Scott Technology Limited · NZX:SCT
Scott Technology — Shareholder Meeting (November 2022)
32 slides from Scott Technology's shareholder meeting presentation, Nov 23, 2022
Slide 1: Annual Shareholder Meeting
ANNUAL SHAREHOLDER MEETING SCOTT TECHNOLOGY LIMITED 23 November 2022
Slide 2: Be Safe, Be Well, Be Scott
a a= ‘ , | BE SAFE-BE WELL | = ~ AX BESCOTT «|
Slide 3: Chairman Welcome
CHAIRMAN WELCOME Stuart McLauchlan Chairman and Independent Director 3
Slide 4: Agenda
Agenda Chairman Presentation 3-6 PRESENTED BY Scott 2025 Strategy update Progression of strategy with core sectors 7-12 providing growth across sales and services FY22 performance Strong performance across the business at 3-6 revenue, margin and EBITDA Stuart McLauchlan John Kippenberger Cameron Mat
Slide 5: Board Report
Board Report Our people have overcome the interruptions, increased costs and extended freight times, wrought 1 by COVID-19, to continue to deliver for our customers. 2 Strong performance despite disruption with revenue up 8% to $222m and a net profit after tax of $13m. The team continues to deliver
Slide 6: Outlook
Outlook Ongoing demand for automation continues as businesses seek to drive efficiency, safety, and 1 to overcome the global labour shortages Core growth 31% over the last two years, benefitting from large install bases, a high proportion of repeatable product sales and high margin recurring servic
Slide 7: Scott 2025 Strategy
SCOTT 2025 STRATEGY John Kippenberger Chief Executive Officer 7
Slide 8: 2025 Strategy
2025 Strategy , Our Mission Employee Safety To deliver smart automation solutions line) and Wellbeing that transform industries. Performance Our Vision Be the first choice for businesses wanting Diversity and Inclusion One Global Team Create an effective global Scott identity’ and culture, with a sm
Slide 9: 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 $5M +305% • Forward
Slide 10: Safety & Wellbeing
Safety & Wellbeing HIGH PERFORMANCE SAFETY CULTURE FY21 FY22 • Be Safe, Be well, Be Scott launched 0 0 • LTI severity rate decreased 60% Fatality • BeScott safety software launched • Global safety and wellbeing induction standardised 4 LTI 9 • Global roll out of SafeMate award programme • Develop Sc
Slide 11: Continued leadership across core sectors
Continued leadership across core sectors MEAT MHL MINING REST OF BUSINESS FY22 revenue contribution % 26% 32% 18% 25% FY22 revenue 22% 3% 37% (12%) growth % FY22 margin % 32% 20% 40% 10% SALES Palletising Solutions Appliance Line Automation Poultry Trusser Conveyors Sample Prep Equipment Robotic Ind
Slide 12: FY22 Performance
FY22 PERFORMANCE Cameron Mathewson Chief Financial Officer 12
Slide 13: FY22 results summary
FY22 results summary Results Snapshot (NZ$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 14: 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 Res t of Business Mea t 72 70 25% 26% 68 57 $222m 47 FY22 40 18% 29 27 29 Mi ni ng 32% MHL CORE BUSINESS FY20 FY21 FY22 FY20 FY21 F
Slide 15: 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% (%) Res t of Business 53 10% Mea t 20 18 34% 16 Mi ni ng 26% $53m 15 14 FY22 10 5 30% 5 MHL CORE - BUSINESS Meat MHL Mining Rest o
Slide 16: 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 17: Core Sector Performance & Outlook
CORE SECTOR PERFORMANCE & OUTLOOK 17
Slide 18: 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 19: 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 19
Slide 20: 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 21: 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 22: Scott Signs Deal with Caterpillar
Scott Signs Deal with Caterpillar Scott are excited today to announce a transformational collaboration with Caterpillarto develop an automated connection system to support Caterpillar’s stationary chargers for electrified machines. This agreement supports both company’s commitments to contribute to
Slide 23: Who We Work With
Who We Work With MEAT MATERIALS HANDLING MINING OTHER 23
Slide 24: Sustainability People & Planet
SUSTAINABILITY PEOPLE & PLANET Casey Jenkins Director of Marketing & People 24
Slide 25: Leading a Sustainable Future
Leading a Sustainable Future v 25
Slide 26: Leading a Sustainable Future
Leading a Sustainable Future ESG PROGRAMMES COMMENCED IN FY22 People Purpose • Introduced formal quarterly performance and • Create effective process and wellbeing check-ins against training and framework for measuring customer development goals satisfaction and engagement • Recruitment brand and ca
Slide 27: Understanding Our Carbon Emissions
Understanding Our Carbon Emissions 2022 ACHIEVEMENTS FY19 GHG Emissions Footprint (ANZ & Europe) • Workshops and education across the business. Europe and ANZ selected as initial focus. • Project teams identified, calculators built and audit partners selected for each region. AN • We are pleased to
Slide 28: Growing a Diverse and Talented Team
Growing a Diverse and Talented Team UNIVERSITY OF CANTERBURY PARTNERSHIP Scott recognises the role diversity and inclusion can play in the success of our business and are delighted to announce an exciting partnership with the University of Canterbury. • Final Year Project Sponsorship • Scott Technol
Slide 29: CEO Close
CEO CLOSE 29
Slide 30: General Business & Questions
GENERAL BUSINESS & QUESTIONS 30
Slide 31: Voting & Resolutions
VOTING & RESOLUTIONS Voting Card Question Box 31
Slide 32: Resolutions
RESOLUTIONS Resolution 1: Re-Election of Director – Derek Charge That Derek Charge, 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 Berry That John Berry, who was appointed as a Dire
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