Scott Technology Limited · NZX:SCT
Scott Technology — Moelis Australia investor presentation, Melbourne, November 2019
36 slides from Scott Technology's conference presentation, November 2019
Slide 1: Scott Presents With Moelis November 2019
Scott Presents With Moelis November 2019
Slide 2: Scott Technology / Snapshot
Scott Technology / Snapshot Overview Key financials (NZ$m) • Specialist provider of “end-to-end” automation and robotics solutions FY19 revenue $225m • Headquartered in Dunedin, New Zealand • Global presence – 12 Countries , 20+ locations, ~800 employees FY19 revenue growth 24% • Customers in over 8
Slide 3: Global demand for industrial robots
Global demand for industrial robots 2012 - 2017 CAGR - 19%
Slide 4: Key Product Drivers / Market Opportunities
Key Product Drivers / Market Opportunities key drivers in the short to medium term – market opportunities for : • Industrial automation demand continues to intensify – Shortage of labour, declining unemployment rates, aging population – Manufacturing work forces are struggling to keep up with consum
Slide 5: Our Industry Overview
Our Industry Overview Materials Appliances Industrial Mining handling & Metal Forming Automation & Meat Processing Automation logistics Robotics Turnkey: Design – Turnkey: Design – Smart automation Advanced carcass Automation technology for Manufacture – Service Manufacture – Service solutions by vi
Slide 6: Research & Development
Research & Development Our commitment to developing and bringing new technology to market is real. We invest a significant portion of our revenue into searching for better ways of doing things • R&D expenditure of between 5% and 10% of total revenues – $14m spend in FY19 (6% of revenue) • Sizeable I
Slide 7: Revenue Growth Profile
Revenue Growth Profile 10 year rev CAGR 19% 5 year rev CAGR 33% 3 year rev CAGR 30% Revenue EBITDA 240,000 25,000 Alvey: Apr 18 220,000 Transbotics: Jun 18 200,000 20,000 Bladestop 180,000 Oct 16 Somako May 16 160,000 15,000 140,000 MAR Jan 15 120,000 10,000 RobotWorx May 14 100,000 80,000 5,000 60,
Slide 8: Our Global Presence
OUR GLOBAL PRESENCE NORTHAMERICA Marion, Ohio EUROPE UK Vancouver, Canada Deerlijk, Belgium Kürnbach, Germany ASIA Ploemeur, France Czech Republic Qingdao, China Marseille, France Charlotte, North Carolina Shanghai, China SOUTHAMERICA AUSTRALIA Santiago, Chile Brisbane, Australia NEW ZEALAND Sydney,
Slide 9: Sector Revenue Breakdown
Sector Revenue Breakdown Sector Revenue April 2016 JBS acquires 50.1% at $1.39 per share Aug balance date 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Accum growth $m $m $m $m $m $m $m $m $m $m $m Meat processing 5 6 6 8 8 11 39 40 45 35 30 Industrial 1 3 8 7 9 31 31 40 36 54 53 Mining 19 28 34
Slide 10: Strategy & Focus
Strategy & Focus Strategy - to build a global company that has a sufficient presence, scale and technology to produce profitable growth. • Core technologies have largely been developed • Focus for 2020: • Repeat, profitable, sales of developed and proven technology • Taking Pork, Poultry and Beef de
Slide 11: Opportunities for Meat Processing Sector
Opportunities for Meat Processing Sector Lamb – Proven with small addressable market Beef – development underway will be prototypes over next few years. Market size large (10x Lamb) Pork – started with Primal cutting based on lamb Xray – primal knowhow. First system in 2020. Addressable market $200
Slide 12: Technology Readiness
Scott systems for meat processors Scott Position in Market few competitors developing developed Technology Readiness Many competitors
Slide 13: Opportunities for Mining Sector
Opportunities for Mining Sector Robo Prep (robotic sample preparation systems for Laboratories) – System technology (Hardware and Software) now proven with multiple installs planned for 2020. Addressable market $20m - $50m per annum. Automated Fire Assay – first commercial system delivered to Gold m
Slide 14: Opportunities for Other Sectors
Opportunities for Other Sectors Automated Guided Vehicles (“AGVs”) – Growing footprint for specialised vehicle technology. (Hardware and Software) well established with repeat bluechip customers. Demand for AGV’s growing at rapid rate particularly for Scott in North America. Target growth 30% plus.
