Slide 1: 2021 Full Year Results Investor Presentation
2021 FULL YEAR RESULTS INVESTOR PRESENTATION 21 October 2021
Slide 2: Contents
CONTENTS PRESENTED BY Scott 2025 Strategy Update 3-4 FY21 Results Summary 5-9 Revenue by Operating Region 10 Forward Work Trend 11 Service Revenue Growth Strategy 12 Revenue by Industry 13 John Kippenberger Cameron Mathewson Chief Executive Officer Chief Financial Officer Authentic Customer Partners
Slide 3: 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 4: Growth Strategy
GROWTH STRATEGY ANZ EU US CN LAUNCH ● ● MEAT PROCESSING GROW ● ● ● GROW ● - GROW ● MINING MAINTAIN ● ● - GROW ● - MATERIALS HANDLING LAUNCH ● GROW ● ● LAUNCH ● ● - APPLIANCES MAINTAIN ● LAUNCH ● GROW ● ● GROW ● INDUSTRIAL AUTOMATION GROW ● ● - GROW ● - LIFE CYCLE: Launch, Grow, Maintain, Exit Centre
Slide 5: 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 SYSTEMS PRODUCTS SERVICE $84M $35M $9M 54/23/23 FY20 9% +
Slide 6: 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 6 HEALTH & SAFETY
Slide 7: FY21 Operating Environment
FY21 OPERATING ENVIRONMENT • Multiple large contract wins support our strong post • Focus on Health & Safety across the group continues to COVID-19 recovery. GE Appliances, McCain, Alliance, build positive momentum which is reflected in a large Bosch, Whirlpool, Little Swan, Thomas Foods Internation
Slide 8: 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 9: Operational Excellence
OPERATIONAL EXCELLENCE TOTAL GROUP GROSS MARGIN % • Stronger margins driven by sales mix and improved cost structure’ 1 1 1 1 1 1 1 1 1 9
Slide 10: 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 11: 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 11
Slide 12: 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. 12
Slide 13: Revenue by Industry
REVENUE BY INDUSTRY REVENUE BY INDUSTRY • Global demand from the protein industry translates to growth in our meat processing business. • Mining grows on the back of Rocklabs product and large one-off automated systems. eat rocessing ining Appliances ndustrial Automa on aterials andling ogis cs 13
Slide 14: Authentic Customer Partnerships
AUTHENTIC CUSTOMER PARTNERSHIPS MATERIALS HANDLING INDUSTRIAL MEAT APPLIANCES MINING AUTOMATION AND LOGISTICS 14
Slide 15: Authentic Customer Partnerships
AUTHENTIC CUSTOMER PARTNERSHIPS CUSTOMER CUSTOMER SITE SCOTT SYSTEM/PRODUCT SCOTT FACILITY Poultry trussing system Dunedin, New Zealand BladeStop safety saws Sydney, Australia Warehouse automation system Deerlijk, Belgium Lamb primal system Dunedin, New Zealand BladeStop safety saws Sydney, Australi
Slide 16: Global System/Product Flow
GLOBAL SYSTEM/PRODUCT FLOW 16
Slide 17: Industry Outlook
INDUSTRY OUTLOOK 17
Slide 18: 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 19: Poultry Trussing System Video
19 Poultry Trussing System - Full Video available on YouTube [00:53 -01:40]
Slide 20: 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 21: Industry Outlook: Appliances
INDUSTRY OUTLOOK APPLIANCES • While this sector is seeing positive investment in capacity from the world’s largest whitegoods manufacturers, we are experiencing increasing competition from the automation solution providers from the likes of Italy. • Our focus remains on providing quality design opti
Slide 22: 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 23: Our People & Planet
OUR PEOPLE & PLANET 23
Slide 24: 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 25: 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 26: 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 27: Looking Forward
LOOKING FORWARD • 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
Slide 28: Thank You
THANK YOU www.scottautomation.com 28