SCT Trading Update – Rising to the Challenge of COVID-19

7 July 2020
Company Announcement
©Scott Technology Limited



SCOTT TECHNOLOGY TRADING UPDATE; RISING TO THE CHALLENGE OF COVID-19

Automation and robotics solutions provider, Scott Technology Limited (NZX: SCT), is pleased to advise
that the company is continuing to recover post-lockdown and in the new COVID-operating
environment, with a number of projects coming back onstream and a growing list of enquiries for the
company’s innovative and reliable automation and robotic solutions.
Recent activity includes:
• Signing of new contracts for materials handling and logistics solutions with a large food
customer in Europe.
• Signing of a contract for an automated refuelling system for a large Australian mining
company, which introduces significant safety and efficiency benefits by allowing ‘monster
mining trucks’ to be refuelled robotically with the precise level of fuel required for the distance
and payload.
• An agreement in China for the design and build of a new manufacturing line for one of the
world’s largest appliance brands.
• An agreement for an industrial automation solution for a company providing services to the
defence sector.
• Recommenced the commissioning of an appliance line for Bosch in China.
• Restarted the commissioning of an automated laboratory project in Australia, after this was
initially put on hold due to COVID-19.
• Ongoing interest in Scott’s Bladestop technology with the recent signing of a deal for the
supply of 30 Bladestop machines to JBS USA, the world’s largest protein producer.
Additionally, Scott has successfully reached an important milestone on the significant Rio Tinto
contract to build and design the automated mine site laboratory for the Koodaideri Iron Ore project,
located in the Pilbara region of Western Australia. Scott was awarded the contract in February 2020
and planning and development work continued despite the COVID-19 restrictions, with the company
having achieved a number of progress milestones in recent weeks. Building work has commenced with
site mobilisation now underway, in line with the original timetable. A number of Scott’s design and
build activities for the Rio project have been moved to the company’s Australian operations to be
closer to the customer.
CEO of Scott Technology, John Kippenberger said: “We are seeing industries and parts of operations
across our global group emerging out from under the extreme environment of the pandemic at very
different speeds. Examples of this can be seen in some delays to investment decisions in Europe,
whereas the meat sector in North America is seeing strong demand for new robotic and automation
ideology given the increased risks around COVID-19 in these cold and congested operating
environments.”
“While the repercussions of COVID-19 continue to affect the global economy, the return to business
as usual has been more positive than we anticipated in some sectors and regions, particularly
Australia, China and the New Zealand service business. Activity in the USA and Europe remains more
subdued and we think it will be some time before demand in those regions returns to pre-COVID
levels.”

©Scott Technology Limited | Confidential document

Rising to the challenge of the COVID-19 environment

The company is adapting to the COVID-19 environment in a number of ways.

With a large global customer base, and operations in four regions (Europe, USA, China and ANZ), Scott
Technology has adapted to the restricted travel environment by innovating with new ways of
collaborating with offshore customers. The company is utilising the latest in augmented reality (AR)
technology to provide real-time support to on-site, local engineers. This allows Scott’s engineers to
see through the eyes of the locally-based engineer, and provide real-time support and instruction, as
well as uploading technical data through a visual system to the local engineer where required.

Where possible, team members are being relocated or recruited to be closer to the customer. In line
with this, several senior sales executives are being appointed in the USA, where there is growing
demand in the meat sector for Scott’s solutions.

Cashflow management remains a priority while demand rebuilds to pre-COVID-19 levels.

Transition to new strategy and business model moving at pace

Scott is moving ahead with its new Scott 2025 strategy, as detailed in its half year announcement on
8 May 2020. Work to transition to a streamlined, regionally focused business model has moved at
pace, and the process has now been completed in the USA, China, Australia and New Zealand.

Scott’s new strategy and streamlined business model positions the company to take advantage of the
continued demand for innovative and reliable automation and robotic solutions while reducing risk
and delivering earnings growth and margin improvement.

The company has also continued to build-out the strength and capabilities of the senior executive
team with the appointment of Twain Drewett as Regional Director - Australia & New Zealand.
Kippenberger says with the acceleration of digitisation and automation which many industries are
looking towards coming out of COVID-19, the addition of Twain, with his strong engineering and
systems experience from Rockwell Automation, Schneider Electric and General Electric, will add
further knowledge and strength to the Scott executive team.

FY20 Earnings Outlook

As advised, COVID-19 will have a material impact on Scott Technology’s FY20 results (for the year
ending 31 August 2020), however, revenue is expected to continue to recover as restrictions are lifted
and businesses recommence projects and capital expenditure.

Scott has taken a number of measures in response to COVID-19 and the financial impact of these will
be seen in the FY20 full year results. This includes costs associated with the restructuring of the global
business platform to make it more efficient and deliver improved customer outcomes.

ENDS

©Scott Technology Limited | Confidential document


For more information, visit www.scottautomation.com
or contact:

John Kippenberger
Chief Executive Officer, Scott Technology
T: +64 21 964 045
E: j.kippenberger@scott.co.nz


Media and investor contact:
Jackie Ellis
T: +54 27 246 2505
E: jackie@ellisandco.co.nz



About Scott
At Scott we automate the future. The production line machinery we design and build deliver productivity gains
and exceptional reliability to many of the world’s leading manufacturers. We also go a step beyond engineering
production solutions to actually revolutionising entire industries – using robotics to automate manual processes
and create genuine competitive advantage.

For over 100 years Scott has looked to tomorrow and rapidly responded to shifting needs. Today, we have
production bases in the United States, Belgium, Czech Republic, France, Germany, China, Australia and New
Zealand, customers in 88 countries, and a real commitment to developing new technology and bringing it to
market. Across everything we do you will discover true quality, advanced engineering and a renowned design
aesthetic.

Scott. Quality that lasts. Quality that inspires.