Scott Technology Limited · NZX:SCT
Scott Technology — Shareholder Meeting (December 2020)
39 slides from Scott Technology's shareholder meeting presentation, Dec 3, 2020
Slide 1: Scott Technology Limited Annual Meeting 3 December 2020
h SCOTT SCOTT TECHNOLOGY LIMITED ANNUAL MEETING 3 DECEMBER 2020
Slide 2: Our Board
OUR BOARD Scott Technology has a strong Board of Directors with diverse and complementary skills and expertise. During the FY20 year, Andre Nogueira and Chris Hopkins resigned as Directors. Stuart McLauchlan John Kippenberger Edison Alvares Alan Byers Independent Chair Director and CEO Director Dire
Slide 3: Chair's Presentation
CHAIR’S PRESENTATION Stuart McLauchlan Independent Chair 3
Slide 4: Board Report for FY20
BOARD REPORT FOR FY20 • Appointment of John Kippenberger as CEO in November 2019 • Endorsed new ‘Scott 2025” strategy presented by management • Board governance and oversight of the company as the COVID-19 pandemic continues • Continued focus on Health & Safety • Restructuring and right sizing of th
Slide 5: Our Response to COVID-19
OUR RESPONSE TO COVID-19 Significant impact on results and performance: Response: • Health, safety and wellbeing of team members has • Remote working solutions remained a priority • Restructuring and right-sizing of organisation • Border restrictions means team members are • Commenced development of
Slide 6: New Five-Year Strategy
NEW FIVE-YEAR STRATEGY OUR GOALS • Establish and maintain leadership positions in our areas of expertise OUR MISSION • Deliver positive customer outcomes Delivering smart automation solutions that transform industries and lives. • Continue to build on our global brand and reputation for delivering e
Slide 7: Scott Outlook for FY21
SCOTT OUTLOOK FOR FY21 Confident that actions being taken under new strategy will deliver value to customers, staff and shareholders. 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
Slide 8: CEO's Presentation
CEO’S PRESENTATION John Kippenberger Chief Executive Officer 8
Slide 9: 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 10: 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 Network changes include: has a specific focus on a product or industry
Slide 11: 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 legacy projects Underlying EBITDA2 3.7 20.0 • restructuring and write down of non-core
Slide 12: Engineering Scott to High Performance
ENGINEERING SCOTT TO HIGH PERFORMANCE 2020 - 2025 FOUNDATIONS FOR PROFITABLE GROWTH 12
Slide 13: Authentic Customer Partnerships
AUTHENTIC CUSTOMER PARTNERSHIPS 2020 - 2025 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, Industrial Automation • Multiple ins
Slide 14: NZ Lamb Opportunities
NZ LAMB OPPORTUNITIES Lamb boning room installations ¢ Market size: approx. 19 m lambs processed per year © Scott machinery currently process 6.7 m lambs per year with an industry benefit approx $31 m per annum == ANZCO FOODS ¢ Market opportunity remains approx. 12 m lambs per year Processing Facili
Slide 15: Leading Edge Technology
LEADING EDGE TECHNOLOGY 2020 - 2025 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. This new mix is providing greater margin stability and cash flow generation which helps b
Slide 16: Rocklabs Products
ROCKLABS PRODUCTS Rocklabs - Standard Products Sector has been driven by record global precious metal prices ¢ The last 6 months has seen positive growth in order numbers, translating to good sales figures for Q4 of FY2020 © Equipment sales for Q1 FY2021, a 43.7% increase from _ Q1 FY2020 and 13.6%
Slide 17: Rocklabs Products - Sales by Geography
ROCKLABS PRODUCTS Rocklabs - Sales by Geography America 22% South America 9% Australasia "23%
Slide 18: One Global Team
ONE GLOBAL TEAM 2020 - 2025 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
Slide 19: Operational Excellence
OPERATIONAL EXCELLENCE 2020 - 2025 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. Introduction of risk management processes (pr
Slide 20: Robust Global Platform
ROBUST GLOBAL PLATFORM 2020 - 2025 Build an operations infrastructure matched to our growth curve. • Agile and efficient fixed-vs-variable labour cost structure. Increased partnerships with contractors has seen us deliver projects remotely that due to travel restrictions wouldn't have been possible.
Slide 21: Opportunities and Outlook
OPPORTUNITIES AND OUTLOOK
Slide 22: Our Business
OUR BUSINESS EUROPE “ey, BladeStop, Alvey, Materials Handling & Logistics { Key Sales Sectors: BladeStop, Appliances, Materials Handling & Logistics Au CHINA .» Appliances AMERICAS Key Sales Sectors. Appliances Transbotics & Robotworx Key Sales Sectors Meat, Appliances, Industrial Automation, Materi
Slide 23: Regional Focus
REGIONAL FOCUS EUROPE: • Most impacted by COVID as well as Brexit. By Region • Future pipeline continues to build with a number of deferred and new Percentage of FY20 Sales Revenue projects expected to come on stream in FY21. • Potential to grow sales of BladeStop as well as Materials Handling syste
Slide 24: 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. CHINA: • More recent part of t
Slide 25: Review of Projects
REVIEW OF PROJECTS
Slide 26: Bosch – Washer Cabinet Assembly Line
BOSCH – WASHER CABINET ASSEMBLY LINE • Successful build and installation of washer cabinet assembly line for Bosch • This project was the 5th variant of an existing system designed in Christchurch and built in Scott China facility in Qingdao. • A fully automatic assembly with a 20s cycle time. Brack
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Slide 28: Alliance – X-Ray Lamb Boning System
ALLIANCE – X-RAY LAMB BONING SYSTEM • Awarded multi million dollar contract for Alliance’s Lorneville plant • New Zealand’s most advanced lamb processing system • The system utilises advanced x-ray and vision technology to deliver a high accuracy of cutting, while also bringing significant developme
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Slide 30: Rio Tinto – Koodaideri
RIO TINTO – KOODAIDERI • Awarded multi million dollar contract for Tinto to design and build an automated mine site laboratory for the Koodaideri Iron Ore project • Once completed and in production in 2021, the Koodaideri laboratory will be the safest, most productive, highest quality iron ore facil
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Slide 32: Thank You
THANK YOU 32
Slide 33: Resolutions
RESOLUTIONS 33
Slide 34: Resolutions
RESOLUTIONS Resolution 1: Re-Election of Director – Stuart McLauchlan That Stuart McLauchlan, who retires as a Director and, being eligible, offers himself for re-election by shareholders, be re-elected as a Director. Resolution 2: Election of Director – John Kippenberger That John Kippenberger, who
Slide 35: Other Business, Close of the Meeting
OTHER BUSINESS CLOSE OF THE MEETING Results of the voting will be released to the NZX Presentation and speeches available online at www.scottautomation.com 35
Slide 36: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION Non-GAAP financial information: Scott has used several non-GAAP measures when discussing financial performance. These include EBITDA and Underlying EBITDA. Management believes that these measures provide useful information on the underlying performance of Scott’s busin
Slide 37: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION Non-trading Adjustments: Impairments (Australasia) • $(0.2)m relating to non-core LED business which has ceased trading • $(0.4)m - cessation of a research collaboration project • $(3.4)m - cessation of dairy technology development project • $(3.6)m – impairment of oth
Slide 38: 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 EBITDA excl
Slide 39: Disclaimer
DISCLAIMER • This presentation has been prepared by Scott Technology Limited (NZX: SCT). The future, by its nature, involves inherent risks and uncertainties. Accordingly, information in this presentation is of a general nature only. It is not a complete nothing in this presentation is a promise or
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