Scott Technology Limited · NZX:SCT
Scott Technology — Shareholder Meeting (November 2021)
27 slides from Scott Technology's shareholder meeting presentation, Nov 25, 2021
Slide 1: 2021 Annual Shareholder Meeting
2021 Annual Shareholder Meeting 25 November 2021
Slide 2: Contents
CONTENTS PRESENTED BY Chairs Presentation 3-6 Strategy Update 8 FY21 Results Summary 9 -11 Revenue by Operating Region 12 Forward Work Trend 13 Stuart McLauchlan John Kippenberger Cameron Mathewson Casey Jenkins Chairman Chief Executive Officer Chief Financial Officer Director – Marketing Service Re
Slide 3: Chairs Presentation
CHAIRS PRESENTATION Stuart McLauchlan Independent Chair 3
Slide 4: Board Report for FY21
BOARD REPORT FOR FY21 • Continued impact of COVID-19 still being felt deeply across the group • Continued focus on driving a high performance Safety & Wellbeing culture • Strong return to profitability with revenue up 16%, record EBITDA of $22.1m and net profit after tax of $9.5m. • Ongoing momentum
Slide 5: Continued Impact of COVID-19
CONTINUED IMPACT OF COVID-19 • Our first priority remains the safety and wellbeing of our teams. Long periods of employee isolation during lock-downs and Employee vaccination rates pressures while commissioning systems Fully Partially in remote locations remain our key Vaccinated Vaccinated watch ar
Slide 6: Outlook
OUTLOOK • Forward work continues to solidify. • Product business has firm order books at healthy margins (BladeStop / Rocklabs). • Continued focus on maintaining efficient cost structures that resulted from last years right sizing. • New business continues to be sourced with improved margin and in l
Slide 7: CEO Presentation
CEO PRESENTATION John Kippenberger Chief Executive Officer 7
Slide 8: Engineering Scott to High Performance
ENGINEERING SCOTT TO HIGH PERFORMANCE OUR PROGRESS • Authentic Customer Partnerships: Secured significant repeat business across all sectors e.g. Rio Tinto, Alliance, Little Swan, Bosch, Candy Haier, McCain, Whirlpool. $216.2m revenue in FY21. • Operational Excellence: Delivered sustainable margin i
Slide 9: FY21 Performance Snapshot
FY21 PERFORMANCE SNAPSHOT REVENUE MARGIN PERCENTAGE EBITDA $216.2M 23% $22.1M +16% | FY20 $186.0M +190% | FY20 8% +289% | FY20 ($11.6M) - 4% | FY19 $225.1M +9% | FY19 21% +10.3% | FY19 $20.0M FORWARD WORK* REVENUE MIX SYSTEMS PRODUCTS SERVICE PRODUCTS SERVICE $84M $35M $9M SYSTEMS FY20 9% +67% +80%
Slide 10: FY21 Health & Safety Performance
FY21 HEALTH & SAFETY PERFORMANCE FY20 FY21 0 Fatality 0 11 LTI 4 0 MTI 1 Forward indicators of hazard 22 First Aid 21 reporting and management Injuries conversations underpin a EP&D maturing safety culture. 38 / Near Miss 44 51 Hazards Reported 486 15 Management 143 Conversations 10 HEALTH & SAFETY
Slide 11: FY21 Results Summary Table
FY21 RESULTS SUMMARY TABLE Results Snapshot $M FY21 FY20 FY19 Revenue 216.2 186.1 225.1 EBITDA 22.1 (11.6) 20.0 Non-trading adjustments 0.0 11.9* 0.0 Normalised EBITDA 22.1 0.2 20.0 Net Profit After Tax 9.5 (17.5) 8.6 Net Cash / (Debt) 1.3 (3.4) (16.4) Net Cash / (Overdraft) 12.2 7.7 (4.7) Bank Loan
Slide 12: Revenue by Operating Region
REVENUE BY OPERATING REGION OPERATING REVENUE $M • Strong rebuild in the Australasia work program, largely driven by mining and meat sectors. • North America lead-indicators of inbound interest and recent contracts starting to show turnaround. • Europe constrained by COVID-19 restrictions, however,
Slide 13: Forward Work Trend
FORWARD WORK TREND FORWARD WORK $M • Mix evolving towards products and service in line with our Scott 2025 Strategy. • This shift towards repeatable products and increased services will see subsequent drive in margin growth • 24% uplift in forward work compared to prior year 13
Slide 14: Service Revenue Growth Strategy
SERVICE REVENUE GROWTH STRATEGY • Annual service revenue as a percentage of installed machine base. • Focusing on three key service growth areas, lamb automation, mining and BladeStop, we can see the additional delivery of +$13m revenue per annum. 14
Slide 15: Industry Outlook
INDUSTRY OUTLOOK 15
Slide 16: Industry Outlook: Meat
INDUSTRY OUTLOOK MEAT • Strong, ongoing demand for our industry leading BladeStop safety saw product continues, and have now sold over 1200 units globally. • In the system space, we remain focused on selling more lamb primal systems into the ANZ meat sector and rolling out the new poultry trussing s
Slide 17: Industry Outlook: Mining
INDUSTRY OUTLOOK MINING • Our mining products business Rocklabs and Reference Materials continue to trade well across virtually all of its global markets. • This strength in demand is a testament to the global reputation of the Rocklabs brand, a talented production and sales team, combined with the
Slide 18: Industry Outlook: Materials Handling & Logistics
INDUSTRY OUTLOOK MATERIALS HANDLING & LOGISTICS • We have seen ongoing pressure on global distribution and supply chains as a result of COVID-19 and believe this will continue in its aftermath. • This in turn drives the ongoing demand for material handling equipment offered by Scott and is particula
Slide 19: Our People & Planet
OUR PEOPLE & PLANET 20
Slide 20: Leading a Sustainable Future
LEADING A SUSTAINABLE FUTURE • Passionate about pursing a long-term sustainable future together with our customers, shareholders and wider stakeholders. • We recognise that our collective responsibility extends beyond commercial outcomes, and includes our relationship with the planet, and our people
Slide 21: Leading a Sustainable Future
LEADING A SUSTAINABLE FUTURE • People is about building an engaged, diverse, and OUR SUSTAINABILITY FRAMEWORK talented workforce. It focuses on retention and recruitment which is a priority for our people-led business. This is supported by a commitment to maintaining a safe and inclusive working env
Slide 22: A clear and compelling strategy... a bright future
“A CLEAR AND COMPELLING STRATEGY, COMBINES WITH A GREAT TEAM AT SCOTT TOGETHER WITH STRONG ONGOING MARKET DYNAMICS TO PRESENT A BRIGHT FUTURE”. John Kippenberger - CEO 23
Slide 23: Voting & Asking Questions
VOTING & ASKING QUESTIONS Voting Card Question Box 24
Slide 24: Resolutions
RESOLUTIONS 25
Slide 25: Resolutions
RESOLUTIONS Resolution 1: Re-Election of Director – John Thorman That John Thorman, who retires as a Director and, being eligible, offers himself for re-election by shareholders, be re-elected as a Director. Resolution 2: Re-Election of Director – Edison Alvares That Edison Alvares, who retires as a
Slide 26: Resolutions
RESOLUTIONS Resolution 4: Director Remuneration That, for the purposes of NZX Listing Rule 2.11.1, the maximum aggregate amount of remuneration payable by the Company to its Directors (in their capacity as Directors of the Company) be increased by $100,000 per annum (plus GST, where applicable) from
Slide 27: General Business / Questions
GENERAL BUSINESS / QUESTIONS 28
Scott Technology — Shareholder Meeting (November 2021) on 6ix