Company Results Review

Automation + Robotics
Company Results Review
Chris Hopkins, CEONovember 2018

Performance highlights for the year to 31 August 2018
Reported Revenue of $181.8m –
up 37% 
on 2017 
Delivered Operating Earnings Before Interest, Tax, Depreciation
 and Amortisation 
of $19.8m –
up 21% 
on 2017
Earnings per share of 14.3 cents –
up 8% 
on 2017 (2018 affected by a higher 
amortisation charge relating to the Bladestopand  other acquisi
tion)
Operating cash inflow of $0.6m (vs inflow of $13.4m in 2017) re
flects working 
capital required to fund expansion via acquisitions and sales g
rowth
Cash of $12.5m (with short term debt of $7.4m and deferred sett
lement of $6.3m)
Final dividend at 6.0cents and full year dividend of 10.0 cents
 per share unchanged

2017 to 2018 Comparison
2017 As % of
2018 As % of Increase 2018
2018 As % of Increase
Full Ye
ar
2018 As % of Increase
Existing Revenue Existing Revenue on 2017
A
cquisition
s
Total Revenue on 2017
Acquisitions Annualised Revenue on 2017
Scott
Scott
(Note 1)
Revenue
132,631

151,093

14%
30,686

181,779

37%
73,907

225,000

70%
Other operating income
999

1,998

66

2,064

Share of joint ventures' net surplus
220

510

510

Raw materials, consumables used & other expenses
(77,340)

58%
(89,973)

60%
16%
(19,406)

(109,379)

60%
41%
Employee benefits expense
(40,143)

30%
(45,475)

30%
13%
(9,695)

(55,171)

30%
37%
Operating EBITDA
16,367

12%
18,152

12%
11%
1,650

19,803

11%
21%
3,848

22,000

10% 34%
Fair value gain on purchase of business
936

-

-

Due diligence & acquisition costs
-

-

(496)

(496)

EBITDA
17,303

13%
18,152

12%
1,154

19,306

11%
12%
Interest received
664

369

Depreciation & amortisation
(2,987)

(4,226)

Finance costs
(67)

(403)

Net Surplus Before Taxation
14,913

11%
15,046

8%
1%
Taxation
(4,648)

(4,274)

Net Surplus After Tax
10,265

10,772

Less Non controlling interests
(375)

(4)

Net Surplus attributable to members of the parent
9,890

10,768

9%
Earnings per share
13.2
cents
14.3
cents
8%
Note 1: Management accounts 1 Sept 2017 to
Shaded is as disclosed in or as calculated from the 2018 financ
ial statements
acquisition date plus actuals from acquisition dateto 31 Aug 2018 for Alvey & Transbotics

2017 to 2018 Comparison
2017
2018 Increase
2018
20
18 Increase 2018 Increase
Existing Existing on 2017
Acquisitions
Total on 2017
Annualised
on 2017
Scott Scott
incl Acq.
Revenue
132,631

151,093

14%
30,686

181,779

37%
225,000

70%
Operating EBITDA (excluding acq. one offs) 16,367

18,152

11%
1,650

19,803

21%
22,000

34%
Net Surplus attributable to shareholders
9,890

10,768

9%
Earnings per share (cents per share)
13.2

14.3
8%

Segment Results
2017
2018
change
2017
2018
change
Australasia
99,848
     100,492
 644
         
12,183
    
11,899
      
(284)
          
Americas
17,055
    
29,141
    
12,086
    
1,287
      
2,490
        
1,203
        
Asia & Europe 15,730
    
52,146
    
36,416
    
(684)
        
441
            1,125
        
132,633
 
181,779
 49,146
    
12,786
    
14,830
      
2,044
        
Unallocated (2,521)
    
(4,058)
       
10,265
    
10,772
      
Revenue
Surplus after Tax

Revenue by Target Industry Sector
26,308 
39,581 
26,461 
40,281 
‐
41,069 
45,032 
33,313 
35,657 
26,708 
 ‐  5,000  10,000  15,000  20,000  25,000  30,000  35,000  40,000  45,00
0  50,000
Appliances
Meat Processing
Mining
Other Industrial Automation
Materials Handling & Logistics
2018
2017

Revenue By Customer Location
8,267 
35,614 
49,632 
3,215 
15,987 
4,955 2,327 
12,634 
11,840 
51,450 
47,505 
6,270 
10,609 
2,983 4,752 
46,370 
 ‐
 10,000  20,000  30,000  40,000  50,000  60,000
New Zealand
North America incl Mexico
Australia & Pacific Islands
South America
Asia
Russia & former states
Africa & Middle East
Other Europe
2018
2017

RevenueAnalysis
Revenue matrix for 2017/18 Financial yearBy Industry and location of Customer
Geographical location of the customer
New 
Zealand 
North 
America Australia
South 
America Asia Russia Africa Europe
Total
Appliances
113 3
8
16
41
Materials Handling
27
27
Meat Processing
91123
2
45
Mining
71061351
33
Industrial Automation
2
20
12
2
36
Total
12
51
48
6
11
3
5
46 182

