outcomes. • Enable end-to-end team ownership and accountability for customer outcomes and shareholder returns. • Provide effective regional leadership and execution wi
Slide 29: Operational Excellence
OPERATIONAL EXCELLENCE Robust systems, controls and processes to ensure delivery of projects on spec, on time and on budget • Identify, evaluate and price development risk upfront and build effective risk-sharing models with global customers. • Excel in project management disciplines, design and eng
Slide 30: Robust Global Platform
ROBUST GLOBAL PLATFORM Build an operations infrastructure matched to our growth curve. • Agile and efficient fixed-vs-variable labour cost structure. • Streamlined regionally focused business platform with four regions - Australasia (New Zealand & Australia), Europe, North America and China. • Centr
Slide 31: Disclaimer
DISCLAIMER • This presentation has been prepared by Scott Technology Limited (NZX: SCT). The information in this presentation is of a general nature only. It is not a complete description of SCT. • This presentation is not a recommendation or offer of financial products for subscription, purchase or