Slide 15: Focus Areas
Focus Areas To deliver on Scott’s Strategy, the focus will be on: • Consolidation and further integration of recent acquisitions into Scott – rollout of best practice systems and processes. – Cross Selling Opportunities • Service and Spare Parts • Research & Development – sharper focus – Meat proces
Slide 16: Bladestop Bandsaws
Bladestop Bandsaws Expanded Bladestop product range: – Development of Scott 600 saw completed – CE certification and specification sorted – European saw now shipping – Opportunities beyond “protein”
Slide 17: Outlook
Outlook Forward project work –approx. 7 months Significant project work underway Service activity expanding Growth will be : Organic from existing technologies Bottom line focused
Slide 18: Appendix
EF endix 2 a IN
Slide 19: Company Overview
Company Overview • Established in Dunedin, New Zealand in 1913 and was listed on the New Zealand Stock Exchange in 1997. Scott was solely focused on the appliance industry at that stage, primarily to North America. • We started diversifying in 2001 both geographically (entering the Asian and Europea
Slide 20: Company Overview
Company Overview Scott has diversified and grown its business by way of acquisitions • Rocklabs – Manufacturer of mechanised and automated sample preparation equipment for the mining industry. • RobotWorx – Based in the USA, specialising in the trade and integration of new and used robots, parts and
Slide 21: Revenue Analysis
Revenue Analysis Revenue matrix for 2019 Financial Year By Industry and location of Customer Geographical location of the customer New North South Zealand Australia America America Asia Europe Russia Africa Total Appliances 1 24 10 9 1 45 Materials handling 61 61 Meat processing 5 15 10 5 35 Mining
Slide 22: Revenue by Customer Geography ($000's)
Revenue by Customer Geography ($000’s) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 New Zealand Australia North America South America Asia Europe Russia and former Africa and Middle states East 2018 2019
Slide 23: Revenue by Industry Sector ($000's)
Revenue by Industry Sector ($000’s) Industrial Auto Mining Meat MHL Appliances 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2019 2018
Slide 24: Segment Results
Segment Results Revenue Surplus after Tax 2018 2019 change 2018 2019 change Australasia 100,492 102,760 2,268 11,899 9,218 (2,681) Americas 29,141 35,630 6,489 2,490 4,091 1,601 Asia & Europe 52,146 86,703 34,557 441 1,703 1,262 181,779 225,093 43,314 14,830 15,012 182 Unallocated (4,058) (6,408) 10
Slide 25: Materials Handling & Logistics
Materials Handling & Logistics Overview Palletising & Warehouse & Tailor made handling After sales services depalletising distribution systems • Preventive systems systems • Special on inspections • Multi-line • Conveyors demand • Emergency • Single-line • Storage machines and interventions systems
Slide 26: Materials Handling & Logistics
Materials Handling & Logistics Warehousing and distribution | Conveying Automatic Storage Plasterboard Handling & AGV Systems Palletising Systems
Slide 27: Appliances (Metal Forming)
Appliances (Metal Forming) Overview • Scott designs and builds turnkey solutions for a number of the world’s leading appliance manufacturers – We make the production systems that our customers use to make appliances in their factories. • World leader in this field since 1980’s and a preferred suppli
Slide 28: Appliances (Metal Forming)
Appliances (Metal Forming) • High volume manufacturing. • Designed to customer requirements. • Modular construction. Video: Hot Water Cylinder Line Video: Refrigerator Door Line
Slide 29: Industrial Automation & Robotics
Industrial Automation & Robotics Overview Robotic welding and metal Collaborative robots fabrication Parts handling Robotic milling and machining Used and reconditioned Wheel change automation robots Video: Robotic Welding Video: Collaborative Robots
Slide 30: Industrial Automation & Robotics
Industrial Automation & Robotics Stand-alone Robots, Repairs and Refurbishment RobotWorx, originally based solely in the U.S. have begun expanding our offering and now operate in Canada, Mexico and Australia. • New Robots – We hold a large inventory of high end new robots including FANUC, Yaskawa Mo
Slide 31: Meat Processing
Meat Processing Overview Scott meat processing has set the global benchmark for automation technology in the red meat industry. • Automated Boning Room Systems use ‘intelligent management’ in the form of X-Ray grading before robotic sensing and cutting, to optimise cut selection for each carcass. •
Slide 32: SCOTT: X-Ray/DEXA – Lamb and Beef carcass analysis
SCOTT: X-Ray/DEXA – Lamb and Beef carcass analysis SCOTT was first in the world to apply x-ray and DEXA (Dual Energy X-Ray Absorptiometry) imaging to meat processing Using vision and image analysis to drive smarter automation Use data from the system for accurate cutting and yield optimisation
Slide 33: Mining Industry – Sample Preparation
Mining Industry – Sample Preparation SCOTT, through its Rocklabs brand, supplies a range of solutions to operators in the mining industry in approximately 80 countries worldwide Products are used in preparing mine and exploration samples (core drill or blast hole) for analysis and include a rang
Slide 34: Mining
Mining Overview Robotic Idler Changer (RIC) Automated re-fueling Sample Preparation & Analysis Reference Materials
Slide 35: Scott – Digital Direction
Scott – Digital Direction 1. Vision and image analysis 2. Package Software - Maestro (ex Alvey) - TMO (ex Transbotics) 3. IIOT and connectivity - Equipment reporting - Diagnostics - Maintenance - OEE 4. Machine Learning - AI / convolutional neural networks 5. Augmented Reality 6. Virtual Reality – f
Slide 36: Thank you
Thank you Scott capability showcase video
Scott Technology — Moelis Australia investor presentation, Melbourne, November 2019 on 6ix