Scott Technology Limited · NZX:SCT
Scott Technology — H1 F21 Earnings Presentation
23 slides from Scott Technology's earnings presentation, Apr 8, 2021
Slide 1: H1 F21 Half Year Results
H1 F21 HALF YEAR RESULTS 08 April 2021
Slide 2: Contents
CONTENTS H1 F21 Performance Snapshot ………………………………… 3-4 H1 F21 Operating Environment ……………………………..…… 5 H1 F21 Results Summary Table ……………………………..…… 6 H1 F21 Results Summary ..……..………………………………..… 7 Revenue by Operating Region ..……………………………….…. 8 Forward Work Trend ...……………………………………………….. 9 Industry Ou
Slide 3: H1 F21 Performance Snapshot
H1 F21 PERFORMANCE SNAPSHOT REVENUE MARGIN PERCENTAGE EBITDA $104.5M 23% $11.2M +5% | H1 F20 $99.0M +28% | H1 F20 18% +192% | H1 F20 ($12.2M) -6% | H1 F19 $111.4M +15% | H1 F19 20% +7% | H1 F19 $10.4M FORWARD WORK * REVENUE MIX SYSTEMS PRODUCTS SERVICE SYSTEMS PRODUCTS SERVICE $87M $24M $4M 55/30/15
Slide 4: H1 F21 Performance Snapshot: Health & Safety
H1 F21 PERFORMANCE SNAPSHOT HEALTH & SAFETY FY F20 H1 F21 0 Fatality 0 Forward indicators of hazard reporting and management conversations underpin a 11 LTI 0 maturing safety culture. 0 MTI 0 22 First Aid 12 Injuries EP&D 38 / Near Miss 27 51 Hazards Reported 334 15 Management 66 Conversations 4
Slide 5: H1 F21 Operating Environment
H1 F21 OPERATING ENVIRONMENT • Multiple large contract wins signal strong post • The new Executive Team has quickly and COVID-19 recovery. New European MHL contract, effectively settled down and managed the Alliance, Bosch business through the unprecedented disruptions of the global pandemic. • Stro
Slide 6: H1 F21 Results Summary Table
H1 F21 RESULTS SUMMARY TABLE Results Snapshot $M H1 F21 H1 F20 H1 F19 Revenue 104.5 99.0 111.4 EBITDA 11.2 (12.2) 10.4 Non-trading adjustments (1.4) 1 (11.8) 0.0 Normalised EBITDA 9.8 (0.4) 10.4 Net Profit After Tax 4.7 (13.7) 5.2 Net Cash / (Debt) (2.9) (20.2) (12.9) Operating Cash Flow 5.3 0.9 (6.
Slide 7: H1 F21 Results Summary
H1 F21 RESULTS SUMMARY • Revenue has increased by 5% compared to the • The right sizing program also meant Overhead cost prior comparative period (pcp). The increase is reductions of $4.1m contributed to the growth in driven by the ANZ and China regions, with EBITDA and represents a tightening of 25
Slide 8: Revenue by Operating Region
REVENUE BY OPERATING REGION OPERATING REVENUE $M • Strong rebuild in the ANZ work program, largely driven by mining and meat sectors. • Europe extended the declines of the prior years, however, promising rebuild of forward work underway. • China is experiencing strong demand in appliance systems. •
Slide 9: Forward Work Trend
FORWARD WORK TREND FORWARD WORK $M Positive recovery in forward work despite an uncertain global investment environment. 9
Slide 10: Industry Outlook
INDUSTRY OUTLOOK A SCOTT
Slide 11: Revenue by Industry
REVENUE BY INDUSTRY Significant growth in mining systems and product revenues replaces a reduction in industrial automation projects. 11
Slide 12: Industry Outlook: Meat
INDUSTRY OUTLOOK Meat: Strong ongoing demand for our BladeStop safety- saw product and automation and robotic systems. In the system space our primary focus will continue to be on selling lamb primal systems into the ANZ meat sector, and rolling out the new poultry trussing systems across Pilgrims i
Slide 13: Industry Outlook: Mining
INDUSTRY OUTLOOK Mining: The continuation of strong global precious metal prices is underpinning ongoing investment in mining capacity globally (West Australia, Russia, North America and West Africa). We expect this activity will continue to support ongoing demand for our mining parts business, expo
Slide 14: Industry Outlook: Appliances
INDUSTRY OUTLOOK Appliances: While this sector is seeing positive investment in capacity from the world’s largest white goods manufacturers, we are experiencing increasing competition from the automation solution providers from the likes of Italy. Our focus will remain on providing quality design op
Slide 15: Industry Outlook: Material Handling and Logistics
INDUSTRY OUTLOOK Material handling and logistics: Positive opportunities continue to emerge for this important part of our European business which remains the centre of excellence for our materials handling business. At the same time we are making positive, but still early inroads, into our Scott 20
Slide 16: Scott 2025 Strategy Update
SCOTT 2025 STRATEGY UPDATE 16
Slide 17: Engineering Scott to High Performance
ENGINEERING SCOTT TO HIGH PERFORMANCE Scott 2025 OUR PROGRESS • Authentic Customer Partnerships: Secured significant repeat business across all sectors e.g. Rio Tinto, Alliance, Little Swan, Bosch, Candy Haier, McCain. $104.5m revenue in H1 F21. • Operational Excellence: Delivered sustainable margin
Slide 18: Our Vision
OUR VISION • Sector Expertise – We operate across targeted sectors where we have extensive expertise and experience. To be the first choice for • Global Platform – Head office in New Zealand with businesses around the regional offices around the world. • Centres of Excellence – Each site has a speci
Slide 19: Growth Strategy
GROWTH STRATEGY SCOTT REGIONS ANZ EU US CN LAUNCH ● ● MEAT PROCESSING GROW ● ● ● - - GROW ● MINING MAINTAIN ● ● - GROW ● - MATERIALS HANDLING LAUNCH ● GROW ● ● LAUNCH ● ● - APPLIANCES MAINTAIN ● LAUNCH ● GROW ● ● GROW ● INDUSTRIAL AUTOMATION GROW ● ● - GROW ● - LIFE CYCLE: Launch, Grow, Maintain, Ex
Slide 20: Operational Excellence
OPERATIONAL EXCELLENCE TOTAL GROUP GROSS MARGIN % 20
Slide 21: Continued Impact of COVID-19
CONTINUED IMPACT OF COVID-19 • Our first priority remains the safety and wellbeing of our teams. Long periods of staff isolation during lock-downs and pressures while commissioning systems in remote locations remain our key watch areas. • Strong focus on protecting employees during travel as the wor
Slide 22: H2 F21 Outlook
H2 F21 OUTLOOK • Forward work continues to solidify. • Product business has firm order books at healthy margins. • Continued focus on maintaining efficient cost structures that resulted from last years right sizing. • New business continues to be sourced with improved margin. • Improved ability to s
Slide 23: Thank You
THANK YOU www.scottautomation.com 23