Balance Sheet Movements
2017
2018
$000 $000
Change
Cash
26,670
         
12,473
         
Current portion loans 
‐
                
(
3,321)
          
Deferred settlement
‐
                
(
6,275)
          
Net Cash
26,670
         
2,877
            
(
23,793)
        
Trade debtors
17,833
         
37,064
         
Inventories
16,272
         
22,825
         
Contract WIP
4,108
            
3,077
            
Trade creditors
(16,590)
        
(
30,322)
        
Taxation payable
(3,691)
          
(2
,738)
          
Working Capital
17,932
         
29,906
         
11,974
         
Other net current     assets and lia
bilities
(2,805)
          
(8
,604)
          
(5
,799)
          
Sub Total Current + cash
41,797
         
24,179
         
(
17,618)
        
Non Current excl. intangibles
Assets
16,655
         
18,377
         
1,722
            
Liabilities
(2,594)
          
(8
,492)
          
(5
,898)
          
Net Tangible Assets
55,858
         
34,064
         
(
21,794)
        
Goodwill
29,987
         
53,780
         
23,793
         
Intangible assets
11,311
         
15,103
         
3,792
            
Equity
97,156
         
102,947
       
5,791
           

Sector Revenue Breakdown
April 2016
JBS
acquires
50.1% at
$1.39 per
share
Aug balance date
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Accum growth
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
Meat processing
5
5
6
6
8
8
11
39
40
45
40
Industrial
2
1
3
8
7
9
31
31
40
36
33
Mining
12
19
28
34
29
14
17
22
26
33
21
Appliances
12
22
16
16
17
29
14
20
26
41
29
Materials handling
27
27
Other
6
3
3
1
1
2
1
2
2
Total
31
47
59
67
63
62
73
114
134
184
153
Sales to JBS
0.3
3.2
5.6
Acquisitions
Rocklabs
RobotWorx
MAR
Bladestop
Alvey
Apr-08
May-14
Jan-
15
Oct-16
Apr-18
Transbotics
Jun-18
Revenue CAGR
1 year
3 year
5 year
10 year
Meat processing
14%
8%
54%
32%
Industrial
-11%
8%
41%
36%
Mining
26%
22%
23%
12%
Appliances
56%
43%
9%
15%
TOTAL
36%
26%
31%
22%

Revenue Growth Profile
‐5,00005,00010,00015,00020,00025,000
0
20,00040,00060,00080,000
100,000120,000140,000160,000180,000200,000
FY09 FY10 FY11 FY12 FY13
FY14 FY15 FY16 FY17 FY18
Series2
Series3
26%
31%
22%
Revenue
5 year rev CAGR
3 year rev CAGR
Rocklabs
Apr 08
Bladestop
Oct 16
MAR
Jan 15
RobotWorx
May 14
JBS buys 50.1%
Apr 16
10 year rev CAGR
2H EBITDA
1H EBITDA
Alvey: Apr 18
Transbotics:  Jun 18

Revenue Bridge FY18to FY18($000’s)
181,779 
132,631 
36,416 
12,086 
646 
 ‐
 20,000 40,000 60,000 80,000
 100,000 120,000 140,000 160,000 180,000 200,000
FY17 rev
Asia/Europe
Americas
Australasia
FY18 rev

NPBT Bridge FY17 to FY18($000’s)
15,046 
( 221)
( 280)
( 631)
( 1,238)
( 1,432)
14,913 
2,254 
1,391 
290 
 ‐
 2,000 4,000 6,000 8,000
 10,000 12,000 14,000 16,000 18,000 20,000
FY17 NPBT Asia/Europe Americas JV Ne
t surplus Admin & FX Australasia
Net Interest Dep & Amor
t One‐off items FY18 NPBT

To deliver on Scott’s Strategy, the focus will be on:•
Integration of AlveyEurope and TransboticsUSA
–
Cross Selling Opportunities
•
Service and Spare Parts
•
Research & Development
–
Meat processing developments continuing
–
Bladestop–new product rollout
–
Mining technology developments
•
Digital
Focus Areas

Scott –Digital Direction
1. Vision and image analysis2. Package Software  ‐Maestro  (ex Alvey)
‐TMO (ex Transbotics)
3. IIOT and connectivity ‐Equipment reporting
‐Diagnostics‐Maintenance ‐OEE
4. Machine Learning  ‐AI / convolutional neural networks5. Augmented Reality 6. Virtual Reality –for Marketing and Training 

BladestopBandsaws
Expanded Bladestopproduct range:
–
Development of Scott 600 saw completed
–
Scott 400 development underway
–
European saw

Outlook
Forwardprojectwork–approx.9monthsSignificantprojectworkunderway
–
Meatdevelopmentwork(Beef,PorkandPoultry)
–
MiningsystemsintoAustralia,NorwayandMexico
–
AppliancesystemsforEurope,USAandChina
IncreasingsalestoJBS($5.6minFY18)Acquisitiongrowth–FullyearAlvey&TransboticsOrganicGrowth
–
Expandandimproveoncurrentactivities
–
OngoingInvestmentinR&D:
»
Maintenance‐tomaintaincompetitiveedge
»
Development‐tocreatenewopportunities

Thank you
Scott capability showcase video