Slide 1: FY22 Results Investor Presentation
FY22 RESULTS INVESTOR PRESENTATION SCOTT TECHNOLOGY LIMITED 18 October 2022
Slide 2: Contents
Contents PRESENTED BY FY22 performance Strong performance across the business at 3-6 revenue, margin and EBITDA Scott 2025 Strategy update Progression of strategy with core sectors 7-12 providing growth across sales and services Core sector performance & outlook 13-17 Understanding the ‘core’ and ho
Slide 3: FY22 Performance
FY22 PERFORMANCE 3
Slide 4: FY22 performance snapshot
FY22 performance snapshot REVENUE CORE MARGIN % GROUP MARGIN % $222M 29% 24% FY21 $206M +8% FY21 30% FY21 24% FY20 $175M +27% FY20 26% FY20 8% EBITDA FORWARD WORK* SALES SERVICES $24M $172M $19M FY21 $21M +14% FY21 $119M +44% FY21 $9M +115% FY20 ($11M) +314% FY20 $102M +76% FY20 $5M +305% • Forward
Slide 5: FY22 results summary
FY22 results summary Results Snapshot (NZ$m) FY22 FY21 FY20 Revenue 221.8 206.0 174.6 EBITDA 23.9 21.0 (11.2) Non-trading adjustments - - 11.9* Normalised EBITDA 23.9 21.0 0.2 Net Profit After Tax (NPAT)** 12.7 8.4 (17.0) Net Cash / (Debt) (8.0) 1.3 (3.4) Net Cash / (Overdraft) 3.9 12.2 7.7 Bank Loa
Slide 6: Operating environment
Operating environment Global labour shortage fuels demand for Scott products & service As global demand for automation continues to grow Continued large contract wins, substantial order from Silver Fern strongly, the key priority is to remain focused and Farms demonstrating long-standing relationshi
Slide 7: Scott 2025 Strategy Update
SCOTT 2025 STRATEGY UPDATE A SCOTT
Slide 8: 2025 Strategy
2025 Strategy , Our Mission To deliver smart automation solutions financial that transform industries. Performance Our Vision Be the first choice for businesses wanting smart automation and robotic solutions that make their businesses safer, more productive Customer and more efficient Satisfaction P
Slide 9: Continued leadership across core sectors
Continued leadership across core sectors MEAT MHL MINING REST OF BUSINESS FY22 revenue contribution % 26% 32% 18% 25% FY22 revenue 22% 3% 37% (12%) growth % FY22 margin % 32% 20% 40% 10% SALES Palletising Solutions Appliance Line Automation Poultry Trusser Conveyors Sample Prep Equipment Robotic Ind
Slide 10: Core sectors delivering strong top line growth
Core sectors delivering strong top line growth Core sectors generated $167m of revenue in FY22 Core Scott sectors contributed 75% of total FY22 revenue NZ$m 222 206 175 Rest of Business Meat 72 70 25% 26% 68 57 $222m 47 FY22 40 18% 29 27 29 Mining 32% MHL CORE BUSINESS FY20 FY21 FY22 FY20 FY21 FY22
Slide 11: Margin strengthened by core sectors
Margin strengthened by core sectors Core sectors generated $48m of margin in FY22 Core Scott sectors contributed 90% of total FY22 margin NZ$m Margin 32% 20% 40% 10% 24% (%) Rest of Business 53 10% Meat 20 18 34% 16 Mining 26% $53m 15 14 FY22 10 5 30% 5 MHL CORE - BUSINESS Meat MHL Mining Rest of bu
Slide 12: Core Sector Performance & Outlook
CORE SECTOR PERFORMANCE & OUTLOOK 12
Slide 13: Meat
Meat MEAT IS SCOTT’S FASTEST GROWING SECTOR Revenue $m Sales / services % NZ$m • Labour and skills shortages, coupled with rising health and safety 57 awareness continues to generate demand for Scott meat solutions 47 Services 28% • 99% growth over the last two years (22% in FY22), led by ongoing 29
Slide 14: Scaling through productisation
Scaling through productisation A key focus of the Scott 2025 strategy • Repeatable • Large addressable market • Proven technology • Strong brand presence • High margin • Strong recurring service revenue 14
Slide 15: Materials Handling & Logistics
Materials Handling & Logistics STRONG FORWARD ORDER BOOK IN MHL Revenue $m Sales / services % NZ$m • Materials Handling and Logistics (MHL) has been growing strongly in 72 70 Europe and with the recent leadership amalgamation of Europe and the 68 USA established solutions have started to flow into t
Slide 16: Mining
Mining MINING IS SCOTT’S HIGHEST MARGIN SECTOR Revenue $m Sales / services % NZ$m • Strong global demand outlook for old and new minerals from mining 40 manufacturers and distributors 27 29 31% Sales • 50% growth over two years (37% in FY22) driven by substantial sales FY22 and services footprint, g
Slide 17: Core sectors have 3x more recurring services revenue
Core sectors have 3x more recurring services revenue Core Scott sectors (76% of total revenue) • Core sector sales deliver a margin of Meat (26%) MHL (32%) Mining (18%) Rest of business (25%) 100% 25% whereas services revenues carry a 10% Services margin of 37% 90% Sales 28% 31% • Our 3 core sectors
Slide 18: Sustainability People & Planet
SUSTAINABILITY PEOPLE & PLANET 18
Slide 19: For people, place and purpose
For people, place and purpose Leading a sustainable future v 19
Slide 20: Safety & Wellbeing
Safety & Wellbeing HIGH PERFORMANCE SAFETY CULTURE FY21 FY22 • Be Safe, Be well, Be Scott launched 0 0 • LTI severity rate decreased 60% Fatality • BeScott safety software launched • Global safety and wellbeing induction standardised 4 LTI 9 • Global roll out of SafeMate award programme • Develop Sc
Slide 21: Safety & Wellbeing
Safety & Wellbeing OUR PROMISE At Scott, people are at the core of our business. We are committed to creating a culture where safety and wellbeing is paramount in everything we do. We encourage a positive work environment that is free from harm, where our people thrive, feel cared for, and look afte
Slide 22: ESG programmes commenced in FY22
ESG programmes commenced in FY22 Leading a sustainable future • Introduced a formal quarterly performance and wellbeing check-ins against training and development goals • Develop and implement onboarding and induction program • Onboarding survey of all employees that were onboarded in the last 12 mo
Slide 23: GHG Emissions
GHG Emissions HOW WE ARE GOING NEXT STEPS • Carbon budgeting • Workshops and education across the business • Agree the carbon reduction target • Selected Europe and ANZ as focus regions to start: - Combined makes up over 70% of our revenue • Prepare and provide calculator for the - Europe already sl
Slide 24: Gender diversity at Scott
Gender diversity at Scott WHY? WHERE ARE WE TODAY? Scott acknowledges the role diversity and inclusion can play in In NZ over the last 12 months the success of our business, but current data shows that we are females make up 16% 3.6% falling short of expectations. ENGINEERING TOTAL /TRADES Gender di
Slide 25: Key Points Summary
KEY POINTS SUMMARY A SCOTT
Slide 26: Key Points Summary
Key Points Summary Scott 2025 Strategy is targeting the core growth and margin opportunities All three of Scott’s core sectors are experiencing ongoing demand for automation to help drive efficiency, safety, and 1 to overcome the global labour shortages Core growth 31% over the last two years, bene
Slide 27: Thank You Q&A
THANK YOU Q&A A SCOTT